Fulton Financial Reports 2007 Earnings

LANCASTER, PA, Jan 22 (MARKET WIRE) --
Fulton Financial Corporation (NASDAQ: FULT) earned $38.2 million for the
fourth quarter of 2007, an 18.1 percent decrease from the same period in 2006.
Diluted net income per share for the fourth quarter of 2007 decreased to 22
cents per share, an 18.5 percent decrease from the 27 cents reported during the
same period in 2006. Diluted net income per share for the quarter increased 15.8
percent from the 19 cents reported in the third quarter of 2007.

Net income was $152.7 million for the year ended December 31, 2007, a 17.7
percent decrease from 2006. Diluted net income per share for the year
decreased to 88 cents, a 17.0 percent decrease from the $1.06 reported in
2006. Total assets at December 31, 2007 grew 6.7 percent to
approximately $15.9 billion.

As previously disclosed, during the first nine months of 2007, the
Corporation recorded $24.9 million of charges related to actual and potential
repurchases of residential mortgage and home equity loans originated and sold
to secondary market investors by Resource Bank (Resource Mortgage). These
repurchases resulted from early payment defaults by borrowers or
misrepresentations of borrower information. Special counsel was engaged to
review
whether there were additional potentially material occurrences of
misrepresentations
of borrower information that should be considered in determining the proper
levels
ofcontingent losses and reserves. Based on the results of this special review,
which was completed during the fourth quarter of 2007, no additional charges
were recorded. Management believes the reserves recorded for actual and
potential
repurchases as of December 31, 2007 are adequate.

"2007 was a challenging year for the corporation and for our industry. While
our
earnings performance was impacted by the issues associated with Resource
Mortgage, we have worked diligently to position the company for improved
performance," said R. Scott Smith Jr., chairman, chief executive officer and
president. "Commercial loan growth was strong. While loan quality remains
good, the provision for loan losses and the level of non-performing loans
are coming off their historical lows as we had anticipated for some time.
These trends required a more normal provision for loan losses. Excluding
nonrecurring items, other expenses were well-controlled with some key areas
showing reductions. Our investment portfolio holds no collateralized debt
obligations and only agency-guaranteed mortgage-backed securities. Because
our liquidity and capital levels remain strong, we have no short term plans
to raise additional capital."

For the year, loans, net of unearned income, increased $830.1 million, or
8.0 percent, to $11.2 billion at December 31, 2007, compared to $10.4 billion
at December 31, 2006. The increase was due primarily to commercial loans, which
grew $461.9 million, or 15.6 percent, and commercial mortgages, which increased
$288.5 million, or 9.0 percent. In comparison to September 30, 2007, loans, net
of
unearned income, increased $216.1 million, or 2.0 percent, due mainly to an
increase in commercial loans of $98.1 million, or 2.9 percent, and growth in
commercial mortgages of $94.6 million, or 2.8 percent.

Non-performing assets were $120.9 million, or 0.76 percent, of total
assetsat December 31, 2007, compared to $57.8 million, or 0.39 percent, at
December 31, 2006 and $107.0 million, or 0.69 percent, at September 30, 2007.
The $63.0 million, or 108.9 percent, increase in non-performing assets since
December
31, 2006 was due in part to the aforementioned repurchase of residential
mortgage loans
from secondary market purchasers during 2007.

Annualized net charge-offs for the quarter ended December 31, 2007 were 0.15
percent of average total loans, compared to 0.06 percent for the quarter
ended December 31, 2006 and 0.08 percent for the quarter ended September 30,
2007. For the year ended December 31, 2007, net charge-offs were 0.09 percent
of
average total loans, compared to 0.02 percent for the same period in 2006.
The provision for loan losses increased $5.7 million, or 536.7 percent for the
fourth quarter of 2007, as compared to the same period in 2006. In comparison
to the third quarter of 2007, the provision for loan losses increased $2.2
million,
or 47.6 percent.

Total deposits decreased $127.0 million, or 1.2 percent, to $10.1 billion at
December 31, 2007, compared to $10.2 billion at December 31, 2006. Demand and
savings deposits decreased $233.5 million, or 4.0 percent, offset by a $106.5
million, or 2.4 percent, increase in time deposits. In comparison to
September 30, 2007, total deposits decreased $185.7 million, or 1.8 percent, due
to decreases in both time deposits and demand and savings accounts.

