-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TaGUsdRoWhRpBjla9nZjqcr1ep16Xbn+d6TbgJtKA+Kv4p5/tMVTuXJGFTAf9rhe coj4U8cdv8XrRIE8+C9Cng== /in/edgar/work/20000814/0000893220-00-000980/0000893220-00-000980.txt : 20000921 0000893220-00-000980.hdr.sgml : 20000921 ACCESSION NUMBER: 0000893220-00-000980 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WILMINGTON TRUST CORP CENTRAL INDEX KEY: 0000872821 STANDARD INDUSTRIAL CLASSIFICATION: [6022 ] IRS NUMBER: 510328154 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-14659 FILM NUMBER: 700298 BUSINESS ADDRESS: STREET 1: RODNEY SQUARE NORTH STREET 2: 1100 NORTH MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19890 BUSINESS PHONE: 3026511000 MAIL ADDRESS: STREET 1: 1100 NORTH MARKET STREET CITY: WILMINGTON STATE: DE ZIP: 19890 10-Q 1 e10-q.txt 10-Q FOR WILMINGTON TRUST CORPORATION 06/30/2000 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From ____________ to ___________ Commission File Number: 1-14659 WILMINGTON TRUST CORPORATION ----------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 51-0328154 - ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization)
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890 ------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (302) 651-1000 ---------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable ---------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [ ] No 2 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Number of shares of issuer's common stock ($1.00 par value) outstanding at June 30, 2000 - 32,330,236 shares 2 3 Wilmington Trust Corporation and Subsidiaries Form 10-Q Index
Page ---- Part I Financial Information Item 1 - Financial Statements Consolidated Statements of Condition 4 Consolidated Statements of Income 6 Consolidated Statements of Cash Flows 8 Notes to Consolidated Financial Statements 10 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3 - Quantitative and Qualitative Disclosures About Market Risk 23 Part II. Other Information Item 1 - Legal Proceedings 25 Item 2 - Changes in Securities and Use of Proceeds 25 Item 3 - Defaults Upon Senior Securities 25 Item 4 - Submission of Matters to a Vote of Security Holders 25 Item 5 - Other Information 25 Item 6 - Exhibits and Reports on Form 8-K 25 Exhibit 11 Exhibit 27
3 4 CONSOLIDATED STATEMENTS OF CONDITION (unaudited) Wilmington Trust Corporation and Subsidiaries
------------------------------ June 30, December 31, (in thousands) 2000 1999 - -------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $ 247,640 $ 225,145 ------------------------------ Interest-bearing time deposits in other banks -- -- ------------------------------ Federal funds sold and securities purchased under agreements to resell 84,813 129,760 ------------------------------ Investment securities available for sale: U.S. Treasury and government agencies 931,978 997,799 Obligations of state and political subdivisions 4,305 4,732 Other securities 601,097 683,736 - -------------------------------------------------------------------------------------------------- Total investment securities available for sale 1,537,380 1,686,267 ------------------------------ Investment securities held to maturity: U.S. Treasury and government agencies 11,240 11,960 Obligations of state and political subdivisions 6,790 7,244 Other securities 6,842 12,028 - -------------------------------------------------------------------------------------------------- Total investment securities held to maturity (market values were $24,724 and $31,150, respectively) 24,872 31,232 ------------------------------ Loans: Commercial, financial and agricultural 1,626,247 1,521,336 Real estate-construction 370,317 303,734 Mortgage-commercial 931,316 919,297 Mortgage-residential 979,755 968,259 Consumer 1,192,391 1,108,945 Unearned income (761) (1,492) - -------------------------------------------------------------------------------------------------- Total loans net of unearned income 5,099,265 4,820,079 Reserve for loan losses (75,483) (76,925) - -------------------------------------------------------------------------------------------------- Net loans 5,023,782 4,743,154 ------------------------------ Premises and equipment, net 129,622 132,160 Goodwill and other intangible assets, net of accumulated amortization of $13,205 in 2000 and $9,700 in 1999 163,883 148,005 Accrued interest receivable 47,872 43,672 Other assets 104,440 62,549 - -------------------------------------------------------------------------------------------------- Total assets $ 7,364,304 $ 7,201,944 ==============================
4 5 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 954,579 $ 994,643 Interest-bearing: Savings 391,065 393,750 Interest-bearing demand 1,363,449 1,397,574 Certificates under $100,000 972,959 1,067,729 Certificates $100,000 and over 1,766,873 1,515,788 - ------------------------------------------------------------------------------------------------- Total deposits 5,448,925 5,369,484 ------------------------------ Short-term borrowings: Federal funds purchased and securities sold under agreements to repurchase 1,104,035 995,858 U.S. Treasury demand 47,188 95,000 - ------------------------------------------------------------------------------------------------- Total short-term borrowings 1,151,223 1,090,858 ------------------------------ Accrued interest payable 43,230 56,012 Other liabilities 27,825 19,359 Long-term debt 168,000 168,000 - ------------------------------------------------------------------------------------------------- Total liabilities 6,839,203 6,703,713 ------------------------------ Stockholders' equity: Common stock ($1.00 par value) authorized 150,000,000 shares; issued 39,264,173 39,264 39,264 Capital surplus 72,149 70,749 Retained earnings 722,594 689,598 Accumulated other comprehensive income (38,031) (34,796) - ------------------------------------------------------------------------------------------------- Total contributed capital and retained earnings 795,976 764,815 Less: Treasury stock, at cost, 6,933,937 and 6,911,398 shares, respectively (270,875) (266,584) - ------------------------------------------------------------------------------------------------- Total stockholders' equity 525,101 498,231 ------------------------------ Total liabilities and stockholders' equity $ 7,364,304 $ 7,201,944 ==============================
See Notes to Consolidated Financial Statements 5 6 CONSOLIDATED STATEMENTS OF INCOME (unaudited) Wilmington Trust Corporation and Subsidiaries
