Wilmington (NYSE:WL)
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From Jul 2019 to Jul 2024
Wilmington Trust Corporation (NYSE:WL) reported today that net income
for the 2006 fourth quarter was $47.5 million and earnings per share (on
a diluted basis) were $0.68 per share.
"Loan balances, Wealth Advisory Services revenue, and Corporate Client
Services revenue reached record-high levels for the fourth quarter and
full year, and credit quality remained stable. Business growth in the
fourth quarter was masked by a decline in the net interest margin, which
decreased as deposit rates rose and spreads narrowed on investments that
collateralize short-term borrowings," said Ted T. Cecala, Wilmington
Trust's chairman and chief executive officer. "The results from each of
our businesses reflect how our expansion investments are generating
positive returns and creating additional momentum."
For the 2006 full year, net income totaled $143.8 million and earnings
per share (diluted) were $2.06. Results for 2006 were dampened by the
non-cash goodwill impairment write-down the company recorded during the
third quarter against its investment in affiliate money manager Roxbury
Capital Management (RCM). This charge reduced net income by $41.7
million and earnings per share (diluted) by $0.60 per share.
Absent this charge, operating net income for 2006 would have been $185.5
million, 11% higher than for 2005. Earnings per share (diluted) would
have been $2.66 per share, a 9% increase. This release contains amounts
that exclude the non-cash impairment write-down in cases where
management believes doing so offers investors more relevant information
about business trends and the company's continuing operations.
PERFORMANCE HIGHLIGHTS
Two balance sheet benchmarks were surpassed: At year-end 2006, total
assets exceeded $11 billion for the first time and loan balances
topped $8 billion for the first time.
At $7.91 billion for the 2006 fourth quarter and $7.70 billion for the
full year, on average, loan balances were 8% and 9% higher,
respectively.
Credit quality remained stable and the percentage of loans with pass
ratings continued to exceed 97%.
The Wealth Advisory and Corporate Client Services businesses recorded
double-digit increases in revenue for the 2006 fourth quarter and full
year.
Value-style affiliate manager Cramer Rosenthal McGlynn had assets
under management of $10.6 billion at year-end 2006, a record high.
Investments in new offices, products, services, and people throughout
the year caused expenses for the 2006 fourth quarter to be 11% higher
than for the year-ago fourth quarter, and 8% higher for the full year
(excluding the impairment write-down). Including the impairment
write-down, expenses for the 2006 full year were 27% higher than for
2005.
The 2006 full-year efficiency ratios for Regional Banking, Wealth
Advisory Services, and Corporate Client Services improved from their
2005 levels.
The net interest margin for the 2006 fourth quarter was 3.65%. This was
9 basis points lower than for the year-ago fourth quarter and 18 basis
points lower than for the 2006 third quarter. During the 2006 fourth
quarter, the company added approximately $277 million of investments to
provide collateral for short-term borrowings. The narrow spreads on
these transactions contributed approximately 10 basis points of the
margin decline.
For the 2006 full year, the net interest margin was 3.79%, which was 8
basis points higher than for 2005. This happened mainly because loan
repricing outpaced deposit repricing during the first three quarters of
2006.
On an annualized basis, fourth quarter 2006 results produced a return on
average assets of 1.73% and a return on average equity of 17.66%. The
corresponding returns for the fourth quarter of 2005 were 1.82% and
18.77%, respectively. For the 2006 full year, the return on average
assets was 1.37% and the return on average equity was 13.58%. Excluding
the non-cash charge for RCM, the full-year return on average assets
would have been 1.76% and the return on average equity would have been
17.34%. The corresponding returns for 2005 were 1.70% and 17.59%,
respectively.
CASH DIVIDEND DECLARED
On January 18, 2007, the Board of Directors declared a regular quarterly
cash dividend of $0.315 per share. The quarterly dividend will be paid
on February 15, 2007, to shareholders of record on February 1, 2007.
EFFICIENCY RATIO
The efficiency ratio, which measures how much a company spends to
generate revenue, showed that, for the 2006 fourth quarter, the company
spent slightly more than 56 cents for each dollar of revenue. This was
fractionally higher than for the year-ago fourth quarter because of
expansion investments the Corporate Client Services business made during
the 2006 fourth quarter.
For the 2006 full year, efficiency was reduced by the impairment
write-down on RCM. Excluding this charge, efficiency improved, with the
company spending slightly less than 56 cents for each dollar of revenue
recorded for the 2006 full year, down from more than 57 cents for each
dollar of revenue recorded for 2005.
Efficiency ratios
2006
Q4
2005
Q4
2006
full year
2005
full year
Regional Banking
41.56%
42.38%
40.57%
42.56%
Wealth Advisory Services
76.47%
78.76%
77.63%
77.97%
Corporate Client Services
72.79%
68.80%
73.67%
76.48%
Wilmington Trust consolidated
56.40%
56.15%
66.10%
57.28%
Wilmington Trust consolidated absent non-cash charge
--
--
55.96%
--
All of the impairment write-down on RCM was attributed to the Affiliate
Managers business segment. The discussions on each business and the
financial statements in this release contain more information about
business line profitability.
INVESTMENT SECURITIES PORTFOLIO
During the 2006 fourth quarter, the company added investments to
collateralize short-term cash sweeps, which increased due to higher
client demand. This caused the size of the investment securities
portfolio to increase, and the composition of the portfolio to shift on
a percentage basis. For the 2006 fourth quarter, investment securities
balances were $2.02 billion, on average. This was 6% higher than for the
year-ago fourth quarter and 9% higher than for the 2006 third quarter.
For the 2006 full year, investment securities balances were $1.89
billion, on average, which was slightly higher than for 2005.
At year-end 2006, the largest concentration of investments in the
portfolio was in government agencies, which comprised 38% of the
portfolio, up from 21% at year-end 2005. The percentage of the portfolio
invested in mortgage-backed instruments fell to 33% at year-end 2006
from 44% at year-end 2005. Other categories of securities in the
portfolio were relatively unchanged on a percentage basis. Although
investment securities balances were higher than for prior periods, they
were relatively unchanged as a percentage of total earning assets.
Investment securities portfolio
At 12/31/06
At 9/30/06
At 12/31/05
Balances (in millions)
$2,114.6
$1,982.3
$1,928.8
As a percentage of total earning assets
21%
20%
21%
Average life (in years)
4.93
5.39
6.14
Duration
2.24
2.39
2.63
Percentage invested in fixed income instruments
82%
80%
79%
Percentage of total assets
19%
19%
19%
The average life and duration declined because the balances of
short-term investments increased and the negative yield curve caused
paydowns of mortgage-backed instruments to accelerate.
THE REGIONAL BANKING BUSINESS
The Delaware Valley region's economy remained well diversified and
economic indicators remained positive. According to the Federal Reserve
Bank of Philadelphia, economic activity improved in Delaware,
Pennsylvania, and New Jersey for the 12 months ended November 2006 (the
most recent data available), and modest economic growth is expected in
2007. According to the U.S. Department of Labor, Delaware's unemployment
rate for November 2006 (the most recent data available) was 3.6%. In
comparison, the U.S. rate was 4.5%.
Amid these favorable economic conditions, the Regional Banking business
generated its 23rd consecutive quarter of loan growth. Loan balances for
the 2006 fourth quarter were $7.91 billion, on average. This was 8%
higher than for the year-ago fourth quarter, and 2% more than for the
2006 third quarter. For the 2006 full year, loan balances were $7.70
billion, on average, an increase of 9% from 2005. Commercial real
estate/construction loans and consumer loans accounted for most of the
growth, and more of the growth came from outside the Delaware market
than in 2005.
Loans
2006
Q4
2005
Q4
2006
full year
2005
full year
Total loans outstanding (in billions, on average)
$7.91
$7.34
$7.70
$7.05
Delaware market loans (in billions, on average)
$5.73
$5.42
$5.63
$5.24
Delaware market loans as a % of total loans
72%
74%
73%
74%
Pennsylvania market loans (in billions, on average)
$1.78
$1.61
$1.72
$1.53
Pennsylvania market loans as a % of total loans
23%
22%
22%
22%
Other market loans as a % of total loans
5%
4%
5%
4%
Commercial loans
Commercial loan balances were $5.35 billion, on average, for the 2006
fourth quarter. This was 10% higher than for the year-ago fourth
quarter, and 2% higher than for the 2006 third quarter. For the 2006
full year, commercial loan balances were $5.20 billion, on average,
which was 11% higher than for 2005. Almost all of this growth was in
commercial real estate/construction (CRE) loans.
Commercial loans (in millions, on average)
2006
Q4
2005
Q4
2006
full year
2005
full year
Commercial, industrial, and agricultural loans
$2,430.5
$2,465.9
$2,437.4
$2,506.1
Commercial real estate/construction loans
$1,634.9
$1,161.6
$1,516.8
$916.5
Commercial mortgage loans
$1,281.4
$1,239.7
$1,240.8
$1,250.9
Total commercial loans
$5,346.8
$4,867.2
$5,195.0
$4,673.5
% of commercial loans from Delaware market
70%
70%
70%
70%
% of commercial loans from Pennsylvania market
29%
29%
29%
29%
% of commercial loans from other markets
1%
1%
1%
1%
CRE loan balances, on average, were 41% higher for the 2006 fourth
quarter and 66% higher for the full year than for the corresponding
periods in 2005. Population growth, especially in Delaware, continued to
drive housing demand, and residential tract development and construction
continued to account for most of the growth in CRE balances.