Net interest income for the fourth quarter increased $1.9 million, or 1.6
percent, compared to the fourth quarter of 2006 and increased $1.2
million,or 1.0 percent, from the third quarter of 2007. The Corporation's net
interest margin was 3.56 percent for the fourth quarter of 2007, 3.68 percent
for the fourth quarter of 2006 and 3.62 percent for the third quarter of 2007.

Other income, excluding investment securities losses and gains, decreased
$2.7
million, or 7.0 percent, in the fourth quarter of 2007 compared to the same
period in 2006. The decrease was due to a decline in gains on the sales of
mortgage loans and a decrease in other income due to gains on sales of
branch and office facilities during the fourth quarter of 2006. These decreases
were partially offset by increases in service charges on deposit accounts
and other service charges and fees. Compared to the third quarter of 2007,
other income decreased $1.1 million, or 3.1 percent, due to $2.1 million of
gains from the sale of certain mortgage-related assets and the settlement of
related lawsuits during the third quarter of 2007, offset by an increase in
service charges on deposit accounts, mainly overdraft fees, which increased $1.8
million, or 34.3 percent.

Other expenses increased $3.7 million, or 3.9 percent, compared to the
fourth
quarter of 2006, to $98.4 million. The increase was due primarily to $1.1
million
of charges related to the write-off of tradename intangible assets as a result
of
actual and pending mergers of certain affiliate banks and $900,000 of
professional fees incurred for the Resource Mortgage review. The increase was
also due to $1.5 million of charges for the Corporation's affiliate bank's
share, as members of Visa USA, of settled and pending litigation incurred by
Visa, Inc. (Visa) in various lawsuits. These increases were offset by a $2.4
million, or 4.3 percent, decrease in salaries and employee benefits, due in
part to corporate-wide workforce management and centralization initiatives which
began during 2007 and decreases in incentive compensation and bonuses.

Compared to the third quarter of 2007, other expenses decreased $9.5
million,
or 8.8 percent, due primarily to $16.0 million in charges recorded during the
third quarter of 2007 related to the aforementioned mortgage banking operations
at
Resource Mortgage, offset by the professional fees, tradename write-offs and
Visa charges, as detailed above.

Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial
holding
company which has 3,900 employees and which operates more than 260 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, Hagerstown, MD; Delaware National Bank,
Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD;
Skylands Community Bank, Hackettstown, NJ; Resource Bank, Virginia Beach, VA
and 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 or Resource Mortgage.

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" or similar expressions are used in
this
release, the Corporation is making forward-looking statements.

Such forward-looking statements reflect the Corporation's current views
andexpectations 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
arecautioned 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, the effect of competition
and interest rates on net interest margin and net interest income, investment
strategy and income growth, investment securities gains, other-than-temporary
impairment of investment securities, deposit and loan growth, asset quality,
balances of risk-sensitive assets to risk-sensitive liabilities, 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
affectingthe Corporation, please see the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
ofOperations ---- Forward-Looking Statements" set forth in the Corporation's
filings with
the Securities and Exchange Commission.

FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
dollars in thousands, except per-share data

December 31
------------------------
BALANCE SHEET %
DATA 2007 2006 Change
----------- ----------- -----

Total assets $15,912,232 $14,918,964 6.7%
Loans, net of
unearned
income 11,204,424 10,374,323 8.0%
Investment
securities 3,153,552 2,878,238 9.6%
Deposits 10,105,445 10,232,469 (1.2%)
Shareholders'
equity 1,574,062 1,516,310 3.8%

Quarter Ended Year Ended
December 31 December 31
-------------------- --------------------
% %
INCOME SUMMARY 2007 2006 Change 2007 2006 Change
--------- --------- ------ --------- --------- ------

Interest income $ 240,069 $ 229,548 4.6% $ 939,577 $ 864,507 8.7%
Interest
expense (116,418) (107,803) 8.0% (450,833) (378,944) 19.0%
--------- --------- --------- ---------
Net interest
income 123,651 121,745 1.6% 488,744 485,563 0.7%
Provision for
loan losses (6,800) (1,068) 536.7% (15,063) (3,498) 330.6%
Investment
securities
(losses) gains (537) 1,915 (128.0%) 1,740 7,439 (76.6%)
Other income 35,748 38,439 (7.0%) 146,284 142,436 2.7%
Other expenses (98,447) (94,757) 3.9% (405,455) (365,991) 10.8%
--------- --------- --------- ---------
Income before
income taxes 53,615 66,274 (19.1%) 216,250 265,949 (18.7%)
Income taxes (15,436) (19,669) (21.5%) (63,532) (80,422) (21.0%)
--------- --------- --------- ---------
Net income $ 38,179 $ 46,605 (18.1%)$ 152,718 $ 185,527 (17.7%)
========= ========= ========= =========

