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) January 20, 2005
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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 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.)
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))
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 fourth quarter and full year of 2004 was dated
January 21, 2005, 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
Dated: January 21, 2005 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)
3
EXHIBIT A
FOR IMMEDIATE RELEASE
WILMINGTON TRUST REPORTS Q4 AND FULL YEAR RESULTS
Wilmington, Del., January 21, 2005 - Wilmington Trust Corporation (NYSE: WL)
reported fourth quarter 2004 net income of $35.4 million and earnings per share
of $0.52 on a diluted basis. For the year-ago fourth quarter, net income was
$38.0 million and earnings per share were $0.57.
For the 2004 full year, net income rose 5.6% and earnings per share rose 3.5%
from their full-year 2003 levels. Net income was $141.9 million for 2004 and
earnings per share were $2.09, versus $134.4 million and $2.02, respectively,
for 2003.
Loan balances, core deposits, net interest income, and the net interest margin
for the 2004 fourth quarter were higher than their year-ago levels, and credit
quality remained strong. Revenue from Wealth Advisory Services and the affiliate
money managers also rose. Offsetting these increases were declines in revenue
from Corporate Client Services and service charges on deposit accounts. These
offsets, combined with expense growth, prevented 2004 fourth quarter results
from surpassing those of the year-ago fourth quarter.
"Our 2004 results show how we continue to grow our company and increase profits
while we add staff, improve technology, and invest for our future," said Ted T.
Cecala, Wilmington Trust chairman and chief executive officer. "Our Regional
Banking business had a very strong year, credit quality remained strong, and the
increase in market interest rates during the second half of the year contributed
to improvement in the net interest margin. Continued growth in Wealth Advisory
revenue and improved results from our affiliate money managers helped offset the
capital markets weakness that slowed the pace of growth in Corporate Client
revenue."
1
The balance between net interest and noninterest income remained even.
Net interest income, which was generated primarily by the Regional Banking
business, represented 49.3% (after the provision for loan losses) of total net
interest and noninterest income for the 2004 fourth quarter and full year. This
was a higher percentage than for the year-ago fourth quarter, and essentially
the same as for 2003. Most of the noninterest income was generated by the
Wealth Advisory Services and Corporate Client Services businesses. "Having a
diversified mix of revenue helps us reduce volatility," Cecala said.
Loan growth, credit quality, and the rising interest rate environment propelled
net interest income, after the provision for loan losses, to $72.4 million for
the 2004 fourth quarter and $278.8 million for the full year. These were
increases of 10.7% and 9.1%, respectively, from the corresponding periods in
2003.
The net interest margin was 3.59% for the 2004 fourth quarter and 3.57% for the
full year, compared with 3.52% and 3.60%, respectively, for the year-ago
corresponding periods.
Advisory revenue totaled $64.3 million for the 2004 fourth quarter and $239.7
million for the full year. These were increases of 7.5% and 13.8%, respectively,
from the corresponding periods in 2003. These increases were driven by growth in
the Wealth Advisory business and at the affiliate money managers.
Noninterest expenses were $91.5 million for the 2004 fourth quarter, an increase
of 14.4% from the year-ago fourth quarter. For the 2004 full year, expenses
totaled $344.0 million, which was 10.3% higher than for 2003. Approximately
one-half of the quarterly and full-year increases were associated with staffing
costs.
The company's 2004 results generated a return on average assets of 1.56% and a
return on average stockholders' equity of 16.68%. The corresponding returns for
2003 were 1.58% and 17.46%, respectively.
2
CASH DIVIDEND DECLARED
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
fourth quarter. The quarterly dividend is payable on February 15, 2005, to
stockholders of record on February 1, 2005.
REGIONAL BANKING RECORDS 15TH CONSECUTIVE QUARTER OF LOAN GROWTH
Among the indicators of strength in the Regional Banking business were the
growth in loans, core deposits, and net interest income, and continued strong
credit quality. Regional Banking generated 72% of the company's 2004 pretax
profits, versus 68% in 2003.
The Regional Banking business is concentrated in the Delaware Valley region.
Commercial lending is targeted to family-owned or closely held businesses with
annual sales of up to $250 million. Retail lending and core deposit gathering is
focused on clients in the state of Delaware.
Loan balances, on average, were $6.62 billion for the 2004 fourth quarter and
$6.47 billion for the full year, which were increases of 7.4% and 6.8%,
respectively, from the corresponding periods in 2003. The loan growth
demonstrated the company's success in attracting new clients and doing more
business with existing clients throughout the Delaware Valley, which continued
to benefit from a healthy and broadly diversified economy.
Loans from the southeastern Pennsylvania market were $1.41 billion, on average,
for 2004, which was 13.7% higher than for 2003. Pennsylvania market loans
accounted for approximately 22% of total loan balances, on average, up from 20%
for 2003.
3
Commercial loans accounted for 84% of the growth in total loan balances, on
average, for the 2004 fourth quarter, and almost all of the growth in balances,
on average, for the year.
Commercial loan balances, on average, were $4.37 billion for the 2004 fourth
quarter and $4.27 billion for the full year. These were increases of 9.6% and
10.6%, respectively, from the corresponding periods in 2003. The growth came
from throughout the Delaware Valley, and was not concentrated in any one part of
the region. The growth reflected the addition of business from new as well as
existing clients.
Within the commercial portfolio, real estate-related loans accounted for 53% of
the growth in balances, on average, for the 2004 fourth quarter and 60% for the
full year. Real estate-related loan balances, on average, were $1.96 billion for
the 2004 fourth quarter and $1.90 billion for the full year. These were
increases of 11.5% and 14.7%, respectively, from the corresponding periods in
2003. Borrowings spanned a range of residential and retail projects, especially
in southern Delaware. This part of the state continued to experience rapid
development, as a growing population of permanent residents spurred demand for
housing and related services.
Traditional commercial loan balances (those not related to commercial mortgage,
construction, or real estate), on average, were $2.41 billion for the 2004
fourth quarter and $2.37 billion for the full year. These were increases of 8.0%
and 7.5%, respectively, from the corresponding periods in 2003. Borrowings by
contractors and wholesale distributors of building materials contributed to the
growth.
RETAIL BANKING GROWTH GAINS MOMENTUM
The growth in retail loans and core deposits was the result of targeted efforts
to expand relationships with clients in Delaware.
4
Retail loan balances, on average, were $2.25 billion for the 2004 fourth
quarter, which was $73.6 million higher than for the year-ago fourth quarter.
This 3.4% growth occurred even though balances in the residential mortgage
portion of the retail portfolio declined $80.7 million.
Residential mortgage balances declined due to prepayments, refinancings, and the
company's continuing practice of selling new fixed-rate residential mortgage
production into the secondary market.
On a full-year basis, 2004 balances for retail loans were $2.20 billion, on
average, which was $1.4 million higher than for 2003, even though residential
mortgage balances were $131.4 million lower.
Growth in the consumer lending portion of the retail portfolio offset the
residential mortgage balance declines. Consumer loan balances, on average, were
$1.20 billion for the 2004 fourth quarter and $1.13 billion for the full year.
