Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Statement
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, retur
Slide 3: Presentation Outline
Presentation Outline Corporate profile Relationship banking strategy Strategic initiatives Acquisition strategy Capital Loan summary Customer and employee satisfaction Financial performance Presentation Outline
Slide 4: Fulton Financial Profile
Fulton Financial Profile Regional financial holding company (formed in 1982) 15 community banks and 3 financial services affiliates in 5 states 256 community banking offices Asset size: $14.6 billion Market capitalization: $2.8 billion Fulton Financial Profile
Slide 5: Where are we located?
Where are we located? Where are we located?
Slide 6: FFC Affiliates in Affluent Markets
FFC Affiliates in Affluent Markets* County National Ranking Ranking in State Median HH Ranking FFC Affiliate Fairfax, VA #1 #1 $100,803 Resource Bank Hunterdon, NJ #5 #1 91,622 Skylands Bank Morris, NJ #9 #2 89,020 Skylands Bank Somerset, NJ #10 #3 88,665 Somerset Valley Howard, MD #11 #1 86,586 Col
Slide 7: Serving PA's Strongest Growth Markets
Serving PA’s Strongest Growth Markets* County Rank Projected Population Change 2005-2010 Median HH Income Projected HH Income Change 2005-2010 Chester 1 8.17% $81,043 27.48% Montgomery 2 2.96 75,725 24.30 Bucks 3 3.87 73,522 21.65 Delaware 4 3.06 62,297 23.15 Cumberland 5 4.10 56,532 19.27 Northampt
Slide 8: Possible Future Expansion
Possible Future Expansion Possible Future Expansion
Slide 9: What have we accomplished?
Proven business model Consistent performance 24 consecutive years of record earnings 32 consecutive years of dividend increases 10.2% compounded annual growth rate in dividends per share 8.6% compounded annual growth rate in earnings per share (last 5 years = 5.5%) 25 bank acquisitions What have we
Slide 10: 10-year dividend history
10-year dividend history 0.2104 0.2312 0.2806 0.3089 0.3845 0.4253 0.4750 0.5179 0.2544 0.3444 0.5670 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 10-year dividend history
Slide 11: Dow Jones U.S. Select Dividend Index
Dow Jones U.S. Select Dividend Index FFC added on June 1, 2006 Reflected Dividend Performance of the 100 leading U.S. companies Criteria: Non-negative five-year dividend-per-share growth rate Five-year average dividend to earnings- per-share ratio of less than or equal to 60% Three-months average da
Slide 12: Creating Value
Creating Value For our Shareholders Employees Customers Communities With People Place Promotion Product Price Creating Value
Slide 13: Our Relationship Strategy
Our Relationship Strategy Long-term successful employees Long-term successful customers Long-term successful shareholders Our Relationship Strategy
Slide 14: Stock Performance (1982 - 2005)
Stock Performance (1982 - 2005) WITHOUT dividend reinvestment: compounded annual rate of return WITH dividend reinvestment: compounded annual rate of return Stock Performance (1982 - 2005) 14% 18%
Slide 15: Corporate Strategic Priorities
Corporate Strategic Priorities Producing above average long term shareholder returns Driving EPS growth organically and acquisitively Creating financial success together with our customers Creating career success together with our employees Enriching the communities we serve Managing risk comprehens
Slide 16: Most Recent Acquisition
Most Recent Acquisition Prince George’s, Baltimore Counties and Baltimore City Most Recent Acquisition The Columbia Bank • Acquired on 2/1/06 Assets of $1.3 billion • Headquartered in Columbia, MD • 25 offices in Howard, Frederick, Montgomery,
Slide 17: Columbia Bank Overview
Columbia Bank Overview Consistently one of the fastest growing and most profitable de novo institutions since its founding in 1987 Focused on building a premier community banking franchise in the Baltimore / Washington corridor Prior to acquisition 4 th largest independent commercial banking company
Slide 18: Columbia Bank Footprint
Columbia Bank Footprint MARYLAND Branch office Headquarters office Washington D.C Full Service Retirement Branches Branches Baltimore County/City 3 3 Howard County 9 2 Montgomery County 3 -- Prince George’s County 5 -- Total 20 5 Baltimore Howard Montgomery Prince George’s Harford Carroll Frederick
Slide 19: Columbia Bank Demographics
Columbia Bank Demographics Vibrant and diverse Baltimore / Washington corridor economy providing excellent growth opportunities Affluent, well-educated retail customer base Concentration of small and mid-sized businesses Large, stable government employment base Attractive location for “new economy”
Slide 20: What do we look for?
