Fulton Financial (FULT) 8-K Fulton Financial announces increase in third quarter earnings

Exhibit 99.2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended September 30				Variance
	2004		2003		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	126,947	$	105,907	$	21,040		19.9	%
Interest expense		34,446		32,128		2,318		7.2	%
Net Interest Income		92,501		73,779		18,722		25.4	%
Provision for loan losses		1,125		2,190		(1,065	)	-48.6	%
Investment securities gains		3,336		6,990		(3,654	)	-52.3	%
Other income		32,011		30,523		1,488		4.9	%
Other expenses		70,688		59,550		11,138		18.7	%
Income Before Income Taxes		56,035		49,552		6,483		13.1	%
Income taxes		16,915		15,170		1,745		11.5	%
Net Income	$	39,120	$	34,382	$	4,738		13.8	%
Fully taxable equivalent (FTE) net interest income	$	94,876	$	76,242	$	18,634		24.4	%
PER-SHARE DATA:
Net income:
Basic	$	0.32	$	0.30	$	0.02		6.7	%
Diluted		0.32		0.30		0.02		6.7	%
Cash dividends		0.165		0.152		0.013		8.6	%
ENDING BALANCES:
Total assets	$	10,564,661	$	9,280,289	$	1,284,372		13.8	%
Loans, net of unearned income		7,213,162		5,844,788		1,368,374		23.4	%
Deposits		7,460,070		6,834,167		625,903		9.2	%
Short-term borrowings		1,188,464		789,157		399,307		50.6	%
Long-term debt		666,781		594,841		71,940		12.1	%
Shareholders’ equity		1,128,023		927,476		200,547		21.6	%
AVERAGE BALANCES:
Total assets	$	10,546,594	$	9,016,543	$	1,530,051		17.0	%
Loans, net of unearned income		7,159,211		5,683,795		1,475,416		26.0	%
Deposits		7,461,511		6,704,347		757,164		11.3	%
Short-term borrowings		1,208,379		695,550		512,829		73.7	%
Long-term debt		654,969		595,466		59,503		10.0	%
Shareholders’ equity		1,102,184		922,586		179,598		19.5	%

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Nine Months Ended September 30				Variance
	2004		2003		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	362,907	$	323,257	$	39,650		12.3	%
Interest expense		98,733		99,470		(737	)	-0.7	%
Net Interest Income		264,174		223,787		40,387		18.0	%
Provision for loan losses		3,665		7,515		(3,850	)	-51.2	%
Investment securities gains		14,513		14,028		485		3.5	%
Other income		90,100		89,684		416		0.5	%
Other expenses		204,063		173,497		30,566		17.6	%
Income Before Income Taxes		161,059		146,487		14,572		9.9	%
Income taxes		48,229		44,000		4,229		9.6	%
Net Income	$	112,830	$	102,487	$	10,343		10.1	%
Fully taxable equivalent (FTE) net interest income	$	271,227	$	231,077	$	40,150		17.4	%
PER-SHARE DATA:
Net income:
Basic	$	0.95	$	0.92	$	0.03		3.3	%
Diluted		0.94		0.91		0.03		3.3	%
Cash dividends		0.482		0.441		0.041		9.3	%
AVERAGE BALANCES:
Total assets	$	10,276,534	$	8,576,394	$	1,700,140		19.8	%
Loans, net of unearned income		6,766,049		5,473,055		1,292,994		23.6	%
Deposits		7,210,202		6,401,222		808,980		12.6	%
Short-term borrowings		1,278,517		634,745		643,772		101.4	%
Long-term debt		627,384		559,128		68,255		12.2	%
Shareholders’ equity		1,051,353		884,400		166,953		18.9	%

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended				Variance
	September 30 2004		June 30 2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	126,947	$	122,024	$	4,923		4.0	%
Interest expense		34,446		33,318		1,128		3.4	%
Net Interest Income		92,501		88,706		3,795		4.3	%
Provision for loan losses		1,125		800		325		40.6	%
Investment securities gains		3,336		5,349		(2,013	)	-37.6	%
Other income		32,011		31,674		337		1.1	%
Other expenses		70,688		70,898		(210	)	-0.3	%
Income Before Income Taxes		56,035		54,031		2,004		3.7	%
Income taxes		16,915		16,167		748		4.6	%
Net Income	$	39,120	$	37,864	$	1,256		3.3	%
Fully taxable equivalent (FTE) net interest income	$	94,876	$	91,038	$	3,838		4.2	%
PER-SHARE DATA:
Net income:
Basic	$	0.32	$	0.31	$	0.01		3.2	%
Diluted		0.32		0.31		0.01		3.2	%
Cash dividends		0.165		0.165		—		0.0	%
ENDING BALANCES:
Total assets	$	10,564,661	$	10,556,421	$	8,240		0.1	%
Loans, net of unearned income		7,213,162		7,042,311		170,851		2.4	%
Deposits		7,460,070		7,430,988		29,082		0.4	%
Short-term borrowings		1,188,464		1,241,522		(53,058	)	-4.3	%
Long-term debt		666,781		654,886		11,895		1.8	%
Shareholders’ equity		1,128,023		1,107,482		20,541		1.9	%
AVERAGE BALANCES:
Total assets	$	10,546,594	$	10,603,544	$	(56,950	)	-0.5	%
Loans, net of unearned income		7,159,211		6,946,626		212,585		3.1	%
Deposits		7,461,511		7,448,275		13,236		0.2	%
Short-term borrowings		1,208,379		1,282,657		(74,278	)	-5.8	%
Long-term debt		654,969		656,803		(1,834	)	-0.3	%
Shareholders’ equity		1,102,184		1,101,590		594		0.1	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	September 30						Variance
	2004			2003			$			%
	(in thousands)
ASSETS
Cash and due from banks	$	305,695		$	333,253		$	(27,558	)	-8.3	%
Interest-bearing deposits		12,566			7,514			5,052		67.2	%
Mortgage loans held for sale		150,452			53,707			96,745		180.1	%
Investment securities		2,343,686			2,705,463			(361,777	)	-13.4	%
Loans, net of unearned income		7,213,162			5,844,788			1,368,374		23.4	%
Less: Allowance for loan losses		(86,827	)		(77,857	)		(8,970	)	11.5	%
Net Loans		7,126,335			5,766,931			1,359,404		23.6	%
Premises and equipment		130,874			121,822			9,052		7.4	%
Accrued interest receivable		38,651			31,385			7,266		23.2	%
Goodwill		279,514			123,565			155,949		126.2	%
Other assets		176,888			136,649			40,239		29.4	%
Total Assets	$	10,564,661		$	9,280,289		$	1,284,372		13.8	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest bearing	$	1,427,008		$	1,259,811		$	167,197		13.3	%
Interest-bearing		6,033,062			5,574,356			458,706		8.2	%
Total Deposits		7,460,070			6,834,167			625,903		9.2	%
Short-term borrowings:
Federal funds purchased		662,509			387,343			275,166		71.0	%
Other short-term borrowings		525,955			401,814			124,141		30.9	%
Total Short-Term Borrowings		1,188,464			789,157			399,307		50.6	%
Accrued interest payable		27,603			26,766			837		3.1	%
Other liabilities		93,720			75,882			17,838		23.5	%
Long-term debt		666,781			594,841			71,940		12.1	%
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust		—			32,000			(32,000	)	-100.0	%
Total Liabilities		9,436,638			8,352,813			1,083,825		13.0	%
Shareholders’ equity:
Common stock		321,277			284,962			36,315		12.7	%
Additional paid in capital		889,595			636,934			252,661		39.7	%
Retained earnings		57,106			99,014			(41,908	)	-42.3	%
Accumulated other comprehensive (loss) income, net		(2,072	)		4,569			(6,641	)	-145.3	%
Less: Treasury stock, at cost		(137,883	)		(98,003	)		(39,880	)	40.7	%
Total Shareholders’ Equity		1,128,023			927,476			200,547		21.6	%
Total Liabilities and Shareholders’ Equity	$	10,564,661		$	9,280,289		$	1,284,372		13.8	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial, industrial and financial	$	1,848,058		$	1,526,952		$	321,106		21.0	%
Commercial - agricultural		316,323			196,761			119,562		60.8	%
Real estate - construction		580,323			309,122			271,201		87.7	%
Real estate - residential mortgage		528,421			447,025			81,396		18.2	%
Real estate - commercial mortgage		2,284,755			1,932,735			352,020		18.2	%
Real estate - home equity		1,053,333			827,303			226,030		27.3	%
Consumer		529,413			537,512			(8,099	)	-1.5	%
Leasing and other		72,536			67,378			5,158		7.7	%
Total Loans, net of unearned income	$	7,213,162		$	5,844,788		$	1,368,374		23.4	%
Deposits, by type:
Noninterest-bearing demand	$	1,427,008		$	1,259,811		$	167,197		13.3	%
