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):	October 21, 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 October 21, 2014 Fulton Financial Corporation announced its results of operations for the third quarter ended September 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 October 21, 2014.
99.2	Supplemental financial information for the quarter ended September 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: October 21, 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 third quarter earnings of $0.21 per share


•	Diluted earnings per share for the third quarter of 2014 was 21 cents, unchanged from the second quarter of 2014 and the third quarter of 2013.


•	Net interest income for the third quarter of 2014 increased $1.5 million, or 1.1 percent, compared to the second quarter of 2014. The net interest margin for the third quarter of 2014 decreased two basis points, to 3.39 percent, compared to the second quarter of 2014.


•	Average loans for the third quarter of 2014 increased $127.1 million, or 1.0 percent, compared to the second quarter of 2014. Average non-interest-bearing and interest-bearing demand and savings deposits for the third quarter of 2014 increased $437.2 million, or 4.6 percent, compared to the second quarter of 2014.


•	The provision for credit losses was $3.5 million for the third quarter of 2014, unchanged from the second quarter of 2014 and a $6.0 million, or 63.2 percent, decrease from the third quarter of 2013. Non-performing loans decreased $5.5 million, or 3.7 percent, in comparison to June 30, 2014 and decreased $24.4 million, or 14.5 percent, in comparison to September 30, 2013.


•	Non-interest income, excluding investment securities gains, decreased $1.9 million, or 4.4 percent, in comparison to the second quarter of 2014, while non-interest expense decreased $376,000, or 0.3 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. All four million shares were repurchased during the third quarter of 2014.

(October 21, 2014) - Lancaster, PA - Fulton Financial Corporation (NASDAQ: FULT) reported net income of $38.6 million, or 21 cents per diluted share, for the third quarter of 2014, compared to $39.6 million, or 21 cents per diluted share, for the second quarter of 2014.

“Good loan growth, further improvement in asset quality and higher net interest income all contributed to our solid financial performance in the third quarter,” said E. Philip Wenger, Chairman, CEO and President. “We continue to execute on our strategic priorities. They include

positioning the company for profitable future growth, deploying capital to enhance long term shareholder value, ensuring a superior customer experience by investing in systems and technology, and building out our risk management and compliance processes.”

Net Interest Income and Margin

Net interest income for the third quarter of 2014 increased $1.5 million, or 1.1 percent, from the second quarter of 2014. The net interest margin decreased two basis points to 3.39 percent in the third quarter of 2014 from 3.41 percent in the second quarter of 2014. Average yields on interest-earning assets decreased two basis points, while the average cost of interest-bearing liabilities increased two basis points.

Average Balance Sheet

Total average assets for the third quarter of 2014 were $17.0 billion, an increase of $170.3 million, or 1.0 percent, from the second quarter of 2014. Average loans, net of unearned income, increased $127.1 million, or 1.0 percent, in comparison to the second quarter of 2014.



	Three Months Ended								Increase (decrease)
	September 30, 2014				June 30, 2014				in Balance
	Balance		Yield (1)		Balance		Yield (1)		$			%
	(dollars in thousands)
Average Loans, net of unearned income, by type:
Real estate - commercial mortgage	$	5,114,221	4.35	%	$	5,138,537	4.36	%	$	(24,316	)	(0.5	)%
Commercial - industrial, financial, and agricultural	3,657,047		3.97	%	3,617,977		3.95	%	39,070			1.1	%
Real estate - home equity	1,727,253		4.18	%	1,735,767		4.18	%	(8,514		)	(0.5	)%
Real estate - residential mortgage	1,369,087		3.93	%	1,339,034		3.97	%	30,053			2.2	%
Real estate - construction	663,922		3.98	%	588,176		4.17	%	75,746			12.9	%
Consumer	284,630		5.39	%	276,444		4.56	%	8,186			3.0	%
Leasing and other	106,661		7.16	%	99,812		8.83	%	6,849			6.9	%
Total Average Loans, net of unearned income	$	12,922,821	4.20	%	$	12,795,747	4.21	%	$	127,074		1.0	%

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

Total average liabilities increased $162.7 million, or 1.1 percent, from the second quarter of 2014, due mainly to a $434.3 million, or 3.4 percent, increase in average deposits and a $101.0 million, or 11.3 percent, increase in FHLB Advances and long-term debt, partially offset by a $380.3 million, or 36.3 percent, decrease in average short-term borrowings.



