Fulton Financial Corporation

Presentation to:

Keefe, Bruyette & Woods, Inc.

July 29, 2003

1

Safe Harbor statement

l 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.

l 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 $8.6 billion in assets

n $2.1 billion in market cap

n Third largest commercial bank headquartered in Third Federal Reserve District

n Lead bank founded in 1882

Fulton Financial Corporation

3

Peer group

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

Fulton Financial Corporation

4

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

5

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

6

Stock performance (6/82—6/03)

n WITHOUT dividend reinvestment:

15% compounded annual rate of return

n WITH dividend reinvestment:

19% compounded annual rate of return

Fulton Financial Corporation

7

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
n	15.86%	Return on Equity
n	52.40%	Efficiency Ratio
n	9.40%	Leverage Capital Ratio

* Restated for 5% stock dividend paid in May, 2003.

Fulton Financial Corporation

8

Six months ended June 30, 2003

n	$  0.64	Net income per share (6.7% increase over 2002)
n	$  0.303	Cash dividends per share (11.4% increase over 2002)
n	1.64%	Return on Assets
n	15.88%	Return on Equity
n	52.90%	Efficiency Ratio

Fulton Financial Corporation

9

Assets by affiliate

(as of 6/30/03, in thousands)

n	Fulton Bank	$	3,800,000
n	Lafayette Ambassador Bank		1,087,000
n	The Bank		1,050,000
n	Lebanon Valley Farmers Bank		779,000
n	Hagerstown Trust Company		451,000
n	Skylands Community Bank		375,000
n	Delaware National Bank		338,000
n	FNB Bank, N.A.		306,000
n	Swineford National Bank		277,000
n	The Peoples Bank of Elkton		105,000

10

Where are we located?

¨ The Bank

¨ Delaware National Bank

¨ FNB Bank

¨ Fulton Bank

¨ Hagerstown Trust

¨ Lafayette Ambassador Bank

¨ Lebanon Valley Farmers Bank

¨ The Peoples Bank of Elkton

¨ Skylands Financial Corporation

¨ Swineford National Bank

11

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

12

Building on our strengths

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

Fulton Financial Corporation

13

Acquisitions

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

Fulton Financial Corporation

14

Premier Bancorp, Inc.

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

n Eight full-service offices serving Montgomery, Bucks and Northampton counties

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

15

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

16

What do we look for?

n High growth areas

n Strong performance

n Asset quality

n Talented people

Fulton Financial Corporation

17

New acquisitions

What changes?

n Audit

n Loan review

n Investments

n Asset/liability management

n Common operating platform

Fulton Financial Corporation

18

New acquisitions

What stays the same?

n Bank name

n Board of Directors

n Management team

n Employees

Fulton Financial Corporation

19

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 Management focus on growth, customer service and sales

n Proven merger/conversion expertise

Fulton Financial Corporation

20

Building on our strengths

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

Fulton Financial Corporation

21

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

Fulton Financial Corporation

23

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)

24

Building on our strengths

n       Sound risk	=	n       Limited
management		exposure
		to loss

Fulton Financial Corporation

25

Net charge-offs to average loans

Source: SNL Financial Datasource

[CHART]

Fulton Financial Corporation

26

Non-performing assets to total assets

[CHART]

Fulton Financial Corporation

27

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.

28

Loan diversification

Fulton Financial Corporation

29

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

30

Commercial loan concentration

by industry (as of 6/30/03)

Industry	%
Construction	17.2
R/E – Rental	16.6
Services	11.9
Manufacturing	10.4
Retail	8.2
Health Care	7.7
Other	7.5
Agriculture	6.4
Wholesale	5.9
Arts and Entertainment	4.1
Financail Services	2.2
Transportation	1.9

31

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

32

Net interest margin

[GRAPH]

