United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1999
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For The Transition Period From ____________ to ___________
Commission File Number: 1-14659
WILMINGTON TRUST CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 51-0328154
- ------------------------------ ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890
-------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(302) 651-1000
----------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
--------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
[X] Yes [ ] No
Number of shares of issuer's common stock ($1.00 par value) outstanding at
March 31, 1999 - 33,086,690 shares
<PAGE>
Wilmington Trust Corporation and Subsidiaries
Form 10-Q
Index
Page
----
Part I. Financial Information
Item 1 - Financial Statements
Consolidated Statements of Condition 3
Consolidated Statements of Income 5
Consolidated Statements of Cash Flows 7
Notes to Consolidated Financial Statements 9
Item 2 - Management's Discussion and Analysis
of Financial Condition and Results of Operations 12
Item 3 - Quantitative and Qualitative Disclosures About
Market Risk 23
Part II. Other Information
Item 1 - Legal Proceedings 25
Item 2 - Changes in Securities and Use of Proceeds 25
Item 3 - Defaults Upon Senior Securities 25
Item 4 - Submission of Matters to a Vote of
Security Holders 25
Item 5 - Other Information 25
Item 6 - Exhibits and Reports on Form 8-K 25
Exhibit 11
Exhibit 27
2
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
Wilmington Trust Corporation and Subsidiaries
-----------------------------------
March 31, December 31,
(in thousands) 1999 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 207,494 $ 204,579
-----------------------------------
Interest-bearing time deposits in other banks ---- ----
-----------------------------------
Federal funds sold and securities purchased
under agreements to resell 32,400 83,500
-----------------------------------
Investment securities available for sale:
U.S. Treasury and government agencies 885,924 796,665
Obligations of state and political subdivisions 7,169 7,186
Other securities 558,727 494,890
- ------------------------------------------------------------------------------------------------------------------
Total investment securities available for sale 1,451,820 1,298,741
-----------------------------------
Investment securities held to maturity:
U.S. Treasury and government agencies 13,309 29,098
Obligations of state and political subdivisions 8,058 8,098
Other securities 23,542 36,715
- ------------------------------------------------------------------------------------------------------------------
Total investment securities held to maturity (market values
were $45,384 and $333,812, respectively) 44,909 73,911
-----------------------------------
Loans:
Commercial, financial and agricultural 1,405,667 1,370,566
Real estate-construction 249,056 211,733
Mortgage-commercial 879,303 869,442
Mortgage-residential 859,742 857,626
Consumer 1,023,953 1,015,056
Unearned income (3,730) (4,790)
- ------------------------------------------------------------------------------------------------------------------
Total loans net of unearned income 4,413,991 4,319,633
Reserve for loan losses (73,690) (71,906)
- ------------------------------------------------------------------------------------------------------------------
Net loans 4,340,301 4,247,727
-----------------------------------
Premises and equipment, net 146,352 145,492
Other assets 245,642 246,615
- ------------------------------------------------------------------------------------------------------------------
Total assets $6,468,918 $6,300,565
===================================
3
<PAGE>
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 851,562 $ 912,066
Interest-bearing:
Savings 419,354 404,015
Interest-bearing demand 1,388,629 1,425,953
Certificates under $100,000 1,169,716 1,182,183
Certificates $100,000 and over 634,722 612,546
- ------------------------------------------------------------------------------------------------------------------
Total deposits 4,463,983 4,536,763
-----------------------------------
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 1,173,733 932,346
U.S. Treasury demand 28,906 18,944
- ------------------------------------------------------------------------------------------------------------------
Total short-term borrowings 1,202,639 951,290
-----------------------------------
Other liabilities 96,003 98,303
Long-term debt 168,000 168,000
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 5,930,625 5,754,356
-----------------------------------
Stockholders' equity:
Common stock ($1.00 par value) authorized
150,000,000 shares; issued 39,264,173
and 39,264,173 shares, respectively 39,264 39,264
Capital surplus 67,188 67,047
Retained earnings 652,931 636,662
Accumulated other comprehensive income 3,031 5,928
- ------------------------------------------------------------------------------------------------------------------
Total contributed capital and retained earnings 762,414 748,901
Less: Treasury stock, at cost, 6,177,483 and
5,935,072 shares, respectively (224,121) (202,692)
- ------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 538,293 546,209
-----------------------------------
Total liabilities and stockholders' equity $6,468,918 $6,300,565
===================================
See Notes to Consolidated Financial Statements
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Wilmington Trust Corporation and Subsidiaries
------------------------------
For the three months ended
March 31,
------------------------------
(in thousands; except per share data) 1999 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET INTEREST INCOME
Interest and fees on loans $ 87,201 $ 87,742
Interest and dividends on investment securities:
Taxable interest 17,356 23,226
Tax-exempt interest 190 236
Dividends 2,361 2,080
Interest on time deposits in other banks ---- ----
Interest on federal funds sold and securities
purchased under agreements to resell 280 235
- -------------------------------------------------------------------------------------------------------------
Total interest income 107,388 113,519
------------------------------
Interest on deposits 33,833 36,207
Interest on short-term borrowings 12,980 17,898
Interest on long-term debt 2,756 ----
- -------------------------------------------------------------------------------------------------------------