	Three Months Ended								Increase (decrease)
	September 30, 2014				June 30, 2014				in Balance
	Balance		Rate		Balance		Rate		$			%
	(dollars in thousands)
Average Deposits, by type:
Noninterest-bearing demand	$	3,514,033	—	%	$	3,322,195	—	%	$	191,838		5.8	%
Interest-bearing demand	3,047,191		0.12	%	2,914,887		0.12	%	132,304			4.5	%
Savings deposits	3,468,958		0.12	%	3,355,929		0.12	%	113,029			3.4	%
Total average demand and savings	10,030,182		0.08	%	9,593,011		0.08	%	437,171			4.6	%
Time deposits	3,009,225		0.92	%	3,012,061		0.90	%	(2,836		)	(0.1	)%
Total Average Deposits	$	13,039,407	0.27	%	$	12,605,072	0.28	%	$	434,335		3.4	%

Asset Quality

Non-performing assets were $157.3 million, or 0.91 percent of total assets, at September 30, 2014, compared to $162.8 million, or 0.96 percent of total assets, at June 30, 2014 and $186.5 million, or 1.09 percent of total assets, at September 30, 2013. The $5.5 million, or 3.4 percent, decrease in non-performing assets in comparison to the second quarter of 2014 was primarily due to decreases in non-performing commercial loans, and non-performing consumer and home equity loans.

Annualized net charge-offs for the third quarter ended September 30, 2014 were 0.18 percent of average total loans, compared to 0.28 percent for the second quarter of 2014 and 0.45 percent for the third quarter ended September 30, 2013. The allowance for credit losses as a percentage of non-performing loans was 132.9 percent at September 30, 2014, as compared to 129.6 percent at June 30, 2014 and 126.5 percent at September 30, 2013.

Non-interest Income

Non-interest income, excluding investment securities gains, decreased $1.9 million, or 4.4 percent, in comparison to the second quarter of 2014. Mortgage banking income decreased $1.7 million, or 29.7 percent, as amortization of mortgage servicing rights increased and sales volumes decreased in the third quarter. Other service charges and fees decreased $572,000, or 5.4 percent, including a $456,000 decrease in commercial swap fees. Service charges on deposit accounts increased $249,000, or 2.0 percent, due to a $264,000 increase in overdraft fees.

Non-interest Expense

Non-interest expense decreased $376,000, or 0.3 percent, in the third quarter of 2014 compared to the second quarter of 2014. Salaries and employee benefits decreased $1.2 million, or 1.9 percent, in comparison to the second quarter of 2014, due primarily to a decrease in self-insured healthcare costs. Marketing expenses decreased $539,000, or 23.1 percent. Other non-interest expense decreased $1.6 million, or 13.0 percent, including a reduction in the reserve for

debit card reward points. Partially offsetting these decreases in non-interest expense was a $1.4 million, or 19.2 percent, increase in other outside services largely attributable to continuing risk management and compliance efforts, including the enhancement of the Corporation’s Bank Secrecy Act and anti-money laundering compliance program (the “BSA/AML Compliance Program”). These enhanced risk management and compliance efforts continue the Corporation’s ongoing efforts to improve its BSA/AML Compliance Program and to remediate deficiencies specified in the previously disclosed regulatory enforcement orders received by the Corporation and four of its banking subsidiaries during the third quarter of 2014. In addition, other real estate owned and repossession expense and operating risk loss increased $555,000 and $526,000, respectively, in comparison to the second quarter of 2014.

