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:	April 22, 2008
(Date of earliest event reported):	April 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 April 22, 2008 Fulton Financial Corporation announced its results of operations for the first quarter ended March 31, 2008. 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 April 22, 2008.
99.2	Supplemental financial information for the quarter ended March 31, 2008.

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

Fulton Financial reports first quarter earnings

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

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

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

     Non-performing assets were $145.3 million, or 0.90 percent of total assets, at March 31, 2008, compared to $58.0 million, or 0.40 percent, at March 31, 2007 and $120.9 million, or 0.76 percent, at December 31, 2007. The $87.3 million, or 150.7 percent, increase in non-performing

-MORE-

Page 2 . . .   Fulton Financial reports first quarter earnings

assets since March 31, 2007 was due to worsening general economic conditions and the repurchase of delinquent residential mortgages from investors during the second half 2007.

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

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

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

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

     Investment securities gains (losses) decreased $536,000, or 30.1 percent, in the first quarter of 2008 compared to the same period in 2007. In comparison to the fourth quarter of 2007, investment securities gains (losses) increased $1.8 million. The gains in the first quarter of 2008 included $3.6 million from the redemption of Class B shares of Visa, Inc. (Visa) in connection with Visa’s initial public offering and $1.0 million from the sale of Mastercard, Inc

Page 3 . . .  Fulton Financial reports first quarter earnings

shares. These gains were offset by $3.6 million in charges related to bank stocks held by the Corporation that were considered to be other-than-temporarily impaired as of the end of the quarter.

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

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

     The Corporation’s financial services affiliates include Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc., Lancaster, PA; and Dearden, Maguire, Weaver and Barrett, LLC, West Conshohocken, PA. Residential mortgage lending is offered by all banks through Fulton Mortgage Company.

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

Safe Harbor Statement:

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

Page 4 . . .   Fulton Financial reports first quarter earnings

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

     Many factors could affect future financial results including, without limitation, acquisition and growth strategies, market risk, changes or adverse developments in economic, political or regulatory conditions, a continuation or worsening of the current disruption in credit and other markets, including the lack of or reduced access to, and the abnormal functioning of, markets for mortgage and other asset-backed securities and for commercial paper and other short-term corporate borrowings, the effect of competition and interest rates on net interest margin and net interest income, investment strategy and income growth, investment securities gains, impairment of investment securities, changes in rates of deposit and loan growth, asset quality and the impact on assets from adverse changes in the economy and in credit and other markets and resulting effects on credit risk and asset values, balances of risk-sensitive assets to risk-sensitive liabilities, employee benefits and other expenses, amortization of intangible assets, goodwill impairment, capital and liquidity strategies and other financial and business matters for future periods.

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

#  #  #

2008

EX-99.2

Exhibit 99.2

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

	March 31
BALANCE SHEET DATA	2008			2007			% Change
Total assets	$	16,052,867		$	14,670,336			9.4	%
Loans, net of unearned income		11,388,653			10,448,175			9.0	%
Investment securities		3,104,827			2,621,608			18.4	%
Deposits		10,048,928			10,235,580			(1.8	%)
Shareholders’ equity		1,611,720			1,521,931			5.9	%
	Quarter Ended March 31
INCOME SUMMARY		2008			2007		% Change
Interest income	$	229,220		$	230,656			(0.6	%)
Interest expense		(103,321	)		(108,881	)		(5.1	%)
Net interest income		125,899			121,775			3.4	%
Provision for loan losses		(11,220	)		(957	)		1,072.4	%
Investment securities gains		1,246			1,782			(30.1	%)
Other income		36,434			37,283			(2.3	%)
Other expenses		(96,660	)		(100,905	)		(4.2	%)
Income before income taxes		55,699			58,978			(5.6	%)
Income taxes		(14,203	)		(17,850	)		(20.4	%)
Net income	$	41,496		$	41,128			0.9	%
PER-SHARE DATA:
Net income:
Basic	$	0.24		$	0.24			—
Diluted		0.24			0.24			—
Cash dividends		0.1500			0.1475			1.7	%
Shareholders’ equity		9.28			8.79			5.6	%
Shareholders’ equity (tangible)		5.52			4.97			11.1	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.05	%		1.12	%
Return on average shareholders’ equity		10.53	%		11.06	%
Return on average shareholders’ equity (tangible)		18.45	%		20.34	%
Net interest margin		3.58	%		3.74	%
Efficiency ratio		57.10	%		60.98	%
Non-performing assets to total assets		0.90	%		0.40	%

