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LANCASTER, PA–(Marketwire – April 20, 2010) – Fulton Financial Corporation (NASDAQ: FULT)

 Highlights for the First Quarter of 2010 -- An increase of 11 basis points, or 3.0 percent, in net interest margin, resulting in a $2.4 million, or 1.8 percent, increase in net interest income in comparison the fourth quarter of 2009. -- A reduction in the provision for loan losses of $5.0 million, or 11.2 percent, in comparison to the fourth quarter of 2009. -- Effective expense management, as shown by an improvement in the efficiency ratio and a slight decrease in other expenses in comparison to the fourth quarter of 2009. -- A 2 basis point, or 2.1 percent, improvement in annualized net charge-offs to average loans. -- An improved coverage ratio, allowance for credit losses to non-performing loans, from 91.4 percent at December 31, 2009 to 94.1 percent at March 31, 2010. 

Fulton Financial Corporation (NASDAQ: FULT) reported net income available to common shareholders of $22.4 million, or 13 cents per diluted share, for the first quarter ended March 31, 2010, compared to $19.3 million, or 11 cents per diluted share, for the fourth quarter of 2009.

“We were pleased to see the continuation of our positive earnings momentum in the first quarter. The results of our allowance allocation process enabled us to again reduce the provision for loan losses,” said R. Scott Smith, Jr., chairman and chief executive officer. “Despite slower loan demand and lower yields on earning assets, we were able to increase net interest income. The net interest margin expanded significantly as funding costs continued to decline. We believe that further stabilization in our credit quality, along with a rebound in overall economic activity, can provide the impetus for further earnings improvement. I want to again express my gratitude to our 3,950-member team for their unwavering commitment and dedication to positioning this company for future growth.”

In the first quarter of 2010, net income available to common shareholders increased $14.4 million, or 178.3 percent, in comparison to the first quarter of 2009. The increase in net income available to common shareholders was primarily due to a $14.4 million increase in net interest income, a $10.0 million decrease in the provision for loan losses, and a $7.1 million decrease in other expenses. These improvements were partially offset by a $5.1 million decrease in net gains on investment securities and a $4.3 million decrease in other income.

Asset Quality

The Corporation’s credit quality metrics continued to stabilize in the first quarter of 2010, a trend that began in the second half of 2009. Non-performing assets were $312.2 million, or 1.90 percent of total assets, at March 31, 2010, compared to $305.0 million, or 1.83 percent, at December 31, 2009 and $269.2 million, or 1.63 percent of total assets, at March 31, 2009. The $7.2 million, or 2.4 percent, increase in non-performing assets since December 31, 2009 was primarily due to a $4.3 million increase in non-performing loans and a $2.9 million increase in other real estate owned. The increase in non-performing loans was primarily due to a $9.5 million, or 15.6 percent, increase in non-performing commercial mortgages and an $8.8 million, or 12.6 percent, increase in non-performing commercial loans, offset by a $13.3 million, or 14.3 percent, decrease in non-performing construction loans, largely due to $20.2 million of net charge-offs.

Annualized net charge-offs for the quarter ended March 31, 2010 were 0.95 percent of average total loans compared to 0.97 percent for the quarter ended December 31, 2009 and 1.00 percent for the quarter ended March 31, 2009. The allowance for credit losses as a percentage of non-performing loans increased to 94.1 percent at the end of the first quarter of 2010 in comparison to 91.4 percent at the end of the fourth quarter of 2009. The provision for loan losses decreased by $5.0 million, or 11.2 percent, in comparison to the prior quarter.

Net Interest Income and Margin

Net interest income for the first quarter of 2010 increased $2.4 million, or 1.8 percent, from the fourth quarter of 2009 and increased $14.4 million, or 11.6 percent, compared to the same period in 2009. The Corporation’s net interest margin was 3.78 percent for the first quarter of 2010, 3.67 percent for fourth quarter of 2009 and 3.45 percent for the first quarter of 2009. The increase in net interest income in comparison to the fourth quarter of 2009 was a result of the 11 basis point, or 3.0 percent, increase in net interest margin, which was mainly driven by the decline in time deposit costs, which decreased from 2.30 percent in the fourth quarter of 2009 to 2.08 percent in the first quarter of 2010. Yields on interest-earning assets decreased 3 basis points, or 0.6 percent, from the fourth quarter of 2009.

