Fulton Financial (FULT) 8-K Fulton Financial reports 2011 earnings

Exhibit 99.2
FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
											% Change from
		December 31			December 31			September 30			December 31		September 30
		2011			2010			2011			2010		2011
ASSETS
	Cash and due from banks	$	292,598		$	198,954		$	291,870		47.1	%	0.2	%
	Loans held for sale	47,009			83,940			63,554			(44.0	)%	(26.0	)%
	Other interest-earning assets	175,336			33,297			256,360			426.6	%	(31.6	)%
	Investment securities	2,679,967			2,861,484			2,776,557			(6.3	)%	(3.5	)%
	Loans, net of unearned income	11,968,970			11,933,307			11,895,655			0.3	%	0.6	%
	Allowance for loan losses	(256,471		)	(274,271		)	(266,978		)	(6.5	)%	(3.9	)%
	Net Loans	11,712,499			11,659,036			11,628,677			0.5	%	0.7	%
	Premises and equipment	212,274			208,016			206,170			2.0	%	3.0	%
	Accrued interest receivable	51,098			53,841			52,460			(5.1	)%	(2.6	)%
	Goodwill and intangible assets	544,209			547,979			545,098			(0.7	)%	(0.2	)%
	Other assets	655,518			628,707			475,105			4.3	%	38.0	%
	Total Assets	$	16,370,508		$	16,275,254		$	16,295,851		0.6	%	0.5	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	12,525,739		$	12,388,581		$	12,637,624		1.1	%	(0.9	)%
	Short-term borrowings	597,033			674,077			448,955			(11.4	)%	33.0	%
	Federal Home Loan Bank advances and long-term debt	1,040,149			1,119,450			1,025,505			(7.1	)%	1.4	%
	Other liabilities	215,048			212,757			199,108			1.1	%	8.0	%
	Total Liabilities	14,377,969			14,394,865			14,311,192			(0.1	)%	0.5	%
	Shareholders' equity	1,992,539			1,880,389			1,984,659			6.0	%	0.4	%
	Total Liabilities and Shareholders' Equity	$	16,370,508		$	16,275,254		$	16,295,851		0.6	%	0.5	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	4,602,596		$	4,375,980		$	4,491,155		5.2	%	2.5	%
	Commercial - industrial, financial and agricultural	3,639,368			3,704,384			3,690,164			(1.8	)%	(1.4	)%
	Real estate - home equity	1,624,562			1,641,777			1,630,880			(1.0	)%	(0.4	)%
	Real estate - residential mortgage	1,097,192			995,990			1,041,463			10.2	%	5.4	%
	Real estate - construction	615,445			801,185			648,398			(23.2	)%	(5.1	)%
	Consumer	318,101			350,161			327,054			(9.2	)%	(2.7	)%
	Leasing and other	71,706			63,830			66,541			12.3	%	7.8	%
	Total Loans, net of unearned income	$	11,968,970		$	11,933,307		$	11,895,655		0.3	%	0.6	%
Deposits, by type:
	Noninterest-bearing demand	$	2,588,034		$	2,194,988		$	2,535,744		17.9	%	2.1	%
	Interest-bearing demand	2,529,388			2,277,190			2,517,124			11.1	%	0.5	%
	Savings deposits	3,394,367			3,286,435			3,434,398			3.3	%	(1.2	)%
	Time deposits	4,013,950			4,629,968			4,150,358			(13.3	)%	(3.3	)%
	Total Deposits	$	12,525,739		$	12,388,581		$	12,637,624		1.1	%	(0.9	)%
Short-term borrowings, by type:
	Customer repurchase agreements	$	186,735		$	204,800		$	202,154		(8.8	)%	(7.6	)%
	Customer short-term promissory notes	156,828			201,433			170,839			(22.1	)%	(8.2	)%
	Federal funds purchased	253,470			267,844			75,962			(5.4	)%	233.7	%
	Total Short-term borrowings	$	597,033		$	674,077		$	448,955		(11.4	)%	33.0	%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
dollars in thousands, except per-share data
		Quarter Ended									% Change from				Year Ended
		Dec 31			Dec 31			Sep 30			Dec 31		Sep 30		December 31
		2011			2010			2011			2010		2011		2011			2010			% Change
Interest Income:
	Interest income	$	169,333		$	181,749		$	173,736		(6.8	)%	(2.5	)%	$	693,698		$	745,373		(6.9	)%
	Interest expense	30,874			40,856			32,243			(24.4	)%	(4.2	)%	133,538			186,627			(28.4	)%
	Net Interest Income	138,459			140,893			141,493			(1.7	)%	(2.1	)%	560,160			558,746			0.3	%
	Provision for credit losses	30,000			40,000			31,000			(25.0	)%	(3.2	)%	135,000			160,000			(15.6	)%
	Net Interest Income after Provision	108,459			100,893			110,493			7.5	%	(1.8	)%	425,160			398,746			6.6	%
Other Income:
	Service charges on deposit accounts	15,277			14,091			15,164			8.4	%	0.7	%	58,078			58,592			(0.9	)%
	Other service charges and fees	10,784			11,849			12,507			(9.0	)%	(13.8	)%	47,482			45,023			5.5	%
	Investment management and trust services	8,727			8,826			8,914			(1.1	)%	(2.1	)%	36,483			34,173			6.8	%
	Mortgage banking income	6,220			8,857			7,942			(29.8	)%	(21.7	)%	25,674			29,304			(12.4	)%
	Investment securities gains (losses)	3,054			194			(443		)	1,474.2	%	N/M		4,561			701			550.6	%
	Other	4,286			3,940			4,055			8.8	%	5.7	%	15,449			14,527			6.3	%
	Total Other Income	48,348			47,757			48,139			1.2	%	0.4	%	187,727			182,320			3.0	%
Other Expenses:
	Salaries and employee benefits	58,109			54,955			58,948			5.7	%	(1.4	)%	227,435			216,487			5.1	%
	Net occupancy expense	10,973			10,845			10,790			1.2	%	1.7	%	44,003			43,533			1.1	%
	OREO and repossession expense	3,565			1,873			2,548			90.3	%	39.9	%	8,366			7,441			12.4	%
	Data processing	3,482			3,348			3,473			4.0	%	0.3	%	13,541			13,263			2.1	%
	Equipment expense	3,329			2,982			3,032			11.6	%	9.8	%	12,870			11,692			10.1	%
	Marketing	3,045			4,461			1,923			(31.7	)%	58.3	%	9,667			11,163			(13.4	)%
	Professional Fees	2,961			2,902			3,247			2.0	%	(8.8	)%	12,159			11,523			5.5	%
	FDIC insurance expense	2,730			4,916			3,732			(44.5	)%	(26.8	)%	14,480			19,715			(26.6	)%
	Intangible amortization	954			1,292			953			(26.2	)%	0.1	%	4,257			5,240			(18.8	)%
	Other	19,712			18,520			17,221			6.4	%	14.5	%	69,698			68,268			2.1	%
	Total Other Expenses	108,860			106,094			105,867			2.6	%	2.8	%	416,476			408,325			2.0	%
	Income Before Income Taxes	47,947			42,556			52,765			12.7	%	(9.1	)%	196,411			172,741			13.7	%
	Income tax expense	11,868			11,066			13,441			7.2	%	(11.7	)%	50,838			44,409			14.5	%
	Net Income	36,079			31,490			39,324			14.6	%	(8.3	)%	145,573			128,332			13.4	%
	Preferred stock dividends and discount accretion	—			—			—			—	%	—	%	—			(16,303		)	(100.0	)%
	Net Income Available to Common Shareholders	$	36,079		$	31,490		$	39,324		14.6	%	(8.3	)%	$	145,573		$	112,029		29.9	%
PER COMMON SHARE:
	Net income:
	Basic	$	0.18		$	0.16		$	0.20		12.5	%	(10.0	)%	$	0.73		$	0.59		23.7	%
	Diluted	0.18			0.16			0.20			12.5	%	(10.0	)%	0.73			0.59			23.7	%
	Cash dividends	$	0.06		$	0.03		$	0.05		100.0	%	20.0	%	$	0.20		$	0.12		66.7	%
	Shareholders' equity	9.95			9.45			9.93			5.3	%	0.2	%	9.95			9.45			5.3	%
	Shareholders' equity (tangible)	7.24			6.69			7.20			8.2	%	0.6	%	7.24			6.69			8.2	%
	Weighted average shares (basic)	199,239			198,437			199,028			0.4	%	0.1	%	198,912			190,860			4.2	%
	Weighted average shares (diluted)	199,997			198,999			199,814			0.5	%	0.1	%	199,658			191,397			4.3	%
	Shares outstanding, end of period	200,164			199,050			199,891			0.6	%	0.1	%	200,164			199,050			0.6	%
SELECTED FINANCIAL RATIOS:
	Return on average assets	0.88		%	0.77		%	0.97		%					0.90		%	0.78		%