These were increases of 13.4% and 9.3%, respectively, from the corresponding
periods in 2003.
Core deposit balances, on average, were $4.75 billion for the 2004 fourth
quarter and $4.55 billion for the full year. These were increases of 6.5% and
4.5%, respectively, from the corresponding periods in 2003. Higher balances of
core certificates of deposit in amounts of $100,000 or more accounted for most
of the growth in core deposits. These CDs reflected commercial and personal
client activity in the Delaware Valley region.
Approximately 94% of core deposits were associated with clients in Delaware,
where the company's consumer banking activities are focused.
OTHER BALANCE SHEET ITEMS
5
Investment portfolio balances, on average, were $1.85 billion for the 2004
fourth quarter and $1.87 billion for the full year. These were increases of 0.4%
and 7.2%, respectively, from the corresponding periods in 2003. The full-year
increase resulted mainly from the company's issue in April 2003 of $250 million
in subordinated long-term debt. Investments made with the proceeds of this debt
issue were recorded for 12 months in 2004, versus nine months in 2003.
At December 31, 2004, the average life of the portfolio was 6.41 years and the
duration was 2.66. By comparison, at September 30, 2004, the average life was
6.06 years and the duration was 2.62. The changes in average life and duration
reflected the rising interest rate environment. On a percentage basis, the
composition of investments in the portfolio remained relatively unchanged.
Changes in non-core deposits reflected strategies the company undertook to fund
loan growth. The full-year 2004 versus full-year 2003 increase in long-term
debt, on average, reflected the aforementioned debt issue.
CREDIT QUALITY REMAINS STABLE
The net charge-off ratio, which management regards as the primary measure of
credit quality, was 8 basis points for the 2004 fourth quarter and 24 basis
points for the full year. This was 2 basis points and 3 basis points lower,
respectively, than for the corresponding periods in 2003.
During the 2004 fourth quarter, $5.2 million of a nonaccruing loan was
renegotiated, which accounted for the decline from the 2004 third quarter in
nonaccruing loans. The renegotiated amount is part of a loan that was
transferred to nonaccruing status at the end of the 2003 first quarter.
6
On January 18, 2005, a payment of $11.1 million was received against a $23
million loan that was transferred to nonaccruing status during the 2004 third
quarter. Had this payment been received before December 31, 2004, period-end
nonaccruing loans would have totaled $45.3 million instead of $56.4 million, and
the period-end ratio of nonperforming assets to loans would have been 0.75%
instead of 0.91%.
Changes in the reserve and provision for loan losses reflected loan growth and
credit quality. On a percentage basis, the composition of assets in the loan
portfolio remained relatively unchanged, and the portfolio remained diversified
across commercial and consumer lines.
NET INTEREST MARGIN REFLECTS RISING INTEREST RATES
At the end of June 2004, after leaving market interest rates unchanged for
nearly 12 full months, the Federal Open Market Committee (FOMC) commenced a
series of rate increases that totaled 125 basis points for the year. The rising
rate environment helped improve the company's net interest margin, as the yields
on total earning assets rose at a faster rate than the cost of funds.
After remaining in the 3.51% to 3.53% range for the first three quarters of
2004, the margin rose to 3.59% for the 2004 fourth quarter. This was 7 basis
points higher than for the year-ago fourth quarter.
For the full-year 2004, the margin was 3.57%, compared with 3.60% for 2003.
Loans, which comprise approximately 77% of the company's earning assets, on
average, generally reprice over a span of 30 to 45 days, and trail the FOMC
actions.
WEALTH ADVISORY SALES MOMENTUM CONTINUES
7
Wealth Advisory Services (WAS) revenue was $41.5 million for the 2004
fourth quarter and $155.6 million for the full year. These were increases of
8.6% and 10.8%, respectively, from the corresponding periods in 2003. WAS sales
were 8.9% higher for 2004 than for 2003. The growth demonstrated the continued
ability of this business to attract new clients and provide additional services
to existing clients.
Most of the WAS revenue growth occurred in trust and investment advisory fees,
which recorded double-digit increases, and totaled $29.1 million for the 2004
fourth quarter and $110.2 million for the full year. These were increases of
10.6% and 13.5%, respectively, from the corresponding periods in 2003. Demand
for open-architecture investment consulting was a major contributor to the
growth.
Fees from planning and other services were $7.5 million for the 2004 fourth
quarter and $25.4 million for the full year. These were increases of 15.4% and
21.0%, respectively, from the corresponding periods in 2003.
The acquisition of Grant Tani Barash & Altman (GTBA) contributed approximately
$2 million to planning and other services fees, all of which was recorded during
the 2004 fourth quarter. GTBA is a Beverly Hills-based provider of business
management services for high-net-worth clients. GTBA's results were consolidated
in Wilmington Trust's financial statements beginning in October 2004, when the
acquisition was completed.
Fees for planning and other services are unrelated to asset valuations. They are
priced according to complexity. Fluctuations in the levels of revenue from these
services are inherent, since they depend on client demand at any given point in
time.
Mutual fund fees fell on a quarterly and full-year basis, as clients redeemed
shares of money market funds, on which approximately 95% of WAS mutual fund fees
are based.
8
This reflected the low interest rate environment in the year-ago
periods, opposite the rising rate environment in 2004.
The New York office was the strongest non-Delaware contributor for both the 2004
fourth quarter and full year. Compared to the corresponding periods in 2003,
sales from the New York office were 26.0% higher for the 2004 fourth quarter and
14.6% for the full year.
WAS generated 14% of the company's 2004 pretax profits, versus 18% in 2003. The
2004 profitability reflected expense increases, as WAS added staff, expanded
offices, and completed the GTBA acquisition.
CORPORATE CLIENT RESULTS REFLECT CAPITAL MARKETS ENVIRONMENT
Corporate Client Services (CCS) revenue was $18.0 million for the 2004 fourth
quarter, which was 7.7% lower than for the year-ago fourth quarter. Good growth
in the entity management and retirement services components of the CCS business
was not strong enough to offset declines in the capital markets component, which
is the largest contributor to CCS revenue.
For the 2004 full year, CCS revenue totaled $71.6 million for 2004, which was
6.4% higher than for 2003.
Weakness in the capital markets industry plagued CCS throughout the year.
Industry factors that affected revenue included:
- Stagnation in the market for services that support trust and
administrative services for capital equipment leasing transactions.
Clients delayed or cancelled projects during the first nine months of 2004
pending the outcome of proposed tax legislation. In October, favorable tax
treatments were eliminated for cross-border leasing
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transactions. While this action resolved the uncertainty, it happened too
late in the year to prompt a return to historic levels in this business.
Sales in 2004 of leasing-related services were $0.5 million lower than in
2003.
- A decrease in recurring fees for asset-backed securitization contracts.
Sales of services that support asset-backed securitizations were nearly
19% higher for 2004 than for 2003, but this growth was offset somewhat by
the impact of contracts that have shortened in recent years, as market
interest rates fell. Three years ago, the duration of most contracts was 5
to 10 years, compared with durations of 2 to 5 years today. As a result,
more contracts are maturing more quickly and ceasing to generate fees.
