Fulton Financial (FULT) 8-K Fulton Financial net income up 5.3% in first quarter

Exhibit 99.2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended March 31				Variance
	2004		2003		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	113,936	$	110,184	$	3,752		3.4	%
Interest expense		30,969		34,546		(3,577	)	-10.4	%
Net Interest Income		82,967		75,638		7,329		9.7	%
Provision for loan losses		1,740		2,835		(1,095	)	-38.6	%
Investment securities gains		5,828		2,229		3,599		161.5	%
Other income		26,415		29,436		(3,021	)	-10.3	%
Other expenses		62,477		55,882		6,595		11.8	%
Income Before Income Taxes		50,993		48,586		2,407		5.0	%
Income taxes		15,147		14,543		604		4.2	%
Net Income	$	35,846	$	34,043	$	1,803		5.3	%
Fully taxable equivalent (FTE) net interest income	$	85,313	$	78,062	$	7,251		9.3	%
PER-SHARE DATA:
Net Income:
Basic	$	0.33	$	0.32	$	0.01		3.1	%
Diluted		0.33		0.32		0.01		3.1	%
Cash Dividends		0.160		0.143		0.017		11.9	%
ENDING BALANCES:
Total assets	$	9,620,191	$	8,430,330	$	1,189,861		14.1	%
Loans, net of unearned income		6,217,077		5,289,036		928,041		17.5	%
Deposits		6,784,175		6,344,568		439,607		6.9	%
Short-term borrowings		1,182,473		507,907		674,566		132.8	%
Long-term debt		571,964		535,210		36,754		6.9	%
Shareholders' equity		968,449		864,119		104,330		12.1	%
AVERAGE BALANCES:
Total assets	$	9,676,495	$	8,281,576	$	1,394,919		16.8	%
Loans, net of unearned income		6,187,988		5,346,978		841,010		15.7	%
Deposits		6,718,059		6,168,891		549,168		8.9	%
Short-term borrowings		1,345,285		611,447		733,838		120.0	%
Long-term debt		570,075		540,906		29,169		5.4	%
Shareholders' equity		949,725		864,642		85,083		9.8	%

