Q1 2009 Earning Report of Fulton Financial Corporation

Fulton Financial Reports First Quarter Earnings Company Release - 04/21/2009 16:30 LANCASTER, PA -- (MARKET WIRE) -- 04/21/09 -- Fulton Financial Corporation (NASDAQ: FULT) reported net income available to common shareholders of $8.1 million for the first quarter ended March 31, 2009, an 80.6 percent decrease from the same period in 2008. Diluted net income per share for the quarter was 5 cents, a 79.2 percent decrease from the same period in 2008. Total assets at March 31, 2009 were approximately $16.5 billion. The decrease in net income available to common shareholders and diluted net income per share was mainly due to a $38.8 million increase in the provision for loan losses and $5.0 million of dividends and discount accretion on the preferred stock issued to the United States Treasury under the Capital Purchase Program. A comparison of the Corporation's earnings for the first quarter of 2009 to the fourth quarter of 2008 is impacted by a number of significant items. A detail of these items and their impact on the Corporation's earnings for each period is included in the supplemental financial information that appears below. quot;Despite experiencing good deposit growth and very strong mortgage refinancing activity, first quarter earnings were slowed by credit related charges,quot; said R. Scott Smith Jr., chairman and chief executive officer. quot;Our noninterest income was up significantly due to secondary market mortgage sale gains. In addition, our ongoing promotional efforts led to particularly strong certificate of deposit growth. However, the relatively higher funding costs associated with that growth, combined with lower earning asset yields, negatively impacted our net interest margin. We continue to address our credit challenges while closely monitoring expenses and positioning the company to produce stronger earnings as economic conditions improve. Our capital position remains strong.quot; Loans, net of unearned income, increased $620.4 million, or 5.4 percent, to $12.0 billion at March 31, 2009, compared to $11.4 billion at March 31, 2008. The increase was due to a $471.0 million, or 13.1 percent, increase in commercial mortgages, a $160.2 million, or 4.6 percent, increase in commercial loans, a $126.3 million, or 8.2 percent, increase in home equity loans and a $68.3 million, or 7.8 percent, increase in residential mortgages. These increases were offset by a $123.5 million, or 9.3 percent, decrease in construction loans and a $72.2 million, or 16.0 percent, decrease in consumer loans. Non-performing assets were $269.2 million, or 1.63 percent of total assets, at March 31, 2009, compared to $144.7 million, or 0.90 percent, at March 31, 2008 and $219.0 million, or 1.35 percent, at December 31, 2008. The prolonged economic downturn continued to negatively impact the Corporation's loan portfolio. The $124.6 million, or 86.1 percent, increase in non-performing assets since March 31, 2008 was primarily due to a $65.3 million, or 231.8 percent, increase in non-performing construction loans, a $29.7 million, or 98.6 percent, increase in non-performing commercial mortgage loans and a $15.0 million, or 42.4 percent, increase in non-performing commercial loans. Annualized net charge-offs for the quarter ended March 31, 2009 were 1.0 percent of average total loans, compared to 0.15 percent for the quarter ended March 31, 2008 and 0.89 percent for the quarter ended December 31, 2008. The increase in net charge-offs for the first quarter of 2009 in comparison to the same period in 2008 was primarily in construction loans and commercial mortgages. The provision for loan losses increased $38.8 million for the first quarter of 2009, as compared to the same period in 2008, and decreased $15.0 million from the fourth quarter of 2008. The increase in the provision for loan losses in comparison to the first quarter of 2008 was mainly due to the increase in the level of non-performing assets, which required additional increases to the allowance for credit losses. Total deposits increased $1.4 billion, or 13.6 percent, to $11.4 billion at March 31, 2009 compared to $10.0 billion at March 31, 2008. The increase was due to a $1.3 billion, or 28.6 percent, increase in time deposits and a $93.3 million, or 1.7 percent, increase in demand and savings deposits. In comparison to the fourth quarter of 2008, total deposits increased $862.1 million, or 8.2 percent, due to a $614.8 million, or 12.1 percent, increase in time deposits and a $247.3 million, or 4.5 percent, increase in demand and savings deposits. Net interest income for the first quarter decreased $1.8 million, or 1.4 percent, compared to the first quarter of 2008 and decreased $8.2 million, or 6.2 percent, from the fourth quarter of 2008. The Corporation's net interest margin was 3.45 percent for the first quarter of 2009, 3.58 percent for the first quarter of 2008 and 3.68 percent for fourth quarter of 2008. Other income, excluding investment securities gains, increased $7.6 million, or 20.8 percent, in the first quarter of 2009 compared to the same period in 2008. The increase was primarily due to a $6.3 million, or 271.7 percent, increase in gains on sale of mortgage loans due to increased volumes of loans sold, as refinance activity grew in the current low mortgage interest rate environment. Also contributing to the increase was $1.2 million of credit card fee income earned under a joint marketing agreement executed with the purchaser of the Corporation's credit card portfolio in April of 2008 and a $927,000, or 6.6 percent, increase in service charges on deposit accounts. These increases were offset by an $856,000, or 9.8 percent, decrease in investment management and trust services income. Compared to the fourth quarter of 2008, other income, excluding securities gains (losses), increased $5.2 million, or 13.5 percent, due to a $5.5 million, or 178.5 percent, increase in gains on sale of mortgage loans, offset by a $1.3 million, or 7.9 percent, decrease in service charges on deposit accounts. Investment securities gains increased $1.7 million, or 134.3 percent, in the first quarter of 2009 compared to the same period in 2008. Investment securities gains in the first quarter of 2009 included $6.1 million of net gains on the sale of debt securities, offset by $2.0 million of other-than-temporary impairment charges related to debt securities issued by financial institutions in the form of pooled trust preferred securities and $956,000 of other-than-temporary impairment charges related to bank stocks. Investment securities gains in the first quarter of 2008 included gains of $3.6 million from the redemption of Class B shares of Visa, Inc. (Visa) in connection with Visa's initial public offering

