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: January 22, 2008

(Date of earliest event reported): January 22, 2008

Commission File No. 0-10587

FULTON FINANCIAL CORPORATION

(Exact name of Registrant as specified in its Charter)

Pennsylvania	23-2195389
(State or other jurisdiction of incorporation)	(IRS Employer Identification Number)
One Penn Square
Lancaster, Pennsylvania	17602
(Address of principal executive offices)	(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 January 22, 2008 Fulton Financial Corporation announced its results of operations for the fourth quarter and year ended December 31, 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 January 22, 2008.
99.2	Supplemental financial information for the quarter and year ended December 31, 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: January 22, 2008	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:	717-291-2616

Fulton Financial reports 2007 earnings

     (January 22) – Lancaster, PA – Fulton Financial Corporation (Nasdaq: FULT) earned $38.2 million for the fourth quarter of 2007, an 18.1 percent decrease from the same period in 2006. Diluted net income per share for the fourth quarter of 2007 decreased to 22 cents per share, an 18.5 percent decrease from the 27 cents reported during the same period in 2006. Diluted net income per share for the quarter increased 15.8 percent from the 19 cents reported in the third quarter of 2007.

     Net income was $152.7 million for the year ended December 31, 2007, a 17.7 percent decrease from 2006. Diluted net income per share for the year decreased to 88 cents, a 17.0 percent decrease from the $1.06 reported in 2006. Total assets at December 31, 2007 grew 6.7 percent to approximately $15.9 billion.

     As previously disclosed, during the first nine months of 2007, the Corporation recorded $24.9 million of charges related to actual and potential repurchases of residential mortgage and home equity loans originated and sold to secondary market investors by Resource Bank (Resource Mortgage). These repurchases resulted from early payment defaults by borrowers or misrepresentations of borrower information. Special counsel was engaged to review whether there were additional potentially material occurrences of misrepresentations of borrower information that should be considered in determining the proper levels of contingent losses and reserves. Based on the results of this special review, which was completed during the fourth quarter of 2007, no additional charges were recorded. Management believes the reserves recorded for actual and potential repurchases as of December 31, 2007 are adequate.

     “2007 was a challenging year for the corporation and for our industry. While our earnings performance was impacted by the issues associated with Resource Mortgage, we have worked diligently to position the company for improved performance,” said R. Scott Smith Jr., chairman, chief executive officer and president. “Commercial loan growth was strong. While loan quality remains good, the provision for loan losses and the level of non-performing loans are coming off their historical lows as we had anticipated for some time. These trends required a more normal provision for loan losses. Excluding nonrecurring items, other expenses were well-controlled with

- MORE -

Page 2 . . . Fulton Financial reports 2007 earnings

some key areas showing reductions. Our investment portfolio holds no collateralized debt obligations and only agency-guaranteed mortgage-backed securities. Because our liquidity and capital levels remain strong, we have no short term plans to raise additional capital.”

     For the year, loans, net of unearned income, increased $830.1 million, or 8.0 percent, to $11.2 billion at December 31, 2007, compared to $10.4 billion at December 31, 2006. The increase was due primarily to commercial loans, which grew $461.9 million, or 15.6 percent, and commercial mortgages, which increased $288.5 million, or 9.0 percent. In comparison to September 30, 2007, loans, net of unearned income, increased $216.1 million, or 2.0 percent, due mainly to an increase in commercial loans of $98.1 million, or 2.9 percent, and growth in commercial mortgages of $94.6 million, or 2.8 percent.

     Non-performing assets were $120.9 million, or 0.76 percent, of total assets at December 31, 2007, compared to $57.8 million, or 0.39 percent, at December 31, 2006 and $107.0 million, or 0.69 percent, at September 30, 2007. The $63.0 million, or 108.9 percent, increase in non-performing assets since December 31, 2006 was due in part to the aforementioned repurchase of residential mortgage loans from secondary market purchasers during 2007.

     Annualized net charge-offs for the quarter ended December 31, 2007 were 0.15 percent of average total loans, compared to 0.06 percent for the quarter ended December 31, 2006 and 0.08 percent for the quarter ended September 30, 2007. For the year ended December 31, 2007, net charge-offs were 0.09 percent of average total loans, compared to 0.02 percent for the same period in 2006. The provision for loan losses increased $5.7 million, or 536.7 percent for the fourth quarter of 2007, as compared to the same period in 2006. In comparison to the third quarter of 2007, the provision for loan losses increased $2.2 million, or 47.6 percent.

