Wilmington Trust Corporation (NYSE:WL) reported today that net
income for the 2006 fourth quarter was $47.5 million and earnings
per share (on a diluted basis) were $0.68 per share. "Loan
balances, Wealth Advisory Services revenue, and Corporate Client
Services revenue reached record-high levels for the fourth quarter
and full year, and credit quality remained stable. Business growth
in the fourth quarter was masked by a decline in the net interest
margin, which decreased as deposit rates rose and spreads narrowed
on investments that collateralize short-term borrowings," said Ted
T. Cecala, Wilmington Trust's chairman and chief executive officer.
"The results from each of our businesses reflect how our expansion
investments are generating positive returns and creating additional
momentum." For the 2006 full year, net income totaled $143.8
million and earnings per share (diluted) were $2.06. Results for
2006 were dampened by the non-cash goodwill impairment write-down
the company recorded during the third quarter against its
investment in affiliate money manager Roxbury Capital Management
(RCM). This charge reduced net income by $41.7 million and earnings
per share (diluted) by $0.60 per share. Absent this charge,
operating net income for 2006 would have been $185.5 million, 11%
higher than for 2005. Earnings per share (diluted) would have been
$2.66 per share, a 9% increase. This release contains amounts that
exclude the non-cash impairment write-down in cases where
management believes doing so offers investors more relevant
information about business trends and the company's continuing
operations. PERFORMANCE HIGHLIGHTS Two balance sheet benchmarks
were surpassed: At year-end 2006, total assets exceeded $11 billion
for the first time and loan balances topped $8 billion for the
first time. At $7.91 billion for the 2006 fourth quarter and $7.70
billion for the full year, on average, loan balances were 8% and 9%
higher, respectively. Credit quality remained stable and the
percentage of loans with pass ratings continued to exceed 97%. The
Wealth Advisory and Corporate Client Services businesses recorded
double-digit increases in revenue for the 2006 fourth quarter and
full year. Value-style affiliate manager Cramer Rosenthal McGlynn
had assets under management of $10.6 billion at year-end 2006, a
record high. Investments in new offices, products, services, and
people throughout the year caused expenses for the 2006 fourth
quarter to be 11% higher than for the year-ago fourth quarter, and
8% higher for the full year (excluding the impairment write-down).
Including the impairment write-down, expenses for the 2006 full
year were 27% higher than for 2005. The 2006 full-year efficiency
ratios for Regional Banking, Wealth Advisory Services, and
Corporate Client Services improved from their 2005 levels. The net
interest margin for the 2006 fourth quarter was 3.65%. This was 9
basis points lower than for the year-ago fourth quarter and 18
basis points lower than for the 2006 third quarter. During the 2006
fourth quarter, the company added approximately $277 million of
investments to provide collateral for short-term borrowings. The
narrow spreads on these transactions contributed approximately 10
basis points of the margin decline. For the 2006 full year, the net
interest margin was 3.79%, which was 8 basis points higher than for
2005. This happened mainly because loan repricing outpaced deposit
repricing during the first three quarters of 2006. On an annualized
basis, fourth quarter 2006 results produced a return on average
assets of 1.73% and a return on average equity of 17.66%. The
corresponding returns for the fourth quarter of 2005 were 1.82% and
18.77%, respectively. For the 2006 full year, the return on average
assets was 1.37% and the return on average equity was 13.58%.
Excluding the non-cash charge for RCM, the full-year return on
average assets would have been 1.76% and the return on average
equity would have been 17.34%. The corresponding returns for 2005
were 1.70% and 17.59%, respectively. CASH DIVIDEND DECLARED On
January 18, 2007, the Board of Directors declared a regular
quarterly cash dividend of $0.315 per share. The quarterly dividend
will be paid on February 15, 2007, to shareholders of record on
February 1, 2007. EFFICIENCY RATIO The efficiency ratio, which
measures how much a company spends to generate revenue, showed
that, for the 2006 fourth quarter, the company spent slightly more
than 56 cents for each dollar of revenue. This was fractionally
higher than for the year-ago fourth quarter because of expansion
investments the Corporate Client Services business made during the
2006 fourth quarter. For the 2006 full year, efficiency was reduced
by the impairment write-down on RCM. Excluding this charge,
efficiency improved, with the company spending slightly less than
56 cents for each dollar of revenue recorded for the 2006 full
year, down from more than 57 cents for each dollar of revenue
recorded for 2005. � Efficiency ratios � 2006 Q4 � 2005 Q4 � 2006
full year � 2005 full year Regional Banking � 41.56% � 42.38% �
40.57% � 42.56% Wealth Advisory Services � 76.47% � 78.76% � 77.63%
� 77.97% Corporate Client Services � 72.79% � 68.80% � 73.67% �
76.48% Wilmington Trust consolidated � 56.40% � 56.15% � 66.10% �
57.28% Wilmington Trust consolidated absent non-cash charge � --� �
--� � 55.96% � --� � All of the impairment write-down on RCM was
attributed to the Affiliate Managers business segment. The
discussions on each business and the financial statements in this
release contain more information about business line profitability.
INVESTMENT SECURITIES PORTFOLIO During the 2006 fourth quarter, the
company added investments to collateralize short-term cash sweeps,
which increased due to higher client demand. This caused the size
of the investment securities portfolio to increase, and the
composition of the portfolio to shift on a percentage basis. For
the 2006 fourth quarter, investment securities balances were $2.02
billion, on average. This was 6% higher than for the year-ago
fourth quarter and 9% higher than for the 2006 third quarter. For
the 2006 full year, investment securities balances were $1.89
billion, on average, which was slightly higher than for 2005. At
year-end 2006, the largest concentration of investments in the
portfolio was in government agencies, which comprised 38% of the
portfolio, up from 21% at year-end 2005. The percentage of the
portfolio invested in mortgage-backed instruments fell to 33% at
year-end 2006 from 44% at year-end 2005. Other categories of
securities in the portfolio were relatively unchanged on a
percentage basis. Although investment securities balances were
higher than for prior periods, they were relatively unchanged as a
percentage of total earning assets. � Investment securities
portfolio � At 12/31/06 � At 9/30/06 � At 12/31/05 Balances (in
millions) � $2,114.6� � $1,982.3� � $1,928.8� As a percentage of
total earning assets � 21% � 20% � 21% Average life (in years) �
4.93� � 5.39� � 6.14� Duration � 2.24� � 2.39� � 2.63� Percentage
invested in fixed income instruments � 82% � 80% � 79% Percentage
of total assets � 19% � 19% � 19% � The average life and duration
declined because the balances of short-term investments increased
and the negative yield curve caused paydowns of mortgage-backed
instruments to accelerate. THE REGIONAL BANKING BUSINESS The
Delaware Valley region's economy remained well diversified and
economic indicators remained positive. According to the Federal
Reserve Bank of Philadelphia, economic activity improved in
Delaware, Pennsylvania, and New Jersey for the 12 months ended
November 2006 (the most recent data available), and modest economic
growth is expected in 2007. According to the U.S. Department of
Labor, Delaware's unemployment rate for November 2006 (the most
recent data available) was 3.6%. In comparison, the U.S. rate was
4.5%. Amid these favorable economic conditions, the Regional
Banking business generated its 23rd consecutive quarter of loan
growth. Loan balances for the 2006 fourth quarter were $7.91
billion, on average. This was 8% higher than for the year-ago
fourth quarter, and 2% more than for the 2006 third quarter. For
the 2006 full year, loan balances were $7.70 billion, on average,
an increase of 9% from 2005. Commercial real estate/construction
loans and consumer loans accounted for most of the growth, and more
of the growth came from outside the Delaware market than in 2005. �
Loans � 2006 Q4 � 2005 Q4 � 2006 full year � 2005 full year Total
loans outstanding (in billions, on average) � $7.91� � $7.34� �
$7.70� � $7.05� � � � � � � � � � Delaware market loans (in
billions, on average) � $5.73� � $5.42� � $5.63� � $5.24� Delaware
market loans as a % of total loans � 72% � 74% � 73% � 74% � � � �
� � � � � Pennsylvania market loans (in billions, on average) �
$1.78� � $1.61� � $1.72� � $1.53� Pennsylvania market loans as a %
of total loans � 23% � 22% � 22% � 22% � � � � � � � � � Other
market loans as a % of total loans � 5% � 4% � 5% � 4% � Commercial
loans Commercial loan balances were $5.35 billion, on average, for
the 2006 fourth quarter. This was 10% higher than for the year-ago
fourth quarter, and 2% higher than for the 2006 third quarter. For
the 2006 full year, commercial loan balances were $5.20 billion, on
average, which was 11% higher than for 2005. Almost all of this
growth was in commercial real estate/construction (CRE) loans. �
Commercial loans (in millions, on average) � 2006 Q4 � 2005 Q4 �
2006 full year � 2005 full year Commercial, industrial, and
agricultural loans � $2,430.5� � $2,465.9� � $2,437.4� � $2,506.1�
Commercial real estate/construction loans � $1,634.9� � $1,161.6� �
$1,516.8� � $916.5� Commercial mortgage loans � $1,281.4� �
$1,239.7� � $1,240.8� � $1,250.9� Total commercial loans �
$5,346.8� � $4,867.2� � $5,195.0� � $4,673.5� � � � � � � � � � %
of commercial loans from Delaware market � 70% � 70% � 70% � 70% %
of commercial loans from Pennsylvania market � 29% � 29% � 29% �
29% % of commercial loans from other markets � 1% � 1% � 1% � 1% �
CRE loan balances, on average, were 41% higher for the 2006 fourth
quarter and 66% higher for the full year than for the corresponding
periods in 2005. Population growth, especially in Delaware,
continued to drive housing demand, and residential tract
development and construction continued to account for most of the
growth in CRE balances. The U.S. Census Bureau reported that, for
the 12 months ended July 2006, Delaware was the 15th fastest
growing state in the United States, and that Delaware's growth rate
was more than double that of any state in the Bureau's northeast
geographic area. Within the Regional Banking geographic footprint,
Delaware's population growth rate was three times higher than
Maryland's, four times higher than Pennsylvania's, and seven times
higher than New Jersey's. Mayflower Transit's 2006 Customer
Relocation Study ranked Delaware as the second most popular U.S.
relocation destination, after South Carolina. On a period-end
basis, CRE balances were 3% higher at the end of the 2006 fourth
quarter than at the end of the 2006 third quarter, and they were
35% higher than at year-end 2005. Projects in Delaware and
Pennsylvania accounted for most of the growth. Most of the
Pennsylvania growth was for projects in Philadelphia County and
Chester County, which borders Delaware. � CRE loan growth by state
(period-end balances) � 12/31/06 vs. 9/30/06 � 12/31/06 vs.
