##### 








---



##### 








---



##### 



2006 AT A GLANCE
 
  
 Increase/For the year ended December 31
    
    2006
    
    
    2005
    
    
    (decrease)OPERATING RESULTS(in millions)Net interest income
    
    $
    363.1
    
    
    $
    328.9
    
    
    
    10.4
    %Provision for loan losses
    
    
    (21.3
    )
    
    
    (11.8
    )
    
    
    80.5Noninterest income
    
    
    346.1
    
    
    
    313.3
    
    
    
    10.5Noninterest expense
    
    
    471.6
    
    
    
    370.1
    
    
    
    27.4Net income
    
    
    143.8
    
    
    
    167.0
    
    
    
    (13.9
    )Net income excluding impairment write-down1
    
    $
    185.5
    
    
    $
    167.0
    
    
    
    11.1PER-SHARE DATANet income per share (diluted)
    
    $
    2.06
    
    
    $
    2.43
    
    
    
    (15.2
    )%Net income per share (diluted) excluding
impairment write-down1
    
    
    2.66
    
    
    
    2.43
    
    
    
    9.5Dividends paid per share
    
    
    1.245
    
    
    
    1.185
    
    
    
    5.1Weighted average shares outstanding
(in thousands, diluted)
    
    
    69,707
    
    
    
    68,570AVERAGE BALANCES(in millions)Investment securities portfolio
    
    $
    1,893.1
    
    
    $
    1,876.6
    
    
    
    0.9
    %Loans
    
    
    7,699.8
    
    
    
    7,047.1
    
    
    
    9.3Reserve for loan losses
    
    
    (91.8
    )
    
    
    (90.9
    )
    
    
    1.0Earning assets
    
    
    9,645.7
    
    
    
    8,957.4
    
    
    
    7.7Total assets
    
    
    10,495.1
    
    
    
    9,803.0
    
    
    
    7.1Core deposits
    
    
    4,919.1
    
    
    
    4,866.6
    
    
    
    1.1Stockholders equity
    
    
    1,059.1
    
    
    
    949.3
    
    
    
    11.6ASSETS UNDER MANAGEMENT(in billions)Wilmington Trust Company
    
    $
    29.0
    
    
    $
    26.0
    
    
    
    11.5
    %Cramer Rosenthal McGlynn
    
    
    10.6
    
    
    
    8.9
    
    
    
    19.1Roxbury Capital Management
    
    
    3.1
    
    
    
    3.3
    
    
    
    (6.1
    )Combined assets under management
    
    
    42.7
    
    
    
    38.2
    
    
    
    11.8STATISTICS AND RATIOSReturn on average assets
    
    
    1.37
    %
    
    
    1.70
    %Return on average stockholders equity
    
    
    13.58
    %
    
    
    17.59
    %Net interest margin (taxable equivalent)
    
    
    3.79
    %
    
    
    3.71
    %Staff members (full-time equivalent)
    
    
    2,562
    
    
    
    2,469
    
    
    
    3.8
    %
 
 1
    
    In 2006 we recorded a non-cash impairment
write-down on our investment in affiliate money manager
Roxbury Capital Management. We show amounts excluding this
write-down when we believe they give investors a more
relevant basis on which to evaluate our performance. For a
detailed comparison of 2006 results with and without the
impairment write-down, please see page 52 of this report.




---



##### 



TO OUR SHAREHOLDERS
        
 MAXIMIZING
CURRENT CAPACITY WHILE INVESTING IN THE FUTURE
 
   
 Ted T. Cecala
Chairman and Chief Executive Officer
Wilmington Trust
  
    
    Developed business with new clients
    
    Attracted more business from existing clients
    
    Produced record-high revenue
    
    Improved profitability and efficiency
    
    Invested for future growth
  
 2006      Annual Report
    
    1




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##### 




    
    We remained the market
leader in Delaware
    
    We continued to expand
commercial lending in
Maryland, New Jersey, and
Pennsylvania
    
