Fulton Financial (FULT) 8-K Fulton Financial announces rise in second quarter earnings

Exhibit 99.2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended June 30				Variance
	2004		2003		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	122,024	$	107,166	$	14,858		13.9	%
Interest expense		33,318		32,796		522		1.6	%
Net Interest Income		88,706		74,370		14,336		19.3	%
Provision for loan losses		800		2,490		(1,690	)	-67.9	%
Investment securities gains		5,349		4,809		540		11.2	%
Other income		31,674		29,725		1,949		6.6	%
Other expenses		70,898		58,065		12,833		22.1	%
Income Before Income Taxes		54,031		48,349		5,682		11.8	%
Income taxes		16,167		14,287		1,880		13.2	%
Net Income	$	37,864	$	34,062	$	3,802		11.2	%
Fully taxable equivalent (FTE) net interest income	$	91,038	$	76,774	$	14,264		18.6	%
PER-SHARE DATA:
Net income:
Basic	$	0.31	$	0.31	$	—		0.0	%
Diluted		0.31		0.31		—		0.0	%
Cash dividends		0.165		0.152		0.013		8.6	%
ENDING BALANCES:
Total assets	$	10,556,421	$	8,619,287	$	1,937,134		22.5	%
Loans, net of unearned income		7,042,311		5,391,398		1,650,913		30.6	%
Deposits		7,430,988		6,437,023		993,965		15.4	%
Short-term borrowings		1,241,522		599,995		641,527		106.9	%
Long-term debt		654,886		534,456		120,430		22.5	%
Shareholders’ equity		1,107,482		873,659		233,823		26.8	%
AVERAGE BALANCES:
Total assets	$	10,603,544	$	8,422,985	$	2,180,559		25.9	%
Loans, net of unearned income		6,946,626		5,384,692		1,561,934		29.0	%
Deposits		7,448,275		6,324,543		1,123,732		17.8	%
Short-term borrowings		1,282,657		596,312		686,345		115.1	%
Long-term debt		656,803		540,413		116,390		21.5	%
Shareholders’ equity		1,101,590		865,336		236,254		27.3	%

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Six Months Ended June 30				Variance
	2004		2003		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	235,960	$	217,350	$	18,610		8.6	%
Interest expense		64,287		67,342		(3,055	)	-4.5	%
Net Interest Income		171,673		150,008		21,665		14.4	%
Provision for loan losses		2,540		5,325		(2,785	)	-52.3	%
Investment securities gains		11,177		7,038		4,139		58.8	%
Other income		58,089		59,161		(1,072	)	-1.8	%
Other expenses		133,375		113,947		19,428		17.1	%
Income Before Income Taxes		105,024		96,935		8,089		8.3	%
Income taxes		31,314		28,830		2,484		8.6	%
Net Income	$	73,710	$	68,105	$	5,605		8.2	%
Fully taxable equivalent (FTE) net interest income	$	176,351	$	154,836	$	21,515		13.9	%
PER-SHARE DATA:
Net income:
Basic	$	0.63	$	0.61	$	0.02		3.3	%
Diluted		0.62		0.61		0.01		1.6	%
Cash dividends		0.317		0.288		0.029		10.1	%
AVERAGE BALANCES:
Total assets	$	10,140,019	$	8,352,671	$	1,787,348		21.4	%
Loans, net of unearned income		6,567,307		5,365,939		1,201,368		22.4	%
Deposits		7,083,167		6,247,147		836,020		13.4	%
Short-term borrowings		1,313,970		603,838		710,132		117.6	%
Long-term debt		613,439		540,659		72,780		13.5	%
Shareholders’ equity		1,025,658		864,991		160,667		18.6	%