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 Reports on Form 10-Q for the quarters ended March 31, 2014 and June 30, 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
		September 30			September 30			June 30			September 30		June 30
		2014			2013			2014			2013		2014
ASSETS
	Cash and due from banks	$	220,946		$	262,938		$	258,837		(16.0	)%	(14.6	)%
	Other interest-earning assets	377,579			308,924			305,518			22.2	%	23.6	%
	Loans held for sale	25,212			39,273			36,079			(35.8	)%	(30.1	)%
	Investment securities	2,470,609			2,597,435			2,497,776			(4.9	)%	(1.1	)%
	Loans, net of unearned income	13,030,405			12,780,899			12,839,511			2.0	%	1.5	%
	Allowance for loan losses	(189,477		)	(210,486		)	(191,685		)	(10.0	)%	(1.2	)%
	Net loans	12,840,928			12,570,413			12,647,826			2.2	%	1.5	%
	Premises and equipment	224,441			227,299			225,168			(1.3	)%	(0.3	)%
	Accrued interest receivable	43,544			44,715			42,116			(2.6	)%	3.4	%
	Goodwill and intangible assets	532,117			533,918			532,432			(0.3	)%	(0.1	)%
	Other assets	502,798			465,856			487,887			7.9	%	3.1	%
	Total Assets	$	17,238,174		$	17,050,771		$	17,033,639		1.1	%	1.2	%
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits	$	13,333,627		$	12,721,121		$	12,693,659		4.8	%	5.0	%
	Short-term borrowings	564,952			1,198,577			1,008,307			(52.9	)%	(44.0	)%
	Other liabilities	243,300			212,987			263,478			14.2	%	(7.7	)%
	FHLB advances and long-term debt	1,018,289			889,122			968,395			14.5	%	5.2	%
	Total Liabilities	15,160,168			15,021,807			14,933,839			0.9	%	1.5	%
	Shareholders' equity	2,078,006			2,028,964			2,099,800			2.4	%	(1.0	)%
	Total Liabilities and Shareholders' Equity	$	17,238,174		$	17,050,771		$	17,033,639		1.1	%	1.2	%

LOANS, DEPOSITS AND SHORT-TERM BORROWINGS DETAIL:
Loans, by type:
	Real estate - commercial mortgage	$	5,156,979		$	5,063,372		$	5,128,734		1.8	%	0.6	%
	Commercial - industrial, financial and agricultural	3,691,262			3,645,270			3,601,721			1.3	%	2.5	%
	Real estate - home equity	1,733,036			1,773,554			1,730,497			(2.3	)%	0.1	%
	Real estate - residential mortgage	1,372,033			1,327,469			1,361,976			3.4	%	0.7	%
	Real estate - construction	687,728			577,342			634,018			19.1	%	8.5	%
	Consumer	278,219			296,142			280,557			(6.1	)%	(0.8	)%
	Leasing and other	111,148			97,749			102,008			13.7	%	9.0	%
	Total Loans, net of unearned income	$	13,030,405		$	12,780,898		$	12,839,511		2.0	%	1.5	%
Deposits, by type:
	Noninterest-bearing demand	$	3,556,810		$	3,338,075		$	3,484,125		6.6	%	2.1	%
	Interest-bearing demand	3,164,514			2,986,549			2,855,511			6.0	%	10.8	%
	Savings deposits	3,620,919			3,371,923			3,338,018			7.4	%	8.5	%
	Time deposits	2,991,384			3,024,574			3,016,005			(1.1	)%	(0.8	)%
	Total Deposits	$	13,333,627		$	12,721,121		$	12,693,659		4.8	%	5.0	%
Short-term borrowings, by type:
	Customer repurchase agreements	$	195,121		$	209,800		$	212,930		(7.0	)%	(8.4	)%
	Customer short-term promissory notes	78,225			95,503			86,366			(18.1	)%	(9.4	)%
	Federal funds purchased	6,606			493,274			384,011			(98.7	)%	(98.3	)%
	Short-term FHLB advances	285,000			400,000			325,000			(28.8	)%	(12.3	)%
	Total Short-term Borrowings	$	564,952		$	1,198,577		$	1,008,307		(52.9	)%	(44.0	)%