and $1.0 million from the sale of Mastercard, Inc. shares, offset by $3.6 million in other-than-temporary impairment charges related to bank stocks. Investment securities losses for the fourth quarter of 2008 included $12.9 million of other-than-temporary impairment charges related to bank stocks and $12.8 million of other-than-temporary impairment charges related to debt securities issued by financial institutions in the form of pooled trust preferred securities. Other expenses increased $9.7 million, or 10.0 percent, compared to the same period in 2008. The increase was primarily due to $6.2 million of charges to increase the Corporation's guarantee liability associated with the decision to purchase illiquid auction rate securities previously sold to customers of the Corporation's investment management and trust subsidiary, Fulton Financial Advisors, N.A. Also contributing to the increase in other expenses was a $3.4 million, or 397.4 percent, increase in Federal Deposit Insurance Corporation insurance premiums due to an increase in assessment rates and a $1.4 million increase related to the reversal of legal reserves in the first quarter of 2008 associated with the initial public offering of Visa. Compared to the fourth quarter of 2008, other expenses, excluding goodwill impairment charges, increased $5.5 million, or 5.5 percent. Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company which has nearly 3,900 employees and operates more than 265 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust Company, Hagerstown, MD; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD; Skylands Community Bank, Hackettstown, NJand The Columbia Bank, Columbia, MD. The Corporation's financial services affiliates include: Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc., Lancaster, PA; and Dearden, Maguire, Weaver and Barrett, LLC, West Conshohocken, PA. Residential mortgage lending is offered by all banks through Fulton Mortgage Company. Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com. Safe Harbor Statement: This news release may contain forward-looking statements with respect to our financial condition, results of operations and business. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995. When words such as quot;believes,quot; quot;expects,quot; quot;anticipates,quot; quot;intends,quot; quot;forecasts,quot; quot;projects,quot; quot;willquot; and similar words and expressions are used in its press releases, the Corporation is making forward-looking statements. Such forward-looking statements reflect the Corporation's current views and expectations based largely on information currently available to its management, and on its current expectations, assumptions, plan, estimates, judgments, and projections about its business and its industry, and they involve inherent risks, contingencies, uncertainties and other factors. Although the Corporation believes that these forward-looking statements are based on reasonable estimates and assumptions, the Corporation is unable to provide any assurance that its expectations will, in fact, occur or that its estimates or assumptions will be correct and actual results could differ materially from those expressed or implied by such forward-looking statements and such statements are not guarantees of future performance. The Corporation undertakes no obligation to update or revise any forward-looking statements. Accordingly, investors and others are cautioned not to place undue reliance on such forward-looking statements. Many factors could affect future financial results including, without limitation, acquisition and growth strategies; market risk; changes or adverse developments in economic, political or regulatory conditions; a continuation or worsening of the current disruption in credit and other markets, including the lack of or reduced access to, and the abnormal functioning of, markets for mortgage and other asset-backed securities and for commercial paper and other short-term borrowings; the effect of competition and interest rates on net interest margin and net interest income; investment strategy and income growth; investment securities gains; declines in the value of securities which may result in charges to earnings; changes in rates of deposit and loan growth; asset quality and the impact on assets from adverse changes in the economy and in credit and other markets and resulting effects on credit risk and asset values; balances of risk-sensitive assets to risk-sensitive liabilities; salaries and employee benefits and other expenses; 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 quot;Risk Factorsquot; and quot;Management's Discussion and Analysis of Financial Condition and Results of Operationsquot; set forth in the Corporation's filings with the Securities and Exchange Commission. 2009 FULTON FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (UNAUDITED) dollars in thousands, except per-share data March 31 -------------------------- BALANCE SHEET DATA 2009 2008 % Change