12/31/05 Percentage of growth from Delaware � 30% � 53% Percentage
of growth from Pennsylvania � 40% � 33% Percentage of growth from
Maryland � 15% � 8% Percentage of growth from New Jersey � 15% � 4%
Percentage of growth from other states � --� � 2% � The pace of
growth in CRE lending slowed during the second half of 2006,
especially for residential tract development and construction
projects. The pace of growth in other types of CRE projects
increased, as recent population growth and the health of the
regional economy spurred demand for leisure and health-related
services. � Selected CRE balance increases (period-end balances) �
12/31/06 vs. 9/30/06 � 12/31/06 vs. 12/31/05 Residential tract
development and construction balances � 2% � 41% Automobile
dealership construction balances � 39% � 79% Dining and recreation
construction balances � 86% � 40% Health and social services
construction balances � 13% � 30% � Toward the end of 2006, demand
began to rise for loans recorded as commercial, financial, and
agricultural loans (C and I loans). Between the ends of the third
and fourth quarters of 2006, CRE balances increased 3%. In
comparison, the corresponding increase in C and I balances was 7%,
the largest linked-quarter increase in that category of commercial
loans since the fourth quarter of 2005. Retail loans Retail loans
(consumer loans, residential mortgage loans, and loans secured with
liquid collateral) were $2.57 billion, on average, for the 2006
fourth quarter. This was 4% higher than for the year-ago fourth
quarter and 2% higher than for the 2006 third quarter. For the 2006
full year, retail loan balances were $2.50 billion, on average,
which was 6% higher than for 2005. The rate of growth in retail
loan balances would have been higher, if not for: Less demand from
Wealth Advisory Services clients for loans secured with liquid
collateral, which lowered the balances of that category of retail
loans; and The company's ongoing practice of selling most newly
originated fixed rate residential mortgages into the secondary
market. Those loans are not included in the residential mortgages
recorded on the balance sheet. As a result, consumer loans
continued to account for more than half of total retail loan
balances and for most of the growth in the retail portfolio.
Consumer loan balances for the 2006 fourth quarter were $1.50
billion, on average. This was 6% higher than for the year-ago
fourth quarter and 2% higher than for the 2006 third quarter. For
the 2006 full year, consumer loan balances were $1.46 billion, on
average, which was 10% higher than for 2005. � Consumer loans (in
millions, on average) � 2006 Q4 � 2005 Q4 � 2006 full year � 2005
full year Home equity lines of credit � $318.9� � $328.2� � $321.9�
� $323.3� Indirect loans � 676.1� � 648.4� � 657.3� � 605.1� Credit
card loans � 62.6� � 60.4� � 60.9� � 59.0� Other consumer loans �
438.5� � 375.5� � 418.1� � 341.9� Total consumer loans � $1,496.1�
� $1,412.5� � $1,458.2� � $1,329.3� � � � � � � � � � % of consumer
loans from Delaware market � 79% � 81% � 80% � 84% % of consumer
loans from Pennsylvania market � 6% � 7% � 6% � 5% % of consumer
loans from other markets � 15% � 12% � 14% � 11% � The category of
consumer loans recorded as "other consumer loans" accounted for the
majority of the growth in consumer loan balances. On average, other
consumer loan balances were 17% higher for the 2006 fourth quarter
and 22% higher for the full year than for the corresponding periods
in 2005. This category comprises a variety of installment loans to
individuals, most of which are fixed rate loans, and includes home
equity loans. Demand for fixed rate products rose, causing home
equity loan balances to increase, and home equity line-of-credit
balances to decrease. Most home equity lines of credit have
floating rates. Indirect lending was the other main contributor to
the increases in total consumer loans. Indirect loan balances, on
average, were 4% higher for the 2006 fourth quarter and 9% higher
for the full year than for the corresponding periods in 2005.
Higher volumes from the Pennsylvania and New Jersey markets
accounted for most of this growth. The majority of loans in the
indirect portfolio are for late-model used cars. In the residential
mortgage portfolio, balances rose but origination volumes declined,
in large part because: The company retains mortgages that qualify
as low income mortgages for Community Reinvestment Act (CRA)
purposes in the residential mortgage portfolio. CRA loans
originated during 2006 were nearly twice as high as for 2005. The
average loan amount originated was 2% higher for the 2006 fourth
quarter and 13% higher for the 2006 full year than for the
corresponding year-ago periods. The pace of refinancings and
paydowns slowed. � Residential mortgages � 2006 Q4 � 2005 Q4 � 2006
full year � 2005 full year Balances (in millions, on average) �
$524.8� � $450.8� � $495.2� � $438.6� Origination volumes (in
millions) � $52.2� � $64.1� � $225.3� � $221.0� Origination units �
244� � 305� � 972� � 1,077� � At December 31, 2006, approximately
75% of the residential mortgage portfolio consisted of fixed rate
mortgages, compared with 75% at year-end 2005 and 74% at September
30, 2006. Core deposits For the 2006 fourth quarter, core deposits
(deposits from clients) were $5.01 billion, on average, which was
fractionally lower than for the year-ago fourth quarter and $58.1
million higher than for the 2006 third quarter. For the 2006 full
year, core deposits were $4.94 billion on average, slightly more
than for the 2005 full year. Most core deposits continued to come
from the Delaware market. � Total core deposits (on average) � 2006
Q4 � 2005 Q4 � 2006 full year � 2005 full year From Delaware
clients � 94% � 94% � 94% � 94% From Pennsylvania clients � 5% � 5%
� 5% � 5% From other markets � 1% � 1% � 1% � 1% � Compared to the
2005 fourth quarter and full year, changes in core deposit balances
reflected double-digit increases in certificate of deposit (CD)
balances which were offset by decreases in noninterest-bearing
demand deposits. On average, noninterest-bearing demand deposits
were $223.8 million lower for the 2006 fourth quarter than for the
year-ago fourth quarter and $56.4 million higher than for the 2006
third quarter. The changes in noninterest-bearing demand deposit
balances reflected account sweeps that shift some
noninterest-bearing demand deposits into money market deposits.
This practice lowers deposit reserve requirements mandated by the
Federal Reserve, and ultimately reduces the company's borrowing
costs and uninvested cash balances. These sweeps accounted for
approximately $160 million of the decline in noninterest-bearing
demand deposits, on average, between the fourth quarters of 2005
and 2006. Balances of local CDs $100,000 and over (local CDs) were
higher for the 2006 fourth quarter and full year than for the
corresponding periods in 2005. Local CDs are recorded as core
deposits because they are client deposits, not brokered deposits.
