Fulton Financial (FULT) 8-K Fulton Financial reports third quarter net income

Exhibit 99.2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended
	September 30				Variance
	2005		2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	164,113	$	126,947	$	37,166			29.3	%
Interest expense		57,617		34,446		23,171			67.3	%
Net Interest Income		106,496		92,501		13,995			15.1	%
Provision for loan losses		815		1,125		(310	)		-27.6	%
Investment securities gains		905		3,336		(2,431	)		-72.9	%
Other income		35,247		31,657		3,590			11.3	%
Other expenses		81,537		74,036		7,501			10.1	%
Income Before Income Taxes		60,296		52,333		7,963			15.2	%
Income taxes		18,168		16,324		1,844			11.3	%
Net Income	$	42,128	$	36,009	$	6,119			17.0	%
Fully taxable equivalent (FTE) net interest income	$	109,059	$	94,876	$	14,183			14.9	%
PER-SHARE DATA:
Net income:
Basic	$	0.27	$	0.24	$	0.03			12.5	%
Diluted		0.27		0.23		0.04			17.4	%
Cash dividends		0.145		0.132		0.013			9.8	%
ENDING BALANCES:
Total assets	$	12,305,927	$	10,570,642	$	1,735,285			16.4	%
Loans, net of unearned income		8,325,683		7,213,162		1,112,521			15.4	%
Deposits		8,816,021		7,460,070		1,355,951			18.2	%
Short-term borrowings		1,165,293		1,188,464		(23,171	)		-1.9	%
Long-term debt		897,944		666,781		231,163			34.7	%
Shareholders’ equity		1,275,206		1,129,849		145,357			12.9	%
AVERAGE BALANCES:
Total assets	$	12,182,655	$	10,547,927	$	1,634,728			15.5	%
Loans, net of unearned income		8,234,531		7,159,211		1,075,320			15.0	%
Deposits		8,703,395		7,461,511		1,241,884			16.6	%
Short-term borrowings		1,115,122		1,208,379		(93,257	)		-7.7	%
Long-term debt		952,372		654,969		297,403			45.4	%
Shareholders’ equity		1,278,102		1,103,517		174,585			15.8	%

NOTE: All financial information for periods prior to the quarter ended September 30, 2005 has been restated for the impact of adopting Statement of Financial Accounting Standards No. 123R, “Share-Based Payment”. Statement 123R requires the recognition of compensation expense for stock options.

1

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Nine Months Ended
	September 30				Variance
	2005		2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	453,534	$	362,907	$	90,627			25.0	%
Interest expense		148,865		98,733		50,132			50.8	%
Net Interest Income		304,669		264,174		40,495			15.3	%
Provision for loan losses		2,340		3,665		(1,325	)		-36.2	%
Investment securities gains		5,638		14,513		(8,875	)		-61.2	%
Other income		104,682		89,180		15,502			17.4	%
Other expenses		233,554		206,977		26,577			12.8	%
Income Before Income Taxes		179,095		157,225		21,870			13.9	%
Income taxes		53,927		47,638		6,289			13.2	%
Net Income	$	125,168	$	109,587	$	15,581			14.2	%
Fully taxable equivalent (FTE) net interest income	$	311,919	$	271,227	$	40,692			15.0	%
PER-SHARE DATA:
Net income:
Basic	$	0.80	$	0.74	$	0.06			8.1	%
Diluted		0.79		0.73		0.06			8.2	%
Cash dividends		0.422		0.386		0.036			9.3	%
AVERAGE BALANCES:
Total assets	$	11,608,053	$	10,277,845	$	1,330,208			12.9	%
Loans, net of unearned income		7,902,614		6,766,049		1,136,565			16.8	%
Deposits		8,227,833		7,210,202		1,017,631			14.1	%
Short-term borrowings		1,178,061		1,278,517		(100,456	)		-7.9	%
Long-term debt		826,150		627,384		198,766			31.7	%
Shareholders’ equity		1,242,418		1,052,664		189,754			18.0	%

