Exhibit 99.1
Fulton Financial Corporation
2004 Annual Meeting April 22, 2004
1
Safe Harbor statement
The following presentation may contain forward-looking statements about Fulton Financial Corporation’s growth and acquisition strategies, new products and services, and future financial performance, including earnings and dividends per share, return on average assets, return on average equity, efficiency ratio and capital ratio. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995.
Such forward-looking information is based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: pricing pressures on loans and deposits, actions of bank and non-bank competitors, changes in local and national economic conditions, changes in regulatory requirements, actions of the Federal Reserve Board, the Corporation’s success in merger and acquisition integration, and customers’ acceptance of the Corporation’s products and services.
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Rufus A. Fulton, Jr.
Chairman and CEO
Introduction and Message to Shareholders
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2004 Annual Report:
Consistent Performance
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Annual Report Highlights
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Annual Report Highlights
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Milestones of 2003
Fulton Financial Corporation
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Premier Bank
Doylestown Office
Executive Office
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Premier Bank offices
Southampton Office
Yardley Office
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Premier Bank offices
Montgomeryville Office
Bensalem Office
Abington Office
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Bank Insurance & Securities
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Resource Bamk
. Double-digit growth in earnings per share, deposits and loans
. Ranked 5th in three-year return on equity
. The only Virginia-based bank with offices in Virginia’s three major markets
. Market area accounts for over 73% of all deposits in the state
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Lawrence N. Smith
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Acquisitions
. Resource Bank
. Premier Bank
. Drovers & Mechanics Bank
. 18 Sovereign Bank Branches
. Dearden, Maguire, Weaver and Barrett, Inc.
. Skylands Community Bank
. Ambassador Bank of the Commonwealth
. Lebanon Valley National Bank
. Peoples Bank of Elkton
. Woodstown National Bank & Trust Company
. Bank of Gloucester County
. Delaware National Bank
. Central Pennsylvania Savings Association
. Hagerstown Trust Company
. Denver National Bank
. Great Valley Savings Assn.
. First National Bank of Danville
. Second National Bank of Nazareth
. Lafayette Trust Bank
. Pen Argyl National Bank
. Swineford National Bank
. Farmers Trust Bank
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Possible future expansion
Current Markets
Future Expansion
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New Ag Business
.$ 165 million
. 350 new clients
. Located in Pennsylvania and Delaware
. #1 Ag lender in Pennsylvania and the northeast
. Lenders have joined our team
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Fulton Mortgage Company
Mortgage Originations:
. 2003: $1.1 billion
. 2002: $800 million
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Fulton Financial Corporation
2004 Annual Meeting April 22, 2004
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Scott Smith
President and Chief Operating Officer
2003 Financial Performance
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Corporate Profile (as of 12/31/03)
.? 9.8 billion in assets (Rank: 56th)
.? 2.59 billion in market capitalization
(Rank: 49th)
. 2nd largest commercial bank headquartered in the Third Federal Reserve District
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Where are we located?
The Bank
Delaware National Bank
FNB Bank
Fulton Bank
Hagerstown Trust
Lafayette Ambassador Bank
Lebanon Valley Farmers Bank
The peoples Bank of Elkton
Premier Bank
Resource Bank
Skylands Community Bank
Swineford National Bank
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Accomplishments
. 22 consecutive years of record earnings
. 8.8% compounded annual growth rate in earnings per share
. 29 consecutive years of dividend increases
. 10.3% compounded annual growth rate in dividends per share
. Proven business model
. Consistently high performance
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Fulton Financial Corporation
. Record earnings
. High asset quality
. Strong net interest margin
. Prudent expense control
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2003 Performance
$ 1.28 Net income per share
(4.1% increase over 2002)
$ 0.623 Cash dividends per share
(11.4% increase over 2002)
1.57% Return on Assets
15.45% Return on Equity
53.80% Efficiency Ratio
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Five-Year Performance
1998 2003
Net income per share $ .88 $1.28
Cash dividends per share $ .37 $.62
Return on assets 1.60% 1.57%
Return on equity 15.06% 15.45%
Efficiency ratio 55.3% 53.8%
Dividend payout 41.6% 48.7%
All information is as originally reported
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2003 Total Return
Institution/Index Percent Change
Nasdaq Nat’l Market 50.77
FULTON FINANCIAL 34.33
Nasdaq Bank Index 33.03
NYSE Bank Index 31.79
S&P 500 28.67
Dow Jones 28.26
Large Banks 25.59
Peer Group 24.39
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Five-Year Total Return
Institution/Index Percent change
FULTON FINANCIAL 80.85
Nasdaq Banks 77.73
Peer Group 50.59
NYSE Banks 42.00
Large Banks 25.40
Dow Jones 24.97
S&P 500 -2.81
Nasdaq Nat’l. Market -7.04
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Wall Street Journal (3/8/04)
Ranking of Banks by 5-Year Average Compound Annual Total Return*
. 62 banks listed
. 43 banks ranked lower than Fulton,
including Wells Fargo, Bank of America, Marshall & Ilsley, Wilmington Trust, Mercantile, Synovus, Fifth Third, PNC, BB&T, Wachovia, J.P. Morgan Chase and Bank of New York
. 18 banks ranked higher than Fulton,
including Commerce, M&T, North Fork, and Valley National
*includes price changes and dividend reinvestment
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Stock Performance (1982-2003)
1982—100 shares—$1,750
2003—1,567 shares—$34,317
15 |
| return WITHOUT |
%dividend reinvestment
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Stock Performance (1982-2003)
1982—100 shares—$1,750
2003—3,322 shares—$72,752
19 return WITH
%dividend reinvestment
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Stock Highlights
Average daily trading volume 116,730
Number of Analysts 11
Number of Market Makers 35
Number of shares outstanding 117.2 million
Market capitalization $2.59 billion
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Employee Stock Ownership
. 70% of our employees collectively own more than 2 million shares of FFC stock
. Stock options help us to retain long-term, loyal employees
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Employee Retention
1999 2000 2001 2002 2003
Exempt
Non-exempt
Overall
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Analysts
. Citigroup Smith Barney Hold
. Cohen Bros Outperform
. Ferris Baker Watts Strong Buy
. Janney Montgomery Scott Hold
. Keefe Bruyette & Woods Marketperform
. Legg Mason Wood Walker Hold
. McDonald Investments Buy
. Moors & Cabot Hold
. RBC Capital Markets Underperform
. Ryan Beck Outperform
. Sandler O’Neill & Partners Hold
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Accounting/Auditing
. Compliance with accounting standards
. Designated a financial expert
. Disclosure committee
. Enhanced Audit Committee role
. CEO and CFO certifications
. Audit Committee approval of financial filings
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http://www.fult.com
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Fulton Financial Corporation
2004 Annual Meeting April 22, 2004
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