Fulton Financial
Annual Report 2010

Plain-text annual report

Fulton Financial corporation 2 0 1 0 A n n u a l R e p o r t In 2010, Fulton Financial Corporation was recognized by Forbes as one of the 100 Most Trustworthy Companies in the nation. Of the 8,000 companies that were considered for the Top 100 designation, we were the only bank included in the mid-cap and large-cap lists. 0 1 0 2 t r o p e R l a u n n A n o i t a r o p r o C l a i c n a n i F n o t l u F NARR - PAGE 1 F u l t o n F i n a n c i a l C o r p o r a t i o n A n n u a l R e p o r t 2 0 1 0 Dear Shareholder: 2010 was a year of significant improvement in our financial performance. For the year ended December 31, 2010, net income available to common shareholders was $112.0 million or $0.59 per diluted share, which was up 90.3% over the $0.31 we reported in 2009. Also in 2010, we grew our mortgage banking income year-over-year, improved our net interest margin, grew core deposits, added business and consumer households, increased other income and reduced our operating expenses. We are pleased that we were able to strengthen our company’s performance despite ongoing economic challenges. Loan growth was sluggish due to the continued slow pace of economic recovery. Many customers remain in a “wait and see” mode, and are still reluctant to expand operations or take on new debt. In addition, since the national economy is not recovering quite as quickly as some experts had hoped, some of our customers continue to struggle to meet their obligations to us. Consequently, we expect elevated credit costs to continue to impact our performance in 2011. As you might expect, when I talk with our shareholders, I am frequently asked about the quarterly cash dividend. As I write this letter in early March, the board remains keenly aware that you would like to see your dividend increased. Over the past year, I have emphasized four things that needed to happen before we could consider an increase. First, we needed to pay off our TARP funds, and as you know, we have done this. Second, we needed to see our earnings improve, and we made good progress in 2010. Third, we need to have a clearer understanding about the increased capital levels that will be required by bank regulators. While we are still awaiting some additional clarity around this issue, our capital position has been and remains strong. Finally, we will need confidence in the sustainability of a meaningful economic recovery. Your board of directors has actively monitored these four areas and has recurring discussions about what level of dividend is appropriate, given where our company and our nation are in the economic recovery process. As shareholders ourselves, your directors and management R. Scott Smith, Jr. Chairman and Chief Executive Officer E. Philip Wenger President and Chief Operating Officer 208379_Fulton_Narr.indd 5 3/4/11 5:21 PM leBanon valley diviSion Barry E. Ansel, Chairman Donald H. Dreibelbis Randall I. Ebersole Robert J. Funk Robert P. Hoffman Robert J. Longo Albert B. Murry M. Randolph Tice Wendie DiMatteo Holsinger preMier diviSion Joseph R. Feilmeier, Chairman Barry R. Angely Anthony D. Cino Southern diviSion T.A. Grell, Jr., Chairman T. Richard Litton, Jr. Lloyd M. Poe Timothy J. Stiffler Elizabeth Addington Twohy Fulton Bank adviSory BoardS central Ronald L. Miller, C.P.A. Irel D. Buckwalter Wilbur G. Rohrer Paul W. Stauffer eaSt Galen Eby R. Douglas Good, Esq. Richard M. Hurst Aldus R. King Vernon R. Martin John D. Yoder lancaSter city Clarence E. Darcus Ron Ford Robert W. Jones Jessica H. May NARR - PAGE 2 share your desire to see the dividend increased. co-workers and customers, thus enabling our team to Yet, we must balance this decision with our responsibility actively promote our company as a great place to work to preserve and enhance shareholder value. and as an outstanding financial partner and advisor. Currently, we are more optimistic about the prospects