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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15d OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 16, 2004
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WILMINGTON TRUST CORPORATION
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(Exact name of registrant as specified in its chapter)
Delaware 1-14659 51-0328154
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(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification Number)
Wilmington Trust Corporation
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 651-1000
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(Former names or former address, if changed since last report)
Item 12. Results of Operations and Financial Condition.
The press release of Wilmington Trust Corporation reporting its results of
operations and financial condition for the second quarter and of 2004 is
attached hereto as Exhibit A and is being furnished pursuant to Item 12 of Form
8-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WILMINGTON TRUST CORPORATION
Dated: July 16, 2004
By: /s/ David R. Gibson
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Name: David R. Gibson,
Title: Executive Vice President and
Chief Financial Officer
(Authorized Officer and Principal
Financial Officer)
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EXHIBIT A
WILMINGTON TRUST Wilmington Trust Corporation
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
FOR IMMEDIATE RELEASE
WILMINGTON TRUST REPORTS 10% EARNINGS INCREASE
Wilmington, Del., July 16, 2004 - Wilmington Trust Corporation (NYSE: WL) today
reported second quarter 2004 earnings per share of $0.54 on a diluted basis. Net
income was $36.5 million. These were increases of 10.2% and 12.0%, respectively,
from the year-ago second quarter.
"For the 2004 second quarter, we recorded double-digit increases in advisory
business income, the 13th consecutive quarter of loan growth, and net
charge-offs that were among the lowest in our company's history," said Ted T.
Cecala, Wilmington Trust chairman and chief executive officer. "We had
less-than-expected compression in the net interest margin, which was 3.52%, and
expense growth was moderate."
Combined assets under management at Wilmington Trust and affiliate money
managers Cramer Rosenthal McGlynn and Roxbury Capital Management were $32.9
billion at June 30, 2004. In comparison, combined assets were $29.8 billion at
June 30, 2003, and $32.7 billion at March 31, 2004.
In a reflection of continued growth in net income and stockholders' equity, the
Board of Directors declared a regular quarterly cash dividend of $0.285 per
share, which was 5.5% more than the $0.27 per share declared in the year-ago
second quarter. The quarterly dividend is payable on August 16, 2004, to
stockholders of record on August 2, 2004.
Second quarter 2004 results, on an annualized basis, generated a return on
average assets of 1.63% and a return on average stockholders' equity of 17.82%.
In comparison, the 2003 second quarter annualized returns were 1.53% and 17.04%,
respectively.
ADVISORY INCOME RISES 18%
Income from the advisory businesses for the 2004 second quarter totaled $58.5
million, which was 18.2% higher than for the year-ago second quarter. Total
advisory business income accounted for 42.0% of the 2004 second quarter's total
net interest and noninterest income. The comparable percentages were 38.9% for
the year-ago second quarter and 43.1% for the 2004 first quarter.
The year-over-year increases in advisory income and their percentage
contribution to total net interest and noninterest income were due to
double-digit growth in the Wealth Advisory Services and Corporate Client
Services businesses, and improved results from the affiliate money managers.
On a linked-quarter basis, the slight decline in the percentage contribution
from the advisory businesses reflected lower Wealth Advisory and other
noninterest income opposite higher net interest income.
Other noninterest income was lower for the 2004 second quarter on both a
year-ago-and linked-quarter basis, due primarily to a decline in letter of
credit fees and losses recorded for various community housing projects related
to Community Reinvestment Act initiatives.
At June 30, 2004, assets under management at Wilmington Trust were $24.2
billion, equal to the amount at March 31, 2004. At June 30, 2003, Wilmington
Trust's assets under management were $22.7 billion. Changes in assets under
management reflected trust distributions and terminations as well as new
business acquisition and movements in financial markets.
2
WEALTH ADVISORY INCOME RISES 13%
Second quarter 2004 income from the Wealth Advisory Services business was
$37.4 million. Compared to the year-ago second quarter, this was an increase of
13.0%. New business development, demand for financial and estate planning
services, and market appreciation contributed to the growth.
Income from trust and investment advisory services accounted for most of the
year-over-year increase. Income from these services rose 15.9% from the year-ago
second quarter to $26.9 million. Fees for these services are tied to asset
valuations. Approximately 75% of these fees are associated with equity market
valuations, with the remainder reflecting the value of fixed income instruments.
Income from wealth management planning and other services in which the company
specializes was $5.6 million for the 2004 second quarter. This was a 30.2%
increase from the year-ago second quarter. Fees for these services are based on
the complexity and type of service provided, not on asset valuations.
On a linked-quarter basis, second quarter 2004 Wealth Advisory income fell
$2.3 million, or 5.8%, from the amount recorded for the 2004 first quarter. This
decline occurred because income from planning and other services was $2.0
million less for the second quarter than for the first. It is not unusual for
income from planning and other services to fluctuate from period to period,
because this revenue reflects client demand at any given point in time.
Mutual fund service fees in the Wealth Advisory business were $4.9 million for
the 2004 second quarter. This was a decline of $700,000 from the year-ago second
quarter and $300,000 from the 2004 first quarter. The downward trend reflected
increasing client demand for investments that generate higher returns.
Approximately 95% of
3
Wealth Advisory mutual fund fees are tied to money market mutual funds, and do
not reflect equity market movements.
CORPORATE CLIENT SERVICES BREAKS PREVIOUS SECOND QUARTER RECORD
Income from the Corporate Client Services business for the 2004 second quarter
was $18.4 million, which was 11.5% higher than for the year-ago second quarter.
All components of the Corporate Client Services business contributed to the
year-over-year growth.
Income from trust and administrative activities that support the capital markets
industry was $8.3 million for the 2004 second quarter, up 9.2% from the year-ago
second quarter. Market demand for trust-preferred securities issues and
asset-backed securitizations was strong.
Income from administrative services that support legal entities in preferred
jurisdictions was $5.4 million for the 2004 second quarter, which was a 1.9%
increase from the year-ago second quarter. Demand for U.S.-based entities was
stronger than in recent periods, as the adoption of new regulatory and
accounting standards led to a resumption of activity in the entity management
industry.
Income from trust services that support retirement plans was $3.2 million for
the 2004 second quarter, which was 39.1% higher than for the year-ago second
quarter. While market appreciation contributed to the growth, the year-over-year
increase also reflected demand for experienced and trusted service providers in
the wake of turmoil in the mutual fund settlement industry.
