Wilmington (NYSE:WL)
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From Jul 2019 to Jul 2024
Wilmington Trust Corporation (NYSE: WL) reported a loss of $19.5
million, or $0.29 per share, for the 2008 second quarter. Two events
caused this loss:
Business conditions at affiliate money manager Roxbury Capital
Management (RCM) led to a decline of $66.9 million in the value of
Wilmington Trust’s investment in the firm.
This amount, which was recorded as a non-cash impairment expense,
reduced net income by $43.5 million, or $0.64 per share (on a diluted
basis). Wilmington Trust previously disclosed this charge in a June
19, 2008, filing with the Securities and Exchange Commission.
The carrying value of preferred stocks in Wilmington Trust’s
investment securities portfolio decreased by $12.6 million. Most of
this decrease was in the carrying value of securities issued by the
Federal National Mortgage Association (Fannie Mae) and the Federal
Home Loan Mortgage Corporation (Freddie Mac). This $12.6 million
reduction, which was recorded as a securities loss, reduced net income
by $8.0 million, or $0.12 per share (diluted).
“These charges were a function of
extraordinarily unsettled equity markets,”
said Ted T. Cecala, Wilmington Trust chairman and chief executive
officer. “They overshadow very strong
commercial and consumer loan growth, higher revenue from Corporate
Client Services and Wealth Advisory Services, and other positive aspects
of our second quarter results and ongoing operations.”
On an operating basis (excluding the two charges), net income for the
2008 second quarter was $32.0 million, or $0.47 per share (diluted).
Management believes that operating results –
those that exclude the effects of the two write-downs –
present a more relevant measure of ongoing business trends and offer a
better basis of comparison with prior periods. The financial statements
in this report include a reconciliation of results that include the
securities loss and RCM impairment expense (reported results) with those
that do not (operating results).
For the first six months of 2008, results were positive. Reported net
income and earnings were $21.9 million and $0.33 per share (diluted),
respectively. Operating net income and earnings were $73.4 million and
$1.09 per share (diluted), respectively.
Wilmington Trust’s capital position remained
strong. All regulatory capital ratios continued to exceed the amounts
required by the Federal Reserve Board to be considered a
well-capitalized institution. The two impairment charges did not affect
client funds or the company’s ability to pay
dividends.
On July 17, 2008, the Board of Directors declared a regular quarterly
cash dividend of $0.345 per share. This amount reflects the 3% increase
the Board approved in April 2008, which marked the 27th consecutive year
that Wilmington Trust has raised its cash dividend. The quarterly
dividend will be paid on August 15, 2008, to stockholders of record on
August 1, 2008.
Significant factors in second quarter
2008 results
The Regional Banking business added $483.0 million of loans during the
2008 second quarter. This was the largest three-month increase in the
company’s history. Loan balances topped $9
billion for the first time, on both a period-end and average-balance
basis. Loan growth reflected the resilience of the well-diversified
economy in the mid-Atlantic region, which has not experienced the
levels of unemployment and housing pressure seen in some other parts
of the United States.
Corporate Client Services (CCS) revenue rose 22% from the first
quarter and 28% from the year-ago second quarter, with all components
of the business contributing to the growth. Capital markets revenue
was up 5% from the first quarter and 9% from the year-ago second
quarter, as increasing demand for bankruptcy and corporate
restructuring services helped counter continued weakness in capital
markets activity.
CCS retirement services revenue more than doubled from prior periods
due to the acquisition of AST Capital Trust Company. Second quarter
2008 results reflected two months of revenue from this acquisition,
which closed on April 30, 2008.
Wealth Advisory Services revenue (WAS) increased 4% from the first
quarter and 8% from the year-ago second quarter, due largely to
continued growth in family office services as well as the June 2007
expansion into Boston.
New business, especially from Boston, helped WAS trust and investment
advisory revenue (the portion of WAS revenue that is based on the
market values of investments in client portfolios) increase 3% from
the 2008 first quarter and 5% from the year-ago second quarter. The
full effect of this revenue growth was masked by equity market
declines in the corresponding periods. For example, the Standard & Poor’s
500 Index was 3% lower than at March 31, 2008, and 15% lower than at
June 30, 2007. Management uses the S&P 500 as a benchmark for
comparison because its composition mirrors, to a large extent, the
equities in client portfolios.
Advisory business revenue – revenue from
CCS, WAS, and affiliate money manager Cramer Rosenthal McGlynn –
accounted for 53% of total net interest and noninterest income
(excluding securities losses and after amortization and the provision
for loan losses). Advisory business revenue combined with
banking-related fee revenue accounted for 61% of total net interest
and noninterest income.
Operating expenses (excluding the impairment charges) and the increase
in the number of staff members reflected expansion investments made
over the past 12 months, including the June 2007 acquisitions in
Boston and Luxembourg, the AST Capital Trust Company acquisition, and
the addition of Regional Banking staff in Baltimore.
These factors were offset by:
The two impairment charges.
Net charge-offs and nonperforming asset levels that caused the
provision for loan losses to increase to $18.5 million from $10.0
million for the 2008 first quarter.
Compression in the net interest margin, which fell to 3.17% due to the
market interest rate environment.
A $1.1 million loss associated with RCM.
Roxbury Capital Management impairment
charge
The RCM impairment charge resulted from changes in business conditions
at RCM that necessitated a reassessment of the valuation of Wilmington
Trust’s investment in the firm. These
changes, which became apparent in the 2008 second quarter, included a
decline in assets under management, lower-than-expected operating
performance, and projections that RCM would incur a loss for the 2008
second quarter.
The valuation reassessment, conducted as an impairment test under U.S.
generally accepted accounting principles (GAAP), determined that the RCM
valuation had declined from $89.1 million to $22.2 million. The decrease
in valuation – $66.9 million –
was recorded as a non-cash expense for the 2008 second quarter.
The impairment charge did not affect Wilmington Trust's ownership
position in RCM, which consists of 41.23% of RCM's common shares and
100% of RCM's preferred interests, which entitles Wilmington Trust to a
preferred profits interest equal to 30% of RCM's revenues.
