EX-99 4 w85576exv99.txt PRESS RELEASE Exhibit 99 FOR IMMEDIATE RELEASE Contact: Ellen J. Roberts Investor Relations (302) 651-8069 eroberts@wilmingtontrust.com WILMINGTON TRUST RAISES DIVIDEND, REPORTS EARNINGS Wilmington, Del., April 17, 2003 - Wilmington Trust Corporation (NYSE: WL) today reported first quarter 2003 earnings, on a diluted basis, of $0.44 per share. Net income was $29.4 million. Strong sales in all of the company's core businesses were eclipsed by a drop in the net interest margin and the effects of continued equity market declines on advisory revenue. "Our loan balances increased, and revenue from our wealth advisory and corporate client businesses rose. Credit quality remained stable, and we kept expenses in check," said Ted T. Cecala, Wilmington Trust chairman and chief executive officer. "The current interest rate environment challenged our ability to maintain our net interest margin, which fell significantly after two consecutive years of margin stability." Cecala said that positive sales trends and continued confidence in the company's business strategy led the Board of Directors to raise the quarterly cash dividend by $0.015, or 5.9%, from $0.255 to $0.27. This will raise the annual dividend to $1.08. The quarterly dividend is payable on May 15, 2003, to stockholders of record on May 1, 2003. This marks the 22nd consecutive year that Wilmington Trust has raised its dividend. According to Mergent, Inc.'s Dividend Achievers, only 159 of the more than 8,700 companies that are publicly traded on the NYSE, NASDAQ, or AMEX have raised their dividends for 20 or more consecutive years. On an annualized basis, the first quarter 2003 return on average assets was 1.46% and 1 return on average stockholders' equity was 15.96%, compared with 1.76% and 18.73%, respectively, for the 2002 first quarter. LOAN BALANCES CONTINUE TO GROW Business development and the relative health of the diversified economy throughout the Delaware Valley region, where the company's banking business is concentrated, contributed to steady growth in the banking business. Loan balances, on average, were $6.0 billion, which was slightly ahead of fourth quarter 2002 balances on average and more than 9% ahead of the 2002 first quarter amount. This increase was achieved in the wake of higher-than-expected levels of refinancings and pay downs as commercial and retail clients took advantage of record-low interest rates. The growth in loan balances was split evenly between the Delaware and southeastern Pennsylvania markets. Growth was especially strong in total commercial loans. Balances, on average, rose 16% from the 2002 first quarter and 3% from the 2002 fourth quarter. Real estate construction lending was particularly strong - 29% ahead of the 2002 first quarter and 16% ahead of the 2002 fourth quarter - as low interest rates stimulated investment in real estate projects. In the retail portfolio, consumer loan balances rose from their year-ago and prior-quarter periods, as collateral lending, primarily to wealth advisory clients, increased. Residential mortgage balances continued to decline, as the interest rate environment prompted a high volume of refinancings and prepayments. Residential mortgage balances do not reflect mortgage originations, as nearly all new mortgage production is sold into the secondary market. Core deposit balances continued to grow in line with trends experienced over the past 12 months, which suggest that clients are placing funds in bank accounts rather than risk the current volatility in equity investing. 