Annual Shareholders Meeting
April 29, 2009
Safe Harbor statement
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.
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.
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.
Today’s meeting
Tape recorders and cameras are not permitted in
the meeting.
The display of placards and signs is prohibited.
Please be considerate of others -- silence or turn
off your cell phone during the meeting.
Any questions and comments should be directed
to the chairperson of the meeting during the
Question and Answer period. Please remember to
state your name prior to asking your question.
Annual Shareholders Meeting
April 29, 2009
Scott Smith
Chairman and CEO
Welcome and Opening Remarks
Today’s agenda
Business Meeting
Proposals:
Election of directors
Approval of management compensation
Ratification of appointment of independent auditor
Introductions
Results of Voting
Conclusion of Business Meeting
Management Presentation
Questions and Answers
Board of Directors
Jeffrey G. Albertson,Esq.
John M. Bond, Jr.
Donald M. Bowman, Jr.
Dana A. Chryst
Craig A. Dally, Esq.
Patrick J. Freer
Rufus A. Fulton, Jr.
George W. Hodges
Carolyn R. Holleran
Willem Kooyker
Donald W. Lesher, Jr.
Abraham S. Opatut
John O. Shirk, Esq.
Gary A. Stewart
Phil Wenger
Senior Management
Charlie Nugent
Jim Shreiner
Craig Hill
Affiliate CEOs
Jill Carson
Lou Giustini
Dick Grafmyre
Dave Hanson
Steve Miller
Bob Palsgrove
Craig Roda
Bob Rupel
John Scaldara
Angela Snyder
Randy Taylor
Mike Wimer
Report of Judge of Election
Annual Shareholders Meeting
April 29, 2009
Scott Smith
Chairman and CEO
Management Presentation
Factors affecting our 2008 performance
Mark-to-market write-downs in our
investment portfolio
Goodwill write-off
Increased loan losses
Continued global and regional
economic issues
Reasons for decline
Unanticipated severity and length of
the economic crisis
Investors moved away from bank
stocks
Industry- and sector-oriented
challenges
Protecting the balance sheet
Set aside reserves to cover expected
losses
Participated in Capital Purchase
Program
Reduced quarterly cash dividend
Our response to reduce expenses
Reduced workforce
Centralized non-customer contact areas
No payments in variable compensation plan
Froze merit pay increases for 12 months
Reduced retirement plan benefits
Limited discretionary spending
Lean process improvements –
$2 million in savings
Deferred opening some new branches
Efficiency ratio
57.4
61.8
61.9
50.0
52.0
54.0
56.0
58.0
60.0
62.0
64.0
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
FFC
Peer
Top 50
Capital
5.97%
9.57%
11.46%
14.25%
FFC with
Cap. Purch.
Tangible Common Equity
Leverage Capital
Tier 1 Risk-Based Capital
Total Risk-Based Capital
Ratio:
Guideline:
3%
5.00%
6.00%
10.00%
Regulatory Well
Capitalized
5.97%
7.16%
8.57%
11.36%
FFC without
Cap. Purch.
Capital Purchase Program
Ensure FFC could remain viable
Help the U.S. Treasury stabilize the
financial system and increase lending
Created to provide confidence in our
banking system
$376.5 million investment in Fulton
Financial Corporation will be repaid
Fulton Financial Corporation
Family of community banks
Locally managed
Trusted employees
Local decision-making
Focused on the present, but also on
the future
Superior customer experience
Care, Listen, Understand and Deliver
Customers’ satisfaction with FFC
8.5
6.8
Meeting the branch manager
8.5
7.7
Bank is involved in the community
8.4
7.8
Competitive interest rates
8.5
7.8
Fees are generally low
8.7
7.9
Offers ability to conduct transactions on Internet
9.2
8.7
Resolves problems quickly
9.0
9.1
Convenient branches and ATMs
9.3
9.1
Listens to my needs
9.3
9.1
Wide range of products and services
9.3
9.2
Wait times are brief
9.4
9.3
Employees are knowledgeable
9.6
9.5
Bank seems easy to work with
9.6
9.6
Employees are friendly and helpful
Q4/2008
Q4/2007
Attribute
A valuable geographic franchise
*Source: SNL, Median HH Income, 2008 data
Serving PA’s strongest markets*
9
11
Berks, PA
15
10
York, PA
3
9
Lehigh, PA
27
8
Lancaster, PA
3
6
Northampton, PA
3
5
Cumberland, PA
1
4
Delaware, PA
5
3
Bucks, PA
3
2
Montgomery, PA
7
1
Chester, PA
# Branches
Rank
County
FFC affiliates in affluent markets*
*Source: SNL Financial, 2008
#2
#22
3
Montgomery, MD
#1
#9
9
Howard, MD
#3
#8
7
Somerset, NJ
#2
#7
6
Morris, NJ
#1
#3
3
Hunterdon, NJ
Ranking State
National Ranking
# Branches
County
Loans
2007 – 2008 loan growth: 7.5%
Percentage of loans in
Pennsylvania: 54%
Net charge-offs to loans
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
FFC
Peer
Top 50
Residential mortgage and home equity loans
Total
% of
Balance
Total
Pennsylvania
1,383,000
$
51.9%
Maryland
457,000
17.1%
New Jersey
459,000
17.2%
Virginia
206,000
7.7%
Delaware
162,000
6.1%
2,667,000
$
(dollars in thousands)
Oct-08
75,254,000
Nov-08
44,180,000
Dec-08
74,603,000
Jan-09
141,293,000
Feb-09
240,068,000
Mar-09
237,272,000
Mortgage activity
$
Month Closings
Loans to purchase new or
existing homes – 30% of
mortgage volume
$100 million in purchase
financing mortgages in first
quarter
Mortgage foreclosures
19,259 mortgages owned and/or
serviced by FFC
132 of these in foreclosure as of
March 31, 2009
Where are we today?
Solid fundamentals
Experiencing growth in:
Loans
Deposits
Net interest income and other income
Mortgage activity
Stable net interest margin
Improved efficiency
Where are we today?
Strongly capitalized
Positive market demographics
Loyal customer base
Lending to credit-worthy borrowers
Looking to the future
Reducing expenses
Managing credit issues
Creating a superior customer
experience
Engaging our employees
Positioned for economic rebound
Questions and Answers
Annual Shareholders Meeting
April 29, 2009
