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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

(Mark One)

þ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year end December 31, 2004

OR

o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

For the transition period from ______ to ______

COMMISSION FILE NUMBER 0-10587

RESOURCE BANK STOCK AND 401(K) SAVINGS PLAN

(Full title of the Plan)

FULTON FINANCIAL CORPORATION

One Penn Square
Lancaster, PA 17602
(Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office)
 
 

 

 

RESOURCE BANK STOCK AND 401(K) SAVINGS PLAN

FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULES
DECEMBER 31, 2004 AND 2003

 

 

Resource Bank Stock and 401(k)
Savings Plan

Contents

         
    Page  
 
        
Report of Independent Registered Public Accounting Firm
     1  
 
        
Financial Statements
        
 
        
Statements of Net Assets Available for Benefits as of December 31, 2004 and 2003
     2  
 
        
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2004
     3  
 
        
Notes to Financial Statements
     4 - 7  
 
        
Supplemental Schedules
        
 
        
Schedule of Assets (Held at End of Year)
     8  
 
        
Schedule of Reportable Transactions
     9  

 

 

(GOODMAN & COMPANY LOGO)

Certified Public Accountants
Specialized Services
Business Solutions

Report of Independent Registered Public Accounting Firm

Plan Administrator
Resource Bank Stock and 401(k) Savings Plan

     We have audited the accompanying statements of net assets available for benefits of Resource Bank Stock and 401(k) Savings Plan as of December 31, 2004 and 2003, and the related statement of changes in net assets available for the year ended December 31, 2004. These financial statements and supplemental schedules are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

     We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2004 and 2003, and the changes in net assets available for benefits for the year ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America.

     Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets (held at end of year) and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

(-s- Goodman & Company, LLP)

Virginia Beach, Virginia
June 2, 2005

One Commercial Place, Suite 800
Norfolk, VA 23510
ph: 757.624.5100
fax: 757.624.5233
www.goodmanco.com

Serving Our Clients Since 1932

 

 

Resource Bank Stock and 401(k) Savings Plan

Statements of Net Assets Available for Benefits

 
                 
December 31,   2004     2003  
 
 
                
Investments
   $ 17,487,673     $ 14,092,579  
     
 
                
Cash
     61,681       213,974  
     
 
                
Participant contributions
     —       29,869  
Employer contributions
     36,381       60,016  
     
 
                
Total receivables
     36,381       89,885  
     
 
                
Net assets available for benefits
   $ 17,585,735     $ 14,396,438  
     

The accompanying notes are an integral part of these financial statements.

2

 

Resource Bank Stock and 401(k) Savings Plan

Statement of Changes in Net Assets Available for Benefits

 
         
Year Ended December 31, 2004        
 
 
        
Additions to net assets attributed to
        
Investment income
        
Net appreciation in fair value of investments
   $ 1,199,143  
Interest and dividends
     842,800  
 
      
 
     2,041,943  
 
      
 
        
Contributions
        
Participant contributions
     1,796,960  
Rollover contributions
     169,296  
Employer contributions
     678,570  
 
      
 
     2,644,826  
 
      
 
        
Total additions
     4,686,769  
 
      
 
        
Deductions from net assets attributed to
        
Benefits paid to participants
     1,357,893  
Administrative expenses
     139,579  
 
      
Total deductions
     1,497,472  
 
      
 
        
Net change
     3,189,297  
 
      
 
        
Net assets available for benefits
        
Beginning of year
     14,396,438  
 
      
 
        
End of year
   $ 17,585,735  
 
      

The accompanying notes are an integral part of these financial statements.

3

 

Resource Bank Stock and 401(k) Savings Plan

Notes to Financial Statements

 

December 31, 2004 and 2003

 

1.   Description of Plan
 
    The following description of the Resource Bank (Company) Stock and 401(k) Savings Plan (Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.
 
    General
 
    The Plan is a defined contribution plan covering substantially all employees of Resource Bank. It is subject to the provisions of the Employee Retirement Income Security Act (ERISA).
 