“Following the burst of the technology stock
bubble, and with continued volatility in the financial markets, the
operating environment has been challenging for most growth-style
managers, including Roxbury,” said Mr.
Cecala. “While RCM’s
mid-cap fund has experienced asset outflows, the firm has developed new
products that are attracting assets, and early performance indicators
are promising. We remain confident in Roxbury’s
leadership and the firm’s long-term prospects
for profitability.”
Investment securities impairment
Wilmington Trust maintains an investment securities portfolio for its
own account to generate cash flow, to help manage interest rate risk,
and to provide collateral for deposits and other liabilities. There are
no client funds in this portfolio.
Perpetual preferred stocks that are held as available for sale comprise
approximately 3% of the investment securities portfolio, which totaled
$1.53 billion at June 30, 2008. As of that date, the value of Wilmington
Trust’s investments in these preferred stocks
had decreased from $54.3 million to $41.7 million. Most of this decrease
was in preferred stocks issued by Fannie Mae, Freddie Mac, and two other
financial institutions.
Sharp declines in the market valuations of these stocks, coupled with
uncertainty about future market conditions, led management to determine
that these stocks had become “other than
temporarily impaired” under GAAP. The amount
of the decrease – $12.6 million –
was recorded as a securities loss for the 2008 second quarter.
While the value of these investments has declined, management intends to
retain them in the portfolio because they pay dividends, they have
investment-grade credit ratings, and their valuations are expected to
normalize over the course of market cycles.
Credit quality in the 2008 second
quarter
No negative systemic credit quality trends emerged during the second
quarter, but the combination of loan growth and downgrades in the
internal risk rating analysis caused the provision and reserve for loan
losses to increase.
Total nonperforming assets increased to $88.5 million from $77.7 million
at March 31, 2008. Three credits – a
commercial construction loan, a loan to a retailer, and a loan to a
textile manufacturer – accounted for the
majority of this $10.8 million increase. The nonperforming asset ratio
was 95 basis points, the same as at year-end 2007.
Within nonperforming assets, two loans moved from renegotiated to
nonaccruing status. One of these was a commercial construction loan for
a single family/townhome development in Sussex County, Delaware. As part
of this loan’s transfer to nonaccruing
status, $3.6 million was charged off. The other transferred loan was a
retail loan.
Nonperforming assets included other real estate owned (OREO) of $16.7
million, an amount that represents the net realizable value of the
underlying assets. Two loans that had been nonaccruing since the 2007
third quarter accounted for most of the OREO increase, as Wilmington
Trust obtained control of them through foreclosure:
An income-producing hotel and retail property in Ocean City, Maryland,
which accounted for approximately $9.2 million of the second quarter
increase in OREO.
A luxury home development in Montgomery County, Pennsylvania. In the
2008 second quarter, approximately $4.5 million associated with this
property was classified as OREO and approximately $1.4 million was
charged off. Since Wilmington Trust’s
foreclosure, contracts have been signed on four of this development’s
14 remaining properties.
Three smaller properties in the mid-Atlantic region accounted for the
remainder of the increase in OREO.
Most of the net charge-offs in the second quarter were associated with
the nonperforming assets mentioned above. The net charge-off ratio was
13 basis points, an increase of 8 basis points from the 2008 first
quarter. For the first six months of 2008, the net charge-off ratio was
19 basis points, or 38 basis points on an annualized basis.
Given the unpredictability of commercial loan charge-offs, management
does not believe the 2008 second quarter net charge-off ratio indicates
a trend, and expects the net charge-off ratio to remain within its
historical range of 24 to 31 basis points over a 12-month period.
Several factors make commercial loan charge-offs unpredictable:
Negotiations with commercial borrowers can affect the timing and
extent of charge-offs, or avert them altogether.
Associated legal proceedings can also affect the timing and extent of
charge-offs.
Loans past due 90 days or more increased from $14.6 million at March 31,
2008, to $21.8 million. Three loans -- a commercial loan to a chemical
manufacturer, a commercial construction loan to a tubing manufacturer,
and a commercial mortgage loan to a retailer -- accounted for most of
this increase.
Nonperforming asset levels and the substantial growth in loan balances
drove the increase in the provision for loan losses to $18.5 million
from $10.0 million for the 2008 first quarter. Loan growth accounted for
approximately $4.8 million of the 2008 second quarter provision.
Charge-offs and downgrades in the internal risk rating analysis
accounted for the remainder.
The reserve for loan losses increased to $113.1 million from $106.4
million at March 31, 2008. The loan loss reserve ratio increased 1 basis
point from the 2008 first quarter to 1.22%.
The percentage of loans with pass ratings in the internal risk rating
analysis improved to 96.28% from 95.62% at March 31, 2008, largely due
to loan growth.
On a percentage basis, the composition of the loan portfolio remained
well diversified and relatively unchanged. Additional disclosures about
credit quality appear in the financial statement section of this release.
Net interest margin
The net interest margin was 3.17%. This was 20 basis points lower than
for the 2008 first quarter and 56 basis points lower than for the
year-ago second quarter. This compression caused net interest income to
decrease from prior periods, even though loan balances were
significantly higher.
The margin was affected by Federal Open Market Committee (FOMC)
reductions in short-term interest rates coupled with Wilmington Trust’s
asset sensitivity.
Between late September 2007 and May 2008, the FOMC reduced rates seven
times for a total of 325 basis points.
Since most of the company’s floating rate
loans reprice within 30 days of a rate change, downward loan pricing
adjustments began in the 2007 fourth quarter and continued in the
first half of 2008. Funding costs, however, typically take 90 to 120
days to reprice. Consequently, most of the corresponding decreases in
funding costs did not begin until the 2008 first quarter, and
continued to lag loan repricing for most of the second quarter.
Assuming the FOMC makes no additional downward moves, management expects
the pace of compression in the margin to slow substantially in the third
quarter and stabilize in the fourth quarter. A rising interest rate
environment would accelerate the stabilization and potentially improve
the margin. More information about asset/liability matching and funding
sources is in the supplemental financial statement in this release.
Additional Regional Banking details
Loan balances were 5% higher than for the 2008 first quarter, reaching
record highs of $9.28 billion on a period-end basis and $9.09 billion
on an average-balance basis.
