Slide 1: Fulton Financial Corporation Investor Presentation
Fulton Financial Corporation ------------------------------------- Investor Presentation Data as of June 30, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements n This presentation may contain forward-looking statements with respect to Fulton Financial Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of w
Slide 3: Presentation Outline
Presentation Outline u Corporate Profile u Overview of the 2nd Quarter u Credit u Capital u Financial Performance u Corporate Priorities u Supplemental Credit Data
Slide 4: Fulton Financial Profile (as of 6/30/11)
Fulton Financial Profile (as of 6/30/11) n Mid-Atlantic regional financial holding company n A family of 7 community banks in 5 states n Fulton Financial Advisors n Fulton Mortgage Company n 273 community banking offices n Asset size: $16.0 billion n 3,800 team members n Market capitalization: $1.7
Slide 5: A Valuable Geographic Franchise
A Valuable Geographic Franchise
Slide 6: Further Charter Consolidation
Further Charter Consolidation n The Bank (Mt. Laurel) and Skylands Community Bank (Chester) to become Fulton Bank of New Jersey n Announced August 2, 2011 n Combined assets of $3.5 billion n 75 Branches located in 15 of 21 New Jersey counties n Expected completion Q4/11 n Six affiliate banks post me
Slide 7: Further Charter Consolidation
Further Charter Consolidation
Slide 8: Superior Customer Experience
Superior Customer Experience WE WILL CARE, LISTEN, UNDERSTAND, AND DELIVER
Slide 9: Customer Satisfaction Metrics (6/30/11)
Customer Satisfaction Metrics (6/30/11) n Customers: u Retail 95% u Business 91% u Fulton Mortgage Company 91%
Slide 10: Our Brand
Our Brand COMMUNITY BANKING SMALL BUSINESS HIGH NET WORTH RETAIL BANKING
Slide 11: Overview of the 2nd Quarter
Overview of the 2nd Quarter n EPS of 18 cents per diluted share, up 6% linked quarter n Continued asset quality improvement n NIM expansion n Increased ROA n Increase in quarterly dividend n Strong other income growth
Slide 12: Return on Assets
Return on Assets n Key corporate priority n Linked quarter increase from 0.85% to 0.91% n Managing our assets more efficiently and profitably
Slide 13: Overview of the 2nd Quarter / Credit
Overview of the 2nd Quarter / Credit n Improved core credit metrics: u Non-performing loans u Charge-offs u Overall loan delinquency u Provision for credit losses n Continued decline in construction book u $300 million over the last 18 months n Increased residential mortgage activity and sale gains
Slide 14: Summary of Larger Loans (6/30/11)
Summary of Larger Loans (6/30/11) n 52 relationships with commitments to lend of $20 million or more n Maximum individual commitment: $33 million n Maximum commitment to any builder/developer: $25 million Ø Maximum commitment any one development project: $15 million n Average commercial lending rela
Slide 15: Provision and Non-performing Loans
Provision and Non-performing Loans Provision NPL’s / Loans ($ in millions)
Slide 16: Loan Delinquency (Key Sectors)
Loan Delinquency (Key Sectors) Category Total (%) 06/30/11 90-Days 06/30/11 Total (%) 03/31/11 90-Days 03/31/11 Commercial Loans 3.12 2.58 2.83 2.33 Consumer Direct 1.46 0.64 1.46 0.64 Commercial Mortgage 2.89 2.32 2.87 2.21 Residential Mortgage 7.59 4.22 8.36 4.89 Construction 9.18 8.56 10.31 9.75
Slide 17: Declining Construction Exposure
Declining Construction Exposure (7%) (23%) (18%) ($ in millions) Construction Loans / Total Loans 12.2% 10.5% 8.2% 6.7% (24%) 6.3% 5.8%
Slide 18: Commercial Loans by Industry (06/30/11)
Commercial Loans by Industry (06/30/11)
Slide 19: Shared National Credits (06/30/11)
Shared National Credits (06/30/11)
Slide 20: Troubled Debt Restructurings
Troubled Debt Restructurings oe 06/30/11 03/31/11 (in thousands) Residential Mtg $ 37,010 $ 39,560 C&lI/Comm'! Mtg 33,780 36,040 Construction 5,590 5,440 Consumer/other 260 260 $ 76,640 $ 81,300 Note: Excludes non-accrual TDR's FULTON FINANCIAL CORPORATION
Slide 21: Fulton Mortgage Company
Fulton Mortgage Company n Applications up linked quarter / $477 million from $397 million n Pipeline $215 million vs. $161 million (Q2-2011 vs. Q1-2011) n 54% purchase / 46% refinancing (Q2- 2011 Pipeline) n Increased sale gains (Linked Quarter)
Slide 22: Residential Mortgage Repurchase Activity
Residential Mortgage Repurchase Activity n 2011 - Servicing Retained u Repurchased $ 4,515,000. n 2011 - Servicing Released u Repurchased $ 338,000.
