Wilmington Trust Corporation (NYSE:WL) reported today that net
income for the 2007 second quarter was $48.9 million and earnings
per share (on a diluted basis) were $0.70 per share. These were
increases of 4% and 5%, respectively, from the second quarter of
2006. �Positive returns on our expansion investments were evident
throughout our second quarter results,� said Ted T. Cecala,
Wilmington Trust's chairman and chief executive officer. �The
Wealth Advisory and Corporate Client Services businesses recorded
double-digit increases in revenue. In the Regional Banking
business, the pace of loan growth slowed, but interest income and
expense spreads improved, and our net interest margin increased to
3.73%. Net charge-offs, at four basis points, remained at
historically low levels, and we held expense growth in check.� On
an annualized basis, second quarter 2007 results produced a return
on average assets of 1.80% and a return on average equity of
17.51%. The corresponding returns for the second quarter of 2006
were 1.81% and 17.75%, respectively. CASH DIVIDEND DECLARED At its
meeting yesterday, the Board of Directors declared a regular
quarterly cash dividend of $0.335 per share. This amount reflects
the 6% increase the Board approved in April 2007, which marked the
26th consecutive year the company has raised its cash dividend. The
quarterly dividend will be paid on August 15, 2007, to stockholders
of record on August 1, 2007. EFFICIENCY RATIOS Compared to the 2007
first quarter, the efficiency ratios improved for all three
business lines as well as for the corporation overall, as expansion
initiatives in 2006 began to generate more revenue. On a
consolidated basis, the company reduced its cost of generating each
dollar of revenue by more than 4 cents. Compared to the year-ago
second quarter, efficiency improved for the Wealth Advisory and
Corporate Client Services businesses, reflecting a return on
expansion investments. Regional Banking efficiency deteriorated
slightly, mainly because of the increase in the provision for loan
losses, and caused a very slight increase in the cost of generating
revenue on a consolidated basis. Efficiency ratios � 2007 Q2 � 2007
Q1 � 2006 Q2 Regional Banking � 39.94 % � 43.42 % � 38.98 % Wealth
Advisory Services � 78.32 % � 85.61 % � 80.73 % Corporate Client
Services � 70.85 % � 71.28 % � 71.37 % Wilmington Trust
consolidated � 55.58 % � 60.23 % � 55.29 % In general, lower
efficiency ratios indicate higher profitability. INVESTMENT
SECURITIES PORTFOLIO The size of the investment securities
portfolio decreased during the 2007 second quarter because, as
short-term securities matured or were called, there was less need
to replace them in order to collateralize client accounts that use
short-term cash sweeps. The decline in balances of short-term
investments caused the portfolio�s average life and duration to
increase. On a percentage basis, the composition of the portfolio
remained relatively unchanged. Investment securities portfolio � At
6/30/07 � At 3/31/07 � At 6/30/06 Balances (in millions) � $1,814.0
� � $1,977.4 � � $1,837.2 � As a percentage of earning assets � 18
% � 20 % � 19 % As a percentage of total assets � 16 % � 18 % � 17
% Average life (in years) � 5.10 � � 4.59 � � 6.00 � Duration �
2.20 � � 2.05 � � 2.78 � Percentage invested in fixed income
instruments � 80 % � 81 % � 78 % All of the mortgage-backed
securities in the portfolio are AAA-rated instruments issued by
U.S. government agencies for which the underlying collateral is
residential mortgages. There are no subprime mortgages in this
underlying collateral. THE REGIONAL BANKING BUSINESS The Regional
Banking business continued to benefit from the broadly diversified
Delaware Valley economy. According to the Federal Reserve Bank of
Philadelphia, May 2007 unemployment rates for Delaware,
Pennsylvania, and New Jersey were below the U.S. national average,
and all three states exhibited positive growth in May (the most
recent data available). At Wilmington Trust, loan balances rose for
the 17th consecutive quarter on an average-balance basis. Almost
all of the loan growth occurred in the commercial portfolio, which
benefited from expansion initiatives undertaken in 2006 that
increased the percentage of business in the Maryland and New Jersey
markets. Loans (dollars in billions, on average) 2007 Q2 � 2007 Q1
� 2006 Q2 Total loans outstanding (in billions, on average) $8.16 �
� $8.07 � � $7.68 � � � � � � � Delaware market loans (in billions,
on average) $5.89 � � $5.84 � � $5.61 � Delaware market loans as a
% of total loans 72 % � 72 % � 73 % � � � � � � Pennsylvania market
loans (in billions, on average) $1.83 � � $1.82 � � $1.72 �
Pennsylvania market loans as a % of total loans 22 % � 23 % � 22 %
� � � � � � Other market loans (in billions, on average) $0.44 � �
$0.41 � � $0.35 � Other market loans as a % of total loans 6 % � 5
% � 5 % Commercial loans In the commercial portfolio, commercial
real estate/construction (CRE) lending continued to account for
most of the year-over-year and linked-quarter growth. Much of this
growth was for housing-related projects, reflecting slowing, but
still growing, housing demand in the Delaware Valley region. The
Federal Reserve Bank of Philadelphia reported that from April to
May 2007, on a seasonally adjusted-basis, the issuance of
residential building permits increased in Delaware and
Pennsylvania. It also reported that, between the first quarters of
2006 and 2007, home prices appreciated 5.5% in Pennsylvania and
5.2% in Delaware, well above the U.S. average of 4.3%. Commercial
loans (in millions, on average) � 2007 Q2 � 2007 Q1 � 2006 Q2
Commercial, financial, and agricultural loans � $2,500.1 � �
$2,466.2 � � $2,463.5 � Commercial real estate/construction (CRE)
loans � $1,696.7 � � $1,669.8 � � $1,517.5 � Commercial mortgage
loans � $1,376.9 � � $1,339.9 � � $1,212.8 � Total commercial loans
� $5,573.7 � � $5,475.9 � � $5,193.8 � � � � � � � � % 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 % Of the CRE
loans booked during the 2007 second quarter: Approximately 43% were
for projects in southeastern Pennsylvania; Approximately 41% were
for projects in Delaware, mainly in the northern part of the state;
Approximately 12% were for projects in the Baltimore area; and The
remaining 4% were for projects in other areas. These loans were
extended for a variety of residential land development, retail,
light manufacturing, warehouse, and hotel projects. Commercial,
financial, and agricultural (C&I) loan balances also increased
year-over-year and on a linked-quarter basis, but the pace of
growth was offset by pay offs of approximately $44 million. Of the
C&I loans booked during the 2007 second quarter: Approximately
53% were for projects in Delaware; Approximately 29% were for
projects in southeastern Pennsylvania; Approximately 13% were for
projects in southern New Jersey, and The remaining 5% were for
projects in other areas. These loans were for working capital,
equipment purchases, and other uses by clients in a variety of
service, contracting, agricultural, and retail businesses. Retail
loans Total retail loan balances were higher than for the year-ago
second quarter because of growth in consumer loan and residential
mortgage balances. On a linked-quarter basis, consumer loan
balances decreased slightly, as demand for new loans was not strong
enough to offset pay downs and pay offs of existing loans. Consumer
loans (in millions, on average) � 2007 Q2 � 2007 Q1 � 2006 Q2 Home
equity lines of credit � $301.6 � � $309.5 � � $324.3 � Indirect
loans � $687.8 � � $687.2 � � $648.4 � Credit card loans � $64.0 �
� $63.6 � � $60.5 � Other consumer loans � $450.5 � � $452.0 � �
$408.4 � Total consumer loans � $1,503.9 � � $1,512.3 � � $1,441.6
� � � � � � � � % of consumer loans from Delaware market � 77 % �
77 % � 80 % % of consumer loans from Pennsylvania market � 7 % � 7
% � 6 % % of consumer loans from other markets � 16 % � 16 % � 14 %
In the consumer portfolio, most of the year-over-year growth
occurred in the category recorded as �other� consumer loans, which
includes home equity loans. This reflected client preference for
home equity loans, most of which have fixed rates, instead of home
equity lines of credit, most of which have floating rates. The
increases in indirect loan volumes were due largely to the
company�s expansion of this business in Maryland, New Jersey, and
Pennsylvania. Most of these loans are provided through automobile
dealers and most are for late-model used cars. Residential mortgage
balances were higher than for prior periods because prepayment and
refinancing volumes decreased, and originations of mortgages that
qualify as low income mortgages under the Community Reinvestment
Act (CRA) increased. These increases corresponded with housing
growth in CRA-eligible communities in Delaware. The company retains
CRA mortgages, but sells most other newly originated fixed rate
