Fulton Financial (FULT) 8-K Fulton Financial reports first quarter earnings

EXHIBIT 99.2

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

	March 31
BALANCE SHEET DATA	2009		2008		% Change
Total assets	$	16,493,522	$	16,052,867		2.7	%
Loans, net of unearned income		12,009,060		11,388,653		5.4	%
Investment securities		3,123,687		3,104,827		0.6	%
Deposits		11,413,982		10,048,928		13.6	%
Shareholders’ equity		1,861,321		1,611,720		15.5	%

	Quarter Ended March 31
INCOME SUMMARY	2009			2008			% Change
Interest income	$	195,567		$	229,220			(14.7	%)
Interest expense		(71,451	)		(103,321	)		(30.8	%)
Net interest income		124,116			125,899			(1.4	%)
Provision for loan losses		(50,000	)		(11,220	)		345.6	%
Investment securities gains		2,919			1,246			134.3	%
Other income		43,995			36,434			20.8	%
Other expenses		(106,372	)		(96,660	)		10.0	%
Income before income taxes		14,658			55,699			(73.7	%)
Income tax expense		(1,573	)		(14,203	)		(88.9	%)
Net income		13,085			41,496			(68.5	%)
Preferred stock dividends and discount accretion		(5,031	)		—			N/A
Net income available to common shareholders	$	8,054		$	41,496			(80.6	%)
PER COMMON SHARE:
Net income:
Basic	$	0.05		$	0.24			(79.2	%)
Diluted		0.05			0.24			(79.2	%)
Cash dividends		0.03			0.15			(80.0	%)
Shareholders’ equity		8.50			9.28			(8.4	%)
Shareholders’ equity (tangible)		5.33			5.52			(3.4	%)
SELECTED FINANCIAL RATIOS:
Return on average assets		0.33	%		1.05	%
Return on average common shareholders’ equity		2.84	%		10.53	%
Return on average common shareholders’ equity (tangible)		3.88	%		18.45	%
Net interest margin		3.45	%		3.58	%
Efficiency ratio		60.95	%		57.10	%
Non-performing assets to total assets		1.63	%		0.90	%