1

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

										% Change from
	March 31			March 31			December 31			March 31			December 31
	2008			2007			2007			2007			2007
ASSETS
Cash and due from banks	$	406,601		$	344,969		$	381,283			17.9	%		6.6	%
Loans held for sale		95,144			206,422			103,984			(53.9	%)		(8.5	%)
Other interest-earning assets		13,240			17,677			21,153			(25.1	%)		(37.4	%)
Investment securities		3,104,827			2,621,608			3,153,552			18.4	%		(1.5	%)
Loans, net of unearned		11,388,653			10,448,175			11,204,424			9.0	%		1.6	%
Allowance for loan losses		(115,257	)		(107,899	)		(107,547	)		6.8	%		7.2	%
Net Loans		11,273,396			10,340,276			11,096,877			9.0	%		1.6	%
Premises and equipment		197,424			190,442			193,296			3.7	%		2.1	%
Accrued interest receivable		65,865			67,580			73,435			(2.5	%)		(10.3	%)
Goodwill and intangible assets		653,038			662,085			654,908			(1.4	%)		(0.3	%)
Other assets		243,332			219,277			244,610			11.0	%		(0.5	%)
Total Assets	$	16,052,867		$	14,670,336		$	15,923,098			9.4	%		0.8	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	10,048,928		$	10,235,580		$	10,105,445			(1.8	%)		(0.6	%)
Short-term borrowings		2,229,127			1,138,443			2,383,944			95.8	%		(6.5	%)
Federal Home Loan Bank advances and long-term debt		1,890,969			1,576,283			1,642,133			20.0	%		15.2	%
Other liabilities		272,123			198,099			216,656			37.4	%		25.6	%
Total Liabilities		14,441,147			13,148,405			14,348,178			9.8	%		0.6	%
Shareholders’ equity		1,611,720			1,521,931			1,574,920			5.9	%		2.3	%
Total Liabilities and Shareholders’ Equity	$	16,052,867		$	14,670,336		$	15,923,098			9.4	%		0.8	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Commercial - industrial, financial and agricultural	$	3,493,352		$	3,095,492		$	3,427,085			12.9	%		1.9	%
Real estate - commercial mortgage		3,619,391			3,257,914			3,502,282			11.1	%		3.3	%
Real estate - residential mortgage		882,977			699,528			851,577			26.2	%		3.7	%
Real estate - home equity		1,547,323			1,425,948			1,501,231			8.5	%		3.1	%
Real estate - construction		1,303,232			1,377,791			1,342,923			(5.4	%)		(3.0	%)
Consumer		451,037			514,007			500,708			(12.3	%)		(9.9	%)
Leasing and other		91,341			77,495			78,618			17.9	%		16.2	%
Total Loans, net of unearned income	$	11,388,653		$	10,448,175		$	11,204,424			9.0	%		1.6	%
Deposits, by type:
Noninterest-bearing demand	$	1,737,442		$	1,795,265		$	1,722,211			(3.2	%)		0.9	%
Interest-bearing demand		1,712,601			1,683,652			1,715,315			1.7	%		(0.2	%)
Savings deposits		2,157,749			2,274,727			2,131,374			(5.1	%)		1.2	%
Time deposits		4,441,136			4,481,936			4,536,545			(0.9	%)		(2.1	%)
Total Deposits	$	10,048,928		$	10,235,580		$	10,105,445			(1.8	%)		(0.6	%)
Short-term borrowings, by type:
Customer repurchase agreements	$	223,649		$	278,819		$	228,061			(19.8	%)		(1.9	%)
Short-term promissory notes		496,706			359,365			443,002			38.2	%		12.1	%
Federal funds purchased		1,103,804			442,362			1,057,335			149.5	%		4.4	%
Other		404,968			57,897			655,546			599.5	%		(38.2	%)
Total Short-term borrowings	$	2,229,127		$	1,138,443		$	2,383,944			95.8	%		(6.5	%)

