Wilmington Trust Announces Third Quarter Earnings

Wilmington Trust Corporation (NYSE:WL) reported today that net income for the 2007 third quarter was $46.2 million and earnings per share (on a diluted basis) were $0.67 per share. "The Wealth Advisory and Corporate Client Services businesses each recorded double-digit increases in revenue, our net interest margin remained stable at 3.73%, and we continued to grow loan balances, although the pace of loan growth slowed,” said Ted T. Cecala, Wilmington Trust’s chairman and chief executive officer. "These achievements were offset by an increase in the loan loss provision to a level more in line with what we have experienced historically, and lower revenue from affiliate manager Cramer Rosenthal McGlynn, where volatility in the equity markets reduced hedge fund performance fees.” For the year-ago third quarter, net income was $5.2 million and earnings per share (diluted) were $0.07 per share. These amounts reflected a non-cash impairment write-down of $72.3 million recorded in the 2006 third quarter against the valuation of affiliate money manager Roxbury Capital Management (RCM). Absent this non-cash write-down, net income for the 2006 third quarter would have been $46.9 million and earnings per share (diluted) would have been $0.67 per share. This release contains and discusses amounts that exclude the effects of the non-cash write-down and presents results on an operating basis. Management believes that operating results (those that exclude the effects of the non-cash write-down) provide a more relevant and comparative basis on which to evaluate the company’s performance. The financial statements in this release contain comparisons of results with and without the non-cash impairment write-down. CASH DIVIDEND DECLARED At its meeting yesterday, the Board of Directors declared a regular quarterly cash dividend of $0.335 per share. This amount reflects the 6% increase the Board approved in April 2007, which marked the 26th consecutive year the company has raised its cash dividend. The quarterly dividend will be paid on November 15, 2007, to stockholders of record on November 1, 2007. THE REGIONAL BANKING BUSINESS Loan balances in total rose for the 18th consecutive quarter on an average-balance basis. Commercial and consumer loan balances increased from their prior quarter and year-ago levels on both a period-end and average-balance basis, and the Regional Banking business continued to benefit from the broadly diversified and stable economy in the Delaware Valley region. Unemployment rates for August 2007 (the most recent data available) for Delaware, Pennsylvania, and New Jersey remained below the U.S. national average. Economic reports from the Federal Reserve Bank of Philadelphia projected strong growth in Delaware’s economy into the second quarter of 2008, moderate growth in New Jersey’s economy, and some contraction in Pennsylvania’s economy in coming months. Loans (dollars in billions, on average)   2007 Q3   2007 Q2   2006 Q3 Total loans outstanding   $ 8.26     $ 8.16     $ 7.76                 Delaware market loans   $ 5.97     $ 5.89     $ 5.65   Delaware market loans as a % of total loans     72 %     72 %     73 %               Pennsylvania market loans   $ 1.83     $ 1.83     $ 1.74   Pennsylvania market loans as a % of total loans     22 %     22 %     22 %               Other market loans   $ 0.46     $ 0.44     $ 0.37   Other market loans as a % of total loans     6 %     6 %     5 % On a percentage basis, the composition of the loan portfolio remained well diversified and relatively unchanged from prior periods. Loan portfolio composition   9/30/07   6/30/07   9/30/06 Commercial, financial, and agricultural (C&I) loans   30 %   30 %   30 % Commercial real estate/construction (CRE) loans   21 %   21 %   21 % Commercial mortgage loans   16 %   17 %   16 % Residential mortgage loans   7 %   7 %   7 % Consumer loans   19 %   18 %   19 % Loans secured with liquid collateral   7 %   7 %   7 % Loans secured with liquid collateral are associated mainly with Wealth Advisory Services clients. Management does not consider changes in the balances of these loans to be indicative of trends in the Regional Banking business. Commercial loans On a period-end basis, most of the linked-quarter and year-over-year growth in the commercial portfolio was in commercial, financial, and agricultural (C&I) loans. On an average-balance basis, commercial real estate/construction (CRE) loans accounted for most of the growth. Commercial loans (in millions, on average)   2007 Q3   2007 Q2   2006 Q3 Commercial, financial, and agricultural (C&I) loans   $ 2,454.9     $ 2,500.1     $ 2,407.7   Commercial real estate/construction (CRE) loans     1,769.2       1,696.7       1,588.7   Commercial mortgage loans     1,387.3       1,376.9       1,238.5   Total commercial loans   $ 5,611.4     $ 5,573.7     $ 5,234.9                 % of commercial loans from Delaware market     70 %     70 %     70 % % of commercial loans from Pennsylvania market     29 %     29 %     29 % % of commercial loans from other markets     1 %     1 %     1 % Compared to the 2007 second quarter, C&I loan balances were lower, on average, but higher on a period-end basis because most of the increase in outstandings occurred toward the end of the 2007 third quarter. Period-end C&I loans were 2% higher on a linked-quarter basis and 6% higher year over year. The C&I outstandings recorded during the 2007 third quarter were spread evenly among clients in Delaware, Maryland, and Pennsylvania. These loans were to clients in a variety of retail, service, contracting, and transportation businesses, and the majority were for working capital. CRE loans were $12.9 million higher than for the 2007 second quarter on a period-end basis, but $72.5 million higher on average, because much of the second quarter growth occurred toward the end of that quarter, and because there were several large pay downs in the 2007 third quarter. Of the CRE outstandings recorded during the 2007 third quarter: Approximately 77% was for projects in Delaware; Approximately 17% was for projects in Pennsylvania; and Approximately 6% was for projects in New Jersey. Approximately 30% of these loans were for single-family housing developments, primarily in Delaware. The remainder were for a variety of retail, office, warehouse, land development, and other projects. Retail loans Retail loan balances for the 2007 third quarter, on average, were higher than for prior periods, as all three categories recorded balance increases. Consumer loans continued to account for more than half of total retail loans. Consumer loans (in millions, on average)   2007 Q3   2007 Q2   2006 Q3 Home equity lines of credit   $ 298.2     $ 301.6     $ 319.4   Indirect loans     715.8       687.8       657.3   Credit card loans     64.8       64.0       61.0   Other consumer loans     454.2       450.5       432.8   Total consumer loans   $ 1,533.0     $ 1,503.9     $ 1,470.5                       % of consumer loans from Delaware market     76 %     77 %     79 % % of consumer loans from Pennsylvania market     7 %     7 %     6 % % of consumer loans from other markets     17 %     16 %     15 % In the consumer portfolio, all of the linked-quarter and year-over-year growth was in indirect lending. Most of the indirect borrowers obtained these loans through automobile dealers and most of the indirect loans were for late-model used cars. Growth in the category of loans recorded as "other” consumer loans was due mainly to increases in home equity loans, most of which have fixed rates. Clients continued to prefer these fixed rate products instead of home equity lines of credit, most of which have floating rates. In the