Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934



Date of Report (Date of earliest event reported):	July 22, 2014

Fulton Financial Corporation

(Exact name of Registrant as specified in its Charter)



Pennsylvania	0-10587	23-2195389
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)
One Penn Square Lancaster, Pennsylvania		17604
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: 717-291-2411

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 - Results of Operations and Financial Condition

On July 22, 2014 Fulton Financial Corporation ("Fulton") announced its results of operations for the second quarter ended June 30, 2014. A copy of the earnings release is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference. Supplemental financial information included with the earnings release is attached as Exhibit 99.2 to this report and incorporated herein by reference.

Item 9.01 Financial Statements And Exhibits

(d) Exhibits.



Exhibit No.	Description
99.1	Earnings Release dated July 22, 2014.
99.2	Supplemental financial information for the quarter ended June 30, 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Date: July 22, 2014	FULTON FINANCIAL CORPORATION
	By: /s/ Patrick S. Barrett
	Patrick S. Barrett
	Senior Executive Vice President and
	Chief Financial Officer

Exhibit 99.1

FULTON FINANCIAL

CORPORATION

FOR IMMEDIATE RELEASE

Media Contact: Laura J. Wakeley (717) 291-2616

Investor Contact: David C. Hostetter (717) 291-2456

Fulton Financial reports second quarter earnings of $0.21 per share


•	Diluted earnings per share for the second quarter of 2014 was 21 cents, a 4.5 percent decrease from the first quarter of 2014 and unchanged from the second quarter of 2013.


•	Net interest income for the second quarter of 2014 decreased $1.7 million, or 1.3 percent, compared to the first quarter of 2014. The net interest margin for the second quarter of 2014 decreased six basis points compared to the first quarter of 2014, to 3.41 percent.


•	The provision for credit losses was $3.5 million for the second quarter of 2014, a $1.0 million increase from the first quarter of 2014 and a $10.0 million, or 74.1 percent, decrease from the second quarter of 2013. Non-performing loans decreased $5.6 million, or 3.6 percent, in comparison to March 31, 2014 and decreased $39.9 million, or 21.1 percent, in comparison to June 30, 2013.


•	Non-interest income, excluding investment securities gains, increased $5.3 million, or 13.6 percent, in comparison to the first quarter of 2014, while non-interest expense increased $6.6 million, or 6.0 percent.


•	In May 2014, the Corporation announced that its Board of Directors approved the repurchase of up to four million shares of the Corporation’s common stock, or approximately 2.1% of outstanding shares, through December 31, 2014. No shares were repurchased during the second quarter of 2014.

(July 22, 2014) - Lancaster, PA - Fulton Financial Corporation (NASDAQ: FULT) reported net income of $39.6 million, or 21 cents per diluted share, for the second quarter of 2014, compared to $41.8 million, or 22 cents per diluted share, for the first quarter of 2014.

“Loans increased in the second quarter and overall asset quality continued to improve,” said E. Philip Wenger, Chairman, CEO and President. “We also saw a significant increase in non-interest income. Noninterest-bearing deposits showed continued good growth, but lower yields on earning assets combined with higher overall funding costs put modest pressure on our net interest margin. Non-interest expenses reflected the continued build-out of our risk management and regula

tory compliance infrastructures. During the quarter, we were pleased to announce another four million share stock repurchase program through the end of the year.”

Net Interest Income and Margin

Net interest income for the second quarter of 2014 decreased $1.7 million, or 1.3 percent, from the first quarter of 2014. The net interest margin decreased six basis points, or 1.7 percent, to 3.41 percent, in the second quarter of 2014 from 3.47 percent in the first quarter of 2014. Average yields on interest-earning assets decreased five basis points, while the average cost of interest-bearing liabilities increased two basis points.

Average Balance Sheet

Total average assets for the second quarter of 2014 were $16.8 billion, a decrease of $28.7 million, or 0.2 percent, from the first quarter of 2014. Average loans, net of unearned income, increased $33.4 million, or 0.3 percent, in comparison to the first quarter of 2014.



