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): July 19, 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 July 19, 2011 Fulton Financial Corporation announced its results of operations for the second quarter ended June 30, 2011. 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 July 19, 2011.
99.2	Supplemental financial information for the quarter ended June 30, 2011.

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: July 19, 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 second quarter earnings of $0.18 per share

• Diluted earnings per share for the second quarter of 2011 was 18 cents, a 5.9 percent increase from the first quarter of 2011.

• The provision for credit losses was $36.0 million for the second quarter of 2011, a $2.0 million, or 5.3 percent, decrease from the first quarter of 2011 and a $4.0 million, or 10.0 percent, decrease from the second quarter of 2010. Non-performing loans decreased $7.2 million, or 2.3 percent, in comparison to the first quarter of 2011, representing the third consecutive quarterly decrease in the level of non-performing loans.

• Other income, excluding investment securities gains and losses, increased $3.8 million, or 8.7 percent, in comparison to the first quarter of 2011 due to strong growth in most fee categories.

• As in the first quarter of 2011, the Corporation raised its dividend to common shareholders by one cent, to $0.05 per common share for the second quarter of 2011.

(July 19, 2011) – Lancaster, PA – Fulton Financial Corporation (NASDAQ: FULT) reported net income of $36.4 million, or 18 cents per diluted share, for the second quarter ended June 30, 2011, compared to $33.8 million, or 17 cents per diluted share, for the first quarter of 2011.

“Our second quarter financial performance showed continued improvement,” said R. Scott Smith, Jr., Chairman and Chief Executive Officer. “In the credit area, we saw reductions in non-performing loans, loan charge-offs, overall loan delinquency and the provision for credit losses. We also produced strong growth in other income while keeping a tight rein on expenses. Residential mortgage activity and related sale gains showed improvement as did our investment management and brokerage activities. Further reduction of funding costs within our deposit base enabled us to expand the net interest margin. With our strong liquidity position, we are well positioned to grow quality loans and related interest income when improved business and consumer confidence leads to more robust demand for credit. We were also pleased to increase our cash dividend again this quarter”.

- MORE -

Page 2 … Fulton Financial reports second quarter earnings of $0.18 per share

In the second quarter of 2011, net income increased $2.6 million, or 7.7 percent, in comparison to the first quarter of 2011. This increase was due to a $2.0 million reduction in the provision for credit losses, a $1.2 million, or 2.6 percent, increase in other income and a $1.1 million, or 0.8 percent, increase in net interest income. The favorable impact of these items was partially offset by a $915,000, or 0.9 percent, increase in other expenses and a $779,000, or 6.3 percent, increase in income tax expense.

For the six months ended June 30, 2011, net income available to common shareholders increased $21.1 million, or 43.1 percent, in comparison to the prior year. This increase was primarily due to a $10.4 million, or 12.5 percent, increase in other income, a $10.1 million decrease in preferred stock costs, a $6.0 million, or 7.5 percent, decrease in the provision for credit losses and a $2.5 million, or 0.9 percent, increase in net interest income. The favorable impact of these items was partially offset by a $5.0 million, or 24.2 percent, increase in income tax expense and a $2.9 million, or 1.4 percent, increase in other expenses.

Asset Quality

Non-performing assets were $348.3 million, or 2.18 percent of total assets, at June 30, 2011, compared to $355.1 million, or 2.22 percent of total assets, at March 31, 2011 and $342.6 million, or 2.06 percent of total assets, at June 30, 2010. The $6.7 million, or 1.9 percent, decrease in non-performing assets in comparison to the first quarter of 2011 was primarily due to a decrease in non-performing construction and residential mortgages, partially offset by an increase in non-performing commercial loans and commercial mortgages.

Annualized net charge-offs for the quarter ended June 30, 2011 were 1.30 percent of average total loans, compared to 1.42 percent for the quarter ended March 31, 2011. The allowance for credit losses as a percentage of non-performing loans was 86.4 percent at June 30, 2011 in comparison to 85.3 percent at March 31, 2011 and 88.5 percent at June 30, 2010.