residential mortgages into the secondary market and does not record
those loans on its balance sheet. Residential mortgages � 2007 Q2 �
2007 Q1 � 2006 Q2 Balances (in millions, on average) � $553.9 � �
$542.1 � � $484.2 � Origination volumes (in millions) � $58.9 � �
$54.7 � � $67.7 � Number of originations � 244 � � 225 � � 288 � �
� � � � � � Fixed vs. floating rates � At 6/30/07 � At 3/31/07 � At
6/30/06 Percent of fixed-rate residential mortgages � 78 % � 77 % �
76 % At June 30, 2007, Wilmington Trust�s residential mortgage
delinquency rate was 24 basis points lower than at March 31, 2007,
and 54 basis points lower than at the end of the year-ago second
quarter. The residential mortgage foreclosure rate for the first
six months of 2007 was zero. Residential mortgage delinquency rates
� 2007 Q2 � 2007 Q1 � 2006 Q2 Wilmington Trust � 2.48 % � 2.72 % �
3.02 % Wilmington Trust does not engage in subprime residential
mortgage lending and there are no subprime loans in the residential
mortgage portfolio. Core deposits Savings deposit balances rose
significantly from year-ago and prior-quarter levels, due mainly to
the success of the high-interest savings account available through
WTDirect, the company�s Internet-only delivery channel. The higher
savings deposit balances helped generate a 2% linked-quarter
increase in total core deposit average balances, and helped offset
slight year-over-year decreases in other types of core deposit
balances. Core deposits (in millions, on average) 2007 Q2 � 2007 Q1
� 2006 Q2 Noninterest-bearing demand $702.6 � � $749.1 � � $742.0 �
Savings $463.4 � � $365.3 � � $321.2 � Interest-bearing demand
$2,312.5 � � $2,250.4 � � $2,364.4 � CDs < $100,000 � $1,014.5 �
� $1,012.9 � � $980.9 � Local CDs ? $100,000 $427.2 � � $457.7 � �
$540.0 � Total core deposits $4,920.2 � � $4,835.4 � � $4,948.5 � �
� � � � � From Delaware clients 91 % � 93 % � 94 % From
Pennsylvania clients 5 % � 5 % � 5 % From other markets 4 % � 2 % �
1 % Management includes local CDs in amounts of $100,000 and more
(local CDs) in core deposits because these CDs reflect client
deposits, not wholesale or brokered deposits. Most local CDs are
from commercial banking clients in the Delaware Valley and local
municipalities, which frequently use these CDs to generate returns
on their excess cash. Local CDs ? $100,000 by client category � At
6/30/07 � At 3/31/07 � At 6/30/06 Consumer banking clients � 72 % �
75 % � 74 % DE commercial banking clients � 9 % � 8 % � 12 % PA
commercial banking clients � 11 % � 7 % � 7 % Wealth Advisory
Services clients � 8 % � 10 % � 7 % Funding Core deposits,
including those generated through WTDirect, continued to comprise
the company�s primary source of funding. Sources of funding (on
average) � 2007 Q2 � 2007 Q1 � 2006 Q2 Core deposits � 54 % � 52 %
� 56 % National funding � 32 % � 34 % � 30 % Short-term borrowings
� 14 % � 14 % � 14 % � � � � � � � Loan-to-deposit ratio � 1.03 % �
1.01 % � 1.01 % The company uses a diversified mix of funding to
support the Regional Banking business, which makes loans in a
four-state region but gathers retail deposits primarily in
Delaware. Management believes that purchasing national funds is a
cost-effective way to add deposits without building and operating a
large-scale expansion of the branch office network outside
Delaware. As noted in the net interest margin discussion in this
release, the repricing characteristics of national funding are
matched closely with the repricing characteristics of floating rate
loans. Credit quality Credit quality trends remained positive,
which management attributed to consistent application of
disciplined underwriting standards. Net charge-offs � 2007 Q2 �
2007 Q1 � 2006 Q2 Net charge-off ratio (basis points) � 4 bps � 4
bps � 5 bps Net charge-offs (in millions) � $3.5 � $3.3 � $3.5 At 4
basis points, the net charge-off ratio was unchanged from the 2007
first quarter and 1 basis point lower than for the year-ago second
quarter. Annualized, the net charge-off ratio was 16 basis points
and remained at the low end of historical levels. Since 1996, the
annual net charge-off ratio has ranged from a low of 14 basis
points for 2005 to a high of 44 basis points for 2000. Opposite
period-end loan balances of $8.27 billion, net charge-offs for the
2007 second quarter were $3.5 million. This was the same as for the
year-ago second quarter, and $200,000 more than for the 2007 first
quarter. For the first six months of 2007, net charge-offs totaled
$6.8 million. None of the loans charged off in the first six months
of 2007 were commercial construction/real estate or commercial
mortgage loans. At the end of the 2007 second quarter, 97% of loans
outstanding had pass ratings in the internal risk rating analysis.
The percentage of pass-rated loans has been 97% or higher for seven
consecutive quarters. Credit quality (at period-end) � 6/30/07 �
3/31/07 � 6/30/06 Nonaccruing loans � $41.0 � $23.1 � $29.5 Other
real estate owned (OREO) � $0.2 � $4.8 � $4.8 Renegotiated loans �
$4.5 � $4.8 � $9.9 Loans past due 90 days � $13.6 � $7.3 � $4.7
Ratio of nonperforming assets to loans (basis points) � 55 bps � 40
bps � 57 bps Nonaccruing loans were $17.9 million higher at June
30, 2007, than at March 31, 2007. Approximately $10.3 million of
this amount was for three loans to Philadelphia-based Elliott
Building Group, which filed for bankruptcy in June 2007. Each of
these loans, which are for residential housing projects under
construction in southern New Jersey, is secured by a first lien
mortgage position. Due to ongoing loan work-out and recovery
processes, management currently is unable to predict whether, or to
what extent, this client�s bankruptcy filing might affect
charge-offs. The remaining $7.6 million increase in nonaccruing
loans included a combination of C&I and CRE projects in
Pennsylvania and New Jersey. All of these loans are secured with
real estate. Other real estate owned (OREO) declined due to the
sale of a parcel of agricultural land in New Jersey that had been
classified as OREO since the second quarter of 2006. The sale of
this property resulted in a gain of $1.4 million that was recorded
in other income for the 2007 second quarter. Renegotiated loan
balances declined slightly on a linked-quarter basis, reflecting
payment on a loan that was renegotiated in the 2007 first quarter.
The amount of renegotiated loans recorded at the end of the
year-ago second quarter included approximately $4.7 million for one
loan that was charged off in the 2006 third quarter. Commercial,
financial, and agricultural (C&I) loans accounted for the
majority of the increase in loans past due 90 days or more. Of the
$13.6 million in loans past due 90 days or more at June 30, 2007,
approximately 47% were C&I loans, approximately 10% were
commercial mortgage loans, and approximately 8% were CRE loans. The
rest were consumer and other types of loans. Changes in the
provision and reserve for loan losses reflected management's
assessment of risk in light of loan growth; the internal risk
rating analysis; the levels of net charge-offs, loan recoveries,
and loan repayments; the stability of the regional economy; and
regulatory guidelines. Provision for loan losses � 2007 Q2 � 2007
Q1 � 2006 Q2 Provision for loan losses (in millions) � $6.5 � �
$3.6 � � $4.2 � � � � � � � � Reserve for loan losses � At 6/30/07
� At 3/31/07 � At 6/30/06 Reserve for loan losses (in millions) �
$97.5 � � $94.5 � � $94.3 � Loan loss reserve ratio � 1.18 % � 1.17
% � 1.22 % NET INTEREST MARGIN The net interest margin for the 2007
second quarter was 3.73%, which was 6 basis points higher than for
the first quarter of 2007. The margin improved mainly because the
yield on earning assets increased slightly and the cost of funds
decreased slightly. The decrease in balances of lower-yielding
instruments in the investment securities portfolio helped raise
asset yields. Lower rates on national funding helped reduce the
cost of funding overall. Net interest margin � 2007 Q2 � 2007 Q1 �
2006 Q2 Net interest margin � 3.73% � 3.67% � 3.84% Changes in
yields and rates (in basis points) � 2007 Q2 vs. 2007 Q1 � 2007 Q2
vs. 2006 Q2 Change in yield on total earning assets � 1 bps � 26
bps Change in rate on total funds to support earning assets � (5)
bps � 37 bps Compared to the year-ago second quarter, the margin
was lower, mainly because core deposit repricing lagged loan
repricing throughout most of 2006. Between January and June 2006,
the Federal Open Market Committee raised short-term interest rates
four times, for a total of 100 basis points. After those increases,
most of the company's floating rate loans had repriced by August,
but core deposits continued to reprice throughout the second half
of the year. The timing of core deposit repricing in 2006 is what
caused core deposit rates to rise on a year-over-year basis. In
addition, the rates on savings deposits reflect WTDirect deposits.