    Credit quality remained stable
  
    
    Marketed our institutional investment services more actively
    
    Developed more business in Europe
    
    Acquired a corporate services provider in the Cayman Islands
    
  
   2      Chairmans Letter
    
    Wilmington Trust Corporation




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##### 




    
    We significantly expanded
family office services
    
    Demand was strong for trust
and investment advisory services
    
    Sales in Pennsylvania were
particularly strong
  
    
    Total revenue rose 9%
    
    Headcount increased 4%
    
    Net income per staff member increased 7%1
 
 
 1
 1
    
    Excluding impairment
write-down. Including the
impairment write-down, net income
per staff member in 2006 was
$56,100, a decrease of 17%.
          2006      Annual Report
    
    3




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##### 



Ted T. Cecala
Chairman and Chief Executive Officer
 4      Chairmans Letter
    
    Wilmington Trust Corporation




---



##### 



TABLE OF CONTENTS
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe purpose of this discussion is to help investors gauge how well we
executed our strategy to produce consistent results over the long term
    
    
    6We start with a summary of our 2006 resultsSummary of financial performanceThen we provide more detail about each of our three businesses
and other factors that affected our 2006 resultsRegional Banking
    
    
    10Corporate Client Services
    
    
    18Wealth Advisory Services
    
    
    22Assets under management and administration
    
    
    26Affiliate Money Managers
    
    
    27Then we discuss how we manage capital and fund our business activitiesCapital resources
    
    
    29RISKWe are exposed to a variety of risks in the normal course of businessThis section discusses our primary risks and the steps we take to mitigate themAsset quality and credit risk
    
    
    37Interest rate risk
    
    
    43Financial market risk
    
    
    46Economic risk
    
    
    47Operational and fiduciary risk
    
    
    48Regulatory risk
    
    
    48Legal risk
    
    
    49OTHER INFORMATIONOff-balance-sheet arrangements and contractual obligations are in this section
    
    
    49SELECTED FINANCIAL DATAComparison of 2006 results with and without the non-cash impairment write-down
    
    
    52Other multiyear comparisons of financial results
    
    
    54AUDITED CONSOLIDATED FINANCIAL STATEMENTS
    
    
    63NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    
    
    70MANAGEMENTS DISCUSSION OF FINANCIAL RESPONSIBILITYHere we
affirm our commitment to presenting information that is complete, transparent, and understandable
    
    
    102REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    
    103BOARD OF DIRECTORS AND PRINCIPAL OFFICERS
    
    
    105STOCKHOLDER INFORMATIONWe conclude
with information about our stock, dividend, transfer agent, how to contact us, and other items of interest to shareholders
    
    
    106
 2006 Annual Report
    
    5




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
  
 ABOUT WILMINGTON TRUST
 
     
    
    investing in businesses that
have the most potential for long-term
growth or high operating profit
margins;
    
    being the market
leader in each of our businesses; and
    
    increasing profitability
without compromising our overall risk
profile.
 
 SUMMARY OF FINANCIAL PERFORMANCE
     
    
    are not reliant on a single
source of revenue;
    
    manage risk
conservatively; and
    
    regularly
invest our capital for future growth.
    6     MD&A
    
    Wilmington Trust Corporation




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##### 




    
    In Regional Banking, we added offices in Pennsylvania and
New Jersey, hired more staff for our Baltimore office, and
launched an Internet-only bank, WTDirect, in November.
    
    In Corporate Client Services, we made an acquisition that
expanded our Cayman Islands business, added services to
support collateralized debt
 2006 Annual Report
    
    7




---



##### 




    
    In Wealth Advisory Services, we launched the Wilmington
Family Office practice on the East Coast, and we hired
private client advisors to team with commercial bankers in
the new Pennsylvania and New Jersey offices.
 
