Wilmington Trust Corporation (NYSE: WL) reported today that net
income for the 2007 first quarter was $43.0 million and earnings
per share (on a diluted basis) were $0.62 per share. This was $0.02
less than for the year-ago first quarter. �Revenue growth was good
for each of our businesses. Loan balances, on average, rose for the
16th consecutive quarter and surpassed $8 billion for the first
time. The Wealth Advisory and Corporate Client Services businesses
each recorded double-digit increases in revenue. Also, the net
interest margin and credit quality were stable,� said Ted T.
Cecala, Wilmington Trust's chairman and chief executive officer.
�Offsetting these results was expense growth that outpaced revenue
growth because of the expansion investments we made in 2006. These
initiatives affected our expense levels immediately, but the
corresponding increases in revenue will occur more gradually as we
continue to grow our company for the long term.� In 2006 the
company opened three new offices in the United States and one in
Europe, significantly expanded Wealth Advisory and Corporate Client
Services capabilities, completed an acquisition, and added staff in
each business. The company also invested substantially in
technology to support WTDirect, the Internet-only delivery channel
introduced in November with a high-interest savings account. On an
annualized basis, first quarter 2007 results produced a return on
average assets of 1.59% and a return on average equity of 16.42%.
The corresponding returns for the first quarter of 2006 were 1.76%
and 17.42%, respectively. CASH DIVIDEND RAISED FOR 26TH CONSECUTIVE
YEAR The Board of Directors approved a 6% increase in the quarterly
cash dividend, raising it by $0.02, from $0.315 per share to $0.335
per share. On an annualized basis, this increased the dividend from
$1.26 per share to $1.34 per share. The quarterly dividend will be
paid on May 15, 2007, to stockholders of record as of May 1, 2007.
This increase marks the 26th consecutive year that Wilmington Trust
has raised its cash dividend. According to the winter 2007 edition
of Mergent, Inc.�s Dividend Achievers, only 108 of the 10,000
companies that trade on North American exchanges have raised their
dividends for 26 or more consecutive years. EFFICIENCY RATIOS As
illustrated by the efficiency ratio, the company spent slightly
more than 60 cents for each dollar of revenue generated in the 2007
first quarter, which was an increase from prior periods. This
happened because Regional Banking and Wealth Advisory Services
expansion investments made throughout 2006 added to expenses
immediately, but the corresponding increases in revenue will occur
more gradually as the business from each of these investments
grows. In the Corporate Client Services business, higher revenue
from investment and cash management services offset higher expenses
from expansion, and efficiency improved. Efficiency ratios � 2007
Q1 � 2006 Q4 � 2006 Q1 Regional Banking � 43.68% � 41.56% � 41.49%
Wealth Advisory Services � 85.93% � 76.47% � 77.00% Corporate
Client Services � 70.82% � 72.79% � 79.05% Wilmington Trust
consolidated � 60.28% � 56.40% � 57.02% In general, lower
efficiency ratios indicate higher profitability. INVESTMENT
SECURITIES PORTFOLIO Compared to the year-ago first quarter,
balances in the investment securities portfolio were higher because
of securities added during the 2006 fourth quarter to collateralize
short-term cash sweeps for clients. Compared to the 2006 fourth
quarter, balances were slightly lower. As a percentage of total
assets, the size of the investment securities portfolio was
relatively the same as for prior periods. Government agencies
surpassed mortgage-backed instruments as the largest concentration
of securities in the portfolio, largely because the company opted
to invest in shorter-term instruments and because of higher volumes
of prepayments of mortgage-backed securities. All of the
mortgage-backed securities in the portfolio are AAA-rated
instruments issued by U.S. government agencies for which the
underlying collateral is residential mortgages. There are no
subprime mortgages in this underlying collateral. Investment
securities portfolio � At 3/31/07 � At 12/31/06 � At 3/31/06
Balances (in millions) � $1,977.4� � $2,114.6� � $1,840.3� As a
percentage of total earning assets � 20% � 21% � 20% Average life
(in years) � 4.59� � 4.93� � 6.27� Duration � 2.05� � 2.24� � 2.71�
Percentage invested in fixed income instruments � 81% � 82% � 78%
As a percentage of total assets � 18% � 19% � 18% 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 Regional Banking business continued to benefit from
the Delaware Valley�s diversified economy. According to the Federal
Reserve Bank of Philadelphia, February 2007 unemployment rates for
Delaware, Pennsylvania, and New Jersey were below the U.S. national
average and the regional economic outlook was positive for the
remainder of 2007. At Wilmington Trust, loan balances rose for the
16th consecutive quarter and exceeded $8 billion for the first time
on an average-balance basis. Most of the loan growth was in the
commercial portfolio. Commercial banking expansion initiatives
during 2006 accelerated the pace of loan growth from markets
outside Delaware. Compared to the year-ago first quarter,
Pennsylvania market loan balances rose 11%, while Delaware market
loan balances increased 6%. Loans (dollars in billions, on average)
� 2007 Q1 � 2006 Q4 � 2006 Q1 Total loans outstanding (in billions,
on average) � $8.07� � $7.91� � $7.45� � � � � � � � Delaware
market loans (in billions, on average) � $5.84� � $5.74� � $5.49�
Delaware market loans as a % of total loans � 72% � 73% � 74% � � �
� � � � Pennsylvania market loans (in billions, on average) �
$1.82� � $1.78� � $1.63� Pennsylvania market loans as a % of total
loans � 23% � 23% � 22% � � � � � � � Other market loans as a % of
total loans � 5% � 4% � 4% Commercial loans During 2006, the
company opened new commercial banking offices in the Lehigh Valley
area of eastern Pennsylvania and in Princeton, New Jersey, and
increased the number of commercial bankers in its Baltimore office.
