Fulton Financial (FULT) 8-K Fulton Financial reports 2008 results

Exhibit 99.2

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

	December 31
	2008		2007		% Change
BALANCE SHEET DATA
Total assets	$	16,185,106	$	15,923,098		1.6	%
Loans, net of unearned income		12,042,620		11,204,424		7.5	%
Investment securities		2,724,841		3,153,552		(13.6	%)
Deposits		10,551,916		10,105,445		4.4	%
Shareholders’ equity		1,859,647		1,574,920		18.1	%

	Quarter Ended December 31									Year Ended December 31
	2008			2007			% Change			2008			2007			% Change
INCOME SUMMARY
Interest income	$	209,073		$	240,069			(12.9	%)	$	867,494		$	939,577			(7.7	%)
Interest expense		(76,732	)		(116,418	)		(34.1	%)		(343,346	)		(450,833	)		(23.8	%)
Net interest income		132,341			123,651			7.0	%		524,148			488,744			7.2	%
Provision for loan losses		(65,000	)		(6,800	)		855.9	%		(119,626	)		(15,063	)		694.2	%
Investment securities (losses) gains		(28,339	)		(537	)		N/M			(58,241	)		1,740			N/M
Gain on sale of credit card portfolio		—			—			N/A			13,910			—			N/A
Other income		38,750			35,748			8.4	%		155,387			146,284			6.2	%
Goodwill impairment		(90,000	)		—			N/A			(90,000	)		—			N/A
Other expenses		(100,874	)		(98,447	)		2.5	%		(406,625	)		(405,455	)		0.3	%
(Loss) Income before income taxes		(113,122	)		53,615			(311.0	%)		18,953			216,250			(91.2	%)
Income tax benefit (expense)		11,255			(15,436	)		(172.9	%)		(24,570	)		(63,532	)		(61.3	%)
Net (loss) income	$	(101,867	)	$	38,179			(366.8	%)	$	(5,617	)	$	152,718			(103.7	%)
Preferred stock dividends and discount accretion		(463	)		—			N/A			(463	)		—			N/A
Net (loss) income available to common shareholders	$	(102,330	)	$	38,179			(368.0	%)	$	(6,080	)	$	152,718			(104.0	%)
PER COMMON SHARE:
Net (loss) income:
Basic	$	(0.58	)	$	0.22			(363.6	%)	$	(0.03	)	$	0.88			(103.4	%)
Diluted		(0.58	)		0.22			(363.6	%)		(0.03	)		0.88			(103.4	%)
Cash dividends		0.15			0.15			—			0.600			0.598			0.3	%
Shareholders’ equity		8.47			9.08			(6.7	%)
Shareholders’ equity (tangible)		5.29			5.30			(0.2	%)
SELECTED FINANCIAL RATIOS:
Return on average assets		(2.51	%)		0.97	%					(0.04	%)		1.01	%
Return on average shareholders’ equity		(24.89	%)		9.72	%					(0.35	%)		9.98	%
Return on average shareholders’ equity (tangible)		(4.35	%)		17.44	%					9.29	%		18.16	%
Net interest margin		3.64	%		3.56	%					3.68	%		3.66	%
Efficiency ratio		56.57	%		59.09	%					56.31	%		61.19	%
Non-performing assets to total assets		1.35	%		0.76	%