------------ ------------ -------- Total assets $ 16,493,522 $ 16,052,867 2.7% Loans, net of unearned income 12,009,060 11,388,653 5.4% Investment securities 3,123,687 3,104,827 0.6% Deposits 11,413,982 10,048,928 13.6% Shareholders' equity 1,861,321 1,611,720 15.5% Quarter Ended March 31 -------------------------- INCOME SUMMARY 2009 2008 % Change ------------ ------------ -------- Interest income $ 195,567 $ 229,220 (14.7%) Interest expense (71,451) (103,321) (30.8%) ------------ ------------ Net interest income 124,116 125,899 (1.4%) Provision for loan losses (50,000) (11,220) 345.6% Investment securities gains 2,919 1,246 134.3% Other income 43,995 36,434 20.8% Other expenses (106,372) (96,660) 10.0% ------------ ------------ Income before income taxes 14,658 55,699 (73.7%) Income tax expense (1,573) (14,203) (88.9%) ------------ ------------ Net income 13,085 41,496 (68.5%) Preferred stock dividends and discount accretion (5,031) - N/A ------------ ------------ Net income available to common shareholders $ 8,054 $ 41,496 (80.6%) ============ ============ PER COMMON SHARE: Net income: Basic $ 0.05 $ 0.24 (79.2%) Diluted 0.05 0.24 (79.2%) Cash dividends 0.03 0.15 (80.0%) Shareholders' equity 8.50 9.28 (8.4%) Shareholders' equity (tangible) 5.33 5.52 (3.4%) SELECTED FINANCIAL RATIOS: Return on average assets 0.33% 1.05% Return on average common shareholders' equity 2.84% 10.53% Return on average common shareholders' equity (tangible) 3.88% 18.45% Net interest margin 3.45% 3.58% Efficiency ratio 60.95% 57.10% Non-performing assets to total assets 1.63% 0.90% N/A - Not applicable

FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED) dollars in thousands March 31 March 31 December 31 2009 2008 2008 ------------ ------------ ------------ ASSETS Cash and due from banks $ 265,431 $ 406,601 $ 331,164 Loans held for sale 102,033 95,144 95,840 Other interest-earning assets 14,329 13,240 21,710 Investment securities 3,123,687 3,104,827 2,724,841 Loans, net of unearned income 12,009,060 11,388,653 12,042,620 Allowance for loan losses (192,410) (115,257) (173,946) ------------ ------------ ------------ Net Loans 11,816,650 11,273,396 11,868,674 Premises and equipment 205,495 197,424 202,657 Accrued interest receivable 59,369 65,865 58,566 Goodwill and intangible assets 556,496 653,038 557,833 Other assets 350,032 243,332 323,821 ------------ ------------ ------------ Total Assets $ 16,493,522 $ 16,052,867 $ 16,185,106 ============ ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 11,413,982 $ 10,048,928 $ 10,551,916 Short-term borrowings 1,195,474 2,229,127 1,762,770 Federal Home Loan Bank advances and long-term debt 1,786,598 1,890,969 1,787,797 Other liabilities 236,147 272,123 222,976 ------------ ------------ ------------ Total Liabilities 14,632,201 14,441,147 14,325,459 Preferred stock 369,270 - 368,944 Common shareholders' equity 1,492,051 1,611,720 1,490,703 ------------ ------------ ------------ Total Shareholders' Equity 1,861,321 1,611,720 1,859,647 ------------ ------------ ------------ Total Liabilities and Shareholders' Equity $ 16,493,522 $ 16,052,867 $ 16,185,106 ============ ============ ============ LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage $ 4,068,342 $ 3,597,307 $ 4,016,700 Commercial - industrial, financial and agricultural 3,653,503 3,493,352 3,635,544 Real estate - home equity 1,673,613 1,547,323 1,695,398