2 The use of wholesale funding, which is reported as national certificates of deposit $100,000 and over, rose 29% from the year-ago period and 4% from the 2002 fourth quarter. Favorable interest rates led the company to take advantage of this source of funding to leverage the investment portfolio and support loan growth. Wilmington Trust defines the Delaware Valley region as encompassing the I-95 corridor from Princeton to Baltimore, the state of Delaware, and Maryland's Eastern Shore. Within this region, the company's commercial banking business is targeted to clients with privately held businesses that generate $5 million to $250 million in annual sales, and where the opportunity exists for a combined credit and financial advisory relationship. The Delaware Valley region benefits from an economic base that is diversified across the financial services, life sciences, pharmaceutical, chemical, technology, manufacturing, tourism, and agriculture industries. According to U.S. Department of Labor statistics, Delaware's unemployment rate of 3.7% is 2 percentage points lower than the nationwide rate, which was 5.8% at the end of February. NET INTEREST MARGIN DECLINES Although first quarter 2003 net interest income was 5% higher than for the year-ago period, the net interest margin fell to 3.75%. This was 22 basis points lower than for the 2002 first quarter and 11 basis points lower than for the 2002 fourth quarter. A combination of factors led to the decline, including an interest rate environment that was more challenging than expected, the company's asset-sensitive positioning, and a flattening yield curve. - First quarter 2003 was the first quarter to reflect fully the rate reduction made by the Federal Reserve in November 2002, which brought the prime rate to 4.25%, its lowest since 1959. 3 - Loan yields fell, as clients paid off loans or refinanced them at lower rates. Loan yields declined 77 basis points from the 2002 first quarter and 26 basis points from the 2002 fourth quarter. - Approximately $1 billion of the total commercial portfolio is tied to LIBOR rates. The 3-month LIBOR declined 10 basis points during the quarter, from 1.38% at December 31, 2002, to 1.28% at March 31, 2003. - Deposit pricing on many products continued to reach new lows. Interest-bearing deposit expense was 51 basis points lower than the 2002 first quarter and 18 basis points lower than the 2002 fourth quarter. - Yields from investment securities declined 68 basis points from the 2002 first quarter and 25 basis points from the 2002 fourth quarter. Prepayments and calls exceeded $150 million, as issuers redeemed instruments prior to their scheduled maturities. Approximately $108 million was added to the portfolio during the quarter, but these investments were made at yields lower than those of the prepayments and calls. Roughly 8 basis points of the margin decline can be accounted for as follows: - Approximately $108 million, on average, in new commercial mortgage loans was added during the quarter, with lower spreads. This accounted for 2 basis points of the decline. - Approximately $80 million of total commercial loan balances refinanced during the quarter, accounting for 2 basis points of the decline. - Turnover in the investment portfolio, plus the additional leveraging that occurred during the quarter, accounted for 4 basis points of the decline. Additional loan and investment repricing could compress the net interest margin by 10 additional basis points during the second quarter of 2003. Any action by the Federal Reserve to lower key interest rates might further compress the margin. CREDIT QUALITY HOLDS STEADY 4 Credit quality in the loan portfolio remained stable, due to the company's strict underwriting standards and practice of relationship-based lending. At 7 basis points, the net charge-off ratio was l basis point lower than for the 2002 first quarter and 5 basis points lower than for the 2002 fourth quarter. The period-end