As of July 20, 2007, the annual percentage yield on savings
deposits made through WTDirect was 5.26% for depositors who
maintain average daily balances of at least $10,000. The net
interest margin also benefited from the company�s funding strategy,
which enables management to match the repricing characteristics of
national funding closely with those of floating rate loans, as
illustrated in the following table. As a percentage of total
balances (at period end) � 6/30/07 � 3/31/07 � 6/30/06 Loans
outstanding with floating rates � 72 % � 73 % � 75 % Commercial
floating rate loans repricing in ? 30 days � 94 % � 93 % � 92 %
Commercial loans tied to a prime rate � 61 % � 61 % � 63 %
Commercial loans tied to the 30-day LIBOR � 33 % � 34 % � 31 % � �
� � � � � National CDs maturing in ? 90 days � 68 % � 77 % � 59 %
Short-term borrowings maturing in ? 90 days � 98 % � 95 % � 94 %
THE WEALTH ADVISORY SERVICES BUSINESS Wealth Advisory Services
(WAS) revenue was 14% higher than for the year-ago second quarter
and 4% higher on a linked-quarter basis. Higher revenue from trust
and investment advisory services and from family office services
accounted for these increases. WAS sales (new fees, annualized)
were 13% higher than for the year-ago second quarter, and 40%
higher than for the first quarter of 2007. Most of the increases
were in sales of investment management, family office, and estate
planning services. The markets with the highest year-over-year and
linked-quarter increases were California, Florida, Georgia, and
Pennsylvania. The Maryland market also experienced significant
year-over-year sales growth. Wealth Advisory Services revenue (in
millions) � 2007 Q2 � 2007 Q1 � 2006 Q2 Trust and investment
advisory services � $38.4 � $36.9 � $33.1 Mutual fund fees � $5.1 �
$5.1 � $5.0 Planning and other services � $9.9 � $9.5 � $8.9 Total
Wealth Advisory Services revenue � $53.4 � $51.5 � $47.0 Revenue
from trust and investment advisory services, which includes
investment management services, rose 16% from the year-ago first
quarter and 4% on a linked-quarter basis. A combination of new
business development and asset appreciation caused these increases.
Fees for trust and investment advisory services are based on the
valuations of assets in client accounts. These assets include a mix
of equities, fixed income, and other types of investments.
Investment mix of managed assets* � 2007 Q2 � 2007 Q1 � 2006 Q2
Equities � 49 % � 48 % � 51 % Fixed income � 22 % � 27 % � 26 %
Other � 29 % � 25 % � 23 % * Assets managed by Wilmington Trust
(including Wilmington Trust FSB, Massachusetts). Excludes affiliate
money managers. Revenue from planning and other services increased
11% year-over-year and 4% on a linked-quarter basis. Growth in
family office services, which the company expanded significantly in
June 2006, accounted for these increases. Fees for planning and
other services are based on the nature and complexity of the
service provided, not on asset valuations. In some cases, these
fees are based on the client's annual income. WAS profitability
improvements reflected the return on investments the company made
in this business during 2006, as well as incentives and bonuses
expense that was lower for the 2007 second quarter than the first.
Wealth Advisory Services profitability � 2007 Q2 � 2007 Q1 � 2006
Q2 Income before taxes and minority interest � $11.9 � � $7.9 � �
$9.4 � Efficiency ratio � 78.32 % � 85.61 % � 80.73 % On June 29,
2007, Wilmington Trust completed its acquisition of Bingham Legg
Advisers, LLC (BLA), a Boston-based wealth management firm that
specializes in tax-sensitive investment strategies for
high-net-worth clients. BLA took the Wilmington Trust name and its
employees became Wilmington Trust staff members. This acquisition
added $1.3 billion of assets under management and $874 million of
assets under administration. This transaction was the main cause of
the 2007 second quarter increases in goodwill and other assets.
Since this transaction occurred at the end of June, it had no
effect on the second quarter income statement, and BLA�s staff
members were not included in Wilmington Trust�s headcount as of
June 30, 2007. Starting with the 2007 third quarter, BLA�s
financial results will be consolidated with Wilmington Trust�s, and
its revenue will be recorded as trust and investment advisory
revenue in the Wealth Advisory Services business. Management
expects this acquisition to be modestly accretive to earnings for
the 2007 full-year. THE CORPORATE CLIENT SERVICES BUSINESS
Corporate Client Services (CCS) revenue was 19% higher than for the
year-ago second quarter, as all four components of this business
recorded double-digit increases in revenue year over year. On a
linked-quarter basis, CCS revenue was 3% higher. Some of the real
estate-backed securitizations for which CCS provides trust and
administrative services hold a blend of prime and subprime
residential mortgages. Prevailing concerns about the subprime
market have little, if any, effect on CCS revenue because the
corresponding fees are based on services provided regardless of the
underlying collateral. Securitizations backed by U.S. residential
mortgages accounted for approximately 6% of total CCS revenue for
the 2007 second quarter. Corporate Client Services revenue (in
millions) � 2007 Q2 � 2007 Q1 � 2006 Q2 Capital markets services �
$11.2 � $10.2 � $8.8 Entity management services � $7.4 � $7.1 �
$6.6 Retirement services � $3.2 � $3.4 � $2.9 Investment and cash
management services � $3.0 � $3.3 � $2.5 Total Corporate Client
Services revenue � $24.8 � $24.0 � $20.8 Revenue from capital
markets services rose 27% year over year and 10% on a
linked-quarter basis. Demand was particularly strong during the
quarter for services that support tender option bonds, defeasance
of commercial mortgage-backed securitizations, and trust-preferred
securities. Sales of capital markets services were 31% higher year
over year and 16% higher on a linked-quarter basis. Revenue from
the entity management component rose 12% year over year and 4% on a
linked-quarter basis. These increases were due largely to strong
demand for corporate governance services in Germany, where CCS
opened an office in August 2006, and Ireland, where CCS has had a
presence since 2004. More business from the Cayman Islands also
contributed to the growth in entity management revenue, reflecting
the acquisition in May 2006 of a corporate services business there.
In the retirement services component, revenue was 10% higher
year-over-year due to strong demand for executive compensation plan
services, services for defined contribution plans, and market
appreciation. On a linked-quarter basis, retirement services
revenue was lower because the amount recorded for the 2007 first
quarter included plan distribution fees of approximately $300,000
that are not expected to occur again in 2007. Revenue from
institutional investment and cash management services was 20%
higher than for the year-ago second quarter, reflecting the efforts
begun in 2006 to leverage the company�s expertise in fixed income
management and market these services more proactively. CCS
investment and cash management revenue � 2007 Q2 � 2007 Q1 � 2006
Q2 Portion based on U.S. fixed income instruments � 38 % � 40 % �
32 % Portion based on money market mutual fund balances � 62 % � 60
% � 68 % Fees from investment and cash management services were
lower on a linked-quarter basis because managed asset levels
decreased. Institutional clients use these services to manage
residual cash over periods that can range from a matter of days to
a number of years, and revenue from these services can fluctuate up
or down from quarter to quarter. CCS profitability improvements
reflected the return on investments the company made in this
business during 2006. Corporate Client Services profitability 2007
Q2 � 2007 Q1 � 2006 Q2 Income before taxes and minority interest
$8.6 � � $8.3 � � $7.2 � Efficiency ratio 70.85 % � 71.28 % � 71.37
% In June 2007, CCS expanded its presence in Europe by acquiring a
corporate services provider in Luxembourg. The eight staff members
in the Luxembourg office specialize in providing management,
domiciliation, accounting, and director services for international
holding and finance companies. The Luxembourg office�s financial
results have been fully consolidated and its revenue is recorded as
entity management revenue. Management expects this acquisition to
have a neutral effect on 2007 full-year earnings. AFFILIATE MONEY
MANAGERS Assets under management at value-style manager Cramer
Rosenthal McGlynn (CRM) reached $11.93 billion, another record
high. This was $713 million more than at March 31, 2007, and $2.54
billion more than at the end of the year-ago second quarter. The
managed asset levels, along with hedge fund performance fees,
generated revenue from CRM that was 15% higher year-over-year and
34% higher on a linked-quarter basis. Affiliate manager revenue (in
millions) � 2007 Q2 � 2007 Q1 � 2006 Q2 Cramer Rosenthal McGlynn �
$6.3 � $4.7 � $5.5 Roxbury Capital Management � $0.2 � $0.1 � $0.3
Total revenue from affiliates � $6.5 � $4.8 � $5.8 � � � � � � �
Assets under management (in millions) � At 6/30/07 � At 3/31/07 �
At 6/30/06 Cramer Rosenthal McGlynn � $11,928.7 � $11,215.7 �
$9,392.0 Roxbury Capital Management � $3,005.3 � $3,121.6 �
$3,253.3 At growth-style manager Roxbury Capital Management (RCM),
the levels of managed assets and revenue reflected the firm�s
repositioning following the termination of its micro-cap and fixed
income products during the second half of 2006. NONINTEREST
EXPENSES Compared to the year-ago second quarter, total noninterest
expenses were 8% higher, mainly because most of the expansion
investments the company made in 2006 did not affect expenses until
the second half of the year. On a linked-quarter basis, expenses
were 4% lower, mainly because incentives and bonuses, payroll
taxes, and 401(k) plan matching expense decreased. The amount of
incentives and bonuses expense recorded for the first quarter of
2007 included approximately $2 million of expenses not expected to
occur again in 2007. Expenses associated with payroll taxes and
401(k) plans, which are recorded in employment benefits expense,
reset at the beginning of each year and typically decline as the
maximum limits for each are met. Expenses for the 2007 second
quarter do not reflect the Boston acquisition, which was completed
on June 29, 2007, or the Boston office�s 24 full-time-equivalent
(FTE) staff members. The Boston office�s expenses and headcount
will be included beginning with the third quarter of 2007. Expenses
(dollars in millions) � 2007 Q2 � 2007 Q1 � 2006 Q2
Full-time-equivalent staff members � 2,574 � 2,579 � 2,515 � � � �
� � � Salaries and wages expense � $41.9 � $41.8 � $37.8 � � � � �
� � Stock-based compensation expense � $1.4 � $3.1 � $1.5 Total
incentives and bonuses expense � $11.4 � $14.0 � $10.3 � � � � � �
� Employment benefits expense � $11.5 � $14.6 � $11.9 � � � � � � �
Total staffing-related expense � $64.8 � $70.4 � $60.0 � � � � � �
� Total noninterest expenses � $106.0 � $110.4 � $98.3 Most of the
year-over-year increases in expenses were in staffing-related and
advertising costs. These increases resulted from 2006 expansion
initiatives, including: The East Coast expansion of family office
services in the Wealth Advisory Services business, which added 34
staff members and one new office. This expansion occurred in June
2006 and the year-ago second quarter included only one month of the
associated expense. New commercial banking and wealth management
offices in Pennsylvania and New Jersey and staff additions
throughout the Regional Banking footprint. In the Corporate Client
Services business, expansion in Europe and the addition of
technology and staff that added analytical and risk management
capabilities to CDO administration services. The November 2006
launch of WTDirect, the company�s Internet-only deposit offering.