Interest-bearing demand		1,391,071			1,266,762			124,309		9.8	%
Savings deposits		1,889,543			1,770,143			119,400		6.7	%
Time deposits		2,752,448			2,537,451			214,997		8.5	%
Total Deposits	$	7,460,070		$	6,834,167		$	625,903		9.2	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended September 30						Variance
	2004			2003			$			%
	(in thousands)
Interest Income:
Loans, including fees	$	103,033		$	85,159		$	17,874		21.0	%
Investment securities:
Taxable		18,247			16,512			1,735		10.5	%
Tax-exempt		2,407			2,740			(333	)	-12.2	%
Dividends		1,035			904			131		14.5	%
Other interest income		2,225			592			1,633		275.8	%
Total Interest Income		126,947			105,907			21,040		19.9	%
Interest Expense:
Deposits		22,644			22,773			(129	)	-0.6	%
Short-term borrowings		3,840			1,515			2,325		153.5	%
Long-term debt		7,962			7,840			122		1.6	%
Total Interest Expense		34,446			32,128			2,318		7.2	%
Net Interest Income		92,501			73,779			18,722		25.4	%
Provision for Loan Losses		1,125			2,190			(1,065	)	-48.6	%
Net Interest Income after Provision		91,376			71,589			19,787		27.6	%
Other Income:
Investment management & trust services		8,650			8,527			123		1.4	%
Service charges on deposit accounts		10,182			9,810			372		3.8	%
Other service charges and fees		5,367			4,782			585		12.2	%
Mortgage banking income		6,092			6,100			(8	)	-0.1	%
Investment securities gains		3,336			6,990			(3,654	)	-52.3	%
Other		1,720			1,304			416		31.9	%
Total Other Income		35,347			37,513			(2,166	)	-5.8	%
Other Expenses:
Salaries and employee benefits		42,464			35,516			6,948		19.6	%
Net occupancy expense		6,159			4,982			1,177		23.6	%
Equipment expense		2,705			2,618			87		3.3	%
Data processing		2,915			2,864			51		1.8	%
Advertising		1,631			1,570			61		3.9	%
Intangible amortization		1,233			622			611		98.2	%
Other		13,581			11,378			2,203		19.4	%
Total Other Expenses		70,688			59,550			11,138		18.7	%
Income Before Income Taxes		56,035			49,552			6,483		13.1	%
Income Taxes		16,915			15,170			1,745		11.5	%
Net Income	$	39,120		$	34,382		$	4,738		13.8	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.32		$	0.30			0.02		6.7	%
Diluted		0.32			0.30			0.02		6.7	%
Cash dividends	$	0.165		$	0.152			0.013		8.6	%
Book value		9.32			8.14			1.18		14.5	%
Tangible book value		6.85			6.89			(0.04	)	-0.6	%
Weighted average shares (basic)		121,496			113,249			8,247		7.3	%
Weighted average shares (diluted)		122,712			114,168			8,544		7.5	%
Shares outstanding, end of period		121,003			113,989			7,014		6.2	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.48	%		1.51	%		-0.03	%	-2.0	%
Return on average equity		14.12	%		14.79	%		-0.67	%	-4.5	%
Return on average equity (tangible)		19.37	%		16.95	%		2.42	%	14.3	%
Net interest margin		3.88	%		3.62	%		0.26	%	7.2	%
Efficiency ratio		54.7	%		55.2	%		-0.5	%	-0.8	%
Average equity to average assets		10.5	%		10.2	%		0.2	%	2.1	%

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended September 30
	2004							2003
	Balance			Interest		Rate (1)		Balance			Interest		Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	7,159,211		$	103,033	5.73	%	$	5,683,795		$	85,159	5.94	%
Taxable investment securities		2,037,040			18,247	3.56	%		2,218,346			16,512	2.95	%
Tax-exempt investment securities		262,962			2,407	3.64	%		287,297			2,740	3.78	%
Equity securities		138,264			1,035	2.98	%		128,064			904	2.80	%
Total Investment Securities		2,438,266			21,689	3.54	%		2,633,707			20,156	3.04	%
Short-term investments		126,089			2,225	7.02	%		51,398			592	4.57	%
Total Interest-earning Assets		9,723,566			126,947	5.19	%		8,368,900			105,907	5.02	%
Noninterest-earning assets:
Cash and due from banks		326,204							302,248