for Our company experienced a number of milestones in 2010: economic improvement than we have been in some time. The recovery stalled last summer, and that slowdown affected us, our customers, and other companies as well. Since that time, as the economy has gradually improved, so has our company’s performance. While we are pleased with the trend of our results in 2010, we also realize "We have enhanced our communications with employees and have worked to provide them with the tools to better serve their co-workers and customers, thus enabling our team to actively promote our company as a great place to work and as an outstanding financial partner and advisor." In April, Fulton Financial was recognized by Forbes as one of the 100 Most Trustworthy Companies in the nation. Of the 8,000 companies considered for the Top 100 list, we were the only bank included on the mid-cap and large- cap lists. Frankly, this objective, independent recognition from Forbes could not that the pace of our improving performance hinges on have come at a better time. The banking industry was economic growth and on the corresponding rate of growth working to recover from the negative perception caused in our earning assets. by the financial crisis. Forbes wanted to identify the most trustworthy businesses that trade on American exchanges Since retaining existing customers and attracting new – companies that have consistently demonstrated ones is the foundation for further strengthening our transparent and conservative accounting practices and performance, we have continued to create a superior solid corporate governance and management. We were experience for our customers through activities focused pleased to be selected for this honor, and we believe it on our company-wide customer promise to “Care, positively differentiated our company at a critical time. Listen, Understand and Deliver.” We have enhanced The recognition also enabled us to boost the favorable our communications with employees and have worked attention focused on our banks by investors and by to provide them with the tools to better serve their customers and prospects in the markets we serve. 0 1 0 2 t t r r o o p p e e R R l l a a u u n n n n A A n n o o i i t t a a r r o o p p r r o o C C l l a a i i c c n n a a n n i i F F n n o o t t l l u u F F 208379_Fulton_Narr.indd 6 3/4/11 5:21 PM NARR - PAGE 3 F u l t o n F i n a n c i a l C o r p o r a t i o n A n n u a l R e p o r t 2 0 1 0 In May, we were pleased by the enthusiastic response from the investment community to our $230 million common stock offering. In July, as I mentioned earlier, we used the proceeds from this offering to redeem the $376.5 million in preferred stock that we had issued to the U.S. Department of the Treasury in connection with the TARP/Capital Purchase Program. Then in September, we purchased the associated warrant from the Treasury, which enabled us to satisfy all of our obligations under this program. In October, we marked the 25th anniversary of our company’s listing on the NASDAQ Stock Market. Your board of directors participated in NASDAQ's Opening Bell Ceremony and the event generated some very positive publicity for our company. As you know, from time to time we have merged our subsidiary banks where it made sense to do so. In December, we merged Delaware National Bank into Fulton Bank. Fulton Bank and Delaware National were both active in the southeastern Pennsylvania and northern Delaware markets. Because of Fulton Bank’s asset size, that bank name carried greater brand recognition throughout the area. By merging these two contiguous banks, we continue to leverage the name and product capabilities of the larger bank while maintaining the personal, professional banking style that our Delaware team has consistently provided over the years. In January of 2011, a new director joined the Fulton Financial board: Lieutenant General Joe N. Ballard, US Army (Ret.), of Davidsonville, MD. Joe has served on the board of our subsidiary bank, The Columbia Bank, since 2006. His accomplishments 200 180 160 140 120 100 80 60 40 20 0 -20 15 12 9 6 3 0 13 12 11 10 9 8 7 6 5 4 3 2 1 0 3 . 