Fulton Financial Earns Record $27.2 Million in the First Quarter

Apr 12, 2001, 01:00 ET from Fulton Financial Corporation

    LANCASTER, Pa., April 12 /PRNewswire/ --
 Fulton Financial Corp. (Nasdaq:   FULT) earned a record $27.2 million in the
 first quarter of 2001, resulting in an 8.6 percent increase in diluted net
 income per share, up from 35 cents in 2000 to 38 cents in 2001.
     The $6.5 billion Lancaster, Pennsylvania-based holding company's net
 income increased 7.6 percent over the $25.3 million reported in the first
 quarter of 2000.
     Rufus A. Fulton, Jr., chairman and chief executive officer of Fulton
 Financial, today announced the first quarter earnings to nearly 2000
 shareholders at the corporation's Annual Meeting and Luncheon, held in
 Hershey, PA.  Fulton also announced that the board had approved a 5 percent
 stock dividend and had increased the quarterly cash dividend to 17 cents (see
 accompanying news release.)
     "It is no surprise to anyone that net interest margins are tighter than
 ever," said Rufus A. Fulton, Jr., chairman and chief executive officer.
 "However, our noninterest income increased 26 percent (excluding security
 gains) through growth in investment management and trust services, provided by
 our subsidiary Fulton Financial Advisors, and growth in our mortgage banking
 services, which are now provided by our banks through Fulton Mortgage Company.
 We also continue to supplement the internal growth of our core businesses with
 strategic acquisitions."
     For the quarter, the Corporation's return on average assets (ROA) was
 1.70% and return on average shareholders' equity (ROE) was 16.11%.
     Loans, net of unearned income, totaled $4.8 billion at March 31, 2001, an
 increase of 7.6% as compared to $4.5 billion at March 31, 2000.  Deposits,
 including customer repurchase agreements, increased 7.2% to $5.2 billion at
 March 31, 2001.
     Fulton Financial's asset quality continues to be strong.  Non-performing
 assets at March 31, 2001 were 0.46% of total assets, as compared to 0.43% a
 year ago, and net charge-offs for the three months ended March 31, 2001 were
 0.22% of average total loans outstanding as compared to 0.15% in 2000.
     In December 2000, Fulton Financial Corporation announced that it would
 acquire Drovers Bancshares Corp., a bank holding company based in York, PA.
 The transaction is expected to close in the third quarter of 2001.
     In January, the Corporation acquired Dearden, Maguire, Weaver and Barrett,
 Inc., an asset management firm based in West Conshohocken, PA.
     Also in January, Fulton Financial announced that it will acquire 18
 Sovereign Bank branch offices located in Delaware, New Jersey and
 Pennsylvania.  This transaction is expected to close in the second quarter of
 2001.
     Fulton Financial Corporation now operates 160 offices in Pennsylvania,
 Maryland, Delaware and New Jersey through the following banking affiliates:
 Fulton Bank, Lancaster, PA; Lebanon Valley Farmers Bank, Lebanon, PA;
 Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton,
 PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust Company, Hagerstown, MD;
 Delaware National Bank, Georgetown, DE; The Bank of Gloucester County,
 Woodbury, NJ; The Woodstown National Bank and Trust Company, Woodstown, NJ;
 The Peoples Bank of Elkton, Elkton, MD, and Skylands Community Bank,
 Hackettstown, NJ.  The Corporation's financial services affiliates include
 Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services
 Group Inc., Lancaster, PA; Dearden, Maguire, Weaver and Barrett, Inc., West
 Conshohocken, PA; and Fulton Mortgage Company, Lancaster, PA.
     For more information on Fulton Financial Corporation, visit their website
 at www.fult.com.
 