WTDirect accounted for most of the year-over-year and
linked-quarter increases in advertising costs. These initiatives
were the main cause of the year-over-year increase in the number of
FTE staff members. FTE headcount decreased on a linked-quarter
basis as technology enhancements made in 2006 reduced the need to
replace banking operations staff members who leave the company.
Incentives and bonuses expense for the 2007 second quarter included
an adjustment to stock-based compensation expense of approximately
$0.5 million. This adjustment was made because stock option
forfeitures were higher than estimated, which reduced the expense
associated with their award. Absent this adjustment, incentives and
bonuses expense for the second quarter would have been
approximately $11.9 million instead of $11.4 million. SHARE
REPURCHASES During the 2007 second quarter, the company repurchased
1,002,784 shares of its stock at a total cost of $42.3 million and
an average price per share of $42.21. This brought the total number
of shares repurchased under the current 8-million-share program,
which commenced in April 2002, to 2,401,316, leaving 5,598,684
shares available for repurchase. OUTLOOK FOR 2007 Commenting on the
outlook for the remainder of 2007, Cecala said: �Thanks to its
broad diversification, the economy in the Delaware Valley region
remains stable, and unemployment rates remain below the U.S.
average. We are seeing a slowdown in the pace of economic growth,
but not to the extent that some other parts of the country seem to
be experiencing. �Housing market activity, for example, is slower
than what we experienced over the last several years, but what we
see is a return to normalcy, in terms of price appreciation and
number of days on market. �The Regional Banking business is not
immune to these conditions, and that is reflected in the pace of
loan growth. �Assuming no change in short-term market interest
rates, the net interest margin should remain close to its current
level, depending on how we manage the investment securities
portfolio. Absent any significant yield opportunities, we see no
reason to increase the size of the portfolio at this time. �As you
can see from our savings account balances, our WTDirect
high-interest savings account has proven to be a successful and
cost-effective new source of funding. We will continue to pursue
other ways to add core deposits efficiently, without incurring the
costs of a large-scale expansion of our branch office network, in
order to reduce our use of national funding. Because the rates on
these new sources of funding are similar to those we are paying for
national funding, we do not expect these initiatives to affect the
net interest margin. �Credit metrics are stable. The net charge-off
ratio remains at an historically low level and 97% of loans
outstanding have pass ratings in the internal risk rating analysis,
as has been the case since the fourth quarter of 2005. �Opposite
the economic cycle we are seeing in the banking business, our
advisory businesses are doing extremely well. �We expect to see
continued growth in Wealth Advisory revenue, especially from the
family office expansion we completed last year, and the Boston
acquisition we completed last month. �The same holds true for the
Corporate Client Services business, which should see continued
growth in Europe and revenue from collateralized debt obligation
administration. �In April, we projected noninterest expenses to be
in the range of $108 million. While second quarter expenses were
lower than that, we would expect to see expenses in the $108
million to $110 million range for each of the remaining quarters in
2007. This includes the expenses associated with our recent
acquisitions in Boston and Luxembourg. �In conclusion, our outlook
is very positive. We see tremendous potential for growth,
especially from the investments we have made over the past 12
months, and we continue to explore additional ways to invest in the
future growth of our company.� CONFERENCE CALL Management will
discuss the 2007 second 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 (888) 868-9083 and enter PIN
8891086. From outside the United States, dial (973) 935-8512 and
enter PIN 8891086. A rebroadcast of the call will be available from
12:30 p.m. (EDT) today until 5:00 p.m. (EDT) on Friday, July 27, by
calling (877) 519-4471 inside the United States or (973) 341-3080
from outside the United States. Use PIN 8891086 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 36 countries, and Corporate
Client Services for institutional clients in 86 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, Massachusetts, Minnesota, Nevada, New Jersey, New York,
Pennsylvania, South Carolina, Vermont, the Cayman Islands, the
Channel Islands, London, Dublin, Frankfurt, and Luxembourg. For
more information, visit www.wilmingtontrust.com. WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the six months ended
June 30, 2007 � HIGHLIGHTS � Three Months Ended Six Months Ended �
June 30, June 30, % June 30, June 30, % � � 2007 � � 2006 � Change
� � 2007 � � 2006 � � Change OPERATING RESULTS (in millions) Net
interest income $ 92.8 $ 90.4 2.7 $ 183.7 $ 177.7 3.4 Provision for
loan losses (6.5 ) (4.2 ) 54.8 (10.1 ) (8.2 ) 23.2 Noninterest
income 96.9 86.3 12.3 188.4 169.0 11.5 Noninterest expense 106.0
98.3 7.8 216.4 195.9 10.5 Net income 48.9 46.9 4.3 91.8 91.1 0.8 �
PER SHARE DATA Basic net income $ 0.71 $ 0.69 2.9 $ 1.34 $ 1.33 0.8
Diluted net income 0.70 0.67 4.5 1.32 1.31 0.8 Dividends paid 0.335
0.315 6.3 0.65 0.615 5.7 Book value at period end 15.77 15.54 1.5
15.79 15.54 1.6 Closing price at period end 41.51 42.18 (1.6 )
41.51 42.18 (1.6 ) Market range: High 43.14 45.21 (4.6 ) 44.55
45.21 (1.5 ) Low 39.62 40.22 (1.5 ) 39.62 38.54 2.8 � AVERAGE
SHARES OUTSTANDING (in thousands) Basic 68,403 68,475 (0.1 ) 68,464
68,274 0.3 Diluted 69,431 69,776 (0.5 ) 69,541 69,606 (0.1 ) �
AVERAGE BALANCE SHEET (in millions) Investment portfolio $ 1,866.1
$ 1,817.9 2.7 $ 1,935.6 $ 1,848.2 4.7 Loans 8,156.3 7,675.9 6.3
8,114.4 7,561.2 7.3 Earning assets 10,059.9 9,512.6 5.8 10,097.4
9,427.6 7.1 Core deposits 4,920.2 4,948.5 (0.6 ) 4,878.0 4,893.7
(0.3 ) Stockholders' equity 1,120.2 1,060.0 5.7 1,091.3 1,043.3 4.6
� STATISTICS AND RATIOS (net income annualized) Return on average
stockholders' equity 17.51 % 17.75 % (1.4 ) 16.96 % 17.61 % (3.7 )
Return on average assets 1.80 % 1.81 % (0.6 ) 1.69 % 1.79 % (5.6 )