Total interest expense 49,569 54,105
------------------------------
Net interest income 57,819 59,414
Provision for loan losses (5,000) (5,000)
- -------------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan losses 52,819 54,414
------------------------------
OTHER INCOME
Trust and asset management fees 36,079 30,005
Service charges on deposit accounts 5,426 5,345
Gain on business disposition ---- 5,503
Merchant discount fees 1,550 1,419
Other operating income 2,524 3,313
Securities gains/(losses) 20 (31)
- -------------------------------------------------------------------------------------------------------------
Total other income 45,599 45,554
------------------------------
Net interest and other income 98,418 99,968
------------------------------
OTHER EXPENSE
Salaries and employment benefits 33,792 34,735
Net occupancy 3,087 2,815
Furniture and equipment 4,413 4,085
5
<PAGE>
Stationery and supplies 1,561 1,400
Provision for litigation settlement ---- 5,500
Servicing and consulting fees 2,742 2,195
Advertising and public relations 1,584 1,233
Other operating expense 7,864 7,507
- -------------------------------------------------------------------------------------------------------------
Total other expense 55,043 59,470
------------------------------
NET INCOME
Income before income taxes 43,375 40,498
Applicable income taxes 14,219 13,186
- -------------------------------------------------------------------------------------------------------------
Net income $ 29,156 $ 27,312
==============================
Net income per share:
basic $ 0.88 $ 0.82
==============================
diluted $ 0.87 $ 0.79
==============================
Weighted average shares outstanding:
basic 33,075 33,507
diluted 33,703 34,462
Cash dividends per share $ 0.39 $ 0.36
See Notes to Consolidated Financial Statements
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Wilmington Trust Corporation and Subsidiaries
-----------------------------------
For the three months ended
March 31,
(in thousands) 1999 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 29,156 $ 27,312
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for loan losses 5,000 5,000
Provision for depreciation 3,985 2,876
Amortization of investment securities available for sale
discounts and premiums 609 96
Accretion of investment securities held to maturity discounts
and premiums (28) (71)
Deferred income taxes 1,951 (339)
Gains on sales of loans (301) (228)
Securities (gains)/losses (20) 31
Decrease/(increase) in other assets 973 (6,252)
(Decrease)/increase in other liabilities (2,621) 2,396
- ------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 38,704 30,821
-----------------------------------
INVESTING ACTIVITIES
Proceeds from sales of investment securities available for sale 276,380 39,812
Proceeds from maturities of investment securities available for sale 113,916 92,355
Proceeds from maturities of investment securities held to maturity 29,050 44,297
Purchases of investment securities available for sale (548,511) (228,150)
Purchases of investment securities held to maturity ---- ----
Investments in affiliates ---- (52,509)
Gross proceeds from sales of loans 38,084 23,247
Purchases of loans (1,422) (1,095)
Net increase in loans (133,935) (126,450)
Net increase in premises and equipment (4,845) (7,175)
- ------------------------------------------------------------------------------------------------------------------
Net cash used for investing activities (231,283) (215,668)
-----------------------------------
FINANCING ACTIVITIES
Net (decrease)/increase in demand, savings and interest-bearing
demand deposits (82,489) 197,61
Net increase/(decrease) in certificates of deposit 9,709 (23,637)
Net increase in federal funds purchased and securities sold
under agreements to repurchase 241,387 77,416
Net increase/(decrease) in U.S. Treasury demand 9,962 (3,529)
Cash dividends (12,887) (12,062)
Proceeds from common stock issued under employment benefit plans 5,597 2,796
7
<PAGE>
Payments for common stock acquired through buybacks (26,885) (2,915)
- ------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 144,394 235,684
-----------------------------------
(Decrease)/increase in cash and cash equivalents (48,185) 50,837
Cash and cash equivalents at beginning of period 288,079 289,392
- ------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 239,894 $ 340,229
===================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 46,229 $ 57,638
Taxes 6,407 813
Loans transferred during the year:
To other real estate owned $ 143 $ 105
From other real estate owned 620 2,011
See Notes to Consolidated Financial Statements
</TABLE>
8
<PAGE>
Notes to Consolidated Financial Statements
Wilmington Trust Corporation and Subsidiaries
Note 1 - Accounting and Reporting Policies
The accounting and reporting policies of Wilmington Trust Corporation (the
"Corporation"), a holding company that owns all of the issued and outstanding
shares of capital stock of Wilmington Trust Company, Wilmington Trust of
Pennsylvania and Wilmington Trust FSB, conform to generally accepted accounting
principles and practices in the banking industry for interim financial
information. The information for the interim periods is unaudited and includes
all adjustments that are of a normal recurring nature and that management
believes to be necessary for fair presentation. Results of the interim periods
are not necessarily indicative of the results that may be expected for the full
year. This note is presented and should be read in conjunction with the Notes to
the Consolidated Financial Statements included in the Corporation's Annual
Report to Stockholders for 1998.
Note 2 - Comprehensive Income
Effective January 1, 1998, the Corporation adopted Statement of Financial
Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive Income." SFAS
No. 130 established new rules for the reporting and display of comprehensive
income and its components. The statement requires, among other things,
unrealized gains or losses on the Corporation's available-for-sale securities,
that prior to adoption were reported separately in shareholders' equity, to be
included in comprehensive income. The adoption of SFAS No. 130 had no impact on
the Corporation's net income or shareholders' equity.
For the three months ended March 31, 1999 and 1998, total comprehensive
income, net of taxes, was $26,259,000 and $27,914,000, respectively.
