Fulton Financial Corporation 

1

Fulton Financial Corporation

Fulton Financial Corporation

Investor Presentation

Exhibit 99.1

Fulton Financial Corporation 

2

Forward-Looking Statement

Forward-Looking 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.

Fulton Financial Corporation 

3

Presentation Outline

Presentation Outline

Corporate profile

Relationship banking strategy

Strategic initiatives

Acquisition strategy

Capital

Loan summary

Customer and employee satisfaction

Financial performance

Fulton Financial Corporation 

4

Fulton Financial Profile

Fulton Financial Profile

Regional financial holding company

(formed in 1982)

15 community banks and 3 financial

services affiliates in 5 states

256 community banking offices

Asset size:  $14.6 billion

Market capitalization:   $2.8 billion

Fulton Financial Corporation 

5

Where are we located?

Where are we located?

Fulton Financial Corporation 

6

FFC Affiliates in Affluent Markets*

FFC Affiliates in Affluent Markets*

County

National

Ranking

Ranking in State

Median HH

Ranking

FFC Affiliate

Fairfax, VA

#1

#1

$100,803

Resource Bank

Hunterdon, NJ

#5

#1

    91,622

Skylands Bank

Morris, NJ

#9

#2

    89,020

Skylands Bank

Somerset, NJ

#10

#3

    88,665

Somerset Valley

Howard, MD

#11

#1

    86,586

Columbia Bank

Montgomery, MD

#13

#2

    85,763

Columbia Bank

Chester, PA

#25

#1

    81,043

Fulton Bank

*Source: SNL, Median HH Income 2005

Fulton Financial Corporation 

7

Serving PA’s Strongest

Growth Markets*

Serving PA’s Strongest

Growth Markets*

County

Rank

Projected

Population Change

2005-2010

Median HH

Income

Projected HH

Income Change

2005-2010

Chester

1

8.17%

$81,043

27.48%

Montgomery

2

2.96  

  75,725

24.30  

Bucks

3

3.87  

  73,522

21.65  

Delaware

4

3.06  

  62,297

23.15  

Cumberland

5

4.10  

  56,532

19.27  

Northampton

7

6.86  

  54,850

19.78  

Berks

8

3.79 

  53,721

18.98  

Lancaster

9

4.67  

  53,682

17.25  

Lehigh

10

5.59  

  53,351

21.49  

York

11

4.92  

  53,254

17.16  

Average

4.80%

$61,800

21.05%

17.11%

Average all other

(57) PA Counties

0.26%

$41,177

*Source: SNL, Median HH Income 2005

Fulton Financial Corporation 

8

Possible Future Expansion

Possible Future Expansion

Fulton Financial Corporation 

9

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 = 5.5%)

25 bank acquisitions

What have we accomplished?

What have we accomplished?

Fulton Financial Corporation 

10

10-year dividend history

10-year dividend history

0.2104

0.2312

0.2806

0.3089

0.3845

0.4253

0.4750

0.5179

0.2544

0.3444

0.5670

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Fulton Financial Corporation 

11

Dow Jones U.S. Select Dividend Index

Dow Jones U.S. Select Dividend Index

FFC added on June 1, 2006

Reflected Dividend Performance of the 100

leading U.S. companies

Criteria:

Non-negative five-year dividend-per-share

growth rate

Five-year average dividend to earnings-

per-share ratio of less than or equal to

60%

Three-months average daily trading

volume of 200,000 shares

Index represents approximately 95% of U.S. Market Capitalization

Fulton Financial Corporation 

12

Creating Value

Creating Value

For our

Shareholders

Employees

Customers

Communities

With

People

Place

Promotion

Product

Price

Fulton Financial Corporation 

13

Our Relationship Strategy

Our Relationship Strategy

Long-term

successful

employees

Long-term

successful

customers

Long-term

successful

shareholders

Fulton Financial Corporation 

14

Stock Performance (1982 -

2005)

Stock Performance (1982 -

2005)

WITHOUT dividend reinvestment:

14%

compounded annual rate of return

WITH dividend reinvestment:

18%

compounded annual rate of return

Fulton Financial Corporation 

15

Corporate Strategic Priorities

Corporate Strategic Priorities

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 capital prudently

Fulton Financial Corporation 

16

Most Recent Acquisition

Most Recent Acquisition

The Columbia Bank

•Acquired on 2/1/06 Assets of $1.3 billion

•Headquartered in Columbia, MD

•25 offices in Howard, Frederick, Montgomery,

Prince George’s, Baltimore Counties and

Baltimore City

Fulton Financial Corporation 

17

Columbia Bank

Overview

Columbia Bank

Overview

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

Prior to acquisition 4th

largest

independent commercial banking

company in Central Maryland

Fulton Financial Corporation 

18

Columbia Bank Footprint

Columbia Bank Footprint

MARYLAND

Branch office

Headquarters office

Washington

D.C

Full Service    Retirement            

Branches

Branches

Baltimore County/City                      3                   

3     

Howard County                                  9               

2

Montgomery County                          3                   

--

Prince George’s County                     5                           --

Total                                      20    

5 

Baltimore

Howard

Montgomery

Prince

George’s

Harford

Carroll

Frederick

Anne

Arundel

Baltimore City

Fulton Financial Corporation 

19

Columbia Bank Demographics

Columbia Bank Demographics

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 income in Howard and Montgomery

Counties = 1st

and 2nd

in Maryland

Bank market share in Howard County = 16.7% on 6/30/05

Fulton Financial Corporation 

20

Strong performance

Asset quality

High growth areas

Dynamic market demographics

Talented and dedicated staff

Compatible corporate culture

What do we look for?

What do we look for?

Fulton Financial Corporation 

21

Acquisitions In New Markets

Acquisitions In New Markets

What changes?

Loan review

Investments

Asset/liability

management

Compliance

Audit / Accounting

What stays the same?

Bank name

Board of Directors

Management team

Employees

Community involvement

and support

Fulton Financial Corporation 

22

Our Business Model

Our Business Model

Affiliate knows local markets best

Maintains established local brand value

Proprietary retail expertise and strategy

Prestigious jobs in local markets

Pricing autonomy

Performance goals

Affiliate plan execution

Fulton Financial Corporation 

23

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

Benefits To New Affiliates

Benefits To New Affiliates

Fulton Financial Corporation 

24

Investment

management

Brokerage  services

Insurance

(whole life, term life,

long-term care

through Advisors)

Cash management

Health Savings

Accounts

Debit/credit cards

Residential mortgages

Specialized lending

(leasing and indirect)

International services

Correspondent

banking

On-line banking

Affiliate New Product Availability

Affiliate New Product Availability

Fulton Financial Corporation 

25

Other Income As a Percent

of Total Income

Other Income As a Percent

of Total Income

22.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

96

97

98

99

00

01

02

03

04

05

6/06

Fulton Financial Corporation 

26

Capital (6/30/06)

Total Capital (GAAP):

$1.4 billion

Total Regulatory Capital:

$1.2 billion

Ratios:

•

Total Risk-Based Capital

11.55%

•

Tier 1 Risk-Based Capital

9.63%

•

Leverage Capital

7.67%

Fulton Financial Corporation 

27

Loan Diversification (6/30/06)

Loan Diversification (6/30/06)

29%

30%

21%

14%

6%

Commercial

Commercial

Mortgage

Res Mtg and

Home Equity

Construction

Consumer and

other

Fulton Financial Corporation 

28

38 relationships with commitments to lend

of $20 million or more

Maximum individual commitment of

$33 million

Average commercial loan size is $215,000

Loans and corresponding relationships are within

Fulton’s geographic market area

Summary of Larger Loans

Summary of Larger Loans

Fulton Financial Corporation 

29

Commercial Loan Concentration

By Industry

(as of 6/30/06)

Commercial Loan Concentration

By Industry

(as of 6/30/06)