Real estate - construction 1,205,256 1,328,802 1,269,330 Real estate - residential mortgage 947,837 879,491 972,797 Consumer 378,851 451,037 365,692 Leasing and other 81,658 91,341 87,159 ------------ ------------ ------------ Total Loans, net of unearned income $ 12,009,060 $ 11,388,653 $ 12,042,620 ============ ============ ============ Deposits, by type: Noninterest-bearing demand $ 1,776,169 $ 1,737,442 $ 1,653,440 Interest-bearing demand 1,799,586 1,712,601 1,789,833 Savings deposits 2,125,297 2,157,749 2,010,526 Time deposits 5,712,930 4,441,136 5,098,117 ------------ ------------ ------------ Total Deposits $ 11,413,982 $ 10,048,928 $ 10,551,916 ============ ============ ============ Short-term borrowings, by type: Federal funds purchased $ 397,158 $ 1,103,804 $ 1,147,673 Short-term promissory notes 343,845 496,706 356,788 Customer repurchase agreements 249,256 223,649 255,796 Federal Reserve Bank borrowings 200,000 - - Overnight borrowings and other 5,215 404,968 2,513 ------------ ------------ ------------ Total Short-term borrowings $ 1,195,474 $ 2,229,127 $ 1,762,770 ============ ============ ============ % Change from -------------------------- March 31 December 31 2008 2008 ------------ ------------ ASSETS Cash and due from banks (34.7%) (19.8%) Loans held for sale 7.2% 6.5% Other interest-earning assets 8.2% (34.0%) Investment securities 0.6% 14.6% Loans, net of unearned income 5.4% (0.3%) Allowance for loan losses 66.9% 10.6% Net Loans 4.8% (0.4%) Premises and equipment 4.1% 1.4% Accrued interest receivable (9.9%) 1.4% Goodwill and intangible assets (14.8%) (0.2%) Other assets 43.8% 8.1% Total Assets 2.7% 1.9% LIABILITIES AND SHAREHOLDERS' EQUITY Deposits 13.6% 8.2% Short-term borrowings (46.4%) (32.2%) Federal Home Loan Bank advances and long-term debt (5.5%) (0.1%) Other liabilities (13.2%) 5.9% Total Liabilities 1.3% 2.1% Preferred stock N/A 0.1%

Common shareholders' equity (7.4%) 0.1% Total Shareholders' Equity 15.5% 0.1% Total Liabilities and Shareholders' Equity 2.7% 1.9% LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL: Loans, by type: Real estate - commercial mortgage 13.1% 1.3% Commercial - industrial, financial and agricultural 4.6% 0.5% Real estate - home equity 8.2% (1.3%) Real estate - construction (9.3%) (5.0%) Real estate - residential mortgage 7.8% (2.6%) Consumer (16.0%) 3.6% Leasing and other (10.6%) (6.3%) Total Loans, net of unearned income 5.4% (0.3%) Deposits, by type: Noninterest-bearing demand 2.2% 7.4% Interest-bearing demand 5.1% 0.5% Savings deposits (1.5%) 5.7% Time deposits 28.6% 12.1% Total Deposits 13.6% 8.2% Short-term borrowings, by type: Federal funds purchased (64.0%) (65.4%) Short-term promissory notes (30.8%) (3.6%) Customer repurchase agreements 11.4% (2.6%) Federal Reserve Bank borrowings N/A N/A Overnight borrowings and other (98.7%) 107.5% Total Short-term borrowings (46.4%) (32.2%) N/A - Not Applicable FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATION (UNAUDITED) dollars in thousands, except per-share data Quarter Ended % Change from --------------------------------- ----------------- March December March 31 March 31 December 31 31 31 2009 2008 2008 2008 2008 --------- --------- ----------- ------- -------- Interest Income: Interest income $ 195,567 $ 229,220 $ 209,073 (14.7%) (6.5%) Interest expense 71,451 103,321 76,732 (30.8%) (6.9%) --------- --------- ----------- Net Interest Income 124,116 125,899 132,341 (1.4%) (6.2%)