    
    Our major technology investments were for WTDirect, CDO
services, improving the banking platform, and automating
some of the transaction monitoring we must perform in order
to comply with the USA PATRIOT Act, the Bank Secrecy Act,
the Sarbanes-Oxley Act, and other regulatory requirements.
    
  
    
    The amount of subadvisor expense included a nonrecurring
credit of approximately $1 million that we recorded as a
result of account reconciliations made when we consolidated
subadvisor expense under Wilmington Trust Investment
Management. Subadvisor expense represents the payments we
make to third-party investment advisors. Absent this
credit, subadvisor expense for 2005 would have been $1
million higher.
 
    
    The amount of other noninterest expense reported for 2005
included approximately $1 million of product development
expense. Absent this amount, other noninterest expense for
2005 would have been approximately $1 million lower.
 8     MD&A
    
    Wilmington Trust Corporation




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##### 



Income taxes and tax rate
 2006(excluding impairment2006
    
    
    write-down)
    
    
    2005
    
    
    2004Pre-tax income
(in millions)
    
    $
    216.3
    
    
    $
    288.6
    
    
    $
    260.3
    
    
    $
    215.7Income tax expense
(in millions)
    
    $
    72.7
    
    
    $
    103.3
    
    
    $
    93.0
    
    
    $
    77.9Effective tax rate
    
    
    33.61
    %
    
    
    35.79
    %
    
    
    35.73
    %
    
    
    36.11
    %
  Efficiency ratios
 2006
    
    
    2005
    
    
    2004Regional Banking
    
    
    40.57
    %
    
    
    42.56
    %
    
    
    44.88
    %Wealth Advisory Services
    
    
    77.63
    %
    
    
    77.97
    %
    
    
    82.22
    %Corporate Client Services
    
    
    73.67
    %
    
    
    76.48
    %
    
    
    74.40
    %Wilmington Trust consolidated
    
    
    66.10
    %
    
    
    57.28
    %
    
    
    59.72
    %Wilmington Trust consolidated absent
non-cash charge
    
    
    55.96
    %
    
    
    
    
    
    
    
   2006 Annual Report
    
    9




---



##### 



REGIONAL BANKING
 
 OVERVIEW OF REGIONAL BANKING
     
  All key measures of Regional Banking performance increased in 2006.
  Regional
Banking performance indicators
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.on average)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Commercial loans
    
    $
    5,195.0
    
    
    $
    4,673.5
    
    
    $
    4,274.8
    
    
    
    11.2
    %
    
    
    9.3
    %Retail loans
    
    
    2,504.8
    
    
    
    2,373.6
    
    
    
    2,195.6
    
    
    
    5.5
    %
    
    
    8.1
    %Total loans
    
    $
    7,699.8
    
    
    $
    7,047.1
    
    
    $
    6,470.4
    
    
    
    9.3
    %
    
    
    8.9
    %Core deposits
    
    $
    4,919.1
    
    
    $
    4,866.6
    
    
    $
    4,553.7
    
    
    
    1.1
    %
    
    
    6.9
    %
   We increased the geographic scope of our commercial banking presence.
 10
    
    MD&A
    
    Wilmington Trust Corporation




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##### 



We maintained our leadership of the commercial and consumer banking markets in Delaware. 2006 Market Share Report
 
  Credit
quality remained stable, and the internal risk rating analysis gave pass ratings to more
than 97% of loans outstanding.
 On a percentage basis, the composition of the loan portfolio remained well diversified among
commercial and consumer loans.
 In November we introduced WTDirect, an Internet-only delivery channel, with a high-interest savings
account that targets the mass-affluent market.
 We invested in technology to improve client service and increase efficiency.
 REGIONAL BANKING PROFITABILITY
  1
 
 1Excluding impairment write-down. Including impairment write-down, Regional
Banking contributed 94% of net income.
 2006 Annual Report
    
    
    11




---



##### 



Delaware market share
 Wilmington
    
    
    NextTrust
    
    
    highest(Dollars in billions)
    