 
                          FULTON FINANCIAL CORPORATION
                        FINANCIAL HIGHLIGHTS (UNAUDITED)
 
                                           Quarter Ended
                                              March 31             Variance
                                          2001        2000        $        %
 
     INCOME SUMMARY:               (in thousands, except per-share data)
 
       Interest income                  $118,506    $109,011    $9,495    8.7%
       Interest expense                   54,602      47,891     6,711   14.0%
 
         Net interest income              63,904      61,120     2,784    4.6%
       Provision for loan losses           2,779       2,025       754   37.2%
       Other income                       21,808      16,652     5,156   31.0%
       Other expenses                     44,529      39,786     4,743   11.9%
 
         Income before income taxes       38,404      35,961     2,443    6.8%
       Income taxes                       11,160      10,647       513    4.8%
 
         Net Income                      $27,244     $25,314    $1,930    7.6%
 
     Net income per share (basic)          $0.38       $0.35     $0.03    8.6%
     Net income per share (diluted)         0.38        0.35      0.03    8.6%
     Fully taxable equivalent (FTE)
      net interest income                 65,674      62,910     2,764    4.4%
 
     ENDING BALANCES:
 
       Total assets                   $6,524,652  $6,129,914  $394,738    6.4%
       Loans, net of unearned income   4,846,995   4,503,569   343,426    7.6%
       Deposits                        5,010,027   4,647,528   362,499    7.8%
       Short-term borrowings             314,473     451,396  (136,923) -30.3%
       Long-term debt                    382,005     323,194    58,811   18.2%
       Shareholders' equity              705,429     609,738    95,691   15.7%
 
     AVERAGE BALANCES:
 
       Total assets                   $6,503,804  $6,080,151  $423,653    7.0%
       Loans, net of unearned income   4,870,855   4,468,516   402,339    9.0%
       Deposits                        4,903,333   4,552,238   351,095    7.7%
       Short-term borrowings             406,598     478,442   (71,844) -15.0%
       Long-term debt                    401,952     340,692    61,260   18.0%
       Shareholders' equity              685,709     614,421    71,288   11.6%
 
 
                          FULTON FINANCIAL CORPORATION
                 CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
 
                                                            March 31
                                                     2001               2000
                                                         (in thousands)
     ASSETS
        Cash and due from banks                    $245,496          $258,415
        Interest-bearing deposits                     1,885             2,309
        Mortgage loans held for sale                 14,233             1,419
        Investment securities                     1,208,911         1,190,009
 
        Loans, net of unearned income             4,846,995         4,503,569
        Less: Allowance for loan losses             (60,357)          (58,034)
 
           Net Loans                              4,786,638         4,445,535
 
        Premises and equipment                      101,027            81,452
        Accrued interest receivable                  38,887            31,611
        Intangible assets                            43,999            13,304
        Other assets                                 83,576           105,860
 
           Total Assets                          $6,524,652        $6,129,914
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
        Deposits:
           Noninterest bearing                     $839,536          $793,563
           Interest-bearing                       4,170,491         3,853,965
 
           Total Deposits                         5,010,027         4,647,528
 
        Short-term borrowings:
           Securities sold under
            agreements to repurchase                262,284           303,899
           Federal funds purchased                   48,000           143,890
           Demand notes of U.S. Treasury              4,189             3,607
 
           Total Short-Term Borrowings              314,473           451,396
 
        Accrued interest payable                     41,846            33,526
        Other liabilities                            70,872            64,532
        Long-term debt                              382,005           323,194
 
           Total Liabilities                      5,819,223         5,520,176
 
        Shareholders' equity:
            Common stock                            182,052           181,884
            Capital surplus                         443,948           451,729
            Retained earnings                        82,897            24,154
            Accumulated other
             comprehensive income                     9,195           (21,910)
            Less: Treasury stock, at cost           (12,663)          (26,119)
 
           Total Shareholders' Equity               705,429           609,738
 
           Total Liabilities and
            Shareholders' Equity                 $6,524,652        $6,129,914
 
 
     LOANS AND DEPOSITS DETAIL:
 
     Loans, by type:
        Commercial, financial and
         agricultural                            $1,259,140        $1,095,176
        Real estate - construction                  215,896           181,899
        Real estate - mortgage                    2,625,395         2,396,110
        Consumer                                    674,551           770,431
        Leasing and other                            72,013            59,953
 
        Total Loans, net of unearned
         income                                  $4,846,995        $4,503,569
 
     Deposits, by type:
        Noninterest-bearing demand                 $839,536          $793,563
        Interest-bearing demand                     629,822           593,110
        Savings deposits                          1,059,532         1,038,314
        Time deposits                             2,481,137         2,222,541
 
