EX-99 2 w63331exv99.htm PRESS RELEASE exv99
     
[WILMINGTON TRUST LOGO] WILMINGTON TRUST
  Wilmington Trust Corporation
 
  Rodney Square North
 
  1100 North Market Street
News Release
  Wilmington, DE 19890-0001
FOR IMMEDIATE RELEASE
WILMINGTON TRUST ANNOUNCES 2008 SECOND QUARTER RESULTS
Capital position and business activity remain strong
Wilmington, Del., July 18, 2008 — Wilmington Trust Corporation (NYSE: WL) reported a loss of $19.5 million, or $0.29 per share, for the 2008 second quarter. Two events caused this loss:
•   Business conditions at affiliate money manager Roxbury Capital Management (RCM) led to a decline of $66.9 million in the value of Wilmington Trust’s investment in the firm. This amount, which was recorded as a non-cash impairment expense, reduced net income by $43.5 million, or $0.64 per share (on a diluted basis). Wilmington Trust previously disclosed this charge in a June 19, 2008, filing with the Securities and Exchange Commission.
 
•   The carrying value of preferred stocks in Wilmington Trust’s investment securities portfolio decreased by $12.6 million. Most of this decrease was in the carrying value of securities issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). This $12.6 million reduction, which was recorded as a securities loss, reduced net income by $8.0 million, or $0.12 per share (diluted).
“These charges were a function of extraordinarily unsettled equity markets,” said Ted T. Cecala, Wilmington Trust chairman and chief executive officer. “They overshadow very strong commercial and consumer loan growth, higher revenue from Corporate Client Services and Wealth Advisory Services, and other positive aspects of our second quarter results and ongoing operations.”
On an operating basis (excluding the two charges), net income for the 2008 second quarter was $32.0 million, or $0.47 per share (diluted). Management believes that operating results — those that exclude the effects of the two write-downs — present a more relevant measure of ongoing business trends and offer a better basis of comparison with prior periods. The financial statements in this report include a reconciliation of results that include the securities loss and RCM impairment expense (reported results) with those that do not (operating results).

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For the first six months of 2008, results were positive. Reported net income and earnings were $21.9 million and $0.33 per share (diluted), respectively. Operating net income and earnings were $73.4 million and $1.09 per share (diluted), respectively.
Wilmington Trust’s capital position remained strong. All regulatory capital ratios continued to exceed the amounts required by the Federal Reserve Board to be considered a well-capitalized institution. The two impairment charges did not affect client funds or the company’s ability to pay dividends.
On July 17, 2008, the Board of Directors declared a regular quarterly cash dividend of $0.345 per share. This amount reflects the 3% increase the Board approved in April 2008, which marked the 27th consecutive year that Wilmington Trust has raised its cash dividend. The quarterly dividend will be paid on August 15, 2008, to stockholders of record on August 1, 2008.
Significant factors in second quarter 2008 results
•   The Regional Banking business added $483.0 million of loans during the 2008 second quarter. This was the largest three-month increase in the company’s history. Loan balances topped $9 billion for the first time, on both a period-end and average-balance basis. Loan growth reflected the resilience of the well-diversified economy in the mid-Atlantic region, which has not experienced the levels of unemployment and housing pressure seen in some other parts of the United States.
 
•   Corporate Client Services (CCS) revenue rose 22% from the first quarter and 28% from the year-ago second quarter, with all components of the business contributing to the growth. Capital markets revenue was up 5% from the first quarter and 9% from the year-ago second quarter, as increasing demand for bankruptcy and corporate restructuring services helped counter continued weakness in capital markets activity.
 
•   CCS retirement services revenue more than doubled from prior periods due to the acquisition of AST Capital Trust Company. Second quarter 2008 results reflected two months of revenue from this acquisition, which closed on April 30, 2008.
 
•   Wealth Advisory Services revenue (WAS) increased 4% from the first quarter and 8% from the year-ago second quarter, due largely to continued growth in family office services as well as the June 2007 expansion into Boston.
 
•   New business, especially from Boston, helped WAS trust and investment advisory revenue (the portion of WAS revenue that is based on the market values of investments in client portfolios) increase 3% from the 2008 first quarter and 5% from the year-ago second quarter. The full effect of

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    this revenue growth was masked by equity market declines in the corresponding periods. For example, the Standard & Poor’s 500 Index was 3% lower than at March 31, 2008, and 15% lower than at June 30, 2007. Management uses the S&P 500 as a benchmark for comparison because its composition mirrors, to a large extent, the equities in client portfolios.
•   Advisory business revenue — revenue from CCS, WAS, and affiliate money manager Cramer Rosenthal McGlynn — accounted for 53% of total net interest and noninterest income (excluding securities losses and after amortization and the provision for loan losses). Advisory business revenue combined with banking-related fee revenue accounted for 61% of total net interest and noninterest income.
 
•   Operating expenses (excluding the impairment charges) and the increase in the number of staff members reflected expansion investments made over the past 12 months, including the June 2007 acquisitions in Boston and Luxembourg, the AST Capital Trust Company acquisition, and the addition of Regional Banking staff in Baltimore.
These factors were offset by:
•   The two impairment charges.
 
•   Net charge-offs and nonperforming asset levels that caused the provision for loan losses to increase to $18.5 million from $10.0 million for the 2008 first quarter.
 
•   Compression in the net interest margin, which fell to 3.17% due to the market interest rate environment.
 
•   A $1.1 million loss associated with RCM.
Roxbury Capital Management impairment charge

The RCM impairment charge resulted from changes in business conditions at RCM that necessitated a reassessment of the valuation of Wilmington Trust’s investment in the firm. These changes, which became apparent in the 2008 second quarter, included a decline in assets under management, lower-than-expected operating performance, and projections that RCM would incur a loss for the 2008 second quarter.
The valuation reassessment, conducted as an impairment test under U.S. generally accepted accounting principles (GAAP), determined that the RCM valuation had declined from $89.1 million to $22.2 million. The decrease in valuation — $66.9 million — was recorded as a non-cash expense for the 2008 second quarter.

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The impairment charge did not affect Wilmington Trust’s ownership position in RCM, which consists of 41.23% of RCM’s common shares and 100% of RCM’s preferred interests, which entitles Wilmington Trust to a preferred profits interest equal to 30% of RCM’s revenues.
“Following the burst of the technology stock bubble, and with continued volatility in the financial markets, the operating environment has been challenging for most growth-style managers, including Roxbury,” said Mr. Cecala. “While RCM’s mid-cap fund has experienced asset outflows, the firm has developed new products that are attracting assets, and early performance indicators are promising. We remain confident in Roxbury’s leadership and the firm’s long-term prospects for profitability.”
Investment securities impairment
Wilmington Trust maintains an investment securities portfolio for its own account to generate cash flow, to help manage interest rate risk, and to provide collateral for deposits and other liabilities. There are no client funds in this portfolio.
Perpetual preferred stocks that are held as available for sale comprise approximately 3% of the investment securities portfolio, which totaled $1.53 billion at June 30, 2008. As of that date, the value of Wilmington Trust’s investments in these preferred stocks had decreased from $54.3 million to $41.7 million. Most of this decrease was in preferred stocks issued by Fannie Mae, Freddie Mac, and two other financial institutions.
Sharp declines in the market valuations of these stocks, coupled with uncertainty about future market conditions, led management to determine that these stocks had become “other than temporarily impaired” under GAAP. The amount of the decrease — $12.6 million — was recorded as a securities loss for the 2008 second quarter.
While the value of these investments has declined, management intends to retain them in the portfolio because they pay dividends, they have investment-grade credit ratings, and their valuations are expected to normalize over the course of market cycles.