Average Balance Sheet

Total average assets for the first quarter of 2010 were $16.5 billion, unchanged from the fourth quarter of 2009 and $224.2 million, or 1.4 percent, higher than the first quarter of 2009.

Average loans, net of unearned income, for the first quarter of 2010 decreased $17.5 million, or 0.1 percent, from the fourth quarter of 2009 and decreased $69.5 million, or 0.6 percent, from the first quarter of 2009.

 Quarter Ended ----------------------- Mar 31 Dec 31 Increase (decrease) 2010 2009 $ % ----------- ----------- ---------- ---------- (dollars in thousands) Loans, by type: Real estate - commercial mortgage $ 4,306,270 $ 4,240,436 $ 65,834 1.6% Commercial - industrial, financial and agricultural 3,686,405 3,713,926 (27,521) (0.7%) Real estate - home equity 1,640,912 1,645,524 (4,612) (0.3%) Real estate - construction 962,175 1,018,057 (55,882) (5.5%) Real estate - residential mortgage 940,652 925,660 14,992 1.6% Consumer 362,212 370,258 (8,046) (2.2%) Leasing and other 73,160 75,453 (2,293) (3.0%) ----------- ----------- ---------- ---------- Total Loans, net of unearned income $11,971,786 $11,989,314 (17,528) (0.1%) =========== =========== ========== ========== 

Weak loan demand hampered overall portfolio growth in the first quarter of 2010, continuing a trend which was evidenced throughout the prior year. In comparison to the fourth quarter of 2009, growth in average commercial and residential mortgages was more than offset by a decrease in construction loans as the Corporation actively managed its exposure in this portfolio.

Opportunities for expanding commercial loans continued to be a challenge as economic uncertainty caused business clients to delay expansion plans. The Corporation was able to achieve commercial mortgage growth from both existing customers and new relationships, while maintaining its underwriting standards.

Average investments were $3.2 billion, a $62.1 million, or 2.0 percent, increase from the fourth quarter of 2009. The increase was due primarily to the reinvestment of portfolio cash flows in collateralized mortgage obligations at the end of the fourth quarter of 2009.

Average deposits for the first quarter of 2010 decreased $143.2 million, or 1.2 percent, from the fourth quarter of 2009 and increased $1.1 billion, or 10.1 percent, from the first quarter of 2009.

 Quarter Ended ----------------------- Increase (decrease) Mar 31 Dec 31 ---------------------- 2010 2009 $ % ----------- ----------- ---------- ---------- (dollars in thousands) Deposits, by type: Noninterest-bearing demand $ 1,973,146 $ 1,991,210 $ (18,064) (0.9%) Interest-bearing demand 1,981,653 1,969,681 11,972 0.6% Savings deposits 2,847,427 2,772,340 75,087 2.7% ----------- ----------- ---------- ---------- Total, excluding time deposits 6,802,226 6,733,231 68,995 1.0% Time deposits 5,202,975 5,415,169 (212,194) (3.9%) ----------- ----------- ---------- ---------- Total Deposits $12,005,201 $12,148,400 $ (143,199) (1.2%) ----------- ----------- ---------- ---------- 

During the first quarter of 2010, the Corporation experienced a $69.0 million, or 1.0 percent, increase in demand and savings deposits, offset by a $212.2 million, or 3.9 percent, decrease in time deposits. The increase in core deposits replaced other funding sources such as time deposits, which decreased as a result of lower customer demand.

Non-interest Income

Other income, excluding investment securities gains (losses), decreased $1.5 million, or 3.6 percent, in comparison to the fourth quarter of 2009. Service charges on deposit accounts decreased $907,000, or 6.0 percent, due to a $507,000 decrease in overdraft fees resulting from normal seasonal fluctuations and a $181,000 decrease in cash management fees due to the impact the current rate environment has had on this line of business as customers continue to shift funds to deposit accounts. Gains on sales of mortgage loans decreased $516,000 due to a decrease in refinance volumes.

Compared to the first quarter of 2009, other income, excluding investment securities gains (losses), decreased $4.3 million, or 9.8 percent, primarily due to a $5.2 million decrease in gains on sales of mortgage loans, resulting from a decrease in refinance volumes and a $925,000 decrease in cash management fee income, offset by a $565,000 increase in foreign currency processing revenues and a $442,000 increase in overdraft fees.