N/M — Not meaningful 

N/A — Not applicable 

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

										% Change from
	December 31			December 31			September 30			December 31			September 30
	2008			2007			2008			2007			2008
ASSETS
Cash and due from banks	$	331,164		$	381,283		$	315,841			(13.1	%)		4.9	%
Loans held for sale		95,840			103,984			71,090			(7.8	%)		34.8	%
Other interest-earning assets		21,710			21,153			50,189			2.6	%		(56.7	%)
Investment securities		2,724,841			3,153,552			2,806,535			(13.6	%)		(2.9	%)
Loans, net of unearned income		12,042,620			11,204,424			11,823,529			7.5	%		1.9	%
Allowance for loan losses		(173,946	)		(107,547	)		(136,988	)		61.7	%		27.0	%
Net Loans		11,868,674			11,096,877			11,686,541			7.0	%		1.6	%
Premises and equipment		202,657			193,296			199,464			4.8	%		1.6	%
Accrued interest receivable		58,566			73,435			62,018			(20.2	%)		(5.6	%)
Goodwill and intangible assets		557,833			654,908			649,635			(14.8	%)		(14.1	%)
Other assets		323,821			244,610			294,832			32.4	%		9.8	%
Total Assets	$	16,185,106		$	15,923,098		$	16,136,145			1.6	%		0.3	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	10,551,916		$	10,105,445		$	9,916,555			4.4	%		6.4	%
Short-term borrowings		1,762,770			2,383,944			2,589,966			(26.1	%)		(31.9	%)
Federal Home Loan Bank advances and long-term debt		1,787,797			1,642,133			1,819,889			8.9	%		(1.8	%)
Other liabilities		222,976			216,656			205,825			2.9	%		8.3	%
Total Liabilities		14,325,459			14,348,178			14,532,235			(0.2	%)		(1.4	%)
Shareholders’ equity		1,859,647			1,574,920			1,603,910			18.1	%		15.9	%
Total Liabilities and Shareholders’ Equity	$	16,185,106		$	15,923,098		$	16,136,145			1.6	%		0.3	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate — commercial mortgage	$	4,082,755		$	3,502,282		$	3,897,703			16.6	%		4.7	%
Commercial — industrial, financial and agricultural		3,635,544			3,427,085			3,554,615			6.1	%		2.3	%
Real estate — home equity		1,695,671			1,501,231			1,647,245			13.0	%		2.9	%
Real estate — construction		1,196,050			1,342,923			1,277,552			(10.9	%)		(6.4	%)
Real estate — residential mortgage		980,022			851,577			979,486			15.1	%		0.1	%
Consumer		365,419			500,708			387,849			(27.0	%)		(5.8	%)
Leasing and other		87,159			78,618			79,079			10.9	%		10.2	%
Total Loans, net of unearned income	$	12,042,620		$	11,204,424		$	11,823,529			7.5	%		1.9	%
Deposits, by type:
Noninterest-bearing demand	$	1,653,440		$	1,722,211		$	1,690,499			(4.0	%)		(2.2	%)
Interest-bearing demand		1,789,833			1,715,315			1,690,330			4.3	%		5.9	%
Savings deposits		2,010,526			2,131,374			2,166,998			(5.7	%)		(7.2	%)
Time deposits		5,098,117			4,536,545			4,368,728			12.4	%		16.7	%
Total Deposits	$	10,551,916		$	10,105,445		$	9,916,555			4.4	%		6.4	%
Short-term borrowings, by type:
Federal funds purchased	$	1,147,673		$	1,057,335		$	1,326,873			8.5	%		(13.5	%)
Short-term promissory notes		356,788			443,002			460,512			(19.5	%)		(22.5	%)
Customer repurchase agreements		255,796			228,061			222,415			12.2	%		15.0	%
Other short-term borrowings		2,513			655,546			580,166			(99.6	%)		(99.6	%)
Total Short-term borrowings	$	1,762,770		$	2,383,944		$	2,589,966			(26.1	%)		(31.9	%)