Industry

%

Construction

26.1

RE - Investor - Owned

21.2

Services

15.3

Manufacturing

6.9

Retail

6.2

Health Care

6.1

Agriculture

5.1

Wholesale

4.7

Other

2.9

Financial Services

2.1

Arts and Entertainment

1.9

Transportation

1.5

100.0

Fulton Financial Corporation 

30

Short-term rating

P-1

Long-term rating  

Issuer

A-2

Lead Bank Deposits

A-1

Outlook                                 

Stable

Credit Ratings

Credit Ratings

Moody’s Investor Services

Short-term rating

F-1

Long-term rating

A

Outlook                                   Stable

Fitch Ratings

Standard & Poors

Credit rating

BBB+

Outlook                    Stable

Dominion Bond Rating Service

Credit rating

A

Outlook                     Stable

Fulton Financial Corporation 

31

Employee Retention

Employee Retention

0

10

20

30

40

50

60

70

80

90

100

2001

2002

2003

2004

2005

Exempt

Non-exempt

Overall

Fulton Financial Corporation 

32

Employee Opinion Survey

Employee Opinion Survey

Quality and

Improvement

Commitment

Immediate

Supervisor

Job Satisfaction

Service Climate

Company Image

Training and

Development

Organizational

Leadership

Work Process

Communication

Pay and Benefits

Teamwork and

Collaboration

(Survey administered by BAI Survey Services)

Fulton Financial Corporation 

33

Employee Opinion Survey

Employee Opinion Survey

Conducted every three years

Over 3,000 employees surveyed (85%)

Completed in June 2005

FFC responses exceed BAI national

averages in 10 of the 12 categories

Fulton Financial Corporation 

34

Customer Satisfaction (Fall 2005)

Customer Satisfaction (Fall 2005)

*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 American Banker/Gallup Consumer Survey

Fulton Financial Corporation 

35

Quarter ended June 30, 2006

Quarter ended June 30, 2006

$46.7 million

Net income

(12.3% increase over 2005)

$  0.27

Net income per share

(8.0% increase over 2005)

$  0.1475 

Cash dividends per share

(6.8% increase over 2005)

1.32%

Return on assets

13.01%

Return on equity

24.87%

Return on tangible equity

Fulton Financial Corporation 

36

South Financial Group, Inc. (The)

First Midwest Bancorp, Inc.

Susquehanna Bancshares, Inc.

United Bankshares, Inc.

Sky Financial Group Inc.

Mercantile Bankshares Corporation

Citizens Banking Corporation

Valley National Bancorp

Wilmington Trust Corporation

BancorpSouth, Inc.

UMB Financial Corporation

Trustmark Corporation

FirstMerit Corporation

Peer Group

Peer Group

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 Bancshares, Inc.

Old National Bancorp

Greater Bay Bancorp

Fulton Financial Corporation 

37

Income Statement Summary

(6/30/06)

Income Statement Summary

(6/30/06)

2006

2005

$

%

Net Interest Income

237,890

$  

198,170

$  

39,720

$    

20%

Loan Loss Provision

(1,880)

(1,530)

(350)

23%

Other Income

68,540

69,440

(900)

-1%

Securities Gains

4,070

4,730

(660)

-14%

Other Expenses

(178,800)

(152,010)

(26,790)

18%

Income Taxes

(39,240)

(35,760)

(3,480)

10%

Net Income

90,580

$    

83,040

$    

7,540

$      

9%

(dollars in thousands)

Fulton Financial Corporation 

38

Average Loan Growth

(6/30/06)

Average Loan Growth

(6/30/06)

2006

2005

$

%

Commercial

2,700

$       

2,310

$     

390

$    

17%

Comm'l Mort

2,990

2,490

500

20%

Resid Mort/HE

1,990

1,670

320

19%

Construction

1,270

670

600

90%

Cons./Other

590

540

50

9%

Total Loans

9,540

$       

7,680

$     

1,860

24%

(dollars in millions)

Fulton Financial Corporation 

39

Organic Loan Growth

(6/30/06)

Organic Loan Growth

(6/30/06)