    Company
    
    
    balance1Commercial loans
    
    $
    4.7
    
    
    $
    1.2Consumer loans
    
    $
    2.3
    
    
    $
    1.8Total loans
    
    $
    7.0
    
    
    $
    2.2Core deposits
    
    $
    4.7
    
    
    $
    2.4
 Source: Federal Deposit Insurance
Corporation 2006 Market Share Report
 1
    
    Consumer and commercial loan balances
are not from the same bank, which is why these
two categories of loans do not sum to total
loans.
    Regional Banking profitability
 For the year ended December 31(dollar amounts in millions)
    
    2006
    
    
    2005
    
    
    2004Net interest income
    
    $
    334.9
    
    
    $
    303.1
    
    
    $
    266.9Provision for loan losses
    
    
    (20.5
    )
    
    
    (11.2
    )
    
    
    (15.5
    )Noninterest income
    
    
    52.0
    
    
    
    51.1
    
    
    
    49.5Noninterest expense
    
    
    (158.5
    )
    
    
    (152.2
    )
    
    
    (143.8
    )Income before taxes and minority interest
    
    
    207.9
    
    
    
    190.8
    
    
    
    157.1Taxes and minority interest
    
    
    (73.0
    )
    
    
    (67.3
    )
    
    
    (54.8
    )Net income
    
    $
    134.9
    
    
    $
    123.5
    
    
    $
    102.3Efficiency ratio
    
    
    40.57
    %
    
    
    42.56
    %
    
    
    44.88
    %
  MIDDLE MARKET GROWTH OPPORTUNITIES
 Number of middle market businessesDelaware
    
    
    715Philadelphia metropolitan area
    
    
    5,367Baltimore metropolitan area
    
    
    3,731Central & southern New Jersey
    
    
    3,276Total
    
    
    13,089
 Source: Dun & Bradstreet 2006
 COMMERCIAL LOANS
 Commercial loan balances exceeded $5 billion for the first time.
 12
    
    MD&A
    
    Wilmington Trust Corporation




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##### 



Commercial loan balances
 
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.on average)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Commercial, financial, and
agricultural loans
    
    $
    2,437.4
    
    
    $
    2,462.1
    
    
    $
    2,374.4
    
    
    
    (1.0
    )%
    
    
    3.7
    %Commercial real estate/
construction loans
    
    
    1,516.8
    
    
    
    982.3
    
    
    
    731.8
    
    
    
    54.4
    %
    
    
    34.2
    %Commercial mortgage loans
    
    
    1,240.8
    
    
    
    1,229.1
    
    
    
    1,168.6
    
    
    
    1.0
    %
    
    
    5.2
    %Total commercial loans
    
    $
    5,195.0
    
    
    $
    4,673.5
    
    
    $
    4,274.8
    
    
    
    11.2
    %
    
    
    9.3
    %
 Most of the 2006 and 2005 growth in commercial loan balances came from commercial
construction/real estate (CRE)  lending.
  Population growth, not investor speculation, is driving CRE loan demand.
 Our CRE clients are primarily Delaware Valley-based developers who own their own companies.
 We believe we are managing CRE risk effectively because we:
 
    
    Evaluate the cash flow and financial position of each CRE
borrower by client, as well as by project.
    
    Apply our loan underwriting standards consistently.
    
    Obtain personal guarantees from most CRE borrowers.
    
    Limit CRE loans to relatively short terms, which gives us the ability to adjust our loan mix,
if necessary, to mitigate the effects of a downturn in any single market segment.
    