The retirement services business specializes in acting as trustee for defined
contribution retirement plans, such as 401(k) plans. Compared to the year-ago
second quarter, fees
4
from new business associated with defined contribution plans doubled and the
number of new accounts quintupled.
Income from Corporate Client cash management services that are provided in
conjunction with trust and entity management services was $1.5 million for the
2004 second quarter, which was 15.4% higher than for the year-ago second
quarter. Client activity accounted for the majority of this increase.
On a linked-quarter basis, total Corporate Client Services income for the 2004
second quarter was 2.8% higher than for the 2004 first quarter. Linked-quarter
increases in capital markets and retirement services income were offset by
linked-quarter decreases in income from entity management and cash management
services.
Services provided by the Corporate Client business are performed on a
fee-for-service basis that is priced according to the complexity of the services
provided, and most are performed under multiyear contracts. In the 2004 second
quarter, approximately 26% of Corporate Client income was tied to asset
valuations, which was the same percentage as for the 2004 first quarter. For the
year-ago second quarter, approximately 22% of Corporate Client income was tied
to asset valuations. Corporate Client income that is derived from asset
valuations is associated primarily with retirement plan assets for which the
company serves as trustee, and cash management services that are provided in
conjunction with trust or entity management services.
ASSETS UNDER MANAGEMENT AT CRAMER ROSENTHAL MCGLYNN REACH RECORD HIGH
At value-style affiliate money manager Cramer Rosenthal McGlynn (CRM), assets
under management at June 30, 2004, were $5.5 billion. This was the highest
amount in the firm's history. On a percentage basis, managed assets at June 30,
2004, were 44.7% more
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than the $3.8 billion reported at June 30, 2003, and 7.8% more than the $5.1
billion reported at March 31, 2004.
Income from CRM for the 2004 second quarter was $2.5 million, which was more
than double the year-ago second quarter income of $1.1 million. On a
linked-quarter basis, it was 19% above the 2004 first quarter income of $2.1
million.
PROFITABILITY CONTINUES AT ROXBURY CAPITAL MANAGEMENT
Income from growth-style affiliate Roxbury Capital Management (RCM) reflected
the firm's return to profitability. Income from RCM for the 2004 second quarter
was $200,000. In comparison, in the year-ago second quarter, a loss of $1.2
million was recorded from RCM. On a linked-quarter basis, income from RCM for
the 2004 second quarter was equal to the amount recorded for the 2004 first
quarter.
At June 30, 2004, RCM's managed assets totaled $3.2 billion. This was slightly
less than the $3.3 billion recorded at June 30, 2003, and the $3.4 billion
recorded at March 31, 2004. RCM continued to attract new assets to its small
capitalization product, but not to an extent sufficient to offset the level of
lost business.
NET INTEREST MARGIN STABILIZES
The net interest margin for the 2004 second quarter was 3.52%. This was 1 basis
point lower than the 2004 first quarter margin of 3.53% and 10 basis points
lower than the year-ago second quarter margin of 3.62%.
Compared to the year-ago second quarter, the average yield on total earning
assets was 41 basis points lower, while the average cost of funds fell only 31
basis points. Compared
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to the 2004 first quarter, the average yield on total earnings assets was 1
basis point lower, while the average cost of funds remained the same.
The pace of consecutive year-over-year declines in the net interest margin
slowed in the 2004 second quarter, as the end of June 2004 marked the completion
of a full 12-month cycle without a change in market interest rates. The
Corporation raised its prime lending rate (the rate at which it lends to its
most credit-worthy clients) to 4.25% on June 30, 2004, following the Federal
Reserve Board's interest rate increase.
Investment portfolio balances for the 2004 second quarter, on average, were
$1.86 billion. This was an increase of $63.8 million from the year-ago second
quarter, and a decrease of $39.5 million from the 2004 first quarter.
At June 30, 2004, the average life of the portfolio was 6.67 years and the
duration was 3.07. In comparison, at March 31, 2004, the average life was 5.25
years and the duration was 2.37. The increases in average life and duration
reflected the rising interest rate environment. On a percentage basis, the
composition of the assets within the investment portfolio remained relatively
unchanged.
LOAN BALANCES RISE FOR 13TH CONSECUTIVE QUARTER
The strength of the economy throughout the Delaware Valley region, in which the
Regional Banking business is concentrated, helped propel second quarter 2004
loan balances to $6.42 billion, on average. This was 6.3% higher than for the
year-ago second
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quarter, and was achieved opposite a 24.0% decline in residential mortgage
balances, on average, for the same period. Residential mortgage balances
decreased due to prepayments, refinancings, and the company's ongoing practice
of selling new production into the secondary market.
On a linked-quarter basis, total loan balances, on average, were 1.8% higher
than for the 2004 first quarter. Loan balances, on average, have risen
successively for each quarter since the second quarter of 2001. Factors in this
growth trend include a focus on banking relationships with family-owned or
closely held businesses with annual sales of up to $250 million, and the broad
diversification of the Delaware Valley regional economy.
In Delaware, the unemployment rate of 3.7% remained well below the national rate
of 5.6%. The housing market continued to expand and was especially strong in the
state's southern counties and beach resorts, due to an influx of people who are
choosing to relocate to Delaware because of the state's mid-Atlantic location
and favorable tax climate. U.S. Census Bureau statistics list Delaware as the
fifth most popular state in the nation for attracting residents age 65 or older.
Southeastern Pennsylvania's economic environment also remained healthy. The
Pennsylvania Leading Economic Index, which is constructed by the Federal Reserve
Bank of Philadelphia, rose from 2.5 in April 2004 to 3.7 in May 2004 and
signaled growth through the beginning of next year. In addition, the June issue
of the Philadelphia Federal Reserve's "Business Outlook Survey" reported
expansion in the region's manufacturing sector and positive employment
indicators.
In the commercial banking business, which the company conducts throughout the
Delaware Valley region, commercial loan balances, on average, were $4.27 billion
for the 2004 second quarter. This was 11.2% higher than for the year-ago second
quarter and 2.7% higher than for the 2004 first quarter. Both year-over-year and
linked-quarter
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increases were recorded in traditional commercial and industrial (C and I),
commercial real estate and construction (CRE), and commercial mortgage balances,
on average.