Commercial loan balances exceeded $6 billion for the first time on an
average-balance basis, reaching $6.26 billion. This was 5% higher than
for the 2008 first quarter and 12% higher than for the year-ago second
quarter.
The Pennsylvania and Baltimore markets accounted for approximately 50%
of the increase in commercial loan balances, with the rest coming
mainly from the Delaware market.
Most of the commercial loans added during the 2008 second quarter were
non-real estate loans and commercial mortgage loans. Most of the
increase in commercial mortgages came from existing clients who, until
recent changes in the credit markets, had found more favorable
financing terms with specialty mortgage lenders.
In the retail loan portfolio, consumer loan balances exceeded $1.7
billion for the first time on both a period-end and average-balance
basis. On average, consumer loan balances were 5% higher than for the
2008 first quarter and 15% higher than for the year-ago second quarter.
Indirect auto loans and home equity lines of credit accounted for most
of the increase in consumer loans, and most of the growth was from
clients in Delaware.
Core deposits, on average, reached $5.38 billion, which was 4% higher
than for the 2008 first quarter and 6% higher than for the year-ago
second quarter. Noninterest-bearing demand deposits and savings
deposits accounted for most of this growth.
The Regional Banking business continued to benefit from the relative
health and stability of the mid-Atlantic economy. Delaware’s
unemployment rate for May 2008 (the most recent data available) was
4.2%, compared with the U.S. average of 5.5%. Unemployment rates in
Pennsylvania, New Jersey, and Maryland were also below the U.S.
average.
In Delaware’s housing market, the pace of
existing home sales decreased, but median sales prices of existing
homes held steady.
Conference call
Management will discuss 2008 second quarter results and outlook for the
future in a conference call today at 10:00 a.m. (Eastern). Supporting
materials, financial statements, and audio streaming will be available
at www.wilmingtontrust.com.
Dial-in information:
From inside the United States: (888) 459-5609
From outside the United States: (973) 321-1024
Conference identification number: 51675313
A rebroadcast of the call will be available from 12:00 p.m. (Eastern)
today until 12:00 a.m. (Eastern) on Friday, July 25, by calling (800)
642-1687 inside the United States or (706) 645-9291 outside the United
States. Use conference identification number 51675313 to access the
rebroadcast.
Forward-looking statements
This report 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 Arizona, 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 six months ended June 30, 2008
HIGHLIGHTS
Three Months Ended
Six Months Ended
June 30,
June 30,
%
June 30,
June 30,
%
2008
2007
Change
2008
2007
Change
OPERATING RESULTS
(in millions)
Net interest income
$
85.2
$
92.8
(8.2
)
$
172.1
$
183.7
(6.3
)
Provision for loan losses
(18.5
)
(6.5
)
184.6
(28.4
)
(10.1
)
181.2
Noninterest income
93.2
96.9
(3.8
)
195.9
188.4
4.0
Noninterest expense
188.5
106.0
77.8
304.0
216.4
40.5
Net income
(19.5
)
48.9
----
21.9
91.8
(76.1
)
PER SHARE DATA
Basic net income
$
(0.29
)
$
0.71
----
$
0.33
$
1.34
(75.4
)
Diluted net income
(0.29
)
0.70
----
0.33
1.32
(75.0
)
Dividends paid
0.345
0.335
3.0
0.68
0.65
4.6
Book value at period end
15.85
15.77
0.5
15.85
15.77
0.5
Closing price at period end
26.44
41.51
(36.3
)
26.44
41.51
(36.3
)
Market range:
High
35.17
43.14
(18.5
)
35.50
44.55
(20.3
)
Low
26.26
39.62
(33.7
)
26.26
39.62
(33.7
)
AVERAGE SHARES
OUTSTANDING
(in thousands)
Basic
67,167
68,397
(1.8
)
67,117
68,464
(2.0
)
Diluted
67,167
69,435
(3.3
)
67,390
69,546
(3.1
)
AVERAGE BALANCE
SHEET (in millions)
Investment portfolio
$
1,598.5
$
1,859.0
(14.0
)
$
1,672.2
$
1,928.5
(13.3
)
Loans
9,085.9
8,156.3
11.4
8,861.3
8,114.4
9.2
Earning assets
10,812.0
10,059.9
7.5
10,627.6
10,097.4
5.3
Core deposits
5,377.5
5,062.4
6.2
5,269.1
5,020.6
4.9
Stockholders' equity
1,119.4
1,120.2
(0.1
)
1,122.4
1,091.3
2.8
STATISTICS AND RATIOS
(net income annualized)
Return on average
stockholders' equity
(7.01)
%
17.51
%
----
3.92
%
16.96
%
(76.9
)
Return on average assets
(0.66)
%
1.80
%
----
0.38
%
1.69
%
(77.5
)
Net interest margin
(taxable equivalent)
3.17
%
3.73
%
(15.0
)
3.27
%
3.70
%
(11.6
)
Dividend payout ratio
----
47.03
%
----
208.68
%
48.58
%
329.6
