Fulton Financial Corporation

Presentation to:

McDonald Investments

June 11, 2003

1

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 average equity, efficiency ratio and capital ratio. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995.

· Such forward-looking information is based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: pricing pressures on loans and deposits, actions of bank and non-bank competitors, changes in local and national economic conditions, changes in regulatory requirements, actions of the Federal Reserve Board, the Corporation’s success in merger and acquisition integration, and customers’ acceptance of the Corporation’s products and services.

2

Fulton Financial profile

n Regional financial holding company (formed in 1982)

n 10 bank subsidiaries; 3 financial services subsidiaries

n $8.4 billion in assets (Rank: 60th as of 3/31/03)

n $1.9 billion in market cap (Rank: 47th as of 3/31/03)

n 2nd largest commercial bank headquartered in Third Federal Reserve District

n Lead bank founded in 1882

Fulton Financial Corporation

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Our top priorities

n Sustaining strong earnings growth

n Maintaining high credit quality

n Creating financial success with clients

n Creating career success with our employees

n Enriching the communities we serve

n Growing non-interest income

Fulton Financial Corporation

4

What have we accomplished?

n 21 consecutive years of record earnings

n 9.3% compounded annual growth rate in earnings per share

n 29 consecutive years of dividend increases

n 10.3% compounded annual growth rate in dividends per share

n Proven business model

n Consistent high performance

Fulton Financial Corporation

5

2002 performance

n       $1.23*	Net income per share
	(11.8% increase over 2001)
n       $0.558*	Cash dividends per share
	(10.5% increase over 2001)
n       1.68%	Return on Assets
	(29th among publicly traded bank
	holding companies)
n       15.86%	Return on Equity
n       52.40%	Efficiency Ratio
n       9.40%	Leverage Capital Ratio

* Restated for 5% stock dividend declared in April, 2003.

Fulton Financial Corporation

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Peer group

n       Commerce Bancorp	n       Provident Financial Group
n       First Commonwealth Financial	n       Riggs National Corp.
n       First Financial Bancorp.	n       Sky Financial Group Inc.
n       FirstMerit Corp.	n       Susquehanna Bancshares
n       Fulton Financial Corp	n       Trust Co. of New Jersey
n       Hudson United Bancorp.	n       TrustCo Bank Corp. of NY
n       Mercantile Bankshares Corp.	n       United Bankshares Inc.
n       North Fork Bankcorp.	n       Valley National Bancorp
n       Provident Bankshares Corp.	n       Wilmington Trust Co.

Fulton Financial Corporation

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Three months ended March 31, 2003

n       $0.32*	Net income per share
	(6.7% increase over 2002)
n       0.143	Cash dividends per share
	(10.0% increase over 2002)
n       1.67%	Return on Assets
n       15.97%	Return on Equity
n       51.70%	Efficiency Ratio
n       9.40%	Leverage Capital Ratio

* Restated for 5% stock dividend declared in April, 2003.

Fulton Financial Corporation

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Stock performance (1982 – 2002)

n WITHOUT dividend reinvestment:

14% compounded annual rate of return

n WITH dividend reinvestment:

18% compounded annual rate of return

Fulton Financial Corporation

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Assets by affiliate

(as of 3/31/03, in thousands)

n  Fulton Bank	$	3,698,000
n  Lafayette Ambassador Bank		1,094,000
n  The Bank		1,029,000
n  Lebanon Valley Farmers Bank		749,000
n  Hagerstown Trust Company		453,000
n  Skylands Community Bank		365,000
n  Delaware National Bank		321,000
n  FNB Bank, N.A.		300,000
n  Swineford National Bank		264,000
n The Peoples Bank of Elkton		101,000

10

Where are we located?

n The Bank

n Delaware National Bank

n FNB Bank

n Fulton Bank

n Hagerstown Trust

n Lafayette Ambassador Bank

n Lebanon Valley Farmers Bank

n The Peoples Bank of Elkton

n Skylands Financial Corporation

n Swineford National Bank

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Building on our key strengths

n Well-developed acquisition strategy

n Independent network of community banks/ decentralized operating philosophy

n Talented and dedicated employees

n Sound risk management

n Strong capital position

n Coordinated product development process

n Common technology/operations platform and investment/trust services platform

Fulton Financial Corporation

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Building on our strengths

n       Well-developed acquisition strategy = n       Continued growth and strong performance

Fulton Financial Corporation

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Acquisitions

n       Premier Bancorp, Inc. (pending)	n       Bank of Gloucester County
n       Drovers & Mechanics Bank	n       Delaware National Bank
n       18 Sovereign Bank Branches	n       Central Pennsylvania Savings Association
n       Dearden, Maguire, Weaver and Barrett, Inc.	n       Hagerstown Trust Company
n       Skylands Community Bank	n       Denver National Bank
n       Ambassador Bank of the Commonwealth	n       Great Valley Savings Association
n       Lebanon Valley National Bank	n       First National Bank of Danville
n       Peoples Bank of Elkton	n       Second National Bank of Nazareth
n       Woodstown National Bank & Trust Company	n       Lafayette Trust Bank
	n       Pen Argyl National Bank
	n       Swineford National Bank
	n       Farmers Trust Bank

Fulton Financial Corporation

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Premier Bancorp, Inc.