Note 3 - Segment Reporting
<TABLE>
<CAPTION>
Financial data by segment for March 31, 1999 vs March 31, 1998 is as follows:
- -----------------------------------------------------------------------------------------------------------------
Banking Fee-Based Funds
Quarter Ended March 31, 1999 (in thousands) business business management Totals
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net interest income $ 49,396 $ 5,102 $ 3,846 $ 58,344
Provision for loan losses (4,944) (56) ---- (5,000)
- -----------------------------------------------------------------------------------------------------------------
Net interest income after provision 44,452 5,046 3,846 53,344
Trust and asset management fees:
Personal trust ---- 16,014 ---- 16,014
Corporate financial services ---- 11,185 ---- 11,185
Asset management ---- 9,137 ---- 9,137
Other operating income 9,300 510 182 9,992
Securities gains ---- ---- 20 20
- -----------------------------------------------------------------------------------------------------------------
Net interest and other income 53,752 41,892 4,048 99,692
Other expense (29,425) (25,876) (464) (55,765)
- -----------------------------------------------------------------------------------------------------------------
Segment profit from operations 24,327 16,016 3,584 43,927
Segment loss from infrequent events ---- (190) ---- (190)
- -----------------------------------------------------------------------------------------------------------------
Segment profit before income taxes $ 24,327 $ 15,826 $ 3,584 $ 43,737
=================================================================================================================
9
<PAGE>
Intersegment revenue $ 2,462 $ 1,886 $ 635 $ 4,983
Depreciation & amortization 2,532 1,665 69 4,266
Investment in equity method investees ---- 132,244 ---- 132,244
Segment average assets 4,083,777 662,882 3,052,629 7,799,288
Quarter Ended March 31, 1998 (in thousands)
- -----------------------------------------------------------------------------------------------------------------
Net interest income $ 50,302 $ 5,827 $ 3,816 $ 59,945
Provision for loan losses (4,763) (237) ---- (5,000)
- -----------------------------------------------------------------------------------------------------------------
Net interest income after provision 45,539 5,590 3,816 54,945
Trust and asset management fees:
Personal trust ---- 14,677 ---- 14,677
Corporate financial services ---- 9,635 ---- 9,635
Asset management ---- 6,279 ---- 6,279
Other operating income 8,771 985 6,076 15,832
Securities losses ---- ---- (31) (31)
- -----------------------------------------------------------------------------------------------------------------
Net interest and other income 54,310 37,166 9,861 101,337
Other expense (28,790) (24,150) (6,982) (59,922)
- -----------------------------------------------------------------------------------------------------------------
Segment profit from operations 25,520 13,016 2,879 41,415
Segment profit from infrequent events ---- 728 ---- 728
- -----------------------------------------------------------------------------------------------------------------
Segment profit before income taxes $ 25,520 $ 13,744 $ 2,879 $ 42,143
=================================================================================================================
Intersegment revenue $ 1,405 $ 822 $ 314 $ 2,541
Depreciation and amortization 1,823 1,276 36 3,135
Investment in equity method investees ---- 52,785 ---- 52,785
Segment average assets 3,748,944 518,665 3,149,183 7,416,792
</TABLE>
10
<PAGE>
A reconciliation of reportable segment amounts to the Corporation's consolidated
balances is as follows:
- --------------------------------------------------------------------------------
Quarter ended March 31 (in thousands) 1999 1998
- --------------------------------------------------------------------------------
Revenue:
Total revenues for reportable segments $ 58,344 $ 59,945
Other revenues 46,348 46,392
Elimination of intersegment revenues (1,274) (1,369)
- --------------------------------------------------------------------------------
Total consolidated revenues before provision $ 103,418 $ 104,968
============================
Profit or loss:
Total profit or loss for reportable segments $ 43,927 $ 41,415
Elimination of intersegment profits (552) (917)
- --------------------------------------------------------------------------------
$ 43,375 $ 40,498
============================
Assets:
Total assets for reportable segments $ 7,799,288 $ 7,416,792
Other assets 228,173 217,045
Elimination of intersegment assets (1,741,707) (1,523,839)
Other assets not allocated to segments ---- ----
- --------------------------------------------------------------------------------
Consolidated total average assets $ 6,285,754 $ 6,109,998
============================
11
<PAGE>
Wilmington Trust Corporation and Subsidiaries
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
SUMMARY
- -------
Net income for the first quarter of 1999 was $29.2 million, or $.88 per share, a
7% increase over the $27.3 million, or $.82 per share, recorded for the first
quarter of last year. Diluted net income per share for the first quarter of 1999
was $.87, compared with $.79 for the first quarter of last year.
Total revenues for the first quarter of 1999 reached $103.4 million, a 2%
decrease from the $105.0 million reported for the first quarter of 1998.
Net interest income for the first quarter of 1999 reached $57.8 million, a 3%
decrease from the $59.4 million reported for the first quarter last year.
The quarterly provision for loan losses of $5.0 million was unchanged from that
for the first quarter of 1998. The reserve for loan losses at quarter-end stood
at $73.7 million, up $1.8 million, or 2%, over the $71.9 million reported at
December 31, 1998.
Noninterest income for the first quarter of 1999 was $45.6 million, unchanged
from the amount reported for the same quarter of last year.
Operating expenses for the first quarter of 1999 were $55.0 million, a 7%
decrease from the $59.5 million reported for the first quarter last year.
Return on assets for the three months ended March 31, 1999, on an annualized
basis, was 1.88%, above the 1.81% reported for the first quarter of 1998. Return
on stockholders' equity, also on an annualized basis, was 22.10%, above the
21.81% reported for the first three months of 1998.
STATEMENT OF CONDITION
- ----------------------
Total assets at March 31, 1999 were $6.47 billion, up $168.4 million, or 3%,
over the $6.30 billion reported at December 31, 1998. Total earning assets
increased $167.3 million, or 3%, to $5.94 billion over the same period of time.
Growth in both the loan and investment portfolios contributed to these
increases.
Total loans at March 31, 1999 were $4.41 billion, an increase of $94.4 million,
or 2%, over the December 31, 1998 level of $4.32 billion. Contributing to this
increase were commercial loans of $1.40 billion, which rose $35.1 million, or
3%, over their December 31, 1998 level; commercial construction loans of $249.1
million, which rose $37.3 million, or 18%; commercial mortgage loans of $879.3
million, which rose $9.9 million, or 1%; residential mortgage loans of $859.7
million, which rose $2.1 million, or .25%, and consumer loans of $1.02 billion,
which rose $8.9 million, or .9%.
The investment portfolio at March 31, 1999 was $1.50 billion, an increase of
$124.1 million, or 9%, over the December 31, 1998 level of $1.37 billion. The
Corporation continued its efforts to replace securities sold during 1998.
Contributing to this increase were U.S. Treasury and government agency
securities, which increased $73.5 million, or 9%, to $899.2 million and
asset-backed securities, which increased $51.8 million, or 20%, to $317.2
million.
Interest-bearing liabilities at quarter-end were $4.98 billion, up $239.1
million, or 5%, over the year-end level of $4.74 billion. Total deposits during
the first three months of 1999 declined $72.8 million, while short-term
12
<PAGE>
borrowings increased $251.3 million. A $22.2 million increase in certificates of
deposit of $100,000 and over was more than offset by a $60.5 million, or 7%,
decrease in noninterest-bearing demand account balances, a $37.3 million, or 3%,
decrease in interest-bearing demand account balances and a $12.5 million, or 1%,
decrease in certificates of deposit of less than $100,000. Federal funds
purchased increased $168.6 million, or 149%, to $281.8 million and U.S. Treasury
demand balances rose $160.0 million, or 28.8%, to $715.0 million.
