in Financial Corporation ‘You have concentrated on the Resource Mortgage Issue and have been criticized fon the Yahoo site for FEC, Here is some tood for thought to help you expand your investigation ‘+ What is pooling of interests and why was it behind the merger of one of the banks (maybe 2) during the last two years? * What former Bank President is opening a new bank during the third week of January two doors down fram a Fulton favility? Why did a board of director ‘who resigned during the last 14 months join the former Bank President for this new bank? + What former director has 20,476 shates us of 10/26/06? (See Yahoo insider). Why does he hold on to the shares with the price going down? What does he know? What docs he think? ‘* Ifconsolidation of the Hanks 1s good, why is Lafayette Ambassador still a separate bank? Why did only two board members show up at the last buard ‘meeting? How much duplication of jubs is there that could be eliminated (A previous merger saved over $1,000,000 in salaries)? + Why was a person from Lancaster brought in to run a division in highly competitive market where it took people like Jim Lynch (Continental, Sovereign, Fleet, Prime) and Tim Able (First Trust, Fleet, Summit, Prime, Continental) to be able to develop a commercial loan portfolio for other arca competitors? That person from Lancaster docs not know the markel? * Why does Fulton only want small loans? Why don’t they train lenders, why is approval staff'so weak (reud into that). Why are there so many lending committees which wast time and money? Cunt they hite someone to make the needed lending decisions? It could save money © What was the real reason that Lebanon Valley Bank was merged into Fulton? Yes, it did save money, but why now? What were the territorial conflicts? + Did Fulton not only know about the Resource Mortyaye sub prime loans, but use the income to prop up net income when the bank was really having two flat years? + Fulton gor written up by the regulators for not keeping monthly something up to date for a type of assets that are often used to support working capital loaus. (It as actually far worse as the lenders don’t understand these things, no due diligence is done on the pledged assets, and Fulton has no idea what itis doing) Why is Fulton allowed te get away with this? Hint: The Federal cxaminer rotating off was Glen Davis and was based out of Philadelphia. (If you know Banking and what Fulton is, you should be able to figurc aut the agency) Second hint, not state cxaminer!!! + Why did Fulton buy Penn Business Credit, a high tisk group for tiny loans and ‘merge in into Fulton Bank? It would bring down (despite tiny outstanding) loan ratings. The principals af enn Business Credit contracts expire in a year or so aud Fulton (despite what they say) does not understand what Penn does? Who is in line to replace them? Where is this business going? Why did they buy it?* What is the tue extent of the real estate development louns at Columbia Bank? How large are they? What has the slow down in construction dou to these loans? Are further allocations needed? * Fulton said when it issued the 3"! quarter results that its spread went down because they had to borrow money to fund loans instead af utilizing deposits Despite a tiny number of branches in the area, Commerce attracted deposits! puny can't Fulton? Fulton cut people in Branches, should they have expanded hours in branches, cut service fees, and make the bank more like Coneneco?? ‘That would attract deposits * Tow come Citizens (Royal Rank uf Scotland), Sovereign, M & T, PNC, and others make inroads in “Fulton's Home Market” Why type of loans ar¢ they getting that Fulton isn't? (Pastial unswer larger working cupital loans supported by a type of asset), * Ifthe York area is the new commercial husiness area for Pennsylvania, why isn’t Fulton making serious inroads there? * With Agricultural Loans changing in Pennsylvania duc to less lund for growing And the market place changing to a commercial service lending basc, why hast Fulton adjusted? AG loans will go up for a while as product value increases, but they wall ge down! Even Bank of American is thinking of leaving the AG {ending market (Wachovia left small AG lending), Whut does the Fulton Executives do on their retreats? (Watch movies?) Does Fulton know where they arc and where they want to be? How come lnlton has trouble absorbing banks and making profits while PNC has been able to absorb major problem banks (Midlantic, he Washington Bank ith problems, and Sterling) and never miss a beat? Truc they finally hud an issue inthe 4 quarter due to commeroial mortgages but it was better than the Fulton issue. * The Lancaste: Sterling issue cost the area a local bank duc to FRAUD by employees/officcrs of the equipment lease division, Could this type of frand happen at Fulton and has it happened (Does Resource Kall within this?)? What 00d protection is in place? (Think about issue brought up about working capital loans and bank’s vnderstanding with certain types vf ussets) WI H 1h MORALT ISSUES, PROFITABILY ISSUES, EXECUTIVE RONUSES DESPITE REDUCED PROFITS, COULD THIS HAPPEN AT FULTON? * The closing price of the stock was $10.88 on 12/14/07, could Royal Bank of Scotland be the potential purchaser since it wants PA markct share and hus not had sub prime issues? * Does Fulton nced to bring in totally new exccutive management and middle management with good lending and operating experience in a real banking environment? T have given you something to think about and look in to. Do not put anything from this on Yahoo or any other site. You may mention ideas but do not go further. (1 copying words from letter) Do not give out the examiner’s name Glen Davis or the fact that you know ahoutKeep that one for the court room. ‘That would help to give away the identities of the people who wrote this, Sincerely ‘Dolby 5.2OUTHES Aaulllastllallstbtld Stanley Caterbone Advanced Media 1250 Fremont St Lancaster Pa 17603