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended				Variance
	March 31 2004		December 31 2003		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	113,936	$	112,274	$	1,662		1.5	%
Interest expense		30,969		31,624		(655	)	-2.1	%
Net Interest Income		82,967		80,650		2,317		2.9	%
Provision for loan losses		1,740		2,190		(450	)	-20.5	%
Investment securities gains		5,828		5,825		3		0.1	%
Other income		26,415		27,450		(1,035	)	-3.8	%
Other expenses		62,477		60,679		1,798		3.0	%
Income Before Income Taxes		50,993		51,056		(63	)	-0.1	%
Income taxes		15,147		15,363		(216	)	-1.4	%
Net Income	$	35,846	$	35,693	$	153		0.4	%
Fully taxable equivalent (FTE) net interest income	$	85,313	$	83,056	$	2,257		2.7	%
PER-SHARE DATA:
Net Income:
Basic	$	0.33	$	0.33	$	—		0.0	%
Diluted		0.33		0.33		—		0.0	%
Cash Dividends		0.160		0.160		—		0.0	%
ENDING BALANCES:
Total assets	$	9,620,191	$	9,767,288	$	(147,097	)	-1.5	%
Loans, net of unearned income		6,217,077		6,159,994		57,083		0.9	%
Deposits		6,784,175		6,751,783		32,392		0.5	%
Short-term borrowings		1,182,473		1,396,711		(214,238	)	-15.3	%
Long-term debt		571,964		568,730		3,234		0.6	%
Shareholders' equity		968,449		946,936		21,513		2.3	%
AVERAGE BALANCES:
Total assets	$	9,676,495	$	9,472,010	$	204,485		2.2	%
Loans, net of unearned income		6,187,988		5,935,683		252,305		4.3	%
Deposits		6,718,059		6,814,421		(96,362	)	-1.4	%
Short-term borrowings		1,345,285		1,046,485		298,800		28.6	%
Long-term debt		570,075		588,125		(18,050	)	-3.1	%
Shareholders' equity		949,725		924,348		25,377		2.7	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	March 31
	2004			2003
	(in thousands)
ASSETS
Cash and due from banks	$	308,269		$	348,229
Interest-bearing deposits		3,949			10,903
Mortgage loans held for sale		28,818			79,956
Investment securities		2,713,791			2,441,341
Loans, net of unearned income		6,217,077			5,289,036
Less: Allowance for loan losses		(78,271	)		(71,786	)
Net Loans		6,138,806			5,217,250
Premises and equipment		120,372			121,873
Accrued interest receivable		32,828			40,704
Goodwill		129,332			61,048
Other assets		144,026			109,026
Total Assets	$	9,620,191		$	8,430,330
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest bearing	$	1,328,266		$	1,238,087
Interest-bearing		5,455,909			5,106,481
Total Deposits		6,784,175			6,344,568
Short-term borrowings:
Federal funds purchased		550,100			180,000
Other short-term borrowings		632,373			327,907
Total Short-Term Borrowings		1,182,473			507,907
Accrued interest payable		24,911			27,046
Other liabilities		88,219			145,980
Long-term debt		571,964			535,210
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust		—			5,500
Total Liabilities		8,651,742			7,566,211
Shareholders' equity:
Common stock		284,480			272,940
Capital surplus		631,638			565,042
Retained earnings		135,894			58,948
Accumulated other comprehensive income		16,445			27,479
Less: Treasury stock, at cost		(100,008	)		(60,290	)
Total Shareholders' Equity		968,449			864,119
Total Liabilities and Shareholders' Equity	$	9,620,191		$	8,430,330
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial, financial and agricultural	$	1,960,615		$	1,710,323
Real estate - construction		289,271			241,861
Real estate - residential mortgage		1,350,934			1,170,664
Real estate - commercial mortgage		2,042,234			1,570,509
Consumer		508,518			521,281
Leasing and other		65,505			74,398
Total Loans, net of unearned income	$	6,217,077		$	5,289,036
Deposits, by type:
Noninterest-bearing demand	$	1,328,266		$	1,238,087
Interest-bearing demand		1,269,315			1,063,726
Savings deposits		1,771,865			1,561,818
Time deposits		2,414,729			2,480,937
Total Deposits	$	6,784,175		$	6,344,568

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended March 31
	2004		2003
	(in thousands)
Interest Income:
Loans, including fees	$	88,466	$	85,112
Investment securities:
Taxable		21,736		20,734
Tax-exempt		2,533		2,520
Dividends		952		1,148
Other interest income		249		670
Total Interest Income		113,936		110,184
Interest Expense:
Deposits		20,350		25,707
Short-term borrowings		3,327		1,753
Long-term debt		7,292		7,086
Total Interest Expense		30,969		34,546
Net Interest Income		82,967		75,638
Provision for Loan Losses		1,740		2,835
Net Interest Income after Provision		81,227		72,803
Other Income:
Investment management & trust services		8,645		8,343
Service charges on deposit accounts		9,505		9,216
Other service charges and fees		5,026		4,586
Mortgage banking income		2,056		5,951
Investment securities gains		5,828		2,229
Other		1,183		1,340
Total Other Income		32,243		31,665
Other Expenses:
Salaries and employee benefits		36,963		33,320
Net occupancy expense		5,518		5,080
Equipment expense		2,641		2,680
Data processing		2,819		2,864
Advertising		1,528		1,232
Intangible amortization		991		359
Other		12,017		10,347
Total Other Expenses		62,477		55,882
Income Before Income Taxes		50,993		48,586
Income Taxes		15,147		14,543
Net Income	$	35,846	$	34,043

FULTON FINANCIAL CORPORATION

PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)

	Quarter Ended March 31
	2004			2003
PER-SHARE INFORMATION:
Net income:
Basic	$	0.33		$	0.32
Diluted		0.33			0.32
Cash Dividends	$	0.160		$	0.143
Book Value		8.94			8.18
Tangible Book Value		7.57			7.50
Weighted average shares (basic)		108,277			105,922
Weighted average shares (diluted)		109,220			106,635
Shares outstanding, end of period		108,322			105,598
FINANCIAL RATIOS:
Return on Average Assets		1.49	%		1.67	%
Return on Average Equity		15.18	%		15.97	%
Net Interest Margin		3.79	%		4.06	%
Efficiency Ratio		55.0	%		51.7	%
Average Equity to Average Assets		9.8	%		10.4	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)