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
in thousands, except per-share data and percentages
		Three Months Ended									% Change from				Nine Months Ended
		September 30			September 30			June 30			Sep 30		Jun 30		September 30
		2014			2013			2014			2013		2014		2014			2013			% Change
Interest Income:
	Interest income	$	149,790		$	152,832		$	147,902		(2.0	)%	1.3	%	$	446,484		$	457,232		(2.4	)%
	Interest expense	20,424			20,299			20,004			0.6	%	2.1	%	59,655			62,990			(5.3	)%
	Net Interest Income	129,366			132,533			127,898			(2.4	)%	1.1	%	386,829			394,242			(1.9	)%
	Provision for credit losses	3,500			9,500			3,500			(63.2	)%	—	%	9,500			38,000			(75.0	)%
	Net Interest Income after Provision	125,866			123,033			124,398			2.3	%	1.2	%	377,329			356,242			5.9	%
Non-Interest Income:
	Service charges on deposit accounts	12,801			13,938			12,552			(8.2	)%	2.0	%	37,064			42,700			(13.2	)%
	Investment management and trust services	11,120			10,420			11,339			6.7	%	(1.9	)%	33,417			31,117			7.4	%
	Other service charges and fees	9,954			9,518			10,526			4.6	%	(5.4	)%	29,407			27,536			6.8	%
	Mortgage banking income	4,038			7,123			5,741			(43.3	)%	(29.7	)%	13,384			26,293			(49.1	)%
	Investment securities gains	81			2,633			1,112			(96.9	)%	(92.7	)%	1,193			7,971			(85.0	)%
	Other	3,906			3,725			3,602			4.9	%	8.4	%	10,813			11,315			(4.4	)%
	Total Non-Interest Income	41,900			47,357			44,872			(11.5	)%	(6.6	)%	125,278			146,932			(14.7	)%
Non-Interest Expense:
	Salaries and employee benefits	62,434			63,344			63,623			(1.4	)%	(1.9	)%	185,623			188,046			(1.3	)%
	Net occupancy expense	11,582			11,519			11,464			0.5	%	1.0	%	36,649			34,810			5.3	%
	Other outside services	8,632			5,048			7,240			71.0	%	19.2	%	19,684			13,223			48.9	%
	Data processing	4,689			4,757			4,331			(1.4	)%	8.3	%	12,816			13,169			(2.7	)%
	Software	3,353			3,268			3,209			2.6	%	4.5	%	9,487			9,110			4.1	%
	Equipment expense	3,307			3,646			3,360			(9.3	)%	(1.6	)%	10,269			11,447			(10.3	)%
	Professional fees	3,252			3,329			3,559			(2.3	)%	(8.6	)%	9,715			9,771			(0.6	)%
	FDIC insurance expense	2,882			2,918			2,615			(1.2	)%	10.2	%	8,186			8,766			(6.6	)%
	Marketing	1,798			2,251			2,337			(20.1	)%	(23.1	)%	5,719			6,045			(5.4	)%
	Other real estate owned and repossession expense	1,303			1,453			748			(10.3	)%	74.2	%	3,034			6,248			(51.4	)%
	Operating risk loss	1,242			3,297			716			(62.3	)%	73.5	%	3,786			6,923			(45.3	)%
	Intangible amortization	314			534			315			(41.2	)%	(0.3	)%	944			1,603			(41.1	)%
	Other	11,010			11,241			12,657			(2.1	)%	(13.0	)%	35,614			35,510			0.3	%
	Total Non-Interest Expense	115,798			116,605			116,174			(0.7	)%	(0.3	)%	341,526			344,671			(0.9	)%
	Income Before Income Taxes	51,968			53,785			53,096			(3.4	)%	(2.1	)%	161,081			158,503			1.6	%
	Income tax expense	13,402			13,837			13,500			(3.1	)%	(0.7	)%	41,136			38,746			6.2	%
	Net Income	$	38,566		$	39,948		$	39,596		(3.5	)%	(2.6	)%	$	119,945		$	119,757		0.2	%

PER SHARE:
	Net income:
	Basic	$	0.21		$	0.21		$	0.21		—	%	—	%	$	0.64		$	0.62		3.2	%
	Diluted	0.21			0.21			0.21			—	%	—	%	0.64			0.61			4.9	%

	Cash dividends	$	0.08		$	0.08		$	0.08		—	%	—	%	$	0.24		$	0.24		—	%
	Shareholders' equity	11.22			10.55			11.11			6.4	%	1.0	%	11.22			10.55			6.4	%
	Shareholders' equity (tangible)	8.35			7.77			8.29			7.5	%	0.7	%	8.35			7.77			7.5	%

	Weighted average shares (basic)	186,109			192,251			188,139			(3.2	)%	(1.1	)%	187,893			193,926			(3.1	)%
	Weighted average shares (diluted)	186,955			193,259			189,182			(3.3	)%	(1.2	)%	188,863			194,926			(3.1	)%
	Shares outstanding, end of period	185,158			192,332			189,033			(3.7	)%	(2.0	)%	185,158			192,332			(3.7	)%

SELECTED FINANCIAL RATIOS:
	Return on average assets	0.90		%	0.93		%	0.94		%					0.95		%	0.95		%
	Return on average shareholders' equity	7.32		%	7.81		%	7.63		%					7.72		%	7.79		%
	Return on average shareholders' equity (tangible)	9.88		%	10.69		%	10.30		%					10.43		%	10.62		%
	Net interest margin	3.39		%	3.45		%	3.41		%					3.42		%	3.51		%
	Efficiency ratio	65.80		%	63.92		%	65.85		%					65.02		%	62.81		%



