Fulton Financial Annual Report 2006

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FY2006 Annual Report · Fulton Financial

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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

DIVIDENDS PER SHARE

0.600

$ 0.493

$ 0.540

$ 0.581

0.300

RETURN ON AVERAGE EQUITY*
(tangible)

25.0

23.87 %

20.0

18.58 %

20.28 %

15.0

*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

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

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

03 04

1,600

1,200

800

400

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

SHAREHOLDERS’ EQUITY
(in millions of dollars)

1,516

1,283

1,244

948

865

812

679

6 0 8

614

475

97 98

120

100

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

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

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