Premises and equipment		130,776							125,835
Other assets		453,196							296,306
Less: Allowance for loan losses		(87,148	)						(76,746	)
Total Assets	$	10,546,594						$	9,016,543
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,399,005		$	1,863	0.53	%	$	1,213,594		$	1,426	0.47	%
Savings deposits		1,868,650			2,972	0.63	%		1,709,803			2,468	0.57	%
Time deposits		2,764,597			17,809	2.56	%		2,522,767			18,879	2.97	%
Total Interest-bearing Deposits		6,032,252			22,644	1.49	%		5,446,164			22,773	1.66	%
Short-term borrowings		1,208,379			3,840	1.26	%		695,550			1,515	0.86	%
Long-term debt		654,969			7,962	4.84	%		595,466			7,840	5.22	%
Total Interest-bearing Liabilities		7,895,600			34,446	1.74	%		6,737,180			32,128	1.89	%
Noninterest-bearing liabilities:
Demand deposits		1,429,259							1,258,183
Other		119,551							98,594
Total Liabilities		9,444,410							8,093,957
Shareholders’ equity		1,102,184							922,586
Total Liabilities and Shareholders’ Equity	$	10,546,594						$	9,016,543
Net interest income				$	92,501						$	73,779
Net interest margin (FTE)						3.88	%						3.62	%

(1) Yields on tax-exempt securities are not fully taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Nine Months Ended September 30						Variance
	2004			2003			$			%
				(in thousands)
Interest Income:
Loans, including fees	$	288,358		$	254,812		$	33,546		13.2	%
Investment securities:
Taxable		59,635			55,636			3,999		7.2	%
Tax-exempt		7,480			7,786			(306	)	-3.9	%
Dividends		2,979			3,205			(226	)	-7.1	%
Other interest income		4,455			1,818			2,637		145.0	%
Total Interest Income		362,907			323,257			39,650		12.3	%
Interest Expense:
Deposits		65,339			72,480			(7,141	)	-9.9	%
Short-term borrowings		10,302			4,960			5,342		107.7	%
Long-term debt		23,092			22,030			1,062		4.8	%
Total Interest Expense		98,733			99,470			(737	)	-0.7	%
Net Interest Income		264,174			223,787			40,387		18.0	%
Provision for Loan Losses		3,665			7,515			(3,850	)	-51.2	%
Net Interest Income after Provision		260,509			216,272			44,237		20.5	%
Other Income:
Investment management & trust services		25,932			25,679			253		1.0	%
Service charges on deposit accounts		29,616			28,527			1,089		3.8	%
Other service charges and fees		15,363			14,076			1,287		9.1	%
Mortgage banking income		14,565			17,892			(3,327	)	-18.6	%
Investment securities gains		14,513			14,028			485		3.5	%
Other		4,624			3,510			1,114		31.7	%
Total Other Income		104,613			103,712			901		0.9	%
Other Expenses:
Salaries and employee benefits		121,622			103,330			18,292		17.7	%
Net occupancy expense		17,536			14,869			2,667		17.9	%
Equipment expense		8,095			7,886			209		2.7	%
Data processing		8,602			8,504			98		1.2	%
Advertising		5,073			4,589			484		10.5	%
Intangible amortization		3,580			1,341			2,239		167.0	%
Other		39,555			32,978			6,577		19.9	%
Total Other Expenses		204,063			173,497			30,566		17.6	%
Income Before Income Taxes		161,059			146,487			14,572		9.9	%
Income Taxes		48,229			44,000			4,229		9.6	%
Net Income	$	112,830		$	102,487		$	10,343		10.1	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.95		$	0.92		$	0.03		3.3	%
Diluted		0.94			0.91			0.03		3.3	%
Cash dividends	$	0.482		$	0.441			0.041		9.3	%
Book value		9.32			8.14			1.18		14.5	%
Tangible book value		6.85			6.89			(0.04	)	-0.6	%
Weighted average shares (basic)		119,110			111,733			7,377		6.6	%
Weighted average shares (diluted)		120,298			112,547			7,751		6.9	%
Shares outstanding, end of period		121,003			113,989			7,014		6.2	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.47	%		1.60	%		-0.13	%	-8.1	%
Return on average equity		14.34	%		15.49	%		-1.15	%	-7.4	%
Return on average equity (tangible)		18.38	%		17.19	%		1.19	%	6.9	%