For the three months ended For the six months ended June 30, June 30, ----------------------------------------------------------- (in thousands; except per share data) 2000 1999 2000 1999 - ------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME Interest and fees on loans $ 106,794 $ 89,636 $ 206,516 $ 176,837 Interest and dividends on investment securities: Taxable interest 22,864 20,237 45,850 37,593 Tax-exempt interest 143 190 295 380 Dividends 2,316 2,302 4,824 4,663 Interest on time deposits in other banks -- -- -- -- Interest on federal funds sold and securities purchased under agreements to resell 465 366 1,115 646 - ------------------------------------------------------------------------------------------------------------ Total interest income 132,582 112,731 258,600 220,119 ------------------------------------------------------------ Interest on deposits 47,899 33,650 92,462 67,483 Interest on short-term borrowings 17,296 14,597 32,300 27,577 Interest on long-term debt 2,762 2,763 5,523 5,519 - ------------------------------------------------------------------------------------------------------------ Total interest expense 67,957 51,010 130,285 100,579 ------------------------------------------------------------ Net interest income 64,625 61,721 128,315 119,540 Provision for loan losses (5,000) (4,500) (10,500) (9,500) - ------------------------------------------------------------------------------------------------------------ Net interest income after provision for loan losses 59,625 57,221 117,815 110,040 ------------------------------------------------------------ OTHER INCOME Trust and asset management fees 40,187 36,007 80,517 72,086 Service charges on deposit accounts 6,207 5,948 12,432 11,374 Card fees 2,490 2,280 4,725 4,282 Other operating income 2,153 1,848 4,090 3,920 Securities gains 185 4 1,660 24 - ------------------------------------------------------------------------------------------------------------ Total other income 51,222 46,087 103,424 91,686 ------------------------------------------------------------ Net interest and other income 110,847 103,308 221,239 201,726 ------------------------------------------------------------ OTHER EXPENSE Salaries and employment benefits 38,832 34,221 80,522 68,013 Net occupancy 4,187 3,961 7,804 7,048 Furniture and equipment 5,652 5,675 11,247 10,088 Stationery and supplies 1,539 1,498 3,172 3,059 Servicing and consulting fees 1,792 1,308 3,554 3,085
6 7 Advertising and contributions 2,402 1,953 3,707 3,898 Other operating expense 10,623 9,648 19,584 18,116 - ------------------------------------------------------------------------------------------------------------ Total other expense 65,027 58,264 129,590 113,307 ------------------------------------------------------------ NET INCOME Income before income taxes 45,820 45,044 91,649 88,419 Applicable income taxes 15,377 15,098 30,605 29,317 - ------------------------------------------------------------------------------------------------------------ Net income $ 30,443 $ 29,946 $ 61,044 $ 59,102 ============================================================ Net income per share: basic $ 0.94 $ 0.90 $ 1.89 $ 1.78 ============================================================ diluted $ 0.94 $ 0.89 $ 1.88 $ 1.76 ============================================================ Weighted average shares outstanding: basic 32,275 33,148 32,251 33,112 diluted 32,566 33,641 32,555 33,672 Cash dividends per share $ 0.45 $ 0.42 $ 0.87 $ 0.81
See Notes to Consolidated Financial Statements 7 8 CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Wilmington Trust Corporation and Subsidiaries
-------------------------------------- For the six months ended June 30, (in thousands) 2000 1999 - -------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 61,044 $ 59,102 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 10,500 9,500 Provision for depreciation 9,189 8,052 Amortization of investment securities available for sale discounts and premiums 3,217 1,317 Accretion of investment securities held to maturity discounts and premiums (6) (37) Deferred income taxes 185 313 Securities gains (1,660) (24) (Increase)/decrease in other assets (42,771) 7,851 Decrease in other liabilities (2,008) (17,805) - -------------------------------------------------------------------------------------------------- Net cash provided by operating activities 37,690 68,269 -------------------------------------- INVESTING ACTIVITIES Proceeds from sales of investment securities available for sale 211,520 521,719 Proceeds from maturities of investment securities available for sale 148,789 159,726 Proceeds from maturities of investment securities held to maturity 6,366 36,288 Purchases of investment securities available for sale (218,034) (1,067,924) Purchases of investment securities held to maturity -- (500) Investments in affiliates (19,383) (18,915) Gross proceeds from sales of loans 27,469 61,981 Purchases of loans (4,628) (5,669) Net increase in loans (313,969) (317,310) Net increase in premises and equipment (6,651) (11,137) - -------------------------------------------------------------------------------------------------- Net cash used for investing activities (168,521) (641,741) ------------------------------------- FINANCING ACTIVITIES Net (increase)/decrease in demand, savings and interest-bearing demand deposits (76,874) 27,996 Net increase in certificates of deposit 156,315 196,446 Net increase in federal funds purchased and securities sold under agreements to repurchase 108,177 292,235 Net (decrease)/increase in U.S. Treasury demand (47,812) 64,858 Cash dividends (28,048) (26,817) Proceeds from common stock issued under employment benefit plans 5,255 10,440 Payments for common stock acquired through buybacks (8,634) (33,625) - --------------------------------------------------------------------------------------------------
8 9 Net cash provided by financing activities 108,379 531,533 ------------------------------------- Decrease in cash and cash equivalents (22,452) (41,939) Cash and cash equivalents at beginning of period 354,905 288,079 - ------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 332,453 $ 246,140 ===================================== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the period for: Interest $ 143,067 $ 101,521 Taxes 35,250 22,081 Loans transferred during the year: To other real estate owned $ 1,675 $ 1,236 From other real estate owned 1,449 1,846
See Notes to Consolidated Financial Statements 9 10 Note 1 - Accounting and Reporting Policies The accounting and reporting policies of Wilmington Trust Corporation (the "Corporation"), a holding company that owns all of the issued and outstanding shares of capital stock of Wilmington Trust Company, Wilmington Trust of Pennsylvania, Wilmington Trust FSB and WT Investments, Inc., conform to generally accepted accounting principles and practices in the banking industry for interim financial information. The information for the interim periods is unaudited and includes all adjustments that are of a normal recurring nature and that management believes to be necessary for fair presentation. Results of the interim periods are not necessarily indicative of the results that may be expected for the full year. This note is presented and should be read in conjunction with the Notes to the Consolidated Financial Statements included in the Corporation's Annual Report to Shareholders for 1999. Note 2 - Comprehensive Income Total comprehensive income for the Corporation included net income and the after-tax, unrealized gains and/or losses on the Corporation's investment securities available-for-sale portfolio. For the three months ended June 30, 2000 and 1999, total comprehensive income, net of taxes, was $29,641,000 and $10,282,000, respectively. For the six months ended June 30, 2000 and 1999, total comprehensive income, net of taxes, was $57,809,000 and $36,541,000, respectively. Note 3 - Earnings per share The following table sets forth the computation of basic and diluted net earnings per share:
For the six months ended June 30, ------------------------ (in thousands; except per share data) 2000 1999 - ------------------------------------- ------------------------ Numerator Net income $61,044 $59,102 - -------------------------------------------------------------------------------- Denominator Denominator for basic earnings per share - weighted-average shares 32,251 33,112 - -------------------------------------------------------------------------------- Effect of dilutive securities: Employee stock options 304 560 - -------------------------------------------------------------------------------- Denominator for diluted earnings per share - adjusted weighted-average shares and assumed conversions 32,555 33,672 - -------------------------------------------------------------------------------- Basic earnings per share $ 1.89 $ 1.78 ================================================================================ Diluted earnings per share $ 1.88 $ 1.76 ================================================================================
10 11 Note 4 - Segment Reporting
Financial data by segment for June 30, 2000 vs June 30, 1999 is as follows: - ----------------------------------------------------------------------------------------------------------------------------------- Banking Fee-Based Funds Year-to-Date June 30, 2000 (in thousands) Business Business Management Totals - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income $ 112,700 $ 12,945 $ 3,705 $ 129,350 Provision for loan losses (10,318) (182) -- (10,500) - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income after provision 102,382 12,763 3,705 118,850 Trust and asset management fees: Personal trust -- 34,597 -- 34,597 Corporate financial services -- 26,547 -- 26,547 Asset management -- 23,094 -- 23,094 Amortization of goodwill -- (3,505) -- (3,505) Other operating income 20,629 889 734 22,252 Securities gains 1,644 -- 16 1,660 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest and other income 124,655 94,385 4,455 223,495 Other expense (66,584) (63,120) (1,002) (130,706) - ----------------------------------------------------------------------------------------------------------------------------------- Segment profit from operations 58,071 31,265 3,453 92,789 Segment loss from infrequent events -- (63) -- (63) - ----------------------------------------------------------------------------------------------------------------------------------- Segment profit before income taxes $ 58,071 $ 31,202 $ 3,453 $ 92,726 =================================================================================================================================== Intersegment revenue $ 12,017 $ 3,886 $ 1,868 $ 17,771 Depreciation and amortization 5,539 3,856 149 9,544 Investment in equity method investees -- 178,069 -- 178,069 Segment average assets 4,411,961 968,132 3,587,797 8,967,890 Year-to-Date June 30, 1999 (in thousands) - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income $ 100,727 $ 10,878 $ 8,980 $ 120,585 Provision for loan losses (9,441) (56) -- (9,497) - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income after provision 91,286 10,822 8,980 111,088 Trust and asset management fees: Personal trust -- 31,887 -- 31,887 Corporate financial services -- 22,631 -- 22,631 Asset management -- 20,858 -- 20,858 Amortization of goodwill -- (2,921) -- (2,921) Other operating income 19,198 942 415 20,555 Securities gains -- -- 24 24 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest and other income 110,484 84,219 9,419 204,122 Other expense (62,696) (50,324) (1,241) (114,261) - ----------------------------------------------------------------------------------------------------------------------------------- Segment profit from operations 47,788 33,895 8,178 89,861 Segment loss from infrequent events -- (340) -- (340) - ----------------------------------------------------------------------------------------------------------------------------------- Segment profit before income taxes $ 47,788 $ 33,555 $ 8,178 $ 89,521 ===================================================================================================================================
11 12 Intersegment revenue $ 5,093 $ 3,750 $ 1,185 $ 10,028 Depreciation and amortization 5,069 3,353 139 8,561 Investment in equity method investees -- 151,299 -- 151,299 Segment average assets 4,148,200 681,864 3,144,426 7,974,490
A reconciliation of reportable segment amounts to the Corporation's consolidated balances is as follows:
- -------------------------------------------------------------------------------------- Year-to-Date June 30 (in thousands) 2000 1999 - -------------------------------------------------------------------------------------- Revenue: Net interest income $ 129,350 $ 120,585 Other revenues 104,645 93,033 Elimination of intersegment revenues (2,256) (2,396) - -------------------------------------------------------------------------------------- Total consolidated revenues before provision $ 231,739 $ 211,222 ============================== Profit or loss: Total profit or loss for reportable segments $ 92,726 $ 89,521 Elimination of intersegment profits (1,077) (1,102) - -------------------------------------------------------------------------------------- $ 91,649 $ 88,419 ============================== Assets: Total assets for reportable segments $ 8,967,890 $ 7,974,490 Other assets 215,342 227,899 Elimination of intersegment assets (2,015,856) (1,740,617) Other assets not allocated to segments -- -- - -------------------------------------------------------------------------------------- Consolidated total average assets $ 7,167,376 $ 6,461,772 ==============================