Provision for loan losses 50,000 11,220 65,000 345.6% (23.1%) --------- --------- ----------- Net Interest Income after Provision 74,116 114,679 67,341 (35.4%) 10.1% Other Income: Service charges on deposit accounts 14,894 13,967 16,177 6.6% (7.9%) Gains on sale of mortgage loans 8,591 2,311 3,085 271.7% 178.5% Other service charges and fees 8,354 8,591 8,927 (2.8%) (6.4%) Investment management and trust services 7,903 8,759 7,541 (9.8%) 4.8% Investment securities gains (losses) 2,919 1,246 (28,339) 134.3% 110.3% Other 4,253 2,806 3,020 51.6% 40.8% --------- --------- ----------- Total Other Income 46,914 37,680 10,411 24.5% 350.6% Other Expenses: Salaries and employee benefits 55,304 55,195 48,771 0.2% 13.4% Net occupancy expense 11,023 10,524 11,240 4.7% (1.9%) Operating risk loss 6,201 1,243 5,200 398.9% 19.3% FDIC insurance premiums 4,288 862 1,878 397.4% 128.3% Equipment expense 3,079 3,448 3,425 (10.7%) (10.1%) Data processing 3,072 3,246 3,209 (5.4%) (4.3%) Marketing 2,571 2,905 3,746 (11.5%) (31.4%) Intangible amortization 1,463 1,857 1,776 (21.2%) (17.6%) Goodwill impairment - - 90,000 N/A N/A Other 19,371 17,380 21,629 11.5% (10.4%) --------- --------- ----------- Total Other Expenses 106,372 96,660 190,874 10.0% (44.3%) --------- --------- ----------- Income (Loss) Before Income Taxes 14,658 55,699 (113,122) (73.7%) (113.0%) Income tax expense (benefit) 1,573 14,203 (11,255) (88.9%) (114.0%) --------- --------- ----------- Net Income (Loss) 13,085 41,496 (101,867) (68.5%) (112.8%) Preferred stock dividends and discount accretion (5,031) - (463) N/A (986.6%) --------- --------- ----------- Net Income (Loss) Available to Common Shareholders $ 8,054 $ 41,496 $ (102,330) (80.6%) (107.9%) ========= ========= ===========

PER COMMON SHARE: Net income (loss): Basic $ 0.05 $ 0.24 $ (0.58) (79.2%) (108.6%) Diluted 0.05 0.24 (0.58) (79.2%) (108.6%) Cash dividends $ 0.03 $ 0.15 $ 0.15 (80.0%) (80.0%) Shareholders' equity 8.50 9.28 8.52 (8.4%) (0.2%) Shareholders' equity (tangible) 5.33 5.52 5.33 (3.4%) - Weighted average shares (basic) 175,315 173,624 174,889 1.0% 0.2% Weighted average shares (diluted) 175,548 174,209 174,889 0.8% 0.4% Shares outstanding, end of period 175,507 173,722 175,044 1.0% 0.3% SELECTED FINANCIAL RATIOS: Return on average assets 0.33% 1.05% (2.51%) Return on average common shareholders' equity 2.84% 10.53% (24.89%) Return on average common shareholders' equity (tangible) 3.88% 18.45% (4.35%) Net interest margin 3.45% 3.58% 3.68% Efficiency ratio 60.95% 57.10% 56.57% N/A - Not applicable FULTON FINANCIAL CORPORATION CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED) dollars in thousands Quarter Ended ---------------------------------------- March 31, 2009 ---------------------------------------- Average Yield/ Balance Interest (1) Rate ------------ ------------ ------------ ASSETS Interest-earning assets: Loans, net of unearned income $ 12,041,286 $ 163,753 5.51% Taxable investment securities 2,212,639 26,849 4.86% Tax-exempt investment