The U.S. Census Bureau reported that, for the 12 months ended July 2006,
Delaware was the 15th fastest growing state in the United States, and
that Delaware's growth rate was more than double that of any state in
the Bureau's northeast geographic area. Within the Regional Banking
geographic footprint, Delaware's population growth rate was three times
higher than Maryland's, four times higher than Pennsylvania's, and seven
times higher than New Jersey's. Mayflower Transit's 2006 Customer
Relocation Study ranked Delaware as the second most popular U.S.
relocation destination, after South Carolina.
On a period-end basis, CRE balances were 3% higher at the end of the
2006 fourth quarter than at the end of the 2006 third quarter, and they
were 35% higher than at year-end 2005. Projects in Delaware and
Pennsylvania accounted for most of the growth. Most of the Pennsylvania
growth was for projects in Philadelphia County and Chester County, which
borders Delaware.
CRE loan growth by state (period-end balances)
12/31/06 vs. 9/30/06
12/31/06 vs. 12/31/05
Percentage of growth from Delaware
30%
53%
Percentage of growth from Pennsylvania
40%
33%
Percentage of growth from Maryland
15%
8%
Percentage of growth from New Jersey
15%
4%
Percentage of growth from other states
--
2%
The pace of growth in CRE lending slowed during the second half of 2006,
especially for residential tract development and construction projects.
The pace of growth in other types of CRE projects increased, as recent
population growth and the health of the regional economy spurred demand
for leisure and health-related services.
Selected CRE balance increases (period-end balances)
12/31/06 vs. 9/30/06
12/31/06 vs. 12/31/05
Residential tract development and construction balances
2%
41%
Automobile dealership construction balances
39%
79%
Dining and recreation construction balances
86%
40%
Health and social services construction balances
13%
30%
Toward the end of 2006, demand began to rise for loans recorded as
commercial, financial, and agricultural loans (C and I loans). Between
the ends of the third and fourth quarters of 2006, CRE balances
increased 3%. In comparison, the corresponding increase in C and I
balances was 7%, the largest linked-quarter increase in that category of
commercial loans since the fourth quarter of 2005.
Retail loans
Retail loans (consumer loans, residential mortgage loans, and loans
secured with liquid collateral) were $2.57 billion, on average, for the
2006 fourth quarter. This was 4% higher than for the year-ago fourth
quarter and 2% higher than for the 2006 third quarter. For the 2006 full
year, retail loan balances were $2.50 billion, on average, which was 6%
higher than for 2005.
The rate of growth in retail loan balances would have been higher, if
not for:
Less demand from Wealth Advisory Services clients for loans secured
with liquid collateral, which lowered the balances of that category of
retail loans; and
The company's ongoing practice of selling most newly originated fixed
rate residential mortgages into the secondary market. Those loans are
not included in the residential mortgages recorded on the balance
sheet.
As a result, consumer loans continued to account for more than half of
total retail loan balances and for most of the growth in the retail
portfolio. Consumer loan balances for the 2006 fourth quarter were $1.50
billion, on average. This was 6% higher than for the year-ago fourth
quarter and 2% higher than for the 2006 third quarter. For the 2006 full
year, consumer loan balances were $1.46 billion, on average, which was
10% higher than for 2005.
Consumer loans (in millions, on average)
2006
Q4
2005
Q4
2006
full year
2005
full year
Home equity lines of credit
$318.9
$328.2
$321.9
$323.3
Indirect loans
676.1
648.4
657.3
605.1
Credit card loans
62.6
60.4
60.9
59.0
Other consumer loans
438.5
375.5
418.1
341.9
Total consumer loans
$1,496.1
$1,412.5
$1,458.2
$1,329.3
% of consumer loans from Delaware market
79%
81%
80%
84%
% of consumer loans from Pennsylvania market
6%
7%
6%
5%
% of consumer loans from other markets
15%
12%
14%
11%
The category of consumer loans recorded as "other consumer loans"
accounted for the majority of the growth in consumer loan balances. On
average, other consumer loan balances were 17% higher for the 2006
fourth quarter and 22% higher for the full year than for the
corresponding periods in 2005. This category comprises a variety of
installment loans to individuals, most of which are fixed rate loans,
and includes home equity loans. Demand for fixed rate products rose,
causing home equity loan balances to increase, and home equity
line-of-credit balances to decrease. Most home equity lines of credit
have floating rates.
Indirect lending was the other main contributor to the increases in
total consumer loans. Indirect loan balances, on average, were 4% higher
for the 2006 fourth quarter and 9% higher for the full year than for the
corresponding periods in 2005. Higher volumes from the Pennsylvania and
New Jersey markets accounted for most of this growth. The majority of
loans in the indirect portfolio are for late-model used cars.
In the residential mortgage portfolio, balances rose but origination
volumes declined, in large part because:
The company retains mortgages that qualify as low income mortgages for
Community Reinvestment Act (CRA) purposes in the residential mortgage
portfolio. CRA loans originated during 2006 were nearly twice as high
as for 2005.
The average loan amount originated was 2% higher for the 2006 fourth
quarter and 13% higher for the 2006 full year than for the
corresponding year-ago periods.
The pace of refinancings and paydowns slowed.
Residential mortgages
2006
Q4
2005
Q4
2006
full year
2005
full year
Balances (in millions, on average)
$524.8
$450.8
$495.2
$438.6
Origination volumes (in millions)
$52.2
$64.1
$225.3
$221.0
Origination units
244
305
972
1,077
At December 31, 2006, approximately 75% of the residential mortgage
portfolio consisted of fixed rate mortgages, compared with 75% at
year-end 2005 and 74% at September 30, 2006.
Core deposits
For the 2006 fourth quarter, core deposits (deposits from clients) were
$5.01 billion, on average, which was fractionally lower than for the
year-ago fourth quarter and $58.1 million higher than for the 2006 third
quarter. For the 2006 full year, core deposits were $4.94 billion on
average, slightly more than for the 2005 full year. Most core deposits
continued to come from the Delaware market.
Total core deposits (on average)
2006
Q4
2005
Q4
2006
full year
2005
full year
From Delaware clients
94%
94%
94%
94%
From Pennsylvania clients
5%
5%
5%
5%
From other markets
1%
1%
1%
1%
Compared to the 2005 fourth quarter and full year, changes in core
deposit balances reflected double-digit increases in certificate of
deposit (CD) balances which were offset by decreases in
noninterest-bearing demand deposits. On average, noninterest-bearing
demand deposits were $223.8 million lower for the 2006 fourth quarter
than for the year-ago fourth quarter and $56.4 million higher than for
the 2006 third quarter.
The changes in noninterest-bearing demand deposit balances reflected
account sweeps that shift some noninterest-bearing demand deposits into
money market deposits. This practice lowers deposit reserve requirements
mandated by the Federal Reserve, and ultimately reduces the company's
borrowing costs and uninvested cash balances. These sweeps accounted for
approximately $160 million of the decline in noninterest-bearing demand
deposits, on average, between the fourth quarters of 2005 and 2006.
Balances of local CDs $100,000 and over (local CDs) were higher for the
2006 fourth quarter and full year than for the corresponding periods in
2005. Local CDs are recorded as core deposits because they are client
deposits, not brokered deposits. Commercial banking clients in the
Delaware Valley and local municipalities, which frequently use these CDs
to generate returns on their excess cash, account for the majority of
local CD balances.
Local CDs ? $100,000 by client
category
At 12/31/06
At 9/30/06
At 12/31/05
Consumer banking clients
74%
73%
65%
DE commercial banking clients
11%
10%
12%
PA commercial banking clients
8%
10%
9%
Wealth Advisory Services clients
7%
7%
14%
Corporate Client Services clients
--
--
--
Balances of national CDs of $100,000 or more (national CDs) are not
recorded as core deposits because they are brokered deposits, not client
deposits. The company supplements core deposits with national CDs,
because the Regional Banking business strategy is to make loans to
clients in a four-state region while gathering core deposits mainly from
clients in Delaware. Using national CDs is a cost-effective way to fund
loan growth without incurring the expense of building and operating a
large-scale branch office network outside Delaware.
Credit quality
Credit quality remained stable. The percentage of loans outstanding with
pass ratings from the internal risk rating analysis exceeded 97% for the
fifth consecutive quarter, and was higher than for the year-ago fourth
quarter. At year-end 2006, fewer loans were on the watch list than at
the end of 2005, and no loans were rated doubtful.
Net charge-offs for the 2006 fourth quarter were $5.9 million. This was
$1.9 million more than for the 2005 fourth quarter, but $1.4 million
less than for the 2006 third quarter. A loan to an auto dealer in New
Jersey accounted for the increase from the year-ago fourth quarter.