2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended				Variance
	September 30		June 30
	2005		2005		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	164,113	$	148,611	$	15,502			10.4	%
Interest expense		57,617		48,686		8,931			18.3	%
Net Interest Income		106,496		99,925		6,571			6.6	%
Provision for loan losses		815		725		90			12.4	%
Investment securities gains		905		1,418		(513	)		-36.2	%
Other income		35,247		36,897		(1,650	)		-4.5	%
Other expenses		81,537		78,189		3,348			4.3	%
Income Before Income Taxes		60,296		59,326		970			1.6	%
Income taxes		18,168		17,722		446			2.5	%
Net Income	$	42,128	$	41,604	$	524			1.3	%
Fully taxable equivalent (FTE) net interest income	$	109,059	$	102,267	$	6,792			6.6	%
PER-SHARE DATA:
Net income:
Basic	$	0.27	$	0.27	$	—			—
Diluted		0.27		0.27		—			—
Cash dividends		0.145		0.145		—			—
ENDING BALANCES:
Total assets	$	12,305,927	$	11,572,823	$	733,104			6.3	%
Loans, net of unearned income		8,325,683		7,861,508		464,175			5.9	%
Deposits		8,816,021		8,139,667		676,354			8.3	%
Short-term borrowings		1,165,293		1,134,583		30,710			2.7	%
Long-term debt		897,944		951,745		(53,801	)		-5.7	%
Shareholders’ equity		1,275,206		1,195,815		79,391			6.6	%
AVERAGE BALANCES:
Total assets	$	12,182,655	$	11,418,828	$	763,827			6.7	%
Loans, net of unearned income		8,234,531		7,823,737		410,794			5.3	%
Deposits		8,703,395		8,059,110		644,285			8.0	%
Short-term borrowings		1,115,122		1,180,975		(65,853	)		-5.6	%
Long-term debt		952,372		841,650		110,722			13.2	%
Shareholders’ equity		1,278,102		1,197,205		80,897			6.8	%

3

FULTON FINANCIAL CORPORATION

CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	September 30						Variance
	2005			2004			$			%
	(in thousands)
ASSETS
Cash and due from banks	$	403,032		$	305,695		$	97,337			31.8	%
Loans held for sale		233,977			150,452			83,525			55.5	%
Other interest-earning assets		95,472			12,566			82,906			659.8	%
Investment securities		2,489,575			2,343,686			145,889			6.2	%
Loans, net of unearned		8,325,683			7,213,162			1,112,521			15.4	%
Allowance for loan losses		(93,936	)		(86,827	)		(7,109	)		8.2	%
Net Loans		8,231,747			7,126,335			1,105,412			15.5	%
Premises and equipment		166,991			130,874			36,117			27.6	%
Accrued interest receivable		47,398			38,651			8,747			22.6	%
Goodwill and intangible assets		448,573			298,991			149,582			50.0	%
Other assets		189,162			163,392			25,770			15.8	%
Total Assets	$	12,305,927		$	10,570,642		$	1,735,285			16.4	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	8,816,021		$	7,460,070		$	1,355,951			18.2	%
Short-term borrowings		1,165,293			1,188,464			(23,171	)		-1.9	%
Long-term debt		897,944			666,781			231,163			34.7	%
Other liabilities		151,463			125,478			25,985			20.7	%
Total Liabilities		11,030,721			9,440,793			1,589,928			16.8	%
Shareholders’ equity		1,275,206			1,129,849			145,357			12.9	%
Total Liabilities and Shareholders’ Equity	$	12,305,927		$	10,570,642		$	1,735,285			16.4	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	2,049,330		$	1,848,058		$	201,272			10.9	%
Commercial — agricultural		327,249			316,323			10,926			3.5	%
Real estate — commercial mortgage		2,734,432			2,284,755			449,677			19.7	%
Real estate — residential mortgage		593,233			528,421			64,812			12.3	%
Real estate — construction		843,670			580,323			263,347			45.4	%
Real estate — home equity		1,183,596			1,053,333			130,263			12.4	%
Consumer		529,409			529,413			(4	)		0.0	%
Leasing and other		64,764			72,536			(7,772	)		-10.7	%
Total Loans, net of unearned income	$	8,325,683		$	7,213,162		$	1,112,521			15.4	%
Deposits, by type:
Noninterest-bearing demand	$	1,678,923		$	1,427,008		$	251,915			17.7	%
Interest-bearing demand		1,624,208			1,391,071			233,137			16.8	%
Savings deposits		2,152,771			1,889,543			263,228			13.9	%
Time deposits		3,360,119			2,752,448			607,671			22.1	%
Total Deposits	$	8,816,021		$	7,460,070		$	1,355,951			18.2	%