The provision for credit losses for the second quarter of 2011 decreased $2.0 million, or 5.3 percent, to $36.0 million as a result of improved credit quality metrics, including a continuing trend of decreasing non-performing asset levels that began during the fourth quarter of 2010.

Net Interest Income and Margin

Net interest income for the second quarter of 2011 increased $1.1 million, or 0.8 percent, from the first quarter of 2011, primarily due to a 4 basis point, or 1.0 percent, increase in the net interest margin.

Contributing to the improvement in net interest margin was a five basis point decline in funding costs, partially offset by a two basis point decrease in yields on interest-earning assets.

Page 3 … Fulton Financial reports second quarter earnings of $0.18 per share

Average Balance Sheet

Total average assets for the second quarter of 2011 were $16.0 billion, a decrease of $124.0 million, or 0.8 percent, from the first quarter of 2011.

Average loans, net of unearned income, decreased $38.4 million, or 0.3 percent, for the second quarter of 2011 in comparison to the first quarter of 2011.

	Quarter Ended
	Jun 30 2011		Mar 31 2011		Increase (decrease)
					$			%
	(dollars in thousands)
Loans, by type:
Real estate - commercial mortgage	$	4,430,046	$	4,385,072	$	44,974			1.0	%
Commercial - industrial, financial and agricultural		3,689,877		3,707,081		(17,204	)		(0.5	%)
Real estate - home equity		1,623,438		1,628,550		(5,112	)		(0.3	%)
Real estate - residential mortgage		1,023,471		1,017,439		6,032			0.6	%
Real estate - construction		712,638		779,556		(66,918	)		(8.6	%)
Consumer		332,960		341,247		(8,287	)		(2.4	%)
Leasing and other		70,589		62,497		8,092			12.9	%
Total Loans, net of unearned income	$	11,883,019	$	11,921,442	$	(38,423	)		(0.3	%)

During the second quarter of 2011, commercial mortgages increased $45.0 million, or 1.0 percent. This increase was more than offset by a $66.9 million, or 8.6 percent, decline in construction loans and a $17.2 million, or 0.5 percent, decrease in commercial loans.

Average investments for the second quarter of 2011 were $2.6 billion, a $195.8 million, or 7.0 percent, decrease from the first quarter of 2011. During the second quarter of 2011, sales and maturities of collateralized mortgage obligations and mortgage-backed securities exceeded purchases.

Average deposits for the second quarter of 2011 increased $49.7 million, or 0.4 percent, from the first quarter of 2011.

	Quarter Ended
	Jun 30 2011		Mar 31 2011		Increase (decrease)
					$			%
	(dollars in thousands)
Deposits, by type:
Noninterest-bearing demand	$	2,362,614	$	2,238,200	$	124,414			5.6	%
Interest-bearing demand		2,352,961		2,322,098		30,863			1.3	%
Savings deposits		3,356,361		3,282,790		73,571			2.2	%
Total demand and savings		8,071,936		7,843,088		228,848			2.9	%
Time deposits		4,353,352		4,532,528		(179,176	)		(4.0	%)
Total Deposits	$	12,425,288	$	12,375,616	$	49,672			0.4	%

Page 4 … Fulton Financial reports second quarter earnings of $0.18 per share

The increase in deposits in the second quarter of 2011 in comparison to the first quarter of 2011 was due to a $228.8 million, or 2.9 percent, increase in demand and saving accounts, partially offset by a $179.2 million, or 4.0 percent, decrease in time deposits.

Non-interest Income

Other income, excluding investment securities gains, increased $3.8 million, or 8.7 percent, in comparison to the first quarter of 2011. Service charges on deposit accounts increased $1.0 million, or 7.7 percent, due to increases in overdraft and cash management fees. Other service charges and fees increased $1.2 million, or 10.7 percent, due mainly to growth in debit card and merchant fees.