	Three Months Ended								Increase (decrease)
	June 30, 2014				March 31, 2014				in Balance
	Balance		Yield (1)		Balance		Yield (1)		$			%
	(dollars in thousands)
Average Loans, net of unearned income, by type:
Real estate - commercial mortgage	$	5,138,537	4.36	%	$	5,085,128	4.44	%	$	53,409		1.1	%
Commercial - industrial, financial, and agricultural	3,617,977		3.95	%	3,637,075		4.03	%	(19,098		)	(0.5	)%
Real estate - home equity	1,735,767		4.18	%	1,755,346		4.18	%	(19,579		)	(1.1	)%
Real estate - residential mortgage	1,339,034		3.97	%	1,336,323		3.99	%	2,711			0.2	%
Real estate - construction	588,176		4.17	%	576,346		4.08	%	11,830			2.1	%
Consumer	276,444		4.56	%	274,910		4.82	%	1,534			0.6	%
Leasing and other	99,812		8.83	%	97,229		9.79	%	2,583			2.7	%
Total Average Loans, net of unearned income	$	12,795,747	4.21	%	$	12,762,357	4.28	%	$	33,390		0.3	%

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

Total average liabilities decreased $47.7 million, or 0.3 percent, from the first quarter of 2014, due mainly to a $161.3 million, or 13.3%, decrease in short-term borrowings, partially offset by a $132.1 million, or 1.1 percent, increase in average deposits.



	Three Months Ended								Increase (decrease)
	June 30, 2014				March 31, 2014				in Balance
	Balance		Rate		Balance		Rate		$			%
	(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand	$	3,322,195	—	%	$	3,243,424	—	%	$	78,771		2.4	%
Interest-bearing demand	2,914,887		0.12	%	2,945,211		0.13	%	(30,324		)	(1.0	)%
Savings deposits	3,355,929		0.12	%	3,351,871		0.13	%	4,058			0.1	%
Total average demand and savings	9,593,011		0.08	%	9,540,506		0.08	%	52,505			0.6	%
Time deposits	3,012,061		0.90	%	2,932,456		0.82	%	79,605			2.7	%
Total Average Deposits	$	12,605,072	0.28	%	$	12,472,962	0.26	%	$	132,110		1.1	%

Asset Quality

Non-performing assets were $162.8 million, or 0.96 percent of total assets, at June 30, 2014, compared to $170.2 million, or 1.01 percent of total assets, at March 31, 2014 and $210.2 million, or 1.23 percent of total assets, at June 30, 2013. The $7.4 million, or 4.4 percent, decrease in non-performing assets in comparison to the first quarter of 2014 was primarily due to decreases in non-performing commercial mortgages, residential mortgages, consumer and home equity loans and other real estate owned.

Annualized net charge-offs for the quarter ended June 30, 2014 were 0.28 percent of average total loans, compared to 0.26 percent for the quarter ended March 31, 2014 and 0.56 percent for the quarter ended June 30, 2013. The allowance for credit losses as a percentage of non-performing loans was 129.6 percent at June 30, 2014, as compared to 128.5 percent at March 31, 2014 and 115.0 percent at June 30, 2013.

Non-interest Income

Non-interest income, excluding investment securities gains, increased $5.3 million, or 13.6 percent, in comparison to the first quarter of 2014. Mortgage banking income increased $2.1 million as volumes increased and amortization of mortgage servicing rights declined in the second quarter. Other service charges and fees increased $1.6 million, or 17.9%, including a $1.1 million increase in merchant fee income. Service charges on deposit accounts increased $841,000, or 7.2 percent, including a $245,000 increase in overdraft fees.

Non-interest Expense

Non-interest expense increased $6.6 million, or 6.0 percent, in the second quarter of 2014 compared to the first quarter of 2014. Salaries and employee benefits increased $4.1 million, or 6.8 percent, in comparison to the first quarter of 2014, due primarily to increases in incentive compensation accruals, self-insured healthcare costs and stock compensation expense, partially offset by a seasonal decrease in payroll taxes. Also contributing to the increase in non-interest

expense was a $3.4 million increase in other outside services, associated, in part, with the recent acceleration of risk management and compliance efforts, including those in connection with the enhancement of the Corporation’s program for compliance with the Bank Secrecy Act, the USA Patriot Act of 2001 and related anti-money laundering regulations, which is the subject of recent enforcement orders received by three of the Corporation’s banking subsidiaries. These enforcement orders were discussed in greater detail in the Corporation’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2014. Net occupancy expense decreased $2.1 million due to snow removal costs incurred in the first quarter of 2014, and the impact of branch consolidations.

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, and the

Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, which have been filed with the Securities and Exchange Commission and are 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.