4

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended
	September 30						Variance
	2005			2004			$			%
	(in thousands, except per-share data)
Interest Income:
Loans, including fees	$	136,092		$	103,033		$	33,059			32.1	%
Investment securities:
Taxable		18,947			18,247			700			3.8	%
Tax-exempt		3,213			2,407			806			33.5	%
Dividends		1,125			1,035			90			8.7	%
Loans held for sale		4,194			2,199			1,995			90.7	%
Other interest income		542			26			516			1984.6	%
Total Interest Income		164,113			126,947			37,166			29.3	%
Interest Expense:
Deposits		38,480			22,644			15,836			69.9	%
Short-term borrowings		8,655			3,840			4,815			125.4	%
Long-term debt		10,482			7,962			2,520			31.7	%
Total Interest Expense		57,617			34,446			23,171			67.3	%
Net Interest Income		106,496			92,501			13,995			15.1	%
Provision for Loan Losses		815			1,125			(310	)		-27.6	%
Net Interest Income after Provision		105,681			91,376			14,305			15.7	%
Other Income:
Investment management and trust services		8,730			8,650			80			0.9	%
Service charges on deposit accounts		10,488			10,182			306			3.0	%
Other service charges and fees		5,808			5,367			441			8.2	%
Gain on sale of mortgage loans		7,624			5,694			1,930			33.9	%
Investment securities gains		905			3,336			(2,431	)		-72.9	%
Other		2,597			1,764			833			47.2	%
Total Other Income		36,152			34,993			1,159			3.3	%
Other Expenses:
Salaries and employee benefits		46,761			45,812			949			2.1	%
Net occupancy expense		7,459			6,159			1,300			21.1	%
Equipment expense		3,203			2,705			498			18.4	%
Data processing		3,100			2,915			185			6.3	%
Advertising		1,995			1,631			364			22.3	%
Intangible amortization		1,510			1,233			277			22.5	%
Other		17,509			13,581			3,928			28.9	%
Total Other Expenses		81,537			74,036			7,501			10.1	%
Income Before Income Taxes		60,296			52,333			7,963			15.2	%
Income Taxes		18,168			16,324			1,844			11.3	%
Net Income	$	42,128		$	36,009		$	6,119			17.0	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.27		$	0.24		$	0.03			12.5	%
Diluted		0.27			0.23			0.04			17.4	%
Cash dividends	$	0.145		$	0.132		$	0.013			9.8	%
Book value		8.12			7.47			0.65			8.7	%
Tangible book value		5.27			5.49			(0.22	)		-4.0	%
Weighted average shares (basic)		156,815			151,870			4,945			3.3	%
Weighted average shares (diluted)		158,677			153,508			5,169			3.4	%
Shares outstanding, end of period		156,953			151,254			5,699			3.8	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.37	%		1.36	%
Return on average equity		13.08	%		12.98	%
Return on average equity (tangible)		20.62	%		18.20	%
Net interest margin		3.92	%		3.88	%
Efficiency ratio		55.5	%		57.5	%
Average equity to average assets		10.5	%		10.5	%