reserve ratio was 1.43%, which was 5 basis points lower than for the 2002 first quarter and 2 basis points higher than for the 2002 fourth quarter. The ratio of period-end loans past due 90 days was 0.14%, which was 1 basis point higher than for the 2002 first quarter, but 7 basis points lower than for the 2002 fourth quarter. The rise in nonaccruing loans was due almost entirely to a single relationship with a client in the specialty restaurant and entertainment business. The majority of the year-on-year increase in other real estate owned (OREO) represented a Maryland beach resort residential construction project, on which the company does not anticipate a loss. These two items accounted for the increase in the ratio of period-end nonperforming assets to loans. The composition of the loan portfolio, which is well diversified across commercial and consumer lines, remained relatively unchanged. The company's internal risk rating analysis also was relatively unchanged. Tables that show changes in these indicators may be found with the financial information that accompanies this release. MARKET DECLINES CONTINUE TO MITIGATE ADVISORY BUSINESS GROWTH Noninterest income, excluding amortization and securities gains or losses, accounted for 47.4% of the total revenue for the first quarter of 2003. Nearly 80% of total noninterest income was generated by the advisory businesses. The wealth advisory business continued to post strong growth, and the corporate client business continued its trend of double-digit growth. Volatility and declines in the financial markets continued to limit the contribution from the affiliate asset managers, Cramer Rosenthal McGlynn and 5 Roxbury Capital Management. On a combined basis, assets under management, including those of the affiliates, were $28.9 billion. On a GAAP basis, total noninterest income accounted for 47.2% of total first quarter revenue. The company generally excludes securities gains or losses and amortization from its calculation of this percent, in order to better reflect ongoing revenue. Poor performance in the equity markets continued to overshadow the full extent of the momentum in the wealth advisory business. Wealth advisory revenue was higher than for both the year-ago and prior-quarter periods. The 7% increase from the 2002 first quarter was achieved against equity markets that fell 20% or more for the corresponding period. Wealth advisory revenue rose 3% over the 2002 fourth quarter, while equity market indices declined by a similar amount. The strength of the services offered by Balentine & Company, which is Wilmington Trust's investment counseling firm, accounted for most of the growth in wealth advisory revenue. Approximately 70% of wealth advisory fees are tied to the market value of assets. Fees generally are calculated monthly, using market values on the last day of the previous month. A comparison of wealth advisory revenue to major equity market indices is included in the financial information that accompanies this release. Corporate client revenue rose 10% over the 2002 first quarter and reached $14.9 million, which was this business's highest-ever first quarter revenue. The largest contributor to the growth was the entity management component, which includes the contribution from SPV Management Limited, the European services company that was acquired in April 2002. The company's lack of lending or securities underwriting conflict of interests continued to attract new business. In the bankruptcy proceedings of the Maxxim Medical Group, 6 Inc., the company was appointed to represent lenders as a member of the unsecured creditors committee. Corporate client fees are priced according to the complexity of the services provided. Most of these services are performed on