WL Wilmington Trust Corp. (DE)

Wilmington Trust Corporation (NYSE:WL) reported net income of $22.9 million for the 2008 third quarter, or $0.34 per share (on a diluted basis). Third quarter results were reduced by a $19.7 million securities loss on perpetual preferred stocks issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). On an after-tax basis, this charge reduced third quarter net income by $12.5 million, or $0.19 per share (on a diluted basis). The company initially disclosed this loss in a filing with the Securities and Exchange Commission on September 11, 2008. On an operating basis (excluding the securities loss), net income for the 2008 third quarter was $35.4 million, or $0.53 per share (on a diluted basis). Management believes that operating results present a more relevant measure of ongoing business trends and offer a better basis of comparison with prior periods. The financial statements in this report include a reconciliation of results that include securities losses and impairment charges (reported results) with those that do not (operating results). �In the face of extraordinary market conditions, we continued to focus on our clients, our business plan, and opportunities for growth, and these efforts were evident in all three of our businesses,� said Ted T. Cecala, Wilmington Trust chairman and chief executive officer. �Compared to the year-ago third quarter, advisory revenue was up 14%, and loan balances were 15% higher, on average. In addition, the net interest margin stabilized, and credit quality remained in line with our historical experience.� On October 16, 2008, the Board of Directors declared a regular quarterly cash dividend of $0.345 per share. This amount reflects the 3% increase the Board approved in April 2008, which marked the 27th consecutive year that Wilmington Trust has raised its cash dividend. The quarterly dividend will be paid on November 17, 2008, to stockholders of record on November 3, 2008. Significant factors in 2008 third quarter results On average, $373.1 million of loans were added during the 2008 third quarter, and loan balances were $9.46 billion. Loan growth, plus stability in the net interest margin, generated net interest income that was 7% higher than for the 2008 second quarter. Net charge-offs were lower than for the 2008 second quarter, but the combination of loan growth and higher levels of nonperforming loans caused an increase in the provision for loan losses. Corporate Client Services (CCS) revenue was 46% higher than for the year-ago third quarter, with all components of the business contributing to the growth. Wealth Advisory Services (WAS) revenue was 2% higher than for the year-ago third quarter, and down slightly from the 2008 second quarter, as financial market volatility reduced trust and investment advisory revenue. Affiliate money manager Roxbury Capital Management (RCM) returned to profitability. On a combined basis, advisory fees from CCS, WAS, and the affiliate money managers generated 52% of total net interest and noninterest income for the quarter (excluding securities losses and after amortization and the provision for loan losses), and 30% of pre-tax operating net income. Operating expenses and the number of staff members were higher than for the year-ago third quarter, mainly because the year-ago figures did not reflect the acquisition of AST Capital Trust Company (AST), which added approximately 179 staff members in Phoenix, Arizona, and Wilmington, Delaware. Compared to the 2008 second quarter, operating expenses were 2% higher. Most of this increase was in salaries and primarily reflected the additions of: � � � � � � � � WAS staff in the family office practice and Boston office. CCS capital markets and retirement services staff. Regional Banking staff in the Maryland, New Jersey, and Pennsylvania markets. All regulatory capital ratios continued to exceed the amounts required by the Federal Reserve Board to be considered a well-capitalized institution. Corporate Client Services Capital markets revenue was 17% higher than for the year-ago third quarter, due to demand for services that support tender option bonds, repackaged corporate and municipal debt, and corporate defaults and bankruptcies. This activity was not strong enough to offset the absence of capital markets transactions in the 2008 third quarter, which is why revenue from these services was slightly lower on a linked-quarter basis. Retirement services revenue reflected the April 2008 acquisition of AST, which assumed the Wilmington Trust name in August 2008. The 2008 third quarter marked the first full quarter of revenue and expenses from this acquisition. Continued weakness in the capital markets overall also affected entity management revenue, which was up 4% from the year-ago third quarter, but 11% lower than for the 2008 second quarter. Demand remained high for CCS investment and cash management services. Revenue from these services was up 17% from the year-ago third quarter and 3% from the 2008 second quarter. The CCS business produced 14% of the company�s total pre-tax operating net income for the 2008 third quarter. Wealth Advisory Services Significant volatility in the financial markets masked new business development in WAS. Trust and investment advisory revenue was 3% lower than for the year-ago third quarter, and 2% lower than for the 2008 second quarter. In comparison, at September 30, 2008, the Standard & Poor�s 500 Index was 24% lower than at September 30, 2007, and 9% lower than at June 30, 2008. Management uses the S&P 500 as a benchmark for comparison because its composition mirrors, to a large extent, the mix of equities in client portfolios. Revenue from planning and other services was 9% higher than for the year-ago third quarter, primarily reflecting demand for family office services. Compared to the 2008 second quarter, planning revenue was unchanged, as new business development was offset by lower revenue from tax services, which typically are highest in the second quarter of each year. Mutual fund fees were 28% higher than for the year-ago third quarter, and 6% higher than for the 2008 second quarter. The increase resulted mainly from asset inflows in the Wilmington U.S. Government Money Market Fund and the Wilmington Tax-Exempt Money Market Fund, as some clients opted to place funds in less volatile instruments than equities. Most of Wilmington Trust�s mutual funds are money market funds. Three of these funds � the Wilmington Prime Money Market Fund, the Wilmington U.S. Government Money Market Fund, and the Wilmington Tax-Exempt Money Market Fund � have applied to participate in the new insurance protection available