securities 503,265 6,887 5.47% Equity securities 137,308 774 2.28% ------------ ------------ ------------ Total Investment Securities 2,853,212 34,510 4.84% Loans held for sale 104,467 1,261 4.83% Other interest-earning assets 16,934 50 1.19% ------------ ------------ ------------ Total Interest-earning Assets 15,015,899 199,574 5.38% Noninterest-earning assets: Cash and due from banks 317,928 Premises and equipment 202,875 Other assets 924,755 Less: allowance for loan losses (187,183) ------------ Total Assets $ 16,274,274 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $1,754,003 $ 1,776 0.41% Savings deposits 2,058,021 4,353 0.86% Time deposits 5,432,676 43,767 3.27% ------------ ------------ ------------ Total Interest-bearing Deposits 9,244,700 49,896 2.19% Short-term borrowings 1,517,064 1,436 0.38% Federal Home Loan Bank advances and long-term debt 1,787,493 20,119 4.55% ------------ ------------ ------------ Total Interest-bearing Liabilities 12,549,257 71,451 2.31% Noninterest-bearing liabilities: Demand deposits 1,657,658 Other 201,449 ------------ Total Liabilities 14,408,364 Shareholders' equity 1,865,910 ------------ Total Liabilities and Shareholders' Equity $ 16,274,274 ============ Net interest income/net interest margin (fully taxable equivalent) 128,123 3.45% ============ Tax equivalent adjustment (4,007) ------------ Net interest income $ 124,116 ============ Quarter Ended ---------------------------------------- March 31, 2008 ---------------------------------------- Average Yield/

Balance Interest (1) Rate ------------ ------------ ------------ ASSETS Interest-earning assets: Loans, net of unearned income $ 11,295,531 $ 192,422 6.85% Taxable investment securities 2,407,189 29,561 4.91% Tax-exempt investment securities 515,856 6,761 5.24% Equity securities 213,004 2,380 4.48% ------------ ------------ ------------ Total Investment Securities 3,136,049 38,702 4.94% Loans held for sale 98,676 1,577 6.39% Other interest-earning assets 26,784 218 3.25% ------------ ------------ ------------ Total Interest-earning Assets 14,557,040 232,919 6.43% Noninterest-earning assets: Cash and due from banks 310,719 Premises and equipment 196,037 Other assets 927,260 Less: allowance for loan losses (109,914) ------------ Total Assets $ 15,881,142 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $1,685,620 $ 4,405 1.05% Savings deposits 2,137,704 9,163 1.72% Time deposits 4,520,004 49,918 4.44% ------------ ------------ ------------ Total Interest-bearing Deposits 8,343,328 63,486 3.06% Short-term borrowings 2,347,463 18,828 3.19% Federal Home Loan Bank advances and long-term debt 1,798,508 21,007 4.69% ------------ ------------ ------------ Total Interest-bearing Liabilities 12,489,299 103,321 3.32% Noninterest-bearing liabilities: Demand deposits 1,616,283 Other 190,496 ------------ Total Liabilities 14,296,078 Shareholders' equity 1,585,064 ------------ Total Liabilities and Shareholders' Equity $ 15,881,142 ============ Net interest income/net interest margin (fully taxable equivalent) 129,598 3.58% ============ Tax equivalent adjustment (3,699) ------------ Net interest income $ 125,899 ============

Quarter Ended ---------------------------------------- December 31, 2008 ---------------------------------------- Average Yield/ Balance Interest (1) Rate ------------ ------------ ------------ ASSETS Interest-earning assets: Loans, net of unearned income $ 11,960,067 $ 178,096 5.93% Taxable investment securities 2,086,808 26,106 5.00% Tax-exempt investment securities 516,045 7,073 5.48% Equity securities 154,660 797 2.05% ------------ ------------ ------------ Total Investment Securities 2,757,513 33,976 4.93% Loans held for sale 64,096 975 6.08% Other interest-earning assets 23,889 124 2.08% ------------ ------------ ------------ Total Interest-earning Assets 14,805,565 213,171 5.74% Noninterest-earning assets: Cash and due from banks 317,571 Premises and equipment 200,918 Other assets 960,606 Less: allowance for loan losses (150,266) ------------ Total Assets $ 16,134,394 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Demand deposits $1,727,874 $ 2,630 0.61% Savings deposits 2,070,931 6,124 1.18% Time deposits 4,818,068 41,553 3.43% ------------ ------------ ------------ Total Interest-bearing Deposits 8,616,873 50,307 2.32% Short-term borrowings 2,251,571 5,998 1.05% Federal Home Loan Bank advances and long-term debt 1,798,688 20,427 4.53% ------------ ------------ ------------ Total Interest-bearing Liabilities 12,667,132 76,732 2.41% Noninterest-bearing liabilities: Demand deposits 1,643,118 Other 196,004 ------------ Total Liabilities 14,506,254 Shareholders' equity 1,628,140 ------------ Total Liabilities and Shareholders' Equity $ 16,134,394 ============