residential mortgage portfolio, balances were higher than for prior periods because prepayment and refinancing volumes decreased, and because originations of mortgages that qualify as low income mortgages under the Community Reinvestment Act (CRA) increased. These increases corresponded with housing growth in CRA-eligible communities in Delaware. The company retains CRA mortgages, but sells most other newly originated fixed rate residential mortgages into the secondary market and does not record those loans on its balance sheet. Residential mortgages   2007 Q3   2007 Q2   2006 Q3 Balances (in millions, on average)   $ 564.4     $ 553.9     $ 507.8   Origination volumes (in millions)   $ 46.3     $ 58.9     $ 58.6   Number of originations     213       244       239                 Fixed vs. floating rates   At 9/30/07   At 6/30/07   At 9/30/06 % of fixed-rate residential mortgages     78 %     78 %     76 % Wilmington Trust does not engage in subprime residential mortgage lending and there are no subprime loans in the company’s residential mortgage portfolio. Core deposits Continued growth in savings deposits helped offset declines in other core deposit categories. Most of the increases in savings deposits were associated with WTDirect, the company’s Internet-only delivery channel. Core deposits (in millions, on average)   2007 Q3   2007 Q2   2006 Q3 Noninterest-bearing demand   $ 714.9     $ 702.6     $ 737.2   Savings     540.9       463.4       304.1   Interest-bearing demand     2,262.5       2,312.5       2,374.1   CDs < $100,000     1,007.7       1,014.5       988.1   Local CDs = $100,000     376.2       427.2       546.5   Total core deposits   $ 4,902.2     $ 4,920.2     $ 4,950.0                       From Delaware clients     89 %     91 %     94 % From Pennsylvania clients     5 %     5 %     5 % From other markets     6 %     4 %     1 % Consumer banking clients, most of whom are in Delaware, continued to account for the majority of local CDs in amounts of $100,000 and more (local CDs). Management includes local CDs in core deposits because they reflect client deposits, not wholesale or brokered deposits. Commercial banking clients and municipalities in the Delaware Valley region also use these CDs to generate returns on excess cash. Local CDs = $100,000 by client category   At 9/30/07   At 6/30/07   At 9/30/06 Consumer banking clients   64 %   72 %   73 % DE commercial banking clients   11 %   9 %   10 % PA commercial banking clients   10 %   11 %   10 % Wealth Advisory Services clients   15 %   8 %   7 % Funding Core deposits, including those generated through WTDirect, continued to be the company’s primary source of funding. Sources of funding (on average)   2007 Q3   2007 Q2   2006 Q3 Core deposits   53 %   54 %   56 % National funding   32 %   32 %   32 % Short-term borrowings   15 %   14 %   12 %               Loan-to-deposit ratio   1.05 %   1.03 %   0.99 % The company uses a diversified mix of funding to support the Regional Banking business, which makes loans in a four-state region but gathers retail deposits primarily in Delaware. Management believes that purchasing national funds is a cost-effective way to add deposits without incurring the expense of building and operating a large-scale expansion of the branch office network outside Delaware. As noted in the net interest margin discussion in this release, the repricing characteristics of national funding are matched closely with the repricing characteristics of floating rate loans. Credit quality The Delaware Valley economy remained stable overall and net charge-offs remained at the low end of historical levels. Nonperforming assets increased and management downgraded the risk ratings of several loans, which increased the provision and reserve for loan losses. Provision for loan losses   2007 Q3   2007 Q2   2006 Q3 Provision for loan losses (in millions)   $ 8.9     $ 6.5     $ 6.6                 Reserve for loan losses   At 9/30/07   At 6/30/07   At 9/30/06 Reserve for loan losses (in millions)   $ 101.6     $ 97.5     $ 93.6   Loan loss reserve ratio     1.22 %     1.18 %     1.20 % The downgraded loans included a variety of C&I, CRE, and commercial mortgage loans for projects throughout the Regional Banking footprint. These downgrades reduced the percentage of loans with pass ratings in the internal risk rating analysis from 97% to 96%. Net charge-offs   2007 Q3   2007 Q2   2006 Q3 Net charge-offs (in millions)   $ 4.8   $ 3.5   $ 7.3 Net charge-off ratio (basis points)   6 bps   4 bps   9 bps Year-to-date net charge-offs (in millions)   $ 11.6   $ 6.8   $ 12.6 Quarterly net charge-off ratio annualized (basis points)   24 bps   16 bps   36 bps Net charge-offs were $1.3 million more than for the 2007 second quarter, but $2.5 million less than for the year-ago third quarter. Annualized, the net charge-off ratio for the 2007 third quarter was 24 basis points. Since 1996, the annual net charge-off ratio has ranged from a low of 14 basis points for 2005 to a high of 44 basis points for 2000. Nonperforming assets (at period-end)   9/30/07   6/30/07   9/30/06 Nonaccruing loans   $ 54.1   $ 45.3   $ 32.0 Other real estate owned (OREO)   $ 0.2   $ 0.2   $ 4.8 Renegotiated loans   $ 19.2   $ 0.2     -- Loans past due 90 days   $ 17.0   $ 13.6   $ 7.7 Ratio of nonperforming assets to loans (basis points)   88 bps   55 bps   47 bps Nonaccruing loans were higher than for prior periods largely because $10.3 million in loans to the Elliott Building Group was transferred to nonaccruing status in the 2007 second quarter, after the borrower filed for bankruptcy. There was no change to the status of these loans during the 2007 third quarter. These loans are for two housing developments under construction in southern New Jersey. Both of these developments are successful and Wilmington Trust’s position is secured by first lien mortgages on each. Wilmington Trust has no exposure to the numerous other projects this builder has underway. In addition, other CRE and C&I loans were transferred to nonaccruing status during the 2007 third quarter. Approximately 66% of the linked-quarter increase was related to a residential project in Montgomery County, Pennsylvania. Other real estate owned (OREO) decreased from the year-ago third quarter because a parcel of land in New Jersey, classified as OREO since the second quarter of 2006, was sold during the second quarter of 2007. During the 2007 third quarter, approximately $19.0 million in CRE loans was renegotiated. These loans were to one Pennsylvania-based developer for a large single family and townhome development in Sussex County, Delaware. Loans past due 90 days or more were higher than for prior periods mainly because of one loan for a hotel and retail project in Ocean City, Maryland. NET INTEREST MARGIN The net interest margin for the 2007 third quarter was 3.73%, the same as for the 2007 second quarter. The margin was stable on a linked-quarter basis mainly because a 4-basis-point increase in the yield on consumer loans helped offset a 3-basis-point decrease in the yield on commercial loans. On the liability side of the equation, a 9-basis-point decline in the cost of short-term borrowings helped offset a 3-basis-point increase in the rate on core interest-bearing deposits. Net interest margin   2007 Q3   2007 Q2   2006 Q3 Net interest margin   3.73 %   3.73 %   3.85 %   2007 Q3   2007 Q3 Changes in yields and rates (in basis points)   vs. 2007 Q2   vs. 2006 Q3 Change in yield on total earning assets   0 bps   2 bps Change in rate on total funds to support earning assets   0 bps   14 bps Compared to the year-ago third quarter, the margin was 12 basis points lower. This was the result of a disparity in 2006 between loan repricing and deposit