Strong performance Asset quality High growth areas Dynamic market demographics Talented and dedicated staff Compatible corporate culture What do we look for? What do we look for?
Slide 21: Acquisitions In New Markets
Acquisitions In New Markets What changes? Loan review Investments Asset/liability management Compliance Audit / Accounting What stays the same? Bank name Board of Directors Management team Employees Community involvement and support Acquisitions In New Markets
Slide 22: Our Business Model
Our Business Model Affiliate knows local markets best Maintains established local brand value Proprietary retail expertise and strategy Prestigious jobs in local markets Pricing autonomy Performance goals Affiliate plan execution Our Business Model
Slide 23: Benefits To New Affiliates
Increased income diversification due to introduction of new products and services Continued local autonomy and decision-making Increased lending capacity Additional capital Proven merger/conversion expertise Reduced expenses Benefits To New Affiliates Benefits To New Affiliates
Slide 24: Affiliate New Product Availability
Investment management Brokerage services Insurance (whole life, term life, long-term care through Advisors) Cash management Health Savings Accounts Debit/credit cards Residential mortgages Specialized lending (leasing and indirect) International services Correspondent banking On-line banking Affilia
Slide 25: Other Income As a Percent of Total Income
Other Income As a Percent of Total Income 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 96 97 98 99 00 01 02 03 04 05 6/06 Other Income As a Percent of Total Income 22.0%
Slide 26: Capital (6/30/06)
Total Capital (GAAP): $1.4 billion Total Regulatory Capital: $1.2 billion Ratios: Total Risk-Based Capital 11.55% Tier 1 Risk-Based Capital 9.63% Leverage Capital 7.67% Capital (6/30/06) • • •
Slide 27: Loan Diversification (6/30/06)
Loan Diversification (6/30/06) 29% 30% 21% 14% 6% Commercial Commercial Mortgage Res Mtg and Home Equity Construction Consumer and other Loan Diversification (6/30/06)
Slide 28: Summary of Larger Loans
38 relationships with commitments to lend of $20 million or more Maximum individual commitment of $33 million Average commercial loan size is $215,000 Loans and corresponding relationships are within Fulton’s geographic market area Summary of Larger Loans Summary of Larger Loans
Slide 29: Commercial Loan Concentration By Industry
Commercial Loan Concentration By Industry (as of 6/30/06) % Construction 26.1 RE - Investor - Owned 21.2 Services 15.3 Manufacturing 6.9 Retail 6.2 Health Care 6.1 Agriculture 5.1 Wholesale 4.7 Other 2.9 Financial Services 2.1 Arts and Entertainment 1.9 Transportation 1.5 100.0 Commercial Loan Conce
Slide 30: Credit Ratings
Short-term rating P-1 Long-term rating Issuer A-2 Lead Bank Deposits A-1 Outlook Stable Credit Ratings Moody’s Investor Services Short-term rating F-1 Long-term rating A Outlook Stable Fitch Ratings Standard & Poors Credit rating BBB+ Outlook Stable Dominion Bond Rating Service Credit rating A Outlo
Slide 31: Employee Retention
Employee Retention 0 10 20 30 40 50 60 70 80 90 100 2001 2002 2003 2004 2005 Exempt Non-exempt Overall Employee Retention
Slide 32: Employee Opinion Survey
Employee Opinion Survey Quality and Improvement Commitment Immediate Supervisor Job Satisfaction Service Climate Company Image Training and Development Organizational Leadership Work Process Communication Pay and Benefits Teamwork and Collaboration (Survey administered by BAI Survey Services) Employ