Stockholders' equity at March 31, 1999 was $538.3 million, down $7.9 million, or
1%, from the year-end level as earnings of $29.2 million and $5.6 million in new
stock issued were offset by a $2.9 million valuation reserve adjustment for the
investment portfolio, $12.9 million in cash dividends and $26.9 million for the
stock buyback program.
NET INTEREST INCOME
- -------------------
Net interest income for the first quarter of 1999 on a fully tax-equivalent
("FTE") basis was $59.8 million. This was a $1.7 million, or 3%, decrease from
the $61.5 million reported for the first quarter of 1998.
Interest income (FTE) for the first quarter of 1999 declined $6.2 million, or
5%, to $109.4 million from $115.6 million for the first quarter of 1998. The
effect of a $105.7 million increase in the average level of earning assets for
the first quarter of 1999 compared to the same period last year was more than
offset by the declining rate environment. Interest revenues rose $3.7 million as
a result of this increase in earning assets. More than offsetting this increase
was a $9.9 million decrease in interest revenues associated with the lower
interest rates. The average rate earned on these assets during the first quarter
of 1999 declined 58 basis points, from 8.18% to 7.60%. The loan portfolio yield
decreased 71 basis points, to 8.13%, while the investment portfolio yield
declined 56 basis points, to 6.00%.
Interest expense for the first quarter of 1999 declined $4.5 million, or 8%, to
$49.6 million from the $54.1 million reported for the first quarter of last
year. Contributing to this decrease in interest expense was a $60.6 million
decrease in the average level of interest-bearing liabilities, which resulted in
a $2.5 million decrease in interest expense. Complementing this decrease was a
$2.0 million decrease in interest expense attributable to a 39-basis point
decrease in the rate paid for those funds. The average rate the Corporation paid
for its funds for the first quarter of 1999 was 3.46%, compared to 3.85% for the
first quarter of 1998.
The Corporation's net interest margin for the first quarter of 1999 was 4.14%,
19 basis points below the 4.33% reported for the first quarter of a year ago.
This decline was driven, in part, by customers moving from floating-rate to
lower cost, fixed-rate financing. In addition, the issuance of $125 million of
subordinated debt securities in May 1998 to fund investments in asset management
firms, generating fee income, reduced the net interest margin further. The
following tables present comparative net interest income data and a rate-volume
analysis of changes in net interest income for the first quarters of 1999 and
1998.
13
<PAGE>
<TABLE>
<CAPTION>
QUARTERLY ANALYSIS OF EARNINGS
1999 First Quarter 1998 First Quarter
------------------------------------- -------------------------------------
(in thousands; rates on Average Income/ Average Average Income/ Average
tax-equivalent basis) balance expense rate balance expense rate
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Earning assets
Time deposits in other banks $ ---- $ ---- ----% $ ---- $ ---- ----%
Federal funds sold and
securities purchased under
agreements to resell 24,444 280 4.53 18,027 235 5.21
- ---------------------------------------------------------------- ------------------------
Total short-term investments 24,444 280 4.53 18,027 235 5.21
--------------------------------------------------------------------------------
U.S. Treasury and government
agencies 834,945 11,959 5.77 1,014,697 16,051 6.37
State and municipal 15,244 285 7.61 18,249 358 7.87
Preferred stock 168,739 2,813 6.78 125,514 2,509 8.23
Asset-backed securities 290,646 4,603 6.35 369,338 6,148 6.69
Other 92,521 1,199 5.21 95,296 1,346 5.68
- ---------------------------------------------------------------- ------------------------
Total investment securities 1,402,095 20,859 6.00 1,623,094 26,412 6.56
--------------------------------------------------------------------------------
Commercial, financial and
agricultural 1,383,405 26,483 7.68 1,197,666 25,895 8.66
Real estate-construction 229,912 4,929 8.63 151,703 3,489 9.20
Mortgage-commercial 872,813 19,167 8.81 905,995 20,965 9.26
Mortgage-residential 854,064 15,916 7.39 820,520 16,926 8.25
Consumer 1,014,878 21,734 8.67 958,861 21,647 9.13
- ---------------------------------------------------------------- ------------------------
Total loans 4,355,072 88,229 8.13 4,034,745 88,922 8.84
-------------------------------------------------------------------
Total earning assets $5,781,611 109,368 7.60 $5,675,866 115,569 8.18
================================================================================
Funds supporting earning assets
Savings $ 408,230 1,968 1.96 $ 398,517 2,324 2.37
Interest-bearing demand 1,349,693 7,661 2.30 1,138,486 7,263 2.59
Certificates under $100,000 1,175,661 14,944 5.16 1,211,081 16,647 5.57
Certificates $100,000 and over 700,084 9,260 5.29 703,718 9,973 5.67
- ---------------------------------------------------------------- ------------------------
Total interest-bearing
deposits 3,633,668 33,833 3.76 3,451,802 36,207 4.24
--------------------------------------------------------------------------------
Federal funds purchased and
securities sold under
agreements to repurchase 1,030,789 12,510 4.85 1,263,038 17,336 5.49
U.S. Treasury demand 28,513 470 6.59 42,496 562 5.29
- ---------------------------------------------------------------- ------------------------
Total short-term borrowings 1,059,302 12,980 4.91 1,305,534 17,898 5.48
-------------------------------------------------------------------
Long-term debt 168,000 2,756 6.65 43,000 ---- ----
- ---------------------------------------------------------------- ------------------------
14
<PAGE>
Total interest-bearing
liabilities 4,860,970 49,569 4.11 4,800,336 54,105 4.54
-----------------------------------------------------------------------------
Other noninterest funds 920,641 ---- ---- 875,530 ---- ----
- ---------------------------------------------------------------- ------------------------
Total funds used to support
earning assets $5,781,611 49,569 3.46 $5,675,866 54,105 3.85
=============================================================================
Net interest income/yield 59,799 4.14 61,464 4.33
Tax-equivalent adjustment (1,980) (2,050)
--------- ---------
Net interest income $ 57,819 $ 59,414
========= =========
</TABLE>
Average rates are calculated using average balances based on historical cost and
do not reflect the market valuation adjustment required by Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities," effective January 1, 1994.