5

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended September 30
				2005									2004
	Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	8,234,531		$	136,915			6.60	%	$	7,159,211		$	103,903			5.79	%
Taxable investment securities		2,015,378			18,947			3.74	%		2,037,040			18,247			3.56	%
Tax-exempt investment securities		387,233			4,761			4.92	%		262,962			3,618			5.50	%
Equity securities		137,873			1,317			3.80	%		138,264			1,329			3.83	%
Total Investment Securities		2,540,484			25,025			3.92	%		2,438,266			23,194			3.78	%
Loans held for sale		266,588			4,194			6.29	%		119,983			2,199			6.42	%
Other interest-earning assets		62,406			542			3.43	%		6,106			26			1.73	%
Total Interest-earning Assets		11,104,009			166,676			5.97	%		9,723,566			129,322			5.30	%
Noninterest-earning assets:
Cash and due from banks		370,531									326,204
Premises and equipment		164,447									130,776
Other assets		638,195									454,529
Less: allowance for loan losses		(94,527	)								(87,148	)
Total Assets	$	12,182,655								$	10,547,927
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,586,338		$	4,169			1.04	%	$	1,399,005		$	1,863			0.53	%
Savings deposits		2,162,030			7,640			1.40	%		1,868,650			2,972			0.63	%
Time deposits		3,303,240			26,671			3.20	%		2,764,597			17,809			2.56	%
Total Interest-bearing Deposits		7,051,608			38,480			2.16	%		6,032,252			22,644			1.49	%
Short-term borrowings		1,115,122			8,655			3.05	%		1,208,379			3,840			1.26	%
Long-term debt		952,372			10,482			4.33	%		654,969			7,962			4.84	%
Total Interest-bearing Liabilities		9,119,102			57,617			2.50	%		7,895,600			34,446			1.72	%
Noninterest-bearing liabilities:
Demand deposits		1,651,787									1,429,259
Other		133,664									119,551
Total Liabilities		10,904,553									9,444,410
Shareholders’ equity		1,278,102									1,103,517
Total Liabilities and Shareholders’ Equity	$	12,182,655								$	10,547,927
Net interest income/net interest margin (fully taxable equivalent)					109,059			3.92	%					94,876			3.88	%
Tax equivalent adjustment					(2,563	)								(2,375	)
Net interest income				$	106,496								$	92,501

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

6

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Nine Months Ended
	September 30						Variance
	2005			2004			$			%
	(in thousands, except per-share data)
Interest Income:
Loans, including fees	$	376,029		$	288,358		$	87,671			30.4	%
Investment securities:
Taxable		55,465			59,635			(4,170	)		-7.0	%
Tax-exempt		8,905			7,480			1,425			19.1	%
Dividends		3,364			2,979			385			12.9	%
Loans held for sale		8,705			4,400			4,305			97.8	%
Other interest income		1,066			55			1,011			1838.2	%
Total Interest Income		453,534			362,907			90,627			25.0	%
Interest Expense:
Deposits		97,392			65,339			32,053			49.1	%
Short-term borrowings		23,393			10,302			13,091			127.1	%
Long-term debt		28,080			23,092			4,988			21.6	%
Total Interest Expense		148,865			98,733			50,132			50.8	%
Net Interest Income		304,669			264,174			40,495			15.3	%
Provision for Loan Losses		2,340			3,665			(1,325	)		-36.2	%
Net Interest Income after Provision		302,329			260,509			41,820			16.1	%
Other Income:
Investment management and trust services		26,715			25,932			783			3.0	%
Service charges on deposit accounts		29,780			29,616			164			0.6	%
Other service charges and fees		18,506			15,363			3,143			20.5	%
Gain on sale of mortgage loans		19,963			13,458			6,505			48.3	%
Investment securities gains		5,638			14,513			(8,875	)		-61.2	%
Other		9,718			4,811			4,907			102.0	%
Total Other Income		110,320			103,693			6,627			6.4	%
Other Expenses:
Salaries and employee benefits		136,294			124,536			11,758			9.4	%
Net occupancy expense		21,506			17,536			3,970			22.6	%
Equipment expense		9,161			8,095		��	1,066			13.2	%
Data processing		9,590			8,602			988			11.5	%
Advertising		6,244			5,073			1,171			23.1	%
Intangible amortization		3,857			3,580			277			7.7	%
Other		46,902			39,555			7,347			18.6	%
Total Other Expenses		233,554			206,977			26,577			12.8	%
Income Before Income Taxes		179,095			157,225			21,870			13.9	%
Income Taxes		53,927			47,638			6,289			13.2	%
Net Income	$	125,168		$	109,587		$	15,581			14.2	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.80		$	0.74		$	0.06			8.1	%
Diluted		0.79			0.73			0.06			8.2	%
Cash dividends	$	0.422		$	0.386		$	0.036			9.3	%
Book value		8.12			7.47			0.65			8.7	%
Tangible book value		5.27			5.49			(0.22	)		-4.0	%
Weighted average shares (basic)		156,223			148,888			7,335			4.9	%
Weighted average shares (diluted)		158,142			150,466			7,676			5.1	%
Shares outstanding, end of period		156,953			151,254			5,699			3.8	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.44	%		1.42	%
Return on average equity		13.47	%		13.91	%
Return on average equity (tangible)		20.47	%		18.20	%
Net interest margin		3.93	%		3.80	%
Efficiency ratio		55.1	%		56.4	%
Average equity to average assets		10.7	%		10.2	%

