Wilmington Trust Corporation (NYSE:WL) reported net income of $22.9
million for the 2008 third quarter, or $0.34 per share (on a
diluted basis). Third quarter results were reduced by a $19.7
million securities loss on perpetual preferred stocks issued by the
Federal National Mortgage Association (Fannie Mae) and the Federal
Home Loan Mortgage Corporation (Freddie Mac). On an after-tax
basis, this charge reduced third quarter net income by $12.5
million, or $0.19 per share (on a diluted basis). The company
initially disclosed this loss in a filing with the Securities and
Exchange Commission on September 11, 2008. On an operating basis
(excluding the securities loss), net income for the 2008 third
quarter was $35.4 million, or $0.53 per share (on a diluted basis).
Management believes that operating results present a more relevant
measure of ongoing business trends and offer a better basis of
comparison with prior periods. The financial statements in this
report include a reconciliation of results that include securities
losses and impairment charges (reported results) with those that do
not (operating results). �In the face of extraordinary market
conditions, we continued to focus on our clients, our business
plan, and opportunities for growth, and these efforts were evident
in all three of our businesses,� said Ted T. Cecala, Wilmington
Trust chairman and chief executive officer. �Compared to the
year-ago third quarter, advisory revenue was up 14%, and loan
balances were 15% higher, on average. In addition, the net interest
margin stabilized, and credit quality remained in line with our
historical experience.� On October 16, 2008, the Board of Directors
declared a regular quarterly cash dividend of $0.345 per share.
This amount reflects the 3% increase the Board approved in April
2008, which marked the 27th consecutive year that Wilmington Trust
has raised its cash dividend. The quarterly dividend will be paid
on November 17, 2008, to stockholders of record on November 3,
2008. Significant factors in 2008 third quarter results On average,
$373.1 million of loans were added during the 2008 third quarter,
and loan balances were $9.46 billion. Loan growth, plus stability
in the net interest margin, generated net interest income that was
7% higher than for the 2008 second quarter. Net charge-offs were
lower than for the 2008 second quarter, but the combination of loan
growth and higher levels of nonperforming loans caused an increase
in the provision for loan losses. Corporate Client Services (CCS)
revenue was 46% higher than for the year-ago third quarter, with
all components of the business contributing to the growth. Wealth
Advisory Services (WAS) revenue was 2% higher than for the year-ago
third quarter, and down slightly from the 2008 second quarter, as
financial market volatility reduced trust and investment advisory
revenue. Affiliate money manager Roxbury Capital Management (RCM)
returned to profitability. On a combined basis, advisory fees from
CCS, WAS, and the affiliate money managers generated 52% of total
net interest and noninterest income for the quarter (excluding
securities losses and after amortization and the provision for loan
losses), and 30% of pre-tax operating net income. Operating
expenses and the number of staff members were higher than for the
year-ago third quarter, mainly because the year-ago figures did not
reflect the acquisition of AST Capital Trust Company (AST), which
added approximately 179 staff members in Phoenix, Arizona, and
Wilmington, Delaware. Compared to the 2008 second quarter,
operating expenses were 2% higher. Most of this increase was in
salaries and primarily reflected the additions of: � � � � � � � �
WAS staff in the family office practice and Boston office. CCS
capital markets and retirement services staff. Regional Banking
staff in the Maryland, New Jersey, and Pennsylvania markets. All
regulatory capital ratios continued to exceed the amounts required
by the Federal Reserve Board to be considered a well-capitalized
institution. Corporate Client Services Capital markets revenue was
17% higher than for the year-ago third quarter, due to demand for
services that support tender option bonds, repackaged corporate and
municipal debt, and corporate defaults and bankruptcies. This
activity was not strong enough to offset the absence of capital
markets transactions in the 2008 third quarter, which is why
revenue from these services was slightly lower on a linked-quarter
basis. Retirement services revenue reflected the April 2008
acquisition of AST, which assumed the Wilmington Trust name in
August 2008. The 2008 third quarter marked the first full quarter
of revenue and expenses from this acquisition. Continued weakness
in the capital markets overall also affected entity management
revenue, which was up 4% from the year-ago third quarter, but 11%
lower than for the 2008 second quarter. Demand remained high for
CCS investment and cash management services. Revenue from these
services was up 17% from the year-ago third quarter and 3% from the
2008 second quarter. The CCS business produced 14% of the company�s
total pre-tax operating net income for the 2008 third quarter.
Wealth Advisory Services Significant volatility in the financial
markets masked new business development in WAS. Trust and
investment advisory revenue was 3% lower than for the year-ago
third quarter, and 2% lower than for the 2008 second quarter. In
comparison, at September 30, 2008, the Standard & Poor�s 500
Index was 24% lower than at September 30, 2007, and 9% lower than
at June 30, 2008. Management uses the S&P 500 as a benchmark
for comparison because its composition mirrors, to a large extent,
the mix of equities in client portfolios. Revenue from planning and
other services was 9% higher than for the year-ago third quarter,
primarily reflecting demand for family office services. Compared to
the 2008 second quarter, planning revenue was unchanged, as new
business development was offset by lower revenue from tax services,
which typically are highest in the second quarter of each year.
Mutual fund fees were 28% higher than for the year-ago third
quarter, and 6% higher than for the 2008 second quarter. The
increase resulted mainly from asset inflows in the Wilmington U.S.
Government Money Market Fund and the Wilmington Tax-Exempt Money
Market Fund, as some clients opted to place funds in less volatile
instruments than equities. Most of Wilmington Trust�s mutual funds
are money market funds. Three of these funds � the Wilmington Prime
Money Market Fund, the Wilmington U.S. Government Money Market
Fund, and the Wilmington Tax-Exempt Money Market Fund � have
applied to participate in the new insurance protection available
under the U.S. Treasury Department�s Temporary Money Market
Guarantee Program. These funds are managed to maintain a stable
$1.00 share price. While none has ever slipped from that level, the
company�s participation in the voluntary Treasury Department
program is designed to offer mutual fund shareholders additional
assurance in light of the extraordinary market conditions that
prompted the creation of the program. More information about this
is available at www.wilmingtontrust.com under Media/Press
Releases/October 3. Regional Banking The Regional Banking business
continued to benefit from economic conditions in the mid-Atlantic
region, where unemployment rates remained below the U.S. average.
Delaware�s unemployment rate for August 2008 (the most recent data
available) was 4.9%, compared with the U.S. average of 6.1%. The
August unemployment rate was 5.8% for Pennsylvania, 5.9% for New
Jersey, and 4.5% for Maryland. Loan balances, on average, were
$9.46 billion. This was 15% higher than for the year-ago third
quarter, and 4% higher than for the 2008 second quarter. At
period-end, loan balances were $9.59 billion, up 15% year-over-year
and up 3% from the 2008 second quarter. The Delaware market
accounted for approximately 54% of total period-end loans; the
Pennsylvania market accounted for approximately 24%; and the
Maryland market accounted for approximately 10%. Commercial loan
balances were $6.55 billion, on average, for the 2008 third
quarter. This was 17% higher than for the year-ago third quarter,
and 5% higher than for the 2008 second quarter. At period-end,
commercial loan balances were $6.67 billion. The Delaware market
accounted for approximately 55% of commercial loans at period-end;
the Pennsylvania market accounted for approximately 27%; and the
Maryland market accounted for approximately 9%. The largest
linked-quarter increase in loan balances (on a dollar-amount basis)
was in commercial and industrial loans (recorded as commercial,
financial, and agricultural loans). These loans were to clients
mainly in the Delaware and Pennsylvania markets, and represented a
variety of industry sectors. The increase in commercial mortgages
reflected business from clients who, until recent changes in the
credit markets, had found more favorable financing terms with
specialty mortgage lenders. Consumer loan balances were $1.78
billion, on average, up 16% from the year-ago third quarter and 3%
from the 2008 second quarter. Most of this growth was in home
equity lines of credit and indirect loans. Consumer loans, on
average (in millions) 2008 Q3 � 2008 Q2 � 2007 Q3 Home equity lines
of credit $ 349.7 � $ 327.2 � $ 298.2 Indirect loans 952.3 889.6
715.8 Credit card loans 67.3 67.4 64.8 Other consumer loans1 �
411.0 � � 445.6 � � 454.2 Total consumer loans $ 1,780.3 $ 1,729.8
$ 1,533.0 � 1Includes home equity loans, installment loans, and
other types of loans to individuals. � On average, core deposits
were up 8% from the year-ago third quarter, mainly due to increases
in savings deposits generated by WTDirect, the company�s online
distribution channel. Compared to the 2008 second quarter, core
deposits were slightly higher. Credit quality in the 2008 third
quarter Compared to the 2008 second quarter, net charge-offs
decreased, but nonperforming asset levels increased. The
combination of this increase and loan growth, plus risk rating
downgrades, caused the provision and reserve for loan losses to
increase. The percentage of loans with pass ratings in the internal
risk rating analysis remained at 96%. The provision for loan losses
was $19.6 million, up from $18.5 million for the 2008 second
quarter. The reserve for loan losses increased to $122.2 million
from $113.1 million at June 30, 2008. The loan loss reserve ratio
increased 5 basis points from the 2008 second quarter to 1.27%.