repricing. During the first six months of 2006, the Federal Open Market Committee raised short-term interest rates four times. Following those increases, most of the company’s floating rate loans had repriced by August, but core deposits continued to reprice throughout the second half of the year. In addition, core deposit rates for the year-ago third quarter did not include savings deposits from WTDirect, the Internet-only delivery channel the company launched in November 2006. As of October 19, 2007, the annual percentage yield on savings deposits made through WTDirect was 5.06% for depositors who maintain average daily balances of at least $10,000. The net interest margin benefited from the company’s funding strategy, which enables management to match the repricing characteristics of national funding closely with those of floating rate loans, as illustrated in the following table. As a percentage of total balances (at period end)   9/30/07   6/30/07   9/30/06 Loans outstanding with floating rates   71 %   72 %   75 % Percentage of floating-rate loans that are commercial loans   82 %   82 %   81 % Commercial floating rate loans repricing in = 30 days   94 %   94 %   93 % Commercial loans tied to a prime rate   60 %   61 %   62 % Commercial loans tied to the 30-day LIBOR   35 %   33 %   34 %               National CDs maturing in = 90 days   74 %   68 %   74 % Short-term borrowings maturing in = 90 days   88 %   98 %   98 % THE WEALTH ADVISORY SERVICES BUSINESS Wealth Advisory Services (WAS) revenue rose 19% from the year-ago third quarter and 5% from the 2007 second quarter. Most of the year-over-year and linked-quarter increases were in fees from trust and investment services. Fees from family office services, recorded in planning and other services, also contributed to the growth. Wealth Advisory Services revenue (in millions)   2007 Q3   2007 Q2   2006 Q3 Trust and investment advisory services   $ 40.5   $ 38.4   $ 33.0 Mutual fund fees     5.3     5.1     5.3 Planning and other services     10.3     9.9     8.8 Total Wealth Advisory Services revenue   $ 56.1   $ 53.4   $ 47.1 A combination of new business development and market appreciation caused the growth in revenue from trust and investment services, which outpaced increases in the Standard & Poor’s 500. Management considers the S&P 500 a good proxy for the equity holdings in client portfolios. Most of the linked-quarter increase in revenue from trust and investment services came from the Boston market, reflecting the acquisition of wealth management firm Bingham Legg Advisors, LLC (BLA). This acquisition was completed at the end of June 2007 and BLA assumed the Wilmington Trust name then. Fees for trust and investment services are based on the market valuations of assets in client accounts. These assets include a mix of equity, fixed income, and other types of investments. Investment mix of managed assets*   2007 Q3   2007 Q2   2006 Q3 Equities   49 %   49 %   48 % Fixed income   23 %   22 %   28 % Other   28 %   29 %   24 % * Assets managed by Wilmington Trust (including Wilmington Trust FSB, Massachusetts). Excludes affiliate money managers. THE CORPORATE CLIENT SERVICES BUSINESS Compared to the year-ago third quarter, Corporate Client Services (CCS) revenue was 12% higher and sales (new fees, annualized) were 36% higher. During the 2007 third quarter, volatility and uncertainty in the world’s capital markets limited business development opportunities. This was the primary cause of the linked-quarter decline in CCS revenue. Corporate Client Services revenue (in millions)   2007 Q3   2007 Q2   2006 Q3 Capital markets services   $ 10.2   $ 11.2   $ 8.7 Entity management services     7.4     7.4     6.8 Retirement services     3.0     3.2     2.9 Investment and cash management services     3.0     3.0     2.7 Total Corporate Client Services revenue   $ 23.6   $ 24.8   $ 21.1 Revenue from capital markets services rose 17% from the year-ago third quarter, but declined on a linked-quarter basis, mainly because of a slowdown in market demand for asset-backed securitizations (ABS). Some of the ABS transactions for which CCS provides trust and administrative services hold a blend of prime and subprime residential mortgages. For Wilmington Trust, the risk associated with the subprime market is the risk that the pace of growth in revenue will slow, which is what happened in the 2007 third quarter. The extent of the company’s involvement in these transactions is limited to its role as a service provider. Fees for these services are based on the complexity of the services provided, regardless of the underlying collateral. For the 2007 third quarter, ABS transactions backed by U.S. residential mortgages accounted for approximately 5%, or $1.2 million, of total CCS revenue. For the first nine months of 2007, the corresponding amount was 6%, or $4.3 million of total CCS revenue. Although demand for ABS services waned, sales (new fees, annualized) of capital markets services were 47% higher than for the year-ago third quarter and 10% higher than for the 2007 second quarter. Sales of services that support tender option bonds, collateralized debt obligations (CDOs), defeasance transactions, and default administration drove these increases. The company supports CDOs by implementing operational controls, fulfilling compliance reporting requirements, and performing other administrative activities as specified when appointed collateral administrator, paying agent, custodian, or trustee. The company does not issue or underwrite CDOs, establish pricing or valuations of CDO assets or liabilities, take positions in CDOs, or make loans to parties involved in CDO transactions. The company’s exposure to CDO-related risk is mitigated by the legal documents that govern CDO transactions, which clearly define and specify the nature and extent of the services to be provided. In the entity management component of the CCS business, revenue rose 9% from the year-ago third quarter. This was due mainly to increased levels of corporate governance business in Ireland and Germany, as well as the June 2007 acquisition of a Luxembourg-based service provider. These expansion initiatives helped offset a slowdown in the demand for entity management services elsewhere, and entity management revenue remained level with the second quarter as a result. AFFILIATE MONEY MANAGERS At value-style manager Cramer Rosenthal McGlynn (CRM), volatility in the equity markets during the 2007 third quarter decreased managed asset levels and reduced hedge fund performance fees on a year-to-date basis, which caused revenue from CRM to decline. Affiliate manager revenue (in millions)   2007 Q3   2007 Q2   2006 Q3 Cramer Rosenthal McGlynn   $ 4.2   $ 6.3   $ 4.6 Roxbury Capital Management   $ 0.4   $ 0.2     -- Total revenue from affiliates   $ 4.6   $ 6.5   $ 4.6               Assets under management (in millions)   At 9/30/07   At 6/30/07   At 9/30/06 Cramer Rosenthal McGlynn   $ 11,785.2   $ 11,928.7   $ 9,784.5 Roxbury Capital Management   $ 2,858.0   $ 3,005.3   $ 3,122.9 The decline in assets under management at growth-style manager Roxbury Capital Management (RCM) reflected the firm’s termination of its micro-cap and fixed income products during the second half of 2006. Wilmington Trust’s agreement with RCM includes provisions that permit some of RCM’s portfolio managers to relinquish, or put, a portion of their RCM ownership interests to Wilmington Trust. Some of these put options were exercised during the 2007 second quarter. This caused the revenue contribution from RCM to increase. NONINTEREST EXPENSES Noninterest expenses were higher than for prior periods (on an operating basis) mainly because of the expansion investments made since the end of