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) October 15, 2004
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WILMINGTON TRUST CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-14659 51-0328154
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(State or other (Commission File Number) (IRS Employer
jurisdiction of incorporation) 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.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
230.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
1
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On October 15, 2004, the Board of Directors of Wilmington Trust Corporation (the
"Corporation") amended the Corporation's 2002 Long Term Incentive Plan to permit
directors to defer until retirement the receipt of any stock of the Corporation
earned in connection with their service as directors.
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
The press release of the Corporation reporting its results of operations and
financial condition for the third quarter of 2004 was dated October 16, 2004, is
attached hereto as Exhibit A, and is being furnished pursuant to Item 2.02 of
Form 8-K.
2
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
By: /s/ David R. Gibson
---------------------------------
Dated: October 16, 2004 Name: David R. Gibson,
Title: Executive Vice President and
Chief Financial Officer
(Authorized Officer and Principal
Financial Officer)
3
EXHIBIT A
WILMINGTON TRUST Wilmington Trust Corporation
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
News Release
FOR IMMEDIATE RELEASE
WILMINGTON TRUST REPORTS THIRD QUARTER EPS OF $0.50
Wilmington, Del., October 22, 2004 - Wilmington Trust Corporation (NYSE: WL)
today reported third quarter 2004 net income of $34.4 million, equal to the
year-ago third quarter. Earnings per share for the 2004 third quarter were
$0.50 on a diluted basis, opposite $0.52 for the same period last year.
Results from the Regional Banking business were robust. Net interest income,
before the provision for loan losses, was $74.0 million, which was 8.7% higher
than for the year-ago third quarter. On average, total loan balances topped
$6.5 billion, commercial loan balances rose 11.4%, and credit quality remained
strong.
Revenue from the Wealth Advisory business was $37.0 million, which was 4.2%
higher than for the 2003 third quarter. Revenue from the Corporate Client
businesses was $17.2 million, which was 4.9% more than for the year-ago third
quarter. Expenses were $86.9 million, and reflected steps the company is taking
to expand each of its businesses, improve system capabilities, and augment
compliance and risk management functions.
"I am pleased with the third quarter growth in our banking business and net
interest income, and the ongoing strength of our credit quality," said Ted T.
Cecala, Wilmington Trust chairman and chief executive officer. "Wealth Advisory
revenue increased modestly because fees from transactional services were $1
million less than at this time last year. Growth also was modest in Corporate
Client revenue, due to weak capital markets activity. Expenses rose due to
additional investments and people in each of our businesses, the higher costs of
new technologies, and compliance with increased regulatory requirements."
1
On a year-to-date basis, net income was $106.6 million, which was 10.6% higher
than for the first nine months of 2003. Earnings per share, on a diluted basis,
were $1.57, which was an 8.3% increase. Net interest income, before the
provision for loan losses, was 5.5% higher. Advisory revenue rose 16.2%, and
total noninterest revenue rose 11.4%. Noninterest expenses were 8.9% higher.
CASH DIVIDEND DECLARED
Noting the 13.6% growth in stockholders' equity at period-end, the Board of
Directors declared a regular quarterly cash dividend of $0.285 per share. This
was 5.5% more than the $0.27 per share declared in the year-ago third quarter.
The quarterly dividend is payable on November 15, 2004, to stockholders of
record on November 1, 2004.
NET INTEREST MARGIN STABILIZES
Higher net interest income and market interest rates contributed to improvement
in the net interest margin, which was 3.51% for the 2004 third quarter. This was
6 basis points higher than the year-ago third quarter margin of 3.45%, and it
marked the first year-over-year increase in the margin since the second quarter
of 2002. On a linked-quarter basis, the margin was 1 basis point lower than the
2004 second quarter margin of 3.52%.
Since June 30, the Federal Reserve has raised interest rates three times for a
total of 75 basis points, but only the first 25-basis-point increase was in
place for the entire third quarter. Subsequent 25-basis-point increases became
effective on August 10 and September 21. The company continues to be asset
sensitive, as assets are repricing at a faster pace than liabilities.
For the 2004 third quarter, loan balances represented 77.5% of the company's
total earning assets, on average, and the investment portfolio accounted for
22.1%.
2
Investment portfolio balances for the 2004 second quarter, on average, were
$1.87 billion, essentially unchanged from the prior-year and prior-quarter
levels. On a percentage basis, the composition of the assets within the
investment portfolio remained relatively unchanged.
At September 30, 2004, the average life of the portfolio was 6.06 years, and the
duration was 2.62. In comparison, at June 30, 2004, the average life was 6.67
years and the duration was 3.07.
LOAN BALANCES RISE FOR 14TH CONSECUTIVE QUARTER
Total loan balances, on average, reached $6.5 billion for the 2004 third
quarter. Commercial loan balances rose to $4.31 billion, and accounted for more
than 93% of the year-over-year growth in the total loan portfolio. Retail loan
balances, on average, increased to $2.22 billion. This pace of growth was
achieved even though residential mortgage balances, on average, fell by $133.7
million, or 23.3%, from the year-ago third quarter. Residential mortgage
balances declined primarily because of the company's ongoing practice of selling
new fixed-rate production into the secondary markets. Prepayments and
refinancings also contributed to the decrease.
The health of the Delaware Valley regional economy, which is broadly
diversified, contributed to the growth in total loan balances. Unemployment
rates and other economic indicators for Delaware and southeastern Pennsylvania
remained stronger than for other parts of the United States. The Delaware Valley
is where the Regional Banking business is concentrated, and where commercial
lending is targeted to family owned or closely held businesses with annual sales
of up to $250 million.
In the commercial loan portfolio, much of the growth was in traditional
commercial and industrial (C and I) loans. Demand for C and I loans was
dispersed throughout the Delaware Valley region, and came from building material
suppliers, contractors, and
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other clients. The rising costs of raw materials, such as steel, copper, and
oil, prompted some manufacturing and distribution clients to increase their
short-term borrowings.
The growth in commercial mortgage and commercial real estate and construction
balances reflected continued development in southern Delaware and the Ocean
City, Maryland, area. Borrowings spanned a range of residential and retail
projects.
Within the retail portfolio, growth in consumer lending offset the declines in
residential mortgage balances. Home equity loans and lines of credit and
indirect auto lending accounted for much of the increase in consumer balances.