Net interest income/net interest margin (fully taxable equivalent) 136,439 3.68% ============ Tax equivalent adjustment (4,098) ------------ Net interest income $ 132,341 ============ (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 2009 2008 2008 2008 2008 ------------ ------------ ------------ ------- ------- Loans, by type: Real estate - commercial mortgage $ 4,048,269 $ 3,529,168 $ 3,965,145 14.7% 2.1% Commercial - industrial, financial and agricultural 3,682,678 3,472,443 3,603,790 6.1% 2.2% Real estate - home equity 1,698,599 1,526,473 1,673,570 11.3% 1.5% Real estate - construction 1,203,328 1,349,924 1,269,104 (10.9%) (5.2%) Real estate - residential mortgage 957,939 858,187 978,223 11.6% (2.1%) Consumer 360,919 473,247 378,686 (23.7%) (4.7%) Leasing and other 89,554 86,089 91,549 4.0% (2.2%) ------------ ------------ ------------ Total Loans, net of unearned income $ 12,041,286 $ 11,295,531 $ 11,960,067 6.6% 0.7% ============ ============ ============ Deposits, by type: Noninterest-bearing demand $ 1,657,658 $ 1,616,283 $ 1,643,118 2.6% 0.9% Interest-bearing demand 1,754,003 1,685,620 1,727,874 4.1% 1.5% Savings deposits 2,058,021 2,137,704 2,070,931 (3.7%) (0.6%) Time deposits 5,432,676 4,520,004 4,818,068 20.2% 12.8% ------------ ------------ ------------

Total Deposits $ 10,902,358 $ 9,959,611 $ 10,259,991 9.5% 6.3% ============ ============ ============ Short-term borrowings, by type: Federal funds purchased $ 792,001 $ 1,184,370 $ 1,426,618 (33.1%) (44.5%) Short-term promissory notes 337,069 471,470 391,781 (28.5%) (14.0%) Customer repurchase agreements 246,429 226,921 244,633 8.6% 0.7% Federal Reserve Bank borrowings 138,222 - - N/A N/A Overnight borrowings and other 3,343 464,702 188,539 (99.3%) (98.2%) ------------ ------------ ------------ Total Short-term borrowings $ 1,517,064 $ 2,347,463 $ 2,251,571 (35.4%) (32.6%) ============ ============ ============ N/A - Not Applicable FULTON FINANCIAL CORPORATION ASSET QUALITY INFORMATION (UNAUDITED) dollars in thousands Quarter Ended ------------------------------- December March 31 March 31 31 2009 2008 2008 --------- --------- --------- ALLOWANCE FOR CREDIT LOSSES: Balance at beginning of period $ 180,137 $ 112,209 $ 141,829 Loans charged off: Real estate - construction (12,242) - (11,877) Commercial - industrial, agricultural and financial (10,622) (2,764) (6,392) Real estate - commercial mortgage (3,960) (318) (4,688) Real estate - residential mortgage and home equity (1,937) (531) (2,899) Consumer (2,076) (1,381) (1,450) Leasing and other (946) (632) (1,033) --------- --------- --------- Total loans charged off (31,783) (5,626) (28,339) Recoveries of loans charged off: Real estate - construction 112 - - Commercial - industrial, agricultural and financial 904 276 770