Slide 23: Capital Adequacy (06/30/11)
Capital Adequacy (06/30/11)
Slide 24: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 25: Income Statement Summary Q2 2011 vs Q1 2011
Q2 2011 Q1 2011 $ (dollars in thousands) Net Interest Income $ 140,640 $ 139,560 $ 1,080 1% Loan Loss Provision (36,000) (38,000) 2,000 -5% Other Income 47,710 43,880 3,830 9% Securities (Losses) Gains (340) 2,280 (2,620) n/m Other Expenses (102,470) (101,570) (900) 1% Income Taxes (13,150) (12,370)
Slide 26: Income Statement Summary (YTD June)
Income Statement Summary (YTD June)
Slide 27: Peer Group
Peer Group* International Bancshares Corp. People’s United Financial, Inc. Susquehanna Bancshares, Inc. Synovus Financial Corporation TCF Financial Corporation UMB Financial Corporation Valley National Bancorp Webster Financial Corporation *Fulton’s peer group as of June 30, 2011 Associated Banc-Cor
Slide 28: Top
Top 50 -=FULT -*Peer FULTON FINANCIAL CORPORATION
Slide 29: Interest Rates (June Quarter)
Interest Rates (June 30 th - Quarter)
Slide 30: Interest Rate Shocks (06/30/11)
Interest Rate Shocks (06/30/11) 6 month cumulative gap: 1.14 Rate Change NII Change (Annual) % Change +400 bp + $ 82.8 million + 14.3% +300 bp + $ 57.8 million + 10.0% +200 bp + $ 33.2 million + 5.7% +100 bp + $ 10.3 million + 1.8% - 100 bp - $ 8.0 million - 1.4%
Slide 31: Average Loans (Q2 2011 vs. Q1 2011)
Average Loans (Q2 2011 vs. Q1 2011)
Slide 32: Average Loans (Year to Date)
Average Loans (June 30 th - Year to Date)
Slide 33: FULT
FULT —™Peer =tTop 50 FULTON FINANCIAL CORPORATION
Slide 34: Net Charge-Offs To Average Loans
oe Net Charge-Offs To Average Loans 2.00 1.50 1.00 0.50 0.00 03 04 05 06 07 08 09 10 YTD 06/11 FULT -®Peer -©Top 50 FULTON FINANCIAL CORPORATION
Slide 35: Non-accrual Loans to Loans
Non-accrual Loans to Loans 3.00 2.00 1.00 0.00 03 04 05 06 07 08 09 10 Q211 —e@FULT -# Peer —*-Top 50 FULTON FINANCIAL CORPORATION
Slide 36: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans
Slide 37: Allowance for Loan Losses to Non-accrual Loans
Allowance for Loan Losses to Non-accrual Loans
Slide 38: Investment Portfolio (6-30-11)
Investment Portfolio (6-30-11)
Slide 39: Investment Portfolio - Municipal Holdings
Investment Portfolio - Municipal Holdings (06/30/11)
Slide 40: Municipal Holdings by State
Investment Portfolio - Municipal Holdings by State (06/30/11) Note: The municipal portfolio consists of 95% general obligation bonds. School district issues total 71% of all holdings.