Commercial banking clients in the Delaware Valley and local
municipalities, which frequently use these CDs to generate returns
on their excess cash, account for the majority of local CD
balances. � Local CDs ? $100,000 by client category � At 12/31/06 �
At 9/30/06 � At 12/31/05 Consumer banking clients � 74% � 73% � 65%
DE commercial banking clients � 11% � 10% � 12% PA commercial
banking clients � 8% � 10% � 9% Wealth Advisory Services clients �
7% � 7% � 14% Corporate Client Services clients � --� � --� � --� �
Balances of national CDs of $100,000 or more (national CDs) are not
recorded as core deposits because they are brokered deposits, not
client deposits. The company supplements core deposits with
national CDs, because the Regional Banking business strategy is to
make loans to clients in a four-state region while gathering core
deposits mainly from clients in Delaware. Using national CDs is a
cost-effective way to fund loan growth without incurring the
expense of building and operating a large-scale branch office
network outside Delaware. Credit quality Credit quality remained
stable. The percentage of loans outstanding with pass ratings from
the internal risk rating analysis exceeded 97% for the fifth
consecutive quarter, and was higher than for the year-ago fourth
quarter. At year-end 2006, fewer loans were on the watch list than
at the end of 2005, and no loans were rated doubtful. Net
charge-offs for the 2006 fourth quarter were $5.9 million. This was
$1.9 million more than for the 2005 fourth quarter, but $1.4
million less than for the 2006 third quarter. A loan to an auto
dealer in New Jersey accounted for the increase from the year-ago
fourth quarter. For the 2006 full year, net charge-offs totaled
$18.5 million, compared with $10.1 million for 2005. The largest
charge-off during 2006 was a commercial loan of approximately $4.5
million that had been recorded in renegotiated loans from the
fourth quarter of 2004 until the third quarter of 2006. Because
this charge-off reduced the amount of renegotiated loans to zero,
it caused total nonperforming assets to decline for the 2006 fourth
quarter and full year. The period-end nonperforming asset ratio was
44 basis points at year-end 2006, down from 60 basis points at
year-end 2005 and 47 basis points at the end of the 2006 third
quarter. The net charge-off ratio for the 2006 fourth quarter was 7
basis points. This was 2 basis points higher than for the year-ago
fourth quarter and 2 basis points lower than for the 2006 third
quarter. For the full-year 2006, the net charge-off ratio was 24
basis points. While this was 14 basis points higher than for the
full-year 2005, it was in line with historical levels. Since 1995,
the annual net charge-off ratio has ranged from 14 to 44 basis
points. Nonaccruing loans totaled $31.0 million at year-end 2006,
which was $8.3 million lower than at year-end 2005, and $1.0
million lower than at the end of the 2006 third quarter. Loans past
due 90 days or more amounted to $5.8 million at year-end 2006. This
was $1.7 million more than at year-end 2005, but $1.9 million less
than at the end of the 2006 third quarter. Commercial real
estate/construction (CRE) loans accounted for approximately
$313,000, or less than 3%, of net charge-offs for the 2006 full
year. As of December 31, 2006, no CRE loans were nonaccruing or
past due 90 days. The $4.8 million asset recorded at year-end 2006
as other real estate owned (OREO) is a parcel of agricultural land
in New Jersey. The amount recorded for OREO was unchanged from the
second quarter of 2006, when this loan was transferred to OREO from
nonaccruing status. The 2006 fourth quarter provision for loan
losses was $6.5 million, compared with $2.0 million for the
year-ago fourth quarter, and $6.6 million for the 2006 third
quarter. The reserve for loan losses was $94.2 million at December
31, 2006, compared with $91.4 million at year-end 2005 and $93.6
million at September 30, 2006. The loan loss reserve ratio at
year-end 2006 was 1.16%, compared with 1.24% at year-end 2005 and
1.20% at September 30, 2006. Changes in the provision and reserve
for loan losses reflected management's assessment of risk in light
of loan growth, the internal risk rating analysis, the levels of
loan recoveries and repayments, the stability of the regional
economy, and regulatory guidelines. Regional Banking efficiency and
profitability During 2006, Regional Banking added staff, opened new
offices, and expanded existing offices. While these investments
increased expenses, they also helped generate higher amounts of
revenue. Revenue growth outpaced expense growth for the 2006 fourth
quarter and full year, and the corresponding efficiency ratios
improved. � Efficiency ratios � 2006 Q4 � 2005 Q4 � 2006 full year
� 2005 full year Regional Banking � 41.56% � 42.38% � 40.57% �
42.56% � Pretax income from Regional Banking was 9% higher for the
2006 full year than for 2005, but $0.5 million lower for the 2006
fourth quarter than for the year-ago fourth quarter, because the
provision for loan losses was $4.5 million higher than for the 2005
fourth quarter. NET INTEREST MARGIN The net interest margin for the
2006 fourth quarter was 3.65%, a decline of 9 basis points from the
year-ago fourth quarter and 18 basis points from the 2006 third
quarter. The net interest margin for the 2006 full year was 3.79%,
8 basis points higher than for 2005. � Net interest margin � 2006
Q4 � 2006 Q3 � 2005 Q4 � 2006 full year � 2005 full year Net
interest margin � 3.65% � 3.83% � 3.74% � 3.79% � 3.71% � Three
factors caused the decline: The increase in investments to support
collateralized short-term borrowings accounted for approximately 10
basis points of the decline. These transactions add to net interest
income, but the difference between the income and expense they
generate is small, and these narrow spreads reduced the margin.
Continued growth in the loan portfolio accounted for approximately
2 basis points of the decline. Because new loans, on average, are
booked at spreads that are lower than the current net interest
margin, each new loan added causes an incremental reduction in the
margin. Deposit pricing increases, especially on interest-bearing
demand deposits and certificates of deposit (CDs) under $100,000,
accounted for approximately 6 basis points of the decline. In a
rising market interest rate environment, retail deposits reprice
more slowly than floating rate loans. In 2006, the Federal Open
Market Committee stopped raising short-term interest rates in June.
Most of the company's floating rate loans repriced within 30 days
of each rate increase, but retail deposits continued to reprice
throughout the second half of the year. For the 2006 fourth
quarter, the increases in funding costs outpaced the increases in
asset yields, which had a negative effect on the margin. On a
full-year basis, the margin was higher for 2006 than for 2005
mainly because asset yields rose at a faster pace than funding
costs for the first three quarters of the year. � Changes in yields
and rates (in basis points) � 2006 Q4 vs. 2005 Q4 � 2006 Q4 vs.
2006 Q3 � Full year 2006 vs. 2005 Yield on earning assets � 91 bps
� (2) bps � 121 bps � � � � � � � Rate on CDs under $100,000 � 126
bps � 35 bps � 117 bps Rate on total funds to support earning
assets � 100 bps � 16 bps � 113 bps � The majority of loans
outstanding continued to be floating rate loans, and the majority
of these loans repriced within a timeframe that closely matched the
90-day maturations of a substantial portion of the company's
funding. � As a percentage of total balances � At 12/31/06 � At
09/30/06 � At 12/31/05 Loans outstanding with floating rates � 74%
� 75% � 77% Floating rate loans that are commercial loans � 82% �
81% � 80% Commercial floating rate loans repricing in ? 30 days �
93% � 93% � 92% � � � � � � � National CDs maturing ? 90 days � 55%
� 74% � 87% Short-term borrowings maturing ? 90 days � 92% � 98% �
86% � � � � � � � Commercial loans tied to a prime rate � 61% � 62%
� 63% Commercial loans tied to the 30-day LIBOR � 35% � 34% � 30% �
The decrease over the past 12 months in the percentage of national
CDs maturing in 90 days or less reflected changes in the yield
curve. With little difference between 90-day rates and longer-term
rates, the company opted to purchase instruments with longer terms.
At December 31, 2006, Wilmington Trust's prime lending rate was
8.25%. THE WEALTH ADVISORY SERVICES BUSINESS Wealth Advisory
Services (WAS) revenue for the 2006 fourth quarter totaled $51.3
million. This was 20% more than for the year-ago fourth quarter and
9% more than for the 2006 third quarter. Revenue from trust and
investment advisory services and from planning and other services
were the main contributors of the year-over-year and linked-quarter
growth. For the 2006 full year, WAS revenue totaled $192.0 million,
up 12% from 2005. All three categories of WAS revenue recorded
double-digit increases. On a full-year basis, trust and investment
management services had the largest dollar increase in total WAS
revenue, while revenue from planning and other services recorded
the largest percentage increase. Most of the growth in total WAS
revenue came from trust and investment advisory services. Business
development and market appreciation produced trust and investment
advisory revenue of $35.6 million for the 2006 fourth quarter, up
15% from the year-ago fourth quarter and 8% from the 2006 third
quarter. These increases outpaced the increases in the Standard
& Poor's 500 index, which increased an average of 14% and 6%,
respectively, for the corresponding periods. Approximately 48% of
trust and investment advisory revenue was based on equity market
valuations, and management believes the S&P 500 is a good proxy
for equity investments in client portfolios. For the 2006 full
year, trust and investment advisory revenue was $136.1 million, up
10% from 2005. Lackluster performance in the equity markets during
the first nine months of the year masked the revenue from new
business development during that period. Revenue from planning and
other services was $10.6 million for the 2006 fourth quarter. This
was 49% higher than for the year-ago fourth quarter and 21% higher
than for the 2006 third quarter. For the 2006 full year, planning
revenue was $35.7 million, a 17% increase from 2005. Fees for these
services are based on the nature and complexity of the service
provided, not on asset valuations. In some cases, these fees are
based on the client's annual income. Most of the growth in planning
revenue came from family office services, reflecting a substantial
expansion of these services. At year-end 2005, there were 45
full-time-equivalent family office staff members. Most were in
Beverly Hills, and the focus was primarily on meeting the unique
business management needs of entertainment and sports figures. By
year-end 2006, there were 79 full-time-equivalent family office
staff members; they were located in Delaware, Beverly Hills, New
York, Princeton, and Stamford, Connecticut; and added to the scope
of services were expertise in structuring family offices as legal
entities and in developing executive compensation and inherited
wealth strategies. Business development remained solid. The
Delaware, Florida, New York, and Pennsylvania markets recorded the
largest increases in sales. In Pennsylvania, expansion of WAS
activities in the Lehigh Valley area during the second half of the
year helped generate sales for the 2006 fourth quarter that were
58% higher than for the 2006 third quarter. Sales attributed to
Delaware include business from clients in other states whose
accounts are located in Delaware in order to benefit from trust,
tax, and legal advantages not available for trusts governed by the
laws of other states. Wealth Advisory Services efficiency and
profitability WAS pretax income was 30% higher for the 2006 fourth
quarter and 12% higher for the full year than for the corresponding
periods in 2005. Two new office openings and the family office
expansion increased WAS expenses for 2006, but the business
leveraged those initiatives, and investments made in prior years,
to generate revenue growth that outpaced expense growth. WAS
profitability and efficiency measures for the 2006 fourth quarter
and full year improved as a result. � Efficiency ratios � 2006 Q4 �
2005 Q4 � 2006 full year � 2005 full year Wealth Advisory Services
� 76.47% � 78.76% � 77.63% � 77.97% � THE CORPORATE CLIENT SERVICES
BUSINESS Corporate Client Services (CCS) revenue for the 2006
fourth quarter totaled $23.4 million. This was 14% more than for
the year-ago fourth quarter and 11% higher than for the 2006 third
quarter. Revenue from capital markets services, entity management
services, and investment and cash management services were the main
contributors of the year-over-year and linked-quarter revenue
growth. For the 2006 full year, CCS revenue totaled $85.6 million,
up 12% from 2005. All four components of the CCS business recorded
higher revenue, and each recorded double-digit increases in sales.
