EX-99 2 w46624exv99.htm EARNINGS RELEASE exv99
 

     
[WILMINGTON TRUST LOGO] WILMINGTON TRUST

News Release
  Wilmington Trust Corporation
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
FOR IMMEDIATE RELEASE
WILMINGTON TRUST ANNOUNCES 2007 FOURTH QUARTER
AND FULL YEAR RESULTS
Corporate Client and Wealth Advisory businesses record double-digit growth
Wilmington, Del., January 18, 2008 — Wilmington Trust Corporation (NYSE: WL) reported today that net income for the 2007 fourth quarter was $44.0 million and earnings per share (on a diluted basis) were $0.65 per share. In comparison, for the 2006 fourth quarter, net income was $47.5 million and earnings per share (diluted) were $0.68.
These results brought net income for the 2007 full year to $182.0 million and earnings per share (diluted) to $2.64 per share. In 2006, net income for the full year was $143.8 million and earnings per share (diluted) were $2.06 per share. The 2006 amounts reflected a non-cash impairment write-down of $72.3 million recorded in the 2006 third quarter against the valuation of affiliate money manager Roxbury Capital Management. Absent this non-cash write-down, full-year net income 2006 would have been $185.5 million and earnings per share (diluted) would have been $2.66 per share.
This release contains and discusses amounts that exclude the effects of the non-cash write-down and presents results on an operating basis. Management believes that operating results (those that exclude the effects of the non-cash write-down) provide a more relevant and comparative basis on which to evaluate the company’s performance. The financial statements in this release contain comparisons of results with and without the non-cash impairment write-down.
Significant factors in fourth quarter 2007 results
•   The Corporate Client Services (CCS) business prevailed against the near-absence of capital markets activity and produced revenue that was 12% ahead of the year-ago fourth quarter, and 11% ahead of the 2007 third quarter. For the full year, CCS revenue rose 15%.
•   The strength of business development, plus the June 2007 acquisition of an investment consulting firm in Boston, helped the Wealth Advisory Services (WAS) business overcome volatility in the financial markets. WAS revenue was up 15% from the year-ago fourth

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    quarter, and up 5% from the 2007 third quarter, significantly surpassing the changes in the three major equity market indices. For the full year, WAS revenue rose 15%.
 
•   In the mid-Atlantic region, the economy remains well diversified and stable. Although economic activity has slowed from the 2005 and 2006 pace, loan balances continued to rise. On average, loan balances were 6% higher than for the year-ago fourth quarter, and 1% higher than for the 2007 third quarter. For the full year, loan balances rose 7%, on average.
These achievements were offset by:
•   An addition to expenses of approximately $3.2 million for Wilmington Trust’s share of Visa, Inc.’s litigation with other companies.
 
•   A decline in the net interest margin of 17 basis points from the third quarter, to 3.56%. This decrease was due to the Federal Reserve’s short-term interest rate reductions and the differences between when the company’s loans reprice and when its deposits reprice. If there are additional reductions in short-term rates, depending on the magnitude and pace at which they occur, the margin will compress with each downward move until deposit repricing catches up to loan repricing.
 
•   Levels of nonperforming assets and net charge-offs that were more in line with historical levels, which increased the provision and reserve for loan losses.
“The Corporate Client and Wealth Advisory Services businesses showed impressive growth, especially considering the dearth of activity in capital markets and the volatility in the equity markets in the fourth quarter,” said Ted T. Cecala, Wilmington Trust’s chairman and chief executive officer. “Our performance shows how our diversified business mix helps us generate consistent results, even when one sector slows down, such as what our Regional Banking business is experiencing as market interest rates decline and the current economic cycle affects the pace of loan growth.”
Loan portfolio
•   Commercial loan balances, on average, were 7% higher than for the year-ago fourth quarter and 2% higher than for the 2007 third quarter.
 
•   The commercial and industrial loan growth came mainly from clients in Pennsylvania, Delaware, and New Jersey with retail, wholesale, service, and contracting businesses. Most of these loans were for working capital.

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•   Construction loans constituted 21%, or $1.78 billion, of the $8.48 billion in total loans at December 31, 2007. Key characteristics of the construction loan portfolio were as follows:
  •   In terms of project type, approximately 52% of construction loans were for residential real estate construction, approximately 21% were for land development, and approximately 14% were for retail and office projects. The remainder were for owner-occupied, multi-family, and other types of projects.
 
  •   In terms of location, approximately 61% were for projects in Delaware, approximately 25% were in Pennsylvania, approximately 7% were in Maryland, approximately 4% were in New Jersey, and the rest were elsewhere.
•   Consumer loan balances, on average, were 4% higher than for the year-ago fourth quarter and 2% higher than for the 2007 third quarter. Almost all of this growth was in indirect loans made mainly through automobile dealers for late-model used cars.
Credit quality in the 2007 fourth quarter
•   In the internal risk rating analysis, the percentage of loans with pass ratings was 96%, the same as for the 2007 third quarter, and slightly less than the 97% for the year-ago fourth quarter.
•   The disposition of approximately $10.3 million in loans to the Elliott Building Group caused the biggest changes in credit quality. These loans were for two housing developments under construction in southern New Jersey. In June 2007, Elliott filed for bankruptcy, and the $10.3 million was transferred to nonaccruing status. In the 2007 fourth quarter, approximately $8.9 million of this amount was transferred to other real estate owned (OREO), and the remainder was charged off. The transfer of these properties to OREO added approximately $529,000 of expense.
•   Net charge-offs for the fourth quarter totaled $9.5 million, or 11 basis points. The Elliott loans and other loans previously reported as nonperforming accounted for most of the increase from prior periods. Consumer and other retail loans continued to account for more than half of total net charge-offs. Most of the charged-off consumer loans were indirect auto loans.
•   For the 2007 full year, net charge-offs were $21.3 million, or 26 basis points. In comparison, net charge-offs for 2006 were $18.5 million, or 24 basis points. Since 1996, the annual net charge-off ratio has ranged from a low of 14 basis points for 2005 to a high of 44 basis points for 2000.

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•   Nonaccruing loans for the fourth quarter included approximately $8.4 million for a hotel and retail project in Ocean City, Maryland. This loan was transferred from performing status to loans past due 90 days or more, and included in serious doubt loans, in the 2007 third quarter. Its transfer to nonaccruing status accounted for the fourth quarter decrease in commercial, financial, and agricultural loans past due 90 days or more.
•   Renegotiated loans increased because one commercial loan of approximately $4.5 million was upgraded from nonaccruing status. The amount of renegotiated loans also included approximately $19.0 million in loans that were renegotiated in and reported for the third quarter of 2007. These loans are to a Pennsylvania-based developer for a large single family and townhome development in Sussex County, Delaware.
•   Construction loans accounted for approximately 21% of total loans, which has been the case since the fourth quarter of 2005. For the 2007 fourth quarter, construction loans accounted for approximately 21% of total nonaccruing loans and approximately 5% of total loans past due 90 days or more.
•   On a percentage basis, the composition of the loan portfolio remained well diversified and relatively unchanged.
•   Additional disclosure about credit quality is contained in the financial statement section of this release.
Exposure to subprime residential mortgage loans
As of December 31, 2007:
•   There were no subprime loans in the residential mortgage portfolio.
•   All of the mortgage-backed securities in the investment securities portfolio were issued by U.S. government-sponsored enterprises (GSEs). These GSEs are AAA-rated and they guarantee the timing and amount of principal and interest payments on the instruments they issue.
•   Revenue from trust services for investors in structures that hold residential mortgages as the underlying collateral accounted for less than 1% of both fourth quarter and full-year revenue (approximately $1.4 million for the 2007 fourth quarter and approximately $5.5 million for the full year). The structures associated with these revenue amounts hold a combination of prime and subprime U.S. residential mortgages.
•   None of the collateralized debt obligations for which CCS provides trust and administrative services held residential mortgage or subprime loan collateral directly.