A description of the Corporation's business lines is contained in Note 18 to its Consolidated Financial Statements in the Corporation's 1999 Annual Report to Shareholders. 12 13 Wilmington Trust Corporation and Subsidiaries Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations SUMMARY - ------- Net income for the second quarter of 2000 was $30.4 million, or $.94 per share, a 2% increase over the $29.9 million, or $.90 per share, reported for the second quarter of last year. Diluted net income per share for the second quarter of 2000 was also $.94, compared to $.89 for the second quarter of last year. Total revenues for the second quarter of 2000 reached $115.8 million, a 7% increase over the $107.8 million reported for the second quarter of 1999. Net interest income for the second quarter of 2000 reached $64.6 million, a 5% increase over the $61.7 million reported for the second quarter of last year. The quarterly provision for loan losses of $5 million was 11% higher than the $4.5 million for the second quarter of 1999. The reserve for loan losses at quarter-end was $75.5 million, $1.4 million, or 2%, below the $76.9 million reported at December 31, 1999. Noninterest income for the second quarter of 2000 was $51.2 million, an 11% increase over the $46.1 million reported for the same quarter of last year. Operating expenses for the second quarter of 2000 were $65.0 million, a 12% increase above the $58.3 million reported for the second quarter of last year. Return on assets for the six months ended June 30, 2000, on an annualized basis, was 1.71%, down from the 1.84% reported for the corresponding period a year ago. Return on stockholders' equity, also on an annualized basis, was 24.21%, as compared with 22.12% for the first six months of 1999. STATEMENT OF CONDITION - ---------------------- Total assets at June 30, 2000 were $7.36 billion, up $162.4 million above the $7.20 billion reported at December 31, 1999. Total earning assets increased $79.0 million over the same period of time, to $6.75 billion, as decreases in investment securities were offset by increases in the loan portfolio. Total loans at June 30, 2000 were $5.10 billion, an increase of $279.2 million, or 6%, over the December 31, 1999 level of $4.82 billion. Contributing to this increase were: commercial loans of $1.63 billion, which rose $104.9 million, or 7%, over their December 31, 1999 level; commercial construction loans of $370.3 million, which rose $66.6 million, or 22%; residential mortgage loans of $979.8 million, which rose $11.5 million, or 1%; and consumer loans of $1.19 billion, which rose $83.4 million, or 8%. Over half of the loan portfolio growth was from activity in the southeastern Pennsylvania market. The investment portfolio at June 30, 2000 was $1.56 billion, a decrease of $155.2 million, or 9%, from the December 31, 1999 level of $1.72 billion. Contributing to this decrease were U.S. Treasury and government agency securities, which decreased $66.5 million, or 7%, to $943.2 million; preferred stocks, which decreased $38.2 million, or 27%, to $104.3 million; and asset-backed securities, which decreased $253 million, or 7%, to $336.6 million. Interest-bearing liabilities at quarter-end were $5.81 billion, $179.9 million, or 3%, above the year-end level of $5.63 billion. Total deposits during the first six months of 2000 increased $79.4 million, while short-term borrowings increased $60.4 million. An increase of $251.1 million in certificates of deposit 13 14 $100,000 and over offset decreases in demand, interest-bearing demand and certificates of deposit $100,000 or less. Complementing this higher level of national market certificates of deposit were increased levels of short-term borrowings, primarily Federal funds purchased, which increased $149.5 million over the prior year-end level to $181.2 million. Shareholders' equity at June 30, 2000 was $525.1 million, $26.9 million, or 5%, over the 1999 year-end level. Earnings of $61.0 million and $5.7 million in new stock issued during that period were offset, in part, by $28.0 million in cash dividends, the repurchase of $8.6 million of treasury stock and a $3.2 million valuation reserve adjustment for the investment portfolio. NET INTEREST INCOME - ------------------- Net interest income for the second quarter of 2000 on a fully tax-equivalent ("FTE") basis was $66.6 million. This was a $2.8 million, or 4%, increase over the $63.8 million reported for the second quarter of 1999. Interest income (FTE) for the second quarter of 2000 increased $19.8 million, or 17%, to $134.5 million from $114.8 million for the second quarter of 1999. Contributing to this improvement was a $584.9 million increase in the average level of earning assets, which added $12.0 million to interest revenues. This was complemented by the higher interest rate environment, which added an additional $7.8 million to interest revenues for the quarter. The average rate earned on the Corporation's earning assets during the second quarter of 2000 increased 45 basis points, from 7.49% to 7.94%. Interest expense for the second quarter of 2000 also increased, rising $16.9 million, or 33%, to $68.0 million. Interest-bearing liabilities, on average, rose $613.3 million over their level of a year ago. This increase in interest-bearing liabilities contributed an additional $8.8 million to interest expense, while the higher rate environment added another $8.1 million to quarterly interest expense. The average rate the Corporation paid for its funds during the second quarter of 2000 was 4.70%, compared to 3.95% for the second quarter of 1999. The Corporation's net interest margin for the second quarter of 2000 was 3.93%, 23 basis points below the 4.16% reported for the second quarter of a year ago. This decline was driven, in part, by the Corporation's use of the national certificate of deposit markets and Federal funds purchased to fund its balance sheet growth. The following two tables present comparative net interest income data and a rate-volume analysis of changes in net interest income for the second quarters of 2000 and 1999, respectively. 14 15 QUARTERLY ANALYSIS OF EARNINGS
2000 Second Quarter 1999 Second Quarter ------------------------------------ ------------------------------------- (in thousands; rates on Average Income/ Average Average Income/ Average tax-equivalent basis) balance expense rate balance expense rate - ---------------------------------------------------------------------------------------------------------------------------------- Earning assets Time deposits in other banks $ -- $ -- -- % $ -- $ -- -- % Federal funds sold and securities purchased under agreements to resell 28,903 465 6.36 31,153 366 4.65 - ---------------------------------------------------------------------------- --------------------------- Total short-term investments 28,903 465 6.36 31,153 366 4.65 ----------------------------------------------------------------------------------- U.S. Treasury and government agencies 945,912 14,679 5.98 955,088 13,941 5.83 State and municipal 11,167 215 7.81 15,125 286 7.65 Preferred stock 114,025 2,532 8.15 164,344 2,770 6.81 Asset-backed securities 341,938 5,502 6.19 358,445 5,558 6.18 Other 203,704 3,346 6.52 91,348 1,139 5.01 - ---------------------------------------------------------------------------- --------------------------- Total investment securities 1,616,746 26,274 6.27 1,584,350 23,694 5.98 ----------------------------------------------------------------------------------- Commercial, financial and agricultural 1,603,756 34,803 8.60 1,427,631 28,107 7.80 Real estate-construction 353,187 8,467 9.48 261,784 5,611 8.47 Mortgage-commercial 929,637 20,399 8.68 870,538 19,012 8.64 Mortgage-residential 986,132 17,591 7.13 865,662 15,325 7.08 Consumer 1,169,238 26,531 9.09 1,061,560 22,652 8.53 - ---------------------------------------------------------------------------- --------------------------- Total loans 5,041,950 107,791 8.50 4,487,175 90,707 8.04 ----------------------------------------------------------------------------------- Total earning assets $6,687,599 134,530 7.94 $6,102,678 114,767 7.49 =================================================================================== Funds supporting earning assets Savings $ 395,967 1,489 1.51 $ 421,928 1,837 1.75 Interest-bearing demand 1,345,330 7,337 2.19 1,426,040 7,366 2.07 Certificates under $100,000 978,312 11,744 4.83 1,162,260 14,637 5.05 Certificates $100,000 and over 1,754,268 27,329 6.16 759,609 9,810 5.11 - ---------------------------------------------------------------------------- --------------------------- Total interest-bearing deposits 4,473,877 47,899 4.27 3,769,837 33,650 3.57 ----------------------------------------------------------------------------------- Federal funds purchased and securities sold under agreements to repurchase 1,059,372 16,321 6.14 1,177,167 14,268 4.83 U.S. Treasury demand 64,204 975 6.01 37,192 329 3.50 - ---------------------------------------------------------------------------- --------------------------- Total short-term borrowings 1,123,576 17,296 6.13 1,214,359 14,597 4.79 ----------------------------------------------------------------------------------- Long-term debt 168,000 2,762 6.58 168,000 2,763 6.58 - ---------------------------------------------------------------------------- ---------------------------
15 16 Total interest-bearing liabilities 5,765,453 67,957 4.70 5,152,196 51,010 3.95 ---------------------------------------------------------------------------------- Other noninterest funds 922,146 -- -- 950,482 -- -- - ------------------------------------------------------------------------- -------------------------- Total funds used to support earning assets $6,687,599 67,957 4.01 $6,102,678 51,010 3.33 ===================================== ======================================== Net interest income/yield 66,573 3.93 63,757 4.16 Tax-equivalent adjustment (1,948) (2,036) -------- -------- Net interest income $ 64,625 $ 61,721 ======== ========
Average rates are calculated using average balances based on historical cost and do not reflect the market valuation adjustment required by Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities," effective January 1, 1994. 16 17 YEAR-TO-DATE ANALYSIS OF EARNINGS
Year-to-Date 2000 Year-to-Date 1999 ------------------------------------- ------------------------------------- (in thousands; rates on Average Income/ Average Average Income/ Average tax-equivalent basis) balance expense rate balance expense rate - ------------------------------------------------------------------------------------------------------------------------------- Earning assets Time deposits in other banks $ -- $ -- -- % -- $ -- -- % Federal funds sold and securities purchased under agreements to resell 38,196 1,115 5.77 27,817 646 4.62 - ------------------------------------------------------------------------- ------------------------- Total short-term investments 38,196 1,115 5.77 27,817 646 4.62 ------------------------------------------------------------------------------ U.S. Treasury and government agencies 951,444 29,390 5.96 895,350 25,900 5.80 State and municipal 11,566 444 7.79 15,184 571 7.63 Preferred stock 123,772 5,315 7.95 166,529 5,583 6.79 Asset-backed securities 347,804 11,182 6.19 324,732 10,161 6.25 Other 199,170 6,525 6.54 91,931 2,338 5.11 - ------------------------------------------------------------------------- ------------------------- Total investment securities 1,633,756 52,856 6.25 1,493,726 44,553 5.98 ------------------------------------------------------------------------------ Commercial, financial and agricultural 1,558,720 65,865 8.37 1,405,641 54,590 7.74 Real estate-construction 340,161 15,995 9.29 245,936 10,540 8.55 Mortgage-commercial 923,694 40,094 8.58 871,669 38,179 8.73 Mortgage-residential 981,310 34,892 7.11 859,895 31,241 7.24 Consumer 1,146,161 51,594 9.01 1,038,348 44,386 8.60 - ------------------------------------------------------------------------- ------------------------- Total loans 4,950,046 208,440 8.37 4,421,489 178,936 8.08 ------------------------------------------------------------------------------ Total earning assets $6,621,998 262,411 7.82 $5,943,032 224,135 7.54 ============================================================================== Funds supporting earning assets Savings $ 396,518 3,041 1.54 $ 415,117 3,805 1.85 Interest-bearing demand 1,354,807 14,299 2.12 1,388,077 15,027 2.18 Certificates under $100,000 1,011,487 24,305 4.83 1,168,924 29,581 5.10 Certificates $100,000 and over 1,670,717 50,817 6.02 730,011 19,070 5.20 - ------------------------------------------------------------------------- ------------------------- Total interest-bearing deposits 4,433,529 92,462 4.16 3,702,129 67,483 3.66 ------------------------------------------------------------------------------ Federal funds purchased and securities sold under agreements to repurchase 1,032,180 30,722 5.93 1,104,382 26,778 4.84 U.S. Treasury demand 54,837 1,578 5.69 32,877 799 4.83 - ------------------------------------------------------------------------- ------------------------- Total short-term borrowings 1,087,017 32,300 5.92 1,137,259 27,577 4.84 ------------------------------------------------------------------------------ Long-term debt 168,000 5,523 6.58 168,000 5,519 6.57 - ------------------------------------------------------------------------- -------------------------
17 18 Total interest-bearing liabilities 5,688,546 130,285 4.56 5,007,388 100,579 4.03 ------------------------------------------------------------------------------ Other noninterest funds 933,452 -- -- 935,644 -- -- -------------------------------------------------------------------- ------------------------- Total funds used to support earning assets $6,621,998 130,285 3.89 $5,943,032 100,579 3.39 ============================================================================== Net interest income/yield 132,126 3.93 123,556 4.15 Tax-equivalent adjustment (3,811) (4,016) -------- -------- Net interest income $128,315 $119,540 ======== ========
Average rates are calculated using average balances based on historical cost and do not reflect the market valuation adjustment required by Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities," effective January 1, 1994. 18 19 RATE-VOLUME ANALYSIS OF NET INTEREST INCOME