- Changes in the market for trust-preferred securities. Fewer transactions
occurred in 2004 than in 2003, and pricing pressures escalated.
Revenue from the entity management component was 5.5% higher for the 2004 fourth
quarter and 8.1% higher for the full year than for the corresponding periods in
2003. The increases mainly were due to continued growth in services provided in
non-U.S. jurisdictions, especially Europe and the Cayman Islands. Sales of
European-based services were 24.7% higher for 2004 than for 2003.
The retirement services component recorded double-digit revenue increases for
the 2004 fourth quarter and full year. The growth resulted mainly from increased
sales of services that support defined contribution retirement plans. Sales of
these services in the 2004 fourth quarter were nearly double the amount for the
year-ago fourth quarter, and full-year 2004 sales were 18.0% higher than for
2003.
Most CCS fees are priced according to the complexity and duration of the service
provided. The portion of CCS revenue based on asset valuations was approximately
24%
10
for the 2004 fourth quarter and 25% for the full year. The corresponding
levels for 2003 were 21% and 22%, respectively.
CCS generated 11% of the company's 2004 pretax profits, versus 15% in 2003. The
2004 profitability reflected expense increases, as CCS added sales and support
staff and opened an office in Dublin, Ireland.
MANAGED ASSETS AT CRAMER ROSENTHAL McGLYNN REACH NEW RECORD HIGH
Assets under management reached $6.9 billion at value-style affiliate money
manager Cramer Rosenthal McGlynn (CRM) at year-end 2004. This was $2.2 billion
higher than at the end of 2003, and $1.1 billion more than at September 30,
2004. Approximately half the increase reflected additional business, and half
was due to asset appreciation.
Income from Wilmington Trust's investment in CRM was $3.9 million for the 2004
fourth quarter, which was nearly twice as much as for the year-ago fourth
quarter, and 56.0% more than for the 2004 third quarter. For the full-year 2004,
revenue from CRM totaled $10.9 million, which was more than double the 2003
amount.
ROXBURY CAPITAL MANAGEMENT RESULTS CONTINUE TO IMPROVE
Growth-style affiliate money manager Roxbury Capital Management (RCM) continued
to be profitable, manage expenses, and benefit from the popularity of its small-
and mid-capitalization products, which generate higher fees than other
investment products.
Income from Wilmington Trust's investment in RCM was $0.9 million for the 2004
fourth quarter. In comparison, no income from this investment was recorded for
the year-ago fourth quarter, when RCM reported break-even results. For the
full-year 2004, income from RCM totaled $1.6 million, opposite a loss of $2.3
million for 2003.
11
RCM's managed assets at year-end 2004 were $3.1 billion, relatively unchanged
from the year-end 2003 and third quarter 2004 levels. The increases in revenue
opposite flat levels of managed assets reflected RCM's continued efforts to
reduce expenses and improve efficiency.
SECURITIES LOSSES REFLECT OTHER-THAN-TEMPORARY IMPAIRMENT
A $1.6 million pre-tax, non-cash charge was recorded for the 2004
fourth quarter related to holdings in the investment portfolio of perpetual
preferred stock issued by Fannie Mae and Freddie Mac. A review of these
investments, prompted by regulatory scrutiny of accounting practices at these
institutions, determined that their impairment was other-than-temporary in
accordance with generally accepted accounting principles. The non-cash charge
resulted in net securities losses of $1.1 million for the 2004 fourth quarter.
Absent the non-cash charge, earnings per share would have been $0.01 higher for
the 2004 fourth quarter and full year. At December 31, 2004, the market value
of Fannie Mae and Freddie Mac perpetual preferred stock in the $1.8 billion
investment portfolio was approximately $51 million.
HIGHER EXPENSES REFLECT BUSINESS INVESTMENTS, GTBA, AND SARBANES-OXLEY
Noninterest, or operating, expenses were $91.5 million for the 2004 fourth
quarter and $344.0 million for the full year. These were increases of 14.4% and
10.3%, respectively, from the corresponding periods in 2003.
Investments the company made in each of its businesses caused expenses to rise.
Chief among these investments were staff additions and technology improvements.
External (non-employee) costs related to complying with Section 404 of the
Sarbanes-Oxley Act added approximately $1.2 million to 2004 fourth quarter
expenses and approximately $1.9 million to full-year expenses. Operating
expenses from GTBA were approximately $1.7 million, all of which was recorded
during the 2004 fourth quarter.
12
Approximately one-half of the quarterly and full-year increases in total
noninterest expenses were associated with staffing costs. Total staffing costs,
including salaries, incentives, and benefits, were $53.2 million for the 2004
fourth quarter and $204.7 million for the full year. These were increases of
12.0% and 9.8%, respectively, from the corresponding periods in 2003.
Most of the staff-related increases were in salaries and wages which, compared
to 2003 levels, were $4.5 million higher for the 2004 fourth quarter and $10.6
million for the full year. There were 121 more full-time equivalent staff
members at the end of 2004 than at the end of 2003. Forty-two of the additional
staff members were from GTBA.
Rising health insurance and pension costs also contributed to the increases in
staff-related expenses. Compared with the 2003 levels, employment benefits
expense was 14.5% higher for the 2004 fourth quarter and 14.3% for the full
year.
Several major technology projects were completed in 2004. During the second
quarter, trust accounting was converted to a third-party system, which increased
processing expenses by approximately $1 million per quarter. A new desktop
operating system was installed company-wide, which caused depreciation expense,
recorded as part of furniture and equipment expenses, to rise. Additional staff
training was needed to complete both of these projects, which contributed to the
increases in travel, entertainment, and training expenses. The personal online
banking system was revamped completely.
CCS opened an office in Dublin, Ireland, and Regional Banking opened an office
in Bel Air, Maryland, to serve the growing client demand between Wilmington and
Baltimore. Other offices were expanded or refurbished in Delaware, New York, and
Pennsylvania. These activities contributed to the increases in furniture and
equipment and net occupancy costs.
13
The volume of process documentation and testing mandated by the Sarbanes-Oxley
Act necessitated the use of additional external consultants and resulted in
higher external auditing costs. These increases accounted for much of the rise
in consulting expenses and other noninterest expenses.
The increases in consulting expenses also reflected the higher demand in WAS for
investment consulting services, which caused payments to third-party investment
advisors to rise.
SHARE REPURCHASE ACTIVITY MINIMAL
During the 2004 fourth quarter, the company bought back 6,949 of its shares at
an average per-share price of $34.85. This brought the total number of shares
repurchased under the current 9-million-share program, which commenced in April
2002, to 634,593.
OUTLOOK FOR THE 2005 FIRST QUARTER
Commenting on the outlook for the first quarter of 2005, Cecala said:
- "We expect first quarter 2005 versus first quarter 2004 loan growth to be
in the 6% to 7% range, assuming no significant change in the Delaware
Valley economy.
- "The net interest margin should continue to improve, and exceed 3.60% for
the first quarter.
- "We remain asset sensitive, and we will benefit from increases in
short-term interest rates.
- "Opposite our continued loan growth, credit quality remains strong, and we
do not anticipate any material changes.