FULTON FINANCIAL CORPORATION
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)
dollars in thousands
		Three Months Ended
		September 30, 2014								September 30, 2013							June 30, 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	$	12,922,821		$	136,773		4.20%		$	12,728,162		$	139,141		4.34%	$	12,795,747		$	134,387		4.21%
	Taxable investment securities	2,181,099			12,278			2.25%		2,446,583			12,977			2.12%	2,211,004			12,418			2.25%
	Tax-exempt investment securities	256,303			3,414			5.33%		284,372			3,581			5.04%	270,482			3,534			5.23%
	Equity securities	34,002			438			5.12%		35,999			435			4.82%	33,922			419			4.95%
	Total Investment Securities	2,471,404			16,130			2.61%		2,766,954			16,993			2.46%	2,515,408			16,371			2.60%
	Loans held for sale	23,699			237			4.01%		36,450			382			4.19%	17,540			214			4.87%
	Other interest-earning assets	293,286			976			1.33%		236,185			659			1.12%	238,921			1,207			2.02%
	Total Interest-earning Assets	15,711,210			154,116			3.90%		15,767,751			157,175			3.96%	15,567,616			152,179			3.92%
Noninterest-earning assets:
	Cash and due from banks	203,134								210,525							198,291
	Premises and equipment	224,241								224,837							224,586
	Other assets	1,055,521								1,009,162							1,037,654
	Less: allowance for loan losses	(192,163		)						(220,342		)					(196,462		)
	Total Assets	$	17,001,943							$	16,991,933						$	16,831,685
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
	Demand deposits	$	3,047,191		$	953		0.12%		$	2,895,156		$	938		0.13%	$	2,914,887		$	904		0.12%
	Savings deposits	3,468,958			1,061			0.12%		3,359,795			1,015			0.12%	3,355,929			1,031			0.12%
	Time deposits	3,009,225			6,984			0.92%		3,065,210			6,790			0.88%	3,012,061			6,750			0.90%
	Total Interest-bearing Deposits	9,525,374			8,998			0.37%		9,320,161			8,743			0.37%	9,282,877			8,685			0.38%
	Short-term borrowings	667,397			297			0.18%		1,337,742			691			0.20%	1,047,684			540			0.21%
	FHLB advances and long-term debt	995,486			11,129			4.45%		889,141			10,865			4.87%	894,511			10,779			4.83%
	Total Interest-bearing Liabilities	11,188,257			20,424			0.73%		11,547,044			20,299			0.70%	11,225,072			20,004			0.71%
Noninterest-bearing liabilities:
	Demand deposits	3,514,033								3,221,648							3,322,195
	Other	210,194								194,163							202,520
	Total Liabilities	14,912,484								14,962,855							14,749,787
	Shareholders' equity	2,089,459								2,029,078							2,081,898
	Total Liabilities and Shareholders' Equity	$	17,001,943							$	16,991,933						$	16,831,685
	Net interest income/net interest margin (fully taxable equivalent)				133,692			3.39%					136,876			3.45%				132,175			3.41%
	Tax equivalent adjustment				(4,326		)						(4,343		)					(4,277		)
	Net interest income				$	129,366							$	132,533						$	127,898

	(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
		September 30			September 30			June 30		September 30			June 30
		2014			2013			2014		2013			2014
Loans, by type:
	Real estate - commercial mortgage	$	5,114,221		$	4,961,871		$	5,138,537	3.1		%	(0.5		)%
	Commercial - industrial, financial and agricultural	3,657,047			3,706,113			3,617,977		(1.3		)%	1.1		%
	Real estate - home equity	1,727,253			1,767,095			1,735,767		(2.3		)%	(0.5		)%
	Real estate - residential mortgage	1,369,087			1,323,972			1,339,034		3.4		%	2.2		%
	Real estate - construction	663,922			576,222			588,176		15.2		%	12.9		%
	Consumer	284,630			299,057			276,444		(4.8		)%	3.0		%
	Leasing and other	106,661			93,832			99,812		13.7		%	6.9		%
	Total Loans, net of unearned income	$	12,922,821		$	12,728,162		$	12,795,747	1.5		%	1.0		%
Deposits, by type:
	Noninterest-bearing demand	$	3,514,033		$	3,221,648		$	3,322,195	9.1		%	5.8		%
	Interest-bearing demand	3,047,191			2,895,156			2,914,887		5.3		%	4.5		%
	Savings deposits	3,468,958			3,359,795			3,355,929		3.2		%	3.4		%
	Time deposits	3,009,225			3,065,210			3,012,061		(1.8		)%	(0.1		)%
	Total Deposits	$	13,039,407		$	12,541,809		$	12,605,072	4.0		%	3.4		%
Short-term borrowings, by type:
	Customer repurchase agreements	$	202,809		$	196,503		$	216,212	3.2		%	(6.2		)%
	Customer short-term promissory notes	83,734			91,573			81,823		(8.6		)%	2.3		%
	Federal funds purchased	224,930			559,992			444,429		(59.8		)%	(49.4		)%
	Short-term FHLB advances and other borrowings	155,924			489,674			305,220		(68.2		)%	(48.9		)%
	Total Short-term Borrowings	$	667,397		$	1,337,742		$	1,047,684	(50.1		)%	(36.3		)%



