Fulton Financial Reports First Quarter Earnings of $0.22 per Share

LANCASTER, PA--(Marketwired - Apr 22, 2014) - Fulton Financial Corporation (NASDAQ: FULT)

Diluted earnings per share for the first quarter of 2014 was 22 cents, unchanged from the fourth quarter of 2013 and a 10.0 percent increase from the first quarter of 2013.
Net interest income for the first quarter of 2014 decreased $3.4 million, or 2.5 percent, compared to the fourth quarter of 2013. The net interest margin for the first quarter of 2014 decreased one basis point, to 3.47 percent, compared to the fourth quarter of 2013.
Average interest-earning assets decreased $77.9 million, or 0.5 percent, compared to the fourth quarter of 2013, with average loans decreasing $30.2 million, or 0.2 percent.
Non-interest income, excluding investment securities gains, decreased $2.2 million, or 5.4 percent, in comparison to the fourth quarter of 2013, while non-interest expense decreased $7.2 million, or 6.2 percent.
During the first quarter of 2014, the Corporation implemented a number of its previously disclosed cost savings initiatives, including the consolidation of 13 branches, subsidiary bank management restructurings and changes to certain benefit plans. These initiatives resulted in implementation expenses, net of associated gains, of approximately $1.0 million and expense reductions of approximately $1.0 million during the first quarter of 2014. Annualized expense reductions from these cost savings initiatives are expected to be approximately $8.0 million.
The provision for credit losses was $2.5 million for the first quarter of 2014, unchanged from the fourth quarter of 2013 and a $12.5 million, or 83.3 percent, decrease from the first quarter of 2013. Non-performing loans increased $653,000, or 0.4 percent, in comparison to December 31, 2013 and decreased $53.7 million, or 25.7 percent, in comparison to March 31, 2013.
During the first quarter of 2014, the Corporation repurchased 4.0 million shares of common stock, completing its outstanding share repurchase program.

Fulton Financial Corporation (NASDAQ: FULT) reported net income of $41.8 million, or 22 cents per diluted share, for the first quarter of 2014, compared to $42.1 million, or 22 cents per diluted share, for the fourth quarter of 2013.

"We were pleased to report another quarter of solid earnings and good returns on assets and equity," said E. Philip Wenger, Chairman, CEO and President. "Asset quality remained strong this quarter. We also saw a significant reduction in operating expenses that contributed to improved efficiency. During the quarter, we completed our previously announced four million share repurchase program."

Net Interest Income and Margin Net interest income for the first quarter of 2014 decreased $3.4 million, or 2.5 percent, from the fourth quarter of 2013. The net interest margin decreased one basis point, or 0.3 percent, to 3.47 percent, in the first quarter of 2014 from 3.48 percent in the fourth quarter of 2013. Average yields on interest-earning assets decreased one basis point, while the average cost of interest-bearing liabilities increased one basis point.

Average Balance Sheet Total average assets for the first quarter of 2014 were $16.9 billion, a decrease of $60.2 million, or 0.4 percent, from the fourth quarter of 2013. Average loans, net of unearned income, decreased $30.2 million, or 0.2 percent, in comparison to the fourth quarter of 2013.


		Quarter Ended								Increase (decrease)
		March 31, 2014				December 31, 2013				in Balance
		Balance		Yield (1)		Balance		Yield (1)		$			%
		(dollars in thousands)
Average Loans, net of unearned income, by type:
	Real estate - commercial mortgage	$	5,085,128	4.44	%	$	5,065,963	4.49	%	$	19,165		0.4	%
	Commercial - industrial, financial and agricultural		3,637,075	4.03	%		3,639,690	4.03	%		(2,615	)	(0.1	%)
	Real estate - home equity		1,755,346	4.18	%		1,774,919	4.18	%		(19,573	)	(1.1	%)
	Real estate - residential mortgage		1,336,323	3.99	%		1,331,987	4.04	%		4,336		0.3	%
	Real estate - construction		576,346	4.08	%		581,306	4.15	%		(4,960	)	(0.9	%)
	Consumer		274,910	4.82	%		287,245	4.85	%		(12,335	)	(4.3	%)
	Leasing and other		97,229	9.79	%		111,456	8.01	%		(14,227	)	(12.8	%)

	Total Average Loans, net of unearned income	$	12,762,357	4.28	%	$	12,792,566	4.29	%	$	(30,209	)	(0.2	%)

(1)		Presented on a tax-equivalent basis using a 35% Federal tax rate and statutory interest expense disallowances.