------------------------------------- --------------------------------------- For the three months ended June 30, For the six months ended June 30, ------------------------------------- --------------------------------------- 2000/1999 1999/1998 Increase (Decrease) Increase (Decrease) due to change in due to change in ------------------------------------- -------------------------------------- (in thousands) Volume(1) Rate(2) Total Volume(1) Rate(2) Total - ---------------------------------------------------------------------------------------------------------------------------- Interest income: Time deposits in other banks $ -- $ -- $ -- $ -- $ -- $ -- Federal funds sold and securities purchased under agreements to resell (26) 125 99 242 227 469 - ---------------------------------------------------------------------------------------------------------------------------- Total short-term investments (26) 125 99 242 227 469 ---------------------------------------------------------------------------------- U.S. Treasury and government agencies 368 370 738 2,717 773 3,490 State and municipal * (76) 5 (71) (136) 9 (127) Preferred stock * (661) 423 (238) (1,054) 786 (268) Asset-backed securities (59) 3 (56) 1,132 (111) 1,021 Other * 1,431 776 2,207 2,761 1,426 4,187 - ---------------------------------------------------------------------------------------------------------------------------- Total investment securities 1,003 1,577 2,580 5,420 2,883 8,303 ---------------------------------------------------------------------------------- Commercial, financial and agricultural * 3,416 3,280 6,696 5,892 5,383 11,275 Real estate-construction 1,925 931 2,856 4,006 1,449 5,455 Mortgage-commercial * 1,270 117 1,387 2,258 (343) 1,915 Mortgage-residential 2,121 145 2,266 4,371 (720) 3,651 Consumer 2,284 1,595 3,879 4,611 2,597 7,208 - ---------------------------------------------------------------------------------------------------------------------------- Total loans 11,016 6,068 17,084 21,138 8,366 29,504 - ---------------------------------------------------------------------------------------------------------------------------- Total interest income $ 11,993 $ 7,770 $ 19,763 $ 26,800 $ 11,476 $ 38,276 ================================================================================== Interest expense: Savings $ (113) $ (235) $ (348) $ (171) $ (593) $ (764) Interest-bearing demand (415) 386 (29) (361) (367) (728) Certificates under $100,000 (2,310) (583) (2,893) (3,993) (1,283) (5,276) Certificates $100,000 and over 12,848 4,671 17,519 24,730 7,017 31,747 ----------------------------------------------------------------------------------
19 20 Total interest-bearing deposits 10,010 4,239 14,249 20,205 4,774 24,979 ---------------------------------------------------------------------------------- Federal funds purchased and securities sold under agreements to repurchase (1,422) 3,475 2,053 (1,747) 5,691 3,944 U.S. Treasury demand 239 407 646 536 243 779 - ---------------------------------------------------------------------------------------------------------------------------- Total short-term borrowings (1,183) 3,882 2,699 (1,211) 5,934 4,723 ---------------------------------------------------------------------------------- Long-term debt (1) -- (1) -- 4 4 - ---------------------------------------------------------------------------------------------------------------------------- Total interest expense $ 8,826 $ 8,121 $ 16,947 $ 18,994 $ 10,712 $ 29,706 ================================================================================== Changes in net interest income $ 2,816 $ 8,570 ======== ========
* Variances are calculated on a fully tax-equivalent basis, which includes the effects of any disallowed interest expense. (1) Changes attributable to volume are defined as change in average balance multiplied by the prior year's rate. (2) Changes attributable to rate are defined as a change in rate multiplied by the average balance in the applicable period of the prior year. A change in rate/volume (change in rate multiplied by change in volume) has been allocated to the change in rate. 20 21 NON-INTEREST REVENUES AND OPERATING EXPENSES - -------------------------------------------- Non-interest revenues for the second quarter of 2000 were $51.2 million, an increase of $5.1 million, or 11%, over those for the second quarter of a year ago, due primarily to higher trust and asset management fees. Wealth management and corporate trust fees for the second quarter of 2000 increased $4.2 million, or 12%, to $40.2 million. This represented 35% of the Corporation's operating revenues for the second quarter of 2000, compared to 33% for the second quarter of 1999. Corporate trust fees increased $2.0 million, or 17%, to $13.4 million due in part to double digit fee growth in the Corporation's employee benefit and investment holding company product lines. Asset management fees for the quarter rose $1.3 million, or 15%, to $10.1 million due to strong growth in fees from the Corporation's affiliate managers, whose assets under management have grown 42% over those of the second quarter of 1999 to $16.5 billion. Private client advisory services fees for the quarter rose $867,000, or 5%, to $16.7 million. Service charges on deposit accounts for the second quarter were $6.2 million, 4% above those of a year ago. Increased transaction fees associated with checking accounts and automated teller machine usage contributed to this increase. Card fees for the second quarter were $2.5 million, an increase of $210,000, or 9%, due primarily to increased interchange fees on ATM transactions. Other operating income for the second quarter was $4.6 million. This was an increase of $515,000, or 13%, over the $4.1 million reported for the second quarter of 1999. Loan origination and late charge fees rose $117,000, or 9%, and other income rose $998,000, or 164%, as a $1.2 million gain was recorded on the disposition of the Corporation's Maryland retail branches. These increases were offset in part by increased losses from the disposition of automobiles from the leasing portfolio. Those losses increased $886,000, or 79%. Operating expenses for the second quarter of 2000 increased $6.8 million, or 12%, to $65.0 million. Total personnel expenses for the quarter increased $4.6 million, or 14%, to $38.8 million. Contributing to this increase were higher compensation costs and expansion activity in California, New York, Florida and Pennsylvania. Salaries and wages increased 14%, reflecting higher compensation and bonus expense. Employment benefits expense rose 13% due to higher health insurance costs. Net occupancy expense rose $226,000, or 6%, due to higher costs associated with the leasing of offices in the Corporation's expansion markets as well as higher levels of depreciation on leasehold improvements. Servicing and consulting expenses for the second quarter were $1.8 million, an increase of $484,000, or 37%, over those for the second quarter of last year. For the first six months of 2000, those expenses were $3.6 million, $500,000, or 15%, above the corresponding expenses for the first six months of 1999. Other operating expense for the second quarter rose $975,000, or 10%, due to increased loan origination expenses and processing fees. Income tax expense for the second quarter of 2000 increased $279,000, or 2%, to $15.4 million. The Corporation's effective tax rate for the second quarter of 2000 was 33.55%, compared to 32.52% for the second three months of 1999. LIQUIDITY - --------- A financial institution's liquidity represents its ability to meet, in a timely manner, cash flow requirements that may arise. Liquidity of the asset side of the balance sheet is provided by the maturity and marketability of loans, money market assets and investments. Liquidity of the liability side of the balance sheet is usually provided through deposits. 