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

Interest-earning assets:
	Loans, net of unearned income	$	12,827,563		$	405,904		4.23	%	$	12,506,393		$	414,091		4.43	%
	Taxable investment securities	2,216,344			37,962			2.28	%	2,426,015			40,890			2.25	%
	Tax-exempt investment securities	268,604			10,561			5.24	%	285,638			11,003			5.14	%
	Equity securities	33,949			1,286			5.06	%	40,352			1,416			4.69	%
	Total Investment Securities	2,518,897			49,809			2.64	%	2,752,005			53,309			2.58	%
	Loans held for sale	18,259			585			4.27	%	42,122			1,261			3.99	%
	Other interest-earning assets	263,797			3,065			1.55	%	217,975			1,527			0.93	%
	Total Interest-earning Assets	15,628,516			459,363			3.93	%	15,518,495			470,188			4.05	%

Noninterest-earning assets:
	Cash and due from banks	200,368								206,403
	Premises and equipment	225,033								225,733
	Other assets	1,041,834								1,047,122
	Less: allowance for loan losses	(197,235		)						(223,220		)
	Total Assets	$	16,898,516							$	16,774,533

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
	Demand deposits	$	2,969,470		$	2,766		0.12	%	$	2,773,917		$	2,687		0.13	%
	Savings deposits	3,392,681			3,127			0.12	%	3,348,413			3,054			0.12	%
	Time deposits	2,984,861			19,686			0.88	%	3,184,281			22,901			0.96	%
	Total Interest-bearing Deposits	9,347,012			25,579			0.37	%	9,306,611			28,642			0.41	%

	Short-term borrowings	972,694			1,470			0.20	%	1,228,882			1,900			0.20	%
	FHLB advances and long-term debt	924,920			32,606			4.71	%	889,826			32,448			4.87	%
	Total Interest-bearing Liabilities	11,244,626			59,655			0.71	%	11,425,319			62,990			0.74	%

Noninterest-bearing liabilities:
	Demand deposits	3,360,876								3,103,381
	Other	214,826								190,976
	Total Liabilities	14,820,328								14,719,676
	Shareholders' equity	2,078,188								2,054,857

	Total Liabilities and Shareholders' Equity	$	16,898,516							$	16,774,533

	Net interest income/net interest margin (fully taxable equivalent)				399,708			3.42	%				407,198			3.51	%
	Tax equivalent adjustment				(12,879		)						(12,956		)

	Net interest income				$	386,829							$	394,242

(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:

		Nine Months Ended
		September 30
		2014			2013			% Change
Loans, by type:
	Real estate - commercial mortgage	$	5,112,735		$	4,796,557		6.6	%
	Commercial - industrial, financial and agricultural	3,637,440			3,694,612			(1.5	)%
	Real estate - home equity	1,739,352			1,721,041			1.1	%
	Real estate - residential mortgage	1,348,269			1,305,434			3.3	%
	Real estate - construction	609,803			594,991			2.5	%
	Consumer	278,697			303,127			(8.1	)%
	Leasing and other	101,267			90,631			11.7	%
	Total Loans, net of unearned income	$	12,827,563		$	12,506,393		2.6	%

Deposits, by type:
	Noninterest-bearing demand	$	3,360,876		$	3,103,381		8.3	%
	Interest-bearing demand	2,969,470			2,773,917			7.0	%
	Savings deposits	3,392,681			3,348,413			1.3	%
	Time deposits	2,984,861			3,184,281			(6.3	)%

