Exhibit 99.1
Fulton Financial Corporation
Investor Presentation Lehman Brothers Financial Services Conference
September 13, 2004
Fulton Financial Corporation
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Forward-looking 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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Presentation outline
Corporate profile Strategic initiatives Asset quality Future direction Financial performance
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Fulton Financial profile
Regional financial holding company (formed in 1982)
12 bank subsidiaries and 3 financial services subsidiaries in 5 states Asset size: $10.6 billion Second largest commercial bank headquartered in Third Federal Reserve District Fulton Bank founded in 1882
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Where are we located?
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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(Pending)
Pennsylvania
LYCOMING
COLUMBIA
UNION
MONTOUR
NORTHUMBERLAND
NORTHAMPTON
SUSSEX
WARREN
SCHUYLKILL
LEHIGH
BERKS
BUCKS
HUNTERDON
DAUPHIN
LEBANON
LANCASTER
MONTGOMERY
MERCER
MONMOUTH
CHESTER
DELAWARE
New Jersey
CAMDEN
SNYDER
MORRIS
YORK
CECIL
CHESAPLAKE
NEW CASTLE
SALEM
GLOUCESTER
ATLANTIC
CAPE MAY
KENT
SUSSEX
WASHINGTON
Maryland
FREDERICK
Virginia
RICHMOND(City)
NEWPORT NEWS
VIRGINIA BEACH
FAIRFAX
CUMBERLAND
OCEAN
FULTON FINANCIAL CORPORATION
Fulton Financial Corporation
DELAWARE
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Assets by affiliate
(as of 6/30/04, in thousands)
Fulton Bank
Lafayette Ambassador Bank Resource Bank The Bank Lebanon Valley Farmers Bank Premier Bank Hagerstown Trust Company Skylands Community Bank Delaware National Bank FNB Bank, N.A.
Swineford National Bank The Peoples Bank of Elkton $ 4,046,000 1,194,000 1,060,000 1,048,000 762,000 525,000 454,000 441,000 374,000 285,000 264,000 108,000
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Possible Future Expansion
Current Markets
Pending Acquisitions
Future Expansion
Pennsylvania
New Jersey
Maryland
Delaware
Virginia
North Carolina
Fulton Financial Corporation
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Mission statement
We will increase shareholder value and enrich the communities we serve by creating financial success together with our customers and career success together with our employees.
We will conduct all of our business with honesty and integrity.
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Corporate ethics
Longstanding written code of conduct No “gray” areas Expectations clearly outlined
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What have we accomplished?
8.8% compounded annual growth rate in earnings per share 22 consecutive years of record earnings 30 consecutive years of dividend increases 10.3% compounded annual growth rate in dividends per share (approximate dividend yield: 3.10%) Proven business model Consistent performance
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Five-year performance
Net income per share Cash dividends per share Return on assets Return on equity Efficiency ratio Dividend payout
1998
$ .84 $ .35 1.60% 15.06% 55.30% 41.60%
2003
$1.22 $ .59 1.57% 15.45% 53.80% 48.70%
Restated for 5% stock dividend paid in May 2004.