Total average liabilities decreased $72.3 million, or 0.5 percent, from the fourth quarter of 2013, due to a $187.7 million decrease in average deposits, partially offset by a $109.2 million, or 9.9 percent, increase short-term borrowings.


		Quarter Ended								Increase (decrease)
		March 31, 2014				December 31, 2013				in Balance
		Balance		Rate		Balance		Rate		$			%
		(dollars in thousands)
Average Deposits, by type:
	Noninterest-bearing demand	$	3,243,424	-	%	$	3,318,073	-	%	$	(74,649	)	(2.2	%)
	Interest-bearing demand		2,945,211	0.13	%		2,966,994	0.13	%		(21,783	)	(0.7	%)
	Savings deposits		3,351,871	0.13	%		3,410,030	0.12	%		(58,159	)	(1.7	%)
Total average demand and savings			9,540,506	0.08	%		9,695,097	0.08	%		(154,591	)	(1.6	%)
	Time deposits		2,932,456	0.82	%		2,965,604	0.82	%		(33,148	)	(1.1	%)

	Total Average Deposits	$	12,472,962	0.26	%	$	12,660,701	0.25	%	$	(187,739	)	(1.5	%)

Asset Quality Non-performing assets were $170.2 million, or 1.01 percent of total assets, at March 31, 2014, compared to $169.3 million, or 1.00 percent of total assets, at December 31, 2013 and $232.5 million, or 1.39 percent of total assets, at March 31, 2013. The $901,000, or 0.5 percent, increase in non-performing assets in comparison to the fourth quarter of 2013 was primarily due to an increase in non-performing commercial mortgages and commercial loans, partially offset by a decrease in non-performing residential mortgages.

Annualized net charge-offs for the quarter ended March 31, 2014 were 0.26 percent of average total loans, compared to 0.33 percent for the quarter ended December 31, 2013 and 0.62 percent for the quarter ended March 31, 2013. The allowance for credit losses as a percentage of non-performing loans was 128.5 percent at March 31, 2014, as compared to 132.8 percent at December 31, 2013 and 106.2 percent at March 31, 2013.

Non-interest Income Non-interest income, excluding investment securities gains, decreased $2.2 million, or 5.4 percent, in comparison to the fourth quarter of 2013. Service charges on deposit accounts decreased $1.1 million, or 8.3 percent, including a $649,000 decrease in overdraft fees. Mortgage banking income decreased $758,000, including a $715,000 decrease in gains on sales of mortgage loans, as both volumes and spreads decreased.

Non-interest Expense Non-interest expense decreased $7.2 million, or 6.2 percent, in the first quarter of 2014 compared to the fourth quarter of 2013. Salaries and employee benefits decreased $5.6 million, or 8.6 percent, due primarily to decreases in incentive compensation and health insurance expense, in addition to a $1.5 million gain recognized as a result of an amendment of the Corporation's postretirement health plan. These decreases were partially offset by a seasonal increase in payroll taxes and an increase in severance costs. A $1.5 million increase in net occupancy expense was mainly a result of increased snow removal costs. Other outside services declined $1.8 million due to the timing of consulting arrangements related to risk management and compliance initiatives.

About Fulton Financial Fulton Financial Corporation is a Lancaster, Pennsylvania-based financial holding company that has banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates, headquartered as indicated: Fulton Bank, N.A., Lancaster, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Fulton Bank of New Jersey, Mt. Laurel, NJ; and The Columbia Bank, Columbia, MD.

The Corporation's investment management and trust services are offered at all banks through Fulton Financial Advisors, a division of Fulton Bank, N.A. Residential mortgage lending is offered by all banks under the Fulton Mortgage Company brand.

Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.

Safe Harbor Statement This news release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions which are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the Corporation's control and ability to predict, that could cause actual results to differ materially from those expressed in the forward-looking statements.