	Total Deposits	$	12,707,888		$	12,409,992		2.4	%

Short-term borrowings, by type:
	Customer repurchase agreements	$	202,184		$	183,432		10.2	%
	Customer short-term promissory notes	89,119			100,532			(11.4	)%
	Federal funds purchased	361,162			681,576			(47.0	)%
	Short-term FHLB advances and other borrowings	320,229			263,342			21.6	%
	Total Short-term Borrowings	$	972,694		$	1,228,882		(20.8	)%



FULTON FINANCIAL CORPORATION
ASSET QUALITY INFORMATION (UNAUDITED)
dollars in thousands
		Three Months Ended									Nine Months Ended
		Sep 30			Sep 30			Jun 30			Sep 30			Sep 30
		2014			2013			2014			2014			2013
ALLOWANCE FOR CREDIT LOSSES:
Balance at beginning of period		$	193,442		$	217,626		$	199,006		$	204,917		$	225,439
	Loans charged off:
	Commercial - industrial, financial and agricultural	(5,167		)	(9,394		)	(5,512		)	(15,804		)	(24,856		)
	Consumer and home equity	(2,030		)	(2,838		)	(1,683		)	(6,115		)	(8,191		)
	Real estate - commercial mortgage	(1,557		)	(3,724		)	(2,141		)	(5,084		)	(13,050		)
	Real estate - construction	(313		)	(598		)	(218		)	(745		)	(5,181		)
	Leasing and other	(306		)	(787		)	(833		)	(1,434		)	(2,037		)
	Real estate - residential mortgage	(231		)	(767		)	(1,089		)	(2,166		)	(8,282		)
	Total loans charged off	(9,604		)	(18,108		)	(11,476		)	(31,348		)	(61,597		)
Recoveries of loans previously charged off:
	Commercial - industrial, financial and agricultural	1,013			2,295			775			2,532			3,430
	Consumer and home equity	784			492			579			1,928			1,927
	Real estate - commercial mortgage	1,167			185			430			1,641			2,754
	Real estate - construction	470			379			158			852			1,794
	Leasing and other	241			224			362			767			649
	Real estate - residential mortgage	95			245			108			319			442
	Recoveries of loans previously charged off	3,770			3,820			2.412			8,039			10,996
Net loans charged off		(5,834		)	(14,288		)	(9.064		)	(23,309		)	(50,601		)
Provision for credit losses		3,500			9,500			3,500			9,500			38,000
Balance at end of period		$	191,108		$	212,838		$	193,442		$	191,108		$	212,838
Net charge-offs to average loans (annualized)		0.18		%	0.45		%	0.28		%	0.24		%	0.54		%
NON-PERFORMING ASSETS:
	Non-accrual loans	$	126,420		$	143,012		$	129,934
	Loans 90 days past due and accruing	17,428			25,271			19,378
	Total non-performing loans	143,848			168,283			149,312
	Other real estate owned	13,489			18,173			13,482
	Total non-performing assets	$	157,337		$	186,456		$	162,794
NON-PERFORMING LOANS, BY TYPE:
	Real estate - commercial mortgage	$	44,602		$	42,623		$	44,015
	Commercial - industrial, financial and agricultural	33,277			45,184			38,163
	Real estate - residential mortgage	28,135			34,309			27,887
	Real estate - construction	19,860			24,396			20,268
	Consumer and home equity	17,586			21,704			18,919
	Leasing	388			67			60
	Total non-performing loans	$	143,848		$	168,283		$	149,312
TROUBLED DEBT RESTRUCTURINGS (TDRs), BY TYPE:
	Real-estate - residential mortgage	$	30,850		$	27,820		$	31,184
	Real-estate - commercial mortgage	18,869			22,644			19,398
	Real estate - construction	9,251			9,841			8,561
	Commercial - industrial, financial and agricultural	5,115			8,184			6,953
	Consumer and home equity	2,927			1,678			2,838
	Total accruing TDRs	$	67,012		$	70,167		$	68,934
	Non-accrual TDRs (1)	27,724			30,501			25,526
	Total TDRs	$	94,736		$	100,668		$	94,460
(1) Included within non-accrual loans above.