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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 had a lower total return 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 had a higher total return than Fulton,
including Commerce, M&T, North Fork, and Valley National
*includes price changes and dividend reinvestment
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Five-year total return
(Peer analysis – 12/31/03)
Rank Peer Banks 5 Year Total Return
1 Commerce Bancorp Inc. 140.98
2 North Fork Bancorporation 97.50
3 Valley National Bancorp 87.87
4 FULTON FINANCIAL CORP. 80.85
5 Hudson United Bancorp 67.50
6 Provident Bankshares Corp. 63.60
7 First Commonwealth Financial Corp. 48.72
8 Susquehanna Bancshares Inc. 48.55
9 TrustCo Bank Corp. NY 47.28
10 Sky Financial Group Inc. 43.95
11 United Bankshares Inc. 40.38
12 Wilmington Trust Corp. 37.72
13 Mercantile Bankshares Corp. 37.15
14 FirstMerit Corp. 22.15
15 Riggs National Corp. -13.19
16 First Financial Bancorp -24.37
Average 51.67
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Stock highlights (as of 06/30/04)
Average daily trading volume 161,097 Number of analysts 12 Number of market makers 35 Number of shares outstanding 121.9 million Market capitalization $2.5 billion Annual meeting attendance 2,000 shareholders
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Employee stock ownership
80% of our employees collectively own more than 2 million shares of Fulton Financial Corporation stock
Stock options help us to retain key high-performing employees
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Stock performance (1982 - 2003)
WITHOUT dividend reinvestment: 15% compounded annual rate of return
WITH dividend reinvestment:
19% compounded annual rate of return
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Employee retention
100 90 80 70 60 50 40 30 20 10 0
1999 2000 2001 2002 2003
Exempt Non-exempt Overall
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Employee opinion survey
Customer service Management team performance Company image and mission Team orientation Technology and systems
Training and development Sales orientation Work effectiveness Pay and benefits Employee satisfaction
(Survey administered by BAI Survey Services)
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Customer satisfaction
96% of our customers are
Extremely or Very Satisfied with their Fulton Financial affiliate bank 86% of our commercial customers are Satisfied or Very Satisfied with us Compared to national average of 55% of customers who are very satisfied with their financial institution*
* Source: 2003 American Banker/Gallup consumer survey
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Funding sources
as of 6/30/04
1%
15%
10%
74%
Deposits and Customer Repurchase Agreements
Capital (GAAP) Other Borrowings Other Liabilities
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Community involvement
Employees are actively involved in their own communities The community benefits from this support The banks receive additional business as a result of the relationships and goodwill that are developed
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Corporate strategic initiatives
Achieving consistent earnings growth Maintaining high asset quality Expanding the franchise through our well-developed acquisition strategy Diversifying revenue stream by increasing the contribution of non-interest income Managing capital
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Capital (At June 30, 2004)
Total Capital (GAAP): $1.1 billion Total Regulatory Capital (Est): $955 million Ratios:
Total Risk-based Capital 12.2% Tier 1 Risk-based Capital 11.1% Leverage Capital 8.4%
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Progress of Stock Buyback
2.2 million shares repurchased since January 1, 2004
Average cost $20.08 per share
4 million share buyback announced June 15, 2004
935,000 shares repurchased as of August 31, 2004
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Acquisitions
First Washington State Bank
(pending)
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
Bank of Gloucester County Delaware National Bank Central Pennsylvania Savings Association Hagerstown Trust Company Denver National Bank Great Valley Savings Association 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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Resource Bankshares Corporation
Acquired on April 1, 2004
Assets of $860 million; 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 Senior lenders average 24 years of industry experience Allows for expansion of Fulton Financial Advisors, retail and commercial banking
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First Washington FinancialCorp
Assets of $483 million Headquartered in Windsor, NJ
Banking subsidiary: First Washington State Bank 16 branches in Mercer, Monmouth and Ocean Counties in New Jersey Enhances our existing northern and southern New Jersey franchise by extending our presence into the central part of the state Transaction will be completed by April 15, 2005 FWFC has very strong asset quality and strong CAGR in EPS, deposits and loans Market areas are robust with strong projected demographic trends
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First Washington Branch Locations
First Washington Branches Fulton Financial Branches
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First Washington Branch Locations
Luzerne
Monroe
Pike
Passaic
stamford
Warren
Bergen
Yonkers
Schuylkill
Lehigh
Northhampton
Paterson
Newark
New York
Hunterdon
Suffolk
Elizabeth
Pennsylvania
Middlesex
Monmouth
Mercer
Morris
Bucks
Perks
New Jersey
Philadelphia
Burlington
Ocean
Salem
Gloucester
Delaware
New Castle
Cumberland
Atlantic
Kent
Cape May
Camden
Carbon
Nassau
New York
Cecil
1380
187
1684
1495
180
1280
1278
178
1678
181
1476
1276
1195
176
1176
295
195
1287
First Washington Branches
Fulton Financial Branches
Copyright (C) 2000-2004 SNL Financial (snt.com) All rights reserved
Fulton Financial Corporation
William Penn
Illegible
ABESCO_____
0 37.5ml
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What do we look for?