Slide 41: Investment Portfolio - Pooled TruPS Holdings
Investment Portfolio - Pooled TruPS Holdings (06/30/11)
Slide 42: Average Deposits (Q2 2011 vs. Q1 2011)
Average Deposits (Q2 2011 vs. Q1 2011)
Slide 43: Average Deposits (Year to Date)
Average Deposits (June 30 th - Year to Date)
Slide 44: FULT -*Peer -~Top
(3.0) FULT -*Peer -~Top 50 FULTON FINANCIAL CORPORATION
Slide 45: FULT
(3.0) FULT -“™Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 46: Other Income
Other Income Millions 200.0, 160.0; 120.0; 80.0; 40.0; 0.0: FULTON FINANCIAL CORPORATION:
Slide 47: Other Income (Q2 2011 vs. Q1 2011)
Other Income (Q2 2011 vs. Q1 2011)
Slide 48: Other Income (Year to Date)
Other Income (June 30 th - Year to Date)
Slide 49: YTD
03 04 05 06 07 08 09 10 YTD FULT -®Peer Top 50 FULTON FINANCIAL CORPORATION
Slide 50: Other Expense (Q2 2011 vs. Q1 2011)
Other Expense (Q2 2011 vs. Q1 2011)
Slide 51: Other Expense (Year to Date)
Other Expense (June 30 th - Year to Date)
Slide 52: Income Statement Summary (YTD December)
Income Statement Summary (YTD December)
Slide 53: Income Statement Summary (YTD December)
Income Statement Summary (YTD December)
Slide 54: Deposit Growth
Deposit Growth n Consistent core checking promotional activity n Increase products and services per HH n Differentiated customer experience n Improved customer satisfaction metrics n New branch prototype
Slide 55: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION:
Slide 56: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION:
Slide 57: Small Business Deposit Growth
Small Business Deposit Growth n Focused small business prospecting in primary branch market areas n Referrals from satisfied customers n Obtain core banking / investment relationships from business owners n Leverage expertise of relationship teams n Online Business Resource Center n Build awareness
Slide 58: Commercial and Industrial Growth
Commercial and Industrial Growth n Leverage existing and develop new relationships with centers of influence n Relationship Manager staff expansion to increase revenue production n Integrate FFA employee benefit expertise into commercial relationships n Increase accounts and services per relationshi
Slide 59: Non-Interest Income Maximization
Non-Interest Income Maximization n Fulton Financial Advisors u Brokerage u Wealth Management u Institutional n Fulton Mortgage Company u Increased origination staff in all markets u Leverage strong local market presence, reputation, and customer satisfaction u Expect rise in purchase activity as con
Slide 60: Corporate Priorities
Corporate Priorities n Profitable organic growth n Improve credit quality n Superior customer experience n Improve ROA n Maximize non-interest income n Increase the cash dividend n Risk mitigation and management n Deploy capital profitably
Slide 61: Growth and Capital Deployment
Growth and Capital Deployment n Organic Growth u New branches in strong new and contiguous markets u Core deposit generation / consumer and small business n Potential Capital Deployment u Support growth u Increase dividend u Repurchase of stock
Slide 62: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com
Slide 63: Fulton Financial Corporation
FULTON FINANCIAL CORPORATION
Slide 64: Net Charge-offs (Recoveries) (Q2 2011)
Net Charge-offs (Recoveries) (Q2 2011)
Slide 65: Non-performing Loans (06/30/11)
Non-performing Loans* (06/30/11)
Slide 66: Loan Delinquency (Key Sectors) YOY
Loan Delinquency (Key Sectors) YOY Category Total (%) 06/30/11 90-Days 06/30/11 Total (%) 06/30/10 90-Days 06/30/10 Commercial Loans 3.12 2.58 2.58 2.12 Consumer Direct 1.46 0.64 1.61 0.71 Commercial Mortgage 2.89 2.32 3.15 2.34 Residential Mortgage 7.59 4.22 8.28 4.63 Construction 9.18 8.56 9.93 8.
Slide 67: Loan Distribution by State (Q2 2011)
Loan Distribution by State (Q2 2011)
Slide 68: Residential Mtg by State (06/30/11)
Residential Mtg by State (06/30/11)
Slide 69: C&I Loans by State (06/30/11)
C&I Loans by State (06/30/11)
Slide 70: Construction Loans (06/30/11)
Construction Loans (06/30/11)
Slide 71: Construction Loans by Type (06/30/11)
Construction Loans by Type (06/30/11)
Slide 72: CRE Loans by State (06/30/11)
CRE Loans by State (06/30/11)
Slide 73: ROE and ROA 1996-2006
15.00 14.50 14.00 13,50 13.00 12.50 12.00 1.70 Z— IN ZZ \\ “ 1.50 : 1.40 1.30 1.20 “i 1.10 1.00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -#ROE --ROA FULTON FINANCIAL CORPORATION
Slide 74: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio
Slide 75: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www.fult.com Version 2011-09-09