N/A — Not applicable

1

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

										% Change from
	March 31			March 31			December 31			March 31			December 31
	2009			2008			2008			2008			2008
ASSETS
Cash and due from banks	$	265,431		$	406,601		$	331,164			(34.7	%)		(19.8	%)
Loans held for sale		102,033			95,144			95,840			7.2	%		6.5	%
Other interest-earning assets		14,329			13,240			21,710			8.2	%		(34.0	%)
Investment securities		3,123,687			3,104,827			2,724,841			0.6	%		14.6	%
Loans, net of unearned income		12,009,060			11,388,653			12,042,620			5.4	%		(0.3	%)
Allowance for loan losses		(192,410	)		(115,257	)		(173,946	)		66.9	%		10.6	%
Net Loans		11,816,650			11,273,396			11,868,674			4.8	%		(0.4	%)
Premises and equipment		205,495			197,424			202,657			4.1	%		1.4	%
Accrued interest receivable		59,369			65,865			58,566			(9.9	%)		1.4	%
Goodwill and intangible assets		556,496			653,038			557,833			(14.8	%)		(0.2	%)
Other assets		350,032			243,332			323,821			43.8	%		8.1	%
Total Assets	$	16,493,522		$	16,052,867		$	16,185,106			2.7	%		1.9	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	11,413,982		$	10,048,928		$	10,551,916			13.6	%		8.2	%
Short-term borrowings		1,195,474			2,229,127			1,762,770			(46.4	%)		(32.2	%)
Federal Home Loan Bank advances and long-term debt		1,786,598			1,890,969			1,787,797			(5.5	%)		(0.1	%)
Other liabilities		236,147			272,123			222,976			(13.2	%)		5.9	%
Total Liabilities		14,632,201			14,441,147			14,325,459			1.3	%		2.1	%
Preferred stock		369,270			—			368,944			N/A			0.1	%
Common shareholders’ equity		1,492,051			1,611,720			1,490,703			(7.4	%)		0.1	%
Total Shareholders’ Equity		1,861,321			1,611,720			1,859,647			15.5	%		0.1	%
Total Liabilities and Shareholders’ Equity	$	16,493,522		$	16,052,867		$	16,185,106			2.7	%		1.9	%
LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
Real estate — commercial mortgage	$	4,068,342		$	3,597,307		$	4,016,700			13.1	%		1.3	%
Commercial — industrial, financial and agricultural		3,653,503			3,493,352			3,635,544			4.6	%		0.5	%
Real estate — home equity		1,673,613			1,547,323			1,695,398			8.2	%		(1.3	%)
Real estate — construction		1,205,256			1,328,802			1,269,330			(9.3	%)		(5.0	%)
Real estate — residential mortgage		947,837			879,491			972,797			7.8	%		(2.6	%)
Consumer		378,851			451,037			365,692			(16.0	%)		3.6	%
Leasing and other		81,658			91,341			87,159			(10.6	%)		(6.3	%)
Total Loans, net of unearned income	$	12,009,060		$	11,388,653		$	12,042,620			5.4	%		(0.3	%)
Deposits, by type:
Noninterest-bearing demand	$	1,776,169		$	1,737,442		$	1,653,440			2.2	%		7.4	%
Interest-bearing demand		1,799,586			1,712,601			1,789,833			5.1	%		0.5	%
Savings deposits		2,125,297			2,157,749			2,010,526			(1.5	%)		5.7	%
Time deposits		5,712,930			4,441,136			5,098,117			28.6	%		12.1	%
Total Deposits	$	11,413,982		$	10,048,928		$	10,551,916			13.6	%		8.2	%
Short-term borrowings, by type:
Federal funds purchased	$	397,158		$	1,103,804		$	1,147,673			(64.0	%)		(65.4	%)
Short-term promissory notes		343,845			496,706			356,788			(30.8	%)		(3.6	%)
Customer repurchase agreements		249,256			223,649			255,796			11.4	%		(2.6	%)
Federal Reserve Bank borrowings		200,000			—			—			N/A			N/A
Overnight borrowings and other		5,215			404,968			2,513			(98.7	%)		107.5	%
Total Short-term borrowings	$	1,195,474		$	2,229,127		$	1,762,770			(46.4	%)		(32.2	%)

