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): January 19, 2010

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:

¨ Written communications pursuant to Rule 425 under the Securities Act

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

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

¨ 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 19, 2010 Fulton Financial Corporation announced its results of operations for the fourth quarter and year ended December 31, 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 January 19, 2010.
99.2	Supplemental financial information for the quarter and year ended December 31, 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: January 19, 2010	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 2009 earnings

(January 19, 2010) – Lancaster, PA — Fulton Financial Corporation (Nasdaq: FULT) reported net income available to common shareholders of $19.3 million, or 11 cents per diluted share, for the fourth quarter ended December 31, 2009, compared to a net loss available to common shareholders of $102.3 million, or 58 cents per diluted share, for the fourth quarter of 2008. Diluted net income per share increased 10.0 percent from the 10 cents reported in the third quarter of 2009.

The $121.7 million increase in the Corporation’s earnings for the fourth quarter of 2009 in comparison to the same period in 2008 was primarily due to a $90.0 million goodwill impairment charge recorded in the fourth quarter of 2008, a $20.0 million reduction in provision for loan losses, and a $21.9 million decrease in other-than-temporary impairment charges related to investment securities.

For the year ended December 31, 2009, net income available to common shareholders was $53.8 million, or 31 cents per diluted share, compared to a net loss available to common shareholders of $6.1 million, or 3 cents per diluted share, for 2008.

The $59.8 million increase in the Corporation’s earnings for the year ended December 31, 2009 in comparison to 2008 was primarily due to the $90.0 million goodwill impairment charge recorded in 2008 and a $51.9 million decrease in other-than-temporary impairment charges related to investment securities, partially offset by a $70.4 million increase in the provision for loan losses, a $22.0 million increase in Federal Deposit Insurance Corporation (FDIC) insurance expense and a $19.7 million increase in preferred stock dividends and discount accretion.

“Our performance in 2009 was characterized by significant deposit growth, good growth in non-interest income helped by our mortgage banking operations, continued tight control of expenses and, particularly in the second half of the year, stabilization of our credit quality metrics,” said R. Scott Smith, Jr., chairman and chief executive officer. “On a linked quarter basis, our net interest margin increased nicely due to continued strong core deposit growth and a reduction in the cost of time deposits. Expenses were flat. The stabilization in our asset quality enabled us to

- MORE -

Page 2 … Fulton Financial reports 2009 earnings

maintain the same level of provision from the third to the fourthquarter. We believe we are positioned well for an upturn in economic activity.”

Total assets at December 31, 2009 were $16.6 billion, an increase of 2.8 percent over December 31, 2008. Loans, net of unearned income, decreased $70.2 million, or 0.6 percent, to $12.0 billion, at December 31, 2009. The decrease was primarily due to a $291.1 million, or 22.9 percent, decrease in construction loans, a $51.1 million, or 3.0 percent, decrease in home equity loans and a $51.1 million, or 5.2 percent, decrease in residential mortgages. These decreases were partially offset by a $275.6 million, or 6.9 percent, increase in commercial mortgages and a $63.7 million, or 1.8 percent, increase in commercial loans. In comparison to September 30, 2009, loans, net of unearned income, were essentially unchanged. Increases in commercial mortgages of $105.6 million, or 2.5 percent, were offset by a $50.8 million, or 4.9 percent, decrease in construction loans, a $20.8 million, or 0.6 percent, decrease in commercial loans and a $15.0 million, or 4.0 percent, decrease in consumer loans.

Non-performing assets were $305.0 million, or 1.83 percent of total assets, at December 31, 2009, compared to $219.0 million, or 1.35 percent of total assets, at December 31, 2008 and $300.9 million, or 1.82 percent, at September 30, 2009. The $86.0 million, or 39.3 percent, increase in non-performing assets since December 31, 2008 occurred across all loan types as a result of the weakened economic conditions.