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended				Variance
	June 30 2004		March 31 2004
					$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	122,024	$	113,936	$	8,088		7.1	%
Interest expense		33,318		30,969		2,349		7.6	%
Net Interest Income		88,706		82,967		5,739		6.9	%
Provision for loan losses		800		1,740		(940	)	-54.0	%
Investment securities gains		5,349		5,828		(479	)	-8.2	%
Other income		31,674		26,415		5,259		19.9	%
Other expenses		70,898		62,477		8,421		13.5	%
Income Before Income Taxes		54,031		50,993		3,038		6.0	%
Income taxes		16,167		15,147		1,020		6.7	%
Net Income	$	37,864	$	35,846	$	2,018		5.6	%
Fully taxable equivalent (FTE) net interest income	$	91,038	$	85,313	$	5,725		6.7	%
PER-SHARE DATA:
Net income:
Basic	$	0.31	$	0.31	$	—		0.0	%
Diluted		0.31		0.31		—		0.0	%
Cash dividends		0.165		0.152		0.013		8.3	%
ENDING BALANCES:
Total assets	$	10,556,421	$	9,620,191	$	936,230		9.7	%
Loans, net of unearned income		7,042,311		6,217,077		825,234		13.3	%
Deposits		7,430,988		6,784,175		646,813		9.5	%
Short-term borrowings		1,241,522		1,182,473		59,049		5.0	%
Long-term debt		654,886		571,964		82,922		14.5	%
Shareholders’ equity		1,107,482		968,449		139,033		14.4	%
AVERAGE BALANCES:
Total assets	$	10,603,544	$	9,676,495	$	927,049		9.6	%
Loans, net of unearned income		6,946,626		6,187,988		758,638		12.3	%
Deposits		7,448,275		6,718,058		730,217		10.9	%
Short-term borrowings		1,282,657		1,345,285		(62,628	)	-4.7	%
Long-term debt		656,803		570,075		86,728		15.2	%
Shareholders’ equity		1,101,590		949,725		151,865		16.0	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	June 30
	2004			2003
	(in thousands)
ASSETS
Cash and due from banks	$	335,176		$	354,238
Interest-bearing deposits		7,021			5,737
Mortgage loans held for sale		144,050			59,874
Investment securities		2,489,031			2,548,789
Loans, net of unearned income		7,042,311			5,391,398
Less: Allowance for loan losses		(86,539	)		(72,240	)
Net Loans		6,955,772			5,319,158
Premises and equipment		130,721			121,367
Accrued interest receivable		35,701			31,969
Goodwill		273,715			61,048
Other assets		185,234			117,107
Total Assets	$	10,556,421		$	8,619,287
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest bearing	$	1,414,770		$	1,295,098
Interest-bearing		6,016,218			5,141,925
Total Deposits		7,430,988			6,437,023
Short-term borrowings:
Federal funds purchased		774,128			250,000
Other short-term borrowings		467,394			349,995
Total Short-Term Borrowings		1,241,522			599,995
Accrued interest payable		25,273			24,290
Other liabilities		96,270			144,364
Long-term debt		654,886			534,456
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust		—			5,500
Total Liabilities		9,448,939			7,745,628
Shareholders’ equity:
Common stock		321,277			272,941
Additional paid in capital		892,022			558,087
Retained earnings		38,885			82,091
Accumulated other comprehensive income		(25,747	)		25,929
Less: Treasury stock, at cost		(118,955	)		(65,389	)
Total Shareholders’ Equity		1,107,482			873,659
Total Liabilities and Shareholders’ Equity	$	10,556,421		$	8,619,287
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial, industrial and financial	$	1,818,570		$	1,521,626
Commercial - agricultural		324,465			191,902
Real estate - construction		560,865			270,468
Real estate - residential mortgage		504,320			457,620
Real estate - commercial mortgage		2,240,228			1,596,368
Real estate - home equity		1,004,532			759,055
Consumer		522,576			523,197
Leasing and other		66,755			71,162
Total Loans, net of unearned income	$	7,042,311		$	5,391,398
Deposits, by type:
Noninterest-bearing demand	$	1,414,770		$	1,295,098
Interest-bearing demand		1,361,379			1,099,470
Savings deposits		1,866,042			1,596,596
Time deposits		2,788,797			2,445,859
Total Deposits	$	7,430,988		$	6,437,023

