Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — SunTrust Robinson Humphrey conference (May 2006)
55 slides from Fulton Financial's conference presentation, May 25, 2006
Slide 1: Fulton Financial Corporation
Fulton Financial Corporation SunTrust Robinson Humphrey May 25, 2006
Slide 2: Forward-Looking Statement
rward-Looking Statement lI 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, retu
Slide 3: Agenda
™ Corporate profile ® Relationship banking strategy @ Strategic initiatives @™ Acquisition strategy ™ Capital ™ Loan summary ™ Customer and employee satisfaction @ Financial performance Se Futon Financial Comoran mmm
Slide 4: Regional financial holding company
®@ Regional financial holding company (formed in 1982) ™15 community banks and 3 financial services affiliates in 5 states ™ 254 community banking offices Asset size: $14.4 billion @ Market capitalization: $2.7 billion ton Finanei i 4
Slide 5: Where are we located?
Where are we located? he Bank 1B The Columbia Banc 1 Delaware Nations Bank -NB Bank 1 FrseWashington State Bank 1 Futon Bank Bi Hagerstown Tease i Latsyerce Ambassador Banke Lebanon Valley Farmers Bank 1 The Peoples Bank of ton 1 Premier Bank @ Resource Bank 1 Skyands Commoniy Bake SomerseValley Ban
Slide 6: Current markets and future expansion
Possible a a, = Future Expansion J Aetoer i Current Markets Gi Future Expansion
Slide 7: What have we accomplished?
What = we accomplished? sss ™ 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.
Slide 8: 10-year dividend history
10-year dividend history 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo
Slide 9: For our shareholders, employees, customers, communities
For our : With Shareholders i People Employees Place Customers i Promotion Communities: Product : Price SS Futon Financial Coporsion ms om mmm 9
Slide 10: Long-term successful employees, customers, shareholders
MLong-term MLong-term MLong-term successful___, successful _____,, successful employees customers shareholders
Slide 11: Returns with and without dividend reinvestment
@ WITHOUT dividend reinvestment: 14% compounded annual rate of return @ WITH dividend reinvestment: 18% compounded annual rate of return
Slide 12: Producing above average long term shareholder returns
™ 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 comprehensively ™ Deploying
Slide 13: The Columbia Bank
= The Columbia Bank Acquired on 2/1/06 Assets of $1.3 billion -Headquartered in Columbia, MD 25 offices in Howard, Montgomery, Prince George’s, Baltimore Counties and Baltimore City
Slide 14: Columbia Bank profile
™ 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 ™ 4th largest independent commercial banking company in Central Maryland a Fatton Financial
Slide 15: Columbia Bank Footprint
Columbia Bank Footprint Batons City © Branch office Baltimare County /City, Howard County Montgorery County Prince George's County Total + Headquarters office FullService Retirement Branches Branches 3 3 a: 5 - 0 5 = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo
Slide 16: Vibrant and diverse Baltimore / Washington corridor
| 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” firms Median household in
Slide 17: Strong performance
| Strong performance @ Asset quality ® High growth areas | Dynamic market demographics ™ Talented and dedicated staff = Compatible corporate culture Se Futon Financial Coporaion mm oy
Slide 18: Acquisitions in New Markets
Acquisitions In New Markets What changes? What stays the same? @ Loan review | Bank name @ Investments ® Board of Directors ® Assetiliability ™ Management team management = Employees ™ Compliance = Community involvement @ Audit / Accounting and support = 2 2 8 8 8 & & FoultonFinancial Coportion © 2
Slide 19: Our Model
7 Ouran Mods © Affiliate knows local markets best © Maintains established local brand value Proprietary retail expertise and strategy Prestigious jobs in local markets Pricing autonomy ™ Performance goals MB Affiliate plan execution
Slide 20: Acquisition benefits
™ 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 a Fatton Financial Comporas 20
Slide 21: New Product Availability