September 2006. Expenses (dollars in millions)   2007 Q3   2007 Q2   2006 Q3 Full-time-equivalent staff members   2,590   2,574   2,520                     Salaries and wages expense   $ 44.1   $ 41.9   $ 39.5                     Stock-based compensation expense   $ 1.6   $ 1.4   $ 1.7 Total incentives and bonuses expense   $ 10.0   $ 11.4   $ 8.9                     Employment benefits expense   $ 12.7   $ 11.5   $ 11.4                     Total staffing-related expense   $ 66.8   $ 64.8   $ 59.8                     Total noninterest expenses before impairment write-down   $ 110.8   $ 106.0   $ 98.6 Non-cash impairment write-down     --     --     72.3 Total noninterest expenses   $ 110.8   $ 106.0   $ 170.9 Activities that contributed to expense growth (on an operating basis) since the year-ago third quarter included: The acquisition in June 2007 of a wealth management firm in Boston, which added 26 staff members; The acquisition in June 2007 of a corporate services provider in Luxembourg, which added 8 staff members; Staff additions in all three business lines; The addition of services to support CDO transactions; and The November 2006 launch of WTDirect. The $13.8 million recorded as "other” expense for the 2007 third quarter included approximately $2.3 million in shares tax that management does not expect to incur again in 2007. Accounting rules require this type of expense to be recorded in other expenses because it is not an income tax. This expense resulted from a review of state tax obligations. An agreement with state taxing authorities during the 2007 third quarter reduced a reserve for state income taxes and resulted in a credit to income tax expense of approximately $2.7 million. Management does not expect this to occur again in 2007. Absent this credit, the effective tax rate for the 2007 third quarter would have been 37.18%. EFFICIENCY RATIOS Efficiency was slightly lower than for previous periods (on an operating basis) because expansion investments in all three businesses caused expenses to increase. These investments included staff additions; the Wealth Advisory Services acquisition in June 2007 of a wealth management firm in Boston; and Corporate Client Services expansion in Europe and into the market for collateralized debt obligation services, plus the June 2007 acquisition of a small service provider in Luxembourg. On a reported basis, the efficiency ratio for the year-ago third quarter was high because the non-cash impairment write-down added $72.3 million to expenses. Efficiency ratios   2007 Q3   2007 Q2   2006 Q3 Regional Banking   42.22 %   39.88 %   39.72 % Wealth Advisory Services   79.05 %   78.50 %   78.60 % Corporate Client Services   75.09 %   70.85 %   69.29 % Wilmington Trust consolidated, absent non-cash write-down   58.35 %   55.58 %   55.18 % Wilmington Trust consolidated   58.35 %   55.58 %   95.64 % In general, lower efficiency ratios indicate higher profitability. INVESTMENT SECURITIES PORTFOLIO Balances in the investment securities portfolio were lower than their year-ago levels because there was less need to invest in short-term securities in order to collateralize client accounts that use short-term cash sweeps. Compared to prior periods, the composition of the portfolio was relatively unchanged on a percentage basis. Investment securities portfolio   At 9/30/07   At 6/30/07   At 9/30/06 Balances (in millions)   $ 1,851.4     $ 1,814.0     $ 1,982.3   As a percentage of earning assets     18 %     18 %     20 % As a percentage of total assets     17 %     16 %     19 % Average life (in years)     4.66       5.08       5.39   Duration     1.85       2.19       2.39   Percentage invested in fixed income instruments     81 %     80 %     80 % Recent shifts in market interest rates and the yield curve caused the duration and expected average life to decline in anticipation of faster prepayments of mortgage-backed securities. All of the mortgage-backed securities in the portfolio are AAA-rated instruments issued by U.S. government agencies for which the underlying collateral is residential mortgages. There are no subprime mortgages in this underlying collateral. SHARE REPURCHASES During the 2007 third quarter, the company repurchased 530,015 shares of its stock at a total cost of $20.7 million and an average price per share of $39.14. This brought the total number of shares repurchased under the current 8-million-share program, which commenced in April 2002, to 2,931,331, leaving 5,068,669 shares available for repurchase. OUTLOOK Commenting on management’s outlook, Cecala said: "Several factors will influence our performance in the remaining months of 2007 and into 2008. One is the market interest rate environment and its impact on our net interest margin. We are slightly asset sensitive, and our margin will compress in a declining rate environment until core deposit pricing catches up. We expect the margin to decline approximately 15 basis points in the 2007 fourth quarter, with a subsequent improvement of 7 to 10 basis points in the first quarter of 2008 as deposit pricing resets. "The mid-Atlantic economy has slowed to what we consider a more normal level of activity. We expect loan growth to continue, albeit at a slower pace, as we increase our presence in eastern Pennsylvania, Maryland, and southern New Jersey. "This quarter, nonperforming assets were more in line with what we have experienced historically. It would not be prudent to expect a return to the levels we experienced in 2005 and 2006. "The financial markets, although somewhat erratic recently, are generally higher than they were at this time last year. Assuming this trend is sustainable, Wealth Advisory revenue should increase as we leverage our family office capabilities and our expansion into Boston. "Activity in global capital markets affects Corporate Client Services revenue, most of which is driven by transaction volumes, not the underlying asset values. Although the market for some services has slowed, we continue to see demand for services such as collateralized loan obligations, and we believe the prospects for growth are positive, especially in Europe. "Expense management remains paramount. We expect expenses to range from $110 million to $112 million for the fourth quarter. Staffing-related expenses will increase in the first quarter of 2008, as payroll taxes and 401(k) plan contributions reset.” CONFERENCE CALL Management will discuss the 2007 third quarter results and outlook for the future in a conference call today at 10:00 a.m. (EDT). Supporting materials, financial statements, and audio streaming will be available at www.wilmingtontrust.com. To access the call from within the United States, dial (888) 459-5609 and enter PIN 9266871. From outside the United States, dial (973) 321-1024 and enter PIN 9266871. A rebroadcast of the call will be available from 12:30 p.m. (EDT) today until 5:00 p.m. (EDT) on Friday, October 26, by calling (877) 519-4471 inside the United States or (973) 341-3080 from outside the United States. Use PIN 9266871 to access the rebroadcast. FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that reflect our current expectations about our future performance. These statements rely on a number of assumptions and estimates and are subject to various risks and uncertainties that could cause our actual results to differ from our expectations. Factors that could affect our future financial results include, among other things, changes in national or regional economic conditions; changes in market interest rates; significant changes in banking laws or regulations; increased competition in our businesses; higher-than-expected credit losses; the effects of acquisitions; the effects of integrating acquired entities; a