For the 2006 full year, net charge-offs totaled $18.5 million, compared
with $10.1 million for 2005. The largest charge-off during 2006 was a
commercial loan of approximately $4.5 million that had been recorded in
renegotiated loans from the fourth quarter of 2004 until the third
quarter of 2006. Because this charge-off reduced the amount of
renegotiated loans to zero, it caused total nonperforming assets to
decline for the 2006 fourth quarter and full year. The period-end
nonperforming asset ratio was 44 basis points at year-end 2006, down
from 60 basis points at year-end 2005 and 47 basis points at the end of
the 2006 third quarter.
The net charge-off ratio for the 2006 fourth quarter was 7 basis points.
This was 2 basis points higher than for the year-ago fourth quarter and
2 basis points lower than for the 2006 third quarter. For the full-year
2006, the net charge-off ratio was 24 basis points. While this was 14
basis points higher than for the full-year 2005, it was in line with
historical levels. Since 1995, the annual net charge-off ratio has
ranged from 14 to 44 basis points.
Nonaccruing loans totaled $31.0 million at year-end 2006, which was $8.3
million lower than at year-end 2005, and $1.0 million lower than at the
end of the 2006 third quarter. Loans past due 90 days or more amounted
to $5.8 million at year-end 2006. This was $1.7 million more than at
year-end 2005, but $1.9 million less than at the end of the 2006 third
quarter.
Commercial real estate/construction (CRE) loans accounted for
approximately $313,000, or less than 3%, of net charge-offs for the 2006
full year. As of December 31, 2006, no CRE loans were nonaccruing or
past due 90 days.
The $4.8 million asset recorded at year-end 2006 as other real estate
owned (OREO) is a parcel of agricultural land in New Jersey. The amount
recorded for OREO was unchanged from the second quarter of 2006, when
this loan was transferred to OREO from nonaccruing status.
The 2006 fourth quarter provision for loan losses was $6.5 million,
compared with $2.0 million for the year-ago fourth quarter, and $6.6
million for the 2006 third quarter. The reserve for loan losses was
$94.2 million at December 31, 2006, compared with $91.4 million at
year-end 2005 and $93.6 million at September 30, 2006. The loan loss
reserve ratio at year-end 2006 was 1.16%, compared with 1.24% at
year-end 2005 and 1.20% at September 30, 2006. Changes in the provision
and reserve for loan losses reflected management's assessment of risk in
light of loan growth, the internal risk rating analysis, the levels of
loan recoveries and repayments, the stability of the regional economy,
and regulatory guidelines.
Regional Banking efficiency and
profitability
During 2006, Regional Banking added staff, opened new offices, and
expanded existing offices. While these investments increased expenses,
they also helped generate higher amounts of revenue. Revenue growth
outpaced expense growth for the 2006 fourth quarter and full year, and
the corresponding efficiency ratios improved.
Efficiency ratios
2006
Q4
2005
Q4
2006
full year
2005
full year
Regional Banking
41.56%
42.38%
40.57%
42.56%
Pretax income from Regional Banking was 9% higher for the 2006 full year
than for 2005, but $0.5 million lower for the 2006 fourth quarter than
for the year-ago fourth quarter, because the provision for loan losses
was $4.5 million higher than for the 2005 fourth quarter.
NET INTEREST MARGIN
The net interest margin for the 2006 fourth quarter was 3.65%, a decline
of 9 basis points from the year-ago fourth quarter and 18 basis points
from the 2006 third quarter. The net interest margin for the 2006 full
year was 3.79%, 8 basis points higher than for 2005.
Net interest margin
2006
Q4
2006
Q3
2005
Q4
2006
full year
2005
full year
Net interest margin
3.65%
3.83%
3.74%
3.79%
3.71%
Three factors caused the decline:
The increase in investments to support collateralized short-term
borrowings accounted for approximately 10 basis points of the decline.
These transactions add to net interest income, but the difference
between the income and expense they generate is small, and these
narrow spreads reduced the margin.
Continued growth in the loan portfolio accounted for approximately 2
basis points of the decline. Because new loans, on average, are booked
at spreads that are lower than the current net interest margin, each
new loan added causes an incremental reduction in the margin.
Deposit pricing increases, especially on interest-bearing demand
deposits and certificates of deposit (CDs) under $100,000, accounted
for approximately 6 basis points of the decline. In a rising market
interest rate environment, retail deposits reprice more slowly than
floating rate loans. In 2006, the Federal Open Market Committee
stopped raising short-term interest rates in June. Most of the
company's floating rate loans repriced within 30 days of each rate
increase, but retail deposits continued to reprice throughout the
second half of the year. For the 2006 fourth quarter, the increases in
funding costs outpaced the increases in asset yields, which had a
negative effect on the margin.
On a full-year basis, the margin was higher for 2006 than for 2005
mainly because asset yields rose at a faster pace than funding costs for
the first three quarters of the year.
Changes in yields and rates (in basis points)
2006 Q4
vs. 2005 Q4
2006 Q4
vs. 2006 Q3
Full year
2006 vs. 2005
Yield on earning assets
91 bps
(2) bps
121 bps
Rate on CDs under $100,000
126 bps
35 bps
117 bps
Rate on total funds to support earning assets
100 bps
16 bps
113 bps
The majority of loans outstanding continued to be floating rate loans,
and the majority of these loans repriced within a timeframe that closely
matched the 90-day maturations of a substantial portion of the company's
funding.
As a percentage of total balances
At 12/31/06
At 09/30/06
At 12/31/05
Loans outstanding with floating rates
74%
75%
77%
Floating rate loans that are commercial loans
82%
81%
80%
Commercial floating rate loans repricing in ?
30 days
93%
93%
92%
National CDs maturing ? 90 days
55%
74%
87%
Short-term borrowings maturing ? 90 days
92%
98%
86%
Commercial loans tied to a prime rate
61%
62%
63%
Commercial loans tied to the 30-day LIBOR
35%
34%
30%
The decrease over the past 12 months in the percentage of national CDs
maturing in 90 days or less reflected changes in the yield curve. With
little difference between 90-day rates and longer-term rates, the
company opted to purchase instruments with longer terms.
At December 31, 2006, Wilmington Trust's prime lending rate was 8.25%.
THE WEALTH ADVISORY SERVICES BUSINESS
Wealth Advisory Services (WAS) revenue for the 2006 fourth quarter
totaled $51.3 million. This was 20% more than for the year-ago fourth
quarter and 9% more than for the 2006 third quarter. Revenue from trust
and investment advisory services and from planning and other services
were the main contributors of the year-over-year and linked-quarter
growth.
For the 2006 full year, WAS revenue totaled $192.0 million, up 12% from
2005. All three categories of WAS revenue recorded double-digit
increases. On a full-year basis, trust and investment management
services had the largest dollar increase in total WAS revenue, while
revenue from planning and other services recorded the largest percentage
increase.
Most of the growth in total WAS revenue came from trust and investment
advisory services. Business development and market appreciation produced
trust and investment advisory revenue of $35.6 million for the 2006
fourth quarter, up 15% from the year-ago fourth quarter and 8% from the
2006 third quarter. These increases outpaced the increases in the
Standard & Poor's 500 index, which increased an average of 14% and 6%,
respectively, for the corresponding periods. Approximately 48% of trust
and investment advisory revenue was based on equity market valuations,
and management believes the S&P 500 is a good proxy for equity
investments in client portfolios.
For the 2006 full year, trust and investment advisory revenue was $136.1
million, up 10% from 2005. Lackluster performance in the equity markets
during the first nine months of the year masked the revenue from new
business development during that period.
Revenue from planning and other services was $10.6 million for the 2006
fourth quarter. This was 49% higher than for the year-ago fourth quarter
and 21% higher than for the 2006 third quarter. For the 2006 full year,
planning revenue was $35.7 million, a 17% increase from 2005. Fees for
these services are based on the nature and complexity of the service
provided, not on asset valuations. In some cases, these fees are based
on the client's annual income.
Most of the growth in planning revenue came from family office services,
reflecting a substantial expansion of these services. At year-end 2005,
there were 45 full-time-equivalent family office staff members. Most
were in Beverly Hills, and the focus was primarily on meeting the unique
business management needs of entertainment and sports figures. By
year-end 2006, there were 79 full-time-equivalent family office staff
members; they were located in Delaware, Beverly Hills, New York,
Princeton, and Stamford, Connecticut; and added to the scope of services
were expertise in structuring family offices as legal entities and in
developing executive compensation and inherited wealth strategies.
Business development remained solid. The Delaware, Florida, New York,
and Pennsylvania markets recorded the largest increases in sales. In
Pennsylvania, expansion of WAS activities in the Lehigh Valley area
during the second half of the year helped generate sales for the 2006
fourth quarter that were 58% higher than for the 2006 third quarter.
Sales attributed to Delaware include business from clients in other
states whose accounts are located in Delaware in order to benefit from
trust, tax, and legal advantages not available for trusts governed by
the laws of other states.