Net interest margin		3.80	%		3.86	%		-0.06	%	-1.6	%
Efficiency ratio		55.5	%		53.7	%		1.8	%	3.3	%
Average equity to average assets		10.2	%		10.3	%		-0.1	%	-0.8	%

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Nine Months Ended September 30
	2004							2003
	Balance			Interest		Rate (1)		Balance			Interest		Rate (1)
						(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	6,766,049		$	288,358	5.69	%	$	5,473,055		$	254,812	6.22	%
Taxable investment securities		2,245,667			59,635	3.55	%		2,074,940			55,636	3.58	%
Tax-exempt investment securities		270,637			7,480	3.69	%		260,266			7,786	4.00	%
Equity securities		135,791			2,979	2.93	%		129,895			3,205	3.30	%
Total Investment Securities		2,652,095			70,094	3.53	%		2,465,101			66,627	3.61	%
Short-term investments		89,274			4,455	6.67	%		48,977			1,818	4.96	%
Total Interest-earning Assets		9,507,418			362,907	5.10	%		7,987,133			323,257	5.41	%
Noninterest-earning assets:
Cash and due from banks		319,905							279,633
Premises and equipment		127,660							123,681
Other assets		405,788							260,150
Less: Allowance for loan losses		(84,237	)						(74,182	)
Total Assets	$	10,276,534						$	8,576,415
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,343,681		$	4,852	0.48	%	$	1,116,959		$	4,545	0.54	%
Savings deposits		1,828,788			8,115	0.59	%		1,614,721			8,090	0.67	%
Time deposits		2,679,615			52,372	2.61	%		2,498,711			59,845	3.20	%
Total Interest-bearing Deposits		5,852,084			65,339	1.49	%		5,230,391			72,480	1.85	%
Short-term borrowings		1,278,517			10,302	1.08	%		634,745			4,960	1.04	%
Long-term debt		627,384			23,092	4.92	%		559,128			22,030	5.27	%
Total Interest-bearing Liabilities		7,757,985			98,733	1.70	%		6,424,264			99,470	2.07	%
Noninterest-bearing liabilities:
Demand deposits		1,358,118							1,170,831
Other		109,078							96,920
Total Liabilities		9,225,181							7,692,015
Shareholders’ equity		1,051,353							884,400
Total Liabilities and Shareholders’ Equity	$	10,276,534						$	8,576,415
Net interest income				$	264,174						$	223,787
Net interest margin (FTE)						3.80	%						3.86	%

(1) Yields on tax-exempt securities are not fully taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)

	Quarter Ended						Variance
	September 30 2004			June 30 2004			$			%
	(in thousands)
ASSETS
Cash and due from banks	$	305,695		$	335,176		$	(29,481	)	-8.8	%
Interest-bearing deposits		12,566			7,021			5,545		79.0	%
Mortgage loans held for sale		150,452			144,050			6,402		4.4	%
Investment securities		2,343,686			2,489,031			(145,345	)	-5.8	%
Loans, net of unearned income		7,213,162			7,042,311			170,851		2.4	%
Less: Allowance for loan losses		(86,827	)		(86,539	)		(288	)	0.3	%
Net Loans		7,126,335			6,955,772			170,563		2.5	%
Premises and equipment		130,874			130,721			153		0.1	%
Accrued interest receivable		38,651			35,701			2,950		8.3	%
Goodwill		279,514			276,592			2,922		1.1	%
Other assets		176,888			182,357			(5,469	)	-3.0	%
Total Assets	$	10,564,661		$	10,556,421		$	8,240		0.1	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest bearing	$	1,427,008		$	1,414,770		$	12,238		0.9	%
Interest-bearing		6,033,062			6,016,218			16,844		0.3	%
Total Deposits		7,460,070			7,430,988			29,082		0.4	%
Short-term borrowings:
Federal funds purchased		662,509			774,128			(111,619	)	-14.4	%
Other short-term borrowings		525,955			467,394			58,561		12.5	%
Total Short-Term Borrowings		1,188,464			1,241,522			(53,058	)	-4.3	%
Accrued interest payable		27,603			25,273			2,330		9.2	%
Other liabilities		93,720			96,270			(2,550	)	-2.6	%
Long-term debt		666,781			654,886			11,895		1.8	%
Total Liabilities		9,436,638			9,448,939			(12,301	)	-0.1	%