under the U.S. Treasury Department�s Temporary Money Market Guarantee Program. These funds are managed to maintain a stable $1.00 share price. While none has ever slipped from that level, the company�s participation in the voluntary Treasury Department program is designed to offer mutual fund shareholders additional assurance in light of the extraordinary market conditions that prompted the creation of the program. More information about this is available at www.wilmingtontrust.com under Media/Press Releases/October 3. Regional Banking The Regional Banking business continued to benefit from economic conditions in the mid-Atlantic region, where unemployment rates remained below the U.S. average. Delaware�s unemployment rate for August 2008 (the most recent data available) was 4.9%, compared with the U.S. average of 6.1%. The August unemployment rate was 5.8% for Pennsylvania, 5.9% for New Jersey, and 4.5% for Maryland. Loan balances, on average, were $9.46 billion. This was 15% higher than for the year-ago third quarter, and 4% higher than for the 2008 second quarter. At period-end, loan balances were $9.59 billion, up 15% year-over-year and up 3% from the 2008 second quarter. The Delaware market accounted for approximately 54% of total period-end loans; the Pennsylvania market accounted for approximately 24%; and the Maryland market accounted for approximately 10%. Commercial loan balances were $6.55 billion, on average, for the 2008 third quarter. This was 17% higher than for the year-ago third quarter, and 5% higher than for the 2008 second quarter. At period-end, commercial loan balances were $6.67 billion. The Delaware market accounted for approximately 55% of commercial loans at period-end; the Pennsylvania market accounted for approximately 27%; and the Maryland market accounted for approximately 9%. The largest linked-quarter increase in loan balances (on a dollar-amount basis) was in commercial and industrial loans (recorded as commercial, financial, and agricultural loans). These loans were to clients mainly in the Delaware and Pennsylvania markets, and represented a variety of industry sectors. The increase in commercial mortgages reflected business from clients who, until recent changes in the credit markets, had found more favorable financing terms with specialty mortgage lenders. Consumer loan balances were $1.78 billion, on average, up 16% from the year-ago third quarter and 3% from the 2008 second quarter. Most of this growth was in home equity lines of credit and indirect loans. Consumer loans, on average (in millions) 2008 Q3 � 2008 Q2 � 2007 Q3 Home equity lines of credit $ 349.7 � $ 327.2 � $ 298.2 Indirect loans 952.3 889.6 715.8 Credit card loans 67.3 67.4 64.8 Other consumer loans1 � 411.0 � � 445.6 � � 454.2 Total consumer loans $ 1,780.3 $ 1,729.8 $ 1,533.0 � 1Includes home equity loans, installment loans, and other types of loans to individuals. � On average, core deposits were up 8% from the year-ago third quarter, mainly due to increases in savings deposits generated by WTDirect, the company�s online distribution channel. Compared to the 2008 second quarter, core deposits were slightly higher. Credit quality in the 2008 third quarter Compared to the 2008 second quarter, net charge-offs decreased, but nonperforming asset levels increased. The combination of this increase and loan growth, plus risk rating downgrades, caused the provision and reserve for loan losses to increase. The percentage of loans with pass ratings in the internal risk rating analysis remained at 96%. The provision for loan losses was $19.6 million, up from $18.5 million for the 2008 second quarter. The reserve for loan losses increased to $122.2 million from $113.1 million at June 30, 2008. The loan loss reserve ratio increased 5 basis points from the 2008 second quarter to 1.27%. Nonaccruing loans were $28.5 million higher than for the 2008 second quarter. Two client relationships accounted for most of this increase. These relationships were with commercial real estate construction clients with single-family housing projects in central and southern Delaware. Other real estate owned decreased $2.2 million from June 30, 2008, due to the successful disposition of properties in a luxury home development in Montgomery County, Pennsylvania. Loans past due 90 days or more were $6.9 million higher than for the 2008 second quarter. Approximately $4.9 million of this amount was for a commercial construction/real estate loan to a Maryland-based client. Total net charge-offs for the 2008 third quarter were $10.5 million, down from $11.8 million for the 2008 second quarter, mainly because there were no commercial real estate/construction charge-offs. There was a $2.0 million increase in commercial, financial, and agricultural loan charge-offs. This increase was associated mainly with one previously nonaccruing loan to a sports equipment retailer. The net charge-off ratio for the second quarter was 11 basis points, down from 13 basis points for the 2008 second quarter. The year-to-date net charge-off ratio was 30 basis points. Commercial loan charge-offs are inherently unpredictable, mainly because: Negotiations with commercial borrowers can affect the timing and extent of charge-offs, or avert them altogether. Associated legal proceedings can also affect the timing and extent of charge-offs. On a percentage basis, the composition of the loan portfolio remained relatively unchanged. Additional disclosures about credit quality appear in the financial statement section of this release. Net interest margin The net interest margin was 3.27%, which was 10 basis points higher than for the 2008 second quarter, but 46 basis points lower than for the year-ago third quarter. These changes reflected the company�s asset-sensitivity and the market interest rate environment. Between late September 2007 and May 2008, the Federal Open Market Committee (FOMC) reduced rates seven times for a total of 325 basis points. With most of the company�s floating rate loans repricing within 30 days of a rate change, loan yields began to reflect the downward pricing adjustments in the 2007 fourth quarter and continued in the first half of 2008. Most of the corresponding decreases in funding costs did not begin until the 2008 first quarter, however, because funding costs typically take 90 to 120 days to reprice. Funding costs continued to lag loan repricing for most of the second quarter. In the third quarter, as market interest rates remained stable, the disparity between the repricing of loans and the repricing of funding costs narrowed substantially. The FOMC�s 50-basis-point rate reduction on October 8 will compress the margin. It is