These expansion activities contributed to the year-over-year and
linked-quarter growth in commercial loan balances. Commercial loans
(in millions, on average) � 2007 Q1 � 2006 Q4 � 2006 Q1 Commercial,
industrial, and agricultural loans � $2,466.2� � $2,430.5� �
$2,448.1� Commercial real estate/construction (CRE) loans �
$1,669.8� � $1,634.9� � $1,322.0� Commercial mortgage loans �
$1,339.9� � $1,281.4� � $1,229.8� Total commercial loans �
$5,475.9� � $5,346.8� � $4,999.9� � � � � � � � % of commercial
loans from Delaware market � 70% � 70% � 70% % of commercial loans
from Pennsylvania market � 29% � 29% � 29% % of commercial loans
from other markets � 1% � 1% � 1% Commercial, industrial, and
agricultural loan balances were higher on an average-balance basis
due to demand for working capital and inventory financing in a
variety of industry sectors in eastern Pennsylvania, central New
Jersey, and southern Delaware. Of the commercial real
estate/construction (CRE) loans booked during the 2007 first
quarter, approximately 72% were for single-family tract homes in
eastern Pennsylvania, throughout Delaware, and on Maryland�s
Eastern Shore. The rest were for a variety of retail and
professional office projects. Increases in CRE loans in Delaware
resulted from the continued growth in population and housing
demand. For the 12 months ended July 2006, Delaware was the 15th
fastest growing state in the United States, and Delaware's growth
rate was more than double that of any other state in the northeast
(according to the U.S. Census Bureau). Most of the first quarter
increase in CRE loans in Delaware was split evenly between Kent and
Sussex Counties, which is where most of the population growth is
occurring. This is spurring demand for retail and other services,
and approximately 44% of the CRE loans booked in Delaware during
the first quarter were for retail and other service-related
projects. In the commercial mortgage portfolio, loans booked during
the 2007 first quarter were for a variety of professional office,
industrial, retail, and hotel properties throughout the Regional
Banking geographic footprint. Approximately 36% of the first
quarter increase in commercial mortgage balances was for projects
in Delaware; approximately 29% was for projects in Maryland;
approximately 13% was for projects in New Jersey; approximately 11%
was for projects in Pennsylvania; and approximately 11% was for a
Delaware-based client�s project in Virginia. Retail loans Consumer
lending continued to drive the growth in total retail loan
balances. The two main contributors to the increase in consumer
loans were indirect loans and the category recorded as �other�
consumer loans, which includes home equity loans. Consumer
preference for fixed-rate loans caused an increase in home equity
loan balances and accounted for the decrease in home equity lines
of credit, most of which have floating rates. Consumer loans (in
millions, on average) � 2007 Q1 � 2006 Q4 � 2006 Q1 Home equity
lines of credit � $309.5� � $318.9� � $325.1� Indirect loans �
$687.2� � $676.1� � $646.8� Credit card loans � $63.6� � $62.6� �
$59.6� Other consumer loans � $452.0� � $438.5� � $392.4� Total
consumer loans � $1,512.3� � $1,496.1� � $1,423.9� � � � � � � � %
of consumer loans from Delaware market � 77% � 78% � 81% % of
consumer loans from Pennsylvania market � 7% � 7% � 6% % of
consumer loans from other markets � 16% � 15% � 13% The increases
in indirect loan balances were due mainly to higher volumes of
loans for late-model used cars, which the company provides through
automobile dealers. Activity in Maryland, New Jersey, and
Pennsylvania contributed to the growth. Residential mortgage
balances were higher than for prior periods because prepayment and
refinancing volumes declined and because originations of mortgages
that qualify as low income mortgages under the Community
Reinvestment Act (CRA) increased. These increases corresponded with
housing growth in CRA-eligible communities in Delaware. The company
retains its CRA mortgage production but sells most other newly
originated residential mortgages into the secondary market and does
not record those loans on its balance sheet. Residential mortgages
� 2007 Q1 � 2006 Q4 � 2006 Q1 Balances (in millions, on average) �
$542.1� � $524.8� � $463.3� Origination volumes (in millions) �
$54.7� � $52.2� � $46.8� Origination units � 225� � 244� � 201� � �
� � � � � Fixed vs. floating rates � At 3/31/07 � At 12/31/06 � At
3/31/06 Percent of fixed-rate residential mortgages � 77% � 75% �
76% At March 31, 2007, Wilmington Trust�s residential mortgage
delinquency rate was 15 basis points below the U.S. national
average and compared favorably with other metropolitan areas. The
following table compares first quarter 2007 delinquency rates with
rates from the fourth quarter of 2005, when delinquencies were at
their most recent low, as reported by The Wall Street Journal on
April 11, 2007. Residential mortgage delinquency rates � 2007 Q1 �
2005 Q4 Wilmington Trust � 2.72% � 4.25% Wilmington/Maryland/New
Jersey metropolitan area � 3.42% � 2.10% United States � 2.87% �
2.03% Wilmington Trust does not engage in subprime residential
mortgage lending and there are no subprime loans in the residential
mortgage portfolio. Core deposits The categories of core deposits
that increased were savings deposits and certificates of deposit
(CDs) of less than $100,000. Rate promotions offered in 2006
accounted for much of the 8% year-over-year increase in CD
balances, on average. Savings deposits rose 35% between December
31, 2006, and March 31, 2007, due largely to the success of the
high-interest savings account available through WTDirect, the
Internet-only delivery channel introduced in November 2006. As of
April 20, 2007, the annual percentage yield on this account was
5.26% for depositors who maintain average daily balances of at
least $10,000. Core deposits (in millions, on average) � 2007 Q1 �
2006 Q4 � 2006 Q1 Noninterest-bearing demand � $749.1� � $793.6� �
$763.5� Savings � 365.3� � 294.7� � 326.0� Interest-bearing demand
� 2,250.4� � 2,304.8� � 2,346.8� CDs < $100,000 � 1,012.9� �
1,009.3� � 938.6� Local CDs ? $100,000 � 457.7� � 535.8� � 463.3�
Total core deposits � $4,835.4� � $4,938.2� � $4,838.2� � � � � � �
� From Delaware clients � 93% � 94% � 94% From Pennsylvania clients
� 5% � 5% � 5% From other markets � 2% � 1% � 1% Balances recorded
as local CDs $100,000 and over (local CDs) are included in core
deposits because these CDs reflect client deposits, not wholesale
or brokered deposits. Most local CDs are from commercial banking
clients in the Delaware Valley and local municipalities, which
frequently use these CDs to generate returns on their excess cash.
Local CDs ? $100,000 by client category � At 3/31/07 � At 12/31/06
� At 3/31/06 Consumer banking clients � 75% � 74% � 70% DE
commercial banking clients � 8% � 11% � 13% PA commercial banking
clients � 7% � 8% � 1% Wealth Advisory Services clients � 10% � 7%
� 16% Corporate Client Services clients � --� � --� � --� Funding
Core deposits continued to be the company�s primary source of
funding. Sources of funding (on average) � 2007 Q1 � 2006 Q4 � 2006
Q1 Core deposits � 52% � 53% � 56% National funding � 34% � 34% �
31% Short-term borrowings � 14% � 13% � 13% � � � � � � �
Loan-to-deposit ratio � 1.01% � 0.98% � 0.99% The company augments
core deposits with national funding because the Regional Banking
business makes loans in a four-state region but gathers deposits
primarily in Delaware. Purchasing national funds is a
cost-effective way to add deposits without building and operating a
large-scale expansion of the branch office network outside
Delaware. The repricing characteristics of national funding are
matched closely with the repricing characteristics of floating rate
loans, as shown in the net interest margin discussion in this
release. During the 2006 fourth quarter, the company diversified
its funding sources by launching WTDirect and adding national money
market deposits. Previously included in interest-bearing demand
deposit balances, national money market deposits now are reported
separately. Fourth quarter 2006 deposit balances were adjusted to
reflect this change. Credit quality Credit quality remained stable,
with the net charge-off ratio at the low end of historical levels.
Since 1996, the annualized net charge-off ratio has ranged from a
low of 14 basis points for 2005 to a high of 44 basis points for
2000. The $3.3 million charged off during the 2007 first quarter
included a combination of commercial and consumer loans, but none
was a commercial construction/real estate or commercial mortgage
loan. At the end of the 2007 first quarter, 97% of loans
outstanding had pass ratings in the internal risk rating analysis.
The percentage of pass-rated loans has been 97% or higher for six
consecutive quarters. Credit quality (dollars in millions) � 2007
Q1 � 2006 Q4 � 2006 Q1 Net charge-offs (in millions) � $3.3� �
$5.9� � $1.8� Net charge-off ratio (basis points) � 4 bps � 7 bps �
2 bps � � � � � � � � � At 3/31/07 � At 12/31/06 � At 3/31/06
Nonaccruing loans � $23.1� � $31.0� � $35.5� Other real estate
owned (OREO) � $4.8� � $4.8� � $0.2� Renegotiated loans � $4.8� �
--� � $4.9� Loans past due 90 days � $7.3� � $5.8� � $10.1� � � � �
� � � Ratio of nonperforming assets to loans (basis points) � 40
bps � 44 bps � 54 bps Nonaccruing loans declined as some returned
to accruing status and others were paid in full. Multiple projects
in Delaware, Maryland, and Pennsylvania accounted for the
linked-quarter increase in loans past due 90 days. Other real
estate owned (OREO) remained unchanged from the second quarter of
2006, when a parcel of agricultural land in New Jersey was
transferred to OREO from nonaccruing status. The amount recorded as
renegotiated loans consisted of one personal loan to a commercial
banking client in New Jersey. 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
net charge-offs, loan recoveries, and loan repayments; the
stability of the regional economy; and regulatory guidelines.