Net interest margin (taxable equivalent) 3.73 % 3.84 % (2.9 ) 3.70
% 3.83 % (3.4 ) Dividend payout ratio 47.03 % 45.84 % 2.6 48.47 %
45.99 % 5.4 Full-time equivalent headcount 2,574 2,515 2.3 2,574
2,515 2.3 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and
for the six months ended June 30, 2007 � QUARTERLY INCOME STATEMENT
� Three Months Ended % Change From: June30, Mar.31, Dec.31,
Sept.30, June30, Prior Prior (In millions) � � 2007 � 2007 � 2006 �
2006 � 2006 Quarter Year NET INTEREST INCOME Interest�income $
180.8 $ 180.0 $ 182.0 $ 175.0 $ 165.0 0.4 9.6 Interest expense � �
88.0 � � 89.2 � � 89.6 � � 82.0 � � 74.6 � (1.3 ) 18.0 Net interest
income 92.8 90.8 92.4 93.0 90.4 2.2 2.7 Provision for loan losses �
� (6.5 ) � (3.6 ) � (6.5 ) � (6.6 ) � (4.2 ) 80.6 54.8 Net interest
income after provision for loan losses 86.3 � � 87.2 � � 85.9 � �
86.4 � � 86.2 � (1.0 ) 0.1 NONINTEREST INCOME Advisory fees: Wealth
Advisory Services Trust and investment advisory fees 38.4 36.9 36.1
33.0 33.1 4.1 16.0 Mutual fund fees 5.1 5.1 5.1 5.3 5.0 ---- 2.0
Planning and other services � � 9.9 � � 9.5 � � 10.1 � � 8.8 � �
8.9 � 4.2 11.2 Total Wealth Advisory Services 53.4 � � 51.5 � �
51.3 � � 47.1 � � 47.0 3.7 13.6 Corporate Client Services Capital
markets services 11.2 10.2 10.4 8.7 8.8 9.8 27.3 Entity management
services 7.4 7.1 7.1 6.8 6.6 4.2 12.1 Retirement services 3.2 3.4
2.9 2.9 2.9 (5.9 ) 10.3 Investment /cash management services � �
3.0 � � 3.3 � � 3.0 � � 2.7 � � 2.5 (9.1 ) 20.0 Total Corporate
Client Services 24.8 � � 24.0 � � 23.4 � � 21.1 � � 20.8 3.3 19.2
Cramer Rosenthal McGlynn 6.3 4.7 5.3 4.6 5.5 34.0 14.5 Roxbury
Capital Management � � 0.2 � � 0.1 � � 0.1 � � ---- � � 0.3 100.0
(33.3 ) Advisory fees 84.7 80.3 80.1 72.8 73.6 5.5 15.1
Amortization of affiliate intangibles � � (1.1 ) � (1.1 ) � (1.1 )
� (1.1 ) � (1.0 ) ---- 10.0 Advisory fees after amortization of
affiliate intangibles 83.6 � � 79.2 � � 79.0 � � 71.7 � � 72.6 5.6
15.2 Service charges on deposit accounts 7.0 6.8 7.1 7.3 7.0 2.9
---- Other noninterest income 6.2 5.4 6.2 5.5 6.8 14.8 (8.8 )
Securities gains/(losses) � � 0.1 � � ---- � � 0.2 � � 0.1 � � (0.1
) ---- ---- Total noninterest income 96.9 � � 91.4 � � 92.5 � �
84.6 � � 86.3 6.0 12.3 Net interest and noninterest income 183.2 �
� 178.6 � � 178.4 � � 171.0 � � 172.5 2.6 6.2 NONINTEREST EXPENSE
Salaries and wages 41.9 41.8 40.3 39.5 37.8 0.2 10.8 Incentives and
bonuses 11.4 14.0 10.3 8.9 10.3 (18.6 ) 10.7 Employment benefits
11.5 14.6 11.4 11.4 11.9 (21.2 ) (3.4 ) Net occupancy 6.8 6.8 6.7
6.7 6.3 ---- 7.9 Furniture, equipment, and supplies 9.8 9.7 10.3
9.2 9.9 1.0 (1.0 ) Other noninterest expense: Advertising and
contributions 2.8 2.7 3.2 2.2 2.1 3.7 33.3 Servicing and consulting
fees 2.8 2.4 2.9 2.8 2.4 16.7 16.7 Subadvisor expense 2.5 2.5 2.3
2.7 2.9 ---- (13.8 ) Travel, entertainment, and training 2.4 2.2
3.4 2.5 2.3 9.1 4.3 Originating and processing fees 2.7 2.5 3.1 2.8
2.4 8.0 12.5 Other expense � � 11.4 � � 11.2 � � 11.0 � � 9.9 � �
10.0 � 1.8 14.0 Total other noninterest expense 24.6 � � 23.5 � �
25.9 � � 22.9 � � 22.1 4.7 11.3 Total noninterest expense before
impairment 106.0 110.4 104.9 98.6 98.3 (4.0 ) 7.8 Impairment
write-down ---- � � ---- � � ---- � � 72.3 � � ---- � ---- ----
Total noninterest expense 106.0 � � 110.4 � � 104.9 � � 170.9 � �
98.3 � (4.0 ) 7.8 Income before income taxes and minority interest
77.2 68.2 73.5 0.1 74.2 13.2 4.0 Applicable income taxes � � 28.3 �
� 24.6 � � 26.3 � � (5.0 ) � 27.2 � 15.0 4.0 Net income before
minority interest 48.9 43.6 47.2 5.1 47.0 12.2 4.0 Minority
interest � � ---- � � 0.6 � � (0.3 ) � (0.1 ) � 0.1 � (100.0 )
(100.0 ) Net income $ 48.9 � $ 43.0 � $ 47.5 � $ 5.2 � $ 46.9 �
13.7 4.3 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and
for the six months ended June 30, 2007 � YEAR-TO-DATE INCOME
STATEMENT � Six Months Ended � June 30, June 30, % (In millions) �
� 2007 � 2006 � Change NET INTEREST INCOME Interest income $ 360.9
$ 317.9 13.5 Interest expense � � 177.2 � � 140.2 � 26.4 Net
interest income 183.7 177.7 3.4 Provision for loan losses � � (10.1
) � (8.2 ) 23.2 Net interest income after provision for loan losses
173.6 � � 169.5 � 2.4 NONINTEREST INCOME Advisory fees: Wealth
Advisory Services Trust and investment advisory fees 75.4 67.5 11.7
Mutual fund fees 10.1 9.7 4.1 Planning and other services � � 19.4
� � 16.3 � 19.0 Total Wealth Advisory Services 104.9 � � 93.5 �
12.2 Corporate Client Services Capital markets services 21.4 17.9
19.6 Entity management services 14.5 13.0 11.5 Retirement services
6.6 5.6 17.9 Investment/cash management services � � 6.3 � � 4.6
37.0 Total Corporate Client Services 48.8 � � 41.1 18.7 Cramer
Rosenthal McGlynn 11.0 9.5 15.8 Roxbury Capital Management � � 0.3
� � 1.1 (72.7 ) Advisory fees 165.0 145.2 13.6 Amortization of
affiliate intangibles � � (2.2 ) � (2.0 ) 10.0 Advisory fees after
amortization of affiliate intangibles 162.8 � � 143.2 13.7 Service
charges on deposit accounts 13.8 13.9 (0.7 ) Other noninterest
income 11.7 12.0 (2.5 ) Securities gains/(losses) � � 0.1 � � (0.1
) ---- Total noninterest income 188.4 � � 169.0 11.5 Net interest
and noninterest income 362.0 � � 338.5 6.9 NONINTEREST EXPENSE
Salaries and wages 83.7 74.6 12.2 Incentives and bonuses 25.4 20.6
23.3 Employment benefits 26.2 25.4 3.1 Net occupancy 13.6 12.2 11.5
Furniture, equipment, and supplies 19.4 19.1 1.6 Other noninterest
expense: Advertising and contributions 5.5 4.1 34.1 Servicing and
consulting fees 5.2 4.7 10.6 Subadvisor expense 5.0 5.7 (12.3 )
Travel, entertainment, and training 4.6 4.5 2.2 Originating and
processing fees 5.3 5.2 1.9 Other expense � � 22.5 � � 19.8 � 13.6
Total other noninterest expense 48.1 � � 44.0 9.3 Total noninterest
expense 216.4 � � 195.9 � 10.5 Income before income taxes and
minority interest 145.6 142.6 2.1 Applicable income taxes � � 53.1
� � 51.4 � 3.3 Net income before minority interest 92.5 91.2 1.4
Minority interest � � 0.7 � � 0.1 � N/M Net income $ 91.8 � $ 91.1
� 0.8 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for
the six months ended June 30, 2007 � STATEMENT OF CONDITION � %
Change From: June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Prior
Prior (In millions) � � 2007 � 2007 � 2006 � 2006 � 2006 � Quarter
� Year ASSETS Cash and due from banks $ 231.8 � $ 222.2 � $ 249.7 �
$ 268.4 � $ 258.5 � 4.3 (10.3 ) Federal funds sold and securities
purchased under agreements to resell 18.0 � � 68.9 � � 68.9 � �
38.4 � � 66.7 � (73.9 ) (73.0 ) Investment securities: U.S.