N/A — Not Applicable

2

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

	Quarter Ended									% Change from
	March 31			March 31			December 31			March 31			December 31
	2009			2008			2008			2008			2008
Interest Income:
Interest income	$	195,567		$	229,220		$	209,073			(14.7	%)		(6.5	%)
Interest expense		71,451			103,321			76,732			(30.8	%)		(6.9	%)
Net Interest Income		124,116			125,899			132,341			(1.4	%)		(6.2	%)
Provision for loan losses		50,000			11,220			65,000			345.6	%		(23.1	%)
Net Interest Income after Provision		74,116			114,679			67,341			(35.4	%)		10.1	%
Other Income:
Service charges on deposit accounts		14,894			13,967			16,177			6.6	%		(7.9	%)
Gains on sale of mortgage loans		8,591			2,311			3,085			271.7	%		178.5	%
Other service charges and fees		8,354			8,591			8,927			(2.8	%)		(6.4	%)
Investment management and trust services		7,903			8,759			7,541			(9.8	%)		4.8	%
Investment securities gains (losses)		2,919			1,246			(28,339	)		134.3	%		110.3	%
Other		4,253			2,806			3,020			51.6	%		40.8	%
Total Other Income		46,914			37,680			10,411			24.5	%		350.6	%
Other Expenses:
Salaries and employee benefits		55,304			55,195			48,771			0.2	%		13.4	%
Net occupancy expense		11,023			10,524			11,240			4.7	%		(1.9	%)
Operating risk loss		6,201			1,243			5,200			398.9	%		19.3	%
FDIC insurance premiums		4,288			862			1,878			397.4	%		128.3	%
Equipment expense		3,079			3,448			3,425			(10.7	%)		(10.1	%)
Data processing		3,072			3,246			3,209			(5.4	%)		(4.3	%)
Marketing		2,571			2,905			3,746			(11.5	%)		(31.4	%)
Intangible amortization		1,463			1,857			1,776			(21.2	%)		(17.6	%)
Goodwill impairment		—			—			90,000			N/A			N/A
Other		19,371			17,380			21,629			11.5	%		(10.4	%)
Total Other Expenses		106,372			96,660			190,874			10.0	%		(44.3	%)
Income (Loss) Before Income Taxes		14,658			55,699			(113,122	)		(73.7	%)		(113.0	%)
Income tax expense (benefit)		1,573			14,203			(11,255	)		(88.9	%)		(114.0	%)
Net Income (Loss)		13,085			41,496			(101,867	)		(68.5	%)		(112.8	%)
Preferred stock dividends and discount accretion		(5,031	)		—			(463	)		N/A			(986.6	%)
Net Income (Loss) Available to Common Shareholders	$	8,054		$	41,496		$	(102,330	)		(80.6	%)		(107.9	%)
PER COMMON SHARE:
Net income (loss):
Basic	$	0.05		$	0.24		$	(0.58	)		(79.2	%)		(108.6	%)
Diluted		0.05			0.24			(0.58	)		(79.2	%)		(108.6	%)
Cash dividends	$	0.03		$	0.15		$	0.15			(80.0	%)		(80.0	%)
Shareholders’ equity		8.50			9.28			8.52			(8.4	%)		(0.2	%)
Shareholders’ equity (tangible)		5.33			5.52			5.33			(3.4	%)		—
Weighted average shares (basic)		175,315			173,624			174,889			1.0	%		0.2	%
Weighted average shares (diluted)		175,548			174,209			174,889			0.8	%		0.4	%
Shares outstanding, end of period		175,507			173,722			175,044			1.0	%		0.3	%
SELECTED FINANCIAL RATIOS:
Return on average assets		0.33	%		1.05	%		(2.51	%)
Return on average common shareholders’ equity		2.84	%		10.53	%		(24.89	%)
Return on average common shareholders’ equity (tangible)		3.88	%		18.45	%		(4.35	%)
Net interest margin		3.45	%		3.58	%		3.68	%
Efficiency ratio		60.95	%		57.10	%		56.57	%

