Wilmington Trust Corporation (NYSE:WL) reported today that net
income for the 2006 third quarter was $5.2 million and earnings per
share (on a diluted basis) were $0.07 per share. The company
recorded a non-cash charge of $72.3 million during the quarter
against its valuation of affiliate money manager Roxbury Capital
Management (RCM). This non-cash charge reduced operating net income
by $41.7 million and reduced earnings per share (on a diluted
basis) by $0.60 per share. Absent the non-cash charge, operating
net income for the 2006 third quarter would have been $46.9 million
and earnings per share (on a diluted basis) would have been $0.67
per share. These amounts would have been increases of 10% and 8%,
respectively, from the year-ago third quarter. During the 2006
third quarter, RCM terminated its micro-cap fund and decided to
exit its fixed income fund by the end of 2006. These actions caused
Wilmington Trust management to reassess the carrying value (the
value assigned to the asset) of its ownership position in RCM. On
October 17, 2006, management determined that the carrying value of
RCM had declined by $72.3 million as of September 30, 2006, and
that the decline was other than temporary. The $72.3 million
decline in carrying value was recorded on the income statement as a
non-cash impairment charge for the 2006 third quarter. The
impairment charge was a non-cash item because Wilmington Trust
records the majority of RCM's carrying value on its balance sheet
as goodwill (a non-cash item). At June 30, 2006, the amount of
goodwill associated with RCM was $131.3 million. As of September
30, 2006, following the non-cash charge, the amount of goodwill
recorded for RCM was $59.0 million. Wilmington Trust's valuation of
RCM is based in large part on its ownership interest in the money
manager, which consists of 41.23% of RCM's common shares and a 30%
preferred ownership interest. Wilmington Trust's ownership interest
in RCM has not changed since the fourth quarter of 2003, and the
company said no changes were planned. Ted T. Cecala, Wilmington
Trust's chairman and chief executive officer, and David R. Gibson,
Wilmington Trust's chief financial officer, remain members of RCM's
board of managers. "Roxbury is a profitable growth-style manager.
The firm is incubating new products and it has been acquiring other
investment managers," Cecala said. "We have high regard for
Roxbury's 'boutique among boutiques' market positioning, we have a
positive outlook for the firm, and we look forward to maintaining
our relationship with the Roxbury team." In addition to reducing
net income and earnings per share, the non-cash charge increased
noninterest expense, reduced income tax expense, and reduced the
returns on average assets and equity. This report includes
comparable amounts that exclude the non-cash charge in cases where
management believes doing so provides investors with more relevant
information about business trends and the company's continuing
operations. "Absent the non-cash charge, our third quarter results
were positive and each of our three businesses recorded good
growth," Cecala said. "Net interest income rose 11%, the net
interest margin increased, advisory revenue was 10% higher, and
expense growth, excluding the non-cash charge, was less than 6%."
For the 2006 third quarter: Total loan balances were $7.76 billion,
on average, up 9% from the year-ago third quarter. On average,
commercial loan balances rose 11% and consumer loan balances rose
7% year over year. Balance sheet assets surpassed $10.5 billion for
the first time on an average balance basis. Net interest income,
before the provision for loan losses, was 11% more than for third
quarter last year. The net interest margin was 3.83%, up 3 basis
points on a linked-quarter basis, and 17 basis points year over
year. Wealth Advisory revenue rose 8%; Corporate Client revenue
increased 11%; and revenue from affiliate money manager Cramer
Rosenthal McGlynn was 35% higher than for the year-ago third
quarter. The percentage of loans with pass ratings in the internal
risk rating analysis continued to exceed 97%. Credit quality trends
remained positive overall, but one commercial loan charge-off
during the third quarter increased net charge-offs and the net
charge-off ratio, and led to an increase in the provision for loan
losses. More details on this are in the credit quality section of
this report. On an annualized basis, third quarter 2006 results
produced a return on average assets of 0.20% and a return on
average equity of 1.91%. Excluding the non-cash charge for RCM, the
return on average assets would have been 1.77% and the return on
average equity would have been 17.23%. The corresponding returns
for the third quarter of 2005 were 1.70% and 17.65%, respectively.
CASH DIVIDEND DECLARED On October 19, 2006, the Board of Directors
declared a regular quarterly cash dividend of $0.315 per share. The
quarterly dividend will be paid on November 15, 2006, to
shareholders of record on November 1, 2006. EFFICIENCY RATIO The
efficiency ratio is a measure of profitability that reflects how
much a company spends to generate revenue. Low efficiency ratios
are desirable because they indicate high profitability. The
non-cash charge, all of which was attributed to the Affiliate
Managers business segment, reduced the company's efficiency ratio
for the 2006 third quarter. There is more information about
business line profitability in the sections on each business and in
the financial reports by business segment in this report.
Efficiency ratios � 2006 Q3 � 2006 Q2 � 2005 Q3 Regional Banking �
40.02% � 39.22% � 42.86% Wealth Advisory Services � 77.64% � 79.76%
� 75.53% Corporate Client Services � 70.71% � 72.56% � 76.67%
Wilmington Trust consolidated � 95.64% � 55.29% � 56.87% Wilmington
Trust consolidated absent non-cash charge � 55.18% � --� � --�
Excluding the non-cash charge, the table above shows that
Wilmington Trust spent slightly more than 55 cents for each dollar
of revenue recorded for the 2006 third quarter, and that the cost
was lower than for prior periods. The efficiency ratio improved
from its year-ago level mainly because pre-tax income was higher
from the Regional Banking and Corporate Client Services business.
The linked-quarter improvement was due to higher levels of pre-tax
income from Wealth Advisory Services and Corporate Client Services,
as expansion investments and the provision for loan losses reduced
pre-tax income from the Regional Banking business. INVESTMENT
SECURITIES PORTFOLIO Investment securities portfolio balances for
the 2006 third quarter were $1.86 billion, on average. On a
percentage basis, the composition of the portfolio was relatively
unchanged from prior periods. As of September 30, 2006,
approximately 80% of the portfolio was invested in fixed rate
instruments. Investment securities portfolio � 2006 Q3 � 2006 Q2 �
2005 Q3 Average life (in years) � 5.39� � 6.00� � 6.21� Duration �
2.39� � 2.78� � 2.74� The average life and duration declined
because the company purchased shorter-term U.S. Treasury and
government agency securities during the 2006 third quarter and
because the downward shift in the yield curve caused prepayments to
increase. THE REGIONAL BANKING BUSINESS The Delaware Valley
region's economy remained well diversified and economic indicators
remained positive. According to the Federal Reserve Bank of
Philadelphia, economic activity over the past 12 months (as of
August 2006, the most recent data available) increased in Delaware
and was stable in Pennsylvania and New Jersey. According to the
Federal Deposit Insurance Corporation, job growth in Delaware
continued to outpace the national rate, with job losses from
consolidation in the financial sector offset by gains in the
professional, business, health, and government sectors. According
to the U.S. Department of Labor, Delaware's unemployment rate for
August 2006 was 3.7%. In comparison, the U.S. rate was 4.7%.
Against this backdrop, loan balances rose for the 22nd consecutive
quarter and were $7.76 billion, on average. This was 9% higher than
for the year-ago third quarter, and 1% higher than for the 2006
second quarter. Commercial real estate/construction loans, consumer
loans, and residential mortgage loans accounted for most of the
growth. Loans � 2006 Q3 � 2006 Q2 � 2005 Q3 Total loans outstanding
(in billions, on average) � $7.76� � $7.68� � $7.13� � � � � � � �
Delaware market loans (in billions, on average) � $5.78� � $5.73� �
$5.37� Delaware market loans as a % of total loans � 74% � 75% �
75% � � � � � � � Pennsylvania market loans (in billions, on
average) � $1.74� � $1.72� � $1.56� Pennsylvania market loans as a
% of total loans � 22% � 22% � 22% � � � � � � � Other market loans
as a % of total loans � 4% � 3% � 3% Commercial loans Commercial
loan balances were $5.23 billion, on average, for the 2006 third
quarter. This was 11% higher than for the year-ago third quarter,
and 1% higher than for the 2006 second quarter. Almost all of the
year-over-year and linked-quarter growth was in commercial real
estate/construction (CRE) loans. Commercial loans (in millions, on
average) � 2006 Q3 � 2006 Q2 � 2005 Q3 Commercial, industrial, and
agricultural loans � $2,407.7� � $2,463.5� � $2,449.2� Commercial
real estate/construction loans � 1,588.7� � 1,517.5� � 1,022.9�
Commercial mortgage loans � 1,238.5� � 1,212.8� � 1,232.8� Total
commercial loans � $5,234.9� � $5,193.8� � $4,704.9� � � � � � � �
% of commercial loans from Delaware market � 70% � 70% � 70% % of
commercial loans from Pennsylvania market � 29% � 29% � 29% % of
commercial loans from other markets � 1% � 1% � 1% CRE loan
balances, on average, increased 55% from the year-ago third
quarter, mainly because population growth and high demand for
housing continued in Delaware. The Delaware market accounted for
approximately 69% of the year-over-year CRE loan growth and the
Pennsylvania market accounted for approximately 18%. Residential
housing development loans accounted for approximately 72% of the
year-over-year CRE loan growth. According to the University of
Delaware's Center for Applied Demography, Delaware had a net gain
in population between July 2004 and July 2005 (the most recent data
available). The Center reported that Delaware's new residents
include retirees attracted by the state's relatively low property
taxes and lack of a sales tax, as well as working-age people from
New Jersey and Pennsylvania who are willing to trade longer
commuting time for lower housing prices. Mayflower Transit's 2006
relocation report ranked Delaware as the second most popular
relocation destination in the United States. On a linked-quarter
basis, the pace of CRE loan growth slowed to 5%, and the new loans
were split fairly evenly between the Delaware and Pennsylvania
markets. Residential housing development accounted for almost all
of the linked-quarter increase. The change in the pace of CRE loan
growth reflected a return to more normal market conditions. In
September, several housing industry groups, including the National
Association of Realtors, Moody's Economy.com, and multiple listing
service Trend, predicted any housing downturn in Delaware would be
short-lived and less severe than elsewhere in the United States.
For the first eight months of 2006, median sale prices for
single-family homes in Delaware rose between 6% and 12%, depending
on location. Retail loans Retail loans (consumer loans, residential
mortgage loans, and loans secured with liquid collateral) for the
2006 third quarter were $2.52 billion, on average. This was 4%
higher than for the year-ago third quarter, and 2% higher than for
the 2006 second quarter. Consumer loan and residential mortgage
loan balances accounted for the growth. Balances of loans secured
with liquid collateral declined due to lower demand from Wealth
Advisory clients. More than half of total retail loan balances for
the 2006 third quarter were consumer loans. Consumer loan balances,
on average, were 7% higher than for the year-ago third quarter and
2% higher on a linked-quarter basis. Consumer loans (in millions,
on average) � 2006 Q3 � 2006 Q2 � 2005 Q3 Home equity lines of
credit � $319.4� � $324.3� � $330.6� Indirect loans � 657.3� �
648.4� � 615.1� Credit card loans � 75.1� � 74.2� � 71.7� Other
consumer loans � 418.7� � 394.7� � 352.3� Total consumer loans �
$1,470.5� � $1,441.6� � $1,369.7� � � � � � � � % of consumer loans
from Delaware market � 88% � 88% � 88% % of consumer loans from
Pennsylvania market � 7% � 6% � 6% % of consumer loans from other
markets � 5% � 6% � 6% The category of consumer loans recorded as
"other consumer loans" accounted for the majority of the growth in
consumer loan balances. This category comprises a variety of
installment loans to individuals, most of which are fixed rate
loans, and includes home equity loans. Home equity loan balances
increased, while home equity lines of credit decreased, as client
demand for fixed rate products increased. Indirect loans, the
majority of which are for late-model used cars, also contributed to
the increase in consumer loan balances. The percentage of indirect
loans from the New Jersey and Pennsylvania markets increased
substantially from their year-ago volumes, reflecting the company's
expansion in those areas. In the residential mortgage portfolio,
balances rose but origination volumes declined, in large part
because: Although the company sells most new fixed rate residential
mortgage production into the secondary market, mortgages that
qualify as low income mortgages for Community Reinvestment Act
(CRA) purposes are retained in the portfolio. CRA loans originated
during the 2006 third quarter were nearly twice as high as the
year-ago third quarter volumes. The average loan amount originated
was 12% higher for the 2006 third quarter than for the year-ago
third quarter. The pace of refinancings and paydowns slowed.
Seasonal cyclicality causes the number of loans originated to
fluctuate from period to period. Residential mortgages � 2006 Q3 �
2006 Q2 � 2005 Q3 Balances (in millions, on average) � $507.8� �
$484.2� � $443.8� Origination volumes (in millions) � $58.6� �
$67.7� � $70.1� Origination units � 239� � 288� � 321� At September
30, 2006, approximately 74% of the residential mortgage portfolio
consisted of fixed rate mortgages, unchanged from September 30,
2005, and June 30, 2006. Core deposits Core deposits (deposits from
clients) for the 2006 third quarter were $4.95 billion, on average,
up 2% from the year-ago third quarter and up slightly from the 2006
second quarter. Certificate of deposit (CD) and interest bearing
demand deposit balances rose, but these increases were offset by a
decline in noninterest bearing demand deposit balances. The
majority of core deposits continued to come from Delaware clients.
Total core deposits (on average) � 2006 Q3 � 2006 Q2 � 2005 Q3 From
Delaware clients � 94% � 94% � 94% From Pennsylvania clients � 5% �
5% � 5% From other markets � 1% � 1% � 1% In December 2005, the
company began to shift, or sweep, portions of commercial
noninterest bearing demand deposits into money market deposits.
This practice lowers deposit reserve requirements mandated by the
Federal Reserve, and ultimately reduces the company's borrowing
costs and uninvested cash balances. These sweeps accounted for
approximately $185 million of the $279 million year-over-year
decline in noninterest bearing demand deposits. CDs in amounts
under $100,000 were 20% higher on a year-over-year basis, and local
CDs in amounts of $100,000 and more were 34% higher. Since local
CDs are client deposits, they are recorded as core deposits, not
brokered deposits. Commercial banking clients in the Delaware
Valley and local municipalities, which frequently use these CDs to
generate returns on their excess cash, account for the majority of
local CD balances. Local CDs ? $100,000 by client category � 2006
Q3 � 2006 Q2 � 2005 Q3 Consumer banking clients � 73% � 74% � 66%
DE commercial banking clients � 10% � 12% � 11% PA commercial
banking clients � 10% � 7% � 6% Wealth Advisory Services clients �
7% � 7% � 16% Corporate Client Services clients � --� � --� � 1%
Deposits recorded as national CDs of $100,000 or more (national
CDs) are brokered deposits, not client deposits. Since the company
gathers deposits mainly in Delaware, but makes loans in four
states, national CDs are a cost-effective way to fund loan growth
without incurring the expense of building and operating a
large-scale branch office network outside Delaware. Credit quality
The percentage of loans outstanding with pass ratings from the
internal risk rating analysis exceeded 97% for the fourth
consecutive quarter, and was higher year-over-year and on a
linked-quarter basis. While credit quality trends remained positive
overall, net charge-offs and the net charge-off ratio were higher
than in prior quarters, primarily because of one loan that was
charged-off during the 2006 third quarter. This loan, which was to
a Delaware Valley-based client in the dining and entertainment
industry, had been recorded in renegotiated loans since the fourth
quarter of 2004. As a result of this charge-off, the percentage of
loans rated doubtful in the internal risk rating analysis dropped
to zero. Renegotiated loans also fell to zero, because this loan
was charged off, and the other loan in the category was repaid in
July 2006. The net charge-off ratio for the 2006 third quarter was
9 basis points. This brought the net charge-off ratio on an
annualized basis to 22 basis points, still below historical levels.
Between 1995 and 2005, the annual net charge-off ratio ranged from
24 to 44 basis points. Nonaccruing loans and loans past due 90 days
or more were considerably lower than for the year-ago third
quarter, but were higher on a linked-quarter basis. Fewer than 10
loans, most of which were commercial loans, accounted for the
changes. None of the loans classified as nonaccruing or past due 90
days during the 2006 third quarter were real-estate related. The
amount recorded as other real estate owned (OREO) consists of an
agricultural parcel in New Jersey. While OREO was higher
year-over-year, the amount was unchanged from the 2006 second
quarter. The 2006 third quarter provision for loan losses was $6.6
million, compared with $2.9 million for the year-ago third quarter,
and $4.2 million for the 2006 second quarter. The reserve for loan
losses was $93.6 million at September 30, 2006, which was slightly
higher year over year and slightly lower on a linked-quarter basis.
The loan loss reserve ratio for the 2006 third quarter was 1.20%,
compared with 1.28% for the year-ago third quarter, and 1.22% for
the 2006 second quarter. Regional Banking profitability The
provision for loan losses and higher expenses due to expansion
activities offset increases in net interest income, causing a
slight uptick in the efficiency ratio for the Regional Banking
business. Efficiency ratios � 2006 Q3 � 2006 Q2 � 2005 Q3 Regional
Banking � 40.02% � 39.22% � 42.86% NET INTEREST MARGIN For the 2006
third quarter, assets continued to reprice faster than liabilities
and deposit pricing pressure, other than for CDs, remained
relatively modest. In addition, the third quarter was the first
full quarter to reflect the effects of the increase in short-term
interest rates that the Federal Reserve made on June 29, 2006.
These factors contributed to the increase in the net interest
margin, which, at 3.83%, was 17 basis points higher than for the
year-ago third quarter, and 3 basis points higher than for the 2006
second quarter. Net interest margin � 2006 Q3 � 2006 Q2 � 2005 Q3
Net interest margin � 3.83% � 3.80% � 3.66% Basis point (bps)
increases in yields/rates � 9/30/06 vs. 6/30/06 � 9/30/06 vs.
9/30/05 Total earning assets � 25 bps � 128 bps Funds to support
earning assets � 22 bps � 111 bps Average balance increases �
9/30/06 vs. 6/30/06 � 9/30/06 vs. 9/30/05 Total earning assets � 1%
� 6% Funds to support earning assets � 1% � 6% The company�s
floating rate loan portfolio is matched closely with floating rate
funding. This helps to minimize changes in the net interest margin
due to changes in market interest rates. As of September 30, 2006:
Approximately 75% of total loans outstanding were floating rate
loans. Approximately 81% of floating rate loans were commercial
loans, most of which reprice within 30 to 45 days of a rate change.