High growth areas
Dynamic market demographics Strong performance Asset quality Talented and dedicated staff Compatible corporate culture
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Acquisitions in new markets
What changes?
Loan review Investments
Asset/liability management Compliance Common operating platform Audit
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Acquisitions in new markets
What stays the same?
Bank name Board of Directors Management team Employees
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Benefits to new affiliates
Increased non-interest income due to introduction of new products and services Additional capital Increased lending capacity Reduced expenses Proven merger/conversion expertise
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Product availability
Investment management Brokerage services Insurance (whole life, term life, long-term care through advisors) Cash management On-line banking
Debit/credit cards Residential mortgages Specialized lending (leasing and indirect) International services Correspondent banking
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Fulton Financial Advisors, N.A.
Includes Dearden Maguire Weaver and Barrett, LLC and Fulton Insurance Services Group As of June 30, 2004: $5.2 billion; $3.8 billion in assets under management
Products and Services
Personal trust Asset management Retirement services Brokerage
Insurance Corporate trust Cash management Private banking
Named Community-Based Bank Brokerage Program of the Year in 2003 by Bank Insurance and Securities Association (BISA)
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Fulton Mortgage Company
Coordinates residential mortgage lending throughout 11 affiliates
Expanded, competitive product line to customers of all affiliates In partnership with each affiliate, focused management team on residential mortgages Entry into new markets for FFC
Record originations in 2003
Residential lending at Resource Bank provided through Resource Mortgage
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Other Income As a Percent of Total Income
30.0%
25.0% 20.0%
15.0% 10.0%
5.0% 0.0%
16.0%
16.2%
16.9%
17.9%
19.4%
22.9%
25.0%
27.0%
24.8%
96 97 98 99 00 01 02 03 06/04
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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: Positive
Short-term rating F-1 Long-term rating A Outlook: Stable
Fitch Ratings
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Loan diversification (6/30/04)
36%
14%
30%
11%
9%
Consumer and Other Residential Mortgage Commercial Loans Home Equity Commercial Mortgage
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Summary of larger loans
25 relationships with commitments to lend of $20 million or more Maximum individual commitment of $30 million Average commercial loan commitment is $550,000 Loans and corresponding relationships are within Fulton’s geographical market area
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Commercial loan concentration
by industry (as of 6/30/04)
Industry % R/E - Rental 17.1 Construction 16.1 Services 10.6 Manufacturing 10.1 Retail 8.3 Health Care 8.3 Agriculture 8.3 Other 7.8 Wholesale 5.3 Arts and Entertainment 3.8 Transportation 2.5 Financial Services 1.8
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Six months ended June 30, 2004 $0.62 Net income per share
(1.6% increase over 2003)
$0.317 Cash dividends per share
(10.1% increase over 2003)
1.46% Return on assets 14.45% Return on equity 55.90% Efficiency ratio
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Average Loan Growth (YTD June)
2004 2003 $ %
(dollars in millions)
Commercial $ 2,030 $ 1,710 $ 320 19% Comm’l Mort 2,400 1,770 630 36% Resid Mort 620 560 60 11% Consumer 1,520 1,330 190 14% Total Loans $ 6,570 $ 5,370 1,200 22%
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Average Deposit Growth (YTD June)
2004 2003 $ %
(dollars in millions)
Nonint DDA $ 1,320 $ 1,120 $ 200 18% Int DDA 1,310 1,070 240 22% Savings/MMDA 1,810 1,570 240 15% CD’s 2,640 2,490 150 6% Cash Mgt 390 300 90 30% Total Deposits $ 7,470 $ 6,550 $ 920 14%
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Deposit composition trends
As of June 30
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
2000 2001 2002 2003 2004
Non Int Bearing Demand NOW, MMDA, Savings Time Deposits Customer Repos
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Peer group
Commerce Bancorp Inc. First Commonwealth Financial First Financial Bancorp FirstMerit Corp.