Investment securities losses in the first quarter of 2010 were $2.2 million compared to losses of $1.9 million in the fourth quarter of 2009 and gains of $2.9 million in the first quarter of 2009.

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

 Quarter Ended ---------------------------- Mar 31 Dec 31 Mar 31 2010 2009 2009 -------- -------- -------- (in thousands) Net realized gains (losses): Debt securities $ 1,918 $ 2,289 $ 6,063 Equity securities 836 26 (104) Other-than-temporary impairment charges: Debt securities (4,153) (2,995) (1,978) Equity securities (824) (1,192) (1,062) -------- -------- -------- Investment securities gains (losses) $ (2,223) $ (1,872) $ 2,919 ======== ======== ======== 

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

Non-interest Expense

Other expenses decreased $1.1 million, or 1.1 percent, in the first quarter of 2010 compared to the fourth quarter of 2009. Salaries and benefits decreased $1.3 million, or 2.4 percent, due to decreases in incentive compensation. Marketing expenses and outside services decreased $1.3 million due to continuing efforts to reduce discretionary spending and the timing of promotional campaigns. Offsetting these decreases was a $1.0 million increase in net occupancy expense, mainly due to snow removal and utilities costs.

Other expenses decreased $7.1 million, or 6.7 percent, in the first quarter of 2010 compared to the same period in 2009. During the first quarter of 2009, the Corporation recorded a $6.2 million charge related to guarantees associated with the purchase of illiquid auction rate securities previously sold to customers. Also contributing to the decrease was a $3.0 million decrease in salaries and benefits, due primarily to decrease in average full-time equivalent employees, a reduction in incentive compensation, a reduction in healthcare costs as claims decreased and a reduction in severance expense.

About Fulton Financial

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has 3,950 employees and operates more than 270 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; Skylands Community Bank, Hackettstown, NJ and The Columbia Bank, Columbia, MD.

The Corporation’s 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 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 requirements, 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