N/A — Not applicable

3

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

	Quarter Ended
	March 31, 2009									March 31, 2008									December 31, 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	$	12,041,286		$	163,753			5.51	%	$	11,295,531		$	192,422			6.85	%	$	11,960,067		$	178,096			5.93	%
Taxable investment securities		2,212,639			26,849			4.86	%		2,407,189			29,561			4.91	%		2,086,808			26,106			5.00	%
Tax-exempt investment securities		503,265			6,887			5.47	%		515,856			6,761			5.24	%		516,045			7,073			5.48	%
Equity securities		137,308			774			2.28	%		213,004			2,380			4.48	%		154,660			797			2.05	%
Total Investment Securities		2,853,212			34,510			4.84	%		3,136,049			38,702			4.94	%		2,757,513			33,976			4.93	%
Loans held for sale		104,467			1,261			4.83	%		98,676			1,577			6.39	%		64,096			975			6.08	%
Other interest-earning assets		16,934			50			1.19	%		26,784			218			3.25	%		23,889			124			2.08	%
Total Interest-earning Assets		15,015,899			199,574			5.38	%		14,557,040			232,919			6.43	%		14,805,565			213,171			5.74	%
Noninterest-earning assets:
Cash and due from banks		317,928									310,719									317,571
Premises and equipment		202,875									196,037									200,918
Other assets		924,755									927,260									960,606
Less: allowance for loan losses		(187,183	)								(109,914	)								(150,266	)
Total Assets	$	16,274,274								$	15,881,142								$	16,134,394
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,754,003		$	1,776			0.41	%	$	1,685,620		$	4,405			1.05	%	$	1,727,874		$	2,630			0.61	%
Savings deposits		2,058,021			4,353			0.86	%		2,137,704			9,163			1.72	%		2,070,931			6,124			1.18	%
Time deposits		5,432,676			43,767			3.27	%		4,520,004			49,918			4.44	%		4,818,068			41,553			3.43	%
Total Interest-bearing Deposits		9,244,700			49,896			2.19	%		8,343,328			63,486			3.06	%		8,616,873			50,307			2.32	%
Short-term borrowings		1,517,064			1,436			0.38	%		2,347,463			18,828			3.19	%		2,251,571			5,998			1.05	%
Federal Home Loan Bank advances and long-term debt		1,787,493			20,119			4.55	%		1,798,508			21,007			4.69	%		1,798,688			20,427			4.53	%
Total Interest-bearing Liabilities		12,549,257			71,451			2.31	%		12,489,299			103,321			3.32	%		12,667,132			76,732			2.41	%
Noninterest-bearing liabilities:
Demand deposits		1,657,658									1,616,283									1,643,118
Other		201,449									190,496									196,004
Total Liabilities		14,408,364									14,296,078									14,506,254
Shareholders’ equity		1,865,910									1,585,064									1,628,140
Total Liabilities and Shareholders’ Equity	$	16,274,274								$	15,881,142								$	16,134,394
Net interest income/net interest margin (fully taxable equivalent)					128,123			3.45	%					129,598			3.58	%					136,439			3.68	%
Tax equivalent adjustment					(4,007	)								(3,699	)								(4,098	)
Net interest income				$	124,116								$	125,899								$	132,341

(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
	March 31		March 31		December 31		March 31			December 31
	2009		2008		2008		2008			2008
Loans, by type:
Real estate — commercial mortgage	$	4,048,269	$	3,529,168	$	3,965,145		14.7	%		2.1	%
Commercial — industrial, financial and agricultural		3,682,678		3,472,443		3,603,790		6.1	%		2.2	%
Real estate — home equity		1,698,599		1,526,473		1,673,570		11.3	%		1.5	%
Real estate — construction		1,203,328		1,349,924		1,269,104		(10.9	%)		(5.2	%)
Real estate — residential mortgage		957,939		858,187		978,223		11.6	%		(2.1	%)
Consumer		360,919		473,247		378,686		(23.7	%)		(4.7	%)
Leasing and other		89,554		86,089		91,549		4.0	%		(2.2	%)
Total Loans, net of unearned income	$	12,041,286	$	11,295,531	$	11,960,067		6.6	%		0.7	%
Deposits, by type:
Noninterest-bearing demand	$	1,657,658	$	1,616,283	$	1,643,118		2.6	%		0.9	%
Interest-bearing demand		1,754,003		1,685,620		1,727,874		4.1	%		1.5	%
Savings deposits		2,058,021		2,137,704		2,070,931		(3.7	%)		(0.6	%)
Time deposits		5,432,676		4,520,004		4,818,068		20.2	%		12.8	%
Total Deposits	$	10,902,358	$	9,959,611	$	10,259,991		9.5	%		6.3	%
Short-term borrowings, by type:
Federal funds purchased	$	792,001	$	1,184,370	$	1,426,618		(33.1	%)		(44.5	%)
Short-term promissory notes		337,069		471,470		391,781		(28.5	%)		(14.0	%)
Customer repurchase agreements		246,429		226,921		244,633		8.6	%		0.7	%
Federal Reserve Bank borrowings		138,222		—		—		N/A			N/A
Overnight borrowings and other		3,343		464,702		188,539		(99.3	%)		(98.2	%)
Total Short-term borrowings	$	1,517,064	$	2,347,463	$	2,251,571		(35.4	%)		(32.6	%)