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Credit quality in the 2008 second quarter
No negative systemic credit quality trends emerged during the second quarter, but the combination of loan growth and downgrades in the internal risk rating analysis caused the provision and reserve for loan losses to increase.
Total nonperforming assets increased to $88.5 million from $77.7 million at March 31, 2008. Three credits — a commercial construction loan, a loan to a retailer, and a loan to a textile manufacturer — accounted for the majority of this $10.8 million increase. The nonperforming asset ratio was 95 basis points, the same as at year-end 2007.
Within nonperforming assets, two loans moved from renegotiated to nonaccruing status. One of these was a commercial construction loan for a single family/townhome development in Sussex County, Delaware. As part of this loan’s transfer to nonaccruing status, $3.6 million was charged off. The other transferred loan was a retail loan.
Nonperforming assets included other real estate owned (OREO) of $16.7 million, an amount that represents the net realizable value of the underlying assets. Two loans that had been nonaccruing since the 2007 third quarter accounted for most of the OREO increase, as Wilmington Trust obtained control of them through foreclosure:
•   An income-producing hotel and retail property in Ocean City, Maryland, which accounted for approximately $9.2 million of the second quarter increase in OREO.
 
•   A luxury home development in Montgomery County, Pennsylvania. In the 2008 second quarter, approximately $4.5 million associated with this property was classified as OREO and approximately $1.4 million was charged off. Since Wilmington Trust’s foreclosure, contracts have been signed on four of this development’s 14 remaining properties.
Three smaller properties in the mid-Atlantic region accounted for the remainder of the increase in OREO.
Most of the net charge-offs in the second quarter were associated with the nonperforming assets mentioned above. The net charge-off ratio was 13 basis points, an increase of 8 basis points from the 2008 first quarter. For the first six months of 2008, the net charge-off ratio was 19 basis points, or 38 basis points on an annualized basis.
Given the unpredictability of commercial loan charge-offs, management does not believe the 2008 second quarter net charge-off ratio indicates a trend, and expects the net charge-off ratio to remain within its

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historical range of 24 to 31 basis points over a 12-month period. Several factors make commercial loan charge-offs unpredictable:
•   Negotiations with commercial borrowers can affect the timing and extent of charge-offs, or avert them altogether.
 
•   Associated legal proceedings can also affect the timing and extent of charge-offs.
Loans past due 90 days or more increased from $14.6 million at March 31, 2008, to $21.8 million. Three loans — a commercial loan to a chemical manufacturer, a commercial construction loan to a tubing manufacturer, and a commercial mortgage loan to a retailer — accounted for most of this increase.
Nonperforming asset levels and the substantial growth in loan balances drove the increase in the provision for loan losses to $18.5 million from $10.0 million for the 2008 first quarter. Loan growth accounted for approximately $4.8 million of the 2008 second quarter provision. Charge-offs and downgrades in the internal risk rating analysis accounted for the remainder.
The reserve for loan losses increased to $113.1 million from $106.4 million at March 31, 2008. The loan loss reserve ratio increased 1 basis point from the 2008 first quarter to 1.22%.
The percentage of loans with pass ratings in the internal risk rating analysis improved to 96.28% from 95.62% at March 31, 2008, largely due to loan growth.
On a percentage basis, the composition of the loan portfolio remained well diversified and relatively unchanged. Additional disclosures about credit quality appear in the financial statement section of this release.
Net interest margin
The net interest margin was 3.17%. This was 20 basis points lower than for the 2008 first quarter and 56 basis points lower than for the year-ago second quarter. This compression caused net interest income to decrease from prior periods, even though loan balances were significantly higher.
The margin was affected by Federal Open Market Committee (FOMC) reductions in short-term interest rates coupled with Wilmington Trust’s asset sensitivity.

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•   Between late September 2007 and May 2008, the FOMC reduced rates seven times for a total of 325 basis points.
•   Since most of the company’s floating rate loans reprice within 30 days of a rate change, downward loan pricing adjustments began in the 2007 fourth quarter and continued in the first half of 2008. Funding costs, however, typically take 90 to 120 days to reprice. Consequently, most of the corresponding decreases in funding costs did not begin until the 2008 first quarter, and continued to lag loan repricing for most of the second quarter.
Assuming the FOMC makes no additional downward moves, management expects the pace of compression in the margin to slow substantially in the third quarter and stabilize in the fourth quarter. A rising interest rate environment would accelerate the stabilization and potentially improve the margin. More information about asset/liability matching and funding sources is in the supplemental financial statement in this release.
Additional Regional Banking details
•   Loan balances were 5% higher than for the 2008 first quarter, reaching record highs of $9.28 billion on a period-end basis and $9.09 billion on an average-balance basis.
 
•   Commercial loan balances exceeded $6 billion for the first time on an average-balance basis, reaching $6.26 billion. This was 5% higher than for the 2008 first quarter and 12% higher than for the year-ago second quarter.
 
•   The Pennsylvania and Baltimore markets accounted for approximately 50% of the increase in commercial loan balances, with the rest coming mainly from the Delaware market.
 
•   Most of the commercial loans added during the 2008 second quarter were non-real estate loans and commercial mortgage loans. Most of the increase in commercial mortgages came from existing clients who, until recent changes in the credit markets, had found more favorable financing terms with specialty mortgage lenders.
 
•   In the retail loan portfolio, consumer loan balances exceeded $1.7 billion for the first time on both a period-end and average-balance basis. On average, consumer loan balances were 5% higher than for the 2008 first quarter and 15% higher than for the year-ago second quarter.
 
•   Indirect auto loans and home equity lines of credit accounted for most of the increase in consumer loans, and most of the growth was from clients in Delaware.

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•   Core deposits, on average, reached $5.38 billion, which was 4% higher than for the 2008 first quarter and 6% higher than for the year-ago second quarter. Noninterest-bearing demand deposits and savings deposits accounted for most of this growth.
 
•   The Regional Banking business continued to benefit from the relative health and stability of the mid-Atlantic economy. Delaware’s unemployment rate for May 2008 (the most recent data available) was 4.2%, compared with the U.S. average of 5.5%. Unemployment rates in Pennsylvania, New Jersey, and Maryland were also below the U.S. average.
 