Nonaccruing loans were $28.5 million higher than for the 2008
second quarter. Two client relationships accounted for most of this
increase. These relationships were with commercial real estate
construction clients with single-family housing projects in central
and southern Delaware. Other real estate owned decreased $2.2
million from June 30, 2008, due to the successful disposition of
properties in a luxury home development in Montgomery County,
Pennsylvania. Loans past due 90 days or more were $6.9 million
higher than for the 2008 second quarter. Approximately $4.9 million
of this amount was for a commercial construction/real estate loan
to a Maryland-based client. Total net charge-offs for the 2008
third quarter were $10.5 million, down from $11.8 million for the
2008 second quarter, mainly because there were no commercial real
estate/construction charge-offs. There was a $2.0 million increase
in commercial, financial, and agricultural loan charge-offs. This
increase was associated mainly with one previously nonaccruing loan
to a sports equipment retailer. The net charge-off ratio for the
second quarter was 11 basis points, down from 13 basis points for
the 2008 second quarter. The year-to-date net charge-off ratio was
30 basis points. Commercial loan charge-offs are inherently
unpredictable, mainly because: Negotiations with commercial
borrowers can affect the timing and extent of charge-offs, or avert
them altogether. Associated legal proceedings can also affect the
timing and extent of charge-offs. On a percentage basis, the
composition of the loan portfolio remained relatively unchanged.
Additional disclosures about credit quality appear in the financial
statement section of this release. Net interest margin The net
interest margin was 3.27%, which was 10 basis points higher than
for the 2008 second quarter, but 46 basis points lower than for the
year-ago third quarter. These changes reflected the company�s
asset-sensitivity and the market interest rate environment. Between
late September 2007 and May 2008, the Federal Open Market Committee
(FOMC) reduced rates seven times for a total of 325 basis points.
With most of the company�s floating rate loans repricing within 30
days of a rate change, loan yields began to reflect the downward
pricing adjustments in the 2007 fourth quarter and continued in the
first half of 2008. Most of the corresponding decreases in funding
costs did not begin until the 2008 first quarter, however, because
funding costs typically take 90 to 120 days to reprice. Funding
costs continued to lag loan repricing for most of the second
quarter. In the third quarter, as market interest rates remained
stable, the disparity between the repricing of loans and the
repricing of funding costs narrowed substantially. The FOMC�s
50-basis-point rate reduction on October 8 will compress the
margin. It is difficult to forecast accurately how other aspects of
current dislocation within the credit markets, especially the
disparity between the federal funds target rate and the 30-day
London interbank offered rate (Libor), also might affect the
margin. At September 30, 2008, the federal funds target rate was
2.00%, while the 30-day Libor was 3.93%. The pricing on
approximately 40% of Wilmington Trust�s commercial loans is tied to
the 30-day Libor. In the near term, upward repricing of these loans
will offset some of the margin compression that will be caused by
the recent FOMC rate reduction. Eventually, however, higher Libor
rates will be a factor in funding costs, which will cause the
margin to narrow. The exact path and speed with which Libor adjusts
will affect the extent and timing of the effect on the margin.
Should term Libor rates return to their historic relationship with
federal fund rates, management expects approximately 7 basis points
of margin compression over a 12-month period after all loan and
funding repricing has occurred. More information about
asset/liability matching and funding sources is in the supplemental
information statement in this release. Common equity offering On
September 22, 2008, Wilmington Trust initiated an at-the-market
offering of its common stock. This offering is described in a base
prospectus and prospectus supplement filed with the Securities and
Exchange Commission on September 22, 2008. These documents are
available at www.wilmingtontrust.com under Investor Relations/SEC
Filings. Under this offering, Wilmington Trust may issue shares for
up to an aggregate sales price of $150 million. The proceeds of
this offering will be used for general corporate purposes. Sales of
these shares will occur through ordinary brokers� transactions on
the New York Stock Exchange or otherwise at market prices
prevailing at the time of the sale, at prices related to the
prevailing market prices, at negotiated prices, with Merrill Lynch
acting as sales agent. Wilmington Trust and Merrill Lynch will
determine jointly, as often as daily, how many shares to sell under
this offering and at what price to sell them. Shares will be
available under this offering until the aggregate sales price of
$150 million is reached, or until Wilmington Trust or Merrill Lynch
decide to terminate it. During the 2008 third quarter, 695,900
shares were issued under this offering. Gross proceeds were $20.8
million, with an average sale price of $29.95 per share. Net of
commissions, proceeds totaled $20.4 million, with an average sale
price of $29.35 per share. Investment securities portfolio
Wilmington Trust maintains an investment securities portfolio for
its own account to generate cash flow, to help manage interest rate
risk, and to provide collateral for deposits and other liabilities.
There are no client funds in this portfolio. At September 30, 2008,
the value of the investments in this portfolio was $1.46 billion,
which was 4% lower than at June 30, 2008. Two types of investments
accounted for most of this decrease: Perpetual preferred stock
issued by Fannie Mae and Freddie Mac, which is included in the
preferred stock recorded on the balance sheet. Trust-preferred
securities (TruPS), which are included in the amount on the balance
sheet recorded as other securities. Fannie Mae and Freddie Mac
securities loss On September 7, 2008, the U.S. government placed
Fannie Mae and Freddie Mac into conservatorship. This action
triggered impairment testing under U.S. generally accepted
accounting principles (GAAP). As a result, management determined
that the value of Wilmington Trust�s investments in perpetual
preferred stock issued by Fannie Mae and Freddie Mac had declined
from $21.1 million at June 30, 2008, to $1.4 million as of
September 10, 2008. Management further determined that this
decline, or impairment, was other-than-temporary under GAAP. The
$19.7 million decrease was recorded as a securities loss for the
2008 third quarter. This charge did not affect client funds, the
company�s ability to pay dividends, or the company�s status as a
well-capitalized institution under Federal Reserve Board
guidelines. In addition to the Fannie Mae and Freddie Mac
securities, Wilmington Trust�s investment securities portfolio
includes perpetual preferred stocks issued by two money center
banks and one other company. These stocks are held as
available-for-sale. At September 30, 2008, the combined value of
all these perpetual preferred stocks was $19.4 million. This
represented approximately 1% of Wilmington Trust�s total investment
securities portfolio. Trust-preferred securities Wilmington Trust�s
TruPS portfolio consists of 38 pooled issues and 9 single-issue
securities. The single issues are from money center and large
regional banks. The pooled instruments consist of securities issued
by banks, insurance companies, and other financial institutions.