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Other items
•   Investment securities balances were lower than the year-ago levels because there was less need to invest in short-term securities in order to collateralize client accounts that use short-term cash sweeps. On a percentage basis, the composition of the investment securities portfolio was relatively unchanged from prior periods. More information about the investment securities portfolio is in the supplemental financial statement in this release.
•   In addition to the $3.2 million recorded for the Visa litigation, expense growth reflected higher staffing, occupancy, and related costs associated with the June 2007 acquisitions of a wealth management firm in Boston and a corporate services provider in Luxembourg. The increase from the 2007 third quarter was due in part to seasonal advertising, consulting, and travel and entertainment expenses.
•   In the 2008 first quarter, salaries and wages expense should increase by approximately $5.0 million, as payroll taxes and 401(k) plan matching expenses reset at January 1.
•   More information about asset/liability matching and funding sources is in the supplemental financial statement in this release.
Cash dividend declared
At its meeting yesterday, the Board of Directors declared a regular quarterly cash dividend of $0.335 per share. This amount reflects the 6% increase the Board approved in April 2007, which marked the 26th consecutive year the company has raised its cash dividend. The quarterly dividend will be paid on February 15, 2008, to stockholders of record on February 1, 2008.
Share repurchases
The company’s current share repurchase plan, which commenced in April 2002, allows the company to reacquire up to 8 million of its shares. During the 2007 fourth quarter, the company repurchased 600,000 shares under this program, at a total cost of $21.4 million and an average price per share of $35.74. The company repurchased a total of 2,000,000 shares in 2007, at a total cost of $79.2 million and an average price per share of $39.60. This brought the total number of shares repurchased under the current program to 3,043,796, leaving 4,956,204 available for repurchase.

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Conference call
Management will discuss 2007 fourth quarter results and full-year results and outlook for the future in a conference call today at 10:00 a.m. (EST). Supporting materials, financial statements, and audio streaming will be available at www.wilmingtontrust.com.
Dial-in information:
•   From inside the United States: (888) 459-5609
•   From outside the United States: (973) 321-1024
•   Conference identification number: 27652936
A rebroadcast of the call will be available from 12:00 p.m. (Eastern) today until 12:00 a.m. (Eastern) on Friday, January 25, by calling (800) 642-1687 inside the United States or (706) 645-9291 outside the United States. Use conference identification number 27652936 to access the rebroadcast.
Forward-looking statements
This presentation contains forward-looking statements that reflect our current expectations about our future performance. These statements rely on a number of assumptions and estimates and are subject to various risks and uncertainties that could cause our actual results to differ from our expectations. Factors that could affect our future financial results include, among other things, changes in national or regional economic conditions; changes in market interest rates; significant changes in banking laws or regulations; increased competition in our businesses; higher-than-expected credit losses; the effects of acquisitions; the effects of integrating acquired entities; a substantial and permanent loss of either client accounts and/or assets under management at Wilmington Trust and/or our affiliate money managers, Cramer Rosenthal McGlynn and Roxbury Capital Management; unanticipated changes in regulatory, judicial, or legislative tax treatment of business transactions; and economic uncertainty created by unrest in other parts of the world.
About Wilmington Trust
Wilmington Trust Corporation (NYSE: WL) is a financial services holding company that provides Regional Banking services throughout the Delaware Valley region, Wealth Advisory Services for high-net-worth clients in 36 countries, and Corporate Client Services for institutional clients in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust Company, which was founded in 1903, is one of the largest personal trust providers in the United States and the leading retail and commercial bank in Delaware. Wilmington Trust Corporation and its affiliates

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have offices in California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the Channel Islands, London, Dublin, Frankfurt, and Luxembourg. For more information, visit www.wilmingtontrust.com.
Contacts
     
Investors and analysts:
  News media:
Ellen J. Roberts
  Bill Benintende
Investor Relations
  Public Relations
(302) 651-8069
  (302) 651-8268
eroberts@wilmingtontrust.com
  wbenintende@wilmingtontrust.com
 
# # #
    

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EARNINGS RELEASE
EXHIBIT 99
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
HIGHLIGHTS
                                                         
      Three Months Ended     Twelve Months Ended
 
      Dec. 31,     Dec. 31,   %     Dec. 31,     Dec. 31,   %
      2007     2006   Change     2007     2006   Change
                         
OPERATING RESULTS (in millions)
                                                        
Net interest income
     $ 91.1       $ 92.4       (1.4 )     $ 368.9       $ 363.1       1.6  
Provision for loan losses
       (9.2 )       (6.5 )     41.5         (28.2 )       (21.3 )     32.4  
Noninterest income
       102.7         92.5       11.0         386.0         346.1       11.5  
Noninterest expense
       116.9         104.9       11.4         444.1         471.6       (5.8 )
Net income
       44.0         47.5       (7.4 )       182.0         143.8       26.6  
 
                                                        
PER SHARE DATA
                                                        
Basic net income
     $ 0.66       $ 0.69       (4.3 )     $ 2.68       $ 2.10       27.6  
Diluted net income
       0.65         0.68       (4.4 )       2.64         2.06       28.2  
Dividends paid
       0.335         0.315       6.3         1.32         1.245       6.0  
Book value at period end
       16.55         15.47       7.0         16.55         15.47       7.0  
Closing price at period end
       35.20         42.17       (16.5 )       35.20         42.17       (16.5 )
Market range:
                                                        
High
       42.00         45.33       (7.3 )       44.55         45.61       (2.3 )
Low
       32.57         40.54       (19.7 )       32.57         38.54       (15.5 )
 
                                                        
AVERAGE SHARES OUTSTANDING (in thousands)
                                                        
Basic
       67,174         68,455       (1.9 )       67,946         68,413       (0.7 )
Diluted
       67,749         69,615       (2.7 )       68,851         69,675       (1.2 )
 
                                                        
AVERAGE BALANCE SHEET (in millions)
                                                        
Investment portfolio
     $ 1,846.8       $ 2,017.6       (8.5 )     $ 1,875.9       $ 1,893.1       (0.9 )
Loans
       8,355.7         7,912.9       5.6         8,212.0         7,699.8       6.7  
Earning assets
       10,234.4         10,075.3       1.6         10,126.3         9,645.7       5.0  
Core deposits
       5,094.5         5,008.1       1.7         5,045.5         4,936.7       2.2  
Stockholders’ equity
       1,093.7         1,067.4       2.5         1,091.0         1,059.1       3.0  
 
                                                        
STATISTICS AND RATIOS (net income annualized)
                                                        