Slide 33: Employee Opinion Survey
Employee Opinion Survey Conducted every three years Over 3,000 employees surveyed (85%) Completed in June 2005 FFC responses exceed BAI national averages in 10 of the 12 categories Employee Opinion Survey
Slide 34: Customer Satisfaction (Fall 2005)
Customer Satisfaction (Fall 2005) * Retail: 90% extremely/very satisfied Commercial: 90% extremely/very satisfied Fulton Financial Advisors: 80+% very satisfied/satisfied Fulton Mortgage Company: 99% of expectations met/exceeded 98% would recommend FMC to others * Compared to national average of 62%
Slide 35: Quarter ended June 30, 2006
Quarter ended June 30, 2006 $46.7 million Net income (12.3% increase over 2005) $ 0.27 Net income per share (8.0% increase over 2005) $ 0.1475 Cash dividends per share (6.8% increase over 2005) 1.32% Return on assets 13.01% Return on equity 24.87% Return on tangible equity Quarter ended June 30, 200
Slide 36: Peer Group
South Financial Group, Inc. (The) First Midwest Bancorp, Inc. Susquehanna Bancshares, Inc. United Bankshares, Inc. Sky Financial Group Inc. Mercantile Bankshares Corporation Citizens Banking Corporation Valley National Bancorp Wilmington Trust Corporation BancorpSouth, Inc. UMB Financial Corporation
Slide 37: Income Statement Summary (6/30/06)
Income Statement Summary (6/30/06) 2006 2005 $ % Net Interest Income 237,890 $ 198,170 $ 39,720 $ 20% Loan Loss Provision (1,880) (1,530) (350) 23% Other Income 68,540 69,440 (900) -1% Securities Gains 4,070 4,730 (660) -14% Other Expenses (178,800) (152,010) (26,790) 18% Income Taxes (39,240) (35,7
Slide 38: Average Loan Growth (6/30/06)
Average Loan Growth (6/30/06) 2006 2005 $ % Commercial 2,700 $ 2,310 $ 390 $ 17% Comm'l Mort 2,990 2,490 500 20% Resid Mort/HE 1,990 1,670 320 19% Construction 1,270 670 600 90% Cons./Other 590 540 50 9% Total Loans 9,540 $ 7,680 $ 1,860 24% (dollars in millions) Average Loan Growth (6/30/06)
Slide 39: Organic Loan Growth (6/30/06)
Organic Loan Growth (6/30/06) 2006 2005 $ % Commercial 2,400 $ 2,310 $ 90 $ 4% Comm'l Mort 2,740 2,490 250 10% Resid Mort/HE 1,750 1,670 80 5% Construction 880 670 210 31% Cons./Other 580 540 40 7% Total Loans 8,350 $ 7,680 $ 670 9% (dollars in millions) Organic Loan Growth (6/30/06)
Slide 40: Net Interest Margin (6/30/06)
Net Interest Margin (6/30/06) 3.50 3.75 4.00 4.25 4.50 4.75 FFC Peer Top 50 Net Interest Margin (6/30/06) 3.81 3.62 3.89
Slide 41: Asset/Liability Management
Asset/Liability Management 6/30/06 Interest rate “shocks” +300 bp + $ 10.7 million + 2.2% +200 bp + $ 7.1 million + 1.5% +100 bp + $ 3.6 million + 0.7% - 100 bp - $ 10.0 million - 2.1% - 200 bp - $ 22.4 million - 4.6% - 300 bp - $ 38.7 million - 8.0% Asset/Liability Management 6/30/06 Rate Change NI
Slide 42: Yield Curve - Rate Shocks
Yield Curve - Rate Shocks Treasury Yields at Different Rate Shocks Quarter Ending 6/30/06 0.00 2.00 4.00 6.00 8.00 10.00 1 2 3 4 5 6 7 8 Year -300 -200 -100 Flat 100 200 300 Yield Curve - Rate Shocks
Slide 43: Loan Mix (6/30/06)
Loan Mix (6/30/06) Fixed 33% Floating 40% Adjustable 27% Loan Mix (6/30/06)
Slide 44: Investment Portfolio (6/30/2006)
Investment Portfolio (6/30/2006) ENDING MODIFIED BALANCE DURATION CREDIT RATING (000's) Mortgage-backed securities 1,399.1 $ 2.54 AAA Municipal bonds 452.4 3.80 AAA Collateralized mortgage obligations 398.5 2.32 AAA U.S. Treasuries and agencies 348.5 2.55 AAA Corporate & trust preferred securities 6
Slide 45: Bank Stock Gains
Bank Stock Gains (percent contribution to EPS ) 0 1 2 3 4 5 6 7 8 9 Bank Stock Gains (percent contribution to EPS )