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

	Quarter Ended
	Jun 30 2011			Mar 31 2011
	(in thousands)
Net realized gains:
Debt securities	$	15		$	3,571
Equity securities		43			5
Other-than-temporary impairment charges:
Debt securities		(359	)		(994	)
Equity securities		(34	)		(297	)
Investment securities gains (losses)	$	(335	)	$	2,285

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

Non-interest Expense

Other expenses increased $915,000, or 0.9 percent, in the second quarter of 2011 compared to the first quarter of 2011, primarily due to a $1.8 million increase in salaries and employee benefits, a $607,000 increase in state taxes, primarily due to an increase in bank franchise tax, and a $605,000 increase in OREO and repossession expense. These increases were partially offset by a $1.5 million decrease in FDIC insurance expense and a $973,000 decrease in marketing expenses.

Page 5 … Fulton Financial reports second quarter earnings of $0.18 per share

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, Mt. Laurel, NJ; Skylands Community Bank, Chester, 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 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 and uncertainties, some of which are beyond the Corporation’s control and ability to predict, that could cause actual results to differ materially from those expressed 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: the impact of adverse changes in the economy and real estate markets; increases in non-performing assets which may reduce the level of earning assets and require the Corporation to increase the allowance for credit losses, charge-off loans and incur elevated collection and carrying costs related to such non-performing assets; acquisition and growth strategies; market risk; changes or adverse developments in 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

Page 6 … Fulton Financial reports second quarter earnings of $0.18 per share

insurance premiums and assessments; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and other 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; relative balances of rate-sensitive assets to rate-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.

#    #    #

2011

EX-99.2

Exhibit 99.2

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

dollars in thousands

										% Change from
	June 30 2011			June 30 2010			March 31 2011			June 30 2010			March 31 2011
ASSETS
Cash and due from banks	$	284,691		$	268,371		$	265,353			6.1	%		7.3	%
Loans held for sale		47,133			93,504			30,903			(49.6	%)		52.5	%
Other interest-earning assets		124,967			433,687			83,293			(71.2	%)		50.0	%
Investment securities		2,663,044			2,892,890			2,697,434			(7.9	%)		(1.3	%)