A discussion of certain risks and uncertainties affecting the Corporation, and some of the factors that could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, can be found in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2013, which has been filed with the Securities and Exchange Commission and is available in the Investor Relations section of the Corporation's website (www.fult.com) and on the Securities and Exchange Commission's website (www.sec.gov). The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures The Corporation uses certain non-GAAP financial measures in this earnings release. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this release.



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

													% Change from
				March 31			March 31			December 31			March 31		December 31
				2014			2013			2013			2013		2013

ASSETS

	Cash and due from banks			$	260,389		$	174,479		$	218,540		49.2	%	19.1	%
	Other interest-earning assets				307,062			171,684			248,161		78.9	%	23.7	%
	Loans held for sale				24,417			63,045			21,351		(61.3	%)	14.4	%
	Investment securities				2,501,198			2,736,269			2,568,434		(8.6	%)	(2.6	%)
	Loans, net of unearned income				12,733,792			12,377,288			12,782,220		2.9	%	(0.4	%)
	Allowance for loan losses				(197,089	)		(220,041	)		(202,780	)	(10.4	%)	(2.8	%)
		Net loans			12,536,703			12,157,247			12,579,440		3.1	%	(0.3	%)
	Premises and equipment				225,647			226,754			226,021		(0.5	%)	(0.2	%)
	Accrued interest receivable				43,376			47,485			44,037		(8.7	%)	(1.5	%)
	Goodwill and intangible assets				532,747			534,987			533,076		(0.4	%)	(0.1	%)
	Other assets				480,350			570,787			495,574		(15.8	%)	(3.1	%)

			Total Assets	$	16,911,889		$	16,682,737		$	16,934,634		1.4	%	(0.1	%)

LIABILITIES AND SHAREHOLDERS' EQUITY

	Deposits			$	12,669,917		$	12,388,460		$	12,491,186		2.3	%	1.4	%
	Short-term borrowings				1,069,684			1,126,966			1,258,629		(5.1	%)	(15.0	%)
	Other liabilities				230,108			216,337			238,048		6.4	%	(3.3	%)
	FHLB advances and long-term debt				883,461			889,211			883,584		(0.6	%)	-

		Total Liabilities			14,853,170			14,620,974			14,871,447		1.6	%	(0.1	%)

	Shareholders' equity				2,058,719			2,061,763			2,063,187		(0.1	%)	(0.2	%)

			Total Liabilities and Shareholders' Equity	$	16,911,889		$	16,682,737		$	16,934,634		1.4	%	(0.1	%)

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:

Loans, by type:
	Real estate - commercial mortgage			$	5,137,454		$	4,729,930		$	5,101,922		8.6	%	0.7	%
	Commercial - industrial, financial and agricultural				3,574,130			3,658,483			3,628,420		(2.3	%)	(1.5	%)
	Real estate - home equity				1,740,496			1,689,446			1,764,197		3.0	%	(1.3	%)
	Real estate - residential mortgage				1,331,465			1,303,454			1,337,380		2.1	%	(0.4	%)
	Real estate - construction				584,217			597,597			573,672		(2.2	%)	1.8	%
	Consumer				270,021			309,138			283,124		(12.7	%)	(4.6	%)
	Leasing and other				96,009			89,240			93,505		7.6	%	2.7	%

	Total Loans, net of unearned income			$	12,733,792		$	12,377,288		$	12,782,220		2.9	%	(0.4	%)

Deposits, by type:
	Noninterest-bearing demand			$	3,359,900		$	3,075,511		$	3,283,172		9.2	%	2.3	%
	Interest-bearing demand				2,960,577			2,698,811			2,945,210		9.7	%	0.5	%
	Savings deposits				3,346,880			3,345,842			3,344,882		-		0.1	%
	Time deposits				3,002,560			3,268,296			2,917,922		(8.1	%)	2.9	%

	Total Deposits			$	12,669,917		$	12,388,460		$	12,491,186		2.3	%	1.4	%

Short-term borrowings, by type:
	Customer repurchase agreements			$	220,426		$	158,214		$	175,621		39.3	%	25.5	%
	Customer short-term promissory notes				88,160			114,231			100,572		(22.8	%)	(12.3	%)
	Federal funds purchased				361,098			729,521			582,436		(50.5	%)	(38.0	%)
	Short-term FHLB advances				400,000			125,000			400,000		220.0	%	-