PER-SHARE DATA:

Net income:
Basic $ 0.22 $ 0.27 (18.5%)$ 0.88 $ 1.07 (17.8%)
Diluted 0.22 0.27 (18.5%) 0.88 1.06 (17.0%)
Cash
dividends 0.1500 0.1475 1.7% 0.598 0.581 2.9%

Shareholders'
equity 9.07 8.73 3.9%
Shareholders'
equity
(tangible) 5.30 4.91 7.9%

SELECTED
FINANCIAL
RATIOS:

Return on
average assets 0.97% 1.25% 1.01% 1.30%
Return on
average
shareholders'
equity 9.72% 12.29% 9.98% 12.84%
Return on
average
shareholders'
equity
(tangible) 17.44% 22.55% 18.16% 23.87%
Net interest
margin 3.56% 3.68% 3.66% 3.82%
Efficiency
ratio 59.09% 56.83% 61.19% 56.00%
Non-performing
assets to
total assets 0.76% 0.39%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands

% Change from
----------------
September December September
December 31 December 31 30 31 30
2007 2006 2007 2006 2007
----------- ----------- ----------- ------- -------

ASSETS
Cash and due
from banks $ 381,283 $ 355,018 $ 337,306 7.4% 13.0%
Loans held for
sale 103,984 239,042 116,451 (56.5%) (10.7%)
Other
interest-earning
assets 21,153 28,188 19,673 (25.0%) 7.5%
Investment
securities 3,153,552 2,878,238 2,948,262 9.6% 7.0%
Loans, net of
unearned 11,204,424 10,374,323 10,988,307 8.0% 2.0%
Allowance for
loan losses (107,547) (106,884) (109,435) 0.6% (1.7%)
----------- ----------- -----------
Net Loans 11,096,877 10,267,439 10,878,872 8.1% 2.0%
Premises and
equipment 193,296 191,401 190,092 1.0% 1.7%
Accrued interest
receivable 73,435 71,825 73,927 2.2% (0.7%)
Goodwill and
intangible
assets 654,908 663,775 658,274 (1.3%) (0.5%)
Other assets 233,744 224,038 215,320 4.3% 8.6%
----------- ----------- -----------
Total Assets $15,912,232 $14,918,964 $15,438,177 6.7% 3.1%
=========== =========== ===========

LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits $10,105,445 $10,232,469 $10,291,186 (1.2%) (1.8%)
Short-term
borrowings 2,383,944 1,680,840 1,773,083 41.8% 34.5%
Federal Home
Loan Bank
advances and
long-term debt 1,642,133 1,304,148 1,632,980 25.9% 0.6%
Other
liabilities 206,648 185,197 186,808 11.6% 10.6%
----------- ----------- -----------
Total
Liabilities 14,338,170 13,402,654 13,884,057 7.0% 3.3%
Shareholders'
equity 1,574,062 1,516,310 1,554,120 3.8% 1.3%
----------- ----------- -----------
Total
Liabilities
and
Shareholders'
Equity $15,912,232 $14,918,964 $15,438,177 6.7% 3.1%
=========== =========== ===========

LOANS, DEPOSITS
AND SHORT-TERM
BORROWINGS
DETAIL:
Loans, by type:
Commercial -
industrial and
financial $ 3,049,923 $ 2,603,224 $ 2,954,204 17.2% 3.2%
Commercial -
agricultural 377,162 361,962 374,759 4.2% 0.6%
Real estate -
commercial
mortgage 3,502,282 3,213,809 3,407,715 9.0% 2.8%
Real estate -
residential
mortgage 851,577 696,836 809,148 22.2% 5.2%
Real estate -
home equity 1,501,231 1,455,439 1,472,376 3.1% 2.0%
Real estate -
construction 1,342,923 1,428,809 1,389,164 (6.0%) (3.3%)
Consumer 500,708 523,066 500,021 (4.3%) 0.1%
Leasing and
other 78,618 91,178 80,920 (13.8%) (2.8%)
----------- ----------- -----------
Total Loans, net
of unearned
income $11,204,424 $10,374,323 $10,988,307 8.0% 2.0%
=========== =========== ===========
Deposits, by type:
Noninterest-
bearing demand $ 1,722,211 $ 1,831,419 $ 1,696,871 (6.0%) 1.5%
Interest-bearing
demand 1,715,315 1,683,857 1,738,605 1.9% (1.3%)
Savings deposits 2,131,374 2,287,146 2,195,363 (6.8%) (2.9%)
Time deposits 4,536,545 4,430,047 4,660,347 2.4% (2.7%)
----------- ----------- -----------
Total Deposits $10,105,445 $10,232,469 $10,291,186 (1.2%) (1.8%)
=========== =========== ===========
Short-term
borrowings, by
type:
Customer
repurchase
agreements $ 228,061 $ 339,207 $ 248,915 (32.8%) (8.4%)
Short-term
promissory
notes 443,002 279,076 476,249 58.7% (7.0%)
Federal funds
purchased 1,057,335 1,022,351 842,476 3.4% 25.5%
Other 655,546 40,206 205,443 1,530.5% 219.1%
----------- ----------- -----------
Total Short-term
borrowings $ 2,383,944 $ 1,680,840 $ 1,773,083 41.8% 34.5%
=========== =========== ===========