    Contributions
 
    Each year, participants may contribute up to 15 percent of pre-tax annual compensation, as defined in the Plan. Participants may also contribute amounts representing distributions from other qualified plans. Participants direct the investment of their contributions into various investment options offered by the Plan. The Company may contribute up to 50 percent of the first 6 percent of compensation that a participant contributes to the Plan. Additional Company contributions may be made at the option of the Company’s board of directors. Company contributions are invested in Company stock. Contributions are subject to certain limitations.
 
    Participant Accounts
 
    Each participant’s account is credited with the participant’s contribution and allocations of (a) the Company’s contribution, (b) plan earnings, and (c) charged with an allocation of administrative expenses, if applicable. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 
    Vesting
 
    Participants are vested immediately in their contributions plus actual earnings thereon. Vesting in the Company’s contribution portion of their accounts is based on years of service, as defined. A participant is 100 percent vested after two years of credited service.
 
    Forfeited Accounts
 
    At December 31, 2004 forfeited nonvested accounts totaled $60,373. These accounts are first used to reduce administrative expenses of the Plan, then used to reduce Company contributions.

4

 

    Payment of Benefits
 
    On termination of service due to death, disability, retirement, or termination, if the vested portion of the participant account is over $5,000, the participant may elect to receive a lump sum amount equal to the value of the participant’s vested interest in his or her account, periodic installment payments or a combination of both options. If upon termination of service, the participant’s vested account is under $5,000, a participant will receive the value of the vested interest in his or her account as a lump sum distribution.
 
2.   Summary of Accounting Policies
 
    Use of Estimates
 
    The preparation of financial statements in conformity with accounting principals generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
 
    Investment Valuation and Income Recognition
 
    The Plan’s investments are stated at fair value except participant loans. Quoted market prices are used to value investments. Participant loans are stated at cost which approximates fair value.
 
    Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
 
    Payment of Benefits
 
    Benefits are recorded when paid.
 
3.   Investments
 
    The following presents investments that represent 5 percent or more of the Plan’s net assets.
                 
    2004     2003  
     
Scudder Kemper Blue Chip — A, 49,168 shares
   $ 915,993     $ *  
Janus Advisor Capital Appreciation, 35,943 shares
     901,096       *  
American Funds Income Fund of America — A, 53,137 shares
     1,041,910       *  
Lord Abbott Affiliated Fund — A, 77,704 shares
     1,148,468       *  
Resource Bankshares common stock, 336,366 shares
     *       10,605,620  
Fulton Financial Corporation common stock, 451,732 shares
     10,529,874       *  
 
*   Investment does not represent 5 percent or more of the Plan’s net assets at the end of this year.

5

 

    During 2004, the Plan’s investments (including gains and losses in investments bought and sold, as well as held during the year) appreciated in value by $1,199,143 as follows:
         
Common stocks
   $ 692,610  
Mutual funds
     506,533  
 
      
 
   $ 1,199,143  
 
      

4.   Nonparticipant-Directed Investments
 
    Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments as of December 31, 2004 and 2003 and for the year ended December 31, 2004 is as follows:
                 
    2004     2003  
     
 
                
Net assets
                
Resource Bankshares common stock
     *     $ 3,248,880  
Fulton Financial Corporation common stock
   $ 4,219,234       —  
Employer contribution receivable
     36,381       60,016  
     
 
                
 
   $ 4,255,615     $ 3,308,896  
     
 
                
Change in net assets
                
Appreciation in value
   $ 278,786          
Dividends
     237,461          
Contributions
     678,570          
Benefits paid to participants
     (239,167 )        
Administrative expenses
     (8,931 )        
 
              
 
                
 
   $ 946,719          
 
              

5.   Related Party Transactions
 
    Certain plan investments are shares of stock in Resource Bankshares, the parent of the plan sponsor and, therefore, these transactions qualify as party-in-interest transactions. The fair market value of the Plan’s assets are based on quotes from an active market.
 
    On April 1, 2004, as a result of the merger of Resource Bankshares Corporation, parent of the plan sponsor, with Fulton Financial Corporation, common stock of Resource Bankshares was exchanged for Fulton Financial Corporation common stock at the rate of $1.4667 shares of Fulton Financial Corporation common stock for each share of Resource Bankshares Corporation stock.
 