7

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Nine Months Ended September 30
	2005									2004
	Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	7,902,614		$	378,377			6.40	%	$	6,766,049		$	290,904			5.75	%
Taxable investment securities		1,988,425			55,466			3.71	%		2,245,667			59,635			3.55	%
Tax-exempt investment securities		354,734			13,243			4.98	%		270,637			11,248			5.54	%
Equity securities		130,602			3,927			4.02	%		135,791			3,718			3.65	%
Total Investment Securities		2,473,761			72,636			3.91	%		2,652,095			74,601			3.73	%
Loans held for sale		188,337			8,705			6.16	%		83,749			4,400			7.02	%
Other interest-earning assets		46,432			1,066			3.05	%		5,525			55			1.33	%
Total Interest-earning Assets		10,611,144			460,784			5.80	%		9,507,418			369,960			5.19	%
Noninterest-earning assets:
Cash and due from banks		345,480									319,905
Premises and equipment		155,253									127,660
Other assets		588,265									407,099
Less: allowance for loan losses		(92,089	)								(84,237	)
Total Assets	$	11,608,053								$	10,277,845
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,522,366		$	10,448			0.92	%	$	1,343,681		$	4,852			0.48	%
Savings deposits		2,021,169			17,964			1.19	%		1,828,788			8,115			0.59	%
Time deposits		3,107,603			68,980			2.97	%		2,679,615			52,372			2.61	%
Total Interest-bearing Deposits		6,651,138			97,392			1.96	%		5,852,084			65,339			1.49	%
Short-term borrowings		1,178,061			23,393			2.63	%		1,278,517			10,302			1.08	%
Long-term debt		826,150			28,080			4.52	%		627,384			23,092			4.92	%
Total Interest-bearing Liabilities		8,655,349			148,865			2.29	%		7,757,985			98,733			1.70	%
Noninterest-bearing liabilities:
Demand deposits		1,576,695									1,358,118
Other		133,591									109,078
Total Liabilities		10,365,635									9,225,181
Shareholders’ equity		1,242,418									1,052,664
Total Liabilities and Shareholders’ Equity	$	11,608,053								$	10,277,845
Net interest income/net interest margin (fully taxable equivalent)					311,919			3.93	%					271,227			3.80	%
Tax equivalent adjustment					(7,250	)								(7,053	)
Net interest income				$	304,669								$	264,174