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
dollars in thousands, except per-share data

Quarter Ended % Change from
-------------------------- ------------------
December December September December September
31 31 30 31 30
2007 2006 2007 2006 2007
-------- -------- -------- -------- --------

Interest Income:
Interest Income $240,069 $229,548 $238,740 4.6% 0.6%
Interest Expense 116,418 107,803 116,330 8.0% 0.1%
-------- -------- --------
Net Interest Income 123,651 121,745 122,410 1.6% 1.0%
Provision for Loan Losses 6,800 1,068 4,606 536.7% 47.6%
-------- -------- --------
Net Interest Income
after Provision 116,851 120,677 117,804 (3.2%) (0.8%)
Other Income:
Investment management and
trust services 9,291 9,466 9,291 (1.8%) -
Service charges on
deposit accounts 13,355 11,289 11,293 18.3% 18.3%
Other service charges and
fees 8,405 6,869 8,530 22.4% (1.5%)
Gains on sale of mortgage
loans 2,181 5,647 2,532 (61.4%) (13.9%)
Investment securities
(losses) gains (537) 1,915 (134) (128.0%) (300.7%)
Other 2,516 5,168 5,231 (51.3%) (51.9%)
-------- -------- --------
Total Other Income 35,211 40,354 36,743 (12.7%) (4.2%)
Other Expenses:
Salaries and employee
benefits 53,173 55,546 52,505 (4.3%) 1.3%
Operating risk loss 767 1,334 16,345 (42.5%) (95.3%)
Net occupancy expense 10,002 9,637 9,813 3.8% 1.9%
Equipment expense 3,303 3,460 3,438 (4.5%) (3.9%)
Data processing 3,205 3,097 3,131 3.5% 2.4%
Advertising 3,465 2,424 2,470 42.9% 40.3%
Intangible amortization 2,158 2,024 1,995 6.6% 8.2%
Other 22,374 17,235 18,299 29.8% 22.3%
-------- -------- --------
Total Other Expenses 98,447 94,757 107,996 3.9% (8.8%)
-------- -------- --------
Income Before Income
Taxes 53,615 66,274 46,551 (19.1%) 15.2%
Income Taxes 15,436 19,669 12,985 (21.5%) 18.9%
-------- -------- --------
Net Income $ 38,179 $ 46,605 $ 33,566 (18.1%) 13.7%
======== ======== ========

SHARE AND PER-SHARE INFORMATION:
Net income:
Basic $ 0.22 $ 0.27 $ 0.19 (18.5%) 15.8%
Diluted 0.22 0.27 0.19 (18.5%) 15.8%

Cash dividends $ 0.1500 $ 0.1475 $ 0.1500 1.7% -
Shareholders' equity 9.07 8.73 8.96 3.9% 1.2%
Shareholders' equity
(tangible) 5.30 4.91 5.17 7.9% 2.5%

Weighted average shares
(basic) 173,416 173,529 173,304 (0.1%) 0.1%
Weighted average shares
(diluted) 174,155 175,415 174,370 (0.7%) (0.1%)
Shares outstanding, end
of period 173,503 173,648 173,394 (0.1%) 0.1%

SELECTED FINANCIAL RATIOS:
Return on average assets 0.97% 1.25% 0.88%
Return on average
shareholders' equity 9.72% 12.29% 8.67%
Return on average
shareholders' equity
(tangible) 17.44% 22.55% 15.76%
Net interest margin 3.56% 3.68% 3.62%
Efficiency ratio 59.09% 56.83% 65.17%

Year Ended
December 31
-----------------
2007 2006 % Change
-------- -------- --------