The Delaware market and the southeastern Pennsylvania market each generated
approximately 40% of the year-over-year growth in commercial loans. Wilmington
Trust holds the leading market share in Delaware, and continues to gain market
share throughout southeastern Pennsylvania.
The increases in C and I loans were fueled by automobile floor plan loans, as
dealers borrowed to support inventory needs for the traditionally strong summer
selling season. In addition, the rising cost of metal, particularly steel, led
to higher borrowing levels in the construction-related and light manufacturing
sectors.
The strength of the housing market in Delaware contributed much of the growth in
CRE loans. In a reflection of the pace of housing demand, the Delaware Electric
Cooperative reported in June 2004 that it had added nearly 8,000 new customers
from 2001 to 2003 in southern Delaware, and that it expected to add another
4,000 by the end of 2004. The Delaware Electric Cooperative is the state's
second largest electric utility.
The growth in commercial mortgage balances was generated primarily by activity
in southern Delaware and on Maryland's Eastern Shore across a range of
residential, retail, agricultural, and hotel projects.
In the retail banking business, which is conducted primarily in the state of
Delaware, retail loan balances for the 2004 second quarter were $2.15 billion,
on average. This was 2.1% lower than for the year-ago second quarter, and equal
to the 2004 first quarter amount. Within the retail loan portfolio, increases in
consumer lending were offset by the decreases in residential mortgage balances.
9
Consumer loan balances for the 2004 second quarter were $1.10 billion, on
average. This was 6.4% higher than for the year-ago second quarter, and 2.5%
higher than for the 2004 first quarter. Indirect auto loans and home equity
lines of credit were higher on both a year-over-year and linked-quarter basis.
These increases reflected a renewed focus on the indirect auto lending market in
Delaware as well as marketing efforts targeted to home equity loans.
Core deposit balances for the 2004 second quarter were $4.49 billion, on
average. This was an increase of 4.7% from the year-ago second quarter, and an
increase of 2.1% from the 2004 first quarter.
Balances, on average, for core noninterest-bearing demand, interest-bearing
demand, and savings deposits rose on a year-over-year as well as a
linked-quarter basis. These increases reflected the results of a targeted
campaign to grow deposits, and the tendency of clients to hold their funds in
short-term liquid accounts in anticipation of future higher-yielding
opportunities. Accordingly, core certificate of deposit balances declined.
Changes in core deposit balances, on average, illustrate trends in the retail
banking business. Changes in other deposits and short-term borrowings reflect
funding strategies employed to support loan growth.
CREDIT QUALITY REMAINS STABLE
The stability of the company's credit portfolio was reinforced during the 2004
second quarter by further improvements in the major indicators of credit
quality. The net charge-off ratio, which management regards as the primary
measure of credit quality, was among the lowest in the company's 101-year
history. The percentage of loans rated "pass" by the company's internal risk
rating analysis was higher on both a year-ago and linked-quarter basis, and
exceeded 96% for the first time since at least 1994.
10
The net charge-off ratio was 3 basis points for the 2004 second quarter. This
was 4 basis points lower than for both the year-ago second quarter and the 2004
first quarter. On an annualized basis, the 2004 net charge-off ratio was 20
basis points. At this time last year, the annualized net charge-off ratio was 28
basis points; for the full-year 2003 it was 27 basis points.
Net charge-offs totaled $1.9 million for the 2004 second quarter. This was $2.5
million less than for the year-ago second quarter and $2.3 million less than for
the 2004 first quarter.
Nonaccruing loans totaled $41.8 million at June 30, 2004. This was $18.6 million
lower than at the 2003 second quarter period-end. This decline reflected a
combination of pay-downs and charge-offs that were recorded in 2003.
Compared to the 2004 first quarter, nonaccruing loans rose $1.2 million. This
amount was associated with a single client in the construction industry.
Other real estate owned (OREO) decreased for the fifth consecutive quarter. This
was due to the successful workout over the course of the past 12 months of a
Maryland beach resort residential project that first was classified as OREO in
December 2002.
Loans past due 90 days or more totaled $5.0 million at June 30, 2004. This was
$2.1 million lower than at the same period-end a year ago, and $1.2 million
lower than at March 31, 2004.
Recoveries were higher by $900,000 at June 30, 2004, than at June 30, 2003. The
increase was associated primarily with a previously charged-off loan to a client
in the construction industry.
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As loan balances continued to grow, the reserve for loan losses increased from
both the prior and year-ago period-ends. The provision for loan losses decreased
from both the year-ago second quarter and 2004 first quarter, in a reflection of
continued stability in credit quality and the low level of net charge-offs.
The loan loss reserve ratio at June 30, 2004, was 1.43%. This was unchanged from
March 31, 2004, and a decrease of 1 basis point from the year-ago period-end.
At June 30, 2004, 96.24% of loans outstanding were rated "pass" by the company's
internal risk rating analysis. This was a larger percentage on both a year-ago-
and linked-quarter basis. The percentage of loans rated pass has been higher
than 92% since 1998 and higher than 95% since 2000.
The composition of assets within the loan portfolio remained relatively
unchanged and well diversified across commercial and consumer lines.
EXPENSES REFLECT INVESTMENTS TO SUPPORT BUSINESS GROWTH
Noninterest expenses for the 2004 second quarter totaled $82.4 million. This was
6.9% higher than for the year-ago second quarter and slightly less than
noninterest expenses for the 2004 first quarter.
The year-over-year increase reflected management's commitment to investing for
future business growth, and included higher staffing levels and improved
technology. At June 30, 2004, there were 2,373 full-time-equivalent (FTE) staff
members. In comparison, the number of FTEs at June 30, 2003, was 2,319, and the
number at March 31, 2004, was 2,340.
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The primary contributors to the increase in expenses from the year-ago second
quarter were:
- Salaries and wages, which were 3.8% higher. There were 54 more full-time
equivalent staff members at the end of the 2004 second quarter.
- Incentives and bonuses, which rose 48.8% and reflected higher sales levels
in all businesses.
- Employment benefits, which increased 12.4% due to higher health insurance
and pension costs.
- Furniture, equipment, and supplies, which increased 6.8% due primarily to
higher depreciation costs associated with the upgrade of the company-wide
desktop operating system. In addition, one month of the expense associated
with the new trust accounting system was recorded during the 2004 second
quarter. Conversion to the new system, which is operated by a third
party, was completed during the period.