“Affine New Product Availability ® Debiticredit cards @ Investment @ Residential mortgages management ™ Specialized lending ™ Brokerage services (leasing and indirect) @ Insurance & International services (whole life, term life, long-term care . parking through Advisors) ™ Cash management @ Health S
Slide 22: 0.0% : : : : : : : r r r OO Of O02
0.0% : : : : : : : r r r 1 96 97 98 99 OO Of O02 03 04 05 3106
Slide 23: Total Capital
§ Total Capital (GAAP): $1.4 billion ®& Total Regulatory Capital: $1.2 billion @ Ratios: * Total Risk-Based Capital 11.82% * Tier 1 Risk-Based Capital 9.85% - Leverage Capital 8.04%
Slide 24: Share repurchase program
™2 million share repurchase program in progress through 12/31/06
Slide 25: Loan Diversification
Loan Diversification @3109 6% = Commercial Commercial Mortgage m@ Res Mtg and Home Equity = Construction m= Consumer and other 31% = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo
Slide 26: Lending relationships and commitment limits
@ 35 relationships with commitments to lend of $20 million or more | Maximum individual commitment of $30 million ™ Average commercial loan size is $256,000 ™ Loans and corresponding relationships are within Fulton’s geographic market area
Slide 27: Loans by industry
Industry % Construction 25.9 RE - Investor - Owned 21.1 Services 16.8 Manufacturing Retail Health Care Agriculture Wholesale Financial Services Arts and Entertainment Other Transportation See rn PPOaOn cuwonbwolnw = =)
Slide 28: Credit Ratings
Credit Ratings Moody’s Investor Services Standard & Poors | Short-term rating P-1 @ Credit rating BBB+ ™ Long-term rating ™@ Outlook Stable Issuer A-2 Lead Bank Deposits A-1 @ Outlook Stable Fitch Ratings Dominion Bond Rating Service ™ Short-term rating F-A ™ Credit rating A | Long-term rating A ™@
Slide 29: Employee Retention
Employee Retention 100 m Exempt Non-exem pt m Overall 2001 2002 2003 2004 2005 = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo 2»
Slide 30: Employee survey categories
™ Quality and | Training and Improvement Development = Commitment ®@ Organizational Leadership = Immediate . | Supervisor Work Process = Communication : . . ae Satisfaction ™ Pay and Benefits Service Climate = Teamwork and = Company Image Collaboration (Survey administered by BAI Survey Services) a
Slide 31: Employee Opinion Survey
Employee Opinion Survey ™Conducted every three years mOver 3,000 employees surveyed (85%) Completed in June 2005 MFFC responses exceed BAI national averages in 10 of the 12 categories = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo 31
Slide 32: Customer satisfaction
@ ‘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% Source: 2005 Amer
Slide 33: Net income and key ratios
"$43.9 million Net income (5.9% increase over 2005) ™$ 0.27 Net income per share (3.8% increase over 2005) ™$ 0.145 Cash dividends per share (9.8% increase over 2005) = 1.32% Return on assets = 12.83% Return on equity = 23.01% Return on tangible equity Oe Futon Financial Coporaion ms 2 mm 3
Slide 34: Peer group banks
First Republic Bank Bank of Hawaii Corporation International Bancshares Corporation TCF Financial Corporation BOK Financial Corporation Colonial BancGroup, Inc City National Corporation First Citizens BancShares, Inc Whitney Holding Corporation Cullen/Frost Bankers, Inc Associated Banc-Corp Commerce
Slide 35: Income statement comparison
2006 2005 $ % (dollars in thousancis) Net Interest Income $ 115,040 $ 98,250 $ 16,790 17% Loan Loss Provision (1,000) (800) (200) 25% Other income 33,940 32,540 1,400 4% Securities Gains 2,670 3,310 (640) -19% Other Expenses (88,010) (73,820) (14,190) 19% income Taxes (18,760) (18,040) (720) 4% Net
Slide 36: Loan growth
2006 2005 $ % (dollars in millions) Commercial $ 2610 $ 2330 $ 280 12% Comm'l Mort 2,950 2,440 510 21% Resid Mort/HE 1,930 1,660 270 16% Construction 1,160 640 520 81% Cons./Other 580 540 40 7% Total Loans $ 9230 $ 7,610 1,620 21% 6
Slide 37: Loan growth excluding acquisition
2006 2005 $ % (dollars in millions) Commercial $ 2360 $ 2330 $ 30 1% Comm'l Mort 2,710 2,440 270 11% Resid Mort/HE 1,730 1,660 70 4% Construction 850 640 210 33% Cons./Other 580 540 40 7% Total Loans $ 8230 $ 7,610 620 8% 7
Slide 38: FPL APH OD IOS SH HE
3.50 $s FPL APH OD IOS SH HE —FFC -=- Peer -*- Top 50 Se Futon Financial operation om mm 3G
