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 (Date of earliest event reported): October 20, 2009

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 October 20, 2009 Fulton Financial Corporation announced its results of operations for the third quarter ended September 30, 2009. 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 20, 2009.
99.2	Supplemental financial information for the quarter ended September 30, 2009.

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 20, 2009	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 third quarter earnings

     (October 20) – Lancaster, PA — Fulton Financial Corporation (Nasdaq: FULT) reported net income available to common shareholders of $18.3 million for the quarter ended September 30, 2009, a 37.1 percent decrease from the same period in 2008. Diluted net income per share for the quarter was 10 cents, a 41.2 percent decrease from the same period in 2008. Diluted net income per share for the quarter increased 100.0 percent from the 5 cents reported in the second quarter of 2009.

     Net income available to common shareholders was $34.4 million for the nine months ended September 30, 2009, a 64.2 percent decrease from the same period in 2008. Diluted net income per share for the nine months ended September 30, 2009 was 20 cents, a 63.6 percent decrease from the 55 cents reported in 2008. Total assets at September 30, 2009 were $16.5 billion.

     “While the past year has been extremely challenging for us, the quarter just completed showed slowing in the rate of credit deterioration within our loan portfolio and, as a result, we were able to decrease the provision from the second quarter,” said R. Scott Smith, Jr., chairman and chief executive officer. “A shift in our deposit mix as a result of strong core checking and savings deposit growth along with lower re-pricing of maturing certificates of deposit accounted for the improvement in our net interest margin. While most non-interest income categories showed increases, our total other income was impacted by a slowdown in the high level of mortgage refinancing activity and subsequent sale gains that we saw earlier in the year. Expenses remain well controlled.”

     Loans, net of unearned income, increased $144.7 million, or 1.2 percent, to $12.0 billion at September 30, 2009, compared to $11.8 billion at September 30, 2008. The increase was primarily due to a $312.9 million, or 8.1 percent, increase in commercial mortgages and a $165.4 million, or 4.7 percent, increase in commercial loans. These increases were partially offset by a $278.9 million, or 21.3 percent, decrease in construction loans and a $42.7 million, or 4.4 percent, decrease in residential mortgages. In comparison to the second quarter of 2009, loans, net of unearned income, increased $101.4 million, or 0.9 percent, mainly due to a $105.8 million, or 2.9 percent, increase in

- MORE -

Page 2 . . . Fulton Financial reports third quarter earnings

commercial loans and a $65.4 million, or 1.6 percent, increase in commercial mortgages, offset by a $67.0 million, or 6.1 percent, decrease in construction loans.

     Non-performing assets were $300.9 million, or 1.82 percent of total assets, at September 30, 2009, compared to $186.4 million, or 1.15 percent, at September 30, 2008 and $292.2 million, or 1.73 percent, at June 30, 2009. The $114.5 million, or 61.5 percent, increase in non-performing assets since September 30, 2008 was primarily due to a $47.4 million, or 82.4 percent, increase in non-performing construction loans, a $22.3 million, or 68.3 percent, increase in non-performing commercial mortgages, a $21.7 million, or 52.4 percent, increase in non-performing commercial loans and a $19.9 million, or 75.8 percent, increase in non-performing residential mortgage and home equity loans.

     Annualized net charge-offs for the quarter ended September 30, 2009 were 0.81 percent of average total loans, compared to 0.38 percent for the quarter ended September 30, 2008 and 0.97 percent for the quarter ended June 30, 2009. The increase in charge-offs was primarily in construction loans and commercial loans. For the nine months ended September 30, 2009, annualized net charge-offs were 0.93 percent of average total loans, compared to 0.29 percent for the same period in 2008. The provision for loan losses increased $18.3 million, or 68.5 percent, for the third quarter of 2009 as compared to the same period in 2008, and decreased $5.0 million, or 10.0 percent, in comparison to the second quarter of 2009. For the nine months ended September 30, 2009, the provision for loan losses was $145.0 million, a 165.4 percent increase from the $54.6 million recorded during the nine months ended September 30, 2008. The increase in the provision for loan losses in comparison to the three and nine months ended September 30, 2008 was due to the increase in the level of non-performing assets and net charge-offs, which required additional increases to the allowance for credit losses.