- Servicing and consulting fees, which rose 28.2%. Higher costs associated
with third-party investment advisors used in the open-architecture
investment counseling service accounted for the majority of this increase.
- Travel, entertainment, and training expense, which was 21.1% higher.
Contributing to this increase were training associated with the desktop
operating system upgrade, other internal training, and client
entertainment.
Other operating expense declined 13.0% on a year-over-year basis, as lower legal
costs offset higher audit-related expenses.
On a linked-quarter basis, total noninterest expenses for the 2004 second
quarter were slightly lower than for the 2004 first quarter. This occurred
primarily because certain sales-related incentives and associated employment
benefits expenses declined, offsetting the linked-quarter increase in
advertising.
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SHARE BUYBACK CONTINUES
During the 2004 second quarter, the company bought back 219,518 shares of its
stock at an average price of $35.44. This brought the total number of shares
repurchased under the current 8-million-share program, which commenced in April
2002, to 504,790.
OUTLOOK FOR THE THIRD QUARTER/REMAINDER OF 2004
Commenting on the outlook for the remainder of 2004, Cecala said:
- "It appears that the economy is recovering strongly. If the momentum
continues, we anticipate double-digit growth in fee-based revenue and loan
growth to continue in the 6% to 7% range.
- "The current loan loss provision reflects net charge-offs that are at
historic lows. Future provisions may be higher than the amount recorded
during the second quarter.
- "In our Wealth Advisory business, we expect continued fluctuations in
income from the services for which fees are not related to asset
valuations.
- "Our Corporate Client Services business could be negatively affected by
the move in Congress to eliminate certain tax benefits associated with
capital markets leasing transactions. Many clients are postponing projects
that could be affected until the corporate tax bill is passed and its
provisions are finalized.
- "The Federal Reserve Board's interest rate increase at the end of June
will have a positive effect on our net interest margin.
- "We anticipate that loan growth will contribute to additional compression
in the margin between now and the end of the year, but the margin probably
won't decline as much as we had previously predicted.
- "We now expect the margin to be in the 3.52% to 3.48% range for the
remainder of the year.
- "Expenses in the third and fourth quarter will reflect approximately $1
million per quarter in costs associated with the outsourcing of the trust
accounting
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system. The conversion to the new system was completed at the end of May
and the 2004 second quarter included only one month of the related
expense.
- "We expect to see some offsetting reductions in the use of contract
programmers, but staff members are being redeployed internally to support
other technology initiatives.
- "The increase in expenses for the second half of 2004 also will reflect
costs associated with meeting the requirements of Section 404 of the
Sarbanes-Oxley Act.
- "For the 2004 third quarter, we expect total noninterest expenses to be in
the $84 million to $87 million range."
CONFERENCE CALL TODAY
Management will discuss 2004 first quarter results and the outlook for the
remainder of the year in a conference call today at 10:00 a.m. (EDT). To access
the call, dial 800-475-2151. Supporting materials, financial statements, and
simultaneous streaming of the conference call audio will be available online at
wilmingtontrust.com.
A rebroadcast of the call will be available from 12:00 noon (EDT) today until
5:00 p.m. (EDT) on Friday, July 23, by calling 877-519-4471 and using PIN number
4781305. To access the rebroadcast from outside the United States, dial
973-341-3080 and use the same PIN number.
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements that reflect the company's
current expectations about its future performance. These statements rely on a
number of assumptions and estimates and are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations. Factors that could affect the company's future financial results
include, among other things, changes in national or regional economic
conditions, changes in market interest rates, increased competition in the
company's businesses, and higher-than-expected credit losses, and are discussed
more
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fully in the reports the company files with the Securities and Exchange
Commission. The company disclaims any obligation or intent to update the
forward-looking statements in order to reflect events or circumstances after the
date of this release.
ABOUT WILMINGTON TRUST
Wilmington Trust Corporation (NYSE: WL) is a financial services holding company
that provides wealth management and specialized corporate services to clients
throughout the United States and in more than 50 other countries, and commercial
banking services throughout the Delaware Valley region. Its wholly owned bank
subsidiary, Wilmington Trust Company, celebrated its 100th anniversary in 2003
and today is the 15th largest personal trust provider in the United States.
Wilmington Trust and its affiliates have offices in California, Delaware,
Florida, Georgia, Maryland, Nevada, New York, Pennsylvania, the Cayman Islands,
the Channel Islands, and London, and other affiliates in Dublin and Milan. For
more information, visit www.wilmingtontrust.com.
