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 18, 2011

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 18, 2011 Fulton Financial Corporation announced its results of operations for the fourth quarter and year ended December 31, 2010. 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 18, 2011.
99.2	Supplemental financial information for the quarter and year ended December 31, 2010.

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 18, 2011	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 2010 earnings

• Diluted earnings per share for the fourth quarter of 2010 was 16 cents, unchanged from the third quarter of 2010. For the year ended December 31, 2010, diluted earnings per share was 59 cents, a 90.3 percent increase from 2009.

• The provision for credit losses was $40.0 million for the fourth quarter of 2010, which remained unchanged from the third quarter of 2010. Non-performing assets decreased $11.0 million, or 3.0 percent, in comparison to the third quarter of 2010. Annualized net charge-offs to average loans increased to 1.65 percent for the fourth quarter of 2010 from 1.19 percent for the third quarter of 2010.

• During the third quarter of 2010, the Corporation ended its participation in the U.S. Department of Treasury’s (UST) Capital Purchase Program, redeeming all of its preferred stock and repurchasing its outstanding common stock warrant held by the UST. As a result, preferred stock costs decreased $6.2 million in the fourth quarter of 2010.

(January 18, 2011) – Lancaster, PA – Fulton Financial Corporation (NASDAQ: FULT) reported net income available to common shareholders of $31.5 million, or 16 cents per diluted share, for the fourth quarter ended December 31, 2010, unchanged from the third quarter of 2010. Total other expenses increased $4.4 million and other income decreased $4.3 million. The unfavorable after-tax impact of these items was offset by a $6.2 million decrease in preferred stock costs.

For the year ended December 31, 2010, net income available to common shareholders was $112.0 million, or 59 cents per diluted share, compared to $53.8 million, or 31 cents per diluted share, for 2009. The $58.3 million, or 108.4 percent, increase in the Corporation’s earnings was due to a $37.8 million, or 7.3 percent, increase in net interest income, a $30.0 million, or 15.8 percent, decrease in the provision for credit losses, a $9.0 million increase in other income and a $6.6 million decrease in other expenses. In addition, preferred stock costs decreased $3.9 million. Partially offsetting these favorable variances was a $29.0 million, or 188.2 percent, increase in income tax expense.

- MORE -

Page 2 … Fulton Financial reports 2010 earnings

“While we saw a reduction in our non-performing loans and overall loan delinquency in the fourth quarter, credit costs remain elevated”, said R. Scott Smith, Jr., Chairman and Chief Executive Officer. “We closed the year with continued strong core deposit growth as a result of industry trends, our relationship banking strategy and increased marketing and promotional activity throughout our five-state geography. During the quarter, our net interest margin improved. With our solid capital base and strong liquidity position, we believe we are well positioned for earning asset growth as the economy rebounds. Loan growth, however, remains a challenge.”

Asset Quality

Non-performing assets were $361.7 million, or 2.22 percent of total assets, at December 31, 2010, compared to $372.8 million, or 2.28 percent of total assets, at September 30, 2010 and $305.0 million, or 1.83 percent of total assets, at December 31, 2009. The decrease in non-performing assets in comparison to the third quarter of 2010 was primarily due to a decrease in non-performing construction loans and commercial mortgages.

Annualized net charge-offs for the quarter ended December 31, 2010 were 1.65 percent of average total loans compared to 1.19 percent for the quarter ended September 30, 2010. For the fourth quarter of 2010, net charge-offs increased $13.9 million, or 39.1 percent, compared to the third quarter of 2010. The increase was primarily due to an increase in commercial mortgage, commercial loan and residential mortgage net charge-offs, partially offset by a decrease in construction loan net charge-offs. For the year ended December 31, 2010, net charge-offs were 1.19 percent of average loans, compared to 0.94 percent for 2009. The allowance for credit losses as a percentage of non-performing loans was 83.8 percent at December 31, 2010 in comparison to 83.2 percent at September 30, 2010 and 91.4 percent at December 31, 2009.

The provision for credit losses for the fourth quarter of 2010 was $40.0 million, unchanged from the third quarter of 2010. For the year ended December 31, 2010, the provision for credit losses was $160.0 million, a decrease of $30.0 million, or 15.8 percent, from 2009.