Dealer-generated originations were 35% higher than for the year-ago third
quarter. Targeted efforts to increase small business lending also contributed to
the increases in consumer loan balances.
Most retail loans and core deposits are associated with clients in the state of
Delaware, which is where the company focuses its retail banking activities.
Changes in non-core deposit balances reflect funding strategies the company
employed to support loan growth. Loans secured with liquid collateral are
associated primarily with Wealth Advisory clients.
CREDIT QUALITY REMAINS STABLE
The net charge-off ratio, which management considers the primary measure of
credit quality, was 6 basis points, and continued to be in line with historic
levels. The percentage of loans rated "pass" by the internal risk rating
analysis was higher on both a year-ago and linked-quarter basis, and exceeded
96% for the second consecutive quarter.
The level of nonaccruing loans increased mainly because of a single relationship
with a Delaware Valley-based client who is in the dining and recreation
business. During the 2004 third quarter, approximately $23 million associated
with this relationship was transferred to nonaccruing status.
4
Changes in the reserve and provision for loan losses reflected loan growth and
credit quality. The decline in the loan loss reserve ratio reflected the high
percentage of pass-rated loans and the lower provision for loan losses, which
was reduced due to the recovery of approximately $1.4 million on two previously
charged-off loans.
The composition of assets within the loan portfolio remained relatively
unchanged, and the portfolio remained well diversified across commercial and
consumer lines.
NET INTEREST AND NONINTEREST REVENUE STREAMS EVENLY BALANCED
Noninterest income for the 2004 third quarter totaled $69.4 million, and
accounted for 49.4% of total net interest and noninterest income. The comparable
percentages were 51.5% for the year-ago third quarter, and 50.4% for the 2004
second quarter. The changes in these percentages reflected the corresponding
increases in net interest income.
Approximately 80% of third quarter 2004 noninterest income was generated by the
advisory businesses. This was also the case for the year-ago third quarter and
the 2004 second quarter. The advisory businesses comprise Wealth Advisory
Services (WAS), Corporate Client Services (CCS), and income from the company's
investments in affiliate money managers Cramer Rosenthal McGlynn and Roxbury
Capital Management.
Higher income from the affiliate money managers was offset by a lower pace of
growth in the WAS and CCS businesses. Other 2004 third quarter noninterest
income included securities gains of $600,000, primarily from the sale of a
single instrument.
NEWER WEALTH ADVISORY MARKETS GAIN TRACTION
Wealth Advisory Services (WAS) revenue for the 2004 third quarter was $37.0
million. This was 4.2% higher than for the year-ago third quarter, and slightly
less than for the
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2004 second quarter. Lower revenue from specialized planning services and money
market mutual fund fees offset increased revenue from core trust and investment
advisory services.
WAS sales were higher year-over-year as well as on a linked-quarter basis. The
California, Maryland, and New York markets generated the most sizeable
percentage increases in sales. In Maryland and New York, the increases reflected
how recent staff additions have helped the company gain more traction in these
markets.
The largest contributor to WAS results is revenue from trust and investment
advisory services. Approximately 75% of trust and investment advisory revenue is
based on equity market valuations. The remainder is associated with fixed income
instruments.
In the 2004 third quarter, trust and investment advisory revenue reflected the
aforementioned sales momentum, and outpaced changes in the financial markets. At
$27.4 million, revenue from these services was 10.0% higher than for the
year-ago third quarter, and 1.9% more than for the 2004 second quarter. In
comparison, the Dow Jones Industrial Average, the Standard & Poor's 500 Index,
and the NASDAQ Composite Index recorded single-digit increases for the
comparable 52-week period. For the comparable 90-day period, all three indices
declined.
Revenue from planning and other services reflected the fluctuations inherent in
this part of the business. It is not unusual for revenue from these services to
change from period to period, depending on client demand at any point in time.
These services are priced according to their complexity, and are not related to
asset valuations.
Approximately 95% of WAS-related mutual fund fees are tied to money market
mutual funds, which means that equity market movements have little, if any,
impact on their levels.
6
On October 1, 2004, the acquisition of Grant, Tani, Barash & Altman (GTBA) was
completed. Revenue and expenses from GTBA, which is a Beverly Hills-based
business management firm that serves high-net-worth clients, will be
consolidated in WAS results and included in Wilmington Trust's financial
statements beginning with the fourth quarter of 2004. The transaction is
expected to be modestly accretive to Wilmington Trust's 2004 earnings.
CORPORATE CLIENT REVENUE REFLECTS CAPITAL MARKETS ENVIRONMENT
Corporate Client Services (CCS) revenue for the 2004 third quarter was $17.2
million, which was 4.9% higher than for the year-ago third quarter. Revenue from
the entity management, retirement services, and cash management components of
the CCS business was higher, but these increases were offset by a decline in
revenue from the capital markets component.
The capital markets component of the CCS business provides trust and
administrative services for a variety of structured finance transactions.
Changing market dynamics in various parts of the structured finance industry
caused the decrease in capital markets revenue.
Market demand for trust-preferred securities remained strong, and sales of
services that support these issues were 17.1% higher than for the 2003 third
quarter. Demand for services that support asset-backed securitizations also
remained strong, and sales of these services were 19.1% higher than for the
year-ago third quarter.
The growth in sales related to asset-backed securitizations was offset by a
decrease in associated recurring revenue, because more contracts are maturing in
a shorter span of time than in the past. Prior to the downward turn in market
interest rates that began 3 years ago, the duration of most contracts was 5 to
10 years. As interest rates fell,
7
investors sought durations of 2 to 5 years, which means that many of the
contracts are now reaching maturity and ceasing to generate revenue.
The market for cross-border and capital equipment leasings stagnated while
investors awaited the outcome of proposed tax legislation. For the year-ago
third quarter, sales of services that support leasing transactions were nearly
$530,000. In comparison, for the current-year third quarter, these sales
amounted to less than $300,000. The corporate tax bill that Congress approved on
October 11 eliminated favorable tax treatments for certain leasing structures.
In the entity management component of the CCS business, the higher results
reflected a 50.0% increase in revenue from European-based services. This
component performs administrative activities that support legal entities in
preferred jurisdictions.
Revenue from the retirement services component of the CCS business was higher
mainly because sales of trustee services for defined contribution plans were
nearly double the amount recorded for the year-ago third quarter.