Provision for loan losses � 2007 Q1 � 2006 Q4 � 2006 Q1 Provision
for loan losses (in millions) � $3.6� � $6.5� � $4.0� � � � � � � �
Reserve for loan losses � At 3/31/07 � At 12/31/06 � At 3/31/06
Reserve for loan losses (in millions) � $94.5� � $94.2� � $93.6�
Loan loss reserve ratio � 1.17% � 1.16% � 1.24% NET INTEREST MARGIN
The net interest margin was 3.67%, the same as for the 2006 fourth
quarter, as there were no changes in short-term market interest
rates and the yield on earning assets matched the rate on funds
used to support earning assets. The market interest rate
environment was considerably different in the year-ago first
quarter and for much of 2006. The Federal Open Market Committee
raised short-term interest rates four times between January and
June 2006 for a total of 100 basis points. After those increases,
most of the company's floating rate loans had repriced by August,
but deposits continued to reprice throughout the second half of
2006. The resulting lag between loan and deposit repricing was the
main cause of the 15-basis-point decline in the margin from the
year-ago first quarter. The table below illustrates the change in
the pace of repricing. Changes in yields and rates (in basis
points) � 2007 Q1vs. 2006 Q4 � 2007 Q1vs. 2006 Q1 Change in yield
on total earning assets � 3 bps � 57 bps Change in rate on total
funds to support earning assets � 3 bps � 72 bps Savings deposit
rates were considerably higher than for prior periods because they
include the high-rate savings account available through WTDirect.
The average rate on this account for the 2007 first quarter was
4.93%. Clients must maintain an average daily balance of at least
$10,000 to obtain the highest WTDirect rate. The margin reflected
the company�s interest rate risk management strategy of using
national funding with maturations that match the repricing
characteristics of floating rate loans, as shown in the table
below. As a percentage of total balances � At 3/31/07 � At 12/31/06
� At 3/31/06 Loans outstanding with floating rates � 73% � 74% �
77% Commercial floating rate loans repricing in ? 30 days � 93% �
93% � 81% Commercial loans tied to a prime rate � 61% � 61% � 58%
Commercial loans tied to the 30-day LIBOR � 34% � 35% � 34% � � � �
� � � National CDs maturing in ? 90 days � 77% � 55% � 77%
Short-term borrowings maturing in ? 90 days � 95% � 92% � 87% The
percentage of national CDs maturing in 90 days or less decreased
over the last nine months of 2006 due to 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.
Effective January 1, 2007, the company changed the way it
calculates the quarterly net interest margin to a day-weighted
methodology more in line with industry standards. The new
methodology calculates the margin by dividing tax-adjusted net
interest income by the number of days in the quarter, multiplied by
365, and then divided by average earning assets for the quarter.
Prior periods have been adjusted to reflect this change. Net
interest margin 2007� � 2006� � Q1 � Q4 � Q3 � Q2 � Q1 Previously
reported � n/a� � 3.65% � 3.83% � 3.80% � 3.77% Adjusted for new
methodology � 3.67% � 3.67% � 3.85% � 3.84% � 3.82% Under the old
methodology, the margin for the 2007 first quarter would have been
3.62%. THE WEALTH ADVISORY SERVICES BUSINESS Wealth Advisory
Services (WAS) revenue was 11% higher than for the year-ago first
quarter mainly because of strong growth in trust and investment
advisory revenue and fees for other services. The Maryland market
recorded a 74% increase in sales year over year. Compared to the
2006 fourth quarter, sales from the New York market rose 22% and
sales from the California market rose 11%. Wealth Advisory Services
revenue (in millions) � 2007 Q1 � 2006 Q4 � 2006 Q1 Trust and
investment advisory services � $36.9� � $36.1� � $34.2� Mutual fund
fees � $5.1� � $5.1� � $4.7� Planning and other services � $9.5� �
$10.1� � $7.4� Total Wealth Advisory Services revenue � $51.5� �
$51.3� � $46.3� Revenue from trust and investment advisory services
rose 8% from the year-ago first quarter and 2% on a linked-quarter
basis. In comparison, the S&P 500 Index, which management
considers a good proxy for the equity investments in client
accounts, increased 10% year over year and 1% during the 2007 first
quarter. Fees for trust and investment advisory services are based
on the valuations of assets in client accounts. For the 2007 first
quarter, approximately 48% of client assets were invested in
traditional equities and approximately 27% were invested in fixed
income securities. The 28% year-over-year growth in revenue from
planning and other services was due in large part to the
substantial expansion of family office services that began in June
2006. As part of this expansion, WAS opened new offices in
Princeton, New Jersey, and Stamford, Connecticut, and added staff
with expertise in structuring family offices as legal entities and
in developing strategies for executive compensation and inherited
wealth. These initiatives complemented the services for sports and
entertainment industry professionals offered by the company�s
Beverly Hills-based subsidiary, Grant Tani Barash & Altman, and
positioned Wilmington Trust among the largest full-service family
office practices in the industry. Fees for planning and other
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. THE CORPORATE CLIENT SERVICES
BUSINESS Corporate Client Services (CCS) revenue was 18% higher
than for the year-ago first quarter, as all components of the
business recorded year-over-year increases. First quarter sales
exceeded $5 million for the first time and were 31% higher than for
the year-ago first quarter. Corporate Client Services revenue (in
millions) � 2007 Q1 � 2006 Q4 � 2006 Q1 Capital markets services �
$10.2� � $10.4� � $9.1� Entity management services � $7.1� � $7.1�
� $6.5� Retirement services � $3.4� � $2.9� � $2.7� Investment/cash
management services � $3.3� � $3.0� � $2.1� Total Corporate Client
Services revenue � $24.0� � $23.4� � $20.4� The 12% increase in
capital markets revenue reflected strong demand for services that
support trust-preferred securities, collateral trust and default
administration, defeasance of commercial mortgage-backed
securitizations, and tender option bonds. Sales of capital markets
services were 27% higher than for the year-ago first quarter. The
slight linked-quarter decline in capital markets revenue reflected
the fact that demand for these services is typically stronger in
the fourth quarter than in any other quarter. The decline also was
due to a slowdown in the U.S. housing market that began in the
second quarter of 2006 and reduced demand for asset-backed
securitizations (ABS) in which real estate is the underlying
collateral. Some of the real estate-backed securitizations for
which CCS provides trust and administrative services hold a blend
of prime and subprime residential mortgages. Prevailing concerns
about the subprime market have little, if any, effect on CCS
because the corresponding fees are based on services provided
regardless of the underlying collateral. Securitizations backed by
U.S. residential mortgages accounted for approximately 6% of total
CCS revenue for the 2007 first quarter. The 9% year-over-year
increase in entity management revenue resulted from expansion in
and continued demand from European markets, especially for
administrative and corporate governance services for structured
finance transactions in Ireland, the United Kingdom, and Germany.
CCS opened an office in Frankfurt, Germany, in August 2006
following passage of the German True Sale Initiative, which
facilitates ABS transactions in that country. The May 2006
acquisition of a corporate services business in the Cayman Islands
also contributed to the revenue growth. On a linked-quarter basis,
entity management revenue was flat due to seasonality in non-U.S.
business. Market appreciation, additional retirement plan
contributions, and demand for executive compensation plan trusts
accounted for the increases in retirement services revenue.