The pricing on approximately 62% of commercial floating rate loans
was tied to a prime lending rate of 8.25%. The pricing on
approximately 34% of commercial floating rate loans was tied to the
30-day London Interbank Offered Rate (Libor) of 5.32%. As of �
Commercial floating rate loans repricing in ? 30 days � National
CDs maturing ? 90 days � Short-term borrowings maturing ? 90 days
9/30/06� � 93% � 74% � 98% 6/30/06� � 92% � 59% � 91% 9/30/05� �
92% � 91% � 90% Changes over the past 12 months in the percentage
of national CDs maturing in 90 days or less reflected the flat
yield curve. With little difference between 90-day rates and
longer-term rates, the company opted to purchase the longer-term
instruments. THE WEALTH ADVISORY SERVICES BUSINESS Wealth Advisory
Services (WAS) revenue for the 2006 third quarter was $47.1
million. This was 8% higher than for the year-ago third quarter,
and slightly more than for the 2006 second quarter. Strong growth
in revenue from planning and other services, plus higher mutual
fund revenue, accounted for the year-over-year increase. The
linked-quarter increase came from mutual fund revenue. Most mutual
fund fees are based on money market funds. Revenue from trust and
investment advisory services was essentially unchanged from the
prior-year and prior-quarter levels, as business development was
offset by lackluster performance in the financial markets. As of
September 30, 2006, approximately 48% of assets managed for WAS
clients were invested in equities, and approximately 28% were
invested in fixed income instruments. Although markets rallied in
September, the timing occurred too late in the quarter to have much
of an effect. Revenue from planning and other services for the 2006
third quarter was $8.8 million. This was 38% higher than for the
year-ago third quarter, and down slightly from the 2006 second
quarter. Planning revenue was affected mainly by activity at Grant
Tani Barash & Altman (GTBA), the company's West Coast provider
of business management and family office services. Since GTBA's
fees are based on the amount of income its clients earn, revenue
from GTBA can fluctuate up or down from period to period. Business
development remained solid. Year-over-year sales increases were
recorded by the California, Maryland, and Delaware markets. Sales
attributed to Delaware include business from clients in other
states whose accounts are located in Delaware in order to benefit
from trust, tax, and legal advantages not available for trusts
governed by the laws of other states. On a linked-quarter basis,
sales increases were recorded by the California, Florida, Maryland,
and Pennsylvania markets. Wealth Advisory Services profitability
Pretax income from WAS for the 2006 third quarter was the same as
for the year-ago third quarter, but expenses were higher
year-over-year because of expansion activities, including the East
Coast launch of the Wilmington Family Office practice and the
opening of new offices in Pennsylvania and New Jersey. This led to
a modest decline, year over year, in the efficiency ratio. On a
linked-quarter basis, incentive and employment benefits expenses
were lower, which improved the efficiency ratio. Efficiency ratios
� 2006 Q3 � 2006 Q2 � 2005 Q3 Wealth Advisory Services � 77.64% �
79.76% � 75.53% THE CORPORATE CLIENT SERVICES BUSINESS Corporate
Client Services (CCS) revenue for the 2006 third quarter was $21.1
million. This was 10% more than for the year-ago third quarter, and
slightly higher than for the 2006 second quarter. Fees from entity
management, retirement services, and investment and cash management
services rose on a year-over-year as well as a linked-quarter
basis, but these increases were offset by flatness in capital
markets revenue. Capital markets revenue for the 2006 third quarter
was $8.2 million, down slightly from the year-ago and prior quarter
levels. Weakness in U.S. demand for asset-backed securitizations
continued to offset growth in defeasance services (transactions in
which one type of collateral is exchanged for another) and
insurance premium financing. Entity management revenue for the 2006
third quarter was $6.8 million, up 19% from the year-ago third
quarter and 3% on a linked-quarter basis. Business development in
Europe and the Cayman Islands accounted for most of the growth. In
Europe, business activity reflected demand for independent
directorships and administrative services, particularly for
asset-backed securitizations in Ireland, England, and Greece.
Corporate retirement services for the 2006 third quarter was $3.4
million, up 6% from the year-ago as well as linked quarter, mainly
because clients added funds to their retirement plans. While most
CCS fees are transaction-based, approximately 55% of retirement
services fees are based on the valuation of retirement plan assets
for which the company serves as custodian. CCS investment and cash
management revenue for the 2006 third quarter was $2.7 million.
This was 42% higher than for the year-ago third quarter, and 8%
more than for the 2006 second quarter. These increases resulted
from higher client demand and more proactive efforts to market
these services. Approximately 30% of the 2006 third quarter
investment/cash management revenue was tied to the valuations of
domestic fixed income instruments, primarily asset-backed, U.S.
Treasury, corporate, and other types of investment grade
securities. The remainder was based on money market mutual fund
balances. Corporate Client Services profitability On a
year-over-year as well as linked-quarter basis, net interest and
noninterest income growth outpaced expense growth, which caused the
CCS efficiency ratio to improve. Efficiency ratios � 2006 Q3 � 2006
Q2 � 2005 Q3 Corporate Client Services � 70.71% � 72.56% � 76.67%
AFFILIATE MONEY MANAGERS Assets under management at value-style
affiliate Cramer Rosenthal McGlynn (CRM) were $9.80 billion at
September 30, 2006. This was an increase of $1.30 billion, or 15%,
from the amount reported at the end of September 2005, and $392.5
million, or 4%, more than at June 30, 2006. Asset inflows,
particularly in the mid-cap value product, and market appreciation
accounted for the growth. Revenue from CRM for the 2006 third
quarter was $4.6 million. This was 35% more than for the year-ago
third quarter, and reflected the increase in managed assets. On a
linked-quarter basis, revenue from CRM declined opposite the
increase in managed assets, mainly because the revenue recorded for
the 2006 second quarter included higher levels of hedge fund
performance fees. Affiliate managers (in millions) � 2006 Q3 � 2006
Q2 � 2005 Q3 Managed assets at Cramer Rosenthal McGlynn � $9,784.5�
� $9,392.0� � $8,480.5� Revenue from Cramer Rosenthal McGlynn �
$4.6� � $5.5� � $3.4� � � � � � � � Managed assets at Roxbury
Capital Management � $3,122.9� � $3,253.3� � $3,246.6� Revenue from
Roxbury Capital Management � --� � $0.3� � $0.3� Growth-style
affiliate Roxbury Capital Management (RCM) terminated its micro-cap
product during the 2006 third quarter, which reduced managed asset
levels and revenue. In addition, costs associated with the fund
termination caused expenses to be higher than usual. As a result,
RCM's revenue contribution for the quarter was negative and a
nominal loss was recorded. OTHER INCOME ITEMS Other noninterest
income was lower on a year-over-year basis because the amount
reported for the year-ago third quarter included approximately $2.0
million of gains from executive life insurance policies. On a
linked-quarter basis, other noninterest income was lower mainly
because the amount recorded for the 2006 second quarter included
nonrecurring income of approximately $1.0 million from a gain on
the sale of real estate. NONINTEREST EXPENSES Noninterest expenses
for the 2006 third quarter were $170.9 million. The non-cash charge
for RCM accounted for $72.3 million of this amount. Excluding the
non-cash charge, noninterest expenses were $98.6 million. This was
6% more than for the year-ago third quarter, and $300,000 more than
for the 2006 second quarter. Expansion initiatives and additions to
staff were the primary reasons for the increases. In the past 12
months, the company has: Launched the Wilmington Family Office
practice on the East Coast. Opened new offices in Pennsylvania, New
Jersey, Connecticut, and Frankfurt, Germany. Expanded existing
offices in Delaware, Pennsylvania, Maryland, and New York. Acquired
PwC Corporate Services (Cayman). Invested in technology and added
staff to expand services that support collateralized debt
obligations. At September 30, 2006, there were 2,520 staff members.
This was 81 more than at the end of the year-ago third quarter, and
5 more than at the end of the 2006 second quarter. Staffing-related
costs continued to account for the majority of noninterest
expenses, excluding the non-cash charge. Staffing-related expenses
(dollars in millions) � 2006 Q3 � 2006 Q2 � 2005 Q3 Full-time
equivalent staff members � 2,520� � 2,515� � 2,439�
Staffing-related expenses � $59.8� � $60.0� � $56.3� Among
staffing-related expenses, increased salary and wage expenses were
offset by accruals for incentives and employment benefits expenses.
Effective January 1, 2006, amounts reported for incentive and bonus
expense were adjusted to reflect adoption of the retrospective
method of accounting for stock-based compensation expense, in
accordance with Statement of Financial Accounting Standards No. 123
(revised). Stock-based compensation expense is included in
incentive and bonus expense. Incentives and bonuses (in millions) �
2006 Q3 � 2006 Q2 � 2006 Q1 � 2005 Q4 � 2005 Q3 Stock option
expense � $1.7� � $1.4� � $2.0� � $1.8� � $1.7� Total incentives
and bonuses � $8.9� � $10.3� � $10.3� � $8.8� � $9.3� CAPITAL
RATIOS During a review of risk-based capital calculations, the
company discovered that the total risk-based capital ratios
reported as of December 31, 2005; March 31, 2006; and June 30,
2006, inadvertently included portions of subordinated long-term
debt that should have been excluded due to their approaching
maturity. The corrected ratios appear in the table below. The total
risk-based capital ratio was the only capital ratio affected. All
of the company's capital ratios remained well above the regulatory
minimum to be considered a well capitalized institution.
Corrections to the total risk-based capital ratio At June 30, 2006
� At March 31, 2006 � At December 31, 2005 � Reported ratio �
Corrected ratio � Reported ratio � Corrected ratio � Reported ratio
� Corrected ratio Total risk-based capital � 12.66% � 11.80% �
12.72% � 12.21% � 12.36% � 12.02% Regulatory minimums � Adequately
capitalized minimum � Well capitalized minimum Total risk-based
capital � 8% � 10% Capital ratios for the three months ended
September 30, 2006, and the preceding four quarters are included in
the supplemental information section of this release. SHARE
REPURCHASES During the 2006 third quarter, the company spent $22.2
million to repurchase 504,515 of its shares. The average price per
share was $44.08. This brought the total number of shares
repurchased under the current 8-million-share program, which
commenced in April 2002, to 1,350,077, leaving 6,649,923 shares
available for repurchase. OUTLOOK FOR THE REMAINDER OF 2006
Commenting on the outlook for the remainder of 2006, Cecala said:
"Our focus on building and strengthening client relationships, plus
the expansion investments we have made, have generated strong
momentum in each of our businesses for the first nine months of
2006. We expect that momentum to continue. "Economic indicators
remain positive overall for the Delaware Valley region, which will
benefit the Regional Banking business. "Population growth in
Delaware continues to drive housing demand. The housing market has
slowed somewhat, but the level of activity remains within what has
been considered a historically normal range. Published reports
indicate that Delaware's housing market is not expected to
experience as sharp a decline as in other parts of the country.
"Core deposit pricing tends to lag behind the Federal Open Market
Committee interest rate changes. Absent any additional increases,
we expect core deposit pricing to catch up, which will cause the
net interest margin to decline modestly. "In terms of credit
quality, more than 97% of our loans outstanding have pass ratings.
We expect the full-year provision for loan losses to be in line
with the levels we have seen over the past 10 years, which have
ranged from $12 million to $22 million. "As the percentage of loans
generated outside of the Delaware market continues to increase, we
will continue to use national CDs to help fund earning asset growth
� and to help us manage expense growth and interest rate risk. "In
Wealth Advisory Services, we expect to see higher levels of
planning revenue due to the expansion of our family office
capabilities. The majority of Wealth Advisory revenue, however, is
tied to financial market levels. We base trust and investment
advisory fees on market levels as of the last business day of each
month, so changes in revenue from these services may not correlate
directly with changes in financial markets. "Business development
continues to be solid in Corporate Client Services, especially in
Europe and the Caribbean. To further grow this business, we are
considering small acquisitions and looking for opportunities to
develop new products. "Asset inflows continue at value-style
affiliate Cramer Rosenthal McGlynn (CRM). Revenue from CRM will
reflect financial market levels. "Growth-style affiliate Roxbury
Capital Management (RCM) continues to be profitable. The changes
RCM made during the third quarter should have a positive effect on
the firm's continuing operations. "Expense growth will reflect the
expansion investments we have made this year in each of our
businesses, and should approximate 7% for the full year, plus the
$72.3 million impairment expense." CONFERENCE CALL Management will
discuss the 2006 third quarter results and outlook for the future
in a conference call today at 10:00 a.m. (EDT). Supporting
materials, financial statements, and audio streaming will be
available at www.wilmingtontrust.com. To access the call from
within the United States, dial (877) 258-8842 and enter PIN
7811598. From outside the United States, dial (973) 582-2839 and
enter PIN 7811598. A rebroadcast of the call will be available from
12:30 p.m. (EDT) today until 5:00 p.m. (EDT) on Friday, October 27,
2006, by calling (877) 519-4471 inside the United States or (973)
341-3080 from outside the United States. Use PIN 7811598 to access
the rebroadcast. FORWARD-LOOKING STATEMENTS This presentation
contains forward-looking statements that reflect our current
expectations about our future performance. These statements rely on
a number of assumptions and estimates and are subject to various
risks and uncertainties that could cause our actual results to
differ from our expectations. Factors that could affect our future
financial results include, among other things, changes in national
or regional economic conditions; changes in market interest rates;
significant changes in banking laws or regulations; increased
competition in our businesses; higher-than-expected credit losses;
the effects of acquisitions; the effects of integrating acquired
entities; a substantial and permanent loss of either client
accounts and/or assets under management at Wilmington Trust and/or
our affiliate money managers, Cramer Rosenthal McGlynn and Roxbury
Capital Management; unanticipated changes in regulatory, judicial,
or legislative tax treatment of business transactions; and economic
uncertainty created by unrest in other parts of the world. ABOUT
WILMINGTON TRUST Wilmington Trust Corporation (NYSE:WL) is a
financial services holding company that provides Regional Banking
services throughout the Delaware Valley region, Wealth Advisory
Services for high-net-worth clients in 22 countries, and Corporate
Client Services for institutional clients in 81 countries. Its
wholly owned bank subsidiary, Wilmington Trust Company, which was
founded in 1903, is one of the largest personal trust providers in
the United States and the leading retail and commercial bank in
Delaware. Wilmington Trust Corporation and its affiliates have
offices in California, Connecticut, Delaware, Florida, Georgia,
Maryland, Nevada, New Jersey, New York, Pennsylvania, South
Carolina, Vermont, the Cayman Islands, the Channel Islands, London,
Dublin, and Frankfurt. For more information, visit
www.wilmingtontrust.com. WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the nine months ended September 30, 2006
HIGHLIGHTS � Three Months Ended Nine Months Ended � Sept. 30, Sept.
30, % Sept. 30, Sept. 30, % � � � � � � 2006� � 2005� � Change �
2006� � 2005� � Change OPERATING RESULTS (in millions) � Net
interest income $ 93.0� $ 83.7� 11.1� $ 270.7� $ 241.4� 12.1�
Provision for loan losses (6.6) (2.9) 127.6� (14.8) (9.8) 51.0�
Noninterest income 84.6� 79.7� 6.1� 253.6� 233.5� 8.6� Noninterest
expense 170.9� 93.5� 82.8� 366.8� 275.6� 33.1� Net income 5.2�
42.8� (87.9) 96.3� 120.5� (20.1) � PER SHARE DATA Basic net income
$ 0.08� $ 0.63� (87.3) $ 1.41� $ 1.78� (20.8) Diluted net income
0.07� 0.62� (88.7) 1.38� 1.76� (21.6) Dividends paid 0.315� 0.30�
5.0� 0.93� 0.885� 5.1� Book value at period end 15.55� 14.34� 8.4�
15.55� 14.34� 8.4� Closing price at period end 44.55� 36.45� 22.2�
44.55� 36.45� 22.2� Market range: High 45.61� 39.36� 15.9� 45.61�
39.36� 15.9� Low 40.52� 35.35� 14.6� 38.54� 33.01� 16.8� � AVERAGE
SHARES OUTSTANDING (in thousands) Basic 68,647� 67,788� 1.3�
68,399� 67,630� 1.1� Diluted 69,933� 68,699� 1.8� 69,716� 68,440�
1.9� � AVERAGE BALANCE SHEET (in millions) � Investment portfolio $
1,857.0� $ 1,930.0� (3.8) $ 1,851.2� $ 1,866.3� (0.8) Loans
7,759.3� 7,128.4� 8.9� 7,628.0� 6,946.8� 9.8� Earning assets
9,645.1� 9,111.3� 5.9� 9,501.0� 8,844.6� 7.4� Core deposits
4,950.0� 4,853.0� 2.0� 4,912.6� 4,817.4� 2.0� Stockholders' equity
1,081.7� 962.2� 12.4� 1,056.3� 937.9� 12.6� � � STATISTICS AND
RATIOS (net income annualized) � Return on average stockholders'
equity 1.91% 17.65% (89.2) 12.19% 17.18% (29.0) Return on average
assets 0.20% 1.70% (88.2) 1.24% 1.66% (25.3) Net interest margin
(taxable equivalent) 3.83% 3.66% 4.6� 3.80% 3.65% 4.1� Dividend
payout ratio 415.38% 47.20% N/M� 65.94% 49.63% 32.9� Full-time
equivalent headcount 2,520� 2,439� 3.3� 2,520� 2,439� 3.3� Prior
period numbers have been adjusted throughout this report for the
retrospective adoption of stock-based compensation accounting.