     Total deposits increased $2.1 billion, or 21.3 percent, to $12.0 billion at September 30, 2009 compared to $9.9 billion at September 30, 2008. The increase was due to a $1.1 billion, or 24.6 percent, increase in time deposits and a $1.0 billion, or 18.7 percent, increase in demand and savings deposits. In comparison to the second quarter of 2009, total deposits increased $316.4 million, or 2.7 percent, due to a $414.6 million, or 6.7 percent, increase in demand and savings deposits, offset by a $98.2 million, or 1.8 percent, decrease in time deposits.

     Net interest income for the third quarter of 2009 decreased $1.2 million, or 0.9 percent, compared to the same period in 2008 and increased $4.9 million, or 3.8 percent, from the second quarter of 2009. The Corporation’s net interest margin was 3.55 percent for the third quarter of 2009, 3.77 percent for the third quarter of 2008 and 3.43 percent for second quarter of 2009.

     Other income, excluding investment securities gains (losses), increased $909,000, or 2.3 percent, in the third quarter of 2009 compared to the same period in 2008. The increase was due to

Page 3 . . . Fulton Financial reports third quarter earnings

a $512,000 increase in gains on sales of mortgage loans and an increase in servicing fees on mortgage loans sold with servicing retained, due to increased volumes of loans sold. These increases were offset by an $856,000 decrease in service charges on deposit accounts, primarily in cash management fees. Compared to the second quarter of 2009, other income, excluding investment securities gains (losses), decreased $4.1 million, or 9.0 percent, primarily due to a decrease in gains on sales of mortgage loans.

     Investment securities losses in the third quarter of 2009 were $45,000 compared to losses of $9.5 million in the third quarter of 2008. Investment securities losses in the third quarter of 2009 included $2.8 million of net gains on the sale of debt and equity securities, offset by $1.8 million of other-than-temporary impairment charges related to debt securities issued by financial institutions and $949,000 of other-than-temporary impairment charges related to bank stocks. During the third quarter of 2008, the Corporation recorded $7.8 million of other-than-temporary impairment charges related to debt securities issued by financial institutions and $2.0 million of other-than-temporary impairment charges related to bank stocks.

     Other expenses increased $455,000, or 0.5 percent, in the third quarter of 2009 compared to the same period in 2008. The increase was primarily due to $4.1 million increase in Federal Deposit Insurance Corporation (FDIC) insurance expense, partially offset by a decrease of $3.1 million in operating risk loss. During the third quarter of 2008, the Corporation recorded $2.7 million of charges, as a component of operating risk loss, related to its decision to purchase illiquid auction rate securities previously sold to customers of the Corporation’s investment management and trust subsidiary, Fulton Financial Advisors, N.A. (FFA). During the second quarter of 2009, the Corporation purchased all outstanding auction rate securities held by FFA’s customers. In comparison to the second quarter of 2009, other expenses decreased $8.0 million, or 7.4 percent. The decrease was primarily due to a $7.7 million special FDIC assessment recorded in the second quarter of 2009.

     Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has nearly 3,900 employees and operates more than 270 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; 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,

Page 4 . . . Fulton Financial reports third quarter earnings

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,” “intends,” “forecasts,” “projects,” “will” and similar words and expressions are used in its press releases, 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; 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 borrowings; changes in the levels of FDIC deposit insurance premiums and assessments; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and income growth; investment securities gains and losses; declines in the value of securities which may result in charges to earnings; 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; salaries and employee benefits and other expenses;

Page 5 . . . Fulton Financial reports third quarter earnings

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.