15
<PAGE>
<TABLE>
<CAPTION>
RATE-VOLUME ANALYSIS OF NET INTEREST INCOME
--------------------------------------------
For the three months ended March 31,
--------------------------------------------
1999/1998
Increase/(Decrease)
due to change in
--------------------------------------------
1 2
(in thousands) Volume Rate Total
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income:
Time deposits in other banks $ ---- $ ---- $ ----
Federal funds sold and
securities purchased under
agreements to resell 84 (39) 45
- -----------------------------------------------------------------------------------------------------------------------------
Total short-term
investments 84 (39) 45
--------------------------------------------
U.S. Treasury and
government agencies (2,836) (1,256) (4,092)
State and municipal * (63) (10) (73)
Preferred stock * 905 (601) 304
Asset-backed securities (1,301) (244) (1,545)
Other * (38) (109) (147)
- -----------------------------------------------------------------------------------------------------------------------------
Total investment
securities (3,333) (2,220) (5,553)
--------------------------------------------
Commercial, financial and
agricultural * 3,966 (3,378) 588
Real estate-construction 1,774 (334) 1,440
Mortgage-commercial * (758) (1,040) (1,798)
Mortgage-residential 682 (1,692) (1,010)
Consumer 1,261 (1,174) 87
- -----------------------------------------------------------------------------------------------------------------------------
Total loans 6,925 (7,618) (693)
- -----------------------------------------------------------------------------------------------------------------------------
Total interest income $ 3,676 $(9,877) $(6,201)
============================================
Interest expense:
Savings $ 57 $ (413) $ (356)
Interest-bearing demand 1,349 (951) 398
Certificates under $100,000 (486) (1,217) (1,703)
16
<PAGE>
Certificates $100,000 and over (52) (661) (713)
- -----------------------------------------------------------------------------------------------------------------------------
Total interest-bearing
deposits 868 (3,242) (2,374)
--------------------------------------------
Federal funds purchased and
securities sold under
agreements to repurchase (3,188) (1,638) (4,826)
U.S. Treasury demand (185) 93 (92)
- -----------------------------------------------------------------------------------------------------------------------------
Total short-term
borrowings (3,373) (1,545) (4,918)
--------------------------------------------
Long-term debt ---- 2,756 2,756
- -----------------------------------------------------------------------------------------------------------------------------
Total interest expense $ (2,505) $ (2,031) $ (4,536)
============================================
Changes in net interest income $ (1,665)
===============
* Variances are calculated on a fully tax-equivalent basis, which
includes the effects of any disallowed interest expense.
1 Changes attributable to volume are defined as change in average
balance multiplied by the prior year's rate.
2 Changes attributable to rate are defined as a change in rate
multiplied by the average balance in the applicable period of the
prior year. A change in rate/volume (change in rate multiplied by
change in volume) has been allocated to the change in rate.
</TABLE>
17
<PAGE>
Noninterest Revenues and Operating Expenses
- -------------------------------------------
Noninterest revenues for the first quarter of 1999 were $45.6 million, the same
as for the first quarter a year ago, as higher levels of trust and asset
management fee income replaced a one-time gain reported last year from the
disposition of the mutual fund processing business.
Trust and asset management fees for the first quarter of 1999 increased $6.1
million, or 20%, to $36.1 million. Personal trust fees rose $1.2 million, or 8%,
to $15.8 million. Corporate trust fees rose $1.5 million, or 15%, to $11.1
million. Asset management fees rose $3.4 million, or 60%, to $9.1 million, as
the Corporation's investment in two asset management firms added $2.7 million to
fee income.
Service charges on deposit accounts of $5.4 million for the quarter were 2%
above those for the first quarter of a year ago. Increased transaction fees
associated with automated teller machine usage, overdrafts and returned items
contributed to this increase.
Other operating income for the first quarter of 1999 was $4.1 million. This was
a decrease of $6.2 million, or 60%, from the $10.2 million reported for the
first quarter of 1998. Other operating income for the first quarter of 1998
included a nonrecurring gain of $5.5 million from the sale of the Corporation's
mutual fund processing business and $700,000 in revenues associated with its
precious metals business that also has been sold. Offsetting these decreases, in
part, were modest increases in loan fees and credit card processing fees. Absent
these one-time events, other operating income was unchanged from the level of a
year ago.
Operating expenses for the first quarter of 1999 decreased $4.4 million, or 7%,
to $55.0 million. Total personnel expenses for the first quarter decreased
$900,000, or 3%, to $33.8 million. Contributing to this decrease was a $1.3
million, or 5%, decrease in salaries, bonuses and sales incentives. Furniture
and equipment expense for the first quarter rose $300,000, or 8%. Higher
maintenance costs and depreciation expense associated with the new trust system
and the new operations facility contributed to this increase. Net occupancy
expense rose $300,000, or 10%, due to costs associated with new personal trust
and private banking offices opened last year in New York and California. Other
operating expense for the first quarter decreased $4.2 million, or 26%, to $12.2
million, as higher levels of service and consulting expense for the
Corporation's year 2000 efforts, up $500,000, or 25%, and advertising expense,
up $400,000, or 29%, were more than offset by a $5.0 million decrease in other
operating expenses. This decrease was the result of a $5.5 million charge to
earnings taken in the first quarter of 1998 in connection with the anticipated
settlement of outstanding litigation. The Corporation's efforts in readying
itself for the year 2000 are more fully discussed on pages 20 through 22.
Liquidity
- ---------
A financial institution's liquidity represents its ability to meet, in a timely
manner, cash flow requirements that may arise. Liquidity of the asset side of
the balance sheet is provided by the maturity and marketability of loans, money
market assets and investments. Liquidity of the liability side of the balance
sheet is usually provided through a stable base of core deposits.
The Corporation's quarter-end liquidity ratio, calculated in accordance with
regulatory requirements of the FDIC, was 24.48%. Management believes that
maturities of the Corporation's investment securities, other readily marketable
assets and external sources of funds offer more than adequate liquidity to meet
any cash flow requirements that may arise. Sources of funds have historically
consisted of deposits, amortization and prepayments of outstanding loans,
maturities of investment securities, borrowings and interest income. Management
monitors the Corporation's existing and projected liquidity requirements on an
ongoing basis and implements appropriate strategies when deemed necessary.