     Total deposits decreased $127.0 million, or 1.2 percent, to $10.1 billion at December 31, 2007, compared to $10.2 billion at December 31, 2006. Demand and savings deposits decreased $233.5 million, or 4.0 percent, offset by a $106.5 million, or 2.4 percent, increase in time deposits. In comparison to September 30, 2007, total deposits decreased $185.7 million, or 1.8 percent, due to decreases in both time deposits and demand and savings accounts.

     Net interest income for the fourth quarter increased $1.9 million, or 1.6 percent, compared to the fourth quarter of 2006 and increased $1.2 million, or 1.0 percent, from the third quarter of 2007. The Corporation’s net interest margin was 3.56 percent for the fourth quarter of 2007, 3.68 percent for the fourth quarter of 2006 and 3.62 percent for the third quarter of 2007.

     Other income, excluding investment securities losses and gains, decreased $2.7 million, or 7.0 percent, in the fourth quarter of 2007 compared to the same period in 2006. The decrease was due to a decline in gains on the sales of mortgage loans and a decrease in other income due to gains on sales of branch and office facilities during the fourth quarter of 2006. These decreases

Page 3 . . . Fulton Financial reports 2007 earnings

were partially offset by increases in service charges on deposit accounts and other service charges and fees. Compared to the third quarter of 2007, other income decreased $1.1 million, or 3.1 percent, due to $2.1 million of gains from the sale of certain mortgage-related assets and the settlement of related lawsuits during the third quarter of 2007, offset by an increase in service charges on deposit accounts, mainly overdraft fees, which increased $1.8 million, or 34.3 percent.

     Other expenses increased $3.7 million, or 3.9 percent, compared to the fourth quarter of 2006, to $98.4 million. The increase was due primarily to $1.1 million of charges related to the write-off of tradename intangible assets as a result of actual and pending mergers of certain affiliate banks and $900,000 of professional fees incurred for the Resource Mortgage review. The increase was also due to $1.5 million of charges for the Corporation’s affiliate bank’s share, as members of Visa USA, of settled and pending litigation incurred by Visa, Inc. (Visa) in various lawsuits. These increases were offset by a $2.4 million, or 4.3 percent, decrease in salaries and employee benefits, due in part to corporate-wide workforce management and centralization initiatives which began during 2007 and decreases in incentive compensation and bonuses.

     Compared to the third quarter of 2007, other expenses decreased $9.5 million, or 8.8 percent, due primarily to $16.0 million in charges recorded during the third quarter of 2007 related to the aforementioned mortgage banking operations at Resource Mortgage, offset by the professional fees, tradename write-offs and Visa charges, as detailed above.

     Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has 3,900 employees and which operates more than 260 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust, Hagerstown, MD; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD; Skylands Community Bank, Hackettstown, NJ; 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:

Page 4 . . . Fulton Financial reports 2007 earnings

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

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

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

     For a more complete discussion of certain risks and uncertainties affecting the Corporation, please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements” set forth in the Corporation’s filings with the Securities and Exchange Commission.

# # #

2007

EX-99.2

EXHIBIT 99.2

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

	December 31
BALANCE SHEET DATA	2007		2006		% Change
Total assets	$	15,912,232	$	14,918,964		6.7	%
Loans, net of unearned income		11,204,424		10,374,323		8.0	%
Investment securities		3,153,552		2,878,238		9.6	%
Deposits		10,105,445		10,232,469		(1.2	%)
Shareholders’ equity		1,574,062		1,516,310		3.8	%

