EX-99 2 presentation.htm



Fulton Financial Corporation

B. Riley & Co.
New York Bank Conference

November 18, 2008

1

The following presentation may contain forward-looking statements about Fulton Financial Corporation’s
financial condition, business, strategies, products and services. Forward-looking statements are encouraged
by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the
Corporation’s current views and expectations based largely on information currently available to its
management, and on its current expectations, assumptions, plan, estimates, judgments, and projections about
its business and its industry, and they involve inherent risks, contingencies, uncertainties and other factors.
Although the Corporation believes that these forward-looking statements are based on reasonable estimates
and assumptions, the Corporation is unable to provide any assurance that its expectations will, in fact, occur
or that its estimates or assumptions will be correct and actual results could differ materially from those
expressed or implied by such forward-looking statements and such statements are not guarantees of future
performance. The Corporation undertakes no obligation to update or revise any forward-looking statements.
Accordingly, investors and others are cautioned not to place undue reliance on such forward-looking statements.

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 other markets, including the lack of or
reduced access to, and the abnormal functioning of markets for mortgage and other asset-backed securities
and for commercial paper and other short-term borrowings; the effect of competition and interest rates on net
interest margin and net interest income; investment strategy and income growth; investment securities gains;
declines in the value of securities which may result in charges to earnings; changes in rates of deposit and
loan growth; asset quality and the impact on assets from adverse changes in the economy and in credit and
other markets and resulting effects on credit risk and asset values; balances of risk-sensitive assets to risk-
sensitive liabilities; salaries and employee benefits and other expenses; amortization of intangible assets;
goodwill impairment; capital and liquidity strategies; and other financial and business matters for future periods.

For a more complete discussion of certain risks and uncertainties affecting the Corporation, please see the
sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” set forth in the Corporation’s filings with the Securities and Exchange Commission.

Forward-Looking Statement

2

Presentation Outline

Corporate Overview

Strategy

Quarterly Commentary

Loan Summary

Financial Performance

3

Fulton Financial Profile

Mid-Atlantic regional financial holding company

A family of 10 community banks in 5 states

Fulton Financial Advisors / Fulton Mortgage Co.

267 community banking offices

Asset size:  $16 billion

3900 Team Members

Market capitalization:  $ 1.8 billion

Book value (9/30/08) : $9.18

Tangible book value (9/30/08): $5.46

4

Strategic Plan

Superior
Employee Engagement

Superior
Customer Experience

Superior
Operating Efficiency

Superior
Financial Results

5

Capital (as of 09/30/08)

Total Capital (GAAP):                                         $1.6 billion

Total Regulatory Capital:                                           $1.5 billion

Ratios:              

Total Risk-Based Capital                                   11.90%

Tier 1 Risk-Based Capital                                  9.10%

Leverage Capital                                       7.50%

Tangible Common Equity                6.20%

6

Capital Purchase Program

Balance sheet strength

Market share opportunities

Meet needs of strong new customers

Maintain strength relative to peers

Potential acquisitions

7

Our Markets

8

Affiliate Consolidation- Maryland

Hagerstown Trust and Peoples Bank
of Elkton

Divisions of The Columbia Bank
Q3/09

Statewide $2.4 billion franchise

Leverage brand and marketing
resources

After conversion: Total of 8 affiliate
banks, previous high of 15

9

Q3/08 Quarterly Comments

Reported EPS of 17 cents

Good performance relative to
peers

10

Q3/08 Quarterly Comments

Market share opportunities

Good new net account growth

Customer funding a challenge

Strong deposit-related account fee
income

11

Q3/08 Quarterly Comments

Strong loan demand

Strong loan growth

Disciplined underwriting

Building a quality base for the future

12

Delinquency Trends

Residential Mortgage Delinquency:

5.76

5.50

5.49

6.49

Total

2.81

2.58

3.14

3.52

90 Days

0.73

1.04

.96

0.72

60 Days

2.22

1.88

1.39

2.26

30 Days

9/30/2008

6/30/2008

3/31/2008

12/31/2007

Direct Consumer Delinquency:

.92

.81

.77

.85

Total

.35

.32

.32

.26

90 Days

.18

.14

.13

.14

60 Days

.38

.35

.31

.45

30 Days

9/30/2008

6/30/2008

3/31/2008

12/31/2007

13

Q3/08 Quarterly Comments

Market-provided opportunity to
improve loan yields

More competitive deposit pricing

Margin stability

Yield curve

  

14

46 relationships with commitments to lend

             of $20 million or more

Maximum individual commitment of
$33 million

Average commercial lending relationship
size is $428,577

Loans and corresponding relationships are
within Fulton’s geographic market area         
                      

Summary of Larger Loans

15

Loan Diversification (as of 09/30/08)

8%

14%

11%

33%

30%

4%

Commercial

Commercial

Mortgage

Res Mtg

Home Equity

Construction

Consumer and

other

16

             

Commercial Loan Concentration by Industry (as of 09/30/08)

Industry

%

Construction

24.7

   

RE - Investor - Owned

24.0

   

Services

14.5

   

Manufacturing

7.1

      

Retail

6.0

      

Health Care

5.6

      

Agriculture

5.1

      

Wholesale

4.4

      

Other

2.9

      

Financial Services

2.4

      

Arts and Entertainment

2.1

      

Transportation

1.2

      

100.0

  

17

Loan Distribution by Affiliate

2008

08 v. 07

%

Aver Bal

Growth

Growth

(dollars in thousands)

Pennsylvania

6,166,700

$

401,700

$   

7%

New Jersey

2,367,300

   

229,500

      

11%

Maryland

1,584,900

   

32,100

        

2%

Virginia

1,108,300

   

162,200

      

17%

Delaware

337,600

      

25,400

        