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended June 30					Six Months Ended June 30
	2004		2003			2004		2003
	(in thousands)
Interest Income:
Loans, including fees	$	96,859	$	84,541		$	185,325	$	169,653
Investment securities:
Taxable		19,652		18,390			41,388		39,124
Tax-exempt		2,540		2,526			5,073		5,046
Dividends		992		1,153			1,944		2,301
Other interest income		1,981		556			2,230		1,226
Total Interest Income		122,024		107,166	��		235,960		217,350
Interest Expense:
Deposits		22,345		24,000			42,695		49,707
Short-term borrowings		3,135		1,692			6,462		3,445
Long-term debt		7,838		7,104			15,130		14,190
Total Interest Expense		33,318		32,796			64,287		67,342
Net Interest Income		88,706		74,370			171,673		150,008
Provision for Loan Losses		800		2,490			2,540		5,325
Net Interest Income after Provision		87,906		71,880			169,133		144,683
Other Income:
Investment management & trust services		8,637		8,809			17,282		17,152
Service charges on deposit accounts		9,929		9,501			19,434		18,717
Other service charges and fees		4,970		4,708			9,996		9,294
Mortgage banking income		6,417		5,841			8,473		11,792
Investment securities gains		5,349		4,809			11,177		7,038
Other		1,721		866			2,904		2,206
Total Other Income		37,023		34,534			69,266		66,199
Other Expenses:
Salaries and employee benefits		42,195		34,494			79,158		67,814
Net occupancy expense		5,859		4,807			11,377		9,887
Equipment expense		2,749		2,588			5,390		5,268
Data processing		2,868		2,776			5,687		5,640
Advertising		1,914		1,787			3,442		3,019
Intangible amortization		1,356		360			2,347		719
Other		13,957		11,253			25,974		21,600
Total Other Expenses		70,898		58,065			133,375		113,947
Income Before Income Taxes		54,031		48,349			105,024		96,935
Income Taxes		16,167		14,287			31,314		28,830
Net Income	$	37,864	$	34,062		$	73,710	$	68,105

FULTON FINANCIAL CORPORATION

PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)

	Quarter Ended June 30						Six Months Ended June 30
	2004			2003			2004			2003
PER-SHARE INFORMATION:
Net income:
Basic	$	0.31		$	0.31		$	0.63		$	0.61
Diluted		0.31			0.31			0.62			0.61
Cash dividends	$	0.165		$	0.152		$	0.317		$	0.288
Book value		9.09			7.90			—			—
Tangible book value		6.66			7.25			—			—
Weighted average shares (basic)		122,118			110,709			117,904			110,962
Weighted average shares (diluted)		123,485			111,487			119,372			111,725
Shares outstanding, end of period		121,880			110,626			—			—
FINANCIAL RATIOS:
Return on average assets		1.44	%		1.62	%		1.46	%		1.64	%
Return on average equity		13.82	%		15.79	%		14.45	%		15.88	%
Net interest margin		3.73	%		3.91	%		3.76	%		3.99	%
Efficiency ratio		56.7	%		54.2	%		55.9	%		52.9	%
Average equity to average assets		10.4	%		10.3	%		10.1	%		10.4	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)

