Fulton Financial (FULT) 8-K Fulton Financial net income up 9.8% in second quarter

Exhibit 99.2

FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended
	June 30				Variance
	2005		2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	148,611	$	122,024	$	26,587			21.8	%
Interest expense		48,686		33,318		15,368			46.1	%
Net Interest Income		99,925		88,706		11,219			12.6	%
Provision for loan losses		725		800		(75	)		-9.4	%
Investment securities gains		1,418		5,349		(3,931	)		-73.5	%
Other income		36,897		31,313		5,584			17.8	%
Other expenses		78,106		70,537		7,569			10.7	%
Income Before Income Taxes		59,409		54,031		5,378			10.0	%
Income taxes		17,829		16,167		1,662			10.3	%
Net Income	$	41,580	$	37,864	$	3,716			9.8	%
Fully taxable equivalent (FTE) net interest income	$	102,266	$	91,038	$	11,228			12.3	%
PER-SHARE DATA:
Net income:
Basic	$	0.27	$	0.25	$	0.02			8.0	%
Diluted		0.27		0.25		0.02			8.0	%
Cash dividends		0.145		0.132		0.013			9.8	%
ENDING BALANCES:
Total assets	$	11,571,083	$	10,556,421	$	1,014,662			9.6	%
Loans, net of unearned income		7,861,508		7,042,311		819,197			11.6	%
Deposits		8,139,667		7,430,988		708,679			9.5	%
Short-term borrowings		1,134,583		1,241,522		(106,939	)		-8.6	%
Long-term debt		951,745		654,886		296,859			45.3	%
Shareholders’ equity		1,194,075		1,107,482		86,593			7.8	%
AVERAGE BALANCES:
Total assets	$	11,417,078	$	10,603,544	$	813,534			7.7	%
Loans, net of unearned income		7,823,737		6,946,626		877,111			12.6	%
Deposits		8,059,110		7,448,275		610,835			8.2	%
Short-term borrowings		1,180,975		1,282,657		(101,682	)		-7.9	%
Long-term debt		841,650		656,803		184,847			28.1	%
Shareholders’ equity		1,195,455		1,101,590		93,865			8.5	%

FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)

	Six Months Ended
	June 30				Variance
	2005		2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	289,421	$	235,960	$	53,461			22.7	%
Interest expense		91,248		64,287		26,961			41.9	%
Net Interest Income		198,173		171,673		26,500			15.4	%
Provision for loan losses		1,525		2,540		(1,015	)		-40.0	%
Investment securities gains		4,733		11,177		(6,444	)		-57.7	%
Other income		69,435		57,523		11,912			20.7	%
Other expenses		151,837		132,809		19,028			14.3	%
Income Before Income Taxes		118,979		105,024		13,955			13.3	%
Income taxes		35,868		31,314		4,554			14.5	%
Net Income	$	83,111	$	73,710	$	9,401			12.8	%
Fully taxable equivalent (FTE) net interest income	$	202,858	$	176,351	$	26,507			15.0	%
PER-SHARE DATA:
Net income:
Basic	$	0.53	$	0.50	$	0.03			6.0	%
Diluted		0.53		0.50		0.03			6.0	%
Cash dividends		0.277		0.254		0.023			9.1	%
AVERAGE BALANCES:
Total assets	$	11,314,220	$	10,140,019	$	1,174,201			11.6	%
Loans, net of unearned income		7,749,797		6,567,307		1,182,490			18.0	%
Deposits		7,986,110		7,083,167		902,943			12.7	%
Short-term borrowings		1,210,053		1,313,970		(103,917	)		-7.9	%
Long-term debt		761,992		613,439		148,553			24.2	%
Shareholders’ equity		1,222,511		1,025,658		196,853			19.2	%