Exhibit 99.2

FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)
dollars in thousands
											% Change from
		June 30			June 30			March 31			June 30		March 31
		2014			2013			2014			2013		2014
ASSETS
	Cash and due from banks	$	258,837		$	219,944		$	260,389		17.7	%	(0.6	)%
	Other interest-earning assets	305,518			225,398			307,062			35.5	%	(0.5	)%
	Loans held for sale	36,079			60,909			24,417			(40.8	)%	47.8	%
	Investment securities	2,497,776			2,819,192			2,501,198			(11.4	)%	(0.1	)%
	Loans, net of unearned income	12,839,511			12,645,418			12,733,792			1.5	%	0.8	%
	Allowance for loan losses	(191,685		)	(216,431		)	(197,089		)	(11.4	)%	(2.7	)%
	Net loans	12,647,826			12,428,987			12,536,703			1.8	%	0.9	%
	Premises and equipment	225,168			224,418			225,647			0.3	%	(0.2	)%
	Accrued interest receivable	42,116			45,713			43,376			(7.9	)%	(2.9	)%
	Goodwill and intangible assets	532,432			534,452			532,747			(0.4	)%	(0.1	)%
	Other assets	487,887			463,397			480,350			5.3	%	1.6	%
	Total Assets	$	17,033,639		$	17,022,410		$	16,911,889		0.1	%	0.7	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	12,693,659		$	12,257,809		$	12,669,917		3.6	%	0.2	%
	Short-term borrowings	1,008,307			1,620,318			1,069,684			(37.8	)%	(5.7	)%
	Other liabilities	263,478			226,384			230,108			16.4	%	14.5	%
	FHLB advances and long-term debt	968,395			889,167			883,461			8.9	%	9.6	%
	Total Liabilities	14,933,839			14,993,678			14,853,170			(0.4	)%	0.5	%
	Shareholders' equity	2,099,800			2,028,732			2,058,719			3.5	%	2.0	%
	Total Liabilities and Shareholders' Equity	$	17,033,639		$	17,022,410		$	16,911,889		0.1	%	0.7	%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	5,128,734		$	4,856,916		$	5,137,454		5.6	%	(0.2	)%
	Commercial - industrial, financial and agricultural	3,601,721			3,712,974			3,574,130			(3.0	)%	0.8	%
	Real estate - home equity	1,730,497			1,760,268			1,740,496			(1.7	)%	(0.6	)%
	Real estate - residential mortgage	1,361,976			1,313,345			1,331,465			3.7	%	2.3	%
	Real estate - construction	634,018			610,280			584,217			3.9	%	8.5	%
	Consumer	280,557			300,233			270,021			(6.6	)%	3.9	%
	Leasing and other	102,008			91,402			96,009			11.6	%	6.2	%
	Total Loans, net of unearned income	$	12,839,511		$	12,645,418		$	12,733,792		1.5	%	0.8	%
Deposits, by type:
	Noninterest-bearing demand	$	3,484,125		$	3,168,781		$	3,359,900		10.0	%	3.7	%
	Interest-bearing demand	2,855,511			2,714,545			2,960,577			5.2	%	(3.5	)%
	Savings deposits	3,338,018			3,272,557			3,346,880			2.0	%	(0.3	)%
	Time deposits	3,016,005			3,101,926			3,002,560			(2.8	)%	0.4	%
	Total Deposits	$	12,693,659		$	12,257,809		$	12,669,917		3.6	%	0.2	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	212,930		$	196,188		$	220,426		8.5	%	(3.4	)%
	Customer short-term promissory notes	86,366			93,671			88,160			(7.8	)%	(2.0	)%
	Federal funds purchased	384,011			780,459			361,098			(50.8	)%	6.3	%
	Short-term FHLB advances	325,000			550,000			400,000			(40.9	)%	(18.8	)%
	Total Short-term Borrowings	$	1,008,307		$	1,620,318		$	1,069,684		(37.8	)%	(5.7	)%



