Fulton Financial Corporation
2005 Annual Meeting April 13, 2005
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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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Fulton Financial Corporation
2005 Annual Meeting April 13,
2005
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Board of Directors
Fulton Financial Corporation
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Slides 5-21
[Slides 5-21 contain pictures of directors, which have been omitted from the filed document]
5-21
Senior Management
Fulton Financial Corporation
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Slides 23-24
[Slides 23-24 contain pictures of Senior Management, which have been omitted from the filed document]
23-24
Fulton Financial
Corporation
2005 Annual Meeting April 13, 2005
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Fulton Financial Corporation
Affiliate Chief Executive Officers
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Slides 27-40
[Slides 27-40 contain pictures of Chief Executive Officer of Affiliate Banks, which have been omitted from the filed document]
27-40
Fulton Financial
Corporation
2005 Annual Meeting April 13, 2005
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Rufus A. Fulton, Jr.
Chairman and Chief Executive Officer
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Charles V. Henry, III, Esq.
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J. Robert Hess
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Working together beautifully.
Fulton financial corporation
2004 annual report
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2005 Annual Report:
Working Together Beautifully
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Working Together Beautifully
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Working Together Beautifully
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Highlights of 2004
Fulton Financial Corporation
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Resource Bank
Acquired on April 1, 2004 Current assets of $1.1 billion; headquartered in Virginia Beach, Virginia The only
Virginia-based bank with offices in Virginia’s three major markets Market area accounts for over 71% of all deposits in state of Virginia
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New FFC director
Tom Hunt
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First Washington State Bank
Assets of $585 million Headquartered in Windsor, NJ 16 branches in Mercer, Monmouth and Ocean Counties Enhances our existing northern and southern New Jersey franchise by extending our presence into the central part of the state
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New FFC director
Abe Opatut
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SVB Financial Services, Inc.
Assets of $475 million
Headquartered in Somerville, NJ Banking subsidiary: Somerset Valley Bank 11 branches in Somerset, Hunterdon and Middlesex counties Our 4th New Jersey affiliate
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Our Presence in New Jersey
The bank
Skylands community bank
First washington state bank
Somerset valley bank(pending)
SUSSEX
WARREN
MORRIS
SOMERSET
HUNTERDON
MIDDLESEX
MERCER
MONMOUTH
NEW JERSEY
CAMDEN
OCEAN
GLOUCESTER
SALEM
ATLANTIC
CAPE MAY
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Acquisitions
Somerset Valley Bank (pending) First Washington State Bank 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
Pennsylvania
Maryland
New jersey
Delaware
Viginia
Current markets
Pending applications
Future expansion
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Fulton Financial Corporation
2005 Annual Meeting April 13, 2005
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R. Scott Smith, Jr.
President and Chief Operating Officer
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Fulton Financial profile
Asset size: $11.2 billion
Market Capitalization: $2.9 billion Second largest commercial bank headquartered in Third Federal
Reserve District One of the Top 50 banks in the country
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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 Bankshares Corporation
Skylands Community Bank Swineford National Bank
First Washington State Bank
Somerset Valley Bank (Pending)
Pennsylvania
LYCOMING
COLUMBIA
MORRIS
UNION
SOMERSET
NORTHUMBERLAND
HUNTERDON
MIDDLESEX
MONMOUTH
NEW JERSEY
OCEAN
ATLANTIC
VIRGINIA
MONTOUR
SNYDER
SCHUYLKILL
LEHIGH
WARREN
BERKS
BUCKS
DAUPHIN
LEBANON
CUMBERLAND
MONTGOMERY
MERCER
YORK
LANCASTER
CHESTER
DELAWARE
NEW astle
CAMDEN
GLOUCESTER
WASHINGTON
SALEM
Maryland
FREDERICK
CAPE MAY
SUSSEX
KENT
RICHMOND (City)
Newport news
Fulton Financial CORPORATION
VIRGINIA BEACH
Fairfax
Frederick
Newport news
CHESAPEAKE
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Assets by affiliate
(as of 12/31/04, in thousands)
Fulton Bank $3,975,000
Lafayette Ambassador Bank 1,178,000
Resource Bank 1,161,000
The Bank 1,075,000
Lebanon Valley Farmers Bank 744,000
First Washington State Bank 585,000
Premier Bank 520,000
Hagerstown Trust Company 459,000
Skylands Community Bank 452,000
Delaware National Bank 374,000
FNB Bank, N.A. 271,000
Swineford National Bank 250,000
The Peoples Bank of Elkton 109,000
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What have we accomplished?
23 consecutive years of record earnings 8.8% compounded annual growth rate in earnings per share 30 consecutive years of dividend increases 10.3% compounded annual growth rate in dividends per share Proven business model Consistent performance
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Fulton Financial Corporation
Record earnings High asset quality
Strong net interest margin Prudent expense control
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2004 performance
$1.27 Net income per share
(4.1% increase over 2003)
1.48% Return on Assets
14.31% Return on Equity
18.64% Return on Tangible Equity
55.10% Efficiency Ratio
$0.647 Cash dividends per share
(9.1% increase over 2003)
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2004 total return
Institution/Index Percent Change
Peer Group 17.11
Large Banks 15.30
FULTON FINANCIAL 15.22
Nasdaq Bank Index 14.11
S&P 500 11.21
Nasdaq Nat’l Market 8.97
Dow Jones 5.73
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Five-year total return
Institution/Index Percent change
FULTON FINANCIAL 130.08
Peer Group 117.04
Nasdaq Banks 114.41
Large Banks 93.51
NYSE Banks 49.88
Dow Jones 3.45
S&P 500 - 10.97
Nasdaq Nat’l. Market - 45.49
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Stock Performance (1982-2004)
1982 2004
100 shares 1,645 shares
$1,750 $38,345
15 return WITHOUT
% dividend reinvestment
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Stock Performance (1982-2004)
1982 2004
100 shares 3,596 shares
$1,750 $83,833
19 return WITH
%dividend reinvestment
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Stock highlights (as of 12/31/04)
Average daily trading volume 139,000 shares
Number of analysts 13
Number of market makers 52
Number of shares outstanding 125.7 million
Market capitalization $2.9 billion
Annual meeting attendance 2,000 shareholders
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Employee stock ownership
80% of our employees collectively own more than 3 million shares of Fulton Financial Corporation stock
Stock options help us to retain key high-performing employees
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Analysts
Citigroup Smith Barney Sell
Cohen Bros Hold
Ferris Baker Watts Hold
Janney Montgomery Scott Hold
Keefe Bruyette & Woods Marketperform
KeyBanc Capital Markets Buy
Legg Mason Wood Walker Hold
Lehman Brothers Underweight
Moors & Cabot Hold
RBC Capital Markets Underperform
Ryan Beck Outperform
Sandler O’Neill & Partners Hold
Standard & Poors Sell
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Moody’s Investor Service
Short-term rating P-1
Long-term rating:
Issuer A-2
Lead Bank Deposits A-1
Outlook:
Stable
Fitch Ratings
Short-term rating F-1
Long-term rating A
Outlook:
Stable
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Sarbanes – Oxley Act
Internal control over financial reporting is effective No material weaknesses
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Fulton Financial
Corporation
2005 Annual Meeting April 13, 2005
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