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
nine months ended September 30, 2006 � QUARTERLY INCOME STATEMENT �
Three Months Ended Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, %
Change From: Prior Prior (in millions) 2006� 2006� 2006� 2005�
2005� Quarter Year NET INTEREST INCOME Interest income $175.0�
$165.0� $152.8� $146.2� $134.9� 6.1� 29.7� Interest expense 82.0�
74.6� 65.5� 58.7� 51.2� 9.9� 60.2� Net interest income 93.0� 90.4�
87.3� 87.5� 83.7� 2.9� 11.1� Provision for loan losses (6.6) (4.2)
(4.0) (2.0) (2.9) 57.1� 127.6� Net interest income after provision
for loan losses 86.4� 86.2� 83.3� 85.5� 80.8� 0.2� 6.9� NONINTEREST
INCOME Advisory fees: Wealth Advisory Services Trust and investment
advisory fees 33.0� 33.1� 34.3� 31.1� 32.7� (0.3) 0.9� Mutual fund
fees 5.3� 5.0� 4.7� 4.5� 4.4� 6.0� 20.5� Planning and other
services 8.8� 8.9� 7.3� 7.1� 6.4� (1.1) 37.5� Total Wealth Advisory
Services 47.1� 47.0� 46.3� 42.7� 43.5� 0.2� 8.3� Corporate Client
Services Capital markets services 8.2� 8.5� 8.7� 8.9� 8.3� (3.5)
(1.2) Entity management services 6.8� 6.6� 6.5� 6.1� 5.7� 3.0�
19.3� Retirement services 3.4� 3.2� 3.1� 3.3� 3.2� 6.2� 6.2�
Investment / cash management services 2.7� 2.5� 2.1� 2.3� 1.9� 8.0�
42.1� Total Corporate Client Services 21.1� 20.8� 20.4� 20.6� 19.1�
1.4� 10.5� Cramer Rosenthal McGlynn 4.6� 5.5� 4.0� 4.3� 3.4� (16.4)
35.3� Roxbury Capital Management ----� 0.3� 0.9� 0.6� 0.3� (100.0)
(100.0) Advisory fees 72.8� 73.6� 71.6� 68.2� 66.3� (1.1) 9.8�
Amortization of affiliate other intangibles (1.1) (1.0) (1.0) (1.0)
(1.0) 10.0� 10.0� Advisory fees after amortization of affiliate
other intangibles 71.7� 72.6� 70.6� 67.2� 65.3� (1.2) 9.8� Service
charges on deposit accounts 7.3� 7.0� 6.9� 7.3� 7.4� 4.3� (1.4)
Other noninterest income 5.5� 6.8� 5.2� 5.3� 7.0� (19.1) (21.4)
Securities gains/(losses) 0.1� (0.1) ----� ----� ----� ----� ----�
Total noninterest income 84.6� 86.3� 82.7� 79.8� 79.7� (2.0) 6.1�
Net interest and noninterest income 171.0� 172.5� 166.0� 165.3�
160.5� (0.9) 6.5� NONINTEREST EXPENSE Salaries and wages 39.5�
37.8� 36.9� 36.4� 35.4� 4.5� 11.6� Incentives and bonuses 8.9�
10.3� 10.3� 8.8� 9.3� (13.6) (4.3) Employment benefits 11.4� 11.9�
13.5� 11.5� 11.6� (4.2) (1.7) Net occupancy 6.7� 6.3� 5.9� 6.1�
5.5� 6.3� 21.8� Furniture, equipment, and supplies 9.2� 9.9� 9.0�
8.4� 8.7� (7.1) 5.7� Other noninterest expense: Advertising and
contributions 2.2� 2.1� 1.9� 2.5� 2.4� 4.8� (8.3) Servicing and
consulting fees 2.8� 2.4� 2.3� 2.9� 2.3� 16.7� 21.7� Subadvisor
expense 2.7� 2.9� 2.8� 2.5� 2.7� (6.9) ----� Travel, entertainment,
and training 2.5� 2.3� 2.2� 2.6� 2.6� 8.7� (3.8) Originating and
processing fees 2.8� 2.4� 2.8� 2.8� 2.8� 16.7� ----� Other expense
9.9� 10.0� 9.9� 10.0� 10.2� (1.0) (2.9) Total other noninterest
expense 22.9� 22.1� 21.9� 23.3� 23.0� 3.6� (0.4) Total noninterest
expense before impairment 98.6� 98.3� 97.5� 94.5� 93.5� 0.3� 5.5�
Impairment write-down 72.3� ----� ----� ----� ----� ----� ----�
Total noninterest expense 170.9� 98.3� 97.5� 94.5� 93.5� 73.9�
82.8� Income before income taxes and minority interest 0.1� 74.2�
68.5� 70.8� 67.0� (99.9) (99.9) Applicable income taxes (5.0) 27.2�
24.3� 24.3� 24.1� ----� ----� Net income before minority interest
5.1� 47.0� 44.2� 46.5� 42.9� (89.1) (88.1) Minority interest (0.1)
0.1� 0.1� ----� 0.1� ----� ----� Net income $5.2� $46.9� $44.1�
$46.5� $42.8� (88.9) (87.9) WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the nine months ended September 30, 2006 �
YEAR-TO-DATE INCOME STATEMENT � Nine Months Ended � Sept. 30, Sept.
30, % (in millions) � 2006� � 2005� � Change NET INTEREST INCOME
Interest income $ 492.9� $ 370.4� 33.1� Interest expense � � 222.2�
� � 129.0� 72.2� Net interest income 270.7� 241.4� 12.1� Provision
for loan losses � � (14.8) � � (9.8) 51.0� Net interest income
after provision for loan losses � 255.9� � � 231.6� 10.5�
NONINTEREST INCOME Advisory fees: Wealth Advisory Services Trust
and investment advisory fees 100.4� 92.9� 8.1� Mutual fund fees
15.0� 13.2� 13.6� Planning and other services � � 25.1� � � 23.3�
7.7� Total Wealth Advisory Services � 140.5� � � 129.4� 8.6�
Corporate Client Services Capital markets services 25.4� 23.7� 7.2�
Entity management services 19.8� 17.5� 13.1� Retirement services
9.8� 9.1� 7.7� Investment / cash management services � � 7.3� � �
5.4� 35.2� Total Corporate Client Services � 62.3� � � 55.7� 11.8�
Cramer Rosenthal McGlynn 14.1� 11.8� 19.5� Roxbury Capital
Management � � 1.1� � � 0.8� 37.5� Advisory fees 218.0� 197.7�
10.3� Amortization of affiliate other intangibles � � (3.1) � �
(3.1) ----� Advisory fees after amortization of affiliate other
intangibles � 214.9� � � 194.6� 10.4� Service charges on deposit
accounts 21.1� 20.9� 1.0� Other noninterest income 17.6� 17.2� 2.3�
Securities gains � � ----� � � 0.8� (100.0) Total noninterest
income � 253.6� � � 233.5� 8.6� Net interest and noninterest income
� 509.5� � � 465.1� 9.5� NONINTEREST EXPENSE Salaries and wages
114.1� 103.3� 10.5� Incentives and bonuses 29.5� 29.1� 1.4�
Employment benefits 36.8� 35.8� 2.8� Net occupancy 19.0� 16.3�
16.6� Furniture, equipment, and supplies 28.2� 26.3� 7.2� Other
noninterest expense: Advertising and contributions 6.2� 6.6� (6.1)
Servicing and consulting fees 7.5� 7.3� 2.7� Subadvisor expense
8.4� 6.9� 21.7� Travel, entertainment, and training 7.0� 6.2� 12.9�
Originating and processing fees 8.0� 7.7� 3.9� Other expense � �
29.8� � � 30.1� (1.0) Total other noninterest expense � 66.9� � �
64.8� 3.2� Total noninterest expense before impairment 294.5�
275.6� 6.9� Impairment write-down � 72.3� � � ----� ----� Total
noninterest expense � 366.8� � � 275.6� 33.1� Income before income
taxes and minority interest 142.7� 189.5� (24.7) Applicable income
taxes � � 46.3� � � 68.8� (32.7) Net income before minority
interest 96.4� 120.7� (20.1) Minority interest � � 0.1� � � 0.2�
(50.0) Net income $ 96.3� � $ 120.5� (20.1) WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2006 � COMPARISON OF RESULTS WITH AND WITHOUT THE
IMPAIRMENT WRITE-DOWN � � Three months ended September 30, 2006
Nine months ended September 30, 2006 With Without With Without
impairment impairment Impairment impairment impairment Impairment
OPERATING RESULTS (in millions) Net interest income $ 93.0� $ 93.0�
$ ----� $ 270.7� $ 270.7� $ ----� Provision for loan losses (6.6)
(6.6) ----� (14.8) (14.8) ----� Noninterest income 84.6� 84.6�
----� 253.6� 253.6� ----� Noninterest expense � � � 170.9� � �
98.6� � � 72.3� � 366.8� � � 294.5� � � 72.3� Income before taxes
and minority interest 0.1� 72.4� (72.3) 142.7� 215.0� (72.3)
Applicable income taxes � � � (5.0) � � 25.6� � � (30.6) � 46.3� �
� 76.9� � � (30.6) Net income before minority interest 5.1� 46.8�
(41.7) 96.4� 138.1� (41.7) Minority interest � � � (0.1) � � (0.1)
� � ----� � 0.1� � � 0.1� � � ----� Net income $ 5.2� � $ 46.9� � $
(41.7) $ 96.3� � $ 138.0� � $ (41.7) � � PER SHARE DATA Diluted
shares outstanding (in millions) 69.9� 69.9� ----� 69.7� 69.7�
----� Per-share earnings $ 0.07� $ 0.67� $ (0.60) $ 1.38� $ 1.98� $
(0.60) � � STATISTICS AND RATIOS (dollars in millions) Total
assets, on average $ 10,522.2� $ 10,523.0� $ (0.8) $ 10,354.4� $
10,354.6� $ (0.2) Stockholders' equity, on average 1,081.7�
1,082.2� (0.5) 1,056.3� 1,056.4� (0.1) Return on average assets
0.20% 1.77% (1.57)% 1.24% 1.78% (0.54)% Return on equity 1.91%
17.23% (15.32)% 12.19% 17.47% (5.28)% � Net interest before
provision and noninterest income $ 177.6� $ 177.6� $ ----� $ 524.3�
$ 524.3� $ ----� Tax equivalent interest income � � � 1.1� � � 1.1�
� � ----� � 3.2� � � 3.2� � � ----� $ 178.7� $ 178.7� $ ----� $
527.5� $ 527.5� $ ----� Noninterest expense $ (170.9) � $ (98.6) �
$ (72.3) $ (366.8) � $ (294.5) � $ (72.3) Efficiency ratio 95.64%
55.18% 40.46% 69.54% 55.83% 13.71% WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the nine months ended September 30,
2006 � STATEMENT OF CONDITION � % Change From: Sept. 30, June 30,
Mar. 31, Dec. 31, Sept. 30, Prior Prior (in millions) � 2006� �
2006� � 2006� � 2005� � 2005� Quarter Year ASSETS Cash and due from
banks $ 268.4� $ 258.5� $ 219.2� $ 264.0� $ 286.8� 3.8� (6.4)
Federal funds sold and securities purchased under agreements to
resell � � 38.4� � 66.7� � 44.9� � 14.3� � 64.0� (42.4) (40.0)
Investment securities: U.S. Treasury 230.8� 181.4� 136.8� 161.1�
136.8� 27.2� 68.7� Government agencies 533.0� 416.5� 394.5� 410.8�
389.4� 28.0� 36.9� Obligations of state and political subdivisions
9.4� 10.4� 10.5� 11.0� 11.2� (9.6) (16.1) Preferred stock 91.0�
88.1� 90.2� 90.6� 91.1� 3.3� (0.1) Mortgage-backed securities
726.8� 751.0� 806.4� 852.1� 913.9� (3.2) (20.5) Other securities �
391.3� � 389.8� � 401.9� � 403.2� � 384.6� 0.4� 1.7� Total
investment securities 1,982.3� � 1,837.2� � 1,840.3� � 1,928.8� �
1,927.0� 7.9� 2.9� Loans: Commercial, financial and agricultural
2,378.1� 2,445.5� 2,445.9� 2,461.3� 2,465.9� (2.8) (3.6) Real
estate-construction 1,610.9� 1,574.3� 1,411.9� 1,233.9� 1,098.9�
2.3� 46.6� Mortgage-commercial � 1,254.5� � 1,222.8� � 1,245.4� �
1,223.9� � 1,239.4� 2.6� 1.2� Total commercial loans 5,243.5� �
5,242.6� � 5,103.2� � 4,919.1� � 4,804.2� ----� 9.1�
Mortgage-residential 518.7� 503.0� 473.4� 455.5� 450.9� 3.1� 15.0�
Consumer 1,489.7� 1,452.4� 1,408.5� 1,438.3� 1,414.8� 2.6� 5.3�
Secured with liquid collateral � 528.3� � 557.2� � 553.9� � 584.8�
� 622.9� (5.2) (15.2) Total retail loans 2,536.7� � 2,512.6� �
2,435.8� � 2,478.6� � 2,488.6� 1.0� 1.9� Total loans net of
unearned income 7,780.2� 7,755.2� 7,539.0� 7,397.7� 7,292.8� 0.3�
6.7� Reserve for loan losses � (93.6) � (94.3) � (93.6) � (91.4) �
(93.4) (0.7) 0.2� Net loans 7,686.6� � 7,660.9� � 7,445.4� �
7,306.3� � 7,199.4� 0.3� 6.8� Premises and equipment 151.6� 151.2�
148.7� 147.6� 147.2� 0.3� 3.0� Goodwill 291.1� 363.0� 348.5� 348.3�
344.3� (19.8) (15.5) Other intangibles 38.8� 38.9� 35.0� 36.2�
40.2� (0.3) (3.5) Other assets � 240.0� � 214.3� � 182.6� � 187.3�
� 189.5� 12.0� 26.6� Total assets $ 10,697.2� $ 10,590.7� $
10,264.6� $ 10,232.8� $ 10,198.4� 1.0� 4.9� � LIABILITIES AND
STOCKHOLDERS' EQUITY � Deposits: Noninterest-bearing demand $
861.3� $ 813.8� $ 830.2� $ 1,014.8� $ 1,060.8� 5.8� (18.8)
Interest-bearing: Savings 292.5� 313.1� 328.0� 326.3� 332.7� (6.6)
(12.1) Interest-bearing demand 2,417.5� 2,355.9� 2,352.1� 2,360.0�
2,317.5� 2.6� 4.3� Certificates under $100,000 995.5� 991.1� 960.4�
923.0� 840.6� 0.4� 18.4� Local certificates $100,000 and over �
574.7� � 550.6� � 513.3� � 436.5� � 411.0� 4.4� 39.8� Total core
deposits 5,141.5� 5,024.5� 4,984.0� 5,060.6� 4,962.6� 2.3� 3.6�
National certificates $100,000 and over � 2,742.7� � 2,760.6� �
2,707.2� � 2,228.6� � 2,586.3� (0.6) 6.0� Total deposits 7,884.2� �
7,785.1� � 7,691.2� � 7,289.2� � 7,548.9� 1.3� 4.4� Short-term
borrowings: Federal funds purchased and securities sold under
agreements to repurchase � � 1,161.7� 1,160.0� 984.2� 1,355.6�
1,104.4� 0.1� 5.2� U.S. Treasury demand � 7.0� � 24.5� � 0.6� �
18.1� � 12.9� (71.4) (45.7) Total short-term borrowings 1,168.7� �
1,184.5� � 984.8� � 1,373.7� � 1,117.3� (1.3) 4.6� Other
liabilities 184.5� 160.5� 151.8� 151.6� 156.2� 15.0� 18.1�
Long-term debt � 395.2� � 393.4� � 393.2� � 400.4� � 403.1� 0.5�
(2.0) Total liabilities 9,632.6� � 9,523.5� � 9,221.0� � 9,214.9� �
9,225.5� 1.1� 4.4� Minority interest 0.3� 0.3� 0.3� 0.2� 0.2� ----�
50.0� Stockholders' equity � 1,064.3� � 1,066.9� � 1,043.3� �
1,017.7� � 972.7� (0.2) 9.4� Total liabilities and stockholders'
equity � $ 10,697.2� $ 10,590.7� $ 10,264.6� $ 10,232.8� $
10,198.4� 1.0� 4.9� WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2006 � AVERAGE
STATEMENT OF CONDITION � 2006� 2006� 2006� 2005� 2005� % Change
From: Third Second First Fourth Third Prior Prior (in millions) �
Quarter � Quarter � Quarter � Quarter � Quarter Quarter Year ASSETS
Cash and due from banks $ 206.9� $ 209.3� $ 208.0� $ 237.8� $
229.6� (1.1) (9.9) Federal funds sold and securities purchased
under agreements to resell � � 28.8� � 18.8� � 17.5� � 40.2� �
52.9� 53.2� (45.6) Investment securities: U.S. Treasury 157.0�
146.7� 144.6� 133.5� 134.4� 7.0� 16.8� Government agencies 475.9�
394.1� 400.8� 406.4� 390.7� 20.8� 21.8� Obligations of state and
political subdivisions 9.6� 10.5� 10.5� 11.1� 11.3� (8.6) (15.0)
Preferred stock 89.4� 89.2� 91.4� 90.0� 92.5� 0.2� (3.4)
Mortgage-backed securities 735.1� 780.1� 828.4� 878.6� 931.9� (5.8)
(21.1) Other securities � 390.0� � 397.3� � 403.2� � 387.4� �
369.2� (1.8) 5.6� Total investment securities 1,857.0� � 1,817.9� �
1,878.9� � 1,907.0� � 1,930.0� 2.2� (3.8) Loans: Commercial,
financial and agricultural 2,407.7� 2,463.5� 2,448.1� 2,465.9�
2,449.2� (2.3) (1.7) Real estate-construction 1,588.7� 1,517.5�
1,322.0� 1,161.6� 1,022.9� 4.7� 55.3� Mortgage-commercial �
1,238.5� � 1,212.8� � 1,229.8� � 1,239.7� � 1,232.8� 2.1� 0.5�
Total commercial loans 5,234.9� � 5,193.8� � 4,999.9� � 4,867.2� �
4,704.9� 0.8� 11.3� Mortgage-residential 507.8� 484.2� 463.3�
450.8� 443.8� 4.9� 14.4� Consumer 1,470.5� 1,441.6� 1,423.9�
1,412.5� 1,369.7� 2.0� 7.4� Secured with liquid collateral � 546.1�
� 556.3� � 558.2� � 614.4� � 610.0� (1.8) (10.5) Total retail loans
2,524.4� � 2,482.1� � 2,445.4� � 2,477.7� � 2,423.5� 1.7� 4.2�
Total loans net of unearned income 7,759.3� 7,675.9� 7,445.3�
7,344.9� 7,128.4� 1.1� 8.9� Reserve for loan losses � (93.5) �
(91.8) � (90.4) � (93.5) � (91.6) 1.9� 2.1� Net loans 7,665.8� �
7,584.1� � 7,354.9� � 7,251.4� � 7,036.8� 1.1� 8.9� Premises and
equipment 152.1� 150.3� 148.5� 147.6� 148.2� 1.2� 2.6� Goodwill
362.3� 357.3� 348.3� 344.4� 344.2� 1.4� 5.3� Other intangibles
38.5� 37.3� 35.6� 39.7� 40.9� 3.2� (5.9) Other assets � 210.8� �
190.0� � 180.3� � 172.1� � 181.9� 10.9� 15.9� Total assets $
10,522.2� $ 10,365.0� $ 10,172.0� $ 10,140.2� $ 9,964.5� 1.5� 5.6�
� LIABILITIES AND STOCKHOLDERS' EQUITY � Deposits:
Noninterest-bearing demand $ 737.2� $ 742.0� $ 763.5� $ 1,017.4� $
1,016.4� (0.6) (27.5) Interest-bearing: Savings 304.1� 321.2�
326.0� 325.9� 345.1� (5.3) (11.9) Interest-bearing demand 2,374.1�
2,364.4� 2,346.8� 2,321.2� 2,257.2� 0.4� 5.2� Certificates under
$100,000 988.1� 980.9� 938.6� 901.5� 825.0� 0.7� 19.8� Local
certificates $100,000 and over � 546.5� � 540.0� � 463.3� � 446.6�
� 409.3� 1.2� 33.5� Total core deposits 4,950.0� 4,948.5� 4,838.2�
5,012.6� 4,853.0� ----� 2.0� National certificates $100,000 and
over � 2,864.6� � 2,656.1� � 2,647.7� � 2,475.4� � 2,500.6� 7.8�
14.6� Total deposits 7,814.6� � 7,604.6� � 7,485.9� � 7,488.0� �
7,353.6� 2.8� 6.3� � Short-term borrowings: Federal funds purchased
and securities sold under agreements to repurchase � � 1,048.8�
1,146.0� 1,082.0� 1,098.0� 1,056.7� (8.5) (0.7) U.S. Treasury
demand � 6.8� � 16.0� � 11.7� � 7.7� � 12.1� (57.5) (43.8) Total
short-term borrowings 1,055.6� � 1,162.0� � 1,093.7� � 1,105.7� �
1,068.8� (9.2) (1.2) Other liabilities 175.7� 144.8� 166.7� 163.3�
170.9� 21.3� 2.8� Long-term debt � 394.2� � 393.3� � 399.0� �
400.0� � 408.7� 0.2� (3.5) Total liabilities 9,440.1� � 9,304.7� �
9,145.3� � 9,157.0� � 9,002.0� 1.5� 4.9� Minority interest 0.4�
0.3� 0.3� 0.2� 0.3� 33.3� 33.3� Stockholders' equity � 1,081.7� �
1,060.0� � 1,026.4� � 983.0� � 962.2� 2.0� 12.4� Total liabilities
and stockholders' equity � $ 10,522.2� $ 10,365.0� $ 10,172.0� $
10,140.2� $ 9,964.5� 1.5� 5.6� � WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the nine months ended September 30,
2006 � YIELDS AND RATES � � 2006� 2006� 2006� 2005� 2005�
YIELDS/RATES Third Second First Fourth Third (tax-equivalent basis)
� Quarter � Quarter � Quarter � Quarter � Quarter EARNING ASSETS:
Federal funds sold and securities purchased under agreements to
resell � � 4.55� % 4.93� % 4.11� % 4.02� % 3.45� % � U.S. Treasury
4.06� 3.53� 3.38� 3.27� 3.17� Government agencies 4.23� 3.93� 3.95�
3.95� 3.87� Obligations of state and political subdivisions 8.75�
8.79� 8.77� 8.78� 8.76� Preferred stock 7.63� 7.60� 7.60� 7.58�
7.58� Mortgage-backed securities 4.05� 4.16� 4.17� 4.10� 4.02�
Other securities 6.42� 6.14� 5.52� 5.32� 4.84� Total investment
securities 4.78� 4.67� 4.53� 4.44� 4.27� � Commercial, financial
and agricultural 7.96� 7.61� 7.24� 6.80� 6.32� Real
estate-construction 8.60� 8.26� 7.90� 7.39� 6.94�
Mortgage-commercial 7.98� 7.71� 7.34� 6.96� 6.55� Total commercial
loans 8.16� 7.82� 7.44� 6.97� 6.51� Mortgage-residential 5.81�
5.77� 5.84� 5.82� 5.99� Consumer 7.31� 7.09� 6.85� 6.60� 6.43�
Secured with liquid collateral 6.78� 6.36� 5.89� 5.38� 4.89� Total
retail loans 6.89� 6.67� 6.44� 6.16� 5.96� Total loans 7.75� 7.45�
7.11� 6.70� 6.32� Total earning assets 7.15� 6.90� 6.58� 6.22�
5.87� � FUNDS USED TO SUPPORT EARNING ASSETS: Savings 0.42� 0.39�
0.32� 0.30� 0.28� Interest-bearing demand 1.10� 1.04� 1.02� 0.95�
0.90� Certificates under $100,000 3.87� 3.51� 3.27� 2.96� 2.64�
Local certificates $100,000 and over 4.65� 4.29� 3.89� 3.53� 3.04�
Core interest-bearing deposits 2.16� 1.98� 1.81� 1.64� 1.45�
National certificates $100,000 and over 5.30� 4.98� 4.47� 4.01�
3.51� Total interest-bearing deposits 3.43� 3.15� 2.86� 2.55� 2.26�
� Federal funds purchased and securities sold under agreements to
repurchase � � 4.98� 4.67� 4.19� 3.80� 3.37� U.S. Treasury demand
5.09� 4.74� 4.21� 4.22� 3.41� Total short-term borrowings 4.98�
4.67� 4.20� 3.80� 3.37� Long-term debt 6.85� 6.69� 6.26� 6.01�
5.39� Total interest-bearing liabilities 3.78� 3.52� 3.20� 2.89�
2.58� Total funds used to support earning assets 3.32� 3.10� 2.81�
2.48� 2.21� Net interest margin (tax-equivalent basis) 3.83� 3.80�
3.77� 3.74� 3.66� � Year to date net interest margin 3.80� 3.79�
3.77� 3.71� 3.65� � Prime rate 8.25� 7.90� 7.43� 6.97� 6.42� �
Tax-equivalent net interest income (in millions) $ 94.1� $ 91.5� $
88.3� $ 88.5� $ 84.7� � Average earning assets 9,645.1� 9,512.6�
9,341.7� 9,292.1� 9,111.3� � Average rates are calculated using
average balances based on historical cost and do not reflect market
valuation adjustments. WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the nine months ended September 30, 2006 �
SUPPLEMENTAL INFORMATION � Three Months Ended % Change From: �
Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior � �
2006� � 2006� � 2006� � 2005� � 2005� Quarter Year NET INCOME Net
income per share Basic $ 0.08� $ 0.69� $ 0.65� $ 0.69� $ 0.63�
(88.4) (87.3) Diluted 0.07� 0.67� 0.64� 0.67� 0.62� (89.6) (88.7)
Weighted average shares outstanding (in thousands) Basic 68,647�
68,475� 68,070� 67,861� 67,788� Diluted 69,933� 69,776� 69,434�
68,956� 68,699� Net income as a percentage of: Average assets 0.20%
1.81% 1.76% 1.82% 1.70% Average stockholders' equity 1.91� 17.75�
17.42� 18.77� 17.65� � ASSETS UNDER MANAGEMENT * (in billions)
Wilmington Trust $ 27.2� $ 26.4� $ 27.2� $ 26.0� $ 26.3� 3.0� 3.4�
Roxbury Capital Management 3.1� 3.3� 3.5� 3.3� 3.2� (6.1) (3.1)
Cramer Rosenthal McGlynn � 9.8� � 9.4� � 9.7� � 8.9� � 8.5� 4.3�
15.3� Combined assets under management $ 40.1� $ 39.1� $ 40.4� $
38.2� $ 38.0� 2.6� 5.5� � * Assets under management include
estimates for values associated with certain assets that lack
readily ascertainable values, such as limited partnership
interests. � ASSETS UNDER ADMINISTRATION ** (in billions)
Wilmington Trust $ 100.5� $ 100.7� $ 102.1� $ 100.9� $ 96.9� (0.2)
3.7� � ** Includes Wilmington Trust assets under management �
FULL-TIME EQUIVALENT HEADCOUNT Full-time equivalent headcount
2,520� 2,515� 2,475� 2,469� 2,439� � CAPITAL (in millions, except
per share amounts) Average stockholders' equity $ 1,081.7� $
1,060.0� $ 1,026.4� $ 983.0� $ 962.2� 2.0� 12.4� Period-end primary
capital 1,157.9� 1,161.2� 1,136.9� 1,109.1� 1,066.1� (0.3) 8.6� Per
share: Book value 15.55� 15.54� 15.30� 14.99� 14.34� 0.1� 8.4�
Quarterly dividends declared 0.315� 0.315� 0.30� 0.30� 0.30� ----�
5.0� Year-to-date dividends declared 0.93� 0.615� 0.30� 1.185�
0.885� Average stockholders' equity to assets 10.28% 10.23% 10.09%
9.69% 9.66% Total risk-based capital ratio 12.28� 11.80� 12.21�
12.02� 12.14� Tier 1 risk-based capital ratio 8.26� 7.74� 7.77�
7.54� 7.38� Tier 1 leverage capital ratio 7.34� 6.98� 6.94� 6.74�
6.34� � CREDIT QUALITY (in millions) Period-end reserve for loan
losses $ 93.6� $ 94.3� $ 93.6� $ 91.4� $ 93.4� Period-end
non-performing assets: Nonaccrual 32.0� 29.5� 35.5� 39.3� 49.9�
OREO 4.8� 4.8� 0.2� 0.2� 0.2� Renegotiated loans ----� 9.9� 4.9�
4.7� 4.8� Period-end past due 90 days 7.7� 4.7� 10.1� 4.1� 14.9� �
Gross charge-offs 8.6� 5.7� 3.2� 7.8� 3.1� Recoveries 1.3� 2.2�
1.4� 3.8� 1.2� Net charge-offs 7.3� 3.5� 1.8� 4.0� 1.9�
Year-to-date net charge-offs 12.6� 5.3� 1.8� 10.1� 6.1� � Ratios:
Period-end reserve to loans 1.20% 1.22% 1.24% 1.24% 1.28%
Period-end non-performing assets to loans 0.47� 0.57� 0.54� 0.60�
0.75� Period-end loans past due 90 days to total loans 0.10� 0.06�
0.13� 0.06� 0.20� Net charge-offs to average loans 0.09� 0.05�
0.02� 0.05� 0.03� � � INTERNAL RISK RATING Pass 97.41% 97.28%
97.20% 97.24% 96.96% Watchlisted 1.73� 1.89� 1.97� 1.96� 2.00�
Substandard 0.86� 0.76� 0.76� 0.73� 0.82� Doubtful ----� 0.07�
0.07� 0.07� 0.22� WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As
of and for the nine months ended September 30, 2006 � QUARTERLY
BUSINESS SEGMENT REPORT � Three Months Ended � Sept. 30, June 30,
Mar. 31, Dec. 31, Sept. 30, (in millions) � 2006� � 2006� � 2006� �
2005� � 2005� REGIONAL BANKING Net interest income $ 85.7� $ 83.9�
$ 80.9� $ 80.1� $ 77.4� Provision for loan losses (6.7) (3.7) (3.8)
(1.9) (2.7) Noninterest income 13.1� 13.1� 12.1� 12.5� 14.1�
Noninterest expense � 39.9� � 38.4� � 39.1� � 39.5� � 39.6� Income
before taxes & minority interest 52.2� 54.9� 50.1� 51.2� 49.2�
� Regional Banking efficiency ratio 40.02% 39.22% 41.64% 42.29%
42.86% � WEALTH ADVISORY SERVICES Net interest income $ 6.4� $ 6.3�
$ 6.5� $ 6.6� $ 6.2� Provision for loan losses 0.1� (0.5) (0.2)
(0.1) (0.2) Noninterest income 43.6� 44.5� 43.4� 39.7� 40.7�
Noninterest expense � 38.9� � 40.6� � 38.5� � 36.7� � 35.5� Income
before taxes & minority interest 11.2� 9.7� 11.2� 9.5� 11.2� �
Wealth Advisory Services efficiency ratio 77.64% 79.76% 77.00%
79.09% 75.53% � CORPORATE CLIENT SERVICES Net interest income $
4.4� $ 3.4� $ 2.9� $ 3.6� $ 2.6� Provision for loan losses ----�
----� ----� ----� ----� Noninterest income 23.5� 23.1� 22.5� 22.9�
21.4� Noninterest expense � 19.8� � 19.3� � 19.9� � 18.3� � 18.4�
Income before taxes & minority interest 8.1� 7.2� 5.5� 8.2�
5.6� � Corporate Client Services efficiency ratio 70.71% 72.56%
78.35% 68.80% 76.67% � AFFILIATE MANAGERS * Net interest income $
(3.5) $ (3.2) $ (3.0) $ (2.8) $ (2.5) Provision for loan losses
----� ----� ----� ----� ----� Noninterest income 4.4� 5.6� 4.7�
4.7� 3.5� Noninterest expense � 72.3� � ----� � ----� � ----� �
----� Income before taxes & minority interest (71.4) 2.4� 1.7�
1.9� 1.0� � TOTAL WILMINGTON TRUST CORPORATION Net interest income
$ 93.0� $ 90.4� $ 87.3� $ 87.5� $ 83.7� Provision for loan losses
(6.6) (4.2) (4.0) (2.0) (2.9) Noninterest income 84.6� 86.3� 82.7�
79.8� 79.7� Noninterest expense � 170.9� � 98.3� � 97.5� � 94.5� �
93.5� Income before taxes & minority interest $ 0.1� $ 74.2� $
68.5� $ 70.8� $ 67.0� � Corporation efficiency ratio 95.64% 55.29%
57.02% 56.15% 56.87% � * Affiliate managers comprise Cramer
Rosenthal McGlynn and Roxbury Capital Management. � Segment data
for prior periods may differ from previously published figures due
to changes in reporting methodology and/or organizational structure
as well as the adjustment for the adoption of stock-based
compensation. WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of
and for the nine months ended September 30, 2006 � YEAR-TO-DATE
BUSINESS SEGMENT REPORT � Nine Months Ended � Sept. 30, Sept. 30, $
% (in millions) � 2006� � 2005� � Change Change REGIONAL BANKING
Net interest income $ 250.5� $ 223.3� $ 27.2� 12.2% Provision for
loan losses (14.1) (9.3) 4.8� 51.6� Noninterest income 38.3� 38.6�
(0.3) (0.8) Noninterest expense � 117.4� � 112.7� � 4.7� 4.2�
Income before taxes & minority interest 157.3� 139.9� 17.4�
12.4� � Regional Banking efficiency ratio 40.25% 42.61% � WEALTH
ADVISORY SERVICES Net interest income $ 19.1� $ 17.3� $ 1.8� 10.4%
Provision for loan losses (0.7) (0.5) 0.2� 40.0� Noninterest income
131.6� 121.1� 10.5� 8.7� Noninterest expense � 117.9� � 107.9� �
10.0� 9.3� Income before taxes & minority interest 32.1� 30.0�
2.1� 7.0� � Wealth Advisory Services efficiency ratio 78.13% 77.85%
� CORPORATE CLIENT SERVICES Net interest income $ 10.7� $ 7.8� $
2.9� 37.2% Provision for loan losses ----� ----� ----� ----�
Noninterest income 69.2� 61.7� 7.5� 12.2� Noninterest expense �
59.0� � 55.0� � 4.0� 7.3� Income before taxes & minority
interest 20.9� 14.5� 6.4� 44.1� � Corporate Client Services
efficiency ratio 73.75% 79.02% � AFFILIATE MANAGERS * Net interest
income $ (9.6) $ (7.0) $ (2.6) (37.1)% Provision for loan losses
----� ----� ----� ----� Noninterest income 14.5� 12.1� 2.4� 19.8�
Noninterest expense � 72.5� � ----� � 72.5� ----� Income before
taxes & minority interest (67.6) 5.1� (72.7) ----� � TOTAL
WILMINGTON TRUST CORPORATION Net interest income $ 270.7� $ 241.4�
$ 29.3� 12.1% Provision for loan losses (14.8) (9.8) 5.0� 51.0�
Noninterest income 253.6� 233.5� 20.1� 8.6� Noninterest expense �
366.8� � 275.6� � 91.2� 33.1� Income before taxes & minority
interest $ 142.7� $ 189.5� $ (46.8) (24.7)% � Corporation
efficiency ratio 69.54% 57.68% � * Affiliate managers comprise
Cramer Rosenthal McGlynn and Roxbury Capital Management. � Segment
data for prior periods may differ from previously published figures
due to changes in reporting methodology and/or organizational
structure as well as the adjustment for the adoption of stock-based
compensation. Wilmington Trust Corporation (NYSE:WL) reported today
that net income for the 2006 third quarter was $5.2 million and
earnings per share (on a diluted basis) were $0.07 per share. The
company recorded a non-cash charge of $72.3 million during the
quarter against its valuation of affiliate money manager Roxbury
Capital Management (RCM). This non-cash charge reduced operating
net income by $41.7 million and reduced earnings per share (on a
diluted basis) by $0.60 per share. Absent the non-cash charge,
operating net income for the 2006 third quarter would have been
$46.9 million and earnings per share (on a diluted basis) would
have been $0.67 per share. These amounts would have been increases
of 10% and 8%, respectively, from the year-ago third quarter.
During the 2006 third quarter, RCM terminated its micro-cap fund
and decided to exit its fixed income fund by the end of 2006. These
actions caused Wilmington Trust management to reassess the carrying
value (the value assigned to the asset) of its ownership position
in RCM. On October 17, 2006, management determined that the
carrying value of RCM had declined by $72.3 million as of September
30, 2006, and that the decline was other than temporary. The $72.3
million decline in carrying value was recorded on the income
statement as a non-cash impairment charge for the 2006 third
quarter. The impairment charge was a non-cash item because
Wilmington Trust records the majority of RCM's carrying value on
its balance sheet as goodwill (a non-cash item). At June 30, 2006,
the amount of goodwill associated with RCM was $131.3 million. As
of September 30, 2006, following the non-cash charge, the amount of
goodwill recorded for RCM was $59.0 million. Wilmington Trust's
valuation of RCM is based in large part on its ownership interest
in the money manager, which consists of 41.23% of RCM's common
shares and a 30% preferred ownership interest. Wilmington Trust's
ownership interest in RCM has not changed since the fourth quarter
of 2003, and the company said no changes were planned. Ted T.