        Total Deposits                           $5,010,027        $4,647,528
 
 
 
                          FULTON FINANCIAL CORPORATION
                         CONSOLIDATED INCOME STATEMENT
                   AND SELECTED FINANCIAL RATIOS (UNAUDITED)
 
                                                          Quarter Ended
                                                             March 31
                                                      2001               2000
                                          (in thousands, except per-share data)
     Interest Income:
        Loans, including fees                       $101,005           $91,368
        Investment securities:
           Taxable                                    14,043            14,189
           Tax-exempt                                  2,144             2,205
           Dividends                                   1,132             1,105
        Other interest income                            182               144
 
           Total Interest Income                     118,506           109,011
 
     Interest Expense:
        Deposits                                      44,017            37,226
        Short-term borrowings                          5,304             6,256
        Long-term debt                                 5,281             4,409
 
           Total Interest Expense                     54,602            47,891
 
           Net Interest Income                        63,904            61,120
        Provision for Loan Losses                      2,779             2,025
 
           Net Interest Income after
            Provision                                 61,125            59,095
 
     Other Income:
        Investment management & trust
         services                                      6,103             4,921
        Service charges on deposit
         accounts                                      6,467             5,561
        Other service charges and fees                 3,641             3,104
        Mortgage banking income                        1,689               590
        Investment securities gains                    3,908             2,476
 
           Total Other Income                         21,808            16,652
 
     Other Expenses:
        Salaries and employee benefits                25,549            22,745
        Net occupancy expense                          3,831             3,591
        Equipment expense                              2,526             2,483
        Data processing                                2,714             2,773
        Intangible amortization                          826               328
        Other                                          9,083             7,866
 
           Total Other Expenses                       44,529            39,786
 
           Income Before Income Taxes                 38,404            35,961
        Income Taxes                                  11,160            10,647
 
           Net Income                                $27,244           $25,314
 
 
     SHARE AND PER-SHARE INFORMATION:
        Net Income (basic)                             $0.38             $0.35
        Net Income (diluted)                            0.38              0.35
        Cash Dividends                                 0.160             0.143
        Book Value                                      9.78              8.55
        Tangible Book Value                             9.17              8.36
 
        Weighted average shares (basic)               72,060            71,648
        Weighted average shares (diluted)             72,514            71,955
        Shares outstanding, end of period             72,146            71,335
 
     FINANCIAL RATIOS:
        Return on Average Assets                       1.70%             1.67%
        Return on Average Equity                      16.11%            16.57%
        Net Interest Margin                            4.36%             4.42%
        Efficiency Ratio                               53.3%             51.6%
        Average Equity to Average Assets               10.5%             10.1%
 
 
 
                          FULTON FINANCIAL CORPORATION
                 CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)
 
                                                         Quarter Ended
                                                            March 31
                                                     2001              2000
     ASSETS                                              (In thousands)
        Interest-earning assets:
           Loans and leases                      $4,870,855        $4,468,516
           Taxable investment securities            912,370           943,467
           Tax-exempt investment
            securities                              198,963           204,122
           Equity securities                         83,673            84,700
           Short-term investments                    11,786             8,991
 
           Total Interest-Earning Assets          6,077,647         5,709,796
 
        Non-interest earning assets:
           Cash and due from banks                  222,272           225,788
           Premises and equipment                    99,822            80,551
           Other assets                             165,315           122,492
           Less: Allowance for loan losses          (61,252)          (58,476)
 
           Total Assets                          $6,503,804        $6,080,151
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
        Interest-bearing liabilities:
           Demand deposits                         $617,218          $583,476
           Savings deposits                       1,047,247         1,020,293
           Time deposits                          2,440,054         2,217,844
 
           Total Interest-Bearing Deposits        4,104,519         3,821,613
 
           Short-term borrowings                    406,598           478,442
           Long-term debt                           401,952           340,692
 
           Total Interest-Bearing
            Liabilities                           4,913,069         4,640,747
 
        Noninterest-bearing liabilities:
           Demand deposits                          798,814           730,625
           Other                                    106,212            94,358
 