2

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

	Quarter Ended									% Change from
	December 31		��	December 31			September 30			December 31			September 30			Year Ended December 31
	2008			2007			2008			2007			2008			2008			2007			% Change
Interest Income:
Interest Income	$	209,073		$	240,069		$	213,809			(12.9	%)		(2.2	%)	$	867,494		$	939,577			(7.7	%)
Interest Expense		76,732			116,418			79,791			(34.1	%)		(3.8	%)		343,346			450,833			(23.8	%)
Net Interest Income		132,341			123,651			134,018			7.0	%		(1.3	%)		524,148			488,744			7.2	%
Provision for Loan Losses		65,000			6,800			26,700			855.9	%		143.4	%		119,626			15,063			694.2	%
Net Interest Income after Provision		67,341			116,851			107,318			(42.4	%)		(37.3	%)		404,522			473,681			(14.6	%)
Other Income:
Service charges on deposit accounts		16,177			13,355			16,177			21.1	%		—			61,640			46,500			32.6	%
Other service charges and fees		8,927			8,405			9,598			6.2	%		(7.0	%)		36,247			32,151			12.7	%
Investment management and trust services		7,541			9,291			8,045			(18.8	%)		(6.3	%)		32,734			38,665			(15.3	%)
Gains on sale of mortgage loans		3,085			2,181			2,266			41.4	%		36.1	%		10,332			14,294			(27.7	%)
Investment securities (losses) gains		(28,339	)		(537	)		(9,501	)		N/M			(198.3	%)		(58,241	)		1,740			N/M
Gain on sale of credit card portfolio		—			—			—			N/A			N/A			13,910			—			N/A
Other		3,020			2,516			4,230			20.0	%		(28.6	%)		14,434			14,674			(1.6	%)
Total Other Income		10,411			35,211			30,815			(70.4	%)		(66.2	%)		111,056			148,024			(25.0	%)
Other Expenses:
Salaries and employee benefits		48,771			53,173			55,310			(8.3	%)		(11.8	%)		213,557			217,526			(1.8	%)
Net occupancy expense		11,240			10,002			10,237			12.4	%		9.8	%		42,239			39,965			5.7	%
Operating risk loss		5,200			767			3,480			578.4	%		49.4	%		24,308			27,229			(10.7	%)
Marketing		3,746			3,465			3,097			8.1	%		21.0	%		13,267			11,334			17.1	%
Equipment expense		3,425			3,303			3,061			3.7	%		11.9	%		13,332			13,892			(4.0	%)
Data processing		3,209			3,205			3,242			0.1	%		(1.0	%)		12,813			12,755			0.5	%
Intangible amortization		1,776			2,158			1,730			(17.7	%)		2.7	%		7,162			8,334			(14.1	%)
Goodwill impairment		90,000			—			—			N/A			N/A			90,000			—			N/A
Other		23,507			22,374			19,198			5.1	%		22.4	%		79,947			74,420			7.4	%
Total Other Expenses		190,874			98,447			99,355			93.9	%		92.1	%		496,625			405,455			22.5	%
(Loss) Income Before Income Taxes		(113,122	)		53,615			38,778			(311.0	%)		(391.7	%)		18,953			216,250			(91.2	%)
Income tax (benefit) expense		(11,255	)		15,436			9,702			(172.9	%)		(216.0	%)		24,570			63,532			(61.3	%)
Net (Loss) Income	$	(101,867	)	$	38,179		$	29,076			(366.8	%)		(450.3	%)	$	(5,617	)	$	152,718			(103.7	%)
Preferred stock dividends and discount accretion		(463	)		—			—			N/A			N/A			(463	)		—			N/A
Net (loss) income available to common shareholders	$	(102,330	)	$	38,179		$	29,076			(368.0	%)		(451.9	%)	$	(6,080	)	$	152,718			(104.0	%)
PER COMMON SHARE:
Net (loss) income:
Basic	$	(0.58	)	$	0.22		$	0.17			(363.6	%)		(441.2	%)	$	(0.03	)	$	0.88			(103.4	%)
Diluted		(0.58	)		0.22			0.17			(363.6	%)		(441.2	%)		(0.03	)		0.88			(103.4	%)
Cash dividends	$	0.15		$	0.15		$	0.15			—			—		$	0.600		$	0.598			0.3	%
Shareholders’ equity		8.47			9.08			9.18			(6.7	%)		(7.7	%)
Shareholders’ equity (tangible)		5.29			5.30			5.41			(0.2	%)		(2.2	%)
Weighted average shares (basic)		174,889			173,416			174,463			0.8	%		0.2	%		174,236			173,295			0.5	%
Weighted average shares (diluted)		175,255			174,155			174,912			0.6	%		0.2	%		174,728			174,386			0.2	%
Shares outstanding, end of period		175,044			173,503			174,687			0.9	%		0.2	%
SELECTED FINANCIAL RATIOS:
Return on average assets		(2.51	%)		0.97	%		0.73	%								(0.04	%)		1.01	%
Return on average shareholders’ equity		(24.89	%)		9.72	%		7.25	%								(0.35	%)		9.98	%
Return on average shareholders’ equity (tangible)		(4.35	%)		17.44	%		12.72	%								9.29	%		18.16	%
Net interest margin		3.64	%		3.56	%		3.74	%								3.68	%		3.66	%
Efficiency ratio		56.57	%		59.09	%		54.69	%								56.31	%		61.19	%