8 2 1 9 . 3 7 6 . 5 - 1 . 2 1 4 . 2 1 6 . 0 1 01 02 03 04 05 06 07 08 09 10 0 . 2 1 0 . 2 1 9 . 1 1 01 02 03 04 05 06 07 08 09 10 01 02 03 04 05 06 07 08 09 10 Charles J. Nugent Senior Executive Vice President/ Chief Financial Officer James E. Shreiner Senior Executive Vice President/ Administrative Services Craig H. Hill Senior Executive Vice President/ Human Resources 208379_Fulton_Narr.indd 9 3/4/11 5:21 PM independently and in conjunction with national financial services trade organizations to voice our concerns to our elected officials in Washington, D.C. with the hope of minimizing the Act’s potential negative impact on customers and your company. Overall, we believe that we are responding effectively to this new regulatory environment. We also view its implementation as an opportunity, as we believe we are better positioned to comply with the new rules than many of our competitors. As we move into the post-recession era, and as consumer and business confidence increases, we remain focused on growing your company’s earnings. I am confident in our ability to do so. Our investments in technology, brand awareness, marketing, employee training, customer and new prospect Even though the acceptance and utilization of electronic banking services is rapidly increasing, traditional branches remain important to many of our customers as well as an integral part of our organic growth strategy. In recent years, we have added new locations and, as our earnings improve, we plan to increase our pace of new branch NARR - PAGE 4 "As we move into the post-recession era, and as consumer and business confidence increases, we remain focused on growing your company’s earnings. I am optimistic about our ability to do so." as a decorated war veteran and as the CEO of The In addition to Don’s business expertise and knowledge Ravens Group, coupled with his expertise in strategy, of our industry, we will miss his warmth and enthusiasm management and business practices, will be great assets which have added so much to our company. We wish him to our company. all the best in his future endeavors. In April, Donald M. Bowman, Jr. will retire from our You are no doubt hearing a great deal in the news about board of directors after 30 years of service to Hagerstown the Dodd-Frank financial reform legislation that was outreach efforts and in providing a superior experience to our Trust, The Columbia Bank and Fulton Financial signed into law in July 2010. The nearly 1,000 pages of customers are all producing market share growth. Corporation. Don is a partner in the Bowman Group, this Act are expected to produce at least 250-300 new which is active in trucking and transportation, commercial regulations with which banks will need to comply, some real estate development, and in the operation of hotels in 2011 and others in the future. While we support and restaurants. As a result of decades of success in a the intent of the Act, which was to curb the actions wide range of business ventures, Don has provided our that contributed to the national financial crisis, we are company with vast experience in operating a business very concerned that some of its provisions will have successfully in upward and downward economic cycles. an adverse impact on customers. We are working both 0 1 0 2 t r o p e R l a u n n A n o i t a r o p r o C l a i c n a n i F n o t l u F • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 25 20 15 10 5 0 % 3 3 . 9 % 6 9 . 5 % 9 3 . 9 0 6 0 $ . 0.75 0.50 0.25 0.00 2 1 . 0 $ 2 1 . 0 $ 1.5 1.0 0.5 0.0 ) 3 0 . 0 $ ( 9 5 . 0 $ 1 3 . 