Net Interest Income and Margin

Net interest income for the fourth quarter of 2010 increased $707,000, or 0.5 percent, from the third quarter of 2010. The Corporation’s net interest margin improved to 3.85 percent in the fourth quarter of 2010, compared to 3.81 percent for third quarter of 2010. For the year ended December 31, 2010, net interest income increased $37.8 million, or 7.3 percent, in comparison to 2009, due to the increase in the net interest margin to 3.80 percent in 2010 from 3.52 percent in 2009.

Page 3 … Fulton Financial reports 2010 earnings

The improvements in net interest income and margin during the fourth quarter and for the year ended December 31, 2010 were due to declines in funding costs, partially offset by decreases in yields on interest-earning assets.

Average Balance Sheet

Total average assets for the fourth quarter of 2010 were $16.3 billion, a decrease of $73.5 million, or 0.4 percent, from the third quarter of 2010.

Average loans, net of unearned income, for the fourth quarter of 2010 decreased slightly in comparison to the third quarter of 2010.

	Quarter Ended
	Dec 31 2010		Sep 30 2010		Increase (decrease)
					$			%
	(dollars in thousands)
Loans, by type:
Real estate – commercial mortgage	$	4,365,245	$	4,341,685	$	23,560			0.5	%
Commercial – industrial, financial and agricultural		3,682,949		3,671,128		11,821			0.3	%
Real estate – home equity		1,649,111		1,643,615		5,496			0.3	%
Real estate – residential mortgage		999,814		998,165		1,649			0.2	%
Real estate – construction		818,367		868,497		(50,130	)		(5.8	%)
Consumer		360,432		366,719		(6,287	)		(1.7	%)
Leasing and other		69,014		68,336		678			1.0	%
Total Loans, net of unearned income	$	11,944,932	$	11,958,145	$	(13,213	)		(0.1	%)

During the fourth quarter of 2010, the Corporation generated a $35.4 million increase in commercial mortgage and commercial loans, which was more than offset by a $50.1 million decrease in construction loans.

For the year ended December 31, 2010 in comparison to 2009, average loans decreased $17.5 million, or 0.1 percent, due to a decrease in construction loans, partially offset by an increase in commercial mortgages. During 2010, the Corporation reduced its construction loan exposure, while weak economic conditions hampered commercial loan and commercial mortgage growth.

Average investments for the fourth quarter of 2010 were $2.7 billion, a $45.2 million, or 1.6 percent, decrease from the third quarter of 2010. For the year ended December 31, 2010 in comparison to 2009, average investments decreased $237.8 million, or 7.6 percent, as sales and maturities exceeded purchases due to the low interest rate environment.

Average deposits for the fourth quarter of 2010 increased $107.6 million, or 0.9 percent, from the third quarter of 2010.

Page 4 … Fulton Financial reports 2010 earnings

	Quarter Ended
	Dec 31 2010		Sep 30 2010		Increase (decrease)
					$			%
	(dollars in thousands)
Deposits, by type:
Noninterest-bearing demand	$	2,219,267	$	2,140,866	$	78,401			3.7	%
Interest-bearing demand		2,262,027		2,129,407		132,620			6.2	%
Savings deposits		3,337,407		3,214,558		122,849			3.8	%
Total, excluding time deposits		7,818,701		7,484,831		333,870			4.5	%
Time deposits		4,760,929		4,987,212		(226,283	)		(4.5	%)
Total Deposits	$	12,579,630	$	12,472,043	$	107,587			0.9	%

For the year ended December 31, 2010 in comparison to 2009, average deposits increased $706.7 million, or 6.1 percent, due to a $1.2 billion, or 19.5 percent, increase in non-interest and interest bearing demand and saving accounts and a $490.4 million, or 8.9 percent, decrease in time deposits. During 2010, customer accounts migrated from time deposits to non-time deposit accounts. The net growth is consistent with overall industry trends as economic conditions slowed consumer spending and encouraged saving.