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
in thousands, except per-share data and percentages
		Three Months Ended									% Change from				Six Months Ended
		June 30			June 30			March 31			Jun 30		Mar 31		June 30
		2014			2013			2014			2013		2014		2014			2013			% Change
Interest Income:
	Interest income	$	147,902		$	153,078		$	148,792		(3.4	)%	(0.6	)%	$	296,694		$	304,400		(2.5	)%
	Interest expense	20,004			21,013			19,227			(4.8	)%	4.0	%	39,231			42,691			(8.1	)%
	Net Interest Income	127,898			132,065			129,565			(3.2	)%	(1.3	)%	257,463			261,709			(1.6	)%
	Provision for credit losses	3,500			13,500			2,500			(74.1	)%	40.0	%	6,000			28,500			(78.9	)%
	Net Interest Income after Provision	124,398			118,565			127,065			4.9	%	(2.1	)%	251,463			233,209			7.8	%
Non-Interest Income:
	Service charges on deposit accounts	12,552			14,651			11,711			(14.3	)%	7.2	%	24,263			28,762			(15.6	)%
	Investment management and trust services	11,339			10,601			10,958			7.0	%	3.5	%	22,297			20,697			7.7	%
	Other service charges and fees	10,526			9,508			8,927			10.7	%	17.9	%	19,453			18,018			8.0	%
	Mortgage banking income	5,741			10,997			3,605			(47.8	)%	59.3	%	9,346			19,170			(51.2	)%
	Investment securities gains	1,112			2,865			—			(61.2	)%	N/M		1,112			5,338			(79.2	)%
	Other	3,602			3,694			3,305			(2.5	)%	9.0	%	6,907			7,590			(9.0	)%
	Total Non-Interest Income	44,872			52,316			38,506			(14.2	)%	16.5	%	83,378			99,575			(16.3	)%
Non-Interest Expense:
	Salaries and employee benefits	63,623			63,490			59,566			0.2	%	6.8	%	123,189			124,702			(1.2	)%
	Net occupancy expense	11,464			11,447			13,603			0.1	%	(15.7	)%	25,067			23,291			7.6	%
	Other outside services	7,240			5,315			3,812			36.2	%	89.9	%	11,052			8,175			35.2	%
	Data processing	4,331			4,509			3,796			(3.9	)%	14.1	%	8,127			8,412			(3.4	)%
	Professional fees	3,559			3,395			2,904			4.8	%	22.6	%	6,463			6,442			0.3	%
	Equipment expense	3,360			3,893			3,602			(13.7	)%	(6.7	)%	6,962			7,801			(10.8	)%
	Software	3,209			3,094			2,925			3.7	%	9.7	%	6,134			5,842			5.0	%
	FDIC insurance expense	2,615			3,001			2,689			(12.9	)%	(2.8	)%	5,304			5,848			(9.3	)%
	Marketing	2,337			1,922			1,584			21.6	%	47.5	%	3,921			3,794			3.3	%
	Other real estate owned and repossession expense	748			1,941			983			(61.5	)%	(23.9	)%	1,731			4,795			(63.9	)%
	Operating risk loss	716			1,860			1,828			(61.5	)%	(60.8	)%	2,544			3,626			(29.8	)%
	Intangible amortization	315			535			315			(41.1	)%	—	%	630			1,069			(41.1	)%
	Other	12,657			12,728			11,947			(0.6	)%	5.9	%	24,604			24,269			1.4	%
	Total Non-Interest Expense	116,174			117,130			109,554			(0.8	)%	6.0	%	225,728			228,066			(1.0	)%
	Income Before Income Taxes	53,096			53,751			56,017			(1.2	)%	(5.2	)%	109,113			104,718			4.2	%
	Income tax expense	13,500			13,169			14,234			2.5	%	(5.2	)%	27,734			24,909			11.3	%
	Net Income	$	39,596		$	40,582		$	41,783		(2.4	)%	(5.2	)%	$	81,379		$	79,809		2.0	%

PER SHARE:
	Net income:
	Basic	$	0.21		$	0.21		$	0.22		—	%	(4.5	)%	$	0.43		$	0.41		4.9	%
	Diluted	0.21			0.21			0.22			—	%	(4.5	)%	0.43			0.41			4.9	%

	Cash dividends	$	0.08		$	0.08		$	0.08		—	%	—	%	$	0.16		$	0.16		—	%
	Shareholders' equity	11.11			10.48			10.90			6.0	%	1.9	%	11.11			10.48			6.0	%
	Shareholders' equity (tangible)	8.29			7.72			8.08			7.4	%	2.6	%	8.29			7.72			7.4	%

	Weighted average shares (basic)	188,139			193,273			189,467			(2.7	)%	(0.7	)%	188,799			194,777			(3.1	)%
	Weighted average shares (diluted)	189,182			194,346			190,489			(2.7	)%	(0.7	)%	189,832			195,773			(3.0	)%
	Shares outstanding, end of period	189,033			193,658			188,850			(2.4	)%	0.1	%	189,033			193,658			(2.4	)%