# # #

2009

EX-99.2

Exhibit 99.2

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

	September 30
	2009		2008		% Change
BALANCE SHEET DATA
Total assets	$	16,526,709	$	16,136,145		2.4	%
Loans, net of unearned income		11,968,246		11,823,529		1.2	%
Investment securities		3,274,399		2,806,535		16.7	%
Deposits		12,032,680		9,916,555		21.3	%
Shareholders’ equity		1,923,763		1,603,910		19.9	%

										Nine Months Ended
	Quarter Ended September 30									September 30
	2009			2008			% Change			2009			2008			% Change
INCOME SUMMARY
Interest income	$	197,861		$	213,809			(7.5	%)	$	591,525		$	658,421			(10.2	%)
Interest expense		(65,060	)		(79,791	)		(18.5	%)		(206,664	)		(266,614	)		(22.5	%)
Net interest income		132,801			134,018			(0.9	%)		384,861			391,807			(1.8	%)
Provision for loan losses		(45,000	)		(26,700	)		68.5	%		(145,000	)		(54,626	)		165.4	%
Investment securities gains (losses)		(45	)		(9,501	)		99.5	%		2,951			(29,902	)		N/M
Gain on sale of credit card portfolio		—			—			—			—			13,910			(100.0	%)
Other income		41,225			40,316			2.3	%		130,520			116,637			11.9	%
Other expenses		(99,810	)		(99,355	)		0.5	%		(313,988	)		(305,751	)		2.7	%
Income before income taxes		29,171			38,778			(24.8	%)		59,344			132,075			(55.1	%)
Income tax expense		(5,825	)		(9,702	)		(40.0	%)		(9,802	)		(35,825	)		(72.6	%)
Net income		23,346			29,076			(19.7	%)	$	49,542		$	96,250			(48.5	%)
Preferred stock dividends and discount accretion		(5,046	)		—			N/A			(15,123	)		—			N/A
Net income available to common shareholders	$	18,300		$	29,076			(37.1	%)	$	34,419		$	96,250			(64.2	%)
PER COMMON SHARE:
Net income:
Basic	$	0.10		$	0.17			(41.2	%)	$	0.20		$	0.55			(63.6	%)
Diluted		0.10			0.17			(41.2	%)		0.20			0.55			(63.6	%)
Cash dividends		0.03			0.15			(80.0	%)		0.09			0.45			(80.0	%)
Shareholders’ equity		8.82			9.18			(3.9	%)		8.82			9.18			(3.9	%)
Shareholders’ equity (tangible)		5.68			5.46			4.0	%		5.68			5.46			4.0	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.56	%		0.73	%					0.40	%		0.81	%
Return on average common shareholders’ equity		4.78	%		7.25	%					3.06	%		8.02	%
Return on average common shareholders’ equity (tangible)		7.91	%		12.72	%					5.24	%		14.00	%
Net interest margin		3.55	%		3.77	%					3.48	%		3.71	%
Efficiency ratio		55.33	%		54.74	%					58.76	%		56.22	%
Tangible common equity to tangible assets		6.26	%		6.16	%					6.26	%		6.16	%
Non-performing assets to total assets		1.82	%		1.15	%					1.82	%		1.15	%