Most CCS services are provided on a fee-for-service basis, and priced according
to complexity. For the 2004 third quarter, approximately 25% of total CCS
revenue was tied to asset valuations, versus approximately 23% for the same
period last year.
Due to the seasonal nature of the CCS business, management regards
year-over-year changes as more meaningful indicators of trends than
linked-quarter comparisons. Linked-quarter data is contained in the financial
statements that accompany this release.
MANAGED ASSETS AT CRAMER ROSENTHAL MCGLYNN SURPASS PREVIOUS RECORD
Assets under management at value-style affiliate money manager Cramer Rosenthal
McGlynn (CRM) reached $5.8 billion, surpassing the record set at June 30, 2004,
by
8
more than $300 million, or 6.7%. Managed assets were higher by $1.9 billion, or
46.8%, than at September 30, 2003. In comparison, as noted earlier, the three
major equity market indices recorded declines for the comparable 52-week period.
For the 2004 third quarter, income from Wilmington Trust's investment in CRM was
nearly double the year-ago third quarter amount, and even with the 2004 second
quarter. The increases in managed assets and income reflected market
appreciation as well as CRM's ability to attract additional assets.
PROFITABILITY CONTINUES AT ROXBURY CAPITAL MANAGEMENT
Roxbury Capital Management's (RCM) return to profitability continued to gain
momentum. Income from Wilmington Trust's investment in the growth-style
affiliate was $300,000 for the 2004 third quarter. In comparison, the company
recorded a $100,000 loss from RCM for the year-ago third quarter.
RCM's results reflected continued strident expense management and the popularity
of its small- and mid-capitalization products, which generate higher fees than
other investment products. Outflows from its core large-capitalization product
caused overall assets under management to decline.
EXPENSES REFLECT CONTINUED BUSINESS INVESTMENTS
Noninterest expenses for the 2004 third quarter totaled $86.9 million. This was
15.6% more than for the year-ago third quarter, and 5.5% more than for the 2004
second quarter. The increase in expenses reflected a number of steps taken
throughout 2004 to position the company for continued growth.
9
The largest expense increases were recorded in salaries and wages, which were
$2.3 million higher than for the year-ago third quarter, and $1.4 million higher
than for the 2004 second quarter. These increases resulted from staff additions
that were made to strengthen each of the company's businesses and to comply with
increasing regulatory requirements. On a full-time equivalent basis, there were
73 more staff members at September 30, 2004, than at the same time last year.
The Regional Banking business has added commercial lending staff in Maryland and
Pennsylvania, and opened a loan production office in Bel Air, Maryland. Bel Air
is in Harford County, which is central to the growing area between Wilmington
and Baltimore. In Delaware, retail banking staff have been added to develop new
products and business strategies.
The Wealth Advisory business has expanded its investment management team and
added other staff in New York and Baltimore. The Corporate Client business has
added sales and support staff in Europe and the United States. Throughout the
company, additional staff have been hired to comply with the Sarbanes-Oxley Act,
and to enhance the risk management process.
To a certain extent, the larger staff size accounted for increases in incentives
and bonuses. In the 2004 third quarter, these expenses also reflected certain
incentives that are earned semiannually. Higher pension expense and health
insurance costs accounted for the rise in employment benefits costs.
Most of the increase in furniture, equipment, and supplies expense was related
to the new trust accounting system. The 2004 third quarter was the first quarter
to reflect the full quarterly cost of the system, which was outsourced in May
2004.
10
Increases in servicing and consulting expense were associated with higher demand
for Wealth Advisory investment consulting services, and reflected payments to
third-party investment advisors. The increases also included approximately
$444,000 for the third quarter and $719,000 year to date in costs associated
with Sarbanes-Oxley compliance.
Other noninterest expenses increased from the year-ago third quarter due to a
combination of higher legal, audit, insurance, and courier costs. Higher banking
and trust differences accounted for most of the linked-quarter increase.
SHARE REPURCHASE ACTIVITY REFLECTS CAPITAL MANAGEMENT
The company bought back 122,854 of its shares during the 2004 third quarter, at
an average price of $36.34. This brought the total number of shares repurchased
under the current 8-million-share program, which commenced in April 2002, to
627,644.
During the 2004 third quarter, Wilmington Trust reissued 1,106,625 shares of its
stock. The size of the stock reissue reflected the completion of Wilmington
Trust's acquisition of 100% of Balentine & Company. The original terms of the
acquisition entitled certain Balentine principals to receive payments in the
form of Wilmington Trust stock in 2005, 2006, and 2007. In June, the parties
elected to accelerate the stock payments, and the transaction was completed on
July 1, 2004.
OUTLOOK FOR THE REMAINDER OF 2004
Commenting on the outlook for the remainder of 2004, Cecala said:
- "In our Regional Banking business, we expect loan growth in the 6% to 7%
range, assuming no significant change in the Delaware Valley economy.
- "The net interest margin should be between 3.50% and 3.54%, assuming no
further interest rate changes.
- "We are asset sensitive, and we will benefit from a rising interest rate
environment.
- "We expect credit quality to remain strong.
11
- "The provision for loan losses may rise from its third quarter level.
- "As long as the financial markets remain unsettled, we expect
year-over-year growth in Wealth Advisory Services revenue to mirror what
we recorded for the third quarter.
- "In our Corporate Client business, we do not expect to see the substantial
third-to-fourth quarter increase in revenue that we have seen in the past,
unless capital markets activity increases. If not, we expect fourth
quarter revenue to be on a par with the third quarter amount.
- "Expenses will continue to reflect the business investments that we have
made and continue to make, and the higher costs of complying with more
rigorous regulatory requirements.
- "For the 2004 fourth quarter, we anticipate expenses of $87 million to $89
million. This includes a seasonal spike in advertising and contributions.
- "The acquisition of Grant, Tani, Barash & Altman will raise revenue and
expenses, and make a modest contribution to overall earnings."
NEW DISCLOSURE ADDED
A business segment report has been added to the financial statements that
accompany this release. The new report summarizes the year-to-date revenue,
expenses, and pre-tax profitability of the Regional Banking business, the Wealth
Advisory Services business, the Corporate Client Services business, and the
affiliate managers (CRM and RCM). For the purposes of business discussion, the
results from CRM and RCM are reported separately. For the purposes of segment
reporting, the results from CRM and RCM are combined.