SELECTED FINANCIAL RATIOS:
	Return on average assets	0.94		%	0.97		%	1.01		%					0.97		%	0.97		%
	Return on average shareholders' equity	7.63		%	7.89		%	8.21		%					7.92		%	7.78		%
	Return on average shareholders' equity (tangible)	10.30		%	10.75		%	11.13		%					10.71		%	10.59		%
	Net interest margin	3.41		%	3.52		%	3.47		%					3.44		%	3.54		%
	Efficiency ratio	65.85		%	62.73		%	63.38		%					64.63		%	62.27		%
N/M - Not Meaningful



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three Months Ended
		June 30, 2014								June 30, 2013							March 31, 2014
		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	$	12,795,747		$	134,387		4.21%		$	12,528,562		$	138,002		4.42%	$	12,762,357		$	134,744		4.28%
	Taxable investment securities	2,211,004			12,418			2.25%		2,410,004			14,516			2.41%	2,257,773			13,266			2.35%
	Tax-exempt investment securities	270,482			3,534			5.23%		280,508			3,608			5.15%	279,278			3,613			5.17%
	Equity securities	33,922			419			4.95%		40,778			471			4.63%	33,922			429			5.11%
	Total Investment Securities	2,515,408			16,371			2.60%		2,731,290			18,595			2.72%	2,570,973			17,308			2.70%
	Loans held for sale	17,540			214			4.87%		42,158			384			3.64%	13,426			134			4.00%
	Other interest-earning assets	238,921			1,207			2.02%		226,662			439			0.77%	258,803			882			1.36%
	Total Interest-earning Assets	15,567,616			152,179			3.92%		15,528,672			157,420			4.07%	15,605,559			153,068			3.97%
Noninterest-earning assets:
	Cash and due from banks	198,291								206,090							199,641
	Premises and equipment	224,586								225,915							226,295
	Other assets	1,037,654								1,061,448							1,032,071
	Less: allowance for loan losses	(196,462		)						(221,541		)					(203,201		)
	Total Assets	$	16,831,685							$	16,800,584						$	16,860,365
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	2,914,887		$	904		0.12%		$	2,718,679		$	872		0.13%	$	2,945,211		$	909		0.13%
	Savings deposits	3,355,929			1,031			0.12%		3,350,856			1,016			0.12%	3,351,871			1,035			0.13%
	Time deposits	3,012,061			6,750			0.90%		3,169,141			7,610			0.96%	2,932,456			5,952			0.82%
	Total Interest-bearing Deposits	9,282,877			8,685			0.38%		9,238,676			9,498			0.41%	9,229,538			7,896			0.35%
	Short-term borrowings	1,047,684			540			0.21%		1,313,424			700			0.21%	1,208,953			633			0.21%
	FHLB advances and long-term debt	894,511			10,779			4.83%		889,186			10,815			4.87%	883,532			10,698			4.88%
	Total Interest-bearing Liabilities	11,225,072			20,004			0.71%		11,441,286			21,013			0.74%	11,322,023			19,227			0.69%
Noninterest-bearing liabilities:
	Demand deposits	3,322,195								3,116,940							3,243,424
	Other	202,520								179,875							232,004
	Total Liabilities	14,749,787								14,738,101							14,797,451
	Shareholders' equity	2,081,898								2,062,483							2,062,914
	Total Liabilities and Shareholders' Equity	$	16,831,685							$	16,800,584						$	16,860,365
	Net interest income/net interest margin (fully taxable equivalent)				132,175			3.41%					136,407			3.52%				133,841			3.47%
	Tax equivalent adjustment				(4,277		)						(4,342		)					(4,276		)
	Net interest income				$	127,898							$	132,065						$	129,565

