Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Shareholder Meeting (April 2008)
48 slides from Fulton Financial's shareholder meeting presentation, Apr 25, 2008
Slide 1: 34th Annual Shareholders Meeting
34th Annual Shareholders Meeting April 25, 2008
Slide 2: Safe Harbor Statement
Safe Harbor Statement Many factors could affect future financial results including, without limitation, acquisition and growth strategies, market risk, changes or adverse developments in economic, political or regulatory conditions, a continuation or worsening of the current disruption in credit and
Slide 3: Scott Smith, Chairman, President and CEO: Business Meeting
Scott Smith Chairman, President and CEO Business Meeting
Slide 4: Fulton Financial Corporation
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Slide 5: Changes implemented
Changes implemented To reduce the risk To provide for potential losses Fulton Mortgage Company named to oversee all mortgage lending activities
Slide 6: Quarterly cash dividend
Quarterly cash dividend Maintaining quarterly cash dividend 15 cents per share Payable on July 15 to shareholders of record as of June 20
Slide 7: Cyclical business
Cyclical business Poised for changing cycles
Slide 8: Investors
Investors Growing interest in bank stocks Can provide growth and income
Slide 9: The Federal Reserve Board
4 The Federal Reserve Board ‘FULTON FINANCIAL ‘CORPORATION,
Slide 10: Peer group
Peer group International Bancshares Corporation Old National Bancorp South Financial Group, Inc. Susquehanna Bancshares, Inc. TCF Financial Corporation Trustmark Corporation UMB Financial Corporation United Bankshares, Inc. Valley National Bancorp Whitney Holding Corporation Wilmington Trust Corpora
Slide 11: Stock price
Stock price $14.53 on 3/31/07 $11.22 on 12/31/07 $12.29 on 3/31/08 Up 9.5% from year-end 2007
Slide 12: Earnings per share growth
Earnings per share growth Wilmington Trust Valley National Fulton Financial Susquehanna Bancshares Peer Median 28.2% - 4.5% - 17.0% - 25.9% - 3.5%
Slide 13: Organic loan growth
Organic loan growth $ % (dollars in millions) Commercial 3,210 $ 2,840 $ $ 13% Commercial Mortgage 3,340 3,090 8% Residential Mortgage 19% Home Equity 1,450 1,430 1% Construction 1,380 1,380 - 0% Consumer - 0% Total Loans 10,740 $ 9,980 $ 8%
Slide 14: Net interest margin trend
Net interest margin trend 3.66 3.65 3.45 3.40 3.65 3.90 4.15 4.40 4.65 FFC Peer Top 50
Slide 15: Organic deposit growth
Organic deposit growth $ % (dollars in millions) Non-interest DDAs 1,710 $ 1,830 $ (120) $ -7% Interest DDAs 1,700 1,680 1% Savings/Money Market 2,260 2,350 (90) -4% Certificates of Deposits 4,550 4,170 9% Cash Management 23% Total Deposits 10,870 $ 10,560 $ $ 3%
Slide 16: Net charge-offs to loans
Net charge-offs to loans 0.09 0.25 0.30 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 FFC Peer Top 50
Slide 17: First quarter 2008
First quarter 2008 Earned $41.5 million 0.9% increase over 1st quarter 2007 8.7% increase over 4 th quarter 2007 24 cents per share Unchanged from 1st quarter 2007 9.1% increase from 4th quarter 2007
Slide 18: Enhanced credit card services
Enhanced credit card services Partnering with Elan Financial Services FFC affiliate banks continue to sell and service credit cards Marketing services from Elan Selling credit card portfolio of $85 million Approximate 2008 pre-tax gain: $10 million
Slide 19: 34th Annual Shareholders Meeting
34th Annual Shareholders Meeting April 25, 2008
Slide 20: Fulton Financial profile
Fulton Financial profile Asset size: $16 billion 3,900 employees 266 community banking offices 10 community banks and 3 financial services affiliates in 5 states Market capitalization: $2.0 billion
Slide 21: Strategic Plan
Strategic Plan Superior Employee Satisfaction Superior Customer Experience Superior Operating Efficiency Superior Financial Results