Return on average stockholders’ equity
       15.96 %       17.66 %     (9.6 )       16.68 %       13.58 %     22.8  
Return on average assets
       1.57 %       1.73 %     (9.2 )       1.65 %       1.37 %     20.4  
Net interest margin (taxable equivalent)
       3.56 %       3.65 %     (2.5 )       3.67 %       3.79 %     (3.2 )
Dividend payout ratio
       51.36 %       45.26 %     13.5         49.40 %       59.18 %     (16.5 )
Full-time equivalent headcount
       2,672         2,574       3.8         2,672         2,574       3.8  

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
QUARTERLY INCOME STATEMENT
                                                             
    Three Months Ended
                                                 
                                                % Change From
      Dec. 31,     Sept. 30,   June 30,   Mar. 31,   Dec. 31,   Prior   Prior
(In millions)     2007     2007   2007   2007   2006   Quarter   Year
             
NET INTEREST INCOME
                                                            
Interest income
     $ 177.9       $ 183.4     $ 180.8     $ 180.0     $ 182.0       (3.0 )     (2.3 )
Interest expense
       86.8         89.3       88.0       89.2       89.6       (2.8 )     (3.1 )
                             
Net interest income
       91.1         94.1       92.8       90.8       92.4       (3.2 )     (1.4 )
Provision for loan losses
       (9.2 )       (8.9 )     (6.5 )     (3.6 )     (6.5 )     3.4       41.5  
                             
Net interest income after
provision for loan losses
       81.9         85.2       86.3       87.2       85.9       (3.9 )     (4.7 )
                             
 
                                                            
NONINTEREST INCOME
                                                            
Advisory fees:
                                                            
Wealth Advisory Services
                                                            
Trust and investment advisory fees
       42.9         40.5       38.4       36.9       36.1       5.9       18.8  
Mutual fund fees
       5.9         5.3       5.1       5.1       5.1       11.3       15.7  
Planning and other services
       10.3         10.3       9.9       9.5       10.1       —       2.0  
                             
Total Wealth Advisory Services
       59.1         56.1       53.4       51.5       51.3       5.3       15.2  
                             
Corporate Client Services
                                                            
Capital markets services
       11.4         10.2       11.2       10.2       10.4       11.8       9.6  
Entity management services
       8.1         7.4       7.4       7.1       7.1       9.5       14.1  
Retirement services
       3.3         3.0       3.2       3.4       2.9       10.0       13.8  
Investment/cash management services
       3.4         3.0       3.0       3.3       3.0       13.3       13.3  
                             
Total Corporate Client Services
       26.2         23.6       24.8       24.0       23.4       11.0       12.0  
                             
Cramer Rosenthal McGlynn
       5.5         4.2       6.3       4.7       5.3       31.0       3.8  
Roxbury Capital Management
       0.4         0.4       0.2       0.1       0.1       —       300.0  
                             
Advisory fees
       91.2         84.3       84.7       80.3       80.1       8.2       13.9  
Amortization of affiliate intangibles
       (1.3 )       (1.2 )     (1.1 )     (1.1 )     (1.1 )     8.3       18.2  
                             
Advisory fees after amortization of affiliate intangibles
       89.9         83.1       83.6       79.2       79.0       8.2       13.8  
                             
Service charges on deposit accounts
       7.3         7.2       7.0       6.8       7.1       1.4       2.8  
Other noninterest income
       5.3         4.7       6.2       5.4       6.2       12.8       (14.5 )
Securities gains/(losses)
       0.2         (0.2 )     0.1       —       0.2       —       —  
                             
Total noninterest income
       102.7         94.8       96.9       91.4       92.5       8.3       11.0  
                             
 
                                                            
Net interest and noninterest income
       184.6         180.0       183.2       178.6       178.4       2.6       3.5  
                             
 
                                                            
NONINTEREST EXPENSE
                                                            
Salaries and wages
       45.0         44.1       41.9       41.8       40.3       2.0       11.7  
Incentives and bonuses
       11.5         10.0       11.4       14.0       10.3       15.0       11.7  
Employment benefits
       12.0         12.7       11.5       14.6       11.4       (5.5 )     5.3  
Net occupancy
       7.4         7.3       6.8       6.8       6.7       1.4       10.4  
Furniture, equipment, and supplies
       9.7         10.0       9.8       9.7       10.3       (3.0 )     (5.8 )
Other noninterest expense:
                                                            
Advertising and contributions
       3.2         2.0       2.8       2.7       3.2       60.0       —  
Servicing and consulting fees
       3.4         2.6       2.8       2.4       2.9       30.8       17.2  
Subadvisor expense
       2.8         2.7       2.5       2.5       2.3       3.7       21.7  
Travel, entertainment, and training
       3.3         2.8       2.4       2.2       3.4       17.9       (2.9 )
Originating and processing fees
       2.9         2.8       2.7       2.5       3.1       3.6       (6.5 )
Other expense
       15.7         13.8       11.4       11.2       11.0       13.8       42.7  
                             
Total other noninterest expense
       31.3         26.7       24.6       23.5       25.9       17.2       20.8  
                             
Total noninterest expense
       116.9         110.8       106.0       110.4       104.9       5.5       11.4  
                             
Income before income taxes and minority interest
       67.7         69.2       77.2       68.2       73.5       (2.2 )     (7.9 )
Applicable income taxes
       23.6         22.9       28.3       24.6       26.3       3.1       (10.3 )
                             
Net income before minority interest
       44.1         46.3       48.9       43.6       47.2       (4.8 )     (6.6 )
Minority interest
       0.1         0.1       —       0.6       (0.3 )     —       —  
                             
Net income
     $ 44.0       $ 46.2     $ 48.9     $ 43.0     $ 47.5       (4.8 )     (7.4 )
                             
                             

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
YEAR-TO-DATE INCOME STATEMENT
                             
      Twelve Months Ended
 
       
      Dec. 31,     Dec. 31,   %
(In millions)     2007     2006   Change
             
NET INTEREST INCOME
                            
Interest income
     $ 722.2       $ 674.8       7.0  
Interest expense
       353.3         311.7       13.3  
                     
Net interest income
       368.9         363.1       1.6  
Provision for loan losses
       (28.2 )       (21.3 )     32.4  
                     
Net interest income after provision for loan losses
       340.7         341.8       (0.3 )
                     
 
                            
NONINTEREST INCOME
                            
Advisory fees:
                            
Wealth Advisory Services
                            
Trust and investment advisory fees
       158.6         136.5       16.2  
Mutual fund fees
       21.4         20.2       5.9  
Planning and other services
       40.1         35.3       13.6  
                     
Total Wealth Advisory Services
       220.1         192.0       14.6  
                     
Corporate Client Services
                            
Capital markets services
       42.9         37.0       15.9  
Entity management services
       30.0         26.8       11.9  
Retirement services
       12.9         11.5       12.2  
Investment/cash management services
       12.8         10.3       24.3  
                     
Total Corporate Client Services
       98.6         85.6       15.2  
                     
Cramer Rosenthal McGlynn
       20.7         19.3       7.3  
Roxbury Capital Management
       1.2         1.2       —  
                     
Advisory fees
       340.6         298.1       14.3  
Amortization of affiliate intangibles
       (4.7 )       (4.2 )     11.9  
                     
Advisory fees after amortization of affiliate intangibles
       335.9         293.9       14.3  
                     
Service charges on deposit accounts
       28.3         28.2       0.4  
Other noninterest income
       21.7         23.8       (8.8 )
Securities gains
       0.1         0.2       (50.0 )
                     