	(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:
		Three Months Ended								% Change from
		June 30			June 30			March 31		June 30			March 31
		2014			2013			2014		2013			2014
Loans, by type:
	Real estate - commercial mortgage	$	5,138,537		$	4,758,060		$	5,085,128	8.0		%	1.1		%
	Commercial - industrial, financial and agricultural	3,617,977			3,714,683			3,637,075		(2.6		)%	(0.5		)%
	Real estate - home equity	1,735,767			1,732,704			1,755,346		0.2		%	(1.1		)%
	Real estate - residential mortgage	1,339,034			1,308,713			1,336,323		2.3		%	0.2		%
	Real estate - construction	588,176			617,577			576,346		(4.8		)%	2.1		%
	Consumer	276,444			304,918			274,910		(9.3		)%	0.6		%
	Leasing and other	99,812			91,907			97,229		8.6		%	2.7		%
	Total Loans, net of unearned income	$	12,795,747		$	12,528,562		$	12,762,357	2.1		%	0.3		%
Deposits, by type:
	Noninterest-bearing demand	$	3,322,195		$	3,116,940		$	3,243,424	6.6		%	2.4		%
	Interest-bearing demand	2,914,887			2,718,679			2,945,211		7.2		%	(1.0		)%
	Savings deposits	3,355,929			3,350,856			3,351,871		0.2		%	0.1		%
	Time deposits	3,012,061			3,169,141			2,932,456		(5.0		)%	2.7		%
	Total Deposits	$	12,605,072		$	12,355,616		$	12,472,962	2.0		%	1.1		%
Short-term borrowings, by type:
	Customer repurchase agreements	$	216,212		$	188,339		$	187,362	14.8		%	15.4		%
	Customer short-term promissory notes	81,823			98,207			102,000		(16.7		)%	(19.8		)%
	Federal funds purchased	444,429			776,603			416,230		(42.8		)%	6.8		%
	Short-term FHLB advances and other borrowings	305,220			250,275			503,361		22.0		%	(39.4		)%
	Total Short-term Borrowings	$	1,047,684		$	1,313,424		$	1,208,953	(20.2		)%	(13.3		)%



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Six Months Ended June 30
		2014								2013
		Average								Average
		Balance			Interest (1)			Yield/Rate		Balance			Interest (1)			Yield/Rate
ASSETS

Interest-earning assets:
	Loans, net of unearned income	$	12,779,145		$	269,131		4.24	%	$	12,393,670		$	274,950		4.47	%
	Taxable investment securities	2,234,259			25,684			2.30	%	2,415,562			27,913			2.31	%
	Tax-exempt investment securities	274,856			7,147			5.20	%	286,281			7,422			5.19	%
	Equity securities	33,922			848			5.03	%	42,565			981			4.64	%
	Total Investment Securities	2,543,037			33,679			2.65	%	2,744,408			36,316			2.65	%
	Loans held for sale	15,494			348			4.49	%	45,005			879			3.91	%
	Other interest-earning assets	248,807			2,089			1.68	%	208,718			868			0.83	%
	Total Interest-earning Assets	15,586,483			305,247			3.95	%	15,391,801			313,013			4.10	%

Noninterest-earning assets:
	Cash and due from banks	198,962								204,308
	Premises and equipment	225,436								226,189
	Other assets	1,034,877								1,066,416
	Less: allowance for loan losses	(199,813		)						(224,682		)
	Total Assets	$	16,845,945							$	16,664,032

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
	Demand deposits	$	2,929,965		$	1,813		0.12	%	$	2,712,292		$	1,749		0.13	%
	Savings deposits	3,353,910			2,066			0.12	%	3,342,626			2,039			0.12	%
	Time deposits	2,972,480			12,702			0.86	%	3,244,805			16,111			1.00	%
	Total Interest-bearing Deposits	9,256,355			16,581			0.36	%	9,299,723			19,899			0.43	%

	Short-term borrowings	1,127,872			1,173			0.21	%	1,173,550			1,209			0.21	%
	FHLB advances and long-term debt	889,051			21,477			4.85	%	890,174			21,583			4.87	%
	Total Interest-bearing Liabilities	11,273,278			39,231			0.70	%	11,363,447			42,691			0.76	%

Noninterest-bearing liabilities:
	Demand deposits	3,283,027								3,043,268
	Other	217,181								189,357
	Total Liabilities	14,773,486								14,596,072
	Shareholders' equity	2,072,459								2,067,960

	Total Liabilities and Shareholders' Equity	$	16,845,945							$	16,664,032

	Net interest income/net interest margin (fully taxable equivalent)				266,016			3.44	%				270,322			3.54	%
	Tax equivalent adjustment				(8,553		)						(8,613		)

	Net interest income				$	257,463							$	261,709

(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:

		Six Months Ended
		June 30
		2014			2013			% Change
Loans, by type:
	Real estate - commercial mortgage	$	5,111,979		$	4,712,530		8.5	%
	Commercial - industrial, financial and agricultural	3,627,471			3,688,767			(1.7	)%
	Real estate - home equity	1,745,503			1,697,634			2.8	%
	Real estate - residential mortgage	1,337,686			1,296,012			3.2	%
	Real estate - construction	582,294			604,531			(3.7	)%
	Consumer	275,682			305,199			(9.7	)%
	Leasing and other	98,530			88,997			10.7	%
	Total Loans, net of unearned income	$	12,779,145		$	12,393,670		3.1	%