           Total Liabilities                      5,818,095         5,465,730
 
        Shareholders' equity                        685,709           614,421
 
           Total Liabilities and
            Shareholders' Equity                 $6,503,804        $6,080,151
 
 
     AVERAGE YIELDS ON INTEREST-EARNING
      ASSETS:
 
        Loans and leases                              8.41%             8.22%
        Taxable investment securities                 6.24%             6.05%
        Tax-exempt investment securities              4.37%             4.34%
        Equity securities                             5.49%             5.25%
        Short-term investments                        6.26%             6.44%
 
                Total Interest-Earning
                 Assets                               7.91%             7.68%
 
     AVERAGE COSTS OF INTEREST-BEARING
      LIABILITIES:
 
        Demand Deposits                               1.50%             1.47%
        Savings Deposits                              2.41%             2.37%
        Time Deposits                                 5.90%             5.27%
        Short-term borrowings                         5.29%             5.26%
        Long-term debt                                5.33%             5.20%
 
                Total Interest-Bearing
                 Liabilities                          4.51%             4.15%
 
     NET INTEREST MARGIN (FTE)                        4.36%             4.42%
 
 
 
                          FULTON FINANCIAL CORPORATION
                      LOAN QUALITY INFORMATION (UNAUDITED)
 
                                                          Quarter Ended
                                                             March 31
                                                      2001               2000
                                                          (in thousands)
 
        Gross Charge-offs                            $3,830             $3,035
        Recoveries                                    1,139              1,413
 
           Net Charge-offs                           $2,691             $1,622
 
        Net Charge-offs to average loans              0.22%              0.15%
 
 
        Non-Accrual Loans                           $20,499            $18,914
        Accruing Loans 90+ Days Overdue               8,953              6,864
        Other Real Estate Owned                         846                816
 
           Total Non-Performing Loans               $30,298            $26,594
 
        Non-accrual loans to total loans              0.42%              0.42%
        Non-performing assets to total
         loans and OREO                               0.62%              0.59%
        Non-performing assets to total
         assets                                       0.46%              0.43%
        Allowance to Loans                            1.25%              1.29%
 
 

SOURCE Fulton Financial Corporation
    LANCASTER, Pa., April 12 /PRNewswire/ --
 Fulton Financial Corp. (Nasdaq:   FULT) earned a record $27.2 million in the
 first quarter of 2001, resulting in an 8.6 percent increase in diluted net
 income per share, up from 35 cents in 2000 to 38 cents in 2001.
     The $6.5 billion Lancaster, Pennsylvania-based holding company's net
 income increased 7.6 percent over the $25.3 million reported in the first
 quarter of 2000.
     Rufus A. Fulton, Jr., chairman and chief executive officer of Fulton
 Financial, today announced the first quarter earnings to nearly 2000
 shareholders at the corporation's Annual Meeting and Luncheon, held in
 Hershey, PA.  Fulton also announced that the board had approved a 5 percent
 stock dividend and had increased the quarterly cash dividend to 17 cents (see
 accompanying news release.)
     "It is no surprise to anyone that net interest margins are tighter than
 ever," said Rufus A. Fulton, Jr., chairman and chief executive officer.
 "However, our noninterest income increased 26 percent (excluding security
 gains) through growth in investment management and trust services, provided by
 our subsidiary Fulton Financial Advisors, and growth in our mortgage banking
 services, which are now provided by our banks through Fulton Mortgage Company.
 We also continue to supplement the internal growth of our core businesses with
 strategic acquisitions."
     For the quarter, the Corporation's return on average assets (ROA) was
 1.70% and return on average shareholders' equity (ROE) was 16.11%.
     Loans, net of unearned income, totaled $4.8 billion at March 31, 2001, an
 increase of 7.6% as compared to $4.5 billion at March 31, 2000.  Deposits,
 including customer repurchase agreements, increased 7.2% to $5.2 billion at
 March 31, 2001.
     Fulton Financial's asset quality continues to be strong.  Non-performing
 assets at March 31, 2001 were 0.46% of total assets, as compared to 0.43% a
 year ago, and net charge-offs for the three months ended March 31, 2001 were
 0.22% of average total loans outstanding as compared to 0.15% in 2000.
     In December 2000, Fulton Financial Corporation announced that it would
 acquire Drovers Bancshares Corp., a bank holding company based in York, PA.
 The transaction is expected to close in the third quarter of 2001.
     In January, the Corporation acquired Dearden, Maguire, Weaver and Barrett,
 Inc., an asset management firm based in West Conshohocken, PA.
     Also in January, Fulton Financial announced that it will acquire 18
 Sovereign Bank branch offices located in Delaware, New Jersey and
 Pennsylvania.  This transaction is expected to close in the second quarter of
 2001.
     Fulton Financial Corporation now operates 160 offices in Pennsylvania,
 Maryland, Delaware and New Jersey through the following banking affiliates:
 Fulton Bank, Lancaster, PA; Lebanon Valley Farmers Bank, Lebanon, PA;
 Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton,
 PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust Company, Hagerstown, MD;
 Delaware National Bank, Georgetown, DE; The Bank of Gloucester County,
 Woodbury, NJ; The Woodstown National Bank and Trust Company, Woodstown, NJ;
 The Peoples Bank of Elkton, Elkton, MD, and Skylands Community Bank,
 Hackettstown, NJ.  The Corporation's financial services affiliates include
 Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services
 Group Inc., Lancaster, PA; Dearden, Maguire, Weaver and Barrett, Inc., West
 Conshohocken, PA; and Fulton Mortgage Company, Lancaster, PA.
     For more information on Fulton Financial Corporation, visit their website
 at www.fult.com.
 