    Disperse CRE lending throughout Delaware, Pennsylvania, New
Jersey, and Maryland.
   USA Today
 Kiplingers
 2006 Annual Report
    
    
    13




---



##### 



Commercial real estate/construction and
mortgage loans
 As of December 31
    
    2006
    
    
    2005Loan status:Construction
    
    
    50
    %
    
    
    43
    %Owner-occupied
    
    
    21
    
    
    
    23Permanent
    
    
    17
    
    
    
    19Interim
    
    
    6
    
    
    
    7Other
    
    
    6
    
    
    
    8Loan project type:Residential tract
    
    
    39
    %
    
    
    37
    %Owner-occupied
    
    
    21
    
    
    
    23Retail
    
    
    9
    
    
    
    10Office
    
    
    7
    
    
    
    4Other
    
    
    24
    
    
    
    26Geographic location:Delaware
    
    
    61
    %
    
    
    63
    %Pennsylvania
    
    
    22
    
    
    
    21Maryland
    
    
    10
    
    
    
    10New Jersey
    
    
    5
    
    
    
    5Other
    
    
    2
    
    
    
    1
 CRE net charge-offs have been minimal over the past five years.
 CRE net charge-offs
 (In millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002CRE net charge-offs
    
    $
    0.3
    
    
    $
    0.1
    
    
    $
    (0.8
    )
    
    $
    0.0
    
    
    $
    (1.4
    )
  The pace of growth in CRE balances slowed somewhat during the second half of the year.
 Commercial loans by loan size
 
 As of December 31
    
    2006
    
    
    2005
    
    
    2004Less than $250 thousand
    
    
    3
    %
    
    
    4
    %
    
    
    5
    %$250 thousand to $1 million
    
    
    12
    
    
    
    13
    
    
    
    13$1 million to $5 million
    
    
    36
    
    
    
    37
    
    
    
    38$5 million to $10 million
    
    
    22
    
    
    
    26
    
    
    
    24$10 million to $20 million
    
    
    20
    
    
    
    14
    
    
    
    12More than $20 million
    
    
    7
    
    
    
    6
    
    
    
    8
 Commercial real estate underwriting standards
 
 Maximum term:
    
    Two years on unimproved landThree years on development loansTarget loan size:
    
    $1 million to $10 millionMaximum loan-to-value requirements:
    
    65% on unimproved land75% on land development80% on residential construction andincome-producing propertiesConstruction limits on residential projects:
    
    Pre-sold inventory plus a maximum ofsix unsold single family homes or 10 unsoldtown homes
 RETAIL LOANS
  14
    
    MD&A
    
    Wilmington Trust Corporation




---



##### 



Retail loan balances
 
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.on average)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Consumer loans
    
    $
    1,458.2
    
    
    $
    1,329.3
    
    
    $
    1,134.1
    
    
    
    9.7
    %
    
    
    17.2
    %Residential
mortgage loans
    
    
    495.2
    
    
    
    438.6
    
    
    
    453.8
    
    
    
    12.9
    %
    
    
    (3.3
    )%Loans secured with
liquid collateral
    
    
    551.4
    
    
    
    605.7
    
    
    
    607.7
    
    
    
    (9.0
    )%
    
    
    (0.3
    )%Total retail loans
    
    $
    2,504.8
    
    
    $
    2,373.6
    
    
    $
    2,195.6
    
    
    
    5.5
    %
    
    
    8.1
    %
 CONSUMER LOANS
  Consumer loan balances
 
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.on average)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Indirect loans
    
    $
    657.3
    
    
    $
    605.1
    
    
    $
    532.4
    
    
    
    8.6
    %
    
    
    13.7
    %Home equity
lines of credit
    
    
    321.9
    
    
    
    323.3
    
    
    
    268.7
    
    
    
    (0.4
    )%
    
    
    20.3
    %Credit card loans
    
    
    60.9
    
    
    
    59.0
    
    
    
    57.4
    
    
    
    3.2
    %
    
    
    2.8
    %Other consumer
loans
    
    
    418.1
    
    
    
    341.9
    
    
    
    275.6
    
    
    
    22.3
    %
    
    
    24.1
    %Total consumer
loans
    
    $
    1,458.2
    
    
    $
    1,329.3
    
    
    $
    1,134.1
    
    
    