The pooled TruPS generally are secured by over-collateralization or
default protection provided by subordinated tranches. All of the
TruPS in the portfolio are structured as �payment-in-kind�
securities. This means that, should an issuer defer a scheduled
interest payment, the principal held by the investor increases by
the amount of the deferred payment. At June 30, 2008, the estimated
fair value of the TruPS portfolio was $227.2 million. On July 31,
2008, management changed the accounting treatment for the TruPS
portfolio from �available for sale� to �held to maturity,� because
the company has the ability and intent to hold these securities
until they mature. As of that date, the estimated fair value of
these securities was $189.1 million, and the $38.1 million decline
in value from June 30, 2008, was recorded on the balance sheet. As
of September 30, 2008, the estimated fair value of the TruPS
portfolio was $207.9 million, and there were no
other-than-temporary impairments among the securities in this
portfolio. No further adjustments for changes in the fair value of
TruPS were reflected on the balance sheet, because the TruPS are
recorded as held-to-maturity securities. Conference call Management
will discuss 2008 third quarter results and outlook for the future
in a conference call today at 10:00 a.m. (Eastern). Supporting
materials, financial statements, and audio streaming will be
available at www.wilmingtontrust.com. To access the call from
within the United States and Canada, dial 877-407-8031. Callers
outside the United States and Canada should dial 201-689-8031. No
passcode is necessary. A rebroadcast of the conference call will be
available from 1:00 p.m. (Eastern) today until 11:59 p.m. (Eastern)
on Friday, October 24. To access the rebroadcast from within the
United States and Canada, dial 877-660-6853. Callers outside the
United States and Canada should dial 201-612-7415. All callers will
need to use account # 286 and replay ID # 299744 to access the
rebroadcast. Forward-looking statements This report 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 Arizona, 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
nine months ended September 30, 2008 � � � HIGHLIGHTS � Three
Months Ended � Nine Months Ended � � Sept. 30, 2008 � Sept. 30,
2007 � %Change � � Sept. 30, 2008 � Sept. 30, 2007 � %Change
OPERATING RESULTS (in millions) Net interest income $ 91.1 $ 94.1
(3.2 ) $ 263.1 $ 277.7 (5.3 ) Provision for loan losses (19.6 )
(8.9 ) 120.2 (48.0 ) (19.0 ) 152.6 Noninterest income 87.8 94.8
(7.4 ) 283.7 283.2 0.2 Noninterest expense 123.9 110.8 11.8 427.9
327.2 30.8 Net income 22.9 46.2 (50.4 ) 44.9 138.0 (67.5 ) � PER
SHARE DATA Basic net income $ 0.34 $ 0.68 (50.0 ) $ 0.67 $ 2.02
(66.8 ) Diluted net income 0.34 0.67 (49.3 ) 0.67 1.99 (66.3 )
Dividends paid 0.345 0.335 3.0 1.025 0.985 4.1 Book value at period
end 15.60 16.23 (3.9 ) 15.60 16.23 (3.9 ) Closing price at period
end 28.83 38.90 (25.9 ) 28.83 38.90 (25.9 ) Market range: High
46.75 42.14 10.9 46.75 44.55 4.9 Low 20.50 36.46 (43.8 ) 20.50
36.46 (43.8 ) � AVERAGE SHARES OUTSTANDING (in thousands) Basic
67,231 67,698 (0.7 ) 67,155 68,206 (1.5 ) Diluted 67,269 68,582
(1.9 ) 67,400 69,222 (2.6 ) � AVERAGE BALANCE SHEET (in millions)
Investment portfolio $ 1,461.7 $ 1,776.9 (17.7 ) $ 1,601.5 $
1,877.5 (14.7 ) Loans 9,459.0 8,260.3 14.5 9,062.0 8,163.6 11.0
Earning assets 11,076.0 10,075.0 9.9 10,778.2 10,089.9 6.8 Core
deposits 5,430.0 5,045.5 7.6 5,323.1 5,029.1 5.8 Stockholders'
equity 1,021.3 1,087.8 (6.1 ) 1,088.5 1,090.1 (0.1 ) � � STATISTICS
AND RATIOS (net income annualized) Return on average stockholders'
equity 8.92 % 16.85 % (47.1 ) 5.51 % 16.93 % (67.5 ) Return on
average assets 0.76 % 1.67 % (54.5 ) 0.51 % 1.68 % (69.6 ) Net
interest margin (taxable equivalent) 3.27 % 3.73 % (12.3 ) 3.27 %
3.71 % (11.9 ) Dividend payout ratio 101.31 % 49.35 % 105.3 153.67
% 48.84 % 214.6 Full-time equivalent headcount 2,925 2,658 10.0
2,925 2,658 10.0 � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2008 � � � � �
QUARTERLY INCOME STATEMENT � Three Months Ended � % Change From (In
millions) � � Sept. 30,2008 � June 30, 2008 � Mar. 31, 2008 � Dec.
31, 2007 � Sept. 30, 2007 � Prior Quarter � Prior Year NET INTEREST
INCOME Interest income $ 152.1 $ 150.0 $ 162.4 $ 177.9 $ 183.4 1.4
(17.1 ) � Interest expense � � 61.0 � � 64.8 � � 75.5 � � 86.8 � �
89.3 � � (5.9 ) (31.7 ) Net interest income 91.1 85.2 86.9 91.1
94.1 6.9 (3.2 ) � Provision for loan losses � � (19.6 ) � (18.5 ) �
(10.0 ) � (9.2 ) � (8.9 ) � 5.9 120.2 Net interest income after
provision for loan losses � 71.5 � � 66.7 � � 76.9 � � 81.9 � �
85.2 � � 7.2 (16.1 ) � NONINTEREST INCOME Advisory fees: Wealth
Advisory Services Trust and investment advisory fees 39.3 40.2 39.2
42.9 40.5 (2.2 ) (3.0 ) Mutual fund fees 6.8 6.4 6.4 5.9 5.3 6.2
28.3 � � � Planning and other services � � 11.2 � � 11.2 � � 10.1 �
� 10.3 � � 10.3 � � ---- 8.7 Total Wealth Advisory Services � 57.3
� � 57.8 � � 55.7 � � 59.1 � � 56.1 � � (0.9 ) 2.1 Corporate Client
Services Capital markets services 11.9 12.2 11.6 11.4 10.2 (2.5 )
16.7 Entity management services 7.7 8.6 7.9 8.1 7.4 (10.5 ) 4.1
Retirement services 11.3 7.5 3.2 3.3 3.0 50.7 276.7 � � �
Investment/cash management services 3.5 � � 3.4 � � 3.3 � � 3.4 � �
3.0 � � 2.9 16.7 Total Corporate Client Services � 34.4 � � 31.7 �
� 26.0 � � 26.2 � � 23.6 � � 8.5 45.8 Cramer Rosenthal McGlynn 3.8
5.5 4.0 5.5 4.2 (30.9 ) (9.5 ) � � Roxbury Capital Management � �
0.4 � � (1.1 ) � 0.3 � � 0.4 � � 0.4 � � ---- ---- Advisory fees
95.9 93.9 86.0 91.2 84.3 2.1 13.8 � � Amortization of affiliate
intangibles � � (2.2 ) � (2.0 ) � (1.2 ) � (1.3 ) � (1.2 ) � 10.0
83.3 � Advisory fees after amortization of affiliate intangibles �
93.7 � � 91.9 � � 84.8 � � 89.9 � � 83.1 � � 2.0 12.8 Service