0 $ 2008 2009 2010 Return on Average Common Equity (tangible)* 2008 2009 2010 2008 2009 2010 Cash Dividends Per Common Share Net Income (Loss) Per Common Share (diluted) *Net income (loss) available to common shareholders, adjusted for intangible amortization (net of tax) and goodwill impairment charges, divided by average common shareholders’ equity, net of goodwill and intangible assets. Financial HigHligHts As of or for the yeAr ended december 31 (dollars in thousands, except per-share data) Percent change Balance sHeet Data 2010 2009 2008 2010/2009 2009/2008 total assets deposits Loans, net of unearned income common shareholders’ equity per common sHare Data net income (loss) (diluted) common stock cash dividends shareholders’ equity (tangible) n/m - not meaningful $16,275,000 $16,636,000 $16,185,000 11,933,000 11,972,000 12,043,000 12,389,000 12,098,000 10,552,000 1,880,000 1,566,000 1,491,000 $0.59 0.12 6.69 $0.31 0.12 5.75 $(0.03) 0.60 5.33 (2.2%) (0.3%) 2.4% 20.1% 90.3% - 16.3% 2.8% (0.6%) 14.7% 5.0% n/m (80.0%) 7.9% 208379_Fulton_Narr.indd 10 3/4/11 5:21 PM NARR - PAGE 5 independently and in conjunction with national financial deployment in attractive local markets. Of course, potential services trade organizations to voice our concerns to our acquisitions can help us achieve our growth goals as well. elected officials in Washington, D.C. with the hope of We will use our past merger experience to carefully evaluate minimizing the Act’s potential negative impact on customers those opportunities. and your company. Overall, we believe that we are responding effectively to this new regulatory environment. Our future growth and success will be led by our talented We also view its implementation as an opportunity, as we employees. It is their dedication and hard work that has kept believe we are better positioned to comply with the new rules this company on a sound financial footing throughout one F u l t o n F i n a n c i a l C o r p o r a t i o n A n n u a l R e p o r t In addition to Don’s business expertise and knowledge of our industry, we will miss his warmth and enthusiasm which have added so much to our company. We wish him than many of our competitors. of the most challenging periods in its history. And, it will be that continued level of resolve and commitment in the years 2 0 1 0 As we move into the post-recession era, and as consumer and ahead that will enable our shareholders, customers, employees business confidence increases, we remain focused on growing and communities to face the future boldly and confidently. all the best in his future endeavors. your company’s earnings. I am confident in our ability to do so. Our investments in technology, brand awareness, Thank you for your continued support. You are no doubt hearing a great deal in the news about marketing, employee training, customer and new prospect the Dodd-Frank financial reform legislation that was outreach efforts and in providing a superior experience to our Sincerely, signed into law in July 2010. The nearly 1,000 pages of customers are all producing market share growth. regulations with which banks will need to comply, some Even though the acceptance and utilization of electronic banking services is rapidly increasing, traditional branches R. Scott Smith, Jr. remain important to many of our customers as well as an Chairman and Chief Executive Officer integral part of our organic growth strategy. In recent years, we have added new locations and, as our earnings improve, we plan to increase our pace of new branch this Act are expected to produce at least 250-300 new in 2011 and others in the future. While we support the intent of the Act, which was to curb the actions that contributed to the national financial crisis, we are very concerned that some of its provisions will have an adverse impact on customers. We are working both • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1.5 1.0 0.5 0.0 9 5 . 