	Return on average common shareholders' equity	7.16		%	6.60		%	7.89		%					7.45		%	6.29		%
	Return on average common shareholders' equity (tangible)	10.02		%	9.54		%	11.06		%					10.54		%	9.39		%
	Net interest margin	3.81		%	3.85		%	3.93		%					3.90		%	3.80		%
	Efficiency ratio	57.44		%	54.50		%	54.06		%					54.28		%	53.33		%
N/M - Not meaningful

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Quarter Ended
		December 31, 2011								December 31, 2010									September 30, 2011
		Average						Yield/		Average						Yield/			Average						Yield/
		Balance			Interest (1)			Rate		Balance			Interest (1)			Rate			Balance			Interest (1)			Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income	$	11,926,246		$	150,195		5.00	%	$	11,944,932		$	158,257		5.26	%		$	11,887,544		$	151,816		5.07	%
	Taxable investment securities	2,279,658			17,462			3.06	%	2,264,784			20,579			3.63	%		2,142,670			20,166			3.76	%
	Tax-exempt investment securities	307,713			4,340			5.64	%	341,909			4,868			5.69	%		325,420			4,456			5.48	%
	Equity securities	121,219			774			2.55	%	136,075			801			2.35	%		124,893			777			2.48	%
																		��
	Total Investment Securities	2,708,590			22,576			3.33	%	2,742,768			26,248			3.83	%		2,592,983			25,399			3.92	%
	Loans held for sale	54,013			541			4.01	%	94,741			947			4.00	%		37,626			425			4.52	%
	Other interest-earning assets	192,574			133			0.27	%	187,881			147			0.31	%		218,135			91			0.17	%
	Total Interest-earning Assets	14,881,423			173,445			4.63	%	14,970,322			185,599			4.93	%		14,736,288			177,731			4.80	%
Noninterest-earning assets:
	Cash and due from banks	282,993								268,758									276,063
	Premises and equipment	207,744								205,740									206,059
	Other assets	1,125,429								1,135,276									1,107,107
	Less: allowance for loan losses	(275,160		)						(291,541		)							(274,436		)
	Total Assets	$	16,222,429							$	16,288,555								$	16,051,081
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	2,462,551		$	1,243		0.20	%	$	2,262,027		$	1,793		0.31	%		$	2,424,646		$	1,262		0.21	%
	Savings deposits	3,466,104			2,356			0.27	%	3,337,407			4,328			0.51	%		3,329,489			2,564			0.30	%
	Time deposits	4,084,278			14,739			1.43	%	4,760,929			20,926			1.74	%		4,224,001			15,858			1.49	%
	Total Interest-bearing Deposits	10,012,933			18,338			0.73	%	10,360,363			27,047			1.04	%		9,978,136			19,684			0.78	%
	Short-term borrowings	463,659			173			0.15	%	482,197			249			0.20	%		443,337			151			0.14	%
	Federal Home Loan Bank advances and long-term debt	1,025,683			12,363			4.80	%	1,148,009			13,560			4.70	%		1,025,546			12,408			4.82	%
	Total Interest-bearing Liabilities	11,502,275			30,874			1.07	%	11,990,569			40,856			1.35	%		11,447,019			32,243			1.12	%
Noninterest-bearing liabilities:
	Demand deposits	2,529,548								2,219,267									2,466,877
	Other	192,806								186,211									159,430
	Total Liabilities	14,224,629								14,396,047									14,073,326
	Shareholders' equity	1,997,800								1,892,508									1,977,755
	Total Liabilities and Shareholders' Equity	$	16,222,429							$	16,288,555								$	16,051,081
	Net interest income/net interest margin (fully taxable equivalent)				142,571			3.81	%				144,743			3.85	%					145,488			3.93	%
	Tax equivalent adjustment				(4,112		)						(3,850		)							(3,995		)
	Net interest income				$	138,459							$	140,893								$	141,493
	(1) Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.

