Fulton Financial
Annual Report 2006

Plain-text annual report

A BALANCED DESIGN FOR GROWTH Fulton Financial Corporation | Annual Report 2006 Chambers of the nautilus. Rings of the oak tree. Leaves on the stem. Shaped by experience, each of these forms tells a unique story of strength, adaptation and growth. The balanced design of the nautilus shell allows it to regulate its depth in the ocean for shelter, feeding and survival. The rings of the oak tree document a lifetime of growth, achieved by weathering the seasons – year after year – resilience that requires a careful balance of power and flexibility. And the spiraling, symmetrical placement of leaves on the stem of a plant reflects the careful design by which the plant achieves structural stability... and ideal exposure to sustaining sunlight. For Fulton Financial Corporation, strength, adaptation and growth represent a way of life. Ours is a long, strong history of purposeful design that creates value for shareholders through a balance of internal and external growth. This combination of organic and acquisitive growth has enabled the company to take full advantage of growth opportunities – and to thrive. The key to that success has been our ability to build a workforce that balances the strengths, talents and abilities of each individual member... and to make a serious investment in each and every employee. The result is an uncommonly experienced, uniquely skilled, and remarkably cohesive community of professionals who have made a long-term commitment to our organization. Together, we share a history of and a dedication to consistent growth, constant adaptation and reliable performance. 2 | Fulton Financial Corporation FINANCIAL HIGHLIGHTS PER-SHARE DATA Net income (diluted) Cash dividends Shareholders’ equity 2006 $1.06 0.581 8.73 2005 $1.00 0.540 7.78 2004 $0.94 0.493 7.54 BALANCE SHEET DATA (Dollars in thousands) Total assets $14,919,000 $12,402,000 $11,160,000 Loans, net of unearned income 10,374,000 8,425,000 7,534,000 Deposits 10,232,000 8,805,000 7,896,000 Shareholders’ equity 1,516,000 1,283,000 1,244,000 Shares outstanding 173,648,000 Number of shareholders Number of employees 53,293 4,376 P E R C E N T C H A N G E 2006/2005 2005/2004 6.0% 7.6% 12.2% 20.3% 23.1% 16.2% 18.2% 6.4% 9.5% 3.2% 11.1% 11.8% 11.5% 3.1% NET INCOME PER SHARE (diluted) $ 0.94 $1.00 $1.06 1.50 0.75 04 05 06 DIVIDENDS PER SHARE 0.600 $ 0.493 $ 0.540 $ 0.581 0.300 04 05 06 RETURN ON AVERAGE EQUITY* (tangible) 25.0 23.87 % 20.0 18.58 % 20.28 % 15.0 04 05 06 *Net income, as adjusted for intangible amortization (net of tax) divided by average shareholders’ equity, net of goodwill and intangible assets. Fulton Financial Corporation | 3 COUNTLESS CONTRIBUTIONS, ONE BRIGHT FUTURE. Letter to our shareholders A year ago, our message to you focused on “Organic One focused on funding and the other on growing Growth” and its importance to our Corporation. non-interest income. We saw a number of non- interest Looking back on 2006, organic growth continued income-producing areas, like Fulton Financial Advisors, to be a vital part of our business strategy... a solid show more positive trends. We began to see stronger component in our “Balanced Design for Growth.” residential mortgage margins as well. Trends in 2006 presented challenges that tested and Our banks are aggressively pursuing the small validated the versatility of this balanced approach. business sector, a market that provides lower cost Converging economic factors generated headwinds funding and one that we serve effectively with our that hampered efforts to grow earnings at many banks. style of relationship banking. We continue to enhance The interest rate environment, customer-driven our small business product line, as well as the product shifts in our deposit mix, and intense competition package for employees of those businesses. for deposits all increased our cost of funds and compressed our net interest margin. The Columbia Bank, which joined us in February 2006, is making a significant contribution to our earnings Analysts continue to be concerned about the growth along with our two other larger affiliates, Fulton ability of banks our size to grow earnings during Bank, in Pennsylvania and The Bank, in New Jersey. this economic cycle. Many of these same analysts As we have shared with you in previous communications, have expressed confidence in Fulton Financial by mid-summer, we will have merged