Wealth Advisory Services efficiency
and profitability
WAS pretax income was 30% higher for the 2006 fourth quarter and 12%
higher for the full year than for the corresponding periods in 2005. Two
new office openings and the family office expansion increased WAS
expenses for 2006, but the business leveraged those initiatives, and
investments made in prior years, to generate revenue growth that
outpaced expense growth. WAS profitability and efficiency measures for
the 2006 fourth quarter and full year improved as a result.
Efficiency ratios
2006
Q4
2005
Q4
2006
full year
2005
full year
Wealth Advisory Services
76.47%
78.76%
77.63%
77.97%
THE CORPORATE CLIENT SERVICES BUSINESS
Corporate Client Services (CCS) revenue for the 2006 fourth quarter
totaled $23.4 million. This was 14% more than for the year-ago fourth
quarter and 11% higher than for the 2006 third quarter. Revenue from
capital markets services, entity management services, and investment and
cash management services were the main contributors of the
year-over-year and linked-quarter revenue growth.
For the 2006 full year, CCS revenue totaled $85.6 million, up 12% from
2005. All four components of the CCS business recorded higher revenue,
and each recorded double-digit increases in sales. On a full-year basis,
entity management services recorded the largest dollar increase in total
CCS revenue and revenue from investment and cash management services
increased at the fastest pace.
Revenue from the capital markets component for the 2006 fourth quarter
was $10.4 million, which was 11% higher than for the year-ago fourth
quarter and 20% higher than for the 2006 third quarter. For the 2006
full year, capital markets revenue was $37.0 million, an increase of 8%.
Sales of capital markets services for the 2006 fourth quarter were 30%
higher than for the year-ago fourth quarter and 21% higher than for the
2006 third quarter. For the 2006 full year, sales of capital markets
services were 30% higher than for 2005.
The capital markets services most in demand in the 2006 fourth quarter
were those that support issues of trust-preferred securities, collateral
trusts and defaults, and commercial mortgage-backed securitization
defeasance. Higher sales of these services offset the continued decline
in the volume of asset-backed securitizations in the U.S. market.
Revenue from entity management services for the 2006 fourth quarter was
$7.1 million, up 16% from the year-ago fourth quarter and 4% from the
2006 third quarter. For the 2006 full year, entity management revenue
was $26.8 million, a 14% increase from 2005. These increases resulted
from strong demand for independent directorships and administrative
services for structured finance securitizations in Europe, and reflected
the company's expansion into Germany. Expansion in the Cayman Islands
and the May 2006 acquisition of PwC Corporate Services (Cayman) from
accounting firm PricewaterhouseCoopers also contributed to the revenue
increases.
More proactive efforts to develop institutional investment management
business continued to generate higher amounts of revenue from investment
and cash management services. Revenue from these services was $3.0
million for the 2006 fourth quarter, up 31% from the year-ago fourth
quarter and 12% more than for the 2006 third quarter. For the 2006 full
year, revenue from these services rose 34% to $10.3 million.
Approximately 33% of the 2006 fourth quarter revenue and 30% of
full-year revenue from these services was tied to the valuations of
domestic fixed income instruments, and reflected the company's ability
to leverage its fixed income expertise on behalf of CCS clients. The
remaining investment and cash management revenue was based on money
market mutual fund balances.
Revenue from the corporate retirement services component of the CCS
business was $2.9 million for the 2006 fourth quarter and $11.5 million
for the full year, increases of 4% and 8%, respectively. Market
appreciation, additional retirement plan contributions, and demand for
executive compensation plan trust and custody services accounted for
these increases.
Corporate Client Services efficiency
and profitability
For the 2006 full year, CCS efficiency and profitability improved
because the focus on marketing investment and cash management services,
and expansion in Europe and the Cayman Islands, yielded higher volumes
of business. The full-year increase in revenue was twice as high as the
corresponding increase in expenses, mainly because CCS leveraged
existing infrastructure and capabilities to support the growth in
revenue from investment and cash management services.
For the 2006 fourth quarter, pre-tax income was the same as for the
year-ago fourth quarter, although the efficiency ratio declined, due to
investments in staff and technology to improve collateralized debt
obligation capabilities.
Efficiency ratios
2006
Q4
2005
Q4
2006
full year
2005
full year
Corporate Client Services
72.79%
68.80%
73.67%
76.48%
AFFILIATE MONEY MANAGERS
Revenue from the two affiliate money managers, Cramer Rosenthal McGlynn
and Roxbury Capital Management, totaled $5.4 million for the 2006 fourth
quarter and $20.5 million for the 2006 full year. These were increases
of 10% and 17%, respectively, from the corresponding periods of 2005.
Affiliate managers (in millions)
At 12/31/06
At 9/30/06
At 12/31/05
Managed assets at Cramer Rosenthal McGlynn
$10,623.8
$9,784.5
$8,899.0
Managed assets at Roxbury Capital Management
$3,138.1
$3,122.9
$3,287.3
Affiliate managers (in millions)
2006
Q4
2005
Q4
2006
full year
2005
full year
Revenue from Cramer Rosenthal McGlynn
$5.3
$4.3
$19.3
$16.1
Revenue from Roxbury Capital Management
$0.1
$0.6
$1.2
$1.4
Total revenue from affiliate managers
$5.4
$4.9
$20.5
$17.5
Value-style affiliate Cramer Rosenthal McGlynn (CRM) contributed nearly
all of the 2006 fourth quarter and full-year revenue from the
affiliates. CRM's assets under management were a record-high $10.6
billion at year-end 2006. This was $1.7 billion, or 19%, higher than at
year-end 2005, and $800 million, or 8%, higher than at September 30,
2006. Asset inflows, particularly in the mid-cap value product, and
market appreciation accounted for the growth in managed assets and drove
the increases in revenue.
Fourth quarter and full-year 2006 results for Roxbury Capital Management
(RCM) reflected the firm's renewed focus on its market positioning and
expertise as a small-cap growth manager. During the second half of 2006,
RCM terminated its micro-cap and fixed income products, which reduced
assets under management and revenue for the fourth quarter and full
year. The costs of terminating the two products also contributed to the
reduction in RCM's revenue.
NONINTEREST EXPENSES
Noninterest expenses were $104.9 million for the 2006 fourth quarter,
which was 11% higher than for the year-ago fourth quarter. For the 2006
full year, noninterest expenses were $471.6 million, a 27% increase from
2005. This amount included the $72.3 million impairment write-down on
RCM. Absent this non-cash charge, noninterest expenses for 2006 would
have been $399.3 million, or 8% higher than for 2005.
Excluding the impairment write-down, expansion initiatives and additions
to staff in 2006 caused expenses to rise. These activities included:
The East Coast launch of the family office practice in June.
New office openings in Pennsylvania, New Jersey, Connecticut, and
Frankfurt, Germany, during the summer.
Expansion of existing offices in Delaware, Pennsylvania, Maryland, and
New York, and additions to staff throughout the year.
The acquisition of PwC Corporate Services (Cayman) in May.
Investments in technology and staff beginning in August to expand
collateralized debt obligation services.
At December 31, 2006, there were 2,562 full-time-equivalent staff
members. This was 93 more than at the end of the year-ago fourth
quarter, and 42 more than at the end of the 2006 third quarter.
Staffing-related costs continued to account for the majority of
noninterest expenses and for the majority of the growth in noninterest
expenses, excluding the non-cash charge.
Staffing-related expenses
2006
Q4
2005
Q4
2006
full year
2005
full year
Full-time equivalent staff members
2,562
2,469
2,562
2,469
Staffing-related expenses (in millions)
$62.0
$56.7
$242.5
$225.0
Effective January 1, 2006, stock-based compensation expense was included
in incentive and bonus expense, in accordance with the company's
adoption of Statement of Financial Accounting Standards No. 123
(revised), "Share-Based Payment," using the modified retrospective
method. Prior-period amounts were adjusted to reflect this accounting
change.
Incentives and bonuses (in millions)
2006
Q4
2005
Q4
2006
full year
2005
full year
Stock option expense
$1.9
$1.8
$7.0
$6.6
Total incentives and bonuses
$10.3
$8.8
$39.8
$38.0
Income tax expense for the 2006 full year was 22% lower than for 2005
mainly because the non-cash impairment write-down recorded against the
investment in RCM reduced pre-tax income. In addition, higher volumes of
stock options were exercised during 2006 than 2005, which increased the
tax-deductible portion of stock-based compensation expense.
SHARE REPURCHASES
During the 2006 fourth quarter, the company spent $50,510 to repurchase
1,164 of its shares, at an average price per share of $43.39. For the
2006 full year, the company spent $29.1 million to purchase 662,996 of
its shares, at an average price per share of $43.93. This brought the
total number of shares repurchased under the current 8-million-share
program, which commenced in April 2002, to 1,351,241, leaving 6,648,759
shares available for repurchase.
OUTLOOK FOR 2007
Commenting on the outlook for 2007, Cecala said:
"Our focus on building and strengthening client relationships, plus
the expansion investments we have made, generated strong momentum in
each of our businesses for 2006. We expect that momentum to continue.