Loans, net of unearned income		11,852,491			11,943,384			11,873,208			(0.8	%)		(0.2	%)
Allowance for loan losses		(266,683	)		(272,042	)		(270,272	)		(2.0	%)		(1.3	%)
Net Loans		11,585,808			11,671,342			11,602,936			(0.7	%)		(0.1	%)
Premises and equipment		207,177			205,299			208,370			0.9	%		(0.6	%)
Accrued interest receivable		51,387			54,763			52,878			(6.2	%)		(2.8	%)
Goodwill and intangible assets		545,909			550,302			546,934			(0.8	%)		(0.2	%)
Other assets		457,004			456,719			473,095			0.1	%		(3.4	%)
Total Assets	$	15,967,120		$	16,626,877		$	15,961,196			(4.0	%)		—
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	12,262,895		$	12,345,472		$	12,408,610			(0.7	%)		(1.2	%)
Short-term borrowings		546,581			458,334			414,398			19.3	%		31.9	%
Federal Home Loan Bank advances and long-term debt		1,025,537			1,365,688			1,035,689			(24.9	%)		(1.0	%)
Other liabilities		178,798			226,172			192,177			(20.9	%)		(7.0	%)
Total Liabilities		14,013,811			14,395,666			14,050,874			(2.7	%)		(0.3	%)
Preferred stock		—			371,009			—			(100.0	%)		—
Common shareholders’ equity		1,953,309			1,860,202			1,910,322			5.0	%		2.3	%
Total Shareholders’ Equity		1,953,309			2,231,211			1,910,322			(12.5	%)		2.3	%
Total Liabilities and Shareholders’ Equity	$	15,967,120		$	16,626,877		$	15,961,196			(4.0	%)		—
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate - commercial mortgage	$	4,443,025		$	4,330,630		$	4,392,679			2.6	%		1.1	%
Commercial - industrial, financial and agricultural		3,678,858			3,664,603			3,692,668			0.4	%		(0.4	%)
Real estate - home equity		1,626,545			1,637,171			1,620,340			(0.6	%)		0.4	%
Real estate - residential mortgage		1,023,646			985,345			1,022,251			3.9	%		0.1	%
Real estate - construction		681,588			893,305			747,806			(23.7	%)		(8.9	%)
Consumer		330,965			368,631			337,413			(10.2	%)		(1.9	%)
Leasing and other		67,864			63,699			60,051			6.5	%		13.0	%
Total Loans, net of unearned income	$	11,852,491		$	11,943,384		$	11,873,208			(0.8	%)		(0.2	%)
Deposits, by type:
Noninterest-bearing demand	$	2,445,008		$	2,147,153		$	2,310,290			13.9	%		5.8	%
Interest-bearing demand		2,290,478			2,024,033			2,324,988			13.2	%		(1.5	%)
Savings deposits		3,252,200			3,136,492			3,333,403			3.7	%		(2.4	%)
Time deposits		4,275,209			5,037,794			4,439,929			(15.1	%)		(3.7	%)
Total Deposits	$	12,262,895		$	12,345,472		$	12,408,610			(0.7	%)		(1.2	%)
Short-term borrowings, by type:
Customer repurchase agreements	$	208,948		$	247,775		$	216,705			(15.7	%)		(3.6	%)
Customer short-term promissory notes		171,454			200,992			189,408			(14.7	%)		(9.5	%)
Federal funds purchased		166,179			9,567			8,285			1,637.0	%		1,905.8	%
Total Short-term borrowings	$	546,581		$	458,334		$	414,398			19.3	%		31.9	%