	Quarter Ended December 31									Year Ended December 31
INCOME SUMMARY	2007			2006			% Change			2007			2006			% Change
Interest income	$	240,069		$	229,548			4.6	%	$	939,577		$	864,507			8.7	%
Interest expense		(116,418	)		(107,803	)		8.0	%		(450,833	)		(378,944	)		19.0	%
Net interest income		123,651			121,745			1.6	%		488,744			485,563			0.7	%
Provision for loan losses		(6,800	)		(1,068	)		536.7	%		(15,063	)		(3,498	)		330.6	%
Investment securities (losses) gains		(537	)		1,915			(128.0	%)		1,740			7,439			(76.6	%)
Other income		35,748			38,439			(7.0	%)		146,284			142,436			2.7	%
Other expenses		(98,447	)		(94,757	)		3.9	%		(405,455	)		(365,991	)		10.8	%
Income before income taxes		53,615			66,274			(19.1	%)		216,250			265,949			(18.7	%)
Income taxes		(15,436	)		(19,669	)		(21.5	%)		(63,532	)		(80,422	)		(21.0	%)
Net income	$	38,179		$	46,605			(18.1	%)	$	152,718		$	185,527			(17.7	%)
PER-SHARE DATA:
Net income:
Basic	$	0.22		$	0.27			(18.5	%)	$	0.88		$	1.07			(17.8	%)
Diluted		0.22			0.27			(18.5	%)		0.88			1.06			(17.0	%)
Cash dividends		0.1500			0.1475			1.7	%		0.598			0.581			2.9	%
Shareholders’ equity		9.07			8.73			3.9	%
Shareholders’ equity (tangible)		5.30			4.91			7.9	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.97	%		1.25	%					1.01	%		1.30	%
Return on average shareholders’ equity		9.72	%		12.29	%					9.98	%		12.84	%
Return on average shareholders’ equity (tangible)		17.44	%		22.55	%					18.16	%		23.87	%
Net interest margin		3.56	%		3.68	%					3.66	%		3.82	%
Efficiency ratio		59.09	%		56.83	%					61.19	%		56.00	%
Non-performing assets to total assets		0.76	%		0.39	%

1

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

										% Change from
	December 31			December 31			September 30			December 31			September 30
	2007			2006			2007			2006			2007
ASSETS
Cash and due from banks	$	381,283		$	355,018		$	337,306			7.4	%		13.0	%
Loans held for sale		103,984			239,042			116,451			(56.5	%)		(10.7	%)
Other interest-earning assets		21,153			28,188			19,673			(25.0	%)		7.5	%
Investment securities		3,153,552			2,878,238			2,948,262			9.6	%		7.0	%
Loans, net of unearned		11,204,424			10,374,323			10,988,307			8.0	%		2.0	%
Allowance for loan losses		(107,547	)		(106,884	)		(109,435	)		0.6	%		(1.7	%)
Net Loans		11,096,877			10,267,439			10,878,872			8.1	%		2.0	%
Premises and equipment		193,296			191,401			190,092			1.0	%		1.7	%
Accrued interest receivable		73,435			71,825			73,927			2.2	%		(0.7	%)
Goodwill and intangible assets		654,908			663,775			658,274			(1.3	%)		(0.5	%)
Other assets		233,744			224,038			215,320			4.3	%		8.6	%
Total Assets	$	15,912,232		$	14,918,964		$	15,438,177			6.7	%		3.1	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	10,105,445		$	10,232,469		$	10,291,186			(1.2	%)		(1.8	%)
Short-term borrowings		2,383,944			1,680,840			1,773,083			41.8	%		34.5	%
Federal Home Loan Bank advances and long-term debt		1,642,133			1,304,148			1,632,980			25.9	%		0.6	%
Other liabilities		206,648			185,197			186,808			11.6	%		10.6	%
Total Liabilities		14,338,170			13,402,654			13,884,057			7.0	%		3.3	%
Shareholders’ equity		1,574,062			1,516,310			1,554,120			3.8	%		1.3	%
Total Liabilities and Shareholders’ Equity	$	15,912,232		$	14,918,964		$	15,438,177			6.7	%		3.1	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	3,049,923		$	2,603,224		$	2,954,204			17.2	%		3.2	%
Commercial — agricultural		377,162			361,962			374,759			4.2	%		0.6	%
Real estate — commercial mortgage		3,502,282			3,213,809			3,407,715			9.0	%		2.8	%
Real estate — residential mortgage		851,577			696,836			809,148			22.2	%		5.2	%
Real estate — home equity		1,501,231			1,455,439			1,472,376			3.1	%		2.0	%
Real estate — construction		1,342,923			1,428,809			1,389,164			(6.0	%)		(3.3	%)
Consumer		500,708			523,066			500,021			(4.3	%)		0.1	%
Leasing and other		78,618			91,178			80,920			(13.8	%)		(2.8	%)
Total Loans, net of unearned income	$	11,204,424		$	10,374,323		$	10,988,307			8.0	%		2.0	%
Deposits, by type:
Noninterest-bearing demand	$	1,722,211		$	1,831,419		$	1,696,871			(6.0	%)		1.5	%
Interest-bearing demand		1,715,315			1,683,857			1,738,605			1.9	%		(1.3	%)
Savings deposits		2,131,374			2,287,146			2,195,363			(6.8	%)		(2.9	%)
Time deposits		4,536,545			4,430,047			4,660,347			2.4	%		(2.7	%)
Total Deposits	$	10,105,445		$	10,232,469		$	10,291,186			(1.2	%)		(1.8	%)
Short-term borrowings, by type:
Customer repurchase agreements	$	228,061		$	339,207		$	248,915			(32.8	%)		(8.4	%)
Short-term promissory notes		443,002			279,076			476,249			58.7	%		(7.0	%)
Federal funds purchased		1,057,335			1,022,351			842,476			3.4	%		25.5	%
Other		655,546			40,206			205,443			1,530.5	%		219.1	%
Total Short-term borrowings	$	2,383,944		$	1,680,840		$	1,773,083			41.8	%		34.5	%