Annualized net charge-offs for the quarter ended December 31, 2009 were 0.97 percent of average total loans compared to 0.89 percent for the quarter ended December 31, 2008 and 0.81 percent for the quarter ended September 30, 2009. For the year ended December 31, 2009, net charge-offs were 0.94 percent of average total loans compared to 0.45 percent for 2008. The provision for loan losses decreased $20.0 million, or 30.7 percent, for the fourth quarter of 2009 as compared to the same period in 2008, and was unchanged from the third quarter of 2009. For the year ended December 31, 2009, the provision for loan losses was $190.0 million, a 58.8 percent increase from the $119.6 million recorded in 2008. The increase in the provision for loan losses compared to 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 $1.5 billion, or 14.7 percent, to $12.1 billion at December 31, 2009 compared to $10.6 billion at December 31, 2008. The increase was due to a $1.3 billion, or 24.4 percent, increase in demand and savings deposits and a $215.7 million, or 4.2 percent, increase in time deposits. In comparison to the third quarter of 2009, total deposits increased $65.2 million, or 0.5 percent, due to a $196.7 million, or 3.0 percent, increase in demand and savings deposits, offset by a $131.5 million, or 2.4 percent, decrease in time deposits.

Page 3 … Fulton Financial reports 2009 earnings

Net interest income for the fourth quarter of 2009 increased $3.8 million, or 2.8 percent, compared to the same period in 2008 and increased $3.3 million, or 2.5 percent, from the third quarter of 2009. The Corporation’s net interest margin was 3.67 percent for the fourth quarter of 2009, 3.68 percent for the fourth quarter of 2008 and 3.55 percent for third quarter of 2009.

Other income, excluding investment securities gains (losses), increased $2.4 million, or 6.2 percent, in the fourth quarter of 2009 compared to the same period in 2008. The increase was due to a $795,000 increase in gains on sales of mortgage loans, a $565,000 increase in investment management and trust services income and a $442,000 increase in other service charges and fees. In addition, in the fourth quarter of 2008, a $1.0 million mortgage servicing rights impairment charge was recorded as a decrease to mortgage servicing income. These increases were partially offset by a $1.0 million decrease in service charges on deposit accounts, primarily due to a decrease in cash management accounts. Compared to the third quarter of 2009, other income, excluding investment securities gains (losses), decreased $68,000, or 0.2 percent.

Investment securities losses in the fourth quarter of 2009 were $1.9 million compared to $28.3 million in the fourth quarter of 2008 and $45,000 in the third quarter of 2009. The following table summarizes the net realized gains and other-than-temporary impairment charges by type of security:

	Quarter Ended
	Dec 31, 2009			Dec 31, 2008			Sep 30, 2009
	(in thousands)
Net realized gains (losses):
Debt securities	$	2,289		$	(2,691	)	$	3,109
Equity securities		26			417			(359	)
Other-than-temporary impairment charges:
Debt securities		(2,995	)		(12,842	)		(1,846	)
Equity securities		(1,192	)		(13,223	)		(949	)
Investment securities gains (losses)	$	(1,872	)	$	(28,399	)	$	(45	)

Other expenses, excluding the $90.0 million goodwill impairment charge recorded in the fourth quarter of 2008, decreased $504,000, or 0.5 percent, in the fourth quarter of 2009 compared to the same period in 2008. Compared to the third quarter of 2009, other expenses increased $560,000, or 0.6 percent.

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

Page 4 … Fulton Financial reports 2009 earnings

Bank, Woodbury, NJ; Skylands Community Bank, Hackettstown, NJ and The Columbia Bank, Columbia, MD.

The Corporation’s investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. 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. 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: 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; 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

Page 5 … Fulton Financial reports 2009 earnings

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; balances of risk-sensitive assets to risk-sensitive liabilities; salaries and 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.

# # #

2010

EX-99.2

Exhibit 99.2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

dollars in thousands, except per-share data

	December 31				% Change
	2009		2008
BALANCE SHEET DATA
Total assets	$	16,635,635	$	16,185,106	2.8	%
Loans, net of unearned income		11,972,424		12,042,620	(0.6	)%
Investment securities		3,267,086		2,724,841	19.9	%
Deposits		12,097,914		10,551,916	14.7	%
Shareholders’ equity		1,936,482		1,859,647	4.1	%