 FULTON FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (UNAUDITED) dollars in thousands, except per-share data March 31 ------------------------ BALANCE SHEET DATA 2010 2009 % Change ----------- ----------- ----------- Total assets $16,411,523 $16,493,522 (0.5%) Loans, net of unearned income 11,964,840 12,009,060 (0.4%) Investment securities 3,103,628 3,123,687 (0.6%) Deposits 12,156,455 11,413,982 6.5% Shareholders' equity 1,969,838 1,861,321 5.8% Quarter Ended March 31 ------------------------ INCOME SUMMARY 2010 2009 % Change ----------- ----------- ----------- Interest income $ 190,588 $ 195,567 (2.5%) Interest expense (52,079) (71,451) (27.1%) ----------- ----------- Net interest income 138,509 124,116 11.6% Provision for loan losses (40,000) (50,000) (20.0%) Investment securities gains (losses) (2,223) 2,919 N/M Other income 39,690 43,995 (9.8%) Other expenses (99,229) (106,372) (6.7%) ----------- ----------- Income before income taxes 36,747 14,658 150.7% Income tax expense (9,267) (1,573) 489.1% ----------- ----------- Net income 27,480 13,085 110.0% Preferred stock dividends and discount accretion (5,065) (5,031) 0.7% ----------- ----------- Net income available to common shareholders $ 22,415 $ 8,054 178.3% =========== =========== PER COMMON SHARE: Net income: Basic $ 0.13 $ 0.05 160.0% Diluted 0.13 0.05 160.0% Cash dividends 0.03 0.03 - Shareholders' equity 9.06 8.50 6.6% Shareholders' equity (tangible) 5.94 5.33 11.4% SELECTED FINANCIAL RATIOS: Return on average assets 0.68% 0.33% Return on average common shareholders' equity 5.73% 2.18% Return on average common shareholders' equity (tangible) 9.13% 3.88% Net interest margin 3.78% 3.45% Efficiency ratio 53.77% 60.95% Tangible common equity to tangible assets 6.61% 5.87% Non-performing assets to total assets 1.90% 1.63% N/M - Not meaningful FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) dollars in thousands % Change from ----------------- March December March 31 March 31 December 31 31 31 2010 2009 2009 2009 2009 ----------- ----------- ----------- ------- ------- ASSETS Cash and due from banks $ 276,200 $ 265,431 $ 284,508 4.1% (2.9%) Loans held for sale 53,798 102,033 85,384 (47.3%) (37.0%) Other interest- earning assets 7,842 14,329 16,591 (45.3%) (52.7%) Investment securities 3,103,628 3,123,687 3,267,086 (0.6%) (5.0%) Loans, net of unearned income 11,964,840 12,009,060 11,972,424 (0.4%) (0.1%) Allowance for loan losses (264,915) (192,410) (256,698) 37.7% 3.2% ----------- ----------- ----------- Net Loans 11,699,925 11,816,650 11,715,726 (1.0%) (0.1%) Premises and equipment 204,149 205,495 204,203 (0.7%) - Accrued interest receivable 58,689 59,369 58,515 (1.1%) 0.3% Goodwill and intangible assets 551,537 556,496 552,563 (0.9%) (0.2%) Other assets 455,755 350,032 451,059 30.2% 1.0% ----------- ----------- ----------- Total Assets $16,411,523 $16,493,522 $16,635,635 (0.5%) (1.3%) =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $12,156,455 $11,413,982 $12,097,914 6.5% 0.5% Short-term borrowings 624,650 1,195,474 868,940 (47.7%) (28.1%) Federal Home Loan Bank advances and long-term debt 1,440,755 1,786,598 1,540,773 (19.4%) (6.5%) Other liabilities 219,825 236,147 191,526 (6.9%) 14.8% ----------- ----------- ----------- Total Liabilities 14,441,685 14,632,201 14,699,153 (1.3%) (1.8%) Preferred stock 370,649 369,270 370,290 0.4% 0.1% Common shareholders' equity 1,599,189 1,492,051 1,566,192 7.2% 2.1% ----------- ----------- ----------- Total Shareholders' Equity 1,969,838 1,861,321 1,936,482 5.8% 1.7% ----------- ----------- ----------- Total Liabilities and Shareholders' Equity $16,411,523 $16,493,522 $16,635,635 (0.5%) (1.3%) =========== =========== =========== LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $ 4,322,774 $ 4,068,342 $ 4,292,300 6.3% 0.7% Commercial - industrial, financial and agricultural 3,684,903 3,653,503 3,699,198 0.9% (0.4%) Real estate - home equity 1,638,179 1,673,613 1,644,260 (2.1%) (0.4%) Real estate - residential mortgage 951,381 947,837 921,741 0.4% 3.2% Real estate - construction 937,279 1,205,256 978,267 (22.2%) (4.2%) Consumer 361,681 378,851 360,698 (4.5%) 0.3% Leasing and other 68,643 81,658 75,960 (15.8%) (9.6%) ----------- ----------- ----------- Total Loans, net of unearned income $11,964,840 $12,009,060 $11,972,424 (0.4%) (0.1%) =========== =========== =========== Deposits, by type: Noninterest- bearing demand $ 2,038,199 $ 1,776,169 $ 2,012,837 14.8% 1.3% Interest- bearing demand 1,987,791 1,799,586 2,022,746 10.5% (1.7%) Savings deposits 2,972,621 2,125,297 2,748,467 39.9% 8.2% Time deposits 5,157,844 5,712,930 5,313,864 (9.7%) (2.9%) ----------- ----------- ----------- Total Deposits $12,156,455 $11,413,982 $12,097,914 6.5% 0.5% =========== =========== =========== Short-term borrowings, by type: Federal funds purchased $ 162,040 $ 397,158 $ 378,068 (59.2%) (57.1%) Customer repurchase agreements 245,265 249,256 259,458 (1.6%) (5.5%) Customer short-term promissory notes 217,345 343,845 231,414 (36.8%) (6.1%) Federal Reserve Bank borrowings and other - 205,215 - N/A - ----------- ----------- ----------- Total Short-term borrowings $ 624,650 $ 1,195,474 $ 868,940 (47.7%) (28.1%) =========== =========== =========== N/A - Not Applicable FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) dollars in thousands, except per-share data Quarter Ended % Change from ---------------------------------- ---------------------- March 31 March 31 December 31 March 31 December 31 2010 2009 2009 2009 2009 ---------- ---------- ---------- ---------- ---------- Interest Income: Interest income $ 190,588 $ 195,567 $ 194,942 (2.5%) (2.2%) Interest expense 52,079 71,451 58,849 (27.1%) (11.5%) ---------- ---------- ---------- Net Interest Income 138,509 124,116 136,093 11.6% 1.8% Provision for loan losses 40,000 50,000 45,020 (20.0%) (11.2%) ---------- ---------- ---------- Net Interest Income after Provision 98,509 74,116 91,073 32.9% 8.2% Other Income: Service charges on deposit accounts 14,267 14,894 15,174 (4.2%) (6.0%) Other service charges and fees 9,372 8,354 9,369 12.2% - Investment management and trust services 8,088 7,903 8,106 2.3% (0.2%) Gains on sales of mortgage loans 3,364 8,591 3,880 (60.8%) (13.3%) Investment securities gains (losses) (2,223) 2,919 (1,872) N/M 18.8% Other 4,599 4,253 4,628 8.1% (0.6%) ---------- ---------- ---------- Total Other Income 37,467 46,914 39,285 (20.1%) (4.6%) Other Expenses: Salaries and employee benefits 52,345 55,304 53,623 (5.4%) (2.4%) Net occupancy expense 11,650 11,023 10,612 5.7% 9.8% FDIC insurance expense 4,954 4,288 4,841 15.5% 2.3% Equipment expense 3,091 3,079 3,160 0.4% (2.2%) Data processing 2,624 3,072 2,228 (14.6%) 17.8% Professional fees 2,546 2,228 2,397 14.3% 6.2% Telecommuni- cations 2,270 2,163 2,125 4.9% 6.8% Marketing 1,830 2,571 2,638 (28.8%) (30.6%) Intangible amortization 1,314 1,463 1,421 (10.2%) (7.5%) Operating risk loss 511 6,201 867 (91.8%) (41.1%) Other 16,094 14,980 16,458 7.4% (2.2%) ---------- ---------- ---------- Total Other Expenses 99,229 106,372 100,370 (6.7%) (1.1%) ---------- ---------- ---------- Income Before Income Taxes 36,747 14,658 29,988 150.7% 22.5% Income tax expense 9,267 1,573 5,606 489.1% 65.3% ---------- ---------- ---------- Net Income 27,480 13,085 24,382 110.0% 12.7% Preferred stock dividends and discount accretion (5,065) (5,031) (5,046) 0.7% 0.4% ---------- ---------- ---------- Net Income Available to Common Sharehol- ders $ 22,415 $ 8,054 $ 19,336 178.3% 15.9% ========== ========== ========== PER COMMON SHARE: Net income: Basic $ 0.13 $ 0.05 $ 0.11 160.0% 18.2% Diluted 0.13 0.05 0.11 160.0% 18.2% Cash dividends $ 0.03 $ 0.03 $ 0.03 - - Shareholders' equity 9.06 8.50 8.88 6.6% 2.0% Shareholders' equity (tangible) 5.94 5.33 5.75 11.4% 3.3% Weighted average shares (basic) 176,174 175,315 175,988 0.5% 0.1% Weighted average shares (diluted) 176,681 175,548 176,413 0.6% 0.2% Shares outstanding, end of period 176,509 175,507 176,364 0.6% 0.1% SELECTED FINANCIAL RATIOS: Return on average assets 0.68% 0.33% 0.59% Return on average common shareholders' equity 5.73% 2.18% 4.91% Return on average common shareholders' equity (tangible) 9.13% 3.88% 7.96% Net interest margin 3.78% 3.45% 3.67% Efficiency ratio 53.77% 60.95% 54.61% N/M - Not meaningful FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) dollars in thousands Quarter Ended ---------------------------------------------------------- March 31, 2010 March 31, 2009 ---------------------------- ---------------------------- Average Yield/ Average Yield/ Balance Interest(1) Rate Balance