1

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

dollars in thousands, except per-share data

	Quarter Ended									% Change from						Six Months Ended June 30						% Change
	Jun 30 2011			Jun 30 2010			Mar 31 2011			Jun 30 2010			Mar  31 2011
																2011			2010
Interest Income:
Interest income	$	174,935		$	187,680		$	175,694			(6.8	%)		(0.4	%)	$	350,629		$	378,268			(7.3	%)
Interest expense		34,290			48,522			36,131			(29.3	%)		(5.1	%)		70,421			100,601			(30.0	%)
Net Interest Income		140,645			139,158			139,563			1.1	%		0.8	%		280,208			277,667			0.9	%
Provision for credit losses		36,000			40,000			38,000			(10.0	%)		(5.3	%)		74,000			80,000			(7.5	%)
Net Interest Income after Provision		104,645			99,158			101,563			5.5	%		3.0	%		206,208			197,667			4.3	%
Other Income:
Service charges on deposit accounts		14,332			15,482			13,305			(7.4	%)		7.7	%		27,637			29,749			(7.1	%)
Other service charges and fees		12,709			11,469			11,482			10.8	%		10.7	%		24,191			21,634			11.8	%
Investment management and trust services		9,638			8,655			9,204			11.4	%		4.7	%		18,842			16,743			12.5	%
Mortgage banking income		6,049			3,899			5,463			55.1	%		10.7	%		11,512			8,048			43.0	%
Investment securities gains (losses)		(335	)		904			2,285			N/M			N/M			1,950			(1,319	)		N/M
Other		4,979			4,503			4,421			10.6	%		12.6	%		9,400			8,317			13.0	%
Total Other Income		47,372			44,912			46,160			5.5	%		2.6	%		93,532			83,172			12.5	%
Other Expenses:
Salaries and employee benefits		56,070			54,654			54,308			2.6	%		3.2	%		110,378			106,999			3.2	%
Net occupancy expense		10,874			10,519			11,366			3.4	%		(4.3	%)		22,240			22,169			0.3	%
Equipment expense		3,377			2,663			3,132			26.8	%		7.8	%		6,509			5,754			13.1	%
FDIC insurance expense		3,264			5,136			4,754			(36.4	%)		(31.3	%)		8,018			10,090			(20.5	%)
Data processing		3,214			3,311			3,372			(2.9	%)		(4.7	%)		6,586			6,728			(2.1	%)
Professional fees		3,102			3,035			2,849			2.2	%		8.9	%		5,951			5,581			6.6	%
OREO and repossession expense		2,575			1,876			1,970			37.3	%		30.7	%		4,545			4,557			(0.3	%)
Marketing		1,863			2,271			2,836			(18.0	%)		(34.3	%)		4,699			4,101			14.6	%
Intangible amortization		1,172			1,341			1,178			(12.6	%)		(0.5	%)		2,350			2,655			(11.5	%)
Other		16,967			16,299			15,798			4.1	%		7.4	%		32,765			32,493			0.8	%
Total Other Expenses		102,478			101,105			101,563			1.4	%		0.9	%		204,041			201,127			1.4	%
Income Before Income Taxes		49,539			42,965			46,160			15.3	%		7.3	%		95,699			79,712			20.1	%
Income tax expense		13,154			11,283			12,375			16.6	%		6.3	%		25,529			20,550			24.2	%
Net Income		36,385			31,682			33,785			14.8	%		7.7	%		70,170			59,162			18.6	%
Preferred stock dividends and discount accretion		—			(5,066	)		—			(100.0	%)		—			—			(10,131	)		(100.0	%)
Net Income Available to Common Shareholders	$	36,385		$	26,616		$	33,785			36.7	%		7.7	%	$	70,170		$	49,031			43.1	%
PER COMMON SHARE:
Net income:
Basic	$	0.18		$	0.14		$	0.17			28.6	%		5.9	%	$	0.35		$	0.27			29.6	%
Diluted		0.18			0.14			0.17			28.6	%		5.9	%		0.35			0.27			29.6	%
Cash dividends	$	0.05		$	0.03		$	0.04			66.7	%		25.0	%	$	0.09		$	0.06			50.0	%
Shareholders’ equity		9.80			9.37			9.59			4.6	%		2.2	%		9.80			9.37			4.6	%
Shareholders’ equity (tangible)		7.06			6.60			6.84			7.0	%		3.2	%		7.06			6.60			7.0	%
Weighted average shares (basic)		198,772			190,221			198,599			4.5	%		0.1	%		198,686			183,236			8.4	%
Weighted average shares (diluted)		199,527			190,827			199,286			4.6	%		0.1	%		199,407			183,793			8.5	%
Shares outstanding, end of period		199,370			198,463			199,191			0.5	%		0.1	%		199,370			198,463			0.5	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.91	%		0.77	%		0.85	%								0.88	%		0.72	%
Return on average common shareholders’ equity		7.53	%		6.06	%		7.21	%								7.38	%		5.90	%
Return on average common shareholders’ equity (tangible)		10.71	%		9.10	%		10.36	%								10.54	%		9.11	%
Net interest margin		3.95	%		3.76	%		3.91	%								3.93	%		3.77	%
Efficiency ratio		52.67	%		53.34	%		53.57	%								53.11	%		53.65	%