2

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

	Quarter Ended									% Change from
	December 31			December 31			September 30			December 31			September 30			Year Ended December 31
	2007			2006			2007			2006			2007			2007			2006			% Change
Interest Income:
Interest Income	$	240,069		$	229,548		$	238,740			4.6	%		0.6	%	$	939,577		$	864,507			8.7	%
Interest Expense		116,418			107,803			116,330			8.0	%		0.1	%		450,833			378,944			19.0	%
Net Interest Income		123,651			121,745			122,410			1.6	%		1.0	%		488,744			485,563			0.7	%
Provision for Loan Losses		6,800			1,068			4,606			536.7	%		47.6	%		15,063			3,498			330.6	%
Net Interest Income after Provision		116,851			120,677			117,804			(3.2	%)		(0.8	%)		473,681			482,065			(1.7	%)
Other Income:
Investment management and trust services		9,291			9,466			9,291			(1.8	%)		—			38,665			37,441			3.3	%
Service charges on deposit accounts		13,355			11,289			11,293			18.3	%		18.3	%		46,500			43,773			6.2	%
Other service charges and fees		8,405			6,869			8,530			22.4	%		(1.5	%)		32,151			26,792			20.0	%
Gains on sale of mortgage loans		2,181			5,647			2,532			(61.4	%)		(13.9	%)		14,294			21,086			(32.2	%)
Investment securities (losses) gains		(537	)		1,915			(134	)		(128.0	%)		(300.7	%)		1,740			7,439			(76.6	%)
Other		2,516			5,168			5,231			(51.3	%)		(51.9	%)		14,674			13,344			10.0	%
Total Other Income		35,211			40,354			36,743			(12.7	%)		(4.2	%)		148,024			149,875			(1.2	%)
Other Expenses:
Salaries and employee benefits		53,173			55,546			52,505			(4.3	%)		1.3	%		217,526			213,913			1.7	%
Operating risk loss		767			1,334			16,345			(42.5	%)		(95.3	%)		27,229			4,818			465.2	%
Net occupancy expense		10,002			9,637			9,813			3.8	%		1.9	%		39,965			36,493			9.5	%
Equipment expense		3,303			3,460			3,438			(4.5	%)		(3.9	%)		13,892			14,251			(2.5	%)
Data processing		3,205			3,097			3,131			3.5	%		2.4	%		12,755			12,228			4.3	%
Advertising		3,465			2,424			2,470			42.9	%		40.3	%		11,334			10,638			6.5	%
Intangible amortization		2,158			2,024			1,995			6.6	%		8.2	%		8,334			7,907			5.4	%
Other		22,374			17,235			18,299			29.8	%		22.3	%		74,420			65,743			13.2	%
Total Other Expenses		98,447			94,757			107,996			3.9	%		(8.8	%)		405,455			365,991			10.8	%
Income Before Income Taxes		53,615			66,274			46,551			(19.1	%)		15.2	%		216,250			265,949			(18.7	%)
Income Taxes		15,436			19,669			12,985			(21.5	%)		18.9	%		63,532			80,422			(21.0	%)
Net Income	$	38,179		$	46,605		$	33,566			(18.1	%)		13.7	%	$	152,718		$	185,527			(17.7	%)
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.22		$	0.27		$	0.19			(18.5	%)		15.8	%	$	0.88		$	1.07			(17.8	%)
Diluted		0.22			0.27			0.19			(18.5	%)		15.8	%		0.88			1.06			(17.0	%)
Cash dividends	$	0.1500		$	0.1475		$	0.1500			1.7	%		—		$	0.598		$	0.581			2.9	%
Shareholders’ equity		9.07			8.73			8.96			3.9	%		1.2	%
Shareholders’ equity (tangible)		5.30			4.91			5.17			7.9	%		2.5	%
Weighted average shares (basic)		173,416			173,529			173,304			(0.1	%)		0.1	%		173,295			172,830			0.3	%
Weighted average shares (diluted)		174,155			175,415			174,370			(0.7	%)		(0.1	%)		174,386			174,872			(0.3	%)
Shares outstanding, end of period		173,503			173,648			173,394			(0.1	%)		0.1	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.97	%		1.25	%		0.88	%								1.01	%		1.30	%
Return on average shareholders’ equity		9.72	%		12.29	%		8.67	%								9.98	%		12.84	%
Return on average shareholders’ equity (tangible)		17.44	%		22.55	%		15.76	%								18.16	%		23.87	%
Net interest margin		3.56	%		3.68	%		3.62	%								3.66	%		3.82	%
Efficiency ratio		59.09	%		56.83	%		65.17	%								61.19	%		56.00	%