N/M — Not meaningful 

N/A — Not applicable 

3

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

	Quarter Ended
	December 31, 2008									December 31, 2007									September 30, 2008
	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	$	11,960,067		$	178,096			5.93	%	$	11,082,957		$	204,281			7.32	%	$	11,696,841		$	181,562			6.18	%
Taxable investment securities		2,086,808			26,106			4.72	%		2,348,449			28,420			4.84	%		2,117,207			26,025			4.70	%
Tax-exempt investment securities		516,045			7,073			5.48	%		494,790			6,462			5.22	%		509,994			6,944			5.45	%
Equity securities		154,660			797			2.05	%		201,554			2,445			4.84	%		168,690			1,614			3.82	%
Total Investment Securities		2,757,513			33,976			4.71	%		3,044,793			37,327			4.90	%		2,795,891			34,583			4.78	%
Loans held for sale		64,096			975			6.08	%		101,788			1,730			6.79	%		101,319			1,539			6.08	%
Other interest-earning assets		23,889			124			2.08	%		24,136			291			4.78	%		19,013			142			2.94	%
Total Interest-earning Assets		14,805,565			213,171			5.70	%		14,253,674			243,629			6.80	%		14,613,064			217,826			5.91	%
Noninterest-earning assets:
Cash and due from banks		317,571									323,490									322,550
Premises and equipment		200,918									191,502									197,895
Other assets		960,606									907,267									933,303
Less: allowance for loan losses		(150,266	)								(110,922	)								(123,865	)
Total Assets	$	16,134,394								$	15,565,011								$	15,942,947
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,727,874		$	2,630			0.61	%	$	1,721,831		$	6,598			1.52	%	$	1,734,198		$	3,166			0.73	%
Savings deposits		2,070,931			6,124			1.18	%		2,179,753			12,046			2.19	%		2,192,747			6,633			1.20	%
Time deposits		4,818,068			41,553			3.43	%		4,603,944			54,341			4.68	%		4,308,903			37,393			3.45	%
Total Interest-bearing Deposits		8,616,873			50,307			2.32	%		8,505,528			72,985			3.40	%		8,235,848			47,192			2.28	%
Short-term borrowings		2,251,571			5,998			1.05	%		2,020,751			22,249			4.33	%		2,432,109			12,877			2.08	%
Federal Home Loan Bank advances and long-term debt		1,798,688			20,427			4.53	%		1,624,613			21,184			5.19	%		1,819,897			19,722			4.32	%
Total Interest-bearing Liabilities		12,667,132			76,732			2.41	%		12,150,892			116,418			3.80	%		12,487,854			79,791			2.54	%
Noninterest-bearing liabilities:
Demand deposits		1,643,118									1,675,528									1,669,908
Other		196,004									180,907									190,012
Total Liabilities		14,506,254									14,007,327									14,347,774
Shareholders’ equity		1,628,140									1,557,684									1,595,173
Total Liabilities and Shareholders’ Equity	$	16,134,394								$	15,565,011								$	15,942,947
Net interest income/net interest margin (fully taxable equivalent)					136,439			3.64	%					127,211			3.56	%					138,035			3.74	%
Tax equivalent adjustment					(4,098	)								(3,560	)								(4,017	)
Net interest income				$	132,341								$	123,651								$	134,018