Real estate - commercial mortgage 10 77 5 Real estate - residential mortgage and home equity 1 3 56 Consumer 429 418 465 Leasing and other 253 492 351 --------- --------- --------- Recoveries of loans previously charged off 1,709 1,266 1,647 --------- --------- --------- Net loans charged off (30,074) (4,360) (26,692) Provision for loan losses 50,000 11,220 65,000 --------- --------- --------- Balance at end of period $ 200,063 $ 119,069 $ 180,137 ========= ========= ========= Net charge-offs to average loans (annualized) 1.00% 0.15% 0.89% ========= ========= ========= COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES: Allowance for loan losses $ 192,410 $ 115,257 $ 173,946 Reserve for unfunded lending commitments 7,653 3,812 6,191 --------- --------- --------- Allowance for credit losses $ 200,063 $ 119,069 $ 180,137 ========= ========= ========= NON-PERFORMING ASSETS: Non-accrual loans $ 198,765 $ 96,588 $ 161,962 Loans 90 days past due and accruing 47,284 29,733 35,177 --------- --------- --------- Total non-performing loans 246,049 126,321 197,139 Other real estate owned 23,189 18,333 21,855 --------- --------- --------- Total non-performing assets $ 269,238 $ 144,654 $ 218,994 ========= ========= ========= NON-PERFORMING LOANS, BY TYPE: Real estate - construction $ 93,425 $ 28,160 $ 80,083 Commercial - industrial, agricultural and financial 50,493 35,462 40,294 Real estate - commercial mortgage 59,899 30,162 41,745 Real estate - residential mortgage and home equity 31,365 24,586 26,304 Consumer 10,316 5,858 8,374 Leasing 551 2,093 339 --------- --------- --------- Total non-performing loans $ 246,049 $ 126,321 $ 197,139 ========= ========= ========= ASSET QUALITY RATIOS: Non-accrual loans to total loans 1.66% 0.85% 1.34% Non-performing assets to total loans and OREO 2.24% 1.27% 1.82% Non-performing assets to total assets 1.63% 0.90% 1.35% Allowance for credit losses to loans outstanding 1.67% 1.05% 1.50%

Allowance for loan losses to loans outstanding 1.60% 1.01% 1.44% Allowance for credit losses to non-performing loans 81% 94% 91% Non-performing assets to tangible common shareholders' equity and allowance for credit losses 23.71% 13.42% 19.68% FULTON FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURE (UNAUDITED) dollars in thousands, except per-share data Explanatory note: This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Standards (quot;GAAPquot;) that Management uses in its analysis of the Corporation's performance. The Corporation has presented these non-GAAP measures because it believes that they provide more useful and comparative information to assess trends in the Corporation's quarterly results of operations. These non-GAAP measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety. Quarter Ended ---------------------------------- March 31, 2009 ---------------------------------- Pre-tax After-tax Diluted (Expense)/ (Expense)/ EPS Income Income Impact ---------- ---------- ---------- Goodwill impairment charge $ - $ - $ - Other-than-temporary impairment of securities (3,040) (1,976) (0.01) Guarantee related to purchase of customer auction rate securities (6,158) (4,003) (0.02) Investment securities gains and (losses) on sale 5,959 3,873 0.02 ---------- ---------- ---------- Totals (3,239) (2,106) (0.01) Net income (loss) available to common shareholders 8,054 0.05 ---------- ---------- Adjusted net income available to common shareholders $ 10,160 $ 0.06 ========== ========== Quarter Ended

---------------------------------- March 31, 2008 ---------------------------------- Pre-tax After-tax Diluted (Expense)/ (Expense)/ EPS Income Income Impact ---------- ---------- ---------- Goodwill impairment charge $ - $ - $ - Other-than-temporary impairment of securities (3,575) (2,324) (0.01) Guarantee related to purchase of customer auction rate securities - - - Investment securities gains and (losses) on sale 4,821 3,134 0.02 ---------- ---------- ---------- Totals 1,246 810 0.01 Net income (loss) available to common shareholders 41,496 0.24 ---------- ---------- Adjusted net income available to common shareholders $ 40,686 $ 0.23 ========== ========== Quarter Ended ---------------------------------- December 31, 2008 ---------------------------------- Pre-tax After-tax Diluted (Expense)/ (Expense)/ EPS Income Income Impact ---------- ---------- ---------- Goodwill impairment charge $ (90,000) $ (90,000) (0.51) Other-than-temporary impairment of securities (26,065) (16,942) (0.10) Guarantee related to purchase of customer auction rate securities (3,950) (2,568) (0.01) Investment securities gains and (losses) on sale (2,274) (1,478) (0.01) ---------- ---------- ---------- Totals (122,289) (110,988) (0.63) Net income (loss) available to common shareholders (102,330) (0.58) ---------- ---------- Adjusted net income available to common shareholders $ 8,658 $ 0.05 ========== ========== Media Contact: Laura J. Wakeley 717-291-2616

Q1 2009 Earning Report of Fulton Financial Corporation

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Q1 2009 Earning Report of Fulton Financial Corporation Document Transcript