Treasury 103.8 102.5 125.2 230.8 181.4 1.3 (42.8 ) Government
agencies 634.8 743.9 807.1 533.0 416.5 (14.7 ) 52.4 Obligations of
state and political subdivisions 19.0 9.1 9.5 9.4 10.4 108.8 82.7
Preferred stock 63.8 74.2 90.5 91.0 88.1 (14.0 ) (27.6 )
Mortgage-backed securities 605.1 656.2 689.5 726.8 751.0 (7.8 )
(19.4 ) Other securities � � 387.5 � � 391.5 � � 392.8 � � 391.3 �
� 389.8 � (1.0 ) (0.6 ) Total investment securities 1,814.0 � �
1,977.4 � � 2,114.6 � � 1,982.3 � � 1,837.2 � (8.3 ) (1.3 ) Loans:
Commercial, financial and agricultural 2,483.7 2,455.2 2,533.5
2,378.1 2,445.5 1.2 1.6 Real estate - construction 1,747.0 1,665.5
1,663.9 1,610.9 1,574.3 4.9 11.0 Mortgage - commercial � � 1,390.5
� � 1,378.3 � � 1,296.1 � � 1,254.5 � � 1,222.8 � 0.9 13.7 Total
commercial loans 5,621.2 � � 5,499.0 � � 5,493.5 � � 5,243.5 � �
5,242.6 � 2.2 7.2 Mortgage - residential 563.1 553.5 536.9 518.7
503.0 1.7 11.9 Consumer 1,517.0 1,503.9 1,517.0 1,489.7 1,452.4 0.9
4.4 Secured with liquid collateral � � 573.4 � � 532.0 � � 547.5 �
� 528.3 � � 557.2 � 7.8 2.9 Total retail loans 2,653.5 � � 2,589.4
� � 2,601.4 � � 2,536.7 � � 2,512.6 � 2.5 5.6 Total loans net of
unearned income 8,274.7 8,088.4 8,094.9 7,780.2 7,755.2 2.3 6.7
Reserve for loan losses � � (97.5 ) � (94.5 ) � (94.2 ) � (93.6 ) �
(94.3 ) 3.2 3.4 Net loans 8,177.2 � � 7,993.9 � � 8,000.7 � �
7,686.6 � � 7,660.9 � 2.3 6.7 Premises and equipment 148.6 148.8
150.3 151.6 151.2 (0.1 ) (1.7 ) Goodwill 328.2 291.5 291.4 291.1
363.0 12.6 (9.6 ) Other intangibles 40.1 34.2 35.4 38.8 38.9 17.3
3.1 Other assets � � 273.1 � � 254.0 � � 246.0 � � 251.9 � � 236.9
� 7.5 15.3 Total assets $ 11,031.0 � $ 10,990.9 � $ 11,157.0 � $
10,709.1 � $ 10,613.3 � 0.4 3.9 � LIABILITIES AND STOCKHOLDERS'
EQUITY Deposits: Noninterest-bearing demand $ 812.7 $ 792.0 $ 913.6
$ 861.3 $ 813.8 2.6 (0.1 ) Interest-bearing: Savings 497.1 422.7
313.8 292.5 313.1 17.6 58.8 Interest-bearing demand 2,343.6 2,336.1
2,417.5 2,417.5 2,355.9 0.3 (0.5 ) Certificates under $100,000
1,019.8 1,014.2 1,012.6 995.5 991.1 0.6 2.9 Local certificates
$100,000 and over � � 370.8 � � 447.6 � � 474.4 � � 574.7 � � 550.6
� (17.2 ) (32.7 ) Total core deposits 5,044.0 5,012.6 5,131.9
5,141.5 5,024.5 0.6 0.4 National money market deposits 139.5 142.5
143.1 ---- ---- (2.1 ) ---- National certificates $100,000 and over
� � 2,979.3 � � 2,970.6 � � 3,054.1 � � 2,742.7 � � 2,760.6 � 0.3
7.9 Total deposits 8,162.8 � � 8,125.7 � � 8,329.1 � � 7,884.2 � �
7,785.1 � 0.5 4.9 Short-term borrowings: Federal funds purchased
and securities sold under agreements to repurchase 1,174.4 1,153.5
1,145.8 1,161.7 1,160.0 1.8 1.2 U.S. Treasury demand � � 2.5 � �
---- � � 13.0 � � 7.0 � � 24.5 � ---- (89.8 ) Total short-term
borrowings 1,176.9 � � 1,153.5 � � 1,158.8 � � 1,168.7 � � 1,184.5
� 2.0 (0.6 ) Other liabilities 228.8 229.8 221.3 196.4 183.1 (0.4 )
25.0 Long-term debt � � 390.2 � � 389.5 � � 388.5 � � 395.2 � �
393.4 � 0.2 (0.8 ) Total liabilities 9,958.7 � � 9,898.5 � �
10,097.7 � � 9,644.5 � � 9,546.1 � 0.6 4.3 Minority interest 0.2
0.2 ---- 0.3 0.3 ---- (33.3 ) Stockholders' equity � � 1,072.1 � �
1,092.2 � � 1,059.3 � � 1,064.3 � � 1,066.9 � (1.8 ) 0.5 Total
liabilities and stockholders' equity $ 11,031.0 � $ 10,990.9 � $
11,157.0 � $ 10,709.1 � $ 10,613.3 � 0.4 3.9 WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the six months ended
June 30, 2007 � AVERAGE STATEMENT OF CONDITION 2007 Second Quarter
2007 First Quarter 2006 Fourth Quarter 2006 Third Quarter 2006
Second Quarter % Change From: Prior Quarter Prior Year (In
millions) � � � � � � � � � � � � ASSETS Cash and due from banks $
203.4 � � $ 213.9 � � $ 218.2 � � $ 206.9 � � $ 209.3 � (4.9 ) (2.8
) Federal funds sold and securities purchased under agreements to
resell � � � 37.5 � � � 57.3 � � � 144.8 � � � 28.8 � � � 18.8 �
(34.6 ) 99.5 Investment securities: U.S. Treasury 105.0 123.6 177.4
157.0 146.7 (15.0 ) (28.4 ) Government agencies 652.9 728.9 642.1
475.9 394.1 (10.4 ) 65.7 Obligations of state and political
subdivisions 12.6 9.1 9.4 9.6 10.5 38.5 20.0 Preferred stock 68.5
85.1 90.7 89.4 89.2 (19.5 ) (23.2 ) Mortgage-backed securities
633.9 668.8 705.5 735.1 780.1 (5.2 ) (18.7 ) Other securities � �
393.2 � � � 390.3 � � � 392.5 � � � 390.0 � � � 397.3 � 0.7 (1.0 )
Total investment securities � 1,866.1 � � � 2,005.8 � � � 2,017.6 �
� � 1,857.0 � � � 1,817.9 � (7.0 ) 2.7 Loans: Commercial,
financial, and agricultural 2,500.1 2,466.2 2,430.5 2,407.7 2,463.5
1.4 1.5 Real estate - construction 1,696.7 1,669.8 1,634.9 1,588.7
1,517.5 1.6 11.8 Mortgage - commercial � � 1,376.9 � � � 1,339.9 �
� � 1,281.4 � � � 1,238.5 � � � 1,212.8 � 2.8 13.5 Total commercial
loans � 5,573.7 � � � 5,475.9 � � � 5,346.8 � � � 5,234.9 � � �
5,193.8 � 1.8 7.3 Mortgage - residential 553.9 542.1 524.8 507.8
484.2 2.2 14.4 Consumer 1,503.9 1,512.3 1,496.1 1,470.5 1,441.6
(0.6 ) 4.3 Secured with liquid collateral � � 524.8 � � � 541.7 � �
� 545.2 � � � 546.1 � � � 556.3 � (3.1 ) (5.7 ) Total retail loans
� 2,582.6 � � � 2,596.1 � � � 2,566.1 � � � 2,524.4 � � � 2,482.1 �
(0.5 ) 4.0 Total loans net of unearned income 8,156.3 8,072.0
7,912.9 7,759.3 7,675.9 1.0 6.3 Reserve for loan losses � (93.3 ) �
� (93.2 ) � � (91.6 ) � � (93.5 ) � � (91.8 ) 0.1 1.6 Net loans �
8,063.0 � � � 7,978.8 � � � 7,821.3 � � � 7,665.8 � � � 7,584.1 �
1.1 6.3 Premises and equipment 148.6 150.3 151.5 152.1 150.3 (1.1 )
(1.1 ) Goodwill 307.8 291.4 290.7 362.3 357.3 5.6 (13.9 ) Other
intangibles 34.0 34.8 38.1 38.5 37.3 (2.3 ) (8.8 ) Other assets �
261.3 � � � 245.0 � � � 241.2 � � � 229.0 � � � 209.6 � 6.7 24.7
Total assets $ 10,921.7 � � $ 10,977.3 � � $ 10,923.4 � � $
10,540.4 � � $ 10,384.6 � (0.5 ) 5.2 � LIABILITIES AND
STOCKHOLDERS' EQUITY � Deposits: Noninterest-bearing demand $ 702.6