•   In Delaware’s housing market, the pace of existing home sales decreased, but median sales prices of existing homes held steady.
Conference call
Management will discuss 2008 second quarter results and outlook for the future in a conference call today at 10:00 a.m. (Eastern). Supporting materials, financial statements, and audio streaming will be available at www.wilmingtontrust.com.
Dial-in information:
•   From inside the United States: (888) 459-5609
 
•   From outside the United States: (973) 321-1024
 
•   Conference identification number: 51675313
A rebroadcast of the call will be available from 12:00 p.m. (Eastern) today until 12:00 a.m. (Eastern) on Friday, July 25, by calling (800) 642-1687 inside the United States or (706) 645-9291 outside the United States. Use conference identification number 51675313 to access the rebroadcast.
Forward-looking statements
This report contains forward-looking statements that reflect our current expectations about our future performance. These statements rely on a number of assumptions and estimates and are subject to various risks and uncertainties that could cause our actual results to differ from our expectations. Factors that could affect our future financial results include, among other things, changes in national or regional economic conditions; changes in market interest rates; significant changes in banking laws or regulations; increased competition in our businesses; higher-than-expected credit losses; the effects of acquisitions; the effects of integrating acquired entities; a substantial and permanent loss of either client accounts

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and/or assets under management at Wilmington Trust and/or our affiliate money managers, Cramer Rosenthal McGlynn and Roxbury Capital Management; unanticipated changes in regulatory, judicial, or legislative tax treatment of business transactions; and economic uncertainty created by unrest in other parts of the world.
About Wilmington Trust
Wilmington Trust Corporation (NYSE: WL) is a financial services holding company that provides Regional Banking services throughout the Delaware Valley region, Wealth Advisory Services for high-net-worth clients in 36 countries, and Corporate Client Services for institutional clients in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust Company, which was founded in 1903, is one of the largest personal trust providers in the United States and the leading retail and commercial bank in Delaware. Wilmington Trust Corporation and its affiliates have offices in Arizona, California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the Channel Islands, London, Dublin, Frankfurt, and Luxembourg. For more information, visit www.wilmingtontrust.com.
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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EXHIBIT 99
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
HIGHLIGHTS
                                                         
    Three Months Ended     Six Months Ended
      June 30,     June 30,   %     June 30,     June 30,   %
        2008     2007   Change     2008     2007   Change
                         
OPERATING RESULTS (in millions)
                                                        
Net interest income
     $ 85.2       $ 92.8       (8.2 )     $ 172.1       $ 183.7       (6.3 )
Provision for loan losses
       (18.5 )       (6.5 )     184.6         (28.4 )       (10.1 )     181.2  
Noninterest income
       93.2         96.9       (3.8 )       195.9         188.4       4.0  
Noninterest expense
       188.5         106.0       77.8         304.0         216.4       40.5  
Net income
       (19.5 )       48.9       —         21.9         91.8       (76.1 )
 
                                                        
PER SHARE DATA
                                                        
Basic net income
     $ (0.29 )     $ 0.71       —       $ 0.33       $ 1.34       (75.4 )
Diluted net income
       (0.29 )       0.70       —         0.33         1.32       (75.0 )
Dividends paid
       0.345         0.335       3.0         0.68         0.65       4.6  
Book value at period end
       15.85         15.77       0.5         15.85         15.77       0.5  
Closing price at period end
       26.44         41.51       (36.3 )       26.44         41.51       (36.3 )
Market range:
                                                        
High
       35.17         43.14       (18.5 )       35.50         44.55       (20.3 )
Low
       26.26         39.62       (33.7 )       26.26         39.62       (33.7 )
 
                                                        
AVERAGE SHARES OUTSTANDING (in thousands)
                                                        
Basic
       67,167         68,397       (1.8 )       67,117         68,464       (2.0 )
Diluted
       67,167         69,435       (3.3 )       67,390         69,546       (3.1 )
 
                                                        
AVERAGE BALANCE SHEET (in millions)
                                                        
Investment portfolio
     $ 1,598.5       $ 1,859.0       (14.0 )     $ 1,672.2       $ 1,928.5       (13.3 )
Loans
       9,085.9         8,156.3       11.4         8,861.3         8,114.4       9.2  
Earning assets
       10,812.0         10,059.9       7.5         10,627.6         10,097.4       5.3  
Core deposits
       5,377.5         5,062.4       6.2         5,269.1         5,020.6       4.9  
Stockholders’ equity
       1,119.4         1,120.2       (0.1 )       1,122.4         1,091.3       2.8  
 
                                                        
STATISTICS AND RATIOS (net income annualized)
                                                        
Return on average stockholders’ equity
       (7.01 )%       17.51 %     —         3.92 %       16.96 %     (76.9 )
Return on average assets
       (0.66 )%       1.80 %     —         0.38 %       1.69 %     (77.5 )
Net interest margin (taxable equivalent)
       3.17 %       3.73 %     (15.0 )       3.27 %       3.70 %     (11.6 )
Dividend payout ratio
       —         47.03 %     —         208.68 %       48.58 %     329.6  
Full-time equivalent headcount
       2,879         2,597       10.9         2,879         2,597       10.9  

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WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
QUARTERLY INCOME STATEMENT
                                                             
    Three Months Ended
                                                % Change From
      June 30,     Mar. 31,   Dec. 31,   Sept. 30,   June 30,   Prior   Prior
(In millions)     2008     2008   2007   2007   2007   Quarter   Year
             
NET INTEREST INCOME
                                                            
Interest income
     $ 150.0       $ 162.4     $ 177.9     $ 183.4     $ 180.8       (7.6 )     (17.0 )
Interest expense
       64.8         75.5       86.8       89.3       88.0       (14.2 )     (26.4 )
                             
Net interest income
       85.2         86.9       91.1       94.1       92.8       (2.0 )     (8.2 )
Provision for loan losses
       (18.5 )       (10.0 )     (9.2 )     (8.9 )     (6.5 )     85.0       184.6  
                             
Net interest income after provision for loan losses
       66.7         76.9       81.9       85.2       86.3       (13.3 )     (22.7 )
                             
 
                                                            
NONINTEREST INCOME
                                                            
Advisory fees:
                                                            
Wealth Advisory Services
                                                            
Trust and investment advisory fees
       40.2         39.2       42.9       40.5       38.4       2.6       4.7  
Mutual fund fees
       6.4         6.4       5.9       5.3       5.1       —       25.5  
Planning and other services
       11.2         10.1       10.3       10.3       9.9       10.9       13.1  
                             
Total Wealth Advisory Services
       57.8         55.7       59.1       56.1       53.4       3.8       8.2  
                             