Approximately $300,000 of 2007 first quarter retirement services
revenue was associated with paying agent services for plan
distributions and is not expected to occur again in 2007. More
proactive marketing generated the increases in CCS investment and
cash management revenue. Approximately 43% of this revenue was tied
to the valuations of domestic fixed income instruments and
reflected the use of the company�s expertise in fixed income
management on behalf of CCS clients. The remaining investment and
cash management revenue was based on money market mutual fund
balances. AFFILIATE MONEY MANAGERS Assets under management at
value-style manager Cramer Rosenthal McGlynn reached $11.20
billion, another record high. This was $600 million more than at
the end of December 2006 and $1.50 billion more than at the end of
the year-ago first quarter. These increases, which were due mainly
to new business inflows, generated an 18% increase in first quarter
revenue from CRM. On a linked-quarter basis, revenue from CRM
declined because hedge fund performance fees were lower and
compensation and benefits costs were higher, which is typical for
the first quarter. Affiliate manager revenue (in millions) � 2007
Q1 � 2006 Q4 � 2006 Q1 Cramer Rosenthal McGlynn � $4.7� � $5.3� �
$4.0� Roxbury Capital Management � $0.1� � $0.1� � $0.9� Total
revenue from affiliates � $4.8� � $5.4� � $4.9� � � � � � � �
Assets under management (in millions) � At 3/31/07 � At 12/31/06 �
At 3/31/06 Cramer Rosenthal McGlynn � $11,215.7� � $10,623.8� �
$9,733.9� Roxbury Capital Management � $3,121.6� � $3,138.1� �
$3,515.7� At growth-style manager Roxbury Capital Management (RCM),
managed asset levels and revenue declined from the year-ago first
quarter because RCM terminated its micro-cap and fixed income
products during the second half of 2006. Revenue from RCM was flat
on a linked-quarter basis as it continued to record expenses
related to the fund terminations. ADJUSTMENTS TO WILMINGTON TRUST
ASSETS UNDER MANAGEMENT Effective January 1, 2007, amounts of
assets under management at Wilmington Trust (excluding the
affiliate money managers) were adjusted to include approximately $2
billion of institutional and individual client assets not held in
trust accounts. Prior periods were changed to reflect this
adjustment. Assets under administration include assets under
management. Client assets at Wilmington Trust (in billions) �
3/31/07� � 12/31/06� � 9/30/06� � 6/30/06� � 3/31/06� Assets under
management � � � � � � � � � � Previously reported � n/a� � $29.0�
� $27.2� � $26.4� � $27.2� Adjusted amount � $31.8� � $31.3� �
$29.1� � $28.3� � $29.2� � � � � � � � � � � � Assets under
administration � � � � � � � � � � Previously reported � n/a� �
$105.3� � $100.5� � $100.7� � $102.1� Adjusted amount � $112.1� �
$107.5� � $102.4� � $102.7� � $104.0� NONINTEREST EXPENSES
Staffing-related costs continued to account for the majority of
noninterest expenses. Expenses (dollars in millions) � 2007 Q1 �
2006 Q4 � 2006 Q1 Full-time-equivalent staff members � 2,579� �
2,562� � 2,475� � � � � � � � Salaries and wages � $41.8� � $40.3�
� $36.9� � � � � � � � Stock option expense � $3.1� � $2.2� � $2.2�
Total incentives and bonuses � $14.0� � $10.3� � $10.3� � � � � � �
� Total staffing-related expenses � $70.4� � $62.0� � $60.7� � � �
� � � � Total noninterest expenses � $110.5� � $104.9� � $97.5�
Noninterest expenses increased because expansion investments made
throughout 2006 raised staffing- and occupancy-related costs.
During the 12 months ended March 31, 2007, these investments added
104 staff members and included: The Wealth Advisory Services
expansion in June 2006 of family office services, which added 34
staff members and one new office; New commercial banking and wealth
management offices in Pennsylvania and New Jersey and staff
additions throughout the Regional Banking footprint; European
expansion and the addition of new product capabilities in the
second half of 2006 in the Corporate Client Services business; and
The November 2006 launch of WTDirect, the company�s Internet-only
outlet, which accounted for most of the year-over-year increase in
advertising costs. Most of the full-time-equivalent staff members
added during the first three months of 2007 were in Regional
Banking in the Delaware branch office network. Employment benefits
expense and incentives and bonuses were the main causes of the
increase in noninterest expenses from the fourth quarter of 2006.
Approximately $3 million of the linked-quarter increase in
employment benefits expense was for payroll tax payments and 401(k)
plan contributions that reset at the start of each year. Incentives
and bonuses were higher, in part, because sales volumes increased.
In addition, incentives and bonuses for the 2007 first quarter
included approximately $2 million of expense that is not expected
to occur again in 2007. Approximately $1 million of this amount was
for restricted stock grants issued to retirement-eligible staff.
Because restricted stock awards fully vest upon retirement, U.S.
generally accepted accounting principles require the company to
recognize the full expense of these grants when they are awarded,
instead of amortizing the expense over the vesting period. In other
categories of expenses: The timing of maintenance contract billing
accounted for most of the linked-quarter decrease in furniture,
equipment, and supplies expense. Amounts recorded as subadvisor
expense vary according to the mix of investments in client
portfolios among fixed income and equity instruments, active and
passive funds, and domestic and international securities. Higher
legal fees as well as costs associated with credit and debit cards
were the main causes of the increases in other expense. The amount
recorded as minority interest for the 2007 first quarter included
an adjustment of approximately $500,000 associated with Wilmington
Trust Conduit Services, the subsidiary that was formed in the fall
of 2006 to provide administrative services for collateralized debt
obligations. Absent this amount, minority interest for the quarter
would have been approximately $100,000, which is what management
anticipates for each of the remaining quarters in 2007. SHARE
REPURCHASES During the 2007 first quarter, the company repurchased
47,291 shares of its stock at a total cost of $2.0 million and an
average price per share of $42.52. This brought the total number of
shares repurchased under the current 8-million-share program, which
commenced in April 2002, to 1,398,532, leaving 6,601,468 shares
available for repurchase. OUTLOOK FOR 2007 Commenting on the
outlook for the remainder of 2007, Cecala said: �The economy in our
Regional Banking footprint is healthy and stable. Although we are
seeing a slight slowing in the pace of growth in the commercial
real estate/construction portfolio, we expect to offset that with
loan growth from our commercial banking expansion in eastern
Pennsylvania, New Jersey, and Maryland. �As you can see from our
savings account balances, the Internet-only high interest savings
account we are offering through WTDirect has proven to be a
successful new source of cost-effective funding. Since we make
commercial loans in four states but gather core deposits mainly in
Delaware, we will continue to pursue other ways to add core
deposits efficiently, without incurring the costs of a large-scale
expansion of our branch office network, and reduce our use of
national funding. �We see nothing on the horizon to suggest a
change in credit quality. The net charge-off ratio remains at a
historically low level and 97% of loans outstanding have pass
ratings in the internal risk rating analysis. �The net interest
margin has stabilized. Unless the Federal Reserve changes
short-term rates, we would not expect to see the margin decline.
�We expect year-over-year growth in Corporate Client Services and
Wealth Advisory Services to be on pace with what we saw for the
first quarter. �Noninterest expenses should be in the $108 to $109
million range for each of the remaining quarters in 2007. The
expansion investments we made in 2006 came on line throughout the
second half of the year and weren�t fully evident until the fourth
quarter. �Total staffing-related costs should be lower for the
second, third, and fourth quarters than they were for the first
quarter. Payroll taxes and the company 401(k) plan matching costs
will decline progressively as they reach their limits. In addition,
first quarter incentives and bonuses included approximately $2
million of payments we do not expect to repeat in 2007.� CONFERENCE
CALL Management will discuss the 2007 first quarter results and
outlook for the future in a conference call today at 10:00 a.m.
(EDT). Supporting materials, financial statements, and audio
streaming will be available at www.wilmingtontrust.com. To access
the call from within the United States, dial (888) 868-9083 and
enter PIN 8563843. From outside the United States, dial (973)
935-8512 and enter PIN 8563843. A rebroadcast of the call will be
available from 12:30 p.m. (EDT) today until 5:00 p.m. (EDT) on
Friday, April 27, by calling (877) 519-4471 inside the United
States or (973) 341-3080 from outside the United States. Use PIN
8563843 to access the rebroadcast. FORWARD-LOOKING STATEMENTS This
presentation contains forward-looking statements that reflect our
current expectations about our future performance. These statements
rely on a number of assumptions and estimates and are subject to
various risks and uncertainties that could cause our actual results
to differ from our expectations. Factors that could affect our
future financial results include, among other things, changes in
national or regional economic conditions; changes in market
interest rates; significant changes in banking laws or regulations;
increased competition in our businesses; higher-than-expected
credit losses; the effects of acquisitions; the effects of
integrating acquired entities; a substantial and permanent loss of
either client accounts and/or assets under management at Wilmington
Trust and/or our affiliate money managers, Cramer Rosenthal McGlynn
and Roxbury Capital Management; unanticipated changes in
regulatory, judicial, or legislative tax treatment of business
transactions; and economic uncertainty created by unrest in other
parts of the world. ABOUT WILMINGTON TRUST Wilmington Trust
Corporation (NYSE: WL) is a financial services holding company that
provides Regional Banking services throughout the Delaware Valley
region, Wealth Advisory Services for high-net-worth clients in 36
countries, and Corporate Client Services for institutional clients
in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust
Company, which was founded in 1903, is one of the largest personal
trust providers in the United States and the leading retail and
commercial bank in Delaware. Wilmington Trust Corporation and its
affiliates 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 three months ended
March 31, 2007 � HIGHLIGHTS � Three Months Ended � Mar. 31, Mar.