0 $ 2008 2009 2010 Net Income (Loss) Per Common Share (diluted) Financial HigHligHts As of or for the yeAr ended december 31 (dollars in thousands, except per-share data) Percent change Balance sHeet Data 2010 2009 2008 2010/2009 2009/2008 total assets Loans, net of unearned income deposits common shareholders’ equity per common sHare Data net income (loss) (diluted) common stock cash dividends shareholders’ equity (tangible) n/m - not meaningful $16,275,000 $16,636,000 $16,185,000 11,933,000 11,972,000 12,043,000 12,389,000 12,098,000 10,552,000 1,880,000 1,566,000 1,491,000 $0.59 0.12 6.69 $0.31 0.12 5.75 $(0.03) 0.60 5.33 (2.2%) (0.3%) 2.4% 20.1% 90.3% - 16.3% 2.8% (0.6%) 14.7% 5.0% n/m (80.0%) 7.9% 208379_Fulton_Narr_R1.indd 11 3/8/11 7:34 PM *Net income (loss) available to common shareholders, adjusted for intangible amortization (net of tax) and goodwill impairment charges, divided by average common shareholders’ equity, net of goodwill and intangible assets. NARR - PAGE 6 10 YEARS IN REVIEW (2001-2010) 20 18 16 14 12 10 8 6 4 2 0 100 80 60 40 20 0 Total Assets (in billions of dollars) Common Stock Cash Dividends (in millions of dollars) 2 . 6 1 6 . 6 1 3 . 6 1 9 . 5 1 9 . 4 1 4 . 2 2 1 . 1 1 8 . 4 9 . 8 8 . 7 01 02 03 04 05 06 07 08 09 10 Net Income (loss) (in millions of dollars) 5 . 3 0 1 6 . 4 0 1 9 . 0 0 1 5 . 8 8 3 . 7 7 8 . 6 1 6 . 0 0 6 . 4 5 2 . 3 2 1 . 1 2 Deposits (in billions of dollars) 01 02 03 04 05 06 07 08 09 10 0 1 0 2 t t r r o o p p e e R R l l a a u u n n n n A A n n o o i i t t a a r r o o p p r r o o C C l l a a i i c c n n a a n n i i F F n n o o t t l l u u F F 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 0 Common Shareholders’ Equity (in millions of dollars) 0 8 8 1 , 5 7 5 1 , 1 9 4 1 , 6 1 5 1 , 6 6 5 1 , 3 8 2 1 , 4 4 2 , 1 8 4 9 5 6 8 2 1 8 Loans (in billions of dollars) Charles J. Nugent Senior Executive Vice President/ Chief Financial Officer James E. Shreiner Senior Executive Vice President/ Administrative Services 5 . 5 8 1 7 . 2 5 1 1 . 6 6 6 1 . 9 4 4 1 . 6 3 1 0 . 1 3 1 6 . 3 1 1 3 . 8 2 1 9 . 3 7 6 . 5 - 01 02 03 04 05 06 07 08 09 10 1 . 2 1 4 . 2 1 2 . 0 1 6 . 0 1 1 . 0 1 8 . 9 8 . 7 8 . 6 2 . 6 0 . 6 01 02 03 04 05 06 07 08 09 10 . 0 2 1 . 0 2 1 . 9 1 1 . 2 1 1 . 4 0 1 4 8 . 5 7 . 1 6 . 4 5 . 3 . 5 200 180 160 140 120 100 80 60 40 20 0 -20 15 12 9 6 3 0 13 12 11 10 9 8 7 6 5 4 3 2 1 0 01 02 03 04 05 06 07 08 09 10 01 02 03 04 05 06 07 08 09 10 208379_Fulton_Narr.indd 8 3/4/11 5:21 PM co-workers and customers, thus enabling our team to actively promote our company as a great place to work and as an outstanding financial partner and advisor. Our company experienced a number of milestones in 2010: In April, Fulton Financial was recognized by Forbes as one of the 100 Most Trustworthy Companies in the nation. Of the 8,000 companies considered for the Top 100 list, we were the only bank included on the mid-cap and large- cap lists. Frankly, this objective, independent recognition from Forbes could not have come at a better time. The banking industry was working to recover from the negative perception caused by the financial crisis. Forbes wanted to identify the most trustworthy businesses that trade on American exchanges – companies that have consistently demonstrated transparent and conservative accounting practices and solid corporate governance and management. We were pleased to be selected for this honor, and we believe it positively differentiated our company at a critical time. The recognition also enabled us to boost the favorable attention focused on our banks by investors and by customers and prospects in the markets we serve. LAST LEAF FRONT F u l t o n F i n a n c i a l C o r p o r a t i o n A n n u a l R e p o r t 2 0 1 0 inveStor inForMation and docuMentS A copy of the Corporation’s Annual Report, Form 10-K, Proxy Statement and other documents filed with the Securities and Exchange Commision can be viewed on the Corporation’s website at www.fult.com. In addition, copies of the Form 10-K and Proxy Statement may be obtained without charge to shareholders by writing to: Corporate Secretary Fulton Financial Corporation