    9.7
    %
    
    
    17.2
    %
 REGIONAL BANKING
 COMPETITIVE ADVANTAGES
 Locally
based.
 Relationship focus.
 Targeted
markets.
 Team-based business model.
 Market leadership. 1
 Brand recognition.
 1  Source:Federal Deposit Insurance Corporation
 2006 Annual Report
    
    
    15




---



##### 



Loans recorded as other consumer loans accounted for most of the increase in total consumer
loans for 2006, on average.
 Indirect loan balances rose in 2006 mainly because we focused on making more of these loans in
Pennsylvania, Maryland, and New Jersey.
  Geographic sources of consumer loans
 For the year endedDecember 31
    
    2006
    
    
    2005
    
    
    2004Percentage booked
in Delaware
    
    
    78
    %
    
    
    81
    %
    
    
    84
    %Percentage booked
in Pennsylvania
    
    
    7
    
    
    
    6
    
    
    
    7Percentage booked
in Maryland
    
    
    15
    
    
    
    13
    
    
    
    9
 RESIDENTIAL MORTGAGE LOANS
  Residential mortgage activity
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.(dollars in millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Number of residential
mortgages originated
    
    
    972
    
    
    
    1,077
    
    
    
    834
    
    
    
    (9.7
    )%
    
    
    29.1
    %Residential mortgage
origination volumes
    
    $
    225.3
    
    
    $
    221.0
    
    
    $
    136.6
    
    
    
    1.9
    %
    
    
    61.8
    %Residential mortgage
balances, on average
    
    $
    495.2
    
    
    $
    438.6
    
    
    $
    453.8
    
    
    
    12.9
    %
    
    
    (3.3
    )%
 16
    
    MD&A
    
    Wilmington Trust Corporation




---



##### 



Compared
to 2005, residential mortgage balances were higher for 2006, but the number of
originations was lower.
  Geographic sources of loans and deposits
 For the yearendedDecember 31
    
    2006
    
    
    2005
    
    
    2004Loan balances, on average:Percent from
Delaware market
    
    
    73
    %
    
    
    75
    %
    
    
    77
    %Percent from
Pennsylvania
market
    
    
    22
    
    
    
    21
    
    
    
    20Percent from
other markets
    
    
    5
    
    
    
    4
    
    
    
    3Core deposit balances,
on average:Percent from
Delaware market
    
    
    94
    
    
    
    94
    
    
    
    95Percent from
Pennsylvania
market
    
    
    5
    
    
    
    5
    
    
    
    4Percent from
other markets
    
    
    1
    
    
    
    1
    
    
    
    1
 CORE DEPOSITS
 3
 3
 Core deposit balances
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.on average)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Noninterest-bearing
demand deposits
    
    $
    759.1
    
    
    $
    992.0
    
    
    $
    927.5
    
    
    
    (23.5
    )%
    
    
    7.0
    %Savings deposits
    
    
    311.4
    
    
    
    344.9
    
    
    
    369.1
    
    
    
    (9.7
    )%
    
    
    (6.6
    )%Interest-bearing
demand deposits
    
    
    2,347.5
    
    
    
    2,303.8
    
    
    
    2,311.1
    
    
    
    1.9
    %
    
    
    (0.3
    )%CDs < $100,000
    
    
    979.4
    
    
    
    824.4
    
    
    
    768.3
    
    
    
    18.8
    %
    
    
    7.3
    %Local CDs 3 $100,000
    
    
    521.7
    
    
    
    401.5
    
    
    
    177.7
    
    
    
    29.9
    %
    
    
    125.9
    %Total core deposits
    
    $
    4,919.1
    
    
    $
    4,866.6
    
    
    $
    4,553.7
    
    
    
    1.1
    %
    
    
    6.9
    %
 2006 Annual Report
    
    
    17




---



##### 



Local
CDs 3$100, 000 by type of client
 As of December 31
    
    2006
    
    2005DE consumer clients
    
    
    74
    %
    
    
    65
    %DE commercial banking clients
    
    
    11
    
    
    
    12PA commercial banking clients
    
    
    8
    
    
    
    9Wealth
Advisory Services clients
    
    
    7
    
    
    
    14
 CD balances rose substantially in 2006.
 The CD balance increases were offset by declines in noninterest-bearing demand and savings deposit
balances.
 Account sweeps we instituted in December 2005 contributed to the 2006 decrease in noninterest-bearing demand deposits.
 