Total noninterest income
       386.0         346.1       11.5  
                     
 
                            
Net interest and noninterest income
       726.7         687.9       5.6  
                     
 
                            
NONINTEREST EXPENSE
                            
Salaries and wages
       172.8         154.4       11.9  
Incentives and bonuses
       46.9         39.8       17.8  
Employment benefits
       50.9         48.3       5.4  
Net occupancy
       28.3         25.7       10.1  
Furniture, equipment, and supplies
       39.2         38.3       2.3  
Other noninterest expense:
                            
Advertising and contributions
       10.7         9.4       13.8  
Servicing and consulting fees
       11.2         10.4       7.7  
Subadvisor expense
       10.5         10.7       (1.9 )
Travel, entertainment, and training
       10.7         10.4       2.9  
Originating and processing fees
       10.9         11.1       (1.8 )
Other expense
       52.0         40.8       27.5  
                     
Total other noninterest expense
       106.0         92.8       14.2  
                     
Total noninterest expense before impairment
       444.1         399.3       11.2  
Impairment write-down
       —         72.3       (100.0 )
                     
Total noninterest expense
       444.1         471.6       (5.8 )
                     
Income before income taxes and minority interest
       282.6         216.3       30.7  
Applicable income taxes
       99.7         72.7       37.1  
                     
Net income before minority interest
       182.9         143.6       27.4  
Minority interest
       0.9         (0.2 )     —  
                     
Net income
     $ 182.0       $ 143.8       26.6  
                     

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
COMPARISON OF OPERATING RESULTS (excluding the 2006 impairment write-down)
                                                 
    Three Months Ended   Twelve Months Ended
    Dec. 31,   Dec. 31,   %   Dec. 31,   Dec. 31,   %
    2007   2006   Change   2007   2006   Change
 
OPERATING RESULTS (in millions)
                                                
Net interest income
   $ 91.1     $ 92.4       (1.4 )   $ 368.9     $ 363.1       1.6  
Provision for loan losses
     (9.2 )     (6.5 )     41.5       (28.2 )     (21.3 )     32.4  
Noninterest income
     102.7       92.5       11.0       386.0       346.1       11.5  
Total noninterest expense before impairment write-down
     116.9       104.9       11.4       444.1       399.3       11.2  
Impairment write-down
     —       —       —       —       —       —  
 
Total noninterest expense
     116.9       104.9       11.4       444.1       399.3       11.2  
     
Income before income taxes and minority interest
     67.7       73.5       (7.9 )     282.6       288.6       (2.1 )
Applicable income taxes
     23.6       26.3       (10.3 )     99.7       103.3       (3.5 )
 
Net income before minority interest
     44.1       47.2       (6.6 )     182.9       185.3       (1.3 )
Minority interest
     0.1       (0.3 )     —       0.9       (0.2 )     —  
 
Net income
   $ 44.0     $ 47.5       (7.4 )   $ 182.0     $ 185.5       (1.9 )
     
 
                                                
PER-SHARE DATA
                                                
Diluted shares outstanding (in millions)
     67.7       69.7       (2.9 )     68.9       69.7       (1.1 )
Per-share earnings (diluted)
   $ 0.65     $ 0.68       (4.4 )   $ 2.64     $ 2.66       (0.8 )
 
                                                
STATISTICS AND RATIOS (net income annualized; dollars in millions)
                                                
Total assets, on average
   $ 11,126.0     $ 10,912.9       2.0     $ 10,997.4     $ 10,513.5       4.6  
Stockholders’ equity, on average
     1,093.7       1,067.4       2.5       1,091.0       1,069.7       2.0  
Return on average assets
     1.57 %     1.73 %     (9.2 )     1.65 %     1.76 %     (6.3 )
Return on equity
     15.96 %     17.66 %     (9.6 )     16.68 %     17.34 %     (3.8 )
 
                                                
Net interest income before provision and noninterest income
   $ 193.8     $ 184.9       4.8     $ 754.9     $ 709.2       6.4  
Tax-equivalent interest income
     0.9       1.1       (18.2 )     3.9       4.3       (9.3 )
 
 
   $ 194.7     $ 186.0       4.7     $ 758.8     $ 713.5       6.3  
Noninterest expense
   $ 116.9     $ 104.9       11.4     $ 444.1     $ 399.3       11.2  
     
Efficiency ratio
     60.04 %     56.40 %     6.5       58.53 %     55.96 %     4.6  

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
COMPARISON OF RESULTS WITH AND WITHOUT THE IMPAIRMENT WRITE-DOWN
                                                         
    Three months ended December 31, 2006   Twelve months ended December 31, 2006        
    With   Without           With   Without            
    impairment   impairment   Impairment   impairment   impairment   Impairment        
OPERATING RESULTS (in millions)
                                                        
Net interest income
   $ 92.4     $ 92.4     $  —     $ 363.1     $ 363.1     $ —          
Provision for loan losses
     (6.5 )     (6.5 )     —       (21.3 )     (21.3 )     —          
Noninterest income
     92.5       92.5       —       346.1       346.1       —          
Noninterest expense
     104.9       104.9       —       471.6       399.3       72.3          
         
Income before taxes and minority interest
     73.5       73.5       —       216.3       288.6       (72.3 )        
Applicable income taxes
     26.3       26.3       —       72.7       103.3       (30.6 )        
         
Net income before minority interest
     47.2       47.2       —       143.6       185.3       (41.7 )        
Minority interest
     (0.3 )     (0.3 )     —       (0.2 )     (0.2 )     —          
         
Net income
   $ 47.5     $ 47.5     $  —     $ 143.8     $ 185.5     $ (41.7 )        
     
 
                                                        
PER SHARE DATA
                                                        
Diluted shares outstanding (in millions)
     69.7       69.7       —       69.7       69.7       —          
Per-share earnings
   $ 0.68     $ 0.68     $ —     $ 2.06     $ 2.66     $ (0.60 )        
 
                                                        
STATISTICS AND RATIOS (dollars in millions)
                                                        
Total assets, on average
   $ 10,912.9     $ 10,912.9     $  —     $ 10,495.1     $ 10,513.5     $ (18.4 )        
Stockholders’ equity, on average
     1,067.4       1,067.4       —       1,059.1       1,069.7       (10.6 )        
Return on average assets
     1.73 %     1.73 %     —       1.37 %     1.76 %     (0.39 )%        
Return on equity
     17.66 %     17.66 %     —       13.58 %     17.34 %     (3.76 )%        
 
                                                        
Net interest income before provision and noninterest income
   $ 184.9     $ 184.9     $  —     $ 709.2     $ 709.2     $ —          
Tax equivalent interest income
     1.1       1.1       —       4.3       4.3       —          
         
 
   $ 186.0     $ 186.0     $  —     $ 713.5     $ 713.5     $ —          
Noninterest expense
   $ 104.9     $ 104.9     $  —     $ 471.6     $ 399.3     $ 72.3          
     
Efficiency ratio
     56.40 %     56.40 %     —       66.10 %     55.96 %     10.13 %        

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
STATEMENT OF CONDITION
                                                                     
                                                % Change From        
      Dec. 31,     Sept. 30,   June 30,   Mar. 31,   Dec. 31,   Prior   Prior        
(In millions)     2007     2007   2007   2007   2006   Quarter   Year        
ASSETS
                                                                    