Fulton Financial Corp. Hudson United Bancorp Mercantile Bankshares Corp. North Fork Bankcorporation
Provident Bankshares Corp. Riggs National Corp. Sky Financial Group Inc. Susquehanna Bancshares Inc. TrustCo Bank Corp. NY United Bankshares Inc. Valley National Bancorp Wilmington Trust Corp.
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Net charge-offs to average loans
0.90 0.60 0.30 -
90 91 92 93 94 95 96 97 98 99 00 01 02 03 6/04
Source: SNL Financial Datasource
Top 50
Peer
FFC
0.33
0.24
0.05
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Non-performing assets to total assets
1.80 1.40 1.00 0.60 0.20
90
92
94
96
98 00 02
6/04
Source: SNL Financial Datasource
Top 50 Peer FFC
0.47 0.39 0.31
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Net interest margin
5.50 5.00 4.50 4.00 3.50
90
92
94 96
98
00 02
6/04
3.76
3.76 3.55
Top 50 Peer FFC
Source: SNL Financial Datasource
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Asset/Liability Management
Interest rate “shocks” (as of 06/30/04)
Rate Change
+300 bp +200 bp +100 bp -100 bp
NII Change (Annual)
+ $ 19.2 million
+ $ 13.5 million
+ $ 8.7 million
-$ 5.3 million
% Change
+ 5.6%
+ 3.9%
+ 2.5%
- 18.2%
Source: FFC Asset/Liability Modeling
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Investment portfolio
Portfolio Components Ending Bal. Average Credit ( in millions) 06/30/2004 Life (yrs.) Rating
Mortgage-backed securities $1,876.9 3.4 AAA - agency issued U.S. treasuries and agencies 114.7 0.2 AAA Municipals bonds 268.5 4.1 AAA - insured Corp & bank issued trust pfd 74.8 23.6 various — 5 yrs call Bank stocks 71.6 NA not rated Other/short-term Inv. 69.6 NA AAA
FHLB stock 48.4 NA AAA
Unrealized gain - bank stock 6.8
Unrealized gain - bonds -46.5
TOTAL INVESTMENTS $2,484.8 3.6
NOTE : DOES NOT INCLUDE RESOURCE BANK
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Loan Mix (6/30/04)
Floating rate loans = 34%
Adjustable rate loans = 66%
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Bank stock gains
(percent contribution to EPS)
9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % 0 %
91 92 93 94 95 96 97 98 99 00 01 02 03 6/04
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Efficiency ratio
65.0 60.0 55.0 50.0 45.0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 6/04
57.9 56.8 55.9
Top 50
Peer
FFC
Source: SNL Financial Datasource
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Other Expenses (YTD June)
2004 2003 $ %
(dollars in thousands)
Salaries & Benefits $ 79,160 $ 67,800 $ 11,360 17% Occupancy & Equip. 16,770 15,160 1,610 11% Other Expenses 37,570 31,040 6,530 21%
Total $ 133,500 $ 114,000 $ 19,500 17%
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Corporate Governance
Internal controls over financial reporting process SOX and NASDAQ listing standards
Financial expert designated Independent directors determined Executive sessions
Executive compensation and nominating committees SOX compliant written Code of Conduct Corporate disclosure committee and Audit committee - - formal review process for relevant financial filings
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Looking ahead
Continued focus on:
Strong asset quality
Growth in non-interest income, particularly from Advisors Expansion of franchise geographically Increased loan activity Core deposit growth
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Overview
Shareholders maximize shareholder value
Customers create financial success
Employees create career success
Communities create prosperity
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Fulton Financial Corporation
One Penn Square Lancaster, PA 17602
www.fult.com
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