	Total Short-term Borrowings			$	1,069,684		$	1,126,966		$	1,258,629		(5.1	%)	(15.0	%)


FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
in thousands, except per-share data and percentages

			Quarter Ended									% Change from
			Mar 31			Mar 31			Dec 31			Mar 31		Dec 31
			2014			2013			2013			2013		2013

Interest Income:
	Interest income		$	148,792		$	151,322		$	152,457		(1.7	%)	(2.4	%)
	Interest expense			19,227			21,678			19,505		(11.3	%)	(1.4	%)

		Net Interest Income		129,565			129,644			132,952		(0.1	%)	(2.5	%)
	Provision for credit losses			2,500			15,000			2,500		(83.3	%)	-

		Net Interest Income after Provision		127,065			114,644			130,452		10.8	%	(2.6	%)

Non-Interest Income:
	Service charges on deposit accounts			11,711			14,111			12,770		(17.0	%)	(8.3	%)
	Investment management and trust services			10,958			10,096			10,589		8.5	%	3.5	%
	Other service charges and fees			8,927			8,510			9,421		4.9	%	(5.2	%)
	Mortgage banking income			3,605			8,173			4,363		(55.9	%)	(17.4	%)
	Investment securities gains			-			2,473			33		(100.0	%)	(100.0	%)
	Other			3,305			3,896			3,556		(15.2	%)	(7.1	%)

		Total Non-Interest Income		38,506			47,259			40,732		(18.5	%)	(5.5	%)

Non-Interest Expense:
	Salaries and employee benefits			59,566			61,212			65,194		(2.7	%)	(8.6	%)
	Net occupancy expense			13,603			11,844			12,134		14.9	%	12.1	%
	Other outside services			3,812			2,860			5,633		33.3	%	(32.3	%)
	Data processing			3,796			3,903			3,386		(2.7	%)	12.1	%
	Equipment expense			3,602			3,908			3,972		(7.8	%)	(9.3	%)
	Software			2,925			2,748			2,450		6.4	%	19.4	%
	Professional fees			2,904			3,047			3,379		(4.7	%)	(14.1	%)
	FDIC insurance expense			2,689			2,847			2,839		(5.5	%)	(5.3	%)
	Operating risk loss			1,828			1,766			2,367		3.5	%	(22.8	%)
	Marketing			1,584			1,872			1,660		(15.4	%)	(4.6	%)
	Other real estate owned and repossession expense			983			2,854			1,116		(65.6	%)	(11.9	%)
	Intangible amortization			315			534			834		(41.0	%)	(62.2	%)
	Other			11,947			11,541			11,798		3.5	%	1.3	%

		Total Non-Interest Expense		109,554			110,936			116,762		(1.2	%)	(6.2	%)

		Income Before Income Taxes		56,017			50,967			54,422		9.9	%	2.9	%
	Income tax expense			14,234			11,740			12,339		21.2	%	15.4	%

		Net Income	$	41,783		$	39,227		$	42,083		6.5	%	(0.7	%)


PER SHARE:

	Net income:
		Basic	$	0.22		$	0.20		$	0.22		10.0	%	-
		Diluted		0.22			0.20			0.22		10.0	%	-

	Cash dividends		$	0.08		$	0.08		$	0.08		-		-
	Shareholders' equity			10.90			10.56			10.71		3.2	%	1.8	%
	Shareholders' equity (tangible)			8.08			7.82			7.94		3.3	%	1.8	%

	Weighted average shares (basic)			189,467			196,299			191,577		(3.5	%)	(1.1	%)
	Weighted average shares (diluted)			190,489			197,217			192,658		(3.4	%)	(1.1	%)
	Shares outstanding, end of period			188,850			195,276			192,652		(3.3	%)	(2.0	%)

SELECTED FINANCIAL RATIOS:

	Return on average assets			1.01	%		0.96	%		0.99	%
	Return on average shareholders' equity			8.21	%		7.67	%		8.14	%
	Return on average shareholders' equity (tangible)			11.13	%		10.43	%		11.15	%
	Net interest margin			3.47	%		3.55	%		3.48	%
	Efficiency ratio			63.38	%		61.78	%		65.14	%