- "Our loan growth and credit quality indicate a provision for loan losses
of between $4 million and $5 million.
14
- "We expect Wealth Advisory revenue to be consistent with the 2004 fourth
quarter amount, assuming equity markets remain at their current levels.
This projection includes revenue from GTBA.
- "Corporate Client Services revenue should be consistent with the fourth
quarter of 2004.
- "We anticipate that revenue from the affiliate money managers will be
lower for the 2005 first quarter than it was for the 2004 fourth quarter.
The fourth quarter amounts reflected annual performance fees.
- "Expenses should be between $90 million and $92 million. This estimate
includes GTBA expenses."
CONFERENCE CALL TODAY
Management will discuss 2004 fourth quarter and full-year results, and the
outlook for 2005, in a conference call today at 10:00 a.m. (EST). To access the
call, dial (800) 475-2151. Supporting materials, financial statements, and audio
streaming will be available at www.wilmingtontrust.com.
A rebroadcast of the call will be available from 12:00 noon today until Friday,
January 28, at 5:00 p.m. (EST), by calling (877) 519-4471 and using PIN number
5506175. 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
15
regional economic conditions, changes in market interest rates, increased
competition in the company's businesses, and higher-than-expected credit losses.
These factors 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.
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, which celebrated its 100th anniversary in
2003, is the 15th largest personal trust provider in the United States, and the
leading retail and commercial bank in Delaware. Wilmington Trust and its
affiliates have offices in California, Delaware, Florida, Georgia, Maryland,
Nevada, New York, Pennsylvania, the Cayman Islands, the Channel Islands, London,
Dublin, and other affiliates in 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
# # #
16
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
HIGHLIGHTS
Three Months Ended Twelve Months Ended
---------------------------------- ----------------------------------
Dec. 31, Dec. 31, % Dec. 31, Dec. 31, %
2004 2003 Change 2004 2003 Change
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OPERATING RESULTS (IN MILLIONS)
Net interest income $ 76.4 $ 70.4 8.5 $ 294.4 $ 277.1 6.2
Provision for loan losses (4.0) (5.0) (20.0) (15.6) (21.6) (27.8)
Noninterest income 74.4 73.7 0.9 286.7 264.2 8.5
Noninterest expense 91.5 80.0 14.4 344.0 312.0 10.3
Net income 35.4 38.0 (6.8) 141.9 134.4 5.6
PER SHARE DATA
Basic net income $ 0.53 $ 0.58 (8.6) $ 2.12 $ 2.04 3.9
Diluted net income 0.52 0.57 (8.8) 2.09 2.02 3.5
Dividends paid 0.285 0.27 5.6 1.125 1.065 5.6
Book value at period end 13.43 12.18 10.3 13.43 12.18 10.3
Market value at period end 36.15 36.00 0.4 36.15 36.00 0.4
Market range:
High 36.69 36.47 0.6 38.80 36.47 6.4
Low 33.34 30.80 8.2 33.34 26.00 28.2
AVERAGE SHARES OUTSTANDING (IN THOUSANDS)
Basic 67,379 66,034 2.0 66,793 65,869 1.4
Diluted 68,238 67,093 1.7 67,755 66,536 1.8
AVERAGE BALANCE SHEET (IN MILLIONS)
Investment portfolio $ 1,850.3 $ 1,842.1 0.4 $ 1,868.5 $ 1,742.4 7.2
Loans 6,621.9 6,167.1 7.4 6,470.4 6,060.0 6.8
Earning assets 8,505.9 8,025.4 6.0 8,362.7 7,830.9 6.8
Core deposits 4,753.3 4,464.8 6.5 4,553.7 4,356.2 4.5
Stockholders' equity 894.3 790.1 13.2 850.5 769.6 10.5
STATISTICS AND RATIOS (NET INCOME ANNUALIZED)
Return on average stockholders' equity 15.75% 19.08% (17.5) 16.68% 17.46% (4.5)
Return on average assets 1.51% 1.73% (12.7) 1.56% 1.58% (1.3)
Net interest margin (taxable equivalent) 3.59% 3.52% 2.0 3.57% 3.60% (0.8)
Dividend payout ratio 53.77% 46.55% 15.5 53.07% 52.21% 1.6
Full-time equivalent headcount 2,428 2,307 3.4 2,428 2,307 3.4
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
QUARTERLY INCOME STATEMENT
Three Months Ended
------------------------------------------------------------------------------
% Change From:
-------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Prior Prior
(in millions) 2004 2004 2004 2004 2003 Quarter Year
-----------------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME
Interest income $ 106.1 $ 97.8 $ 91.6 $ 91.0 $ 90.7 8.5 17.0
Interest expense 29.7 23.8 19.4 19.2 20.3 24.8 46.3
----------------------------------------------------------------------------------------------------------
Net interest income 76.4 74.0 72.2 71.8 70.4 3.2 8.5
Provision for loan losses (4.0) (2.9) (3.2) (5.5) (5.0) 37.9 (20.0)
----------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan losses 72.4 71.1 69.0 66.3 65.4 1.8 10.7
---------------------------------------------------------
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services
Trust and investment advisory fees 29.1 27.4 26.9 26.9 26.3 6.2 10.6
Mutual fund fees 4.9 5.0 4.9 5.2 5.4 (2.0) (9.3)
Planning and other services 7.5 4.6 5.6 7.6 6.5 63.0 15.4
----------------------------------------------------------------------------------------------------------
Total Wealth Advisory Services 41.5 37.0 37.4 39.7 38.2 12.2 8.6
---------------------------------------------------------
Corporate Client Services
Capital markets services 7.8 7.1 8.3 7.8 10.0 9.9 (22.0)
Entity management services 5.8 5.8 5.4 5.5 5.5 -- 5.5
Retirement services 3.0 2.9 3.2 2.8 2.7 3.4 11.1
Cash management services 1.4 1.4 1.5 1.8 1.3 -- 7.7
----------------------------------------------------------------------------------------------------------
Total Corporate Client Services 18.0 17.2 18.4 17.9 19.5 4.7 (7.7)
---------------------------------------------------------
Cramer Rosenthal McGlynn 3.9 2.5 2.5 2.1 2.1 56.0 85.7
Roxbury Capital Management 0.9 0.3 0.2 0.2 -- 200.0 --
----------------------------------------------------------------------------------------------------------
Advisory fees 64.3 57.0 58.5 59.9 59.8 12.8 7.5
Amortization of affiliate other
intangibles (1.0) (0.6) (0.5) (0.4) (0.4) 66.7 150.0
----------------------------------------------------------------------------------------------------------
Advisory fees after amortization
of affiliate other intangibles 63.3 56.4 58.0 59.5 59.4 12.2 6.6