N/A - Not applicable
N/M - Not meaningful

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
	2009			2008			2009			2008			2009
ASSETS
Cash and due from banks	$	252,004		$	315,841		$	299,818			(20.2	%)		(15.9	%)
Loans held for sale		84,766			71,090			242,439			19.2	%		(65.0	%)
Other interest-earning assets		24,048			50,189			25,890			(52.1	%)		(7.1	%)
Investment securities		3,274,399			2,806,535			3,335,403			16.7	%		(1.8	%)
Loans, net of unearned income		11,968,246			11,823,529			11,866,818			1.2	%		0.9	%
Allowance for loan losses		(234,511	)		(136,988	)		(214,170	)		71.2	%		9.5	%
Net Loans		11,733,735			11,686,541			11,652,648			0.4	%		0.7	%
Premises and equipment		204,520			199,464			205,074			2.5	%		(0.3	%)
Accrued interest receivable		60,433			62,018			58,077			(2.6	%)		4.1	%
Goodwill and intangible assets		554,041			649,635			555,272			(14.7	%)		(0.2	%)
Other assets		338,763			294,832			501,231			14.9	%		(32.4	%)
Total Assets	$	16,526,709		$	16,136,145		$	16,875,852			2.4	%		(2.1	%)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	12,032,680		$	9,916,555		$	11,716,297			21.3	%		2.7	%
Short-term borrowings		722,618			2,589,966			1,317,293			(72.1	%)		(45.1	%)
Federal Home Loan Bank advances and long-term debt		1,650,870			1,819,889			1,750,967			(9.3	%)		(5.7	%)
Other liabilities		196,778			205,825			218,367			(4.4	%)		(9.9	%)
Total Liabilities		14,602,946			14,532,235			15,002,924			0.5	%		(2.7	%)
Preferred stock		369,950			—			369,610			N/A			0.1	%
Common shareholders’ equity		1,553,813			1,603,910			1,503,318			(3.1	%)		3.4	%
Total Shareholders’ Equity		1,923,763			1,603,910			1,872,928			19.9	%		2.7	%
Total Liabilities and Shareholders’ Equity	$	16,526,709		$	16,136,145		$	16,875,852			2.4	%		(2.1	%)
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	4,186,654		$	3,873,802		$	4,121,208			8.1	%		1.6	%
Commercial - industrial, financial and agricultural		3,719,966			3,554,615			3,614,144			4.7	%		2.9	%
Real estate - home equity		1,651,711			1,647,063			1,653,461			0.3	%		(0.1	%)
Real estate - construction		1,029,079			1,308,008			1,096,047			(21.3	%)		(6.1	%)
Real estate - residential mortgage		930,207			972,930			925,270			(4.4	%)		0.5	%
Consumer		375,685			388,032			371,492			(3.2	%)		1.1	%
Leasing and other		74,944			79,079			85,196			(5.2	%)		(12.0	%)
Total Loans, net of unearned income	$	11,968,246		$	11,823,529		$	11,866,818			1.2	%		0.9	%
Deposits, by type:
Noninterest-bearing demand	$	1,932,382		$	1,690,499		$	1,942,845			14.3	%		(0.5	%)
Interest-bearing demand		1,922,648			1,690,330			1,793,070			13.7	%		7.2	%
Savings deposits		2,732,284			2,166,998			2,436,815			26.1	%		12.1	%
Time deposits		5,445,366			4,368,728			5,543,567			24.6	%		(1.8	%)
Total Deposits	$	12,032,680		$	9,916,555		$	11,716,297			21.3	%		2.7	%
Short-term borrowings, by type:
Federal funds purchased	$	210,865		$	1,326,873		$	781,357			(84.1	%)		(73.0	%)
Short-term promissory notes		258,911			460,512			274,028			(43.8	%)		(5.5	%)
Customer repurchase agreements		252,842			222,415			261,444			13.7	%		(3.3	%)
Overnight borrowings and other		—			580,166			464			(100.0	%)		(100.0	%)
Total Short-term borrowings	$	722,618		$	2,589,966		$	1,317,293			(72.1	%)		(45.1	%)