(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
	2008		2007		2008		2007			2008
Loans, by type:
Real estate — commercial mortgage	$	3,994,730	$	3,438,386	$	3,820,045		16.2	%		4.6	%
Commercial — industrial, financial and agricultural		3,603,790		3,364,211		3,557,142		7.1	%		1.3	%
Real estate — home equity		1,673,834		1,486,367		1,619,935		12.6	%		3.3	%
Real estate — construction		1,232,082		1,377,391		1,293,096		(10.5	%)		(4.7	%)
Real estate — residential mortgage		985,660		831,825		953,420		18.5	%		3.4	%
Consumer		378,422		499,253		368,804		(24.2	%)		2.6	%
Leasing and other		91,549		85,524		84,399		7.0	%		8.5	%
Total Loans, net of unearned income	$	11,960,067	$	11,082,957	$	11,696,841		7.9	%		2.3	%
Deposits, by type:
Noninterest-bearing demand	$	1,643,118	$	1,675,528	$	1,669,908		(1.9	%)		(1.6	%)
Interest-bearing demand		1,727,874		1,721,831		1,734,198		0.4	%		(0.4	%)
Savings deposits		2,070,931		2,179,753		2,192,747		(5.0	%)		(5.6	%)
Time deposits		4,818,068		4,603,944		4,308,903		4.7	%		11.8	%
Total Deposits	$	10,259,991	$	10,181,056	$	9,905,756		0.8	%		3.6	%
Short-term borrowings, by type:
Federal funds purchased	$	1,426,618	$	975,732	$	1,399,130		46.2	%		2.0	%
Short-term promissory notes		391,781		478,018		486,179		(18.0	%)		(19.4	%)
Customer repurchase agreements		244,633		237,346		213,827		3.1	%		14.4	%
Other short-term borrowings		188,539		329,655		332,973		(42.8	%)		(43.4	%)
Total Short-term borrowings	$	2,251,571	$	2,020,751	$	2,432,109		11.4	%		(7.4	%)

4

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

	Year Ended December 31
	2008									2007
	Average									Average
	Balance			Interest (1)			Yield/Rate			Balance			Interest (1)			Yield/Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income	$	11,595,243		$	732,533			6.32	%	$	10,736,566		$	805,881			7.51	%
Taxable investment securities		2,228,204			110,220			4.82	%		2,157,325			99,621			4.62	%
Tax-exempt investment securities		512,920			27,904			5.44	%		496,820			25,856			5.20	%
Equity securities		183,216			6,520			3.56	%		189,333			9,073			4.79	%
Total Investment Securities		2,924,340			144,644			4.85	%		2,843,478			134,550			4.73	%
Loans held for sale		93,085			5,701			6.12	%		166,437			11,501			6.91	%
Other interest-earning assets		21,503			586			2.71	%		33,015			1,630			4.90	%
Total Interest-earning Assets		14,634,171			883,464			6.02	%		13,779,496			953,562			6.93	%
Noninterest-earning assets:
Cash and due from banks		318,524									329,814
Premises and equipment		197,967									190,910
Other assets		951,270									899,292
Less: allowance for loan losses		(125,061	)								(109,054	)
Total Assets	$	15,976,871								$	15,090,458
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,714,029		$	13,168			0.77	%	$	1,696,624		$	28,331			1.67	%
Savings deposits		2,152,158			28,520			1.32	%		2,258,113			53,312			2.36	%
Time deposits		4,502,399			170,426			3.79	%		4,553,994			212,752			4.67	%
Total Interest-bearing Deposits		8,368,586			212,114			2.53	%		8,508,731			294,395			3.46	%
Short-term borrowings		2,336,526			50,091			2.12	%		1,574,495			73,983			4.66	%
Federal Home Loan Bank advances and long-term debt		1,822,115			81,141			4.45	%		1,579,527			82,455			5.22	%
Total Interest-bearing Liabilities		12,527,227			343,346			2.74	%		11,662,753			450,833			3.86	%
Noninterest-bearing liabilities:
Demand deposits		1,647,942									1,713,863
Other		191,874									183,229
Total Liabilities		14,367,043									13,559,845
Shareholders’ equity		1,609,828									1,530,613
Total Liabilities and Shareholders’ Equity	$	15,976,871								$	15,090,458
Net interest income/net interest margin (fully taxable equivalent)					540,118			3.68	%					502,729			3.66	%
Tax equivalent adjustment					(15,970	)								(13,985	)
Net interest income				$	524,148								$	488,744