Cecala, Wilmington Trust's chairman and chief executive officer,
and David R. Gibson, Wilmington Trust's chief financial officer,
remain members of RCM's board of managers. "Roxbury is a profitable
growth-style manager. The firm is incubating new products and it
has been acquiring other investment managers," Cecala said. "We
have high regard for Roxbury's 'boutique among boutiques' market
positioning, we have a positive outlook for the firm, and we look
forward to maintaining our relationship with the Roxbury team." In
addition to reducing net income and earnings per share, the
non-cash charge increased noninterest expense, reduced income tax
expense, and reduced the returns on average assets and equity. This
report includes comparable amounts that exclude the non-cash charge
in cases where management believes doing so provides investors with
more relevant information about business trends and the company's
continuing operations. "Absent the non-cash charge, our third
quarter results were positive and each of our three businesses
recorded good growth," Cecala said. "Net interest income rose 11%,
the net interest margin increased, advisory revenue was 10% higher,
and expense growth, excluding the non-cash charge, was less than
6%." For the 2006 third quarter: -- Total loan balances were $7.76
billion, on average, up 9% from the year-ago third quarter. -- On
average, commercial loan balances rose 11% and consumer loan
balances rose 7% year over year. -- Balance sheet assets surpassed
$10.5 billion for the first time on an average balance basis. --
Net interest income, before the provision for loan losses, was 11%
more than for third quarter last year. -- The net interest margin
was 3.83%, up 3 basis points on a linked-quarter basis, and 17
basis points year over year. -- Wealth Advisory revenue rose 8%;
Corporate Client revenue increased 11%; and revenue from affiliate
money manager Cramer Rosenthal McGlynn was 35% higher than for the
year-ago third quarter. -- The percentage of loans with pass
ratings in the internal risk rating analysis continued to exceed
97%. Credit quality trends remained positive overall, but one
commercial loan charge-off during the third quarter increased net
charge-offs and the net charge-off ratio, and led to an increase in
the provision for loan losses. More details on this are in the
credit quality section of this report. On an annualized basis,
third quarter 2006 results produced a return on average assets of
0.20% and a return on average equity of 1.91%. Excluding the
non-cash charge for RCM, the return on average assets would have
been 1.77% and the return on average equity would have been 17.23%.
The corresponding returns for the third quarter of 2005 were 1.70%
and 17.65%, respectively. CASH DIVIDEND DECLARED On October 19,
2006, the Board of Directors declared a regular quarterly cash
dividend of $0.315 per share. The quarterly dividend will be paid
on November 15, 2006, to shareholders of record on November 1,
2006. EFFICIENCY RATIO The efficiency ratio is a measure of
profitability that reflects how much a company spends to generate
revenue. Low efficiency ratios are desirable because they indicate
high profitability. The non-cash charge, all of which was
attributed to the Affiliate Managers business segment, reduced the
company's efficiency ratio for the 2006 third quarter. There is
more information about business line profitability in the sections
on each business and in the financial reports by business segment
in this report. -0- *T Efficiency ratios 2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Regional Banking 40.02% 39.22% 42.86%
----------------------------------------------------------------------
Wealth Advisory Services 77.64% 79.76% 75.53%
----------------------------------------------------------------------
Corporate Client Services 70.71% 72.56% 76.67%
----------------------------------------------------------------------
Wilmington Trust consolidated 95.64% 55.29% 56.87%
----------------------------------------------------------------------
Wilmington Trust consolidated absent non-cash charge 55.18% -- --
----------------------------------------------------------------------
*T Excluding the non-cash charge, the table above shows that
Wilmington Trust spent slightly more than 55 cents for each dollar
of revenue recorded for the 2006 third quarter, and that the cost
was lower than for prior periods. The efficiency ratio improved
from its year-ago level mainly because pre-tax income was higher
from the Regional Banking and Corporate Client Services business.
The linked-quarter improvement was due to higher levels of pre-tax
income from Wealth Advisory Services and Corporate Client Services,
as expansion investments and the provision for loan losses reduced
pre-tax income from the Regional Banking business. INVESTMENT
SECURITIES PORTFOLIO Investment securities portfolio balances for
the 2006 third quarter were $1.86 billion, on average. On a
percentage basis, the composition of the portfolio was relatively
unchanged from prior periods. As of September 30, 2006,
approximately 80% of the portfolio was invested in fixed rate
instruments. -0- *T Investment securities portfolio 2006 Q3 2006 Q2
2005 Q3
----------------------------------------------------------------------
Average life (in years) 5.39 6.00 6.21
----------------------------------------------------------------------
Duration 2.39 2.78 2.74
----------------------------------------------------------------------
*T The average life and duration declined because the company
purchased shorter-term U.S. Treasury and government agency
securities during the 2006 third quarter and because the downward
shift in the yield curve caused prepayments to increase. THE
REGIONAL BANKING BUSINESS The Delaware Valley region's economy
remained well diversified and economic indicators remained
positive. According to the Federal Reserve Bank of Philadelphia,
economic activity over the past 12 months (as of August 2006, the
most recent data available) increased in Delaware and was stable in
Pennsylvania and New Jersey. According to the Federal Deposit
Insurance Corporation, job growth in Delaware continued to outpace
the national rate, with job losses from consolidation in the
financial sector offset by gains in the professional, business,
health, and government sectors. According to the U.S. Department of
Labor, Delaware's unemployment rate for August 2006 was 3.7%. In
comparison, the U.S. rate was 4.7%. Against this backdrop, loan
balances rose for the 22nd consecutive quarter and were $7.76
billion, on average. This was 9% higher than for the year-ago third
quarter, and 1% higher than for the 2006 second quarter. Commercial
real estate/construction loans, consumer loans, and residential
mortgage loans accounted for most of the growth. -0- *T Loans 2006
Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Total loans outstanding (in billions, on average) $7.76 $7.68 $7.13
----------------------------------------------------------------------
----------------------------------------------------------------------
Delaware market loans (in billions, on average) $5.78 $5.73 $5.37
----------------------------------------------------------------------
Delaware market loans as a % of total loans 74% 75% 75%
----------------------------------------------------------------------
----------------------------------------------------------------------
Pennsylvania market loans (in billions, on average) $1.74 $1.72
$1.56
----------------------------------------------------------------------
Pennsylvania market loans as a % of total loans 22% 22% 22%
----------------------------------------------------------------------
----------------------------------------------------------------------
Other market loans as a % of total loans 4% 3% 3%
----------------------------------------------------------------------
*T Commercial loans Commercial loan balances were $5.23 billion, on
average, for the 2006 third quarter. This was 11% higher than for
the year-ago third quarter, and 1% higher than for the 2006 second
quarter. Almost all of the year-over-year and linked-quarter growth
was in commercial real estate/construction (CRE) loans. -0- *T
Commercial loans (in millions, on 2006 Q3 2006 Q2 2005 Q3 average)
----------------------------------------------------------------------
Commercial, industrial, and agricultural loans $2,407.7 $2,463.5
$2,449.2
----------------------------------------------------------------------
Commercial real estate/construction loans 1,588.7 1,517.5 1,022.9
----------------------------------------------------------------------
Commercial mortgage loans 1,238.5 1,212.8 1,232.8
----------------------------------------------------------------------
Total commercial loans $5,234.9 $5,193.8 $4,704.9
----------------------------------------------------------------------
----------------------------------------------------------------------
% of commercial loans from Delaware market 70% 70% 70%
----------------------------------------------------------------------
% of commercial loans from Pennsylvania market 29% 29% 29%
----------------------------------------------------------------------
% of commercial loans from other markets 1% 1% 1%
----------------------------------------------------------------------
*T CRE loan balances, on average, increased 55% from the year-ago
third quarter, mainly because population growth and high demand for
housing continued in Delaware. The Delaware market accounted for
approximately 69% of the year-over-year CRE loan growth and the
Pennsylvania market accounted for approximately 18%. Residential
housing development loans accounted for approximately 72% of the
year-over-year CRE loan growth. According to the University of
Delaware's Center for Applied Demography, Delaware had a net gain
in population between July 2004 and July 2005 (the most recent data
available). The Center reported that Delaware's new residents
include retirees attracted by the state's relatively low property
taxes and lack of a sales tax, as well as working-age people from
New Jersey and Pennsylvania who are willing to trade longer
commuting time for lower housing prices. Mayflower Transit's 2006
relocation report ranked Delaware as the second most popular
relocation destination in the United States. On a linked-quarter
basis, the pace of CRE loan growth slowed to 5%, and the new loans
were split fairly evenly between the Delaware and Pennsylvania
markets. Residential housing development accounted for almost all
of the linked-quarter increase. The change in the pace of CRE loan
growth reflected a return to more normal market conditions. In
September, several housing industry groups, including the National
Association of Realtors, Moody's Economy.com, and multiple listing
service Trend, predicted any housing downturn in Delaware would be
short-lived and less severe than elsewhere in the United States.
For the first eight months of 2006, median sale prices for
single-family homes in Delaware rose between 6% and 12%, depending
on location. Retail loans Retail loans (consumer loans, residential
mortgage loans, and loans secured with liquid collateral) for the
2006 third quarter were $2.52 billion, on average. This was 4%
higher than for the year-ago third quarter, and 2% higher than for
the 2006 second quarter. Consumer loan and residential mortgage
loan balances accounted for the growth. Balances of loans secured
with liquid collateral declined due to lower demand from Wealth
Advisory clients. More than half of total retail loan balances for
the 2006 third quarter were consumer loans. Consumer loan balances,
on average, were 7% higher than for the year-ago third quarter and
2% higher on a linked-quarter basis. -0- *T Consumer loans (in
millions, on average) 2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Home equity lines of credit $319.4 $324.3 $330.6
----------------------------------------------------------------------
Indirect loans 657.3 648.4 615.1
----------------------------------------------------------------------
Credit card loans 75.1 74.2 71.7
----------------------------------------------------------------------
Other consumer loans 418.7 394.7 352.3
----------------------------------------------------------------------
Total consumer loans $1,470.5 $1,441.6 $1,369.7
----------------------------------------------------------------------
----------------------------------------------------------------------
% of consumer loans from Delaware market 88% 88% 88%
----------------------------------------------------------------------
% of consumer loans from Pennsylvania market 7% 6% 6%
----------------------------------------------------------------------
% of consumer loans from other markets 5% 6% 6%
----------------------------------------------------------------------
*T The category of consumer loans recorded as "other consumer
loans" accounted for the majority of the growth in consumer loan
balances. This category comprises a variety of installment loans to
individuals, most of which are fixed rate loans, and includes home
equity loans. Home equity loan balances increased, while home
equity lines of credit decreased, as client demand for fixed rate
products increased. Indirect loans, the majority of which are for
late-model used cars, also contributed to the increase in consumer
loan balances. The percentage of indirect loans from the New Jersey
and Pennsylvania markets increased substantially from their
year-ago volumes, reflecting the company's expansion in those
areas. In the residential mortgage portfolio, balances rose but
origination volumes declined, in large part because: -- Although
the company sells most new fixed rate residential mortgage
production into the secondary market, mortgages that qualify as low
income mortgages for Community Reinvestment Act (CRA) purposes are
retained in the portfolio. CRA loans originated during the 2006
third quarter were nearly twice as high as the year-ago third
quarter volumes. -- The average loan amount originated was 12%
higher for the 2006 third quarter than for the year-ago third
quarter. -- The pace of refinancings and paydowns slowed. --
Seasonal cyclicality causes the number of loans originated to
fluctuate from period to period. -0- *T Residential mortgages 2006
Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Balances (in millions, on average) $507.8 $484.2 $443.8
----------------------------------------------------------------------
Origination volumes (in millions) $58.6 $67.7 $70.1
----------------------------------------------------------------------
Origination units 239 288 321
----------------------------------------------------------------------
*T At September 30, 2006, approximately 74% of the residential
mortgage portfolio consisted of fixed rate mortgages, unchanged
from September 30, 2005, and June 30, 2006. Core deposits Core
deposits (deposits from clients) for the 2006 third quarter were
$4.95 billion, on average, up 2% from the year-ago third quarter
and up slightly from the 2006 second quarter. Certificate of
deposit (CD) and interest bearing demand deposit balances rose, but
these increases were offset by a decline in noninterest bearing
demand deposit balances. The majority of core deposits continued to
come from Delaware clients. -0- *T Total core deposits (on average)
2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
From Delaware clients 94% 94% 94%
----------------------------------------------------------------------
From Pennsylvania clients 5% 5% 5%
----------------------------------------------------------------------
From other markets 1% 1% 1%
----------------------------------------------------------------------
*T In December 2005, the company began to shift, or sweep, portions
of commercial noninterest bearing demand deposits into money market
deposits. This practice lowers deposit reserve requirements
mandated by the Federal Reserve, and ultimately reduces the
company's borrowing costs and uninvested cash balances. These
sweeps accounted for approximately $185 million of the $279 million
year-over-year decline in noninterest bearing demand deposits. CDs
in amounts under $100,000 were 20% higher on a year-over-year
basis, and local CDs in amounts of $100,000 and more were 34%
higher. Since local CDs are client deposits, they are recorded as
core deposits, not brokered deposits. Commercial banking clients in
the Delaware Valley and local municipalities, which frequently use
these CDs to generate returns on their excess cash, account for the
majority of local CD balances. -0- *T Local CDs greater than or
equal to $100,000 by client category 2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Consumer banking clients 73% 74% 66%
----------------------------------------------------------------------
DE commercial banking clients 10% 12% 11%
----------------------------------------------------------------------
PA commercial banking clients 10% 7% 6%
----------------------------------------------------------------------
Wealth Advisory Services clients 7% 7% 16%
----------------------------------------------------------------------
Corporate Client Services clients -- -- 1%
----------------------------------------------------------------------
*T Deposits recorded as national CDs of $100,000 or more (national
CDs) are brokered deposits, not client deposits. Since the company
gathers deposits mainly in Delaware, but makes loans in four
states, national CDs are a cost-effective way to fund loan growth
without incurring the expense of building and operating a
large-scale branch office network outside Delaware. Credit quality
The percentage of loans outstanding with pass ratings from the
internal risk rating analysis exceeded 97% for the fourth
consecutive quarter, and was higher year-over-year and on a
linked-quarter basis. While credit quality trends remained positive
overall, net charge-offs and the net charge-off ratio were higher
than in prior quarters, primarily because of one loan that was
charged-off during the 2006 third quarter. This loan, which was to
a Delaware Valley-based client in the dining and entertainment
industry, had been recorded in renegotiated loans since the fourth
quarter of 2004. As a result of this charge-off, the percentage of
loans rated doubtful in the internal risk rating analysis dropped
to zero. Renegotiated loans also fell to zero, because this loan
was charged off, and the other loan in the category was repaid in
July 2006. The net charge-off ratio for the 2006 third quarter was
9 basis points. This brought the net charge-off ratio on an
annualized basis to 22 basis points, still below historical levels.
Between 1995 and 2005, the annual net charge-off ratio ranged from
24 to 44 basis points. Nonaccruing loans and loans past due 90 days
or more were considerably lower than for the year-ago third
quarter, but were higher on a linked-quarter basis. Fewer than 10
loans, most of which were commercial loans, accounted for the
changes. None of the loans classified as nonaccruing or past due 90
days during the 2006 third quarter were real-estate related. The
amount recorded as other real estate owned (OREO) consists of an
agricultural parcel in New Jersey. While OREO was higher
year-over-year, the amount was unchanged from the 2006 second
quarter. The 2006 third quarter provision for loan losses was $6.6
million, compared with $2.9 million for the year-ago third quarter,
and $4.2 million for the 2006 second quarter. The reserve for loan
losses was $93.6 million at September 30, 2006, which was slightly
higher year over year and slightly lower on a linked-quarter basis.
The loan loss reserve ratio for the 2006 third quarter was 1.20%,
compared with 1.28% for the year-ago third quarter, and 1.22% for
the 2006 second quarter. Regional Banking profitability The
provision for loan losses and higher expenses due to expansion
activities offset increases in net interest income, causing a
slight uptick in the efficiency ratio for the Regional Banking
business. -0- *T Efficiency ratios 2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Regional Banking 40.02% 39.22% 42.86%
----------------------------------------------------------------------
*T NET INTEREST MARGIN For the 2006 third quarter, assets continued
to reprice faster than liabilities and deposit pricing pressure,
other than for CDs, remained relatively modest. In addition, the
third quarter was the first full quarter to reflect the effects of
the increase in short-term interest rates that the Federal Reserve
made on June 29, 2006. These factors contributed to the increase in
the net interest margin, which, at 3.83%, was 17 basis points
higher than for the year-ago third quarter, and 3 basis points
higher than for the 2006 second quarter. -0- *T Net interest margin
2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Net interest margin 3.83% 3.80% 3.66%
----------------------------------------------------------------------
*T -0- *T 9/30/06 vs. 9/30/06 vs. Basis point (bps) increases in
yields/rates 6/30/06 9/30/05
----------------------------------------------------------------------
Total earning assets 25 bps 128 bps
----------------------------------------------------------------------
Funds to support earning assets 22 bps 111 bps
----------------------------------------------------------------------
*T -0- *T 9/30/06 vs. 9/30/06 vs. Average balance increases 6/30/06
9/30/05
----------------------------------------------------------------------
Total earning assets 1% 6%
----------------------------------------------------------------------
Funds to support earning assets 1% 6%
----------------------------------------------------------------------
*T The company's floating rate loan portfolio is matched closely
with floating rate funding. This helps to minimize changes in the
net interest margin due to changes in market interest rates. As of
September 30, 2006: -- Approximately 75% of total loans outstanding
were floating rate loans. -- Approximately 81% of floating rate
loans were commercial loans, most of which reprice within 30 to 45
days of a rate change. -- The pricing on approximately 62% of
commercial floating rate loans was tied to a prime lending rate of
8.25%. -- The pricing on approximately 34% of commercial floating
rate loans was tied to the 30-day London Interbank Offered Rate
(Libor) of 5.32%. -0- *T Commercial floating rate loans repricing
National CDs Short-term in maturing borrowings maturing less than
or equal to less than or less than or equal As of 30 days equal to
90 days to 90 days
----------------------------------------------------------------------
9/30/06 93% 74% 98%
----------------------------------------------------------------------
6/30/06 92% 59% 91%
----------------------------------------------------------------------
9/30/05 92% 91% 90%
----------------------------------------------------------------------
*T Changes over the past 12 months in the percentage of national
CDs maturing in 90 days or less reflected the flat yield curve.