31, % � � 2007� � 2006� � Change OPERATING RESULTS (in millions)
Net interest income $ 90.9� $ 87.3� 4.1� Provision for loan losses
(3.6) (4.0) (10.0) Noninterest income 91.4� 82.7� 10.5� Noninterest
expense 110.5� 97.5� 13.3� Net income 43.0� 44.1� (2.5) � PER SHARE
DATA Basic net income $ 0.63� $ 0.65� (3.1) Diluted net income
0.62� 0.64� (3.1) Dividends paid 0.315� 0.30� 5.0� Book value at
period end 15.90� 15.30� 3.9� Closing price at period end 42.17�
43.35� (2.7) Market range: High 44.55� 44.80� (0.6) Low 39.74�
38.54� 3.1� � AVERAGE SHARES OUTSTANDING (in thousands) Basic
68,525� 68,070� 0.7� Diluted 69,653� 69,434� 0.3� � AVERAGE BALANCE
SHEET (in millions) Investment portfolio $ 2,005.8� $ 1,878.9� 6.8�
Loans 8,072.0� 7,445.3� 8.4� Earning assets 10,135.1� 9,341.7� 8.5�
Core deposits 4,835.4� 4,838.2� (0.1) Stockholders' equity 1,062.2�
1,026.4� 3.5� � � STATISTICS AND RATIOS (net income annualized)
Return on average stockholders' equity 16.42% 17.42% (5.7) Return
on average assets 1.59% 1.76% (9.7) Net interest margin (taxable
equivalent) 3.67% 3.82% (3.9) Dividend payout ratio 50.00% 46.26%
8.1� Full-time equivalent headcount 2,579� 2,475� 4.2� � �
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
three months ended March 31, 2007 � QUARTERLY INCOME STATEMENT �
Three Months Ended % Change From: Mar. 31, Dec. 31, Sept. 30, June
30, Mar. 31, Prior Prior (In millions) 2007� 2006� 2006� 2006�
2006� Quarter � Year NET INTEREST INCOME Interest income $ 180.0� $
182.0� $ 175.0� $ 165.0� $ 152.8� (1.1) 17.8� Interest expense �
89.1� � 89.6� � 82.0� � 74.6� � 65.5� (0.6) 36.0� Net interest
income 90.9� 92.4� 93.0� 90.4� 87.3� (1.6) 4.1� Provision for loan
losses � (3.6) � (6.5) � (6.6) � (4.2) � (4.0) (44.6) (10.0) Net
interest income after provision for loan losses � 87.3� � 85.9� �
86.4� � 86.2� � 83.3� 1.6� 4.8� NONINTEREST INCOME Advisory fees:
Wealth Advisory Services Trust and investment advisory fees 36.9�
36.1� 33.0� 33.1� 34.2� 2.2� 7.9� Mutual fund fees 5.1� 5.1� 5.3�
5.0� 4.7� ----� 8.5� Planning and other services � 9.5� � 10.1� �
8.8� � 8.9� � 7.4� (5.9) 28.4� Total Wealth Advisory Services �
51.5� � 51.3� � 47.1� � 47.0� � 46.3� 0.4� 11.2� Corporate Client
Services Capital markets services 10.2� 10.4� 8.7� 8.8� 9.1� (1.9)
12.1� Entity management services 7.1� 7.1� 6.8� 6.6� 6.5� ----�
9.2� Retirement services 3.4� 2.9� 2.9� 2.9� 2.7� 17.2� 25.9�
Investment / cash management services � 3.3� � 3.0� � 2.7� � 2.5� �
2.1� 10.0� 57.1� Total Corporate Client Services � 24.0� � 23.4� �
21.1� � 20.8� � 20.4� 2.6� 17.6� Cramer Rosenthal McGlynn 4.7� 5.3�
4.6� 5.5� 4.0� (11.3) 17.5� Roxbury Capital Management � 0.1� �
0.1� � ----� � 0.3� � 0.9� ----� (88.9) Advisory fees 80.3� 80.1�
72.8� 73.6� 71.6� 0.2� 12.2� Amortization of affiliate intangibles
� (1.1) � (1.1) � (1.1) � (1.0) � (1.0) ----� 10.0� Advisory fees
after amortization of affiliate intangibles � 79.2� � 79.0� � 71.7�
� 72.6� � 70.6� 0.3� 12.2� Service charges on deposit accounts 6.8�
7.1� 7.3� 7.0� 6.9� (4.2) (1.4) Other noninterest income 5.4� 6.2�
5.5� 6.8� 5.2� (12.9) 3.8� Securities gains/(losses) � ----� � 0.2�
� 0.1� � (0.1) � ----� (100.0) ----� Total noninterest income �
91.4� � 92.5� � 84.6� � 86.3� � 82.7� (1.2) 10.5� Net interest and
noninterest income � 178.7� � 178.4� � 171.0� � 172.5� � 166.0�
0.2� 7.7� NONINTEREST EXPENSE Salaries and wages 41.8� 40.3� 39.5�
37.8� 36.9� 3.7� 13.3� Incentives and bonuses 14.0� 10.3� 8.9�
10.3� 10.3� 35.9� 35.9� Employment benefits 14.6� 11.4� 11.4� 11.9�
13.5� 28.1� 8.1� Net occupancy 6.8� 6.7� 6.7� 6.3� 5.9� 1.5� 15.3�
Furniture, equipment, and supplies 9.7� 10.3� 9.2� 9.9� 9.0� (5.8)
7.8� Other noninterest expense: Advertising and contributions 2.7�
3.2� 2.2� 2.1� 1.9� (15.6) 42.1� Servicing and consulting fees 2.4�
2.9� 2.8� 2.4� 2.3� (17.2) 4.3� Subadvisor expense 2.5� 2.3� 2.7�
2.9� 2.8� 8.7� (10.7) Travel, entertainment, and training 2.2� 3.4�
2.5� 2.3� 2.2� (35.3) ----� Originating and processing fees 2.5�
3.1� 2.8� 2.4� 2.8� (19.4) (10.7) Other expense � 11.3� � 11.0� �
9.9� � 10.0� � 9.9� 2.7� 14.1� Total other noninterest expense �
23.6� � 25.9� � 22.9� � 22.1� � 21.9� (8.9) 7.8� Total noninterest
expense before impairment 110.5� 104.9� 98.6� 98.3� 97.5� 5.3�
13.3� Impairment write-down � ----� � ----� � 72.3� � ----� � ----�
----� ----� Total noninterest expense � 110.5� � 104.9� � 170.9� �
98.3� � 97.5� 5.3� 13.3� Income before income taxes and minority
interest 68.2� 73.5� 0.1� 74.2� 68.5� (7.2) (0.4) Applicable income
taxes � 24.6� � 26.3� � (5.0) � 27.2� � 24.3� (6.5) 1.2� Net income
before minority interest 43.6� 47.2� 5.1� 47.0� 44.2� (7.6) (1.4)
Minority interest � 0.6� � (0.3) � (0.1) � 0.1� � 0.1� ----� 500.0�
Net income $ 43.0� $ 47.5� $ 5.2� $ 46.9� $ 44.1� (9.5) (2.5) � �
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the
three months ended March 31, 2007 � STATEMENT OF CONDITION � %
Change From: Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, Prior
Prior (In millions) � 2007� � 2006� � 2006� � 2006� � 2006� �
Quarter � Year ASSETS Cash and due from banks $ 222.2� � $ 249.7� �
$ 268.4� � $ 258.5� � $ 219.2� (11.0) 1.4� Federal funds sold and
securities purchased under agreements to resell � 68.9� � � 68.9� �
� 38.4� � � 66.7� � � 44.9� ----� 53.5� Investment securities: U.S.