Source: SNL Financial Datasource

Fulton Financial Corporation

33

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

nImpact 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%

Source: FFC Asset/Liability Modeling

34

Deposit composition trends

	June ‘03		June ‘02
Non Interest-Bearing Demand	19	%	17	%
Interest-Bearing Demand	16	%	14	%
Money Market	13	%	13	%
Savings	11	%	11	%
Time Deposits	36	%	40	%
Customer Repos	5	%	5	%
Total Deposits	100	%	100	%

35

Investment portfolio

Portfolio Components ( in millions)	Ending Bal. 6/30/03		Average Life (yrs.)	Credit Rating
Mortgage-backed securities	$	1,951.4	2.3	AAA – agency issued
Treasuries and agencies	$	105.5	0.3	AAA
Municipals	$	269.2	3.5	AAA – insured
Bank-issued Trust preferred stock	$	20.6	24	various/callable: 5 yrs
Other/Short-term Inv.	$	40.6	NA	AAA
Bank Stocks	$	73.8	NA	not rated
FHLB Stock	$	47.9	NA	AAA
Unrealized Gain – Bank Stock	$	9.0
Unrealized Gain – Bonds	$	30.8
TOTAL INVESTMENTS	$	2,548.8

36

Funding sources

as of 6/30/03

[CHART]

Deposits and Customer Repurchase Agreements	79	%
Capital	10	%
Other Borrowings	9	%
Other Liabilities	2	%

Fulton Financial Corporation

37

Building on our strengths

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

Fulton Financial Corporation

38

Capital (At March 31, 2003)

n	Total Capital (GAAP):	$	864	million
n	Total Risk-based Capital:	$	848	million
n	Ratios:
	Ø Total RB Capital		13.9	%
	Ø Tier 1 RB Capital		12.7	%
	Ø Leverage Capital		9.4	%

Fulton Financial Corporation

39

Leverage capital

Optimal Minimums:

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

Fulton Financial Corporation

40

Building on our strengths

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

Fulton Financial Corporation

41

Centralized products

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

Fulton Financial Corporation

42

Composition of total revenues

[CHART]

n Other Income n Net Interest Income

Fulton Financial Corporation

43

Other Income                (YTD June)

	2003		2002		$			%
	(dollars in thousamds)
Invt Mgt & Trust	$	17,152	$	14,743	$	2,409		16	%
Mort Sales & Serv.		11,792		6,064		5,728		94	%
Service Charges		7,766		7,472		294		4	%
Deposit-related fees		7,323		6,995		328		5	%
Cash Mgt Fees		3,628		3,619		9		0	%
Success Card Fees		2,641		2,326		315		14	%
Merchant Fees		2,056		1,893		163		9	%
Other		6,842		6,888		(330	)	-8	%
Total	$	59,200	$	50,000	$	9,246		18	%

44

Fulton Mortgage Company

n	Established April 2001
n	New entity to coordinate residential mortgage lending throughout FFC
	Ø	Expanded, competitive product line to customers of all affiliates
	Ø	In partnership with each affiliate, focused management team on residential mortgages
	Ø	Entry into new markets for FFC

45

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

46

Investment management & trust services revenue

[CHART]

n     Fulton Fin Adv n     Dearden Maguire

Fulton Financial Corporation

47

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

48

Growth in other income

[CHART]

Fulton Financial Corporation

49

Building on our strengths

n Bank stock portfolio = n Additional income source

Fulton Financial Corporation

50

Bank stock gains

(percent contribution to EPS)

[CHART]

Fulton Financial Corporation

51

Building on our strengths

n Common technology and operations = n Lower costs

Fulton Financial Corporation

52

Efficiency ratio

[CHART]

Source: SNL Financial Datasource

Fulton Financial Corporation

53

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

54

Possible future expansion

Pennsylvania
				New Jersey
		Maryland
n	Current Markets
¨	Future Expansion
			Delaware
	Virginia

55

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

56

Board of directors

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

Fulton Financial Corporation

57

Fulton Financial Corporation

One Penn Square

Lancaster, PA 17602

www.fult.com

58