Deposits, by type:
	Noninterest-bearing demand	$	3,283,027		$	3,043,268		7.9	%
	Interest-bearing demand	2,929,965			2,712,292			8.0	%
	Savings deposits	3,353,910			3,342,626			0.3	%
	Time deposits	2,972,480			3,244,805			(8.4	)%

	Total Deposits	$	12,539,382		$	12,342,991		1.6	%

Short-term borrowings, by type:
	Customer repurchase agreements	$	201,866		$	176,788		14.2	%
	Customer short-term promissory notes	91,856			105,086			(12.6	)%
	Federal funds purchased	430,407			743,376			(42.1	)%
	Short-term FHLB advances and other borrowings	403,743			148,300			172.2	%
	Total Short-term Borrowings	$	1,127,872		$	1,173,550		(3.9	)%



FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Three Months Ended									Six Months Ended
		Jun 30			Jun 30			Mar 31			Jun 30		Jun 30
		2014			2013			2014			2014		2013
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period		$	199,006		$	221,527		$	204,917		204,917		225,439
	Loans charged off:
	Commercial - industrial, financial and agricultural	(5,512		)	(5,960		)	(5,125		)	(10,637	)	(15,462	)
	Real estate - commercial mortgage	(2,141		)	(5,193		)	(1,386		)	(3,527	)	(9,326	)
	Consumer and home equity	(1,683		)	(2,399		)	(2,402		)	(4,085	)	(5,353	)
	Real estate - residential mortgage	(1,089		)	(4,465		)	(846		)	(1,935	)	(7,515	)
	Real estate - construction	(218		)	(2,597		)	(214		)	(432	)	(4,583	)
	Leasing and other	(833		)	(769		)	(295		)	(1,128	)	(1,250	)
	Total loans charged off	(11,476		)	(21,383		)	(10,268		)	(21,744	)	(43,489	)
Recoveries of loans previously charged off:
	Commercial - industrial, financial and agricultural	775			756			744			1,519		1,135
	Real estate - commercial mortgage	430			1,505			44			474		2,569
	Consumer and home equity	579			598			565			1,144		1,435
	Real estate - residential mortgage	108			116			116			224		197
	Real estate - construction	158			744			224			382		1,415
	Leasing and other	362			263			164			526		425
	Recoveries of loans previously charged off	2,412			3,982			1,857			4,269		7,176
Net loans charged off		(9,064		)	(17,401		)	(8,411		)	(17,475	)	(36,313	)
Provision for credit losses		3,500			13,500			2,500			6,000		28,500
Balance at end of period		$	193,442		$	217,626		$	199,006		193,442		217,626
Net charge-offs to average loans (annualized)		0.28		%	0.56		%	0.26		%	0.27	%	0.59	%
NON-PERFORMING ASSETS:
	Non-accrual loans	$	129,934		$	164,039		$	133,705
	Loans 90 days past due and accruing	19,378			25,159			21,225
	Total non-performing loans	149,312			189,198			154,930
	Other real estate owned	13,482			20,984			15,300
	Total non-performing assets	$	162,794		$	210,182		$	170,230
NON-PERFORMING LOANS, BY TYPE:
	Real estate - commercial mortgage	$	44,015		$	49,429		$	45,876
	Commercial - industrial, financial and agricultural	38,163			57,219			38,830
	Real estate - residential mortgage	27,887			30,660			29,305
	Real estate - construction	20,268			29,964			20,758
	Consumer and home equity	18,919			21,826			20,087
	Leasing	60			100			74
	Total non-performing loans	$	149,312		$	189,198		$	154,930
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
	Real-estate - residential mortgage	$	31,184		$	28,948		$	30,363
	Real-estate - commercial mortgage	19,398			24,828			19,514
	Real estate - construction	8,561			10,599			8,430
	Commercial - industrial, financial and agricultural	6,953			8,394			6,755
	Consumer and home equity	2,838			1,562			2,622
	Total accruing TDRs	$	68,934		$	74,331		$	67,684
	Non-accrual TDRs (1)	25,526			30,377			27,487
	Total TDRs	$	94,460		$	104,708		$	95,171
(1) Included within non-accrual loans above.