Shareholders’ equity:
Common stock		321,277			321,277			—		0.0	%
Additional paid in capital		889,595			892,022			(2,427	)	-0.3	%
Retained earnings		57,106			38,885			18,221		46.9	%
Accumulated other comprehensive loss, net		(2,072	)		(25,747	)		23,675		-92.0	%
Less: Treasury stock, at cost		(137,883	)		(118,955	)		(18,928	)	15.9	%
Total Shareholders’ Equity		1,128,023			1,107,482			20,541		1.9	%
Total Liabilities and Shareholders’ Equity	$	10,564,661		$	10,556,421		$	8,240		0.1	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial, industrial and financial	$	1,848,058		$	1,818,570		$	29,488		1.6	%
Commercial - agricultural		316,323			324,465			(8,142	)	-2.5	%
Real estate - construction		580,323			560,865			19,458		3.5	%
Real estate - residential mortgage		528,421			504,320			24,101		4.8	%
Real estate - commercial mortgage		2,284,755			2,240,228			44,527		2.0	%
Real estate - home equity		1,053,333			1,004,532			48,801		4.9	%
Consumer		529,413			522,576			6,837		1.3	%
Leasing and other		72,536			66,755			5,781		8.7	%
Total Loans, net of unearned income	$	7,213,162		$	7,042,311		$	170,851		2.4	%
Deposits, by type:
Noninterest-bearing demand	$	1,427,008		$	1,414,770		$	12,238		0.9	%
Interest-bearing demand		1,391,071			1,361,379			29,692		2.2	%
Savings deposits		1,889,543			1,866,042			23,501		1.3	%
Time deposits		2,752,448			2,788,797			(36,349	)	-1.3	%
Total Deposits	$	7,460,070		$	7,430,988		$	29,082		0.4	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended						Variance
	September 30 2004			June 30 2004			$			%
	(in thousands)
Interest Income:
Loans, including fees	$	103,033		$	96,859		$	6,174		6.4	%
Investment securities:
Taxable		18,247			19,652			(1,405	)	-7.1	%
Tax-exempt		2,407			2,540			(133	)	-5.2	%
Dividends		1,035			992			43		4.3	%
Other interest income		2,225			1,981			244		12.3	%
Total Interest Income		126,947			122,024			4,923		4.0	%
Interest Expense:
Deposits		22,644			22,345			299		1.3	%
Short-term borrowings		3,840			3,135			705		22.5	%
Long-term debt		7,962			7,838			124		1.6	%
Total Interest Expense		34,446			33,318			1,128		3.4	%
Net Interest Income		92,501			88,706			3,795		4.3	%
Provision for Loan Losses		1,125			800			325		40.6	%
Net Interest Income after Provision		91,376			87,906			3,470		3.9	%
Other Income:
Investment management & trust services		8,650			8,637			13		0.2	%
Service charges on deposit accounts		10,182			9,929			253		2.5	%
Other service charges and fees		5,367			4,970			397		8.0	%
Mortgage banking income		6,092			6,417			(325	)	-5.1	%
Investment securities gains		3,336			5,349			(2,013	)	-37.6	%
Other		1,720			1,721			(1	)	-0.1	%
Total Other Income		35,347			37,023			(1,676	)	-4.5	%
Other Expenses:
Salaries and employee benefits		42,464			42,195			269		0.6	%
Net occupancy expense		6,159			5,859			300		5.1	%
Equipment expense		2,705			2,749			(44	)	-1.6	%
Data processing		2,915			2,868			47		1.6	%
Advertising		1,631			1,914			(283	)	-14.8	%
Intangible amortization		1,233			1,356			(123	)	-9.1	%
Other		13,581			13,957			(376	)	-2.7	%
Total Other Expenses		70,688			70,898			(210	)	-0.3	%
Income Before Income Taxes		56,035			54,031			2,004		3.7	%
Income Taxes		16,915			16,167			748		4.6	%
Net Income	$	39,120		$	37,864		$	1,256		3.3	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.32		$	0.31			0.01		3.2	%
Diluted		0.32			0.31			0.01		3.2	%
Cash dividends	$	0.165		$	0.165			—		0.0	%
Book value		9.32			9.09			0.23		2.5	%
Tangible book value		6.85			6.66			0.19		2.9	%
Weighted average shares (basic)		121,496			122,118			(622	)	-0.5	%
Weighted average shares (diluted)		122,712			123,485			(773	)	-0.6	%