---------------------------------------------------------
Service charges on deposit accounts 7.4 7.8 8.1 8.2 8.6 (5.1) (14.0)
Other noninterest income 4.8 4.6 4.1 5.0 5.0 4.3 (4.0)
Securities gains (1.1) 0.6 -- -- 0.7 -- --
----------------------------------------------------------------------------------------------------------
Total noninterest income 74.4 69.4 70.2 72.7 73.7 7.2 0.9
---------------------------------------------------------
Net interest and noninterest income 146.8 140.5 139.2 139.0 139.1 4.5 5.5
---------------------------------------------------------
NONINTEREST EXPENSE
Salaries and wages 36.1 33.8 32.4 32.4 31.6 6.8 14.2
Incentives and bonuses 7.6 7.1 6.4 8.3 7.6 7.0 --
Employment benefits 9.5 10.3 10.0 10.9 8.3 (7.8) 14.5
Net occupancy 5.6 5.2 5.0 5.3 5.4 7.7 3.7
Furniture, equipment, and supplies 8.6 8.1 7.8 7.6 7.1 6.2 21.1
Other noninterest expense:
Advertising and contributions 2.3 1.9 2.8 1.6 2.0 21.1 15.0
Servicing and consulting fees 5.6 5.9 5.0 4.6 4.3 (5.1) 30.2
Travel, entertainment, and training 2.4 2.2 2.3 1.7 1.7 9.1 41.2
Originating and processing fees 2.8 2.1 2.0 2.1 2.1 33.3 33.3
Other expense 11.0 10.3 8.7 8.7 9.9 6.8 11.1
----------------------------------------------------------------------------------------------------------
Total other noninterest expense 24.1 22.4 20.8 18.7 20.0 7.6 20.5
---------------------------------------------------------
Total noninterest expense 91.5 86.9 82.4 83.2 80.0 5.3 14.4
---------------------------------------------------------
Income before income taxes and
minority interest 55.3 53.6 56.8 55.8 59.1 3.2 (6.4)
Applicable income taxes 19.9 19.2 19.9 19.8 20.8 3.6 (4.3)
----------------------------------------------------------------------------------------------------------
Net income before minority interest 35.4 34.4 36.9 36.0 38.3 2.9 (7.6)
Minority interest -- -- 0.4 0.3 0.3 -- (100.0)
---------------------------------------------------------
Net income $ 35.4 $ 34.4 $ 36.5 $ 35.7 $ 38.0 2.9 (6.8)
=========================================================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
YEAR-TO-DATE INCOME STATEMENT
Twelve Months Ended
-------------------------
Dec. 31, Dec. 31, %
(in millions) 2004 2003 Change
-----------------------------------------------------------------------------
NET INTEREST INCOME
Interest income $ 386.5 $ 368.8 4.8
Interest expense 92.1 91.7 0.4
--------------------------------------------------------------------
Net interest income 294.4 277.1 6.2
Provision for loan losses (15.6) (21.6) (27.8)
--------------------------------------------------------------------
Net interest income after provision
for loan losses 278.8 255.5 9.1
----------------
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services
Trust and investment advisory fees 110.2 97.1 13.5
Mutual fund fees 20.0 22.3 (10.3)
Planning and other services 25.4 21.0 21.0
--------------------------------------------------------------------
Total Wealth Advisory Services 155.6 140.4 10.8
----------------
Corporate Client Services
Capital markets services 31.1 31.4 (1.0)
Entity management services 22.6 20.9 8.1
Retirement services 11.8 9.8 20.4
Cash management services 6.1 5.2 17.3
--------------------------------------------------------------------
Total Corporate Client Services 71.6 67.3 6.4
----------------
Cramer Rosenthal McGlynn 10.9 5.3 105.7
Roxbury Capital Management 1.6 (2.3) --
--------------------------------------------------------------------
Advisory fees 239.7 210.7 13.8
Amortization of affiliate other intangibles (2.5) (1.7) 47.1
--------------------------------------------------------------------
Advisory fees after amortization
of affiliate other intangibles 237.2 209.0 13.5
----------------
Service charges on deposit accounts 31.4 32.3 (2.8)
Other noninterest income 18.6 22.2 (16.2)
Securities gains (0.5) 0.7 --
--------------------------------------------------------------------
Total noninterest income 286.7 264.2 8.5
----------------
Net interest and noninterest income 565.5 519.7 8.8
----------------
NONINTEREST EXPENSE
Salaries and wages 134.7 124.1 8.5
Incentives and bonuses 29.3 26.8 9.3
Employment benefits 40.7 35.6 14.3
Net occupancy 21.2 20.6 2.9
Furniture, equipment, and supplies 32.1 28.2 13.8
Other noninterest expense:
Advertising and contributions 8.5 8.0 6.3
Servicing and consulting fees 21.1 16.3 29.4
Travel, entertainment, and training 8.7 6.9 26.1
Originating and processing fees 9.0 7.8 15.4
Other expense 38.7 37.7 2.7
--------------------------------------------------------------------
Total other noninterest expense 86.0 76.7 12.1
----------------
Total noninterest expense 344.0 312.0 10.3
----------------
Income before income taxes and
minority interest 221.5 207.7 6.6
Applicable income taxes 78.7 72.2 9.0
--------------------------------------------------------------------
Net income before minority interest 142.8 135.5 5.4
Minority interest 0.9 1.1 (18.2)
--------------------------------------------------------------------
Net income $ 141.9 $ 134.4 5.6
================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
STATEMENT OF CONDITION
% Change From
---------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Prior Prior
(in millions) 2004 2004 2004 2004 2003 Quarter Year
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 248.6 $ 217.7 $ 402.6 $ 193.5 $ 210.2 14.2 18.3
------------------------------------------------------------
Federal funds sold and securities
purchased under agreements to resell 63.3 332.1 67.5 151.5 3.8 (80.9) N/M
------------------------------------------------------------
Investment securities:
U.S. Treasury and government agencies 441.3 447.1 416.9 468.1 470.0 (1.3) (6.1)
Obligations of state and political
subdivisions 12.4 12.7 14.0 14.3 16.0 (2.4) (22.5)
Preferred stock 99.9 122.9 121.4 121.2 120.1 (18.7) (16.8)
Mortgage-backed securities 929.2 957.5 950.1 1,038.2 979.0 (3.0) (5.1)
Other securities 330.5 323.8 327.8 301.5 294.3 2.1 12.3
-------------------------------------------------------------------------------------------------------------