DELINQUENCY RATES, BY TYPE:
		June 30, 2014						June 30, 2013						March 31, 2014
		31-89 Days		≥90 Days (2)		Total		31-89 Days		≥90 Days (2)		Total		31-89 Days		≥90 Days (2)		Total

	Real estate - commercial mortgage	0.30	%	0.86	%	1.16	%	0.47	%	1.01	%	1.48	%	0.35	%	0.89	%	1.24	%
	Commercial - industrial, financial and agricultural	0.47	%	1.05	%	1.52	%	0.41	%	1.54	%	1.95	%	0.33	%	1.09	%	1.42	%
	Real estate - construction	0.10	%	3.20	%	3.30	%	0.42	%	4.91	%	5.33	%	0.43	%	3.55	%	3.98	%
	Real estate - residential mortgage	1.78	%	2.05	%	3.83	%	2.12	%	2.33	%	4.45	%	1.53	%	2.20	%	3.73	%
	Consumer, home equity, leasing and other	0.84	%	0.90	%	1.74	%	0.82	%	1.02	%	1.84	%	0.89	%	0.96	%	1.85	%
	Total	0.58	%	1.17	%	1.75	%	0.68	%	1.50	%	2.18	%	0.56	%	1.22	%	1.78	%
(2) Includes non-accrual loans
ASSET QUALITY RATIOS:
		Jun 30		Jun 30		Mar 31
		2014		2013		2014
	Non-accrual loans to total loans	1.01	%	1.30	%	1.05	%
	Non-performing assets to total loans and OREO	1.27	%	1.66	%	1.34	%
	Non-performing assets to total assets	0.96	%	1.23	%	1.01	%
	Allowance for credit losses to loans outstanding	1.51	%	1.72	%	1.56	%
	Allowance for credit losses to non-performing loans	129.56	%	115.03	%	128.45	%
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses	9.25	%	12.28	%	9.87	%



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:

		Three Months Ended									Six Months Ended
		Jun 30			Jun 30			Mar 31			Jun 30			Jun 30
		2014			2013			2014			2014			2013
Shareholders' equity (tangible), per share
Shareholders' equity		$	2,099,800		$	2,028,732		$	2,058,719
Less: Goodwill and intangible assets		(532,432		)	(534,452		)	(532,747		)
Tangible shareholders' equity (numerator)		$	1,567,368		$	1,494,280		$	1,525,972
Shares outstanding, end of period (denominator)		189,033			193,658			188,850
Shareholders' equity (tangible), per share		$	8.29		$	7.72		$	8.08

Return on average common shareholders' equity (tangible)
Net income		$	39,596		$	40,582		$	41,783		$	81,379		$	79,809
Plus: Intangible amortization, net of tax		204			349			204			410			696
Numerator		$	39,800		$	40,931		$	41,987		$	81,789		$	80,505
Average shareholders' equity		$	2,081,898		$	2,062,483		$	2,062,914		$	2,072,459		$	2,067,960
Less: Average goodwill and intangible assets		(532,585		)	(534,713		)	(532,901		)	(532,742		)	(534,982		)
Average tangible shareholders' equity (denominator)		$	1,549,313		$	1,527,770		$	1,530,013		$	1,539,717		$	1,532,978
Return on average common shareholders' equity (tangible), annualized		10.30		%	10.75		%	11.13		%	10.71		%	10.59		%

Efficiency ratio
Non-interest expense		$	116,174		$	117,130		$	109,554		$	225,728		$	228,066
Less: Intangible amortization		(315		)	(535		)	(315		)	(630		)	(1,069		)
Numerator		$	115,859		$	116,595		$	109,239		$	225,098		$	226,997
Net interest income (fully taxable equivalent)		$	132,175		$	136,407		$	133,841		$	266,016		$	270,322
Plus: Total Non-interest income		44,872			52,316			38,506			83,378			99,575
Less: Investment securities gains		(1,112		)	(2,865		)	—			(1,112		)	(5,338		)
Denominator		$	175,935		$	185,858		$	172,347		$	348,282		$	364,559
Efficiency ratio		65.85		%	62.73		%	63.38		%	64.64		%	62.27		%

Non-performing assets to tangible common shareholders' equity and allowance for credit losses
Non-performing assets (numerator)		$	162,794		$	210,182		$	170,230
Tangible shareholders' equity		$	1,567,368		$	1,494,280		$	1,525,972
Plus: Allowance for credit losses		193,442			217,626			199,006
Tangible shareholders' equity and allowance for credit losses (denominator)		$	1,760,810		$	1,711,906		$	1,724,978
Non-performing assets to tangible common shareholders' equity and allowance for credit losses		9.25		%	12.28		%	9.87		%