Slide 39: Interest rate shocks
Interest rate “shocks” Rate Change NI Change (Annual) % Change +300 bp +$ 16.3 million + 3.4% +200 bp +$ 11.0 million + 2.3% +100 bp +$ 5.6 million + 1.2% - 100 bp - $12.1 million - 2.5% - 200 bp - $25.7 million - 5.4% - 300 bp - $ 45.9 million - 9.6% RPT Tose»
Slide 40: Treasury yields at different rate shocks
10.00 8.00 6.00 4.00 Percent 2.00 0.00 Treasury Yields at Different Rate Shocks - Quarter Ending 3/31/06 —-300 -200 -=-100 Flat 100 200 300
Slide 41: Loan Mix
Loan Mix 621/06) Adjustable 26% Fixed 34% Floating 40% = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo
Slide 42: Investment portfolio
ENDING MODIFIED BALANCE DURATION CREDIT RATING (000's) Mortgage-backed securities $ 1,423.9 2.95 AAA - agency insured Municipal bonds 4963 3.75 AAA - insured Collateralized mortgage obligations 9817 9 2.95 ABA U.S. Treasuries and agencies 965.1 2.60 ABA Trust preferred securities 701 10.95 various -
Slide 43: CANwWRUANDO
CANwWRUANDO llitilla FP HAPS POD AIHS es N momen B
Slide 44: Funding Sources
Funding Sources 631/05 1% 10% = Deposits and Customer Repurchase Agreements 15% Borrowings = GAAP Capital u Other Liabilities 74% = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo “4
Slide 45: Deposits
2006 2005 $ vi (dollars in millions) Nonint DDA $ 1,770 $ 1,510 $ 260 17% Int DDA 1,670 1,490 180 12% Savings/MMDA 2,270 1,910 360 19% CD's 3,740 3,000 740 25% Cash Mgt 430 400 30 8% Total Deposits $ 9880 $ 8310 $1,570 19% Se Futon Financial Coporaion ms mmm gs
Slide 46: Deposits excluding acquisition
2006 2005 $ % (dollars in millions) Nonint DDA $ 1540 $ 1510 $ 30 2% Int DDA 1,510 1,490 20 1% Savings(MMDA 2,030 1,910 120 6% CD's 3,280 3,000 280 9% Cash Mgt 330 400 (70) -18% Total Deposits $ 8690 $ 8310 $ 380 5% Oe Futon Financial Coporaion mmm gs
Slide 47: 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 PHNMP PP LS PH HD
0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 PHNMP PP LS PH HD MEP LS |+-FFC -=- Peer —-Top 50 | ae Futon Financial Coporaion ms mmm
Slide 48: 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 LSD MP fo H Hh LPP
1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 LSD MP fo H Hh LPP HD MAS SH 2 oe —*FFC -*- Peer -*- Top 50
Slide 49: Non-interest income
2006 2005 $ (dollars in thousands) Int Mgt & Trust $ 10,030 $ 9,020 $ 1,010 11% Mort. Sales Gains 4,770 6,050 (1,280) -21% Overdraft Fees 4,460 3,920 540 14% Service Charges 3,580 3,500 80 2% Cash MgtFees 2,200 1,920 280 15% Success Card Fees 1,720 1,460 260 18% Other 7,180 6,670 510 8% Total $ 33,9
Slide 50: Non-interest income excluding acquisition
2006 2005 $ (dollars in thousands) Invt Mgt & Trust $ 9870 $ 9020 $ 850 9% Mort. Sales Gains 4570 6,050 (1480) -24% Overdraft Fees 4,310 3,920 390 10% Sewice Charges 3,300 3,500 (200) 6% CashMgt Fees 2,180 1,920 260 14% Success Card Fees 1,700 1460 240 16% Other 6,780 6670 110 2% Total $ 32,710 $ 32
Slide 51: 62.00 60.00 58.00 56.00 54.00 52.00 50.00 58.5] a PP PPA HP HD MOE
62.00 60.00 58.00 56.00 54.00 52.00 50.00 58.5] a PP PPA HP HD MOE SH HE -e-FFC -=- Peer -*- Top 50 Se Futon Financial Coporaion om mmm
Slide 52: Non-interest expense
2006 2005 $ % (dottars in thousands) Salaries & Benefits $ 49,930 $ 44,300 $ 5,630 13% Occupancy & Equip. 12,180 10,570 1,610 15% DPSoftware/Telecom 6,100 5,750 350 6% Amortization 1,850 1,180 670 57% Other Expenses 17,950 12,020 5,930 49% Total $ 88,010 $ 73,820 $ 14,190 19%
Slide 53: Non-interest expense excluding acquisition
2006 2005 $ % (abtlars in thousands) Salaries & Benefits $ 44,790 $ 44,300 $ 490 1% Occupancy & Equip. 10,590 10,570 20 0% DPSoftware/Telecom §,550 5,750 (200) -3% Amortization 1,110 1,180 (70) -6% Other Expenses 16,120 12,020 4,100 34% Total $ 78,160 $ 73,820 $ 4,340 6%
Slide 54: Looking Ahead
Looking Ahead Focus on: MEPS growth ™Non-interest income ™ Organic growth ™ Strong asset quality ™ Value-creating acquisitions ™ Net interest margin expansion | Improved efficiency = 2 2 8 8 8 & & FoultonFinancial Coportion © 2 oo oo
Slide 55: Fulton Financial Corporation
Fulton Financial Corporation One Penn Square Lancaster, PA 17602 www. fult.com Se Futon Financial Coporaion ms mm mmm gs
Fulton Financial — SunTrust Robinson Humphrey conference (May 2006) on 6ix