P.O. Box 4887 Lancaster, PA 17604-4887 News, stock information, an events calendar, Corporate presentations and other information can be found on the Corporation’s website at www.fult.com. The Annual Meeting of Shareholders of Fulton Financial Corporation will be held on Thursday, April 28, 2011 at 10:00 a.m. in the Commonwealth Ballroom of the Lancaster Marriott at Penn Square in downtown Lancaster, PA. To make a reservation, please return the Annual Meeting Response Card you received with your proxy statement. Your reservation will help ensure that we have adequate seating for all shareholders who plan to join us that day. INVESTOR INfORMATION inveStor inForMation Stock liSting Common shares of Fulton Financial Corporation are traded under the symbol “FULT” and are listed in the NASDAQ Global Select Market. caSh dividendS The Fulton Financial Corporation Board of Directors decides whether to declare a quarterly cash dividend in the third month of each quarter (i.e., March, June, September and December). dividend reinveStMent plan and direct depoSit oF caSh dividendS Fulton Financial Corporation offers its shareholders the convenience of a Dividend Reinvestment and Stock Purchase Plan and direct deposit of cash dividends. Holders of stock may have their quarterly dividends automatically reinvested in additional shares of the Corporation’s common stock by utilizing the Dividend Reinvestment Plan. Shareholders participating in the Plan may also make voluntary cash contributions not to exceed $5,000 per month. In addition, shareholders have the option of having their cash dividends sent directly to their financial institution for deposit into their checking or savings account. Shareholders may receive information on either the Dividend Reinvestment Plan and Stock Purchase Plan, including a plan prospectus, or direct deposit of cash dividends by writing to: Stock Transfer Department Fulton Financial Advisors P.O. Box 3215 Lancaster, PA 17604-3215 or by calling: 717-291-2546 or toll-free: 1-800-626-0255. 208379_Fulton_Narr.indd 7 3/4/11 5:21 PM LAST LEAF BACK SENIOR MANAGEMENT, DIRECTORS & ADVISORY BOARD MEMBERS Fulton Financial corporation Board oF directorS Jeffrey G. Albertson, Esq. Joe N. Ballard, LTG, US Army (Ret.) John M. Bond, Jr. Donald M. Bowman, Jr. Fulton Financial corporation Senior ManageMent R. Scott Smith, Jr., Chairman and Chief Executive Officer E. Philip Wenger, President and Chief Operating Officer Charles J. Nugent, Senior Executive Vice President/ Chief Financial Officer James E. Shreiner, Senior Executive Vice President/ Administrative Services Craig H. Hill Senior Executive Vice President/ Human Resources Dana A. Chryst Craig A. Dally Patrick J. Freer Rufus A. Fulton, Jr. George W. Hodges Willem Kooyker Donald W. Lesher, Jr. John O. Shirk, Esq. R. Scott Smith, Jr. Gary A. Stewart E. Philip Wenger SuBSidiary Bank BoardS oF directorS Fulton Bank Richard J. Ashby, Jr. Larry D. Bashore Dana A. Chryst Carlos E. Graupera James M. Herr Curtis J. Myers George A. Parmer A. Richard Pugh Craig A. Roda John O. Shirk, Esq. Ivy E. Silver Fulton Bank diviSional BoardS Brandywine diviSion Kenneth M. Goddu, Chairman Robert F. Adams, Esq. Wilmer L. Hostetter Dallas Krapf James D. McLeod, Jr. Michael J. O’Rourke leBanon valley diviSion Barry E. Ansel, Chairman Donald H. Dreibelbis Randall I. Ebersole Robert J. Funk Robert P. Hoffman Wendie DiMatteo Holsinger Robert J. Longo Albert B. Murry M. Randolph Tice preMier diviSion Joseph R. Feilmeier, Chairman Barry R. Angely Anthony D. Cino Southern diviSion T.A. Grell, Jr., Chairman T. Richard Litton, Jr. Lloyd M. Poe Timothy J. Stiffler Elizabeth Addington Twohy Fulton Bank adviSory BoardS central Ronald L. Miller, C.P.A. Irel D. Buckwalter Wilbur G. Rohrer Paul W. Stauffer eaSt Galen Eby R. Douglas Good, Esq. Richard M. Hurst Aldus R. King Vernon R. Martin John D. Yoder lancaSter city Clarence E. Darcus Ron Ford Robert W. Jones Jessica H. May capital