18
<PAGE>
Asset Quality and Loan Loss Provision
- -------------------------------------
The Corporation's provision for loan losses for the first quarter of 1999 was
$5.0 million, unchanged from the amount provided for the first quarter of 1998.
The reserve for loan losses at March 31, 1999 was $73.7 million, an increase of
$1.8 million, or 2%, above the $71.9 million reported at December 31, 1998. The
reserve as a percentage of total period-end loans outstanding was 1.67%,
slightly above the year-end level of 1.66%. Net chargeoffs for the first three
months of 1999 were $3.2 million, an increase of $500,000, or 17%, above those
for the first quarter of 1998.
The following table presents the risk elements in the Corporation's loan
portfolio:
<TABLE>
<CAPTION>
Risk Elements (in thousands) March 31, 1999 December 31, 1998 March 31, 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Nonaccruing $33,485 $30,598 $28,819
Past due 90 days or more 40,076 18,558 19,253
- ----------------------------------------------------------------------------------------------------------------
Total $73,561 $49,156 $48,072
==============================================================
Percent of total loans at period-end 1.67% 1.14% 1.17%
Other real estate owned $ 1,055 $ 1,532 $ 1,832
</TABLE>
Nonaccruing loans at March 31, 1999 were $33.5 million, an increase of $2.9
million above the $30.6 million reported at December 31, 1998. Other real estate
owned, which is reported as a component of other assets in the Consolidated
Statements of Condition, consists of assets that have been acquired through
foreclosure. These assets are recorded on the books of the Corporation at the
lower of their cost or the estimated fair value less cost to sell, adjusted
periodically based upon current appraisals. Other real estate owned at March 31,
1999 was $1.0 million, a decrease of $500,000, or 31%, from the December 31,
1998 level of $1.5 million. Nonperforming assets (other real estate owned plus
nonaccrual loans) at March 31, 1999 totaled $34.5 million, or .78% of period-end
loans outstanding. This was an increase of $2.4 million, or 8%, above the $32.1
million, or .74% of period-end loans outstanding, reported at December 31, 1998.
As a result of the Corporation's ongoing monitoring of its loan portfolio, at
March 31, 1999, approximately $60.9 million of its loans were identified that
are either currently performing in accordance with their terms or are less than
90 days past due but for which, in management's opinion, serious doubt exists as
to the borrowers' ability to continue to repay their loans in full on a timely
basis.
The reserve for loan losses at quarter-end was 2.20 times the level of
nonaccrual loans. Management believes the reserve is adequate, based upon
currently available information. The Corporation's determination of the adequacy
of its reserve is based upon an evaluation of its classified loans and other
assets, past loss experience, current economic and real estate market conditions
and any regulatory recommendations.
Capital Resources
- -----------------
A strong capital position provides a margin of safety for both depositors and
stockholders, enables a financial institution to take advantage of profitable
opportunities and provides for future growth. The Corporation's total risk-based
capital ratio at the end of the first quarter of 1999 was 12.19%, and its core
(Tier 1) leveraged capital ratio was 6.49%. The corresponding ratios at year-end
19
<PAGE>
1998 were 12.47% and 6.61%, respectively. Both of these ratios are well in
excess of the current regulatory minimums of 8.00% and 4.00%, respectively.
Reflecting the Corporation's performance and favorable outlook, the Corporation
in April increased the quarterly dividend by 8% to 42 cents per share. This
raises the per-share annual dividend rate to $1.68 and marks the eighteenth
consecutive year in which dividends have been increased.
Management monitors the Corporation's capital position and will make adjustments
as needed to insure that the capital base will satisfy existing and impending
regulatory requirements, as well as meet appropriate standards of safety and
provide for future growth.
Other Information
- -----------------
Year 2000 Issue
The Corporation is working to help assure that date-sensitive systems and
hardware are prepared for orderly transition to the year 2000 without disrupting
our customer accounts and operations.
We began renovating business application systems in late 1995. The Corporation
established a Year 2000 Program Management Office ("PMO") to manage our Year
2000 project on an enterprise-wide basis. We conduct weekly project reviews of
our Year 2000 efforts with a management steering team, and quarterly meetings
with senior management and the Board of Directors.
The PMO
- -------
The PMO is comprised of project leaders representing information technology and
each major business area, such as commercial banking, personal banking, personal
trust and private banking and corporate financial services. This team
coordinates the major initiatives and strategies in each constituent's
respective area. The initiatives include business risk/impact analysis,
information technology, credit risk, vendor management, investment risk,
communications and contingency planning.
The Corporation worked with an international consulting firm for approximately
six months to assist in its Year 2000 efforts. That firm assisted in
implementing an enterprise-wide PMO and strategies to help assure business area
readiness, vendor readiness, external communication and contingency planning.
The PMO Master Plan
- -------------------
The following is a description and status of each strategy in our Year 2000
program:
Information Technology
----------------------
We are using a project approach the FDIC has endorsed to help assure
continuity and efficiency among all our project teams. The approach uses the
following five steps: awareness, assessment, renovation, testing and
implementation.
o RENOVATION: We have completed assessment and renovation of all of our
core critical hardware and software systems. We are continuing through
1999 to renovate some non-core systems that are low-critical internal
systems.
o TESTING: We have completed testing 95% of the number of our core
critical applications. Additionally, we have tested our core
20
<PAGE>
applications and infrastructure in a "time machine" environment, in
which our mainframe and mid-range computers actually processed in the
December 31, 1999 to January 3, 2000 environment. During the second
quarter, we also will process in the February 28 and 29 to March 1, 2000
environment. We expect to complete testing of remaining critical
hardware and software systems by June 30, 1999. We also expect to plan
for critical dates in the year 2000, assure that future modifications to
our software applications do not introduce new date-related problems and
provide any production support that may be necessary.
o IMPLEMENTATION: As we have renovated applications we have implemented
Year 2000 versions of software. As a result, the Year 2000 versions of
all our core systems are running in production today.
In preparing for the Year 2000, we have made technology investments that
will improve our ability to support our infrastructure and deliver
improved services to our customers. These include installing a standard
NT desktop PC throughout our company, which we anticipate will be
completed by the end of the second quarter of 1999, a new wire transfer
system, introduction of online banking and improvements in
infrastructure to support around-the-clock customer access.