N/M - Not meaningful

2

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

	Quarter Ended
	June 30, 2011									June 30, 2010									March 31, 2011
	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	$	11,883,019		$	151,974			5.13	%	$	11,959,176		$	159,632			5.35	%	$	11,921,442		$	151,686			5.15	%
Taxable investment securities		2,141,307			20,749			3.88	%		2,386,695			25,146			4.22	%		2,331,323			21,807			3.75	%
Tax-exempt investment securities		343,214			4,840			5.64	%		355,186			5,152			5.80	%		344,457			4,885			5.67	%
Equity securities		128,258			775			2.42	%		140,271			733			2.09	%		132,841			752			2.28	%
Total Investment Securities		2,612,779			26,364			4.04	%		2,882,152			31,031			4.31	%		2,808,621			27,444			3.91	%
Loans held for sale		36,793			492			5.34	%		59,412			667			4.49	%		45,418			500			4.41	%
Other interest-earning assets		163,548			101			0.25	%		366,200			231			0.25	%		66,381			33			0.20	%
Total Interest-earning Assets		14,696,139			178,931			4.88	%		15,266,940			191,561			5.03	%		14,841,862			179,663			4.90	%
Noninterest-earning assets:
Cash and due from banks		278,393									261,576									260,395
Premises and equipment		207,141									203,928									207,389
Other assets		1,098,116									1,102,587									1,102,543
Less: allowance for loan losses		(273,593	)								(275,209	)								(282,017	)
Total Assets	$	16,006,196								$	16,559,822								$	16,130,172
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	2,352,961		$	1,371			0.23	%	$	2,019,605		$	1,840			0.37	%	$	2,322,098		$	1,436			0.25	%
Savings deposits		3,356,361			3,258			0.39	%		3,090,857			5,388			0.70	%		3,282,790			3,358			0.41	%
Time deposits		4,353,352			17,146			1.58	%		5,120,648			24,591			1.93	%		4,532,528			18,492			1.65	%
Total Interest-bearing Deposits		10,062,674			21,775			0.87	%		10,231,110			31,819			1.25	%		10,137,416			23,286			0.93	%
Short-term borrowings		455,831			168			0.15	%		512,583			390			0.30	%		622,662			254			0.16	%
Federal Home Loan Bank advances and long-term debt		1,025,637			12,347			4.82	%		1,403,410			16,313			4.66	%		1,061,523			12,591			4.78	%
Total Interest-bearing Liabilities		11,544,142			34,290			1.19	%		12,147,103			48,522			1.60	%		11,821,601			36,131			1.24	%
Noninterest-bearing liabilities:
Demand deposits		2,362,614									2,079,674									2,238,200
Other		162,202									199,778									170,930
Total Liabilities		14,068,958									14,426,555									14,230,731
Shareholders’ equity		1,937,238									2,133,267									1,899,441
Total Liabilities and Shareholders’ Equity	$	16,006,196								$	16,559,822								$	16,130,172
Net interest income/net interest margin (fully taxable equivalent)					144,641			3.95	%					143,039			3.76	%					143,532			3.91	%
Tax equivalent adjustment					(3,996	)								(3,881	)								(3,969	)
Net interest income				$	140,645								$	139,158								$	139,563

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

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

	Quarter Ended						% Change from
	June 30 2011		June 30 2010		March 31 2011		June 30 2010			March 31 2011
Loans, by type:
Real estate - commercial mortgage	$	4,430,046	$	4,319,540	$	4,385,072		2.6	%		1.0	%
Commercial - industrial, financial and agricultural		3,689,877		3,686,442		3,707,081		0.1	%		(0.5	%)
Real estate - home equity		1,623,438		1,638,260		1,628,550		(0.9	%)		(0.3	%)
Real estate - residential mortgage		1,023,471		972,129		1,017,439		5.3	%		0.6	%
Real estate - construction		712,638		909,836		779,556		(21.7	%)		(8.6	%)
Consumer		332,960		362,883		341,247		(8.2	%)		(2.4	%)
Leasing and other		70,589		70,086		62,497		0.7	%		12.9	%
Total Loans, net of unearned income	$	11,883,019	$	11,959,176	$	11,921,442		(0.6	%)		(0.3	%)
Deposits, by type:
Noninterest-bearing demand	$	2,362,614	$	2,079,674	$	2,238,200		13.6	%		5.6	%
Interest-bearing demand		2,352,961		2,019,605		2,322,098		16.5	%		1.3	%
Savings deposits		3,356,361		3,090,857		3,282,790		8.6	%		2.2	%
Time deposits		4,353,352		5,120,648		4,532,528		(15.0	%)		(4.0	%)
Total Deposits	$	12,425,288	$	12,310,784	$	12,375,616		0.9	%		0.4	%
Short-term borrowings, by type:
Customer repurchase agreements	$	217,657	$	263,533	$	212,931		(17.4	%)		2.2	%
Customer short-term promissory notes		171,958		207,100		190,385		(17.0	%)		(9.7	%)
Federal funds purchased		66,216		41,950		219,346		57.8	%		(69.8	%)
Total Short-term borrowings	$	455,831	$	512,583	$	622,662		(11.1	%)		(26.8	%)