charges on deposit accounts 7.7 7.5 7.6 7.3 7.2 2.7 6.9 Other
noninterest income 6.1 6.3 10.4 5.3 4.7 (3.2 ) 29.8 � Securities
gains/(losses) � � (19.7 ) � (12.5 ) � ---- � � 0.2 � � (0.2 ) �
(57.6 ) N/M Total noninterest income � 87.8 � � 93.2 � � 102.8 � �
102.7 � � 94.8 � � (5.8 ) (7.4 ) � Net interest and noninterest
income � 159.3 � � 159.9 � � 179.7 � � 184.6 � � 180.0 � � (0.4 )
(11.5 ) � NONINTEREST EXPENSE Salaries and wages 50.6 48.3 45.7
45.0 44.1 4.8 14.7 Incentives and bonuses 11.8 13.2 14.5 11.5 10.0
(10.6 ) 18.0 Employment benefits 12.8 12.4 14.3 12.0 12.7 3.2 0.8
Net occupancy 7.9 8.0 7.5 7.4 7.3 (1.3 ) 8.2 Furniture, equipment,
and supplies 11.7 10.3 9.8 9.7 10.0 13.6 17.0 Other noninterest
expense: Advertising and contributions 2.6 3.0 2.1 3.2 2.0 (13.3 )
30.0 Servicing and consulting fees 2.9 3.2 2.5 3.4 2.6 (9.4 ) 11.5
Subadvisor expense 4.7 3.5 2.7 2.8 2.7 34.3 74.1 Travel,
entertainment, and training 3.2 2.9 2.4 3.3 2.8 10.3 14.3
Originating and processing fees 2.8 2.6 2.4 2.9 2.8 7.7 ---- � �
Other expense � � 12.9 � � 14.2 � � 11.6 � � 15.7 � � 13.8 � � (9.2
) (6.5 ) Total other noninterest expense � 29.1 � � 29.4 � � 23.7 �
� 31.3 � � 26.7 � � (1.0 ) 9.0 Total noninterest expense before
impairment 123.9 121.6 115.5 116.9 110.8 1.9 11.8 Impairment
write-down � ---- � � 66.9 � � ---- � � ---- � � ---- � � (100.0 )
---- Total noninterest expense � 123.9 � � 188.5 � � 115.5 � �
116.9 � � 110.8 � � (34.3 ) 11.8 � Income before income taxes and
minority interest 35.4 (28.6 ) 64.2 67.7 69.2 ---- (48.8 )
Applicable income taxes � � 12.3 � � (9.3 ) � 22.7 � � 23.6 � �
22.9 � � ---- (46.3 ) Net income before minority interest 23.1
(19.3 ) 41.5 44.1 46.3 ---- (50.1 ) Minority interest � � 0.2 � �
0.2 � � 0.1 � � 0.1 � � 0.1 � � ---- 100.0 Net income $ 22.9 � $
(19.5 ) $ 41.4 � $ 44.0 � $ 46.2 � � ---- (50.4 ) � WILMINGTON
TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months
ended September 30, 2008 � � � � � YEAR-TO-DATE INCOME STATEMENT �
Nine Months Ended � (In millions) � � Sept. 30, 2008 � Sept. 30,
2007 � % Change � NET INTEREST INCOME Interest income $ 464.3 $
544.2 (14.7 ) � Interest expense � � 201.2 � � 266.5 � (24.5 ) Net
interest income 263.1 277.7 (5.3 ) Provision for loan losses � �
(48.0 ) � (19.0 ) 152.6 Net interest income after provision for
loan losses � 215.1 � � 258.7 � (16.9 ) � NONINTEREST INCOME
Advisory fees: Wealth Advisory Services Trust and investment
advisory fees 118.7 115.8 2.5 Mutual fund fees 19.6 15.4 27.3 � � �
Planning and other services � � 32.5 � � 29.8 � 9.1 Total Wealth
Advisory Services � 170.8 � � 161.0 � 6.1 Corporate Client Services
Capital markets services 35.6 31.5 13.0 Entity management services
24.2 21.9 10.5 Retirement services 22.0 9.6 129.2 � � �
Investment/cash management services � � 10.3 � � 9.4 � 9.6 Total
Corporate Client Services � 92.1 � � 72.4 � 27.2 Cramer Rosenthal
McGlynn 13.3 15.2 (12.5 ) � � Roxbury Capital Management � � (0.4 )
� 0.7 � ---- Advisory fees 275.8 249.3 10.6 � � Amortization of
affiliate intangibles � � (5.4 ) � (3.4 ) 58.8 Advisory fees after
amortization of affiliate intangibles � 270.4 � � 245.9 � 10.0
Service charges on deposit accounts 22.7 21.0 8.1 Other noninterest
income 22.8 16.4 39.0 � Securities gains/(losses) � � (32.2 ) �
(0.1 ) N/M Total noninterest income � 283.7 � � 283.2 � 0.2 � Net
interest and noninterest income � 498.8 � � 541.9 � (8.0 ) �
NONINTEREST EXPENSE Salaries and wages 144.6 127.7 13.2 Incentives
and bonuses 39.5 35.4 11.6 Employment benefits 39.5 38.9 1.5 Net
occupancy 23.5 20.9 12.4 Furniture, equipment, and supplies 31.6
29.5 7.1 Other noninterest expense: Advertising and contributions
7.7 7.5 2.7 Servicing and consulting fees 8.7 7.8 11.5 Subadvisor
expense 10.8 7.7 40.3 Travel, entertainment, and training 8.5 7.4
14.9 Originating and processing fees 7.8 8.0 (2.5 ) � � Other
expense � � 38.8 � � 36.4 � 6.6 Total other noninterest expense �
82.3 � � 74.8 � 10.0 Total noninterest expense before impairment
361.0 327.2 10.3 Impairment write-down � 66.9 � � ---- � ---- Total
noninterest expense � 427.9 � � 327.2 � 30.8 Income before income
taxes and minority interest 70.9 214.7 (67.0 ) Applicable income
taxes � � 25.5 � � 75.9 � (66.4 ) Net income before minority
interest 45.4 138.8 (67.3 ) Minority interest � � 0.5 � � 0.8 �
(37.5 ) Net income $ 44.9 � $ 138.0 � (67.5 ) � WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2008 � COMPARISON OF RESULTS WITH AND WITHOUT THE
IMPAIRMENT WRITE-DOWN � � Three months ended September 30, 2008 �
Nine months ended September 30, 2008 With Without With Without
impairment impairment Impairment impairment impairment Impairment
OPERATING RESULTS (in millions) Net interest income $ 91.1 $ 91.1 $
---- $ 263.1 $ 263.1 $ ---- Provision for loan losses (19.6 ) (19.6
) ---- (48.0 ) (48.0 ) ---- Noninterest income 87.8 107.5 (19.7 )
283.7 316.0 (32.3 ) Noninterest expense � 123.9 � � 123.9 � � ----
� � 427.9 � � 361.0 � � 66.9 � Income before taxes and minority
interest 35.4 55.1 (19.7 ) 70.9 170.1 (99.2 ) Applicable income
taxes � 12.3 � � 19.5 � � (7.2 ) � 25.5 � � 60.8 � � (35.3 ) Net
income before minority interest 23.1 35.6 (12.5 ) 45.4 109.3 (63.9
) Minority interest � 0.2 � � 0.2 � � ---- � � 0.5 � � 0.5 � � ----
� Net income $ 22.9 � $ 35.4 � $ (12.5 ) $ 44.9 � $ 108.8 � $ (63.9
) � � PER SHARE DATA Diluted shares outstanding (in millions) 67.3
67.3 ---- 67.4 67.4 ---- Per-share earnings $ 0.34 $ 0.53 $ (0.19 )
$ 0.67 $ 1.62 $ (0.95 ) � � STATISTICS AND RATIOS (dollars in
millions) Total assets, on average $ 12,043.5 $ 12,104.5 $ (61.0 )
$ 11,745.1 $ 11,768.5 $ (23.4 ) Stockholders' equity, on average
1,021.3 1,064.6 (43.3 ) 1,088.5 1,104.9 (16.4 ) Return on average
assets 0.76 % 1.16 % (0.40 )% 0.51 % 1.23 % (0.72 )% Return on
equity 8.92 % 13.23 % (4.31 )% 5.51 % 13.15 % (7.64 )% � Net