# # #
CONTACTS
Investors and analysts: News media:
Ellen J. Roberts Bill Benintende
Investor Relations Public Relations
(302) 651-8069 (302) 651-8268
eroberts@wilmingtontrust.com wbenintende@wilmingtontrust.com
# # #
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WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY
As of and for the six months ended June 30, 2004
INCOME STATEMENT
Three Months Ended
-----------------------------------------------------------------------------
% Change From:
--------------------
June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Prior Prior
(in millions, except per share amounts) 2004 2004 2003 2003 2003 Quarter Year
------------------------------------------ -------- -------- -------- --------- --------- --------- ---------
Net Interest Income
Interest income $ 91.6 $ 91.0 $ 90.7 $ 90.5 $ 94.7 0.7 (3.3)
Interest expense 19.4 19.2 20.3 22.4 24.5 1.0 (20.8)
-----------------------------------------------------------------------------------------------------
Net interest income 72.2 71.8 70.4 68.1 70.2 0.6 2.8
Provision for loan losses (3.2) (5.5) (5.0) (5.7) (5.9) (41.8) (45.8)
-----------------------------------------------------------------------------------------------------
Net interest income after
provision for loan losses 69.0 66.3 65.4 62.4 64.3 4.1 7.3
-----------------------------------------------------
Noninterest Income
Advisory fees:
Wealth Advisory Services 37.4 39.7 38.2 35.5 33.1 (5.8) 13.0
Corporate Client Services 18.4 17.9 19.5 16.4 16.5 2.8 11.5
Cramer Rosenthal McGlynn 2.5 2.1 2.1 1.3 1.1 19.0 127.3
Roxbury Capital Management 0.2 0.2 -- (0.1) (1.2) -- --
-----------------------------------------------------------------------------------------------------
Advisory fees 58.5 59.9 59.8 53.1 49.5 (2.3) 18.2
Amortization of affiliate other
intangibles (0.5) (0.4) (0.4) (0.7) (0.3) 25.0 66.7
-----------------------------------------------------
Advisory fees after amortization
of affiliate other intangibles 58.0 59.5 59.4 52.4 49.2 (2.5) 17.9
-----------------------------------------------------
Service charges on deposit accounts 8.1 8.2 8.6 8.6 7.8 (1.2) 3.8
Other noninterest income 4.1 5.0 5.0 5.3 6.0 (18.0) (31.7)
Securities gains -- -- 0.7 -- -- -- --
-----------------------------------------------------------------------------------------------------
Total noninterest income 70.2 72.7 73.7 66.3 63.0 (3.4) 11.4
-----------------------------------------------------
Net interest and noninterest income 139.2 139.0 139.1 128.7 127.3 0.1 9.3
-----------------------------------------------------
Noninterest Expense
Salaries and wages 32.4 32.4 31.6 31.5 31.2 -- 3.8
Incentives and bonuses 6.4 8.3 7.6 5.4 4.3 (22.9) 48.8
Employment benefits 10.0 10.9 8.3 8.8 8.9 (8.3) 12.4
Net occupancy 5.0 5.3 5.4 4.8 5.0 (5.7) --
Furniture, equipment, and supplies 7.8 7.6 7.1 6.6 7.3 2.6 6.8
Other noninterest expense:
Advertising and contributions 2.8 1.6 2.0 1.4 2.8 75.0 --
Servicing and consulting fees 5.0 4.6 4.3 4.0 3.9 8.7 28.2
Travel, entertainment, and training 2.3 1.7 1.7 1.8 1.9 35.3 21.1
Originating and processing fees 2.0 2.1 2.1 2.1 1.8 (4.8) 11.1
Other expense 8.7 8.7 9.9 8.8 10.0 -- (13.0)
-----------------------------------------------------------------------------------------------------
Total other noninterest expense 20.8 18.7 20.0 18.1 20.4 11.2 2.0
-----------------------------------------------------
Total noninterest expense 82.4 83.2 80.0 75.2 77.1 (1.0) 6.9
-----------------------------------------------------
Income before income taxes and
minority interest 56.8 55.8 59.1 53.5 50.2 1.8 13.1
Applicable income taxes 19.9 19.8 20.8 18.8 17.4 0.5 14.4
-----------------------------------------------------------------------------------------------------
Net income before minority interest 36.9 36.0 38.3 34.7 32.8 2.5 12.5
Minority interest 0.4 0.3 0.3 0.3 0.2 33.3 100.0
-----------------------------------------------------------------------------------------------------
Net income $ 36.5 $ 35.7 $ 38.0 $ 34.4 $ 32.6 2.2 12.0
=====================================================
Net income per share
Basic $ 0.55 $ 0.54 $ 0.58 $ 0.52 $ 0.50 1.9 10.0
Diluted 0.54 0.53 0.57 0.52 0.49 1.9 10.2
Weighted average shares outstanding
(in thousands)
Basic 66,309 66,160 66,034 65,956 65,790
Diluted 67,454 67,493 67,093 66,670 66,195
Net income as a percentage of:
Average assets 1.63% 1.61% 1.73% 1.58% 1.53%
Average stockholders' equity 17.82 17.69 19.08 17.64 17.04
WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY
As of and for the six months ended June 30, 2004
INCOME STATEMENT
Six Months Ended
--------------------------------------------------
June 30, June 30, %
(in millions, except per share amounts) 2004 2003 Change
--------------------------------------------- ----------- ----------- ---------
Net Interest Income
Interest income $ 182.6 $ 187.5 (2.6)
Interest expense 38.6 49.0 (21.2)
----------------------------------------------------------------------------------------
Net interest income 144.0 138.5 4.0
Provision for loan losses (8.8) (10.8) (18.5)
----------------------------------------------------------------------------------------
Net interest income after provision
for loan losses 135.2 127.7 5.9
-----------------------------
Noninterest Income
Advisory fees:
Wealth Advisory Services 77.0 66.7 15.4
Corporate Client Services 36.3 31.4 15.6
Cramer Rosenthal McGlynn 4.6 1.8 155.6
Roxbury Capital Management 0.4 (2.1) --
----------------------------------------------------------------------------------------
Advisory fees 118.3 97.8 21.0
Amortization of affilate other intangibles (0.8) (0.6) 33.3
----------------------------------------------------------------------------------------
Advisory fees after amortization
of affiliate other intangibles 117.5 97.2 20.9
-----------------------------
Service charges on deposit accounts 16.3 15.1 7.9
Other noninterest income 9.1 11.9 (23.5)
Securities gains -- -- --
----------------------------------------------------------------------------------------
Total noninterest income 142.9 124.2 15.1
-----------------------------
Net interest and noninterest income 278.1 251.9 10.4
-----------------------------
Noninterest Expense
Salaries and wages 64.8 61.0 6.2
Incentives and bonuses 14.7 13.7 7.3
Employment benefits 20.9 18.5 13.0
Net occupancy 10.3 10.4 (1.0)
Furniture, equipment, and supplies 15.4 14.7 4.8
Other noninterest expense:
Advertising and contributions 4.4 4.6 (4.3)
Servicing and consulting fees 9.6 7.9 21.5
Travel, entertainment, and training 4.0 3.4 17.6