AVERAGE LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
		Quarter Ended						% Change from
		December 31		December 31		September 30		December 31		September 30
		2011		2010		2011		2010		2011
Loans, by type:
	Real estate - commercial mortgage	$	4,554,161	$	4,365,245	$	4,461,646	4.3	%	2.1	%
	Commercial - industrial, financial and agricultural	3,637,465		3,682,949		3,691,516		(1.2	)%	(1.5	)%
	Real estate - home equity	1,628,406		1,649,111		1,628,822		(1.3	)%	—	%
	Real estate - residential mortgage	1,066,463		999,814		1,037,968		6.7	%	2.7	%
	Real estate - construction	641,485		818,367		668,464		(21.6	)%	(4.0	)%
	Consumer	326,818		360,432		329,619		(9.3	)%	(0.8	)%
	Leasing and other	71,448		69,014		69,509		3.5	%	2.8	%
	Total Loans, net of unearned income	$	11,926,246	$	11,944,932	$	11,887,544	(0.2	)%	0.3	%
Deposits, by type:
	Noninterest-bearing demand	$	2,529,548	$	2,219,267	$	2,466,877	14.0	%	2.5	%
	Interest-bearing demand	2,462,551		2,262,027		2,424,646		8.9	%	1.6	%
	Savings deposits	3,466,104		3,337,407		3,329,489		3.9	%	4.1	%
	Time deposits	4,084,278		4,760,929		4,224,001		(14.2	)%	(3.3	)%
	Total Deposits	$	12,542,481	$	12,579,630	$	12,445,013	(0.3	)%	0.8	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	195,372	$	240,548	$	206,824	(18.8	)%	(5.5	)%
	Customer short-term promissory notes	165,677		205,637		170,790		(19.4	)%	(3.0	)%
	Federal funds purchased and other	102,610		36,012		65,723		184.9	%	56.1	%
	Total Short-term borrowings	$	463,659	$	482,197	$	443,337	(3.8	)%	4.6	%

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Year Ended December 31
		2011								2010
		Average								Average
		Balance			Interest (1)			Yield/Rate		Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
	Loans, net of unearned income	$	11,904,529		$	605,671		5.09	%	$	11,958,435		$	637,438		5.33	%
	Taxable investment securities	2,223,376			80,184			3.61	%	2,403,206			96,237			4.00	%
	Tax-exempt investment securities	330,087			18,521			5.61	%	357,427			20,513			5.74	%
	Equity securities	126,766			3,078			2.43	%	139,292			3,103			2.23	%
	Total Investment Securities	2,680,229			101,783			3.80	%	2,899,925			119,853			4.13	%
	Loans held for sale	43,470			1,958			4.50	%	69,157			3,088			4.47	%
	Other interest-earning assets	160,664			358			0.22	%	192,888			505			0.26	%
	Total Interest-earning Assets	14,788,892			709,770			4.80	%	15,120,405			760,884			5.04	%
Noninterest-earning assets:
	Cash and due from banks	274,527								268,615
	Premises and equipment	207,081								204,316
	Other assets	1,108,359								1,114,678
	Less: allowance for loan losses	(276,278		)						(281,555		)
	Total Assets	$	16,102,581							$	16,426,459
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	2,391,043		$	5,312		0.22	%	$	2,099,026		$	7,341		0.35	%
	Savings deposits	3,359,109			11,536			0.34	%	3,124,157			19,889			0.63	%
	Time deposits	4,297,106			66,235			1.54	%	5,016,645			95,129			1.90	%