Cash and due from banks
     $ 260.5       $ 286.3     $ 231.8     $ 222.2     $ 249.7       (9.0 )     4.3          
               
Federal funds sold and securities purchased under agreements to resell
       134.0         16.5       18.0       68.9       68.9       N/M       94.5          
               
Investment securities:
                                                                    
U.S. Treasury
       60.2         101.9       103.8       102.5       125.2       (40.9 )     (51.9 )        
Government agencies
       647.0         701.4       634.8       743.9       807.1       (7.8 )     (19.8 )        
Obligations of state and political subdivisions
       17.8         18.5       19.0       9.1       9.5       (3.8 )     87.4          
Preferred stock
       44.9         62.6       63.8       74.2       90.5       (28.3 )     (50.4 )        
Mortgage-backed securities
       730.6         581.9       605.1       656.2       689.5       25.6       6.0          
Other securities
       368.7         385.1       387.5       391.5       392.8       (4.3 )     (6.1 )        
                       
Total investment securities
       1,869.2         1,851.4       1,814.0       1,977.4       2,114.6       1.0       (11.6 )        
               
Loans:
                                                                    
Commercial, financial, and agricultural
       2,594.9         2,529.0       2,483.7       2,455.2       2,533.5       2.6       2.4          
Real estate — construction
       1,780.4         1,759.9       1,747.0       1,665.5       1,663.9       1.2       7.0          
Mortgage — commercial
       1,463.4         1,388.8       1,390.5       1,378.3       1,296.1       5.4       12.9          
                       
Total commercial loans
       5,838.7         5,677.7       5,621.2       5,499.0       5,493.5       2.8       6.3          
               
Mortgage — residential
       562.0         566.3       563.1       553.5       536.9       (0.8 )     4.7          
Consumer
       1,571.6         1,546.0       1,517.0       1,503.9       1,517.0       1.7       3.6          
Secured with liquid collateral
       503.5         546.5       573.4       532.0       547.5       (7.9 )     (8.0 )        
                       
Total retail loans
       2,637.1         2,658.8       2,653.5       2,589.4       2,601.4       (0.8 )     1.4          
               
Total loans net of unearned income
       8,475.8         8,336.5       8,274.7       8,088.4       8,094.9       1.7       4.7          
Reserve for loan losses
       (101.1 )       (101.6 )     (97.5 )     (94.5 )     (94.2 )     (0.5 )     7.3          
                       
Net loans
       8,374.7         8,234.9       8,177.2       7,993.9       8,000.7       1.7       4.7          
               
Premises and equipment
       152.1         148.9       148.6       148.8       150.3       2.1       1.2          
Goodwill
       330.0         329.0       328.2       291.5       291.4       0.3       13.2          
Other intangibles
       38.3         38.7       40.1       34.2       35.4       (1.0 )     8.2          
Other assets
       332.3         281.4       273.1       254.0       246.0       18.1       35.1          
                       
Total assets
     $ 11,491.1       $ 11,187.1     $ 11,031.0     $ 10,990.9     $ 11,157.0       2.7       3.0          
               
 
                                                                    
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                    
Deposits:
                                                                    
Noninterest-bearing demand
     $ 966.2       $ 827.8     $ 812.7     $ 792.0     $ 913.6       16.7       5.8          
Interest-bearing:
                                                                    
Savings
       659.8         580.1       497.1       422.7       313.8       13.7       110.3          
Interest-bearing demand
       2,471.8         2,346.7       2,483.1       2,478.6       2,560.6       5.3       (3.5 )        
Certificates under $100,000
       1,011.4         1,002.4       1,019.8       1,014.2       1,012.6       0.9       (0.1 )        
Local certificates $100,000 and over
       356.3         389.6       370.8       447.6       474.4       (8.5 )     (24.9 )        
                       
Total core deposits
       5,465.5         5,146.6       5,183.5       5,155.1       5,275.0       6.2       3.6          
National certificates $100,000 and over
       2,392.0         2,353.1       2,979.3       2,970.6       3,054.1       1.7       (21.7 )        
                       
Total deposits
       7,857.5         7,499.7       8,162.8       8,125.7       8,329.1       4.8       (5.7 )        
               
Short-term borrowings:
                                                                    
Federal funds purchased and securities sold under agreements to repurchase
       1,790.3         1,925.5       1,174.4       1,153.5       1,145.8       (7.0 )     56.2          
U.S. Treasury demand
       77.3         40.9       2.5       —       13.0       89.0       494.6          
                       
Total short-term borrowings
       1,867.6         1,966.4       1,176.9       1,153.5       1,158.8       (5.0 )     61.2          
               
Other liabilities
       263.3         231.4       228.8       229.8       221.3       13.8       19.0          
Long-term debt
       392.3         391.5       390.2       389.5       388.5       0.2       1.0          
                       
Total liabilities
       10,380.7         10,089.0       9,958.7       9,898.5       10,097.7       2.9       2.8          
               
Minority interest
       0.1         0.1       0.2       0.2       —       —       —          
Stockholders’ equity
       1,110.3         1,098.0       1,072.1       1,092.2       1,059.3       1.1       4.8          
                       
Total liabilities and stockholders’ equity
     $ 11,491.1       $ 11,187.1     $ 11,031.0     $ 10,990.9     $ 11,157.0       2.7       3.0          
               

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
AVERAGE STATEMENT OF CONDITION
                                                                     
      2007     2007   2007   2007   2006   % Change From        
      Fourth     Third   Second   First   Fourth   Prior   Prior        
(In millions)     Quarter     Quarter   Quarter   Quarter   Quarter   Quarter   Year        
                     
ASSETS
                                                                    
Cash and due from banks
     $ 209.6       $ 208.1     $ 203.4     $ 213.9     $ 218.2       0.7       (3.9 )        
             
Federal funds sold and securities purchased under agreements to resell
       31.9         27.3       37.5       57.3       144.8       16.8       (78.0 )        
             
Investment securities:
                                                                    
U.S. Treasury
       80.5         103.3       105.0       123.6       177.4       (22.1 )     (54.6 )        
Government agencies
       619.5         631.4       652.9       728.9       642.1       (1.9 )     (3.5 )        
Obligations of state and political subdivisions
       18.2         18.7       12.6       9.1       9.4       (2.7 )     93.6          
Preferred stock
       49.0         62.5       68.5       85.1       90.7       (21.6 )     (46.0 )        
Mortgage-backed securities
       697.0         590.4       633.9       668.8       705.5       18.1       (1.2 )        
Other securities
       382.6         381.1       393.2       390.3       392.5       0.4       (2.5 )        
                     
Total investment securities
       1,846.8         1,787.4       1,866.1       2,005.8       2,017.6       3.3       (8.5 )        
             
Loans:
                                                                    
Commercial, financial, and agricultural
       2,521.5         2,454.9       2,500.1       2,466.2       2,430.5       2.7       3.7          
Real estate — construction
       1,790.2         1,769.2       1,696.7       1,669.8       1,634.9       1.2       9.5          
Mortgage — commercial
       1,423.5         1,387.3       1,376.9       1,339.9       1,281.4       2.6       11.1          
                     
Total commercial loans
       5,735.2         5,611.4       5,573.7       5,475.9       5,346.8       2.2       7.3          
             