Originating and processing fees 4.1 3.6 13.9
Other expense 17.4 18.9 (7.9)
----------------------------------------------------------------------------------------
Total other noninterest expense 39.5 38.4 2.9
-----------------------------
Total noninterest expense 165.6 156.7 5.7
-----------------------------
Income before income taxes and
minority interest 112.5 95.2 18.2
Applicable income taxes 39.6 32.8 20.7
----------------------------------------------------------------------------------------
Net income before minority interest 72.9 62.4 16.8
Minority interest 0.8 0.4 100.0
----------------------------------------------------------------------------------------
Net income $ 72.1 $ 62.0 16.3
=============================
Net income per share
Basic $ 1.09 $ 0.94 16.0
Diluted 1.07 0.94 13.8
Weighted average shares outstanding (in thousands)
Basic 66,234 65,741
Diluted 67,474 66,184
Net income as a percentage of:
Average assets 1.62% 1.49%
Average stockholders' equity 17.73 16.52
WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY
As of and for the six months ended June 30, 2004
STATEMENT OF CONDITION
% Change From
--------------------
June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Prior Prior
(in millions) 2004 2004 2003 2003 2003 Quarter Year
-------------------------------------------- -------- -------- -------- --------- -------- --------- --------
Assets
Cash and due from banks $ 402.6 $ 193.5 $ 210.2 $ 228.5 $ 214.5 108.1 87.7
--------------------------------------------------------
Federal funds sold and securities
purchased under agreements to resell 67.5 151.5 3.8 477.7 180.9 (55.4) (62.7)
--------------------------------------------------------
Investment securities:
U.S. Treasury and government agencies 416.9 468.1 470.0 515.1 548.6 (10.9) (24.0)
Obligations of state and political
subdivisions 14.0 14.3 16.0 16.1 16.6 (2.1) (15.7)
Preferred stock 121.4 121.2 120.1 119.4 122.4 0.2 (0.8)
Mortgage-backed securities 950.1 1,038.2 979.0 883.4 1,039.1 (8.5) (8.6)
Other securities 327.8 301.5 294.3 262.5 244.2 8.7 34.2
------------------------------------------------------------------------------------------------------------
Total investment securities 1,830.2 1,943.3 1,879.4 1,796.5 1,970.9 (5.8) (7.1)
--------------------------------------------------------
Loans:
Commercial, financial and agricultural 2,408.7 2,338.8 2,275.2 2,216.0 2,219.6 3.0 8.5
Real estate-construction 695.9 733.0 699.8 663.4 602.1 (5.1) 15.6
Mortgage-commercial 1,195.8 1,144.5 1,078.2 1,052.6 1,038.0 4.5 15.2
------------------------------------------------------------------------------------------------------------
Total commercial loans 4,300.4 4,216.3 4,053.2 3,932.0 3,859.7 2.0 11.4
--------------------------------------------------------
Mortgage-residential 447.6 471.9 489.6 545.9 592.3 (5.1) (24.4)
Consumer 1,132.1 1,073.7 1,077.1 1,055.5 1,037.0 5.4 9.2
Secured with liquid collateral 603.1 609.1 605.4 565.8 574.6 (1.0) 5.0
------------------------------------------------------------------------------------------------------------
Total retail loans 2,182.8 2,154.7 2,172.1 2,167.2 2,203.9 1.3 (1.0)
--------------------------------------------------------
Total loans net of unearned income 6,483.2 6,371.0 6,225.3 6,099.2 6,063.6 1.8 6.9
Reserve for loan losses (92.5) (91.2) (89.9) (91.2) (87.6) 1.4 5.6
--------------------------------------------------------
Net loans 6,390.7 6,279.8 6,135.4 6,008.0 5,976.0 1.8 6.9
--------------------------------------------------------
Premises and equipment 152.5 151.4 152.3 152.0 152.1 0.7 0.3
Goodwill 268.4 256.0 243.2 242.8 247.3 4.8 8.5
Other intangibles 29.0 23.6 24.0 24.2 21.3 22.9 36.2
Other assets 148.7 171.3 171.9 170.2 176.2 (13.2) (15.6)
------------------------------------------------------------------------------------------------------------
Total assets $9,289.6 $9,170.4 $8,820.2 $9,099.9 $8,939.2 1.3 3.9
========================================================
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand $1,207.2 $1,054.6 $1,025.5 $1,440.0 $ 944.4 14.5 27.8
Interest-bearing:
Savings 373.4 379.0 369.0 364.9 368.7 (1.5) 1.3
Interest-bearing demand 2,296.5 2,275.4 2,364.1 2,246.9 2,302.5 0.9 (0.3)
Certificates under $100,000 762.7 769.3 788.3 805.6 836.7 (0.9) (8.8)
Local certificates $100,000 and over 155.5 137.6 130.3 129.1 125.8 13.0 23.6
------------------------------------------------------------------------------------------------------------
Total core deposits 4,795.3 4,615.9 4,677.2 4,986.5 4,578.1 3.9 4.7
National certificates $100,000 and over 1,627.0 2,243.0 1,900.0 1,784.2 1,910.2 (27.5) (14.8)
------------------------------------------------------------------------------------------------------------
Total deposits 6,422.3 6,858.9 6,577.2 6,770.7 6,488.3 (6.4) (1.0)
--------------------------------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,434.9 885.5 828.5 938.8 1,083.4 62.0 32.4
U.S. Treasury demand 64.1 18.6 48.3 55.6 32.5 244.6 97.2
------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,499.0 904.1 876.8 994.4 1,115.9 65.8 34.3
--------------------------------------------------------
Other liabilities 142.5 152.0 158.1 140.2 133.2 (6.3) 7.0
Long-term debt 398.0 418.6 407.1 410.7 420.8 (4.9) (5.4)
------------------------------------------------------------------------------------------------------------
Total liabilities 8,461.8 8,333.6 8,019.2 8,316.0 8,158.2 1.5 3.7
--------------------------------------------------------
Minority interest 1.4 1.0 0.2 0.3 (0.1) 40.0 --
Stockholders' equity 826.4 835.8 800.8 783.6 781.1 (1.1) 5.8
------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders'
equity $9,289.6 $9,170.4 $8,820.2 $9,099.9 $8,939.2 1.3 3.9
========================================================
WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY
As of and for the six months ended June 30, 2004
AVERAGE STATEMENT OF CONDITION
% Change From
2004 2004 2003 2003 2003 ----------------
Second First Fourth Third Second Prior Prior
(in millions) Quarter Quarter Quarter Quarter Quarter Quarter Year
----------------------------------------------------- -------- -------- -------- -------- -------- ------- -------
Assets
Cash and due from banks $ 203.8 $ 193.9 $ 200.8 $ 190.5 $ 182.4 5.1 11.7
--------------------------------------------------------
Federal funds sold and securities
purchased under agreements to resell 16.3 16.8 16.2 35.6 38.4 (3.0) (57.6)
--------------------------------------------------------
Investment securities:
U.S. Treasury and government agencies 430.0 465.3 488.0 517.1 528.8 (7.6) (18.7)
Obligations of state and political subdivisions 14.2 14.7 16.1 16.2 16.6 (3.4) (14.5)
Preferred stock 119.5 120.3 118.9 120.7 120.1 (0.7) (0.5)
Mortgage-backed securities 989.4 1,008.8 947.2 961.2 888.8 (1.9) 11.3
Other securities 305.9 289.4 271.9 249.9 240.9 5.7 27.0
----------------------------------------------------------------------------------------------------------------
Total investment securities 1,859.0 1,898.5 1,842.1 1,865.1 1,795.2 (2.1) 3.6
--------------------------------------------------------
Loans:
Commercial, financial and agricultural 2,361.1 2,325.2 2,229.1 2,202.2 2,190.8 1.5 7.8
Real estate-construction 735.2 725.0 687.5 624.9 590.8 1.4 24.4
Mortgage-commercial 1,169.2 1,103.1 1,073.6 1,039.4 1,054.6 6.0 10.9
----------------------------------------------------------------------------------------------------------------
Total commercial loans 4,265.5 4,153.3 3,990.2 3,866.5 3,836.2 2.7 11.2
--------------------------------------------------------
Mortgage-residential 459.3 481.7 515.0 573.9 604.7 (4.7) (24.0)
Consumer 1,097.6 1,071.1 1,060.2 1,031.3 1,031.4 2.5 6.4
Secured with liquid collateral 597.6 602.6 601.7 583.6 565.4 (0.8) 5.7
----------------------------------------------------------------------------------------------------------------
Total retail loans 2,154.5 2,155.4 2,176.9 2,188.8 2,201.5 -- (2.1)
--------------------------------------------------------
Total loans net of unearned income 6,420.0 6,308.7 6,167.1 6,055.3 6,037.7 1.8 6.3
Reserve for loan losses (90.0) (89.1) (90.2) (87.1) (84.7) 1.0 6.3
----------------------------------------------------------------------------------------------------------------
Net loans 6,330.0 6,219.6 6,076.9 5,968.2 5,953.0 1.8 6.3
--------------------------------------------------------
Premises and equipment 151.9 151.9 151.9 153.0 153.7 -- (1.2)
Goodwill 256.1 243.2 242.8 247.4 245.8 5.3 4.2
Other intangibles 23.5 23.7 24.1 21.2 21.3 (0.8) 10.3
Other assets 159.4 167.5 171.0 176.7 177.6 (4.8) (10.2)
----------------------------------------------------------------------------------------------------------------
Total assets $9,000.0 $8,915.1 $8,725.8 $8,657.7 $8,567.4 1.0 5.0
========================================================
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand $ 890.6 $ 842.0 $ 868.2 $ 866.8 $ 796.4 5.8 11.8
Interest-bearing:
Savings 379.5 372.1 368.2 368.8 369.4 2.0 2.7
Interest-bearing demand 2,319.4 2,267.0 2,298.1 2,244.7 2,127.0 2.3 9.0
Certificates under $100,000 762.7 779.3 794.8 817.6 851.5 (2.1) (10.4)
Local certificates $100,000 and over 133.5 134.8 135.5 128.4 139.6 (1.0) (4.4)
----------------------------------------------------------------------------------------------------------------
Total core deposits 4,485.7 4,395.2 4,464.8 4,426.3 4,283.9 2.1 4.7
National certificates $100,000 and over 1,980.9 2,223.9 1,927.4 1,780.9 1,979.5 (10.9) 0.1
----------------------------------------------------------------------------------------------------------------
Total deposits 6,466.6 6,619.1 6,392.2 6,207.2 6,263.4 (2.3) 3.2
--------------------------------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,139.5 893.0 973.6 1,115.2 985.3 27.6 15.7
U.S. Treasury demand 12.4 11.8 9.8 20.0 8.4 5.1 47.6
----------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,151.9 904.8 983.4 1,135.2 993.7 27.3 15.9
--------------------------------------------------------
Other liabilities 151.3 168.3 153.8 136.1 135.0 (10.1) 12.1
Long-term debt 405.3 410.8 406.1 405.4 407.9 (1.3) (0.6)
----------------------------------------------------------------------------------------------------------------
Total liabilities 8,175.1 8,103.0 7,935.5 7,883.9 7,800.0 0.9 4.8
--------------------------------------------------------
Minority interest 1.0 0.3 0.2 -- 0.1 233.3 N/M
Stockholders' equity 823.9 811.8 790.1 773.8 767.3 1.5 7.4
----------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders'
equity $9,000.0 $8,915.1 $8,725.8 $8,657.7 $8,567.4 1.0 5.0
========================================================
WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY
As of and for the six months ended June 30, 2004
RATES
2004 2004 2003 2003 2003
Second First Fourth Third Second
YIELDS/RATES (tax-equivalent basis) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------- ------- ------- ------- ------- -------
Earning assets:
FEDERAL FUNDS SOLD AND SECURITIES
PURCHASED UNDER AGREEMENTS TO RESELL 1.09 % 1.01 % 1.09 % 1.12 % 1.32 %
U.S. Treasury and government agencies 3.50 3.44 3.32 3.22 3.29
Obligations of state and political subdivisions 8.71 8.55 9.04 8.99 9.01
Preferred stock 7.42 7.42 7.30 7.39 7.40
Mortgage-backed securities 3.94 4.12 4.13 3.64 4.47
Other securities 3.07 2.79 2.87 2.88 2.93
TOTAL INVESTMENT SECURITIES 3.96 3.99 3.98 3.71 4.15
Commercial, financial and agricultural 4.20 4.16 4.18 4.18 4.45
Real estate - construction 4.46 4.42 4.37 4.37 4.56
Mortgage-commercial 4.76 4.82 4.90 5.08 5.47
TOTAL COMMERCIAL LOANS 4.40 4.38 4.41 4.45 4.75
Mortgage-residential 6.05 6.08 6.40 6.63 6.77
Consumer 5.92 6.04 6.15 6.58 6.68
Secured with liquid collateral 2.49 2.51 2.51 2.52 2.73
TOTAL RETAIL LOANS 5.00 5.06 5.20 5.51 5.69
TOTAL LOANS 4.60 4.61 4.69 4.85 5.09
TOTAL EARNING ASSETS 4.45 4.46 4.52 4.56 4.86
Funds used to support earning assets
Savings 0.13 0.13 0.13 0.13 0.15
Interest-bearing demand 0.37 0.37 0.37 0.39 0.45
Certificates under $100,000 1.95 2.12 2.31 2.50 2.80
Local certificates $100,000 and over 1.54 1.44 1.49 1.60 1.78
CORE INTEREST-BEARING DEPOSITS 0.72 0.77 0.82 0.89 1.05
National certificates $100,000 and over 1.16 1.13 1.20 1.48 1.56
TOTAL INTEREST-BEARING DEPOSITS 0.88 0.91 0.95 1.09 1.23
Federal funds purchased and securities sold
under agreements to repurchase 1.35 1.37 1.38 1.39 1.54
U.S. Treasury demand 0.80 0.77 0.80 0.76 1.04
TOTAL SHORT-TERM BORROWINGS 1.34 1.37 1.37 1.38 1.54
Long-term debt 3.21 2.81 3.45 3.63 3.62
TOTAL INTEREST-BEARING LIABILITIES 1.08 1.08 1.16 1.29 1.42
TOTAL FUNDS USED TO SUPPORT
EARNING ASSETS 0.93 0.93 1.00 1.11 1.24
NET INTEREST MARGIN (TAX-EQUIVALENT BASIS) 3.52 3.53 3.52 3.45 3.62
Year-to-date net interest margin 3.52 3.53 3.60 3.60 3.68
Prime rate 4.00 4.00 4.00 4.00 4.25
Tax-equivalent net interest
income (in millions) $ 73.4 $ 72.9 $ 71.6 $ 69.3 $ 71.4
Average earning assets 8,295.3 8,224.0 8,025.4 7,956.0 7,871.3
Average rates are calculated using average balances based on historical cost and
do not reflect market valuation adjustments.