Interest(1) Rate ----------- --------- ---- ----------- --------- ---- ASSETS Interest-earning assets: Loans, net of unearned income $11,971,786 $ 159,424 5.39% $12,041,286 $ 163,753 5.51% Taxable investment securities 2,663,127 28,149 4.23% 2,212,639 26,849 4.86% Tax-exempt investment securities 387,971 5,531 5.70% 503,265 6,887 5.47% Equity securities 141,896 809 2.29% 137,308 774 2.28% ----------- --------- ---- ----------- --------- ---- Total Investment Securities 3,192,994 34,489 4.33% 2,853,212 34,510 4.84% Loans held for sale 42,938 556 5.18% 104,467 1,261 4.83% Other interest- earning assets 10,793 25 0.95% 16,934 50 1.19% ----------- --------- ---- ----------- --------- ---- Total Interest- earning Assets 15,218,511 194,494 5.17% 15,015,899 199,574 5.38% Noninterest- earning assets: Cash and due from banks 263,147 317,928 Premises and equipment 203,584 202,875 Other assets 1,086,635 924,755 Less: allowance for loan losses (273,426) (187,183) ----------- ----------- Total Assets $16,498,451 $16,274,274 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $ 1,981,653 $ 1,840 0.38% $ 1,754,003 $ 1,776 0.41% Savings deposits 2,847,427 5,201 0.74% 2,058,021 4,353 0.86% Time deposits 5,202,975 26,696 2.08% 5,432,676 43,767 3.27% ----------- --------- ---- ----------- --------- ---- Total Interest- bearing Deposits 10,032,055 33,737 1.36% 9,244,700 49,896 2.19% Short-term borrowings 871,981 549 0.25% 1,517,064 1,436 0.38% Federal Home Loan Bank advances and long-term debt 1,484,236 17,792 4.86% 1,787,493 20,119 4.55% ----------- --------- ---- ----------- --------- ---- Total Interest- bearing Liabilities 12,388,272 52,078 1.70% 12,549,257 71,451 2.31% Noninterest- bearing liabilities: Demand deposits 1,973,146 1,657,658 Other 180,528 201,449 ----------- ----------- Total Liabilities 14,541,946 14,408,364 Shareholders' equity 1,956,505 1,865,910 ----------- ----------- Total Liabilities and Shareholders' Equity $16,498,451 $16,274,274 =========== =========== Net interest income/net interest margin (fully taxable equivalent) 142,416 3.78% 128,123 3.45% ==== ==== Tax equivalent adjustment (3,906) (4,007) --------- --------- Net interest income $ 138,510 $ 124,116 ========= ========= Quarter Ended ---------------------------- December 31, 2009 ---------------------------- Average Yield/ Balance Interest(1) Rate ----------- --------- ---- ASSETS Interest-earning assets: Loans, net of unearned income $11,989,314 $ 163,972 5.43% Taxable investment securities 2,580,754 27,297 4.23% Tax-exempt investment securities 406,088 5,767 5.68% Equity securities 144,071 851 2.35% ----------- --------- ---- Total Investment Securities 3,130,913 33,915 4.33% Loans held for sale 74,438 951 5.11% Other interest- earning assets 22,745 56 0.98% ----------- --------- ---- Total Interest- earning Assets 15,217,410 198,894 5.20% Noninterest- earning assets: Cash and due from banks 318,472 Premises and equipment 203,699 Other assets 987,094 Less: allowance for loan losses (250,871) ----------- Total Assets $16,475,804 =========== LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $ 1,969,681 $ 2,099 0.42% Savings deposits 2,772,340 5,546 0.79% Time deposits 5,415,169 31,454 2.30% ----------- --------- ---- Total Interest- bearing Deposits 10,157,190 39,099 1.53% Short-term borrowings 618,087 584 0.37% Federal Home Loan Bank advances and long-term debt 1,589,839 19,166 4.78% ----------- --------- ---- Total Interest- bearing Liabilities 12,365,116 58,849 1.89% Noninterest- bearing liabilities: Demand deposits 1,991,210 Other 185,817 ----------- Total Liabilities 14,542,143 Shareholders' equity 1,933,661 ----------- Total Liabilities and Shareholders' Equity $16,475,804 =========== Net interest income/net interest margin (fully taxable equivalent) 140,045 3.67% ==== Tax equivalent adjustment (3,952) --------- Net interest income $ 136,093 ========= (1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances. AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: Quarter Ended % Change from ----------------------------------- ---------------- March December March 31 March 31 December 31 31 31 2010 2009 2009 2009 2009 ----------- ----------- ----------- ------- ------- Loans, by type: Real estate - commercial mortgage $ 4,306,270 $ 4,048,847 $ 4,240,436 6.4% 