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

8

FULTON FINANCIAL CORPORATION

CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	Quarter Ended						Variance
	September 30			June 30
	2005			2005			$			%
				(in thousands)
ASSETS
Cash and due from banks	$	403,032		$	358,581		$	44,451			12.4	%
Loans held for sale		233,977			237,713			(3,736	)		-1.6	%
Other interest-earning assets		95,472			22,600			72,872			322.4	%
Investment securities		2,489,575			2,429,365			60,210			2.5	%
Loans, net of unearned		8,325,683			7,861,508			464,175			5.9	%
Allowance for loan losses		(93,936	)		(90,402	)		(3,534	)		3.9	%
Net Loans		8,231,747			7,771,106			460,641			5.9	%
Premises and equipment		166,991			153,598			13,393			8.7	%
Accrued interest receivable		47,398			43,819			3,579			8.2	%
Goodwill and intangible assets		448,573			386,795			61,778			16.0	%
Other assets		189,162			169,246			19,916			11.8	%
Total Assets	$	12,305,927		$	11,572,823		$	733,104			6.3	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	8,816,021		$	8,139,667		$	676,354			8.3	%
Short-term borrowings		1,165,293			1,134,583			30,710			2.7	%
Long-term debt		897,944			951,745			(53,801	)		-5.7	%
Other liabilities		151,463			151,013			450			0.3	%
Total Liabilities		11,030,721			10,377,008			653,713			6.3	%
Shareholders’ equity		1,275,206			1,195,815			79,391			6.6	%
Total Liabilities and Shareholders’ Equity	$	12,305,927		$	11,572,823		$	733,104			6.3	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	2,049,330		$	1,991,480		$	57,850			2.9	%
Commercial — agricultural		327,249			322,791			4,458			1.4	%
Real estate — commercial mortgage		2,734,432			2,556,990			177,442			6.9	%
Real estate — residential mortgage		593,233			558,845			34,388			6.2	%
Real estate — construction		843,670			743,774			99,896			13.4	%
Real estate — home equity		1,183,596			1,141,749			41,847			3.7	%
Consumer		529,409			485,488			43,921			9.0	%
Leasing and other		64,764			60,391			4,373			7.2	%
Total Loans, net of unearned income	$	8,325,683		$	7,861,508		$	464,175			5.9	%
Deposits, by type:
Noninterest-bearing demand	$	1,678,923		$	1,611,909		$	67,014			4.2	%
Interest-bearing demand		1,624,208			1,471,398			152,810			10.4	%
Savings deposits		2,152,771			1,965,523			187,248			9.5	%
Time deposits		3,360,119			3,090,837			269,282			8.7	%
Total Deposits	$	8,816,021		$	8,139,667		$	676,354			8.3	%