Corporate Client Services
                                                            
Capital markets services
       12.2         11.6       11.4       10.2       11.2       5.2       8.9  
Entity management services
       8.6         7.9       8.1       7.4       7.4       8.9       16.2  
Retirement services
       7.5         3.2       3.3       3.0       3.2       134.4       134.4  
Investment/cash management services
       3.4         3.3       3.4       3.0       3.0       3.0       13.3  
                             
Total Corporate Client Services
       31.7         26.0       26.2       23.6       24.8       21.9       27.8  
                             
Cramer Rosenthal McGlynn
       5.5         4.0       5.5       4.2       6.3       37.5       (12.7 )
Roxbury Capital Management
       (1.1 )       0.3       0.4       0.4       0.2       —       —  
                             
Advisory fees
       93.9         86.0       91.2       84.3       84.7       9.2       10.9  
Amortization of affiliate intangibles
       (2.0 )       (1.2 )     (1.3 )     (1.2 )     (1.1 )     66.7       81.8  
                             
Advisory fees after amortization of affiliate intangibles
       91.9         84.8       89.9       83.1       83.6       8.4       9.9  
                             
Service charges on deposit accounts
       7.5         7.6       7.3       7.2       7.0       (1.3 )     7.1  
Other noninterest income
       6.3         10.4       5.3       4.7       6.2       (39.4 )     1.6  
Securities gains/(losses)
       (12.5 )       —       0.2       (0.2 )     0.1       —       —  
                             
Total noninterest income
       93.2         102.8       102.7       94.8       96.9       (9.3 )     (3.8 )
                             
 
                                                            
Net interest and noninterest income
       159.9         179.7       184.6       180.0       183.2       (11.0 )     (12.7 )
                             
 
                                                            
NONINTEREST EXPENSE
                                                            
Salaries and wages
       48.3         45.7       45.0       44.1       41.9       5.7       15.3  
Incentives and bonuses
       13.2         14.5       11.5       10.0       11.4       (9.0 )     15.8  
Employment benefits
       12.4         14.3       12.0       12.7       11.5       (13.3 )     7.8  
Net occupancy
       8.0         7.5       7.4       7.3       6.8       6.7       17.6  
Furniture, equipment, and supplies
       10.3         9.8       9.7       10.0       9.8       5.1       5.1  
Other noninterest expense:
                                                            
Advertising and contributions
       3.0         2.1       3.2       2.0       2.8       42.9       7.1  
Servicing and consulting fees
       3.2         2.5       3.4       2.6       2.8       28.0       14.3  
Subadvisor expense
       3.5         2.7       2.8       2.7       2.5       29.6       40.0  
Travel, entertainment, and training
       2.9         2.4       3.3       2.8       2.4       20.8       20.8  
Originating and processing fees
       2.6         2.4       2.9       2.8       2.7       8.3       (3.7 )
Other expense
       14.2         11.6       15.7       13.8       11.4       22.4       24.6  
                             
Total other noninterest expense
       29.4         23.7       31.3       26.7       24.6       24.1       19.5  
                             
Total noninterest expense before impairmemt
       121.6         115.5       116.9       110.8       106.0       5.3       14.7  
Impairment write-down
       66.9         —       —       —       —       —       —  
                             
Total noninterest expense
       188.5         115.5       116.9       110.8       106.0       63.2       77.8  
                             
Income before income taxes and minority interest
       (28.6 )       64.2       67.7       69.2       77.2       —       —  
Applicable income taxes
       (9.3 )       22.7       23.6       22.9       28.3       —       —  
                             
Net income before minority interest
       (19.3 )       41.5       44.1       46.3       48.9       —       —  
Minority interest
       0.2         0.1       0.1       0.1       —       100.0       —  
                             
Net income
     $ (19.5 )     $ 41.4     $ 44.0     $ 46.2     $ 48.9       —       —  
                             

11

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
YEAR-TO-DATE INCOME STATEMENT
                             
    Six Months Ended
      June 30,     June 30,   %
(In millions)     2008     2007   Change
             
NET INTEREST INCOME
                            
Interest income
     $ 312.3       $ 360.9       (13.5 )
Interest expense
       140.2         177.2       (20.9 )
                     
Net interest income
       172.1         183.7       (6.3 )
Provision for loan losses
       (28.4 )       (10.1 )     181.2  
                     
Net interest income after provision for loan losses
       143.7         173.6       (17.2 )
                     
 
                            
NONINTEREST INCOME
                            
Advisory fees:
                            
Wealth Advisory Services
                            
Trust and investment advisory fees
       79.5         75.4       5.4  
Mutual fund fees
       12.8         10.1       26.7  
Planning and other services
       21.3         19.4       9.8  
                     
Total Wealth Advisory Services
       113.6         104.9       8.3  
                     
Corporate Client Services
                            
Capital markets services
       23.8         21.4       11.2  
Entity management services
       16.4         14.5       13.1  
Retirement services
       10.7         6.6       62.1  
Investment/cash management services
       6.8         6.3       7.9  
                     
Total Corporate Client Services
       57.7         48.8       18.2  
                     
Cramer Rosenthal McGlynn
       9.5         11.0       (13.6 )
Roxbury Capital Management
       (0.8 )       0.3       —  
                     
Advisory fees
       180.0         165.0       9.1  
Amortization of affiliate intangibles
       (3.3 )       (2.2 )     50.0  
                     
Advisory fees after amortization of affiliate intangibles
       176.7         162.8       8.5  
                     
Service charges on deposit accounts
       15.0         13.8       8.7  
Other noninterest income
       16.7         11.7       42.7  
Securities gains/(losses)
       (12.5 )       0.1       —  
                     
Total noninterest income
       195.9         188.4       4.0  
                     
 
                            
Net interest and noninterest income
       339.6         362.0       (6.2 )
                     
 
                            
NONINTEREST EXPENSE
                            
Salaries and wages
       94.0         83.7       12.3  
Incentives and bonuses
       27.7         25.4       9.1  
Employment benefits
       26.7         26.2       1.9  
Net occupancy
       15.5         13.6       14.0  
Furniture, equipment, and supplies
       20.1         19.4       3.6  
Other noninterest expense:
                            
Advertising and contributions
       5.1         5.5       (7.3 )
Servicing and consulting fees
       5.7         5.2       9.6  
Subadvisor expense
       6.1         5.0       22.0  
Travel, entertainment, and training
       5.3         4.6       15.2  
Originating and processing fees
       5.0         5.3       (5.7 )
Other expense
       25.9         22.5       15.1  
                     
Total other noninterest expense
       53.1         48.1       10.4  
                     
Total noninterest expense before impairment
       237.1         216.4       9.6  
Impairment write-down
       66.9         —       —  
                     
Total noninterest expense
       304.0         216.4       40.5  
                     
Income before income taxes and minority interest
       35.6         145.6       (75.5 )
Applicable income taxes
       13.4         53.1       (74.8 )
                     
Net income before minority interest
       22.2         92.5       (76.0 )
Minority interest
       0.3         0.7       (57.1 )
                     