21 22 The Corporation's quarter-end liquidity ratio, calculated in accordance with regulatory requirements of the FDIC, was 22.28%. Management believes that maturities of the Corporation's investment securities, other readily marketable assets and external sources of funds offer more than adequate liquidity to meet any cash flow requirements that may arise. Sources of funds have historically consisted of deposits, amortization and prepayments of outstanding loans, maturities of investment securities, borrowings and interest income. Management monitors the Corporation's existing and projected liquidity requirements on an ongoing basis, and implements appropriate strategies when deemed necessary. ASSET QUALITY AND LOAN LOSS PROVISION - ------------------------------------- The Corporation's provision for loan losses for the second quarter of 2000 was $5.0 million, $500,000, or 11%, higher than the amount provided for the second quarter of 1999. The reserve for loan losses at June 30, 2000 was $75.5 million, a decrease of $1.4 million, or 2%, from the $76.9 million reported at December 31, 1999. The reserve as a percentage of total period-end loans outstanding was 1.48%, down from the year-end level of 1.60%. Net chargeoffs for the second quarter of 2000 were $3.1 million, an increase of $448,000, or 17%, over those for the corresponding period of 1999. The following table presents the risk elements in the Corporation's loan portfolio:
Risk Elements (in thousands) June 30, 2000 December 31, 1999 June 30, 1999 - ---------------------------------------------------------------------------------------------------------- Nonaccruing $49,476 $29,184 $34,764 Past due 90 days or more 11,260 16,520 28,369 - -------------------------------------------------------------------------------------------------------- Total $60,736 $45,704 $63,133 ===================================================== Percent of total loans at period-end 1.19% .95% 1.38% Other real estate owned $ 802 $ 576 $ 922
Nonaccruing loans at June 30, 2000 were $49.5 million, an increase of $20.3 million, or 70%, over the $29.2 million reported at December 31, 1999. This includes $13.0 million of credits to a borrower about which the Corporation had serious doubt at March 31, 2000 that were placed in nonaccrual status in May of 2000. Other real estate owned, which is reported as a component of other assets in the Consolidated Statements of Condition, consists of assets that have been acquired through foreclosure. These assets are recorded on the books of the Corporation at the lower of their cost or the estimated fair value less cost to sell, adjusted periodically based upon current appraisals. Other real estate owned at June 30, 2000 was $802,000, an increase of $226,000, or 39%, from the December 31, 1999 level of $576,000. Nonperforming assets (other real estate owned plus nonaccrual loans) at June 30, 2000 totaled $50.3 million, or .99% of period-end loans outstanding. This was an increase of $20.5 million, or 69%, over the $29.8 million, or .62% of period-end loans outstanding, reported at December 31, 1999. As a result of the Corporation's ongoing monitoring of its loan portfolio, at June 30, 2000, approximately $39.3 million of its loans were identified that are either currently performing in accordance with their terms or are less than 90 days past due but for which, in management's opinion, serious doubt exists as to the borrowers' ability to continue to repay their loans in full on a timely basis. The reserve for loan losses at quarter-end was 1.53 times the level of nonaccrual loans. Management believes the reserve is adequate, based upon currently available information. The Corporation's determination of the adequacy of its reserve is based upon an evaluation of its classified loans and other assets, past loss experience, current economic and real estate market conditions and any regulatory recommendations. 22 23 CAPITAL RESOURCES - ----------------- A strong capital position provides a margin of safety for both depositors and stockholders, enables a financial institution to take advantage of profitable opportunities and provides for future growth. The Corporation's total risk-based capital ratio at the end of the second quarter of 2000 was 10.52%, and its core (Tier 1) leveraged capital ratio was 5.50%. The corresponding ratios at year-end 1999 were 10.67% and 5.65%, respectively. Both of these ratios are above the current regulatory minimums of 8.00% and 4.00%, respectively. Management monitors the Corporation's capital position and will make adjustments as needed to insure that the capital base will satisfy existing and impending regulatory requirements, as well as meet appropriate standards of safety and provide for future growth. OTHER INFORMATION - ----------------- Accounting Pronouncements Accounting for Derivative Instruments and Hedging Activities: Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended by SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133" and SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities," requires derivative instruments be carried at fair value on the balance sheet. These statements continue to allow the hedging of various risks with derivative instruments and set forth specific criteria to be used to determine when hedge accounting can be used. The statements provide for changes in fair value of cash flows of both the derivative and the hedged asset or liability to be recognized in earnings in the same period. For derivative instruments not accounted for as hedges, changes in fair value are also required to be recognized in earnings. The Corporation plans to adopt the provisions of these statements, as amended, for its quarterly and annual reporting beginning January 1, 2001, the statement's effective date. The impact of adoption of SFAS No. 133 on the Corporation's financial position, results of operations and cash flows is not presently determinable and will depend on the financial position and the nature and purpose of the derivative instruments in use at that time. Item 3. Quantitative and Qualitative Disclosures About Market Risk Net interest income is an important determinant of the Corporation's financial performance. Through interest rate sensitivity management, the Corporation seeks to maximize the growth of net interest income on a consistent basis by minimizing the effects of fluctuations associated with changing market interest rates. The Corporation employs simulation models to measure the effect of variations in interest rates on net interest income. The composition of assets, liabilities and off-balance-sheet instruments and their respective repricing and maturity characteristics are evaluated in assessing the Corporation's exposure to changes in interest rates. Net interest income is projected using multiple interest rate scenarios. The results are compared to net interest income projected using stable interest rates. The Corporation's model employs interest rate scenarios in which interest rates gradually move up or down 250 basis points. The simulation model projects, as of June 30, 2000, that a gradual 250-basis-point