• Lead banking subsidiary – Premier Bank, a $600 million state chartered bank headquartered in Doylestown, PA

• Seven full-service offices serving Montgomery, Bucks and Northampton counties

	For Year ended 12/31/02
•      Return on Assets	0.81%
•      Return on Common Equity	18.74%
•      Efficiency Ratio	58.20%
•      Net Charge-offs	0.13%
•      NPAs/ Assets	0.79%

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Premier Bancorp, Inc.

— An excellent strategic fit

n Historical double-digit growth in deposits, loans, fee income and net income

n Strong asset quality

n Premier branches are contiguous to current affiliate bank markets

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What do we look for?

n High growth areas

n Strong performance

n Asset quality

n Talented people

Fulton Financial Corporation

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New acquisitions

What changes?

n Replicate strong credit culture

n Loan review

n Investments

n Asset/liability management

n Compliance

n Common operating platform

n Audit

Fulton Financial Corporation

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New acquisitions

What stays the same?

n Bank name

n Board of Directors

n Management team

n Employees

Fulton Financial Corporation

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Benefits to new affiliates

n Increased non-interest income due to introduction of new products and services

n Additional capital

n Increased lending capacity

n Reduced expenses

n Management focus on growth, customer service and sales

n Proven merger/conversion expertise

Fulton Financial Corporation

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Building on our strengths

n       Independent community banks and decentralized operating philosophy = n       Customer retention

Fulton Financial Corporation

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Survey results

n 96% of customers are

Extremely or Very Satisfied with their Fulton Financial affiliate bank

22

Building on our strengths

n       Talented and dedicated people	=	n       Outstanding customer service
		n       Superior implementation of Strategic Plan

Fulton Financial Corporation

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Employee opinion survey (June 2002)

n       Customer service	n       Training and development
n       Management team performance	n       Sales orientation
n       Company image and mission	n       Work effectiveness
n       Team orientation	n       Pay and benefits
n       Technology and systems	n       Employee Satisfaction

(Survey administered by BAI Survey Services)

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Building on our strengths

n    Sound risk management = n    Limited exposure to loss

Fulton Financial Corporation

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Net charge-offs to average loans

[GRAPH]

Source: SNL Financial Datasource

Fulton Financial Corporation

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Non-performing assets to total assets

[GRAPH]

Fulton Financial Corporation

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Loan diversification

[PIE CHART]

n       Consumer and Other

n       Residential Mortgage

n       Commercial Loans

n       Home Equity

n       Commercial Mortgage

Fulton Financial Corporation

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Experience of our lenders

n The officers who oversee all lending have each worked in this capacity at Fulton for more than 20 years.

n This consistency should enable Fulton Financial to maintain its high asset quality in the future.

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Summary of larger loans

n Only 20 relationships with commitments to lend of $20 million or more

n Maximum individual commitment of $30 million

n Average commercial loan commitment is $550,000

n Loans and corresponding relationships are within Fulton’s geographical market area

Fulton Financial Corporation

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Commercial loan concentration by industry (as of 3/31/03)

Industry	%
Services	16.0
R/E—Rental	13.8
Manufacturing	11.0
Construction	10.6
Retail	8.8
R/E—Subdividers	7.3
Wholesale	7.0
Health Care	7.0
Agriculture	6.2
Transportation	4.5
Other	3.9
R/E—Holding	2.7
Financial Services	1.2

Fulton Financial Corporation

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Net interest margin

[CHART]

Fulton Financial Corporation

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Interest rate “shocks” (as of 3/31/03)

n Impact on Net Interest Income:

Rate Change	NII Change (Annual)	% Change
+300 bp	+ $ 23.1 million	+ 8.1%
+200 bp	+ $ 17.1 million	+ 5.9%
+100 bp	+ $ 12.8 million	+ 4.4%
-100 bp	-  $ 17.8 million	- 6.2%
6 Month Cumulative Gap:		1.12

Source: FFC Asset/Liability Modeling

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Deposit composition trends

	Mar. ‘03		Mar. ‘02
Non Interest-Bearing Demand	19	%	17	%
Interest-Bearing Demand	16	%	13	%
Money Market	13	%	13	%
Savings	10	%	11	%
Time Deposits	37	%	41	%
Customer Repos	5	%	5	%
Total Deposits	100	%	100	%