diviSion Robert S. Jones, Chairman James C. Byerly Samuel T. Cooper, III, Esq. Thomas S. Davis, M.D. Charles J.DeHart, III, Esq. Steven S. Etter Dolores Liptak Barry E. Musser, C.P.A. Beth A. Peiffer Steven C. Wilds delaware national diviSion P. Randolph Taylor, Chairman Dale R. Dukes Jeffrey M. Fried Amy A. Higgins Greg N. Johnson Terry A. Megee Ronald T. Moore Ralph W. Simpers David T. Wilgus droverS diviSion Joseph E. Rilatt, Chairman Vernon L. Bracey Robert S. Freed Jevon L. Holland Gregory V. Saubel William S. Shipley, III Gary A. Stewart, Jr. Delaine A. Toerper Christine R. Wardrop Constance L. Wolf great valley diviSion Jeffrey R. Rush, Chairman Marcelino Colon Michael D. Fromm Kathryn G. Goodman Daniel M. Goodyear William G. Koch, Sr., C.P.A. Chris G. Kraras 0 1 0 2 t t r r o o p p e e R R l l a a u u n n n n A A n n o o i i t t a a r r o o p p r r o o C C i i l l a a i i c c n n a a n n F F n n o o t t l l u u F F 208379_Fulton_Narr.indd 4 3/4/11 5:21 PM Chairman and Chief Executive Officer R. Scott Smith, Jr. President and Chief Operating Officer E. Philip Wenger F u l t o n F i n a n c i a l C o r p o r a t i o n A n n u a l R e p o r t 2 0 1 0 the ColumBia Bank Joe N. Ballard, LTG, US Army (Ret.) John M. Bond, Jr. Robert R. Bowie, Jr. Donald M. Bowman, Jr. Garnett Y. Clark, Jr. Donald R. Harsh, Jr. James R. Moxley, III John A. Scaldara, Jr. Gregory Snook David K. Williams, Jr. Elizabeth M. Wright the ColumBia Bank diviSional BoardS hagerStown truSt diviSion Donald M. Bowman, Jr. Paul N. Crampton, Jr. Louis J. Giustini Donald R. Harsh, Jr. Doris E. Lehman Paul C. Mellott, Jr. John A. Scaldara, Jr. Gregory Snook Michael S. Zampelli PeoPleS Bank of elkton diviSion Harry C. Brown Donald S. Hicks Robert O. Palsgrove John A. Scaldara, Jr. Nancy R. Simpers David K. Williams, Jr. north Gerald L. Harding Dean A. Hoover Louis G. Hurst Kent M. Martin Michael L.Weinhold,C.P.A. northweSt P. Larry Groff, Sr. Peter J. Hondru Kenneth L. Kreider Peter B. McCracken Robert W. Obetz, Jr. David W. Sweigart, III J. David Young, Jr., Esq. Dennis M. Zubler South Frank M. Abel, V.M.D. John E. Chase James W. Hostetter, Sr., C.P.A. Dwight E. Wagner State College Allan Darr Elizabeth A. Dupuis Todd A. Erdley Jeffrey M. Krauss John A. Rodgers weSt Kerry B. Hagel William Haynes Tony Legenstine agriCultural adviSory Board Harry H. Bachman I. Hershey Bare Dennis L. Grumbine William Hostetter Amos M. Hursh Aldus R. King Jay H. Kopp Peter B. McCracken Swineford national Bank Arthur F. Bowen Thomas C. Clark, Esq. Michael N. O’Keefe William D. Robinson Michael R. Wimer Gene D. Zartman lafayette amBaSSador Bank Gary A. Clewell Craig A. Dally L. Anderson Daub Rocco A. Del Vecchio Sara (Sally) Jane Gammon Thomas J. Maloney, Esq. Alan B. McFall, Esq. Jamie P. Musselman Gerald A. Nau Edith Ritter John J. Simon fnB Bank, n.a. Robert O. Booth Bryan L. Holmes James D. Hawkins Gerald A. Nau Wendy S. Tripoli Joanne E. Wade the Bank Joseph F. Adams, C.P.A. Jeffrey G. Albertson, Esq. Dennis N. DeSimone Lawrence M. DiVietro, Jr. Sandra J. Gubbine James R. Johnson, Jr. Scott H. Kintzing Warner A. Knobe Ross Levitsky, Esq. Angela M. Snyder Daniel G. Timms, D.D.S. Paul J. Tully the Bank diviSional Board firSt waShington diviSion James R. Johnson, Jr. Timothy J. Losch Stephen R. Miller Leonard Smith SkylandS Community Bank Norman S. Baron Blanquita Bonifacio John K. Kitchen Joel A. Kobert Stephen R. Miller Raymond Nisivoccia, C.P.A. Denis H. O’Rourke Paul Pinizzotto Anthony J. Santye, Jr. Leslie E. Smith, Jr. Mark F. Strauss, Esq. Norman Worth Banking SuBSidiarieS: Fulton Bank, N.A. Swineford National Bank Lafayette Ambassador Bank FNB Bank, N.A. The Bank Skylands Community Bank The Columbia Bank Residential mortgage lending offered through: Fulton Mortgage Company Investment management and planning services offered through: Fulton Financial Advisors & Clermont Wealth Strategies 

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