Mortgage — residential
       564.5         564.4       553.9       542.1       524.8       —       7.6          
Consumer
       1,556.5         1,533.0       1,503.9       1,512.3       1,496.1       1.5       4.0          
Secured with liquid collateral
       499.5         551.5       524.8       541.7       545.2       (9.4 )     (8.4 )        
                     
Total retail loans
       2,620.5         2,648.9       2,582.6       2,596.1       2,566.1       (1.1 )     2.1          
                     
Total loans net of unearned income
       8,355.7         8,260.3       8,156.3       8,072.0       7,912.9       1.2       5.6          
Reserve for loan losses
       (99.4 )       (95.8 )     (93.3 )     (93.2 )     (91.6 )     3.8       8.5          
                     
Net loans
       8,256.3         8,164.5       8,063.0       7,978.8       7,821.3       1.1       5.6          
             
Premises and equipment
       150.9         148.5       148.6       150.3       151.5       1.6       (0.4 )        
Goodwill
       329.1         328.3       307.8       291.4       290.7       0.2       13.2          
Other intangibles
       38.2         39.4       34.0       34.8       38.1       (3.0 )     0.3          
Other assets
       263.2         259.8       261.3       245.0       241.2       1.3       9.1          
                     
Total assets
     $ 11,126.0       $ 10,963.3     $ 10,921.7     $ 10,977.3     $ 10,923.4       1.5       1.9          
             
 
                                                                    
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                    
Deposits:
                                                                    
Noninterest-bearing demand
     $ 723.5       $ 714.9     $ 702.6     $ 749.1     $ 793.6       1.2       (8.8 )        
Interest-bearing:
                                                                    
Savings
       627.3         540.9       463.4       365.3       294.7       16.0       112.9          
Interest-bearing demand
       2,347.6         2,405.8       2,454.7       2,393.4       2,374.7       (2.4 )     (1.1 )        
Certificates under $100,000
       1,005.4         1,007.7       1,014.5       1,012.9       1,009.3       (0.2 )     (0.4 )        
Local certificates $100,000 and over
       390.7         376.2       427.2       457.7       535.8       3.9       (27.1 )        
                     
Total core deposits
       5,094.5         5,045.5       5,062.4       4,978.4       5,008.1       1.0       1.7          
National certificates $100,000 and over
       2,369.1         2,817.9       2,853.8       2,992.1       3,042.2       (15.9 )     (22.1 )        
                     
Total deposits
       7,463.6         7,863.4       7,916.2       7,970.5       8,050.3       (5.1 )     (7.3 )        
             
Short-term borrowings:
                                                                    
Federal funds purchased and securities sold under agreements to repurchase
       1,919.9         1,386.8       1,270.8       1,318.5       1,221.4       38.4       57.2          
U.S. Treasury demand
       12.3         11.0       10.4       5.4       10.0       11.8       23.0          
                     
Total short-term borrowings
       1,932.2         1,397.8       1,281.2       1,323.9       1,231.4       38.2       56.9          
             
Other liabilities
       244.5         223.4       214.2       231.5       183.0       9.4       33.6          
Long-term debt
       391.9         390.7       389.7       388.8       391.1       0.3       0.2          
                     
Total liabilities
       10,032.2         9,875.3       9,801.3       9,914.7       9,855.8       1.6       1.8          
                     
Minority interest
       0.1         0.2       0.2       0.4       0.2       (50.0 )     (50.0 )        
Stockholders’ equity
       1,093.7         1,087.8       1,120.2       1,062.2       1,067.4       0.5       2.5          
                     
Total liabilities and stockholders’ equity
     $ 11,126.0       $ 10,963.3     $ 10,921.7     $ 10,977.3     $ 10,923.4       1.5       1.9          
             
                             

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
YIELDS AND RATES
                                             
      2007     2007   2007   2007   2006
      Fourth     Third   Second   First   Fourth
YIELDS/RATES (tax-equivalent basis)     Quarter     Quarter   Quarter   Quarter   Quarter
             
EARNING ASSETS:
                                            
Federal funds sold and securities purchased under agreements to resell
       4.64 %       6.36 %     5.18 %     5.05 %     5.23 %
 
                                            
Total investment securities
       5.00         4.94       4.98       4.95       4.87  
 
                                            
Commercial, financial, and agricultural
       7.39         7.91       7.90       8.04       8.02  
Real estate — construction
       7.82         8.41       8.56       8.60       8.69  
Mortgage — commercial
       7.64         8.04       8.02       8.03       8.11  
Total commercial loans
       7.59         8.10       8.13       8.21       8.24  
 
                                            
Mortgage — residential
       5.80         5.74       5.87       5.95       5.76  
Consumer
       7.33         7.48       7.44       7.41       7.39  
Secured with liquid collateral
       6.51         6.88       6.83       6.81       6.87  
Total retail loans
       6.84         6.98       6.98       6.98       6.95  
 
                                            
Total loans
       7.36         7.74       7.77       7.81       7.82  
 
                                            
Total earning assets
       6.92         7.23       7.23       7.22       7.19  
 
                                            
FUNDS USED TO SUPPORT EARNING ASSETS:
                                            
 
                                            
Core deposits
                                            
Savings
       2.92         2.63       2.07       1.29       0.51  
Interest-bearing demand
       1.26         1.45       1.44       1.46       1.31  
Certificates under $100,000
       4.27         4.23       4.45       4.35       4.22  
Local certificates $100,000 and over
       4.85         4.78       4.55       5.00       4.81  
Core interest-bearing deposits
       2.51         2.54       2.51       2.52       2.44  
 
                                            
National certificates $100,000 and over
       5.23         5.41       5.40       5.43       5.46  
 
                                            
Total interest-bearing deposits
       3.46         3.67       3.66       3.73       3.68  
 
                                            
Short-term borrowings
       4.34         4.74       4.83       4.97       5.03  
 
                                            
Long-term debt
       6.92         6.66       7.00       6.86       6.76  
 
                                            
Total interest-bearing liabilities
       3.80         3.97       3.97       4.05       4.00  
 
                                            
Total funds used to support earning assets
       3.36         3.50       3.50       3.55       3.52  
 
                                            
Net interest margin (tax-equivalent basis)
       3.56         3.73       3.73       3.67       3.67  
 
                                            
Year-to-date net interest margin
       3.67         3.71       3.70       3.67       3.79  
 
                                            
Prime rate
       7.58         8.18       8.25       8.25       8.25  
 
                                            
Tax-equivalent net interest income (in millions)
     $ 92.0       $ 95.1     $ 93.8     $ 91.9     $ 93.5  
 
                                            
Average earning assets at historical cost
     $ 10,258.9       $ 10,113.9     $ 10,082.8     $ 10,163.3     $ 10,105.2  
Average fair valuation adjustment on investment securities available for sale
       (24.5 )       (38.9 )     (22.9 )     (28.2 )     (29.9 )
 
                                            
Average earning assets
     $ 10,234.4       $ 10,075.0     $ 10,059.9     $ 10,135.1     $ 10,075.3  
 
                                            
               
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 twelve months ended December 31, 2007
CREDIT QUALITY
                                             
    Three Months Ended
 
      Dec. 31,     Sept. 30,   June 30,   Mar. 31,   Dec. 31,
(Dollars in millions)     2007     2007   2007   2007   2006
             
NONPERFORMING ASSETS AT PERIOD-END
                                            
Nonaccruing loans:
                                            