The business segment report shows that for the first 9 months of 2004, 71% of
the company's pre-tax profits were generated by the Regional Banking business;
17% from Wealth Advisory Services; 10% from Corporate Client Services; and 2%
from the affiliate managers. The corresponding percentages for the first 9
months of 2003 were 72%, 17%, 14%, and (3)%, respectively.
12
More information about segment profitability is available in the "Notes to
Consolidated Financial Statements" sections of the company's Form 10-Q filings
and the 2003 annual report to stockholders.
CONFERENCE CALL TODAY
Management will discuss 2004 third 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, October 29, by calling 877-519-4471 and using PIN
number 5219564. 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 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.
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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
# # #
14
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
HIGHLIGHTS
Three Months Ended Nine Months Ended
------------------------------------- ----------------------------------------
Sept. 30, Sept. 30, % Sept. 30, Sept. 30, %
2004 2003 Change 2004 2003 Change
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OPERATING RESULTS (IN MILLIONS)
Net interest income $ 74.0 $ 68.1 8.7 $ 218.0 $ 206.7 5.5
Provision for loan losses (2.9) (5.7) (49.1) (11.6) (16.6) (30.1)
Noninterest income 69.4 66.3 4.7 212.3 190.5 11.4
Noninterest expense 86.9 75.2 15.6 252.5 231.9 8.9
Net income 34.4 34.4 -- 106.6 96.4 10.6
PER SHARE DATA
Basic net income $ 0.51 $ 0.52 (1.9) $ 1.60 $ 1.46 9.6
Diluted net income 0.50 0.52 (3.8) 1.57 1.45 8.3
Dividends paid 0.285 0.27 5.6 0.84 0.795 5.7
Book value at period end 13.22 11.87 11.4 13.22 11.87 11.4
Market value at period end 36.21 30.76 17.7 36.21 30.76 17.7
Market range:
High 37.54 32.78 14.5 38.80 33.61 15.4
Low 34.31 29.03 18.2 34.21 26.00 31.6
AVERAGE SHARES OUTSTANDING (IN THOUSANDS)
Basic 67,321 65,956 2.1 66,596 65,814 1.2
Diluted 68,468 66,670 2.7 67,805 66,348 2.2
AVERAGE BALANCE SHEET (IN MILLIONS)
Investment portfolio $ 1,866.1 $ 1,865.1 0.1 $ 1,874.4 $ 1,708.8 9.7
Loans 6,528.9 6,055.3 7.8 6,419.7 6,023.9 6.6
Earning assets 8,423.5 7,956.0 5.9 8,314.7 7,765.4 7.1
Core deposits 4,578.1 4,426.3 3.4 4,486.7 4,319.6 3.9
Stockholders' equity 871.2 773.8 12.6 835.8 762.5 9.6
STATISTICS AND RATIOS (NET INCOME ANNUALIZED)
Return on average stockholders' equity 15.71% 17.64% (10.9) 17.04% 16.90% 0.8
Return on average assets 1.48% 1.58% (6.3) 1.57% 1.52% 3.3
Net interest margin (taxable equivalent) 3.51% 3.45% 1.7 3.52% 3.60% (2.2)
Dividend payout ratio 55.88% 51.92% 7.6 52.50% 54.45% (3.6)
Full-time equivalent headcount 2,375 2,302 3.2 2,375 2,302 3.2
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
QUARTERLY INCOME STATEMENT
Three Months Ended
------------------------------------------------------------------------------
% Change From:
-----------------
Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior
(in millions) 2004 2004 2004 2003 2003 Quarter Year
---------------------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME
Interest income $ 97.8 $ 91.6 $ 91.0 $ 90.7 $ 90.5 6.8 8.1
Interest expense 23.8 19.4 19.2 20.3 22.4 22.7 6.3
-----------------------------------------------------------------------------------------------------------
Net interest income 74.0 72.2 71.8 70.4 68.1 2.5 8.7
Provision for loan losses (2.9) (3.2) (5.5) (5.0) (5.7) (9.4) (49.1)
-----------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan losses 71.1 69.0 66.3 65.4 62.4 3.0 13.9
--------------------------------------------------------
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services
Trust and investment advisory fees 27.4 26.9 26.9 26.3 24.9 1.9 10.0
Mutual fund fees 5.0 4.9 5.2 5.4 5.6 2.0 (10.7)
Planning and other services 4.6 5.6 7.6 6.5 5.0 (17.9) (8.0)
-----------------------------------------------------------------------------------------------------------
Total Wealth Advisory Services 37.0 37.4 39.7 38.2 35.5 (1.1) 4.2
--------------------------------------------------------
Corporate Client Services
Capital markets services 7.1 8.3 7.8 10.0 7.5 (14.5) (5.3)
Entity management services 5.8 5.4 5.5 5.5 5.2 7.4 11.5
Retirement services 2.9 3.2 2.8 2.7 2.4 (9.4) 20.8
Cash management services 1.4 1.5 1.8 1.3 1.3 (6.7) 7.7
-----------------------------------------------------------------------------------------------------------
Total Corporate Client Services 17.2 18.4 17.9 19.5 16.4 (6.5) 4.9
--------------------------------------------------------
Cramer Rosenthal McGlynn 2.5 2.5 2.1 2.1 1.3 ---- 92.3
Roxbury Capital Management 0.3 0.2 0.2 ---- (0.1) 50.0 ----
-----------------------------------------------------------------------------------------------------------
Advisory fees 57.0 58.5 59.9 59.8 53.1 (2.6) 7.3
Amortization of affiliate other intangibles (0.6) (0.5) (0.4) (0.4) (0.7) 20.0 (14.3)
-----------------------------------------------------------------------------------------------------------
Advisory fees after amortization
of affiliate other intangibles 56.4 58.0 59.5 59.4 52.4 (2.8) 7.6
--------------------------------------------------------
Service charges on deposit accounts 7.8 8.1 8.2 8.6 8.6 (3.7) (9.3)
Other noninterest income 4.6 4.1 5.0 5.0 5.3 12.2 (13.2)
Securities gains 0.6 ---- ---- 0.7 ---- ---- ----
-----------------------------------------------------------------------------------------------------------
Total noninterest income 69.4 70.2 72.7 73.7 66.3 (1.1) 4.7
--------------------------------------------------------
Net interest and noninterest income 140.5 139.2 139.0 139.1 128.7 0.9 9.2
--------------------------------------------------------
NONINTEREST EXPENSE
Salaries and wages 33.8 32.4 32.4 31.6 31.5 4.3 7.3
Incentives and bonuses 7.1 6.4 8.3 7.6 5.4 10.9 31.5