a multi-year contract basis, which generates an annuity-like stream of income that accounts for the majority of corporate client revenue. Approximately 25% of corporate client revenue is tied to asset valuations, most of which are associated with the retirement plan assets for which the company serves as trustee. Revenue from the two affiliate asset managers fell sharply, as the combination of equity market declines and the lost business stemming from investor caution took their toll. Revenue from Cramer Rosenthal McGlynn, a value-style manager, was more than 80% lower than for the 2002 first quarter and nearly 44% lower than for the 2002 fourth quarter. Roxbury Capital Management, a growth-style manager, recorded a loss of $0.9 million for the quarter. This compares with the $1.44 million loss Roxbury recorded for the 2002 fourth quarter. The revenue generated by Cramer Rosenthal McGlynn was not strong enough to offset the loss at Roxbury, which resulted in a loss, on a combined basis, in the affiliate manager line for the first quarter of 2003. In contrast, the two affiliates contributed $7.9 million of revenue for the first quarter of 2002. The shortfall in affiliate manager revenue accounted for approximately $0.08 in earnings per share. In other noninterest income, the increase resulted from more favorable dispositions of leased autos and the sale of residential mortgages. EXPENSES ON PLAN 7 Expenses were on plan for the first quarter and, for the most part, were lower than for the 2002 fourth quarter. Increases from the prior year resulted from: - SPV Management expenses of $1 million. SPV Management expenses weren't consolidated until the 2002 second quarter. - Sales incentive payments. - Higher pension and benefits expenses. - Fees paid by Balentine to third-party investment managers. As a result of the uncertain economic outlook for the remainder of 2003, the company is taking a number of steps to reduce expenses. Discretionary spending will be restrained, certain capital expenditures will be postponed, and growth in the size of the workforce will be limited. The company expects that expenses will total $305 million for the year. SHARE BUYBACK MINIMAL The company bought back 16,008 shares of its stock during the quarter. This brought the total purchased under the current 8-million-share program, which commenced in April 2002, to 64,742 shares. CONFERENCE CALL TODAY Management will discuss results in a conference call today at 2:00 p.m. (EDT). To access the call, dial 888-858-4723. This release, supporting financial information, and a simultaneous Web streaming of the conference call audio will be available online at wilmingtontrust.com. A rebroadcast of the conference call will be available from 3:30 p.m. (EDT) Thursday, April 17, until 4:00 p.m. (EDT) Thursday, April 24, by calling 877-519-4471 and using PIN number 3842166. FORWARD LOOKING STATEMENTS 8 This release contains forward-looking statements which reflect the company's current expectations about its future performance. These statements rely on a number of assumptions and estimates and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future financial results are discussed more fully in the periodic reports the company files with the Securities and Exchange Commission. The company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release. ABOUT WILMINGTON TRUST Wilmington Trust Corporation (NYSE: WL) is a financial services holding company that provides wealth management and specialized corporate services to clients throughout the U.S. and in more than 50 other countries, and commercial banking services throughout the Delaware Valley region. Its wholly owned bank subsidiary, Wilmington Trust Company, which celebrates its 100th anniversary in 2003, is the 15th largest personal trust provider in the United States. Wilmington Trust and its affiliates have offices in California, Delaware, Florida, Georgia, Maryland, Nevada, New Jersey, New York, Pennsylvania, Tennessee, the Cayman Islands, the Channel Islands, and London, and other affiliates in Dublin and Milan. For more information, visit www.wilmingtontrust.com. # # # 9 WILMINGTON TRUST CORPORATION ANALYST SUMMARY As of and for the three months ended March 31, 2003 SUMMARY