 
                          FULTON FINANCIAL CORPORATION
                        FINANCIAL HIGHLIGHTS (UNAUDITED)
 
                                           Quarter Ended
                                              March 31             Variance
                                          2001        2000        $        %
 
     INCOME SUMMARY:               (in thousands, except per-share data)
 
       Interest income                  $118,506    $109,011    $9,495    8.7%
       Interest expense                   54,602      47,891     6,711   14.0%
 
         Net interest income              63,904      61,120     2,784    4.6%
       Provision for loan losses           2,779       2,025       754   37.2%
       Other income                       21,808      16,652     5,156   31.0%
       Other expenses                     44,529      39,786     4,743   11.9%
 
         Income before income taxes       38,404      35,961     2,443    6.8%
       Income taxes                       11,160      10,647       513    4.8%
 
         Net Income                      $27,244     $25,314    $1,930    7.6%
 
     Net income per share (basic)          $0.38       $0.35     $0.03    8.6%
     Net income per share (diluted)         0.38        0.35      0.03    8.6%
     Fully taxable equivalent (FTE)
      net interest income                 65,674      62,910     2,764    4.4%
 
     ENDING BALANCES:
 
       Total assets                   $6,524,652  $6,129,914  $394,738    6.4%
       Loans, net of unearned income   4,846,995   4,503,569   343,426    7.6%
       Deposits                        5,010,027   4,647,528   362,499    7.8%
       Short-term borrowings             314,473     451,396  (136,923) -30.3%
       Long-term debt                    382,005     323,194    58,811   18.2%
       Shareholders' equity              705,429     609,738    95,691   15.7%
 
     AVERAGE BALANCES:
 
       Total assets                   $6,503,804  $6,080,151  $423,653    7.0%
       Loans, net of unearned income   4,870,855   4,468,516   402,339    9.0%
       Deposits                        4,903,333   4,552,238   351,095    7.7%
       Short-term borrowings             406,598     478,442   (71,844) -15.0%
       Long-term debt                    401,952     340,692    61,260   18.0%
       Shareholders' equity              685,709     614,421    71,288   11.6%
 
 
                          FULTON FINANCIAL CORPORATION
                 CONSOLIDATED ENDING BALANCE SHEET (UNAUDITED)
 
                                                            March 31
                                                     2001               2000
                                                         (in thousands)
     ASSETS
        Cash and due from banks                    $245,496          $258,415
        Interest-bearing deposits                     1,885             2,309
        Mortgage loans held for sale                 14,233             1,419
        Investment securities                     1,208,911         1,190,009
 
        Loans, net of unearned income             4,846,995         4,503,569
        Less: Allowance for loan losses             (60,357)          (58,034)
 