Non-interest Income

Other income, excluding investment securities gains, decreased $2.6 million, or 5.1 percent, in comparison to the third quarter of 2010. Mortgage banking income decreased $3.5 million, or 28.6 percent. During the third quarter of 2010 the Corporation revised the methodology for determining the fair value of its mortgage banking pipeline to properly recognize expected gains in the period when mortgage rates are locked with the borrowers. This change in methodology resulted in an acceleration of mortgage banking income in the third quarter, totaling $3.3 million. In addition, service charges on deposit accounts decreased $661,000 due to a decrease in overdraft fees as a result of required regulatory changes implemented in August 2010. Partially offsetting these decreases were a $594,000 increase in gains on sales of other real estate, a $309,000 increase in other service charges and fees and a $222,000 increase in investment management and trust services income

For the year ended December 31, 2010 in comparison to 2009, other income, excluding investment securities gains, increased $9.4 million, with increases in mortgage banking income, other service charges and fees and investment management and trust services revenues partially offset by a decrease in service charges on deposit accounts.

Page 5 … Fulton Financial reports 2010 earnings

The following table summarizes the net realized gains and other-than-temporary impairment charges by type of investment security:

	Quarter Ended						Year Ended
	Dec 31			Sep 30			December 31,
	2010			2010			2010			2009
	(in thousands)
Net realized gains (losses):
Debt securities	$	2,196		$	4,431		$	12,934		$	14,503
Equity securities		658			210			1,718			(23	)
Other-than-temporary impairment charges:
Debt securities		(2,492	)		(2,335	)		(11,969	)		(9,470	)
Equity securities		(168	)		(480	)		(1,982	)		(3,931	)
Investment securities gains	$	194		$	1,826		$	701		$	1,079

Other-than-temporary impairment charges for debt and equity securities were primarily related to the Corporation’s investments in pooled trust preferred securities issued by financial institutions and financial institutions stocks, respectively.

Non-interest Expense

Other expenses increased $4.4 million, or 4.2 percent, in the fourth quarter of 2010 compared to the third quarter of 2010, primarily due to increases in marketing expenses, operating risk loss, salaries and employee benefits and net occupancy expense.

For the year ended December 31, 2010, other expenses decreased $6.6 million, or 1.6 percent, in comparison to 2009, due primarily to declines in FDIC insurance expense and operating risk loss.

About Fulton Financial

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has nearly 3,800 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; The 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.

Page 6 … Fulton Financial reports 2010 earnings

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 the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as “may,” “should,” “will,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future,” “intends,” and similar expressions which are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Corporation’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Corporation undertakes no obligation, other than required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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 disruption in, or abnormal functioning of, credit and other markets, including the lack of or reduced access to markets for mortgages and other asset-backed securities and for commercial paper and other short-term borrowings; changes in the levels of, or methodology for determining, 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 or a decline in loans originated; 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.