1.6% Commercial - industrial, financial and agricultural 3,686,405 3,655,970 3,713,926 0.8% (0.7%) Real estate - home equity 1,640,912 1,698,599 1,645,524 (3.4%) (0.3%) Real estate - construction 962,175 1,229,841 1,018,057 (21.8%) (5.5%) Real estate - residential mortgage 940,652 957,556 925,660 (1.8%) 1.6% Consumer 362,212 360,919 370,258 0.4% (2.2%) Leasing and other 73,160 89,554 75,453 (18.3%) (3.0%) ----------- ----------- ----------- Total Loans, net of unearned income $11,971,786 $12,041,286 $11,989,314 (0.6%) (0.1%) =========== =========== =========== Deposits, by type: Noninterest- bearing demand $ 1,973,146 $ 1,657,658 $ 1,991,210 19.0% (0.9%) Interest-bearing demand 1,981,653 1,754,003 1,969,681 13.0% 0.6% Savings deposits 2,847,427 2,058,021 2,772,340 38.4% 2.7% Time deposits 5,202,975 5,432,676 5,415,169 (4.2%) (3.9%) ----------- ----------- ----------- Total Deposits $12,005,201 $10,902,358 $12,148,400 10.1% (1.2%) =========== =========== =========== Short-term borrowings, by type: Federal funds purchased $ 399,560 $ 792,001 $ 101,349 (49.6%) 294.2% Customer repurchase agreements 248,982 246,429 260,962 1.0% (4.6%) Customer short-term promissory notes 223,439 337,069 255,776 (33.7%) (12.6%) Federal Reserve Bank borrowings and other - 141,565 - N/A - ----------- ----------- ----------- Total Short-term borrowings $ 871,981 $ 1,517,064 $ 618,087 (42.5%) 41.1% =========== =========== =========== N/A - Not applicable FULTON FINANCIAL CORPORATION ASSET QUALITY INFORMATION (UNAUDITED) dollars in thousands Quarter Ended ------------------------------------- March 31 March 31 December 31 2010 2009 2009 ----------- ----------- ----------- ALLOWANCE FOR CREDIT LOSSES: Balance at beginning of period $ 257,553 $ 180,137 $ 241,721 Loans charged off: Real estate - construction (20,553) (12,242) (12,017) Commercial - industrial, agricultural and financial (2,981) (10,622) (10,078) Real estate - commercial mortgage (2,344) (3,960) (2,055) Real estate - residential mortgage and home equity (1,391) (1,937) (2,224) Consumer (2,078) (2,076) (3,103) Leasing and other (645) (946) (1,366) ----------- ----------- ----------- Total loans charged off (29,992) (31,783) (30,843) Recoveries of loans charged off: Real estate - construction 315 112 842 Commercial - industrial, agricultural and financial 436 904 25 Real estate - commercial mortgage 128 10 8 Real estate - residential mortgage and home equity 1 1 1 Consumer 552 429 384 Leasing and other 261 253 395 ----------- ----------- ----------- Recoveries of loans previously charged off 1,693 1,709 1,655 ----------- ----------- ----------- Net loans charged off (28,299) (30,074) (29,188) Provision for loan losses 40,000 50,000 45,020 ----------- ----------- ----------- Balance at end of period $ 269,254 $ 200,063 $ 257,553 =========== =========== =========== Net charge-offs to average loans (annualized) 0.95% 1.00% 0.97% =========== =========== =========== NON-PERFORMING ASSETS: Non-accrual loans $ 242,423 $ 198,765 $ 238,360 Loans 90 days past due and accruing 43,603 47,284 43,359 ----------- ----------- ----------- Total non-performing loans 286,026 246,049 281,719 Other real estate owned 26,228 23,189 23,309 ----------- ----------- ----------- Total non-performing assets $ 312,254 $ 269,238 $ 305,028 =========== =========== =========== NON-PERFORMING LOANS, BY TYPE: Real estate - construction $ 79,527 $ 93,425 $ 92,841 Commercial - industrial, agricultural and financial 78,365 50,493 69,604 Real estate - commercial mortgage 70,565 59,899 61,052 Real estate - residential mortgage and home equity 42,302 31,365 45,748 Consumer 15,086 10,316 12,319 Leasing 181 551 155 ----------- ----------- ----------- Total non-performing loans $ 286,026 $ 246,049 $ 281,719 =========== =========== =========== ASSET QUALITY RATIOS: Non-accrual loans to total loans 2.03% 1.66% 1.99% Non-performing assets to total loans and OREO 2.60% 2.24% 2.54% Non-performing assets to total assets 1.90% 1.63% 1.83% Allowance for credit losses to loans outstanding 2.25% 1.67% 2.15% Allowance for credit losses to non-performing loans 94.14% 81.31% 91.42% Non-performing assets to tangible common shareholders' equity and allowance for credit losses 23.71% 23.71% 24.00% 

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