2

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

	Quarter Ended									% Change from
	March 31			March 31			December 31			March 31			December 31
	2008			2007			2007			2007			2007
Interest Income:
Interest Income	$	229,220		$	230,656		$	240,069			(0.6	%)		(4.5	%)
Interest Expense		103,321			108,881			116,418			(5.1	%)		(11.2	%)
Net Interest Income		125,899			121,775			123,651			3.4	%		1.8	%
Provision for Loan Losses		11,220			957			6,800			1,072.4	%		65.0	%
Net Interest Income after Provision		114,679			120,818			116,851			(5.1	%)		(1.9	%)
Other Income:
Investment management and trust services		8,759			9,810			9,291			(10.7	%)		(5.7	%)
Service charges on deposit accounts		13,967			10,627			13,355			31.4	%		4.6	%
Other service charges and fees		8,591			7,375			8,405			16.5	%		2.2	%
Gains on sale of mortgage loans		2,311			5,393			2,181			(57.1	%)		6.0	%
Investment securities gains (losses)		1,246			1,782			(537	)		(30.1	%)		332.0	%
Other		2,806			4,078			2,516			(31.2	%)		11.5	%
Total Other Income		37,680			39,065			35,211			(3.5	%)		7.0	%
Other Expenses:
Salaries and employee benefits		55,195			56,293			53,173			(2.0	%)		3.8	%
Net occupancy expense		10,524			10,196			10,002			3.2	%		5.2	%
Equipment expense		3,448			3,715			3,303			(7.2	%)		4.4	%
Data processing		3,246			3,202			3,205			1.4	%		1.3	%
Advertising		2,905			2,409			3,465			20.6	%		(16.2	%)
Intangible amortization		1,857			1,983			2,158			(6.4	%)		(13.9	%)
Operating risk loss		1,243			5,914			767			(79.0	%)		62.1	%
Other		18,242			17,193			22,374			6.1	%		(18.5	%)
Total Other Expenses		96,660			100,905			98,447			(4.2	%)		(1.8	%)
Income Before Income Taxes		55,699			58,978			53,615			(5.6	%)		3.9	%
Income Taxes		14,203			17,850			15,436			(20.4	%)		(8.0	%)
Net Income	$	41,496		$	41,128		$	38,179			0.9	%		8.7	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.24		$	0.24		$	0.22			—			9.1	%
Diluted		0.24			0.24			0.22			—			9.1	%
Cash dividends	$	0.1500		$	0.1475		$	0.1500			1.7	%		—
Shareholders’ equity		9.28			8.79			9.08			5.6	%		2.2	%
Shareholders’ equity (tangible)		5.52			4.97			5.30			11.1	%		4.2	%
Weighted average shares (basic)		173,624			173,273			173,416			0.2	%		0.1	%
Weighted average shares (diluted)		174,209			174,878			174,155			(0.4	%)		—
Shares outstanding, end of period		173,722			173,083			173,503			0.4	%		0.1	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.05	%		1.12	%		0.97	%
Return on average shareholders’ equity		10.53	%		11.06	%		9.72	%
Return on average shareholders’ equity (tangible)		18.45	%		20.34	%		17.44	%
Net interest margin		3.58	%		3.74	%		3.56	%
Efficiency ratio		57.10	%		60.98	%		59.09	%

3

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

	Quarter Ended
	March 31, 2008									March 31, 2007									December 31, 2007
	Balance			Interest (1)			Yield/Rate			Balance			Interest (1)			Yield/Rate			Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,295,531		$	192,422			6.85	%	$	10,414,698		$	196,558			7.65	%	$	11,082,957		$	204,281			7.32	%
Taxable investment securities		2,407,189			29,561			4.91	%		2,190,230			24,619			4.50	%		2,348,449			28,420			4.84	%
Tax-exempt investment securities		515,856			6,761			5.24	%		492,709			6,228			5.06	%		494,790			6,462			5.22	%
Equity securities		213,004			2,380			4.48	%		178,488			2,129			4.79	%		201,554			2,445			4.84	%
Total Investment Securities		3,136,049			38,702			4.94	%		2,861,427			32,976			4.61	%		3,044,793			37,327			4.90	%
Loans held for sale		98,676			1,577			6.39	%		207,856			3,684			7.09	%		101,788			1,730			6.79	%
Other interest-earning assets		26,784			218			3.25	%		48,328			596			4.97	%		24,136			291			4.78	%
Total Interest-earning Assets		14,557,040			232,919			6.43	%		13,532,309			233,814			6.99	%		14,253,674			243,629			6.80	%
Noninterest-earning assets:
Cash and due from banks		310,719									315,969									323,490
Premises and equipment		196,037									192,002									191,502
Other assets		927,260									899,843									907,267
Less: allowance for loan losses		(109,914	)								(107,683	)								(110,922	)
Total Assets	$	15,881,142								$	14,832,440								$	15,565,011
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,685,620		$	4,405			1.05	%	$	1,657,714		$	6,904			1.69	%	$	1,721,831		$	6,598			1.52	%
Savings deposits		2,137,704			9,163			1.72	%		2,295,822			13,811			2.44	%		2,179,753			12,046			2.19	%
Time deposits		4,520,004			49,918			4.44	%		4,457,363			50,493			4.59	%		4,603,944			54,341			4.68	%
Total Interest-bearing Deposits		8,343,328			63,486			3.06	%		8,410,899			71,208			3.43	%		8,505,528			72,985			3.40	%
Short-term borrowings		2,347,463			18,828			3.19	%		1,552,495			19,054			4.93	%		2,020,751			22,249			4.33	%
Federal Home Loan Bank advances and long-term debt		1,798,508			21,007			4.69	%		1,450,016			18,619			5.14	%		1,624,613			21,184			5.19	%
Total Interest-bearing Liabilities		12,489,299			103,321			3.32	%		11,413,410			108,881			3.85	%		12,150,892			116,418			3.80	%
Noninterest-bearing liabilities:
Demand deposits		1,616,283									1,721,135									1,675,528
Other		190,496									189,297									180,907
Total Liabilities		14,296,078									13,323,842									14,007,327
Shareholders’ equity		1,585,064									1,508,598									1,557,684
Total Liabilities and Shareholders’ Equity	$	15,881,142								$	14,832,440								$	15,565,011
Net interest income/net interest margin (fully taxable equivalent)					129,598			3.58	%					124,933			3.74	%					127,211			3.56	%
Tax equivalent adjustment					(3,699	)								(3,158	)								(3,560	)
Net interest income				$	125,899								$	121,775								$	123,651