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Funding sources

as of 3/31/03

[CHART]

n Deposits and Customer Repurchase Agreements

n Capital

n Other Borrowings

n Other Liabilities

Fulton Financial Corporation

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Building on our strengths

n       Strong Capital Position = n       Capital for growth, acquisitions, share buyback programs

Fulton Financial Corporation

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Capital                                                                                                     (At March 31, 2003)
n       Total Capital (GAAP):	$864 million
n       Total Risk-based Capital:	$848 million
n       Ratios:
®     Total RB Capital	13.9%
®     Tier 1 RB Capital	12.7%
®     Leverage Capital	9.4%

Fulton Financial Corporation

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Leverage capital

Optimal Minimums:

n       Total Capital	$750 million
n       Leverage Ratio:	8.0% (approx.)
n       Excess Capital:	$114 MILLION

Fulton Financial Corporation

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Moody’s Investor Service

n Short-term rating	P-1
n Long-term rating	A-1

Fitch Ratings

n Short-term rating	F-1
n Long-term rating	A

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Building on our strengths

n       Coordinated product development = n       Continued non-interest income growth

Fulton Financial Corporation

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Centralized products

n       Residential Mortgages	n       On-line banking
n       Investment Management	n       Debit/Credit cards
n       Brokerage Services	n       Cash management
n       Insurance (whole life, term life, long-term care through Advisors)	n       Specialized lending (leasing and indirect)
	n       International Services
	n       Correspondent banking

Fulton Financial Corporation

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Composition of total revenues

[CHART]

Fulton Financial Corporation

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Other Income                                                                                                                           (YTD March)

	2003		2002		$			%
	(dollars in thousands)
Invt Mgt & Trust	$	8,343	$	7,160	$	1,183		17	%
Mort. Sales & Serv.		5,951		3,282		2,669		81	%
Service Charges		3,847		3,707		140		4	%
Deposit-related fees		3,545		3,322		223		7	%
Cash Mgt Fees		1,824		1,755		69		4	%
Success Card Fees		1,229		1,118		111		10	%
Merchant Fees		1,014		928		86		9	%
Other		3,683		4,013		(330	)	-8	%
Total	$	25,753	$	21,272	$	4,481		21	%

Fulton Financial Corporation

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Fulton Mortgage Company

n Established April 2001

n New entity to coordinate residential mortgage lending throughout FFC

® Expanded, competitive product line to customers of all affiliates

® In partnership with each affiliate, focused management team on residential mortgages

® Entry into new markets for FFC

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Growth in other income

[CHART]

Fulton Financial Corporation

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Fulton Financial Advisors, N.A.

When formed: (May 1, 2000)

$3.0 billion; $1.7 billion in assets under management

As of: (December 31, 2002)

$4.7 billion; $3.3 billion in assets under management

(includes assets of Dearden, Maguire, Weaver and Barrett)

Products and Services

n       Personal trust	n       Insurance
n       Asset management	n       Corporate trust
n       Retirement services	n       Cash management
n       Brokerage	n       Private banking

Fulton Financial Corporation

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Investment management & trust services revenue

1997	1998	1999	2000	2001	2002	3/03
13.2%	22.1%	26.8%	18.0%	31.6%	7.4%	16.5%

Fulton Financial Corporation

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Fulton Financial Advisors

n Named Community-Based Bank Brokerage Program of the Year In March 2003 by Bank Insurance and Securities Association (BISA)

n Recognition of program excellence

n Award criteria:

· Productivity of registered representatives

· Low employee turnover

· Compliance

· Customer satisfaction

· Reputation in the industry

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Building on our strengths

n       Bank stock portfolio = n       Additional income source

Fulton Financial Corporation

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Bank stock gains

(percent contribution to EPS)

[CHART]

Fulton Financial Corporation

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Building on our strengths

n       Common technology and operations = n       Lower costs

Fulton Financial Corporation

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Efficiency ratio

[CHART]

Fulton Financial Corporation

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Efficiency of previous acquisitions

		Efficiency Ratio
Bank	Year Acquired	Year Acquired	2002
Skylands Comm. Bank	2000	55.7	46.5
Lebanon Valley Farmers	1998	57.0	45.7
Hagerstown Trust	1994	59.1	57.0

Fulton Financial Corporation

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Possible future expansion

n Current Markets

n Future Expansion

Fulton Financial Corporation

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Looking ahead

n Continue to build on our strengths

n Continue to rely on the expertise and skill of our employees

n Stick to banking basics while preparing for the future

n Enhance customer relationship management efforts

Fulton Financial Corporation

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Board of directors

n Focused on maximizing shareholder value with at least a 10% annual increase in earnings per share

Fulton Financial Corporation

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Fulton Financial Corporation

One Penn Square

Lancaster, PA 17602

www.fult.com

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