	Quarter Ended December 31						% Change		Year Ended December 31						% Change
	2009			2008					2009			2008
INCOME SUMMARY
Interest income	$	194,942		$	209,073		(6.8	)%	$	786,467		$	867,494		(9.3	)%
Interest expense		(58,849	)		(76,732	)	(23.3	)%		(265,513	)		(343,346	)	(22.7	)%
Net interest income		136,093			132,341		2.8	%		520,954			524,148		(0.6	)%
Provision for loan losses		(45,020	)		(65,000	)	(30.7	)%		(190,020	)		(119,626	)	58.8	%
Investment securities gains (losses)		(1,872	)		(28,339	)	93.4	%		1,079			(58,241	)	N/M
Gain on sale of credit card portfolio		—			—		—			—			13,910		N/A
Other income		41,157			38,750		6.2	%		171,677			155,387		10.5	%
Goodwill impairment		—			(90,000	)	N/A			—			(90,000	)	N/A
Other expenses		(100,370	)		(100,874	)	(0.5	)%		(414,358	)		(406,625	)	1.9	%
Income (loss) before income taxes		29,988			(113,122	)	N/M			89,332			18,953		371.3	%
Income tax (expense) benefit		(5,606	)		11,255		N/M			(15,408	)		(24,570	)	(37.3	)%
Net income (loss)		24,382			(101,867	)	N/M			73,924			(5,617	)	N/M
Preferred stock dividends and discount accretion		(5,046	)		(463	)	N/M			(20,169	)		(463	)	N/M
Net income (loss) available to common shareholders	$	19,336		$	(102,330	)	N/M		$	53,755		$	(6,080	)	N/M
PER COMMON SHARE:
Net income (loss):
Basic	$	0.11		$	(0.58	)	N/M		$	0.31		$	(0.03	)	N/M
Diluted		0.11			(0.58	)	N/M			0.31			(0.03	)	N/M
Cash dividends		0.03			0.15		(80.0	)%		0.12			0.60		(80.0	)%
Shareholders’ equity		8.88			8.52		4.2	%		8.88			8.52		4.2	%
Shareholders’ equity (tangible)		5.75			5.33		7.9	%		5.75			5.33		7.9	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.59	%		(2.51	)%				0.45	%		(0.04	)%
Return on average common shareholders’ equity		4.91	%		(25.56	)%				3.54	%		(0.38	)%
Return on average common shareholders’ equity (tangible)		7.96	%		(4.71	)%				5.96	%		9.33	%
Net interest margin		3.67	%		3.68	%				3.52	%		3.70	%
Efficiency ratio		54.61	%		56.57	%				57.70	%		56.31	%
Tangible common equity to tangible assets		6.30	%		5.97	%				6.30	%		5.97	%
Non-performing assets to total assets		1.83	%		1.35	%				1.83	%		1.35	%