four affiliate Corporation and in our proven ability to generate banks into other affiliates, reducing our total number consistent results over time. of banks from 15 to 11. Our commitment to our Despite the economic pressures, I’m pleased to report that your Corporation performed relatively well in 2006. Earnings for the year were good when compared to our peer group. We focused our attention on organic growth specifically by conducting corporate-wide incentive-based sales and referral programs. decentralized operating philosophy remains strong. However, in some markets, merging one bank into another creates operating and marketing efficiencies as we leverage existing brand awareness over a larger geographic area. Although acquisitions have been an important part of our success, we believe we can achieve earnings 4 | Fulton Financial Corporation per share growth goals by better leveraging organic give us a real competitive advantage. We continue The stories that follow demonstrate how our people growth opportunities across our five-state footprint. to invest resources in creating a culture that allows work together within the Corporation’s balanced We are branching and expanding into markets that dedicated individuals to achieve career satisfaction design for growth ... creating value for our clients as we believe offer considerable opportunity. These areas and success. As a result, our employees have well as for our shareholders. These examples represent include Centre (State College) and Chester Counties continued to make substantial progress in better a small group of a much larger family of nearly 4,000 in Pennsylvania; Atlantic, Burlington and Camden serving our customers, and in furthering their employees. And while they are too numerous to feature Counties in New Jersey; the Baltimore/ Washington own professional development. individually, each one is critical to our continued success. Together, they pave the way to a strong, healthy future for Fulton Financial Corporation. R. Scott Smith, Jr. Chairman, Chief Executive Officer and President corridor and the Richmond, Virginia market. We expect that there will be more acquisition opportunities in 2007, and we will look at each one carefully. Until we see one that meets all of our criteria, however, we will focus on achieving our organic growth and financial goals through our existing affiliates. While our business strategy and tactics remain flexible in order to capitalize on the ever-changing economic landscape, the values upon which this Corporation was built remain unchanged. We continue to manage your company conservatively. The balance sheet is strong and we exceed all regulatory requirements for capital. Asset quality remains high. Enterprise-wide risk management receives significant attention and resources. These risk management activities have enabled us to produce consistent performance over the years. Our senior management team effectively helped the Corporation navigate the twists and turns of 2006. Each of them has long-term experience with our company and provides invaluable leadership by exemplifying the ideals of Fulton Financial. Jim Shreiner manages our Information Technology/ Operations areas and chairs our corporate risk management committee; Phil Wenger manages our banking operations, making sure our banks get the maximum benefit from their association with the holding company and that their financial results are on target; Rick Ashby has accepted the challenge of building Fulton Financial Advisors to achieve even more aggressive goals in the future; Craig Hill manages human resources for the company, building and nurturing the culture that values individuals and Above all, we are proud to build on our heritage of relationships; and Charlie Nugent, our chief financial investing in our people. Successful banking is built on officer, provides guidance for all of the challenging strong relationships, and we believe our employees financial aspects of our company. Fulton Financial Corporation | 5 Fulton Financial has completed many acquisitions over the course of 25 years, integrating nearly 30 banks into our company. Like the rings of an oak tree, counting these milestones is one thing ... successfully weathering them is a different matter entirely. Whether we are acquiring an entire bank or just one branch, we achieve a very high level of customer retention, which is not necessarily typical in our industry. What’s