Full-time equivalent
headcount
2,879
2,597
10.9
2,879
2,597
10.9
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
QUARTERLY INCOME STATEMENT
Three Months Ended
% Change From
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Prior
Prior
(In millions)
2008
2008
2007
2007
2007
Quarter
Year
NET INTEREST INCOME
Interest income
$
150.0
$
162.4
$
177.9
$
183.4
$
180.8
(7.6
)
(17.0
)
Interest expense
64.8
75.5
86.8
89.3
88.0
(14.2
)
(26.4
)
Net interest income
85.2
86.9
91.1
94.1
92.8
(2.0
)
(8.2
)
Provision for loan
losses
(18.5
)
(10.0
)
(9.2
)
(8.9
)
(6.5
)
85.0
184.6
Net interest income
after provision
for loan losses
66.7
76.9
81.9
85.2
86.3
(13.3
)
(22.7
)
NONINTEREST INCOME
Advisory fees:
Wealth Advisory
Services
Trust and investment
advisory fees
40.2
39.2
42.9
40.5
38.4
2.6
4.7
Mutual fund fees
6.4
6.4
5.9
5.3
5.1
----
25.5
Planning and other
services
11.2
10.1
10.3
10.3
9.9
10.9
13.1
Total Wealth
Advisory
Services
57.8
55.7
59.1
56.1
53.4
3.8
8.2
Corporate
Client Services
Capital markets
services
12.2
11.6
11.4
10.2
11.2
5.2
8.9
Entity management
services
8.6
7.9
8.1
7.4
7.4
8.9
16.2
Retirement services
7.5
3.2
3.3
3.0
3.2
134.4
134.4
Investment / cash
management services
3.4
3.3
3.4
3.0
3.0
3.0
13.3
Total Corporate
Client
Services
31.7
26.0
26.2
23.6
24.8
21.9
27.8
Cramer Rosenthal
McGlynn
5.5
4.0
5.5
4.2
6.3
37.5
(12.7
)
Roxbury Capital
Management
(1.1
)
0.3
0.4
0.4
0.2
----
----
Advisory fees
93.9
86.0
91.2
84.3
84.7
9.2
10.9
Amortization of
affiliate
intangibles
(2.0
)
(1.2
)
(1.3
)
(1.2
)
(1.1
)
66.7
81.8
Advisory fees
after amortization
of affiliate
intangibles
91.9
84.8
89.9
83.1
83.6
8.4
9.9
Service charges
on deposit accounts
7.5
7.6
7.3
7.2
7.0
(1.3
)
7.1
Other noninterest
income
6.3
10.4
5.3
4.7
6.2
(39.4
)
1.6
Securities gains / (losses)
(12.5
)
----
0.2
(0.2
)
0.1
----
----
Total noninterest
income
93.2
102.8
102.7
94.8
96.9
(9.3
)
(3.8
)
Net interest and
noninterest
income
159.9
179.7
184.6
180.0
183.2
(11.0
)
(12.7
)
NONINTEREST EXPENSE
Salaries and wages
48.3
45.7
45.0
44.1
41.9
5.7
15.3
Incentives and bonuses
13.2
14.5
11.5
10.0
11.4
(9.0
)
15.8
Employment benefits
12.4
14.3
12.0
12.7
11.5
(13.3
)
7.8
Net occupancy
8.0
7.5
7.4
7.3
6.8
6.7
17.6
Furniture, equipment,
and supplies
10.3
9.8
9.7
10.0
9.8
5.1
5.1
Other noninterest
expense:
Advertising and
contributions
3.0
2.1
3.2
2.0
2.8
42.9
7.1
Servicing and
consulting fees
3.2
2.5
3.4
2.6
2.8
28.0
14.3
Subadvisor expense
3.5
2.7
2.8
2.7
2.5
29.6
40.0
Travel, entertainment,
and training
2.9
2.4
3.3
2.8
2.4
20.8
20.8
Originating and
processing fees
2.6
2.4
2.9
2.8
2.7
8.3
(3.7
)
Other expense
14.2
11.6
15.7
13.8
11.4
22.4
24.6
Total other
noninterest
expense
29.4
23.7
31.3
26.7
24.6
24.1
19.5
Total noninterest expense
before impairment
121.6
115.5
116.9
110.8
106.0
5.3
14.7
Impairment write-down
66.9
----
----
----
----
----
----
Total noninterest expense
188.5
115.5
116.9
110.8
106.0
63.2
77.8
Income before income
taxes and minority
interest
(28.6
)
64.2
67.7
69.2
77.2
----
----
Applicable income taxes
(9.3
)
22.7
23.6
22.9
28.3
----
----
Net income before
minority interest
(19.3
)
41.5
44.1
46.3
48.9
----
----
Minority interest
0.2
0.1
0.1
0.1
----
100.0
----
Net income
$
(19.5
)
$
41.4
$
44.0
$
46.2
$
48.9
----
----
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
YEAR-TO-DATE INCOME STATEMENT
Six Months Ended
June 30,
June 30,
%
(In millions)
2008
2007
Change
NET INTEREST INCOME
Interest income
$
312.3
$
360.9
(13.5)
Interest expense
140.2
177.2
(20.9)
Net interest income
172.1
183.7
(6.3)
Provision for loan
losses
(28.4)
(10.1)
181.2
Net interest income
after provision
for loan losses
143.7
173.6
(17.2)
NONINTEREST INCOME
Advisory fees:
Wealth Advisory
Services
Trust and investment
advisory fees
79.5
75.4
5.4
Mutual fund fees
12.8
10.1
26.7
Planning and other
services
21.3
19.4
9.8
Total Wealth
Advisory
Services
113.6
104.9
8.3
Corporate
Client Services
Capital markets
services
23.8
21.4
11.2
Entity management
services
16.4
14.5
13.1
Retirement services
10.7
6.6
62.1
Investment/cash
management services
6.8
6.3
7.9
Total Corporate
Client
Services
57.7
48.8
18.2
Cramer Rosenthal
McGlynn
9.5
11.0
(13.6)
Roxbury Capital
Management
(0.8)
0.3
----
Advisory fees
180.0
165.0
9.1
Amortization of
affiliate
intangibles
(3.3)
(2.2)
50.0
Advisory fees
after amortization
of affiliate
intangibles
176.7
162.8
8.5
Service charges
on deposit accounts
15.0
13.8
8.7
Other noninterest
income