6.   Plan Termination
 
    Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants would become 100 percent vested in their employer contributions.

6

 

7.   Tax Status
 
    The Internal Revenue Service has determined and informed the prototype sponsor by a letter dated July 25, 2002, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). Additionally, the plan administrator believes that the Plan is currently being operated in compliance with the applicable requirements of the IRC.
 
8.   Risks and Uncertainties
 
    The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balance and the amounts reported in the statement of the net assets available for benefits.

* * * * *

7

 

Supplemental Schedule I

Resource Bank Stock and 401(k) Savings Plan

Schedule of Assets (Held at End of Year)
Schedule H, Line 4i

EIN 54-1414459 Plan 001

 
                                 
December 31, 2004                            
 
Identity of issue,   Description of investment            
borrower, lesser or   including maturity date, rate of interest,           Current
similar party   collateral, par or maturity value   Cost   value
 
                                
*
  Schwab     170,519     shares of Retirement Advantage Money Fund   $ **     $ 170,519  
 
                                
 
  Scudder Kemper     77,616     shares of U.S. Government Securities Fund — A     **       669,046  
 
                                
 
  Scudder Kemper     33,868     shares of Total Return Fund — A     **       305,155  
 
                                
 
  Scudder Kemper     49,168     shares of Blue Chip Fund — A     **       915,993  
 
                                
*
  Schwab     40,071     shares of S&P 500 Investor Shares — A     **       746,524  
 
                                
 
  American Funds     303     shares of EuroPacific Growth Fund — A     **       10,686  
 
                                
 
  Scudder Kemper     23,698     shares of Technology Fund — A     **       266,600  
 
                                
 
  Calamos     11,776     shares of Calamos Growth Fund — A     **       623,866  
 
                                
 
  American Beacon     5,220     shares of American AAdvantage Small Cap Value Plan     **       103,937  
 
                                
 
  American Funds     53,137     shares of Income Fund of America — A     **       1,041,910  
 
                                
 
  Dreyfus     3,646     shares of Premier Core Bond — A     **       53,956  
 
                                
 
  Lord Abbott     77,704     shares of Affiliated Fund — A     **       1,148,468  
 
                                
 
  Janus     35,943     shares of Janus Advisor Capital Appreciation     **       901,096  
 
                                
*
  Fulton Financial Corp     451,732     shares of common stock     4,912,057       10,529,874  
 
                                
*
  Participant loans                 **       42  
 
                                
                     
 
                  $ 4,912,057     $ 17,487,673  
                     
 
*   Identified as a party-in-interest
 
**   Cost omitted for participant directed investments

See report of independent registered public accounting firm.

8

 

Supplemental Schedule II

Resource Bank Stock and 401(k) Savings Plan

Schedule of Reportable Transactions
Schedule H, Line 4j

EIN 54-1414459 Plan 001

 
                                     
Year Ended December 31, 2004                                    
 
Identity of   Description   Purchase   Selling   Cost of   Net gain
party involved   of asset   price   price   assets   or (loss)
 
                                    
Fulton Financial shares
  Common stock   $ 1,343,323     $ —     $ 1,343,323     $ —  
 
                                    
Fulton Financial shares
  Common stock     1,233,741       2,510,852       1,233,741       1,277,111  
 
                                    
Resource Bankshares
  Common stock     671,694       —       671,694       —  
 
                                    
Resource Bankshares
  Common stock     129,320       246,995       129,320       117,675  
         
 
                                    
 
      $ 3,378,078     $ 2,757,847     $ 3,378,078     $ 1,394,786  
         

This schedule presents transactions in any security for which the aggregate of such transactions in the security exceed five percent of plan assets at January 1, 2004.

See report of independent registered public accounting firm.

9

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the administrators of the Resource Bank Stock and 401(k) Savings Plan have duly caused this annual report to be signed by the undersigned thereunto duly authorized.

         
    RESOURCE BANK STOCK AND 401(K) SAVINGS PLAN
 
        
 
  By:   /s/ Louis J. Yoka
 
       

Date: June 27, 2005

 

 

EXHIBIT INDEX

EXHIBIT DESCRIPTION

23.1 Consent of Independent Auditors