On a full-year basis, entity management services recorded the
largest dollar increase in total CCS revenue and revenue from
investment and cash management services increased at the fastest
pace. Revenue from the capital markets component for the 2006
fourth quarter was $10.4 million, which was 11% higher than for the
year-ago fourth quarter and 20% higher than for the 2006 third
quarter. For the 2006 full year, capital markets revenue was $37.0
million, an increase of 8%. Sales of capital markets services for
the 2006 fourth quarter were 30% higher than for the year-ago
fourth quarter and 21% higher than for the 2006 third quarter. For
the 2006 full year, sales of capital markets services were 30%
higher than for 2005. The capital markets services most in demand
in the 2006 fourth quarter were those that support issues of
trust-preferred securities, collateral trusts and defaults, and
commercial mortgage-backed securitization defeasance. Higher sales
of these services offset the continued decline in the volume of
asset-backed securitizations in the U.S. market. Revenue from
entity management services for the 2006 fourth quarter was $7.1
million, up 16% from the year-ago fourth quarter and 4% from the
2006 third quarter. For the 2006 full year, entity management
revenue was $26.8 million, a 14% increase from 2005. These
increases resulted from strong demand for independent directorships
and administrative services for structured finance securitizations
in Europe, and reflected the company's expansion into Germany.
Expansion in the Cayman Islands and the May 2006 acquisition of PwC
Corporate Services (Cayman) from accounting firm
PricewaterhouseCoopers also contributed to the revenue increases.
More proactive efforts to develop institutional investment
management business continued to generate higher amounts of revenue
from investment and cash management services. Revenue from these
services was $3.0 million for the 2006 fourth quarter, up 31% from
the year-ago fourth quarter and 12% more than for the 2006 third
quarter. For the 2006 full year, revenue from these services rose
34% to $10.3 million. Approximately 33% of the 2006 fourth quarter
revenue and 30% of full-year revenue from these services was tied
to the valuations of domestic fixed income instruments, and
reflected the company's ability to leverage its fixed income
expertise on behalf of CCS clients. The remaining investment and
cash management revenue was based on money market mutual fund
balances. Revenue from the corporate retirement services component
of the CCS business was $2.9 million for the 2006 fourth quarter
and $11.5 million for the full year, increases of 4% and 8%,
respectively. Market appreciation, additional retirement plan
contributions, and demand for executive compensation plan trust and
custody services accounted for these increases. Corporate Client
Services efficiency and profitability For the 2006 full year, CCS
efficiency and profitability improved because the focus on
marketing investment and cash management services, and expansion in
Europe and the Cayman Islands, yielded higher volumes of business.
The full-year increase in revenue was twice as high as the
corresponding increase in expenses, mainly because CCS leveraged
existing infrastructure and capabilities to support the growth in
revenue from investment and cash management services. For the 2006
fourth quarter, pre-tax income was the same as for the year-ago
fourth quarter, although the efficiency ratio declined, due to
investments in staff and technology to improve collateralized debt
obligation capabilities. � Efficiency ratios � 2006 Q4 � 2005 Q4 �
2006 full year � 2005 full year Corporate Client Services � 72.79%
� 68.80% � 73.67% � 76.48% � AFFILIATE MONEY MANAGERS Revenue from
the two affiliate money managers, Cramer Rosenthal McGlynn and
Roxbury Capital Management, totaled $5.4 million for the 2006
fourth quarter and $20.5 million for the 2006 full year. These were
increases of 10% and 17%, respectively, from the corresponding
periods of 2005. � Affiliate managers (in millions) � At 12/31/06 �
At 9/30/06 � At 12/31/05 Managed assets at Cramer Rosenthal McGlynn
� $10,623.8� � $9,784.5� � $8,899.0� Managed assets at Roxbury
Capital Management � $3,138.1� � $3,122.9� � $3,287.3� � �
Affiliate managers (in millions) � 2006 Q4 � 2005 Q4 � 2006 full
year � 2005 full year Revenue from Cramer Rosenthal McGlynn � $5.3�
� $4.3� � $19.3� � $16.1� Revenue from Roxbury Capital Management �
$0.1� � $0.6� � $1.2� � $1.4� Total revenue from affiliate managers
� $5.4� � $4.9� � $20.5� � $17.5� � Value-style affiliate Cramer
Rosenthal McGlynn (CRM) contributed nearly all of the 2006 fourth
quarter and full-year revenue from the affiliates. CRM's assets
under management were a record-high $10.6 billion at year-end 2006.
This was $1.7 billion, or 19%, higher than at year-end 2005, and
$800 million, or 8%, higher than at September 30, 2006. Asset
inflows, particularly in the mid-cap value product, and market
appreciation accounted for the growth in managed assets and drove
the increases in revenue. Fourth quarter and full-year 2006 results
for Roxbury Capital Management (RCM) reflected the firm's renewed
focus on its market positioning and expertise as a small-cap growth
manager. During the second half of 2006, RCM terminated its
micro-cap and fixed income products, which reduced assets under
management and revenue for the fourth quarter and full year. The
costs of terminating the two products also contributed to the
reduction in RCM's revenue. NONINTEREST EXPENSES Noninterest
expenses were $104.9 million for the 2006 fourth quarter, which was
11% higher than for the year-ago fourth quarter. For the 2006 full
year, noninterest expenses were $471.6 million, a 27% increase from
2005. This amount included the $72.3 million impairment write-down
on RCM. Absent this non-cash charge, noninterest expenses for 2006
would have been $399.3 million, or 8% higher than for 2005.
Excluding the impairment write-down, expansion initiatives and
additions to staff in 2006 caused expenses to rise. These
activities included: The East Coast launch of the family office
practice in June. New office openings in Pennsylvania, New Jersey,
Connecticut, and Frankfurt, Germany, during the summer. Expansion
of existing offices in Delaware, Pennsylvania, Maryland, and New
York, and additions to staff throughout the year. The acquisition
of PwC Corporate Services (Cayman) in May. Investments in
technology and staff beginning in August to expand collateralized
debt obligation services. At December 31, 2006, there were 2,562
full-time-equivalent staff members. This was 93 more than at the
end of the year-ago fourth quarter, and 42 more than at the end of
the 2006 third quarter. Staffing-related costs continued to account
for the majority of noninterest expenses and for the majority of
the growth in noninterest expenses, excluding the non-cash charge.
� Staffing-related expenses � 2006 Q4 � 2005 Q4 � 2006 full year �
2005 full year Full-time equivalent staff members � 2,562� � 2,469�
� 2,562� � 2,469� Staffing-related expenses (in millions) � $62.0�
� $56.7� � $242.5� � $225.0� � Effective January 1, 2006,
stock-based compensation expense was included in incentive and
bonus expense, in accordance with the company's adoption of
Statement of Financial Accounting Standards No. 123 (revised),
"Share-Based Payment," using the modified retrospective method.
Prior-period amounts were adjusted to reflect this accounting
change. � Incentives and bonuses (in millions) � 2006 Q4 � 2005 Q4
� 2006 full year � 2005 full year Stock option expense � $1.9� �
$1.8� � $7.0� � $6.6� Total incentives and bonuses � $10.3� � $8.8�
� $39.8� � $38.0� � Income tax expense for the 2006 full year was
22% lower than for 2005 mainly because the non-cash impairment
write-down recorded against the investment in RCM reduced pre-tax
income. In addition, higher volumes of stock options were exercised
during 2006 than 2005, which increased the tax-deductible portion
of stock-based compensation expense. SHARE REPURCHASES During the
2006 fourth quarter, the company spent $50,510 to repurchase 1,164
of its shares, at an average price per share of $43.39. For the
2006 full year, the company spent $29.1 million to purchase 662,996
of its shares, at an average price per share of $43.93. This
brought the total number of shares repurchased under the current
8-million-share program, which commenced in April 2002, to
1,351,241, leaving 6,648,759 shares available for repurchase.