With little difference between 90-day rates and longer-term rates,
the company opted to purchase the longer-term instruments. THE
WEALTH ADVISORY SERVICES BUSINESS Wealth Advisory Services (WAS)
revenue for the 2006 third quarter was $47.1 million. This was 8%
higher than for the year-ago third quarter, and slightly more than
for the 2006 second quarter. Strong growth in revenue from planning
and other services, plus higher mutual fund revenue, accounted for
the year-over-year increase. The linked-quarter increase came from
mutual fund revenue. Most mutual fund fees are based on money
market funds. Revenue from trust and investment advisory services
was essentially unchanged from the prior-year and prior-quarter
levels, as business development was offset by lackluster
performance in the financial markets. As of September 30, 2006,
approximately 48% of assets managed for WAS clients were invested
in equities, and approximately 28% were invested in fixed income
instruments. Although markets rallied in September, the timing
occurred too late in the quarter to have much of an effect. Revenue
from planning and other services for the 2006 third quarter was
$8.8 million. This was 38% higher than for the year-ago third
quarter, and down slightly from the 2006 second quarter. Planning
revenue was affected mainly by activity at Grant Tani Barash &
Altman (GTBA), the company's West Coast provider of business
management and family office services. Since GTBA's fees are based
on the amount of income its clients earn, revenue from GTBA can
fluctuate up or down from period to period. Business development
remained solid. Year-over-year sales increases were recorded by the
California, Maryland, and Delaware markets. Sales attributed to
Delaware include business from clients in other states whose
accounts are located in Delaware in order to benefit from trust,
tax, and legal advantages not available for trusts governed by the
laws of other states. On a linked-quarter basis, sales increases
were recorded by the California, Florida, Maryland, and
Pennsylvania markets. Wealth Advisory Services profitability Pretax
income from WAS for the 2006 third quarter was the same as for the
year-ago third quarter, but expenses were higher year-over-year
because of expansion activities, including the East Coast launch of
the Wilmington Family Office practice and the opening of new
offices in Pennsylvania and New Jersey. This led to a modest
decline, year over year, in the efficiency ratio. On a
linked-quarter basis, incentive and employment benefits expenses
were lower, which improved the efficiency ratio. -0- *T Efficiency
ratios 2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Wealth Advisory Services 77.64% 79.76% 75.53%
----------------------------------------------------------------------
*T THE CORPORATE CLIENT SERVICES BUSINESS Corporate Client Services
(CCS) revenue for the 2006 third quarter was $21.1 million. This
was 10% more than for the year-ago third quarter, and slightly
higher than for the 2006 second quarter. Fees from entity
management, retirement services, and investment and cash management
services rose on a year-over-year as well as a linked-quarter
basis, but these increases were offset by flatness in capital
markets revenue. Capital markets revenue for the 2006 third quarter
was $8.2 million, down slightly from the year-ago and prior quarter
levels. Weakness in U.S. demand for asset-backed securitizations
continued to offset growth in defeasance services (transactions in
which one type of collateral is exchanged for another) and
insurance premium financing. Entity management revenue for the 2006
third quarter was $6.8 million, up 19% from the year-ago third
quarter and 3% on a linked-quarter basis. Business development in
Europe and the Cayman Islands accounted for most of the growth. In
Europe, business activity reflected demand for independent
directorships and administrative services, particularly for
asset-backed securitizations in Ireland, England, and Greece.
Corporate retirement services for the 2006 third quarter was $3.4
million, up 6% from the year-ago as well as linked quarter, mainly
because clients added funds to their retirement plans. While most
CCS fees are transaction-based, approximately 55% of retirement
services fees are based on the valuation of retirement plan assets
for which the company serves as custodian. CCS investment and cash
management revenue for the 2006 third quarter was $2.7 million.
This was 42% higher than for the year-ago third quarter, and 8%
more than for the 2006 second quarter. These increases resulted
from higher client demand and more proactive efforts to market
these services. Approximately 30% of the 2006 third quarter
investment/cash management revenue was tied to the valuations of
domestic fixed income instruments, primarily asset-backed, U.S.
Treasury, corporate, and other types of investment grade
securities. The remainder was based on money market mutual fund
balances. Corporate Client Services profitability On a
year-over-year as well as linked-quarter basis, net interest and
noninterest income growth outpaced expense growth, which caused the
CCS efficiency ratio to improve. -0- *T Efficiency ratios 2006 Q3
2006 Q2 2005 Q3
----------------------------------------------------------------------
Corporate Client Services 70.71% 72.56% 76.67%
----------------------------------------------------------------------
*T AFFILIATE MONEY MANAGERS Assets under management at value-style
affiliate Cramer Rosenthal McGlynn (CRM) were $9.80 billion at
September 30, 2006. This was an increase of $1.30 billion, or 15%,
from the amount reported at the end of September 2005, and $392.5
million, or 4%, more than at June 30, 2006. Asset inflows,
particularly in the mid-cap value product, and market appreciation
accounted for the growth. Revenue from CRM for the 2006 third
quarter was $4.6 million. This was 35% more than for the year-ago
third quarter, and reflected the increase in managed assets. On a
linked-quarter basis, revenue from CRM declined opposite the
increase in managed assets, mainly because the revenue recorded for
the 2006 second quarter included higher levels of hedge fund
performance fees. -0- *T Affiliate managers (in millions) 2006 Q3
2006 Q2 2005 Q3
----------------------------------------------------------------------
Managed assets at Cramer Rosenthal McGlynn $9,784.5 $9,392.0
$8,480.5
----------------------------------------------------------------------
Revenue from Cramer Rosenthal McGlynn $4.6 $5.5 $3.4
----------------------------------------------------------------------
----------------------------------------------------------------------
Managed assets at Roxbury Capital Management $3,122.9 $3,253.3
$3,246.6
----------------------------------------------------------------------
Revenue from Roxbury Capital Management -- $0.3 $0.3
----------------------------------------------------------------------
*T Growth-style affiliate Roxbury Capital Management (RCM)
terminated its micro-cap product during the 2006 third quarter,
which reduced managed asset levels and revenue. In addition, costs
associated with the fund termination caused expenses to be higher
than usual. As a result, RCM's revenue contribution for the quarter
was negative and a nominal loss was recorded. OTHER INCOME ITEMS
Other noninterest income was lower on a year-over-year basis
because the amount reported for the year-ago third quarter included
approximately $2.0 million of gains from executive life insurance
policies. On a linked-quarter basis, other noninterest income was
lower mainly because the amount recorded for the 2006 second
quarter included nonrecurring income of approximately $1.0 million
from a gain on the sale of real estate. NONINTEREST EXPENSES
Noninterest expenses for the 2006 third quarter were $170.9
million. The non-cash charge for RCM accounted for $72.3 million of
this amount. Excluding the non-cash charge, noninterest expenses
were $98.6 million. This was 6% more than for the year-ago third
quarter, and $300,000 more than for the 2006 second quarter.
Expansion initiatives and additions to staff were the primary
reasons for the increases. In the past 12 months, the company has:
-- Launched the Wilmington Family Office practice on the East
Coast. -- Opened new offices in Pennsylvania, New Jersey,
Connecticut, and Frankfurt, Germany. -- Expanded existing offices
in Delaware, Pennsylvania, Maryland, and New York. -- Acquired PwC
Corporate Services (Cayman). -- Invested in technology and added
staff to expand services that support collateralized debt
obligations. At September 30, 2006, there were 2,520 staff members.
This was 81 more than at the end of the year-ago third quarter, and
5 more than at the end of the 2006 second quarter. Staffing-related
costs continued to account for the majority of noninterest
expenses, excluding the non-cash charge. -0- *T Staffing-related
expenses (dollars in millions) 2006 Q3 2006 Q2 2005 Q3
----------------------------------------------------------------------
Full-time equivalent staff members 2,520 2,515 2,439
----------------------------------------------------------------------
Staffing-related expenses $59.8 $60.0 $56.3
----------------------------------------------------------------------
*T Among staffing-related expenses, increased salary and wage
expenses were offset by accruals for incentives and employment
benefits expenses. Effective January 1, 2006, amounts reported for
incentive and bonus expense were adjusted to reflect adoption of
the retrospective method of accounting for stock-based compensation
expense, in accordance with Statement of Financial Accounting
Standards No. 123 (revised). Stock-based compensation expense is
included in incentive and bonus expense. -0- *T Incentives and
bonuses (in millions) 2006 Q3 2006 Q2 2006 Q1 2005 Q4 2005 Q3
----------------------------------------------------------------------
Stock option expense $1.7 $1.4 $2.0 $1.8 $1.7
----------------------------------------------------------------------
Total incentives and bonuses $8.9 $10.3 $10.3 $8.8 $9.3
----------------------------------------------------------------------
*T CAPITAL RATIOS During a review of risk-based capital
calculations, the company discovered that the total risk-based
capital ratios reported as of December 31, 2005; March 31, 2006;
and June 30, 2006, inadvertently included portions of subordinated
long-term debt that should have been excluded due to their
approaching maturity. The corrected ratios appear in the table
below. The total risk-based capital ratio was the only capital
ratio affected. All of the company's capital ratios remained well
above the regulatory minimum to be considered a well capitalized
institution. -0- *T Corrections At June 30, 2006 At March 31, 2006
At December 31, 2005 to the
---------------------------------------------------------- total
risk-based capital Reported Corrected Reported Corrected Reported
Corrected ratio ratio ratio ratio ratio ratio ratio
----------------------------------------------------------------------
Total risk- based capital 12.66% 11.80% 12.72% 12.21% 12.36% 12.02%
----------------------------------------------------------------------
*T -0- *T Adequately capitalized Well capitalized Regulatory
minimums minimum minimum
----------------------------------------------------------------------
Total risk-based capital 8% 10%
----------------------------------------------------------------------
*T Capital ratios for the three months ended September 30, 2006,
and the preceding four quarters are included in the supplemental
information section of this release. SHARE REPURCHASES During the
2006 third quarter, the company spent $22.2 million to repurchase
504,515 of its shares. The average price per share was $44.08. This
brought the total number of shares repurchased under the current
8-million-share program, which commenced in April 2002, to
1,350,077, leaving 6,649,923 shares available for repurchase.
OUTLOOK FOR THE REMAINDER OF 2006 Commenting on the outlook for the
remainder of 2006, Cecala said: -- "Our focus on building and
strengthening client relationships, plus the expansion investments
we have made, have generated strong momentum in each of our
businesses for the first nine months of 2006. We expect that
momentum to continue. -- "Economic indicators remain positive
overall for the Delaware Valley region, which will benefit the
Regional Banking business. -- "Population growth in Delaware
continues to drive housing demand. The housing market has slowed
somewhat, but the level of activity remains within what has been
considered a historically normal range. Published reports indicate
that Delaware's housing market is not expected to experience as
sharp a decline as in other parts of the country. -- "Core deposit
pricing tends to lag behind the Federal Open Market Committee
interest rate changes. Absent any additional increases, we expect
core deposit pricing to catch up, which will cause the net interest
margin to decline modestly. -- "In terms of credit quality, more
than 97% of our loans outstanding have pass ratings. We expect the
full-year provision for loan losses to be in line with the levels
we have seen over the past 10 years, which have ranged from $12
million to $22 million. -- "As the percentage of loans generated
outside of the Delaware market continues to increase, we will
continue to use national CDs to help fund earning asset growth -
and to help us manage expense growth and interest rate risk. -- "In
Wealth Advisory Services, we expect to see higher levels of
planning revenue due to the expansion of our family office
capabilities. The majority of Wealth Advisory revenue, however, is
tied to financial market levels. We base trust and investment
advisory fees on market levels as of the last business day of each
month, so changes in revenue from these services may not correlate
directly with changes in financial markets. -- "Business
development continues to be solid in Corporate Client Services,
especially in Europe and the Caribbean. To further grow this
business, we are considering small acquisitions and looking for
opportunities to develop new products. -- "Asset inflows continue
at value-style affiliate Cramer Rosenthal McGlynn (CRM). Revenue
from CRM will reflect financial market levels. -- "Growth-style
affiliate Roxbury Capital Management (RCM) continues to be
profitable. The changes RCM made during the third quarter should
have a positive effect on the firm's continuing operations. --
"Expense growth will reflect the expansion investments we have made
this year in each of our businesses, and should approximate 7% for
the full year, plus the $72.3 million impairment expense."
CONFERENCE CALL Management will discuss the 2006 third quarter
results and outlook for the future in a conference call today at
10:00 a.m. (EDT). Supporting materials, financial statements, and
audio streaming will be available at www.wilmingtontrust.com. To
access the call from within the United States, dial (877) 258-8842
and enter PIN 7811598. From outside the United States, dial (973)
582-2839 and enter PIN 7811598. A rebroadcast of the call will be
available from 12:30 p.m. (EDT) today until 5:00 p.m. (EDT) on
Friday, October 27, 2006, by calling (877) 519-4471 inside the
United States or (973) 341-3080 from outside the United States. Use
PIN 7811598 to access the rebroadcast. FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements that reflect
our current expectations about our future performance. These
statements rely on a number of assumptions and estimates and are
subject to various risks and uncertainties that could cause our
actual results to differ from our expectations. Factors that could
affect our future financial results include, among other things,
changes in national or regional economic conditions; changes in
market interest rates; significant changes in banking laws or
regulations; increased competition in our businesses;
higher-than-expected credit losses; the effects of acquisitions;
the effects of integrating acquired entities; a substantial and
permanent loss of either client accounts and/or assets under
management at Wilmington Trust and/or our affiliate money managers,
Cramer Rosenthal McGlynn and Roxbury Capital Management;
unanticipated changes in regulatory, judicial, or legislative tax
treatment of business transactions; and economic uncertainty
created by unrest in other parts of the world. ABOUT WILMINGTON
TRUST Wilmington Trust Corporation (NYSE:WL) is a financial
services holding company that provides Regional Banking services
throughout the Delaware Valley region, Wealth Advisory Services for
high-net-worth clients in 22 countries, and Corporate Client
Services for institutional clients in 81 countries. Its wholly
owned bank subsidiary, Wilmington Trust Company, which was founded
in 1903, is one of the largest personal trust providers in the
United States and the leading retail and commercial bank in
Delaware. Wilmington Trust Corporation and its affiliates have
offices in California, Connecticut, Delaware, Florida, Georgia,
Maryland, Nevada, New Jersey, New York, Pennsylvania, South
Carolina, Vermont, the Cayman Islands, the Channel Islands, London,
Dublin, and Frankfurt. For more information, visit
www.wilmingtontrust.com. -0- *T WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the nine months ended September 30,
2006 HIGHLIGHTS Three Months Ended Nine Months Ended
--------------------------- -------------------------- Sept. 30,
Sept. 30, % Sept. 30, Sept. 30, % 2006 2005 Change 2006 2005 Change
----------------------------------------------------------------------
OPERATING RESULTS (in millions) Net interest income $ 93.0 $ 83.7
11.1 $ 270.7 $ 241.4 12.1 Provision for loan losses (6.6) (2.9)
127.6 (14.8) (9.8) 51.0 Noninterest income 84.6 79.7 6.1 253.6
233.5 8.6 Noninterest expense 170.9 93.5 82.8 366.8 275.6 33.1 Net
income 5.2 42.8 (87.9) 96.3 120.5 (20.1) PER SHARE DATA Basic net
income $ 0.08 $ 0.63 (87.3)$ 1.41 $ 1.78 (20.8) Diluted net income
0.07 0.62 (88.7) 1.38 1.76 (21.6) Dividends paid 0.315 0.30 5.0
0.93 0.885 5.1 Book value at period end 15.55 14.34 8.4 15.55 14.34
8.4 Closing price at period end 44.55 36.45 22.2 44.55 36.45 22.2
Market range: High 45.61 39.36 15.9 45.61 39.36 15.9 Low 40.52
35.35 14.6 38.54 33.01 16.8 AVERAGE SHARES OUTSTANDING (in
thousands) Basic 68,647 67,788 1.3 68,399 67,630 1.1 Diluted 69,933
68,699 1.8 69,716 68,440 1.9 AVERAGE BALANCE SHEET (in millions)
Investment portfolio $ 1,857.0 $ 1,930.0 (3.8)$ 1,851.2 $ 1,866.3
(0.8) Loans 7,759.3 7,128.4 8.9 7,628.0 6,946.8 9.8 Earning assets
9,645.1 9,111.3 5.9 9,501.0 8,844.6 7.4 Core deposits 4,950.0
4,853.0 2.0 4,912.6 4,817.4 2.0 Stockholders' equity 1,081.7 962.2
12.4 1,056.3 937.9 12.6 STATISTICS AND RATIOS (net income
annualized) Return on average stockholders' equity 1.91% 17.65%
(89.2) 12.19% 17.18% (29.0) Return on average assets 0.20% 1.70%
(88.2) 1.24% 1.66% (25.3) Net interest margin (taxable equivalent)
3.83% 3.66% 4.6 3.80% 3.65% 4.1 Dividend payout ratio 415.38%
47.20% N/M 65.94% 49.63% 32.9 Full-time equivalent headcount 2,520
2,439 3.3 2,520 2,439 3.3 *T -0- *T Prior period numbers have been
adjusted throughout this report for the retrospective adoption of
stock-based compensation accounting. *T -0- *T WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2006 QUARTERLY INCOME STATEMENT Three Months Ended
------------------------------------------------- % Change From:
Sept. June Mar. Dec. Sept. -------------- 30, 30, 31, 31, 30, Prior
Prior (in millions) 2006 2006 2006 2005 2005 Quarter Year
----------------------------------------------------------------------
NET INTEREST INCOME Interest income $175.0 $165.0 $152.8 $146.2
$134.9 6.1 29.7 Interest expense 82.0 74.6 65.5 58.7 51.2 9.9 60.2
-------------------------------------------------------- Net
interest income 93.0 90.4 87.3 87.5 83.7 2.9 11.1 Provision for
loan losses (6.6) (4.2) (4.0) (2.0) (2.9) 57.1 127.6
-------------------------------------------------------- Net
interest income after provision for loan losses 86.4 86.2 83.3 85.5
80.8 0.2 6.9 ----------------------------------- NONINTEREST INCOME