the secret of our smooth transitions? Experience, for one. Due to our business strategy of attracting talented professionals and keeping them on our team, we benefit from an uncommon depth of tenured talent. Our employees understand how to transition a newly acquired bank’s operations seamlessly and efficiently into our own. They do this while preserving what’s most important to our new customers: the relationships they have with their bankers. Jim Shreiner, Senior Executive Vice President, is a great example. Recruited by what is now Fulton Financial Corporation when he was just out of college, Jim joined our Management Training Program, working in operations and technology. In that capacity, he became involved in facilitating transitions when the Corporation acquired new banks. “Developing new relationships... adjusting to and overcoming new challenges ... it’s very gratifying.” 6 | Fulton Financial Corporation Jim Shreiner, Senior Executive Vice President That was 32 years ago. STRONG, SMOOTH TRANSITIONS “As I advanced through my career,” Shreiner says, “it became an integral part of my life here. I’ve been involved in almost every Fulton acquisition since the 1970s.” But there’s more to the equation than spending years on the job. According to Jim, the secret is how well people work together. “We don’t have a specialized team that only does transitions. We want people who will carry on after the merger is completed to participate actively in the integration,” he says. “We draw from existing talent and expertise ... From left to right: Angie Sargent, Charlotte Anderson, Calvin Cassel, Eileen Quinn, John Greathouse, Lorrie Kleppinger and Ed Jablonski both from Fulton Financial and from are communicating – you have to responsible for such seamless the bank we’re acquiring.” ensure that they’re talking, sharing transitions. “There are many, many Calvin Cassel, Vice President/ Project Manager for Fulton Financial Corporation, is one of those talented information. During transitions, we have employees at our operations centers weekly conference calls involving up in Mantua, New Jersey; Bethlehem, to 80 people at a time.” Pennsylvania; and East Petersburg, individuals who has experienced Executive Vice President of Operations acquisitions from both sides. A 26-year Angie Sargent, reinforces that point. veteran of the industry, he joined “There are many details involved,” the Fulton Financial team when the she says. “But everyone is so dedicated. Corporation acquired Lebanon Valley Plus, the teamwork is outstanding. National Bank in 1998. “Communication There’s an incredible amount of is essential,” he says. “You can’t experience.” Sargent is also quick assume that different departments to point out the number of people Pennsylvania who help make our transitions so successful.” And the definition of success? “Absolutely no negative customer impact,” Sargent says. “That’s the goal we all try to achieve.” Fulton Financial Corporation | 7 Fulton Financial Corporation | 7 CAREFULLY POSITIONED TO THRIVE 8 | Fulton Financial Corporation “Growing the business. Winning new customers. Training, motivating, and promoting people. Those are things I really enjoy.” Scott Kintzing, CEO, The Bank In recent years, The Bank has operations and 30 years in the banking enjoyed two types of growth: business. Over the past few years, she’s first, by acquisition, when two other helped to optimize branch design for Fulton Financial Corporation banks the proper balance of efficiency, brand merged into The Bank, and second, consistency, and cost effectiveness. organically, as they continue to “The engineers, the design/build expand into high-growth markets. firm we work with – we’ve all helped CEO Scott Kintzing explains it this each other learn about the process, way: “Our strategic plan is to expand how to troubleshoot it, and over the The Bank’s footprint into additional years, we’ve gotten to be quite good counties ... to take better advantage of at it,” Clementi says. market opportunities that will benefit our customers and our shareholders.” She’s also quick to point out that the team wasn’t assembled by chance. In particular, The Bank is currently “Whenever possible we like to focusing on three counties where they patronize professionals who are From left to right: Angela Snyder, Mary Clementi and Scott Kintzing see promising potential. “It’s more than customers of The Bank. They value us, Clearly, maintaining balance – between finding a growing market,” says Angela and we value them,” Mary says.