           Net Loans                              4,786,638         4,445,535
 
        Premises and equipment                      101,027            81,452
        Accrued interest receivable                  38,887            31,611
        Intangible assets                            43,999            13,304
        Other assets                                 83,576           105,860
 
           Total Assets                          $6,524,652        $6,129,914
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
        Deposits:
           Noninterest bearing                     $839,536          $793,563
           Interest-bearing                       4,170,491         3,853,965
 
           Total Deposits                         5,010,027         4,647,528
 
        Short-term borrowings:
           Securities sold under
            agreements to repurchase                262,284           303,899
           Federal funds purchased                   48,000           143,890
           Demand notes of U.S. Treasury              4,189             3,607
 
           Total Short-Term Borrowings              314,473           451,396
 
        Accrued interest payable                     41,846            33,526
        Other liabilities                            70,872            64,532
        Long-term debt                              382,005           323,194
 
           Total Liabilities                      5,819,223         5,520,176
 
        Shareholders' equity:
            Common stock                            182,052           181,884
            Capital surplus                         443,948           451,729
            Retained earnings                        82,897            24,154
            Accumulated other
             comprehensive income                     9,195           (21,910)
            Less: Treasury stock, at cost           (12,663)          (26,119)
 
           Total Shareholders' Equity               705,429           609,738
 
           Total Liabilities and
            Shareholders' Equity                 $6,524,652        $6,129,914
 
 
     LOANS AND DEPOSITS DETAIL:
 
     Loans, by type:
        Commercial, financial and
         agricultural                            $1,259,140        $1,095,176
        Real estate - construction                  215,896           181,899
        Real estate - mortgage                    2,625,395         2,396,110
        Consumer                                    674,551           770,431
        Leasing and other                            72,013            59,953
 
        Total Loans, net of unearned
         income                                  $4,846,995        $4,503,569
 
     Deposits, by type:
        Noninterest-bearing demand                 $839,536          $793,563
        Interest-bearing demand                     629,822           593,110
        Savings deposits                          1,059,532         1,038,314
        Time deposits                             2,481,137         2,222,541
 
        Total Deposits                           $5,010,027        $4,647,528
 
 
 
                          FULTON FINANCIAL CORPORATION
                         CONSOLIDATED INCOME STATEMENT
                   AND SELECTED FINANCIAL RATIOS (UNAUDITED)
 
                                                          Quarter Ended
                                                             March 31
                                                      2001               2000
                                          (in thousands, except per-share data)
     Interest Income:
        Loans, including fees                       $101,005           $91,368
        Investment securities:
           Taxable                                    14,043            14,189
           Tax-exempt                                  2,144             2,205
           Dividends                                   1,132             1,105
        Other interest income                            182               144
 
           Total Interest Income                     118,506           109,011
 
     Interest Expense:
        Deposits                                      44,017            37,226
        Short-term borrowings                          5,304             6,256
        Long-term debt                                 5,281             4,409
 
           Total Interest Expense                     54,602            47,891
 
           Net Interest Income                        63,904            61,120
        Provision for Loan Losses                      2,779             2,025
 
           Net Interest Income after
            Provision                                 61,125            59,095
 
     Other Income:
        Investment management & trust
         services                                      6,103             4,921
        Service charges on deposit
         accounts                                      6,467             5,561
        Other service charges and fees                 3,641             3,104
        Mortgage banking income                        1,689               590
        Investment securities gains                    3,908             2,476
 
           Total Other Income                         21,808            16,652
 
     Other Expenses:
        Salaries and employee benefits                25,549            22,745
        Net occupancy expense                          3,831             3,591
        Equipment expense                              2,526             2,483
        Data processing                                2,714             2,773
        Intangible amortization                          826               328
        Other                                          9,083             7,866
 
           Total Other Expenses                       44,529            39,786
 
           Income Before Income Taxes                 38,404            35,961
        Income Taxes                                  11,160            10,647
 
           Net Income                                $27,244           $25,314
 
 
     SHARE AND PER-SHARE INFORMATION:
        Net Income (basic)                             $0.38             $0.35
        Net Income (diluted)                            0.38              0.35
        Cash Dividends                                 0.160             0.143
        Book Value                                      9.78              8.55
        Tangible Book Value                             9.17              8.36
 