2006

2005

$

%

Commercial

2,400

$       

2,310

$     

90

$      

4%

Comm'l Mort

2,740

2,490

250

10%

Resid Mort/HE

1,750

1,670

80

5%

Construction

880

670

210

31%

Cons./Other

580

540

40

7%

Total Loans

8,350

$       

7,680

$     

670

9%

(dollars in millions)

Fulton Financial Corporation 

40

Net Interest Margin

(6/30/06)

Net Interest Margin

(6/30/06)

3.81

3.62

3.89

3.50

3.75

4.00

4.25

4.50

4.75

FFC

Peer

Top 50

Fulton Financial Corporation 

41

Asset/Liability Management

6/30/06

Asset/Liability Management

6/30/06

Interest rate “shocks”

Rate Change

NII Change (Annual)

% Change

+300 bp

+ $ 10.7 million

+  2.2%

+200 bp

+ $   7.1 million

+  1.5%

+100 bp 

+ $   3.6 million

+  0.7%

-

100 bp

-

$ 10.0 million

-

2.1%

-

200 bp

-

$ 22.4 million

-

4.6%

-

300 bp

-

$ 38.7 million

-

8.0%

Fulton Financial Corporation 

42

Yield Curve -

Rate Shocks

Yield Curve -

Rate Shocks

Treasury Yields at Different Rate Shocks

Quarter Ending 6/30/06

0.00

2.00

4.00

6.00

8.00

10.00

1

2

3

4

5

6

7

8

Year

-300

-200

-100

Flat

100

200

300

Fulton Financial Corporation 

43

Loan Mix (6/30/06)

Loan Mix (6/30/06)

Fixed

33%

Floating

40%

Adjustable

27%

Fulton Financial Corporation 

44

Investment Portfolio

(6/30/2006)

Investment Portfolio

(6/30/2006)

ENDING

MODIFIED

BALANCE

DURATION

CREDIT RATING

(000's)

Mortgage-backed securities

1,399.1

$        

2.54

AAA

Municipal bonds

452.4

3.80

AAA

Collateralized mortgage obligations

398.5

2.32

AAA

U.S. Treasuries and agencies

348.5

2.55

AAA

Corporate & trust preferred securities

69.5

10.01

various - 5 yr call

FHLB stock

75.6

na

AAA

Bank stock

76.0

na

Not rated

Other investments

21.7

na

AAA

Unrealized gain - bank stock

(1.9)

Unrealized loss-bonds

(95.6)

Total Investments

2,743.8

$        

2.89

Fulton Financial Corporation 

45

Bank Stock Gains

(percent contribution to EPS)

Bank Stock Gains

(percent contribution to EPS)

0

1

2

3

4

5

6

7

8

9

Fulton Financial Corporation 

46

Funding Sources  (6/30/06)

Funding Sources  (6/30/06)

73%

16%

10%

1%

Deposits and Customer

Repurchase Agreements

Borrowings

GAAP Capital

Other Liabilities

Fulton Financial Corporation 

47

Average Deposit Growth

(6/30/06)

Average Deposit Growth

(6/30/06)

2006

2005

$

%

Nonint DDA

1,810

$     

1,540

$     

270

$    

18%

Int DDA

1,670

1,490

180

12%

Savings/MMDA

2,330

1,950

380

19%

CD's

3,910

3,000

910

30%

Cash Mgt

460

390

70

18%

Total Deposits

10,180

$    

8,370

$     

1,810

$ 

22%

(dollars in millions)

Fulton Financial Corporation 

48

Organic Deposit Growth

(6/30/06)

Organic Deposit Growth

(6/30/06)

2006

2005

$

%

(dollars in millions)

Nonint DDA

1,540

$     

1,540

$     

-

$     

0%

Int DDA

1,500

1,490

10

1%

Savings/MMDA

2,060

1,950

110

6%

CD's

3,360

3,000

360

12%

Cash Mgt

330

390

(60)

-15%

Total Deposits

8,790

$     

8,370

$     

420

$    

5%

Fulton Financial Corporation 

49

Net Charge-Offs To Loans

(6/30/06)