#  #  #

Page 7 … Fulton Financial reports 2010 earnings

2011

EX-99.2

Exhibit 99.2

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands

										% Change from
	December 31 2010			December 31 2009			September 30 2010			December 31 2009			September 30 2010
ASSETS
Cash and due from banks	$	198,954		$	284,508		$	255,800			(30.1	%)		(22.2	%)
Loans held for sale		83,940			85,384			103,240			(1.7	%)		(18.7	%)
Other interest-earning assets		33,297			16,591			193,421			100.7	%		(82.8	%)
Investment securities		2,861,484			3,267,086			2,762,238			(12.4	%)		3.6	%
Loans, net of unearned income		11,933,307			11,972,424			11,950,618			(0.3	%)		(0.1	%)
Allowance for loan losses		(274,271	)		(256,698	)		(281,724	)		6.8	%		(2.6	%)
Net Loans		11,659,036			11,715,726			11,668,894			(0.5	%)		(0.1	%)
Premises and equipment		208,016			204,203			204,001			1.9	%		2.0	%
Accrued interest receivable		53,841			58,515			55,167			(8.0	%)		(2.4	%)
Goodwill and intangible assets		547,979			552,563			549,170			(0.8	%)		(0.2	%)
Other assets		628,707			451,059			538,842			39.4	%		16.7	%
Total Assets	$	16,275,254		$	16,635,635		$	16,330,773			(2.2	%)		(0.3	%)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	12,388,581		$	12,097,914		$	12,568,117			2.4	%		(1.4	%)
Short-term borrowings		674,077			868,940			471,081			(22.4	%)		43.1	%
Federal Home Loan Bank advances and long-term debt		1,119,450			1,540,773			1,199,513			(27.3	%)		(6.7	%)
Other liabilities		212,757			191,526			215,752			11.1	%		(1.4	%)
Total Liabilities		14,394,865			14,699,153			14,454,463			(2.1	%)		(0.4	%)
Preferred stock		—			370,290			—			(100.0	%)		—
Common shareholders’ equity		1,880,389			1,566,192			1,876,310			20.1	%		0.2	%
Total Shareholders’ Equity		1,880,389			1,936,482			1,876,310			(2.9	%)		0.2	%
Total Liabilities and Shareholders’ Equity	$	16,275,254		$	16,635,635		$	16,330,773			(2.2	%)		(0.3	%)
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	4,375,980		$	4,292,300		$	4,346,120			1.9	%		0.7	%
Commercial - industrial, financial and agricultural		3,704,384			3,699,198			3,683,577			0.1	%		0.6	%
Real estate - home equity		1,641,777			1,644,260			1,654,359			(0.2	%)		(0.8	%)
Real estate - residential mortgage		995,990			921,741			1,001,837			8.1	%		(0.6	%)
Real estate - construction		801,185			978,267			834,266			(18.1	%)		(4.0	%)
Consumer		350,161			360,698			366,927			(2.9	%)		(4.6	%)
Leasing and other		63,830			75,960			63,532			(16.0	%)		0.5	%
Total Loans, net of unearned income	$	11,933,307		$	11,972,424		$	11,950,618			(0.3	%)		(0.1	%)
Deposits, by type:
Noninterest-bearing demand	$	2,194,988		$	2,012,837		$	2,163,807			9.0	%		1.4	%
Interest-bearing demand		2,277,190			2,022,746			2,221,213			12.6	%		2.5	%
Savings deposits		3,286,435			2,748,467			3,291,838			19.6	%		(0.2	%)
Time deposits		4,629,968			5,313,864			4,891,259			(12.9	%)		(5.3	%)
Total Deposits	$	12,388,581		$	12,097,914		$	12,568,117			2.4	%		(1.4	%)
Short-term borrowings, by type:
Federal funds purchased	$	267,844		$	378,068		$	8,864			(29.2	%)		N/M
Customer repurchase agreements		204,800			259,458			256,977			(21.1	%)		(20.3	%)
Customer short-term promissory notes		201,433			231,414			205,240			(13.0	%)		(1.9	%)
Total Short-term borrowings	$	674,077		$	868,940		$	471,081			(22.4	%)		43.1	%