"We have been experiencing solid loan growth, and we expect that to
continue, especially in Pennsylvania and Maryland, as we expand our
commercial banking presence in those markets.
"In the second half of 2006, after the Federal Open Market Committee
(FOMC) stopped raising short-term interest rates, deposit pricing
caught up to floating rate loan repricing, almost all of which took
place within 30 days of the last FOMC rate increase in June. We
believe that substantially all of the 2006 rate increases are now
priced into our core deposits.
"Our credit quality remains very positive. Net charge-offs and the
provision for loan losses for the 2006 fourth quarter were in line
with our long-term averages, and we expect this to continue in 2007.
"We expect continued growth in revenue from Wealth Advisory Services,
due to strong sales momentum and high demand for our newer products
and services, such as family office services.
"We remain very positive about Corporate Client Services. The success
of this business in 2006 created a lot of momentum for 2007, which
should continue due to new product development and expansion in Europe.
"Expense growth for 2007 should be similar to the 2006 increase, which
was 8%, excluding the impairment charge. Expenses in 2007 will reflect
initiatives that came on line at various points in 2006, such as the
family office services expansion, the corporate services acquisition
in the Cayman Islands, new products and European expansion in
Corporate Client Services, and the new offices we opened in
Pennsylvania and New Jersey.
"Expenses for the first quarter are typically higher than for other
quarters, due to the timing of payroll taxes and 401(k) plan
contributions. These two items will add approximately $3 million to
expenses for the first quarter of 2007."
CONFERENCE CALL
Management will discuss the 2006 fourth quarter and full year results
and outlook for the future in a conference call today at 10:00 a.m.
(EST). Supporting materials, financial statements, and audio streaming
will be available at www.wilmingtontrust.com.
To access the call from within the United States, dial (877) 258-8842
and enter PIN 8259324. From outside the United States, dial (973)
582-2839 and enter PIN 8259324.
A rebroadcast of the call will be available from 12:30 p.m. (EST) today
until 5:00 p.m. (EST) on Friday, January 26, 2006, by calling (877)
519-4471 inside the United States or (973) 341-3080 from outside the
United States. Use PIN 8259324 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 22
countries, and Corporate Client Services for institutional clients in 81
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, Nevada, New Jersey, New York, Pennsylvania, South Carolina,
Vermont, the Cayman Islands, the Channel Islands, London, Dublin, and
Frankfurt. For more information, visit www.wilmingtontrust.com.
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
HIGHLIGHTS
Three Months Ended
Twelve Months Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
2006
2005
Change
2006
2005
Change
OPERATING RESULTS (in millions)
Net interest income
$
92.4
$
87.5
5.6
$
363.1
$
328.9
10.4
Provision for loan losses
(6.5)
(2.0)
225.0
(21.3)
(11.8)
80.5
Noninterest income
92.5
79.8
15.9
346.1
313.3
10.5
Noninterest expense
104.9
94.5
11.0
471.6
370.1
27.4
Net income
47.5
46.5
2.2
143.8
167.0
(13.9)
PER SHARE DATA
Basic net income
$
0.69
$
0.69
----
$
2.10
$
2.47
(15.0)
Diluted net income
0.68
0.67
1.5
2.06
2.43
(15.2)
Dividends paid
0.315
0.30
5.0
1.245
1.185
5.1
Book value at period end
15.47
14.99
3.2
15.47
14.99
3.2
Closing price at period end
42.17
38.91
8.4
42.17
38.91
8.4
Market range:
High
45.33
40.96
10.7
45.61
40.96
11.4
Low
40.54
34.65
17.0
38.54
33.01
16.8
AVERAGE SHARES OUTSTANDING (in thousands)
Basic
68,455
67,861
0.9
68,413
67,688
1.1
Diluted
69,680
68,956
1.0
69,707
68,570
1.7
AVERAGE BALANCE SHEET (in millions)
Investment portfolio
$
2,017.6
$
1,907.0
5.8
$
1,893.1
$
1,876.6
0.9
Loans
7,912.9
7,344.9
7.7
7,699.8
7,047.1
9.3
Earning assets
10,075.3
9,292.1
8.4
9,645.7
8,957.4
7.7
Core deposits
5,008.1
5,012.6
(0.1)
4,936.7
4,866.6
1.4
Stockholders' equity
1,067.4
983.0
8.6
1,059.1
949.3
11.6
STATISTICS AND RATIOS (net income annualized)
Return on average stockholders' equity
17.66%
18.77%
(5.9)
13.58%
17.59%
(22.8)
Return on average assets
1.73%
1.82%
(4.9)
1.37%
1.70%
(19.4)
Net interest margin (taxable equivalent)
3.65%
3.74%
(2.4)
3.79%
3.71%
2.2
Dividend payout ratio
45.26%
43.87%
3.2
59.18%
48.02%
23.2
Full-time equivalent headcount
2,562
2,469
3.8
2,562
2,469
3.8
Prior period numbers have been adjusted throughout this report for the
retrospective adoption of stock-based compensation accounting.
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
QUARTERLY INCOME STATEMENT
Three Months Ended
% Change From:
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Prior
Prior
(in millions)
2006
2006
2006
2006
2005
Quarter
Year
NET INTEREST INCOME
Interest income
$
182.0
$
175.0
$
165.0
$
152.8
$
146.2
4.0
24.5
Interest expense
89.6
82.0
74.6
65.5
58.7
9.3
52.6
Net interest income
92.4
93.0
90.4
87.3
87.5
(0.6)
5.6
Provision for loan losses
(6.5)
(6.6)
(4.2)
(4.0)
(2.0)
(1.5)
225.0
Net interest income after provision for loan losses
85.9
86.4
86.2
83.3
85.5
(0.6)
0.5
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services
Trust and investment advisory fees
35.6
33.0
33.1
34.3
31.1
7.9
14.5
Mutual fund fees
5.1
5.3
5.0
4.7
4.5
(3.8)
13.3
Planning and other services
10.6
8.8
8.9
7.3
7.1
20.5
49.3
Total Wealth Advisory Services
51.3
47.1
47.0
46.3
42.7
8.9
20.1
Corporate Client Services
Capital markets services
10.4
8.7
8.8
9.1
9.4
19.5
10.6
Entity management services
7.1
6.8
6.6
6.5
6.1
4.4
16.4
Retirement services
2.9
2.9
2.9
2.7
2.8
----
3.6
Investment/cash management services
3.0
2.7
2.5
2.1
2.3
11.9
31.3
Total Corporate Client Services
23.4
21.1
20.8
20.4
20.6
11.0
13.7
Cramer Rosenthal McGlynn
5.3
4.6
5.5
4.0
4.3
15.2
23.3
Roxbury Capital Management
0.1
----
0.3
0.9
0.6
----
(83.3)
Advisory fees
80.1
72.8
73.6
71.6
68.2
10.1
17.5
Amortization of affiliate other intangibles
(1.1)
(1.1)
(1.0)
(1.0)
(1.0)
----
10.0
Advisory fees after amortization of affiliate other intangibles
79.0
71.7
72.6
70.6
67.2
10.2
17.6
Service charges on deposit accounts
7.1
7.3
7.0
6.9
7.3
(2.7)
(2.7)
Other noninterest income
6.2
5.5
6.8
5.2
5.3
12.7
17.0
Securities gains/(losses)
0.2
0.1
(0.1)
----
----
100.0
----
Total noninterest income
92.5
84.6
86.3
82.7
79.8
9.4
15.9
Net interest and noninterest income
178.4
171.0
172.5
166.0
165.3
4.3
7.9
NONINTEREST EXPENSE
Salaries and wages
40.3
39.5
37.8
36.9
36.4
2.0
10.7
Incentives and bonuses
10.3
8.9
10.3
10.3
8.8
15.7
17.0
Employment benefits
11.4
11.4
11.9
13.5
11.5
----
(0.9)
Net occupancy
6.7
6.7
6.3
5.9
6.1
----
9.8