     N/A - Not Applicable

2

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

	Quarter Ended									% Change from						Nine Months Ended
	Sep 30			Sep 30			Jun 30			Sep 30			Jun 30			September 30
	2009			2008			2009			2008			2009			2009			2008			% Change
Interest Income:
Interest income	$	197,861		$	213,809		$	198,097			(7.5	%)		(0.1	%)	$	591,525		$	658,421			(10.2	%)
Interest expense		65,060			79,791			70,153			(18.5	%)		(7.3	%)		206,664			266,614			(22.5	%)
Net Interest Income		132,801			134,018			127,944			(0.9	%)		3.8	%		384,861			391,807			(1.8	%)
Provision for loan losses		45,000			26,700			50,000			68.5	%		(10.0	%)		145,000			54,626			165.4	%
Net Interest Income after Provision		87,801			107,318			77,944			(18.2	%)		12.6	%		239,861			337,181			(28.9	%)
Other Income:
Service charges on deposit accounts		15,321			16,177			15,061			(5.3	%)		1.7	%		45,276			45,463			(0.4	%)
Other service charges and fees		10,003			9,598			9,595			4.2	%		4.3	%		27,952			27,320			2.3	%
Investment management and trust services		8,191			8,045			7,876			1.8	%		4.0	%		23,970			25,193			(4.9	%)
Gains on sales of mortgage loans		2,778			2,266			7,395			22.6	%		(62.4	%)		18,764			7,247			158.9	%
Investment securities gains (losses)		(45	)		(9,501	)		77			99.5	%		N/M			2,951			(29,902	)		N/M
Gain on sale of credit card portfolio		—			—			—			—			—			—			13,910			(100.0	%)
Other		4,932			4,230			5,373			16.6	%		(8.2	%)		14,558			11,414			27.5	%
Total Other Income		41,180			30,815			45,377			33.6	%		(9.2	%)		133,471			100,645			32.6	%
Other Expenses:
Salaries and employee benefits		54,086			55,310			55,799			(2.2	%)		(3.1	%)		165,189			164,786			0.2	%
Net occupancy expense		10,165			10,237			10,240			(0.7	%)		(0.7	%)		31,428			30,999			1.4	%
FDIC insurance expense		5,244			1,147			12,206			357.2	%		(57.0	%)		21,738			2,684			709.9	%
Equipment expense		3,281			3,061			3,300			7.2	%		(0.6	%)		9,660			9,907			(2.5	%)
Data processing		3,121			3,242			2,907			(3.7	%)		7.4	%		9,100			9,604			(5.2	%)
Marketing		1,982			3,097			1,724			(36.0	%)		15.0	%		6,277			9,521			(34.1	%)
Intangible amortization		1,429			1,730			1,434			(17.4	%)		(0.3	%)		4,326			5,386			(19.7	%)
Operating risk loss		338			3,480			144			(90.3	%)		134.7	%		6,683			19,108			(65.0	%)
Other		20,164			18,051			20,052			11.7	%		0.6	%		59,587			53,756			10.8	%
Total Other Expenses		99,810			99,355			107,806			0.5	%		(7.4	%)		313,988			305,751			2.7	%
Income Before Income Taxes		29,171			38,778			15,515			(24.8	%)		88.0	%		59,344			132,075			(55.1	%)
Income tax expense		5,825			9,702			2,404			(40.0	%)		142.3	%		9,802			35,825			(72.6	%)
Net Income		23,346			29,076			13,111			(19.7	%)		78.1	%		49,542			96,250			(48.5	%)
Preferred stock dividends and discount accretion		(5,046	)		—			(5,046	)		N/A			—			(15,123	)		—			N/A
Net Income Available to Common Shareholders	$	18,300		$	29,076		$	8,065			(37.1	%)		126.9	%	$	34,419		$	96,250			(64.2	%)
PER COMMON SHARE:
Net income:
Basic	$	0.10		$	0.17		$	0.05			(41.2	%)		100.0	%	$	0.20		$	0.55			(63.6	%)
Diluted		0.10			0.17			0.05			(41.2	%)		100.0	%		0.20			0.55			(63.6	%)
Cash dividends	$	0.03		$	0.15		$	0.03			(80.0	%)		—		$	0.09		$	0.45			(80.0	%)
Shareholders’ equity		8.82			9.18			8.56			(3.9	%)		3.0	%		8.82			9.18			(3.9	%)
Shareholders’ equity (tangible)		5.68			5.46			5.40			4.0	%		5.2	%		5.68			5.46			4.0	%
Weighted average shares (basic)		175,783			174,463			175,554			0.8	%		0.1	%		175,552			174,017			0.9	%
Weighted average shares (diluted)		176,078			174,912			175,724			0.7	%		0.2	%		175,785			174,551			0.7	%
Shares outstanding, end of period		176,149			174,687			175,706			0.8	%		0.3	%		176,149			174,687			0.8	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.56	%		0.73	%		0.32	%								0.40	%		0.81	%
Return on average common shareholders’ equity		4.78	%		7.25	%		2.16	%								3.06	%		8.02	%
Return on average common shareholders’ equity (tangible)		7.91	%		12.72	%		3.83	%								5.24	%		14.00	%
Net interest margin		3.55	%		3.77	%		3.43	%								3.48	%		3.71	%
Efficiency ratio		55.33	%		54.74	%		60.08	%								58.76	%		56.22	%
N/A - Not applicable
N/M - Not meaningful