3

FULTON FINANCIAL CORPORATION

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

	Quarter Ended
	December 31, 2007									December 31, 2006									September 30, 2007
	Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	11,082,957		$	204,281			7.32	%	$	10,312,354		$	193,776			7.46	%	$	10,857,636		$	205,747			7.52	%
Taxable investment securities		2,348,449			28,420			4.84	%		2,332,116			26,226			4.50	%		2,116,123			24,583			4.65	%
Tax-exempt investment securities		494,790			6,462			5.22	%		472,193			5,889			4.99	%		499,389			6,377			5.11	%
Equity securities		201,554			2,445			4.84	%		165,261			2,209			5.31	%		188,490			2,269			4.80	%
Total Investment Securities		3,044,793			37,327			4.90	%		2,969,570			34,324			4.62	%		2,804,002			33,229			4.74	%
Loans held for sale		101,788			1,730			6.79	%		212,170			3,876			7.31	%		159,492			2,694			6.76	%
Other interest-earning assets		24,136			291			4.78	%		44,804			580			5.12	%		34,536			432			4.91	%
Total Interest-earning Assets		14,253,674			243,629			6.80	%		13,538,898			232,556			6.83	%		13,855,666			242,102			6.95	%
Noninterest-earning assets:
Cash and due from banks		323,490									321,246									338,862
Premises and equipment		191,502									190,932									190,175
Other assets		907,267									897,979									890,901
Less: allowance for loan losses		(110,922	)								(107,842	)								(108,628	)
Total Assets	$	15,565,011								$	14,841,213								$	15,166,976
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,721,831		$	6,598			1.52	%	$	1,665,453		$	7,000			1.67	%	$	1,729,357		$	7,630			1.75	%
Savings deposits		2,179,753			12,046			2.19	%		2,339,493			14,213			2.41	%		2,259,231			13,680			2.40	%
Time deposits		4,603,944			54,341			4.68	%		4,406,070			49,501			4.46	%		4,626,160			55,093			4.72	%
Total Interest-bearing Deposits		8,505,528			72,985			3.40	%		8,411,016			70,714			3.34	%		8,614,748			76,403			3.52	%
Short-term borrowings		2,020,751			22,249			4.33	%		1,790,556			22,613			4.96	%		1,477,288			17,786			4.74	%
Federal Home Loan Bank advances and long-term debt		1,624,613			21,184			5.19	%		1,177,177			14,476			4.88	%		1,655,599			22,141			5.32	%
Total Interest-bearing Liabilities		12,150,892			116,418			3.80	%		11,378,749			107,803			3.75	%		11,747,635			116,330			3.93	%
Noninterest-bearing liabilities:
Demand deposits		1,675,528									1,776,686									1,703,137
Other		180,907									180,941									179,391
Total Liabilities		14,007,327									13,336,376									13,630,163
Shareholders’ equity		1,557,684									1,504,837									1,536,813
Total Liabilities and Shareholders’ Equity	$	15,565,011								$	14,841,213								$	15,166,976
Net interest income/net interest margin (fully taxable equivalent)					127,211			3.56	%					124,753			3.68	%					125,772			3.62	%
Tax equivalent adjustment					(3,560	)								(3,008	)								(3,362	)
Net interest income				$	123,651								$	121,745								$	122,410