N/A - Not applicable

N/M - Not meaningful

1

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands

										% Change from
	December 31 2009			December 31 2008			September 30 2009			December 31 2008		September 30 2009
ASSETS
Cash and due from banks	$	284,508		$	331,164		$	252,004		(14.1	)%	12.9	%
Loans held for sale		85,384			95,840			84,766		(10.9	)%	0.7	%
Other interest-earning assets		16,591			21,710			24,048		(23.6	)%	(31.0	)%
Investment securities		3,267,086			2,724,841			3,274,399		19.9	%	(0.2	)%
Loans, net of unearned income		11,972,424			12,042,620			11,968,246		(0.6	)%	—
Allowance for loan losses		(256,698	)		(173,946	)		(234,511	)	47.6	%	9.5	%
Net Loans		11,715,726			11,868,674			11,733,735		(1.3	)%	(0.2	)%
Premises and equipment		204,203			202,657			204,520		0.8	%	(0.2	)%
Accrued interest receivable		58,515			58,566			60,433		(0.1	)%	(3.2	)%
Goodwill and intangible assets		552,563			557,833			554,041		(0.9	)%	(0.3	)%
Other assets		451,059			323,821			338,763		39.3	%	33.1	%
Total Assets	$	16,635,635		$	16,185,106		$	16,526,709		2.8	%	0.7	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	12,097,914		$	10,551,916		$	12,032,680		14.7	%	0.5	%
Short-term borrowings		868,940			1,762,770			722,618		(50.7	)%	20.2	%
Federal Home Loan Bank advances and long-term debt		1,540,773			1,787,797			1,650,870		(13.8	)%	(6.7	)%
Other liabilities		191,526			222,976			196,778		(14.1	)%	(2.7	)%
Total Liabilities		14,699,153			14,325,459			14,602,946		2.6	%	0.7	%
Preferred stock		370,290			368,944			369,950		0.4	%	0.1	%
Common shareholders’ equity		1,566,192			1,490,703			1,553,813		5.1	%	0.8	%
Total Shareholders’ Equity		1,936,482			1,859,647			1,923,763		4.1	%	0.7	%
Total Liabilities and Shareholders’ Equity	$	16,635,635		$	16,185,106		$	16,526,709		2.8	%	0.7	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	4,292,300		$	4,016,700		$	4,186,654		6.9	%	2.5	%
Commercial - industrial, financial and agricultural		3,699,198			3,635,544			3,719,966		1.8	%	(0.6	)%
Real estate - home equity		1,644,260			1,695,398			1,651,711		(3.0	)%	(0.5	)%
Real estate - construction		978,267			1,269,330			1,029,079		(22.9	)%	(4.9	)%
Real estate - residential mortgage		921,741			972,797			930,207		(5.2	)%	(0.9	)%
Consumer		360,698			365,692			375,685		(1.4	)%	(4.0	)%
Leasing and other		75,960			87,159			74,944		(12.8	)%	1.4	%
Total Loans, net of unearned income	$	11,972,424		$	12,042,620		$	11,968,246		(0.6	)%	—
Deposits, by type:
Noninterest-bearing demand	$	2,012,837		$	1,653,440		$	1,932,382		21.7	%	4.2	%
Interest-bearing demand		2,022,746			1,789,833			1,922,648		13.0	%	5.2	%
Savings deposits		2,748,467			2,010,526			2,732,284		36.7	%	0.6	%
Time deposits		5,313,864			5,098,117			5,445,366		4.2	%	(2.4	)%
Total Deposits	$	12,097,914		$	10,551,916		$	12,032,680		14.7	%	0.5	%
Short-term borrowings, by type:
Federal funds purchased	$	378,067		$	1,147,673		$	210,865		(67.1	)%	79.3	%
Customer repurchase agreements		259,459			255,796			252,842		1.4	%	2.6	%
Customer short-term promissory notes		231,414			356,788			258,911		(35.1	)%	(10.6	)%
Overnight borrowings and other		—			2,513			—		N/A		N/A
Total Short-term borrowings	$	868,940		$	1,762,770		$	722,618		(50.7	)%	20.2	%

N/A - Not Applicable

2

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATION (UNAUDITED)