Total investment securities 1,813.3 1,864.0 1,830.2 1,943.3 1,879.4 (2.7) (3.5)
------------------------------------------------------------
Loans:
Commercial, financial and agricultural 2,505.2 2,428.6 2,408.7 2,338.8 2,275.2 3.2 10.1
Real estate-construction 735.4 759.0 695.9 733.0 699.8 (3.1) 5.1
Mortgage-commercial 1,246.8 1,186.6 1,195.8 1,144.5 1,078.2 5.1 15.6
-------------------------------------------------------------------------------------------------------------
Total commercial loans 4,487.4 4,374.2 4,300.4 4,216.3 4,053.2 2.6 10.7
------------------------------------------------------------
Mortgage-residential 431.3 439.8 447.6 471.9 489.6 (1.9) (11.9)
Consumer 1,239.6 1,182.6 1,132.1 1,073.7 1,077.1 4.8 15.1
Secured with liquid collateral 604.7 619.4 603.1 609.1 605.4 (2.4) (0.1)
-------------------------------------------------------------------------------------------------------------
Total retail loans 2,275.6 2,241.8 2,182.8 2,154.7 2,172.1 1.5 4.8
------------------------------------------------------------
Total loans net of unearned income 6,763.0 6,616.0 6,483.2 6,371.0 6,225.3 2.2 8.6
Reserve for loan losses (89.7) (91.3) (92.5) (91.2) (89.9) (1.8) (0.2)
-------------------------------------------------------------------------------------------------------------
Net loans 6,673.3 6,524.7 6,390.7 6,279.8 6,135.4 2.3 8.8
------------------------------------------------------------
Premises and equipment 150.3 151.5 152.5 151.4 152.3 (0.8) (1.3)
Goodwill 337.0 325.6 268.7 256.0 243.2 3.5 38.6
Other intangibles 43.8 34.6 28.7 23.6 24.0 26.6 82.5
Other assets 180.6 180.7 148.7 171.3 171.9 (0.1) 5.1
-------------------------------------------------------------------------------------------------------------
Total assets $ 9,510.2 $ 9,630.9 $ 9,289.6 $ 9,170.4 $ 8,820.2 (1.3) 7.8
============================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 1,118.8 $ 1,167.5 $ 1,207.2 $ 1,054.6 $ 1,025.5 (4.2) 9.1
Interest-bearing:
Savings 355.5 358.1 373.4 379.0 369.0 (0.7) (3.7)
Interest-bearing demand 2,442.5 2,342.4 2,296.5 2,275.4 2,364.1 4.3 3.3
Certificates under $100,000 765.4 762.3 762.7 769.3 788.3 0.4 (2.9)
Local certificates $100,000 and over 305.4 181.1 155.5 137.6 130.3 68.6 134.4
-------------------------------------------------------------------------------------------------------------
Total core deposits 4,987.6 4,811.4 4,795.3 4,615.9 4,677.2 3.7 6.6
National certificates $100,000 and over 1,884.3 2,177.9 1,627.0 2,243.0 1,900.0 (13.5) (0.8)
-------------------------------------------------------------------------------------------------------------
Total deposits 6,871.9 6,989.3 6,422.3 6,858.9 6,577.2 (1.7) 4.5
------------------------------------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,120.2 1,111.6 1,434.9 885.5 828.5 0.8 35.2
U.S. Treasury demand 37.1 78.6 64.1 18.6 48.3 (52.8) (23.2)
-------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,157.3 1,190.2 1,499.0 904.1 876.8 (2.8) 32.0
------------------------------------------------------------
Other liabilities 167.0 150.2 142.5 152.0 158.1 11.2 5.6
Long-term debt 408.6 410.7 398.0 418.6 407.1 (0.5) 0.4
-------------------------------------------------------------------------------------------------------------
Total liabilities 8,604.8 8,740.4 8,461.8 8,333.6 8,019.2 (1.6) 7.3
------------------------------------------------------------
Minority interest 0.1 -- 1.4 1.0 0.2 -- (50.0)
Stockholders' equity 905.3 890.5 826.4 835.8 800.8 1.7 13.0
-------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders'
equity $ 9,510.2 $ 9,630.9 $ 9,289.6 $ 9,170.4 $ 8,820.2 (1.3) 7.8
============================================================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
AVERAGE STATEMENT OF CONDITION
2004 2004 2004 2004 2003 % Change From
----------------
Fourth Third Second First Fourth Prior Prior
(in millions) Quarter Quarter Quarter Quarter Quarter Quarter Year
--------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 224.9 $ 226.0 $ 203.8 $ 193.9 $ 200.8 (0.5) 12.0
----------------------------------------------------------
Federal funds sold and securities
purchased under agreements to resell 33.7 28.5 16.3 16.8 16.2 18.2 108.0
----------------------------------------------------------
Investment securities:
U.S. Treasury and government agencies 459.7 449.6 430.0 465.3 488.0 2.2 (5.8)
Obligations of state and political
subdivisions 12.5 12.7 14.2 14.7 16.1 (1.6) (22.4)
Preferred stock 122.5 121.2 119.5 120.3 118.9 1.1 3.0
Mortgage-backed securities 936.5 960.4 989.4 1,008.8 947.2 (2.5) (1.1)
Other securities 319.1 322.2 305.9 289.4 271.9 (1.0) 17.4
------------------------------------------------------------------------------------------------------------
Total investment securities 1,850.3 1,866.1 1,859.0 1,898.5 1,842.1 (0.8) 0.4
----------------------------------------------------------
Loans:
Commercial, financial and agricultural 2,407.3 2,403.3 2,361.1 2,325.2 2,229.1 0.2 8.0
Real estate-construction 749.1 718.1 735.2 725.0 687.5 4.3 9.0
Mortgage-commercial 1,215.0 1,186.4 1,169.2 1,103.1 1,073.6 2.4 13.2
------------------------------------------------------------------------------------------------------------
Total commercial loans 4,371.4 4,307.8 4,265.5 4,153.3 3,990.2 1.5 9.6
----------------------------------------------------------
Mortgage-residential 434.3 440.2 459.3 481.7 515.0 (1.3) (15.7)
Consumer 1,202.4 1,164.1 1,097.6 1,071.1 1,060.2 3.3 13.4
Secured with liquid collateral 613.8 616.8 597.6 602.6 601.7 (0.5) 2.0
------------------------------------------------------------------------------------------------------------
Total retail loans 2,250.5 2,221.1 2,154.5 2,155.4 2,176.9 1.3 3.4
----------------------------------------------------------
Total loans net of unearned income 6,621.9 6,528.9 6,420.0 6,308.7 6,167.1 1.4 7.4
Reserve for loan losses (89.7) (92.3) (90.0) (89.1) (90.2) (2.8) (0.6)
------------------------------------------------------------------------------------------------------------
Net loans 6,532.2 6,436.6 6,330.0 6,219.6 6,076.9 1.5 7.5
----------------------------------------------------------