THREE MONTHS ENDED ------------------------------------------------------------- % CHANGE FROM: ------------------- (DOLLARS IN THOUSANDS) MAR. 31, DEC. 31, MAR. 31, PRIOR PRIOR 2003 2002 2002 QUARTER YEAR -------- -------- -------- --------- ------- EARNINGS Net income $ 29,377 $ 32,298 $ 32,096 (9.0) (8.5) Net income per share -- diluted 0.44 0.49 0.48 (10.2) (8.3) SELECTED RATIOS AND STATISTICS Net income as a percentage of: Average assets 1.46% 1.60% 1.76% Average stockholders' equity 15.96 17.30 18.73 Net interest margin (tax-equivalent basis) 3.75 3.86 3.97 Average stockholders' equity to assets 9.15 9.27 9.42 Total risk-based capital ratio 10.20 10.19 11.18 Tier 1 risk-based capital ratio 7.11 7.07 7.83 Tier 1 leverage capital ratio 6.15 6.11 6.50 Staffing (FTE) 2,342 2,361 2,330 CAPITAL Average stockholders' equity $746,504 $740,789 $695,071 0.8 7.4 Period-end primary capital 840,816 826,426 782,299 1.7 7.5 Per share: Book value 11.49 11.30 10.67 1.7 7.7 Dividends declared 0.255 0.255 0.24 -- 6.3 STOCK DATA Average shares outstanding -- basic (000) 65,692 65,584 65,619 Average shares outstanding -- diluted (000) 66,174 66,148 66,510 Period-end shares outstanding (000) 65,705 65,628 65,634 Shares purchased -- buyback 16,008 36,538 234,148 Price: High $ 33.61 $ 33.09 $ 34.63 Low 26.00 25.20 30.85 Close 27.80 31.68 33.66 LOAN QUALITY Period-end reserve for loan losses $ 86,010 $ 85,157 $ 81,803 Period-end non-performing assets: Nonaccrual 64,642 42,352 33,932 OREO 3,934 3,118 504 Period-end past due 90 days 8,304 12,497 6,981 Period-end renegotiated loans -- -- 369 Gross charge-offs 5,274 7,966 5,140 Recoveries 1,192 823 864 Net charge-offs 4,082 7,143 4,276 Ratios: Period-end reserve to loans 1.43% 1.41% 1.48% Period-end non-performing assets to loans 1.14 0.75 0.62 Period-end loans past due 90 days to total loans 0.14 0.21 0.13 Net charge-offs to average loans 0.07 0.12 0.08
WILMINGTON TRUST CORPORATION ANALYST SUMMARY As of and for the three months ended March 31, 2003 INCOME STATEMENT
THREE MONTHS ENDED ------------------------------------------------------------- % CHANGE FROM: ------------------- (DOLLARS IN THOUSANDS) MAR. 31, DEC. 31, MAR. 31, PRIOR PRIOR 2003 2002 2002 QUARTER YEAR -------- -------- -------- --------- ------- Interest income $ 92,788 $ 96,937 $ 96,268 (4.3) (3.6) Interest expense 24,493 26,999 31,090 (9.3) (21.2) -------- -------- -------- Net interest income 68,295 69,938 65,178 (2.3) 4.8 Provision for loan losses (4,935) (5,556) (5,295) (11.2) (6.8) -------- -------- -------- Net interest income after provision for loan losses 63,360 64,382 59,883 (1.6) 5.8 -------- -------- -------- Noninterest income: Total advisory fees: Wealth advisory services 33,635 32,735 31,308 2.7 7.4 Corporate client services 14,927 18,224 13,559 (18.1) 10.1 Affiliate managers (223) (226) 7,870 (1.3) -- -------- -------- -------- Total advisory fees 48,339 50,733 52,737 (4.7) (8.3) Amortization of other intangibles (328) (368) (82) (10.9) 300.0 -------- -------- -------- Net total advisory fees after amortization of other intangibles 48,011 50,365 52,655 (4.7) (8.8) -------- -------- -------- Service charges on deposit accounts 7,293 7,760 6,885 (6.0) 5.9 Other noninterest income 5,860 7,590 5,131 (22.8) 14.2 Securities