interest before provision and noninterest income $ 178.9 $ 198.6 $
(19.7 ) $ 546.8 $ 579.1 $ (32.3 ) Tax equivalent interest income �
0.6 � � 0.6 � � ---- � � 2.2 � � 2.2 � � ---- � $ 179.5 $ 199.2 $
(19.7 ) $ 549.0 $ 581.3 $ (32.3 ) Noninterest expense $ 123.9 � $
123.9 � $ ---- � $ 427.9 � $ 361.0 � $ 66.9 � Efficiency ratio
69.03 % 62.20 % 6.83 % 77.94 % 62.10 % 15.84 % � WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2008 � STATEMENT OF CONDITION � � � � � � � � � � � %
Change From Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior
Prior (In millions) � 2008 � 2008 � 2008 � 2007 � 2007 � Quarter �
Year ASSETS Cash and due from banks $ 231.1 � � $ 249.3 � � $ 291.0
� � $ 260.5 � � $ 286.3 � (7.3 ) (19.3 ) Interest-bearing deposits
in other banks � 80.1 � � � 167.8 � � � 3.7 � � � 4.4 � � � 2.9 �
(52.3 ) N/M Federal funds sold and securities purchased under
agreements to resell � ---- � � � 110.7 � � � 264.6 � � � 129.6 � �
� 13.6 � (100.0 ) (100.0 ) Investment securities: U.S. Treasury
91.2 48.6 56.8 60.2 101.9 87.7 (10.5 ) Government agencies 453.5
473.5 473.9 647.0 701.4 (4.2 ) (35.3 ) Obligations of state and
political subdivisions 7.0 7.3 7.3 17.8 18.5 (4.1 ) (62.2 )
Preferred stock 19.4 41.7 43.3 44.9 62.6 (53.5 ) (69.0 )
Mortgage-backed securities 673.6 702.7 740.1 730.6 581.9 (4.1 )
15.8 � Other securities � � 215.3 � � � 252.8 � � � 307.5 � � �
346.3 � � � 365.0 � (14.8 ) (41.0 ) Total investment securities �
1,460.0 � � � 1,526.6 � � � 1,628.9 � � � 1,846.8 � � � 1,831.3 �
(4.4 ) (20.3 ) FHLB and FRB stock, at cost � 16.4 � � � 22.4 � � �
22.8 � � � 22.4 � � � 20.1 � (26.8 ) (18.4 ) Loans: Commercial,
financial, and agricultural 2,965.2 2,808.6 2,654.4 2,594.9 2,529.0
5.6 17.2 Real estate - construction 1,908.7 1,847.0 1,809.7 1,780.4
1,759.9 3.3 8.5 � Mortgage - commercial � � 1,800.7 � � � 1,704.0 �
� � 1,593.8 � � � 1,463.4 � � � 1,388.8 � 5.7 29.7 Total commercial
loans � 6,674.6 � � � 6,359.6 � � � 6,057.9 � � � 5,838.7 � � �
5,677.7 � 5.0 17.6 Mortgage - residential 562.9 561.1 559.6 562.0
566.3 0.3 (0.6 ) Consumer 1,782.9 1,790.3 1,679.5 1,571.6 1,546.0
(0.4 ) 15.3 � Secured with liquid collateral � � 564.6 � � � 569.4
� � � 500.4 � � � 503.5 � � � 546.5 � (0.8 ) 3.3 Total retail loans
� 2,910.4 � � � 2,920.8 � � � 2,739.5 � � � 2,637.1 � � � 2,658.8 �
(0.4 ) 9.5 Total loans net of unearned income 9,585.0 9,280.4
8,797.4 8,475.8 8,336.5 3.3 15.0 Reserve for loan losses � � (122.2
) � � (113.1 ) � � (106.4 ) � � (101.1 ) � � (101.6 ) 8.0 20.3 Net
loans � 9,462.8 � � � 9,167.3 � � � 8,691.0 � � � 8,374.7 � � �
8,234.9 � 3.2 14.9 Premises and equipment 152.1 154.1 153.2 152.1
148.9 (1.3 ) 2.1 Goodwill 343.3 345.2 332.4 330.0 329.0 (0.6 ) 4.3
Other intangibles 47.3 49.7 37.0 38.3 38.7 (4.8 ) 22.2 Other assets
� � 341.0 � � � 340.2 � � � 279.1 � � � 326.9 � � � 281.4 � 0.2
21.2 Total assets $ 12,134.1 � � $ 12,133.3 � � $ 11,703.7 � � $
11,485.7 � � $ 11,187.1 � ---- 8.5 � LIABILITIES AND STOCKHOLDERS'
EQUITY Deposits: Noninterest-bearing demand $ 879.6 $ 994.5 $ 778.6
$ 966.2 $ 827.8 (11.6 ) 6.3 Interest-bearing: Savings 799.6 798.9
780.2 659.8 580.1 0.1 37.8 Interest-bearing demand 2,594.4 2,692.3
2,502.6 2,471.8 2,346.7 (3.6 ) 10.6 Certificates under $100,000
998.1 977.6 1,012.0 1,011.4 1,002.4 2.1 (0.4 ) � � Local
certificates $100,000 and over � � 267.8 � � � 278.0 � � � 316.1 �
� � 356.3 � � � 389.6 � (3.7 ) (31.3 ) Total core deposits 5,539.5
5,741.3 5,389.5 5,465.5 5,146.6 (3.5 ) 7.6 � � National
certificates $100,000 and over � � 3,101.7 � � � 2,874.4 � � �
2,676.5 � � � 2,392.0 � � � 2,353.1 � 7.9 31.8 Total deposits �
8,641.2 � � � 8,615.7 � � � 8,066.0 � � � 7,857.5 � � � 7,499.7 �
0.3 15.2 Short-term borrowings: Federal funds purchased and
securities sold under agreements to repurchase 1,745.4 1,695.4
1,777.2 1,775.3 1,915.5 2.9 (8.9 ) U.S. Treasury demand 7.5 70.3
62.5 77.3 40.9 (89.3 ) (81.7 ) � Line of credit and other debt � �
20.0 � � � 10.0 � � � 134.9 � � � 139.5 � � � 134.0 � 100.0 (85.1 )
Total short-term borrowings � 1,772.9 � � � 1,775.7 � � � 1,974.6 �
� � 1,992.1 � � � 2,090.4 � (0.2 ) (15.2 ) Other liabilities 189.4
207.5 250.9 247.9 231.4 (8.7 ) (18.2 ) Long-term debt � � 468.3 � �
� 467.8 � � � 268.5 � � � 267.8 � � � 267.5 � 0.1 75.1 Total
liabilities � 11,071.8 � � � 11,066.7 � � � 10,560.0 � � � 10,365.3
� � � 10,089.0 � ---- 9.7 Minority interest 0.2 0.2 0.2 0.1 0.1
---- 100.0 Stockholders' equity � � 1,062.1 � � � 1,066.4 � � �
1,143.5 � � � 1,120.3 � � � 1,098.0 � (0.4 ) (3.3 ) Total
liabilities and stockholders' equity $ 12,134.1 � � $ 12,133.3 � �
$ 11,703.7 � � $ 11,485.7 � � $ 11,187.1 � ---- 8.5 � � WILMINGTON
TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months
ended September 30, 2008 � AVERAGE STATEMENT OF CONDITION � � � � �
� � � � � � 2008 2008 2008 2007 2007 % Change From Third Second
First Fourth Third Prior Prior (In millions) � Quarter � Quarter �
Quarter � Quarter � Quarter � Quarter � Year ASSETS Cash and due
from banks $ 221.5 � � $ 251.7 � � $ 216.9 � � $ 209.6 � � $ 208.1
� (12.0 ) 6.4 Interest-bearing deposits in other banks � 101.7 � �
� 63.1 � � � 3.4 � � � 3.7 � � � 4.1 � 61.2 N/M Federal funds sold
and securities purchased under agreements to resell � 32.9 � � �
38.0 � � � 35.1 � � � 28.2 � � � 23.2 � (13.4 ) 41.8 Investment
securities: U.S. Treasury 50.4 50.9 60.5 80.5 103.3 (1.0 ) (51.2 )
Government agencies 459.8 497.5 553.2 619.5 631.4 (7.6 ) (27.2 )
Obligations of state and political subdivisions 7.1 7.3 14.3 18.2
18.7 (2.7 ) (62.0 ) Preferred stock 32.9 44.8 46.0 49.0 62.5 (26.6
) (47.4 ) Mortgage-backed securities 684.1 725.2 734.4 697.0 590.4
(5.7 ) 15.9 � Other securities � � 227.4 � � � 272.8 � � � 337.5 �
� � 359.4 � � � 370.6 � (16.6 ) (38.6 ) Total investment securities