N/M - Not meaningful

1

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

dollars in thousands, except per-share data

	Quarter Ended									% Change from						Year Ended						% Change
	Dec 31 2010			Dec 31 2009			Sep 30 2010			Dec 31 2009			Sep 30 2010			December 31
																2010			2009
Interest Income:
Interest income	$	181,749		$	194,942		$	185,356			(6.8	%)		(1.9	%)	$	745,373		$	786,467			(5.2	%)
Interest expense		40,856			58,849			45,170			(30.6	%)		(9.6	%)		186,627			265,513			(29.7	%)
Net Interest Income		140,893			136,093			140,186			3.5	%		0.5	%		558,746			520,954			7.3	%
Provision for credit losses		40,000			45,020			40,000			(11.2	%)		—			160,000			190,020			(15.8	%)
Net Interest Income after Provision		100,893			91,073			100,186			10.8	%		0.7	%		398,746			330,934			20.5	%
Other Income:
Service charges on deposit accounts		14,091			15,174			14,752			(7.1	%)		(4.5	%)		58,592			60,450			(3.1	%)
Other service charges and fees		11,849			10,120			11,540			17.1	%		2.7	%		45,023			40,425			11.4	%
Mortgage banking income		8,857			4,711			12,400			88.0	%		(28.6	%)		29,304			25,061			16.9	%
Investment management and trust services		8,826			8,106			8,604			8.9	%		2.6	%		34,173			32,076			6.5	%
Investment securities gains (losses)		194			(1,872	)		1,826			N/M			(89.4	%)		701			1,079			(35.0	%)
Other		4,915			3,797			3,876			29.4	%		26.8	%		17,109			16,769			2.0	%
Total Other Income		48,732			40,036			52,998			21.7	%		(8.0	%)		184,902			175,860			5.1	%
Other Expenses:
Salaries and employee benefits		54,955			53,623			54,533			2.5	%		0.8	%		216,487			218,812			(1.1	%)
Net occupancy expense		10,845			10,612			10,519			2.2	%		3.1	%		43,533			42,040			3.6	%
FDIC insurance expense		4,916			4,841			4,709			1.5	%		4.4	%		19,715			26,579			(25.8	%)
Marketing		4,461			2,638			2,601			69.1	%		71.5	%		11,163			8,915			25.2	%
Data processing		3,348			2,979			3,187			12.4	%		5.1	%		13,263			14,432			(8.1	%)
Equipment expense		2,982			3,160			2,956			(5.6	%)		0.9	%		11,692			12,820			(8.8	%)
Professional fees		2,902			2,397			3,040			21.1	%		(4.5	%)		11,523			9,099			26.6	%
OREO and repossession expense		2,848			2,773			2,618			2.7	%		8.8	%		10,023			8,866			13.1	%
Intangible amortization		1,292			1,421			1,293			(9.1	%)		(0.1	%)		5,240			5,747			(8.8	%)
Operating risk loss		1,207			867			666			39.3	%		81.3	%		3,025			7,550			(59.9	%)
Other		17,313			15,811			16,589			9.5	%		4.4	%		65,243			62,602			4.2	%
Total Other Expenses		107,069			101,121			102,711			5.9	%		4.2	%		410,907			417,462			(1.6	%)
Income Before Income Taxes		42,556			29,988			50,473			41.9	%		(15.7	%)		172,741			89,332			93.4	%
Income tax expense		11,066			5,606			12,793			97.4	%		(13.5	%)		44,409			15,408			188.2	%
Net Income		31,490			24,382			37,680			29.2	%		(16.4	%)		128,332			73,924			73.6	%
Preferred stock dividends and discount accretion		—			(5,046	)		(6,172	)		(100.0	%)		(100.0	%)		(16,303	)		(20,169	)		(19.2	%)
Net Income Available to Common Shareholders	$	31,490		$	19,336		$	31,508			62.9	%		(0.1	%)	$	112,029		$	53,755			108.4	%
PER COMMON SHARE:
Net income:
Basic	$	0.16		$	0.11		$	0.16			45.5	%		—		$	0.59		$	0.31			90.3	%
Diluted		0.16			0.11			0.16			45.5	%		—			0.59			0.31			90.3	%
Cash dividends	$	0.03		$	0.03		$	0.03			—			—		$	0.12		$	0.12			—
Shareholders’ equity		9.45			8.88			9.43			6.4	%		0.2	%		9.45			8.88			6.4	%
Shareholders’ equity (tangible)		6.69			5.75			6.67			16.3	%		0.3	%		6.69			5.75			16.3	%
Weighted average shares (basic)		198,437			175,988			198,282			12.8	%		0.1	%		190,860			175,662			8.7	%
Weighted average shares (diluted)		198,999			176,413			198,792			12.8	%		0.1	%		191,397			175,943			8.8	%
Shares outstanding, end of period		199,050			176,364			198,883			12.9	%		0.1	%		199,050			176,364			12.9	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.77	%		0.59	%		0.91	%								0.78	%		0.45	%
Return on average common shareholders’ equity		6.60	%		4.91	%		6.67	%								6.29	%		3.54	%
Return on average common shareholders’ equity (tangible)		9.54	%		7.96	%		9.68	%								9.39	%		5.96	%
Net interest margin		3.85	%		3.67	%		3.81	%								3.80	%		3.52	%
Efficiency ratio		54.73	%		54.79	%		51.95	%								53.49	%		57.88	%