dollars in thousands, except per-share data

	Quarter Ended									% Change from				Year Ended December 31						% Change
	Dec 31 2009			Dec 31 2008			Sep 30 2009			Dec 31 2008		Sep 30 2009
														2009			2008
Interest Income:
Interest income	$	194,942		$	209,073		$	197,861		(6.8	)%	(1.5	)%	$	786,467		$	867,494		(9.3	)%
Interest expense		58,849			76,732			65,060		(23.3	)%	(9.5	)%		265,513			343,346		(22.7	)%
Net Interest Income		136,093			132,341			132,801		2.8	%	2.5	%		520,954			524,148		(0.6	)%
Provision for loan losses		45,020			65,000			45,000		(30.7	)%	—			190,020			119,626		58.8	%
Net Interest Income after Provision		91,073			67,341			87,801		35.2	%	3.7	%		330,934			404,522		(18.2	)%
Other Income:
Service charges on deposit accounts		15,174			16,177			15,321		(6.2	)%	(1.0	)%		60,450			61,640		(1.9	)%
Other service charges and fees		9,369			8,927			10,003		5.0	%	(6.3	)%		37,321			36,247		3.0	%
Investment management and trust services		8,106			7,541			8,191		7.5	%	(1.0	)%		32,076			32,734		(2.0	)%
Gains on sales of mortgage loans		3,880			3,085			2,778		25.8	%	39.7	%		22,644			10,332		119.2	%
Investment securities gains (losses)		(1,872	)		(28,339	)		(45	)	93.4	%	N/M			1,079			(58,241	)	N/M
Gain on sale of credit card portfolio		—			—			—		—		—			—			13,910		N/A
Other		4,628			3,020			4,932		53.2	%	(6.2	)%		19,186			14,434		32.9	%
Total Other Income		39,285			10,411			41,180		277.3	%	(4.6	)%		172,756			111,056		55.6	%
Other Expenses:
Salaries and employee benefits		53,623			48,771			54,086		9.9	%	(0.9	)%		218,812			213,557		2.5	%
Net occupancy expense		10,612			11,240			10,165		(5.6	)%	4.4	%		42,040			42,239		(0.5	)%
FDIC insurance expense		4,841			1,878			5,244		157.8	%	(7.7	)%		26,579			4,562		482.6	%
Equipment expense		3,160			3,425			3,281		(7.7	)%	(3.7	)%		12,820			13,332		(3.8	)%
Marketing		2,638			3,746			1,982		(29.6	)%	33.1	%		8,915			13,267		(32.8	)%
Data processing		2,228			3,209			3,121		(30.6	)%	(28.6	)%		11,328			12,813		(11.6	)%
Intangible amortization		1,421			1,776			1,429		(20.0	)%	(0.6	)%		5,747			7,162		(19.8	)%
Operating risk loss		867			5,200			338		(83.3	)%	156.5	%		7,550			24,308		(68.9	)%
Goodwill impairment		—			90,000			—		N/A		—			—			90,000		N/A
Other		20,980			21,629			20,164		(3.0	)%	4.0	%		80,567			75,385		6.9	%
Total Other Expenses		100,370			190,874			99,810		(47.4	)%	0.6	%		414,358			496,625		(16.6	)%
Income (Loss) Before Income Taxes		29,988			(113,122	)		29,171		N/M		2.8	%		89,332			18,953		371.3	%
Income tax expense (benefit)		5,606			(11,255	)		5,825		N/M		(3.8	)%		15,408			24,570		(37.3	)%
Net Income (Loss)		24,382			(101,867	)		23,346		N/M		4.4	%		73,924			(5,617	)	N/M
Preferred stock dividends and discount accretion		(5,046	)		(463	)		(5,046	)	N/M		—			(20,169	)		(463	)	N/M
Net Income (Loss) Available to Common Shareholders	$	19,336		$	(102,330	)	$	18,300		N/M		5.7	%	$	53,755		$	(6,080	)	N/M
PER COMMON SHARE:
Net income (loss):
Basic	$	0.11		$	(0.58	)	$	0.10		N/M		10.0	%	$	0.31		$	(0.03	)	N/M
Diluted		0.11			(0.58	)		0.10		N/M		10.0	%		0.31			(0.03	)	N/M
Cash dividends	$	0.03		$	0.15		$	0.03		(80.0	)%	—		$	0.12		$	0.60		(80.0	)%
Shareholders’ equity		8.88			8.52			8.82		4.2	%	0.7	%		8.88			8.52		4.2	%
Shareholders’ equity (tangible)		5.75			5.33			5.68		7.9	%	1.2	%		5.75			5.33		7.9	%
Weighted average shares (basic)		175,988			174,889			175,783		0.6	%	0.1	%		175,662			174,236		0.8	%
Weighted average shares (diluted)		176,413			174,889			176,078		0.9	%	0.2	%		175,943			174,236		1.0	%
Shares outstanding, end of period		176,364			175,044			176,149		0.8	%	0.1	%		176,364			175,044		0.8	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.59	%		(2.51	)%		0.56	%						0.45	%		(0.04	)%
Return on average common shareholders’ equity		4.91	%		(25.56	)%		4.78	%						3.54	%		(0.38	)%
Return on average common shareholders’ equity (tangible)		7.96	%		(4.71	)%		7.91	%						5.96	%		9.33	%
Net interest margin		3.67	%		3.68	%		3.55	%						3.52	%		3.70	%
Efficiency ratio		54.61	%		56.57	%		55.33	%						57.70	%		56.31	%