gains/(losses) (1) 2,005 -- -- -- -------- -------- -------- Total noninterest income 61,163 67,720 64,671 (9.7) (5.4) -------- -------- -------- Net interest and noninterest income 124,523 132,102 124,554 (5.7) -- -------- -------- -------- Noninterest expense: Salaries and employment benefits 48,870 45,399 46,974 7.6 4.0 Net occupancy 5,395 5,594 4,639 (3.6) 16.3 Furniture and equipment 6,014 6,054 6,588 (0.7) (8.7) Stationery and supplies 1,277 1,525 1,404 (16.3) (9.0) Other noninterest expense 18,077 23,090 15,675 (21.7) 15.3 -------- -------- -------- Total noninterest expense 79,633 81,662 75,280 (2.5) 5.8 -------- -------- -------- Income before income taxes and minority interest 44,890 50,440 49,274 (11.0) (8.9) Applicable income taxes 15,287 17,901 17,119 (14.6) (10.7) -------- -------- -------- Net income before minority interest 29,603 32,539 32,155 (9.0) (7.9) Minority interest 226 241 59 (6.2) 283.1 -------- -------- -------- Net income $ 29,377 $ 32,298 $ 32,096 (9.0) (8.5) ======== ======== ========
WILMINGTON TRUST CORPORATION ANALYST SUMMARY As of and for the three months ended March 31, 2003 AVERAGE STATEMENT OF CONDITION
AVERAGE BALANCE (DOLLARS IN THOUSANDS) 2003 FIRST QUARTER 2002 FOURTH QUARTER 2002 FIRST QUARTER % CHANGE FROM ------------------------------- ------------------- ------------------- --------------- PERIOD-END AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE PRIOR PRIOR YIELDS/RATES (TAX-EQUIVALENT BASIS) BALANCE BALANCE RATE BALANCE RATE BALANCE RATE QUARTER YEAR ----------------------------------------- ---------- ---------- ------- ---------- ------- ---------- ------- ------- ------ Assets: Federal funds sold and securities purchased under agreements to resell $ 3,832 $ 24,061 1.40% $ 63,497 1.65% $ 15,091 2.97% (62.1) 59.4 ---------- ---------- ---------- ---------- U.S. Treasury and government agencies 451,648 460,914 3.73 588,377 4.14 573,879 4.51 (21.7) (19.7) State and municipal 16,556 16,546 8.97 16,829 9.04 17,515 8.95 (1.7) (5.5) Preferred stock 119,178 114,021 7.68 99,366 7.99 80,394 8.35 14.7 41.8 Mortgage-backed securities 707,199 642,614 4.97 434,521 5.38 430,532 6.01 47.9 49.3 Other securities 250,168 227,475 3.17 213,868 3.58 143,263 3.52 6.4 58.8 ---------- ---------- ---- ---------- ---- ---------- ---- Total investment securities 1,544,749 1,461,570 4.55 1,352,961 4.80 1,245,583 5.23 8.0 17.3 ---------- ---------- ---------- ---------- Commercial, financial and agricultural 2,153,680 2,214,827 4.53 2,208,431 4.83 1,811,611 5.07 0.3 22.3 Real estate -- construction 604,042 544,643 4.45 469,272 4.62 421,034 5.06 16.1 29.4 Mortgage-commercial 1,054,861 1,007,982 5.63 980,314 5.88 1,020,595 6.52 2.8 (1.2) ---------- ---------- ---- ---------- ---- ---------- ---- Total commercial loans 3,812,583 3,767,452 4.81 3,658,017 5.08 3,253,240 5.52 3.0 15.8 ---------- ---------- ---------- ---------- Mortgage-residential 627,129 648,964 6.82 708,910 6.83 841,819 7.08 (8.5) (22.9) Consumer 1,568,462 1,561,231 5.49 1,531,057 5.77 1,369,422 6.38 2.0 14.0 ---------- ---------- ---- ---------- ---- ---------- ---- Total retail loans 2,195,591 2,210,195 5.88 2,239,967 6.11 2,211,241 6.65 (1.3) -- ---------- ---------- ---------- ---------- Total loans 6,008,174 5,977,647 5.21 5,897,984 5.47 5,464,481 5.98 1.4 9.4 ---------- ---------- ---------- ---------- Total Earning Assets 7,556,755 7,463,278 5.07 7,314,442 5.32 6,725,155 5.83 2.0 11.0 Reserve for loan losses (86,010) (84,581) (84,928) (79,953) (0.4) 5.8 Goodwill 240,072 240,207 240,519 221,172 (0.1) 8.6 Other intangibles 21,394 21,585 16,569 9,668 30.3 123.3 Other assets 535,783 518,759 504,722 499,720 2.8 3.8 ---------- ---------- ---------- ---------- Total assets $8,267,994 $8,159,248 $7,991,324 $7,375,762 2.1 10.6 ========== ========== ========== ========== Liabilities: Savings * $ 366,495 $ 357,289 0.23 $ 346,549 0.24 $ 348,671 0.25 3.1 2.5 Interest-bearing demand * 2,129,982 2,062,931 0.47 1,812,626 0.51 1,539,153 0.66 13.8 34.0 Certificates under $100,000 * 867,455 874,629 3.05 891,579 3.29 896,695 3.77 (1.9) (2.5) Local CDs $100,000 and over * 136,859 151,083 1.99 168,652 2.38 150,180 2.79 (10.4) 0.6 National CDs $100,000 and over 2,157,188 2,066,282 1.69 1,987,401 1.92 1,601,065 2.61 4.0 29.1 ---------- ---------- ---- ---------- ---- ---------- ---- Total interest-bearing deposits 5,657,979 5,512,214 1.36 5,206,807 1.57 4,535,764 2.00 5.9 21.5 ---------- ---------- ---------- ---------- Federal funds purchased and securities sold under agreements to repurchase 627,940 778,733 1.64 753,022 1.86 918,163 2.48 3.4 (15.2) U.S. Treasury demand 10,663 8,069 0.99 16,328 1.22 56,946 1.46 (50.6) (85.8) ---------- ---------- ---- ---------- ---- ---------- ---- Total short-term borrowings 638,603 786,802 1.64 769,350 1.85 975,109 2.42 2.3 (19.3) ---------- ---------- ---------- ---------- Long-term debt 160,500 160,500 6.58 160,500 6.61 160,500 6.58 -- -- ---------- ---------- ---- ---------- ---- ---------- ---- Total interest-bearing liabilities 6,457,082 6,459,516 1.52 6,136,657 1.73 5,671,373 2.20 5.3 13.9 Demand deposits * 919,080 800,656 970,335 871,436 (17.5) (8.1) Other noninterest funds 180,593 203,106 207,450 182,346 (2.1) 11.4 ---------- ---------- ---------- ---------- Total funds used to support earning assets 7,556,755 7,463,278 1.32 7,314,442 1.46 6,725,155 1.86 2.0 11.0 Stockholders' equity 754,806 746,504 740,789 695,071 0.8 7.4 Equity used to support earning assets (180,593) (203,106) (207,450) (182,346) (2.1) 11.4 Other liabilities 137,005 152,489 143,451 137,862 6.3 10.6 Minority interest 21 83 92 20 (9.8) 315.0 ---------- ---------- ---------- ---------- Total liabilities and stockholders' equity $8,267,994 $8,159,248 $7,991,324 $7,375,762 2.1 10.6 ========== ========== ========== ========== Total deposits $6,577,059 $6,312,870 $6,177,142 $5,407,200 2.2 16.7 * Core deposits 4,419,871 4,246,588 4,189,741 3,806,135 1.4 11.6 Tax-equivalent net interest income 69,556 71,207 66,489 Net interest margin (tax-equivalent basis) 3.75 3.86 3.97
---------- * Average rates are calculated using average balances based on historical cost and do not reflect market valuation adjustments. WILMINGTON TRUST CORPORATION ANALYST SUMMARY As of and for the three months ended March 31, 2003
% CHANGE FROM: -------------------- PRIOR QUARTERLY REVENUE GROWTH PRIOR YEAR VS. MARKET DECLINES QUARTER QUARTER ------------------------------------------ ------- ------- Wealth advisory services 2.7% 7.4% DJIA (1Q avg.) (2.4) (19.2) S&P 500 (1Q avg.) (2.3) (23.9) Nasdaq (1Q avg.) 0.3 (28.9)
MAR. 31, DEC. 31, WILMINGTON TRUST MANAGED ASSETS 2003 2002 ----------------------------------------- -------- -------- Equities 54% 56% Fixed income 26 26 Cash and equivalent instruments 12 10 Mutual funds 5 5 Misc. assets 3 3
% CHANGE FROM: ---------------- PRIOR MAR. 31, DEC. 31, MAR. 31, PRIOR YEAR ASSETS UNDER MANAGEMENT (BILLIONS) 2003 2002 2002 QUARTER QUARTER ---------------------------------- -------- -------- -------- ------- ------- Wilmington Trust $ 22.559 $ 21.724 $ 24.227 3.8% (6.9)% Roxbury Capital Management 3.163 3.850 7.700 (17.8) (58.9) Cramer Rosenthal McGlynn 3.168 3.696 4.640 (14.3) (31.7) -------- -------- -------- Combined assets under management $ 28.890 $ 29.270 $ 36.567 (1.3) (21.0) ======== ======== ========
CREDIT QUALITY
MAR. 31, DEC. 31, MAR. 31, LOAN PORTFOLIO COMPOSITION 2003 2002 2002 -------------------------------------- -------- -------- -------- Commercial, financial and agricultural 36% 39% 34% Real estate -- construction 10 8 8 Mortgage-commercial 18 16 18 Mortgage-residential 10 11 15 Consumer 26 26 25