	Quarter Ended June 30						Six Months Ended June 30
	2004			2003			2004			2003
	(In thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	6,946,626		$	5,384,692		$	6,567,307		$	5,365,939
Taxable investment securities		2,299,834			2,044,602			2,351,126			2,002,056
Tax-exempt investment securities		272,891			251,813			274,517			246,526
Equity securities		137,528			128,378			134,540			130,825
Short-term investments		122,375			40,526			70,664			47,720
Total Interest-Earning Assets		9,779,254			7,850,011			9,398,154			7,793,066
Non-interest earning assets:
Cash and due from banks		332,653			278,657			316,721			268,164
Premises and equipment		130,737			121,811			126,083			122,589
Other assets		447,700			245,293			381,827			241,731
Less: Allowance for loan losses		(86,800	)		(72,787	)		(82,766	)		(72,879	)
Total Assets	$	10,603,544		$	8,422,985		$	10,140,019		$	8,352,671
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,362,761		$	1,085,855		$	1,315,716		$	1,067,839
Savings deposits		1,857,175			1,596,578			1,808,639			1,566,393
Time deposits		2,841,569			2,461,038			2,636,657			2,486,483
Total Interest-Bearing Deposits		6,061,505			5,143,471			5,761,012			5,120,715
Short-term borrowings		1,282,657			596,312			1,313,970			603,838
Long-term debt		656,803			540,413			613,439			540,659
Total Interest-Bearing Liabilities		8,000,965			6,280,196			7,688,421			6,265,212
Noninterest-bearing liabilities:
Demand deposits		1,386,770			1,181,072			1,322,155			1,126,432
Other		114,219			96,381			103,785			96,036
Total Liabilities		9,501,954			7,557,649			9,114,361			7,487,680
Shareholders’ equity		1,101,590			865,336			1,025,658			864,991
Total Liabilities and Shareholders’ Equity	$	10,603,544		$	8,422,985		$	10,140,019		$	8,352,671
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
Loans and leases (1)		5.61	%		6.30	%		5.67	%		6.38	%
Taxable investment securities		3.44	%		3.61	%		3.54	%		3.94	%
Tax-exempt investment securities (1)		3.74	%		4.02	%		3.72	%		4.13	%
Equity securities (1)		2.90	%		3.60	%		2.91	%		3.55	%
Short-term investments		6.51	%		5.50	%		6.35	%		5.18	%
Total Interest-Earning Assets		5.02	%		5.48	%		5.05	%		5.62	%
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
Demand deposits		0.48	%		0.55	%		0.46	%		0.59	%
Savings deposits		0.57	%		0.69	%		0.57	%		0.72	%
Time deposits		2.56	%		3.22	%		2.64	%		3.32	%
Short-term borrowings		0.98	%		1.14	%		0.99	%		1.15	%
Long-term debt		4.80	%		5.27	%		4.96	%		5.29	%
Total Interest-Bearing Liabilities		1.67	%		2.09	%		1.68	%		2.17	%
NET INTEREST MARGIN (FTE)		3.73	%		3.91	%		3.76	%		3.99	%

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

FULTON FINANCIAL CORPORATION

LOAN QUALITY INFORMATION (UNAUDITED)

	Quarter Ended June 30						Six Months Ended June 30
	2004			2003			2004			2003
	(in thousands)
Gross charge-offs	$	1,627		$	2,962		$	4,315		$	6,911
Recoveries		1,183			926			2,702			1,906
Net Charge-offs	$	444		$	2,036		$	1,613		$	5,005
Net charge-offs to average loans		0.03	%		0.15	%		0.05	%		0.19	%
Non-accrual loans	$	21,961		$	26,811
Accruing loans 90+ days overdue		9,314			11,266
Other real estate owned		1,119			808
Total Non-Performing Assets	$	32,394		$	38,885
Non-accrual loans to total loans		0.31	%		0.50	%
Non-performing assets to total loans and OREO		0.46	%		0.72	%
Non-performing assets to total assets		0.31	%		0.45	%
Allowance to loans		1.23	%		1.34	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended
	June 30 2004		March 31 2004
	(in thousands)
Interest Income:
Loans, including fees	$	96,859	$	88,466
Investment securities:
Taxable		19,652		21,736
Tax-exempt		2,540		2,533
Dividends		992		952
Other interest income		1,981		249
Total Interest Income		122,024		113,936
Interest Expense:
Deposits		22,345		20,350
Short-term borrowings		3,135		3,327
Long-term debt		7,838		7,292
Total Interest Expense		33,318		30,969
Net Interest Income		88,706		82,967
Provision for Loan Losses		800		1,740
Net Interest Income after Provision		87,906		81,227
Other Income:
Investment management & trust services		8,637		8,645
Service charges on deposit accounts		9,929		9,505
Other service charges and fees		4,970		5,026
Mortgage banking income		6,417		2,056
Investment securities gains		5,349		5,828
Other		1,721		1,183
Total Other Income		37,023		32,243
Other Expenses:
Salaries and employee benefits		42,195		36,963
Net occupancy expense		5,859		5,518
Equipment expense		2,749		2,641
Data processing		2,868		2,819
Advertising		1,914		1,528
Intangible amortization		1,356		991
Other		13,957		12,017
Total Other Expenses		70,898		62,477
Income Before Income Taxes		54,031		50,993
Income Taxes		16,167		15,147
Net Income	$	37,864	$	35,846