Employment benefits 10.3 10.0 10.9 8.3 8.8 3.0 17.0
Net occupancy 5.2 5.0 5.3 5.4 4.8 4.0 8.3
Furniture, equipment, and supplies 8.1 7.8 7.6 7.1 6.6 3.8 22.7
Other noninterest expense:
Advertising and contributions 1.9 2.8 1.6 2.0 1.4 (32.1) 35.7
Servicing and consulting fees 5.9 5.0 4.6 4.3 4.0 18.0 47.5
Travel, entertainment, and training 2.2 2.3 1.7 1.7 1.8 (4.3) 22.2
Originating and processing fees 2.1 2.0 2.1 2.1 2.1 5.0 ----
Other expense 10.3 8.7 8.7 9.9 8.8 18.4 17.0
-----------------------------------------------------------------------------------------------------------
Total other noninterest expense 22.4 20.8 18.7 20.0 18.1 7.7 23.8
--------------------------------------------------------
Total noninterest expense 86.9 82.4 83.2 80.0 75.2 5.5 15.6
--------------------------------------------------------
Income before income taxes and
minority interest 53.6 56.8 55.8 59.1 53.5 (5.6) 0.2
Applicable income taxes 19.2 19.9 19.8 20.8 18.8 (3.5) 2.1
-----------------------------------------------------------------------------------------------------------
Net income before minority interest 34.4 36.9 36.0 38.3 34.7 (6.8) (0.9)
Minority interest ---- 0.4 0.3 0.3 0.3 (100.0) (100.0)
-----------------------------------------------------------------------------------------------------------
Net income $ 34.4 $ 36.5 $ 35.7 $ 38.0 $ 34.4 (5.8) ----
========================================================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
YEAR-TO-DATE INCOME STATEMENT
Nine Months Ended
--------------------------------
Sept 30, Sept 30, %
(in millions) 2004 2003 Change
----------------------------------------------------------------------------------------
NET INTEREST INCOME
Interest income $ 280.4 $ 278.1 0.8
Interest expense 62.4 71.4 (12.6)
----------------------------------------------------------------------------
Net interest income 218.0 206.7 5.5
Provision for loan losses (11.6) (16.6) (30.1)
----------------------------------------------------------------------------
Net interest income after provision
for loan losses 206.4 190.1 8.6
--------------------
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services
Trust and investment advisory fees 81.1 70.9 14.4
Mutual fund fees 15.1 16.9 (10.7)
Planning and other services 17.8 14.5 22.8
----------------------------------------------------------------------------
Total Wealth Advisory Services 114.0 102.3 11.4
--------------------
Corporate Client Services
Capital markets services 23.3 21.4 8.9
Entity management services 16.8 15.4 9.1
Retirement services 8.9 7.1 25.4
Cash management services 4.6 3.9 17.9
----------------------------------------------------------------------------
Total Corporate Client Services 53.6 47.8 12.1
--------------------
Cramer Rosenthal McGlynn 7.1 3.2 121.9
Roxbury Capital Management 0.7 (2.3) ----
----------------------------------------------------------------------------
Advisory fees 175.4 151.0 16.2
Amortization of affiliate other intangibles (1.5) (1.4) 7.1
----------------------------------------------------------------------------
Advisory fees after amortization
of affiliate other intangibles 173.9 149.6 16.2
--------------------
Service charges on deposit accounts 24.1 23.7 1.7
Other noninterest income 13.7 17.2 (20.3)
Securities gains 0.6 ---- ----
----------------------------------------------------------------------------
Total noninterest income 212.3 190.5 11.4
--------------------
Net interest and noninterest income 418.7 380.6 10.0
--------------------
NONINTEREST EXPENSE
Salaries and wages 98.6 92.5 6.6
Incentives and bonuses 21.8 19.2 13.5
Employment benefits 31.2 27.3 14.3
Net occupancy 15.5 15.2 2.0
Furniture, equipment, and supplies 23.5 21.1 11.4
Other noninterest expense:
Advertising and contributions 6.2 6.1 1.6
Servicing and consulting fees 15.4 12.0 28.3
Travel, entertainment, and training 6.2 5.1 21.6
Originating and processing fees 6.2 5.8 6.9
Other expense 27.9 27.6 1.1
----------------------------------------------------------------------------
Total other noninterest expense 61.9 56.6 9.4
--------------------
Total noninterest expense 252.5 231.9 8.9
--------------------
Income before income taxes and
minority interest 166.2 148.7 11.8
Applicable income taxes 58.9 51.5 14.4
----------------------------------------------------------------------------
Net income before minority interest 107.3 97.2 10.4
Minority interest 0.7 0.8 (12.5)
----------------------------------------------------------------------------
Net income $ 106.6 $ 96.4 10.6
====================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
STATEMENT OF CONDITION
% Change From
---------------
Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior
(in millions) 2004 2004 2004 2003 2003 Quarter Year
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 217.7 $ 402.6 $ 193.5 $ 210.2 $ 228.5 (45.9) (4.7)
-------------------------------------------------------
Federal funds sold and securities
purchased under agreements to resell 332.1 67.5 151.5 3.8 477.7 392.0 (30.5)
-------------------------------------------------------
Investment securities:
U.S. Treasury and government agencies 447.1 416.9 468.1 470.0 515.1 7.2 (13.2)
Obligations of state and political subdivisions 12.7 14.0 14.3 16.0 16.1 (9.3) (21.1)
Preferred stock 122.9 121.4 121.2 120.1 119.4 1.2 2.9
Mortgage-backed securities 957.5 950.1 1,038.2 979.0 883.4 0.8 8.4
Other securities 323.8 327.8 301.5 294.3 262.5 (1.2) 23.4
----------------------------------------------------------------------------------------------------------------
Total investment securities 1,864.0 1,830.2 1,943.3 1,879.4 1,796.5 1.8 3.8
-------------------------------------------------------
Loans:
Commercial, financial and agricultural 2,428.6 2,408.7 2,338.8 2,275.2 2,216.0 0.8 9.6
Real estate-construction 759.0 695.9 733.0 699.8 663.4 9.1 14.4