“This organic growth and acquisitions, as well as Snyder, President. “It’s doing the analysis philosophy holds true throughout between customers and shareholders – has to determine if the demographics in Fulton Financial Corporation.” been a winning strategy both for The Bank that community are a good match for our relationship-oriented style of banking ... basically, we want to know that the people there will value what we have to offer.” According to Scott Kintzing, and for Fulton Financial Corporation. the culture of The Bank – providing Angela Snyder points out that, while the “high-touch service”– is another concept is simple, the execution is less so. reason their affiliation with Fulton “We take a disciplined approach,” she says. Financial Corporation has been so “We do lots of projections, lots of analysis. Once the potential value of a market successful. Angela Snyder agrees. Then, all along the way, we hold ourselves has been established, the challenge “From the outset, our cultures had a accountable to the goals and expectations becomes creating a branch network lot in common,” she says. “We were on which we based our decisions. That there as smoothly and efficiently both focused on proactive sales may sound simple and obvious, but it’s as possible. and service, and a dedication to a discipline that’s often forgotten.” Mary Clementi, Senior Vice President of The Bank, has a background in customers and shareholders.” Fulton Financial Corporation | 9 10 | Fulton Financial Corporation GENERATION AND REGENERATION “I honestly couldn’t imagine a better mentor than John Bond. He was always so involved in all aspects of the bank ... and always included me.” John Scaldara, CEO, The Columbia Bank Those wise words proved to be true. Bond says, “They offered us the best Since Bond hired him in 1989, Scaldara of both worlds. That’s what drove the worked to become President of The deal. They allowed us to keep the local Columbia Bank. And with John Bond’s identity that we had worked so hard to retirement at the end of 2006, Scaldara build while benefiting from the strength has become CEO. Bond will remain a of being part of a larger organization.” director of The Columbia Bank and will Judging from the outstanding team and also stay on as a director of Fulton outstanding market of The Columbia The Columbia Bank joined Fulton Financial Financial Corporation. The management Bank, the success they’ve built is quite in 2006. A valuable acquisition, the bank change, however, isn’t expected to alter likely to continue. combines excellent performance and a great the remarkable growth and success location. It is situated in prime growth markets of The Columbia Bank, thanks to the along the Baltimore /Washington corridor. shared history and philosophy of The Columbia Bank has continued to grow Mr. Bond and Mr. Scaldara. organically since joining Fulton Financial, and it is one of our top-performing affiliates. “We always planned to be the premier bank in our market,” Bond says, “but it Co-founder John Bond served as CEO of wasn’t just about growing quickly. It was The Columbia Bank since it was founded in about discipline. The numbers had to 1987. In addition to guiding the remarkable make sense.” growth of the institution, he motivated his employees – among them John Scaldara. “I hired John as my first CFO,” Bond says. “He was very young, but came highly recommended by other accountants. With good reason – John was very motivated, very bright. He kept taking on more and more responsibility, and grew continuously from the time he started.” “When I was in college, I got some good advice,” Scaldara recalls. “A friend recommended accounting. He told me, ‘It’s the language of business,’... an ideal way to get involved with all aspects of an organization.” Regarding his new post, Scaldara is confident. “It’s a matter of continuing to do what we already do well ... and finding ways to do it better. It's about better delivery to our end users so they continue to see value.” As for the merger with Fulton Financial Corporation, Scaldara says, “We had the luxury of choosing who to partner with, and Fulton Financial Corporation was at the top of our list. They’re very people-oriented. Our cultures, core banking values, traditions – they’re a perfect match.” From left to right: John Bond and John Scaldara