8%

18

80

81

79

79

79

73

70

68

66

66

58

85

0

20

40

60

80

100

Quality & Improvement*    

Commitment (-)    

Immediate Supervisor*    

Job Itself*    

Service Climate*    

Company Image*    

Training & Development*    

Organizational Leadership (-)    

Work Processes*    

Communication*    

Pay and Benefits*    

Teamwork & Collaboration*    

Categories above 65% are considered strengths - <60% considered areas that
need improvement.  * = Category results as good or better than prior

Overall Survey Results

19

Superior Customer Satisfaction

*Retail:

90% extremely/very satisfied

Commercial:

90% extremely/very satisfied

  

*Compared to national average of 63%

  Source: American Banker/Gallup Consumer Survey

20

Status of the Corporation

Capital strong

Financial performance
compares well to peers

Quality loan growth

Market opportunities

Investing for the future –
branches, technology, training

21

Financial Performance

22

Peer Comparisons

Quarter ended 9-30-08

EPS decrease of 11%

Peer median decrease of 24%

6thout of 24 peer banks

Peer median decrease of 72%

7thout of top 50 banks

Nine months ended 9-30-08

EPS decrease of 17%

Peer median decrease of 18%

12thout of 24 peer banks

Top 50 median decrease of 44%

12thout of top 50 banks

23

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 Corporation

Associated Banc-Corp

BancorpSouth, Inc.

Bank of Hawaii Corporation

BOK Financial Corporation                         

Citizens Republic Bancorp                         

City National Corporation

Colonial BancGroup, Inc.

Commerce Bancshares, Inc.                     

Cullen/Frost Bankers, Inc.                             

First Citizens BancShares, Inc.

First Midwest Bancorp, Inc.                        

First Merit Corporation        

                                

Peer Group

24

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

25

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

26

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

27

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

28

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

29

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

30

Income Statement Summary
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in thousands)

Net Interest Income

391,810

$  

365,090

$  

26,720

$   

7%

Loan Loss Provision

(54,630)

   

(8,260)

      

(46,370)

   

561%

Other Income

116,440

   

110,540

   

5,900

      

5%

Credit Card Sale Gain

13,910

     

-

           

13,910

     

nm

Securities Gains

(29,900)

   

2,280

      

(32,180)

   

nm

Other Expenses

(305,550)

  

(307,010)

  

1,460

      

0%

Income Taxes

(35,830)

   

(48,100)

   

12,270

     

-26%

Net Income

96,250

$   

114,540

$  

(18,290)

$  

-16%

31

Average Loans
(Nine Months Ended September 30th)

2008

2007

$

%

(dollars in millions)

Commercial 

3,510

$     

3,160

$   

350

$  

11%

Comm'l Mort 

3,690

      

3,300

     

390

     

12%

Resid Mort

900

           

730

        

170

     

23%

Home Equity 

1,570

      

1,440

     

130

     

9%

Construction 

1,300

      

1,390

     

(90)

     

-6%

Cons./Other 

500

           

600

        

(100)

   

-17%

Total Loans

11,470

$   

10,620

$

850

     

8%

32

Average Loans
(Linked Quarter)

3rd Q 08

2nd Q 08

$

%

(dollars in millions)

Commercial 

3,560

$     

3,510

$   

50

$     

1%

Comm'l Mort 

3,820

      

3,700

     

120

     

3%

Resid Mort

950

           

890

        

60

      

7%

Home Equity  

1,620

      

1,570

     

50

      

3%

Construction  

1,290

      

1,290

     

-

     

0%

Cons./Other  

460

           

460

        

-

     

0%

Total Loans 

11,700

$   

11,420

$

280

     

2%

33

Net Interest Margin

3.69

3.65

3.32

3.25

3.50

3.75

4.00

4.25

4.50

4.75

FFC

Peer

Top 50

34

Net Charge-Offs To Loans

0.52

0.75

0.29

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

09/08

FFC

Peer

Top 50

35

Investment Portfolio
(as of 09/30/08)

(in millions)

Mortgage-backed securities 

1,193.4

$     

Collateralized mortgage obligations   

521.5

           

Municipal bonds

511.6

           

Corporate debt securities 

170.1

           

Auction rate securities 

157.0

           

FHLB and FRB stock

106.1

           

U.S. Treasuries and agencies 

90.2

            

 Bank stocks           

55.5

            

Other investments

30.4

            

Unrealized net loss

(29.3)

            

Total Investments

2,806.5

$     

36

Efficiency Ratio

56.2

60.5

61.5

50.0

52.0

54.0

56.0

58.0

60.0

62.0

64.0

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

09/08

FFC

Peer

Top 50

37

Other Expense
(Nine Months Ended September 30st)

2008

2007

$

%

(dollars in thousands)

Salaries & Benefits      

164,790

$

164,350

$

440

$      

0%

Occupancy & Equip.      

40,910

     

40,550

     

360

        

1%

Operating Risk Loss       

19,110

     

26,460

     

(7,350)

   

-28%

Data Proc. & Software        

13,810

     

13,230

     

580

        

4%

Marketing  

9,520

      

7,870

      

1,650

     

21%

Supplies & Postage       

8,520

      

8,420

      

100

        

1%

Telecommunications         

5,960

      

6,190

      

(230)

      

-4%

Outside Services      

5,870

      

4,580

      

1,290

     

28%

Legal & Audit   

5,720

      

4,350

      

1,370

     

31%

Amortization    

5,390

      

6,180

      

(790)

      

-13%

Other Expenses      

25,950

     

24,830

     

1,120

     

5%

Total

305,550

$

307,010

$

(1,460)

$

0%

38

Fulton Financial Corporation

One Penn Square

Lancaster, PA  17602

www.fult.com

39