FULTON FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended				Variance
	June 30		March 31
	2005		2005		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	148,611	$	140,810	$	7,801			5.5	%
Interest expense		48,686		42,562		6,124			14.4	%
Net Interest Income		99,925		98,248		1,677			1.7	%
Provision for loan losses		725		800		(75	)		-9.4	%
Investment securities gains		1,418		3,315		(1,897	)		-57.2	%
Other income		36,897		32,538		4,359			13.4	%
Other expenses		78,106		73,731		4,375			5.9	%
Income Before Income Taxes		59,409		59,570		(161	)		-0.3	%
Income taxes		17,829		18,039		(210	)		-1.2	%
Net Income	$	41,580	$	41,531	$	49			0.1	%
Fully taxable equivalent (FTE) net interest income	$	102,266	$	100,592	$	1,674			1.7	%
PER-SHARE DATA:
Net income:
Basic	$	0.27	$	0.26	$	0.01			3.8	%
Diluted		0.27		0.26		0.01			3.8	%
Cash dividends		0.145		0.132		0.013			9.8	%
ENDING BALANCES:
Total assets	$	11,571,083	$	11,418,278	$	152,805			1.3	%
Loans, net of unearned income		7,861,508		7,747,301		114,207			1.5	%
Deposits		8,139,667		7,981,147		158,520			2.0	%
Short-term borrowings		1,134,583		1,265,360		(130,777	)		-10.3	%
Long-term debt		951,745		773,129		178,616			23.1	%
Shareholders’ equity		1,194,075		1,235,519		(41,444	)		-3.4	%
AVERAGE BALANCES:
Total assets	$	11,417,078	$	11,210,219	$	206,859			1.8	%
Loans, net of unearned income		7,823,737		7,675,034		148,703			1.9	%
Deposits		8,059,110		7,912,299		146,811			1.9	%
Short-term borrowings		1,180,975		1,239,454		(58,479	)		-4.7	%
Long-term debt		841,650		681,450		160,200			23.5	%
Shareholders’ equity		1,195,455		1,249,868		(54,413	)		-4.4	%

FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	June 30				Variance
	2005		2004		$			%
	(in thousands)
ASSETS
Cash and due from banks	$	358,581	$	335,176	$	23,405			7.0	%
Loans held for sale		237,713		144,050		93,663			65.0	%
Other interest-earning assets		22,600		7,021		15,579			221.9	%
Investment securities		2,429,365		2,489,031		(59,666	)		-2.4	%
Loans, net of allowance		7,771,106		6,955,772		815,334			11.7	%
Premises and equipment		153,598		130,721		22,877			17.5	%
Accrued interest receivable		43,819		35,701		8,118			22.7	%
Goodwill and intangible assets		386,795		296,213		90,582			30.6	%
Other assets		167,506		162,736		4,770			2.9	%
Total Assets	$	11,571,083	$	10,556,421	$	1,014,662			9.6	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	8,139,667	$	7,430,988	$	708,679			9.5	%
Short-term borrowings		1,134,583		1,241,522		(106,939	)		-8.6	%
Long-term debt		951,745		654,886		296,859			45.3	%
Other liabilities		151,013		121,543		29,470			24.2	%
Total Liabilities		10,377,008		9,448,939		928,069			9.8	%
Shareholders’ equity		1,194,075		1,107,482		86,593			7.8	%
Total Liabilities and Shareholders’ Equity	$	11,571,083	$	10,556,421	$	1,014,662			9.6	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	1,991,480	$	1,818,570	$	172,910			9.5	%
Commercial — agricultural		322,791		324,465		(1,674	)		-0.5	%
Real estate — commercial mortgage		2,556,990		2,240,228		316,762			14.1	%
Real estate — residential mortgage		558,845		504,320		54,525			10.8	%
Real estate — construction		743,774		560,865		182,909			32.6	%
Real estate — home equity		1,141,749		1,004,532		137,217			13.7	%
Consumer		485,492		522,576		(37,084	)		-7.1	%
Leasing and other		60,387		66,755		(6,368	)		-9.5	%
Total Loans, net of unearned income	$	7,861,508	$	7,042,311	$	819,197			11.6	%
Deposits, by type:
Noninterest-bearing demand	$	1,611,909	$	1,414,770	$	197,139			13.9	%
Interest-bearing demand		1,471,398		1,361,379		110,019			8.1	%
Savings deposits		1,965,523		1,866,042		99,481			5.3	%
Time deposits		3,090,837		2,788,797		302,040			10.8	%
Total Deposits	$	8,139,667	$	7,430,988	$	708,679			9.5	%

FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended
	June 30						Variance
	2005			2004			$			%
	(in thousands, except per-share data)
Interest Income:
Loans, including fees	$	123,309		$	96,859		$	26,450			27.3	%
Investment securities:
Taxable		18,257			19,652			(1,395	)		-7.1	%
Tax-exempt		2,843			2,540			303			11.9	%
Dividends		1,155			992			163			16.4	%
Loans held for sale		2,699			1,962			737			37.6	%
Other interest income		348			19			329			1731.6	%
Total Interest Income		148,611			122,024			26,587			21.8	%
Interest Expense:
Deposits		31,104			22,345			8,759			39.2	%
Short-term borrowings		7,914			3,135			4,779			152.4	%
Long-term debt		9,668			7,838			1,830			23.3	%
Total Interest Expense		48,686			33,318			15,368			46.1	%
Net Interest Income		99,925			88,706			11,219			12.6	%
Provision for Loan Losses		725			800			(75	)		-9.4	%
Net Interest Income after Provision		99,200			87,906			11,294			12.8	%
Other Income:
Investment management and trust services		8,966			8,637			329			3.8	%
Service charges on deposit accounts		9,960			9,929			31			0.3	%
Other service charges and fees		7,142			4,970			2,172			43.7	%
Gain on sale of mortgage loans		6,290			6,050			240			4.0	%
Investment securities gains		1,418			5,349			(3,931	)		-73.5	%
Other		4,539			1,727			2,812			162.8	%
Total Other Income		38,315			36,662			1,653			4.5	%
Other Expenses:
Salaries and employee benefits		45,152			41,834			3,318			7.9	%
Net occupancy expense		6,549			5,859			690			11.8	%
Equipment expense		2,888			2,749			139			5.1	%
Data processing		3,321			2,868			453			15.8	%
Advertising		2,276			1,914			362			18.9	%
Intangible amortization		1,168			1,356			(188	)		-13.9	%
Other		16,752			13,957			2,795			20.0	%
Total Other Expenses		78,106			70,537			7,569			10.7	%
Income Before Income Taxes		59,409			54,031			5,378			10.0	%
Income Taxes		17,829			16,167			1,662			10.3	%
Net Income	$	41,580		$	37,864		$	3,716			9.8	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.27		$	0.25		$	0.02			8.0	%
Diluted		0.27			0.25			0.02			8.0	%
Cash dividends	$	0.145		$	0.132		$	0.013			9.8	%
Book value		7.81			7.27			0.54			7.4	%
Tangible book value		5.28			5.33			(0.05	)		-0.9	%
Weighted average shares (basic)		154,509			152,647			1,862			1.2	%
Weighted average shares (diluted)		156,230			154,356			1,874			1.2	%
Shares outstanding, end of period		152,956			152,350			606			0.4	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.46	%		1.44	%
Return on average equity		13.95	%		13.82	%
Return on average equity (tangible)		20.64	%		17.84	%
Net interest margin		3.92	%		3.73	%
Efficiency ratio		55.3	%		56.5	%
Average equity to average assets		10.5	%		10.4	%

FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended June 30
				2005									2004
	Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	7,823,737		$	124,080			6.36	%	$	6,946,626		$	97,705			5.65	%
Taxable investment securities		1,965,683			18,257			3.71	%		2,299,834			19,652			3.39	%
Tax-exempt investment securities		341,044			4,227			4.96	%		272,891			3,822			5.60	%
Equity securities		129,980			1,341			4.14	%		137,528			1,196			3.49	%
Total Investment Securities		2,436,707			23,825			3.91	%		2,710,253			24,670			3.62	%
Loans held for sale		152,502			2,699			7.08	%		115,658			1,962			6.79	%
Other interest-earning assets		47,819			348			2.90	%		6,719			19			1.09	%
Total Interest-earning Assets		10,460,765			150,952			5.79	%		9,779,256			124,356			5.10	%
Noninterest-earning assets:
Cash and due from banks		342,592									332,651
Premises and equipment		152,123									130,737
Other assets		552,807									447,700
Less: allowance for loan losses		(91,209	)								(86,800	)
Total Assets	$	11,417,078								$	10,603,544
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,484,772		$	3,309			0.89	%	$	1,362,761		$	1,634			0.48	%
Savings deposits		1,986,909			5,859			1.18	%		1,857,175			2,637			0.57	%
Time deposits		3,019,818			21,936			2.91	%		2,841,569			18,074			2.56	%
Total Interest-bearing Deposits		6,491,499			31,104			1.92	%		6,061,505			22,345			1.48	%
Short-term borrowings		1,180,975			7,914			2.68	%		1,282,657			3,135			0.98	%
Long-term debt		841,650			9,668			4.59	%		656,803			7,838			4.70	%
Total Interest-bearing Liabilities		8,514,124			48,686			2.29	%		8,000,965			33,318			1.67	%
Noninterest-bearing liabilities:
Demand deposits		1,567,611									1,386,770
Other		139,888									114,219
Total Liabilities		10,221,623									9,501,954
Shareholders’ equity		1,195,455									1,101,590
Total Liabilities and Shareholders’ Equity	$	11,417,078								$	10,603,544
Net interest income/net interest margin (fully taxable equivalent)					102,266			3.92	%					91,038			3.73	%
Tax equivalent adjustment					(2,341	)								(2,332	)
Net interest income				$	99,925								$	88,706

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate.

FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Six Months Ended
	June 30						Variance
	2005			2004			$			%
	(in thousands, except per-share data)
Interest Income:
Loans, including fees	$	239,937		$	185,325		$	54,612			29.5	%
Investment securities:
Taxable		36,518			41,388			(4,870	)		-11.8	%
Tax-exempt		5,692			5,073			619			12.2	%
Dividends		2,239			1,944			295			15.2	%
Loans held for sale		4,511			2,201			2,310			105.0	%
Other interest income		524			29			495			1706.9	%
Total Interest Income		289,421			235,960			53,461			22.7	%
Interest Expense:
Deposits		58,912			42,695			16,217			38.0	%
Short-term borrowings		14,738			6,462			8,276			128.1	%
Long-term debt		17,598			15,130			2,468			16.3	%
Total Interest Expense		91,248			64,287			26,961			41.9	%
Net Interest Income		198,173			171,673			26,500			15.4	%
Provision for Loan Losses		1,525			2,540			(1,015	)		-40.0	%
Net Interest Income after Provision		196,648			169,133			27,515			16.3	%
Other Income:
Investment management and trust services		17,985			17,282			703			4.1	%
Service charges on deposit accounts		19,292			19,434			(142	)		-0.7	%
Other service charges and fees		12,698			9,996			2,702			27.0	%
Gain on sale of mortgage loans		12,339			7,764			4,575			58.9	%
Investment securities gains		4,733			11,177			(6,444	)		-57.7	%
Other		7,121			3,047			4,074			133.7	%
Total Other Income		74,168			68,700			5,468			8.0	%
Other Expenses:
Salaries and employee benefits		89,353			78,592			10,761			13.7	%
Net occupancy expense		14,047			11,377			2,670			23.5	%
Equipment expense		5,958			5,390			568			10.5	%
Data processing		6,490			5,687			803			14.1	%
Advertising		4,249			3,442			807			23.4	%
Intangible amortization		2,347			2,347			—			0.0	%
Other		29,393			25,974			3,419			13.2	%
Total Other Expenses		151,837			132,809			19,028			14.3	%
Income Before Income Taxes		118,979			105,024			13,955			13.3	%
Income Taxes		35,868			31,314			4,554			14.5	%
Net Income	$	83,111		$	73,710		$	9,401			12.8	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.53		$	0.50		$	0.03			6.0	%
Diluted		0.53			0.50			0.03			6.0	%
Cash dividends	$	0.277		$	0.254		$	0.023			9.1	%
Book value		7.81			7.27			0.54			7.4	%
Tangible book value		5.28			5.33			(0.05	)		-0.9	%
Weighted average shares (basic)		155,922			147,380			8,542			5.8	%
Weighted average shares (diluted)		157,750			148,854			8,896			6.0	%
Shares outstanding, end of period		152,956			152,350			606			0.4	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.48	%		1.46	%
Return on average equity		13.71	%		14.45	%
Return on average equity (tangible)		20.09	%		17.89	%
Net interest margin		3.94	%		3.76	%
Efficiency ratio		54.9	%		55.8	%
Average equity to average assets		10.8	%		10.1	%

FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Six Months Ended June 30
				2005									2004
	Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	7,749,797		$	241,461			6.28	%	$	6,567,307		$	187,000			5.72	%
Taxable investment securities		1,974,723			36,518			3.69	%		2,351,126			41,388			3.49	%
Tax-exempt investment securitites		338,215			8,481			5.02	%		274,517			7,631			5.56	%
Equity securities		126,907			2,611			4.13	%		134,540			2,389			3.56	%
Total Investment Securities		2,439,845			47,610			3.90	%		2,760,183			51,408			3.70	%
Mortgage loans held for sale		132,670			4,511			6.80	%		65,435			2,201			6.73	%
Short-term investments		38,313			524			2.74	%		5,231			29			1.12	%
Total Interest-earning Assets		10,360,625			294,106			5.71	%		9,398,156			240,638			5.14	%
Noninterest-earning assets:
Cash and due from banks		332,747									316,720
Premises and equipment		150,579									126,083
Other assets		561,120									381,826
Less: allowance for loan losses		(90,851	)								(82,766	)
Total Assets	$	11,314,220								$	10,140,019
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,489,850		$	6,279			0.85	%	$	1,315,716		$	2,989			0.46	%
Savings deposits		1,949,573			10,324			1.07	%		1,808,639			5,143			0.57	%
Time deposits		3,008,161			42,309			2.84	%		2,636,657			34,563			2.64	%
Total Interest-bearing Deposits		6,447,584			58,912			1.84	%		5,761,012			42,695			1.49	%
Short-term borrowings		1,210,053			14,738			2.44	%		1,313,970			6,462			0.98	%
Long-term debt		761,992			17,598			4.64	%		613,439			15,130			4.85	%
Total Interest-bearing Liabilities		8,419,629			91,248			2.18	%		7,688,421			64,287			1.67	%
Noninterest-bearing liabilities:
Demand deposits		1,538,526									1,322,155
Other		133,554									103,785
Total Liabilities		10,091,709									9,114,361
Shareholders’ equity		1,222,511									1,025,658
Total Liabilities and Shareholders’ Equity	$	11,314,220								$	10,140,019
Net interest income/net interest margin (fully taxable equivalent)					202,858			3.94	%					176,351			3.76	%
Tax equivalent adjustment					(4,685	)								(4,678	)
Net interest income				$	198,173								$	171,673

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate.

FULTON FINANCIAL CORPORATION
CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	Quarter Ended				Variance
	June 30		March 31
	2005		2005		$			%
	(in thousands)
ASSETS
Cash and due from banks	$	358,581	$	336,039	$	22,542			6.7	%
Loans held for sale		237,713		163,004		74,709			45.8	%
Other interest-earning assets		22,600		84,123		(61,523	)		-73.1	%
Investment securities		2,429,365		2,385,358		44,007			1.8	%
Loans, net of allowance		7,771,106		7,657,174		113,932			1.5	%
Premises and equipment		153,598		149,492		4,106			2.7	%
Accrued interest receivable		43,819		42,214		1,605			3.8	%
Goodwill and intangible assets		386,795		388,260		(1,465	)		-0.4	%
Other assets		167,506		212,614		(45,108	)		-21.2	%
Total Assets	$	11,571,083	$	11,418,278	$	152,805			1.3	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	8,139,667	$	7,981,147	$	158,520			2.0	%
Short-term borrowings		1,134,583		1,265,360		(130,777	)		-10.3	%
Long-term debt		951,745		773,129		178,616			23.1	%
Other liabilities		151,013		163,123		(12,110	)		-7.4	%
Total Liabilities		10,377,008		10,182,759		194,249			1.9	%
Shareholders’ equity		1,194,075		1,235,519		(41,444	)		-3.4	%
Total Liabilities and Shareholders’ Equity	$	11,571,083	$	11,418,278	$	152,805			1.3	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	1,991,480	$	1,975,981	$	15,499			0.8	%
Commercial — agricultural		322,791		319,647		3,144			1.0	%
Real estate — commercial mortgage		2,556,990		2,540,554		16,436			0.6	%
Real estate — residential mortgage		558,845		556,966		1,879			0.3	%
Real estate — construction		743,774		690,325		53,449			7.7	%
Real estate — home equity		1,141,749		1,110,126		31,623			2.8	%
Consumer		485,492		496,031		(10,539	)		-2.1	%
Leasing and other		60,387		57,671		2,716			4.7	%
Total Loans, net of unearned income	$	7,861,508	$	7,747,301	$	114,207			1.5	%
Deposits, by type:
Noninterest-bearing demand	$	1,611,909	$	1,579,400	$	32,509			2.1	%
Interest-bearing demand		1,471,398		1,479,124		(7,726	)		-0.5	%
Savings deposits		1,965,523		1,916,942		48,581			2.5	%
Time deposits		3,090,837		3,005,681		85,156			2.8	%
Total Deposits	$	8,139,667	$	7,981,147	$	158,520			2.0	%