Furniture, equipment, and supplies
10.3
9.2
9.9
9.0
8.4
12.0
22.6
Other noninterest expense:
Advertising and contributions
3.2
2.2
2.1
1.9
2.5
45.5
28.0
Servicing and consulting fees
2.9
2.8
2.4
2.3
2.9
3.6
----
Subadvisor expense
2.3
2.7
2.9
2.8
2.5
(14.8)
(8.0)
Travel, entertainment, and training
3.4
2.5
2.3
2.2
2.6
36.0
30.8
Originating and processing fees
3.1
2.8
2.4
2.8
2.8
10.7
10.7
Other expense
11.0
9.9
10.0
9.9
10.0
11.1
10.0
Total other noninterest expense
25.9
22.9
22.1
21.9
23.3
13.1
11.2
Total noninterest expense before impairment
104.9
98.6
98.3
97.5
94.5
6.4
11.0
Impairment write-down
----
72.3
----
----
----
(100.0)
----
Total noninterest expense
104.9
170.9
98.3
97.5
94.5
(38.6)
11.0
Income before income taxes and minority interest
73.5
0.1
74.2
68.5
70.8
N/M
3.8
Applicable income taxes
26.3
(5.0)
27.2
24.3
24.3
----
8.2
Net income before minority interest
47.2
5.1
47.0
44.2
46.5
N/M
1.5
Minority interest
(0.3)
(0.1)
0.1
0.1
----
200.0
----
Net income
$
47.5
$
5.2
$
46.9
$
44.1
$
46.5
N/M
2.2
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
YEAR-TO-DATE INCOME STATEMENT
Twelve Months Ended
Dec. 31,
Dec. 31,
%
(in millions)
2006
2005
Change
NET INTEREST INCOME
Interest income
$
674.8
$
516.6
30.6
Interest expense
311.7
187.7
66.1
Net interest income
363.1
328.9
10.4
Provision for loan losses
(21.3)
(11.8)
80.5
Net interest income after provision for loan losses
341.8
317.1
7.8
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services
Trust and investment advisory fees
136.1
123.9
9.8
Mutual fund fees
20.2
17.8
13.5
Planning and other services
35.7
30.4
17.4
Total Wealth Advisory Services
192.0
172.1
11.6
Corporate Client Services
Capital markets services
37.0
34.3
7.9
Entity management services
26.8
23.6
13.6
Retirement services
11.5
10.7
7.5
Investment/cash management services
10.3
7.7
33.8
Total Corporate Client Services
85.6
76.3
12.2
Cramer Rosenthal McGlynn
19.3
16.1
19.9
Roxbury Capital Management
1.2
1.4
(14.3)
Advisory fees
298.1
265.9
12.1
Amortization of affiliate other intangibles
(4.2)
(4.0)
5.0
Advisory fees after amortization of affiliate other intangibles
293.9
261.9
12.2
Service charges on deposit accounts
28.2
28.1
0.4
Other noninterest income
23.8
22.5
5.8
Securities gains
0.2
0.8
(75.0)
Total noninterest income
346.1
313.3
10.5
Net interest and noninterest income
687.9
630.4
9.1
NONINTEREST EXPENSE
Salaries and wages
154.4
139.8
10.4
Incentives and bonuses
39.8
38.0
4.7
Employment benefits
48.3
47.2
2.3
Net occupancy
25.7
22.4
14.7
Furniture, equipment, and supplies
38.3
34.7
10.4
Other noninterest expense:
Advertising and contributions
9.4
9.1
3.3
Servicing and consulting fees
10.4
10.2
2.0
Subadvisor expense
10.7
9.4
13.8
Travel, entertainment, and training
10.4
8.8
18.2
Originating and processing fees
11.1
10.5
5.7
Other expense
40.8
40.0
2.0
Total other noninterest expense
92.8
88.0
5.5
Total noninterest expense before impairment
399.3
370.1
7.9
Impairment write-down
72.3
----
----
Total noninterest expense
471.6
370.1
27.4
Income before income taxes and minority interest
216.3
260.3
(16.9)
Applicable income taxes
72.7
93.0
(21.8)
Net income before minority interest
143.6
167.3
(14.2)
Minority interest
(0.2)
0.3
----
Net income
$
143.8
$
167.0
(13.9)
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
COMPARISON OF RESULTS WITH AND WITHOUT THE IMPAIRMENT WRITE-DOWN
Three months ended December 31, 2006
Twelve months ended December 31, 2006
With
Without
With
Without
impairment
impairment
Impairment
impairment
impairment
Impairment
OPERATING RESULTS (in millions)
Net interest income
$
92.4
$
92.4
$
----
$
363.1
$
363.1
$
----
Provision for loan losses
(6.5)
(6.5)
----
(21.3)
(21.3)
----
Noninterest income
92.5
92.5
----
346.1
346.1
----
Noninterest expense
104.9
104.9
----
471.6
399.3
72.3
Income before taxes
and minority interest
73.5
73.5
----
216.3
288.6
(72.3)
Applicable income taxes
26.3
26.3
----
72.7
103.3
(30.6)
Net income before
minority interest
47.2
47.2
----
143.6
185.3
(41.7)
Minority interest
(0.3)
(0.3)
----
(0.2)
(0.2)
----
Net income
$
47.5
$
47.5
$
----
$
143.8
$
185.5
$
(41.7)
PER SHARE DATA
Diluted shares outstanding (in millions)
69.7
69.7
----
69.7
69.7
----
Per-share earnings
$
0.68
$
0.68
$
----
$
2.06
$
2.66
$
(0.60)
STATISTICS AND RATIOS (dollars in millions)
Total assets, on average
$
10,912.9
$
10,912.9
$
----
$
10,495.1
$
10,513.5
$
(18.4)
Stockholders' equity, on average
1,067.4
1,067.4
----
1,059.1
1,069.7
(10.6)
Return on average assets
1.73%
1.73%
----
1.37%
1.76%
(0.39)%
Return on equity
17.66%
17.66%
----
13.58%
17.34%
(3.76)%
Net interest before provision and noninterest income
$
184.9
$
184.9
$
----
$
709.2
$
709.2
$
----
Tax equivalent interest income
1.1
1.1
----
4.3
4.3
----
$
186.0
$
186.0
$
----
$
713.5
$
713.5
$
----
Noninterest expense
$
104.9
$
104.9
$
----
$
471.6
$
399.3
$
72.3
Efficiency ratio
56.40%
56.40%
----
66.10%
55.96%
10.13%
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
STATEMENT OF CONDITION
% Change From
Dec. 31, 2006
Sept. 30, 2006
June 30, 2006
Mar. 31, 2006
Dec. 31, 2005
Prior Quarter
Prior Year
(in millions)
ASSETS
Cash and due from banks
$
249.7
$
268.4
$
258.5
$
219.2
$
264.0
(7.0)
(5.4)
Federal funds sold and securities purchased under agreements to
resell
68.9
38.4
66.7
44.9
14.3
79.4
381.8
Investment securities:
U.S. Treasury
125.2
230.8
181.4
136.8
161.1
(45.8)
(22.3)
Government agencies
807.1
533.0
416.5
394.5
410.8
51.4
96.5
Obligations of state and political subdivisions
9.5
9.4
10.4
10.5
11.0
1.1
(13.6)
Preferred stock
90.5
91.0
88.1
90.2
90.6
(0.5)
(0.1)
Mortgage-backed securities
689.5
726.8
751.0
806.4
852.1
(5.1)
(19.1)
Other securities
392.8
391.3
389.8
401.9
403.2
0.4
(2.6)
Total investment securities
2,114.6
1,982.3
1,837.2
1,840.3
1,928.8
6.7
9.6
Loans:
Commercial, financial, and agricultural
2,533.5
2,378.1
2,445.5
2,445.9
2,461.3
6.5
2.9
Real estate - construction
1,663.9
1,610.9
1,574.3
1,411.9
1,233.9
3.3
34.8
Mortgage - commercial
1,296.1
1,254.5
1,222.8
1,245.4
1,223.9
3.3
5.9
Total commercial loans
5,493.5
5,243.5
5,242.6
5,103.2
4,919.1
4.8
11.7
Mortgage - residential
536.9
518.7
503.0
473.4
455.5
3.5
17.9
Consumer
1,517.0
1,489.7
1,452.4
1,408.5
1,438.3
1.8
5.5
Secured with liquid collateral
547.5
528.3
557.2
553.9
584.8
3.6
(6.4)
Total retail loans
2,601.4
2,536.7
2,512.6
2,435.8
2,478.6
2.6
5.0
Total loans net of unearned income
8,094.9
7,780.2
7,755.2
7,539.0
7,397.7
4.0
9.4
Reserve for loan losses
(94.2)
(93.6)
(94.3)
(93.6)
(91.4)
0.6
3.1
Net loans
8,000.7
7,686.6
7,660.9
7,445.4
7,306.3
4.1
9.5
Premises and equipment
150.3
151.6
151.2
148.7
147.6
(0.9)
1.8
Goodwill
291.4
291.1
363.0
348.5
348.3
0.1
(16.3)
Other intangibles
35.4
38.8
38.9
35.0
36.2
(8.8)
(2.2)
Other assets
246.0
251.9
236.9
200.2
199.9
(2.3)
23.1