Credit Risk
- -----------
Our credit risk strategy includes assessing risks for existing commercial loan
relationships over $1 million and assessing all new loan relationships over $1
million. We are evaluating the need to establish additional loan loss reserves,
and will continue to monitor existing relationships for Year 2000 readiness into
the year 2000.
Investment Risk
- ---------------
We have evaluated investment risk for trust accounts for which Wilmington Trust
has investment responsibility, as well as for the Corporation's own investment
portfolio. We have implemented an investment risk strategy based on the
different types of holdings, such as equity, fixed-income or mutual funds.
Vendor Management
- -----------------
We have corresponded with providers of core services and products through
several mailings. We are continuing to assess key critical vendors, such as
power and telecommunication companies, with whom we are reviewing their systems
renovation, testing, implementation and contingency plans. We are monitoring the
status of critical vendors and have developed contingency plans where the
potential for vendors to impact the delivery of services to us is high. In
addition, the Corporation is monitoring the status of regulatory reviews of our
major service providers. Where feasible, we have tested critical vendor-supplied
products, such as software and hardware, and environmental systems such as air
conditioning and elevator systems.
Costs
- -----
The Corporation estimates that it spent $16.95 million through March 31, 1999 in
outside and internal costs toward required modifications, upgrades and
replacements of its internal systems and testing. We presently anticipate
incurring an additional $6.9 million in 1999 in outside and internal costs; a
substantial portion of these costs are associated with completion of PC
upgrades, to be completed by June 30, 1999. In the year 2000, we estimate we
21
<PAGE>
will we will spend $2.0 million in internal costs for production support. We
expect these costs to continue to be funded through operating cash flows.
We devoted approximately 30% of our available application programming and 21% of
our total internal information technology resources to the Year 2000 issue in
1998 and the first quarter of 1999. We have deferred some other information
technology projects pending resolution of the Year 2000 issue, but do not
believe those deferrals will have a material adverse impact on our financial
performance or results of operations.
Contingency Planning
- --------------------
We have assessed the potential impact of Year 2000 failures on our core business
functions and have developed contingency plans where that impact presents a high
risk. Business experts and management in each area have validated these plans to
ensure their appropriateness. We are incorporating enhancements made through
this process into finalized contingency plans, due to be completed by June 30,
1999.
As part of our contingency planning, we are monitoring our liquidity needs as
the year 2000 approaches to assure that we have sufficient cash on hand to
support any changes in customer activity. In addition, we have supplemented our
normal contingency plans to insure the temporary availability of power at our
processing facilities.
We believe we are addressing all key components necessary to resolve the Year
2000 issue. Nevertheless, it is not possible to determine with complete
certainty that all Year 2000 issues affecting us or our vendors or customers are
identified and corrected, or the duration, severity or financial consequences of
any failure. The Corporation anticipates that it is possible that it may
experience certain operational inconsistencies and inefficiencies. This may
result in, among other things, temporary delays in processing customers' checks
and payments and other transactions, and could divert the Corporation's time and
attention and financial resources from ordinary business activities. The
Corporation also could experience the possible failure of certain systems, which
may require significant efforts to prevent or alleviate material business
disruptions.
Disclaimer
- ----------
The discussion above of the Corporation's efforts and expectations relating to
Year 2000 compliance are forward-looking statements. The Corporation's ability
to achieve Year 2000 compliance and the level of incremental costs associated
with that compliance could be adversely impacted by, among other things, the
availability and cost of programming and testing resources, vendors' and
customers' ability to modify proprietary software and unanticipated problems
identified in the ongoing compliance review.
Additional Information
- ----------------------
Additional information about the Year 2000 issue is available at our Web site at
wilmingtontrust.com, or you can call us at (302) 651-1985. You also can send
your questions via fax to (302) 651-1990 or e-mail to
[email protected].
- ----------------------------
In addition, one of our regulators, the FDIC, has an informative site that
addresses the year 2000 and financial institutions for banking customers. You
can reach their site at fdic.gov/about/y2k.
------------------
Accounting Pronouncements
- -------------------------
In June 1998, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS No. 133 is required to be adopted in
all fiscal quarters of fiscal years beginning after June 15, 1999. The Statement
will require the Corporation to recognize all derivatives on its balance sheet
at their fair value. Derivatives that are not hedges must be adjusted to fair
value through income. If a derivative is a hedge, depending on the nature of the
22
<PAGE>
hedge, changes in the fair value of the derivative will be offset either against
the change in fair value of the hedged assets, liabilities or firm commitments
through earnings or recognized in other comprehensive income until the hedged
item is recognized in earnings. The ineffective portion of a derivative's change
in fair value will be recognized in earnings immediately. The Corporation has
not yet determined what the effect of SFAS No. 133 will be on its earnings or
financial position.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Net interest income is an important determinant of the Corporation's financial
performance. Through interest rate sensitivity management, the Corporation seeks
to maximize the growth of net interest income on a consistent basis by
minimizing the effects of fluctuations associated with changing market interest
rates.
The Corporation employs simulation models to measure the effect of variations in
interest rates on net interest income. The composition of assets, liabilities
and off-balance-sheet instruments and their respective repricing and maturity
characteristics are evaluated in assessing the Corporation's exposure to changes
in interest rates.
Net interest income is projected using multiple interest rate scenarios. The
results are compared to net interest income projected using stable interest
rates. The Corporation's model employs interest rate scenarios in which interest
rates gradually move up or down 250 basis points. The simulation model projects,
as of March 31, 1999, that a gradual 250-basis point increase in market interest
rates would reduce net interest income by 0.3% over a one-year period. This
figure compares to a projected decrease at December 31, 1998 of 1.5%. If
interest rates were to gradually decrease 250 basis points, the simulation model
projects, as of March 31, 1999, that net interest income would decrease 2.0%
over a one-year period. This figure compares to a projected increase at December
31, 1998 of 2.5%. The Corporation's policy limits the permitted reduction in
projected net interest income to 10% over a one-year period given a change in
interest rates.