16.7
11.7
42.7
Securities gains/(losses)
(12.5)
0.1
----
Total noninterest
income
195.9
188.4
4.0
Net interest and
noninterest
income
339.6
362.0
(6.2)
NONINTEREST EXPENSE
Salaries and wages
94.0
83.7
12.3
Incentives and bonuses
27.7
25.4
9.1
Employment benefits
26.7
26.2
1.9
Net occupancy
15.5
13.6
14.0
Furniture, equipment,
and supplies
20.1
19.4
3.6
Other noninterest
expense:
Advertising and
contributions
5.1
5.5
(7.3)
Servicing and
consulting fees
5.7
5.2
9.6
Subadvisor expense
6.1
5.0
22.0
Travel, entertainment,
and training
5.3
4.6
15.2
Originating and
processing fees
5.0
5.3
(5.7)
Other expense
25.9
22.5
15.1
Total other
noninterest
expense
53.1
48.1
10.4
Total noninterest expense before
impairment
237.1
216.4
9.6
Impairment write-down
66.9
----
----
Total noninterest expense
304.0
216.4
40.5
Income before income taxes and
minority interest
35.6
145.6
(75.5)
Applicable income taxes
13.4
53.1
(74.8)
Net income before
minority interest
22.2
92.5
(76.0)
Minority interest
0.3
0.7
(57.1)
Net income
$
21.9
$
91.8
(76.1)
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
COMPARISON OF RESULTS WITH AND WITHOUT THE IMPAIRMENT WRITE-DOWN
Three months ended June 30, 2008
Six months ended June 30, 2008
With
Without
With
Without
impairment
impairment
Impairment
impairment
impairment
Impairment
OPERATING RESULTS (in millions)
Net interest income
$
85.2
$
85.2
$
----
$
172.1
$
172.1
$
----
Provision for loan losses
(18.5
)
(18.5
)
----
(28.4
)
(28.4
)
----
Noninterest income
93.2
105.8
(12.6
)
195.9
208.5
(12.6
)
Noninterest expense
188.5
121.6
66.9
304.0
237.1
66.9
Income before taxes
and minority interest
(28.6
)
50.9
(79.5
)
35.6
115.1
(79.5
)
Applicable income taxes
(9.3
)
18.7
(28.0
)
13.4
41.4
(28.0
)
Net income before minority interest
(19.3
)
32.2
(51.5
)
22.2
73.7
(51.5
)
Minority interest
0.2
0.2
----
0.3
0.3
----
Net income
$
(19.5
)
$
32.0
$
(51.5
)
$
21.9
$
73.4
$
(51.5
)
PER SHARE DATA
Diluted shares outstanding (in millions)
67.2
67.4
(0.2
)
67.4
67.4
----
Per share earnings
$
(0.29
)
$
0.47
$
(0.76
)
$
0.33
$
1.09
$
(0.76
)
STATISTICS AND RATIOS (dollars in millions)
Total assets, on average
$
11,825.4
$
11,834.1
$
(8.7
)
$
11,594.3
$
11,598.7
$
(4.4
)
Stockholders' equity, on average
1,119.4
1,125.1
(5.7
)
1,122.4
1,125.3
(2.9
)
Return on average assets
(0.66
)%
1.09
%
----
0.38
%
1.27
%
(0.89
)%
Return on equity
(7.01
)%
11.44
%
----
3.92
%
13.12
%
(9.19
)%
Net interest income (before provision)
and noninterest income
$
178.4
$
191.0
$
(12.6
)
$
368.0
$
380.6
$
(12.6
)
Tax equivalent interest income
0.8
0.8
----
1.6
1.6
----
$
179.2
$
191.8
$
(12.6
)
$
369.6
$
382.2
$
(12.6
)
Noninterest expense
$
188.5
$
121.6
$
66.9
$
304.0
$
237.1
$
66.9
Efficiency ratio
105.19
%
63.40
%
41.79
%
82.25
%
62.04
%
20.21
%
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
STATEMENT OF CONDITION
(In millions)
% Change From
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Prior
Prior
2008
2008
2007
2007
2007
Quarter
Year
ASSETS
Cash and due from banks
$
249.3
$
291.0
$
260.5
$
286.3
$
231.8
(14.3
)
7.5
Interest-bearing deposits in other banks
167.8
3.7
4.4
2.9
3.4
N/M
N/M
Federal funds sold and
securities purchased
under agreements
to resell
110.7
264.6
129.6
13.6
14.6
(58.2
)
N/M
Investment securities:
U.S. Treasury
48.6
56.8
60.2
101.9
103.8
(14.4
)
(53.2
)
Government agencies
473.5
473.9
647.0
701.4
634.8
(0.1
)
(25.4
)
Obligations of state and
political subdivisions
7.3
7.3
17.8
18.5
19.0
----
(61.6
)
Preferred stock
41.7
43.3
44.9
62.6
63.8
(3.7
)
(34.6
)
Mortgage-backed
securities
702.7
740.1
730.6
581.9
605.1
(5.1
)
16.1
Other securities
252.8
307.5
346.3
365.0
380.4
(17.8
)
(33.5
)
Total investment
securities
1,526.6
1,628.9
1,846.8
1,831.3
1,806.9
(6.3
)
(15.5
)
FHLB and FRB stock, at cost
22.4
22.8
22.4
20.1
7.1
(1.8
)
215.5
Loans:
Commercial, financial,
and agricultural
2,808.6
2,654.4
2,594.9
2,529.0
2,483.7
5.8
13.1
Real estate - construction
1,847.0
1,809.7
1,780.4
1,759.9
1,747.0
2.1
5.7
Mortgage - commercial
1,704.0
1,593.8
1,463.4
1,388.8
1,390.5
6.9
22.5
Total commercial
loans
6,359.6
6,057.9
5,838.7
5,677.7
5,621.2
5.0
13.1
Mortgage - residential
561.1
559.6
562.0
566.3
563.1
0.3
(0.4
)
Consumer
1,790.3
1,679.5
1,571.6
1,546.0
1,517.0
6.6
18.0
Secured with liquid
collateral
569.4
500.4
503.5
546.5
573.4
13.8
(0.7
)
Total retail loans
2,920.8
2,739.5
2,637.1
2,658.8
2,653.5
6.6
10.1
Total loans net of
unearned income
9,280.4