Slide 22: Controlling expenses
Controlling expenses Workforce management Realignment of retirement plan benefits
Slide 23: Fulton Financial Corporation
FULTON FINANCIAI ‘CORPORATION
Slide 24: Analyzing procedures and processes
Analyzing procedures and processes More nimble More creative More flexible Focus on the customer
Slide 25: Fulton Financial Corporation
FULTON FINANCIAL ‘CORPORATION,
Slide 26: The Bank website
The Bank.zx.. fersonal Banking | Business Banting | Investment services | Mortgage services BIRD eat stare j rote seees Jersey's 3st Community Bank a aoneary Quick Links sily do a Home Eavity ine Naat FREE online! eel (-.) stoor TurboTax J [re Futon Financial Far | ‘id you know that The Bank i par o
Slide 27: Automated teller technology
Automated teller technology Corporation-wide training Information Technology support
Slide 28: Slide 28
Slide 29: Investment platform
Investment platform Customized personal services Currently unmatched by most companies
Slide 30: The Clermont approach: Integrated Wealth Strategies
The Clermont approach: Integrated Wealth Strategies Tax Expertise Investment Solutions Goal Integration
Slide 31: Slide 31
Slide 32: Customer service
Customer service
Slide 33: Customer satisfaction surveys
Customer satisfaction surveys Satisfied customers Retail Commercial
Slide 34: Customer satisfaction surveys FFC banks
Customer satisfaction surveys FFC banks Satisfied customers Other banks Our banks Other banks
Slide 35: Fulton Financial Corporation
‘FULTON FINANCIAL ‘CORPORATION,
Slide 36: Internal mergers
Internal mergers First Washington State Bank into The Bank Somerset Valley Bank into Skylands Community Bank Lebanon Valley Farmers Bank into Fulton Bank Resource Bank into Fulton Bank
Slide 37: Serving a broader audience
Serving a broader audience Personalized professional banking + Thriving geographic markets + Areas rich with potential = Internal/Organic growth for Fulton Financial
Slide 38: Fulton Financial affiliate banks map
Ol The Bank The Columbia Bank I Delaware National Bank Bh FNB Bank Fulton Bank Bi Hagerstown Trust Lafayette Ambassador Bank Il The Peoples Bank of Elkton Bh Skylands Community Bank I Swineford National Bank Pennsylvania ‘FULTON FINANCIAL CORPORATION
Slide 39: Since 2005
Since 2005 Opened 24 new branches 12 additional branches planned Deposits: $406 million (51% core) Loans: $485 million
Slide 40: FFC affiliates in affluent markets
FFC affiliates in affluent markets* *Source: Bancology Vol. 24, September 2007 County National Ranking Ranking in State Median HH Ranking Affiliate Hunterdon, NJ $95,981 Skylands Bank Loudoun, VA $93,034 Fulton Bank/SD Fairfax, VA $91,851 Fulton Bank/SD Morris, NJ $90,417 Skylands Bank Somerset, NJ
Slide 41: Serving PA's strongest markets
Serving PA’s strongest markets* *Source: SNL, Median HH Income, 2007 data County Rank Projected Population Change 2007-2012 (%) Median HH Income 2007 ($) Projected HH Income Change 2007-2012 (%) Chester, PA 9.02 85,956 22.09 Montgomery, PA 3.58 79,785 21.29 Bucks, PA 4.64 78,883 21.22 Delaware, PA 1
Slide 42: Funding
Funding New branches Switch kit/cash incentives Relationship-based interest rate incentives Team Advantage Banking
Slide 43: Superior customer experience
Superior customer experience Direct mail uses customer segmentation Leveraging our existing customers to generate new business Asking for referrals; Word-of-mouth testimonials
Slide 44: Chief Deposit Officer
Chief Deposit Officer Developed a Deposit Committee Coordinates all deposit-gathering activities corporation-wide
Slide 45: OptionLine
OptionLine Home equity loan Fixed rate Floating rate
Slide 46: Sharp focus. Broad perspective.
Sharp focus. Broad perspective.
Slide 47: Questions & Answers
Questions & Answers
Slide 48: 34th Annual Shareholders Meeting
34th Annual Shareholders Meeting April 25, 2008