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

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

	Quarter Ended						% Change from
	March 31		March 31		December 31		March 31			December 31
	2008		2007		2007		2007			2007
Loans, by type:
Commercial - industrial, financial and agricultural	$	3,472,443	$	3,031,242	$	3,364,211		14.6	%		3.2	%
Real estate - commercial mortgage		3,547,507		3,239,179		3,438,386		9.5	%		3.2	%
Real estate - residential mortgage		861,054		701,918		831,825		22.7	%		3.5	%
Real estate - home equity		1,526,475		1,441,741		1,486,367		5.9	%		2.7	%
Real estate - construction		1,328,718		1,396,527		1,377,391		(4.9	%)		(3.5	%)
Consumer		473,245		516,335		499,253		(8.3	%)		(5.2	%)
Leasing and other		86,089		87,756		85,524		(1.9	%)		0.7	%
Total Loans, net of unearned income	$	11,295,531	$	10,414,698	$	11,082,957		8.5	%		1.9	%
Deposits, by type:
Noninterest-bearing demand	$	1,616,283	$	1,721,135	$	1,675,528		(6.1	%)		(3.5	%)
Interest-bearing demand		1,685,620		1,657,714		1,721,831		1.7	%		(2.1	%)
Savings deposits		2,137,704		2,295,822		2,179,753		(6.9	%)		(1.9	%)
Time deposits		4,520,004		4,457,363		4,603,944		1.4	%		(1.8	%)
Total Deposits	$	9,959,611	$	10,132,034	$	10,181,056		(1.7	%)		(2.2	%)
Short-term borrowings, by type:
Customer repurchase agreements	$	226,921	$	256,658	$	237,346		(11.6	%)		(4.4	%)
Short-term promissory notes		471,470		315,515		478,018		49.4	%		(1.4	%)
Federal funds purchased		1,184,370		915,241		975,732		29.4	%		21.4	%
Other		464,702		65,081		329,655		614.0	%		41.0	%
Total Short-term borrowings	$	2,347,463	$	1,552,495	$	2,020,751		51.2	%		16.2	%

4

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

	Quarter Ended
	March 31			March 31			December 31
	2008			2007			2007
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	112,209		$	106,884		$	109,435
Loans charged off		(5,626	)		(1,360	)		(5,068	)
Recoveries of loans previously charged off		1,266			1,418			1,042
Net loans (charged off) recovered		(4,360	)		58			(4,026	)
Provision for loan losses		11,220			957			6,800
Balance at end of period	$	119,069		$	107,899		$	112,209
Net charge-offs (recoveries) to average loans (annualized)		0.15	%		—			0.15	%
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES:
Allowance for loan losses	$	115,257		$	107,899		$	107,547
Reserve for unfunded lending commitments (1)		3,812			—			4,662
Allowance for credit losses	$	119,069		$	107,899		$	112,209
(1) Reserve for unfunded commitments transferred to other liabilities as of December 31, 2007. Prior periods were not reclassified.
NON-PERFORMING ASSETS:
Non-accrual loans	$	97,212		$	37,914		$	76,150
Accruing loans 90+ days overdue		29,733			13,467			29,782
Other real estate owned		18,333			6,576			14,934
Total non-performing assets	$	145,278		$	57,957		$	120,866
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		0.85	%		0.36	%		0.68	%
Non-performing assets to total loans and OREO		1.27	%		0.55	%		1.08	%
Non-performing assets to total assets		0.90	%		0.40	%		0.76	%
Allowance for credit losses to loans outstanding		1.05	%		1.03	%		1.00	%
Allowance for loan losses to loans outstanding		1.01	%		1.03	%		0.96	%
Allowance for credit losses to non-performing loans		94	%		210	%		106	%

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