	Quarter Ended March 31
	2004			2003
	(In thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	6,187,988		$	5,346,978
Taxable investment securities		2,402,420			1,959,040
Tax-exempt investment securities		276,143			241,180
Equity securities		131,553			133,300
Short-term investments		18,953			54,996
Total Interest-Earning Assets		9,017,057			7,735,494
Non-interest earning assets:
Cash and due from banks		300,789			257,553
Premises and equipment		121,428			123,372
Other assets		315,953			238,129
Less: Allowance for loan losses		(78,732	)		(72,972	)
Total Assets	$	9,676,495		$	8,281,576
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,268,671		$	1,049,624
Savings deposits		1,760,105			1,535,872
Time deposits		2,431,742			2,512,211
Total Interest-Bearing Deposits		5,460,518			5,097,707
Short-term borrowings		1,345,285			611,447
Long-term debt		570,075			540,906
Total Interest-Bearing Liabilities		7,375,878			6,250,060
Noninterest-bearing liabilities:
Demand deposits		1,257,541			1,071,184
Other		93,351			95,690
Total Liabilities		8,726,770			7,416,934
Shareholders' equity		949,725			864,642
Total Liabilities and Shareholders' Equity	$	9,676,495		$	8,281,576
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
Loans and leases (1)		5.75	%		6.46	%
Taxable investment securities		3.64	%		4.29	%
Tax-exempt investment securities (1)		3.69	%		4.24	%
Equity securities (1)		2.91	%		3.49	%
Short-term investments		5.28	%		4.94	%
Total Interest-Earning Assets (1)		5.08	%		5.78	%
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
Demand deposits		0.43	%		0.63	%
Savings deposits		0.57	%		0.76	%
Time deposits		2.73	%		3.42	%
Short-term borrowings		0.99	%		1.16	%
Long-term debt		5.14	%		5.31	%
Total Interest-Bearing Liabilities		1.69	%		2.24	%
NET INTEREST MARGIN (FTE)		3.79	%		4.06	%

(1) Yields are not fully-taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

LOAN QUALITY INFORMATION (UNAUDITED)

	Quarter Ended March 31
	2004			2003
	(in thousands)
Gross Charge-offs	$	2,689		$	3,949
Recoveries		1,519			980
Net Charge-offs	$	1,170		$	2,969
Net Charge-offs to average loans		0.08	%		0.22	%
Non-Accrual Loans	$	19,594		$	25,686
Accruing Loans 90+ Days Overdue		10,758			10,676
Other Real Estate Owned		356			757
Total Non-Performing Assets	$	30,708		$	37,119
Non-accrual loans to total loans		0.32	%		0.49	%
Non-performing assets to total loans and OREO		0.49	%		0.70	%
Non-performing assets to total assets		0.32	%		0.44	%
Allowance to Loans		1.26	%		1.36	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended
	March 31 2004		December 31 2003
	(in thousands)
Interest Income:
Loans, including fees	$	88,466	$	86,581
Investment securities:
Taxable		21,736		21,814
Tax-exempt		2,533		2,650
Dividends		952		871
Other interest income		249		358
Total Interest Income		113,936		112,274
Interest Expense:
Deposits		20,350		21,718
Short-term borrowings		3,327		2,413
Long-term debt		7,292		7,493
Total Interest Expense		30,969		31,624
Net Interest Income		82,967		80,650
Provision for Loan Losses		1,740		2,190
Net Interest Income after Provision		81,227		78,460
Other Income:
Investment management & trust services		8,645		8,219
Service charges on deposit accounts		9,505		9,973
Other service charges and fees		5,026		4,784
Mortgage banking income		2,056		3,590
Investment securities gains		5,828		5,825
Other		1,183		884
Total Other Income		32,243		33,275
Other Expenses:
Salaries and employee benefits		36,963		35,289
Net occupancy expense		5,518		5,027
Equipment expense		2,641		2,619
Data processing		2,819		3,028
Advertising		1,528		1,450
Intangible amortization		991		718
Other		12,017		12,548
Total Other Expenses		62,477		60,679
Income Before Income Taxes		50,993		51,056
Income Taxes		15,147		15,363
Net Income	$	35,846	$	35,693