N/M - Not meaningful

2

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

	Quarter Ended
	December 31, 2010									December 31, 2009									September 30, 2010
	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	$	11,944,932		$	158,257			5.26	%	$	11,989,314		$	163,972			5.43	%	$	11,958,145		$	160,125			5.32	%
Taxable investment securities		2,264,784			20,579			3.63	%		2,580,754			27,297			4.23	%		2,303,692			22,363			3.88	%
Tax-exempt investment securities		341,909			4,868			5.69	%		406,088			5,767			5.68	%		345,281			4,961			5.75	%
Equity securities		136,075			801			2.35	%		144,071			851			2.35	%		138,993			760			2.18	%
Total Investment Securities		2,742,768			26,248			3.83	%		3,130,913			33,915			4.33	%		2,787,966			28,084			4.03	%
Loans held for sale		94,741			947			4.00	%		74,438			951			5.11	%		78,862			919			4.66	%
Other interest-earning assets		187,881			147			0.31	%		22,745			56			0.98	%		204,601			102			0.20	%
Total Interest-earning Assets		14,970,322			185,599			4.93	%		15,217,410			198,894			5.20	%		15,029,574			189,230			5.01	%
Noninterest-earning assets:
Cash and due from banks		268,758									318,472									280,784
Premises and equipment		205,740									203,699									203,995
Other assets		1,135,276									987,094									1,133,469
Less: allowance for loan losses		(291,541	)								(250,871	)								(285,801	)
Total Assets	$	16,288,555								$	16,475,804								$	16,362,021
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	2,262,027		$	1,793			0.31	%	$	1,969,681		$	2,099			0.42	%	$	2,129,407		$	1,868			0.35	%
Savings deposits		3,337,407			4,328			0.51	%		2,772,340			5,546			0.79	%		3,214,558			4,972			0.61	%
Time deposits		4,760,929			20,926			1.74	%		5,415,169			31,454			2.30	%		4,987,212			22,915			1.82	%
Total Interest-bearing Deposits		10,360,363			27,047			1.04	%		10,157,190			39,099			1.53	%		10,331,177			29,755			1.14	%
Short-term borrowings		482,197			249			0.20	%		618,087			584			0.37	%		489,013			267			0.22	%
Federal Home Loan Bank advances and long-term debt		1,148,009			13,560			4.70	%		1,589,839			19,166			4.78	%		1,274,411			15,148			4.73	%
Total Interest-bearing Liabilities		11,990,569			40,856			1.35	%		12,365,116			58,849			1.89	%		12,094,601			45,170			1.48	%
Noninterest-bearing liabilities:
Demand deposits		2,219,267									1,991,210									2,140,866
Other		186,211									185,817									198,922
Total Liabilities		14,396,047									14,542,143									14,434,389
Shareholders’ equity		1,892,508									1,933,661									1,927,632
Total Liabilities and Shareholders’ Equity	$	16,288,555								$	16,475,804								$	16,362,021
Net interest income/net interest margin (fully taxable equivalent)					144,743			3.85	%					140,045			3.67	%					144,060			3.81	%
Tax equivalent adjustment					(3,850	)								(3,952	)								(3,874	)
Net interest income				$	140,893								$	136,093								$	140,186

(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 2010		December 31 2009		September 30 2010		December 31 2009			September 30 2010
Loans, by type:
Real estate - commercial mortgage	$	4,365,245	$	4,240,436	$	4,341,685		2.9	%		0.5	%
Commercial - industrial, financial and agricultural		3,682,949		3,713,926		3,671,128		(0.8	%)		0.3	%
Real estate - home equity		1,649,111		1,645,524		1,643,615		0.2	%		0.3	%
Real estate - residential mortgage		999,814		925,660		998,165		8.0	%		0.2	%
Real estate - construction		818,367		1,018,057		868,497		(19.6	%)		(5.8	%)
Consumer		360,432		370,258		366,719		(2.7	%)		(1.7	%)
Leasing and other		69,014		75,453		68,336		(8.5	%)		1.0	%
Total Loans, net of unearned income	$	11,944,932	$	11,989,314	$	11,958,145		(0.4	%)		(0.1	%)
Deposits, by type:
Noninterest-bearing demand	$	2,219,267	$	1,991,210	$	2,140,866		11.5	%		3.7	%
Interest-bearing demand		2,262,027		1,969,681		2,129,407		14.8	%		6.2	%
Savings deposits		3,337,407		2,772,340		3,214,558		20.4	%		3.8	%
Time deposits		4,760,929		5,415,169		4,987,212		(12.1	%)		(4.5	%)
Total Deposits	$	12,579,630	$	12,148,400	$	12,472,043		3.5	%		0.9	%
Short-term borrowings, by type:
Customer repurchase agreements	$	240,548	$	260,962	$	257,510		(7.8	%)		(6.6	%)
Customer short-term promissory notes		205,637		255,776		203,158		(19.6	%)		1.2	%
Federal funds purchased		36,012		101,349		28,345		(64.5	%)		27.0	%
Total Short-term borrowings	$	482,197	$	618,087	$	489,013		(22.0	%)		(1.4	%)