$ 749.1 $ 793.6 $ 737.2 $ 742.0 (6.2 ) (5.3 ) Interest-bearing:
Savings 463.4 365.3 294.7 304.1 321.2 26.9 44.3 Interest-bearing
demand 2,312.5 2,250.4 2,304.8 2,374.1 2,364.4 2.8 (2.2 )
Certificates under $100,000 1,014.5 1,012.9 1,009.3 988.1 980.9 0.2
3.4 Local certificates $100,000 and over � � 427.2 � � � 457.7 � �
� 535.8 � � � 546.5 � � � 540.0 � (6.7 ) (20.9 ) Total core
deposits 4,920.2 4,835.4 4,938.2 4,950.0 4,948.5 1.8 (0.6 )
National money market deposits 142.2 143.0 69.9 ---- ---- (0.6 )
---- National certificates $100,000 and over � � 2,853.8 � � �
2,992.1 � � � 3,042.2 � � � 2,864.6 � � � 2,656.1 � (4.6 ) 7.4
Total deposits � 7,916.2 � � � 7,970.5 � � � 8,050.3 � � � 7,814.6
� � � 7,604.6 � (0.7 ) 4.1 Short-term borrowings: Federal funds
purchased and securities sold under agreements to repurchase � �
1,270.8 1,318.5 1,221.4 1,048.8 1,146.0 (3.6 ) 10.9 U.S. Treasury
demand � 10.4 � � � 5.4 � � � 10.0 � � � 6.8 � � � 16.0 � 92.6
(35.0 ) Total short-term borrowings � 1,281.2 � � � 1,323.9 � � �
1,231.4 � � � 1,055.6 � � � 1,162.0 � (3.2 ) 10.3 Other liabilities
214.2 231.5 183.0 193.9 164.4 (7.5 ) 30.3 Long-term debt � 389.7 �
� � 388.8 � � � 391.1 � � � 394.2 � � � 393.3 � 0.2 (0.9 ) Total
liabilities � 9,801.3 � � � 9,914.7 � � � 9,855.8 � � � 9,458.3 � �
� 9,324.3 � (1.1 ) 5.1 Minority interest 0.2 0.4 0.2 0.4 0.3 (50.0
) (33.3 ) Stockholders' equity � 1,120.2 � � � 1,062.2 � � �
1,067.4 � � � 1,081.7 � � � 1,060.0 � 5.5 5.7 Total liabilities and
stockholders' equity � $ 10,921.7 � � $ 10,977.3 � � $ 10,923.4 � �
$ 10,540.4 � � $ 10,384.6 � (0.5 ) 5.2 WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the six months ended June 30, 2007
� YIELDS AND RATES � � 2007 2007 2006 2006 2006 YIELDS/RATES
(tax-equivalent basis) � SecondQuarter � FirstQuarter �
FourthQuarter � ThirdQuarter � SecondQuarter EARNING ASSETS:
Federal funds sold and securities purchased under agreements to
resell 5.18 % 5.05 % 5.23 % 4.61 % 5.00 % � U.S. Treasury 3.89 4.11
3.97 4.03 3.54 Government agencies 4.73 4.70 4.50 4.19 3.94
Obligations of state and political subdivisions 7.83 9.00 8.79 8.68
8.82 Preferred stock 8.03 7.50 7.70 7.57 7.62 Mortgage-backed
securities 4.22 4.25 4.18 4.02 4.17 Other securities 6.33 6.28 6.43
6.37 6.16 Total investment securities 4.98 4.95 4.87 4.74 4.69 �
Commercial, financial, and agricultural 7.90 8.04 8.02 8.06 7.70
Real estate - construction 8.56 8.60 8.69 8.72 8.38 Mortgage -
commercial 8.02 8.03 8.11 8.09 7.82 Total commercial loans 8.13
8.21 8.24 8.27 7.93 Mortgage - residential 5.87 5.95 5.76 5.77 5.78
Consumer 7.44 7.41 7.39 7.33 7.10 Secured with liquid collateral
6.83 6.81 6.87 6.87 6.44 Total retail loans 6.98 6.98 6.95 6.91
6.70 Total loans 7.77 7.81 7.82 7.83 7.53 Total earning assets 7.23
7.22 7.19 7.21 6.97 � FUNDS USED TO SUPPORT EARNING ASSETS: Savings
2.07 1.29 0.51 0.42 0.39 Interest-bearing demand 1.20 1.20 1.19
1.10 1.04 Certificates under $100,000 4.45 4.35 4.22 3.87 3.51
Local certificates $100,000 and over 4.55 5.00 4.81 4.71 4.35 Core
interest-bearing deposits 2.41 2.42 2.35 2.17 1.99 National money
market deposits 5.46 5.53 5.39 ---- ---- National certificates
$100,000 and over 5.40 5.43 5.46 5.37 5.05 Total interest- bearing
deposits 3.66 3.73 3.68 3.47 3.18 � Federal funds purchased and
securities sold under agreements to repurchase 4.83 4.97 5.03 5.05
4.73 U.S. Treasury demand 5.11 5.02 5.03 5.16 4.80 Total short-term
borrowings 4.83 4.97 5.03 5.05 4.73 Long-term debt 7.00 6.86 6.76
6.79 6.70 Total interest-bearing liabilities 3.97 4.05 4.00 3.82
3.56 Total funds used to support earning assets 3.50 3.55 3.52 3.36
3.13 Net interest margin (tax-equivalent basis) 3.73 3.67 3.67 3.85
3.84 � Year-to-date net interest margin 3.70 3.67 3.79 3.84 3.83 �
Prime rate 8.25 8.25 8.25 8.25 7.90 � Tax-equivalent net interest
income (in millions) $ 93.8 $ 91.9 $ 93.5 $ 94.1 $ 91.5 � Average
earning assets at historical cost 10,082.8 10,163.3 10,105.2
9,694.5 9,560.0 Average fair valuation adjustment on investment
securities available for sale (22.9 ) (28.2 ) (29.9 ) (49.4 ) (47.4
) Average earnings assets 10,059.9 � 10,135.1 � 10,075.3 � 9,645.1
� 9,512.6 � Average rates are calculated using average balances
based on historical cost and do not reflect fair valuation
adjustments. WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of
and for the six months ended June 30, 2007 � SUPPLEMENTAL
INFORMATION � Three Months Ended % Change From: � June30, Mar.31,
Dec.31, Sept.30, June30, Prior Prior � � � � � 2007 � 2007 � 2006 �
2006 � 2006 � Quarter � Year NET INCOME Net income per share Basic
$ 0.71 $ 0.63 $ 0.69 $ 0.08 $ 0.69 12.7 2.9 Diluted 0.70 0.62 0.68
0.07 0.67 12.9 4.5 Weighted average shares outstanding (in
thousands) Basic 68,403 68,525 68,455 68,647 68,475 Diluted 69,431
69,653 69,680 69,933 69,776 Net income as a percentage of: Average
assets 1.80 % � 1.59 % � 1.73 % � 0.20 % � 1.81 % � Average
stockholders' equity 17.51 16.42 17.66 1.91 17.75 � ASSETS UNDER
MANAGEMENT * (in billions) Wilmington Trust $ 31.9 $ 31.8 $ 31.3 $
29.1 $ 28.3 0.3 12.7 Wilmington Trust FSB, MA (formerly Bingham
Legg Advisers) 1.3 ---- ---- ---- ---- ---- ---- Roxbury Capital
Management 3.0 3.1 3.1 3.1 3.3 (3.2 ) (9.1 ) Cramer Rosenthal
McGlynn 11.9 11.2 10.6 9.8 9.4 6.3 26.6 Combined assets under
management $ 48.1 $ 46.1 $ 45.0 $ 42.0 $ 41.0 4.3 17.3 � * 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 $ 120.1 $ 112.1 $ 107.5 $ 102.4 $ 102.7
7.1 16.9 ** Includes Wilmington Trust assets under management �
FULL-TIME EQUIVALENT HEADCOUNT Full-time equivalent headcount 2,574
2,579 2,562 2,520 2,515 � CAPITAL (in millions, except per share
amounts) Average stockholders' equity $ 1,120.2 $ 1,062.2 $ 1,067.4