increase in market interest rates would reduce net interest income by 4.5% over a one-year period. This figure compares to a projected decrease at 23 24 December 31, 1999 of 5.5%. If interest rates were to gradually decrease 250 basis points, the simulation model projects, as of June 30, 2000, that net interest income would increase 1.8% over a one-year period. This figure compares to a projected decrease at December 31, 1999 of 2.9%. The Corporation's policy limits the permitted reduction in projected net interest income to 10% over a one-year period, given a change in interest rates. The preceding paragraph contains certain forward-looking statements regarding the anticipated effects on the Corporation's net interest income resulting from hypothetical changes in market interest rates. The assumptions that the Corporation uses regarding the effects of changes in interest rates on the adjustment of retail deposit rates and the balances of residential mortgages, asset-backed securities and collateralized mortgage obligations (CMOs) play a significant role in the results the simulation model projects. The adjustment paths are not assumed to be symmetrical. The Corporation's model employs assumptions that reflect the historical adjustment paths of the Corporation's retail deposit rates to changes in the level of market interest rates. In addition, some of the Corporation's retail-deposit rates reach historic lows within the 250-basis-point decline scenario. The Corporation's model freezes the rates for these deposit products when they equal their historic lows. These model assumptions (asymmetrical adjustments and rate floors based on new historic lows) limit the extent to which deposit rates are expected to adjust in a declining rate scenario and contribute to the projected simulation results. Changes in residential mortgage loan, CMO and asset-backed security balances are driven by their contractual obligations and prepayments. While contractual obligations are not typically influenced by changes in interest rates, prepayment activity (including refinancing) can shift dramatically with changes in interest rates. The Corporation's prepayment assumptions are based on industry estimates for loans with similar coupons and remaining maturities. A 250-basis-point decline in interest rates can lead to a significant increase in prepayments when available reinvestment opportunities of similar risk carry lower returns. Conversely, should interest rates rise 250 basis points, the same balances are not likely to prepay at the same rate, but instead are likely to lengthen in effective maturity as debtors elect not to prepay and to retain these now below-market credit terms for as long as possible. Holders of mortgages, asset-backed securities and CMOs are left with returns below those prevailing in the current environment. This prepayment-driven effect also contributes to the projected simulation results. During the second quarter of 2000, the Corporation sold certain fixed-rate residential mortgage loans into the secondary market. The primary goal of this program is to reduce the risk that the average duration of these fixed-rate residential mortgage loans would extend well beyond the duration that was anticipated at origination, as frequently occurs during periods of rising interest rates. Mortgage loans sold during the second quarter of 2000 totaled $24.2 million. Management reviews the Corporation's rate sensitivity regularly, and may employ a variety of strategies as needed to adjust that sensitivity. These include changing the relative proportions of fixed-rate and floating-rate assets and liabilities, as well as utilizing off-balance-sheet measures such as interest rate swaps and interest rate floors. At June 30, 2000, the Corporation was not committed to any interest rate swaps. At June 30, 2000, the Corporation was committed to interest rate floors with a total notional amount of $125 million, down from $225 million at year-end 1999. The floors have remaining maturities of between .5 and 24 months, with a weighted average maturity of 14 months. The net interest differential, the amortization of the initial fees associated with the purchase of the floors and any gains recorded on sale are reported under the caption "Interest and fees on loans" and are recognized over the lives of the respective instruments. See "Net Interest Income." 24 25 Part II. Other Information Item 1 - Legal Proceedings Not Applicable Item 2 - Change In Securities and Use of Proceeds Not Applicable Item 3 - Defaults Upon Senior Securities Not Applicable Item 4 - Submission of Matters to a Vote of Security Holders At the Corporation's Annual Shareholders' Meeting held on May 11, 2000 (the "Annual Meeting"), the nominees for directors of the Corporation proposed were elected. The votes cast for those nominees were as follows:
For Withheld --- -------- Ted T. Cecala 26,021,579 346,316 Richard R. Collins 25,567,647 800,248 Hugh E. Miller 26,098,707 269,188 David P. Roselle 26,099,389 268,506 Thomas P. Sweeney 26,081,542 286,353
In addition, at the Annual Meeting, the Corporation's shareholders approved the Corporation's 2000 Employee Stock Purchase Plan. That plan, designed to encourage wider ownership of the Corporation's common stock by its employees, is for a term of four years and authorizes the issuance of up to 400,000 shares of the Corporation's common stock. The vote in favor of that plan was as follows:
For Against Abstain --- ------- ------- 25,727,266 463,918 176,711
Item 5 - Other Information Not Applicable Item 6 - Exhibits and Reports on Form 8-K The exhibits listed below are being filed as part of this report. These exhibits will be made available to any shareholder upon receipt of a written request therefor, together with payment of $.20 per page for duplicating costs.
Exhibit Number Exhibit - -------------- ------- 11 Statement re computation of per share earnings 27 Financial data schedule
25 26 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 11, 2000 /s/ Gerald F. Sopp ---------------------------------------------- Name: Gerald F. Sopp Title: Vice President and Controller (Authorized Officer and Principal Accounting Officer) 26 EX-11 2 ex11.txt STATEMENT RE COMPUTATION OF PER SHARE EARNINGS 1 Exhibit 11 Statement Re Computation of Per Share Earnings The calculation of the Corporation's earnings per share for the second quarter of 2000 is reflected in footnote 3 to its Consolidated Financial Statements on page 10 above. -27- EX-27 3 ex27.txt FDS
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CORPORATION'S FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000872821 WILMINGTON TRUST CORPORATION 1,000 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 247,640 0 84,813 0 1,537,380 24,872 24,724 5,099,265 75,483 7,364,304 5,448,925 1,151,223 71,055 168,000 0 0 39,264 485,837 7,364,304 206,516 50,969 1,115 258,600 92,462 130,285 128,315 10,500 1,660 129,590 91,649 61,044 0 0 61,044 1.89 1.88 3.93 49,476 11,260 145 39,380 76,925 14,107 2,165 75,483 69,021 0 6,462
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