3

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

	Year Ended December 31
	2010									2009
	Average Balance			Interest (1)			Yield/Rate			Average Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,958,435		$	637,438			5.33	%	$	11,975,899		$	655,384			5.47	%
Taxable investment securities		2,403,206			96,237			4.00	%		2,548,810			112,945			4.43	%
Tax-exempt investment securities		357,427			20,512			5.74	%		451,828			25,180			5.57	%
Equity securities		139,292			3,103			2.23	%		137,070			2,917			2.13	%
Total Investment Securities		2,899,925			119,852			4.13	%		3,137,708			141,042			4.50	%
Loans held for sale		69,157			3,089			4.47	%		105,067			5,390			5.13	%
Other interest-earning assets		192,888			505			0.26	%		21,255			196			0.92	%
Total Interest-earning Assets		15,120,405			760,884			5.04	%		15,239,929			802,012			5.27	%
Noninterest-earning assets:
Cash and due from banks		268,615									305,410
Premises and equipment		204,316									203,865
Other assets		1,114,678									952,597
Less: allowance for loan losses		(281,555	)								(221,128	)
Total Assets	$	16,426,459								$	16,480,673
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	2,099,026		$	7,341			0.35	%	$	1,857,081		$	7,995			0.43	%
Savings deposits		3,124,157			19,889			0.63	%		2,425,864			19,487			0.80	%
Time deposits		5,016,645			95,129			1.90	%		5,507,090			153,344			2.78	%
Total Interest-bearing Deposits		10,239,828			122,359			1.19	%		9,790,035			180,826			1.85	%
Short-term borrowings		587,602			1,455			0.25	%		1,043,279			3,777			0.36	%
Federal Home Loan Bank advances and long-term debt		1,326,449			62,813			4.74	%		1,712,630			80,910			4.72	%
Total Interest-bearing Liabilities		12,153,879			186,627			1.54	%		12,545,944			265,513			2.12	%
Noninterest-bearing liabilities:
Demand deposits		2,104,016									1,847,090
Other		191,398									198,078
Total Liabilities		14,449,293									14,591,112
Shareholders’ equity		1,977,166									1,889,561
Total Liabilities and Shareholders’ Equity	$	16,426,459								$	16,480,673
Net interest income/net interest margin (fully taxable equivalent)					574,257			3.80	%					536,499			3.52	%
Tax equivalent adjustment					(15,511	)								(15,545	)
Net interest income				$	558,746								$	520,954

(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				% Change
	2010		2009
Loans, by type:
Real estate - commercial mortgage	$	4,333,371	$	4,135,486		4.8	%
Commercial - industrial, financial and agricultural		3,681,692		3,673,654		0.2	%
Real estate - home equity		1,642,999		1,665,834		(1.4	%)
Real estate - residential mortgage		977,909		938,187		4.2	%
Real estate - construction		889,267		1,111,863		(20.0	%)
Consumer		363,066		368,651		(1.5	%)
Leasing and other		70,131		82,224		(14.7	%)
Total Loans, net of unearned income	$	11,958,435	$	11,975,899		(0.1	%)
Deposits, by type:
Noninterest-bearing demand	$	2,104,016	$	1,847,090		13.9	%
Interest-bearing demand		2,099,026		1,857,081		13.0	%
Savings deposits		3,124,157		2,425,864		28.8	%
Time deposits		5,016,645		5,507,090		(8.9	%)
Total Deposits	$	12,343,844	$	11,637,125		6.1	%
Short-term borrowings, by type:
Customer repurchase agreements	$	252,634	$	254,662		(0.8	%)
Customer short-term promissory notes		209,766		287,231		(27.0	%)
Federal funds purchased		125,202		453,268		(72.4	%)
Federal Reserve Bank borrowings		—		46,137		(100.0	%)
Other		—		1,981		(100.0	%)
Total Short-term borrowings	$	587,602	$	1,043,279		(43.7	%)