Total assets
$
11,157.0
$
10,709.1
$
10,613.3
$
10,282.2
$
10,245.4
4.2
8.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand
$
913.6
$
861.3
$
813.8
$
830.2
$
1,014.8
6.1
(10.0)
Interest-bearing:
Savings
313.8
292.5
313.1
328.0
326.3
7.3
(3.8)
Interest-bearing demand
2,560.6
2,417.5
2,355.9
2,352.1
2,360.0
5.9
8.5
Certificates under $100,000
1,012.6
995.5
991.1
960.4
923.0
1.7
9.7
Local certificates $100,000 and over
474.4
574.7
550.6
513.3
436.5
(17.5)
8.7
Total core deposits
5,275.0
5,141.5
5,024.5
4,984.0
5,060.6
2.6
4.2
National certificates $100,000 and over
3,054.1
2,742.7
2,760.6
2,707.2
2,228.6
11.4
37.0
Total deposits
8,329.1
7,884.2
7,785.1
7,691.2
7,289.2
5.6
14.3
Short-term borrowings:
Federal funds purchased and securities sold under agreements to
repurchase
1,145.8
1,161.7
1,160.0
984.2
1,355.6
(1.4)
(15.5)
U.S. Treasury demand
13.0
7.0
24.5
0.6
18.1
85.7
(28.2)
Total short-term borrowings
1,158.8
1,168.7
1,184.5
984.8
1,373.7
(0.8)
(15.6)
Other liabilities
221.3
196.4
183.1
169.4
164.2
12.7
34.8
Long-term debt
388.5
395.2
393.4
393.2
400.4
(1.7)
(3.0)
Total liabilities
10,097.7
9,644.5
9,546.1
9,238.6
9,227.5
4.7
9.4
Minority interest
----
0.3
0.3
0.3
0.2
(100.0)
(100.0)
Stockholders' equity
1,059.3
1,064.3
1,066.9
1,043.3
1,017.7
(0.5)
4.1
Total liabilities and stockholders' equity
$
11,157.0
$
10,709.1
$
10,613.3
$
10,282.2
$
10,245.4
4.2
8.9
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
AVERAGE STATEMENT OF CONDITION
2006 Fourth Quarter
2006 Third Quarter
2006 Second Quarter
2006 First Quarter
2005 Fourth Quarter
% Change From
Prior
Prior
(in millions)
Quarter
Year
ASSETS
Cash and due from banks
$
218.2
$
206.9
$
209.3
$
208.0
$
237.8
5.5
(8.2)
Federal funds sold and securities purchased under agreements to
resell
144.8
28.8
18.8
17.5
40.2
402.8
260.2
Investment securities:
U.S. Treasury
177.4
157.0
146.7
144.6
133.5
13.0
32.9
Government agencies
642.1
475.9
394.1
400.8
406.4
34.9
58.0
Obligations of state and political subdivisions
9.4
9.6
10.5
10.5
11.1
(2.1)
(15.3)
Preferred stock
90.7
89.4
89.2
91.4
90.0
1.5
0.8
Mortgage-backed securities
705.5
735.1
780.1
828.4
878.6
(4.0)
(19.7)
Other securities
392.5
390.0
397.3
403.2
387.4
0.6
1.3
Total investment securities
2,017.6
1,857.0
1,817.9
1,878.9
1,907.0
8.6
5.8
Loans:
Commercial, financial, and agricultural
2,430.5
2,407.7
2,463.5
2,448.1
2,465.9
0.9
(1.4)
Real estate - construction
1,634.9
1,588.7
1,517.5
1,322.0
1,161.6
2.9
40.7
Mortgage - commercial
1,281.4
1,238.5
1,212.8
1,229.8
1,239.7
3.5
3.4
Total commercial loans
5,346.8
5,234.9
5,193.8
4,999.9
4,867.2
2.1
9.9
Mortgage - residential
524.8
507.8
484.2
463.3
450.8
3.3
16.4
Consumer
1,496.1
1,470.5
1,441.6
1,423.9
1,412.5
1.7
5.9
Secured with liquid collateral
545.2
546.1
556.3
558.2
614.4
(0.2)
(11.3)
Total retail loans
2,566.1
2,524.4
2,482.1
2,445.4
2,477.7
1.7
3.6
Total loans net of unearned income
7,912.9
7,759.3
7,675.9
7,445.3
7,344.9
2.0
7.7
Reserve for loan losses
(91.6)
(93.5)
(91.8)
(90.4)
(93.5)
(2.0)
(2.0)
Net loans
7,821.3
7,665.8
7,584.1
7,354.9
7,251.4
2.0
7.9
Premises and equipment
151.5
152.1
150.3
148.5
147.6
(0.4)
2.6
Goodwill
290.7
362.3
357.3
348.3
344.4
(19.8)
(15.6)
Other intangibles
38.1
38.5
37.3
35.6
39.7
(1.0)
(4.0)
Other assets
230.7
210.8
190.0
180.3
172.1
9.4
34.0
Total assets
$
10,912.9
$
10,522.2
$
10,365.0
$
10,172.0
$
10,140.2
3.7
7.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand
$
793.6
$
737.2
$
742.0
$
763.5
$
1,017.4
7.7
(22.0)
Interest-bearing:
Savings
294.7
304.1
321.2
326.0
325.9
(3.1)
(9.6)
Interest-bearing demand
2,374.7
2,374.1
2,364.4
2,346.8
2,321.2
----
2.3
Certificates under $100,000
1,009.3
988.1
980.9
938.6
901.5
2.1
12.0
Local certificates $100,000 and over
535.8
546.5
540.0
463.3
446.6
(2.0)
20.0
Total core deposits
5,008.1
4,950.0
4,948.5
4,838.2
5,012.6
1.2
(0.1)
National certificates $100,000 and over
3,042.2
2,864.6
2,656.1
2,647.7
2,475.4
6.2
22.9
Total deposits
8,050.3
7,814.6
7,604.6
7,485.9
7,488.0
3.0
7.5
Short-term borrowings:
Federal funds purchased and securities sold under agreements to
repurchase
1,221.4
1,048.8
1,146.0
1,082.0
1,098.0
16.5
11.2
U.S. Treasury demand
10.0
6.8
16.0
11.7
7.7
47.1
29.9
Total short-term borrowings
1,231.4
1,055.6
1,162.0
1,093.7
1,105.7
16.7
11.4
Other liabilities
172.5
175.7
144.8
166.7
163.3
(1.8)
5.6
Long-term debt
391.1
394.2
393.3
399.0
400.0
(0.8)
(2.2)
Total liabilities
9,845.3
9,440.1
9,304.7
9,145.3
9,157.0
4.3
7.5
Minority interest
0.2
0.4
0.3
0.3
0.2
(50.0)
----
Stockholders' equity
1,067.4
1,081.7
1,060.0
1,026.4
983.0
(1.3)
8.6
Total liabilities and stockholders' equity
$
10,912.9
$
10,522.2
$
10,365.0
$
10,172.0
$
10,140.2
3.7
7.6
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
YIELDS AND RATES
YIELDS/RATES (tax-equivalent basis)
2006FourthQuarter
2006ThirdQuarter
2006SecondQuarter
2006FirstQuarter
2005FourthQuarter
EARNING ASSETS:
Federal funds sold and securities
purchased under agreements to resell
5.16
%
4.55
%
4.93
%
4.11
%
4.02
%
U.S. Treasury
4.00
4.06
3.53
3.38
3.27
Government agencies
4.54
4.23
3.93
3.95
3.95
Obligations of state and political subdivisions
8.86
8.75
8.79
8.77
8.78
Preferred stock
7.76
7.63
7.60
7.60
7.58
Mortgage-backed securities
4.21
4.05
4.16
4.17
4.10
Other securities
6.48
6.42
6.14
5.52
5.32
Total investment securities
4.91
4.78
4.67
4.53
4.44
Commercial, financial, and agricultural
7.92
7.96
7.61
7.24
6.80
Real estate - construction
8.56
8.60
8.26
7.90
7.39
Mortgage - commercial
7.99
7.98
7.71
7.34
6.96
Total commercial loans
8.13
8.16
7.82
7.44
6.97
Mortgage - residential
5.81
5.81
5.77
5.84
5.82
Consumer
7.38
7.31
7.09
6.85
6.60
Secured with liquid collateral
6.77
6.78
6.36
5.89
5.38
Total retail loans
6.93
6.89
6.67
6.44
6.16
Total loans
7.74
7.75
7.45
7.11
6.70
Total earning assets
7.13
7.15
6.90
6.58
6.22
FUNDS USED TO SUPPORT EARNING ASSETS:
Savings
0.51
0.42
0.39
0.32
0.30
Interest-bearing demand
1.31
1.10
1.04
1.02
0.95
Certificates under $100,000
4.22
3.87
3.51
3.27
2.96
Local certificates $100,000 and over
4.74
4.65
4.29
3.89
3.53
Core interest-bearing deposits
2.39
2.16
1.98
1.81
1.64
National certificates $100,000 and over
5.38
5.30
4.98
4.47
4.01
Total interest-bearing deposits
3.64
3.43
3.15
2.86
2.55
Federal funds purchased and securities sold under agreements to
repurchase
4.96
4.98
4.67
4.19
3.80
U.S. Treasury demand
4.96
5.09
4.74
4.21
4.22
Total short-term borrowings
4.96
4.98
4.67
4.20
3.80
Long-term debt
6.82
6.85
6.69
6.26
6.01
Total interest-bearing liabilities
3.97
3.78
3.52
3.20
2.89
Total funds used to support earning assets
3.48
3.32
3.10
2.81
2.48
Net interest margin (tax-equivalent basis)
3.65
3.83
3.80
3.77
3.74
Year-to-date net interest margin
3.79
3.80
3.79
3.77
3.71
Prime rate
8.25
8.25
7.90
7.43
6.97
Tax-equivalent net interest income (in millions)