Mortgage-commercial 1,186.6 1,195.8 1,144.5 1,078.2 1,052.6 (0.8) 12.7
----------------------------------------------------------------------------------------------------------------
Total commercial loans 4,374.2 4,300.4 4,216.3 4,053.2 3,932.0 1.7 11.2
-------------------------------------------------------
Mortgage-residential 439.8 447.6 471.9 489.6 545.9 (1.7) (19.4)
Consumer 1,182.6 1,132.1 1,073.7 1,077.1 1,055.5 4.5 12.0
Secured with liquid collateral 619.4 603.1 609.1 605.4 565.8 2.7 9.5
----------------------------------------------------------------------------------------------------------------
Total retail loans 2,241.8 2,182.8 2,154.7 2,172.1 2,167.2 2.7 3.4
-------------------------------------------------------
Total loans net of unearned income 6,616.0 6,483.2 6,371.0 6,225.3 6,099.2 2.0 8.5
Reserve for loan losses (91.3) (92.5) (91.2) (89.9) (91.2) (1.3) 0.1
----------------------------------------------------------------------------------------------------------------
Net loans 6,524.7 6,390.7 6,279.8 6,135.4 6,008.0 2.1 8.6
-------------------------------------------------------
Premises and equipment 151.5 152.5 151.4 152.3 152.0 (0.7) (0.3)
Goodwill 325.6 268.7 256.0 243.2 242.8 21.3 34.1
Other intangibles 34.6 28.7 23.6 24.0 24.2 19.3 43.0
Other assets 180.7 148.7 171.3 171.9 170.2 21.5 6.2
----------------------------------------------------------------------------------------------------------------
Total assets $9,630.9 $9,289.6 $9,170.4 $8,820.2 $9,099.9 3.7 5.8
=======================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $1,167.5 $1,207.2 $1,054.6 $1,025.5 $1,440.0 (3.3) (18.9)
Interest-bearing:
Savings 358.1 373.4 379.0 369.0 364.9 (4.1) (1.9)
Interest-bearing demand 2,342.4 2,296.5 2,275.4 2,364.1 2,246.9 2.0 4.3
Certificates under $100,000 762.3 762.7 769.3 788.3 805.6 (0.1) (5.4)
Local certificates $100,000 and over 181.1 155.5 137.6 130.3 129.1 16.5 40.3
----------------------------------------------------------------------------------------------------------------
Total core deposits 4,811.4 4,795.3 4,615.9 4,677.2 4,986.5 0.3 (3.5)
National certificates $100,000 and over 2,177.9 1,627.0 2,243.0 1,900.0 1,784.2 33.9 22.1
----------------------------------------------------------------------------------------------------------------
Total deposits 6,989.3 6,422.3 6,858.9 6,577.2 6,770.7 8.8 3.2
-------------------------------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,111.6 1,434.9 885.5 828.5 938.8 (22.5) 18.4
U.S. Treasury demand 78.6 64.1 18.6 48.3 55.6 22.6 41.4
----------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,190.2 1,499.0 904.1 876.8 994.4 (20.6) 19.7
-------------------------------------------------------
Other liabilities 150.2 142.5 152.0 158.1 140.2 5.4 7.1
Long-term debt 410.7 398.0 418.6 407.1 410.7 3.2 ----
----------------------------------------------------------------------------------------------------------------
Total liabilities 8,740.4 8,461.8 8,333.6 8,019.2 8,316.0 3.3 5.1
-------------------------------------------------------
Minority interest ---- 1.4 1.0 0.2 0.3 (100.0) (100.0)
Stockholders' equity 890.5 826.4 835.8 800.8 783.6 7.8 13.6
----------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders'
equity $9,630.9 $9,289.6 $9,170.4 $8,820.2 $9,099.9 3.7 5.8
=======================================================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
AVERAGE STATEMENT OF CONDITION
% Change From
2004 2004 2004 2003 2003 ----------------
Third Second First Fourth Third Prior Prior
(in millions) Quarter Quarter Quarter Quarter Quarter Quarter Year
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 226.0 $ 203.8 $ 193.9 $ 200.8 $ 190.5 10.9 18.6
------------------------------------------------------
Federal funds sold and securities
purchased under agreements to resell 28.5 16.3 16.8 16.2 35.6 74.8 (19.9)
------------------------------------------------------
Investment securities:
U.S. Treasury and government agencies 449.6 430.0 465.3 488.0 517.1 4.6 (13.1)
Obligations of state and political subdivisions 12.7 14.2 14.7 16.1 16.2 (10.6) (21.6)
Preferred stock 121.2 119.5 120.3 118.9 120.7 1.4 0.4
Mortgage-backed securities 960.4 989.4 1,008.8 947.2 961.2 (2.9) (0.1)
Other securities 322.2 305.9 289.4 271.9 249.9 5.3 28.9
------------------------------------------------------------------------------------------------------------
Total investment securities 1,866.1 1,859.0 1,898.5 1,842.1 1,865.1 0.4 0.1
------------------------------------------------------
Loans:
Commercial, financial and agricultural 2,403.3 2,361.1 2,325.2 2,229.1 2,202.2 1.8 9.1
Real estate-construction 718.1 735.2 725.0 687.5 624.9 (2.3) 14.9
Mortgage-commercial 1,186.4 1,169.2 1,103.1 1,073.6 1,039.4 1.5 14.1
------------------------------------------------------------------------------------------------------------
Total commercial loans 4,307.8 4,265.5 4,153.3 3,990.2 3,866.5 1.0 11.4
------------------------------------------------------
Mortgage-residential 440.2 459.3 481.7 515.0 573.9 (4.2) (23.3)
Consumer 1,164.1 1,097.6 1,071.1 1,060.2 1,031.3 6.1 12.9
Secured with liquid collateral 616.8 597.6 602.6 601.7 583.6 3.2 5.7
------------------------------------------------------------------------------------------------------------
Total retail loans 2,221.1 2,154.5 2,155.4 2,176.9 2,188.8 3.1 1.5
------------------------------------------------------
Total loans net of unearned income 6,528.9 6,420.0 6,308.7 6,167.1 6,055.3 1.7 7.8
Reserve for loan losses (92.3) (90.0) (89.1) (90.2) (87.1) 2.6 6.0
------------------------------------------------------------------------------------------------------------
Net loans 6,436.6 6,330.0 6,219.6 6,076.9 5,968.2 1.7 7.8
------------------------------------------------------
Premises and equipment 152.9 151.9 151.9 151.9 153.0 0.7 (0.1)