substantial and permanent loss of either client accounts and/or assets under management at Wilmington Trust and/or our affiliate money managers, Cramer Rosenthal McGlynn and Roxbury Capital Management; unanticipated changes in regulatory, judicial, or legislative tax treatment of business transactions; and economic uncertainty created by unrest in other parts of the world. ABOUT WILMINGTON TRUST Wilmington Trust Corporation (NYSE:WL) is a financial services holding company that provides Regional Banking services throughout the Delaware Valley region, Wealth Advisory Services for high-net-worth clients in 36 countries, and Corporate Client Services for institutional clients in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust Company, which was founded in 1903, is one of the largest personal trust providers in the United States and the leading retail and commercial bank in Delaware. Wilmington Trust Corporation and its affiliates have offices in California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the Channel Islands, London, Dublin, Frankfurt, and Luxembourg. For more information, visit www.wilmingtontrust.com. WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007                 HIGHLIGHTS   Three Months Ended Nine Months Ended   Sept.30, Sept.30, % Sept.30, Sept.30, %           2007       2006     Change     2007       2006     Change OPERATING RESULTS (in millions) Net interest income $ 94.1 $ 93.0 1.2 $ 277.7 $ 270.7 2.6 Provision for loan losses (8.9 ) (6.6 ) 34.8 (19.0 ) (14.8 ) 28.4 Noninterest income 94.8 84.6 12.1 283.2 253.6 11.7 Noninterest expense 110.8 170.9 (35.2 ) 327.2 366.8 (10.8 ) Net income 46.2 5.2 N/M 138.0 96.3 43.3   PER SHARE DATA Basic net income $ 0.68 $ 0.08 N/M $ 2.02 $ 1.41 43.3 Diluted net income 0.67 0.07 N/M 1.99 1.38 44.2 Dividends paid 0.335 0.315 6.3 0.985 0.93 5.9 Book value at period end 16.23 15.55 4.4 16.23 15.55 4.4 Closing price at period end 38.90 44.55 (12.7 ) 38.90 44.55 (12.7 ) Market range: High 42.14 45.61 (7.6 ) 44.55 45.61 (2.3 ) Low 36.46 40.52 (10.0 ) 36.46 38.54 (5.4 )   AVERAGE SHARES OUTSTANDING (in thousands) Basic 67,698 68,647 (1.4 ) 68,206 68,399 (0.3 ) Diluted 68,582 69,900 (1.9 ) 69,222 69,695 (0.7 )   AVERAGE BALANCE SHEET (in millions) Investment portfolio $ 1,787.4 $ 1,857.0 (3.7 ) $ 1,885.7 $ 1,851.2 1.9 Loans 8,260.3 7,759.3 6.5 8,163.6 7,628.0 7.0 Earning assets 10,075.0 9,645.1 4.5 10,089.9 9,501.0 6.2 Core deposits 4,902.2 4,950.0 (1.0 ) 4,886.2 4,912.6 (0.5 ) Stockholders' equity 1,087.8 1,081.7 0.6 1,090.1 1,056.3 3.2     STATISTICS AND RATIOS (net income annualized) Return on average stockholders' equity 16.85 % 1.91 % N/M 16.93 % 12.19 % 38.9 Return on average assets 1.67 % 0.20 % N/M 1.68 % 1.24 % 35.5 Net interest margin (taxable equivalent) 3.73 % 3.85 % (3.1 ) 3.71 % 3.84 % (3.4 ) Dividend payout ratio 49.35 % 415.38 % (88.1 ) 48.84 % 65.94 % (25.9 ) Full-time equivalent headcount 2,590 2,520 2.8 2,590 2,520 2.8 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007       QUARTERLY INCOME STATEMENT   Three Months Ended % Change From: Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior (In millions)     2007     2007     2007     2006     2006     Quarter   Year NET INTEREST INCOME Interest income $ 183.4 $ 180.8 $ 180.0 $ 182.0 $ 175.0 1.4 4.8 Interest expense     89.3     88.0     89.2     89.6     82.0   1.5 8.9 Net interest income 94.1 92.8 90.8 92.4 93.0 1.4 1.2 Provision for loan losses     (8.9 )   (6.5 )   (3.6 )   (6.5 )   (6.6 ) 36.9 34.8 Net interest income after provision for loan losses 85.2     86.3     87.2     85.9     86.4   (1.3 ) (1.4 ) NONINTEREST INCOME Advisory fees: Wealth Advisory Services Trust and investment advisory fees 40.5 38.4 36.9 36.1 33.0 5.5 22.7 Mutual fund fees 5.3 5.1 5.1 5.1 5.3 3.9 ---- Planning and other services     10.3     9.9     9.5     10.1     8.8   4.0 17.0 Total Wealth Advisory Services 56.1     53.4     51.5     51.3     47.1   5.1 19.1 Corporate Client Services Capital markets services 10.2 11.2 10.2 10.4 8.7 (8.9 ) 17.2 Entity management services 7.4 7.4 7.1 7.1 6.8 ---- 8.8 Retirement services 3.0 3.2 3.4 2.9 2.9 (6.3 ) 3.4 Investment/cash management services     3.0     3.0     3.3     3.0     2.7   ---- 11.1 Total Corporate Client Services 23.6     24.8     24.0     23.4     21.1   (4.8 ) 11.8 Cramer Rosenthal McGlynn 4.2 6.3 4.7 5.3 4.6 (33.3 ) (8.7 ) Roxbury Capital Management     0.4     0.2     0.1     0.1     ----   100.0 ---- Advisory fees 84.3 84.7 80.3 80.1 72.8 (0.5 ) 15.8 Amortization of affiliate intangibles     (1.2 )   (1.1 )   (1.1 )   (1.1 )   (1.1 ) 9.1 9.1 Advisory fees after amortization of affiliate intangibles 83.1     83.6     79.2     79.0     71.7   (0.6 ) 15.9 Service charges on deposit accounts 7.2 7.0 6.8 7.1 7.3 2.9 (1.4 ) Other noninterest income 4.7 6.2 5.4 6.2 5.5 (24.2 ) (14.5 ) Securities gains/(losses)     (0.2 )   0.1     ----     0.2     0.1   ---- ---- Total noninterest income 94.8     96.9     91.4     92.5     84.6   (2.2 ) 12.1 Net interest and noninterest income 180.0     183.2     178.6     178.4     171.0   (1.7 ) 5.3 NONINTEREST EXPENSE Salaries and wages 44.1 41.9 41.8 40.3 39.5 5.3 11.6 Incentives and bonuses 10.0 11.4 14.0 10.3 8.9 (12.3 ) 12.4 Employment benefits 12.7 11.5 14.6 11.4 11.4 10.4 11.4 Net occupancy 7.3 6.8 6.8 6.7 6.7 7.4 9.0 Furniture, equipment, and supplies 10.0 9.8 9.7 10.3 9.2 2.0 8.7 Other noninterest expense: Advertising and contributions 2.0 2.8 2.7 3.2 2.2 (28.6 ) (9.1 ) Servicing and consulting fees 2.6 2.8 2.4 2.9 2.8 (7.1 ) (7.1 ) Subadvisor expense 2.7 2.5 2.5 2.3 2.7 8.0 ---- Travel, entertainment, and training 2.8 2.4 2.2 3.4 2.5 16.7 12.0 Originating and processing fees 2.8 2.7 2.5 3.1 2.8 3.7 ---- Other expense     13.8     11.4     11.2     11.0     9.9   21.1 39.4 Total other noninterest expense 26.7     24.6     23.5     25.9     22.9   8.5 16.6 Total noninterest expense before impairment 110.8 106.0 110.4 104.9 98.6 4.5 12.4 Impairment write-down ----     ----     ----     ----     72.3   ---- (100.0 ) Total noninterest expense 110.8     106.0     110.4     104.9     170.9   4.5 (35.2 ) Income before income taxes and minority interest 69.2 77.2 68.2 73.5 0.1 (10.4 ) N/M Applicable income taxes     22.9     28.3     24.6     26.3     (5.0 ) (19.1 ) ---- Net income before minority interest 46.3 48.9 43.6 47.2 5.1 (5.3 ) N/M Minority interest     0.1     ----     0.6     (0.3 )   (0.1 ) ---- ---- Net income $ 46.2   $ 48.9   $ 43.0   $ 47.5   $ 5.2   (5.5 ) N/M WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007       YEAR-TO-DATE INCOME STATEMENT   Nine Months Ended   Sept. 30, Sept. 30, % (In millions)     2007     2006     Change NET INTEREST INCOME Interest income $ 544.2 $ 492.9 10.4 Interest expense     266.5       222.2   19.9 Net interest income 277.7 270.7 2.6 Provision for loan losses     (19.0 )     (14.8 ) 28.4 Net interest income after provision for loan losses 258.7       255.9   1.1 NONINTEREST INCOME Advisory fees: Wealth Advisory Services Trust and investment advisory fees 115.8 100.4 15.3 Mutual fund fees 15.4 15.0 2.7 Planning and other services     29.8       25.1   18.7 Total Wealth Advisory Services 161.0       140.5   14.6 Corporate Client Services Capital markets services 31.5 26.6 18.4 Entity management services 21.9 19.8 10.6 Retirement services 9.6 8.6 11.6 Investment/cash management services     9.4       7.3   28.8 Total Corporate Client Services 72.4       62.3   16.2 Cramer Rosenthal McGlynn 15.2 14.1 7.8 Roxbury Capital Management     0.7       1.1   (36.4 ) Advisory fees 249.3 218.0 14.4 Amortization of affiliate intangibles     (3.4 )     (3.1 ) 9.7 Advisory fees after amortization of affiliate intangibles 245.9       214.9   14.4 Service charges on deposit accounts 21.0 21.1 (0.5 ) Other noninterest income 16.4 17.6 (6.8 ) Securities gains/(losses)     (0.1 )     ----   ---- Total noninterest income 283.2       253.6   11.7 Net interest and noninterest income 541.9       509.5   6.4 NONINTEREST EXPENSE Salaries and wages 127.7 114.1 11.9 Incentives and bonuses 35.4 29.5 20.0 Employment benefits 38.9 36.8 5.7 Net occupancy 20.9 19.0 10.0 Furniture, equipment, and supplies 29.5 28.2 4.6 Other noninterest expense: Advertising and contributions 7.5 6.2 21.0 Servicing and consulting fees 7.8 7.5 4.0 Subadvisor expense 7.7 8.4 (8.3 ) Travel, entertainment, and training 7.4 7.0 5.7 Originating and processing fees 8.0 8.0 ---- Other expense     36.4       29.8   22.1 Total other noninterest expense 74.8       66.9   11.8 Total noninterest expense before impairment 327.2 294.5 11.1 Impairment write-down ----       72.3   (100.0 ) Total noninterest expense 327.2       366.8   (10.8 ) Income before income taxes and minority interest 214.7 142.7 50.5 Applicable income taxes     75.9       46.3   63.9 Net income before minority interest 138.8 96.4 44.0 Minority interest     0.8       0.1   N/M Net income $ 138.0     $ 96.3   43.3 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007         COMPARISON OF OPERATING RESULTS (excluding the 2006 impairment write-down)   Three Months Ended Nine Months Ended Sept. 30, Sept. 30, % Sept. 30, Sept. 30, %       2007     2006     Change     2007     2006     Change OPERATING RESULTS (in millions) Net interest income $ 94.1 $ 93.0 1.2 $ 277.7 $ 270.7 2.6 Provision for loan losses (8.9 ) (6.6 ) 34.8 (19.0 ) (14.8 ) 28.4 Noninterest income 94.8 84.6 12.1 283.2 253.6 11.7 Total noninterest expense before impairment write-down 110.8 98.6 12.4 327.2 294.5 11.1 Impairment write-down     ----     ----     ----       ----     ----     ----   Total noninterest expense   110.8     98.6     12.4       327.2     294.5     11.1   Income before income taxes and minority interest 69.2 72.4 (4.4 ) 214.7 215.0 (0.1 ) Applicable income taxes     22.9     25.6     (10.5 )     75.9     76.9     (1.3 ) Net income before minority interest 46.3 46.8 (1.1 ) 138.8 138.1 0.5 Minority interest     0.1     (0.1 )   ----       0.8     0.1     N/M   Net income $ 46.2   $ 46.9     (1.5 )   $ 138.0   $ 138.0     ----         PER-SHARE DATA Diluted shares outstanding (in millions) 68.6 69.9 (1.9 ) 69.2 69.7 (0.7 ) Per-share earnings (diluted) $ 0.67 $ 0.67 ---- $ 1.99 $ 1.98 0.5       STATISTICS AND RATIOS (net income annualized; dollars in millions) Total assets, on average $ 10,963.3 $ 10,541.2 4.0 $ 10,954.0 $ 10,371.6 5.6 Stockholders' equity, on average 1,087.8 1,082.2 0.5 1,090.1 1,056.4 3.2 Return on average assets 1.67 % 1.77 % (5.6 ) 1.68 % 1.78 % (5.6 ) Return on equity 16.85 % 17.23 % (2.2 ) 16.93 % 17.47 % (3.1 )   Net interest income before provision and noninterest income $ 188.9 $ 177.6 6.4 $ 560.9 $ 524.3 7.0 Tax-equivalent interest income     1.0     1.1     (9.1 )     3.0     3.2     (6.3 ) $ 189.9 $ 178.7 6.3 $ 563.9 $ 527.5 6.9 Noninterest expense $ 110.8   $ 98.6     12.4     $ 327.2   $ 294.5     11.1   Efficiency ratio 58.35 % 55.18 % 5.7 58.02 % 55.83 % 3.9 WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2006             COMPARISON OF RESULTS WITH AND WITHOUT THE IMPAIRMENT WRITE-DOWN   Three Months Ended September 30, 2006 Nine Months Ended September 30, 2006   With Without With Without       impairment     impairment     Impairment     impairment     impairment     Impairment OPERATING RESULTS (in millions) Net interest income $ 93.0 $ 93.0 $ ---- $ 270.7 $ 270.7 $ ---- Provision for loan losses (6.6 ) (6.6 ) ---- (14.8 ) (14.8 ) ---- Noninterest income 84.6 84.6 ---- 253.6 253.6 ---- Noninterest expense     170.9       98.6       72.3     366.8       294.5       72.3   Income before taxes and minority interest 0.1 72.4 (72.3 ) 142.7 215.0 (72.3 ) Applicable income taxes     (5.0 )     25.6       (30.6 )   46.3       76.9       (30.6 ) Net income before minority interest 5.1 46.8 (41.7 ) 96.4 138.1 (41.7 ) Minority interest     (0.1 )     (0.1 )     ----     0.1       0.1       ----   Net income $ 5.2     $ 46.9     $ (41.7 ) $ 96.3     $ 138.0     $ (41.7 )     PER SHARE DATA Diluted shares outstanding (in millions) 69.9 69.9 ---- 69.7 69.7 ---- Per-share earnings $ 0.07 $ 0.67 $ (0.60 ) $ 1.38 $ 1.98 $ (0.60 )     STATISTICS AND RATIOS (dollars in millions) Total assets, on average $ 10,540.4 $ 10,541.2 $ (0.8 ) $ 10,371.4 $ 10,371.6 $ (0.2 ) Stockholders' equity, on average 1,081.7 1,082.2 (0.5 ) 1,056.3 1,056.4 (0.1 ) Return on average assets 0.20 % 1.77 % (1.57 )% 1.24 % 1.78 % (0.54 )% Return on equity 1.91 % 17.23 % (15.32 )% 12.19 % 17.47 % (5.28 )%   Net interest income before provision and noninterest income $ 177.6 $ 177.6 $ ---- $ 524.3 $ 524.3 $ ---- Tax equivalent interest income     1.1       1.1       ----     3.2       3.2       ----   $ 178.7 $ 178.7 $ ---- $ 527.5 $ 527.5 $ ---- Noninterest expense $ 170.9     $ 98.6     $ 72.3   $ 366.8     $ 294.5     $ 72.3   Efficiency ratio 95.64 % 55.18 % 40.46 % 69.54 % 55.83 % 13.71 % WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007         STATEMENT OF CONDITION   % Change From Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Prior Prior (In millions)     2007     2007     2007     2006     2006     Quarter     Year ASSETS Cash and due from banks $ 286.3   $ 231.8   $ 222.2   $ 249.7   $ 268.4   23.5 6.7 Federal funds sold and securities purchased under agreements to resell 16.5     18.0     68.9     68.9     38.4   (8.3 ) (57.0 ) Investment securities: U.S. Treasury 101.9 103.8 102.5 125.2 230.8 (1.8 ) (55.8 ) Government agencies 701.4 634.8 743.9 807.1 533.0 10.5 31.6 Obligations of state and political subdivisions 18.5 19.0 9.1 9.5 9.4 (2.6 ) 96.8 Preferred stock 62.6 63.8 74.2 90.5 91.0 (1.9 ) (31.2 ) Mortgage-backed securities 581.9 605.1 656.2 689.5 726.8 (3.8 ) (19.9 ) Other securities     385.1     387.5     391.5     392.8     391.3   (0.6 ) (1.6 ) Total investment securities 1,851.4     1,814.0     1,977.4     2,114.6     1,982.3   2.1 (6.6 ) Loans: Commercial, financial, and agricultural 2,529.0 2,483.7 2,455.2 2,533.5 2,378.1 1.8 6.3 Real estate - construction 1,759.9 1,747.0 1,665.5 1,663.9 1,610.9 0.7 9.2 Mortgage - commercial     1,388.8     1,390.5     1,378.3     1,296.1     1,254.5   (0.1 ) 10.7 Total commercial loans 5,677.7     5,621.2     5,499.0     5,493.5     5,243.5   1.0 8.3 Mortgage - residential 566.3 563.1 553.5 536.9 518.7 0.6 9.2 Consumer 1,546.0 1,517.0 1,503.9 1,517.0 1,489.7 1.9 3.8 Secured with liquid collateral     546.5     573.4     532.0     547.5     528.3   (4.7 ) 3.4 Total retail loans 2,658.8     2,653.5     2,589.4     2,601.4     2,536.7   0.2 4.8 Total loans net of unearned income 8,336.5 8,274.7 8,088.4 8,094.9 7,780.2 0.7 7.2 Reserve for loan losses     (101.6 )   (97.5 )   (94.5 )   (94.2 )   (93.6 ) 4.2 8.5 Net loans 8,234.9     8,177.2     7,993.9     8,000.7     7,686.6   0.7 7.1 Premises and equipment 148.9 148.6 148.8 150.3 151.6 0.2 (1.8 ) Goodwill 329.0 328.2 291.5 291.4 291.1 0.2 13.0 Other intangibles 38.7 40.1 34.2 35.4 38.8 (3.5 ) (0.3 ) Other assets     281.4     273.1     254.0     246.0     251.9   3.0 11.7 Total assets $ 11,187.1   $ 11,031.0   $ 10,990.9   $ 11,157.0   $ 10,709.1   1.4 4.5   LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 827.8 $ 812.7 $ 792.0 $ 913.6 $ 861.3 1.9 (3.9 ) Interest-bearing: Savings 580.1 497.1 422.7 313.8 292.5 16.7 98.3 Interest-bearing demand 2,202.3 2,343.6 2,336.1 2,417.5 2,417.5 (6.0 ) (8.9 ) Certificates under $100,000 1,002.4 1,019.8 1,014.2 1,012.6 995.5 (1.7 ) 0.7 Local certificates $100,000 and over     389.6     370.8     447.6     474.4     574.7   5.1 (32.2 ) Total core deposits 5,002.2 5,044.0 5,012.6 