Fulton Financial Corporation | 11 GROWING CLOSER AND GAINING GROUND 12 | Fulton Financial Corporation “The challenge is to provide exceptional service to each of our clients ... and to do it in the most efficient manner possible.” Jeff Bankert, Executive Vice President, Private Banking Fulton Financial Corporation formed Fulton Financial Advisors in 2000 to consolidate the investment management, trust and brokerage services of all of our affiliates under one umbrella. “Fulton Financial Advisors resulted from our effort to find and create efficiencies within the Corporation by From left to right: Elaine Kowalski, Jeff Bankert, Carol Fahnestock, Dennis Patrick and Bud Green unifying the various trust departments of all Fulton Financial Advisors is currently They’re dedicated to their jobs, and to our banks,” says Jeff Bankert, Executive focusing its efforts on additional our customers.” Vice President of Private Banking. “We organic growth within its business lines, wanted to get investment expertise into all optimizing delivery of services and the branches and regions that previously fostering a top-quality customer hadn’t had access to it.” experience. “Great service leads to At that time, nearly half of our affiliate banks did not offer investment services. Now, a few short years later, Fulton Financial Advisors products and services are available to all of our clients and customers. Key to such successful expansion, according to Jeff Bankert, has been the quality of communication among our internal team. “When we maintain strong relationships with our affiliate banks, they’re better equipped to listen to client needs and objectives and communicate those back to us,” he says. “That helps our organization expand and grow, which is good for the Corporation. And the client benefits from our services, which creates value for them.” longer-term relationships,” says Rick Ashby, Senior Executive Vice President of Fulton Financial Corporation and CEO of Fulton Financial Advisors. “But it’s a mature business, so you need to stay current with shifting financial climates, rapidly changing customer preferences, and competition from all angles.” Fortunately, Fulton Financial Corporation’s community banking orientation and emphasis on people gives Fulton Financial Advisors an important edge in building a strong internal team. “The quality of our people is paramount to our success,” Ashby says. “And our people truly are quality people. People of character. “All of us are devoted to client success,” Ashby says. “We stay close to them, and get to know them well.” Bankert sums it up this way: “We’re working harder than ever on building those bridges – strengthening relationships with our affiliate banks, with our communities, and with our clients.” The bottom line? The attention paid to the efficiency and effectiveness of the internal business is balanced by an outward focus: toward building value for clients, the Corporation, and the shareholders. And the value-added, fee-based product lines of Fulton Financial Advisors provide a complement to the interest-based revenue sources of Fulton Financial Corporation’s affiliate banks. Fulton Financial Corporation | 13 Fulton Financial Corporation Senior Management R. Scott Smith, Jr. Chairman, Chief Executive Officer and President Charles J. Nugent Senior Executive Vice President/ Chief Financial Officer Richard J. Ashby, Jr. Senior Executive Vice President/ Chairman and CEO of Fulton Financial Advisors Craig H. Hill Senior Executive Vice President/ Human Resources James E. Shreiner Senior Executive Vice President/ Senior Administrative Services Officer E. Philip Wenger Senior Executive Vice President/ Community Banking From left to right: Phil Wenger, Jim Shreiner, Charlie Nugent, Scott Smith, Craig Hill and Rick Ashby 14 | Fulton Financial Corporation Fulton Financial Corporation Fulton Bank Divisional Boards Fulton Bank Advisory Boards Board of Directors Brandywine Division Akron/Lincoln/Ephrata Jeffrey G. Albertson, Esq. Kenneth M. Goddu, Larry L. Loose, Chairman John M. Bond, Jr. Chairman Donald M. Bowman, Jr. Robert F. Adams Craig A. Dally, Esq. Patrick J. Freer Rufus A. Fulton, Jr. George W. Hodges Carolyn R. Holleran Thomas W. Hunt Willem Kooyker Donald W. Lesher, Jr. Abraham S. Opatut John O. Shirk, Esq. R. Scott Smith, Jr. Gary A. Stewart Affiliate Bank Boards of Directors FULTON BANK Board of Directors Larry D. Bashore Dana A. Chryst Carlos