$ 1,081.7 $ 1,060.0 5.5 5.7 Period-end primary capital 1,169.6
1,186.7 1,153.5 1,157.9 1,161.2 (1.4 ) 0.7 Per share: Book value
15.77 15.90 15.47 15.55 15.54 (0.8 ) 1.5 Quarterly dividends
declared 0.335 0.315 0.315 0.315 0.315 6.3 6.3 Year-to-date
dividends declared 0.65 0.315 1.245 0.93 0.615 Average
stockholders' equity to assets 10.26 % � 9.68 % � 9.78 % � 10.28 %
� 10.23 % � Total risk-based capital ratio 11.54 12.53 12.10 12.32
11.70 Tier 1 risk-based capital ratio 8.00 8.64 8.25 8.28 7.67 Tier
1 leverage capital ratio 7.37 7.64 7.39 7.34 6.98 � CREDIT QUALITY
(in millions) Period-end reserve for loan losses $ 97.5 $ 94.5 $
94.2 $ 93.6 $ 94.3 Period-end nonperforming assets: Nonaccrual 41.0
23.1 31.0 32.0 29.5 OREO 0.2 4.8 4.8 4.8 4.8 Renegotiated loans 4.5
4.8 ---- ---- 9.9 Period-end past due 90 days 13.6 7.3 5.8 7.7 4.7
� Gross charge-offs 5.4 5.1 7.1 8.6 5.7 Recoveries 1.9 1.8 1.2 1.3
2.2 Net charge-offs 3.5 3.3 5.9 7.3 3.5 Year-to-date net
charge-offs 6.8 3.3 18.5 12.6 5.3 � Ratios: Period-end reserve to
loans 1.18 % � 1.17 % � 1.16 % � 1.20 % � 1.22 % � Period-end
nonperforming assets to loans 0.55 0.40 0.44 0.47 0.57 Period-end
loans past due 90 days to total loans 0.16 0.09 0.07 0.10 0.06 Net
charge-offs to average loans 0.04 0.04 0.07 0.09 0.05 � � INTERNAL
RISK RATING Pass 96.81 % � 96.89 % � 97.39 % � 97.41 % � 97.28 % �
Watchlisted 2.27 2.32 1.82 1.73 1.89 Substandard 0.91 0.77 0.79
0.86 0.76 Doubtful 0.01 0.01 ---- ---- 0.07 � � WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the six months ended
June 30, 2007 � QUARTERLY BUSINESS SEGMENT REPORT � Three Months
Ended � June 30, Mar. 31, Dec. 31, Sept. 30, June 30, (In millions)
� 2007 � 2007 � 2006 � 2006 � 2006 REGIONAL BANKING Net interest
income $ 86.3 $ 83.8 $ 84.4 $ 85.7 $ 83.9 Provision for loan losses
(6.1 ) (3.6 ) (6.4 ) (6.7 ) (3.7 ) Noninterest income 13.7 12.4
13.6 13.1 13.2 � Noninterest expense � 40.3 � � 42.2 � � 40.7 � �
39.7 � � 38.2 � Income before taxes & minority interest 53.6
50.4 50.9 52.4 55.2 � Regional Banking efficiency ratio 39.94 % �
43.42 % � 41.11 % � 39.82 % � 38.98 % � � WEALTH ADVISORY SERVICES
Net interest income $ 6.1 $ 6.3 $ 6.6 $ 6.4 $ 6.3 Provision for
loan losses (0.4 ) ---- (0.1 ) 0.1 (0.5 ) Noninterest income 51.0
49.2 49.1 44.9 45.5 � Noninterest expense � 44.8 � � 47.6 � � 43.7
� � 40.4 � � 41.9 � Income before taxes & minority interest
11.9 7.9 11.9 11.0 9.4 � Wealth Advisory Services efficiency ratio
78.32 % � 85.61 % � 78.32 % � 78.60 % � 80.73 % � � CORPORATE
CLIENT SERVICES Net interest income $ 3.5 $ 3.7 $ 4.3 $ 4.4 $ 3.4
Provision for loan losses ---- ---- ---- ---- ---- Noninterest
income 26.0 25.2 24.7 22.3 22.0 � Noninterest expense � 20.9 � �
20.6 � � 20.5 � � 18.5 � � 18.2 � Income before taxes &
minority interest 8.6 8.3 8.5 8.2 7.2 � Corporate Client Services
efficiency ratio 70.85 % � 71.28 % � 70.45 % � 69.03 % � 71.37 % �
� AFFILIATE MANAGERS * Net interest income $ (3.1 ) $ (3.0 ) $ (2.9
) $ (3.5 ) $ (3.2 ) Provision for loan losses ---- ---- ---- ----
---- Noninterest income 6.2 4.6 5.1 4.3 5.6 � Noninterest expense �
---- � � ---- � � ---- � � 72.3 � � ---- � Income before taxes
& minority interest 3.1 1.6 2.2 (71.5 ) 2.4 � TOTAL WILMINGTON
TRUST CORPORATION Net interest income $ 92.8 $ 90.8 $ 92.4 $ 93.0 $
90.4 Provision for loan losses (6.5 ) (3.6 ) (6.5 ) (6.6 ) (4.2 )
Noninterest income 96.9 91.4 92.5 84.6 86.3 � Noninterest expense �
106.0 � � 110.4 � � 104.9 � � 170.9 � � 98.3 � Income before taxes
& minority interest $ 77.2 $ 68.2 $ 73.5 $ 0.1 $ 74.2 �
Corporation efficiency ratio 55.58 % � 60.23 % � 56.40 % � 95.64 %
� 55.29 % � � * 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. �
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
six months ended June 30, 2007 � YEAR-TO-DATE BUSINESS SEGMENT
REPORT � Six Months Ended � June 30, June 30, $ % (In millions) �
2007 � 2006 � Change � Change � REGIONAL BANKING Net interest
income $ 170.3 $ 164.9 $ 5.4 3.3 % Provision for loan losses (9.7 )
(7.5 ) 2.2 29.3 Noninterest income 26.1 25.4 0.7 2.8 � Noninterest
expense � 82.6 � � 77.0 � � 5.6 � � 7.3 � � Income before taxes
& minority interest 104.1 105.8 (1.7 ) (1.6 ) � Regional
Banking efficiency ratio 41.68 % � 40.06 % � � WEALTH ADVISORY
SERVICES Net interest income $ 12.4 $ 12.8 $ (0.4 ) (3.1 ) %
Provision for loan losses (0.4 ) (0.7 ) 0.3 (42.9 ) Noninterest
income 100.3 89.9 10.4 11.6 � Noninterest expense � 92.4 � � 82.1 �
� 10.3 � � 12.5 � � Income before taxes & minority interest
19.9 19.9 ---- ---- � Wealth Advisory Services efficiency ratio
81.91 % � 79.86 % � � CORPORATE CLIENT SERVICES Net interest income
$ 7.2 $ 6.2 $ 1.0 16.1 % Provision for loan losses ---- ---- ----
---- Noninterest income 51.2 43.5 7.7 17.7 � Noninterest expense �
41.4 � � 36.8 � � 4.6 � � 12.5 � � Income before taxes &
minority interest 17.0 12.9 4.1 31.8 � Corporate Client Services
efficiency ratio 70.77 % � 73.90 % � � AFFILIATE MANAGERS * Net
interest income $ (6.2 ) $ (6.2 ) $ ---- ---- % Provision for loan
losses ---- ---- ---- ---- Noninterest income 10.8 10.2 0.6 5.9 �
Noninterest expense � ---- � � ---- � � ---- � � ---- � � Income
before taxes & minority interest 4.6 4.0 0.6 15.0 � TOTAL
WILMINGTON TRUST CORPORATION Net interest income $ 183.7 $ 177.7 $
6.0 3.4 % Provision for loan losses (10.1 ) (8.2 ) 1.9 23.2
Noninterest income 188.4 169.0 19.4 11.5 � Noninterest expense �
216.4 � � 195.9 � � 20.5 � � 10.5 � � Income before taxes &
minority interest $ 145.6 $ 142.6 $ 3.0 2.1 % � Corporation
efficiency ratio 57.85 % � 56.16 % � � * 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.
Wilmington (NYSE:WL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Wilmington (NYSE:WL)
Historical Stock Chart
From Jul 2023 to Jul 2024