FULTON FINANCIAL CORPORATION

PER-SHARE INFORMATION AND SELECTED FINANCIAL RATIOS (UNAUDITED)

	Quarter Ended
	June 30 2004			March 31 2004
PER-SHARE INFORMATION:
Net income:
Basic	$	0.31		$	0.31
Diluted		0.31			0.31
Cash dividends	$	0.165		$	0.152
Book value		9.09			8.51
Tangible book value		6.66			7.21
Weighted average shares (basic)		122,118			113,691
Weighted average shares (diluted)		123,485			114,681
Shares outstanding, end of period		121,880			113,738
FINANCIAL RATIOS:
Return on average assets		1.44	%		1.49	%
Return on average equity		13.82	%		15.18	%
Net interest margin		3.73	%		3.79	%
Efficiency ratio		56.7	%		55.0	%
Average equity to average assets		10.4	%		9.8	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)

	Quarter Ended
	June 30 2004			March 31 2004
	(In thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	6,946,626		$	6,187,988
Taxable investment securities		2,299,834			2,402,420
Tax-exempt investment securities		272,891			276,143
Equity securities		137,528			131,553
Short-term investments		122,375			18,953
Total Interest-Earning Assets		9,779,254			9,017,057
Non-interest earning assets:
Cash and due from banks		332,653			300,789
Premises and equipment		130,737			121,428
Other assets		447,700			315,953
Less: Allowance for loan losses		(86,800	)		(78,732	)
Total Assets	$	10,603,544		$	9,676,495
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,362,761		$	1,268,671
Savings deposits		1,857,175			1,760,104
Time deposits		2,841,569			2,431,742
Total Interest-Bearing Deposits		6,061,505			5,460,517
Short-term borrowings		1,282,657			1,345,285
Long-term debt		656,803			570,075
Total Interest-Bearing Liabilities		8,000,965			7,375,877
Noninterest-bearing liabilities:
Demand deposits		1,386,770			1,257,541
Other		114,219			93,352
Total Liabilities		9,501,954			8,726,770
Shareholders’ equity		1,101,590			949,725
Total Liabilities and Shareholders’ Equity	$	10,603,544		$	9,676,495
AVERAGE YIELDS ON INTEREST-EARNING ASSETS:
Loans and leases (1)		5.61	%		5.75	%
Taxable investment securities		3.44	%		3.64	%
Tax-exempt investment securities (1)		3.74	%		3.69	%
Equity securities (1)		2.90	%		2.91	%
Short-term investments		6.51	%		5.28	%
Total Interest-Earning Assets		5.02	%		5.08	%
AVERAGE COSTS OF INTEREST-BEARING LIABILITIES:
Demand deposits		0.48	%		0.43	%
Savings deposits		0.57	%		0.57	%
Time deposits		2.56	%		2.73	%
Short-term borrowings		0.98	%		0.99	%
Long-term debt		4.80	%		5.14	%
Total Interest-Bearing Liabilities		1.67	%		1.69	%
NET INTEREST MARGIN (FTE)		3.73	%		3.79	%

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

FULTON FINANCIAL CORPORATION

LOAN QUALITY INFORMATION (UNAUDITED)

	Quarter Ended
	June 30 2004			March 31 2004
	(in thousands)
Gross charge-offs	$	1,627		$	2,688
Recoveries		1,183			1,519
Net Charge-offs	$	444		$	1,169
Net charge-offs to average loans		0.03	%		0.08	%
Non-accrual Loans	$	21,961		$	19,594
Accruing loans 90+ days overdue		9,314			10,758
Other real estate owned		1,119			356
Total Non-Performing Assets	$	32,394		$	30,708
Non-accrual loans to total loans		0.31	%		0.32	%
Non-performing assets to total loans and OREO		0.46	%		0.49	%
Non-performing assets to total assets		0.31	%		0.32	%
Allowance to loans		1.23	%		1.26	%