E. Graupera James M. Herr George A. Parmer Harlowe R. Prindle A. Richard Pugh Craig A. Roda John O. Shirk, Esq. E. Philip Wenger James S. Wisotzkey Wilmer L. Hostetter Dallas L. Krapf James D. McLeod Michael J. O’Rourke Fred N. Buch Richard A. Hess Louis G. Hurst Kent M. Martin Denver Michael L. Weinhold, C.P.A., Capital Division Chairman Robert S. Jones, Chairman Larry L. Gensemer James C. Byerly Gerald L. Harding Samuel T. Cooper III, Esq. Ralph W. Roseboro Steven S. Etter Dolores Liptak East Petersburg Barry E. Musser, C.P. A. Donald C. Emich, Chairman Beth A. Peiffer Steven C. Wilds Drovers Division David W. Freeman, Chairman Vernon L. Bracey Sally J. Dixon Robert S. Freed Roger L. Holland Gregory V. Saubel William S. Shipley III Gary A. Stewart, Jr. Delaine A. Toerper Constance L. Wolf Great Valley Division Gerald A. Nau, Chairman Marcelino Colón Michael Fromm Kathryn G. Goodman Daniel M. Goodyear Carolyn R. Holleran William G. Koch, Sr., C.P. A. William R. Gamber II Kenneth L. Kreider Jessica H. May Elizabethtown Sherri L. Gorman, Chairman Nancy Z. Garber David B. Mueller David W. Sweigart III Gap Aldus R. King, Chairman A. Charles Artinian Ruth D. Doutrich Hershey/Hummelstown Charles J. DeHart III, Esq., Chairman Jack B. Billmyer Thomas S. Davis, M.D. Joan E. Spire Daniel A. Verdelli Leola Agricultural Advisory LAFAYETTE DELAWARE NATIONAL THE PEOPLES BANK SOMERSET VALLEY Joanne B. Ladley, Chairman Board AMBASSADOR BANK BANK OF ELKTON BANK Robert M. Bard Richard M. Hurst Lititz Ronald L. Miller, C.P. A., Chairman Irel D. Buckwalter Wilbur G. Rohrer Paul W. Stauffer Manheim Peter J. Hondru, Chairman H. Reid Graybill Peter B. McCracken Robert W. Obetz, Jr. Larry D. Sauder J. David Young, Jr., Esq. New Holland R. Douglas Good, Esq., Chairman Vernon R. Martin John D. Yoder Quarryville Dwight E. Wagner, Chairman Frank M. Abel, V.M.D. John E. Chase James W. Hostetter, Sr., C.P.A. State College John A. Rodgers, Chairman Allan J. Darr Eric C. Nicholson Harry H. Bachman Amos J. Balsbaugh I. Hershey Bare Henry M. Berger Richard E. Brandt P. Larry Groff, Sr. Dennis L. Grumbine William Hostetter Amos M. Hursh Aldus R. King Jay H. Kopp Peter B. McCracken LEBANON VALLEY FARMERS BANK Randall I. Ebersole Patrick J. Freer Robert J. Funk Robert P. Hoffman Wendie DiMatteo Holsinger Donald W. Lesher, Jr. Robert J. Longo Andrew M. Marhevsky Albert B. Murry M. Randolph Tice SWINEFORD NATIONAL BANK Thomas C. Clark, Esq. Richard F. Erdley Ann E. Kaye Michael N. O’Keefe Edwin A. Rhoads Michael R. Wimer Gene D. Zartman Gary A. Clewell Craig A. Dally, Esq. L. Anderson Daub Dale R. Dukes Jeffrey M. Fried Amy A. Higgins Sara (Sally) Jane Gammon Mark E. Huntley Thomas J. Maloney, Esq. Greg N. Johnson Terry A. Megee Ronald T. Moore Ralph W. Simpers David T. Wilgus THE BANK Alan B. McFall, Esq. Jamie P. Musselman Edith Ritter Robert A. Rupel John J. Simon Robert C. Wood FNB BANK, N.A. Robert O. Booth Richard A. Grafmyre James D. Hawkins Wendy S. Tripoli Joanne E. Wade HAGERSTOWN TRUST Donald M. Bowman, Jr. Paul N. Crampton, Jr. Raymond A. Grahe Donald R. Harsh, Jr. Doris E. Lehman Bernard P. Lesky Paul C. Mellott, Jr. Harry C. Brown Judy E. Hart Donald S. Hicks Mark E. Huntley Robert O. Palsgrove Nancy R. Simpers David K. Williams, Jr. SKYLANDS COMMUNITY BANK Norman S. Baron Bernard Bernstein Robert P. Corcoran John K. Kitchen Willem Kooyker Frank Orlando Gilbert E. Pittenger Frederick D. Quick Anthony J. Santye, Jr. Donald Sciaretta Herman Simonse Paul V. Stahlin Donald Tourville, Ph.D. THE COLUMBIA BANK Joseph F. Adams, C.P. A. Blanquita Bonifacio Jeffrey G. Albertson, Esq. Michael Halpin Dennis N. DeSimone Joel A. Kobert Lawrence M. DiVietro, Jr. Raymond Nisivoccia, C.P. A. Joe N. Ballard Sandra J. Gubbine James R. Johnson, Jr. Scott H. Kintzing Warner A. Knobe Ross Levitsky, Esq. Sarah (Sally) Love Robert R. McHarness Abraham S. Opatut Angela M. Snyder Daniel G. Timms, D.D.S. Paul J. Tully First Washington Division Harry Horowitz James R. Johnson, Jr. Jerry Kokes Joe J. Mayes, Jr. Abraham S. Opatut Steven I. Pfeffer Denis H. O’Rourke Paul J. Pinizzotto Leslie E. Smith, Jr. Mark F. Strauss, Esq. Norman Worth RESOURCE BANK Alfred E. Abiouness T.A. Grell, Jr. Thomas W. Hunt Louis R. Jones A. Russell Kirk Lawrence N. Smith Elizabeth Addington Twohy Anand S. Bhasin John M. Bond, Jr. Robert R. Bowie, Jr., Esq. Garnett Y. Clark, Jr. Hugh F. Cole, Jr. Winfield M. Kelly, Jr. Herschel L. Langenthal Raymond G. Laplaca, Esq. James