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

	Quarter Ended						% Change from
	December 31		December 31		September 30		December 31			September 30
	2007		2006		2007		2006			2007
Loans, by type:
Commercial — industrial and financial	$	2,988,996	$	2,578,374	$	2,908,049		15.9	%		2.8	%
Commercial — agricultural		375,215		351,112		373,293		6.9	%		0.5	%
Real estate — commercial mortgage		3,438,386		3,194,958		3,383,487		7.6	%		1.6	%
Real estate — residential mortgage		831,825		688,932		769,381		20.7	%		8.1	%
Real estate — home equity		1,486,367		1,462,912		1,454,947		1.6	%		2.2	%
Real estate — construction		1,377,391		1,428,034		1,382,951		(3.5	%)		(0.4	%)
Consumer		499,253		523,890		502,482		(4.7	%)		(0.6	%)
Leasing and other		85,524		84,142		83,046		1.6	%		3.0	%
Total Loans, net of unearned income	$	11,082,957	$	10,312,354	$	10,857,636		7.5	%		2.1	%
Deposits, by type:
Noninterest-bearing demand	$	1,675,528	$	1,776,686	$	1,703,137		(5.7	%)		(1.6	%)
Interest-bearing demand		1,721,831		1,665,453		1,729,357		3.4	%		(0.4	%)
Savings deposits		2,179,753		2,339,493		2,259,231		(6.8	%)		(3.5	%)
Time deposits		4,603,944		4,406,070		4,626,160		4.5	%		(0.5	%)
Total Deposits	$	10,181,056	$	10,187,702	$	10,317,885		(0.1	%)		(1.3	%)
Short-term borrowings, by type:
Customer repurchase agreements	$	237,346	$	335,762	$	242,375		(29.3	%)		(2.1	%)
Short-term promissory notes		478,018		270,864		446,182		76.5	%		7.1	%
Federal funds purchased		975,732		1,128,439		756,360		(13.5	%)		29.0	%
Other		329,655		55,491		32,371		494.1	%		918.4	%
Total Short-term borrowings	$	2,020,751	$	1,790,556	$	1,477,288		12.9	%		36.8	%

4

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

	Year Ended December 31
	2007									2006
	Balance			Interest (1)			Rate (1)			Balance			Interest (1)			Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	10,736,566		$	805,881			7.51	%	$	9,892,082		$	731,057			7.39	%
Taxable investment securities		2,157,325			99,621			4.62	%		2,268,209			97,652			4.31	%
Tax-exempt investment securities		496,820			25,856			5.20	%		447,000			21,770			4.87	%
Equity securities		189,333			9,073			4.79	%		154,653			7,341			4.75	%
Total Investment Securities		2,843,478			134,550			4.73	%		2,869,862			126,763			4.42	%
Loans held for sale		166,437			11,501			6.91	%		215,255			15,564			7.23	%
Other interest-earning assets		33,015			1,630			4.90	%		53,211			2,530			4.73	%
Total Interest-earning Assets		13,779,496			953,562			6.93	%		13,030,410			875,914			6.73	%
Noninterest-earning assets:
Cash and due from banks		329,814									335,935
Premises and equipment		190,910									185,084
Other assets		899,292									852,186
Less: allowance for loan losses		(109,054	)								(105,934	)
Total Assets	$	15,090,458								$	14,297,681
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,696,624		$	28,331			1.67	%	$	1,673,407		$	25,112			1.50	%
Savings deposits		2,258,113			53,312			2.36	%		2,340,402			51,394			2.19	%
Time deposits		4,553,994			212,752			4.67	%		4,134,190			170,435			4.12	%
Total Interest-bearing Deposits		8,508,731			294,395			3.46	%		8,147,999			246,941			3.03	%
Short-term borrowings		1,574,495			73,983			4.66	%		1,653,974			78,043			4.67	%
Federal Home Loan Bank advances and long-term debt		1,579,527			82,455			5.22	%		1,069,868			53,960			5.04	%
Total Interest-bearing Liabilities		11,662,753			450,833			3.86	%		10,871,841			378,944			3.48	%
Noninterest-bearing liabilities:
Demand deposits		1,713,863									1,807,248
Other		183,229									173,799
Total Liabilities		13,559,845									12,852,888
Shareholders’ equity		1,530,613									1,444,793
Total Liabilities and Shareholders’ Equity	$	15,090,458								$	14,297,681
Net interest income/net interest margin (fully taxable equivalent)					502,729			3.66	%					496,970			3.82	%
Tax equivalent adjustment					(13,985	)								(11,407	)
Net interest income				$	488,744								$	485,563