FULTON FINANCIAL CORPORATION

PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)

	Quarter Ended
	March 31 2004			December 31 2003
PER-SHARE INFORMATION:
Net income:
Basic	$	0.33		$	0.33
Diluted		0.33			0.33
Cash Dividends	$	0.160		$	0.160
Book Value		8.94			8.75
Tangible Book Value		7.57			7.41
Weighted average shares (basic)		108,277			108,434
Weighted average shares (diluted)		109,220			109,406
Shares outstanding, end of period		108,322			108,255
FINANCIAL RATIOS:
Return on Average Assets		1.49	%		1.50	%
Return on Average Equity		15.18	%		15.32	%
Net Interest Margin		3.79	%		3.73	%
Efficiency Ratio		55.0	%		54.3	%
Average Equity to Average Assets		9.8	%		9.8	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)

	Quarter Ended
	March 31 2004			December 31 2003
	(In thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	6,187,988		$	5,935,683
Taxable investment securities		2,402,420			2,455,589
Tax-exempt investment securities		276,143			284,705
Equity securities		131,553			128,660
Short-term investments		18,953			41,748
Total Interest-Earning Assets		9,017,057			8,846,385
Non-interest earning assets:
Cash and due from banks		300,789			280,883
Premises and equipment		121,428			121,659
Other assets		315,953			301,736
Less: Allowance for loan losses		(78,732	)		(78,653	)
Total Assets	$	9,676,495		$	9,472,010
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,268,671		$	1,281,107
Savings deposits		1,760,105			1,775,817
Time deposits		2,431,742			2,488,880
Total Interest-Bearing Deposits		5,460,518			5,545,804
Short-term borrowings		1,345,285			1,046,485
Long-term debt		570,075			588,125
Total Interest-Bearing Liabilities		7,375,878			7,180,414
Noninterest-bearing liabilities:
Demand deposits		1,257,541			1,268,617
Other		93,351			98,631
Total Liabilities		8,726,770			8,547,662
Shareholders' equity		949,725			924,348
Total Liabilities and Shareholders' Equity	$	9,676,495		$	9,472,010
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
Loans and leases (1)		5.75	%		5.79	%
Taxable investment securities		3.64	%		3.52	%
Tax-exempt investment securities (1)		3.69	%		3.69	%
Equity securities (1)		2.91	%		2.69	%
Short-term investments		5.28	%		3.40	%
Total Interest-Earning Assets		5.08	%		5.04	%
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
Demand deposits		0.43	%		0.45	%
Savings deposits		0.57	%		0.60	%
Time deposits		2.73	%		2.80	%
Short-term borrowings		0.99	%		0.91	%
Long-term debt		5.14	%		5.05	%
Total Interest-Bearing Liabilities		1.69	%		1.75	%
NET INTEREST MARGIN (FTE)		3.79	%		3.73	%

(1) Yields are not fully-taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

LOAN QUALITY INFORMATION (UNAUDITED)

	Quarter Ended
	March 31 2004			December 31 2003
	(in thousands)
Gross Charge-offs	$	2,689		$	3,463
Recoveries		1,519			1,117
Net Charge-offs	$	1,170		$	2,346
Net Charge-offs to average loans		0.08	%		0.16	%
Non-Accrual Loans	$	19,594		$	22,422
Accruing Loans 90+ Days Overdue		10,758			9,609
Other Real Estate Owned		356			585
Total Non-Performing Assets	$	30,708		$	32,616
Non-accrual loans to total loans		0.32	%		0.36	%
Non-performing assets to total loans and OREO		0.49	%		0.53	%
Non-performing assets to total assets		0.32	%		0.33	%
Allowance to Loans		1.26	%		1.26	%