3

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

	Quarter Ended
	September 30, 2009									September 30, 2008									June 30, 2009
	Average						Yield/			Average						Yield/			Average						Yield/
	Balance			Interest (1)			Rate			Balance			Interest (1)			Rate			Balance			Interest (1)			Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,913,581		$	163,915			5.46	%	$	11,696,841		$	181,562			6.18	%	$	11,960,669		$	163,744			5.49	%
Taxable investment securities		2,722,751			29,376			4.31	%		2,117,207			26,025			4.92	%		2,673,136			29,422			4.40	%
Tax-exempt investment securities		436,209			6,101			5.59	%		509,994			6,944			5.45	%		462,991			6,425			5.55	%
Equity securities		132,176			632			1.90	%		168,690			1,614			3.82	%		134,702			660			1.96	%
Total Investment Securities		3,291,136			36,109			4.39	%		2,795,891			34,583			4.95	%		3,270,829			36,507			4.47	%
Loans held for sale		102,367			1,550			6.06	%		101,319			1,539			6.08	%		139,354			1,628			4.67	%
Other interest-earning assets		24,348			51			0.83	%		19,013			142			2.94	%		20,897			40			0.76	%
Total Interest-earning Assets		15,331,432			201,625			5.23	%		14,613,064			217,826			5.94	%		15,391,749			201,919			5.26	%
Noninterest-earning assets:
Cash and due from banks		301,875									322,550									283,399
Premises and equipment		204,416									197,895									204,451
Other assets		959,628									933,303									938,156
Less: allowance for loan losses		(234,446	)								(123,865	)								(211,166	)
Total Assets	$	16,562,905								$	15,942,947								$	16,606,589
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,883,087		$	2,119			0.45	%	$	1,734,198		$	3,166			0.73	%	$	1,818,897		$	2,002			0.44	%
Savings deposits		2,556,717			5,187			0.80	%		2,192,747			6,633			1.20	%		2,307,089			4,401			0.76	%
Time deposits		5,554,349			36,519			2.61	%		4,308,903			37,393			3.45	%		5,625,841			41,604			2.97	%
Total Interest-bearing Deposits		9,994,153			43,825			1.74	%		8,235,848			47,192			2.28	%		9,751,827			48,007			1.97	%
Short-term borrowings		863,281			835			0.38	%		2,432,109			12,877			2.08	%		1,186,541			921			0.31	%
Federal Home Loan Bank advances and long-term debt		1,695,427			20,400			4.77	%		1,819,897			19,722			4.32	%		1,780,120			21,225			4.78	%
Total Interest-bearing Liabilities		12,552,861			65,060			2.06	%		12,487,854			79,791			2.54	%		12,718,488			70,153			2.21	%
Noninterest-bearing liabilities:
Demand deposits		1,922,460									1,669,908									1,812,539
Other		198,314									190,012									206,901
Total Liabilities		14,673,635									14,347,774									14,737,928
Shareholders’ equity		1,889,270									1,595,173									1,868,661
Total Liabilities and Shareholders’ Equity	$	16,562,905								$	15,942,947								$	16,606,589
Net interest income/net interest margin (fully taxable equivalent)					136,565			3.55	%					138,035			3.77	%					131,766			3.43	%
Tax equivalent adjustment					(3,764	)								(4,017	)								(3,822	)
Net interest income				$	132,801								$	134,018								$	127,944

(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
	September 30		September 30		June 30		September 30			June 30
	2009		2008		2009		2008			2009
Loans, by type:
Real estate - commercial mortgage	$	4,158,802	$	3,806,311	$	4,091,498		9.3	%		1.6	%
Commercial - industrial, financial and agricultural		3,667,854		3,545,797		3,656,294		3.4	%		0.3	%
Real estate - home equity		1,651,400		1,619,687		1,668,562		2.0	%		(1.0	%)
Real estate - construction		1,050,359		1,324,085		1,152,195		(20.7	%)		(8.8	%)
Real estate - residential mortgage		933,943		947,510		935,983		(1.4	%)		(0.2	%)
Consumer		371,676		369,052		371,610		0.7	%		—
Leasing and other		79,547		84,399		84,527		(5.7	%)		(5.9	%)
Total Loans, net of unearned income	$	11,913,581	$	11,696,841	$	11,960,669		1.9	%		(0.4	%)
Deposits, by type:
Noninterest-bearing demand	$	1,922,460	$	1,669,908	$	1,812,539		15.1	%		6.1	%
Interest-bearing demand		1,883,087		1,734,198		1,818,897		8.6	%		3.5	%
Savings deposits		2,556,717		2,192,747		2,307,089		16.6	%		10.8	%
Time deposits		5,554,349		4,308,903		5,625,841		28.9	%		(1.3	%)
Total Deposits	$	11,916,613	$	9,905,756	$	11,564,366		20.3	%		3.0	%
Short-term borrowings, by type:
Federal funds purchased	$	348,444	$	1,399,130	$	580,020		(75.1	%)		(39.9	%)
Short-term promissory notes		259,534		486,179		297,743		(46.6	%)		(12.8	%)
Customer repurchase agreements		254,789		213,827		256,306		19.2	%		(0.6	%)
Federal Reserve Bank borrowings		—		—		48,352		—			(100.0	%)
Overnight borrowings and other		514		332,973		4,120		(99.8	%)		(87.5	%)
Total Short-term borrowings	$	863,281	$	2,432,109	$	1,186,541		(64.5	%)		(27.2	%)