Net income
     $ 21.9       $ 91.8       (76.1 )
                     

12

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
COMPARISON OF RESULTS WITH AND WITHOUT THE IMPAIRMENT WRITE-DOWN
                                                 
    Three months ended June 30, 2008   Six months ended June 30, 2008
    With   Without           With   Without    
    impairment   impairment   Impairment   impairment   impairment   Impairment
OPERATING RESULTS (in millions)
                                                
Net interest income
   $ 85.2     $ 85.2     $ —     $ 172.1     $ 172.1     $ —  
Provision for loan losses
     (18.5 )     (18.5 )     —       (28.4 )     (28.4 )     —  
Noninterest income
     93.2       105.8       (12.6 )     195.9       208.5       (12.6 )
Noninterest expense
     188.5       121.6       66.9       304.0       237.1       66.9  
 
Income before taxes and minority interest
     (28.6 )     50.9       (79.5 )     35.6       115.1       (79.5 )
Applicable income taxes
     (9.3 )     18.7       (28.0 )     13.4       41.4       (28.0 )
 
Net income before minority interest
     (19.3 )     32.2       (51.5 )     22.2       73.7       (51.5 )
Minority interest
     0.2       0.2       —       0.3       0.3       —  
 
Net income
   $ (19.5 )   $ 32.0     $ (51.5 )   $ 21.9     $ 73.4     $ (51.5 )
     
 
                                                
PER SHARE DATA
                                                
Diluted shares outstanding (in millions)
     67.2       67.4       (0.2 )     67.4       67.4       —  
Per-share earnings
   $ (0.29 )   $ 0.47     $ (0.76 )   $ 0.33     $ 1.09     $ (0.76 )
 
                                                
STATISTICS AND RATIOS (dollars in millions)
                                                
Total assets, on average
   $ 11,825.4     $ 11,834.1     $ (8.7 )   $ 11,594.3     $ 11,598.7     $ (4.4 )
Stockholders’ equity, on average
     1,119.4       1,125.1       (5.7 )     1,122.4       1,125.3       (2.9 )
Return on average assets
     (0.66 )%     1.09 %     —       0.38 %     1.27 %     (0.89 )%
Return on equity
     (7.01 )%     11.44 %     —       3.92 %     13.12 %     (9.19 )%
 
                                                
Net interest before provision and noninterest income
   $ 178.4     $ 191.0     $ (12.6 )   $ 368.0     $ 380.6     $ (12.6 )
Tax equivalent interest income
     0.8       0.8       —       1.6       1.6       —  
 
 
   $ 179.2     $ 191.8     $ (12.6 )   $ 369.6     $ 382.2     $ (12.6 )
Noninterest expense
   $ 188.5     $ 121.6     $ 66.9     $ 304.0     $ 237.1     $ 66.9  
     
Efficiency ratio
     105.19 %     63.40 %     41.79 %     82.25 %     62.04 %     20.21 %

13

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
STATEMENT OF CONDITION
                                                             
                                                % Change From
      June 30,     Mar. 31,   Dec. 31,   Sept. 30,   June 30,   Prior   Prior
(In millions)     2008     2008   2007   2007   2007   Quarter   Year
             
ASSETS
                                                            
Cash and due from banks
     $ 249.3       $ 291.0     $ 260.5     $ 286.3     $ 231.8       (14.3 )     7.5  
                             
Interest-bearing deposits in other banks
       167.8         3.7       4.4       2.9       3.4       N/M       N/M  
                             
Federal funds sold and securities purchased under agreements to resell
       110.7         264.6       129.6       13.6       14.6       (58.2 )     N/M  
                             
Investment securities:
                                                            
U.S. Treasury
       48.6         56.8       60.2       101.9       103.8       (14.4 )     (53.2 )
Government agencies
       473.5         473.9       647.0       701.4       634.8       (0.1 )     (25.4 )
Obligations of state and political subdivisions
       7.3         7.3       17.8       18.5       19.0       —       (61.6 )
Preferred stock
       41.7         43.3       44.9       62.6       63.8       (3.7 )     (34.6 )
Mortgage-backed securities
       702.7         740.1       730.6       581.9       605.1       (5.1 )     16.1  
Other securities
       252.8         307.5       346.3       365.0       380.4       (17.8 )     (33.5 )
                             
Total investment securities
       1,526.6         1,628.9       1,846.8       1,831.3       1,806.9       (6.3 )     (15.5 )
                             
FHLB and FRB stock, at cost
       22.4         22.8       22.4       20.1       7.1       (1.8 )     215.5  
                             
Loans:
                                                            
Commercial, financial, and agricultural
       2,808.6         2,654.4       2,594.9       2,529.0       2,483.7       5.8       13.1  
Real estate — construction
       1,847.0         1,809.7       1,780.4       1,759.9       1,747.0       2.1       5.7  
Mortgage — commercial
       1,704.0         1,593.8       1,463.4       1,388.8       1,390.5       6.9       22.5  
                             
Total commercial loans
       6,359.6         6,057.9       5,838.7       5,677.7       5,621.2       5.0       13.1  
                             
Mortgage — residential
       561.1         559.6       562.0       566.3       563.1       0.3       (0.4 )
Consumer
       1,790.3         1,679.5       1,571.6       1,546.0       1,517.0       6.6       18.0  
Secured with liquid collateral
       569.4         500.4       503.5       546.5       573.4       13.8       (0.7 )
                             
Total retail loans
       2,920.8         2,739.5       2,637.1       2,658.8       2,653.5       6.6       10.1  
                             
Total loans net of unearned income
       9,280.4         8,797.4       8,475.8       8,336.5       8,274.7       5.5       12.2  
Reserve for loan losses
       (113.1 )       (106.4 )     (101.1 )     (101.6 )     (97.5 )     6.3       16.0  
                             
Net loans
       9,167.3         8,691.0       8,374.7       8,234.9       8,177.2       5.5       12.1  
                             
Premises and equipment
       154.1         153.2       152.1       148.9       148.6       0.6       3.7  
Goodwill
       345.2         332.4       330.0       329.0       328.2       3.9       5.2  
Other intangibles
       49.7         37.0       38.3       38.7       40.1       34.3       23.9  
Other assets
       340.2         279.1       326.9       281.4       273.1       21.9       24.6  
                             
Total assets
     $ 12,133.3       $ 11,703.7     $ 11,485.7     $ 11,187.1     $ 11,031.0       3.7       10.0  
                             
 
                                                            
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                            
Deposits:
                                                            
Noninterest-bearing demand
     $ 994.5       $ 778.6     $ 966.2     $ 827.8     $ 812.7       27.7       22.4  
Interest-bearing:
                                                            