Premises and equipment 151.4 152.9 151.9 151.9 151.9 (1.0) (0.3)
Goodwill 337.7 325.4 256.1 243.2 242.8 3.8 39.1
Other intangibles 41.8 35.1 23.5 23.7 24.1 19.1 73.4
Other assets 174.9 159.6 159.4 167.5 171.0 9.6 2.3
------------------------------------------------------------------------------------------------------------
Total assets $ 9,346.9 $ 9,230.2 $ 9,000.0 $ 8,915.1 $ 8,725.8 1.3 7.1
==========================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 1,016.6 $ 959.7 $ 890.6 $ 842.0 $ 868.2 5.9 17.1
Interest-bearing:
Savings 356.6 368.4 379.5 372.1 368.2 (3.2) (3.2)
Interest-bearing demand 2,360.3 2,297.1 2,319.4 2,267.0 2,298.1 2.8 2.7
Certificates under $100,000 767.2 763.9 762.7 779.3 794.8 0.4 (3.5)
Local certificates $100,000 and over 252.6 189.0 133.5 134.8 135.5 33.7 86.4
------------------------------------------------------------------------------------------------------------
Total core deposits 4,753.3 4,578.1 4,485.7 4,395.2 4,464.8 3.8 6.5
National certificates $100,000 and over 2,017.3 1,937.1 1,980.9 2,223.9 1,927.4 4.1 4.7
------------------------------------------------------------------------------------------------------------
Total deposits 6,770.6 6,515.2 6,466.6 6,619.1 6,392.2 3.9 5.9
----------------------------------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,103.3 1,289.8 1,139.5 893.0 973.6 (14.5) 13.3
U.S. Treasury demand 10.0 3.8 12.4 11.8 9.8 163.2 2.0
------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,113.3 1,293.6 1,151.9 904.8 983.4 (13.9) 13.2
----------------------------------------------------------
Other liabilities 158.7 147.0 151.3 168.3 153.8 8.0 3.2
Long-term debt 409.9 403.2 405.3 410.8 406.1 1.7 0.9
------------------------------------------------------------------------------------------------------------
Total liabilities 8,452.5 8,359.0 8,175.1 8,103.0 7,935.5 1.1 6.5
----------------------------------------------------------
Minority interest 0.1 -- 1.0 0.3 0.2 -- (50.0)
Stockholders' equity 894.3 871.2 823.9 811.8 790.1 2.7 13.2
------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders'
equity $ 9,346.9 $ 9,230.2 $ 9,000.0 $ 8,915.1 $ 8,725.8 1.3 7.1
==========================================================
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
YIELDS AND RATES
2004 2004 2004 2004 2003
Fourth Third Second First Fourth
YIELDS/RATES (TAX-EQUIVALENT BASIS) Quarter Quarter Quarter Quarter Quarter
----------------------------------------------------------------------------------------------------------------
EARNING ASSETS:
FEDERAL FUNDS SOLD AND SECURITIES
PURCHASED UNDER AGREEMENTS TO RESELL 1.94% 1.48% 1.09% 1.01% 1.09%
U.S. Treasury and government agencies 3.62 3.53 3.50 3.44 3.32
Obligations of state and political subdivisions 8.80 8.75 8.71 8.55 9.04
Preferred stock 7.40 7.42 7.42 7.42 7.30
Mortgage-backed securities 4.06 4.08 3.94 4.12 4.13
Other securities 3.69 3.04 3.07 2.79 2.87
TOTAL INVESTMENT SECURITIES 4.14 4.02 3.96 3.99 3.98
Commercial, financial and agricultural 5.02 4.51 4.20 4.16 4.18
Real estate-construction 5.38 4.93 4.46 4.42 4.37
Mortgage-commercial 5.38 4.85 4.76 4.82 4.90
TOTAL COMMERCIAL LOANS 5.18 4.67 4.40 4.38 4.41
Mortgage-residential 5.97 6.02 6.05 6.08 6.40
Consumer 5.98 5.84 5.92 6.04 6.15
Secured with liquid collateral 3.39 2.93 2.49 2.51 2.51
TOTAL RETAIL LOANS 5.27 5.07 5.00 5.06 5.20
TOTAL LOANS 5.21 4.81 4.60 4.61 4.69
TOTAL EARNING ASSETS 4.97 4.62 4.45 4.46 4.52
FUNDS USED TO SUPPORT EARNING ASSETS:
Savings 0.26 0.21 0.13 0.13 0.13
Interest-bearing demand 0.74 0.52 0.37 0.37 0.37
Certificates under $100,000 2.07 1.95 1.95 2.12 2.31
Local certificates $100,000 and over 2.05 1.40 1.54 1.44 1.49
CORE INTEREST-BEARING DEPOSITS 1.05 0.84 0.72 0.77 0.82
National certificates $100,000 and over 1.92 1.48 1.16 1.13 1.20
TOTAL INTEREST-BEARING DEPOSITS 1.36 1.06 0.88 0.91 0.95
Federal funds purchased and securities sold
under agreements to repurchase 2.05 1.62 1.35 1.37 1.38
U.S. Treasury demand 1.64 1.54 0.80 0.77 0.80
TOTAL SHORT-TERM BORROWINGS 2.04 1.62 1.34 1.37 1.37
Long-term debt 3.97 3.44 3.21 2.81 3.45
TOTAL INTEREST-BEARING LIABILITIES 1.61 1.29 1.08 1.08 1.16
TOTAL FUNDS USED TO SUPPORT EARNING ASSETS 1.38 1.11 0.93 0.93 1.00
NET INTEREST MARGIN (TAX-EQUIVALENT BASIS) 3.59 3.51 3.52 3.53 3.52
YEAR-TO-DATE NET INTEREST MARGIN 3.57 3.52 3.52 3.53 3.60
Prime rate 4.94 4.42 4.00 4.00 4.00
Tax-equivalent net interest income (in millions) $ 77.5 $ 75.0 $ 73.4 $ 72.9 $ 71.6
AVERAGE EARNING ASSETS 8,505.9 8,423.5 8,295.3 8,224.0 8,025.4
Average rates are calculated using average balances based on historical cost and
do not reflect market valuation adjustments.
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
SUPPLEMENTAL INFORMATION
Three Months Ended
--------------------------------------------------------------------------
% Change From:
--------------
Prior
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Prior Year
2004 2004 2004 2004 2003 Quarter Quarter
---------------------------------------------------------------------------------------------------------------------------------
NET INCOME
Net income per share
Basic $ 0.53 $ 0.51 $ 0.55 $ 0.54 $ 0.58 3.9 (8.6)
Diluted 0.52 0.50 0.54 0.53 0.57 4.0 (8.8)
Weighted average shares outstanding (in thousands)
Basic 67,379 67,321 66,309 66,160 66,034
Diluted 68,238 68,468 67,454 67,493 67,093
Net income as a percentage of:
Average assets 1.51% 1.48% 1.63% 1.61% 1.73%
Average stockholders' equity 15.75 15.71 17.82 17.69 19.08
ASSETS UNDER MANAGEMENT * (IN BILLIONS)
Wilmington Trust $ 26.5 $ 24.6 $ 24.3 $ 24.3 $ 24.4 7.7 8.6
Roxbury Capital Management 3.1 2.9 3.2 3.4 3.2 6.9 (3.1)
Cramer Rosenthal McGlynn 6.9 5.8 5.5 5.1 4.7 19.0 46.8
----------------------------------------------------------------------------------------------------------------
Combined assets under management $ 36.5 $ 33.3 $ 33.0 $ 32.8 $ 32.3 9.6 13.0
=========================================================
* Assets under management include estimates
for values associated with certain
assets that lack readily ascertainable
values, such as limited partnership
interests.