3

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

dollars in thousands

	Six Months Ended June 30
	2011									2010
	Average Balance			Interest (1)			Yield/Rate			Average Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,902,124		$	303,660			5.14	%	$	11,965,446		$	319,056			5.37	%
Taxable investment securities		2,235,789			42,556			3.81	%		2,524,149			53,295			4.23	%
Tax-exempt investment securities		343,832			9,725			5.66	%		371,488			10,683			5.75	%
Equity securities		130,537			1,527			2.35	%		141,079			1,542			2.19	%
Total Investment Securities		2,710,158			53,808			3.97	%		3,036,716			65,520			4.32	%
Loans held for sale		41,082			992			4.83	%		51,220			1,223			4.77	%
Other interest-earning assets		115,233			134			0.23	%		189,479			256			0.27	%
Total Interest-earning Assets		14,768,597			358,594			4.89	%		15,242,861			386,055			5.10	%
Noninterest-earning assets:
Cash and due from banks		269,444									262,357
Premises and equipment		207,263									203,757
Other assets		1,100,319									1,094,653
Less: allowance for loan losses		(277,782	)								(274,322	)
Total Assets	$	16,067,841								$	16,529,306
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	2,337,615		$	2,807			0.24	%	$	2,000,734		$	3,680			0.37	%
Savings deposits		3,319,778			6,616			0.40	%		2,969,814			10,589			0.72	%
Time deposits		4,442,446			35,638			1.62	%		5,161,583			51,288			2.00	%
Total Interest-bearing Deposits		10,099,839			45,061			0.90	%		10,132,131			65,557			1.30	%
Short-term borrowings		538,786			422			0.16	%		691,289			939			0.27	%
Federal Home Loan Bank advances and long-term debt		1,043,481			24,938			4.80	%		1,443,600			34,105			4.75	%
Total Interest-bearing Liabilities		11,682,106			70,421			1.21	%		12,267,020			100,601			1.65	%
Noninterest-bearing liabilities:
Demand deposits		2,300,750									2,026,705
Other		166,541									190,207
Total Liabilities		14,149,397									14,483,932
Shareholders’ equity		1,918,444									2,045,374
Total Liabilities and Shareholders’ Equity	$	16,067,841								$	16,529,306
Net interest income/net interest margin (fully taxable equivalent)					288,173			3.93	%					285,454			3.77	%
Tax equivalent adjustment					(7,965	)								(7,787	)
Net interest income				$	280,208								$	277,667

(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:

	Six Months Ended June 30
	2011		2010		% Change
Loans, by type:
Real estate - commercial mortgage	$	4,407,683	$	4,312,942		2.2	%
Commercial - industrial, financial and agricultural		3,698,430		3,686,425		0.3	%
Real estate - home equity		1,625,980		1,639,579		(0.8	%)
Real estate - residential mortgage		1,020,471		956,478		6.7	%
Real estate - construction		745,912		935,861		(20.3	%)
Consumer		337,080		362,549		(7.0	%)
Leasing and other		66,568		71,612		(7.0	%)
Total Loans, net of unearned income	$	11,902,124	$	11,965,446		(0.5	%)
Deposits, by type:
Noninterest-bearing demand	$	2,300,750	$	2,026,705		13.5	%
Interest-bearing demand		2,337,615		2,000,734		16.8	%
Savings deposits		3,319,778		2,969,814		11.8	%
Time deposits		4,442,446		5,161,583		(13.9	%)
Total Deposits	$	12,400,589	$	12,158,836		2.0	%
Short-term borrowings, by type:
Customer repurchase agreements	$	215,307	$	256,298		(16.0	%)
Customer short-term promissory notes		181,121		215,224		(15.8	%)
Federal funds purchased		142,358		219,767		(35.2	%)
Total Short-term borrowings	$	538,786	$	691,289		(22.1	%)