MAR. 31, DEC. 31, SEPT. 30, JUNE 30, INTERNAL RISK RATING 2003 2002 2002 2002 --------------------------- -------- -------- --------- -------- Pass 95.52% 95.65% 95.62% 95.23% Watchlisted 2.48 2.57 2.29 2.41 Substandard 1.79 1.53 1.83 2.26 Doubtful 0.21 0.25 0.26 0.10
WILMINGTON TRUST CORPORATION ANALYST SUMMARY As of and for the three months ended March 31, 2003 TOTAL ADVISORY FEES REVISED FOR REORGANIZATION
FOR THE QUARTER ENDED -------------------------------------------------------------------------------------------------- MAR. 31, DEC. 31, SEPT. 30, JUNE 30, MAR. 31, DEC. 31, SEPT. 30, JUNE 30, MAR. 31, 2003 2002 2002 2002 2002 2001 2001 2001 2001 -------- -------- --------- -------- -------- -------- --------- -------- -------- Total advisory fees: Wealth advisory services $ 33,635 $ 32,735 $ 31,190 $ 31,713 $ 31,308 $ 28,996 $ 26,457 $ 26,947 $ 27,351 Corporate client services 14,927 18,224 17,168 15,275 13,559 15,910 13,930 13,528 11,363 Affiliate managers (223) (226) 4,214 4,412 7,870 4,086 5,549 4,743 6,176 -------- -------- --------- -------- -------- -------- --------- -------- -------- Total advisory fees 48,339 50,733 52,572 51,400 52,737 48,992 45,936 45,218 44,890 Amortization of other intangibles and goodwill (328) (368) (644) (159) (82) (2,000) (2,132) (2,062) (2,001) -------- -------- --------- -------- -------- -------- --------- -------- -------- Net total advisory fees after amortization of goodwill $ 48,011 $ 50,365 $ 51,928 $ 51,241 $ 52,655 $ 46,992 $ 43,804 $ 43,156 $ 42,889 ======== ======== ========= ======== ======== ======== ========= ======== ========
TOTAL ADVISORY FEES PREVIOUSLY REPORTED
FOR THE QUARTER ENDED -------------------------------------------------------------------------------------------------- MAR. 31, DEC. 31, SEPT. 30, JUNE 30, MAR. 31, DEC. 31, SEPT. 30, JUNE 30, MAR. 31, 2003 2002 2002 2002 2002 2001 2001 2001 2001 -------- -------- --------- -------- -------- -------- --------- -------- -------- Total advisory fees: Wealth advisory services $ 33,343 $ 32,192 $ 30,429 $ 30,976 $ 30,408 $ 27,936 $ 25,584 $ 26,111 $ 26,443 Corporate client services 15,219 18,767 17,929 16,012 14,459 16,970 14,802 14,364 12,271 Affiliate managers (223) (226) 4,214 4,412 7,870 4,086 5,550 4,743 6,176 -------- -------- --------- -------- -------- -------- --------- -------- -------- Total advisory fees 48,339 50,733 52,572 51,400 52,737 48,992 45,936 45,218 44,890 Amortization of other intangibles and goodwill (328) (368) (644) (159) (82) (2,000) (2,132) (2,062) (2,001) -------- -------- --------- -------- -------- -------- --------- -------- -------- Net total advisory fees after amortization of goodwill $ 48,011 $ 50,365 $ 51,928 $ 51,241 $ 52,655 $ 46,992 $ 43,804 $ 43,156 $ 42,889 ======== ======== ========= ======== ======== ======== ========= ======== ========
Advisory fees revised As a result of an internal management reorganization that took effect at the beginning of 2003, some revenue that previously was reported as corporate client revenue is now recorded as wealth advisory revenue. Revised amounts are restated above. Certain commercial loan balances reclassified Commercial loan balances for the 2003 first quarter reflect changes that were made after an analysis of ledger coding revealed inconsistencies in the categories in which loans were recorded. This resulted in a reclassification of approximately $192 million, or 5%, of the commercial portfolio. The $192 million was moved out of the general commercial and industrial category. Approximately $90 million of that amount was reclassified as commercial real estate loans, and the remaining $102 million was moved into the commercial mortgage category.