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


		Quarter Ended
		March 31, 2014								March 31, 2013								December 31, 2013
		Average Balance			Interest (1)			Yield/ Rate		Average Balance			Interest (1)			Yield/ Rate		Average Balance			Interest (1)			Yield/ Rate
ASSETS

Interest-earning assets:
	Loans, net of unearned income	$	12,762,357		$	134,749		4.28	%	$	12,257,280		$	136,948		4.53	%	$	12,792,566		$	138,336		4.29	%
	Taxable investment securities		2,257,773			13,266		2.35	%		2,421,178			13,397		2.22	%		2,289,672			13,431		2.35	%
	Tax-exempt investment securities		279,278			3,613		5.17	%		292,118			3,814		5.22	%		283,799			3,574		5.04	%
	Equity securities		33,922			429		5.11	%		44,371			510		4.64	%		33,887			413		4.83	%

	Total Investment Securities		2,570,973			17,308		2.70	%		2,757,667			17,721		2.57	%		2,607,358			17,418		2.67	%

	Loans held for sale		13,426			134		4.00	%		47,885			495		4.14	%		20,059			290		5.78	%
	Other interest-earning assets		258,803			882		1.36	%		190,576			429		0.90	%		263,478			737		1.12	%

	Total Interest-earning Assets		15,605,559			153,073		3.97	%		15,253,408			155,593		4.13	%		15,683,461			156,781		3.98	%

Noninterest-earning assets:
	Cash and due from banks		199,641								202,507								212,463
	Premises and equipment		226,295								226,466								226,955
	Other assets		1,032,071								1,071,440								1,008,304
	Less: allowance for loan losses		(203,201)								(227,858	)							(210,636	)

	Total Assets	$	16,860,365							$	16,525,963							$	16,920,547


LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
	Demand deposits	$	2,945,211		$	909		0.13	%	$	2,705,835		$	877		0.13	%	$	2,966,994		$	969		0.13	%
	Savings deposits		3,351,871			1,035		0.13	%		3,334,305			1,023		0.12	%		3,410,030			1,042		0.12	%
	Time deposits		2,932,456			5,952		0.82	%		3,321,309			8,501		1.04	%		2,965,604			6,117		0.82	%

	Total Interest-bearing Deposits		9,229,538			7,896		0.35	%		9,361,449			10,401		0.45	%		9,342,628			8,128		0.35	%

	Short-term borrowings		1,208,953			633		0.21	%		1,032,122			509		0.20	%		1,099,709			520		0.19	%
	FHLB advances and long-term debt		883,532			10,698		4.88	%		891,173			10,768		4.87	%		888,378			10,857		4.87	%

	Total Interest-bearing Liabilities		11,322,023			19,227		0.69	%		11,284,744			21,678		0.78	%		11,330,715			19,505		0.68	%

Noninterest-bearing liabilities:
	Demand deposits			3,243,424							2,968,777								3,318,073
	Other			232,004							198,944								221,010

	Total Liabilities			14,797,451							14,452,465								14,869,798

	Shareholders' equity			2,062,914							2,073,498								2,050,749

	Total Liabilities and Shareholders' Equity	$		16,860,365						$	16,525,963							$	16,920,547

	Net interest income/net interest margin (fully taxable equivalent)					133,846		3.47	%					133,915		3.55	%					137,276		3.48	%
	Tax equivalent adjustment					(4,281	)							(4,271	)							(4,324	)

	Net interest income				$	129,565							$	129,644							$	132,952


(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
			2014		2013		2013	2013		2013

Loans, by type:
	Real estate - commercial mortgage	$	5,085,128	$	4,666,494	$	5,065,963	9.0	%	0.4	%
	Commercial - industrial, financial and agricultural		3,637,075		3,662,566		3,639,690	(0.7	%)	(0.1	%)
	Real estate - home equity		1,755,346		1,662,173		1,774,919	5.6	%	(1.1	%)
	Real estate - residential mortgage		1,336,323		1,283,168		1,331,987	4.1	%	0.3	%
	Real estate - construction		576,346		591,338		581,306	(2.5	%)	(0.9	%)
	Consumer		274,910		305,480		287,245	(10.0	%)	(4.3	%)
	Leasing and other		97,229		86,061		111,456	13.0	%	(12.8	%)

	Total Loans, net of unearned income	$	12,762,357	$	12,257,280	$	12,792,566	4.1	%	(0.2	%)