Goodwill 325.4 256.1 243.2 242.8 247.4 27.1 31.5
Other intangibles 35.1 23.5 23.7 24.1 21.2 49.4 65.6
Other assets 159.6 159.4 167.5 171.0 176.7 0.1 (9.7)
------------------------------------------------------------------------------------------------------------
Total assets $9,230.2 $9,000.0 $8,915.1 $8,725.8 $8,657.7 2.6 6.6
======================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 959.7 $ 890.6 $ 842.0 $ 868.2 $ 866.8 7.8 10.7
Interest-bearing:
Savings 368.4 379.5 372.1 368.2 368.8 (2.9) (0.1)
Interest-bearing demand 2,297.1 2,319.4 2,267.0 2,298.1 2,244.7 (1.0) 2.3
Certificates under $100,000 763.9 762.7 779.3 794.8 817.6 0.2 (6.6)
Local certificates $100,000 and over 189.0 133.5 134.8 135.5 128.4 41.6 47.2
------------------------------------------------------------------------------------------------------------
Total core deposits 4,578.1 4,485.7 4,395.2 4,464.8 4,426.3 2.1 3.4
National certificates $100,000 and over 1,937.1 1,980.9 2,223.9 1,927.4 1,780.9 (2.2) 8.8
------------------------------------------------------------------------------------------------------------
Total deposits 6,515.2 6,466.6 6,619.1 6,392.2 6,207.2 0.8 5.0
------------------------------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,289.8 1,139.5 893.0 973.6 1,115.2 13.2 15.7
U.S. Treasury demand 3.8 12.4 11.8 9.8 20.0 (69.4) (81.0)
------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,293.6 1,151.9 904.8 983.4 1,135.2 12.3 14.0
------------------------------------------------------
Other liabilities 147.0 151.3 168.3 153.8 136.1 (2.8) 8.0
Long-term debt 403.2 405.3 410.8 406.1 405.4 (0.5) (0.5)
------------------------------------------------------------------------------------------------------------
Total liabilities 8,359.0 8,175.1 8,103.0 7,935.5 7,883.9 2.2 6.0
------------------------------------------------------
Minority interest ---- 1.0 0.3 0.2 ---- (100.0) ----
Stockholders' equity 871.2 823.9 811.8 790.1 773.8 5.7 12.6
------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders'
equity $9,230.2 $9,000.0 $8,915.1 $8,725.8 $8,657.7 2.6 6.6
======================================================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
YIELDS AND RATES
2004 2004 2004 2003 2003
Third Second First Fourth Third
YIELDS/RATES (TAX-EQUIVALENT BASIS) Quarter Quarter Quarter Quarter Quarter
-------------------------------------------------------------------------------------------------------------------------------
EARNING ASSETS:
FEDERAL FUNDS SOLD AND SECURITIES
PURCHASED UNDER AGREEMENTS TO RESELL 1.48% 1.09% 1.01% 1.09% 1.12%
U.S. Treasury and government agencies 3.53 3.50 3.44 3.32 3.22
Obligations of state and political subdivisions 8.75 8.71 8.55 9.04 8.99
Preferred stock 7.42 7.42 7.42 7.30 7.39
Mortgage-backed securities 4.08 3.94 4.12 4.13 3.64
Other securities 3.04 3.07 2.79 2.87 2.88
TOTAL INVESTMENT SECURITIES 4.02 3.96 3.99 3.98 3.71
Commercial, financial and agricultural 4.51 4.20 4.16 4.18 4.18
Real estate-construction 4.93 4.46 4.42 4.37 4.37
Mortgage-commercial 4.85 4.76 4.82 4.90 5.08
TOTAL COMMERCIAL LOANS 4.67 4.40 4.38 4.41 4.45
Mortgage-residential 6.02 6.05 6.08 6.40 6.63
Consumer 5.84 5.92 6.04 6.15 6.58
Secured with liquid collateral 2.93 2.49 2.51 2.51 2.52
TOTAL RETAIL LOANS 5.07 5.00 5.06 5.20 5.51
TOTAL LOANS 4.81 4.60 4.61 4.69 4.85
TOTAL EARNING ASSETS 4.62 4.45 4.46 4.52 4.56
FUNDS USED TO SUPPORT EARNING ASSETS:
Savings 0.21 0.13 0.13 0.13 0.13
Interest-bearing demand 0.52 0.37 0.37 0.37 0.39
Certificates under $100,000 1.95 1.95 2.12 2.31 2.50
Local certificates $100,000 and over 1.40 1.54 1.44 1.49 1.60
CORE INTEREST-BEARING DEPOSITS 0.84 0.72 0.77 0.82 0.89
National certificates $100,000 and over 1.48 1.16 1.13 1.20 1.48
TOTAL INTEREST-BEARING DEPOSITS 1.06 0.88 0.91 0.95 1.09
Federal funds purchased and securities sold
under agreements to repurchase 1.62 1.35 1.37 1.38 1.39
U.S. Treasury demand 1.54 0.80 0.77 0.80 0.76
TOTAL SHORT-TERM BORROWINGS 1.62 1.34 1.37 1.37 1.38
Long-term debt 3.44 3.21 2.81 3.45 3.63
TOTAL INTEREST-BEARING LIABILITIES 1.29 1.08 1.08 1.16 1.29
TOTAL FUNDS USED TO SUPPORT EARNING ASSETS 1.11 0.93 0.93 1.00 1.11
NET INTEREST MARGIN (TAX-EQUIVALENT BASIS) 3.51 3.52 3.53 3.52 3.45
YEAR-TO-DATE NET INTEREST MARGIN 3.52 3.52 3.53 3.60 3.60
Prime rate 4.42 4.00 4.00 4.00 4.00
Tax-equivalent net interest income (in millions) $ 75.0 $ 73.4 $ 72.9 $ 71.6 $ 69.3
AVERAGE EARNING ASSETS 8,423.5 8,295.3 8,224.0 8,025.4 7,956.0
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 nine months ended September 30, 2004
SUPPLEMENTAL INFORMATION
Three Months Ended
---------------------------------------------------------------------------
% Change From:
-----------------
Prior
Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Year
2004 2004 2004 2003 2003 Quarter Quarter
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME
Net income per share
Basic $ 0.51 $ 0.55 $ 0.54 $ 0.58 $ 0.52 (7.3) (1.9)
Diluted 0.50 0.54 0.53 0.57 0.52 (7.4) (3.8)
Weighted average shares outstanding (in thousands)
Basic 67,321 66,309 66,160 66,034 65,956
Diluted 68,468 67,454 67,493 67,093 66,670
Net income as a percentage of:
Average assets 1.48% 1.63% 1.61% 1.73% 1.58%
Average stockholders' equity 15.71 17.82 17.69 19.08 17.64
ASSETS UNDER MANAGEMENT * (IN BILLIONS)
Wilmington Trust $ 24.6 $ 24.3 $ 24.3 $ 24.4 $ 23.6 1.2 4.2
Roxbury Capital Management 2.9 3.2 3.4 3.2 3.1 (9.4) (6.5)
Cramer Rosenthal McGlynn 5.8 5.5 5.1 4.7 4.0 5.5 45.0
--------------------------------------------------------------------------------------------------------------
Combined assets under management $ 33.3 $ 33.0 $ 32.8 $ 32.3 $ 30.7 0.9 8.5
=====================================================
* Assets under managements include
estimates for values associated
with certain assets that lack
readily ascertainable values, such
as limited partnership interests.