� 1,461.7 � � � 1,598.5 � � � 1,745.9 � � � 1,823.6 � � � 1,776.9 �
(8.6 ) (17.7 ) FHLB and FRB stock, at cost � 20.7 � � � 26.5 � � �
22.4 � � � 23.2 � � � 10.5 � (21.9 ) 97.1 Loans: Commercial,
financial, and agricultural 2,915.8 2,765.4 2,602.1 2,521.5 2,454.9
5.4 18.8 Real estate - construction 1,877.8 1,837.1 1,804.9 1,790.2
1,769.2 2.2 6.1 � Mortgage - commercial � � 1,757.9 � � � 1,654.1 �
� � 1,528.2 � � � 1,423.5 � � � 1,387.3 � 6.3 26.7 Total commercial
loans � 6,551.5 � � � 6,256.6 � � � 5,935.2 � � � 5,735.2 � � �
5,611.4 � 4.7 16.8 Mortgage - residential 560.9 560.5 562.8 564.5
564.4 0.1 (0.6 ) Consumer 1,780.3 1,729.8 1,653.1 1,556.5 1,533.0
2.9 16.1 � Secured with liquid collateral � � 566.3 � � � 539.0 � �
� 485.7 � � � 499.5 � � � 551.5 � 5.1 2.7 Total retail loans �
2,907.5 � � � 2,829.3 � � � 2,701.6 � � � 2,620.5 � � � 2,648.9 �
2.8 9.8 Total loans net of unearned income 9,459.0 9,085.9 8,636.8
8,355.7 8,260.3 4.1 14.5 Reserve for loan losses � � (111.0 ) � �
(104.1 ) � � (99.8 ) � � (99.4 ) � � (95.8 ) 6.6 15.9 Net loans �
9,348.0 � � � 8,981.8 � � � 8,537.0 � � � 8,256.3 � � � 8,164.5 �
4.1 14.5 Premises and equipment 153.5 154.4 152.9 150.9 148.5 (0.6
) 3.4 Goodwill 345.5 393.1 329.9 329.1 328.3 (12.1 ) 5.2 Other
intangibles 48.7 36.8 37.7 38.2 39.4 32.3 23.6 Other assets � �
309.3 � � � 281.5 � � � 282.0 � � � 263.2 � � � 259.8 � 9.9 19.1
Total assets $ 12,043.5 � � $ 11,825.4 � � $ 11,363.2 � � $
11,126.0 � � $ 10,963.3 � 1.8 9.9 � LIABILITIES AND STOCKHOLDERS'
EQUITY Deposits: Noninterest-bearing demand $ 838.8 $ 870.2 $ 726.4
$ 723.5 $ 714.9 (3.6 ) 17.3 Interest-bearing: Savings 807.8 795.2
714.8 627.3 540.9 1.6 49.3 Interest-bearing demand 2,511.7 2,417.0
2,368.2 2,347.6 2,405.8 3.9 4.4 Certificates under $100,000 979.8
988.2 1,016.0 1,005.4 1,007.7 (0.9 ) (2.8 ) � � Local certificates
$100,000 and over � � 291.9 � � � 306.9 � � � 335.3 � � � 390.7 � �
� 376.2 � (4.9 ) (22.4 ) Total core deposits 5,430.0 5,377.5
5,160.7 5,094.5 5,045.5 1.0 7.6 � � National certificates $100,000
and over � � 3,197.1 � � � 2,719.2 � � � 2,770.5 � � � 2,369.1 � �
� 2,817.9 � 17.6 13.5 Total deposits � 8,627.1 � � � 8,096.7 � � �
7,931.2 � � � 7,463.6 � � � 7,863.4 � 6.6 9.7 Short-term
borrowings: Federal funds purchased and securities sold under
agreements to repurchase 1,686.1 1,847.9 1,625.6 1,907.4 1,370.4
(8.8 ) 23.0 U.S. Treasury demand 7.6 11.6 12.8 12.3 11.0 (34.5 )
(30.9 ) � Line of credit and other debt � � 11.9 � � � 50.1 � � �
136.3 � � � 136.8 � � � 139.9 � (76.2 ) (91.5 ) Total short-term
borrowings � 1,705.6 � � � 1,909.6 � � � 1,774.7 � � � 2,056.5 � �
� 1,521.3 � (10.7 ) 12.1 Other liabilities 221.3 232.1 263.5 244.4
223.4 (4.7 ) (0.9 ) Long-term debt � � 468.0 � � � 467.4 � � �
268.2 � � � 267.7 � � � 267.2 � 0.1 75.1 Total liabilities �
11,022.0 � � � 10,705.8 � � � 10,237.6 � � � 10,032.2 � � � 9,875.3
� 3.0 11.6 Minority interest 0.2 0.2 0.1 0.1 0.2 ---- ----
Stockholders' equity � � 1,021.3 � � � 1,119.4 � � � 1,125.5 � � �
1,093.7 � � � 1,087.8 � (8.8 ) (6.1 ) Total liabilities and
stockholders' equity $ 12,043.5 � � $ 11,825.4 � � $ 11,363.2 � � $
11,126.0 � � $ 10,963.3 � 1.8 9.9 � � � � WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the nine months ended
September 30, 2008 � � � � � YIELDS AND RATES � � 2008 2008 2008
2007 2007 Third Second First Fourth Third YIELDS/RATES
(tax-equivalent basis) � Quarter � Quarter � Quarter � Quarter �
Quarter EARNING ASSETS: Interest-bearing time deposits in other
banks 1.93 % 2.09 % 6.33 % 8.08 % 4.95 % Federal funds sold and
securities purchased under agreements to resell 2.57 2.01 3.15 4.18
6.60 � Total investment securities 4.70 4.69 4.95 5.03 4.95 � FHLB
and FRB stock, at cost 3.74 3.00 5.38 2.29 3.38 � Commercial,
financial, and agricultural 5.69 5.94 6.64 7.39 7.91 Real estate -
construction 5.26 5.38 6.53 7.82 8.41 Mortgage - commercial 5.71
5.87 6.72 7.64 8.04 Total commercial loans 5.57 5.76 6.63 7.59 8.10
� Mortgage - residential 5.64 5.83 5.82 5.80 5.74 Consumer 6.28
6.34 6.92 7.33 7.48 Secured with liquid collateral 4.00 4.09 5.27
6.51 6.88 Total retail loans 5.71 5.81 6.40 6.84 6.98 � Total loans
5.61 5.77 6.56 7.36 7.74 � Total earning assets 5.44 5.56 6.27 6.92
7.23 � FUNDS USED TO SUPPORT EARNING ASSETS: � Core deposits
Savings 2.21 2.17 2.65 2.92 2.63 Interest-bearing demand 0.70 0.75
1.05 1.26 1.45 Certificates under $100,000 3.08 3.64 4.18 4.27 4.23
Local certificates $100,000 and over 3.08 3.82 4.44 4.85 4.78 Core
interest-bearing deposits 1.62 1.85 2.28 2.51 2.54 � National
certificates $100,000 and over 3.05 3.53 4.44 5.23 5.41 � Total
interest-bearing deposits 2.21 2.48 3.11 3.46 3.67 � Short-term
borrowings 2.21 2.47 3.53 4.64 5.00 � Long-term debt 7.07 7.25 6.29
5.78 6.02 � Total interest-bearing liabilities 2.44 2.71 3.28 3.80
3.97 � Total funds used to support earning assets 2.17 2.39 2.90
3.36 3.50 � Net interest margin (tax-equivalent basis) 3.27 3.17
3.37 3.56 3.73 � Year-to-date net interest margin 3.27 3.27 3.37
3.67 3.71 � Prime rate 5.00 5.08 6.27 7.58 8.18 � Tax-equivalent
net interest income (in millions) $ 91.7 $ 86.0 $ 87.7 $ 92.0 $
95.1 � Average earning assets at historical cost $ 11,166.1 $
10,896.5 $ 10,468.0 $ 10,258.9 $ 10,113.9 Average fair valuation
adjustment on investment securities available for sale � (90.1 ) �
(84.5 ) � (24.4 ) � (24.5 ) � (38.9 ) Average earning assets $
11,076.0 � $ 10,812.0 � $ 10,443.6 � $ 10,234.4 � $ 10,075.0 �
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
nine months ended September 30, 2008 � � � CREDIT QUALITY � Three
Months Ended (Dollars in millions) � � Sept.30, 2008 � � � June30,
2008 � � Mar. 31, 2008 � � Dec. 31, 2007 � � Sept. 30, 2007 �
NONPERFORMING ASSETS AT PERIOD-END Nonaccruing loans: Commercial,
financial, and agricultural $ 28.4 $ 27.0 $ 25.6 $ 23.8 $ 12.1