4

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

dollars in thousands

	Quarter Ended									Six Months Ended
	June 30			June 30			Mar 31			June 30
	2011			2010			2011			2011			2010
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	271,156		$	269,254		$	275,498		$	275,498		$	257,553
Loans charged off:
Commercial - industrial, financial and agricultural		(15,406	)		(13,390	)		(13,336	)		(28,742	)		(16,371	)
Real estate - residential mortgage		(7,707	)		(1,880	)		(4,996	)		(12,703	)		(3,271	)
Real estate - construction		(7,468	)		(9,299	)		(13,894	)		(21,362	)		(29,852	)
Real estate - commercial mortgage		(7,074	)		(3,915	)		(10,047	)		(17,121	)		(6,259	)
Consumer and home equity		(2,331	)		(2,438	)		(2,759	)		(5,090	)		(4,516	)
Leasing and other		(689	)		(610	)		(497	)		(1,186	)		(1,255	)
Total loans charged off		(40,675	)		(31,532	)		(45,529	)		(86,204	)		(61,524	)
Recoveries of loans charged off:
Commercial - industrial, financial and agricultural		1,003			1,157			391			1,394			1,593
Real estate - residential mortgage		190			3			44			234			4
Real estate - construction		79			581			563			642			896
Real estate - commercial mortgage		191			157			1,535			1,726			285
Consumer and home equity		435			488			310			745			1,040
Leasing and other		254			269			344			598			530
Recoveries of loans previously charged off		2,152			2,655			3,187			5,339			4,348
Net loans charged off		(38,523	)		(28,877	)		(42,342	)		(80,865	)		(57,176	)
Provision for credit losses		36,000			40,000			38,000			74,000			80,000
Balance at end of period	$	268,633		$	280,377		$	271,156		$	268,633		$	280,377
Net charge-offs to average loans (annualized)		1.30	%		0.97	%		1.42	%		1.36	%		0.96	%
NON-PERFORMING ASSETS:
Non-accrual loans	$	274,973		$	263,227		$	280,270
Loans 90 days past due and accruing		35,869			53,707			37,768
Total non-performing loans		310,842			316,934			318,038
Other real estate owned		37,493			25,681			37,044
Total non-performing assets	$	348,335		$	342,615		$	355,082
NON-PERFORMING LOANS, BY TYPE:
Real estate - commercial mortgage	$	102,724		$	101,378		$	97,305
Commercial - industrial, financial and agricultural		94,855			77,587			86,050
Real estate - construction		58,381			79,122			72,880
Real estate - residential mortgage		43,200			45,639			49,998
Real estate - home equity		9,440			11,090			9,314
Consumer		2,090			2,025			2,258
Leasing		152			93			233
Total non-performing loans	$	310,842		$	316,934		$	318,038

DELINQUENCY RATES, BY TYPE:

	June 30, 2011									June 30, 2010									March 31, 2011
	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		0.57	%		2.32	%		2.89	%		0.81	%		2.34	%		3.15	%		0.66	%		2.21	%		2.87	%
Commercial - industrial, financial and agricultural		0.54	%		2.58	%		3.12	%		0.46	%		2.12	%		2.58	%		0.50	%		2.33	%		2.83	%
Real estate - construction		0.62	%		8.56	%		9.18	%		1.07	%		8.86	%		9.93	%		0.56	%		9.75	%		10.31	%
Real estate - residential mortgage		3.37	%		4.22	%		7.59	%		3.65	%		4.63	%		8.28	%		3.47	%		4.89	%		8.36	%
Real estate - home equity		0.74	%		0.58	%		1.32	%		0.83	%		0.68	%		1.51	%		0.74	%		0.57	%		1.31	%
Consumer, leasing and other		1.22	%		0.56	%		1.78	%		1.37	%		0.49	%		1.86	%		1.26	%		0.64	%		1.90	%
Total		0.85	%		2.63	%		3.48	%		0.98	%		2.65	%		3.63	%		0.88	%		2.67	%		3.55	%

(1) Includes non-accrual loans

ASSET QUALITY RATIOS:

	June 30 2011			June 30 2010			Mar 31 2011
Non-accrual loans to total loans		2.32	%		2.20	%		2.36	%
Non-performing assets to total loans and OREO		2.93	%		2.86	%		2.98	%
Non-performing assets to total assets		2.18	%		2.06	%		2.22	%
Allowance for credit losses to loans outstanding		2.27	%		2.35	%		2.28	%
Allowance for credit losses to non-performing loans		86.42	%		88.47	%		85.26	%
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses		20.78	%		21.54	%		21.72	%

5