8,797.4
8,475.8
8,336.5
8,274.7
5.5
12.2
Reserve for loan losses
(113.1
)
(106.4
)
(101.1
)
(101.6
)
(97.5
)
6.3
16.0
Net loans
9,167.3
8,691.0
8,374.7
8,234.9
8,177.2
5.5
12.1
Premises and equipment
154.1
153.2
152.1
148.9
148.6
0.6
3.7
Goodwill
345.2
332.4
330.0
329.0
328.2
3.9
5.2
Other intangibles
49.7
37.0
38.3
38.7
40.1
34.3
23.9
Other assets
340.2
279.1
326.9
281.4
273.1
21.9
24.6
Total assets
$
12,133.3
$
11,703.7
$
11,485.7
$
11,187.1
$
11,031.0
3.7
10.0
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing
demand
$
994.5
$
778.6
$
966.2
$
827.8
$
812.7
27.7
22.4
Interest-bearing:
Savings
798.9
780.2
659.8
580.1
497.1
2.4
60.7
Interest-bearing
demand
2,692.3
2,502.6
2,471.8
2,346.7
2,483.1
7.6
8.4
Certificates under
$100,000
977.6
1,012.0
1,011.4
1,002.4
1,019.8
(3.4
)
(4.1
)
Local certificates
$100,000 and over
278.0
316.1
356.3
389.6
370.8
(12.1
)
(25.0
)
Total core deposits
5,741.3
5,389.5
5,465.5
5,146.6
5,183.5
6.5
10.8
National certificates
$100,000 and over
2,874.4
2,676.5
2,392.0
2,353.1
2,979.3
7.4
(3.5
)
Total deposits
8,615.7
8,066.0
7,857.5
7,499.7
8,162.8
6.8
5.5
Short-term borrowings:
Federal funds purchased
and securities sold
under agreements to
repurchase
1,695.4
1,777.2
1,775.3
1,915.5
1,149.4
(4.6
)
47.5
U.S. Treasury demand
70.3
62.5
77.3
40.9
2.5
12.5
N/M
Line of credit and other debt
10.0
134.9
139.5
134.0
148.2
(92.6
)
(93.3
)
Total short-term
borrowings
1,775.7
1,974.6
1,992.1
2,090.4
1,300.1
(10.1
)
36.6
Other liabilities
207.5
250.9
247.9
231.4
228.8
(17.3
)
(9.3
)
Long-term debt
467.8
268.5
267.8
267.5
267.0
74.2
75.2
Total liabilities
11,066.7
10,560.0
10,365.3
10,089.0
9,958.7
4.8
11.1
Minority interest
0.2
0.2
0.1
0.1
0.2
----
----
Stockholders' equity
1,066.4
1,143.5
1,120.3
1,098.0
1,072.1
(6.7
)
(0.5
)
Total liabilities and
stockholders'
equity
$
12,133.3
$
11,703.7
$
11,485.7
$
11,187.1
$
11,031.0
3.7
10.0
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
AVERAGE STATEMENT OF CONDITION
(In millions)
2008
2008
2007
2007
2007
% Change From
Second
First
Fourth
Third
Second
Prior
Prior
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Year
ASSETS
Cash and due from banks
$
251.7
$
216.9
$
209.6
$
208.1
$
203.4
16.0
23.7
Interest-bearing deposits in other banks
63.1
3.4
3.7
4.1
3.9
N/M
N/M
Federal funds sold and
securities purchased
under agreements
to resell
38.0
35.1
28.2
23.2
33.6
8.3
13.1
Investment securities:
U.S. Treasury
50.9
60.5
80.5
103.3
105.0
(15.9
)
(51.5
)
Government agencies
497.5
553.2
619.5
631.4
652.9
(10.1
)
(23.8
)
Obligations of state and
political subdivisions
7.3
14.3
18.2
18.7
12.6
(49.0
)
(42.1
)
Preferred stock
44.8
46.0
49.0
62.5
68.5
(2.6
)
(34.6
)
Mortgage-backed
securities
725.2
734.4
697.0
590.4
633.9
(1.3
)
14.4
Other securities
272.8
337.5
359.4
370.6
386.1
(19.2
)
(29.3
)
Total investment
securities
1,598.5
1,745.9
1,823.6
1,776.9
1,859.0
(8.4
)
(14.0
)
FHLB and FRB stock, at cost
26.5
22.4
23.2
10.5
7.1
18.3
273.2
Loans:
Commercial, financial,
and agricultural
2,765.4
2,602.1
2,521.5
2,454.9
2,500.1
6.3
10.6
Real estate - construction
1,837.1
1,804.9
1,790.2
1,769.2
1,696.7
1.8
8.3
Mortgage - commercial
1,654.1
1,528.2
1,423.5
1,387.3
1,376.9
8.2
20.1
Total commercial
loans
6,256.6
5,935.2
5,735.2
5,611.4
5,573.7
5.4
12.3
Mortgage - residential
560.5
562.8
564.5
564.4
553.9
(0.4
)
1.2
Consumer
1,729.8
1,653.1
1,556.5
1,533.0
1,503.9
4.6
15.0
Secured with liquid
collateral
539.0
485.7
499.5
551.5
524.8
11.0
2.7
Total retail loans
2,829.3
2,701.6
2,620.5
2,648.9
2,582.6
4.7
9.6
Total loans net of
unearned income
9,085.9
8,636.8
8,355.7
8,260.3
8,156.3
5.2
11.4
Reserve for loan losses
(104.1
)
(99.8
)
(99.4
)
(95.8
)
(93.3)
4.3
11.6
Net loans
8,981.8
8,537.0
8,256.3
8,164.5
8,063.0
5.2
11.4
Premises and equipment
154.4
152.9
150.9
148.5
148.6
1.0
3.9
Goodwill
393.1
329.9
329.1
328.3
307.8
19.2
27.7
Other intangibles
36.8
37.7
38.2
39.4
34.0
(2.4
)
8.2
Other assets
281.5
282.0
263.2
259.8
261.3
(0.2
)
7.7
Total assets
$
11,825.4
$
11,363.2
$
11,126.0
$
10,963.3
$
10,921.7
4.1
8.3
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing
demand
$
870.2
$
726.4
$
723.5
$
714.9
$
702.6
19.8
23.9
Interest-bearing:
Savings
795.2
714.8
627.3
540.9
463.4
11.2
71.6
Interest-bearing
demand
2,417.0
2,368.2
2,347.6
2,405.8
2,454.7
2.1
(1.5
)
Certificates under $100,000
988.2
1,016.0
1,005.4
1,007.7
1,014.5
(2.7
)
(2.6
)
Local certificates
$100,000 and over
306.9
335.3
390.7
376.2