Commercial, financial, and agricultural
     $ 18.7       $ 12.1     $ 11.0     $ 10.3     $ 13.7  
Commercial real estate — construction
       9.9         21.2       13.6       —       —  
Commercial mortgage
       7.1         8.7       9.1       3.9       8.5  
Consumer and other retail
       12.1         12.1       11.6       8.9       8.8  
             
Total nonaccruing loans
       47.8         54.1       45.3       23.1       31.0  
Other real estate owned (OREO)
       9.1         0.2       0.2       4.8       4.8  
Renegotiated loans
       23.7         19.2       0.2       4.7       —  
             
Total nonperforming loans
       80.6         73.5       45.7       32.6       35.8  
 
                                            
Loans past due 90 days or more:
                                            
Commercial, financial, and agricultural
       2.4         9.4       6.4       2.3       1.5  
Commercial real estate — construction
       0.7         0.7       1.0       1.6       —  
Commercial mortgage
       1.3         1.1       1.4       0.4       0.2  
Consumer and other retail
       9.3         5.8       4.8       3.0       4.1  
             
Total loans past due 90 days or more
       13.7         17.0       13.6       7.3       5.8  
 
                                            
NET CHARGE-OFFS
                                            
Loans charged off:
                                            
Commercial, financial, and agricultural
     $ 1.3       $ 0.6     $ 1.4     $ 1.0     $ 3.3  
Commercial real estate — construction
       2.3         0.6       —       —       —  
Commercial mortgage
       1.2         0.1       —       —       —  
Consumer and other retail
       6.7         5.5       4.7       4.3       3.8  
             
Total loans charged off
       11.5         6.8       6.1       5.3       7.1  
Recoveries on loans previously charged off:
                                            
Commercial, financial, and agricultural
       —         0.2       0.3       0.5       0.1  
Commercial real estate — construction
       —         —       —       —       —  
Commercial mortgage
       —         —       —       0.2       —  
Consumer and other retail
       1.8         1.8       2.3       1.3       1.1  
             
Total recoveries
       1.8         2.0       2.6       2.0       1.2  
Net loans charged off
       9.7         4.8       3.5       3.3       5.9  
 
                                            
RATIOS
                                            
Period-end reserve to loans
       1.19 %       1.22 %     1.18 %     1.17 %     1.16 %
Period-end non-performing assets to loans
       0.95         0.88       0.55       0.40       0.44  
Period-end loans past due 90 days to total loans
       0.16         0.20       0.16       0.09       0.07  
Quarterly net charge-offs to average loans (not annualized)
       0.12         0.06       0.04       0.04       0.07  
Year-to-date net charge-off to average loans
       0.26         0.14       0.08       0.04       0.24  
 
                                            
INTERNAL RISK RATING
                                            
Pass
       96.03 %       96.01 %     96.81 %     96.89 %     97.39 %
Watchlisted
       2.69         2.62       2.27       2.32       1.82  
Substandard
       1.27         1.36       0.91       0.77       0.79  
Doubtful
       0.01         0.01       0.01       0.01       —  
 
                                            
LOAN PORTFOLIO COMPOSITION
                                            
Commercial, financial, and agricultural
       31 %       30 %     30 %     30 %     31 %
Commercial real estate — construction
       21         21       21       21       21  
Commercial mortgage
       17         17       17       17       16  
Residential mortgage
       6         7       7       7       6  
Consumer
       19         18       18       19       19  
Secured by liquid collateral
       6         7       7       6       7  
 
                                            
COMMERCIAL REAL ESTATE — CONSTRUCTION DETAIL
                                            
Project type:
                                            
Residential real estate construction
       52 %       54 %     53 %     53 %     52 %
Land development
       21         19       18       19       18  
Retail and office
       14         13       13       14       13  
Owner-occupied
       5         6       6       6       7  
Multi-family
       2         2       2       2       3  
Other
       6         6       8       6       7  
Geographic location:
                                            
Delaware
       61 %       59 %     59 %     59 %     58 %
Pennsylvania
       25         27       26       26       26  
Maryland
       7         7       8       7       8  
New Jersey
       4         4       5       6       6  
Other
       3         3       2       2       2  

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
SUPPLEMENTAL INFORMATION
                                                             
    Three Months Ended
 
                                                % Change From:
      Dec. 31,     Sept. 30,   June 30,   Mar. 31,   Dec. 31,   Prior   Prior
      2007     2007   2007   2007   2006   Quarter   Year
             
NET INCOME
                                                            
Net income per share
                                                            
Basic
     $ 0.66       $ 0.68     $ 0.71     $ 0.63     $ 0.69       (2.9 )     (4.3 )
Diluted
       0.65         0.67       0.70       0.62       0.68       (3.0 )     (4.4 )
Weighted average shares outstanding (in thousands)
                                                            
Basic
       67,174         67,698       68,403       68,525       68,455                  
Diluted
       67,749         68,582       69,435       69,659       69,615                  
Net income as a percentage of:
                                                            
Average assets
       1.57 %       1.67 %     1.80 %     1.59 %     1.73 %                
Average stockholders’ equity
       15.96         16.85       17.51       16.42       17.66                  
 
                                                            
ASSETS UNDER MANAGEMENT * (in billions)
                                                            
Wilmington Trust
     $ 34.5       $ 33.2     $ 31.9     $ 31.8     $ 31.3       3.9       10.2  
Wilmington Trust FSB, MA (formerly Bingham Legg Advisers)
       1.4         1.3       1.3       —       —       7.7       —  
Roxbury Capital Management
       2.5         2.8       3.0       3.1       3.1       (10.7 )     (19.4 )
Cramer Rosenthal McGlynn
       11.4         11.8       11.9       11.2       10.6       (3.4 )     7.5  
                             
Combined assets under management
     $ 49.8       $ 49.1     $ 48.1     $ 46.1     $ 45.0       1.4       10.7  
                             
 
                                                            
* 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
     $ 124.3       $ 121.6     $ 120.1     $ 112.1     $ 107.5       2.2       15.6  
** Includes Wilmington Trust assets under management                                                            
 
                                                            
INVESTMENT MIX OF ASSETS MANAGED BY WILMINGTON TRUST
                                                            
Equities
       47 %       49 %     49 %     48 %     47 %                
Fixed income
       23         23       22       27       27                  
Other
       30         28       29       25       26                  
 
                                                            
CAPITAL (in millions, except per share amounts)
                                                            
Average stockholders’ equity
     $ 1,093.7       $ 1,087.8     $ 1,120.2     $ 1,062.2     $ 1,067.4       0.5       2.5  
Period-end primary capital
       1,211.4         1,199.6       1,169.6       1,186.7       1,153.5       1.0       5.0  
Per share:
                                                            
Book value
       16.55         16.23       15.77       15.90       15.47       2.0       7.0  
Quarterly dividends declared
       0.335         0.335       0.335       0.315       0.315       —       6.3  
Year-to-date dividends declared
       1.32         0.985       0.65       0.315       1.245                  
Average stockholders’ equity to assets
       9.83 %       9.92 %     10.26 %     9.68 %     9.78 %                
Total risk-based capital ratio
       11.22         11.54       11.54       12.53       12.10                  
Tier 1 risk-based capital ratio
       7.74         7.96       8.00       8.64       8.25                  
Tier 1 leverage capital ratio
       7.19         7.31       7.37       7.64       7.39                  
 
