34th Annual Shareholders Meeting
April 25, 2008
1
Safe Harbor Statement
Many factors could affect future financial results including, without limitation, acquisition and growth strategies, market
risk, changes or adverse developments in economic, political or regulatory conditions, a continuation or worsening of the
current disruption in credit and other markets, including the lack of or reduced access to, and the abnormal functioning of,
markets for mortgage and other asset-backed securities and for commercial paper and other short-term corporate
borrowings, the effect of competition and interest rates on net interest margin and net interest income, investment strategy
and income growth, investment securities gains, impairment of investment securities, changes in rates of deposit and loan
growth, asset quality and the impact on assets from adverse changes in the economy and in credit and other markets and
resulting effects on credit risk and asset values, balances of risk-sensitive assets to risk-sensitive liabilities, employee
benefits and other expenses, amortization of intangible assets, goodwill impairment, capital and liquidity strategies and
other financial and business matters for future periods.
The following presentation may contain forward-looking statements with respect to our financial condition, results of
operations and business. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of
1995. When words such as “believes”, “expects”, “anticipates” or similar expressions are used in this presentation, the
Corporation is making forward-looking statements.
Such forward-looking statements reflect the Corporation’s current views and expectations based largely on information
currently available to its management, and on its current expectations, assumptions, plan, estimates, judgments, and
projections about its business and its industry, and they involve inherent risks, contingencies, uncertainties and other
factors. Although the Corporation believes that these forward-looking statements are based on reasonable estimates and
assumptions, the Corporation is unable to provide any assurance that its expectations will, in fact, occur or that its
estimates or assumptions will be correct and actual results could differ materially from those expressed or implied by such
forward-looking statements and such statements are not guarantees of future performance. The Corporation undertakes no
obligation to update or revise any forward-looking statements. Accordingly, investors and others are cautioned not to place
undue reliance on such forward-looking statements.
2
Scott Smith
Chairman, President and CEO
Business Meeting
3
Management Presentation
4
Changes implemented
To reduce the risk
To provide for potential losses
Fulton Mortgage Company named to
oversee all mortgage lending
activities
5
Quarterly cash dividend
Maintaining quarterly cash dividend
15 cents per share
Payable on July 15 to shareholders
of record as of June 20
6
Cyclical business
Poised for
changing
cycles
7
Investors
Growing interest
in bank stocks
Can provide
growth
and income
8
Federal Advisory Committee
9
International Bancshares Corporation
Old National Bancorp
South Financial Group, Inc.
Susquehanna Bancshares, Inc.
TCF Financial Corporation
Trustmark Corporation
UMB Financial Corporation
United Bankshares, Inc.
Valley National Bancorp
Whitney Holding Corporation
Wilmington Trust Corporation
Associated Banc-Corp
BancorpSouth, Inc.
Bank of Hawaii Corporation
BOK Financial Corporation
Citizens Republic Bancorp
City National Corporation
Colonial BancGroup, Inc.
Commerce Bancshares, Inc.
Cullen/Frost Bankers, Inc.
First Citizens BancShares, Inc.
First Midwest Bancorp, Inc.
First Merit Corporation
Peer group
10
Stock price
$14.53 on 3/31/07
$11.22 on 12/31/07
$12.29 on 3/31/08
Up 9.5% from year-end 2007
11
Earnings per share growth
Wilmington Trust
Valley National
Fulton Financial
Susquehanna Bancshares
Peer Median
28.2%
- 4.5%
- 17.0%
- 25.9%
- 3.5%
12
Organic loan growth
2007
2006
$
%
(dollars in millions)
Commercial
3,210
$
2,840
$
370
$
13%
Commercial Mortgage
3,340
3,090
250
8%
Residential Mortgage
760
640
120
19%
Home Equity
1,450
1,430
20
1%
Construction
1,380
1,380
-
0%
Consumer
600
600
-
0%
Total Loans
10,740