Shares outstanding, end of period		121,003			121,881			(878	)	-0.7	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.48	%		1.44	%		0.04	%	2.8	%
Return on average equity		14.12	%		13.82	%		0.30	%	2.2	%
Return on average equity (tangible)		19.37	%		17.84	%		1.53	%	8.6	%
Net interest margin		3.88	%		3.73	%		0.15	%	4.0	%
Efficiency ratio		54.7	%		56.7	%		-2.0	%	-3.5	%
Average equity to average assets		10.5	%		10.4	%		0.1	%	0.5	%

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended
	September 30, 2004							June 30, 2004
	Balance			Interest		Rate (1)		Balance			Interest		Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	7,159,211		$	103,033	5.73	%	$	6,946,626		$	96,859	5.61	%
Taxable investment securities		2,037,040			18,247	3.56	%		2,299,834			19,652	3.44	%
Tax-exempt investment securities		262,962			2,407	3.64	%		272,891			2,540	3.74	%
Equity securities		138,264			1,035	2.98	%		137,528			992	2.90	%
Total Investment Securities		2,438,266			21,689	3.54	%		2,710,253			23,184	3.44	%
Short-term investments		126,089			2,225	7.02	%		122,375			1,981	6.51	%
Total Interest-earning Assets		9,723,566			126,947	5.19	%		9,779,254			122,024	5.02	%
Noninterest-earning assets:
Cash and due from banks		326,204							332,653
Premises and equipment		130,776							130,737
Other assets		453,196							447,700
Less: Allowance for loan losses		(87,148	)						(86,800	)
Total Assets	$	10,546,594						$	10,603,544
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,399,005		$	1,863	0.53	%	$	1,362,761		$	1,634	0.48	%
Savings deposits		1,868,650			2,972	0.63	%		1,857,175			2,637	0.57	%
Time deposits		2,764,597			17,809	2.56	%		2,841,569			18,074	2.56	%
Total Interest-bearing Deposits		6,032,252			22,644	1.49	%		6,061,505			22,345	1.48	%
Short-term borrowings		1,208,379			3,840	1.26	%		1,282,657			3,135	0.98	%
Long-term debt		654,969			7,962	4.84	%		656,803			7,838	4.80	%
Total Interest-bearing Liabilities		7,895,600			34,446	1.74	%		8,000,965			33,318	1.67	%
Noninterest-bearing liabilities:
Demand deposits		1,429,259							1,386,770
Other		119,551							114,219
Total Liabilities		9,444,410							9,501,954
Shareholders’ equity		1,102,184							1,101,590
Total Liabilities and Shareholders’ Equity	$	10,546,594						$	10,603,544
Net interest income				$	92,501						$	88,706
Net interest margin (FTE)						3.88	%						3.73	%

(1) Yields on tax-exempt securities are not fully taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

	Quarter Ended September 30						Nine Months Ended September 30
	2004			2003			2004			2003
				(in thousands)
Gross charge-offs	$	2,176		$	2,854		$	6,490		$	9,765
Recoveries		1,139			807			3,840			2,713
Net Charge-offs	$	1,037		$	2,047		$	2,650		$	7,052
Net charge-offs to average loans		0.06	%		0.14	%		0.08	%		0.17	%
Non-accrual loans	$	23,422		$	27,155
Accruing loans 90+ days overdue		10,962			10,286
Other real estate owned		1,325			952
Total Non-Performing Assets	$	35,709		$	38,393
Non-accrual loans to total loans		0.32	%		0.46	%
Non-performing assets to total loans and OREO		0.49	%		0.66	%
Non-performing assets to total assets		0.34	%		0.41	%
Allowance to loans		1.20	%		1.33	%
	Quarter Ended
	September 30 2004			June 30 2004
	(in thousands)
Gross charge-offs	$	2,176		$	1,627
Recoveries		1,139			1,183
Net Charge-offs	$	1,037		$	444
Net charge-offs to average loans		0.06	%		0.03	%
Non-accrual Loans	$	23,422		$	21,961
Accruing loans 90+ days overdue		10,962			9,314
Other real estate owned		1,325			1,119
Total Non-Performing Assets	$	35,709		$	32,394
Non-accrual loans to total loans		0.32	%		0.31	%
Non-performing assets to total loans and OREO		0.49	%		0.46	%
Non-performing assets to total assets		0.34	%		0.31	%
Allowance to loans		1.20	%		1.23	%