The preceding paragraph contains certain forward-looking statements regarding
the anticipated effects on the Corporation's net interest income resulting from
hypothetical changes in market interest rates. The assumptions that the
Corporation uses regarding the effects of changes in interest rates on the
adjustment of retail deposit rates and the balances of residential mortgages,
asset-backed securities and collateralized mortgage obligations (CMOs) play a
significant role in the results the simulation model projects. The adjustment
paths are not assumed to be symmetrical.
The Corporation's model has employed assumptions that reflect the historical
adjustment paths of the Corporation's retail deposit rates to changes in the
level of market interest rates. In prior model runs, some of the Corporation's
retail deposit rates reached historic lows within the 250-basis point decline
scenario. The Corporation's model would freeze the rates for these deposit
products when they equaled their historic lows. During the first quarter of
1999, as actual interest rates on some of the Corporation's retail deposit
products reached and, in some cases, fell below their historic low points, new
assumptions have been developed. These new assumptions incorporate these recent
changes in the structure of retail deposit rates in the Corporation's market
area and project new historic low points. As was true in earlier simulations,
the model freezes these rates when they reach the new lower level. These model
assumptions (asymmetrical adjustments and rate floors based on historic lows)
limit the extent to which deposit rates are expected to adjust in a declining
rate scenario and contribute to the projected simulation results.
Changes in the balances of residential mortgages, CMOs and asset-backed
securities are driven by contractual obligations and prepayments. While
contractual obligations are not typically influenced by changes in interest
rates, prepayment activity (including refinancing) can shift dramatically with
changes in interest rates. The Corporation's prepayment assumptions are based on
industry estimates for loans with similar coupons and remaining maturities. A
250-basis point decline in interest rates can lead to a significant increase in
23
<PAGE>
prepayments when available reinvestment opportunities of similar risk carry
lower returns. Conversely, should interest rates rise 250 basis points, the same
balances are not likely to prepay at the same rate, but instead are likely to
lengthen in effective maturity as debtors elect not to prepay and to retain
these now below-market credit terms for as long as possible. Holders of
mortgages, asset-backed securities and CMOs are left with returns below those
prevailing in the current environment. This prepayment-driven effect also
contributes to the projected simulation results.
During the first quarter of 1999, the Corporation sold certain fixed-rate
residential mortgage loans into the secondary market. The primary goal of this
program is to reduce the risk that the average duration of these fixed-rate
residential mortgage loans would extend well beyond the duration that was
anticipated at origination, as frequently occurs during periods of rising
interest rates. Mortgage loans sold during the first quarter of 1999 totaled
$37.8 million.
Management reviews the Corporation's rate sensitivity regularly, and may employ
a variety of strategies as needed to adjust that sensitivity. These include
changing the relative proportions of fixed-rate and floating-rate assets and
liabilities, as well as utilizing off-balance-sheet measures such as interest
rate swaps and interest rate floors.
At March 31, 1999, the Corporation was not committed to any interest rate swaps,
compared to a total notional amount of $25 million at year-end 1998. At March
31, 1999, the Corporation was committed to interest rate floors with a total
notional amount of $325 million, unchanged from year-end 1998. The floors have
remaining maturities of between 4 and 39 months, with a weighted average
maturity of 15 months. The net interest differential, the amortization of the
initial fees associated with the purchase of the floors and any gains recorded
on sale are reported under the caption "Interest and fees on loans" and are
recognized over the lives of the respective instruments. See "Net Interest
Income."
24
<PAGE>
Part II. Other Information
Item 1 - Legal Proceedings
Not Applicable
Item 2 - Change In Securities
Not Applicable
Item 3 - Defaults Upon Senior Securities
Not Applicable
Item 4 - Submission of Matters to a Vote of Security Holders
Not Applicable
Item 5 - Other Information
Not Applicable
Item 6 - Exhibits and Reports on Form 8-K
The exhibits listed below are being filed as part of this report.
These exhibits will be made available to any shareholder upon receipt
of a written request therefor, together with payment of $.20 per page
for duplicating costs.
Exhibit Number Exhibit
- -------------- -------------------------------------------------
11 Statement re computation of per share earnings
27 Financial data schedule
25
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 14, 1999 /s/ David R. Gibson
--------------------------------------------
Name: David R. Gibson
Title: Senior Vice President and
Chief Financial Officer
(Authorized Officer and Principal
Accounting Officer)
26
Statement Re Computation of Per Share Earnings
- ----------------------------------------------
Basic earnings per share of $.88 for the first quarter of 1999 were computed by
dividing net income of $29,155,531 by the weighted average number of shares of
common stock outstanding during the quarter of 33,075,049.
27
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE CORPORATION'S FORM 10-Q FOR THE PERIOD
ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000872821
<NAME> WILMINGTON TRUST CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 207,494
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 32,400
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,451,820
<INVESTMENTS-CARRYING> 44,909
<INVESTMENTS-MARKET> 45,384
<LOANS> 4,413,991
<ALLOWANCE> 73,690
<TOTAL-ASSETS> 6,468,918
<DEPOSITS> 4,463,983
<SHORT-TERM> 1,202,639
<LIABILITIES-OTHER> 96,003
<LONG-TERM> 168,000
0
0
<COMMON> 39,264
<OTHER-SE> 499,029
<TOTAL-LIABILITIES-AND-EQUITY> 6,468,918
<INTEREST-LOAN> 87,201
<INTEREST-INVEST> 19,907
<INTEREST-OTHER> 280
<INTEREST-TOTAL> 107,388
<INTEREST-DEPOSIT> 33,833
<INTEREST-EXPENSE> 49,569
<INTEREST-INCOME-NET> 57,819
<LOAN-LOSSES> 5,000
<SECURITIES-GAINS> 20
<EXPENSE-OTHER> 55,043
<INCOME-PRETAX> 43,375
<INCOME-PRE-EXTRAORDINARY> 29,156
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,156
<EPS-PRIMARY> 0.88
<EPS-DILUTED> 0.87
<YIELD-ACTUAL> 4.14
<LOANS-NON> 33,485
<LOANS-PAST> 40,076
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 60,915
<ALLOWANCE-OPEN> 71,906
<CHARGE-OFFS> 3,789
<RECOVERIES> 573
<ALLOWANCE-CLOSE> 73,690
<ALLOWANCE-DOMESTIC> 64,452
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 9,238
</TABLE>