R. Moxley, III James R. Moxley, Jr. John A. Scaldara, Jr. Lawrence A. Shulman, Esq. Maurice M. Simpkins Robert N. Smelkinson Theodore G. Venetoulis James J. Winn, Jr., Esq. Elizabeth M. Wright Fulton Financial Corporation | 15 16 | Fulton Financial Corporation 10 YEARS IN REVIEW (1997– 2006) 210 180 150 120 90 60 30 0 11 10 9 8 7 6 5 4 3 2 0 NET INCOME (in millions of dollars) 185.5 166.1 149.6 136.4 131.0 113.6 103.8 97.2 88.5 65.2 97 98 99 00 01 02 03 04 05 06 10.2 8.8 7.9 DEPOSITS (in billions of dollars) 6.8 6.2 6.0 4.9 4.6 4.5 3.6 97 98 99 00 01 02 03 04 05 06 16 14 12 10 8 6 4 2 0 1,600 1,200 800 400 0 TOTAL ASSETS (in billions of dollars) 14.9 12.4 11.2 9.8 8.4 7.8 6.6 6.1 5.8 4.5 97 98 99 00 01 02 03 04 05 06 SHAREHOLDERS’ EQUITY (in millions of dollars) 1,516 1,283 1,244 948 865 812 679 6 0 8 614 475 97 98 99 00 01 02 03 04 05 06 120 100 80 60 40 20 0 12 10 8 6 4 2 0 DIVIDENDS (in millions of dollars) 66.8 60.1 54.0 44.3 40.5 36.5 27.2 100.9 88.5 77.3 97 98 99 00 01 02 03 04 05 06 LOANS (in billions of dollars) 6.1 5.4 5.3 4.9 4.4 4.0 3.3 10.4 8.4 7.5 97 98 99 00 01 02 03 04 05 06 Fulton Financial Corporation | 17 18 | Fulton Financial Corporation Investor Information Stock Listing Investor Information and Documents Fulton Bank Bank Subsidiaries Common shares of Fulton Financial Corporation A copy of the Corporation’s Annual Report, are traded under the symbol “FULT” and are listed Form 10-K, 2007 proxy statement and other in the National Market System of NASDAQ. documents filed with the Securities and Exchange Lebanon Valley Farmers Bank Swineford National Bank Commission can be viewed on the Corporation’s Lafayette Ambassador Bank Dividend Calendar website at www.fult.com. In addition, copies Dividends on Fulton Financial Corporation’s of the Form 10-K and 2007 proxy statement common stock are customarily payable on or about may be obtained without charge to shareholders the 15th of January, April, July and October. by writing to: Dividend Reinvestment Plan and Direct Fulton Financial Corporation Deposit of Cash Dividends P.O. Box 4887 Fulton Financial Corporation offers its shareholders Lancaster, PA 17604-4887 Corporate Secretary the convenience of a Dividend Reinvestment and Stock Purchase Plan, and direct deposit of cash dividends. News, stock information, an events calendar, Corporate presentations and other information Somerset Valley Bank can be found on the Corporation’s website at Holders of stock may have their quarterly www.fult.com. dividends automatically reinvested in additional shares of the Corporation’s common stock by The Annual Meeting and Luncheon of utilizing the Dividend Reinvestment Plan. Shareholders of Fulton Financial Corporation Shareholders participating in the Plan may also make voluntary cash contributions not to exceed $5,000 per month. In addition, shareholders also have the option of having their cash dividends sent directly to their financial institution for deposit into their checking or savings account. will be held on Monday, May 7, 2007, at noon in the Great American Hall of the Hershey Lodge and Convention Center, West Chocolate Avenue and University Drive, Hershey, PA. Please note that any shareholder who would like to attend MUST HAVE A RESERVATION. To make a reservation, please select the appropriate options on your proxy card when Shareholders may receive information on either the you vote by mail, telephone or Internet. Dividend Reinvestment Plan and Stock Purchase Plan or direct deposit of cash dividends by writing to: Stock Transfer Department Fulton Financial Advisors, N.A. P.O. Box 3215 Lancaster, PA 17604-3215 or calling: (717) 291-2546 or 1-800-626-0255. Your reservation will help ensure that we have adequate seating for all shareholders who plan to join us that day. FNB Bank, N.A. Hagerstown Trust Delaware National Bank The Bank The Peoples Bank of Elkton Skylands Community Bank Resource Bank The Columbia Bank Residential lending offered through Fulton Mortgage Company and Resource Mortgage Financial Services Subsidiaries Fulton Financial Advisors, N.A. Deardon, Maguire, Weaver, and Barrett, LLC Fulton Insurance Services Group, Inc. Independent Public Accounting Firm KPMG, LLP 1601 Market Street Philadelphia, PA 19103 Fulton Financial Corporation | 19 Fulton Financial Corporation One Penn Square P.O. Box 4887 Lancaster, PA 17604 1.800.FULTON.4 www.fult.com 

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