Net Charge-Offs To Loans

(6/30/06)

0.14

0.14

0.02

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

FFC

Peer

Top 50

Fulton Financial Corporation 

50

Nonperforming Assets To Assets

(6/30/06)

Nonperforming Assets To Assets

(6/30/06)

0.37

0.31

0.29

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

FFC

Peer

Top 50

Fulton Financial Corporation 

51

Other Income Detail

(6/30/06)

Other Income Detail

(6/30/06)

2006

2005

$

%

(dollars in thousands)

Invt Mgt & Trust

19,090

$     

17,980

$     

1,110

$   

6%

Mort. Sales Gains

9,960

11,950

(1,990)

-17%

Overdraft Fees

9,430

8,370

1,060

13%

Service Charges

7,240

7,090

150

2%

Cash Mgt Fees

4,470

3,830

640

17%

Success Card Fees

3,610

3,080

530

17%

Other

14,740

17,140

(2,400)

-14%

Total

68,540

$     

69,440

$     

(900)

$     

-1%

Fulton Financial Corporation 

52

Internal Results

(6/30/06)

Internal Results

(6/30/06)

2006

2005

$

%

(dollars in thousands)

Invt Mgt & Trust

18,660

$     

17,980

$     

680

$         

4%

Mort. Sales Gains

9,470

11,950

(2,480)

-21%

Overdraft Fees

9,040

8,370

670

8%

Service Charges

6,540

7,090

(550)

-8%

Cash Mgt Fees

4,430

3,830

600

16%

Success Card Fees

3,560

3,080

480

16%

Other

13,870

17,140

(3,270)

-19%

Total

65,570

$     

69,440

$     

(3,870)

$     

-6%

Fulton Financial Corporation 

53

Efficiency Ratio

(6/30/06)

Efficiency Ratio

(6/30/06)

55.7

58.7

56.1

50.00

52.00

54.00

56.00

58.00

60.00

62.00

FFC

Peer

Top 50

Fulton Financial Corporation 

54

Other Expense Detail

(6/30/06)

Other Expense Detail

(6/30/06)

2006

2005

$

%

(dollars in thousands)

Salaries & Benefits

103,320

$   

89,530

$     

13,790

$  

15%

Occupancy & Equip.

24,680

20,000

4,680

23%

DP/Software/Telecom

12,400

11,610

790

7%

Amortization

3,860

2,350

1,510

64%

Other Expenses

34,540

28,520

6,020

21%

Total

178,800

$   

152,010

$   

26,790

$  

18%

Fulton Financial Corporation 

55

Internal Results

(6/30/06)

Internal Results

(6/30/06)

2006

2005

$

%

(dollars in thousands)

Salaries & Benefits

91,040

$     

89,530

$     

1,510

$    

2%

Occupancy & Equip.

20,880

20,000

880

4%

DP/Software/Telecom

11,110

11,610

(500)

-4%

Amortization

2,210

2,350

(140)

-6%

Other Expenses

29,710

28,520

1,190

4%

Total

154,950

$   

152,010

$   

2,940

$    

2%

Fulton Financial Corporation 

56

Looking Ahead

Looking Ahead

Focus on:

EPS growth

Non-interest income

Organic growth

Strong asset quality

Value-creating acquisitions

Net interest margin expansion

Improved efficiency

Fulton Financial Corporation 

57

Planned In-Market Consolidation

Planned In-Market Consolidation

Premier Bank (Bucks and

Montgomery Counties, PA) to merge

with Fulton Bank as Fulton Division 

First Washington State Bank (Mercer,

Monmouth and Ocean Counties, NJ)

to merge with The Bank and operate

as The Bank

To be finalized Q4/06 or Q1/07

Fulton Financial Corporation 

58

Fulton Financial Corporation

Fulton Financial Corporation

One Penn Square

Lancaster, PA  17602

www.fult.com

Fulton Financial Corporation 

59

Where are we located?

Where are we located?

Fulton Financial Corporation 

60

Possible Future Expansion

Possible Future Expansion