5,131.9 5,141.5 (0.8 ) (2.7 ) National money market deposits 144.4 139.5 142.5 143.1 ---- 3.5 ---- National certificates $100,000 and over     2,353.1     2,979.3     2,970.6     3,054.1     2,742.7   (21.0 ) (14.2 ) Total deposits 7,499.7     8,162.8     8,125.7     8,329.1     7,884.2   (8.1 ) (4.9 ) Short-term borrowings: Federal funds purchased and securities sold under agreements to repurchase 1,925.5 1,174.4 1,153.5 1,145.8 1,161.7 64.0 65.7 U.S. Treasury demand     40.9     2.5     ----     13.0     7.0   N/M 484.3 Total short-term borrowings 1,966.4     1,176.9     1,153.5     1,158.8     1,168.7   67.1 68.3 Other liabilities 231.4 228.8 229.8 221.3 196.4 1.1 17.8 Long-term debt     391.5     390.2     389.5     388.5     395.2   0.3 (0.9 ) Total liabilities 10,089.0     9,958.7     9,898.5     10,097.7     9,644.5   1.3 4.6 Minority interest 0.1 0.2 0.2 ---- 0.3 (50.0 ) (66.7 ) Stockholders' equity     1,098.0     1,072.1     1,092.2     1,059.3     1,064.3   2.4 3.2 Total liabilities and stockholders' equity $ 11,187.1   $ 11,031.0   $ 10,990.9   $ 11,157.0   $ 10,709.1   1.4 4.5   WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007               AVERAGE STATEMENT OF CONDITION   2007 Third Quarter 2007 Second Quarter 2007 First Quarter 2006 Fourth Quarter 2006 Third Quarter % Change From Prior Prior (In millions)           Quarter   Year ASSETS Cash and due from banks $ 208.1     $ 203.4     $ 213.9     $ 218.2     $ 206.9   2.3 0.6 Federal funds sold and securities purchased under agreements to resell 27.3       37.5       57.3       144.8       28.8   (27.2 ) (5.2 ) Investment securities: U.S. Treasury 103.3 105.0 123.6 177.4 157.0 (1.6 ) (34.2 ) Government agencies 631.4 652.9 728.9 642.1 475.9 (3.3 ) 32.7 Obligations of state and political subdivisions 18.7 12.6 9.1 9.4 9.6 48.4 94.8 Preferred stock 62.5 68.5 85.1 90.7 89.4 (8.8 ) (30.1 ) Mortgage-backed securities 590.4 633.9 668.8 705.5 735.1 (6.9 ) (19.7 ) Other securities   381.1       393.2       390.3       392.5       390.0   (3.1 ) (2.3 ) Total investment securities 1,787.4       1,866.1       2,005.8       2,017.6       1,857.0   (4.2 ) (3.7 ) Loans: Commercial, financial, and agricultural 2,454.9 2,500.1 2,466.2 2,430.5 2,407.7 (1.8 ) 2.0 Real estate - construction 1,769.2 1,696.7 1,669.8 1,634.9 1,588.7 4.3 11.4 Mortgage - commercial   1,387.3       1,376.9       1,339.9       1,281.4       1,238.5   0.8 12.0 Total commercial loans 5,611.4       5,573.7       5,475.9       5,346.8       5,234.9   0.7 7.2 Mortgage - residential 564.4 553.9 542.1 524.8 507.8 1.9 11.1 Consumer 1,533.0 1,503.9 1,512.3 1,496.1 1,470.5 1.9 4.3 Secured with liquid collateral   551.5       524.8       541.7       545.2       546.1   5.1 1.0 Total retail loans 2,648.9       2,582.6       2,596.1       2,566.1       2,524.4   2.6 4.9 Total loans net of unearned income 8,260.3 8,156.3 8,072.0 7,912.9 7,759.3 1.3 6.5 Reserve for loan losses   (95.8 )     (93.3 )     (93.2 )     (91.6 )     (93.5 ) 2.7 2.5 Net loans 8,164.5       8,063.0       7,978.8       7,821.3       7,665.8   1.3 6.5 Premises and equipment 148.5 148.6 150.3 151.5 152.1 (0.1 ) (2.4 ) Goodwill 328.3 307.8 291.4 290.7 362.3 6.7 (9.4 ) Other intangibles 39.4 34.0 34.8 38.1 38.5 15.9 2.3 Other assets   259.8       261.3       245.0       241.2       229.0   (0.6 ) 13.4 Total assets $ 10,963.3     $ 10,921.7     $ 10,977.3     $ 10,923.4     $ 10,540.4   0.4 4.0   LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 714.9 $ 702.6 $ 749.1 $ 793.6 $ 737.2 1.8 (3.0 ) Interest-bearing: Savings 540.9 463.4 365.3 294.7 304.1 16.7 77.9 Interest-bearing demand 2,262.5 2,312.5 2,250.4 2,304.8 2,374.1 (2.2 ) (4.7 ) Certificates under $100,000 1,007.7 1,014.5 1,012.9 1,009.3 988.1 (0.7 ) 2.0 Local certificates $100,000 and over   376.2       427.2       457.7       535.8       546.5   (11.9 ) (31.2 ) Total core deposits 4,902.2 4,920.2 4,835.4 4,938.2 4,950.0 (0.4 ) (1.0 ) National money market deposits 143.3 142.2 143.0 69.9 ---- 0.8 ---- National certificates $100,000 and over   2,817.9       2,853.8       2,992.1       3,042.2       2,864.6   (1.3 ) (1.6 ) Total deposits 7,863.4       7,916.2       7,970.5       8,050.3       7,814.6   (0.7 ) 0.6   Short-term borrowings: Federal funds purchased and securities sold under agreements to repurchase 1,386.8 1,270.8 1,318.5 1,221.4 1,048.8 9.1 32.2 U.S. Treasury demand   11.0       10.4       5.4       10.0       6.8   5.8 61.8 Total short-term borrowings 1,397.8       1,281.2       1,323.9       1,231.4       1,055.6   9.1 32.4 Other liabilities 223.4 214.2 231.5 183.0 193.9 4.3 15.2 Long-term debt   390.7       389.7       388.8       391.1       394.2   0.3 (0.9 ) Total liabilities 9,875.3       9,801.3       9,914.7       9,855.8       9,458.3   0.8 4.4 Minority interest 0.2 0.2 0.4 0.2 0.4 ---- (50.0 ) Stockholders' equity   1,087.8       1,120.2       1,062.2       1,067.4       1,081.7   (2.9 ) 0.6 Total liabilities and stockholders' equity $ 10,963.3     $ 10,921.7     $ 10,977.3     $ 10,923.4     $ 10,540.4   0.4 4.0     WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007           YIELDS AND RATES     YIELDS/RATES(tax-equivalent basis)   2007ThirdQuarter   2007SecondQuarter   2007FirstQuarter   2006FourthQuarter   2006ThirdQuarter EARNING ASSETS: Federal funds sold and securities purchased under agreements to resell 6.36 % 5.18 % 5.05 % 5.23 % 4.61 %   U.S. Treasury 3.40 3.89 4.11 3.97 4.03 Government agencies 4.76 4.73 4.70 4.50 4.19 Obligations of state and political subdivisions 6.96 7.83 9.00 8.79 8.68 Preferred stock 7.82 8.03 7.50 7.70 7.57 Mortgage-backed securities 4.20 4.22 4.25 4.18 4.02 Other securities 6.24 6.33 6.28 6.43 6.37 Total investment securities 4.94 4.98 4.95 4.87 4.74   Commercial, financial, and agricultural 7.91 7.90 8.04 8.02 8.06 Real estate - construction 8.41 8.56 8.60 8.69 8.72 Mortgage - commercial 8.04 8.02 8.03 8.11 8.09 Total commercial loans 8.10 8.13 8.21 8.24 8.27 Mortgage - residential 5.74 5.87 5.95 5.76 5.77 Consumer 7.48 7.44 7.41 7.39 7.33 Secured with liquid collateral 6.88 6.83 6.81 6.87 6.87 Total retail loans 6.98 6.98 6.98 6.95 6.91 Total loans 7.74 7.77 7.81 7.82 7.83 Total earning assets 7.23 7.23 7.22 7.19 7.21   FUNDS USED TO SUPPORT EARNING ASSETS: Savings 2.63 2.07 1.29 0.51 0.42 Interest-bearing demand 1.21 1.20 1.20 1.19 1.10 Certificates under $100,000 4.23 4.45 4.35 4.22 3.87 Local certificates $100,000 and over 4.78 4.55 5.00 4.81 4.71 Core interest-bearing deposits 2.44 2.41 2.42 2.35 2.17 National money market deposits 5.28 5.46 5.53 5.39 ---- National certificates $100,000 and over 5.41 5.40 5.43 5.46 5.37 Total interest-bearing deposits 3.67 3.66 3.73 3.68 3.47   Federal funds purchased and securities sold under agreements to repurchase 4.73 4.83 4.97 5.03 5.05 U.S. Treasury demand 4.87 5.11 5.02 5.03 5.16 Total short-term borrowings 4.74 4.83 4.97 5.03 5.05 Long-term debt 6.66 7.00 6.86 6.76 6.79 Total interest-bearing liabilities 3.97 3.97 4.05 4.00 3.82 Total funds used to support earning assets 3.50 3.50 3.55 3.52 3.36 Net interest margin (tax-equivalent basis) 3.73 3.73 3.67 3.67 3.85   Year-to-date net interest margin 3.71 3.70 3.67 3.79 3.84   Prime rate 8.18 8.25 8.25 8.25 8.25   Tax-equivalent net interest income (in millions) $ 95.1 $ 93.8 $ 91.9 $ 93.5 $ 94.1   Average earning assets at historical cost 10,113.9 10,082.8 10,163.3 10,105.2 9,694.5 Average fair valuation adjustment on investment securities available for sale   (38.9 )   (22.9 )   (28.2 )   (29.9 )   (49.4 ) Average earning assets $ 10,075.0   $ 10,059.9   $ 10,135.1   $ 10,075.3   $ 9,645.1     Average rates are calculated using average balances based on historical cost and do not reflect fair valuation adjustments.   WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY As of and for the nine months ended September 30, 2007               SUPPLEMENTAL INFORMATION   Three Months Ended % Change From         Sept.30,2007     June30,2007     Mar.31,2007     Dec. 31,2006     Sept.30,2006   Prior Quarter   Prior Year NET INCOME Net income per share Basic $ 0.68 $ 0.71 $ 0.63 $ 0.69 $ 0.08 (4.2 ) N/M Diluted 0.67 0.70 0.62 0.68 0.07 (4.3 ) N/M Weighted average shares outstanding (in thousands) Basic 67,698 68,403 68,525 68,455 68,647 Diluted 68,582 69,435 69,659 69,615 69,900 Net income as a percentage of: Average assets 1.67 %   1.80 %   1.59 %   1.73 %   0.20 %   Average stockholders' equity 16.85 17.51 16.42 17.66 1.91   ASSETS UNDER MANAGEMENT *(in billions) Wilmington Trust $ 33.2 $ 31.9 $ 31.8 $ 31.3 $ 29.1 4.1 14.1 Wilmington Trust FSB, MA (formerly Bingham Legg Advisers) 1.3 1.3 ---- ---- ---- ---- ---- Roxbury Capital Management 2.8 3.0 3.1 3.1 3.1 (6.7 ) (9.7 ) Cramer Rosenthal McGlynn     11.8       11.9       11.2       10.6       9.8   (0.8 ) 20.4 Combined assets under management $ 49.1     $ 48.1     $ 46.1     $ 45.0     $ 42.0   2.1 16.9   * Assets under management include estimates for values associated with certain assets that lack readily ascertainable values, such as limited partnership interests.   ASSETS UNDER ADMINISTRATION **(in billions) Wilmington Trust $ 121.6 $ 120.1 $ 112.1 $ 107.5 $ 102.4 1.2 18.8 ** Includes Wilmington Trust assets under management   FULL-TIME EQUIVALENT HEADCOUNT Full-time equivalent headcount 2,590 2,574 2,579 2,562 2,520   CAPITAL (in millions, except per share amounts) Average stockholders' equity $ 1,087.8 $ 1,120.2 $ 1,062.2 $ 1,067.4 $ 1,081.7 (2.9 ) 0.6 Period-end primary capital 1,199.6 1,169.6 1,186.7 1,153.5 1,157.9 2.6 3.6 Per share: Book value 16.23 15.77 15.90 15.47 15.55 2.9 4.4 Quarterly dividends declared 0.335 0.335 0.315 0.315 0.315 ---- 6.3 Year-to-date dividends declared 0.985 0.65 0.315 1.245 0.93 Average stockholders' equity to assets 9.92 %   10.26 %   9.68 %   9.78 %   10.28 %   Total risk-based capital ratio 11.54 11.54 12.53 12.10 12.32 Tier 1 risk-based capital ratio   7.96 8.00 8.64 8.25 8.28 Tier 1 leverage capital ratio   7.31 7.37 7.64 7.39 7.34   CREDIT QUALITY (in millions) Period-end reserve for loan losses $ 101.6 $ 97.5 $ 94.5 $ 94.2 $ 93.6 Period-end non-performing assets: Nonaccrual 54.1 45.3 27.9 31.0 32.0 OREO 0.2 0.2 4.8 4.8 4.8 Renegotiated loans 19.2 0.2 ---- ---- ---- Period-end past due 90 days 17.0 13.6 7.3 5.8 7.7   Gross charge-offs 6.4 5.4 5.1 7.1 8.6 Recoveries 1.6 1.9 1.8 1.2 1.3 Net charge-offs 4.8 3.5 3.3 5.9 7.3 Year-to-date net charge-offs 11.6 6.8 3.3 18.5 12.6   Ratios: Period-end reserve to loans 1.22 %   1.18 %   1.17 %   1.16 %   1.20 %   Period-end non-performing assets to loans 0.88 0.55 0.40 0.44 0.47 Period-end loans past due 90 days to total loans 0.20 0.16 0.09 0.07 0.10 Net charge-offs to average loans 0.06 0.04 0.04 0.07 0.09     INTERNAL RISK RATING Pass 96.01 %   96.81 %   96.89 %   97.39 %   97.41 %   Watchlisted 2.62 2.27 2.32 1.82 1.73 Substandard 1.36 0.91 0.77 0.79 0.86 Doubtful 0.01 0.01 0.01 ---- ---- WILMINGTON TRUST CORPORATION QUARTERLY SUMMARYAs of and for the nine months ended September 30, 2007   QUARTERLY BUSINESS SEGMENT REPORT             Three Months Ended   (In millions)     Sept. 30,2007       June 30,2007       Mar. 31,2007       Dec. 31,2006       Sept. 30,2006   REGIONAL BANKING Net interest income $ 87.6 $ 86.3 $ 83.8 $ 84.4 $ 85.7 Provision for loan losses (7.8 ) (6.1 ) (3.6 ) (6.4 ) (6.7 ) Noninterest income 12.4 13.6 12.4 13.6 13.1 Noninterest expense     42.6       40.2       42.2       40.8       39.6   Income before taxes & minority interest 49.6 53.6 50.4 50.8 52.5   Regional Banking efficiency ratio 42.22 %   39.88 %   43.46 %   41.21 %   39.72 %   WEALTH ADVISORY SERVICES Net interest income $ 6.4 $ 6.1 $ 6.3 $ 6.6 $ 6.4 Provision for loan losses (1.1 ) (0.4 ) ---- (0.1 ) 0.1 Noninterest income 52.7 51.0 49.2 49.1 44.9 Noninterest expense     46.8       44.9       47.6       43.7       40.4   Income before taxes & minority interest 11.2 11.8 7.9 11.9 11.0   Wealth Advisory Services efficiency ratio 79.05 %   78.50 %   85.61 %   78.32 %   78.60 %   CORPORATE CLIENT SERVICES Net interest income $ 3.2 $ 3.5 $ 3.7 $ 4.3 $ 4.4 Provision for loan losses ---- ---- ---- ---- ---- Noninterest income 25.3 26.0 25.2 24.7 22.2 Noninterest expense     21.4       20.9       20.6       20.4       18.5   Income before taxes & minority interest 7.1 8.6 8.3 8.6 8.1   Corporate Client Services efficiency ratio 75.09 %   70.85 %   71.28 %   70.10 %   69.29 %   AFFILIATE MANAGERS * Net interest income $ (3.1 ) $ (3.1 ) $ (3.0 ) $ (2.9 ) $ (3.5 ) Provision for loan losses ---- ---- ---- ---- ---- Noninterest income 4.4 6.3 4.6 5.1 4.4 Noninterest expense     ----       ----       ----       ----       72.4   Income before taxes & minority interest 1.3 3.2 1.6 2.2 (71.5 )   TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 94.1 $ 92.8 $ 90.8 $ 92.4 $ 93.0 Provision for loan losses (8.9 ) (6.5 ) (3.6 ) (6.5 ) (6.6 ) Noninterest income 94.8 96.9 91.4 92.5 84.6 Noninterest expense     110.8       106.0       110.4       104.9       170.9   Income before taxes & minority interest $ 69.2     $ 77.2     $ 68.2     $ 73.5     $ 0.1     Corporation efficiency ratio 58.35 %   55.58 %   60.26 %   56.40 %   95.64 % * Affiliate managers comprise Cramer Rosenthal McGlynn and Roxbury Capital Management.   Segment data for prior periods may differ from previously published figures due to changes in reporting methodology and/or organizational structure. WILMINGTON TRUST CORPORATION QUARTERLY SUMMARYAs of and for the nine months ended September 30, 2007YEAR-TO-DATE BUSINESS SEGMENT REPORT       Nine Months Ended   (In millions)     Sept. 30,2007   Sept. 30,2006   $Change   %Change   REGIONAL BANKING Net interest income $ 257.7 $ 250.5 $ 7.2 2.9 % Provision for loan losses (17.5 ) (14.1 ) 3.4 24.1 Noninterest income 38.6 38.5 0.1 0.3 Noninterest expense     125.0     116.6     8.4     7.2     Income before taxes & minority interest 153.8 158.3 (4.5 ) (2.8 )   Regional Banking efficiency ratio 41.81 %   39.96 %     WEALTH ADVISORY SERVICES Net interest income $ 18.8 $ 19.2 $ (0.4 ) (2.1 ) % Provision for loan losses (1.5 ) (0.7 ) 0.8 114.3 Noninterest income 153.0 134.8 18.2 13.5 Noninterest expense     139.3     122.5     16.8     13.7     Income before taxes & minority interest 31.0 30.8 0.2 0.6   Wealth Advisory Services efficiency ratio 80.99 %   79.44 %     CORPORATE CLIENT SERVICES Net interest income $ 10.4 $ 10.6 $ (0.2 ) (1.9 ) % Provision for loan losses ---- ---- ---- ---- Noninterest income 76.4 65.8 10.6 16.1 Noninterest expense     62.8     55.3     7.5     13.6     Income before taxes & minority interest 24.0 21.1 2.9 13.7   Corporate Client Services efficiency ratio 72.27 %   72.19 %     AFFILIATE MANAGERS * Net interest income $ (9.2 ) $ (9.6 ) $ 0.4 4.2 % Provision for loan losses ---- ---- ---- ---- Noninterest income 15.2 14.5 0.7 4.8 Noninterest expense     0.1     72.4     (72.3 )   (99.9 )   Income before taxes & minority interest 5.9 (67.5 ) 73.4 ----   TOTAL WILMINGTON TRUST CORPORATION Net interest income $ 277.7 $ 270.7 $ 7.0 2.6 %   Provision for loan losses (19.0 ) (14.8 ) 4.2 28.4 Noninterest income 283.2 253.6 29.6 11.7 Noninterest expense     327.2     366.8     (39.6 )   (10.8 )   Income before taxes & minority interest $ 214.7   $ 142.7   $ 72.0     50.5       Corporation efficiency ratio   58.02 %   69.54 %   * Affiliate managers comprise Cramer Rosenthal McGlynn and Roxbury Capital Management.   Segment data for prior periods may differ from previously published figures due to changes in reporting methodology and/or organizational structure.