4

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands

	Quarter Ended									Year Ended
	Dec 31 2010			Dec 31 2009			Sep 30 2010			Dec 31
										2010			2009
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	284,874		$	241,721		$	280,377		$	257,553		$	180,137
Loans charged off:
Real estate - commercial mortgage		(17,688	)		(2,055	)		(4,262	)		(28,209	)		(15,530	)
Real estate - construction		(13,421	)		(12,017	)		(23,139	)		(66,412	)		(44,909	)
Commercial - industrial, agricultural and financial		(12,893	)		(10,078	)		(6,601	)		(35,865	)		(34,761	)
Consumer and home equity		(3,440	)		(3,103	)		(3,254	)		(11,210	)		(10,770	)
Real estate - residential mortgage		(2,874	)		(2,224	)		(751	)		(6,896	)		(7,056	)
Leasing and other		(788	)		(1,366	)		(790	)		(2,833	)		(6,048	)
Total loans charged off		(51,104	)		(30,843	)		(38,797	)		(151,425	)		(119,074	)
Recoveries of loans charged off:
Real estate - commercial mortgage		152			8			571			1,008			536
Real estate - construction		211			842			189			1,296			1,194
Commercial - industrial, agricultural and financial		855			25			2,088			4,536			1,679
Consumer and home equity		254			384			246			1,540			1,678
Real estate - residential mortgage		2			1			3			9			150
Leasing and other		254			395			197			981			1,233
Recoveries of loans previously charged off		1,728			1,655			3,294			9,370			6,470
Net loans charged off		(49,376	)		(29,188	)		(35,503	)		(142,055	)		(112,604	)
Provision for credit losses		40,000			45,020			40,000			160,000			190,020
Balance at end of period	$	275,498		$	257,553		$	284,874		$	275,498		$	257,553
Net charge-offs to average loans (annualized)		1.65	%		0.97	%		1.19	%		1.19	%		0.94	%

NON-PERFORMING ASSETS:

Non-accrual loans	$	280,688	$	238,360	$	284,408
Loans 90 days past due and accruing		48,084		43,359		58,164
Total non-performing loans		328,772		281,719		342,572
Other real estate owned		32,959		23,309		30,195
Total non-performing assets	$	361,731	$	305,028	$	372,767
NON-PERFORMING LOANS, BY TYPE:
Real estate - commercial mortgage	$	93,720	$	61,052	$	100,286
Real estate - construction		84,616		92,841		91,591
Commercial - industrial, agricultural and financial		87,455		69,604		85,103
Real estate - residential mortgage		50,412		45,748		52,038
Real estate - home equity		10,188		10,790		11,272
Consumer		2,154		1,529		1,882
Leasing		227		155		400
Total non-performing loans	$	328,772	$	281,719	$	342,572

DELINQUENCY RATES, BY TYPE:

	December 31, 2010									December 31, 2009									September 30, 2010
	31-89 Days			³90 Days (1)			Total			31-89 Days			³90 Days (1)			Total			31-89 Days			³90 Days (1)			Total
Real estate - commercial mortgage		0.55	%		2.14	%		2.69	%		0.91	%		1.42	%		2.33	%		0.56	%		2.29	%		2.85	%
Commercial - industrial, agricultural and financial		0.36	%		2.36	%		2.72	%		0.63	%		1.88	%		2.51	%		0.77	%		2.31	%		3.08	%
Real estate - residential mortgage		3.65	%		5.11	%		8.76	%		4.12	%		5.10	%		9.22	%		3.93	%		5.26	%		9.19	%
Real estate - construction		0.91	%		10.56	%		11.47	%		0.70	%		9.43	%		10.13	%		1.04	%		10.98	%		12.02	%
Consumer, home equity, leases and other		0.88	%		0.61	%		1.49	%		1.12	%		0.60	%		1.72	%		0.88	%		0.65	%		1.53	%
Total		0.83	%		2.75	%		3.58	%		1.09	%		2.35	%		3.44	%		0.99	%		2.87	%		3.86	%

(1) Includes non-accrual loans

ASSET QUALITY RATIOS:

	Dec 31 2010			Dec 31 2009			Sep 30 2010
Non-accrual loans to total loans		2.35	%		1.99	%		2.38	%
Non-performing assets to total loans and OREO		3.02	%		2.54	%		3.11	%
Non-performing assets to total assets		2.22	%		1.83	%		2.28	%
Allowance for credit losses to loans outstanding		2.31	%		2.15	%		2.38	%
Allowance for credit losses to non-performing loans		83.80	%		91.42	%		83.16	%
Non-performing assets to tangible common shareholders' equity and allowance for credit losses		22.50	%		24.00	%		23.12	%

5