Interest Income:
Interest Income $939,577 $864,507 8.7%
Interest Expense 450,833 378,944 19.0%
-------- --------
Net Interest Income 488,744 485,563 0.7%
Provision for Loan Losses 15,063 3,498 330.6%
-------- --------
Net Interest Income
after Provision 473,681 482,065 (1.7%)
Other Income:
Investment management and
trust services 38,665 37,441 3.3%
Service charges on
deposit accounts 46,500 43,773 6.2%
Other service charges and
fees 32,151 26,792 20.0%
Gains on sale of mortgage
loans 14,294 21,086 (32.2%)
Investment securities
(losses) gains 1,740 7,439 (76.6%)
Other 14,674 13,344 10.0%
-------- --------
Total Other Income 148,024 149,875 (1.2%)
Other Expenses:
Salaries and employee
benefits 217,526 213,913 1.7%
Operating risk loss 27,229 4,818 465.2%
Net occupancy expense 39,965 36,493 9.5%
Equipment expense 13,892 14,251 (2.5%)
Data processing 12,755 12,228 4.3%
Advertising 11,334 10,638 6.5%
Intangible amortization 8,334 7,907 5.4%
Other 74,420 65,743 13.2%
-------- --------
Total Other Expenses 405,455 365,991 10.8%
-------- --------
Income Before Income
Taxes 216,250 265,949 (18.7%)
Income Taxes 63,532 80,422 (21.0%)
-------- --------
Net Income $152,718 $185,527 (17.7%)
======== ========

SHARE AND PER-SHARE INFORMATION:
Net income:
Basic $ 0.88 $ 1.07 (17.8%)
Diluted 0.88 1.06 (17.0%)

Cash dividends $ 0.598 $ 0.581 2.9%
Shareholders' equity
Shareholders' equity
(tangible)

Weighted average shares
(basic) 173,295 172,830 0.3%
Weighted average shares
(diluted) 174,386 174,872 (0.3%)
Shares outstanding, end
of period

SELECTED FINANCIAL RATIOS:
Return on average assets 1.01% 1.30%
Return on average
shareholders' equity 9.98% 12.84%
Return on average
shareholders' equity
(tangible) 18.16% 23.87%
Net interest margin 3.66% 3.82%
Efficiency ratio 61.19% 56.00%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands

Quarter Ended
----------------------------------------
December 31, 2007
----------------------------------------
Balance Interest (1) Rate (1)
------------ ------------ ------------
ASSETS
Interest-earning assets:
Loans and leases $ 11,082,957 $ 204,281 7.32%
Taxable investment securities 2,348,449 28,420 4.84%
Tax-exempt investment
securities 494,790 6,462 5.22%
Equity securities 201,554 2,445 4.84%
------------ ------------ ------------
Total Investment Securities 3,044,793 37,327 4.90%
Loans held for sale 101,788 1,730 6.79%
Other interest-earning assets 24,136 291 4.78%
------------ ------------ ------------
Total Interest-earning Assets 14,253,674 243,629 6.80%
Noninterest-earning assets:
Cash and due from banks 323,490
Premises and equipment 191,502
Other assets 907,267
Less: allowance for loan losses (110,922)
------------
Total Assets $ 15,565,011
============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 1,721,831 $ 6,598 1.52%
Savings deposits 2,179,753 12,046 2.19%
Time deposits 4,603,944 54,341 4.68%
------------ ------------ ------------
Total Interest-bearing Deposits 8,505,528 72,985 3.40%
Short-term borrowings 2,020,751 22,249 4.33%
Federal Home Loan Bank advances
and long-term debt 1,624,613 21,184 5.19%
------------ ------------ ------------
Total Interest-bearing
Liabilities 12,150,892 116,418 3.80%
Noninterest-bearing liabilities:
Demand deposits 1,675,528
Other 180,907
------------
Total Liabilities 14,007,327
Shareholders' equity 1,557,684
------------
Total Liabilities and
Shareholders' Equity $ 15,565,011
============

Net interest income/net
interest margin (fully taxable
equivalent) 127,211 3.56%
============
Tax equivalent adjustment (3,560)
------------
Net interest income $ 123,651
============