difficult to forecast accurately how other aspects of current dislocation within the credit markets, especially the disparity between the federal funds target rate and the 30-day London interbank offered rate (Libor), also might affect the margin. At September 30, 2008, the federal funds target rate was 2.00%, while the 30-day Libor was 3.93%. The pricing on approximately 40% of Wilmington Trust�s commercial loans is tied to the 30-day Libor. In the near term, upward repricing of these loans will offset some of the margin compression that will be caused by the recent FOMC rate reduction. Eventually, however, higher Libor rates will be a factor in funding costs, which will cause the margin to narrow. The exact path and speed with which Libor adjusts will affect the extent and timing of the effect on the margin. Should term Libor rates return to their historic relationship with federal fund rates, management expects approximately 7 basis points of margin compression over a 12-month period after all loan and funding repricing has occurred. More information about asset/liability matching and funding sources is in the supplemental information statement in this release. Common equity offering On September 22, 2008, Wilmington Trust initiated an at-the-market offering of its common stock. This offering is described in a base prospectus and prospectus supplement filed with the Securities and Exchange Commission on September 22, 2008. These documents are available at www.wilmingtontrust.com under Investor Relations/SEC Filings. Under this offering, Wilmington Trust may issue shares for up to an aggregate sales price of $150 million. The proceeds of this offering will be used for general corporate purposes. Sales of these shares will occur through ordinary brokers� transactions on the New York Stock Exchange or otherwise at market prices prevailing at the time of the sale, at prices related to the prevailing market prices, at negotiated prices, with Merrill Lynch acting as sales agent. Wilmington Trust and Merrill Lynch will determine jointly, as often as daily, how many shares to sell under this offering and at what price to sell them. Shares will be available under this offering until the aggregate sales price of $150 million is reached, or until Wilmington Trust or Merrill Lynch decide to terminate it. During the 2008 third quarter, 695,900 shares were issued under this offering. Gross proceeds were $20.8 million, with an average sale price of $29.95 per share. Net of commissions, proceeds totaled $20.4 million, with an average sale price of $29.35 per share. Investment securities portfolio Wilmington Trust maintains an investment securities portfolio for its own account to generate cash flow, to help manage interest rate risk, and to provide collateral for deposits and other liabilities. There are no client funds in this portfolio. At September 30, 2008, the value of the investments in this portfolio was $1.46 billion, which was 4% lower than at June 30, 2008. Two types of investments accounted for most of this decrease: Perpetual preferred stock issued by Fannie Mae and Freddie Mac, which is included in the preferred stock recorded on the balance sheet. Trust-preferred securities (TruPS), which are included in the amount on the balance sheet recorded as other securities. Fannie Mae and Freddie Mac securities loss On September 7, 2008, the U.S. government placed Fannie Mae and Freddie Mac into conservatorship. This action triggered impairment testing under U.S. generally accepted accounting principles (GAAP). As a result, management determined that the value of Wilmington Trust�s investments in perpetual preferred stock issued by Fannie Mae and Freddie Mac had declined from $21.1 million at June 30, 2008, to $1.4 million as of September 10, 2008. Management further determined that this decline, or impairment, was other-than-temporary under GAAP. The $19.7 million decrease was recorded as a securities loss for the 2008 third quarter. This charge did not affect client funds, the company�s ability to pay dividends, or the company�s status as a well-capitalized institution under Federal Reserve Board guidelines. In addition to the Fannie Mae and Freddie Mac securities, Wilmington Trust�s investment securities portfolio includes perpetual preferred stocks issued by two money center banks and one other company. These stocks are held as available-for-sale. At September 30, 2008, the combined value of all these perpetual preferred stocks was $19.4 million. This represented approximately 1% of Wilmington Trust�s total investment securities portfolio. Trust-preferred securities Wilmington Trust�s TruPS portfolio consists of 38 pooled issues and 9 single-issue securities. The single issues are from money center and large regional banks. The pooled instruments consist of securities issued by banks, insurance companies, and other financial institutions. The pooled TruPS generally are secured by over-collateralization or default protection provided by subordinated tranches. All of the TruPS in the portfolio are structured as �payment-in-kind� securities. This means that, should an issuer defer a scheduled interest payment, the principal held by the investor increases by the amount of the deferred payment. At June 30, 2008, the estimated fair value of the TruPS portfolio was $227.2 million. On July 31, 2008, management changed the accounting treatment for the TruPS portfolio from �available for sale� to �held to maturity,� because the company has the ability and intent to hold these securities until they mature. As of that date, the estimated fair value of these securities was $189.1 million, and the $38.1 million decline in value from June 30, 2008, was recorded on the balance sheet. As of September 30, 2008, the estimated fair value of the TruPS portfolio was $207.9 million, and there were no other-than-temporary impairments among the securities in this portfolio. No further adjustments for changes in the fair value of TruPS were reflected on the balance sheet, because the TruPS are recorded as held-to-maturity securities. Conference call Management will discuss 2008 third quarter results and outlook for the future in a conference call today at 10:00 a.m. (Eastern). Supporting materials, financial statements, and audio streaming will be available at www.wilmingtontrust.com. To access the call from within the United States and Canada, dial 877-407-8031. Callers outside the United States and Canada should dial 201-689-8031. No passcode is necessary. A rebroadcast of the conference call will be available from 1:00 p.m. (Eastern) today until 11:59 p.m. (Eastern) on Friday, October 24. To access the rebroadcast from