(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
	2008		2007		% Change
Loans, by type:
Real estate — commercial mortgage	$	3,765,762	$	3,337,762		12.8	%
Commercial — industrial, financial and agricultural		3,536,125		3,213,357		10.0	%
Real estate — home equity		1,597,376		1,454,753		9.8	%
Real estate — construction		1,286,111		1,384,548		(7.1	%)
Real estate — residential mortgage		923,947		753,789		22.6	%
Consumer		399,112		506,201		(21.2	%)
Leasing and other		86,810		86,156		0.8	%
Total Loans, net of unearned income	$	11,595,243	$	10,736,566		8.0	%
Deposits, by type:
Noninterest-bearing demand	$	1,647,942	$	1,713,863		(3.8	%)
Interest-bearing demand		1,714,029		1,696,624		1.0	%
Savings deposits		2,152,158		2,258,113		(4.7	%)
Time deposits		4,502,399		4,553,994		(1.1	%)
Total Deposits	$	10,016,528	$	10,222,594		(2.0	%)
Short-term borrowings, by type:
Federal funds purchased	$	1,328,888	$	808,358		64.4	%
Short-term promissory notes		454,473		404,527		12.3	%
Customer repurchase agreements		227,130		247,948		(8.4	%)
Other short-term borrowings		326,035		113,662		186.8	%
Total Short-term borrowings	$	2,336,526	$	1,574,495		48.4	%

5

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

	Quarter Ended									Year Ended
	December 31			December 31			September 30			December 31
	2008			2007			2008			2008			2007
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	141,829		$	109,435		$	126,223		$	112,209		$	106,884
Loans charged off:
Commercial — financial and agricultural		(6,392	)		(2,200	)		(4,684	)		(18,592	)		(6,796	)
Real estate — mortgage		(19,464	)		(679	)		(5,857	)		(28,275	)		(1,206	)
Consumer		(1,450	)		(1,169	)		(991	)		(5,188	)		(3,678	)
Leasing and other		(1,033	)		(1,020	)		(1,166	)		(4,804	)		(2,059	)
Total loans charged off		(28,339	)		(5,068	)		(12,698	)		(56,859	)		(13,739	)
Recoveries of loans charged off:
Commercial — financial and agricultural		770			197			749			1,795			1,664
Real estate — mortgage		61			89			238			446			178
Consumer		465			343			304			1,487			1,246
Leasing and other		351			413			313			1,433			913
Recoveries of loans previously charged off		1,647			1,042			1,604			5,161			4,001
Net loans charged off		(26,692	)		(4,026	)		(11,094	)		(51,698	)		(9,738	)
Provision for loan losses		65,000			6,800			26,700			119,626			15,063
Balance at end of period	$	180,137		$	112,209		$	141,829		$	180,137		$	112,209
Net charge-offs to average loans (annualized)		0.89	%		0.15	%		0.38	%		0.45	%		0.09	%
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES:
Allowance for loan losses	$	173,946		$	107,547		$	136,988
Reserve for unfunded lending commitments		6,191			4,662			4,841
Allowance for credit losses	$	180,137		$	112,209		$	141,829
NON-PERFORMING ASSETS:
Non-accrual loans	$	161,962		$	76,150		$	143,310
Loans 90 days past due and accruing		35,177			29,782			21,354
Total non-performing loans		197,139			105,932			164,664
Other real estate owned		21,855			14,934			21,706
Total non-performing assets	$	218,994		$	120,866		$	186,370
NON-PERFORMING LOANS, BY TYPE:
Commercial — industrial, agricultural and financial	$	40,294		$	27,715		$	41,489
Real estate — commercial mortgage		41,745			14,515			32,642
Real estate — residential mortgage and home equity		26,304			25,774			26,274
Real estate — construction		80,083			30,927			57,436
Consumer		8,374			4,741			6,558
Leasing		339			2,260			265
Total non-performing loans	$	197,139		$	105,932		$	164,664
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		1.34	%		0.68	%		1.21	%
Non-performing assets to total loans and OREO		1.82	%		1.08	%		1.57	%
Non-performing assets to total assets		1.35	%		0.76	%		1.15	%
Allowance for credit losses to loans outstanding		1.50	%		1.00	%		1.20	%
Allowance for loan losses to loans outstanding		1.44	%		0.96	%		1.16	%
Allowance for credit losses to non-performing loans		91	%		106	%		86	%