427.2
(8.5
)
(28.2
)
Total core deposits
5,377.5
5,160.7
5,094.5
5,045.5
5,062.4
4.2
6.2
National certificates
$100,000 and over
2,719.2
2,770.5
2,369.1
2,817.9
2,853.8
(1.9
)
(4.7
)
Total deposits
8,096.7
7,931.2
7,463.6
7,863.4
7,916.2
2.1
2.3
Short-term borrowings:
Federal funds purchased
and securities sold
under agreements to
repurchase
1,847.9
1,625.6
1,907.4
1,370.4
1,270.0
13.7
45.5
U.S. Treasury demand
11.6
12.8
12.3
11.0
10.4
(9.4
)
11.5
Line of credit and other debt
50.1
136.3
136.8
139.9
83.2
(63.2
)
(39.8
)
Total short-term
borrowings
1,909.6
1,774.7
2,056.5
1,521.3
1,363.6
7.6
40.0
Other liabilities
232.1
263.5
244.4
223.4
214.2
(11.9
)
8.4
Long-term debt
467.4
268.2
267.7
267.2
307.3
74.3
52.1
Total liabilities
10,705.8
10,237.6
10,032.2
9,875.3
9,801.3
4.6
9.2
Minority interest
0.2
0.1
0.1
0.2
0.2
100.0
----
Stockholders' equity
1,119.4
1,125.5
1,093.7
1,087.8
1,120.2
(0.5
)
(0.1
)
Total liabilities and
stockholders'
equity
$
11,825.4
$
11,363.2
$
11,126.0
$
10,963.3
$
10,921.7
4.1
8.3
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
YIELDS AND RATES
2008
2008
2007
2007
2007
YIELDS/RATES
Second
First
Fourth
Third
Second
(tax-equivalent basis)
Quarter
Quarter
Quarter
Quarter
Quarter
EARNING ASSETS:
Interest-bearing time
deposits in other banks
2.09
%
6.33
%
8.08
%
4.95
%
8.32
%
Federal funds sold and
securities purchased
under agreements
to resell
2.01
3.15
4.18
6.60
4.82
Total investment
securities
4.69
4.95
5.03
4.94
4.96
FHLB and FRB stock, at cost
3.00
5.38
2.29
4.55
10.21
Commercial, financial,
and agricultural
5.94
6.64
7.39
7.91
7.90
Real estate - construction
5.38
6.53
7.82
8.41
8.56
Mortgage - commercial
5.87
6.72
7.64
8.04
8.02
Total commercial
loans
5.76
6.63
7.59
8.10
8.13
Mortgage - residential
5.83
5.82
5.80
5.74
5.87
Consumer
6.34
6.92
7.33
7.48
7.44
Secured with liquid collateral
4.09
5.27
6.51
6.88
6.83
Total retail loans
5.81
6.40
6.84
6.98
6.98
Total loans
5.77
6.56
7.36
7.74
7.77
Total earning
assets
5.56
6.27
6.92
7.23
7.23
FUNDS USED TO SUPPORT EARNING ASSETS:
Core deposits
Savings
2.17
2.65
2.92
2.63
2.07
Interest-bearing
demand
0.75
1.05
1.26
1.45
1.44
Certificates under $100,000
3.64
4.18
4.27
4.23
4.45
Local certificates $100,000
and over
3.82
4.44
4.85
4.78
4.55
Core interest-bearing deposits
1.85
2.28
2.51
2.54
2.51
National certificates $100,000 and over
3.53
4.44
5.23
5.41
5.40
Total interest-
bearing deposits
2.48
3.11
3.46
3.67
3.66
Short-term borrowings
2.47
3.53
4.64
5.00
5.09
Long-term debt
7.25
6.29
5.78
6.02
6.43
Total interest-bearing
liabilities
2.71
3.28
3.80
3.97
3.97
Total funds used to support
earning assets
2.39
2.90
3.36
3.50
3.50
Net interest margin
(tax-equivalent basis)
3.17
3.37
3.56
3.73
3.73
Year-to-date net interest margin
3.27
3.37
3.67
3.71
3.70
Prime rate
5.08
6.27
7.58
8.18
8.25
Tax-equivalent net interest
income (in millions)
$
86.0
$
87.7
$
92.0
$
95.1
$
93.8
Average earning assets at historical cost
$
10,896.5
$
10,468.0
$
10,258.9
$
10,113.9
$
10,082.8
Average fair valuation adjustment on
investment securities available for sale
(84.5
)
(24.4
)
(24.5
)
(38.9
)
(22.9
)
Average earning assets
$
10,812.0
$
10,443.6
$
10,234.4
$
10,075.0
$
10,059.9
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 six months ended June 30, 2008
CREDIT QUALITY
Three Months Ended
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
(Dollars in millions)
2008
2008
2007
2007
2007
NONPERFORMING ASSETS AT PERIOD-END
Nonaccruing loans:
Commercial, financial, and agricultural
$
27.0
$
25.6
$
23.8
$
12.1
$
11.0
Commercial real estate - construction
22.6
9.9
9.9
21.2
13.6
Commercial mortgage
8.1
8.2
7.1
8.7
9.1
Consumer and other retail
13.9
9.7
7.0
12.1
11.6
Total nonaccruing loans
71.6
53.4
47.8
54.1
45.3
Renegotiated loans
0.2
24.1
23.7
19.2
0.2
Total nonaccruing loans and renegotiated loans
71.8
77.5
71.5
73.3
45.5
Other real estate owned (OREO)
16.7
0.2
9.1
0.2
0.2
Total nonperforming assets
88.5
77.7
80.6
73.5
45.7
Loans past due 90 days or more:
Commercial, financial, and agricultural
6.1
3.7
2.4
9.4
6.4
Commercial real estate - construction
0.6
0.3
0.7
0.7
1.0
Commercial mortgage
1.3
----
1.3
1.1
1.4
Consumer and other retail
13.8
10.6
9.3
5.8
4.8
Total loans past due 90 days or more
21.8
14.6
13.7
17.0
13.6
NET CHARGE-OFFS
Loans charged off:
Commercial, financial, and agricultural
$
2.9
$
0.7
$
1.3
$
0.6
$
1.4
Commercial real estate - construction
5.2
0.3
2.3
0.6
----
Commercial mortgage