Savings
       798.9         780.2       659.8       580.1       497.1       2.4       60.7  
Interest-bearing demand
       2,692.3         2,502.6       2,471.8       2,346.7       2,483.1       7.6       8.4  
Certificates under $100,000
       977.6         1,012.0       1,011.4       1,002.4       1,019.8       (3.4 )     (4.1 )
Local certificates $100,000 and over
       278.0         316.1       356.3       389.6       370.8       (12.1 )     (25.0 )
                             
Total core deposits
       5,741.3         5,389.5       5,465.5       5,146.6       5,183.5       6.5       10.8  
National certificates $100,000 and over
       2,874.4         2,676.5       2,392.0       2,353.1       2,979.3       7.4       (3.5 )
                             
Total deposits
       8,615.7         8,066.0       7,857.5       7,499.7       8,162.8       6.8       5.5  
                             
Short-term borrowings:
                                                            
Federal funds purchased and securities sold under agreements to repurchase
       1,695.4         1,777.2       1,775.3       1,915.5       1,149.4       (4.6 )     47.5  
U.S. Treasury demand
       70.3         62.5       77.3       40.9       2.5       12.5       N/M  
Line of credit and other debt
       10.0         134.9       139.5       134.0       148.2       (92.6 )     (93.3 )
                             
Total short-term borrowings
       1,775.7         1,974.6       1,992.1       2,090.4       1,300.1       (10.1 )     36.6  
                             
Other liabilities
       207.5         250.9       247.9       231.4       228.8       (17.3 )     (9.3 )
Long-term debt
       467.8         268.5       267.8       267.5       267.0       74.2       75.2  
                             
Total liabilities
       11,066.7         10,560.0       10,365.3       10,089.0       9,958.7       4.8       11.1  
                             
Minority interest
       0.2         0.2       0.1       0.1       0.2       —       —  
Stockholders’ equity
       1,066.4         1,143.5       1,120.3       1,098.0       1,072.1       (6.7 )     (0.5 )
                             
Total liabilities and stockholders’ equity
     $ 12,133.3       $ 11,703.7     $ 11,485.7     $ 11,187.1     $ 11,031.0       3.7       10.0  
                             

14

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
AVERAGE STATEMENT OF CONDITION
                                                             
      2008     2008   2007   2007   2007   % Change From
      Second     First   Fourth   Third   Second   Prior   Prior
(In millions)     Quarter     Quarter   Quarter   Quarter   Quarter   Quarter   Year
             
ASSETS
                                                            
Cash and due from banks
     $ 251.7       $ 216.9     $ 209.6     $ 208.1     $ 203.4       16.0       23.7  
                             
Interest-bearing deposits in other banks
       63.1         3.4       3.7       4.1       3.9       N/M       N/M  
                             
Federal funds sold and securities purchased under agreements to resell
       38.0         35.1       28.2       23.2       33.6       8.3       13.1  
                             
Investment securities:
                                                            
U.S. Treasury
       50.9         60.5       80.5       103.3       105.0       (15.9 )     (51.5 )
Government agencies
       497.5         553.2       619.5       631.4       652.9       (10.1 )     (23.8 )
Obligations of state and political subdivisions
       7.3         14.3       18.2       18.7       12.6       (49.0 )     (42.1 )
Preferred stock
       44.8         46.0       49.0       62.5       68.5       (2.6 )     (34.6 )
Mortgage-backed securities
       725.2         734.4       697.0       590.4       633.9       (1.3 )     14.4  
Other securities
       272.8         337.5       359.4       370.6       386.1       (19.2 )     (29.3 )
                             
Total investment securities
       1,598.5         1,745.9       1,823.6       1,776.9       1,859.0       (8.4 )     (14.0 )
                             
FHLB and FRB stock, at cost
       26.5         22.4       23.2       10.5       7.1       18.3       273.2  
                             
Loans:
                                                            
Commercial, financial, and agricultural
       2,765.4         2,602.1       2,521.5       2,454.9       2,500.1       6.3       10.6  
Real estate — construction
       1,837.1         1,804.9       1,790.2       1,769.2       1,696.7       1.8       8.3  
Mortgage — commercial
       1,654.1         1,528.2       1,423.5       1,387.3       1,376.9       8.2       20.1  
                             
Total commercial loans
       6,256.6         5,935.2       5,735.2       5,611.4       5,573.7       5.4       12.3  
                             
Mortgage — residential
       560.5         562.8       564.5       564.4       553.9       (0.4 )     1.2  
Consumer
       1,729.8         1,653.1       1,556.5       1,533.0       1,503.9       4.6       15.0  
Secured with liquid collateral
       539.0         485.7       499.5       551.5       524.8       11.0       2.7  
                             
Total retail loans
       2,829.3         2,701.6       2,620.5       2,648.9       2,582.6       4.7       9.6  
                             
Total loans net of unearned income
       9,085.9         8,636.8       8,355.7       8,260.3       8,156.3       5.2       11.4  
Reserve for loan losses
       (104.1 )       (99.8 )     (99.4 )     (95.8 )     (93.3 )     4.3       11.6  
                             
Net loans
       8,981.8         8,537.0       8,256.3       8,164.5       8,063.0       5.2       11.4  
                             
Premises and equipment
       154.4         152.9       150.9       148.5       148.6       1.0       3.9  
Goodwill
       393.1         329.9       329.1       328.3       307.8       19.2       27.7  
Other intangibles
       36.8         37.7       38.2       39.4       34.0       (2.4 )     8.2  
Other assets
       281.5         282.0       263.2       259.8       261.3       (0.2 )     7.7  
                             
Total assets
     $ 11,825.4       $ 11,363.2     $ 11,126.0     $ 10,963.3     $ 10,921.7       4.1       8.3  
                             
 
                                                            
LIABILITIES AND STOCKHOLDERS’ EQUITY                                                  
Deposits:
                                                            
Noninterest-bearing demand
     $ 870.2       $ 726.4     $ 723.5     $ 714.9     $ 702.6       19.8       23.9  
Interest-bearing:
                                                            
Savings
       795.2         714.8       627.3       540.9       463.4       11.2       71.6  
Interest-bearing demand
       2,417.0         2,368.2       2,347.6       2,405.8       2,454.7       2.1       (1.5 )
Certificates under $100,000
       988.2         1,016.0       1,005.4       1,007.7       1,014.5       (2.7 )     (2.6 )
Local certificates $100,000 and over
       306.9         335.3       390.7       376.2       427.2       (8.5 )     (28.2 )
                             
Total core deposits
       5,377.5         5,160.7       5,094.5       5,045.5       5,062.4       4.2       6.2  
National certificates $100,000 and over
       2,719.2         2,770.5       2,369.1       2,817.9       2,853.8       (1.9 )     (4.7 )
                             
Total deposits
       8,096.7         7,931.2       7,463.6       7,863.4       7,916.2       2.1       2.3  
                             
Short-term borrowings:
                                                            