        Weighted average shares (basic)               72,060            71,648
        Weighted average shares (diluted)             72,514            71,955
        Shares outstanding, end of period             72,146            71,335
 
     FINANCIAL RATIOS:
        Return on Average Assets                       1.70%             1.67%
        Return on Average Equity                      16.11%            16.57%
        Net Interest Margin                            4.36%             4.42%
        Efficiency Ratio                               53.3%             51.6%
        Average Equity to Average Assets               10.5%             10.1%
 
 
 
                          FULTON FINANCIAL CORPORATION
                 CONSOLIDATED AVERAGE BALANCE SHEET (UNAUDITED)
 
                                                         Quarter Ended
                                                            March 31
                                                     2001              2000
     ASSETS                                              (In thousands)
        Interest-earning assets:
           Loans and leases                      $4,870,855        $4,468,516
           Taxable investment securities            912,370           943,467
           Tax-exempt investment
            securities                              198,963           204,122
           Equity securities                         83,673            84,700
           Short-term investments                    11,786             8,991
 
           Total Interest-Earning Assets          6,077,647         5,709,796
 
        Non-interest earning assets:
           Cash and due from banks                  222,272           225,788
           Premises and equipment                    99,822            80,551
           Other assets                             165,315           122,492
           Less: Allowance for loan losses          (61,252)          (58,476)
 
           Total Assets                          $6,503,804        $6,080,151
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
        Interest-bearing liabilities:
           Demand deposits                         $617,218          $583,476
           Savings deposits                       1,047,247         1,020,293
           Time deposits                          2,440,054         2,217,844
 
           Total Interest-Bearing Deposits        4,104,519         3,821,613
 
           Short-term borrowings                    406,598           478,442
           Long-term debt                           401,952           340,692
 
           Total Interest-Bearing
            Liabilities                           4,913,069         4,640,747
 
        Noninterest-bearing liabilities:
           Demand deposits                          798,814           730,625
           Other                                    106,212            94,358
 
           Total Liabilities                      5,818,095         5,465,730
 
        Shareholders' equity                        685,709           614,421
 
           Total Liabilities and
            Shareholders' Equity                 $6,503,804        $6,080,151
 
 
     AVERAGE YIELDS ON INTEREST-EARNING
      ASSETS:
 
        Loans and leases                              8.41%             8.22%
        Taxable investment securities                 6.24%             6.05%
        Tax-exempt investment securities              4.37%             4.34%
        Equity securities                             5.49%             5.25%
        Short-term investments                        6.26%             6.44%
 
                Total Interest-Earning
                 Assets                               7.91%             7.68%
 
     AVERAGE COSTS OF INTEREST-BEARING
      LIABILITIES:
 
        Demand Deposits                               1.50%             1.47%
        Savings Deposits                              2.41%             2.37%
        Time Deposits                                 5.90%             5.27%
        Short-term borrowings                         5.29%             5.26%
        Long-term debt                                5.33%             5.20%
 
                Total Interest-Bearing
                 Liabilities                          4.51%             4.15%
 
     NET INTEREST MARGIN (FTE)                        4.36%             4.42%
 
 
 
                          FULTON FINANCIAL CORPORATION
                      LOAN QUALITY INFORMATION (UNAUDITED)
 
                                                          Quarter Ended
                                                             March 31
                                                      2001               2000
                                                          (in thousands)
 
        Gross Charge-offs                            $3,830             $3,035
        Recoveries                                    1,139              1,413
 
           Net Charge-offs                           $2,691             $1,622
 
        Net Charge-offs to average loans              0.22%              0.15%
 
 
        Non-Accrual Loans                           $20,499            $18,914
        Accruing Loans 90+ Days Overdue               8,953              6,864
        Other Real Estate Owned                         846                816
 
           Total Non-Performing Loans               $30,298            $26,594
 
        Non-accrual loans to total loans              0.42%              0.42%
        Non-performing assets to total
         loans and OREO                               0.62%              0.59%
        Non-performing assets to total
         assets                                       0.46%              0.43%
        Allowance to Loans                            1.25%              1.29%
 
 SOURCE  Fulton Financial Corporation