Fulton Financial Corporation was incorporated under the laws of Pennsylvania
on February 8, 1982 and became a bank holding company through the acquisition
of all of the outstanding stock of Fulton Bank on June 30, 1982. In 2000, the
Corporation became a financial holding company as defined in the Gramm-Leach-Bliley
Act (GLB Act), which gave the Corporation the ability to expand its financial
services activities under its holding company structure. The Corporation directly
owns 100% of the common stock of six community banks and eight non-bank entities.
The Corporation’s six subsidiary banks are located primarily in suburban
or semi-rural geographical markets throughout a five-state region (Pennsylvania,
Delaware, Maryland, New Jersey and Virginia). Each of these banking subsidiaries
delivers financial services in a highly personalized, community-oriented style
that emphasizes relationship banking. Where appropriate, operations are centralized
through common platforms and back-office functions. The Corporation has announced
that it is developing plans to seek regulatory approval to begin the process
of consolidating its six subsidiary banks in connection with a transition to
a business model that will be less oriented on geographic boundaries and will
instead focus more on alignment with the customer segments the Corporation serves.
The Corporation also believes that consolidation will enhance its ability to
manage risk more efficiently and effectively through a centralized risk management
and compliance function. This multi-year process is expected to eventually result
in the Corporation conducting its core banking business through a single subsidiary
bank. Consolidation of the bank subsidiaries will result in a single subsidiary
bank with greater than $10 billion of assets, subjecting it to more stringent
regulation applicable to institutions that exceed that threshold.
The Corporation’s subsidiary banks are located in areas that are home
to a wide range of manufacturing, distribution, health care and other service
companies. The Corporation and its banks are not dependent upon one or a few
customers or any one industry, and the loss of any single customer or a few
customers would not have a material adverse impact on any of the subsidiary
banks. However, a large portion of the Corporation’s loan portfolio is
comprised of commercial loans, commercial mortgage loans and construction loans.
Each of the subsidiary banks offers a full range of consumer and commercial
banking products and services in its local market area. Personal banking services
include various checking account and savings deposit products, certificates
of deposit and individual retirement accounts. The subsidiary banks offer a
variety of consumer lending products to creditworthy customers in their market
areas. Secured consumer loan products include home equity loans and lines of
credit, which are underwritten based on loan-to-value limits specified in the
Corporations lending policy. Subsidiary banks also offer a variety of fixed
and variable-rate products, including construction loans and jumbo loans. Residential
mortgages are offered through Fulton Mortgage Company, which operates as a division
of each subsidiary bank. Consumer loan products also include automobile loans,
automobile and equipment leases, personal lines of credit and checking account
overdraft protection.
Investment management, trust, brokerage, insurance and investment advisory
services are offered to consumer and commercial banking customers in the market
areas serviced by the Corporations subsidiary banks by Fulton Financial Advisors,
a division of the Corporations Fulton Bank, N.A. subsidiary bank.
The Corporation’s subsidiary banks deliver their products and services
through traditional branch banking, with a network of full service branch offices.
Electronic delivery channels include a network of automated teller machines,
telephone banking, mobile banking and online banking. The variety of available
delivery channels allows customers to access their account information and perform
certain transactions, such as depositing checks, transferring funds and paying
bills, at virtually any time of the day.
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