Federal funds purchased and securities sold under agreements to repurchase
       1,847.9         1,625.6       1,907.4       1,370.4       1,270.0       13.7       45.5  
U.S. Treasury demand
       11.6         12.8       12.3       11.0       10.4       (9.4 )     11.5  
Line of credit and other debt
       50.1         136.3       136.8       139.9       83.2       (63.2 )     (39.8 )
                             
Total short-term borrowings
       1,909.6         1,774.7       2,056.5       1,521.3       1,363.6       7.6       40.0  
                             
Other liabilities
       232.1         263.5       244.4       223.4       214.2       (11.9 )     8.4  
Long-term debt
       467.4         268.2       267.7       267.2       307.3       74.3       52.1  
                             
Total liabilities
       10,705.8         10,237.6       10,032.2       9,875.3       9,801.3       4.6       9.2  
                             
Minority interest
       0.2         0.1       0.1       0.2       0.2       100.0       —  
Stockholders’ equity
       1,119.4         1,125.5       1,093.7       1,087.8       1,120.2       (0.5 )     (0.1 )
                             
Total liabilities and stockholders’ equity
     $ 11,825.4       $ 11,363.2     $ 11,126.0     $ 10,963.3     $ 10,921.7       4.1       8.3  
                             

15

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
YIELDS AND RATES
                                             
      2008       2008     2007     2007     2007  
      Second       First     Fourth     Third     Second  
YIELDS/RATES (tax-equivalent basis)     Quarter       Quarter     Quarter     Quarter     Quarter  
             
EARNING ASSETS:
                                            
Interest-bearing time deposits in other banks
       2.09 %       6.33 %     8.08 %     4.95 %     8.32 %
Federal funds sold and securities purchased under agreements to resell
       2.01         3.15       4.18       6.60       4.82  
 
                                            
Total investment securities
       4.69         4.95       5.03       4.94       4.96  
 
                                            
FHLB and FRB stock, at cost
       3.00         5.38       2.29       4.55       10.21  
 
                                            
Commercial, financial, and agricultural
       5.94         6.64       7.39       7.91       7.90  
Real estate — construction
       5.38         6.53       7.82       8.41       8.56  
Mortgage — commercial
       5.87         6.72       7.64       8.04       8.02  
Total commercial loans
       5.76         6.63       7.59       8.10       8.13  
 
                                            
Mortgage — residential
       5.83         5.82       5.80       5.74       5.87  
Consumer
       6.34         6.92       7.33       7.48       7.44  
Secured with liquid collateral
       4.09         5.27       6.51       6.88       6.83  
Total retail loans
       5.81         6.40       6.84       6.98       6.98  
 
                                            
Total loans
       5.77         6.56       7.36       7.74       7.77  
 
                                            
Total earning assets
       5.56         6.27       6.92       7.23       7.23  
 
                                            
FUNDS USED TO SUPPORT EARNING ASSETS:
                                            
 
                                            
Core deposits
                                            
Savings
       2.17         2.65       2.92       2.63       2.07  
Interest-bearing demand
       0.75         1.05       1.26       1.45       1.44  
Certificates under $100,000
       3.64         4.18       4.27       4.23       4.45  
Local certificates $100,000 and over
       3.82         4.44       4.85       4.78       4.55  
Core interest-bearing deposits
       1.85         2.28       2.51       2.54       2.51  
 
                                            
National certificates $100,000 and over
       3.53         4.44       5.23       5.41       5.40  
 
                                            
Total interest-bearing deposits
       2.48         3.11       3.46       3.67       3.66  
 
                                            
Short-term borrowings
       2.47         3.53       4.64       5.00       5.09  
 
                                            
Long-term debt
       7.25         6.29       5.78       6.02       6.43  
 
                                            
Total interest-bearing liabilities
       2.71         3.28       3.80       3.97       3.97  
 
                                            
Total funds used to support earning assets
       2.39         2.90       3.36       3.50       3.50  
 
                                            
Net interest margin (tax-equivalent basis)
       3.17         3.37       3.56       3.73       3.73  
 
                                            
Year-to-date net interest margin
       3.27         3.37       3.67       3.71       3.70  
 
                                            
Prime rate
       5.08         6.27       7.58       8.18       8.25  
 
                                            
Tax-equivalent net interest income (in millions)
     $ 86.0       $ 87.7     $ 92.0     $ 95.1     $ 93.8  
 
                                            
Average earning assets at historical cost
     $ 10,896.5       $ 10,468.0     $ 10,258.9     $ 10,113.9     $ 10,082.8  
Average fair valuation adjustment on investment securities available for sale
       (84.5 )       (24.4 )     (24.5 )     (38.9 )     (22.9 )
 
                                  
Average earning assets
    $ 10,812.0       $ 10,443.6     $ 10,234.4     $ 10,075.0     $ 10,059.9  
 
                                  
Average rates are calculated using average balances based on historical cost and do not reflect fair valuation adjustments.

16

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
CREDIT QUALITY
                                             
    Three Months Ended
      June 30,     Mar. 31,   Dec. 31,   Sept. 30, June 30,
(Dollars in millions)     2008     2008   2007   2007 2007
             
NONPERFORMING ASSETS AT PERIOD-END
                                            
Nonaccruing loans:
                                            
Commercial, financial, and agricultural
     $ 27.0       $ 25.6     $ 23.8     $ 12.1     $ 11.0  
Commercial real estate — construction
       22.6         9.9       9.9       21.2       13.6  
Commercial mortgage
       8.1         8.2       7.1       8.7       9.1  
Consumer and other retail
       13.9         9.7       7.0       12.1       11.6  
             
Total nonaccruing loans
       71.6         53.4       47.8       54.1       45.3  
Renegotiated loans
       0.2         24.1       23.7       19.2       0.2  
             
Total nonaccruing loans and renegotiated loans
       71.8         77.5       71.5       73.3       45.5  
Other real estate owned (OREO)
       16.7         0.2       9.1       0.2       0.2  
             
Total nonperforming assets
       88.5         77.7       80.6       73.5       45.7  
 
                                            
Loans past due 90 days or more:
                                            
Commercial, financial, and agricultural
       6.1         3.7       2.4       9.4       6.4  
Commercial real estate — construction
       0.6         0.3       0.7       0.7       1.0  
Commercial mortgage
       1.3         —       1.3       1.1       1.4  
Consumer and other retail
       13.8         10.6       9.3       5.8       4.8  
             
Total loans past due 90 days or more
       21.8         14.6       13.7       17.0       13.6  
 
                                            
NET CHARGE-OFFS
                                            
Loans charged off:
                                            
Commercial, financial, and agricultural
     $ 2.9       $ 0.7     $ 1.3     $ 0.6     $ 1.4  
Commercial real estate — construction
       5.2         0.3       2.3       0.6       —  
Commercial mortgage
       0.1         —       1.2       0.1       —  
Consumer and other retail
       6.0         5.4       6.7       5.5       4.4  
             
Total loans charged off
       14.2         6.4       11.5       6.8       5.8  
Recoveries on loans previously charged off:
                                            