4

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

	Nine Months Ended September 30
	2009									2008
	Average									Average
	Balance			Interest (1)			Yield/Rate			Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,971,378		$	491,412			5.49	%	$	11,472,748		$	554,437			6.45	%
Taxable investment securities		2,538,045			85,648			4.50	%		2,275,681			84,114			4.93	%
Tax-exempt investment securities		467,242			19,413			5.54	%		511,871			20,831			5.43	%
Equity securities		134,710			2,066			2.05	%		192,803			5,723			3.96	%
Total Investment Securities		3,139,997			107,127			4.55	%		2,980,355			110,668			4.95	%
Loans held for sale		115,388			4,439			5.13	%		102,819			4,726			6.13	%
Other interest-earning assets		20,754			140			0.90	%		20,701			462			2.96	%
Total Interest-earning Assets		15,247,517			603,118			5.29	%		14,576,623			670,293			6.14	%
Noninterest-earning assets:
Cash and due from banks		301,009									318,844
Premises and equipment		203,919									196,977
Other assets		940,974									948,134
Less: allowance for loan losses		(211,105	)								(116,598	)
Total Assets	$	16,482,314								$	15,923,980
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,819,135		$	5,896			0.43	%	$	1,709,380		$	10,538			0.82	%
Savings deposits		2,309,103			13,941			0.81	%		2,179,432			22,396			1.37	%
Time deposits		5,538,068			121,890			2.94	%		4,396,409			128,873			3.92	%
Total Interest-bearing Deposits		9,666,306			141,727			1.96	%		8,285,221			161,807			2.61	%
Short-term borrowings		1,186,568			3,193			0.36	%		2,365,052			44,093			2.46	%
Federal Home Loan Bank advances and long-term debt		1,754,010			61,744			4.71	%		1,829,981			60,714			4.43	%
Total Interest-bearing Liabilities		12,606,884			206,664			2.19	%		12,480,254			266,614			2.85	%
Noninterest-bearing liabilities:
Demand deposits		1,798,522									1,649,560
Other		202,209									190,487
Total Liabilities		14,607,615									14,320,301
Shareholders’ equity		1,874,699									1,603,679
Total Liabilities and Shareholders’ Equity	$	16,482,314								$	15,923,980
Net interest income/net interest margin (fully taxable equivalent)					396,454			3.48	%					403,679			3.71	%
Tax equivalent adjustment					(11,593	)								(11,872	)
Net interest income				$	384,861								$	391,807

(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:

	Nine Months Ended
	September 30
	2009		2008		% Change
Loans, by type:
Real estate - commercial mortgage	$	4,100,119	$	3,673,874		11.6	%
Commercial - industrial, financial and agricultural		3,660,083		3,504,467		4.4	%
Real estate - home equity		1,672,678		1,571,567		6.4	%
Real estate - construction		1,143,476		1,332,548		(14.2	%)
Real estate - residential mortgage		942,407		898,875		4.8	%
Consumer		368,109		406,196		(9.4	%)
Leasing and other		84,506		85,221		(0.8	%)
Total Loans, net of unearned income	$	11,971,378	$	11,472,748		4.3	%
Deposits, by type:
Noninterest-bearing demand	$	1,798,522	$	1,649,560		9.0	%
Interest-bearing demand		1,819,135		1,709,380		6.4	%
Savings deposits		2,309,103		2,179,432		5.9	%
Time deposits		5,538,068		4,396,409		26.0	%
Total Deposits	$	11,464,828	$	9,934,781		15.4	%
Short-term borrowings, by type:
Federal funds purchased	$	571,864	$	1,296,074		(55.9	%)
Short-term promissory notes		297,831		475,523		(37.4	%)
Customer repurchase agreements		252,539		221,253		14.1	%
Federal Reserve Bank borrowings		61,685		—		N/A
Overnight borrowings and other		2,649		372,202		(99.3	%)
Total Short-term borrowings	$	1,186,568	$	2,365,052		(49.8	%)