Commercial real estate - construction 41.0 22.6 9.9 9.9 21.2
Commercial mortgage 8.6 8.1 8.2 7.1 8.7 � Consumer and other retail
� � 22.1 � � � 13.9 � � 9.7 � � 7.0 � � 12.1 � Total nonaccruing
loans 100.1 71.6 53.4 47.8 54.1 Renegotiated loans � � 0.1 � � �
0.2 � � 24.1 � � 23.7 � � 19.2 � Total nonaccruing loans and
renegotiated loans 100.2 71.8 77.5 71.5 73.3 Other real estate
owned (OREO) � � 14.5 � � � 16.7 � � 0.2 � � 9.1 � � 0.2 � Total
nonperforming loans 114.7 88.5 77.7 80.6 73.5 � Loans past due 90
days or more: Commercial, financial, and agricultural 6.5 6.1 3.7
2.4 9.4 Commercial real estate - construction 5.2 0.6 0.3 0.7 0.7
Commercial mortgage 2.1 1.3 ---- 1.3 1.1 � Consumer and other
retail � � 14.9 � � � 13.8 � � 10.6 � � 9.3 � � 5.8 � Total loans
past due 90 days or more 28.7 21.8 14.6 13.7 17.0 � NET CHARGE-OFFS
Loans charged off: Commercial, financial, and agricultural $ 4.9 $
2.9 $ 0.7 $ 1.3 $ 0.6 Commercial real estate - construction ----
5.2 0.3 2.3 0.6 Commercial mortgage 1.0 0.1 ---- 1.2 0.1 � Consumer
and other retail � � 5.8 � � � 6.0 � � 5.4 � � 6.7 � � 5.5 � Total
loans charged off 11.7 14.2 6.4 11.5 6.8 Recoveries on loans
previously charged off: Commercial, financial, and agricultural 0.2
0.2 0.1 ---- 0.2 Commercial real estate - construction ---- ----
---- ---- ---- Commercial mortgage ---- 0.8 ---- ---- ---- �
Consumer and other retail � � 1.0 � � � 1.4 � � 1.6 � � 1.8 � � 1.8
� Total recoveries � 1.2 � � � 2.4 � � 1.7 � � 1.8 � � 2.0 Net
loans charged off 10.5 11.8 4.7 9.7 4.8 � RATIOS Period-end reserve
to loans 1.27 % 1.22 % � 1.21 % � 1.19 % � 1.22 % Period-end
non-performing assets to loans 1.20 0.95 0.88 0.95 0.88 Period-end
loans past due 90 days to total loans 0.30 0.23 0.17 0.16 0.20
Quarterly net charge-offs to average loans (not annualized) 0.11
0.13 0.05 0.12 0.06 Year-to-date net charge-offs to average loans
0.30 0.19 0.05 0.26 0.14 � INTERNAL RISK RATING Pass 96.08 % 96.28
% � 95.62 % � 96.03 % � 96.01 % Watchlisted 2.25 2.29 2.98 2.69
2.62 Substandard 1.66 1.42 1.39 1.27 1.36 Doubtful 0.01 0.01 0.01
0.01 0.01 � LOAN PORTFOLIO COMPOSITION Commercial, financial, and
agricultural 31 % 30 % � 30 % � 31 % � 30 % Commercial real estate
- construction 20 20 21 21 21 Commercial mortgage 19 18 18 17 17
Residential mortgage 6 6 6 6 7 Consumer 18 20 19 19 18 Secured by
liquid collateral 6 6 6 6 7 � COMMERCIAL REAL ESTATE - CONSTRUCTION
DETAIL Project type: Residential real estate construction 52 % 53 %
� 53 % � 52 % � 54 % Land development 22 22 21 21 19 Retail and
office 14 13 13 14 13 Owner-occupied 3 4 5 5 6 Multi-family 2 2 2 2
2 Other 7 6 6 6 6 Geographic location: Delaware 61 % 61 % � 61 % �
61 % � 59 % Pennsylvania 23 24 25 25 27 Maryland 6 6 6 7 7 New
Jersey 7 6 5 4 4 Other 3 3 3 3 3 � WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the nine months ended September 30,
2008 � � � � � � � SUPPLEMENTAL INFORMATION � Three Months Ended �
% Change From: Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior
Prior � � 2008 � 2008 � 2008 � 2007 � 2007 � Quarter � Year NET
INCOME Net income per share Basic $ 0.34 $ (0.29 ) $ 0.62 $ 0.66 $
0.68 ---- (50.0 ) Diluted 0.34 (0.29 ) 0.62 0.65 0.67 ---- (49.3 )
Weighted average shares outstanding (in thousands) Basic 67,231
67,167 67,067 67,174 67,698 Diluted 67,269 67,167 67,338 67,749
68,582 Net income as a percentage of: Average assets 0.76 % (0.66
)% 1.47 % 1.57 % 1.67 % Average stockholders' equity 8.92 (7.01 )
14.79 15.96 16.85 � ASSETS UNDER MANAGEMENT * (in billions)
Wilmington Trust $ 37.1 $ 38.4 $ 35.0 $ 35.9 $ 34.5 (3.4 ) 7.5
Roxbury Capital Management 1.9 2.1 2.1 2.5 2.8 (9.5 ) (32.1 )
Cramer Rosenthal McGlynn � � 10.1 � � � 11.2 � � � 10.9 � � � 11.4
� � � 11.8 � (9.8 ) (14.4 ) Combined assets under management $ 49.1
� � $ 51.7 � � $ 48.0 � � $ 49.8 � � $ 49.1 � (5.0 ) ---- � *
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 $ 139.9 $ 146.6 $ 120.7 $ 124.3 $ 121.6
(4.6 ) 15.0 ** Includes Wilmington Trust assets under management �
INVESTMENT MIX OF ASSETS MANAGED BY WILMINGTON TRUST Equities 41 %
44 % 45 % 47 % 49 % Fixed income 26 24 22 23 23 Other 33 32 33 30
28 � CAPITAL (in millions, except per share amounts) Average
stockholders' equity $ 1,021.3 $ 1,119.4 $ 1,125.5 $ 1,093.7 $
1,087.8 (8.8 ) (6.1 ) Period-end primary capital 1,184.3 1,179.5
1,249.9 1,221.4 1,199.6 0.4 (1.3 ) Per share: Book value 15.60
15.85 16.99 16.70 16.23 (1.6 ) (3.9 ) Quarterly dividends declared
0.345 0.345 0.335 0.335 0.335 ---- 3.0 Year-to-date dividends
declared 1.025 0.68 0.335 1.32 0.985 Average stockholders' equity
to assets 8.48 % 9.47 % 9.90 % 9.83 % 9.92 % Total risk-based
capital ratio 11.24 11.14 11.17 11.21 11.54 Tier 1 risk-based
capital ratio 6.77 6.74 7.73 7.73 7.96 Tier 1 leverage capital
ratio 6.52 6.45 7.23 7.18 7.31 � INVESTMENT SECURITIES PORTFOLIO
Average life (in years) 6.13 6.16 4.47 4.45 4.66 Average duration
1.84 2.58 1.90 1.97 1.85 Percentage invested in fixed rate
instruments 85 % 83 % 81 % 82 % 81 % � FUNDING (on average)
Percentage from core deposits 53 % 54 % 53 % 54 % 54 % Percentage
from national funding 31 27 29 25 30 Percentage from short-term
borrowings 16 19 18 21 16 � ASSET - LIABILITY MATCHING As a
percentage of total balances at period-end: Loans outstanding with
floating rates 73 % 72 % 71 % 71 % 71 % Commercial loans with
floating rates 88 87 86 85 86 Commercial loans tied to a prime rate
54 56 58 59 60 Commercial loans tied to the 30-day LIBOR 40 38 35
36 35 � National CDs and short-term borrowings maturing in 90 days
or less 95 % 92 % 83 % 75 % 78 % � FULL-TIME EQUIVALENT HEADCOUNT
Full-time equivalent headcount 2,925 2,879 2,704 2,672 2,658 �
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
nine months ended September 30, 2008 � QUARTERLY BUSINESS SEGMENT
REPORT � � Three Months Ended � � � � (In millions) � � Sept.