Quarter Ended
----------------------------------------
December 31, 2006
----------------------------------------
Balance Interest (1) Rate (1)
------------ ------------ ------------
ASSETS
Interest-earning assets:
Loans and leases $ 10,312,354 $ 193,776 7.46%
Taxable investment securities 2,332,116 26,226 4.50%
Tax-exempt investment
securities 472,193 5,889 4.99%
Equity securities 165,261 2,209 5.31%
------------ ------------ ------------
Total Investment Securities 2,969,570 34,324 4.62%
Loans held for sale 212,170 3,876 7.31%
Other interest-earning assets 44,804 580 5.12%
------------ ------------ ------------
Total Interest-earning Assets 13,538,898 232,556 6.83%
Noninterest-earning assets:
Cash and due from banks 321,246
Premises and equipment 190,932
Other assets 897,979
Less: allowance for loan losses (107,842)
------------
Total Assets $ 14,841,213
============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 1,665,453 $ 7,000 1.67%
Savings deposits 2,339,493 14,213 2.41%
Time deposits 4,406,070 49,501 4.46%
------------ ------------ ------------
Total Interest-bearing Deposits 8,411,016 70,714 3.34%
Short-term borrowings 1,790,556 22,613 4.96%
Federal Home Loan Bank advances
and long-term debt 1,177,177 14,476 4.88%
------------ ------------ ------------
Total Interest-bearing
Liabilities 11,378,749 107,803 3.75%
Noninterest-bearing liabilities:
Demand deposits 1,776,686
Other 180,941
------------
Total Liabilities 13,336,376
Shareholders' equity 1,504,837
------------
Total Liabilities and
Shareholders' Equity $ 14,841,213
============

Net interest income/net
interest margin (fully taxable
equivalent) 124,753 3.68%
============
Tax equivalent adjustment (3,008)
------------
Net interest income $ 121,745
============

Quarter Ended
----------------------------------------
September 30, 2007
----------------------------------------
Balance Interest (1) Rate (1)
------------ ------------ ------------
ASSETS
Interest-earning assets:
Loans and leases $ 10,857,636 $ 205,747 7.52%
Taxable investment securities 2,116,123 24,583 4.65%
Tax-exempt investment
securities 499,389 6,377 5.11%
Equity securities 188,490 2,269 4.80%
------------ ------------ ------------
Total Investment Securities 2,804,002 33,229 4.74%
Loans held for sale 159,492 2,694 6.76%
Other interest-earning assets 34,536 432 4.91%
------------ ------------ ------------
Total Interest-earning Assets 13,855,666 242,102 6.95%
Noninterest-earning assets:
Cash and due from banks 338,862
Premises and equipment 190,175
Other assets 890,901
Less: allowance for loan losses (108,628)
------------
Total Assets $ 15,166,976
============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 1,729,357 $ 7,630 1.75%
Savings deposits 2,259,231 13,680 2.40%
Time deposits 4,626,160 55,093 4.72%
------------ ------------ ------------
Total Interest-bearing Deposits 8,614,748 76,403 3.52%
Short-term borrowings 1,477,288 17,786 4.74%
Federal Home Loan Bank advances
and long-term debt 1,655,599 22,141 5.32%
------------ ------------ ------------
Total Interest-bearing
Liabilities 11,747,635 116,330 3.93%
Noninterest-bearing liabilities:
Demand deposits 1,703,137
Other 179,391
------------
Total Liabilities 13,630,163
Shareholders' equity 1,536,813
------------
Total Liabilities and
Shareholders' Equity $ 15,166,976
============

Net interest income/net
interest margin (fully taxable
equivalent) 125,772 3.62%
============
Tax equivalent adjustment (3,362)
------------
Net interest income $ 122,410
============

(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
----------------------------------- ----------------------
September December September
December 31 December 31 30 31 30
2007 2006 2007 2006 2007
----------- ----------- ----------- ---------- ----------

Loans, by type:
Commercial -
industrial
and financial $2,988,996 $ 2,578,374 $ 2,908,049 15.9% 2.8%
Commercial -
agricultural 375,215 351,112 373,293 6.9% 0.5%
Real estate -
commercial
mortgage 3,438,386 3,194,958 3,383,487 7.6% 1.6%
Real estate -
residential
mortgage 831,825 688,932 769,381 20.7% 8.1%
Real estate -
home equity 1,486,367 1,462,912 1,454,947 1.6% 2.2%
Real estate -
construction 1,377,391 1,428,034 1,382,951 (3.5%) (0.4%)
Consumer 499,253 523,890 502,482 (4.7%) (0.6%)
Leasing and
other 85,524 84,142 83,046 1.6% 3.0%
----------- ----------- -----------

Total Loans,
net of
unearned
income $11,082,957 $10,312,354 $10,857,636 7.5% 2.1%
=========== =========== ===========

