Slide 1: Another year of good solid growth
Another year of good solid growth Fulton Financial Corpo ration
Slide 2: Safe Harbor statement
Safe Harbor 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, return on
Slide 3: Photo Slides
Photo Slides (Photos of the board of directors, senior management, and affiliate CEOs appear here)
Slide 4: Another year of good solid growth
Another year of good solid growth Fulton Financial Corporation
Slide 5: Highlights of 2002
Highlights of 2002 Fulton Financial Corporation
Slide 6: Company ratings
Company ratings Moody’s Investors Service Short-term rating P-1 Long-term rating A-1 Fitch Ratings Short-term rating F-1 Long-term rating A
Slide 7: Contributors to other income
Contributors to other income $800 million in mortgage loans Investment management and trust services Corporate cash management fees, debit card fees and checking-related fees
Slide 8: The Bank/Woodstown National merger
The Bank/Woodstown National merger The Bank(SM) South Jersey’s Best Community Bank
Slide 9: Pillars of the Community award
Pillars of the Community award
Slide 10: Employee opinion survey (June 2002)
Employee opinion survey (June 2002) Customer service Management team performance Company image and mission Team orientation Technology and systems Training and development Sales orientation Work effectiveness Pay and benefits Employee satisfaction
Slide 11: Employee satisfaction
Employee satisfaction Officer retention rate: 90% Overall employee retention rate: 81% Employee stock ownership: 70% (more than 2 million shares)
Slide 12: The Newcomen Society award
The Newcomen Society award
Slide 13: Premier Bancorp, Inc.
Premier Bancorp, Inc. (Wem sees dy oansrinen, Montgomery. County
Slide 14: Premier Bancorp, Inc.
Premier Bancorp, Inc. Historical double-digit growth in deposits, loans, fee income and net income Strong asset quality Premier branches are contiguous to and within current affiliate bank markets
Slide 15: Strategic implications
Strategic implications Increased non-interest income opportunities Expansion of markets for Fulton Mortgage Company and Fulton Financial Advisors Provides Premier with increased lending capacity and additional capital Retail banking expansion
Slide 16: Where are we located?
Where are we located? Pennsylvania New Jersey Maryland Delaware
Slide 17: Highlights of 2002
Highlights of 2002 Fulton Financial Corporation
Slide 18: Business Ethics & Corporate Governance
Fulton Financial Corporation Business Ethics & Corporate Governance
Slide 19: Already in place
Already in place Expedited two-business-day reporting of insider stock transactions CEO and CFO certifications of quarterly and annual SEC filings Disclosure Committee formed
Slide 20: Now in progress
Now in progress Code of Conduct applicable specifically to the CEO, CFO and Controller Independent Audit Committee — Financial Expert — Revised Audit Committee charter Establish a confidential and anonymous reporting process for perceived corporate wrongdoing
Slide 21: Code of Conduct
Fulton Financial Corporation Code of Conduct
Slide 22: 2002 Financial Performance
Scott Smith President and Chief Operating Officer 2002 Financial Performance
Slide 23: Fulton Financial profile (as of 12/31/02)
Fulton Financial profile(as of 12/31/02) $8.4 billion in assets (Rank: 58th) $1.8 billion in market capitalization (Rank: 49th) 2nd largest commercial bank headquartered in Third Federal Reserve District
Slide 24: Fulton Financial profile (as of 12/31/02)
Fulton Financial profile (as of 12/31/02) Eleven affiliate banks 188 banking offices 210 automated teller machines
Slide 25: Consecutive years of record earnings
What have we accomplished? 21 consecutive years of record earnings 9.3% compounded annual growth rate in earnings per share Fulton Financial Corporation
Slide 26: Consecutive years of dividend increases
What have we accomplished? 28 consecutive years of dividend increases 10.3% compounded annual growth rate in dividends per share Proven business model Consistently high performance Fulton Financial Corporation
Slide 27: Fulton Financial Corporation
Fulton Financial Corporation Record earnings High asset quality Strong net interest margin Prudent expense control
Slide 28: 2002 performance
2002 performance $1.29 Net income per share (12.2% increase over 2001) Total Net Income: $132.9 million $0.586 Cash dividends per share (10.6% increase over 2001) Total cash dividends declared: $60.1 million
Slide 29: 2002 performance
2002 performance 1.68% Return on assets 15.86% Return on equity 52.40% Efficiency ratio 9.40% Leverage capital ratio
Slide 30: 2002 total return
2002 total return Institution/Index Change Nasdaq Bank Index 7.32 Fulton Financial 4.42 Peer Group 2.56 Large Banks -2.70 NYSE Bank Index -11.55 Dow Jones -15.48 S&P 500 -22.56 Nasdaq Nat'l Mkt. -32.56
Slide 31: Five-year total return
Five-year total return Institution/Index Percent change Peer Group 24.33% Nasdaq Banks 19.89 Fulton Financial 19.48 NYSE Banks 15.83 Dow Jones Ind. Avg. 15.12 Large Banks 7.23 S&P 500 -2.88 Nasdaq Nat'l. Mkt. -13.56
Slide 32: 2003 stock performance (year-to-date)
2003 stock performance (year-to-date) $17.66 12/31/02 $19.72 4/14/03 A 11.66% increase since year-end 2002.
Slide 33: Analysts who follow our company
Analysts who follow our company Cohen Bros. Outperform Ferris Baker Watts Buy Janney Montgomery Scott Buy Keefe Bruyette & Woods Market Perform Legg Mason Wood Walker Buy McConnell, Budd & Romano Outperform McDonald Investments Hold RBC Capital Markets Sector perform Ryan Beck Outperform Salomon Smi
Slide 34: Stock Performance (1982-2002)
Stock Performance (1982-2002) 1982 2002 100 shares $1,750 1,493 shares $26,366 14% return WITHOUT dividend reinvestment
Slide 35: Stock Performance (1982-2002)
Stock Performance (1982-2002) 1982 2002 100 shares $1,750 3,067 shares $54,165 18% return WITH dividend reinvestment
Slide 36: Strategic Plan
Fulton Financial Corporation Strategic Plan
Slide 37: Our mission statement
Our mission statement We will increase shareholder value and enrich the communities we serve by creating financial success together with our customers and career success together with our employees. We will conduct all of our business with honesty and integrity.
Slide 38: Core values
Core values Integrity Honesty Teamwork Compassion Consistency Relationship-focused Corporate citizenship Competitive spirit Strong work ethic Open and honest communication
Slide 39: Our top priorities
Our top priorities Sustaining strong earnings growth Maintaining high credit quality Creating financial success together with our clients Creating career success together with our employees Enriching the communities we serve Growing non-interest income
Slide 40: In-depth analysis
In-depth analysis Strengths, weaknesses, opportunities, challenges Greatest strength: OUR PEOPLE
Slide 41: 2002 Accomplishments and Our Strategic Plan
Scott Smith President and Chief Operating Officer 2002 Accomplishments and Our Strategic Plan
Slide 42: Announcements, Questions and Answers
Rufus Fulton Chairman and Chief Executive Officer Announcements Questions and Answers
Slide 43: Another year of good solid growth
Another year of good solid growth Fulton Financial Corporation