FULTON FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended						Variance
	June 30			March 31
	2005			2005			$			%
					(in thousands)
Interest Income:
Loans, including fees	$	123,309		$	116,628		$	6,681			5.7	%
Investment securities:
Taxable		18,257			18,261			(4	)		0.0	%
Tax-exempt		2,843			2,849			(6	)		-0.2	%
Dividends		1,155			1,084			71			6.5	%
Loans held for sale		2,699			1,812			887			49.0	%
Other interest income		348			176			172			97.7	%
Total Interest Income		148,611			140,810			7,801			5.5	%
Interest Expense:
Deposits		31,104			27,808			3,296			11.9	%
Short-term borrowings		7,914			6,824			1,090			16.0	%
Long-term debt		9,668			7,930			1,738			21.9	%
Total Interest Expense		48,686			42,562			6,124			14.4	%
Net Interest Income		99,925			98,248			1,677			1.7	%
Provision for Loan Losses		725			800			(75	)		-9.4	%
Net Interest Income after Provision		99,200			97,448			1,752			1.8	%
Other Income:
Investment management and trust services		8,966			9,019			(53	)		-0.6	%
Service charges on deposit accounts		9,960			9,332			628			6.7	%
Other service charges and fees		7,142			5,556			1,586			28.5	%
Gain on sale of mortgage loans		6,290			6,049			241			4.0	%
Investment securities gains		1,418			3,315			(1,897	)		-57.2	%
Other		4,539			2,582			1,957			75.8	%
Total Other Income		38,315			35,853			2,462			6.9	%
Other Expenses:
Salaries and employee benefits		45,152			44,201			951			2.2	%
Net occupancy expense		6,549			7,498			(949	)		-12.7	%
Equipment expense		2,888			3,070			(182	)		-5.9	%
Data processing		3,321			3,169			152			4.8	%
Advertising		2,276			1,973			303			15.4	%
Intangible amortization		1,168			1,179			(11	)		-0.9	%
Other		16,752			12,641			4,111			32.5	%
Total Other Expenses		78,106			73,731			4,375			5.9	%
Income Before Income Taxes		59,409			59,570			(161	)		-0.3	%
Income Taxes		17,829			18,039			(210	)		-1.2	%
Net Income	$	41,580		$	41,531		$	49			0.1	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.27		$	0.26		$	0.01			3.8	%
Diluted		0.27			0.26			0.01			3.8	%
Cash dividends	$	0.145		$	0.132		$	0.013			9.8	%
Book value		7.81			7.85			(0.04	)		-0.5	%
Tangible book value		5.28			5.38			(0.10	)		-1.9	%
Weighted average shares (basic)		154,509			157,351			(2,842	)		-1.8	%
Weighted average shares (diluted)		156,230			159,289			(3,059	)		-1.9	%
Shares outstanding, end of period		152,956			157,340			(4,384	)		-2.8	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.46	%		1.50	%
Return on average equity		13.95	%		13.48	%
Return on average equity (tangible)		20.64	%		19.56	%
Net interest margin		3.92	%		3.95	%
Efficiency ratio		55.3	%		54.5	%
Average equity to average assets		10.5	%		11.1	%