Deposits, by type:
	Noninterest-bearing demand	$	3,243,424	$	2,968,777	$	3,318,073	9.3	%	(2.2	%)
	Interest-bearing demand		2,945,211		2,705,835		2,966,994	8.8	%	(0.7	%)
	Savings deposits		3,351,871		3,334,305		3,410,030	0.5	%	(1.7	%)
	Time deposits		2,932,456		3,321,309		2,965,604	(11.7	%)	(1.1	%)

	Total Deposits	$	12,472,962	$	12,330,226	$	12,660,701	1.2	%	(1.5	%)

Short-term borrowings, by type:
	Customer repurchase agreements	$	187,362	$	165,109	$	196,997	13.5	%	(4.9	%)
	Customer short-term promissory notes		102,000		112,041		93,986	(9.0	%)	8.5	%
	Federal funds purchased		416,230		709,779		408,726	(41.4	%)	1.8	%
	Short-term FHLB advances and other borrowings		503,361		45,193		400,000	N/M		25.8	%

	Total Short-term Borrowings	$	1,208,953	$	1,032,122	$	1,099,709	17.1	%	9.9	%

N/M - Not meaningful




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

			Quarter Ended
			Mar 31			Mar 31			Dec 31
			2014			2013			2013
ALLOWANCE FOR CREDIT LOSSES:

	Balance at beginning of period		$	204,917		$	225,439		$ 212,838

	Loans charged off:
		Commercial - industrial, financial and agricultural		(5,125	)		(9,502	)	(5,527)
		Consumer and home equity		(2,402	)		(2,954	)	(1,879)
		Real estate - commercial mortgage		(1,386	)		(4,133	)	(7,779)
		Real estate - residential mortgage		(846	)		(3,050	)	(1,423)
		Real estate - construction		(214	)		(1,986	)	(1,391)
		Leasing and other		(295	)		(481	)	(616)
		Total loans charged off		(10,268	)		(22,106	)	(18,615)
	Recoveries of loans previously charged off:
		Commercial - industrial, financial and agricultural		744			379		5,851
		Consumer and home equity		565			837		451
		Real estate - commercial mortgage		44			1,064		740
		Real estate - residential mortgage		116			81		106
		Real estate - construction		224			671		888
		Leasing and other		164			162		158
		Recoveries of loans previously charged off		1,857			3,194		8,194
	Net loans charged off			(8,411	)		(18,912	)	(10,421)
	Provision for credit losses			2,500			15,000		2,500

	Balance at end of period		$	199,006		$	221,527		$ 204,917

	Net charge-offs to average loans (annualized)			0.26	%		0.62	%	0.33%

NON-PERFORMING ASSETS:

	Non-accrual loans		$	133,705		$	179,334		$ 133,753
	Loans 90 days past due and accruing			21,225			29,325		20,524
		Total non-performing loans		154,930			208,659		154,277
	Other real estate owned			15,300			23,820		15,052

	Total non-performing assets		$	170,230		$	232,479		$ 169,329

NON-PERFORMING LOANS, BY TYPE:

	Real estate - commercial mortgage		$	45,876		$	58,805		$ 44,068
	Commercial - industrial, financial and agricultural			38,830			61,113		38,021
	Real estate - residential mortgage			29,305			36,361		31,347
	Real estate - construction			20,758			31,919		21,267
	Consumer and home equity			20,087			20,250		19,526
	Leasing			74			211		48

	Total non-performing loans		$	154,930		$	208,659		$ 154,277


TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:

	Real-estate - residential mortgage		$	30,363		$	33,095		$ 28,815
	Real-estate - commercial mortgage			19,514			28,421		19,758
	Real estate - construction			8,430			11,125		10,117
	Commercial - industrial, financial and agricultural			6,755			9,031		8,045
	Consumer and home equity			2,622			1,549		1,376
	Total accruing TDRs			67,684			83,221		68,111
	Non-accrual TDRs (1)			27,487			33,215		30,209
	Total TDRs		$	95,171		$	116,436		$ 98,320

(1) Included within non-accrual loans above.