Commercial, financial, and agricultural
       0.2         0.1       —       0.2       0.3  
Commercial real estate — construction
       —         —       —       —       —  
Commercial mortgage
       0.8         —       —       —       —  
Consumer and other retail
       1.4         1.6       1.8       1.8       2.0  
             
Total recoveries
       2.4         1.7       1.8       2.0       2.3  
             
Net loans charged off
       11.8         4.7       9.7       4.8       3.5  
 
                                            
RATIOS
                                            
Period-end reserve to loans
       1.22 %       1.21 %     1.19 %     1.22 %     1.18 %
Period-end non-performing assets to loans
       0.95         0.88       0.95       0.88       0.55  
Period-end loans past due 90 days to total loans
       0.23         0.17       0.16       0.20       0.16  
Quarterly net charge-offs to average loans (not annualized)
       0.13         0.05       0.12       0.06       0.04  
Year-to-date net charge-offs to average loans
       0.19         0.05       0.26       0.14       0.08  
 
                                            
INTERNAL RISK RATING
                                            
Pass
       96.28 %       95.62 %     96.03 %     96.01 %     96.81 %
Watchlisted
       2.29         2.98       2.69       2.62       2.27  
Substandard
       1.42         1.39       1.27       1.36       0.91  
Doubtful
       0.01         0.01       0.01       0.01       0.01  
 
                                            
LOAN PORTFOLIO COMPOSITION
                                            
Commercial, financial, and agricultural
       30 %       30 %     31 %     30 %     30 %
Commercial real estate — construction
       20         21       21       21       21  
Commercial mortgage
       18         18       17       17       17  
Residential mortgage
       6         6       6       7       7  
Consumer
       20         19       19       18       18  
Secured by liquid collateral
       6         6       6       7       7  
 
                                            
COMMERCIAL REAL ESTATE — CONSTRUCTION DETAIL
                                            
Project type:
                                            
Residential real estate construction
       53 %       53 %     52 %     54 %     53 %
Land development
       22         21       21       19       18  
Retail and office
       13         13       14       13       13  
Owner-occupied
       4         5       5       6       6  
Multi-family
       2         2       2       2       2  
Other
       6         6       6       6       8  
Geographic location:
                                            
Delaware
       61 %       61 %     61 %     59 %     59 %
Pennsylvania
       24         25       25       27       26  
Maryland
       6         6       7       7       8  
New Jersey
       6         5       4       4       5  
Other
       3         3       3       3       2  

17

 

WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
SUPPLEMENTAL INFORMATION
                                                             
      Three Months Ended
                                                % Change From:
      June 30,     Mar. 31,   Dec. 31,   Sept. 30,   June 30,   Prior   Prior
      2008     2008   2007   2007   2007   Quarter   Year
             
NET INCOME
                                                            
Net income per share
                                                            
Basic
     $ (0.29 )     $ 0.62     $ 0.66     $ 0.68     $ 0.71       —       —  
Diluted
       (0.29 )       0.62       0.65       0.67       0.70       —       —  
Weighted average shares outstanding (in thousands)
                                                            
Basic
       67,167         67,067       67,174       67,698       68,397                  
Diluted
       67,167         67,338       67,749       68,582       69,435                  
Net income as a percentage of:
                                                            
Average assets
       (0.66 )%       1.47 %     1.57 %     1.67 %     1.80 %                
Average stockholders’ equity
       (7.01 )       14.79       15.96       16.85       17.51                  
 
                                                            
ASSETS UNDER MANAGEMENT * (in billions)
                                                            
Wilmington Trust
     $ 37.5       $ 35.0     $ 35.9     $ 34.5     $ 33.2       7.1       13.0  
Roxbury Capital Management
       2.1         2.1       2.5       2.8       3.0       —       (30.0 )
Cramer Rosenthal McGlynn
       11.2         10.9       11.4       11.8       11.9       2.8       (5.9 )
                             
Combined assets under management
     $ 50.8       $ 48.0     $ 49.8     $ 49.1     $ 48.1       5.8       5.6  
                             
 
                                                            
* 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
     $ 146.6       $ 120.7     $ 124.3     $ 121.6     $ 120.1       21.5       22.1  
** Includes Wilmington Trust assets under management
 
                                                            
INVESTMENT MIX OF ASSETS MANAGED BY WILMINGTON TRUST
                                                            
Equities
       44 %       45 %     47 %     49 %     49 %                
Fixed income
       24         22       23       23       22                  
Other
       32         33       30       28       29                  
 
                                                            
CAPITAL (in millions, except per share amounts)
                                                            
Average stockholders’ equity
     $ 1,119.4       $ 1,125.5     $ 1,093.7     $ 1,087.8     $ 1,120.2       (0.5 )     (0.1 )
Period-end primary capital
       1,179.5         1,249.9       1,221.4       1,199.6       1,169.6       (5.6 )     0.8  
Per share:
                                                            
Book value
       15.85         16.99       16.70       16.23       15.77       (6.7 )     0.5  
Quarterly dividends declared
       0.345         0.335       0.335       0.335       0.335       3.0       3.0  
Year-to-date dividends declared
       0.68         0.335       1.32       0.985       0.65                  
Average stockholders’ equity to assets
       9.47 %       9.90 %     9.83 %     9.92 %     10.26 %                
Total risk-based capital ratio
       11.14         11.10       11.21       11.54       11.54                  
Tier 1 risk-based capital ratio
       6.74         7.67       7.73       7.96       8.00                  
Tier 1 leverage capital ratio
       6.45         7.17       7.18       7.31       7.37                  
 
                                                            
INVESTMENT SECURITIES PORTFOLIO
                                                            
Average life (in years)
       6.16         4.47       4.45       4.66       5.08                  
Average duration
       2.58         1.90       1.97       1.85       2.19                  
Percentage invested in fixed rate instruments
       83 %       81 %     82 %     81 %     80 %                
 
                                                            
FUNDING (on average)
                                                            
Percentage from core deposits
       54 %       53 %     54 %     57 %     58 %                
Percentage from national funding
       27         29       25       27       27                  
Percentage from short-term borrowings
       19         18       21       16       15                  
 
                                                            
ASSET — LIABILITY MATCHING
                                                            
As a percentage of total balances at period-end:
                                                            
Loans outstanding with floating rates
       72 %       71 %     71 %     71 %     73 %                
Commercial loans with floating rates
       87         86       85       86       87                  
Commercial loans tied to a prime rate
       56         58       59       60       61                  
Commercial loans tied to the 30-day LIBOR
       38         35       36       35       33                  
 
                                                            
National CDs and short-term borrowings maturing in 90 days or less
       92 %       83 %     78 %     80 %     76 %                
 
                                                            
FULL-TIME EQUIVALENT HEADCOUNT
                                                            
Full-time equivalent headcount
       2,879         2,704       2,672       2,658       2,597                  

18