30,2008 � � June 30,2008 � � Mar. 31,2008 � � Dec. 31,2007 � �
Sept. 30,2007 REGIONAL BANKING Net interest income $ 85.6 $ 80.8 $
80.2 $ 84.3 $ 87.6 Provision for loan losses (18.0 ) (17.1 ) (9.3 )
(7.0 ) (7.8 ) Noninterest income 14.0 13.9 18.0 13.2 12.1
Noninterest expense � � 42.9 � � � 41.9 � � � 41.5 � � � 45.3 � � �
42.6 � Income before taxes & minority interest 38.7 35.7 47.4
45.2 49.3 � Regional Banking efficiency ratio 42.86 % 43.87 % 41.92
% 46.04 % 42.35 % � WEALTH ADVISORY SERVICES Net interest income $
4.9 $ 5.2 $ 6.1 $ 6.4 $ 6.3 Provision for loan losses (1.6 ) (1.4 )
(0.7 ) (2.2 ) (1.1 ) Noninterest income 53.8 54.7 52.8 56.1 53.2
Noninterest expense � � 50.5 � � � 50.9 � � � 50.8 � � � 48.9 � � �
46.5 � Income before taxes & minority interest 6.6 7.6 7.4 11.4
11.9 � Wealth Advisory Services efficiency ratio 86.03 % 84.97 %
86.25 % 78.24 % 78.02 % � CORPORATE CLIENT SERVICES Net interest
income $ 2.4 $ 1.8 $ 3.0 $ 3.3 $ 3.2 Provision for loan losses ----
---- ---- ---- ---- Noninterest income 35.7 33.0 28.0 27.7 25.1
Noninterest expense � � 30.5 � � � 28.8 � � � 23.2 � � � 22.7 � � �
21.7 � Income before taxes & minority interest 7.6 6.0 7.8 8.3
6.6 � Corporate Client Services efficiency ratio 79.84 % 82.76 %
74.84 % 73.23 % 76.68 % � AFFILIATE MANAGERS * Net interest income
$ (1.8 ) $ (2.6 ) $ (2.4 ) $ (2.9 ) $ (3.0 ) Provision for loan
losses ---- ---- ---- ---- ---- Noninterest income 4.0 4.2 4.0 5.7
4.4 Noninterest expense � � ---- � � � ---- � � � ---- � � � ---- �
� � ---- � Income before taxes & minority interest 2.2 1.6 1.6
2.8 1.4 � TOTAL WILMINGTON TRUST CORPORATION Net interest income $
91.1 $ 85.2 $ 86.9 $ 91.1 $ 94.1 Provision for loan losses (19.6 )
(18.5 ) (10.0 ) (9.2 ) (8.9 ) Noninterest income 107.5 105.8 102.8
102.7 94.8 Noninterest expense � 123.9 � � � 121.6 � � � 115.5 � �
� 116.9 � � � 110.8 � Income before taxes & minority interest $
55.1 � � $ 50.9 � � $ 64.2 � � $ 67.7 � � $ 69.2 � � Investment
securities impairment charge $ (19.7 ) $ (12.6 ) $ ---- $ ---- $
---- Roxbury Capital Management impairment charge � ---- � � �
(66.9 ) � � ---- � � � ---- � � � ---- � Reported income before
taxes & minority interest $ 35.4 � � $ (28.6 ) � $ 64.2 � � $
67.7 � � $ 69.2 � � Corporation efficiency ratio 69.03 % 105.19 %
60.63 % 60.04 % 58.35 % * 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 nine months ended September 30, 2008 � YEAR-TO-DATE
BUSINESS SEGMENT REPORT � � � � � Nine Months Ended � Sept. 30,
Sept. 30, $ % (In millions) � 2008 � 2007 � Change � Change
REGIONAL BANKING Net interest income $ 246.5 $ 257.8 $ (11.3 ) (4.4
) Provision for loan losses (44.4 ) (17.5 ) 26.9 153.7 Noninterest
income 45.8 38.2 7.6 19.9 � Noninterest expense � � 126.2 � � �
124.6 � � � 1.6 � � 1.3 � Income before taxes & minority
interest 121.7 153.9 (32.2 ) (20.9 ) � Regional Banking efficiency
ratio 42.88 % 41.71 % � WEALTH ADVISORY SERVICES Net interest
income $ 16.1 $ 18.7 $ (2.6 ) (13.9 ) Provision for loan losses
(3.6 ) (1.5 ) 2.1 140.0 Noninterest income 161.3 153.5 7.8 5.1 �
Noninterest expense � � 152.2 � � � 139.3 � � � 12.9 � � 9.3 �
Income before taxes & minority interest 21.6 31.4 (9.8 ) (31.2
) � Wealth Advisory Services efficiency ratio 85.75 % 80.80 % �
CORPORATE CLIENT SERVICES Net interest income $ 7.2 $ 10.4 $ (3.2 )
(30.8 ) Provision for loan losses ---- ---- ---- ---- Noninterest
income 96.7 76.3 20.4 26.7 � Noninterest expense � � 82.6 � � �
63.3 � � � 19.3 � � 30.5 � Income before taxes & minority
interest 21.3 23.4 (2.1 ) (9.0 ) � Corporate Client Services
efficiency ratio 79.42 % 72.93 % � AFFILIATE MANAGERS * Net
interest income $ (6.7 ) $ (9.2 ) $ 2.5 27.2 Provision for loan
losses ---- ---- ---- ---- Noninterest income 12.2 15.2 (3.0 )
(19.7 ) � Noninterest expense � � ---- � � � ---- � � � ---- � �
---- � Income before taxes & minority interest 5.5 6.0 (0.5 )
(8.3 ) � TOTAL WILMINGTON TRUST CORPORATION Net interest income $
263.1 $ 277.7 $ (14.6 ) (5.3 ) Provision for loan losses (48.0 )
(19.0 ) 29.0 152.6 Noninterest income 316.0 283.2 32.8 11.6 �
Noninterest expense � � 361.0 � � � 327.2 � � � 33.8 � � 10.3 �
Income before taxes & minority interest $ 170.1 � � $ 214.7 � �
$ (44.6 ) � (20.8 ) � Investment securities impairment charge $
(32.3 ) $ ---- $ (32.3 ) ---- Roxbury Capital Management impairment
charge � (66.9 ) � � ---- � � � (66.9 ) � ---- � Reported income
before taxes & minority interest $ 70.9 � � $ 214.7 � � $
(143.8 ) � (67.0 ) � Corporation efficiency ratio 77.94 % 58.02 % *
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. �
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