Deposits, by type:
Noninterest-
bearing
demand $ 1,675,528 $ 1,776,686 $ 1,703,137 (5.7%) (1.6%)
Interest-bearing
demand 1,721,831 1,665,453 1,729,357 3.4% (0.4%)
Savings
deposits 2,179,753 2,339,493 2,259,231 (6.8%) (3.5%)
Time deposits 4,603,944 4,406,070 4,626,160 4.5% (0.5%)
----------- ----------- -----------

Total
Deposits $10,181,056 $10,187,702 $10,317,885 (0.1%) (1.3%)
=========== =========== ===========

Short-term borrowings, by type:
Customer
repurchase
agreements $ 237,346 $ 335,762 $ 242,375 (29.3%) (2.1%)
Short-term
promissory
notes 478,018 270,864 446,182 76.5% 7.1%
Federal funds
purchased 975,732 1,128,439 756,360 (13.5%) 29.0%
Other 329,655 55,491 32,371 494.1% 918.4%
----------- ----------- -----------

Total Short-term
borrowings $ 2,020,751 $ 1,790,556 $ 1,477,288 12.9% 36.8%
=========== =========== ===========

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands

Year Ended December 31
----------------------------------------
2007
------------ ------------ ------------
Balance Interest (1) Rate (1)
------------ ------------ ------------
ASSETS
Interest-earning assets:
Loans and leases $ 10,736,566 $ 805,881 7.51%
Taxable investment securities 2,157,325 99,621 4.62%
Tax-exempt investment
securities 496,820 25,856 5.20%
Equity securities 189,333 9,073 4.79%
------------ ------------ ------------
Total Investment Securities 2,843,478 134,550 4.73%
Loans held for sale 166,437 11,501 6.91%
Other interest-earning assets 33,015 1,630 4.90%
------------ ------------ ------------
Total Interest-earning Assets 13,779,496 953,562 6.93%
Noninterest-earning assets:
Cash and due from banks 329,814
Premises and equipment 190,910
Other assets 899,292
Less: allowance for loan losses (109,054)
------------
Total Assets $ 15,090,458
============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 1,696,624 $ 28,331 1.67%
Savings deposits 2,258,113 53,312 2.36%
Time deposits 4,553,994 212,752 4.67%
------------ ------------ ------------
Total Interest-bearing Deposits 8,508,731 294,395 3.46%
Short-term borrowings 1,574,495 73,983 4.66%
Federal Home Loan Bank advances
and long-term debt 1,579,527 82,455 5.22%
------------ ------------ ------------
Total Interest-bearing
Liabilities 11,662,753 450,833 3.86%
Noninterest-bearing liabilities:
Demand deposits 1,713,863
Other 183,229
------------
Total Liabilities 13,559,845
Shareholders' equity 1,530,613
------------
Total Liabilities and
Shareholders' Equity $ 15,090,458
============

Net interest income/net
interest margin (fully taxable
equivalent) 502,729 3.66%
============
Tax equivalent adjustment (13,985)
------------
Net interest income $ 488,744
============

Year Ended December 31
----------------------------------------
2006
------------ ------------ ------------
Balance Interest (1) Rate (1)
------------ ------------ ------------
ASSETS
Interest-earning assets:
Loans and leases $ 9,892,082 $ 731,057 7.39%
Taxable investment securities 2,268,209 97,652 4.31%
Tax-exempt investment
securities 447,000 21,770 4.87%
Equity securities 154,653 7,341 4.75%
------------ ------------ ------------
Total Investment Securities 2,869,862 126,763 4.42%
Loans held for sale 215,255 15,564 7.23%
Other interest-earning assets 53,211 2,530 4.73%
------------ ------------ ------------
Total Interest-earning Assets 13,030,410 875,914 6.73%
Noninterest-earning assets:
Cash and due from banks 335,935
Premises and equipment 185,084
Other assets 852,186
Less: allowance for loan losses (105,934)
------------
Total Assets $ 14,297,681
============

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits $ 1,673,407 $ 25,112 1.50%
Savings deposits 2,340,402 51,394 2.19%
Time deposits 4,134,190 170,435 4.12%
------------ ------------ ------------
Total Interest-bearing Deposits 8,147,999 246,941 3.03%
Short-term borrowings 1,653,974 78,043 4.67%
Federal Home Loan Bank advances
and long-term debt 1,069,868 53,960 5.04%
------------ ------------ ------------
Total Interest-bearing
Liabilities 10,871,841 378,944 3.48%
Noninterest-bearing liabilities:
Demand deposits 1,807,248
Other 173,799
------------
Total Liabilities 12,852,888
Shareholders' equity 1,444,793
------------
Total Liabilities and
Shareholders' Equity $ 14,297,681
============