Advisory fees: Wealth Advisory Services Trust and investment
advisory fees 33.0 33.1 34.3 31.1 32.7 (0.3) 0.9 Mutual fund fees
5.3 5.0 4.7 4.5 4.4 6.0 20.5 Planning and other services 8.8 8.9
7.3 7.1 6.4 (1.1) 37.5
-------------------------------------------------------- Total
Wealth Advisory Services 47.1 47.0 46.3 42.7 43.5 0.2 8.3
----------------------------------- Corporate Client Services
Capital markets services 8.2 8.5 8.7 8.9 8.3 (3.5) (1.2) Entity
management services 6.8 6.6 6.5 6.1 5.7 3.0 19.3 Retirement
services 3.4 3.2 3.1 3.3 3.2 6.2 6.2 Investment / cash management
services 2.7 2.5 2.1 2.3 1.9 8.0 42.1
-------------------------------------------------------- Total
Corporate Client Services 21.1 20.8 20.4 20.6 19.1 1.4 10.5
----------------------------------- Cramer Rosenthal McGlynn 4.6
5.5 4.0 4.3 3.4 (16.4) 35.3 Roxbury Capital Management ---- 0.3 0.9
0.6 0.3 (100.0)(100.0)
-------------------------------------------------------- Advisory
fees 72.8 73.6 71.6 68.2 66.3 (1.1) 9.8 Amortization of affiliate
other intangibles (1.1) (1.0) (1.0) (1.0) (1.0) 10.0 10.0
-------------------------------------------------------- Advisory
fees after amortization of affiliate other intangibles 71.7 72.6
70.6 67.2 65.3 (1.2) 9.8 -----------------------------------
Service charges on deposit accounts 7.3 7.0 6.9 7.3 7.4 4.3 (1.4)
Other noninterest income 5.5 6.8 5.2 5.3 7.0 (19.1) (21.4)
Securities gains/(losses) 0.1 (0.1) ---- ---- ---- ---- ----
-------------------------------------------------------- Total
noninterest income 84.6 86.3 82.7 79.8 79.7 (2.0) 6.1
----------------------------------- Net interest and noninterest
income 171.0 172.5 166.0 165.3 160.5 (0.9) 6.5
----------------------------------- NONINTEREST EXPENSE Salaries
and wages 39.5 37.8 36.9 36.4 35.4 4.5 11.6 Incentives and bonuses
8.9 10.3 10.3 8.8 9.3 (13.6) (4.3) Employment benefits 11.4 11.9
13.5 11.5 11.6 (4.2) (1.7) Net occupancy 6.7 6.3 5.9 6.1 5.5 6.3
21.8 Furniture, equipment, and supplies 9.2 9.9 9.0 8.4 8.7 (7.1)
5.7 Other noninterest expense: Advertising and contributions 2.2
2.1 1.9 2.5 2.4 4.8 (8.3) Servicing and consulting fees 2.8 2.4 2.3
2.9 2.3 16.7 21.7 Subadvisor expense 2.7 2.9 2.8 2.5 2.7 (6.9) ----
Travel, entertainment, and training 2.5 2.3 2.2 2.6 2.6 8.7 (3.8)
Originating and processing fees 2.8 2.4 2.8 2.8 2.8 16.7 ---- Other
expense 9.9 10.0 9.9 10.0 10.2 (1.0) (2.9)
-------------------------------------------------------- Total
other noninterest expense 22.9 22.1 21.9 23.3 23.0 3.6 (0.4)
----------------------------------- Total noninterest expense
before impairment 98.6 98.3 97.5 94.5 93.5 0.3 5.5 Impairment
write- down 72.3 ---- ---- ---- ---- ---- ----
----------------------------------- Total noninterest expense 170.9
98.3 97.5 94.5 93.5 73.9 82.8 -----------------------------------
Income before income taxes and minority interest 0.1 74.2 68.5 70.8
67.0 (99.9) (99.9) Applicable income taxes (5.0) 27.2 24.3 24.3
24.1 ---- ----
-------------------------------------------------------- Net income
before minority interest 5.1 47.0 44.2 46.5 42.9 (89.1) (88.1)
Minority interest (0.1) 0.1 0.1 ---- 0.1 ---- ----
-------------------------------------------------------- Net income
$5.2 $46.9 $44.1 $46.5 $42.8 (88.9) (87.9)
=================================== *T -0- *T WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2006 YEAR-TO-DATE INCOME STATEMENT Nine Months Ended
-------------------------------- Sept. 30, Sept. 30, % (in
millions) 2006 2005 Change
----------------------------------------------------------------------
NET INTEREST INCOME Interest income $ 492.9 $ 370.4 33.1 Interest
expense 222.2 129.0 72.2
------------------------------------------------------------- Net
interest income 270.7 241.4 12.1 Provision for loan losses (14.8)
(9.8) 51.0
------------------------------------------------------------- Net
interest income after provision for loan losses 255.9 231.6 10.5
----------------------- NONINTEREST INCOME Advisory fees: Wealth
Advisory Services Trust and investment advisory fees 100.4 92.9 8.1
Mutual fund fees 15.0 13.2 13.6 Planning and other services 25.1
23.3 7.7
------------------------------------------------------------- Total
Wealth Advisory Services 140.5 129.4 8.6 -----------------------
Corporate Client Services Capital markets services 25.4 23.7 7.2
Entity management services 19.8 17.5 13.1 Retirement services 9.8
9.1 7.7 Investment / cash management services 7.3 5.4 35.2
------------------------------------------------------------- Total
Corporate Client Services 62.3 55.7 11.8 -----------------------
Cramer Rosenthal McGlynn 14.1 11.8 19.5 Roxbury Capital Management
1.1 0.8 37.5
-------------------------------------------------------------
Advisory fees 218.0 197.7 10.3 Amortization of affiliate other
intangibles (3.1) (3.1) ----
-------------------------------------------------------------
Advisory fees after amortization of affiliate other intangibles
214.9 194.6 10.4 ----------------------- Service charges on deposit
accounts 21.1 20.9 1.0 Other noninterest income 17.6 17.2 2.3
Securities gains ---- 0.8 (100.0)
------------------------------------------------------------- Total
noninterest income 253.6 233.5 8.6 ----------------------- Net
interest and noninterest income 509.5 465.1 9.5
----------------------- NONINTEREST EXPENSE Salaries and wages
114.1 103.3 10.5 Incentives and bonuses 29.5 29.1 1.4 Employment
benefits 36.8 35.8 2.8 Net occupancy 19.0 16.3 16.6 Furniture,
equipment, and supplies 28.2 26.3 7.2 Other noninterest expense:
Advertising and contributions 6.2 6.6 (6.1) Servicing and
consulting fees 7.5 7.3 2.7 Subadvisor expense 8.4 6.9 21.7 Travel,
entertainment, and training 7.0 6.2 12.9 Originating and processing
fees 8.0 7.7 3.9 Other expense 29.8 30.1 (1.0)
------------------------------------------------------------- Total
other noninterest expense 66.9 64.8 3.2 -----------------------
Total noninterest expense before impairment 294.5 275.6 6.9
Impairment write-down 72.3 ---- ---- ----------------------- Total
noninterest expense 366.8 275.6 33.1 ----------------------- Income
before income taxes and minority interest 142.7 189.5 (24.7)
Applicable income taxes 46.3 68.8 (32.7)
------------------------------------------------------------- Net
income before minority interest 96.4 120.7 (20.1) Minority interest
0.1 0.2 (50.0)
------------------------------------------------------------- Net
income $ 96.3 $ 120.5 (20.1) ======================= *T -0- *T
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
nine months ended September 30, 2006 COMPARISON OF RESULTS WITH AND
WITHOUT THE IMPAIRMENT WRITE-DOWN Three months ended September 30,
2006 ----------------------------------- With Without impairment
impairment Impairment ---------- ---------- ---------- OPERATING
RESULTS (in millions) Net interest income $ 93.0 $ 93.0 $ ----
Provision for loan losses (6.6) (6.6) ---- Noninterest income 84.6
84.6 ---- Noninterest expense 170.9 98.6 72.3
----------------------------------------------------------------------
Income before taxes and minority interest 0.1 72.4 (72.3)
Applicable income taxes (5.0) 25.6 (30.6)
----------------------------------------------------------------------
Net income before minority interest 5.1 46.8 (41.7) Minority
interest (0.1) (0.1) ----
----------------------------------------------------------------------
Net income $ 5.2 $ 46.9 $ (41.7)
=================================== PER SHARE DATA Diluted shares
outstanding (in millions) 69.9 69.9 ---- Per-share earnings $ 0.07
$ 0.67 $ (0.60) STATISTICS AND RATIOS (dollars in millions) Total
assets, on average $ 10,522.2 $ 10,523.0 $ (0.8) Stockholders'
equity, on average 1,081.7 1,082.2 (0.5) Return on average assets
0.20% 1.77% (1.57)% Return on equity 1.91% 17.23% (15.32)% Net
interest before provision and noninterest income $ 177.6 $ 177.6 $
---- Tax equivalent interest income 1.1 1.1 ----
----------------------------------------------------------------------
$ 178.7 $ 178.7 $ ---- Noninterest expense $ (170.9) $ (98.6) $
(72.3) ----------------------------------- Efficiency ratio 95.64%
55.18% 40.46% Nine months ended September 30, 2006
----------------------------------- With Without impairment
impairment Impairment ---------- ---------- ---------- OPERATING
RESULTS (in millions) Net interest income $ 270.7 $ 270.7 $ ----
Provision for loan losses (14.8) (14.8) ---- Noninterest income
253.6 253.6 ---- Noninterest expense 366.8 294.5 72.3
----------------------------------------------------------------------
Income before taxes and minority interest 142.7 215.0 (72.3)
Applicable income taxes 46.3 76.9 (30.6)
----------------------------------------------------------------------
Net income before minority interest 96.4 138.1 (41.7) Minority
interest 0.1 0.1 ----
----------------------------------------------------------------------
Net income $ 96.3 $ 138.0 $ (41.7)
=================================== PER SHARE DATA Diluted shares
outstanding (in millions) 69.7 69.7 ---- Per-share earnings $ 1.38
$ 1.98 $ (0.60) STATISTICS AND RATIOS (dollars in millions) Total
assets, on average $ 10,354.4 $ 10,354.6 $ (0.2) Stockholders'
equity, on average 1,056.3 1,056.4 (0.1) Return on average assets
1.24% 1.78% (0.54)% Return on equity 12.19% 17.47% (5.28)% Net
interest before provision and noninterest income $ 524.3 $ 524.3 $
---- Tax equivalent interest income 3.2 3.2 ----
----------------------------------------------------------------------
$ 527.5 $ 527.5 $ ---- Noninterest expense $ (366.8) $ (294.5) $
(72.3) ----------------------------------- Efficiency ratio 69.54%
55.83% 13.71% *T -0- *T WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the nine months ended September 30, 2006
STATEMENT OF CONDITION Sept. 30, June 30, Mar. 31, Dec. 31, Sept.
30, (in millions) 2006 2006 2006 2005 2005
----------------------------------------------------------------------
ASSETS Cash and due from banks $ 268.4 $ 258.5 $ 219.2 $ 264.0 $
286.8 ------------------------------------------------- Federal
funds sold and securities purchased under agreements to resell 38.4
66.7 44.9 14.3 64.0
------------------------------------------------- Investment
securities: U.S. Treasury 230.8 181.4 136.8 161.1 136.8 Government
agencies 533.0 416.5 394.5 410.8 389.4 Obligations of state and
political subdivisions 9.4 10.4 10.5 11.0 11.2 Preferred stock 91.0
88.1 90.2 90.6 91.1 Mortgage-backed securities 726.8 751.0 806.4
852.1 913.9 Other securities 391.3 389.8 401.9 403.2 384.6
----------------------------------------------------------------------
Total investment securities 1,982.3 1,837.2 1,840.3 1,928.8 1,927.0
------------------------------------------------- Loans:
Commercial, financial and agricultural 2,378.1 2,445.5 2,445.9
2,461.3 2,465.9 Real estate- construction 1,610.9 1,574.3 1,411.9
1,233.9 1,098.9 Mortgage-commercial 1,254.5 1,222.8 1,245.4 1,223.9
1,239.4
----------------------------------------------------------------------
Total commercial loans 5,243.5 5,242.6 5,103.2 4,919.1 4,804.2
------------------------------------------------- Mortgage-
residential 518.7 503.0 473.4 455.5 450.9 Consumer 1,489.7 1,452.4
1,408.5 1,438.3 1,414.8 Secured with liquid collateral 528.3 557.2
553.9 584.8 622.9
----------------------------------------------------------------------
Total retail loans 2,536.7 2,512.6 2,435.8 2,478.6 2,488.6
------------------------------------------------- Total loans net
of unearned income 7,780.2 7,755.2 7,539.0 7,397.7 7,292.8 Reserve
for loan losses (93.6) (94.3) (93.6) (91.4) (93.4)
----------------------------------------------------------------------
Net loans 7,686.6 7,660.9 7,445.4 7,306.3 7,199.4
------------------------------------------------- Premises and
equipment 151.6 151.2 148.7 147.6 147.2 Goodwill 291.1 363.0 348.5
348.3 344.3 Other intangibles 38.8 38.9 35.0 36.2 40.2 Other assets
240.0 214.3 182.6 187.3 189.5
----------------------------------------------------------------------
Total assets $10,697.2 $10,590.7 $10,264.6 $10,232.8 $10,198.4
================================================= LIABILITIES AND
STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 861.3 $
813.8 $ 830.2 $ 1,014.8 $ 1,060.8 Interest-bearing: Savings 292.5
313.1 328.0 326.3 332.7 Interest-bearing demand 2,417.5 2,355.9
2,352.1 2,360.0 2,317.5 Certificates under $100,000 995.5 991.1
960.4 923.0 840.6 Local certificates $100,000 and over 574.7 550.6
513.3 436.5 411.0
----------------------------------------------------------------------
Total core deposits 5,141.5 5,024.5 4,984.0 5,060.6 4,962.6
National certificates $100,000 and over 2,742.7 2,760.6 2,707.2
2,228.6 2,586.3
----------------------------------------------------------------------
Total deposits 7,884.2 7,785.1 7,691.2 7,289.2 7,548.9
------------------------------------------------- Short-term
borrowings: Federal funds purchased and securities sold under
agreements to repurchase 1,161.7 1,160.0 984.2 1,355.6 1,104.4 U.S.
Treasury demand 7.0 24.5 0.6 18.1 12.9
----------------------------------------------------------------------
Total short-term borrowings 1,168.7 1,184.5 984.8 1,373.7 1,117.3
------------------------------------------------- Other liabilities
184.5 160.5 151.8 151.6 156.2 Long-term debt 395.2 393.4 393.2
400.4 403.1
----------------------------------------------------------------------
Total liabilities 9,632.6 9,523.5 9,221.0 9,214.9 9,225.5
------------------------------------------------- Minority interest
0.3 0.3 0.3 0.2 0.2 Stockholders' equity 1,064.3 1,066.9 1,043.3
1,017.7 972.7
----------------------------------------------------------------------
Total liabilities and stockholders' equity $10,697.2 $10,590.7
$10,264.6 $10,232.8 $10,198.4
================================================= % Change From:
-------------------- Prior Prior (in millions) Quarter Year
---------------------------------------- ASSETS Cash and due from
banks 3.8 (6.4) Federal funds sold and securities purchased under
agreements to resell (42.4) (40.0) Investment securities: U.S.
Treasury 27.2 68.7 Government agencies 28.0 36.9 Obligations of
state and political subdivisions (9.6) (16.1) Preferred stock 3.3
(0.1) Mortgage-backed securities (3.2) (20.5) Other securities 0.4
1.7 -------------------- Total investment securities 7.9 2.9 Loans:
Commercial, financial and agricultural (2.8) (3.6) Real estate-
construction 2.3 46.6 Mortgage-commercial 2.6 1.2
-------------------- Total commercial loans ---- 9.1 Mortgage-
residential 3.1 15.0 Consumer 2.6 5.3 Secured with liquid
collateral (5.2) (15.2) -------------------- Total retail loans 1.0
1.9 Total loans net of unearned income 0.3 6.7 Reserve for loan
losses (0.7) 0.2 -------------------- Net loans 0.3 6.8 Premises
and equipment 0.3 3.0 Goodwill (19.8) (15.5) Other intangibles
(0.3) (3.5) Other assets 12.0 26.6 -------------------- Total
assets 1.0 4.9 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits:
Noninterest-bearing demand 5.8 (18.8) Interest-bearing: Savings
(6.6) (12.1) Interest-bearing demand 2.6 4.3 Certificates under
$100,000 0.4 18.4 Local certificates $100,000 and over 4.4 39.8
-------------------- Total core deposits 2.3 3.6 National
certificates $100,000 and over (0.6) 6.0 -------------------- Total
deposits 1.3 4.4 Short-term borrowings: Federal funds purchased and
securities sold under agreements to repurchase 0.1 5.2 U.S.
Treasury demand (71.4) (45.7) -------------------- Total short-term
borrowings (1.3) 4.6 Other liabilities 15.0 18.1 Long-term debt 0.5
(2.0) -------------------- Total liabilities 1.1 4.4 Minority
interest ---- 50.0 Stockholders' equity (0.2) 9.4
-------------------- Total liabilities and stockholders' equity 1.0
4.9 *T -0- *T WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of
and for the nine months ended September 30, 2006 AVERAGE STATEMENT
OF CONDITION 2006 2006 2006 2005 2005 Third Second First Fourth
Third (in millions) Quarter Quarter Quarter Quarter Quarter
----------------------------------------------------------------------
ASSETS Cash and due from banks $ 206.9 $ 209.3 $ 208.0 $ 237.8 $
229.6 ------------------------------------------------ Federal
funds sold and securities purchased under agreements to resell 28.8
18.8 17.5 40.2 52.9
------------------------------------------------ Investment
securities: U.S. Treasury 157.0 146.7 144.6 133.5 134.4 Government
agencies 475.9 394.1 400.8 406.4 390.7 Obligations of state and
political subdivisions 9.6 10.5 10.5 11.1 11.3 Preferred stock 89.4
89.2 91.4 90.0 92.5 Mortgage-backed securities 735.1 780.1 828.4
878.6 931.9 Other securities 390.0 397.3 403.2 387.4 369.2
----------------------------------------------------------------------
Total investment securities 1,857.0 1,817.9 1,878.9 1,907.0 1,930.0
------------------------------------------------ Loans: Commercial,
financial and agricultural 2,407.7 2,463.5 2,448.1 2,465.9 2,449.2
Real estate- construction 1,588.7 1,517.5 1,322.0 1,161.6 1,022.9
Mortgage-commercial 1,238.5 1,212.8 1,229.8 1,239.7 1,232.8
----------------------------------------------------------------------
Total commercial loans 5,234.9 5,193.8 4,999.9 4,867.2 4,704.9
------------------------------------------------
Mortgage-residential 507.8 484.2 463.3 450.8 443.8 Consumer 1,470.5
1,441.6 1,423.9 1,412.5 1,369.7 Secured with liquid collateral
546.1 556.3 558.2 614.4 610.0
----------------------------------------------------------------------
Total retail loans 2,524.4 2,482.1 2,445.4 2,477.7 2,423.5
------------------------------------------------ Total loans net of
unearned income 7,759.3 7,675.9 7,445.3 7,344.9 7,128.4 Reserve for
loan losses (93.5) (91.8) (90.4) (93.5) (91.6)
----------------------------------------------------------------------
Net loans 7,665.8 7,584.1 7,354.9 7,251.4 7,036.8
------------------------------------------------ Premises and
equipment 152.1 150.3 148.5 147.6 148.2 Goodwill 362.3 357.3 348.3
344.4 344.2 Other intangibles 38.5 37.3 35.6 39.7 40.9 Other assets
210.8 190.0 180.3 172.1 181.9
----------------------------------------------------------------------
Total assets $10,522.2 $10,365.0 $10,172.0 $10,140.2 $9,964.5
================================================ LIABILITIES AND
STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 737.2 $
742.0 $ 763.5 $ 1,017.4 $1,016.4 Interest-bearing: Savings 304.1
321.2 326.0 325.9 345.1 Interest-bearing demand 2,374.1 2,364.4
2,346.8 2,321.2 2,257.2 Certificates under $100,000 988.1 980.9
938.6 901.5 825.0 Local certificates $100,000 and over 546.5 540.0
463.3 446.6 409.3
----------------------------------------------------------------------
Total core deposits 4,950.0 4,948.5 4,838.2 5,012.6 4,853.0
National certificates $100,000 and over 2,864.6 2,656.1 2,647.7
2,475.4 2,500.6
----------------------------------------------------------------------
Total deposits 7,814.6 7,604.6 7,485.9 7,488.0 7,353.6
------------------------------------------------ Short-term
borrowings: Federal funds purchased and securities sold under
agreements to repurchase 1,048.8 1,146.0 1,082.0 1,098.0 1,056.7
U.S. Treasury demand 6.8 16.0 11.7 7.7 12.1
----------------------------------------------------------------------
Total short-term borrowings 1,055.6 1,162.0 1,093.7 1,105.7 1,068.8
------------------------------------------------ Other liabilities
175.7 144.8 166.7 163.3 170.9 Long-term debt 394.2 393.3 399.0
400.0 408.7
----------------------------------------------------------------------
Total liabilities 9,440.1 9,304.7 9,145.3 9,157.0 9,002.0
------------------------------------------------ Minority interest
0.4 0.3 0.3 0.2 0.3 Stockholders' equity 1,081.7 1,060.0 1,026.4
983.0 962.2
----------------------------------------------------------------------
Total liabilities and stockholders' equity $10,522.2 $10,365.0
$10,172.0 $10,140.2 $9,964.5
================================================ % Change From:
-------------------- Prior Prior (in millions) Quarter Year
----------------------------------------- ASSETS Cash and due from
banks (1.1) (9.9) Federal funds sold and securities purchased under
agreements to resell 53.2 (45.6) Investment securities: U.S.