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

	Year Ended
	December 31
	2007		2006		% Change
Loans, by type:
Commercial — industrial and financial	$	2,844,359	$	2,478,893		14.7	%
Commercial — agricultural		368,998		335,596		10.0	%
Real estate — commercial mortgage		3,337,762		3,073,830		8.6	%
Real estate — residential mortgage		753,789		640,775		17.6	%
Real estate — home equity		1,454,753		1,417,259		2.6	%
Real estate — construction		1,384,548		1,345,191		2.9	%
Consumer		506,201		522,761		(3.2	%)
Leasing and other		86,156		77,777		10.8	%
Total Loans, net of unearned income	$	10,736,566	$	9,892,082		8.5	%
Deposits, by type:
Noninterest-bearing demand	$	1,713,863	$	1,807,248		(5.2	%)
Interest-bearing demand		1,696,624		1,673,407		1.4	%
Savings deposits		2,258,113		2,340,402		(3.5	%)
Time deposits		4,553,994		4,134,190		10.2	%
Total Deposits	$	10,222,594	$	9,955,247		2.7	%
Short-term borrowings, by type:
Customer repurchase agreements	$	247,948	$	352,454		(29.7	%)
Short-term promissory notes		404,527		163,199		147.9	%
Federal funds purchased		808,358		1,095,875		(26.2	%)
Other		113,662		42,446		167.8	%
Total Short-term borrowings	$	1,574,495	$	1,653,974		(4.8	%)

5

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

	Quarter Ended									Year Ended
	December 31			December 31			September 30			December 31
	2007			2006			2007			2007			2006
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	109,435		$	107,422		$	106,892		$	106,884		$	92,847
Loans charged off		(5,068	)		(2,722	)		(2,805	)		(13,739	)		(6,969	)
Recoveries of loans previously charged off		1,042			1,116			742			4,001			4,517
Net loans charged off		(4,026	)		(1,606	)		(2,063	)		(9,738	)		(2,452	)
Provision for loan losses		6,800			1,068			4,606			15,063			3,498
Allowance purchased		—			—			—			—			12,991
Balance at end of period	$	112,209		$	106,884		$	109,435		$	112,209		$	106,884
Net charge-offs to average loans (annualized)		0.15	%		0.06	%		0.08	%		0.09	%		0.02	%
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES:
Allowance for loan losses	$	107,547		$	106,884		$	109,435
Reserve for unfunded lending commitments (1)		4,662			—			—
Allowance for credit losses	$	112,209		$	106,884		$	109,435

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

NON-PERFORMING ASSETS:
Non-accrual loans	$	76,140		$	33,113		$	71,043
Accruing loans 90+ days overdue		29,782			20,632			23,406
Other real estate owned		14,934			4,103			12,536
Total non-performing assets	$	120,856		$	57,848		$	106,985
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		0.68	%		0.32	%		0.65	%
Non-performing assets to total loans and OREO		1.08	%		0.56	%		0.97	%
Non-performing assets to total assets		0.76	%		0.39	%		0.69	%
Allowance for credit losses to loans outstanding		1.00	%		1.03	%		1.00	%
Allowance for credit losses to non-performing loans		106	%		199	%		116	%

6