$
9,980
$
760
8%
13
Net interest margin trend
3.66
3.65
3.45
3.40
3.65
3.90
4.15
4.40
4.65
94
95
96
97
98
99
00
01
02
03
04
05
06
07
FFC
Peer
Top 50
14
2007
2006
$
%
(dollars in millions)
Non-interest DDAs
1,710
$
1,830
$
(120)
$
-7%
Interest DDAs
1,700
1,680
20
1%
Savings/Money Market
2,260
2,350
(90)
-4%
Certificates of Deposits
4,550
4,170
380
9%
Cash Management
650
530
120
23%
Total Deposits
10,870
$
10,560
$
310
$
3%
Organic deposit growth
15
Net charge-offs to loans
0.09
0.25
0.30
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
FFC
Peer
Top 50
16
First quarter 2008
Earned $41.5 million
0.9% increase over 1st quarter 2007
8.7% increase over 4th quarter 2007
24 cents per share
Unchanged from 1st quarter 2007
9.1% increase from 4th quarter 2007
17
Enhanced credit card services
Partnering with Elan Financial Services
FFC affiliate banks continue to sell and
service credit cards
Marketing services from Elan
Selling credit card portfolio of
$85 million
Approximate 2008 pre-tax gain:
$10 million
18
34th Annual Shareholders Meeting
April 25, 2008
19
Fulton Financial profile
Asset size: $16 billion
3,900 employees
266 community banking offices
10 community banks and 3 financial
services affiliates in 5 states
Market capitalization:
$2.0 billion
20
Strategic Plan
Superior
Employee Satisfaction
Superior
Customer Experience
Superior
Operating Efficiency
Superior
Financial Results
21
Controlling expenses
Workforce management
Realignment of retirement plan
benefits
22
“Lean” process
23
Analyzing procedures and processes
More nimble
More creative
More flexible
Focus on the
customer
24
Technology
25
New bank websites
26
Automated teller technology
Corporation-wide
training
Information
Technology
support
27
28
Investment platform
Customized
personal
services
Currently
unmatched by
most companies
29
Tax Expertise
Investment
Solutions
Goal
Integration
The Clermont approach: Integrated Wealth Strategies
30
31
Customer service
32
Customer satisfaction surveys
0
10
20
30
40
50
60
70
80
90
Satisfied customers
Retail
Commercial
33
Customer satisfaction surveys
0
10
20
30
40
50
60
70
80
90
Satisfied customers
Other banks
Our banks
Other
banks
FFC
banks
34
Proven success
35
Internal mergers
First Washington State Bank into
The Bank
Somerset Valley Bank into
Skylands Community Bank
Lebanon Valley Farmers Bank into
Fulton Bank
Resource Bank into Fulton Bank
36
Serving a broader audience
Personalized professional banking
+ Thriving geographic markets
+ Areas rich with potential
= Internal/Organic growth for
Fulton Financial
37
Branching focus
38
Since 2005
Opened 24 new branches
12 additional branches planned
Deposits: $406 million (51% core)
Loans: $485 million
39
FFC affiliates in affluent markets*
*Source: Bancology Vol. 24, September 2007
County
National
Ranking
Ranking
in State
Median
HH
Ranking
Affiliate
Hunterdon, NJ
2
1
$95,981
Skylands Bank
Loudoun, VA
3
1
$93,034
Fulton Bank/SD
Fairfax, VA
4
2
$91,851
Fulton Bank/SD
Morris, NJ
6
2
$90,417
Skylands Bank
Somerset, NJ
7
3
$90,411
Skylands Bank
Howard, MD
9
1
$86,370
Columbia Bank
40
*Source: SNL, Median HH Income, 2007 data
Serving PA’s strongest markets*
County
Rank
Projected Population
Change 2007-2012 (%)
Median HH
Income 2007 ($)
Projected HH
Income Change
2007-2012 (%)
Chester, PA
1
9.02
85,956
22.09
Montgomery, PA
2
3.58
79,785
21.29
Bucks, PA
3
4.64
78,883
21.22
Delaware, PA
4
1.20
65,392
19.82
Cumberland, PA
5
5.15
59,921
18.76
Northampton, PA
6
7.77
58,306
18.27
Lancaster, PA
8
4.78
57,258
15.49
York, PA
9
7.43
56,775
15.13
Lehigh, PA
10
5.61
56,725
19.15
Berks, PA
11
5.88
56,332
16.44
Average
5.51
65,533
18.77
Average of all other (58)
2.65
43,673
15.89
41
Funding
New branches
Switch kit/cash incentives
Relationship-based
interest rate incentives
Team Advantage Banking
42
Superior customer experience
Direct mail uses customer segmentation
Leveraging our existing customers to
generate new business
Asking for referrals;
Word-of-mouth
testimonials
43
Chief Deposit Officer
Developed a Deposit Committee
Coordinates all deposit-gathering
activities corporation-wide
44
OptionLine
Home equity
loan
Fixed rate
Floating rate
45
Sharp focus. Broad perspective.
46
Questions
&
Answers
47
34th Annual Shareholders Meeting
April 25, 2008
48