N/A — Not Applicable

4

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

	Quarter Ended
	March 31			March 31			December 31
	2009			2008			2008
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period	$	180,137		$	112,209		$	141,829
Loans charged off:
Real estate — construction		(12,242	)		—			(11,877	)
Commercial — industrial, agricultural and financial		(10,622	)		(2,764	)		(6,392	)
Real estate — commercial mortgage		(3,960	)		(318	)		(4,688	)
Real estate — residential mortgage and home equity		(1,937	)		(531	)		(2,899	)
Consumer		(2,076	)		(1,381	)		(1,450	)
Leasing and other		(946	)		(632	)		(1,033	)
Total loans charged off		(31,783	)		(5,626	)		(28,339	)
Recoveries of loans charged off:
Real estate — construction		112			—			—
Commercial — industrial, agricultural and financial		904			276			770
Real estate — commercial mortgage		10			77			5
Real estate — residential mortgage and home equity		1			3			56
Consumer		429			418			465
Leasing and other		253			492			351
Recoveries of loans previously charged off		1,709			1,266			1,647
Net loans charged off		(30,074	)		(4,360	)		(26,692	)
Provision for loan losses		50,000			11,220			65,000
Balance at end of period	$	200,063		$	119,069		$	180,137
Net charge-offs to average loans (annualized)		1.00	%		0.15	%		0.89	%
COMPONENTS OF ALLOWANCE FOR CREDIT LOSSES:
Allowance for loan losses	$	192,410		$	115,257		$	173,946
Reserve for unfunded lending commitments		7,653			3,812			6,191
Allowance for credit losses	$	200,063		$	119,069		$	180,137
NON-PERFORMING ASSETS:
Non-accrual loans	$	198,765		$	96,588		$	161,962
Loans 90 days past due and accruing		47,284			29,733			35,177
Total non-performing loans		246,049			126,321			197,139
Other real estate owned		23,189			18,333			21,855
Total non-performing assets	$	269,238		$	144,654		$	218,994
NON-PERFORMING LOANS, BY TYPE:
Real estate — construction	$	93,425		$	28,160		$	80,083
Commercial — industrial, agricultural and financial		50,493			35,462			40,294
Real estate — commercial mortgage		59,899			30,162			41,745
Real estate — residential mortgage and home equity		31,365			24,586			26,304
Consumer		10,316			5,858			8,374
Leasing		551			2,093			339
Total non-performing loans	$	246,049		$	126,321		$	197,139
ASSET QUALITY RATIOS:
Non-accrual loans to total loans		1.66	%		0.85	%		1.34	%
Non-performing assets to total loans and OREO		2.24	%		1.27	%		1.82	%
Non-performing assets to total assets		1.63	%		0.90	%		1.35	%
Allowance for credit losses to loans outstanding		1.67	%		1.05	%		1.50	%
Allowance for loan losses to loans outstanding		1.60	%		1.01	%		1.44	%
Allowance for credit losses to non-performing loans		81	%		94	%		91	%
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses		23.71	%		13.42	%		19.68	%

5

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 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
	March 31, 2009									March 31, 2008									December 31, 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		(3,040	)		(1,976	)		(0.01	)		(3,575	)		(2,324	)		(0.01	)		(26,065	)		(16,942	)		(0.10	)
Guarantee related to purchase of customer auction rate securities		(6,158	)		(4,003	)		(0.02	)		—			—			—			(3,950	)		(2,568	)		(0.01	)
Investment securities gains and (losses) on sale		5,959			3,873			0.02			4,821			3,134			0.02			(2,274	)		(1,478	)		(0.01	)
Totals		(3,239	)		(2,106	)		(0.01	)		1,246			810			0.01			(122,289	)		(110,988	)		(0.63	)
Net income (loss) available to common shareholders					8,054			0.05						41,496			0.24						(102,330	)		(0.58	)
Adjusted net income available to common shareholders				$	10,160		$	0.06					$	40,686		$	0.23					$	8,658		$	0.05

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