9

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended						Variance
	September 30			June 30
	2005			2005			$			%
				(in thousands)
Interest Income:
Loans, including fees	$	136,092		$	123,309		$	12,783			10.4	%
Investment securities:
Taxable		18,947			18,257			690			3.8	%
Tax-exempt		3,213			2,843			370			13.0	%
Dividends		1,125			1,155			(30	)		-2.6	%
Loans held for sale		4,194			2,699			1,495			55.4	%
Other interest income		542			348			194			55.7	%
Total Interest Income		164,113			148,611			15,502			10.4	%
Interest Expense:
Deposits		38,480			31,104			7,376			23.7	%
Short-term borrowings		8,655			7,914			741			9.4	%
Long-term debt		10,482			9,668			814			8.4	%
Total Interest Expense		57,617			48,686			8,931			18.3	%
Net Interest Income		106,496			99,925			6,571			6.6	%
Provision for Loan Losses		815			725			90			12.4	%
Net Interest Income after Provision		105,681			99,200			6,481			6.5	%
Other Income:
Investment management and trust services		8,730			8,966			(236	)		-2.6	%
Service charges on deposit accounts		10,488			9,960			528			5.3	%
Other service charges and fees		5,808			7,142			(1,334	)		-18.7	%
Gain on sale of mortgage loans		7,624			6,290			1,334			21.2	%
Investment securities gains		905			1,418			(513	)		-36.2	%
Other		2,597			4,539			(1,942	)		-42.8	%
Total Other Income		36,152			38,315			(2,163	)		-5.6	%
Other Expenses:
Salaries and employee benefits		46,761			45,235			1,526			3.4	%
Net occupancy expense		7,459			6,549			910			13.9	%
Equipment expense		3,203			2,888			315			10.9	%
Data processing		3,100			3,321			(221	)		-6.7	%
Advertising		1,995			2,276			(281	)		-12.3	%
Intangible amortization		1,510			1,168			342			29.3	%
Other		17,509			16,752			757			4.5	%
Total Other Expenses		81,537			78,189			3,348			4.3	%
Income Before Income Taxes		60,296			59,326			970			1.6	%
Income Taxes		18,168			17,722			446			2.5	%
Net Income	$	42,128		$	41,604		$	524			1.3	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.27		$	0.27		$	—			—
Diluted		0.27			0.27			—			—
Cash dividends	$	0.145		$	0.145		$	—			—
Book value		8.12			7.82			0.30			3.8	%
Tangible book value		5.27			5.29			(0.02	)		-0.4	%
Weighted average shares (basic)		156,815			154,509			2,306			1.5	%
Weighted average shares (diluted)		158,677			156,333			2,344			1.5	%
Shares outstanding, end of period		156,953			152,956			3,997			2.6	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.37	%		1.46	%
Return on average equity		13.08	%		13.94	%
Return on average equity (tangible)		20.62	%		20.98	%
Net interest margin		3.92	%		3.92	%
Efficiency ratio		55.5	%		55.4	%
Average equity to average assets		10.5	%		10.5	%

10

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended
	September 30, 2005									June 30, 2005
	Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	8,234,531		$	136,915			6.60	%	$	7,823,737		$	124,080			6.36	%
Taxable investment securities		2,015,378			18,947			3.74	%		1,965,683			18,257			3.71	%
Tax-exempt investment securities		387,233			4,761			4.92	%		341,044			4,227			4.96	%
Equity securities		137,873			1,317			3.80	%		129,980			1,341			4.14	%
Total Investment Securities		2,540,484			25,025			3.92	%		2,436,707			23,825			3.91	%
Loans held for sale		266,588			4,194			6.29	%		152,503			2,699			7.08	%
Other interest-earning assets		62,406			542			3.43	%		47,819			348			2.90	%
Total Interest-earning Assets		11,104,009			166,676			5.97	%		10,460,766			150,952			5.79	%
Noninterest-earning assets:
Cash and due from banks		370,531									342,592
Premises and equipment		164,447									152,123
Other assets		638,195									554,556
Less: allowance for loan losses		(94,527	)								(91,209	)
Total Assets	$	12,182,655								$	11,418,828
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,586,338		$	4,169			1.04	%	$	1,484,772		$	3,309			0.89	%
Savings deposits		2,162,030			7,640			1.40	%		1,986,909			5,859			1.18	%
Time deposits		3,303,240			26,671			3.20	%		3,019,818			21,936			2.91	%
Total Interest-bearing Deposits		7,051,608			38,480			2.16	%		6,491,499			31,104			1.92	%
Short-term borrowings		1,115,122			8,655			3.05	%		1,180,975			7,914			2.68	%
Long-term debt		952,372			10,482			4.33	%		841,650			9,668			4.59	%
Total Interest-bearing Liabilities		9,119,102			57,617			2.50	%		8,514,124			48,686			2.29	%
Noninterest-bearing liabilities:
Demand deposits		1,651,787									1,567,611
Other		133,664									139,888
Total Liabilities		10,904,553									10,221,623
Shareholders’ equity		1,278,102									1,197,205
Total Liabilities and Shareholders’ Equity	$	12,182,655								$	11,418,828
Net interest income/net interest margin (fully taxable equivalent)					109,059			3.92	%					102,266			3.92	%
Tax equivalent adjustment					(2,563	)								(2,341	)
Net interest income				$	106,496								$	99,925