Treasury 102.5� 125.2� 230.8� 181.4� 136.8� (18.1) (25.1)
Government agencies 743.9� 807.1� 533.0� 416.5� 394.5� (7.8) 88.6�
Obligations of state and political subdivisions 9.1� 9.5� 9.4�
10.4� 10.5� (4.2) (13.3) Preferred stock 74.2� 90.5� 91.0� 88.1�
90.2� (18.0) (17.7) Mortgage-backed securities 656.2� 689.5� 726.8�
751.0� 806.4� (4.8) (18.6) Other securities � � 391.5� � � 392.8� �
� 391.3� � � 389.8� � � 401.9� (0.3) (2.6) Total investment
securities � 1,977.4� � � 2,114.6� � � 1,982.3� � � 1,837.2� � �
1,840.3� (6.5) 7.4� Loans: Commercial, financial, and agricultural
2,455.2� 2,533.5� 2,378.1� 2,445.5� 2,445.9� (3.1) 0.4� Real estate
- construction 1,665.5� 1,663.9� 1,610.9� 1,574.3� 1,411.9� 0.1�
18.0� Mortgage - commercial � � 1,378.3� � � 1,296.1� � � 1,254.5�
� � 1,222.8� � � 1,245.4� 6.3� 10.7� Total commercial loans �
5,499.0� � � 5,493.5� � � 5,243.5� � � 5,242.6� � � 5,103.2� 0.1�
7.8� Mortgage - residential 553.5� 536.9� 518.7� 503.0� 473.4� 3.1�
16.9� Consumer 1,503.9� 1,517.0� 1,489.7� 1,452.4� 1,408.5� (0.9)
6.8� Secured with liquid collateral � � 532.0� � � 547.5� � �
528.3� � � 557.2� � � 553.9� (2.8) (4.0) Total retail loans �
2,589.4� � � 2,601.4� � � 2,536.7� � � 2,512.6� � � 2,435.8� (0.5)
6.3� Total loans net of unearned income 8,088.4� 8,094.9� 7,780.2�
7,755.2� 7,539.0� (0.1) 7.3� Reserve for loan losses � � (94.5) � �
(94.2) � � (93.6) � � (94.3) � � (93.6) 0.3� 1.0� Net loans �
7,993.9� � � 8,000.7� � � 7,686.6� � � 7,660.9� � � 7,445.4� (0.1)
7.4� Premises and equipment 148.8� 150.3� 151.6� 151.2� 148.7�
(1.0) 0.1� Goodwill 291.5� 291.4� 291.1� 363.0� 348.5� ----� (16.4)
Other intangibles 34.2� 35.4� 38.8� 38.9� 35.0� (3.4) (2.3) Other
assets � � 254.0� � � 246.0� � � 251.9� � � 236.9� � � 200.2� 3.3�
26.9� Total assets $ 10,990.9� � $ 11,157.0� � $ 10,709.1� � $
10,613.3� � $ 10,282.2� (1.5) 6.9� � LIABILITIES AND STOCKHOLDERS'
EQUITY Deposits: Noninterest-bearing demand $ 792.0� $ 913.6� $
861.3� $ 813.8� $ 830.2� (13.3) (4.6) Interest-bearing: Savings
422.7� 313.8� 292.5� 313.1� 328.0� 34.7� 28.9� Interest-bearing
demand 2,336.1� 2,417.5� 2,417.5� 2,355.9� 2,352.1� (3.4) (0.7)
Certificates under $100,000 1,014.2� 1,012.6� 995.5� 991.1� 960.4�
0.2� 5.6� Local certificates $100,000 and over � � 447.6� � �
474.4� � � 574.7� � � 550.6� � � 513.3� (5.6) (12.8) Total core
deposits 5,012.6� 5,131.9� 5,141.5� 5,024.5� 4,984.0� (2.3) 0.6�
National money market deposits 142.5� 143.1� ----� ----� ----�
(0.4) ----� National certificates $100,000 and over � � 2,970.6� �
� 3,054.1� � � 2,742.7� � � 2,760.6� � � 2,707.2� (2.7) 9.7� Total
deposits � 8,125.7� � � 8,329.1� � � 7,884.2� � � 7,785.1� � �
7,691.2� (2.4) 5.6� Short-term borrowings: Federal funds purchased
and securities sold under agreements to repurchase 1,153.5�
1,145.8� 1,161.7� 1,160.0� 984.2� 0.7� 17.2� U.S. Treasury demand �
� ----� � � 13.0� � � 7.0� � � 24.5� � � 0.6� (100.0) (100.0) Total
short-term borrowings � 1,153.5� � � 1,158.8� � � 1,168.7� � �
1,184.5� � � 984.8� (0.5) 17.1� Other liabilities 229.8� 221.3�
196.4� 183.1� 169.4� 3.8� 35.7� Long-term debt � � 389.5� � �
388.5� � � 395.2� � � 393.4� � � 393.2� 0.3� (0.9) Total
liabilities � 9,898.5� � � 10,097.7� � � 9,644.5� � � 9,546.1� � �
9,238.6� (2.0) 7.1� Minority interest 0.2� ----� 0.3� 0.3� 0.3�
----� (33.3) Stockholders' equity � � 1,092.2� � � 1,059.3� � �
1,064.3� � � 1,066.9� � � 1,043.3� 3.1� 4.7� Total liabilities and
stockholders' equity $ 10,990.9� � $ 11,157.0� � $ 10,709.1� � $
10,613.3� � $ 10,282.2� (1.5) 6.9� � � WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the three months ended March 31,
2007 � AVERAGE STATEMENT OF CONDITION � 2007 First 2006 Fourth 2006
Third 2006 Second 2006 First % Change From: Prior Prior (In
millions) � Quarter � Quarter � Quarter � Quarter � Quarter �
Quarter � Year ASSETS Cash and due from banks $ 213.9� � $ 218.2� �
$ 206.9� � $ 209.3� � $ 208.0� (2.0) 2.8� Federal funds sold and
securities purchased under agreements to resell � 57.3� � � 144.8�
� � 28.8� � � 18.8� � � 17.5� (60.4) 227.4� Investment securities:
U.S. Treasury 123.6� 177.4� 157.0� 146.7� 144.6� (30.3) (14.5)
Government agencies 728.9� 642.1� 475.9� 394.1� 400.8� 13.5� 81.9�
Obligations of state and political subdivisions 9.1� 9.4� 9.6�
10.5� 10.5� (3.2) (13.3) Preferred stock 85.1� 90.7� 89.4� 89.2�
91.4� (6.2) (6.9) Mortgage-backed securities 668.8� 705.5� 735.1�
780.1� 828.4� (5.2) (19.3) Other securities � � 390.3� � � 392.5� �
� 390.0� � � 397.3� � � 403.2� (0.6) (3.2) Total investment
securities � 2,005.8� � � 2,017.6� � � 1,857.0� � � 1,817.9� � �
1,878.9� (0.6) 6.8� Loans: Commercial, financial, and agricultural
2,466.2� 2,430.5� 2,407.7� 2,463.5� 2,448.1� 1.5� 0.7� Real estate
- construction 1,669.8� 1,634.9� 1,588.7� 1,517.5� 1,322.0� 2.1�
26.3� Mortgage - commercial � � 1,339.9� � � 1,281.4� � � 1,238.5�
� � 1,212.8� � � 1,229.8� 4.6� 9.0� Total commercial loans �
5,475.9� � � 5,346.8� � � 5,234.9� � � 5,193.8� � � 4,999.9� 2.4�
9.5� Mortgage - residential 542.1� 524.8� 507.8� 484.2� 463.3� 3.3�
17.0� Consumer 1,512.3� 1,496.1� 1,470.5� 1,441.6� 1,423.9� 1.1�
6.2� Secured with liquid collateral � � 541.7� � � 545.2� � �
546.1� � � 556.3� � � 558.2� (0.6) (3.0) Total retail loans �
2,596.1� � � 2,566.1� � � 2,524.4� � � 2,482.1� � � 2,445.4� 1.2�
6.2� Total loans net of unearned income 8,072.0� 7,912.9� 7,759.3�
7,675.9� 7,445.3� 2.0� 8.4� Reserve for loan losses � � (93.2) � �
(91.6) � � (93.5) � � (91.8) � � (90.4) 1.7� 3.1� Net loans �
7,978.8� � � 7,821.3� � � 7,665.8� � � 7,584.1� � � 7,354.9� 2.0�
8.5� Premises and equipment 150.3� 151.5� 152.1� 150.3� 148.5�
(0.8) 1.2� Goodwill 291.4� 290.7� 362.3� 357.3� 348.3� 0.2� (16.3)
Other intangibles 34.8� 38.1� 38.5� 37.3� 35.6� (8.7) (2.2) Other
assets � � 245.0� � � 241.2� � � 229.0� � � 209.6� � � 193.6� 1.6�
26.5� Total assets $ 10,977.3� � $ 10,923.4� � $ 10,540.4� � $
10,384.6� � $ 10,185.3� 0.5� 7.8� � LIABILITIES AND STOCKHOLDERS'
EQUITY Deposits: Noninterest-bearing demand $ 749.1� $ 793.6� $
737.2� $ 742.0� $ 763.5� (5.6) (1.9) Interest-bearing: Savings
365.3� 294.7� 304.1� 321.2� 326.0� 24.0� 12.1� Interest-bearing
demand 2,250.4� 2,304.8� 2,374.1� 2,364.4� 2,346.8� (2.4) (4.1)
Certificates under $100,000 1,012.9� 1,009.3� 988.1� 980.9� 938.6�
0.4� 7.9� Local certificates $100,000 and over � 457.7� � � 535.8�
� � 546.5� � � 540.0� � � 463.3� (14.6) (1.2) Total core deposits
4,835.4� 4,938.2� 4,950.0� 4,948.5� 4,838.2� (2.1) (0.1) National
money market deposits 143.0� 69.9� ----� ----� ----� 104.6� ----�
National certificates $100,000 and over � 2,992.1� � � 3,042.2� � �
2,864.6� � � 2,656.1� � � 2,647.7� (1.6) 13.0� Total deposits �
7,970.5� � � 8,050.3� � � 7,814.6� � � 7,604.6� � � 7,485.9� (1.0)
6.5� � Short-term borrowings: Federal funds purchased and
securities sold under agreements to repurchase 1,318.5� 1,221.4�
1,048.8� 1,146.0� 1,082.0� 7.9� 21.9� U.S. Treasury demand � � 5.4�
� � 10.0� � � 6.8� � � 16.0� � � 11.7� (46.0) (53.8) Total
short-term borrowings � 1,323.9� � � 1,231.4� � � 1,055.6� � �
1,162.0� � � 1,093.7� 7.5� 21.0� Other liabilities 231.5� 183.0�
193.9� 164.4� 180.0� 26.5� 28.6� Long-term debt � � 388.8� � �
391.1� � � 394.2� � � 393.3� � � 399.0� (0.6) (2.6) Total
liabilities � 9,914.7� � � 9,855.8� � � 9,458.3� � � 9,324.3� � �
9,158.6� 0.6� 8.3� Minority interest 0.4� 0.2� 0.4� 0.3� 0.3�
100.0� 33.3� Stockholders' equity � � 1,062.2� � � 1,067.4� � �
1,081.7� � � 1,060.0� � � 1,026.4� (0.5) 3.5� Total liabilities and
stockholders' equity $ 10,977.3� � $ 10,923.4� � $ 10,540.4� � $
10,384.6� � $ 10,185.3� 0.5� 7.8� � � WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY As of and for the three months ended March 31,
2007 � YIELDS AND RATES � � YIELDS/RATES (tax-equivalent basis) �
2007 First Quarter � 2006 Fourth Quarter � 2006 Third Quarter �
2006 Second Quarter � 2006 First Quarter EARNING ASSETS: Federal
funds sold and securities purchased under agreements to resell
5.05� % 5.23� % 4.61� % 5.00� % 4.17� % � U.S. Treasury 4.11� 3.97�
4.03� 3.54� 3.43� Government agencies 4.70� 4.50� 4.19� 3.94� 4.00�
Obligations of state and political subdivisions 9.00� 8.79� 8.68�
8.82� 8.89� Preferred stock 7.50� 7.70� 7.57� 7.62� 7.70�
Mortgage-backed securities 4.25� 4.18� 4.02� 4.17� 4.23� Other
securities 6.28� 6.43� 6.37� 6.16� 5.60� Total investment
securities 4.95� 4.87� 4.74� 4.69� 4.60� � Commercial, financial,
and agricultural 8.04� 8.02� 8.06� 7.70� 7.33� Real estate -
construction 8.60� 8.69� 8.72� 8.38� 8.00� Mortgage - commercial
8.03� 8.11� 8.09� 7.82� 7.44� Total commercial loans 8.21� 8.24�
8.27� 7.93� 7.53� Mortgage - residential 5.95� 5.76� 5.77� 5.78�
5.92� Consumer 7.41� 7.39� 7.33� 7.10� 6.86� Secured with liquid
collateral 6.81� 6.87� 6.87� 6.44� 5.97� Total retail loans 6.98�
6.95� 6.91� 6.70� 6.48� Total loans 7.81� 7.82� 7.83� 7.53� 7.19�
Total earning assets 7.22� 7.19� 7.21� 6.97� 6.65� � FUNDS USED TO
SUPPORT EARNING ASSETS: Savings 1.29� 0.51� 0.42� 0.39� 0.32�
Interest-bearing demand 1.20� 1.19� 1.10� 1.04� 1.02� Certificates
under $100,000 4.35� 4.22� 3.87� 3.51� 3.27� Local certificates
$100,000 and over 5.00� 4.81� 4.71� 4.35� 3.95� Core
interest-bearing deposits 2.42� 2.35� 2.17� 1.99� 1.81� National
money market deposits 5.53� 5.39� ----� ----� ----� National
certificates $100,000 and over 5.43� 5.46� 5.37� 5.05� 4.53� Total
interest- bearing deposits 3.73� 3.68� 3.47� 3.18� 2.88� � Federal
funds purchased and securities sold under agreements to repurchase
4.97� 5.03� 5.05� 4.73� 4.25� U.S. Treasury demand 5.02� 5.03�
5.16� 4.80� 4.27� Total short-term borrowings 4.97� 5.03� 5.05�
4.73� 4.25� Long-term debt 6.77� 6.76� 6.79� 6.70� 6.34� Total
interest-bearing liabilities 4.04� 4.00� 3.82� 3.56� 3.23� Total
funds used to support earning assets 3.55� 3.52� 3.36� 3.13� 2.83�
Net interest margin (tax-equivalent basis) 3.67� 3.67� 3.85� 3.84�
3.82� � Year-to-date net interest margin 3.67� 3.79� 3.84� 3.83�
3.82� � Prime rate 8.25� 8.25� 8.25� 7.90� 7.43� � Tax-equivalent
net interest income (in millions) $ 91.9� � $ 93.5� � $ 94.1� � $
91.5� � $ 88.3� � Average earning assets at historical cost
10,163.3� 10,105.2� 9,694.5� 9,560.0� 9,375.6� Average fair
valuation adjustment on investment securities available for sale �
(28.2) � � (29.9) � � (49.4) � � (47.4) � � (33.9) � Average
earnings assets 10,135.1� � 10,075.3� � 9,645.1� � 9,512.6� �
9,341.7� � � Average rates are calculated using average balances
based on historical cost and do not reflect fair valuation
adjustments. � � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As
of and for the three months ended March 31, 2007 � SUPPLEMENTAL
INFORMATION � Three Months Ended % Change From: � Mar. 31, Dec. 31,