within the United States and Canada, dial 877-660-6853. Callers outside the United States and Canada should dial 201-612-7415. All callers will need to use account # 286 and replay ID # 299744 to access the rebroadcast. Forward-looking statements This report contains forward-looking statements that reflect our current expectations about our future performance. These statements rely on a number of assumptions and estimates and are subject to various risks and uncertainties that could cause our actual results to differ from our expectations. Factors that could affect our future financial results include, among other things, changes in national or regional economic conditions; changes in market interest rates; significant changes in banking laws or regulations; increased competition in our businesses; higher-than-expected credit losses; the effects of acquisitions; the effects of integrating acquired entities; a substantial and permanent loss of either client accounts and/or assets under management at Wilmington Trust and/or our affiliate money managers, Cramer Rosenthal McGlynn and Roxbury Capital Management; unanticipated changes in regulatory, judicial, or legislative tax treatment of business transactions; and economic uncertainty created by unrest in other parts of the world. About Wilmington Trust Wilmington Trust Corporation (NYSE: WL) is a financial services holding company that provides Regional Banking services throughout the Delaware Valley region, Wealth Advisory Services for high-net-worth clients in 36 countries, and Corporate Client Services for institutional clients in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust Company, which was founded in 1903, is one of the largest personal trust providers in the United States and the leading retail and commercial bank in Delaware. Wilmington Trust Corporation and its affiliates have offices in Arizona, California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the Channel Islands, London, Dublin, Frankfurt, and Luxembourg. For more information, visit www.wilmingtontrust.com. � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � � � HIGHLIGHTS � Three Months Ended � Nine Months Ended � � Sept. 30, 2008 � Sept. 30, 2007 � %Change � � Sept. 30, 2008 � Sept. 30, 2007 � %Change OPERATING RESULTS (in millions) Net interest income $ 91.1 $ 94.1 (3.2 ) $ 263.1 $ 277.7 (5.3 ) Provision for loan losses (19.6 ) (8.9 ) 120.2 (48.0 ) (19.0 ) 152.6 Noninterest income 87.8 94.8 (7.4 ) 283.7 283.2 0.2 Noninterest expense 123.9 110.8 11.8 427.9 327.2 30.8 Net income 22.9 46.2 (50.4 ) 44.9 138.0 (67.5 ) � PER SHARE DATA Basic net income $ 0.34 $ 0.68 (50.0 ) $ 0.67 $ 2.02 (66.8 ) Diluted net income 0.34 0.67 (49.3 ) 0.67 1.99 (66.3 ) Dividends paid 0.345 0.335 3.0 1.025 0.985 4.1 Book value at period end 15.60 16.23 (3.9 ) 15.60 16.23 (3.9 ) Closing price at period end 28.83 38.90 (25.9 ) 28.83 38.90 (25.9 ) Market range: High 46.75 42.14 10.9 46.75 44.55 4.9 Low 20.50 36.46 (43.8 ) 20.50 36.46 (43.8 ) � AVERAGE SHARES OUTSTANDING (in thousands) Basic 67,231 67,698 (0.7 ) 67,155 68,206 (1.5 ) Diluted 67,269 68,582 (1.9 ) 67,400 69,222 (2.6 ) � AVERAGE BALANCE SHEET (in millions) Investment portfolio $ 1,461.7 $ 1,776.9 (17.7 ) $ 1,601.5 $ 1,877.5 (14.7 ) Loans 9,459.0 8,260.3 14.5 9,062.0 8,163.6 11.0 Earning assets 11,076.0 10,075.0 9.9 10,778.2 10,089.9 6.8 Core deposits 5,430.0 5,045.5 7.6 5,323.1 5,029.1 5.8 Stockholders' equity 1,021.3 1,087.8 (6.1 ) 1,088.5 1,090.1 (0.1 ) � � STATISTICS AND RATIOS (net income annualized) Return on average stockholders' equity 8.92 % 16.85 % (47.1 ) 5.51 % 16.93 % (67.5 ) Return on average assets 0.76 % 1.67 % (54.5 ) 0.51 % 1.68 % (69.6 ) Net interest margin (taxable equivalent) 3.27 % 3.73 % (12.3 ) 3.27 % 3.71 % (11.9 ) Dividend payout ratio 101.31 % 49.35 % 105.3 153.67 % 48.84 % 214.6 Full-time equivalent headcount 2,925 2,658 10.0 2,925 2,658 10.0 � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � � � � � QUARTERLY INCOME STATEMENT � Three Months Ended � % Change From (In millions) � � Sept. 30,2008 � June 30, 2008 � Mar. 31, 2008 � Dec. 31, 2007 � Sept. 30, 2007 � Prior Quarter � Prior Year NET INTEREST INCOME Interest income $ 152.1 $ 150.0 $ 162.4 $ 177.9 $ 183.4 1.4 (17.1 ) � Interest expense � � 61.0 � � 64.8 � � 75.5 � � 86.8 � � 89.3 � � (5.9 ) (31.7 ) Net interest income 91.1 85.2 86.9 91.1 94.1 6.9 (3.2 ) � Provision for loan losses � � (19.6 ) � (18.5 ) � (10.0 ) � (9.2 ) � (8.9 ) � 5.9 120.2 Net interest income after provision for loan losses � 71.5 � � 66.7 � � 76.9 � � 81.9 � � 85.2 � � 7.2 (16.1 ) � NONINTEREST INCOME Advisory fees: Wealth Advisory Services Trust and investment advisory fees 39.3 40.2 39.2 42.9 40.5 (2.2 ) (3.0 ) Mutual fund fees 6.8 6.4 6.4 5.9 5.3 6.2 28.3 � � � Planning and other services � � 11.2 � � 11.2 � � 10.1 � � 10.3 � � 10.3 � � ---- 8.7 Total Wealth Advisory Services � 57.3 � � 57.8 � � 55.7 � � 59.1 � � 56.1 � � (0.9 ) 2.1 Corporate Client Services Capital markets services 11.9 12.2 11.6 11.4 10.2 (2.5 ) 16.7 Entity management services 7.7 8.6 7.9 8.1 7.4 (10.5 ) 4.1 Retirement services 11.3 7.5 3.2 3.3 3.0 50.7 276.7 � � � Investment/cash management services 3.5 � � 3.4 � � 3.3 � � 3.4 � � 3.0 � � 2.9 16.7 Total Corporate Client Services � 34.4 � � 31.7 � � 26.0 � � 26.2 � � 23.6 � � 8.5 45.8 Cramer Rosenthal McGlynn 3.8 5.5 4.0 5.5 4.2 (30.9 ) (9.5 ) � � Roxbury Capital Management � � 0.4 � � (1.1 ) � 0.3 � � 0.4 � � 0.4 � � ---- ---- Advisory fees 95.9 93.9 86.0 91.2 84.3 2.1 13.8 � � Amortization of affiliate intangibles � � (2.2 ) � (2.0 ) � (1.2 ) � (1.3 ) � (1.2 ) � 10.0 83.3 � Advisory fees after amortization of affiliate intangibles � 93.7 � � 91.9 � � 84.8 � � 89.9 � � 83.1 � � 2.0 12.8 Service charges on deposit accounts 7.7 7.5 7.6 7.3 7.2 2.7 6.9 Other noninterest income 6.1 6.3 10.4 5.3 4.7 (3.2 ) 29.8 � Securities gains/(losses) � � (19.7 ) � (12.5 ) � ---- � � 0.2 � � (0.2 ) � (57.6 ) N/M Total noninterest income � 87.8 � � 93.2 � � 102.8 � � 102.7 � � 94.8 � � (5.8 ) (7.4 ) � Net interest and noninterest income � 159.3 � � 159.9 � � 179.7 � � 184.6 � � 180.0 � � (0.4 ) (11.5 ) � NONINTEREST EXPENSE Salaries and wages 50.6 48.3 45.7 45.0 44.1 4.8 14.7 Incentives and bonuses 11.8 13.2 14.5 11.5 10.0 (10.6 ) 18.0 Employment benefits 12.8 12.4 14.3 12.0 12.7 3.2 0.8 Net occupancy 7.9 8.0 7.5 7.4 7.3 (1.3 ) 8.2 Furniture, equipment, and supplies 11.7 10.3 9.8 9.7 10.0 13.6 17.0 Other noninterest expense: Advertising and contributions 2.6 3.0 2.1 3.2 2.0 (13.3 ) 30.0 Servicing and consulting fees 2.9 3.2 2.5 3.4 2.6 (9.4 ) 11.5 Subadvisor expense 4.7 3.5 2.7 2.8 2.7 34.3 74.1 Travel, entertainment, and training 3.2 2.9 2.4 3.3 2.8 10.3 