0.1
----
1.2
0.1
----
Consumer and other retail
6.0
5.4
6.7
5.5
4.4
Total loans charged off
14.2
6.4
11.5
6.8
5.8
Recoveries on loans previously charged off:
Commercial, financial, and agricultural
0.2
0.1
----
0.2
0.3
Commercial real estate - construction
----
----
----
----
----
Commercial mortgage
0.8
----
----
----
----
Consumer and other retail
1.4
1.6
1.8
1.8
2.0
Total recoveries
2.4
1.7
1.8
2.0
2.3
Net loans charged off
11.8
4.7
9.7
4.8
3.5
RATIOS
Period-end reserve to loans
1.22
%
1.21
%
1.19
%
1.22
%
1.18
%
Period-end non-performing assets to loans
0.95
0.88
0.95
0.88
0.55
Period-end loans past due 90 days to total loans
0.23
0.17
0.16
0.20
0.16
Quarterly net charge-offs to average loans (not annualized)
0.13
0.05
0.12
0.06
0.04
Year-to-date net charge-offs to average loans
0.19
0.05
0.26
0.14
0.08
INTERNAL RISK RATING
Pass
96.28
%
95.62
%
96.03
%
96.01
%
96.81
%
Watchlisted
2.29
2.98
2.69
2.62
2.27
Substandard
1.42
1.39
1.27
1.36
0.91
Doubtful
0.01
0.01
0.01
0.01
0.01
LOAN PORTFOLIO COMPOSITION
Commercial, financial, and agricultural
30
%
30
%
31
%
30
%
30
%
Commercial real estate - construction
20
21
21
21
21
Commercial mortgage
18
18
17
17
17
Residential mortgage
6
6
6
7
7
Consumer
20
19
19
18
18
Secured by liquid collateral
6
6
6
7
7
COMMERCIAL REAL ESTATE - CONSTRUCTION DETAIL
Project type:
Residential real estate construction
53
%
53
%
52
%
54
%
53
%
Land development
22
21
21
19
18
Retail and office
13
13
14
13
13
Owner-occupied
4
5
5
6
6
Multi-family
2
2
2
2
2
Other
6
6
6
6
8
Geographic location:
Delaware
61
%
61
%
61
%
59
%
59
%
Pennsylvania
24
25
25
27
26
Maryland
6
6
7
7
8
New Jersey
6
5
4
4
5
Other
3
3
3
3
2
WILMINGTON TRUST CORPORATION QUARTERLY SUMMARY
As of and for the six months ended June 30, 2008
SUPPLEMENTAL INFORMATION
Three Months Ended
% Change From
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Prior
Prior
2008
2008
2007
2007
2007
Quarter
Year
NET INCOME
Net income per share
Basic
$
(0.29)
$
0.62
$
0.66
$
0.68
$
0.71
----
----
Diluted
(0.29)
0.62
0.65
0.67
0.70
----
----
Weighted average shares
outstanding (in thousands)
Basic
67,167
67,067
67,174
67,698
68,397
Diluted
67,167
67,338
67,749
68,582
69,435
Net income as a percentage of:
Average assets
(0.66)
%
1.47
%
1.57
%
1.67
%
1.80%
Average stockholders'
equity
(7.01)
14.79
15.96
16.85
17.51
ASSETS UNDER
MANAGEMENT *
(in billions)
Wilmington Trust
$
37.5
$
35.0
$
35.9
$
34.5
$
33.2
7.1
13.0
Roxbury Capital
Management
2.1
2.1
2.5
2.8
3.0
----
(30.0
)
Cramer Rosenthal
McGlynn
11.2
10.9
11.4
11.8
11.9
2.8
(5.9
)
Combined assets
under management
$
50.8
$
48.0
$
49.8
$
49.1
$
48.1
5.8
5.6
* 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
$
146.6
$
120.7
$
124.3
$
121.6
$
120.1
21.5
22.1
** Includes Wilmington Trust assets under management
INVESTMENT MIX OF ASSETS MANAGED BY WILMINGTON TRUST
Equities
44
%
45
%
47
%
49
%
49
%
Fixed income
24
22
23
23
22
Other
32
33
30
28
29
CAPITAL (in millions,
except per share
amounts)
Average
stockholders'
equity
$
1,119.4
$
1,125.5
$
1,093.7
$
1,087.8
$
1,120.2
(0.5
)
(0.1
)
Period-end
primary capital
1,179.5
1,249.9
1,221.4
1,199.6
1,169.6
(5.6
)
0.8
Per share:
Book value
15.85
16.99
16.70
16.23
15.77
(6.7
)
0.5
Quarterly dividends
declared
0.345
0.335
0.335
0.335
0.335
3.0
3.0
Year-to-date dividends
declared
0.68
0.335
1.32
0.985
0.65
Average stockholders'
equity to assets
9.47
%
9.90
%
9.83
%
9.92
%
10.26
%
Total risk-based
capital ratio
11.14
11.10
11.21
11.54
11.54
Tier 1 risk-based
capital ratio
6.74
7.67
7.73
7.96
8.00
Tier 1 leverage
capital ratio
6.45
7.17
7.18
7.31
7.37
INVESTMENT SECURITIES PORTFOLIO
Average life (in years)
6.16
4.47
4.45
4.66
5.08
Average duration
2.58
1.90
1.97
1.85
2.19
Percentage invested in fixed rate instruments
83
%
81
%
82
%
81
%
80
%
FUNDING (on average)
Percentage from core deposits
54
%
53
%
54
%
57
%
58
%
Percentage from national funding
27
29
25
27
27
Percentage from short-term borrowings
19
18
21
16
15
ASSET - LIABILITY MATCHING
As a percentage of total balances at period-end:
Loans outstanding with floating rates
72
%
71
%
71
%
71
%
73
%
Commercial loans with floating rates
87
86
85
86
87
Commercial loans tied to a prime rate
56
58
59
60
61
Commercial loans tied to the 30-day LIBOR
38
35
36
35
33
National CDs and short-term borrowings
maturing in 90 days or less
92
%
83
%
78
%
80
%
76
%
FULL-TIME
EQUIVALENT
HEADCOUNT
Full-time equivalent
headcount
2,879
2,704
2,672
2,658
2,597