DELINQUENCY RATES, BY TYPE:
		September 30, 2014						September 30, 2013						June 30, 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	0.48	%	0.86	%	1.34	%	0.40	%	0.84	%	1.24	%	0.30	%	0.86	%	1.16	%
	Commercial - industrial, financial and agricultural	0.28	%	0.91	%	1.19	%	0.32	%	1.24	%	1.56	%	0.47	%	1.05	%	1.52	%
	Real estate - construction	0.03	%	2.89	%	2.92	%	0.40	%	4.22	%	4.62	%	0.10	%	3.20	%	3.30	%
	Real estate - residential mortgage	1.81	%	2.06	%	3.87	%	1.82	%	2.58	%	4.40	%	1.78	%	2.05	%	3.83	%
	Consumer, home equity, leasing and other	0.74	%	0.85	%	1.59	%	1.19	%	1.00	%	2.19	%	0.84	%	0.90	%	1.74	%
	Total	0.58	%	1.11	%	1.69	%	0.66	%	1.31	%	1.97	%	0.58	%	1.17	%	1.75	%
(2) Includes non-accrual loans
ASSET QUALITY RATIOS:
		Sep 30		Sep 30		Jun 30
		2014		2013		2014
	Non-accrual loans to total loans	0.97	%	1.12	%	1.01	%
	Non-performing assets to total loans and OREO	1.21	%	1.46	%	1.27	%
	Non-performing assets to total assets	0.91	%	1.09	%	0.96	%
	Allowance for credit losses to loans outstanding	1.47	%	1.67	%	1.51	%
	Allowance for credit losses to non-performing loans	132.85	%	126.48	%	129.56	%
	Non-performing assets to tangible common shareholders' equity and allowance for credit losses	9.06	%	10.92	%	9.25	%



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									Nine Months Ended
		Sep 30			Sep 30			Jun 30			Sep 30			Sep 30
		2014			2013			2014			2014			2013
Shareholders' equity (tangible), per share
Shareholders' equity		$	2,078,006		$	2,028,964		$	2,099,800
Less: Goodwill and intangible assets		(532,117		)	(533,918		)	(532,432		)
Tangible shareholders' equity (numerator)		$	1,545,889		$	1,495,046		$	1,567,368
Shares outstanding, end of period (denominator)		185,158			192,332			189,033
Shareholders' equity (tangible), per share		$	8.35		$	7.77		$	8.29

Return on average common shareholders' equity (tangible)
Net income		$	38,566		$	39,948		$	39,596		$	119,945		$	119,757
Plus: Intangible amortization, net of tax		203			347			204			614			1,042
Numerator		$	38,769		$	40,295		$	39,800		$	120,559		$	120,799
Average shareholders' equity		$	2,089,459		$	2,029,078		$	2,081,898		$	2,078,188		$	2,054,857
Less: Average goodwill and intangible assets		(532,271		)	(534,179		)	(532,585		)	(532,584		)	(534,712		)
Average tangible shareholders' equity (denominator)		$	1,557,188		$	1,494,899		$	1,549,313		$	1,545,604		$	1,520,145
Return on average common shareholders' equity (tangible), annualized		9.88		%	10.69		%	10.30		%	10.43		%	10.62		%

Efficiency ratio
Non-interest expense		$	115,798		$	116,605		$	116,174		$	341,526		$	344,671
Less: Intangible amortization		(314		)	(534		)	(315		)	(944		)	(1,603		)
Numerator		$	115,484		$	116,071		$	115,859		$	340,582		$	343,068
Net interest income (fully taxable equivalent)		$	133,692		$	136,876		$	132,175		$	399,708		$	407,198
Plus: Total Non-interest income		41,900			47,357			44,872			125,278			146,932
Less: Investment securities gains		(81		)	(2,633		)	(1,112		)	(1,193		)	(7,971		)
Denominator		$	175,511		$	181,600		$	175,935		$	523,793		$	546,159
Efficiency ratio		65.80		%	63.92		%	65.85		%	65.02		%	62.81		%

Non-performing assets to tangible common shareholders' equity and allowance for credit losses
Non-performing assets (numerator)		$	157,337		$	186,456		$	162,794
Tangible shareholders' equity		$	1,545,889		$	1,495,046		$	1,567,368
Plus: Allowance for credit losses		191,108			212,838			193,442
Tangible shareholders' equity and allowance for credit losses (denominator)		$	1,736,997		$	1,707,884		$	1,760,810
Non-performing assets to tangible common shareholders' equity and allowance for credit losses		9.06		%	10.92		%	9.25		%