N/A - Not applicable

N/M - Not meaningful

3

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

	Quarter Ended
	December 31, 2009								December 31, 2008								September 30, 2009
	Average Balance			Interest (1)			Yield/ Rate		Average Balance			Interest (1)			Yield/ Rate		Average Balance			Interest (1)			Yield/ Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,989,314		$	163,972		5.43	%	$	11,960,067		$	178,096		5.93	%	$	11,913,581		$	163,915		5.46	%
Taxable investment securities		2,580,754			27,297		4.23	%		2,086,808			26,106		5.00	%		2,722,751			29,376		4.31	%
Tax-exempt investment securities		406,088			5,767		5.68	%		516,045			7,073		5.48	%		436,209			6,101		5.59	%
Equity securities		144,071			851		2.35	%		154,660			797		2.05	%		132,176			632		1.90	%
Total Investment Securities		3,130,913			33,915		4.33	%		2,757,513			33,976		4.93	%		3,291,136			36,109		4.39	%
Loans held for sale		74,438			951		5.11	%		64,096			975		6.08	%		102,367			1,550		6.06	%
Other interest-earning assets		22,745			56		0.98	%		23,889			124		2.08	%		24,348			51		0.83	%
Total Interest-earning Assets		15,217,410			198,894		5.20	%		14,805,565			213,171		5.74	%		15,331,432			201,625		5.23	%
Noninterest-earning assets:
Cash and due from banks		318,472								317,571								301,875
Premises and equipment		203,699								200,918								204,416
Other assets		987,094								960,606								959,628
Less: allowance for loan losses		(250,871	)							(150,266	)							(234,446	)
Total Assets	$	16,475,804							$	16,134,394							$	16,562,905
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,969,681		$	2,099		0.42	%	$	1,727,874		$	2,630		0.61	%	$	1,883,087		$	2,119		0.45	%
Savings deposits		2,772,340			5,546		0.79	%		2,070,931			6,124		1.18	%		2,556,717			5,187		0.80	%
Time deposits		5,415,169			31,454		2.30	%		4,818,068			41,553		3.43	%		5,554,349			36,519		2.61	%
Total Interest-bearing Deposits		10,157,190			39,099		1.53	%		8,616,873			50,307		2.32	%		9,994,153			43,825		1.74	%
Short-term borrowings		618,087			584		0.37	%		2,251,571			5,998		1.05	%		863,281			835		0.38	%
Federal Home Loan Bank advances and long-term debt		1,589,839			19,166		4.78	%		1,798,688			20,427		4.53	%		1,695,427			20,400		4.77	%
Total Interest-bearing Liabilities		12,365,116			58,849		1.89	%		12,667,132			76,732		2.41	%		12,552,861			65,060		2.06	%
Noninterest-bearing liabilities:
Demand deposits		1,991,210								1,643,118								1,922,460
Other		185,817								196,004								198,314
Total Liabilities		14,542,143								14,506,254								14,673,635
Shareholders’ equity		1,933,661								1,628,140								1,889,270
Total Liabilities and Shareholders’ Equity	$	16,475,804							$	16,134,394							$	16,562,905
Net interest income/net interest margin (fully taxable equivalent)					140,045		3.67	%					136,439		3.68	%					136,565		3.55	%
Tax equivalent adjustment					(3,952	)							(4,098	)							(3,764	)
Net interest income				$	136,093							$	132,341							$	132,801