WILMINGTON TRUST CORPORATION
QUARTERLY SUMMARY
As of and for the six months ended June 30, 2004
SUPPLEMENTAL
Three Months Ended
--------------------------------------------------------------------------------------
% Change From:
----------------------
Prior
June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Prior Year
WEALTH ADVISORY SERVICES (in millions) 2004 2004 2003 2003 2003 Quarter Quarter
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Trust and investment advisory fees $ 26.9 $ 26.9 $ 26.3 $ 24.9 $ 23.2 -- 15.9
Mutual fund fees 4.9 5.2 5.4 5.6 5.6 (5.8) (12.5)
Other service fees 5.6 7.6 6.5 5.0 4.3 (26.3) 30.2
----------------------------------------------------------------------------------------------------
Total $ 37.4 $ 39.7 $ 38.2 $ 35.5 $ 33.1 (5.8) 13.0
==========================================================
CORPORATE CLIENT SERVICES (in millions)
---------------------------------------
Capital markets services $ 8.3 $ 7.8 $ 10.0 $ 7.5 $ 7.6 6.4 9.2
Entity management services 5.4 5.5 5.5 5.2 5.3 (1.8) 1.9
Retirement services 3.2 2.8 2.7 2.4 2.3 14.3 39.1
Cash management services 1.5 1.8 1.3 1.3 1.3 (16.7) 15.4
----------------------------------------------------------------------------------------------------
Total $ 18.4 $ 17.9 $ 19.5 $ 16.4 $ 16.5 2.8 11.5
==========================================================
ASSETS UNDER MANAGEMENT (in billions)
Wilmington Trust $ 24.2 $ 24.2 $ 24.4 $ 23.6 $ 22.7 (100.0) (100.0)
Roxbury Capital Management 3.2 3.4 3.2 3.1 3.3 (100.0) (100.0)
Cramer Rosenthal McGlynn 5.5 5.1 4.7 4.0 3.8 (100.0) (100.0)
----------------------------------------------------------------------------------------------------
Combined assets under management $ 32.9 $ 32.7 $ 32.3 $ 30.7 $ 29.8 (100.0) (100.0)
==========================================================
Staffing (FTE) 2,373 2,340 2,307 2,302 2,319
CAPITAL
(in millions, except per share amounts)
---------------------------------------
Average stockholders' equity $ 823.9 $ 811.8 $ 790.1 $ 773.8 $ 767.3 1.5 7.4
Period-end primary capital 918.9 927.0 890.7 874.8 868.7 (0.9) 5.8
Per share:
Book value 12.45 12.59 12.18 11.87 11.85 (1.1) 5.1
Quarterly dividends declared 0.285 0.27 0.27 0.27 0.27 5.6 5.6
Year-to-date dividends declared 0.555 0.27 1.065 0.795 0.525
Average stockholders' equity to assets 9.15 % 9.11 % 9.05 % 8.94 % 8.96 %
Total risk-based capital ratio 12.55 12.75 12.45 12.15 11.90
Tier 1 risk-based capital ratio 7.53 7.66 7.46 7.27 7.09
Tier 1 leverage capital ratio 6.30 6.39 6.34 6.19 6.01
CREDIT QUALITY (in millions)
---------------------------------------
Period-end reserve for loan losses $ 92.5 $ 91.2 $ 89.9 $ 91.2 $ 87.6
Period-end non-performing assets:
Nonaccrual 41.8 40.6 45.4 50.2 60.4
OREO 0.2 1.1 1.4 1.6 3.2
Period-end past due 90 days 5.0 6.2 5.6 7.3 7.1
Period-end renegotiated loans -- -- -- -- --
Gross charge-offs 3.5 5.4 7.3 3.3 5.1
Recoveries 1.6 1.2 0.9 1.3 0.7
Net charge-offs 1.9 4.2 6.4 2.0 4.4
Year-to-date net charge-offs 6.2 4.2 16.9 10.5 8.5
Ratios:
Period-end reserve to loans 1.43 % 1.43 % 1.44 % 1.50 % 1.44 %
Period-end non-performing assets
to loans 0.65 0.65 0.75 0.85 1.05
Period-end loans past due 90 days
to total loans 0.08 0.10 0.09 0.12 0.12
Net charge-offs to average loans 0.03 0.07 0.10 0.03 0.07
INTERNAL RISK RATING
---------------------------------------
Pass 96.24 % 95.90 % 95.83 % 95.81 % 95.62 %
Watchlisted 2.19 2.64 2.58 2.53 2.60
Substandard 1.31 1.21 1.27 1.25 1.23
Doubtful 0.26 0.25 0.32 0.41 0.55