Treasury 7.0 16.8 Government agencies 20.8 21.8 Obligations of
state and political subdivisions (8.6) (15.0) Preferred stock 0.2
(3.4) Mortgage-backed securities (5.8) (21.1) Other securities
(1.8) 5.6 --------------------- Total investment securities 2.2
(3.8) Loans: Commercial, financial and agricultural (2.3) (1.7)
Real estate- construction 4.7 55.3 Mortgage-commercial 2.1 0.5
--------------------- Total commercial loans 0.8 11.3
Mortgage-residential 4.9 14.4 Consumer 2.0 7.4 Secured with liquid
collateral (1.8) (10.5) --------------------- Total retail loans
1.7 4.2 Total loans net of unearned income 1.1 8.9 Reserve for loan
losses 1.9 2.1 --------------------- Net loans 1.1 8.9 Premises and
equipment 1.2 2.6 Goodwill 1.4 5.3 Other intangibles 3.2 (5.9)
Other assets 10.9 15.9 --------------------- Total assets 1.5 5.6
LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing
demand (0.6) (27.5) Interest-bearing: Savings (5.3) (11.9)
Interest-bearing demand 0.4 5.2 Certificates under $100,000 0.7
19.8 Local certificates $100,000 and over 1.2 33.5
--------------------- Total core deposits ---- 2.0 National
certificates $100,000 and over 7.8 14.6 --------------------- Total
deposits 2.8 6.3 Short-term borrowings: Federal funds purchased and
securities sold under agreements to repurchase (8.5) (0.7) U.S.
Treasury demand (57.5) (43.8) --------------------- Total
short-term borrowings (9.2) (1.2) Other liabilities 21.3 2.8
Long-term debt 0.2 (3.5) --------------------- Total liabilities
1.5 4.9 Minority interest 33.3 33.3 Stockholders' equity 2.0 12.4
--------------------- Total liabilities and stockholders' equity
1.5 5.6 *T -0- *T WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As
of and for the nine months ended September 30, 2006 YIELDS AND
RATES 2006 2006 2006 2005 2005 YIELDS/RATES Third Second First
Fourth Third (tax-equivalent basis) Quarter Quarter Quarter Quarter
Quarter
---------------------------------------------------------------------
EARNING ASSETS: Federal funds sold and securities purchased under
agreements to resell 4.55 % 4.93 % 4.11 % 4.02 % 3.45 % U.S.
Treasury 4.06 3.53 3.38 3.27 3.17 Government agencies 4.23 3.93
3.95 3.95 3.87 Obligations of state and political subdivisions 8.75
8.79 8.77 8.78 8.76 Preferred stock 7.63 7.60 7.60 7.58 7.58
Mortgage-backed securities 4.05 4.16 4.17 4.10 4.02 Other
securities 6.42 6.14 5.52 5.32 4.84 Total investment securities
4.78 4.67 4.53 4.44 4.27 Commercial, financial and agricultural
7.96 7.61 7.24 6.80 6.32 Real estate-construction 8.60 8.26 7.90
7.39 6.94 Mortgage-commercial 7.98 7.71 7.34 6.96 6.55 Total
commercial loans 8.16 7.82 7.44 6.97 6.51 Mortgage-residential 5.81
5.77 5.84 5.82 5.99 Consumer 7.31 7.09 6.85 6.60 6.43 Secured with
liquid collateral 6.78 6.36 5.89 5.38 4.89 Total retail loans 6.89
6.67 6.44 6.16 5.96 Total loans 7.75 7.45 7.11 6.70 6.32 Total
earning assets 7.15 6.90 6.58 6.22 5.87 FUNDS USED TO SUPPORT
EARNING ASSETS: Savings 0.42 0.39 0.32 0.30 0.28 Interest-bearing
demand 1.10 1.04 1.02 0.95 0.90 Certificates under $100,000 3.87
3.51 3.27 2.96 2.64 Local certificates $100,000 and over 4.65 4.29
3.89 3.53 3.04 Core interest-bearing deposits 2.16 1.98 1.81 1.64
1.45 National certificates $100,000 and over 5.30 4.98 4.47 4.01
3.51 Total interest-bearing deposits 3.43 3.15 2.86 2.55 2.26
Federal funds purchased and securities sold under agreements to
repurchase 4.98 4.67 4.19 3.80 3.37 U.S. Treasury demand 5.09 4.74
4.21 4.22 3.41 Total short-term borrowings 4.98 4.67 4.20 3.80 3.37
Long-term debt 6.85 6.69 6.26 6.01 5.39 Total interest-bearing
liabilities 3.78 3.52 3.20 2.89 2.58 Total funds used to support
earning assets 3.32 3.10 2.81 2.48 2.21 Net interest margin
(tax-equivalent basis) 3.83 3.80 3.77 3.74 3.66 Year to date net
interest margin 3.80 3.79 3.77 3.71 3.65 Prime rate 8.25 7.90 7.43
6.97 6.42 Tax-equivalent net interest income (in millions) $ 94.1 $
91.5 $ 88.3 $ 88.5 $ 84.7 Average earning assets 9,645.1 9,512.6
9,341.7 9,292.1 9,111.3 Average rates are calculated using average
balances based on historical cost and do not reflect market
valuation adjustments. *T -0- *T WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the nine months ended September 30,
2006 SUPPLEMENTAL INFORMATION Three Months Ended
--------------------------------------------- Sept. Sept. 30, June
30, Mar. 31, Dec. 31, 30, 2006 2006 2006 2005 2005
----------------------------------------------------------------------
NET INCOME Net income per share Basic $ 0.08 $ 0.69 $ 0.65 $ 0.69 $
0.63 Diluted 0.07 0.67 0.64 0.67 0.62 Weighted average shares
outstanding (in thousands) Basic 68,647 68,475 68,070 67,861 67,788
Diluted 69,933 69,776 69,434 68,956 68,699 Net income as a
percentage of: Average assets 0.20% 1.81% 1.76% 1.82% 1.70% Average
stockholders' equity 1.91 17.75 17.42 18.77 17.65 ASSETS UNDER
MANAGEMENT * (in billions) Wilmington Trust $ 27.2 $ 26.4 $ 27.2 $
26.0 $ 26.3 Roxbury Capital Management 3.1 3.3 3.5 3.3 3.2 Cramer
Rosenthal McGlynn 9.8 9.4 9.7 8.9 8.5
----------------------------------------------------------------------
Combined assets under management $ 40.1 $ 39.1 $ 40.4 $ 38.2 $ 38.0
============================================= * Assets under
management include estimates for values associated with certain
assets that lack readily ascertainable values, such as limited
partnership interests. ASSETS UNDER ADMINISTRATION ** (in billions)
Wilmington Trust $ 100.5 $ 100.7 $ 102.1 $ 100.9 $ 96.9 ** Includes
Wilmington Trust assets under management FULL-TIME EQUIVALENT
HEADCOUNT Full-time equivalent headcount 2,520 2,515 2,475 2,469
2,439 CAPITAL (in millions, except per share amounts) Average
stockholders' equity $1,081.7 $1,060.0 $1,026.4 $ 983.0 $ 962.2
Period-end primary capital 1,157.9 1,161.2 1,136.9 1,109.1 1,066.1
Per share: Book value 15.55 15.54 15.30 14.99 14.34 Quarterly
dividends declared 0.315 0.315 0.30 0.30 0.30 Year-to-date
dividends declared 0.93 0.615 0.30 1.185 0.885 Average
stockholders' equity to assets 10.28% 10.23% 10.09% 9.69% 9.66%
Total risk-based capital ratio 12.28 11.80 12.21 12.02 12.14 Tier 1
risk-based capital ratio 8.26 7.74 7.77 7.54 7.38 Tier 1 leverage
capital ratio 7.34 6.98 6.94 6.74 6.34 CREDIT QUALITY (in millions)
Period-end reserve for loan losses $ 93.6 $ 94.3 $ 93.6 $ 91.4 $
93.4 Period-end non- performing assets: Nonaccrual 32.0 29.5 35.5
39.3 49.9 OREO 4.8 4.8 0.2 0.2 0.2 Renegotiated loans ---- 9.9 4.9
4.7 4.8 Period-end past due 90 days 7.7 4.7 10.1 4.1 14.9 Gross
charge-offs 8.6 5.7 3.2 7.8 3.1 Recoveries 1.3 2.2 1.4 3.8 1.2 Net
charge-offs 7.3 3.5 1.8 4.0 1.9 Year-to-date net charge- offs 12.6
5.3 1.8 10.1 6.1 Ratios: Period-end reserve to loans 1.20% 1.22%
1.24% 1.24% 1.28% Period-end non- performing assets to loans 0.47
0.57 0.54 0.60 0.75 Period-end loans past due 90 days to total
loans 0.10 0.06 0.13 0.06 0.20 Net charge-offs to average loans
0.09 0.05 0.02 0.05 0.03 INTERNAL RISK RATING Pass 97.41% 97.28%
97.20% 97.24% 96.96% Watchlisted 1.73 1.89 1.97 1.96 2.00
Substandard 0.86 0.76 0.76 0.73 0.82 Doubtful ---- 0.07 0.07 0.07
0.22 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for
the nine months ended September 30, 2006 SUPPLEMENTAL INFORMATION
Three Months Ended --------------------------- % Change From:
--------------------------- Prior Prior Quarter Year
------------------------ --------------------------- NET INCOME Net
income per share Basic (88.4) (87.3) Diluted (89.6) (88.7) Weighted
average shares outstanding (in thousands) Basic Diluted Net income
as a percentage of: Average assets Average stockholders' equity
ASSETS UNDER MANAGEMENT * (in billions) Wilmington Trust 3.0 3.4
Roxbury Capital Management (6.1) (3.1) Cramer Rosenthal McGlynn 4.3
15.3 ------------------------ Combined assets under management 2.6
5.5 * Assets under management include estimates for values
associated with certain assets that lack readily ascertainable
values, such as limited partnership interests. ASSETS UNDER
ADMINISTRATION ** (in billions) Wilmington Trust (0.2) 3.7 **
Includes Wilmington Trust assets under management FULL-TIME
EQUIVALENT HEADCOUNT Full-time equivalent headcount CAPITAL (in
millions, except per share amounts) Average stockholders' equity
2.0 12.4 Period-end primary capital (0.3) 8.6 Per share: Book value
0.1 8.4 Quarterly dividends declared ---- 5.0 Year-to-date
dividends declared Average stockholders' equity to assets Total
risk-based capital ratio Tier 1 risk-based capital ratio Tier 1
leverage capital ratio CREDIT QUALITY (in millions) Period-end
reserve for loan losses Period-end non- performing assets:
Nonaccrual OREO Renegotiated loans Period-end past due 90 days
Gross charge-offs Recoveries Net charge-offs Year-to-date net
charge- offs Ratios: Period-end reserve to loans Period-end non-
performing assets to loans Period-end loans past due 90 days to
total loans Net charge-offs to average loans INTERNAL RISK RATING
Pass Watchlisted Substandard Doubtful *T -0- *T WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2006 QUARTERLY BUSINESS SEGMENT REPORT Three Months
Ended --------------------------------------- Sept. June Mar. Dec.
Sept. 30, 30, 31, 31, 30, (in millions) 2006 2006 2006 2005 2005
----------------------------------------------------------------------
REGIONAL BANKING Net interest income $ 85.7 $ 83.9 $ 80.9 $ 80.1 $
77.4 Provision for loan losses (6.7) (3.7) (3.8) (1.9) (2.7)
Noninterest income 13.1 13.1 12.1 12.5 14.1 Noninterest expense
39.9 38.4 39.1 39.5 39.6
----------------------------------------------------------------------
Income before taxes & minority interest 52.2 54.9 50.1 51.2
49.2 Regional Banking efficiency ratio 40.02% 39.22% 41.64% 42.29%
42.86% WEALTH ADVISORY SERVICES Net interest income $ 6.4 $ 6.3 $
6.5 $ 6.6 $ 6.2 Provision for loan losses 0.1 (0.5) (0.2) (0.1)
(0.2) Noninterest income 43.6 44.5 43.4 39.7 40.7 Noninterest
expense 38.9 40.6 38.5 36.7 35.5
----------------------------------------------------------------------
Income before taxes & minority interest 11.2 9.7 11.2 9.5 11.2
Wealth Advisory Services efficiency ratio 77.64% 79.76% 77.00%
79.09% 75.53% CORPORATE CLIENT SERVICES Net interest income $ 4.4 $
3.4 $ 2.9 $ 3.6 $ 2.6 Provision for loan losses ---- ---- ---- ----
---- Noninterest income 23.5 23.1 22.5 22.9 21.4 Noninterest
expense 19.8 19.3 19.9 18.3 18.4
----------------------------------------------------------------------
Income before taxes & minority interest 8.1 7.2 5.5 8.2 5.6
Corporate Client Services efficiency ratio 70.71% 72.56% 78.35%
68.80% 76.67% AFFILIATE MANAGERS * Net interest income $ (3.5) $
(3.2) $ (3.0) $ (2.8) $ (2.5) Provision for loan losses ---- ----
---- ---- ---- Noninterest income 4.4 5.6 4.7 4.7 3.5 Noninterest
expense 72.3 ---- ---- ---- ----
----------------------------------------------------------------------
Income before taxes & minority interest (71.4) 2.4 1.7 1.9 1.0
TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 93.0 $
90.4 $ 87.3 $ 87.5 $ 83.7 Provision for loan losses (6.6) (4.2)
(4.0) (2.0) (2.9) Noninterest income 84.6 86.3 82.7 79.8 79.7
Noninterest expense 170.9 98.3 97.5 94.5 93.5
----------------------------------------------------------------------
Income before taxes & minority interest $ 0.1 $ 74.2 $ 68.5 $
70.8 $ 67.0 ======================================= Corporation
efficiency ratio 95.64% 55.29% 57.02% 56.15% 56.87% * Affiliate
managers comprise Cramer Rosenthal McGlynn and Roxbury Capital
Management. Segment data for prior periods may differ from
previously published figures due to changes in reporting
methodology and/or organizational structure as well as the
adjustment for the adoption of stock-based compensation. *T -0- *T
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
nine months ended September 30, 2006 YEAR-TO-DATE BUSINESS SEGMENT
REPORT Nine Months Ended -------------------------------------
Sept. 30, Sept. 30, $ % (in millions) 2006 2005 Change Change
----------------------------------------------------------------------
REGIONAL BANKING Net interest income $ 250.5 $ 223.3 $ 27.2 12.2%
Provision for loan losses (14.1) (9.3) 4.8 51.6 Noninterest income
38.3 38.6 (0.3) (0.8) Noninterest expense 117.4 112.7 4.7 4.2
----------------------------------------------------------------------
Income before taxes & minority interest 157.3 139.9 17.4 12.4
Regional Banking efficiency ratio 40.25% 42.61% WEALTH ADVISORY
SERVICES Net interest income $ 19.1 $ 17.3 $ 1.8 10.4% Provision
for loan losses (0.7) (0.5) 0.2 40.0 Noninterest income 131.6 121.1
10.5 8.7 Noninterest expense 117.9 107.9 10.0 9.3
----------------------------------------------------------------------
Income before taxes & minority interest 32.1 30.0 2.1 7.0
Wealth Advisory Services efficiency ratio 78.13% 77.85% CORPORATE
CLIENT SERVICES Net interest income $ 10.7 $ 7.8 $ 2.9 37.2%
Provision for loan losses ---- ---- ---- ---- Noninterest income
69.2 61.7 7.5 12.2 Noninterest expense 59.0 55.0 4.0 7.3
----------------------------------------------------------------------
Income before taxes & minority interest 20.9 14.5 6.4 44.1
Corporate Client Services efficiency ratio 73.75% 79.02% AFFILIATE
MANAGERS * Net interest income $ (9.6) $ (7.0) $ (2.6)(37.1)%
Provision for loan losses ---- ---- ---- ---- Noninterest income
14.5 12.1 2.4 19.8 Noninterest expense 72.5 ---- 72.5 ----
----------------------------------------------------------------------
Income before taxes & minority interest (67.6) 5.1 (72.7) ----
TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 270.7 $
241.4 $ 29.3 12.1% Provision for loan losses (14.8) (9.8) 5.0 51.0
Noninterest income 253.6 233.5 20.1 8.6 Noninterest expense 366.8
275.6 91.2 33.1
----------------------------------------------------------------------
Income before taxes & minority interest $ 142.7 $ 189.5 $
(46.8)(24.7)% ==================================== Corporation
efficiency ratio 69.54% 57.68% * Affiliate managers comprise Cramer
Rosenthal McGlynn and Roxbury Capital Management. Segment data for
prior periods may differ from previously published figures due to
changes in reporting methodology and/or organizational structure as
well as the adjustment for the adoption of stock-based
compensation. *T
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