                                                            
INVESTMENT SECURITIES PORTFOLIO
                                                            
Average life (in years)
       4.45         4.66       5.08       4.59       4.93                  
Average duration
       1.97         1.85       2.19       2.05       2.24                  
Percentage invested in fixed income instruments
       82 %       81 %     80 %     81 %     82 %                
 
                                                            
FUNDING (on average)
                                                            
Percentage from core deposits
       54 %       57 %     58 %     58 %     58 %                
Percentage from national funding
       25         27       27       27       28                  
Percentage from short-term borrowings
       21         16       15       15       14                  
 
                                                            
ASSET — LIABILITY MATCHING
                                                            
As a percentage of total balances at period-end:
                                                            
Loans outstanding with floating rates
       71 %       71 %     73 %     73 %     74 %                
Commercial loans tied to a prime rate
       59         60       61       61       61                  
Commercial loans tied to the 30-day LIBOR
       36         35       33       34       35                  
 
                                                            
National CDs and short-term borrowings maturing in 90 days or less
       78 %       80 %     76 %     82 %     67 %                
 
                                                            
FULL-TIME EQUIVALENT HEADCOUNT
                                                            
Full-time equivalent headcount
       2,672         2,658       2,597       2,593       2,574                  

 

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2007
QUARTERLY BUSINESS SEGMENT REPORT
                                             
    Three Months Ended
 
      Dec. 31,     Sept. 30,   June 30,   Mar. 31,   Dec. 31,
(In millions)     2007     2007   2007   2007   2006
             
REGIONAL BANKING
                                            
Net interest income
     $ 84.3       $ 87.6     $ 86.3     $ 83.8     $ 84.4  
Provision for loan losses
       (6.9 )       (7.8 )     (6.1 )     (3.6 )     (6.4 )
Noninterest income
       13.2         12.1       13.6       12.4       13.6  
Noninterest expense
       45.1         43.0       40.3       42.1       41.1  
             
Income before taxes & minority interest
       45.5         48.9       53.5       50.5       50.5  
 
                                            
Regional Banking efficiency ratio
       45.83 %       42.74 %     39.98 %     43.36 %     41.56 %
 
                                            
WEALTH ADVISORY SERVICES
                                            
Net interest income
     $ 6.4       $ 6.4     $ 6.1     $ 6.3     $ 6.6  
Provision for loan losses
       (2.3 )       (1.1 )     (0.4 )     —       (0.1 )
Noninterest income
       56.2         53.2       51.0       49.2       49.1  
Noninterest expense
       49.4         46.2       44.9       47.7       43.5  
             
Income before taxes & minority interest
       10.9         12.3       11.8       7.8       12.1  
 
                                            
Wealth Advisory Services efficiency ratio
       78.91 %       77.39 %     78.50 %     85.79 %     77.96 %
 
                                            
CORPORATE CLIENT SERVICES
                                            
Net interest income
     $ 3.3       $ 3.2     $ 3.5     $ 3.7     $ 4.3  
Provision for loan losses
       —         —       —       —       —  
Noninterest income
       27.7         25.1       26.0       25.2       24.7  
Noninterest expense
       22.4         21.6       20.8       20.6       20.3  
             
Income before taxes & minority interest
       8.6         6.7       8.7       8.3       8.7  
 
                                            
Corporate Client Services efficiency ratio
       72.26 %       76.33 %     70.51 %     71.28 %     69.76 %
 
                                            
AFFILIATE MANAGERS *
                                            
Net interest income
     $ (2.9 )     $ (3.1 )   $ (3.1 )   $ (3.0 )   $ (2.9 )
Provision for loan losses
       —         —       —       —       —  
Noninterest income
       5.6         4.4       6.3       4.6       5.1  
Noninterest expense
       —         —       —       —       —  
             
Income before taxes & minority interest
       2.7         1.3       3.2       1.6       2.2  
 
                                            
TOTAL WILMINGTON TRUST CORPORATION
                                            
Net interest income
     $ 91.1       $ 94.1     $ 92.8     $ 90.8     $ 92.4  
Provision for loan losses
       (9.2 )       (8.9 )     (6.5 )     (3.6 )     (6.5 )
Noninterest income
       102.7         94.8       96.9       91.4       92.5  
Noninterest expense
       116.9         110.8       106.0       110.4       104.9  
             
Income before taxes & minority interest
     $ 67.7       $ 69.2     $ 77.2     $ 68.2     $ 73.5  
             
                             
 
                                            
Corporation efficiency ratio
       60.04 %       58.35 %     55.58 %     60.26 %     56.40 %
 
*   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 twelve months ended December 31, 2007
YEAR-TO-DATE BUSINESS SEGMENT REPORT
                                     
    Twelve Months Ended
 
      Dec. 31,     Dec. 31,   $   %
(In millions)     2007     2006   Change   Change
             
REGIONAL BANKING
                                    
Net interest income
     $ 342.0       $ 334.9     $ 7.1       2.1  
Provision for loan losses
       (24.4 )       (20.5 )     3.9       19.0  
Noninterest income
       51.5         52.1       (0.6 )     (1.2 )
Noninterest expense
       170.5         157.6       12.9       8.2  
             
Income before taxes & minority interest
       198.6         208.9       (10.3 )     (4.9 )
 
                                    
Regional Banking efficiency ratio
       42.95 %       40.33 %                
 
                                    
WEALTH ADVISORY SERVICES
                                    
Net interest income
     $ 25.3       $ 25.7     $ (0.4 )     (1.6 )
Provision for loan losses
       (3.8 )       (0.8 )     3.0       375.0  
Noninterest income
       209.6         184.0       25.6       13.9  
Noninterest expense
       188.2         166.0       22.2       13.4  
             
Income before taxes & minority interest
       42.9         42.9       —       —  
 
                                    
Wealth Advisory Services efficiency ratio
       80.05 %       79.05 %                
 
                                    
CORPORATE CLIENT SERVICES
                                    
Net interest income
     $ 13.7       $ 15.0     $ (1.3 )     (8.7 )
Provision for loan losses
       —         —       —       —  
Noninterest income
       104.0         90.4       13.6       15.0  
Noninterest expense
       85.4         75.6       9.8       13.0  
             
Income before taxes & minority interest
       32.3         29.8       2.5       8.4  
 
                                    
Corporate Client Services efficiency ratio
       72.43 %       71.59 %                
 
                                    
AFFILIATE MANAGERS *
                                    
Net interest income
     $ (12.1 )     $ (12.5 )   $ 0.4       3.2  
Provision for loan losses
       —         —       —       —  
Noninterest income
       20.9         19.6       1.3       6.6  
Noninterest expense
       —         72.4       (72.4 )     (100.0 )
             
Income before taxes & minority interest
       8.8         (65.3 )     74.1       —  
 
                                    
TOTAL WILMINGTON TRUST CORPORATION
                                    
Net interest income
     $ 368.9       $ 363.1     $ 5.8       1.6  
Provision for loan losses
       (28.2 )       (21.3 )     6.9       32.4  
Noninterest income
       386.0         346.1       39.9       11.5  
Noninterest expense
       444.1         471.6       (27.5 )     (5.8 )
             
Income before taxes & minority interest
     $ 282.6       $ 216.3     $ 66.3       30.7  
             
                             
 
                                    
Corporation efficiency ratio
       58.53 %       66.10 %                
 
*   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.