DELINQUENCY RATES, BY TYPE:

		March 31, 2014			March 31, 2013			December 31, 2013
		31-89 Days	> than or = to 90 Days (2)	Total	31-89 Days	> than or = to 90 Days (2)	Total	31-89 Days	> than or = to 90 Days (2)	Total

	Real estate - commercial mortgage	0.35%	0.89%	1.24%	0.39%	1.25%	1.64%	0.38%	0.87%	1.25%
	Commercial - industrial, financial and agricultural	0.33%	1.09%	1.42%	0.35%	1.67%	2.02%	0.30%	1.04%	1.34%
	Real estate - construction	0.43%	3.55%	3.98%	0.17%	5.34%	5.51%	0.11%	3.71%	3.82%
	Real estate - residential mortgage	1.53%	2.20%	3.73%	2.07%	2.79%	4.86%	1.74%	2.34%	4.08%
	Consumer, home equity, leasing and other	0.89%	0.96%	1.85%	0.82%	0.98%	1.80%	1.10%	0.91%	2.01%

	Total	0.56%	1.22%	1.78%	0.62%	1.68%	2.30%	0.61%	1.20%	1.81%

(2) Includes non-accrual loans


ASSET QUALITY RATIOS:

		Mar 31		Mar 31		Dec 31
		2014		2013		2013

	Non-accrual loans to total loans	1.05	%	1.45	%	1.05	%
	Non-performing assets to total loans and OREO	1.34	%	1.87	%	1.32	%
	Non-performing assets to total assets	1.01	%	1.39	%	1.00	%
	Allowance for credit losses to loans outstanding	1.56	%	1.79	%	1.60	%
	Allowance for credit losses to non-performing loans	128.45	%	106.17	%	132.82	%
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses	9.87	%	13.30	%	9.76	%




FULTON FINANCIAL CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)
in thousands, except per share data and percentages

Explanatory note:

This press release contains certain financial information, as detailed below, which has been derived by methods other than Generally Accepted Accounting Principles ("GAAP"). The Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's quarterly results of operations. Presentation of these non-GAAP financial measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial 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. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:


		Quarter Ended
		March 31			March 31			December 31
		2014			2013			2013
Shareholders' equity (tangible), per share
Shareholders' equity		$	2,058,719		$	2,061,763		$	2,063,187
Less: Goodwill and intangible assets			(532,747	)		(534,987	)		(533,076	)
Tangible shareholders' equity (numerator)		$	1,525,972		$	1,526,776		$	1,530,111

Shares outstanding, end of period (denominator)			188,850			195,276			192,652

	Shareholders' equity (tangible), per share	$	8.08		$	7.82		$	7.94

Return on average common shareholders' equity (tangible)
Net income		$	41,783		$	39,227		$	42,083
Plus: Intangible amortization, net of tax			204			347			541
Numerator		$	41,987		$	39,574		$	42,624

Average shareholders' equity		$	2,062,914		$	2,073,498			2,050,749
Less: Average goodwill and intangible assets			(532,901	)		(535,255	)		(533,597	)
Average tangible shareholders' equity (denominator)		$	1,530,013		$	1,538,243		$	1,517,152

	Return on average common shareholders' equity (tangible), annualized		11.13	%		10.43	%		11.15	%

Efficiency ratio
Non-interest expense		$	109,554		$	110,936		$	116,762
Less: Intangible amortization			(315	)		(534	)		(834	)
Numerator		$	109,239		$	110,402		$	115,928

Net interest income (fully taxable equivalent)		$	133,846		$	133,915		$	137,276
Plus: Total Non-interest income			38,506			47,259			40,732
Less: Investment securities gains			-			(2,473	)		(33	)
Denominator		$	172,352		$	178,701		$	177,975

	Efficiency ratio		63.38	%		61.78	%		65.14	%

Non-performing assets to tangible common shareholders' equity and allowance for credit losses
Non-performing assets (numerator)		$	170,230		$	232,479		$	169,329

Tangible shareholders' equity		$	1,525,972		$	1,526,776		$	1,530,111
Plus: Allowance for credit losses			199,006			221,527			204,917
Tangible shareholders' equity and allowance for credit losses (denominator)		$	1,724,978		$	1,748,303		$	1,735,028

	Non-performing assets to tangible common shareholders' equity and allowance for credit losses		9.87	%		13.30	%		9.76	%