	Total Interest-bearing Deposits	10,047,258			83,083			0.83	%	10,239,828			122,359			1.19	%
	Short-term borrowings	495,791			746			0.15	%	587,602			1,455			0.25	%
	Federal Home Loan Bank advances and long-term debt	1,034,475			49,709			4.81	%	1,326,449			62,813			4.74	%
	Total Interest-bearing Liabilities	11,577,524			133,538			1.15	%	12,153,879			186,627			1.54	%
Noninterest-bearing liabilities:
	Demand deposits	2,400,293								2,104,016
	Other	171,368								191,398
	Total Liabilities	14,149,185								14,449,293
	Shareholders' equity	1,953,396								1,977,166
	Total Liabilities and Shareholders' Equity	$	16,102,581							$	16,426,459
	Net interest income/net interest margin (fully taxable equivalent)				576,232			3.90	%				574,257			3.80	%
	Tax equivalent adjustment				(16,072		)						(15,511		)
	Net interest income				$	560,160							$	558,746
	(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
		2011		2010		% Change
Loans, by type:
	Real estate - commercial mortgage	$	4,458,205	$	4,333,371	2.9	%
	Commercial - industrial, financial and agricultural	3,681,321		3,681,692		—	%
	Real estate - home equity	1,627,308		1,642,999		(1.0	)%
	Real estate - residential mortgage	1,036,474		977,909		6.0	%
	Real estate - construction	700,071		889,267		(21.3	)%
	Consumer	332,613		363,066		(8.4	)%
	Leasing and other	68,537		70,131		(2.3	)%
	Total Loans, net of unearned income	$	11,904,529	$	11,958,435	(0.5	)%
Deposits, by type:
	Noninterest-bearing demand	$	2,400,293	$	2,104,016	14.1	%
	Interest-bearing demand	2,391,043		2,099,026		13.9	%
	Savings deposits	3,359,109		3,124,157		7.5	%
	Time deposits	4,297,106		5,016,645		(14.3	)%
	Total Deposits	$	12,447,551	$	12,343,844	0.8	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	208,144	$	252,634	(17.6	)%
	Customer short-term promissory notes	174,624		209,766		(16.8	)%
	Federal funds purchased and other	113,023		125,202		(9.7	)%
	Total Short-term borrowings	$	495,791	$	587,602	(15.6	)%

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Quarter Ended									Year Ended
		Dec 31			Dec 31			Sep 30			Dec 31
		2011			2010			2011			2011			2010
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period		$	268,817		$	284,874		$	268,633		$	275,498		$	257,553
	Loans charged off:
	Real estate - residential mortgage	(18,316		)	(2,874		)	(1,514		)	(32,533		)	(6,896		)
	Commercial - industrial, financial and agricultural	(8,719		)	(12,893		)	(14,840		)	(52,301		)	(35,865		)
	Real estate - construction	(8,716		)	(13,421		)	(8,535		)	(38,613		)	(66,412		)
	Real estate - commercial mortgage	(3,189		)	(17,688		)	(5,730		)	(26,032		)	(28,209		)
	Consumer and home equity	(2,804		)	(3,440		)	(1,792		)	(9,686		)	(11,210		)
	Leasing and other	(496		)	(788		)	(486		)	(2,168		)	(2,833		)
	Total loans charged off	(42,240		)	(51,104		)	(32,897		)	(161,333		)	(151,425		)
Recoveries of loans charged off:
	Real estate - residential mortgage	55			2			36			325			9
	Commercial - industrial, financial and agricultural	432			855			695			2,521			4,536
	Real estate - construction	509			211			595			1,746			1,296
	Real estate - commercial mortgage	—			152			249			1,967			1,008
	Consumer and home equity	372			254			314			1,431			1,540
	Leasing and other	232			254			192			1,022			981
	Recoveries of loans previously charged off	1,600			1,728			2,081			9,012			9,370
Net loans charged off		(40,640		)	(49,376		)	(30,816		)	(152,321		)	(142,055		)
Provision for credit losses		30,000			40,000			31,000			135,000			160,000
Balance at end of period		$	258,177		$	275,498		$	268,817		$	258,177		$	275,498
	Net charge-offs to average loans (annualized)	1.36		%	1.65		%	1.04		%	1.28		%	1.19		%
NON-PERFORMING ASSETS:
	Non-accrual loans	$	257,761		$	280,688		$	269,176
	Loans 90 days past due and accruing	28,767			48,084			41,427
	Total non-performing loans	286,528			328,772			310,603
	Other real estate owned	30,803			32,959			37,399
	Total non-performing assets	$	317,331		$	361,731		$	348,002
NON-PERFORMING LOANS, BY TYPE:
	Real estate - commercial mortgage	$	113,806		$	93,720		$	102,928
	Commercial - industrial, financial and agricultural	80,944			87,455			92,385
	Real estate - construction	60,744			84,616			52,381
	Real estate - residential mortgage	16,336			50,412			48,086
	Real estate - home equity	11,207			10,188			12,097
	Consumer	3,384			2,154			2,614
	Leasing	107			227			112
	Total non-performing loans	$	286,528		$	328,772		$	310,603

DELINQUENCY RATES, BY TYPE:
		December 31, 2011						December 31, 2010						September 30, 2011
		31-89 Days		≥90 Days (1)		Total		31-89 Days		≥90 Days (1)		Total		31-89 Days		≥90 Days (1)		Total
	Real estate - commercial mortgage	0.56	%	2.47	%	3.03	%	0.56	%	2.14	%	2.70	%	0.84	%	2.29	%	3.13	%
	Commercial - industrial, financial and agricultural	0.41	%	2.23	%	2.64	%	0.36	%	2.36	%	2.72	%	0.57	%	2.50	%	3.07	%
	Real estate - construction	1.55	%	9.87	%	11.42	%	0.91	%	10.56	%	11.47	%	1.28	%	8.08	%	9.36	%
	Real estate - residential mortgage	3.38	%	1.49	%	4.87	%	3.65	%	5.06	%	8.71	%	3.02	%	4.62	%	7.64	%
	Real estate - home equity	0.72	%	0.69	%	1.41	%	0.73	%	0.62	%	1.35	%	0.74	%	0.74	%	1.48	%
	Consumer, leasing and other	1.92	%	0.90	%	2.82	%	1.48	%	0.58	%	2.06	%	1.71	%	0.69	%	2.40	%
	Total	0.89	%	2.39	%	3.28	%	0.83	%	2.76	%	3.59	%	0.99	%	2.61	%	3.60	%
	(1) Includes non-accrual loans
ASSET QUALITY RATIOS:
		Dec 31		Dec 31		Sep 30
		2011		2010		2011
	Non-accrual loans to total loans	2.15	%	2.35	%	2.26	%
	Non-performing assets to total loans and OREO	2.64	%	3.02	%	2.92	%
	Non-performing assets to total assets	1.94	%	2.22	%	2.14	%
	Allowance for credit losses to loans outstanding	2.16	%	2.31	%	2.26	%
	Allowance for credit losses to non-performing loans	90.11	%	83.80	%	86.55	%
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses	18.60	%	22.50	%	20.37	%