14.3 Originating and processing fees 2.8 2.6 2.4 2.9 2.8 7.7 ---- � � Other expense � � 12.9 � � 14.2 � � 11.6 � � 15.7 � � 13.8 � � (9.2 ) (6.5 ) Total other noninterest expense � 29.1 � � 29.4 � � 23.7 � � 31.3 � � 26.7 � � (1.0 ) 9.0 Total noninterest expense before impairment 123.9 121.6 115.5 116.9 110.8 1.9 11.8 Impairment write-down � ---- � � 66.9 � � ---- � � ---- � � ---- � � (100.0 ) ---- Total noninterest expense � 123.9 � � 188.5 � � 115.5 � � 116.9 � � 110.8 � � (34.3 ) 11.8 � Income before income taxes and minority interest 35.4 (28.6 ) 64.2 67.7 69.2 ---- (48.8 ) Applicable income taxes � � 12.3 � � (9.3 ) � 22.7 � � 23.6 � � 22.9 � � ---- (46.3 ) Net income before minority interest 23.1 (19.3 ) 41.5 44.1 46.3 ---- (50.1 ) Minority interest � � 0.2 � � 0.2 � � 0.1 � � 0.1 � � 0.1 � � ---- 100.0 Net income $ 22.9 � $ (19.5 ) $ 41.4 � $ 44.0 � $ 46.2 � � ---- (50.4 ) � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � � � � � YEAR-TO-DATE INCOME STATEMENT � Nine Months Ended � (In millions) � � Sept. 30, 2008 � Sept. 30, 2007 � % Change � NET INTEREST INCOME Interest income $ 464.3 $ 544.2 (14.7 ) � Interest expense � � 201.2 � � 266.5 � (24.5 ) Net interest income 263.1 277.7 (5.3 ) Provision for loan losses � � (48.0 ) � (19.0 ) 152.6 Net interest income after provision for loan losses � 215.1 � � 258.7 � (16.9 ) � NONINTEREST INCOME Advisory fees: Wealth Advisory Services Trust and investment advisory fees 118.7 115.8 2.5 Mutual fund fees 19.6 15.4 27.3 � � � Planning and other services � � 32.5 � � 29.8 � 9.1 Total Wealth Advisory Services � 170.8 � � 161.0 � 6.1 Corporate Client Services Capital markets services 35.6 31.5 13.0 Entity management services 24.2 21.9 10.5 Retirement services 22.0 9.6 129.2 � � � Investment/cash management services � � 10.3 � � 9.4 � 9.6 Total Corporate Client Services � 92.1 � � 72.4 � 27.2 Cramer Rosenthal McGlynn 13.3 15.2 (12.5 ) � � Roxbury Capital Management � � (0.4 ) � 0.7 � ---- Advisory fees 275.8 249.3 10.6 � � Amortization of affiliate intangibles � � (5.4 ) � (3.4 ) 58.8 Advisory fees after amortization of affiliate intangibles � 270.4 � � 245.9 � 10.0 Service charges on deposit accounts 22.7 21.0 8.1 Other noninterest income 22.8 16.4 39.0 � Securities gains/(losses) � � (32.2 ) � (0.1 ) N/M Total noninterest income � 283.7 � � 283.2 � 0.2 � Net interest and noninterest income � 498.8 � � 541.9 � (8.0 ) � NONINTEREST EXPENSE Salaries and wages 144.6 127.7 13.2 Incentives and bonuses 39.5 35.4 11.6 Employment benefits 39.5 38.9 1.5 Net occupancy 23.5 20.9 12.4 Furniture, equipment, and supplies 31.6 29.5 7.1 Other noninterest expense: Advertising and contributions 7.7 7.5 2.7 Servicing and consulting fees 8.7 7.8 11.5 Subadvisor expense 10.8 7.7 40.3 Travel, entertainment, and training 8.5 7.4 14.9 Originating and processing fees 7.8 8.0 (2.5 ) � � Other expense � � 38.8 � � 36.4 � 6.6 Total other noninterest expense � 82.3 � � 74.8 � 10.0 Total noninterest expense before impairment 361.0 327.2 10.3 Impairment write-down � 66.9 � � ---- � ---- Total noninterest expense � 427.9 � � 327.2 � 30.8 Income before income taxes and minority interest 70.9 214.7 (67.0 ) Applicable income taxes � � 25.5 � � 75.9 � (66.4 ) Net income before minority interest 45.4 138.8 (67.3 ) Minority interest � � 0.5 � � 0.8 � (37.5 ) Net income $ 44.9 � $ 138.0 � (67.5 ) � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � COMPARISON OF RESULTS WITH AND WITHOUT THE IMPAIRMENT WRITE-DOWN � � Three months ended September 30, 2008 � Nine months ended September 30, 2008 With Without With Without impairment impairment Impairment impairment impairment Impairment OPERATING RESULTS (in millions) Net interest income $ 91.1 $ 91.1 $ ---- $ 263.1 $ 263.1 $ ---- Provision for loan losses (19.6 ) (19.6 ) ---- (48.0 ) (48.0 ) ---- Noninterest income 87.8 107.5 (19.7 ) 283.7 316.0 (32.3 ) Noninterest expense � 123.9 � � 123.9 � � ---- � � 427.9 � � 361.0 � � 66.9 � Income before taxes and minority interest 35.4 55.1 (19.7 ) 70.9 170.1 (99.2 ) Applicable income taxes � 12.3 � � 19.5 � � (7.2 ) � 25.5 � � 60.8 � � (35.3 ) Net income before minority interest 23.1 35.6 (12.5 ) 45.4 109.3 (63.9 ) Minority interest � 0.2 � � 0.2 � � ---- � � 0.5 � � 0.5 � � ---- � Net income $ 22.9 � $ 35.4 � $ (12.5 ) $ 44.9 � $ 108.8 � $ (63.9 ) � � PER SHARE DATA Diluted shares outstanding (in millions) 67.3 67.3 ---- 67.4 67.4 ---- Per-share earnings $ 0.34 $ 0.53 $ (0.19 ) $ 0.67 $ 1.62 $ (0.95 ) � � STATISTICS AND RATIOS (dollars in millions) Total assets, on average $ 12,043.5 $ 12,104.5 $ (61.0 ) $ 11,745.1 $ 11,768.5 $ (23.4 ) Stockholders' equity, on average 1,021.3 1,064.6 (43.3 ) 1,088.5 1,104.9 (16.4 ) Return on average assets 0.76 % 1.16 % (0.40 )% 0.51 % 1.23 % (0.72 )% Return on equity 8.92 % 13.23 % (4.31 )% 5.51 % 13.15 % (7.64 )% � Net interest before provision and noninterest income $ 178.9 $ 198.6 $ (19.7 ) $ 546.8 $ 579.1 $ (32.3 ) Tax equivalent interest income � 0.6 � � 0.6 � � ---- � � 2.2 � � 2.2 � � ---- � $ 179.5 $ 199.2 $ (19.7 ) $ 549.0 $ 581.3 $ (32.3 ) Noninterest expense $ 123.9 � $ 123.9 � $ ---- � $ 427.9 � $ 361.0 � $ 66.9 � Efficiency ratio 69.03 % 62.20 % 6.83 % 77.94 % 62.10 % 15.84 % � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � STATEMENT OF CONDITION � � � � � � � � � � � % Change From Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior (In millions) � 2008 � 2008 � 2008 � 2007 � 2007 � Quarter � Year ASSETS Cash and due from banks $ 231.1 � � $ 249.3 � � $ 291.0 � � $ 260.5 � � $ 286.3 � (7.3 ) (19.3 ) Interest-bearing deposits in other banks � 80.1 � � � 167.8 � � � 3.7 � � � 4.4 � � � 2.9 � (52.3 ) N/M Federal funds sold and securities purchased under agreements to resell � ---- � � � 110.7 � � � 264.6 � � � 129.6 � � � 13.6 � (100.0 ) (100.0 ) Investment securities: U.S. Treasury 91.2 48.6 56.8 60.2 101.9 87.7 (10.5 ) Government agencies 453.5 473.5 473.9 647.0 701.4 (4.2 ) (35.3 ) Obligations of state and political subdivisions 7.0 7.3 7.3 17.8 18.5 (4.1 ) (62.2 ) Preferred stock 19.4 41.7 43.3 44.9 62.6 (53.5 ) (69.0 ) Mortgage-backed securities 673.6 702.7 740.1 730.6 581.9 (4.1 ) 15.8 � Other securities � � 215.3 � � � 252.8 � � � 307.5 � � � 346.3 � � � 365.0 � (14.8 ) (41.0 ) Total investment securities � 1,460.0 � � � 1,526.6 � � � 1,628.9 � � � 1,846.8 � � � 1,831.3 � (4.4 ) (20.3 ) FHLB and FRB stock, at cost � 16.4 � � � 22.4 � � � 22.8 � � � 22.4 � � � 20.1 � (26.8 ) (18.4 ) Loans: Commercial, financial, and agricultural 2,965.2 2,808.6 2,654.4 2,594.9 2,529.0 5.6 17.2 Real estate - construction 1,908.7 1,847.0 1,809.7 1,780.4 1,759.9 3.3 8.5 � Mortgage - commercial � � 1,800.7 � � � 1,704.0 � � � 1,593.8 � � � 1,463.4 � � � 1,388.8 � 5.7 29.7 Total commercial loans � 6,674.6 � � � 6,359.6 � � � 6,057.9 � � � 5,838.7 � � � 5,677.7 � 5.0 17.6 Mortgage - residential 562.9 561.1 559.6 562.0 566.3 0.3 (0.6 ) Consumer 1,782.9 1,790.3 1,679.5 1,571.6 1,546.0 (0.4 ) 15.3 � Secured with liquid collateral � � 564.6 � � � 569.4 � � � 500.4 � � � 503.5 � � � 546.5 � (0.8 ) 3.3 Total retail loans � 2,910.4 � � � 2,920.8 � � � 2,739.5 � � � 2,637.1 � � � 2,658.8 � (0.4 ) 9.5 Total loans net of unearned income 9,585.0 9,280.4 8,797.4 8,475.8 8,336.5 3.3 15.0 Reserve for loan losses � � (122.2 ) � � (113.1 ) � � (106.4 ) � � (101.1 ) � � (101.6 ) 8.0 20.3 Net loans � 9,462.8 � � � 9,167.3 � � � 8,691.0 � � � 8,374.7 � � � 8,234.9 � 3.2 14.9 Premises and equipment 152.1 154.1 153.2 152.1 148.9 (1.3 ) 2.1 Goodwill 343.3 345.2 332.4 330.0 329.0 (0.6 ) 4.3 Other intangibles 47.3 49.7 37.0 38.3 38.7 (4.8 ) 22.2 Other assets � � 341.0 � � � 340.2 � � � 279.1 � � � 326.9 � � � 281.4 � 0.2 21.2 Total assets $ 12,134.1 � � $ 12,133.3 � � $ 11,703.7 � � $ 11,485.7 � � $ 11,187.1 � ---- 8.5 � LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 879.6 $ 994.5 $ 778.6 $ 966.2 $ 827.8 (11.6 ) 6.3 Interest-bearing: Savings 799.6 798.9 780.2 659.8 580.1 0.1 37.8 Interest-bearing demand 2,594.4 2,692.3 2,502.6 2,471.8 2,346.7 (3.6 ) 10.6 Certificates under $100,000 998.1 977.6 1,012.0 1,011.4 1,002.4 2.1 (0.4 ) � � Local certificates $100,000 and over � � 267.8 � � � 278.0 � � � 316.1 � � � 356.3 � � � 389.6 � (3.7 ) (31.3 ) Total core deposits 5,539.5 5,741.3 5,389.5 5,465.5 5,146.6 (3.5 ) 7.6 � � National certificates $100,000 and over � � 3,101.7 � � � 2,874.4 � � � 2,676.5 � � � 2,392.0 � � � 2,353.1 � 7.9 31.8 Total deposits � 8,641.2 � � � 8,615.7 � � � 8,066.0 � � � 7,857.5 � � � 7,499.7 � 0.3 15.2 Short-term borrowings: Federal funds purchased and securities sold under agreements to repurchase 1,745.4 1,695.4 1,777.2 1,775.3 1,915.5 2.9 (8.9 ) U.S. Treasury demand 7.5 70.3 62.5 77.3 40.9 (89.3 ) (81.7 ) � Line of credit and other debt � � 20.0 � � � 10.0 � � � 134.9 � � � 139.5 � � � 134.0 � 100.0 (85.1 ) Total short-term borrowings � 1,772.9 � � � 1,775.7 � � � 1,974.6 � � � 1,992.1 � � � 2,090.4 � (0.2 ) (15.2 ) Other liabilities 189.4 207.5 250.9 247.9 231.4 (8.7 ) (18.2 ) Long-term debt � � 468.3 � � � 467.8 � � � 268.5 � � � 267.8 � � � 267.5 � 0.1 75.1 Total liabilities � 11,071.8 � � � 11,066.7 � � � 10,560.0 � � � 10,365.3 � � � 10,089.0 � ---- 9.7 Minority interest 0.2 0.2 0.2 0.1 0.1 ---- 100.0 Stockholders' equity � � 1,062.1 � � � 1,066.4 � � � 1,143.5 � � � 1,120.3 � � � 1,098.0 � (0.4 ) (3.3 ) Total liabilities and stockholders' equity $ 12,134.1 � � $ 12,133.3 � � $ 11,703.7 � � $ 11,485.7 � � $ 11,187.1 � ---- 8.5 � � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � AVERAGE STATEMENT OF CONDITION � � � � � � � � � � � 2008 2008 2008 2007 2007 % Change From Third Second First Fourth Third Prior Prior (In millions) � Quarter � Quarter � Quarter � Quarter � Quarter � Quarter � Year ASSETS Cash and due from banks $ 221.5 � � $ 251.7 � � $ 216.9 � � $ 209.6 � � $ 208.1 � (12.0 ) 6.4 Interest-bearing deposits in other banks � 101.7 � � � 63.1 � � � 3.4 � � � 3.7 � � � 4.1 � 61.2 N/M Federal funds sold and securities purchased under agreements to resell � 32.9 � � � 38.0 � � � 35.1 � � � 28.2 � � � 23.2 � (13.4 ) 41.8 Investment securities: U.S. Treasury 50.4 50.9 60.5 80.5 103.3 (1.0 ) (51.2 ) Government agencies 459.8 497.5 553.2 619.5 631.4 (7.6 ) (27.2 ) Obligations of state and political subdivisions 7.1 7.3 14.3 18.2 18.7 (2.7 ) (62.0 ) Preferred stock 32.9 44.8 46.0 49.0 62.5 (26.6 ) (47.4 ) Mortgage-backed securities 684.1 725.2 734.4 697.0 590.4 (5.7 ) 15.9 � Other securities � � 227.4 � � � 272.8 � � � 337.5 � � � 359.4 � � � 370.6 � (16.6 ) (38.6 ) Total investment securities � 1,461.7 � � � 1,598.5 � � � 1,745.9 � � � 1,823.6 � � � 1,776.9 � (8.6 ) (17.7 ) FHLB and FRB stock, at cost � 20.7 � � � 26.5 � � � 22.4 � � � 23.2 � � � 10.5 � (21.9 ) 97.1 Loans: Commercial, financial, and agricultural 2,915.8 2,765.4 2,602.1 2,521.5 2,454.9 5.4 18.8 Real estate - construction 1,877.8 1,837.1 1,804.9 1,790.2 1,769.2 2.2 6.1 � Mortgage - commercial � � 1,757.9 � � � 1,654.1 � � � 1,528.2 � � � 1,423.5 � � � 1,387.3 � 6.3 26.7 Total commercial loans � 6,551.5 � � � 6,256.6 � � � 5,935.2 � � � 5,735.2 � � � 5,611.4 � 4.7 16.8 Mortgage - residential 560.9 560.5 562.8 564.5 564.4 0.1 (0.6 ) Consumer 1,780.3 1,729.8 1,653.1 1,556.5 1,533.0 2.9 16.1 � Secured with liquid collateral � � 566.3 � � � 539.0 � � � 485.7 � � � 499.5 � � � 551.5 � 5.1 2.7 Total retail loans � 2,907.5 � � � 2,829.3 � � � 2,701.6 � � � 2,620.5 � � � 2,648.9 � 2.8 9.8 Total loans net of unearned income 9,459.0 9,085.9 8,636.8 8,355.7 8,260.3 4.1 14.5 Reserve for loan losses � � (111.0 ) � � (104.1 ) � � (99.8 ) � � (99.4 ) � � (95.8 ) 6.6 15.9 Net loans � 9,348.0 � � � 8,981.8 � � � 8,537.0 � � � 8,256.3 � � � 8,164.5 � 4.1 14.5 Premises and equipment 153.5 154.4 152.9 150.9 148.5 (0.6 ) 3.4 Goodwill 345.5 393.1 329.9 329.1 328.3 (12.1 ) 5.2 Other intangibles 48.7 36.8 37.7 38.2 39.4 32.3 23.6 Other assets � � 309.3 � � � 281.5 � � � 282.0 � � � 263.2 � � � 259.8 � 9.9 19.1 Total assets $ 12,043.5 � � $ 11,825.4 � � $ 11,363.2 � � $ 11,126.0 � � $ 10,963.3 � 1.8 9.9 � LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 838.8 $ 870.2 $ 726.4 $ 723.5 $ 714.9 (3.6 ) 17.3 Interest-bearing: Savings 807.8 795.2 714.8 627.3 540.9 1.6 49.3 Interest-bearing demand 2,511.7 2,417.0 2,368.2 2,347.6 2,405.8 3.9 4.4 Certificates under $100,000 979.8 988.2 1,016.0 1,005.4 1,007.7 (0.9 ) (2.8 ) � � Local certificates $100,000 and over � � 291.9 � � � 306.9 � � � 335.3 � � � 390.7 � � � 376.2 � (4.9 ) (22.4 ) Total core deposits 5,430.0 5,377.5 5,160.7 5,094.5 5,045.5 1.0 7.6 � � National certificates $100,000 and over � � 3,197.1 � � � 2,719.2 � � � 2,770.5 � � � 2,369.1 � � � 2,817.9 � 17.6 13.5 Total deposits � 8,627.1 � � � 8,096.7 � � � 7,931.2 � � � 7,463.6 � � � 7,863.4 � 6.6 9.7 Short-term borrowings: Federal funds purchased and securities sold under agreements to repurchase 1,686.1 1,847.9 1,625.6 1,907.4 1,370.4 (8.8 ) 23.0 U.S. Treasury demand 7.6 11.6 12.8 12.3 11.0 (34.5 ) (30.9 ) � Line of credit and other debt � � 11.9 � � � 50.1 � � � 136.3 � � � 136.8 � � � 139.9 � (76.2 ) (91.5 ) Total short-term borrowings � 1,705.6 � � � 1,909.6 � � � 1,774.7 � � � 2,056.5 � � � 1,521.3 � (10.7 ) 12.1 Other liabilities 221.3 232.1 263.5 244.4 223.4 (4.7 ) (0.9 ) Long-term debt � � 468.0 � � � 467.4 � � � 268.2 � � � 267.7 � � � 267.2 � 0.1 75.1 Total liabilities � 11,022.0 � � � 10,705.8 � � � 10,237.6 � � � 10,032.2 � � � 9,875.3 � 3.0 11.6 Minority interest 