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

11

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

	Quarter Ended						Nine Months Ended
	September 30						September 30
	2005			2004			2005			2004
	(dollars in thousands)
ALLOWANCE FOR LOAN LOSSES:
Balance at beginning of period	$	90,402		$	86,539		$	89,627		$	77,700
Loans charged off		(1,625	)		(2,056	)		(5,104	)		(6,289	)
Recoveries of loans previously charged off		1,236			1,019			3,965			3,639
Net loans charged-off		(389	)		(1,037	)		(1,139	)		(2,650	)
Provision for loan losses		815			1,125			2,340			3,665
Allowance purchased		3,108			200			3,108			8,112
Balance at end of period	$	93,936		$	86,827		$	93,936		$	86,827
Net charge-offs to average loans (annualized)		0.02	%		0.06	%		0.02	%		0.05	%
NON-PERFORMING ASSETS:
Nonaccrual loans	$	30,669		$	23,422
Accruing loans 90+ days overdue		13,350			10,962
Other real estate owned		4,042			1,325
Total Nonperforming Assets	$	48,061		$	35,709
ASSET QUALITY RATIOS:
Nonaccrual loans to total loans		0.37	%		0.32	%
Nonperforming assets to total loans and OREO		0.58	%		0.49	%
Nonperforming assets to total assets		0.39	%		0.34	%
Allowance for loan losses to loans outstanding		1.13	%		1.20	%
Allowance/nonperforming loans		213	%		253	%

	Quarter Ended
	September 30			June 30
	2005			2005
	(dollars in thousands)
ALLOWANCE FOR LOAN LOSSES:
Balance at beginning of period	$	90,402		$	90,127
Loans charged off		(1,625	)		(1,660	)
Recoveries of loans previously charged off		1,236			1,210
Net loans charged-off		(389	)		(450	)
Provision for loan losses		815			725
Allowance purchased		3,108			—
Balance at end of period	$	93,936		$	90,402
Net charge-offs to average loans (annualized)		0.02	%		0.02	%
NON-PERFORMING ASSETS:
Nonaccrual loans	$	30,669		$	20,820
Accruing loans 90+ days overdue		13,350			7,453
Other real estate owned		4,042			3,478
Total Nonperforming Assets	$	48,061		$	31,751
ASSET QUALITY RATIOS:
Nonaccrual loans to total loans		0.37	%		0.26	%
Nonperforming assets to total loans and OREO		0.58	%		0.40	%
Nonperforming assets to total assets		0.39	%		0.27	%
Allowance for loan losses to loans outstanding		1.13	%		1.15	%
Allowance/nonperforming loans		213	%		320	%

12

FULTON FINANCIAL CORPORATION

SOMERSET VALLEY BANK — ACQUIRED BALANCES (UNAUDITED)
JULY 1, 2005

NOTE: The following table presents a summary of the balances added to the Corporation as a result of its July 1, 2005 acquisition of Somerset Valley Bank. The balances presented include a preliminary allocation of the purchase price.

ASSETS
Cash and due from banks	$	20,035
Other interest-earning assets		61,046
Investment securities		124,916
Loans, net of unearned		304,768
Allowance for loan losses		(3,108	)
Net Loans		301,660
Premises and equipment		9,279
Accrued interest receivable		2,127
Goodwill and intangible assets		63,284
Other assets		8,442
Total Assets	$	590,789
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	473,379
Long-term debt		24,587
Other liabilities		2,301
Total Liabilities		500,267
Shareholders’ equity		90,522
Total Liabilities and Shareholders’ Equity	$	590,789
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial — industrial and financial	$	71,054
Real estate — commercial mortgage		140,311
Real estate — residential mortgage		28,970
Real estate — construction		33,949
Real estate — home equity		28,495
Consumer and other		1,989
Total Loans, net of unearned income	$	304,768
Deposits, by type:
Noninterest-bearing demand	$	65,943
Interest-bearing demand		86,965
Savings deposits		171,780
Time deposits		148,691
Total Deposits	$	473,379

13