FULTON FINANCIAL CORPORATION
AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended
	June 30, 2005									March 31, 2005
	Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	7,823,737		$	124,080			6.36	%	$	7,675,034		$	117,389			6.19	%
Taxable investment securities		1,965,683			18,257			3.71	%		1,983,864			18,261			3.68	%
Tax-exempt investment securities		341,044			4,227			4.96	%		335,355			4,246			5.07	%
Equity securities		129,980			1,341			4.14	%		123,800			1,270			4.13	%
Total Investment Securities		2,436,707			23,825			3.91	%		2,443,019			23,777			3.89	%
Mortgage loans held for sale		152,502			2,699			7.08	%		112,619			1,812			6.43	%
Short-term investments		47,819			348			2.90	%		28,699			176			2.48	%
Total Interest-earning Assets		10,460,765			150,952			5.79	%		10,259,371			143,154			5.64	%
Noninterest-earning assets:
Cash and due from banks		342,592									322,793
Premises and equipment		152,123									149,017
Other assets		552,807									569,527
Less: allowance for loan losses		(91,209	)								(90,489	)
Total Assets	$	11,417,078								$	11,210,219
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,484,772		$	3,309			0.89	%	$	1,494,984		$	2,970			0.81	%
Savings deposits		1,986,909			5,859			1.18	%		1,911,820			4,466			0.95	%
Time deposits		3,019,818			21,936			2.91	%		2,996,377			20,372			2.76	%
Total Interest-bearing Deposits		6,491,499			31,104			1.92	%		6,403,181			27,808			1.76	%
Short-term borrowings		1,180,975			7,914			2.68	%		1,239,454			6,824			2.23	%
Long-term debt		841,650			9,668			4.59	%		681,450			7,930			4.72	%
Total Interest-bearing Liabilities		8,514,124			48,686			2.29	%		8,324,085			42,562			2.07	%
Noninterest-bearing liabilities:
Demand deposits		1,567,611									1,509,118
Other		139,888									127,148
Total Liabilities		10,221,623									9,960,351
Shareholders’ equity		1,195,455									1,249,868
Total Liabilities and Shareholders’ Equity	$	11,417,078								$	11,210,219
Net interest income/net interest margin (fully taxable equivalent)					102,266			3.92	%					100,592			3.95	%
Tax equivalent adjustment					(2,341	)								(2,344	)
Net interest income				$	99,925								$	98,248

(1) Presented on a tax-equivalent basis using a 35% Federal tax rate.

FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)

	Quarter Ended						Six Months Ended
	June 30						June 30
	2005			2004			2005			2004
	(dollars in thousands)
Gross charge-offs	$	1,660		$	1,627		$	3,479		$	4,315
Recoveries		1,210			1,183			2,729			2,702
Net Charge-offs	$	450		$	444		$	750		$	1,613
Net charge-offs to average loans		0.02	%		0.03	%		0.02	%		0.05	%
Non-accrual loans	$	20,820		$	21,961
Accruing loans 90+ days overdue		7,453			9,314
Other real estate owned		3,478			1,119
Total Non-Performing Assets	$	31,751		$	32,394
Non-accrual loans to total loans		0.26	%		0.31	%
Non-performing assets to total loans and OREO		0.40	%		0.46	%
Non-performing assets to total assets		0.27	%		0.31	%
Allowance for loan losses to loans outstanding		1.15	%		1.23	%

	Quarter Ended
	June 30			March 31
	2005			2005
	(dollars in thousands)
Gross charge-offs	$	1,660		$	1,819
Recoveries		1,210			1,519
Net Charge-offs	$	450		$	300
Net charge-offs to average loans		0.02	%		0.02	%
Non-accrual Loans	$	20,820		$	19,232
Accruing loans 90+ days overdue		7,453			6,545
Other real estate owned		3,478			3,244
Total Non-Performing Assets	$	31,751		$	29,021
Non-accrual loans to total loans		0.26	%		0.25	%
Non-performing assets to total loans and OREO		0.40	%		0.37	%
Non-performing assets to total assets		0.27	%		0.25	%
Allowance for loan losses to loans outstanding		1.15	%		1.16	%