0.2 0.2 0.1 0.1 0.2 ---- ---- Stockholders' equity � � 1,021.3 � � � 1,119.4 � � � 1,125.5 � � � 1,093.7 � � � 1,087.8 � (8.8 ) (6.1 ) Total liabilities and stockholders' equity $ 12,043.5 � � $ 11,825.4 � � $ 11,363.2 � � $ 11,126.0 � � $ 10,963.3 � 1.8 9.9 � � � � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � � � � � YIELDS AND RATES � � 2008 2008 2008 2007 2007 Third Second First Fourth Third YIELDS/RATES (tax-equivalent basis) � Quarter � Quarter � Quarter � Quarter � Quarter EARNING ASSETS: Interest-bearing time deposits in other banks 1.93 % 2.09 % 6.33 % 8.08 % 4.95 % Federal funds sold and securities purchased under agreements to resell 2.57 2.01 3.15 4.18 6.60 � Total investment securities 4.70 4.69 4.95 5.03 4.95 � FHLB and FRB stock, at cost 3.74 3.00 5.38 2.29 3.38 � Commercial, financial, and agricultural 5.69 5.94 6.64 7.39 7.91 Real estate - construction 5.26 5.38 6.53 7.82 8.41 Mortgage - commercial 5.71 5.87 6.72 7.64 8.04 Total commercial loans 5.57 5.76 6.63 7.59 8.10 � Mortgage - residential 5.64 5.83 5.82 5.80 5.74 Consumer 6.28 6.34 6.92 7.33 7.48 Secured with liquid collateral 4.00 4.09 5.27 6.51 6.88 Total retail loans 5.71 5.81 6.40 6.84 6.98 � Total loans 5.61 5.77 6.56 7.36 7.74 � Total earning assets 5.44 5.56 6.27 6.92 7.23 � FUNDS USED TO SUPPORT EARNING ASSETS: � Core deposits Savings 2.21 2.17 2.65 2.92 2.63 Interest-bearing demand 0.70 0.75 1.05 1.26 1.45 Certificates under $100,000 3.08 3.64 4.18 4.27 4.23 Local certificates $100,000 and over 3.08 3.82 4.44 4.85 4.78 Core interest-bearing deposits 1.62 1.85 2.28 2.51 2.54 � National certificates $100,000 and over 3.05 3.53 4.44 5.23 5.41 � Total interest-bearing deposits 2.21 2.48 3.11 3.46 3.67 � Short-term borrowings 2.21 2.47 3.53 4.64 5.00 � Long-term debt 7.07 7.25 6.29 5.78 6.02 � Total interest-bearing liabilities 2.44 2.71 3.28 3.80 3.97 � Total funds used to support earning assets 2.17 2.39 2.90 3.36 3.50 � Net interest margin (tax-equivalent basis) 3.27 3.17 3.37 3.56 3.73 � Year-to-date net interest margin 3.27 3.27 3.37 3.67 3.71 � Prime rate 5.00 5.08 6.27 7.58 8.18 � Tax-equivalent net interest income (in millions) $ 91.7 $ 86.0 $ 87.7 $ 92.0 $ 95.1 � Average earning assets at historical cost $ 11,166.1 $ 10,896.5 $ 10,468.0 $ 10,258.9 $ 10,113.9 Average fair valuation adjustment on investment securities available for sale � (90.1 ) � (84.5 ) � (24.4 ) � (24.5 ) � (38.9 ) Average earning assets $ 11,076.0 � $ 10,812.0 � $ 10,443.6 � $ 10,234.4 � $ 10,075.0 � 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 nine months ended September 30, 2008 � � � CREDIT QUALITY � Three Months Ended (Dollars in millions) � � Sept.30, 2008 � � � June30, 2008 � � Mar. 31, 2008 � � Dec. 31, 2007 � � Sept. 30, 2007 � NONPERFORMING ASSETS AT PERIOD-END Nonaccruing loans: Commercial, financial, and agricultural $ 28.4 $ 27.0 $ 25.6 $ 23.8 $ 12.1 Commercial real estate - construction 41.0 22.6 9.9 9.9 21.2 Commercial mortgage 8.6 8.1 8.2 7.1 8.7 � Consumer and other retail � � 22.1 � � � 13.9 � � 9.7 � � 7.0 � � 12.1 � Total nonaccruing loans 100.1 71.6 53.4 47.8 54.1 Renegotiated loans � � 0.1 � � � 0.2 � � 24.1 � � 23.7 � � 19.2 � Total nonaccruing loans and renegotiated loans 100.2 71.8 77.5 71.5 73.3 Other real estate owned (OREO) � � 14.5 � � � 16.7 � � 0.2 � � 9.1 � � 0.2 � Total nonperforming loans 114.7 88.5 77.7 80.6 73.5 � Loans past due 90 days or more: Commercial, financial, and agricultural 6.5 6.1 3.7 2.4 9.4 Commercial real estate - construction 5.2 0.6 0.3 0.7 0.7 Commercial mortgage 2.1 1.3 ---- 1.3 1.1 � Consumer and other retail � � 14.9 � � � 13.8 � � 10.6 � � 9.3 � � 5.8 � Total loans past due 90 days or more 28.7 21.8 14.6 13.7 17.0 � NET CHARGE-OFFS Loans charged off: Commercial, financial, and agricultural $ 4.9 $ 2.9 $ 0.7 $ 1.3 $ 0.6 Commercial real estate - construction ---- 5.2 0.3 2.3 0.6 Commercial mortgage 1.0 0.1 ---- 1.2 0.1 � Consumer and other retail � � 5.8 � � � 6.0 � � 5.4 � � 6.7 � � 5.5 � Total loans charged off 11.7 14.2 6.4 11.5 6.8 Recoveries on loans previously charged off: Commercial, financial, and agricultural 0.2 0.2 0.1 ---- 0.2 Commercial real estate - construction ---- ---- ---- ---- ---- Commercial mortgage ---- 0.8 ---- ---- ---- � Consumer and other retail � � 1.0 � � � 1.4 � � 1.6 � � 1.8 � � 1.8 � Total recoveries � 1.2 � � � 2.4 � � 1.7 � � 1.8 � � 2.0 Net loans charged off 10.5 11.8 4.7 9.7 4.8 � RATIOS Period-end reserve to loans 1.27 % 1.22 % � 1.21 % � 1.19 % � 1.22 % Period-end non-performing assets to loans 1.20 0.95 0.88 0.95 0.88 Period-end loans past due 90 days to total loans 0.30 0.23 0.17 0.16 0.20 Quarterly net charge-offs to average loans (not annualized) 0.11 0.13 0.05 0.12 0.06 Year-to-date net charge-offs to average loans 0.30 0.19 0.05 0.26 0.14 � INTERNAL RISK RATING Pass 96.08 % 96.28 % � 95.62 % � 96.03 % � 96.01 % Watchlisted 2.25 2.29 2.98 2.69 2.62 Substandard 1.66 1.42 1.39 1.27 1.36 Doubtful 0.01 0.01 0.01 0.01 0.01 � LOAN PORTFOLIO COMPOSITION Commercial, financial, and agricultural 31 % 30 % � 30 % � 31 % � 30 % Commercial real estate - construction 20 20 21 21 21 Commercial mortgage 19 18 18 17 17 Residential mortgage 6 6 6 6 7 Consumer 18 20 19 19 18 Secured by liquid collateral 6 6 6 6 7 � COMMERCIAL REAL ESTATE - CONSTRUCTION DETAIL Project type: Residential real estate construction 52 % 53 % � 53 % � 52 % � 54 % Land development 22 22 21 21 19 Retail and office 14 13 13 14 13 Owner-occupied 3 4 5 5 6 Multi-family 2 2 2 2 2 Other 7 6 6 6 6 Geographic location: Delaware 61 % 61 % � 61 % � 61 % � 59 % Pennsylvania 23 24 25 25 27 Maryland 6 6 6 7 7 New Jersey 7 6 5 4 4 Other 3 3 3 3 3 � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � � � � � � � SUPPLEMENTAL INFORMATION � Three Months Ended � % Change From: Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior � � 2008 � 2008 � 2008 � 2007 � 2007 � Quarter � Year NET INCOME Net income per share Basic $ 0.34 $ (0.29 ) $ 0.62 $ 0.66 $ 0.68 ---- (50.0 ) Diluted 0.34 (0.29 ) 0.62 0.65 0.67 ---- (49.3 ) Weighted average shares outstanding (in thousands) Basic 67,231 67,167 67,067 67,174 67,698 Diluted 67,269 67,167 67,338 67,749 68,582 Net income as a percentage of: Average assets 0.76 % (0.66 )% 1.47 % 1.57 % 1.67 % Average stockholders' equity 8.92 (7.01 ) 14.79 15.96 16.85 � ASSETS UNDER MANAGEMENT * (in billions) Wilmington Trust $ 37.1 $ 38.4 $ 35.0 $ 35.9 $ 34.5 (3.4 ) 7.5 Roxbury Capital Management 1.9 2.1 2.1 2.5 2.8 (9.5 ) (32.1 ) Cramer Rosenthal McGlynn � � 10.1 � � � 11.2 � � � 10.9 � � � 11.4 � � � 11.8 � (9.8 ) (14.4 ) Combined assets under management $ 49.1 � � $ 51.7 � � $ 48.0 � � $ 49.8 � � $ 49.1 � (5.0 ) ---- � * 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 $ 139.9 $ 146.6 $ 120.7 $ 124.3 $ 121.6 (4.6 ) 15.0 ** Includes Wilmington Trust assets under management � INVESTMENT MIX OF ASSETS MANAGED BY WILMINGTON TRUST Equities 41 % 44 % 45 % 47 % 49 % Fixed income 26 24 22 23 23 Other 33 32 33 30 28 � CAPITAL (in millions, except per share amounts) Average stockholders' equity $ 1,021.3 $ 1,119.4 $ 1,125.5 $ 1,093.7 $ 1,087.8 (8.8 ) (6.1 ) Period-end primary capital 1,184.3 1,179.5 1,249.9 1,221.4 1,199.6 0.4 (1.3 ) Per share: Book value 15.60 15.85 16.99 16.70 16.23 (1.6 ) (3.9 ) Quarterly dividends declared 0.345 0.345 0.335 0.335 0.335 ---- 3.0 Year-to-date dividends declared 1.025 0.68 0.335 1.32 0.985 Average stockholders' equity to assets 8.48 % 9.47 % 9.90 % 9.83 % 9.92 % Total risk-based capital ratio 11.24 11.14 11.17 11.21 11.54 Tier 1 risk-based capital ratio 6.77 6.74 7.73 7.73 7.96 Tier 1 leverage capital ratio 6.52 6.45 7.23 7.18 7.31 � INVESTMENT SECURITIES PORTFOLIO Average life (in years) 6.13 6.16 4.47 4.45 4.66 Average duration 1.84 2.58 1.90 1.97 1.85 Percentage invested in fixed rate instruments 85 % 83 % 81 % 82 % 81 % � FUNDING (on average) Percentage from core deposits 53 % 54 % 53 % 54 % 54 % Percentage from national funding 31 27 29 25 30 Percentage from short-term borrowings 16 19 18 21 16 � ASSET - LIABILITY MATCHING As a percentage of total balances at period-end: Loans outstanding with floating rates 73 % 72 % 71 % 71 % 71 % Commercial loans with floating rates 88 87 86 85 86 Commercial loans tied to a prime rate 54 56 58 59 60 Commercial loans tied to the 30-day LIBOR 40 38 35 36 35 � National CDs and short-term borrowings maturing in 90 days or less 95 % 92 % 83 % 75 % 78 % � FULL-TIME EQUIVALENT HEADCOUNT Full-time equivalent headcount 2,925 2,879 2,704 2,672 2,658 � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � QUARTERLY BUSINESS SEGMENT REPORT � � Three Months Ended � � � � (In millions) � � Sept. 30,2008 � � June 30,2008 � � Mar. 31,2008 � � Dec. 31,2007 � � Sept. 30,2007 REGIONAL BANKING Net interest income $ 85.6 $ 80.8 $ 80.2 $ 84.3 $ 87.6 Provision for loan losses (18.0 ) (17.1 ) (9.3 ) (7.0 ) (7.8 ) Noninterest income 14.0 13.9 18.0 13.2 12.1 Noninterest expense � � 42.9 � � � 41.9 � � � 41.5 � � � 45.3 � � � 42.6 � Income before taxes & minority interest 38.7 35.7 47.4 45.2 49.3 � Regional Banking efficiency ratio 42.86 % 43.87 % 41.92 % 46.04 % 42.35 % � WEALTH ADVISORY SERVICES Net interest income $ 4.9 $ 5.2 $ 6.1 $ 6.4 $ 6.3 Provision for loan losses (1.6 ) (1.4 ) (0.7 ) (2.2 ) (1.1 ) Noninterest income 53.8 54.7 52.8 56.1 53.2 Noninterest expense � � 50.5 � � � 50.9 � � � 50.8 � � � 48.9 � � � 46.5 � Income before taxes & minority interest 6.6 7.6 7.4 11.4 11.9 � Wealth Advisory Services efficiency ratio 86.03 % 84.97 % 86.25 % 78.24 % 78.02 % � CORPORATE CLIENT SERVICES Net interest income $ 2.4 $ 1.8 $ 3.0 $ 3.3 $ 3.2 Provision for loan losses ---- ---- ---- ---- ---- Noninterest income 35.7 33.0 28.0 27.7 25.1 Noninterest expense � � 30.5 � � � 28.8 � � � 23.2 � � � 22.7 � � � 21.7 � Income before taxes & minority interest 7.6 6.0 7.8 8.3 6.6 � Corporate Client Services efficiency ratio 79.84 % 82.76 % 74.84 % 73.23 % 76.68 % � AFFILIATE MANAGERS * Net interest income $ (1.8 ) $ (2.6 ) $ (2.4 ) $ (2.9 ) $ (3.0 ) Provision for loan losses ---- ---- ---- ---- ---- Noninterest income 4.0 4.2 4.0 5.7 4.4 Noninterest expense � � ---- � � � ---- � � � ---- � � � ---- � � � ---- � Income before taxes & minority interest 2.2 1.6 1.6 2.8 1.4 � TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 91.1 $ 85.2 $ 86.9 $ 91.1 $ 94.1 Provision for loan losses (19.6 ) (18.5 ) (10.0 ) (9.2 ) (8.9 ) Noninterest income 107.5 105.8 102.8 102.7 94.8 Noninterest expense � 123.9 � � � 121.6 � � � 115.5 � � � 116.9 � � � 110.8 � Income before taxes & minority interest $ 55.1 � � $ 50.9 � � $ 64.2 � � $ 67.7 � � $ 69.2 � � Investment securities impairment charge $ (19.7 ) $ (12.6 ) $ ---- $ ---- $ ---- Roxbury Capital Management impairment charge � ---- � � � (66.9 ) � � ---- � � � ---- � � � ---- � Reported income before taxes & minority interest $ 35.4 � � $ (28.6 ) � $ 64.2 � � $ 67.7 � � $ 69.2 � � Corporation efficiency ratio 69.03 % 105.19 % 60.63 % 60.04 % 58.35 % * Affiliate managers comprise Cramer Rosenthal McGlynn and Roxbury Capital Management. � Segment data for prior periods may differ from previously published figures due to changes in reporting methodology and/or organizational structure. � WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2008 � YEAR-TO-DATE BUSINESS SEGMENT REPORT � � � � � Nine Months Ended � Sept. 30, Sept. 30, $ % (In millions) � 2008 � 2007 � Change � Change REGIONAL BANKING Net interest income $ 246.5 $ 257.8 $ (11.3 ) (4.4 ) Provision for loan losses (44.4 ) (17.5 ) 26.9 153.7 Noninterest income 45.8 38.2 7.6 19.9 � Noninterest expense � � 126.2 � � � 124.6 � � � 1.6 � � 1.3 � Income before taxes & minority interest 121.7 153.9 (32.2 ) (20.9 ) � Regional Banking efficiency ratio 42.88 % 41.71 % � WEALTH ADVISORY SERVICES Net interest income $ 16.1 $ 18.7 $ (2.6 ) (13.9 ) Provision for loan losses (3.6 ) (1.5 ) 2.1 140.0 Noninterest income 161.3 153.5 7.8 5.1 � Noninterest expense � � 152.2 � � � 139.3 � � � 12.9 � � 9.3 � Income before taxes & minority interest 21.6 31.4 (9.8 ) (31.2 ) � Wealth Advisory Services efficiency ratio 85.75 % 80.80 % � CORPORATE CLIENT SERVICES Net interest income $ 7.2 $ 10.4 $ (3.2 ) (30.8 ) Provision for loan losses ---- ---- ---- ---- Noninterest income 96.7 76.3 20.4 26.7 � Noninterest expense � � 82.6 � � � 63.3 � � � 19.3 � � 30.5 � Income before taxes & minority interest 21.3 23.4 (2.1 ) (9.0 ) � Corporate Client Services efficiency ratio 79.42 % 72.93 % � AFFILIATE MANAGERS * Net interest income $ (6.7 ) $ (9.2 ) $ 2.5 27.2 Provision for loan losses ---- ---- ---- ---- Noninterest income 12.2 15.2 (3.0 ) (19.7 ) � Noninterest expense � � ---- � � � ---- � � � ---- � � ---- � Income before taxes & minority interest 5.5 6.0 (0.5 ) (8.3 ) � TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 263.1 $ 277.7 $ (14.6 ) (5.3 ) Provision for loan losses (48.0 ) (19.0 ) 29.0 152.6 Noninterest income 316.0 283.2 32.8 11.6 � Noninterest expense � � 361.0 � � � 327.2 � � � 33.8 � � 10.3 � Income before taxes & minority interest $ 170.1 � � $ 214.7 � � $ (44.6 ) � (20.8 ) � Investment securities impairment charge $ (32.3 ) $ ---- $ (32.3 ) ---- Roxbury Capital Management impairment charge � (66.9 ) � � ---- � � � (66.9 ) � ---- � Reported income before taxes & minority interest $ 70.9 � � $ 214.7 � � $ (143.8 ) � (67.0 ) � Corporation efficiency ratio 77.94 % 58.02 % * 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. �