(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 2009		December 31 2008		September 30 2009		December 31 2008		September 30 2009
Loans, by type:
Real estate - commercial mortgage	$	4,240,436	$	3,965,734	$	4,158,802	6.9	%	2.0	%
Commercial - industrial, financial and agricultural		3,713,926		3,588,657		3,667,854	3.5	%	1.3	%
Real estate - home equity		1,645,524		1,673,570		1,651,400	(1.7	)%	(0.4	)%
Real estate - construction		1,018,057		1,284,289		1,050,359	(20.7	)%	(3.1	)%
Real estate - residential mortgage		925,660		977,582		933,943	(5.3	)%	(0.9	)%
Consumer		370,258		378,686		371,676	(2.2	)%	(0.4	)%
Leasing and other		75,453		91,549		79,547	(17.6	)%	(5.1	)%
Total Loans, net of unearned income	$	11,989,314	$	11,960,067	$	11,913,581	0.2	%	0.6	%
Deposits, by type:
Noninterest-bearing demand	$	1,991,210	$	1,643,118	$	1,922,460	21.2	%	3.6	%
Interest-bearing demand		1,969,681		1,727,874		1,883,087	14.0	%	4.6	%
Savings deposits		2,772,340		2,070,931		2,556,717	33.9	%	8.4	%
Time deposits		5,415,169		4,818,068		5,554,349	12.4	%	(2.5	)%
Total Deposits	$	12,148,400	$	10,259,991	$	11,916,613	18.4	%	1.9	%
Short-term borrowings, by type:
Federal funds purchased	$	101,349	$	1,426,618	$	348,444	(92.9	)%	(70.9	)%
Customer repurchase agreements		260,962		244,633		254,789	6.7	%	2.4	%
Customer short-term promissory notes		255,776		391,781		259,534	(34.7	)%	(1.4	)%
Overnight borrowings and other		—		188,539		514	N/A		N/A
Total Short-term borrowings	$	618,087	$	2,251,571	$	863,281	(72.5	)%	(28.4	)%

N/A - Not applicable

4

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

	Year Ended December 31
	2009								2008
	Average Balance			Interest (1)			Yield/Rate		Average Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,975,899		$	655,384		5.47	%	$	11,595,243		$	732,533		6.32	%
Taxable investment securities		2,548,810			112,945		4.43	%		2,228,204			110,220		4.95	%
Tax-exempt investment securities		451,828			25,180		5.57	%		512,920			27,904		5.44	%
Equity securities		137,070			2,917		2.13	%		183,216			6,520		3.56	%
Total Investment Securities		3,137,708			141,042		4.50	%		2,924,340			144,644		4.95	%
Loans held for sale		105,067			5,390		5.13	%		93,085			5,701		6.12	%
Other interest-earning assets		21,255			196		0.92	%		21,503			586		2.71	%
Total Interest-earning Assets		15,239,929			802,012		5.27	%		14,634,171			883,464		6.04	%
Noninterest-earning assets:
Cash and due from banks		305,410								318,524
Premises and equipment		203,865								197,967
Other assets		952,597								951,270
Less: allowance for loan losses		(221,128	)							(125,061	)
Total Assets	$	16,480,673							$	15,976,871
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,857,081		$	7,995		0.43	%	$	1,714,029		$	13,168		0.77	%
Savings deposits		2,425,864			19,487		0.80	%		2,152,158			28,520		1.32	%
Time deposits		5,507,090			153,344		2.78	%		4,502,399			170,426		3.79	%
Total Interest-bearing Deposits		9,790,035			180,826		1.85	%		8,368,586			212,114		2.53	%
Short-term borrowings		1,043,279			3,777		0.36	%		2,336,526			50,091		2.12	%
Federal Home Loan Bank advances and long-term debt		1,712,630			80,910		4.72	%		1,822,115			81,141		4.45	%
Total Interest-bearing Liabilities		12,545,944			265,513		2.12	%		12,527,227			343,346		2.74	%
Noninterest-bearing liabilities:
Demand deposits		1,847,090								1,647,942
Other		198,078								191,874
Total Liabilities		14,591,112								14,367,043
Shareholders’ equity		1,889,561								1,609,828
Total Liabilities and Shareholders’ Equity	$	16,480,673							$	15,976,871
Net interest income/net interest margin (fully taxable equivalent)					536,499		3.52	%					540,118		3.70	%
Tax equivalent adjustment					(15,545	)							(15,970	)
Net interest income				$	520,954							$	524,148