6

FULTON FINANCIAL CORPORATION
RECONCILIATION OF NON-GAAP MEASURE (UNAUDITED)
dollars in thousands, except per-share data

Explanatory note: This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Standards (“GAAP”) that Management uses in its analysis of the Corporation’s performance. The Corporation has presented these non-GAAP measures because it believes that they provide more useful and comparative information to assess trends in the Corporation’s quarterly and year end results of operations. These non-GAAP measures should not be considered a substitute for GAAP basis measures and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

	Quarter Ended
	December 31, 2008									December 31, 2007								September 30, 2008
	Pre-tax			After-tax			Diluted			Pre-tax			After-tax			Diluted		Pre-tax			After-tax			Diluted
	(Expense)/			(Expense)/			EPS			(Expense)/			(Expense)/			EPS		(Expense)/			(Expense)/			EPS
	Income			Income			Impact			Income			Income			Impact		Income			Income			Impact
Goodwill impairment charge	$	(90,000	)	$	(90,000	)	$	(0.51	)	$	—		$	—		$	—	$	—		$	—		$	—
Other-than-temporary impairment of securities		(26,065	)		(16,942	)		(0.10	)		(175	)		(114	)		—		(10,682	)		(6,943	)		(0.04	)
Guarantee related to purchase of customer auction rate securities		(3,950	)		(2,568	)		(0.01	)		—			—			—		(2,660	)		(1,729	)		(0.01	)
Investment securities gains and (losses) on sale		(2,274	)		(1,478	)		(0.01	)		(362	)		(235	)		—		1,181			768			—
Totals		(122,289	)		(110,988	)		(0.63	)		(537	)		(349	)		—		(12,161	)		(7,904	)		(0.05	)
Net (loss) income available to common shareholders					(102,330	)		(0.58	)					38,179			0.22					29,076			0.17
Adjusted net income available to common shareholders				$	8,658		$	0.05					$	38,528		$	0.22				$	36,980		$	0.21

	Year Ended December 31
	2008									2007
	Pre-tax			After-tax			Diluted			Pre-tax			After-tax			Diluted
	(Expense)/			(Expense)/			EPS			(Expense)/			(Expense)/			EPS
	Income			Income			Impact			Income			Income			Impact
Goodwill impairment charge	$	(90,000	)	$	(90,000	)	$	(0.52	)	$	—		$	—		$	—
Other-than-temporary impairment of securities		(65,336	)		(42,468	)		(0.24	)		(292	)		(190	)		—
Guarantee related to purchase of customer auction rate securities		(19,810	)		(12,877	)		(0.07	)		—			—			—
Gain on sale of credit card portfolio		13,900			9,035			0.05			—			—			—
Investment securities gains and (losses) on sale		7,095			4,612			0.03			2,032			1,321			0.01
Contingent losses related to repurchase of previously sold loans		(2,300	)		(1,495	)		(0.01	)		(25,100	)		(16,315	)		(0.09	)
Totals	$	(156,451	)	$	(133,193	)		(0.76	)	$	(23,360	)	$	(15,184	)		(0.09	)
Net (loss) income available to common shareholders					(6,080	)		(0.03	)					152,718			0.88
Adjusted net income available to common shareholders				$	127,113		$	0.73					$	167,902		$	0.96

7