OUTLOOK FOR 2007 Commenting on the outlook for 2007, Cecala said:
"Our focus on building and strengthening client relationships, plus
the expansion investments we have made, generated strong momentum
in each of our businesses for 2006. We expect that momentum to
continue. "We have been experiencing solid loan growth, and we
expect that to continue, especially in Pennsylvania and Maryland,
as we expand our commercial banking presence in those markets. "In
the second half of 2006, after the Federal Open Market Committee
(FOMC) stopped raising short-term interest rates, deposit pricing
caught up to floating rate loan repricing, almost all of which took
place within 30 days of the last FOMC rate increase in June. We
believe that substantially all of the 2006 rate increases are now
priced into our core deposits. "Our credit quality remains very
positive. Net charge-offs and the provision for loan losses for the
2006 fourth quarter were in line with our long-term averages, and
we expect this to continue in 2007. "We expect continued growth in
revenue from Wealth Advisory Services, due to strong sales momentum
and high demand for our newer products and services, such as family
office services. "We remain very positive about Corporate Client
Services. The success of this business in 2006 created a lot of
momentum for 2007, which should continue due to new product
development and expansion in Europe. "Expense growth for 2007
should be similar to the 2006 increase, which was 8%, excluding the
impairment charge. Expenses in 2007 will reflect initiatives that
came on line at various points in 2006, such as the family office
services expansion, the corporate services acquisition in the
Cayman Islands, new products and European expansion in Corporate
Client Services, and the new offices we opened in Pennsylvania and
New Jersey. "Expenses for the first quarter are typically higher
than for other quarters, due to the timing of payroll taxes and
401(k) plan contributions. These two items will add approximately
$3 million to expenses for the first quarter of 2007." CONFERENCE
CALL Management will discuss the 2006 fourth quarter 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. To
access the call from within the United States, dial (877) 258-8842
and enter PIN 8259324. From outside the United States, dial (973)
582-2839 and enter PIN 8259324. A rebroadcast of the call will be
available from 12:30 p.m. (EST) today until 5:00 p.m. (EST) on
Friday, January 26, 2006, by calling (877) 519-4471 inside the
United States or (973) 341-3080 from outside the United States. Use
PIN 8259324 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 22 countries, and Corporate Client
Services for institutional clients in 81 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 California, Connecticut, Delaware, Florida, Georgia,
Maryland, Nevada, New Jersey, New York, Pennsylvania, South
Carolina, Vermont, the Cayman Islands, the Channel Islands, London,
Dublin, and Frankfurt. For more information, visit
www.wilmingtontrust.com. WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the twelve months ended December 31, 2006 �
HIGHLIGHTS � Three Months Ended � Twelve Months Ended � Dec. 31,
Dec. 31, % Dec. 31, Dec. 31, % � � 2006� � 2005� � Change � � 2006�
� 2005� � Change OPERATING RESULTS (in millions) Net interest
income $ 92.4� $ 87.5� 5.6� $ 363.1� $ 328.9� 10.4� Provision for
loan losses (6.5) (2.0) 225.0� (21.3) (11.8) 80.5� Noninterest
income 92.5� 79.8� 15.9� 346.1� 313.3� 10.5� Noninterest expense
104.9� 94.5� 11.0� 471.6� 370.1� 27.4� Net income 47.5� 46.5� 2.2�
143.8� 167.0� (13.9) � PER SHARE DATA Basic net income $ 0.69� $
0.69� ----� $ 2.10� $ 2.47� (15.0) Diluted net income 0.68� 0.67�
1.5� 2.06� 2.43� (15.2) Dividends paid 0.315� 0.30� 5.0� 1.245�
1.185� 5.1� Book value at period end 15.47� 14.99� 3.2� 15.47�
14.99� 3.2� Closing price at period end 42.17� 38.91� 8.4� 42.17�
38.91� 8.4� Market range: High 45.33� 40.96� 10.7� 45.61� 40.96�
11.4� Low 40.54� 34.65� 17.0� 38.54� 33.01� 16.8� � AVERAGE SHARES
OUTSTANDING (in thousands) Basic 68,455� 67,861� 0.9� 68,413�
67,688� 1.1� Diluted 69,680� 68,956� 1.0� 69,707� 68,570� 1.7� �
AVERAGE BALANCE SHEET (in millions) Investment portfolio $ 2,017.6�
$ 1,907.0� 5.8� $ 1,893.1� $ 1,876.6� 0.9� Loans 7,912.9� 7,344.9�
7.7� 7,699.8� 7,047.1� 9.3� Earning assets 10,075.3� 9,292.1� 8.4�
9,645.7� 8,957.4� 7.7� Core deposits 5,008.1� 5,012.6� (0.1)
4,936.7� 4,866.6� 1.4� Stockholders' equity 1,067.4� 983.0� 8.6�
1,059.1� 949.3� 11.6� � � STATISTICS AND RATIOS (net income
annualized) Return on average stockholders' equity 17.66% 18.77%
(5.9) 13.58% 17.59% (22.8) Return on average assets 1.73% 1.82%
(4.9) 1.37% 1.70% (19.4) Net interest margin (taxable equivalent)
3.65% 3.74% (2.4) 3.79% 3.71% 2.2� Dividend payout ratio 45.26%
43.87% 3.2� 59.18% 48.02% 23.2� Full-time equivalent headcount
2,562� 2,469� 3.8� 2,562� 2,469� 3.8� Prior period numbers have
been adjusted throughout this report for the retrospective adoption
of stock-based compensation accounting. WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the twelve months ended
December 31, 2006 � QUARTERLY INCOME STATEMENT � Three Months Ended
� % Change From: Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
Prior Prior (in millions) � 2006� � 2006� � 2006� � 2006� � 2005� �
Quarter � Year NET INTEREST INCOME Interest income $ 182.0� $
175.0� $ 165.0� $ 152.8� $ 146.2� 4.0� 24.5� � Interest expense �
89.6� � 82.0� � 74.6� � 65.5� � 58.7� 9.3� 52.6� Net interest
income 92.4� 93.0� 90.4� 87.3� 87.5� (0.6) 5.6� � Provision for
loan losses � (6.5) � (6.6) � (4.2) � (4.0) � (2.0) (1.5) 225.0�
Net interest income after provision for loan losses � 85.9� � 86.4�
� 86.2� � 83.3� � 85.5� (0.6) 0.5� � NONINTEREST INCOME Advisory
fees: Wealth Advisory Services Trust and investment advisory fees
35.6� 33.0� 33.1� 34.3� 31.1� 7.9� 14.5� Mutual fund fees 5.1� 5.3�
5.0� 4.7� 4.5� (3.8) 13.3� � � � Planning and other services �
10.6� � 8.8� � 8.9� � 7.3� � 7.1� 20.5� 49.3� Total Wealth Advisory
Services � 51.3� � 47.1� � 47.0� � 46.3� � 42.7� 8.9� 20.1�
Corporate Client Services Capital markets services 10.4� 8.7� 8.8�
9.1� 9.4� 19.5� 10.6� Entity management services 7.1� 6.8� 6.6�
6.5� 6.1� 4.4� 16.4� Retirement services 2.9� 2.9� 2.9� 2.7� 2.8�
----� 3.6� � � � Investment/cash management services 3.0� � 2.7� �
2.5� � 2.1� � 2.3� 11.9� 31.3� Total Corporate Client Services �
23.4� � 21.1� � 20.8� � 20.4� � 20.6� 11.0� 13.7� Cramer Rosenthal
McGlynn 5.3� 4.6� 5.5� 4.0� 4.3� 15.2� 23.3� � � Roxbury Capital
Management � 0.1� � ----� � 0.3� � 0.9� � 0.6� ----� (83.3)
Advisory fees 80.1� 72.8� 73.6� 71.6� 68.2� 10.1� 17.5� � �
Amortization of affiliate other intangibles (1.1) � (1.1) � (1.0) �
(1.0) � (1.0) ----� 10.0� Advisory fees after amortization of
affiliate other intangibles � 79.0� � 71.7� � 72.6� � 70.6� � 67.2�
10.2� 17.6� Service charges on deposit accounts 7.1� 7.3� 7.0� 6.9�
7.3� (2.7) (2.7) Other noninterest income 6.2� 5.5� 6.8� 5.2� 5.3�
12.7� 17.0� � Securities gains/(losses) � 0.2� � 0.1� � (0.1) �
----� � ----� 100.0� ----� Total noninterest income � 92.5� � 84.6�
� 86.3� � 82.7� � 79.8� 9.4� 15.9� � Net interest and noninterest
income � 178.4� � 171.0� � 172.5� � 166.0� � 165.3� 4.3� 7.9� �
NONINTEREST EXPENSE Salaries and wages 40.3� 39.5� 37.8� 36.9�
36.4� 2.0� 10.7� Incentives and bonuses 10.3� 8.9� 10.3� 10.3� 8.8�
15.7� 17.0� Employment benefits 11.4� 11.4� 11.9� 13.5� 11.5� ----�
(0.9) Net occupancy 6.7� 6.7� 6.3� 5.9� 6.1� ----� 9.8� Furniture,
equipment, and supplies 10.3� 9.2� 9.9� 9.0� 8.4� 12.0� 22.6� Other
noninterest expense: Advertising and contributions 3.2� 2.2� 2.1�
1.9� 2.5� 45.5� 28.0� Servicing and consulting fees 2.9� 2.8� 2.4�
2.3� 2.9� 3.6� ----� Subadvisor expense 2.3� 2.7� 2.9� 2.8� 2.5�
(14.8) (8.0) Travel, entertainment, and training 3.4� 2.5� 2.3�
2.2� 2.6� 36.0� 30.8� Originating and processing fees 3.1� 2.8�
2.4� 2.8� 2.8� 10.7� 10.7� � � Other expense � 11.0� � 9.9� � 10.0�
� 9.9� � 10.0� 11.1� 10.0� Total other noninterest expense � 25.9�
� 22.9� � 22.1� � 21.9� � 23.3� 13.1� 11.2� Total noninterest
expense before impairment 104.9� 98.6� 98.3� 97.5� 94.5� 6.4� 11.0�
Impairment write-down � ----� � 72.3� � ----� � ----� � ----�
(100.0) ----� Total noninterest expense � 104.9� � 170.9� � 98.3� �
97.5� � 94.5� (38.6) 11.0� Income before income taxes and minority
interest 73.5� 0.1� 74.2� 68.5� 70.8� N/M� 3.8� Applicable income
taxes � 26.3� � (5.0) � 27.2� � 24.3� � 24.3� ----� 8.2� Net income
before minority interest 47.2� 5.1� 47.0� 44.2� 46.5� N/M� 1.5�
Minority interest � (0.3) � (0.1) � 0.1� � 0.1� � ----� 200.0�
----� Net income $ 47.5� $ 5.2� $ 46.9� $ 44.1� $ 46.5� N/M� 2.2� �
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
twelve months ended December 31, 2006 � YEAR-TO-DATE INCOME
STATEMENT � � Twelve Months Ended � Dec. 31, Dec. 31, % (in
millions) � 2006� � 2005� � Change NET INTEREST INCOME Interest
income $ 674.8� $ 516.6� 30.6� Interest expense � � 311.7� � �
187.7� 66.1� Net interest income 363.1� 328.9� 10.4� Provision for
loan losses � � (21.3) � � (11.8) 80.5� Net interest income after
provision for loan losses � 341.8� � � 317.1� 7.8� � NONINTEREST
INCOME Advisory fees: Wealth Advisory Services Trust and investment
advisory fees 136.1� 123.9� 9.8� Mutual fund fees 20.2� 17.8� 13.5�
Planning and other services � � 35.7� � � 30.4� 17.4� Total Wealth
Advisory Services � 192.0� � � 172.1� 11.6� Corporate Client
Services Capital markets services 37.0� 34.3� 7.9� Entity
management services 26.8� 23.6� 13.6� Retirement services 11.5�
10.7� 7.5� Investment/cash management services � � 10.3� � � 7.7�
33.8� Total Corporate Client Services � 85.6� � � 76.3� 12.2�
Cramer Rosenthal McGlynn 19.3� 16.1� 19.9� Roxbury Capital
Management � � 1.2� � � 1.4� (14.3) Advisory fees 298.1� 265.9�
12.1� Amortization of affiliate other intangibles � � (4.2) � �
(4.0) 5.0� Advisory fees after amortization of affiliate other
intangibles � 293.9� � � 261.9� 12.2� Service charges on deposit
accounts 28.2� 28.1� 0.4� Other noninterest income 23.8� 22.5� 5.8�
Securities gains � � 0.2� � � 0.8� (75.0) Total noninterest income
� 346.1� � � 313.3� 10.5� � Net interest and noninterest income �
687.9� � � 630.4� 9.1� � NONINTEREST EXPENSE Salaries and wages
154.4� 139.8� 10.4� Incentives and bonuses 39.8� 38.0� 4.7�
Employment benefits 48.3� 47.2� 2.3� Net occupancy 25.7� 22.4�
14.7� Furniture, equipment, and supplies 38.3� 34.7� 10.4� Other
noninterest expense: Advertising and contributions 9.4� 9.1� 3.3�
Servicing and consulting fees 10.4� 10.2� 2.0� Subadvisor expense
10.7� 9.4� 13.8� Travel, entertainment, and training 10.4� 8.8�
18.2� Originating and processing fees 11.1� 10.5� 5.7� Other
expense � � 40.8� � � 40.0� 2.0� Total other noninterest expense �
92.8� � � 88.0� 5.5� Total noninterest expense before impairment
399.3� 370.1� 7.9� Impairment write-down � 72.3� � � ----� ----�
Total noninterest expense � 471.6� � � 370.1� 27.4� Income before
income taxes and minority interest 216.3� 260.3� (16.9) Applicable
income taxes � � 72.7� � � 93.0� (21.8) Net income before minority
interest 143.6� 167.3� (14.2) Minority interest � � (0.2) � � 0.3�
----� Net income $ 143.8� � $ 167.0� (13.9) � WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the twelve months ended
December 31, 2006 � 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 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, 2006 � STATEMENT OF
CONDITION � % Change From Dec. 31, 2006 Sept. 30, 2006 June 30,
2006 Mar. 31, 2006 Dec. 31, 2005 Prior Quarter Prior Year (in
millions) � � � � � � ASSETS Cash and due from banks $ 249.7� � $
268.4� � $ 258.5� � $ 219.2� � $ 264.0� (7.0) (5.4) Federal funds
sold and securities purchased under agreements to resell 68.9�
38.4� 66.7� 44.9� 14.3� 79.4� 381.8� Investment securities: U.S.
Treasury 125.2� 230.8� 181.4� 136.8� 161.1� (45.8) (22.3)
Government agencies 807.1� 533.0� 416.5� 394.5� 410.8� 51.4� 96.5�
Obligations of state and political subdivisions 9.5� 9.4� 10.4�
10.5� 11.0� 1.1� (13.6) Preferred stock 90.5� 91.0� 88.1� 90.2�
90.6� (0.5) (0.1) Mortgage-backed securities 689.5� 726.8� 751.0�
806.4� 852.1� (5.1) (19.1) Other securities � 392.8� � � 391.3� � �
389.8� � � 401.9� � � 403.2� 0.4� (2.6) Total investment securities
� 2,114.6� � � 1,982.3� � � 1,837.2� � � 1,840.3� � � 1,928.8� 6.7�
9.6� Loans: Commercial, financial, and agricultural 2,533.5�
2,378.1� 2,445.5� 2,445.9� 2,461.3� 6.5� 2.9� Real estate -
construction 1,663.9� 1,610.9� 1,574.3� 1,411.9� 1,233.9� 3.3�
34.8� Mortgage - commercial � 1,296.1� � � 1,254.5� � � 1,222.8� �
� 1,245.4� � � 1,223.9� 3.3� 5.9� Total commercial loans � 5,493.5�
� � 5,243.5� � � 5,242.6� � � 5,103.2� � � 4,919.1� 4.8� 11.7�
Mortgage - residential 536.9� 518.7� 503.0� 473.4� 455.5� 3.5�
17.9� Consumer 1,517.0� 1,489.7� 1,452.4� 1,408.5� 1,438.3� 1.8�
5.5� Secured with liquid collateral � 547.5� � � 528.3� � � 557.2�
� � 553.9� � � 584.8� 3.6� (6.4) Total retail loans � 2,601.4� � �
2,536.7� � � 2,512.6� � � 2,435.8� � � 2,478.6� 2.6� 5.0� Total
loans net of unearned income 8,094.9� 7,780.2� 7,755.2� 7,539.0�
7,397.7� 4.0� 9.4� Reserve for loan losses � (94.2) � � (93.6) � �
(94.3) � � (93.6) � � (91.4) 0.6� 3.1� Net loans � 8,000.7� � �
7,686.6� � � 7,660.9� � � 7,445.4� � � 7,306.3� 4.1� 9.5� Premises
and equipment 150.3� 151.6� 151.2� 148.7� 147.6� (0.9) 1.8�
Goodwill 291.4� 291.1� 363.0� 348.5� 348.3� 0.1� (16.3) Other
intangibles 35.4� 38.8� 38.9� 35.0� 36.2� (8.8) (2.2) Other assets
� 246.0� � � 251.9� � � 236.9� � � 200.2� � � 199.9� (2.3) 23.1�
Total assets $ 11,157.0� � $ 10,709.1� � $ 10,613.3� � $ 10,282.2�
� $ 10,245.4� 4.2� 8.9� � LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits: Noninterest-bearing demand $ 913.6� $ 861.3� $ 813.8� $
830.2� $ 1,014.8� 6.1� (10.0) Interest-bearing: Savings 313.8�
292.5� 313.1� 328.0� 326.3� 7.3� (3.8) Interest-bearing demand
2,560.6� 2,417.5� 2,355.9� 2,352.1� 2,360.0� 5.9� 8.5� Certificates
under $100,000 1,012.6� 995.5� 991.1� 960.4� 923.0� 1.7� 9.7� Local
certificates $100,000 and over � 474.4� � � 574.7� � � 550.6� � �
513.3� � � 436.5� (17.5) 8.7� Total core deposits 5,275.0� 5,141.5�
5,024.5� 4,984.0� 5,060.6� 2.6� 4.2� National certificates $100,000
and over � 3,054.1� � � 2,742.7� � � 2,760.6� � � 2,707.2� � �
2,228.6� 11.4� 37.0� Total deposits � 8,329.1� � � 7,884.2� � �
7,785.1� � � 7,691.2� � � 7,289.2� 5.6� 14.3� Short-term
borrowings: Federal funds purchased and securities sold under
agreements to repurchase 1,145.8� 1,161.7� 1,160.0� 984.2� 1,355.6�
(1.4) (15.5) U.S. Treasury demand � 13.0� � � 7.0� � � 24.5� � �
0.6� � � 18.1� 85.7� (28.2) Total short-term borrowings � 1,158.8�
� � 1,168.7� � � 1,184.5� � � 984.8� � � 1,373.7� (0.8) (15.6)
Other liabilities 221.3� 196.4� 183.1� 169.4� 164.2� 12.7� 34.8�
Long-term debt � 388.5� � � 395.2� � � 393.4� � � 393.2� � � 400.4�
(1.7) (3.0) Total liabilities � 10,097.7� � � 9,644.5� � � 9,546.1�
� � 9,238.6� � � 9,227.5� 4.7� 9.4� Minority interest ----� 0.3�
0.3� 0.3� 0.2� (100.0) (100.0) Stockholders' equity � 1,059.3� � �
1,064.3� � � 1,066.9� � � 1,043.3� � � 1,017.7� (0.5) 4.1� Total
liabilities and stockholders' equity $ 11,157.0� $ 10,709.1� $
10,613.3� $ 10,282.2� $ 10,245.4� 4.2� 8.9� WILMINGTON TRUST
CORPORATION QUARTERLY SUMMARY As of and for the twelve months ended
December 31, 2006 � AVERAGE STATEMENT OF CONDITION � 2006 Fourth
Quarter 2006 Third Quarter 2006 Second Quarter 2006 First Quarter
2005 Fourth Quarter % Change From Prior Prior (in millions) � � � �
� � � � � � � � Quarter � � Year � ASSETS Cash and due from banks $
218.2� � $ 206.9� � $ 209.3� � $ 208.0� � $ 237.8� 5.5� (8.2)
Federal funds sold and securities purchased under agreements to
resell � 144.8� � � 28.8� � � 18.8� � � 17.5� � � 40.2� 402.8�
260.2� Investment securities: U.S. Treasury 177.4� 157.0� 146.7�
144.6� 133.5� 13.0� 32.9� Government agencies 642.1� 475.9� 394.1�
400.8� 406.4� 34.9� 58.0� Obligations of state and political
subdivisions 9.4� 9.6� 10.5� 10.5� 11.1� (2.1) (15.3) Preferred
stock 90.7� 89.4� 89.2� 91.4� 90.0� 1.5� 0.8� Mortgage-backed
securities 705.5� 735.1� 780.1� 828.4� 878.6� (4.0) (19.7) Other
securities � � 392.5� � � 390.0� � � 397.3� � � 403.2� � � 387.4�
0.6� 1.3� Total investment securities � 2,017.6� � � 1,857.0� � �
1,817.9� � � 1,878.9� � � 1,907.0� 8.6� 5.8� Loans: Commercial,
financial, and agricultural 2,430.5� 2,407.7� 2,463.5� 2,448.1�
2,465.9� 0.9� (1.4) Real estate - construction 1,634.9� 1,588.7�
1,517.5� 1,322.0� 1,161.6� 2.9� 40.7� Mortgage - commercial � �
1,281.4� � � 1,238.5� � � 1,212.8� � � 1,229.8� � � 1,239.7� 3.5�
3.4� Total commercial loans � 5,346.8� � � 5,234.9� � � 5,193.8� �
� 4,999.9� � � 4,867.2� 2.1� 9.9� Mortgage - residential 524.8�
507.8� 484.2� 463.3� 450.8� 3.3� 16.4� Consumer 1,496.1� 1,470.5�
1,441.6� 1,423.9� 1,412.5� 1.7� 5.9� Secured with liquid collateral
� � 545.2� � � 546.1� � � 556.3� � � 558.2� � � 614.4� (0.2) (11.3)
Total retail loans � 2,566.1� � � 2,524.4� � � 2,482.1� � �
2,445.4� � � 2,477.7� 1.7� 3.6� Total loans net of unearned income
7,912.9� 7,759.3� 7,675.9� 7,445.3� 7,344.9� 2.0� 7.7� Reserve for
loan losses � � (91.6) � � (93.5) � � (91.8) � � (90.4) � � (93.5)
(2.0) (2.0) Net loans � 7,821.3� � � 7,665.8� � � 7,584.1� � �
7,354.9� � � 7,251.4� 2.0� 7.9� Premises and equipment 151.5�
152.1� 150.3� 148.5� 147.6� (0.4) 2.6� Goodwill 290.7� 362.3�
357.3� 348.3� 344.4� (19.8) (15.6) Other intangibles 38.1� 38.5�
37.3� 35.6� 39.7� (1.0) (4.0) Other assets � � 230.7� � � 210.8� �
� 190.0� � � 180.3� � � 172.1� 9.4� 34.0� Total assets $ 10,912.9�
� $ 10,522.2� � $ 10,365.0� � $ 10,172.0� � $ 10,140.2� 3.7� 7.6� �
LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing
demand $ 793.6� $ 737.2� $ 742.0� $ 763.5� $ 1,017.4� 7.7� (22.0)
Interest-bearing: Savings 294.7� 304.1� 321.2� 326.0� 325.9� (3.1)
(9.6) Interest-bearing demand 2,374.7� 2,374.1� 2,364.4� 2,346.8�
2,321.2� ----� 2.3� Certificates under $100,000 1,009.3� 988.1�
980.9� 938.6� 901.5� 2.1� 12.0� Local certificates $100,000 and
over � � 535.8� � � 546.5� � � 540.0� � � 463.3� � � 446.6� (2.0)
20.0� Total core deposits 5,008.1� 4,950.0� 4,948.5� 4,838.2�
5,012.6� 1.2� (0.1) National certificates $100,000 and over � �
3,042.2� � � 2,864.6� � � 2,656.1� � � 2,647.7� � � 2,475.4� 6.2�
22.9� Total deposits � 8,050.3� � � 7,814.6� � � 7,604.6� � �
7,485.9� � � 7,488.0� 3.0� 7.5� Short-term borrowings: Federal
funds purchased and securities sold under agreements to repurchase
1,221.4� 1,048.8� 1,146.0� 1,082.0� 1,098.0� 16.5� 11.2� U.S.
Treasury demand � � 10.0� � � 6.8� � � 16.0� � � 11.7� � � 7.7�
47.1� 29.9� Total short-term borrowings � 1,231.4� � � 1,055.6� � �
1,162.0� � � 1,093.7� � � 1,105.7� 16.7� 11.4� Other liabilities
172.5� 175.7� 144.8� 166.7� 163.3� (1.8) 5.6� Long-term debt � �
391.1� � � 394.2� � � 393.3� � � 399.0� � � 400.0� (0.8) (2.2)
Total liabilities � 9,845.3� � � 9,440.1� � � 9,304.7� � � 9,145.3�
� � 9,157.0� 4.3� 7.5� Minority interest 0.2� 0.4� 0.3� 0.3� 0.2�
(50.0) ----� Stockholders' equity � � 1,067.4� � � 1,081.7� � �
1,060.0� � � 1,026.4� � � 983.0� (1.3) 8.6� Total liabilities and
stockholders' equity $ 10,912.9� $ 10,522.2� $ 10,365.0� $
10,172.0� � $ 10,140.2� 3.7� 7.6� WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the twelve months ended December
31, 2006 � YIELDS AND RATES � � YIELDS/RATES (tax-equivalent basis)
� 2006FourthQuarter � � 2006ThirdQuarter � 2006SecondQuarter �
2006FirstQuarter � 2005FourthQuarter � � EARNING ASSETS: Federal
funds sold and securities purchased under agreements to resell
5.16� % 4.55� % 4.93� % 4.11� % 4.02� % � U.S. Treasury 4.00� 4.06�
3.53� 3.38� 3.27� Government agencies 4.54� 4.23� 3.93� 3.95� 3.95�
Obligations of state and political subdivisions 8.86� 8.75� 8.79�
8.77� 8.78� Preferred stock 7.76� 7.63� 7.60� 7.60� 7.58�
Mortgage-backed securities 4.21� 4.05� 4.16� 4.17� 4.10� Other
securities 6.48� 6.42� 6.14� 5.52� 5.32� Total investment
securities 4.91� 4.78� 4.67� 4.53� 4.44� � Commercial, financial,
and agricultural 7.92� 7.96� 7.61� 7.24� 6.80� Real estate -
construction 8.56� 8.60� 8.26� 7.90� 7.39� Mortgage - commercial
7.99� 7.98� 7.71� 7.34� 6.96� Total commercial loans 8.13� 8.16�
7.82� 7.44� 6.97� � Mortgage - residential 5.81� 5.81� 5.77� 5.84�
5.82� Consumer 7.38� 7.31� 7.09� 6.85� 6.60� Secured with liquid
collateral 6.77� 6.78� 6.36� 5.89� 5.38� Total retail loans 6.93�
6.89� 6.67� 6.44� 6.16� � Total loans 7.74� 7.75� 7.45� 7.11� 6.70�
� Total earning assets 7.13� 7.15� 6.90� 6.58� 6.22� � FUNDS USED
TO SUPPORT EARNING ASSETS: Savings 0.51� 0.42� 0.39� 0.32� 0.30�
Interest-bearing demand 1.31� 1.10� 1.04� 1.02� 0.95� Certificates
under $100,000 4.22� 3.87� 3.51� 3.27� 2.96� Local certificates
$100,000 and over 4.74� 4.65� 4.29� 3.89� 3.53� Core
interest-bearing deposits 2.39� 2.16� 1.98� 1.81� 1.64� � National
certificates $100,000 and over 5.38� 5.30� 4.98� 4.47� 4.01� Total
interest-bearing deposits 3.64� 3.43� 3.15� 2.86� 2.55� � Federal
funds purchased and securities sold under agreements to repurchase
4.96� 4.98� 4.67� 4.19� 3.80� U.S. Treasury demand 4.96� 5.09�
4.74� 4.21� 4.22� Total short-term borrowings 4.96� 4.98� 4.67�
4.20� 3.80� � Long-term debt 6.82� 6.85� 6.69� 6.26� 6.01� Total
interest-bearing liabilities 3.97� 3.78� 3.52� 3.20� 2.89� � Total
funds used to support earning assets 3.48� 3.32� 3.10� 2.81� 2.48�
� Net interest margin (tax-equivalent basis) 3.65� 3.83� 3.80�
3.77� 3.74� � Year-to-date net interest margin 3.79� 3.80� 3.79�
3.77� 3.71� � Prime rate 8.25� 8.25� 7.90� 7.43� 6.97� �
Tax-equivalent net interest income (in millions) $ 93.5� $ 94.1� $
91.5� $ 88.3� $ 88.5� � Average earning assets 10,075.3� 9,645.1�
9,512.6� 9,341.7� 9,292.1� Average rates are calculated using
average balances based on historical cost and do not reflect market
valuation adjustments. WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the twelve months ended December 31, 2006 �
SUPPLEMENTAL INFORMATION � Three Months Ended � % Change From: �
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Prior Prior � � � �
2006� � � 2006� � � 2006� � � 2006� � � 2005� � Quarter � Year NET
INCOME Net income per share Basic $ 0.69� $ 0.08� � $ 0.69� � $
0.65� � $ 0.69� N/M� ----� Diluted 0.68� 0.07� 0.67� 0.64� 0.67�
N/M� 1.5� Weighted average shares outstanding (in thousands) Basic
68,455� 68,647� 68,475� 68,070� 67,861� Diluted 69,680� 69,933�
69,776� 69,434� 68,956� Net income as a percentage of: Average
assets 1.73� % 0.20� % 1.81� % 1.76� % 1.82� % Average
stockholders' equity 17.66� 1.91� 17.75� 17.42� 18.77� � ASSETS
UNDER MANAGEMENT * (in billions) Wilmington Trust $ 29.0� $ 27.2� �
$ 26.4� � $ 27.2� � $ 26.0� 6.6� 11.5� Roxbury Capital Management
3.1� 3.1� 3.3� 3.5� 3.3� ----� (6.1) Cramer Rosenthal McGlynn � �
10.6� � � 9.8� � � 9.4� � � 9.7� � � 8.9� 8.2� 19.1� Combined
assets under management $ 42.7� � $ 40.1� � $ 39.1� � $ 40.4� � $
38.2� 6.5� 11.8� � * 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 $
105.3� $ 100.5� � $ 100.7� � $ 102.1� � $ 100.9� 4.8� 4.4� **
Includes Wilmington Trust assets under management � FULL-TIME
EQUIVALENT HEADCOUNT Full-time equivalent headcount 2,562� 2,520�
2,515� 2,475� 2,469� � CAPITAL (in millions, except per share
amounts) Average stockholders' equity $ 1,067.4� $ 1,081.7� � $
1,060.0� � $ 1,026.4� � $ 983.0� (1.3) 8.6� Period-end primary
capital 1,153.5� 1,157.9� 1,161.2� 1,136.9� 1,109.1� (0.4) 4.0� Per
share: Book value 15.47� 15.55� 15.54� 15.30� 14.99� (0.5) 3.2�
Quarterly dividends declared 0.315� 0.315� 0.315� 0.30� 0.30� ----�
5.0� Year-to-date dividends declared 1.245� 0.93� 0.615� 0.30�
1.185� Average stockholders' equity to assets 9.78� % 10.28� %
10.23� % 10.09� % 9.69� % Total risk-based capital ratio 12.11�
12.32� 11.70� 12.10� 11.84� Tier 1 risk-based capital ratio 8.25�
8.28� 7.67� 7.70� 7.43� Tier 1 leverage capital ratio 7.39� 7.34�
6.98� 6.94� 6.69� � CREDIT QUALITY (in millions) Period-end reserve
for loan losses $ 94.2� $ 93.6� � $ 94.3� � $ 93.6� � $ 91.4�
Period-end nonperforming assets: Nonaccrual 31.0� 32.0� 29.5� 35.5�
39.3� OREO 4.8� 4.8� 4.8� 0.2� 0.2� Renegotiated loans ----� ----�
9.9� 4.9� 4.7� Period-end past due 90 days 5.8� 7.7� 4.7� 10.1�
4.1� � Gross charge-offs 7.1� 8.6� 5.7� 3.2� 7.8� Recoveries 1.2�
1.3� 2.2� 1.4� 3.8� Net charge-offs 5.9� 7.3� 3.5� 1.8� 4.0�
Year-to-date net charge-offs 18.5� 12.6� 5.3� 1.8� 10.1� � Ratios:
Period-end reserve to loans 1.16� % 1.20� % 1.22� % 1.24� % 1.24� %
Period-end non-performing assets to loans 0.44� 0.47� 0.57� 0.54�
0.60� Period-end loans past due 90 days to total loans 0.07� 0.10�
0.06� 0.13� 0.06� Net charge-offs to average loans 0.07� 0.09�
0.05� 0.02� 0.05� � INTERNAL RISK RATING Pass 97.39� % 97.41� %
97.28� % 97.20� % 97.24� % Watchlisted 1.82� 1.73� 1.89� 1.97�
1.96� Substandard 0.79� 0.86� 0.76� 0.76� 0.73� Doubtful ----�
----� 0.07� 0.07� 0.07� WILMINGTON TRUST CORPORATION QUARTERLY
SUMMARY As of and for the twelve months ended December 31, 2006 �
QUARTERLY BUSINESS SEGMENT REPORT � Three Months Ended � Dec. 31,
Sept. 30, June 30, Mar. 31, Dec. 31, (in millions) � 2006� � �
2006� � � 2006� � � 2006� � � 2005� REGIONAL BANKING Net interest
income $ 84.4� $ 85.7� $ 83.9� $ 81.0� $ 79.9� Provision for loan
losses (6.4) (6.7) (3.7) (3.8) (1.9) Noninterest income 13.6� 13.1�
13.1� 12.1� 12.5� � Noninterest expense � 41.1� � � 39.9� � � 38.5�
� � 39.1� � � 39.5� Income before taxes & minority interest
50.5� 52.2� 54.8� 50.2� 51.0� � Regional Banking efficiency ratio
41.56% 40.02% 39.33% 41.60% 42.38% � WEALTH ADVISORY SERVICES Net
interest income $ 6.6� $ 6.4� $ 6.3� $ 6.5� $ 6.8� Provision for
loan losses (0.1) 0.1� (0.5) (0.2) (0.1) Noninterest income 47.7�
43.6� 44.5� 43.4� 39.7� � Noninterest expense � 41.6� � � 38.8� � �
40.5� � � 38.4� � � 36.7� Income before taxes & minority
interest 12.6� 11.3� 9.8� 11.3� 9.7� � Wealth Advisory Services
efficiency ratio 76.47% 77.45% 79.57% 76.80% 78.76% � CORPORATE
CLIENT SERVICES Net interest income $ 4.3� $ 4.4� $ 3.4� $ 2.8� $
3.6� Provision for loan losses ----� ----� ----� ----� ----�
Noninterest income 26.1� 23.6� 23.1� 22.5� 22.9� � Noninterest
expense � 22.2� � � 19.9� � � 19.3� � � 20.0� � � 18.3� Income
before taxes & minority interest 8.2� 8.1� 7.2� 5.3� 8.2� �
Corporate Client Services efficiency ratio 72.79% 70.82% 72.56%
79.05% 68.80% � AFFILIATE MANAGERS * Net interest income $ (2.9) $
(3.5) $ (3.2) $ (3.0) $ (2.8) Provision for loan losses ----� ----�
----� ----� ----� Noninterest income 5.1� 4.3� 5.6� 4.7� 4.7� �
Noninterest expense � ----� � � 72.3� � � ----� � � ----� � � ----�
Income before taxes & minority interest 2.2� (71.5) 2.4� 1.7�
1.9� � TOTAL WILMINGTON TRUST CORPORATION Net interest income $
92.4� $ 93.0� $ 90.4� $ 87.3� $ 87.5� Provision for loan losses
(6.5) (6.6) (4.2) (4.0) (2.0) Noninterest income 92.5� 84.6� 86.3�
82.7� 79.8� Noninterest expense � 104.9� � � 170.9� � � 98.3� � �
97.5� � � 94.5� Income before taxes & minority interest $ 73.5�
� $ 0.1� � $ 74.2� � $ 68.5� � $ 70.8� � � Corporation efficiency
ratio 56.40% 95.64% 55.29% 57.02% 56.15% � * 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 as well as the adjustment for the adoption
of the accounting pronouncement for stock-based compensation
expense. WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and
for the twelve months ended December 31, 2006 � YEAR-TO-DATE
BUSINESS SEGMENT REPORT � Twelve Months Ended � Dec. 31, Dec. 31, $
% (in millions) � 2006� � � 2005� � � Change � Change � REGIONAL
BANKING Net interest income $ 334.9� $ 303.1� $ 31.8� 10.5� %
Provision for loan losses (20.5) (11.2) 9.3� 83.0� Noninterest
income 52.0� 51.1� 0.9� 1.8� � Noninterest expense � 158.5� � �
152.2� � � 6.3� � 4.1� � Income before taxes & minority
interest 207.9� 190.8� 17.1� 9.0� � Regional Banking efficiency
ratio 40.57% 42.56% � WEALTH ADVISORY SERVICES Net interest income
$ 25.7� $ 24.1� $ 1.6� 6.6� % Provision for loan losses (0.8) (0.6)
0.2� 33.3� Noninterest income 179.2� 160.8� 18.4� 11.4� �
Noninterest expense � 159.3� � � 144.4� � � 14.9� � 10.3� � Income
before taxes & minority interest 44.8� 39.9� 4.9� 12.3� �
Wealth Advisory Services efficiency ratio 77.63% 77.97% � CORPORATE
CLIENT SERVICES Net interest income $ 15.0� $ 11.4� $ 3.6� 31.6� %
Provision for loan losses ----� ----� ----� ----� Noninterest
income 95.3� 84.5� 10.8� 12.8� � Noninterest expense � 81.4� � �
73.5� � � 7.9� � 10.7� � Income before taxes & minority
interest 28.9� 22.4� 6.5� 29.0� � Corporate Client Services
efficiency ratio 73.67% 76.48% � AFFILIATE MANAGERS * Net interest
income $ (12.5) $ (9.7) $ (2.8) (28.9) % Provision for loan losses
----� ----� ----� ----� Noninterest income 19.6� 16.9� 2.7� 16.0� �
Noninterest expense � 72.4� � � ----� � � 72.4� � ----� � Income
before taxes & minority interest (65.3) 7.2� (72.5) ----� �
TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 363.1� $
328.9� $ 34.2� 10.4� % Provision for loan losses (21.3) (11.8) 9.5�
80.5� Noninterest income 346.1� 313.3� 32.8� 10.5� � Noninterest
expense � 471.6� � � 370.1� � � 101.5� � 27.4� � Income before
taxes & minority interest $ 216.3� � $ 260.3� � $ (44.0) �
(16.9) % � � Corporation efficiency ratio 66.10% 57.28% � *
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 as well as the
adjustment for the adoption of the accounting pronouncement for
stock-based compensation expense.
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