N/A - Not applicable 

5

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

	Quarter Ended									Nine Months Ended
	September 30			September 30			June 30			September 30
	2009			2008			2009			2009			2008
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	220,954		$	126,223		$	200,063		$	180,137		$	112,209
Loans charged off:
Real estate - construction		(9,356	)		(2,733	)		(11,294	)		(32,892	)		(3,014	)
Commercial - industrial, agricultural and financial		(7,787	)		(4,684	)		(6,274	)		(24,683	)		(12,200	)
Real estate - commercial mortgage		(3,554	)		(2,405	)		(2,405	)		(13,475	)		(2,828	)
Real estate - residential mortgage and home equity		(1,065	)		(719	)		(1,830	)		(4,832	)		(2,969	)
Consumer		(2,527	)		(991	)		(3,064	)		(7,667	)		(3,738	)
Leasing and other		(1,637	)		(1,166	)		(2,099	)		(4,682	)		(3,771	)
Total loans charged off		(25,926	)		(12,698	)		(30,522	)		(88,231	)		(28,520	)
Recoveries of loans charged off:
Real estate - construction		26			17			214			352			17
Commercial - industrial, agricultural and financial		444			749			306			1,654			1,025
Real estate - commercial mortgage		493			88			25			528			230
Real estate - residential mortgage and home equity		1			133			147			149			138
Consumer		354			304			511			1,294			1,022
Leasing and other		375			313			210			838			1,082
Recoveries of loans previously charged off		1,693			1,604			1,413			4,815			3,514
Net loans charged off		(24,233	)		(11,094	)		(29,109	)		(83,416	)		(25,006	)
Provision for loan losses		45,000			26,700			50,000			145,000			54,626
Balance at end of period	$	241,721		$	141,829		$	220,954		$	241,721		$	141,829
Net charge-offs to average loans (annualized)		0.81	%		0.38	%		0.97	%		0.93	%		0.29	%
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES:
Allowance for loan losses	$	234,511		$	136,988		$	214,170
Reserve for unfunded lending commitments		7,210			4,841			6,784
Allowance for credit losses	$	241,721		$	141,829		$	220,954
NON-PERFORMING ASSETS:
Non-accrual loans	$	228,961		$	143,310		$	228,132
Loans 90 days past due and accruing		52,797			21,354			39,135
Total non-performing loans		281,758			164,664			267,267
Other real estate owned		19,151			21,706			24,916
Total non-performing assets	$	300,909		$	186,370		$	292,183
NON-PERFORMING LOANS, BY TYPE:
Real estate - construction	$	104,789		$	57,436		$	102,977
Commercial - industrial, agricultural and financial		63,217			41,489			58,433
Real estate - commercial mortgage		54,930			32,642			57,786
Real estate - residential mortgage and home equity		46,192			26,274			37,231
Consumer		12,292			6,558			9,764
Leasing		338			265			1,076
Total non-performing loans	$	281,758		$	164,664		$	267,267
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		1.91	%		1.21	%		1.92	%
Non-performing assets to total loans and OREO		2.51	%		1.57	%		2.46	%
Non-performing assets to total assets		1.82	%		1.15	%		1.73	%
Allowance for credit losses to loans outstanding		2.02	%		1.20	%		1.86	%
Allowance for loan losses to loans outstanding		1.96	%		1.16	%		1.80	%
Allowance for credit losses to non-performing loans		85.79	%		86.13	%		82.67	%
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses		24.24	%		17.00	%		24.99	%

6