$
93.5
$
94.1
$
91.5
$
88.3
$
88.5
Average earning assets
10,075.3
9,645.1
9,512.6
9,341.7
9,292.1
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, 2006
SUPPLEMENTAL INFORMATION
Three Months Ended
% Change From:
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Prior
Prior
2006
2006
2006
2006
2005
Quarter
Year
NET INCOME
Net income per share
Basic
$
0.69
$
0.08
$
0.69
$
0.65
$
0.69
N/M
----
Diluted
0.68
0.07
0.67
0.64
0.67
N/M
1.5
Weighted average shares outstanding (in thousands)
Basic
68,455
68,647
68,475
68,070
67,861
Diluted
69,680
69,933
69,776
69,434
68,956
Net income as a percentage of:
Average assets
1.73
%
0.20
%
1.81
%
1.76
%
1.82
%
Average stockholders' equity
17.66
1.91
17.75
17.42
18.77
ASSETS UNDER MANAGEMENT * (in billions)
Wilmington Trust
$
29.0
$
27.2
$
26.4
$
27.2
$
26.0
6.6
11.5
Roxbury Capital Management
3.1
3.1
3.3
3.5
3.3
----
(6.1)
Cramer Rosenthal McGlynn
10.6
9.8
9.4
9.7
8.9
8.2
19.1
Combined assets under management
$
42.7
$
40.1
$
39.1
$
40.4
$
38.2
6.5
11.8
* 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
$
105.3
$
100.5
$
100.7
$
102.1
$
100.9
4.8
4.4
** Includes Wilmington Trust assets under management
FULL-TIME EQUIVALENT HEADCOUNT
Full-time equivalent headcount
2,562
2,520
2,515
2,475
2,469
CAPITAL (in millions, except per share amounts)
Average stockholders' equity
$
1,067.4
$
1,081.7
$
1,060.0
$
1,026.4
$
983.0
(1.3)
8.6
Period-end primary capital
1,153.5
1,157.9
1,161.2
1,136.9
1,109.1
(0.4)
4.0
Per share:
Book value
15.47
15.55
15.54
15.30
14.99
(0.5)
3.2
Quarterly dividends declared
0.315
0.315
0.315
0.30
0.30
----
5.0
Year-to-date dividends declared
1.245
0.93
0.615
0.30
1.185
Average stockholders' equity to assets
9.78
%
10.28
%
10.23
%
10.09
%
9.69
%
Total risk-based capital ratio
12.11
12.32
11.70
12.10
11.84
Tier 1 risk-based capital ratio
8.25
8.28
7.67
7.70
7.43
Tier 1 leverage capital ratio
7.39
7.34
6.98
6.94
6.69
CREDIT QUALITY (in millions)
Period-end reserve for loan losses
$
94.2
$
93.6
$
94.3
$
93.6
$
91.4
Period-end nonperforming assets:
Nonaccrual
31.0
32.0
29.5
35.5
39.3
OREO
4.8
4.8
4.8
0.2
0.2
Renegotiated loans
----
----
9.9
4.9
4.7
Period-end past due 90 days
5.8
7.7
4.7
10.1
4.1
Gross charge-offs
7.1
8.6
5.7
3.2
7.8
Recoveries
1.2
1.3
2.2
1.4
3.8
Net charge-offs
5.9
7.3
3.5
1.8
4.0
Year-to-date net charge-offs
18.5
12.6
5.3
1.8
10.1
Ratios:
Period-end reserve to loans
1.16
%
1.20
%
1.22
%
1.24
%
1.24
%
Period-end non-performing assets to loans
0.44
0.47
0.57
0.54
0.60
Period-end loans past due 90 days to total loans
0.07
0.10
0.06
0.13
0.06
Net charge-offs to average loans
0.07
0.09
0.05
0.02
0.05
INTERNAL RISK RATING
Pass
97.39
%
97.41
%
97.28
%
97.20
%
97.24
%
Watchlisted
1.82
1.73
1.89
1.97
1.96
Substandard
0.79
0.86
0.76
0.76
0.73
Doubtful
----
----
0.07
0.07
0.07
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
QUARTERLY BUSINESS SEGMENT REPORT
Three Months Ended
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
(in millions)
2006
2006
2006
2006
2005
REGIONAL BANKING
Net interest income
$
84.4
$
85.7
$
83.9
$
81.0
$
79.9
Provision for loan losses
(6.4)
(6.7)
(3.7)
(3.8)
(1.9)
Noninterest income
13.6
13.1
13.1
12.1
12.5
Noninterest expense
41.1
39.9
38.5
39.1
39.5
Income before taxes & minority interest
50.5
52.2
54.8
50.2
51.0
Regional Banking efficiency ratio
41.56%
40.02%
39.33%
41.60%
42.38%
WEALTH ADVISORY SERVICES
Net interest income
$
6.6
$
6.4
$
6.3
$
6.5
$
6.8
Provision for loan losses
(0.1)
0.1
(0.5)
(0.2)
(0.1)
Noninterest income
47.7
43.6
44.5
43.4
39.7
Noninterest expense
41.6
38.8
40.5
38.4
36.7
Income before taxes & minority interest
12.6
11.3
9.8
11.3
9.7
Wealth Advisory Services efficiency ratio
76.47%
77.45%
79.57%
76.80%
78.76%
CORPORATE CLIENT SERVICES
Net interest income
$
4.3
$
4.4
$
3.4
$
2.8
$
3.6
Provision for loan losses
----
----
----
----
----
Noninterest income
26.1
23.6
23.1
22.5
22.9
Noninterest expense
22.2
19.9
19.3
20.0
18.3
Income before taxes & minority interest
8.2
8.1
7.2
5.3
8.2
Corporate Client Services efficiency ratio
72.79%
70.82%
72.56%
79.05%
68.80%
AFFILIATE MANAGERS *
Net interest income
$
(2.9)
$
(3.5)
$
(3.2)
$
(3.0)
$
(2.8)
Provision for loan losses
----
----
----
----
----
Noninterest income
5.1
4.3
5.6
4.7
4.7
Noninterest expense
----
72.3
----
----
----
Income before taxes & minority interest
2.2
(71.5)
2.4
1.7
1.9
TOTAL WILMINGTON TRUST CORPORATION
Net interest income
$
92.4
$
93.0
$
90.4
$
87.3
$
87.5
Provision for loan losses
(6.5)
(6.6)
(4.2)
(4.0)
(2.0)
Noninterest income
92.5
84.6
86.3
82.7
79.8
Noninterest expense
104.9
170.9
98.3
97.5
94.5
Income before taxes & minority interest
$
73.5
$
0.1
$
74.2
$
68.5
$
70.8
Corporation efficiency ratio
56.40%
95.64%
55.29%
57.02%
56.15%
* 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 as well as the adjustment for the adoption of the accounting
pronouncement for stock-based compensation expense.
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the twelve months ended December 31, 2006
YEAR-TO-DATE BUSINESS SEGMENT REPORT
Twelve Months Ended
Dec. 31,
Dec. 31,
$
%
(in millions)
2006
2005
Change
Change
REGIONAL BANKING
Net interest income
$
334.9
$
303.1
$
31.8
10.5
%
Provision for loan losses
(20.5)
(11.2)
9.3
83.0
Noninterest income
52.0
51.1
0.9
1.8
Noninterest expense
158.5
152.2
6.3
4.1
Income before taxes & minority interest
207.9
190.8
17.1
9.0
Regional Banking efficiency ratio
40.57%
42.56%
WEALTH ADVISORY SERVICES
Net interest income
$
25.7
$
24.1
$
1.6
6.6
%
Provision for loan losses
(0.8)
(0.6)
0.2
33.3
Noninterest income
179.2
160.8
18.4
11.4
Noninterest expense
159.3
144.4
14.9
10.3
Income before taxes & minority interest
44.8
39.9
4.9
12.3
Wealth Advisory Services efficiency ratio
77.63%
77.97%
CORPORATE CLIENT SERVICES
Net interest income
$
15.0
$
11.4
$
3.6
31.6
%
Provision for loan losses
----
----
----
----
Noninterest income
95.3
84.5
10.8
12.8
Noninterest expense
81.4
73.5
7.9
10.7
Income before taxes & minority interest
28.9
22.4
6.5
29.0
Corporate Client Services efficiency ratio
73.67%
76.48%
AFFILIATE MANAGERS *
Net interest income
$
(12.5)
$
(9.7)
$
(2.8)
(28.9)
%
Provision for loan losses
----
----
----
----
Noninterest income
19.6
16.9
2.7
16.0
Noninterest expense
72.4
----
72.4
----
Income before taxes & minority interest
(65.3)
7.2
(72.5)
----
TOTAL WILMINGTON TRUST CORPORATION
Net interest income
$
363.1
$
328.9
$
34.2
10.4
%
Provision for loan losses
(21.3)
(11.8)
9.5
80.5
Noninterest income
346.1
313.3
32.8
10.5
Noninterest expense
471.6
370.1
101.5
27.4
Income before taxes & minority interest
$
216.3
$
260.3
$
(44.0)
(16.9)
%
Corporation efficiency ratio
66.10%
57.28%
* 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 as well as the adjustment for the adoption of the accounting
pronouncement for stock-based compensation expense.