Net interest income/net
interest margin (fully taxable
equivalent) 496,970 3.82%
============
Tax equivalent adjustment (11,407)
------------
Net interest income $ 485,563
============

(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:

Year Ended
December 31
---------------------------
2007 2006 % Change
------------- ------------- ------------

Loans, by type:
Commercial - industrial and
financial $ 2,844,359 $ 2,478,893 14.7%
Commercial - agricultural 368,998 335,596 10.0%
Real estate - commercial
mortgage 3,337,762 3,073,830 8.6%
Real estate - residential
mortgage 753,789 640,775 17.6%
Real estate - home equity 1,454,753 1,417,259 2.6%
Real estate - construction 1,384,548 1,345,191 2.9%
Consumer 506,201 522,761 (3.2%)
Leasing and other 86,156 77,777 10.8%
------------- -------------

Total Loans, net of unearned
income $ 10,736,566 $ 9,892,082 8.5%
============= =============

Deposits, by type:
Noninterest-bearing demand $ 1,713,863 $ 1,807,248 (5.2%)
Interest-bearing demand 1,696,624 1,673,407 1.4%
Savings deposits 2,258,113 2,340,402 (3.5%)
Time deposits 4,553,994 4,134,190 10.2%
------------- -------------

Total Deposits $ 10,222,594 $ 9,955,247 2.7%
============= =============

Short-term borrowings, by type:
Customer repurchase agreements $ 247,948 $ 352,454 (29.7%)
Short-term promissory notes 404,527 163,199 147.9%
Federal funds purchased 808,358 1,095,875 (26.2%)
Other 113,662 42,446 167.8%
------------- -------------

Total Short-term borrowings $ 1,574,495 $ 1,653,974 (4.8%)
============= =============

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands

Quarter Ended
------------------------------- Year Ended
December December September December 31
31 31 30 --------------------
2007 2006 2007 2007 2006
--------- --------- --------- --------- ---------
ALLOWANCE FOR CREDIT
LOSSES:
Balance at
beginning of
period $ 109,435 $ 107,422 $ 106,892 $ 106,884 $ 92,847
Loans charged off (5,068) (2,722) (2,805) (13,739) (6,969)
Recoveries of
loans previously
charged off 1,042 1,116 742 4,001 4,517
--------- --------- --------- --------- ---------
Net loans charged
off (4,026) (1,606) (2,063) (9,738) (2,452)
Provision for loan
losses 6,800 1,068 4,606 15,063 3,498
Allowance
purchased - - - - 12,991
--------- --------- --------- --------- ---------
Balance at end of
period $ 112,209 $ 106,884 $ 109,435 $ 112,209 $ 106,884
========= ========= ========= ========= =========

Net charge-offs to
average loans
(annualized) 0.15% 0.06% 0.08% 0.09% 0.02%
========= ========= ========= ========= =========

COMPONENTS OF
ALLOWANCE FOR
CREDIT LOSSES:
Allowance for loan
losses $ 107,547 $ 106,884 $ 109,435
Reserve for
unfunded lending
commitments (1) 4,662 - -
--------- --------- ---------
Allowance for
credit losses $ 112,209 $ 106,884 $ 109,435
========= ========= =========

(1) Reserve for unfunded commitments transferred to other liabilities as
of December 31, 2007. Prior periods have not been restated.

NON-PERFORMING
ASSETS:
Non-accrual loans $ 76,140 $ 33,113 $ 71,043
Accruing loans 90+
days overdue 29,782 20,632 23,406
Other real estate
owned 14,934 4,103 12,536
--------- --------- ---------
Total
non-performing
assets $ 120,856 $ 57,848 $ 106,985
========= ========= =========

ASSET QUALITY
RATIOS:
Non-accrual loans
to total loans 0.68% 0.32% 0.65%
Non-performing
assets to total
loans and OREO 1.08% 0.56% 0.97%
Non-performing
assets to total
assets 0.76% 0.39% 0.69%
Allowance for
credit losses to
loans outstanding 1.00% 1.03% 1.00%
Allowance for
credit losses to
non-performing
loans 106% 199% 116%

Contact:
Laura J. Wakeley
Office: 717-291-2616

Copyright 2008, Market Wire, All rights reserved.

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