Full-time equivalent headcount 2,386 2,375 2,356 2,340 2,307
CAPITAL (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
Average stockholders' equity $ 894.3 $ 871.2 $ 823.9 $ 811.8 $ 790.1 2.7 13.2
Period-end primary capital 995.0 981.8 918.9 927.0 890.7 1.3 11.7
Per share:
Book value 13.43 13.22 12.45 12.59 12.18 1.6 10.3
Quarterly dividends declared 0.285 0.285 0.285 0.27 0.27 -- 5.6
Year-to-date dividends declared 1.125 0.84 0.555 0.27 1.065
Average stockholders' equity to assets 9.57% 9.44% 9.15% 9.11% 9.05%
Total risk-based capital ratio 11.68 11.97 12.55 12.75 12.45
Tier 1 risk-based capital ratio 6.99 7.17 7.53 7.66 7.46
Tier 1 leverage capital ratio 5.97 6.04 6.30 6.39 6.34
CREDIT QUALITY (IN MILLIONS)
Period-end reserve for loan losses $ 89.7 $ 91.3 $ 92.5 $ 91.2 $ 89.9
Period-end non-performing assets:
Nonaccrual 56.4* 60.7 41.8 40.6 45.4
OREO 0.2 0.2 0.2 1.1 1.4
Renegotiated loans 5.2 -- -- -- --
Period-end past due 90 days 5.5 7.6 5.0 6.2 5.6
Gross charge-offs 6.4 5.8 3.5 5.4 7.3
Recoveries 0.8 1.7 1.6 1.2 0.9
Net charge-offs 5.6 4.1 1.9 4.2 6.4
Year-to-date net charge-offs 15.8 10.2 6.2 4.2 16.9
Ratios:
Period-end reserve to loans 1.33% 1.38% 1.43% 1.43% 1.44%
Period-end non-performing assets to loans 0.91* 0.92 0.65 0.65 0.75
Period-end loans past due 90 days to total loans 0.08 0.11 0.08 0.10 0.09
Net charge-offs to average loans 0.08 0.06 0.03 0.07 0.10
* January 18, 2005 paydown of $11.1 million reduced
nonaccruing to $45.3 million and the ratio to
75 basis points
INTERNAL RISK RATING
Pass 96.58% 96.74% 96.24% 95.90% 95.83%
Watchlisted 1.82 1.81 2.19 2.64 2.58
Substandard 1.35 1.21 1.31 1.21 1.27
Doubtful 0.25 0.24 0.26 0.25 0.32
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
QUARTERLY BUSINESS SEGMENT REPORT
Three Months Ended
--------------------------------------------------------------------------------------------------------------
Dec. 31, Sept. 31, June 30, Mar. 31, Dec. 31,
(in millions) 2004 2004 2004 2004 2003
-------- --------- -------- -------- --------
REGIONAL BANKING
Net interest income $ 70.4 $ 68.1 $ 65.0 $ 63.8 $ 62.4
Provision for loan losses (3.9) (3.2) (3.1) (5.3) (5.1)
Noninterest income 11.0 13.1 12.1 13.3 14.4
Noninterest expense 37.0 36.1 34.5 33.9 35.2
-------------------------------------------------------------------------------------------------------------
Income before taxes & minority interest 40.5 41.9 39.5 37.9 36.5
-----------------------------------------------------
WEALTH ADVISORY SERVICES
Net interest income $ 5.0 $ 5.0 $ 6.0 $ 6.8 $ 6.0
Provision for loan losses (0.1) 0.3 (0.1) (0.2) 0.1
Noninterest income 38.4 34.4 34.9 36.8 35.6
Noninterest expense 36.9 33.2 32.1 33.5 29.3
-------------------------------------------------------------------------------------------------------------
Income before taxes & minority interest 6.4 6.5 8.7 9.9 12.4
-----------------------------------------------------
CORPORATE CLIENT SERVICES
Net interest income $ 2.8 $ 2.4 $ 2.3 $ 2.6 $ 3.2
Provision for loan losses - - - - -
Noninterest income 20.4 19.4 20.7 20.3 21.7
Noninterest expense 17.6 17.6 15.8 15.8 15.5
-------------------------------------------------------------------------------------------------------------
Income before taxes & minority interest 5.6 4.2 7.2 7.1 9.4
-----------------------------------------------------
AFFILIATE MANAGERS *
Net interest income $ (1.8) $ (1.5) $ (1.1) $ (1.4) $ (1.2)
Provision for loan losses - - - - -
Noninterest income 4.6 2.5 2.5 2.3 2.0
Noninterest expense - - - - -
-------------------------------------------------------------------------------------------------------------
Income before taxes & minority interest 2.8 1.0 1.4 0.9 0.8
-----------------------------------------------------
TOTAL WILMINGTON TRUST CORPORATION
Net interest income $ 76.4 $ 74.0 $ 72.2 $ 71.8 $ 70.4
Provision for loan losses (4.0) (2.9) (3.2) (5.5) (5.0)
Noninterest income 74.4 69.4 70.2 72.7 73.7
Noninterest expense 91.5 86.9 82.4 83.2 80.0
-----------------------------------------------------
Income before taxes & minority interest $ 55.3 $ 53.6 $ 56.8 $ 55.8 $ 59.1
=====================================================
* Affiliate managers comprise Cramer Rosenthal McGlynn and Roxbury Capital
Management.
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2004
YEAR-TO-DATE BUSINESS SEGMENT REPORT
Twelve Months Ended
----------------------------------------
Dec. 31, Dec. 31, $ %
(in millions) 2004 2003 Change Change
-----------------------------------------------------------------------------------------------
REGIONAL BANKING
Net interest income $ 267.3 $ 247.2 $ 20.1 8.1%
Provision for loan losses (15.5) (20.7) (5.2) (25.1)
Noninterest income 49.5 55.5 (6.0) (10.8)
Noninterest expense 141.5 138.2 3.3 2.4
---------------------------------------------------------------------------------------------
Income before taxes & minority interest 159.8 143.8 16.0 11.1
WEALTH ADVISORY SERVICES
Net interest income $ 22.8 $ 24.9 $ (2.1) (8.4)%
Provision for loan losses (0.1) (0.9) (0.8) (88.9)
Noninterest income 144.5 129.9 14.6 11.2
Noninterest expense 135.7 116.4 19.3 16.6
---------------------------------------------------------------------------------------------
Income before taxes & minority interest 31.5 37.5 (6.0) (16.0)
CORPORATE CLIENT SERVICES
Net interest income $ 10.1 $ 11.0 $ (0.9) (8.2)%
Provision for loan losses - - - -
Noninterest income 80.8 76.5 4.3 5.6
Noninterest expense 66.8 57.4 9.4 16.4
---------------------------------------------------------------------------------------------
Income before taxes & minority interest 24.1 30.1 (6.0) (19.9)
AFFILIATE MANAGERS *
Net interest income $ (5.8) $ (6.0) $ 0.2 (3.3)%
Provision for loan losses - - - -
Noninterest income 11.9 2.3 9.6 417.4
Noninterest expense - - - -
---------------------------------------------------------------------------------------------
Income before taxes & minority interest 6.1 (3.7) 9.8 -
TOTAL WILMINGTON TRUST CORPORATION
Net interest income $ 294.4 $ 277.1 $ 17.3 6.2%
Provision for loan losses (15.6) (21.6) (6.0) (27.8)
Noninterest income 286.7 264.2 22.5 8.5
Noninterest expense 344.0 312.0 32.0 10.3
---------------------------------------------------------------------------------------------
Income before taxes & minority interest $ 221.5 $ 207.7 $ 13.8 6.6
========
* Affiliate managers comprise Cramer Rosenthal McGlynn and Roxbury Capital
Management.