Sept. 30, June 30, Mar. 31, Prior Prior � � 2007� � � � 2006� � � �
2006� � � � 2006� � � � 2006� � � Quarter � Year NET INCOME Net
income per share Basic $ 0.63� $ 0.69� $ 0.08� $ 0.69� $ 0.65�
(8.7) (3.1) Diluted 0.62� 0.68� 0.07� 0.67� 0.64� (8.8) (3.1)
Weighted average shares outstanding (in thousands) Basic 68,525�
68,455� 68,647� 68,475� 68,070� Diluted 69,653� 69,680� 69,933�
69,776� 69,434� Net income as a percentage of: Average assets 1.59�
% � 1.73� % � 0.20� % � 1.81� % � 1.76� % Average stockholders'
equity 16.42� 17.66� 1.91� 17.75� 17.42� � ASSETS UNDER MANAGEMENT
* (in billions) Wilmington Trust $ 31.8� $ 31.3� $ 29.1� $ 28.3� $
29.2� 1.6� 8.9� Roxbury Capital Management 3.1� 3.1� 3.1� 3.3� 3.5�
----� (11.4) Cramer Rosenthal McGlynn � 11.2� � � � 10.6� � � �
9.8� � � � 9.4� � � � 9.7� 5.7� 15.5� Combined assets under
management $ 46.1� � � $ 45.0� � � $ 42.0� � � $ 41.0� � � $ 42.4�
2.4� 8.7� � * Assets under management include estimates for values
associated with certain assets that lack readily ascertainable
values, such as limited partnership interests. � ASSETS UNDER
ADMINISTRATION ** (in billions) Wilmington Trust $ 112.1� $ 107.5�
$ 102.4� $ 102.7� $ 104.0� 4.3� 7.8� ** Includes Wilmington Trust
assets under management � FULL-TIME EQUIVALENT HEADCOUNT Full-time
equivalent headcount 2,579� 2,562� 2,520� 2,515� 2,475� � CAPITAL
(in millions, except per share amounts) Average stockholders'
equity $ 1,062.2� $ 1,067.4� $ 1,081.7� $ 1,060.0� $ 1,026.4� (0.5)
3.5� Period-end primary capital 1,186.7� 1,153.5� 1,157.9� 1,161.2�
1,136.9� 2.9� 4.4� Per share: Book value 15.90� 15.47� 15.55�
15.54� 15.30� 2.8� 3.9� Quarterly dividends declared 0.315� 0.315�
0.315� 0.315� 0.30� ----� 5.0� Year-to-date dividends declared
0.315� 1.245� 0.93� 0.615� 0.30� Average stockholders' equity to
assets 9.68� % � 9.78� % � 10.28� % � 10.23� % � 10.09� % Total
risk-based capital ratio 12.53� 12.10� 12.32� 11.70� 12.10� Tier 1
risk-based capital ratio 8.64� 8.25� 8.28� 7.67� 7.70� Tier 1
leverage capital ratio 7.64� 7.39� 7.34� 6.98� 6.94� � CREDIT
QUALITY (in millions) Period-end reserve for loan losses $ 94.5� $
94.2� $ 93.6� $ 94.3� $ 93.6� Period-end non-performing assets:
Nonaccrual 23.1� 31.0� 32.0� 29.5� 35.5� OREO 4.8� 4.8� 4.8� 4.8�
0.2� Renegotiated loans 4.8� ----� ----� 9.9� 4.9� Period-end past
due 90 days 7.3� 5.8� 7.7� 4.7� 10.1� � Gross charge-offs 5.1� 7.1�
8.6� 5.7� 3.2� Recoveries 1.8� 1.2� 1.3� 2.2� 1.4� Net charge-offs
3.3� 5.9� 7.3� 3.5� 1.8� Year-to-date net charge-offs 3.3� 18.5�
12.6� 5.3� 1.8� � Ratios: Period-end reserve to loans 1.17� % �
1.16� % � 1.20� % � 1.22� % � 1.24� % Period-end non-performing
assets to loans 0.40� 0.44� 0.47� 0.57� 0.54� Period-end loans past
due 90 days to total loans 0.09� 0.07� 0.10� 0.06� 0.13� Net
charge-offs to average loans 0.04� 0.07� 0.09� 0.05� 0.02� � �
INTERNAL RISK RATING Pass 96.89� % � 97.39� % � 97.41� % � 97.28� %
� 97.20� % Watchlisted 2.32� 1.82� 1.73� 1.89� 1.97� Substandard
0.77� 0.79� 0.86� 0.76� 0.76� Doubtful 0.01� ----� ----� 0.07�
0.07� � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and
for the three months ended March 31, 2007 � QUARTERLY BUSINESS
SEGMENT REPORT � Three Months Ended � Mar. 31, Dec. 31, Sept. 30,
June 30, Mar. 31, (In millions) 2007� � 2006� � 2006� � 2006� �
2006� REGIONAL BANKING Net interest income $ 83.9� $ 84.4� $ 85.7�
$ 83.9� $ 81.0� Provision for loan losses (3.6) (6.4) (6.7) (3.7)
(3.8) Noninterest income 12.5� 13.6� 13.1� 13.1� 12.1� Noninterest
expense � 42.5� � � 41.1� � � 39.9� � � 38.4� � � 39.0� Income
before taxes & minority interest 50.3� 50.5� 52.2� 54.9� 50.3�
� Regional Banking efficiency ratio 43.68% � 41.56% � 40.02% �
39.22% 41.49% � WEALTH ADVISORY SERVICES Net interest income $ 6.3�
$ 6.6� $ 6.4� $ 6.3� $ 6.5� Provision for loan losses ----� (0.1)
0.1� (0.5) (0.2) Noninterest income 47.6� 47.7� 43.6� 44.5� 43.4�
Noninterest expense � 46.4� � � 41.6� � � 38.8� � � 40.6� � � 38.5�
Income before taxes & minority interest 7.5� 12.6� 11.3� 9.7�
11.2� � Wealth Advisory Services efficiency ratio 85.93% � 76.47% �
77.45% � 79.76% 77.00% � CORPORATE CLIENT SERVICES Net interest
income $ 3.7� $ 4.3� $ 4.4� $ 3.4� $ 2.8� Provision for loan losses
----� ----� ----� ----� ----� Noninterest income 26.8� 26.1� 23.6�
23.1� 22.5� Noninterest expense � 21.6� � � 22.2� � � 19.9� � �
19.3� � � 20.0� Income before taxes & minority interest 8.9�
8.2� 8.1� 7.2� 5.3� � Corporate Client Services efficiency ratio
70.82% � 72.79% � 70.82% � 72.56% 79.05% � AFFILIATE MANAGERS * Net
interest income $ (3.0) $ (2.9) $ (3.5) $ (3.2) $ (3.0) Provision
for loan losses ----� ----� ----� ----� ----� Noninterest income
4.5� 5.1� 4.3� 5.6� 4.7� Noninterest expense � ----� � � ----� � �
72.3� � � ----� � � ----� Income before taxes & minority
interest 1.5� 2.2� (71.5) 2.4� 1.7� � TOTAL WILMINGTON TRUST
CORPORATION Net interest income $ 90.9� $ 92.4� $ 93.0� $ 90.4� $
87.3� Provision for loan losses (3.6) (6.5) (6.6) (4.2) (4.0)
Noninterest income 91.4� 92.5� 84.6� 86.3� 82.7� Noninterest
expense � 110.5� � � 104.9� � � 170.9� � � 98.3� � � 97.5� Income
before taxes & minority interest $ 68.2� � $ 73.5� � $ 0.1� � $
74.2� � $ 68.5� � Corporation efficiency ratio 60.28% � 56.40% �
95.64% � 55.29% 57.02% * 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.
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