Slide 46: Funding Sources (6/30/06)
Funding Sources (6/30/06) 73% 16% 10% 1% Deposits and Customer Repurchase Agreements Borrowings GAAP Capital Other Liabilities Funding Sources (6/30/06)
Slide 47: Average Deposit Growth (6/30/06)
Average Deposit Growth (6/30/06) 2006 2005 $ % Nonint DDA 1,810 $ 1,540 $ 270 $ 18% Int DDA 1,670 1,490 180 12% Savings/MMDA 2,330 1,950 380 19% CD's 3,910 3,000 910 30% Cash Mgt 460 390 70 18% Total Deposits 10,180 $ 8,370 $ 1,810 $ 22% (dollars in millions) Average Deposit Growth (6/30/06)
Slide 48: Organic Deposit Growth (6/30/06)
Organic Deposit Growth (6/30/06) 2006 2005 $ % (dollars in millions) Nonint DDA 1,540 $ 1,540 $ - $ 0% Int DDA 1,500 1,490 10 1% Savings/MMDA 2,060 1,950 110 6% CD's 3,360 3,000 360 12% Cash Mgt 330 390 (60) -15% Total Deposits 8,790 $ 8,370 $ 420 $ 5% Organic Deposit Growth (6/30/06)
Slide 49: Net Charge-Offs To Loans
Net Charge-Offs To Loans (6/30/06) 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 FFC Peer Top 50 Net Charge-Offs To Loans (6/30/06) 0.14 0.14 0.02
Slide 50: Nonperforming Assets To Assets
Nonperforming Assets To Assets (6/30/06) 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 FFC Peer Top 50 Nonperforming Assets To Assets (6/30/06) 0.37 0.31 0.29
Slide 51: Other Income Detail (6/30/06)
Other Income Detail (6/30/06) 2006 2005 $ % (dollars in thousands) Invt Mgt & Trust 19,090 $ 17,980 $ 1,110 $ 6% Mort. Sales Gains 9,960 11,950 (1,990) -17% Overdraft Fees 9,430 8,370 1,060 13% Service Charges 7,240 7,090 150 2% Cash Mgt Fees 4,470 3,830 640 17% Success Card Fees 3,610 3,080 530 17%
Slide 52: Internal Results (6/30/06)
Internal Results (6/30/06) 2006 2005 $ % (dollars in thousands) Invt Mgt & Trust 18,660 $ 17,980 $ 680 $ 4% Mort. Sales Gains 9,470 11,950 (2,480) -21% Overdraft Fees 9,040 8,370 670 8% Service Charges 6,540 7,090 (550) -8% Cash Mgt Fees 4,430 3,830 600 16% Success Card Fees 3,560 3,080 480 16% Othe
Slide 53: Efficiency Ratio (6/30/06)
Efficiency Ratio (6/30/06) 50.00 52.00 54.00 56.00 58.00 60.00 62.00 FFC Peer Top 50 Efficiency Ratio (6/30/06) 55.7 58.7 56.1
Slide 54: Other Expense Detail (6/30/06)
Other Expense Detail (6/30/06) 2006 2005 $ % (dollars in thousands) Salaries & Benefits 103,320 $ 89,530 $ 13,790 $ 15% Occupancy & Equip. 24,680 20,000 4,680 23% DP/Software/Telecom 12,400 11,610 790 7% Amortization 3,860 2,350 1,510 64% Other Expenses 34,540 28,520 6,020 21% Total 178,800 $ 152,01
Slide 55: Internal Results (6/30/06)
Internal Results (6/30/06) 2006 2005 $ % (dollars in thousands) Salaries & Benefits 91,040 $ 89,530 $ 1,510 $ 2% Occupancy & Equip. 20,880 20,000 880 4% DP/Software/Telecom 11,110 11,610 (500) -4% Amortization 2,210 2,350 (140) -6% Other Expenses 29,710 28,520 1,190 4% Total 154,950 $ 152,010 $ 2,94
Slide 56: Looking Ahead
Looking Ahead Focus on: EPS growth Non-interest income Organic growth Strong asset quality Value-creating acquisitions Net interest margin expansion Improved efficiency Looking Ahead
Slide 57: Planned In-Market Consolidation
Planned In-Market Consolidation Premier Bank (Bucks and Montgomery Counties, PA) to merge with Fulton Bank as Fulton Division First Washington State Bank (Mercer, Monmouth and Ocean Counties, NJ) to merge with The Bank and operate as The Bank To be finalized Q4/06 or Q1/07 Planned In-Market Consolid
Slide 58: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 59: Where are we located?
Where are we located? Where are we located?
Slide 60: Possible Future Expansion
Possible Future Expansion Possible Future Expansion