(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
	2009		2008		% Change
Loans, by type:
Real estate - commercial mortgage	$	4,135,486	$	3,747,240	10.4	%
Commercial - industrial, financial and agricultural		3,673,654		3,525,629	4.2	%
Real estate - home equity		1,665,834		1,597,207	4.3	%
Real estate - construction		1,111,863		1,320,418	(15.8	)%
Real estate - residential mortgage		938,187		918,658	2.1	%
Consumer		368,651		399,281	(7.7	)%
Leasing and other		82,224		86,810	(5.3	)%
Total Loans, net of unearned income	$	11,975,899	$	11,595,243	3.3	%
Deposits, by type:
Noninterest-bearing demand	$	1,847,090	$	1,647,942	12.1	%
Interest-bearing demand		1,857,081		1,714,029	8.3	%
Savings deposits		2,425,864		2,152,158	12.7	%
Time deposits		5,507,090		4,502,399	22.3	%
Total Deposits	$	11,637,125	$	10,016,528	16.2	%
Short-term borrowings, by type:
Federal funds purchased	$	453,268	$	1,328,888	(65.9	)%
Customer short-term promissory notes		287,231		454,473	(36.8	)%
Customer repurchase agreements		254,662		227,130	12.1	%
Federal Reserve Bank borrowings		46,137		—	N/A
Overnight borrowings and other		1,981		326,035	(99.4	)%
Total Short-term borrowings	$	1,043,279	$	2,336,526	(55.3	)%

N/A - Not applicable

5

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands

	Quarter Ended									Year Ended December 31
	December 31			December 31			September 30
	2009			2008			2009			2009			2008
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	241,721		$	141,829		$	220,954		$	180,137		$	112,209
Loans charged off:
Real estate - construction		(12,017	)		(11,877	)		(9,356	)		(44,909	)		(14,891	)
Commercial - industrial, agricultural and financial		(10,078	)		(6,392	)		(7,787	)		(34,761	)		(18,592	)
Real estate - commercial mortgage		(2,055	)		(4,688	)		(3,554	)		(15,530	)		(7,516	)
Real estate - residential mortgage and home equity		(2,224	)		(2,899	)		(1,065	)		(7,056	)		(5,868	)
Consumer		(3,103	)		(1,450	)		(2,527	)		(10,770	)		(5,188	)
Leasing and other		(1,366	)		(1,033	)		(1,637	)		(6,048	)		(4,804	)
Total loans charged off		(30,843	)		(28,339	)		(25,926	)		(119,074	)		(56,859	)
Recoveries of loans charged off:
Real estate - construction		842			—			26			1,194			17
Commercial - industrial, agricultural and financial		25			770			444			1,679			1,795
Real estate - commercial mortgage		8			56			493			536			286
Real estate - residential mortgage and home equity		1			5			1			150			143
Consumer		384			465			354			1,678			1,487
Leasing and other		395			351			375			1,233			1,433
Recoveries of loans previously charged off		1,655			1,647			1,693			6,470			5,161
Net loans charged off		(29,188	)		(26,692	)		(24,233	)		(112,604	)		(51,698	)
Provision for loan losses		45,020			65,000			45,000			190,020			119,626
Balance at end of period	$	257,553		$	180,137		$	241,721		$	257,553		$	180,137
Net charge-offs to average loans (annualized)		0.97	%		0.89	%		0.81	%		0.94	%		0.45	%
NON-PERFORMING ASSETS:
Non-accrual loans	$	238,360		$	161,962		$	228,961
Loans 90 days past due and accruing		43,359			35,177			52,797
Total non-performing loans		281,719			197,139			281,758
Other real estate owned		23,309			21,855			19,151
Total non-performing assets	$	305,028		$	218,994		$	300,909
NON-PERFORMING LOANS, BY TYPE:
Real estate - construction	$	92,841		$	80,083		$	104,789
Commercial - industrial, agricultural and financial		69,604			40,294			63,217
Real estate - commercial mortgage		61,052			41,745			54,930
Real estate - residential mortgage and home equity		45,748			26,304			46,192
Consumer		12,319			8,374			12,292
Leasing		155			339			338
Total non-performing loans	$	281,719		$	197,139		$	281,758
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		1.99	%		1.34	%		1.91	%
Non-performing assets to total loans and OREO		2.54	%		1.82	%		2.51	%
Non-performing assets to total assets		1.83	%		1.35	%		1.82	%
Allowance for credit losses to loans outstanding		2.15	%		1.50	%		2.02	%
Allowance for credit losses to non-performing loans		91.42	%		91.38	%		85.79	%
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses		23.99	%		19.68	%		24.24	%

6