Full-time equivalent headcount 2,375 2,356 2,340 2,307 2,302
CAPITAL (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
Average stockholders' equity $ 871.2 $ 823.9 $ 811.8 $ 790.1 $ 773.8 5.7 12.6
Period-end primary capital 981.8 918.9 927.0 890.7 874.8 6.8 12.2
Per share:
Book value 13.22 12.45 12.59 12.18 11.87 6.2 11.4
Quarterly dividends declared 0.285 0.285 0.27 0.27 0.27 ---- 5.6
Year-to-date dividends declared 0.84 0.555 0.27 1.065 0.795
Average stockholders' equity to assets 9.44% 9.15% 9.11% 9.05% 8.94%
Total risk-based capital ratio 11.97 12.55 12.75 12.45 12.15
Tier 1 risk-based capital ratio 7.17 7.53 7.66 7.46 7.27
Tier 1 leverage capital ratio 6.04 6.30 6.39 6.34 6.19
CREDIT QUALITY (IN MILLIONS)
Period-end reserve for loan losses $ 91.3 $ 92.5 $ 91.2 $ 89.9 $ 91.2
Period-end non-performing assets:
Nonaccrual 60.7 41.8 40.6 45.4 50.2
OREO 0.2 0.2 1.1 1.4 1.6
Period-end past due 90 days 7.6 5.0 6.2 5.6 7.3
Period-end renegotiated loans ---- ---- ---- ---- ----
Gross charge-offs 5.8 3.5 5.4 7.3 3.3
Recoveries 1.7 1.6 1.2 0.9 1.3
Net charge-offs 4.1 1.9 4.2 6.4 2.0
Year-to-date net charge-offs 10.2 6.2 4.2 16.9 10.5
Ratios:
Period-end reserve to loans 1.38% 1.43% 1.43% 1.44% 1.50%
Period-end non-performing assets to loans 0.92 0.65 0.65 0.75 0.85
Period-end loans past due 90 days to total loans 0.11 0.08 0.10 0.09 0.12
Net charge-offs to average loans 0.06 0.03 0.07 0.10 0.03
INTERNAL RISK RATING
Pass 96.74% 96.24% 95.90% 95.83% 95.81%
Watchlisted 1.81 2.19 2.64 2.58 2.53
Substandard 1.21 1.31 1.21 1.27 1.25
Doubtful 0.24 0.26 0.25 0.32 0.41
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the nine months ended September 30, 2004
YEAR-TO-DATE BUSINESS SEGMENT REPORT
Nine Months Ended
-------------------------------------------------------------
Sept 30, Sept 30, $ %
(in millions) 2004 2003 Change Change
-----------------------------------------------------------------------------------------------------------------
REGIONAL BANKING
Net interest income $ 197.1 $ 185.4 $ 11.7 6.3%
Provision for loan losses (11.6) (15.6) (4.0) (25.6)
Noninterest income 38.0 41.2 (3.2) (7.8)
Noninterest expense 105.7 103.2 2.5 2.4
-----------------------------------------------------------------------------------------------------------------
Income before taxes 117.8 107.8 10.0 9.3
--------------------------------------------------------------
WEALTH ADVISORY SERVICES
Net interest income $ 18.2 $ 18.5 $ (0.3) (1.6)%
Provision for loan losses -- (1.0) (1.0) (100.0)
Noninterest income 107.0 94.2 12.8 13.6
Noninterest expense 97.5 86.5 11.0 12.7
-----------------------------------------------------------------------------------------------------------------
Income before taxes 27.7 25.2 2.5 9.9
--------------------------------------------------------------
CORPORATE CLIENT SERVICES
Net interest income $ 6.6 $ 7.6 $ (1.0) (13.2)%
Provision for loan losses -- -- -- --
Noninterest income 60.0 54.8 5.2 9.5
Noninterest expense 49.3 42.2 7.1 16.8
-----------------------------------------------------------------------------------------------------------------
Income before taxes 17.3 20.2 (2.9) (14.4)
--------------------------------------------------------------
AFFILIATE MANAGERS*
Net interest income $ (3.9) $ (4.8) $ 0.9 (18.8)%
Provision for loan losses -- -- -- --
Noninterest income 7.3 0.3 7.0 N/M
Noninterest expense -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Income before taxes 3.4 (4.5) 7.9 --
--------------------------------------------------------------
TOTAL WILMINGTON TRUST CORPORATION
Net interest income $ 218.0 $ 206.7 $ 11.3 5.5%
Provision for loan losses (11.6) (16.6) (5.0) (30.1)
Noninterest income 212.3 190.5 21.8 11.4
Noninterest expense 252.5 231.9 20.6 8.9
-----------------------------------------------------------------------------------------------------------------
Income before taxes $ 166.2 $ 148.7 $ 17.5 11.8
==============================================================
*Affiliate managers comprise Cramer Rosenthal McGlynn and Roxbury Capital
Management.