ABA National Agricultural
Bankers Conference
R. Scott Smith, Jr.
Chairman, CEO and President
Fulton Financial Corporation
Lancaster, Pennsylvania
Asset size:
$15.1 billion
260 community
banking offices
Where are we located?
Fulton Bank Ag Profile
Loan Commitments – $660 Million
Loan Outstandings - $505 Million
Concentrations by County -
Fulton’s Ag Ranking - U.S. – 14th
Northeast – 1st
York 2%
Chester 3%
Berks 13%
Lebanon 26%
Lancaster 33%
Fulton Bank
Ag Portfolio Characteristics
100%
$ 505,391
TOTAL
27%
138,940
Agri-Business
73%
$ 366,451
Total Production Ag
1%
4,422
Crop Production
8%
39,186
Hogs
12%
62,505
Poultry
52%
$ 260,338
Beef & Dairy
% of Portfolio
$O/S (000’s)
INDUSTRY COMPOSITION (8/31/07)
Fulton Bank
Ag Portfolio Characteristics
(000’s)
Loan Outstandings – 12/31
%Increase over prior year
2004
$428,000
13%
2005
$451,000
5%
2006
$496,000
10%
Loan Growth
2007 YTD
$505,000
3%
(000’s)
Loan Outstandings – 12/31
%Increase over prior year
Challenges
Mature industry
Legal, regulatory and compliance issues
Alternative land use/$100,000+ per acre
vs. 15-hour days?
Rising production costs and market
volatility
Farm Credit System
Banking Opportunities
Shared values of loyalty and relationships
Out-service larger competitors and out-
expertise smaller
Wealth management cross-sell opportunities
Public support of farming and preservation
Source of quality loans and low-cost
deposits
Creates larger agri-business enterprises and
stable employment base
How is Our Market Different?
Skyrocketing land prices
Conflicting interests/preservation vs. development
Family farm is profitable!
Non-farm community supports preservation
Amish culture of hard work and cooperation
Most productive non-irrigated land in the U.S.
Fulton people viewed as farm advocates –
high visibility
Farm Preservation in
Lancaster County (since 1980)
Total acreage = 607,000
Total acreage in farmland = 407,000
Total acreage preserved = 71,000
Total number of farms = 5,300
Total number of farms preserved = 900
Total preservation costs = $155.6 million
Acreage lost to development = 50,000
Fulton Financial Corporation
www.fult.com