 
 CORPORATE CLIENT SERVICES
 
 OVERVIEW
  Capital markets services
 Entity management services
 CORPORATE CLIENT SERVICES
 COMPETITIVE ADVANTAGES
 Conflict-free.
 Credibility.
 Market presence.
 Superior service.
 18       MD&A
    
    Wilmington Trust Corporation




---



##### 



Retirement services
 Investment and cash management services
    Corporate Client Services revenue
 ChangeFor the year ended December 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    2005 vs.(dollars in millions)
    
    2006
    
    2005
    
    2004
    
    2005
    
    2004Capital markets
    
    $
    37.0
    
    
    $
    34.3
    
    
    $
    31.7
    
    
    
    7.9
    %
    
    
    8.2
    %Entity management
    
    
    26.8
    
    
    
    23.6
    
    
    
    22.6
    
    
    
    13.6
    %
    
    
    4.4
    %Retirement services
    
    
    11.5
    
    
    
    10.7
    
    
    
    9.2
    
    
    
    7.5
    %
    
    
    16.3
    %Investment and
cash management
    
    
    10.3
    
    
    
    7.7
    
    
    
    8.1
    
    
    
    33.8
    %
    
    
    (4.9
    )%Total CCS revenue
    
    $
    85.6
    
    
    $
    76.3
    
    
    $
    71.6
    
    
    
    12.2
    %
    
    
    6.6
    %
 
 CCS RESULTS
  We marketed our fixed income investment and cash management capabilities more actively.
 2006 Annual Report
    
    19




---



##### 



We developed more business in Europe, which drove the growth in entity management revenue.
  
 We expanded our physical presence in Europe.
  We grew our entity management business in the Cayman Islands.
 The capital markets component continued to account for the majority of CCS revenue.
 
 We added new products and capabilities.
 20     MD&A
    
    Wilmington Trust Corporation




---



##### 



We focused on niche markets for retirement services.
 
 CORPORATE CLIENT SERVICES PROFITABILITY
   1
 1
    
    Excluding impairment write-down. Including impairment
write-down, CCS contributed 13% of net income. Corporate Client Services profitability
 For the year ended December 31(dollars in millions)
    
    
    2006
        
    
    
    2005
    
    
    
    2004Net interest income
    
    $
    15.0
    
    
    $
    11.4
    
    
    $
    10.0Provision for loan losses
    
    
    
    
    
    
    
    
    
    
    Noninterest income
    
    
    95.3
    
    
    
    84.5
    
    
    
    80.7Noninterest expense
    
    
    (81.4
    )
    
    
    (73.5
    )
    
    
    (67.7
    )Income before taxes and minority interest
    
    
    28.9
    
    
    
    22.4
    
    
    
    23.0Taxes and minority interest
    
    
    (10.1
    )
    
    
    (8.1
    )
    
    
    (8.9
    )Net income
    
    $
    18.8
    
    
    $
    14.3
    
    
    $
    14.1Efficiency ratio
    
    
    73.67
    %
    
    
    76.48
    %
    
    
    74.40
    %
  2006 Annual Report
    
    21




---



##### 



WEALTH ADVISORY SERVICES
 
 OVERVIEW
  WEALTH
ADVISORY SERVICESCOMPETITIVE ADVANTAGES
 100+ years of experience.
 Holistic approach.
 Objective investment advice.
 In-depth knowledge of Delawares legal and tax advantages.
 Brand recognition.
 Long-term relationships.
     WE REPORT WAS REVENUE IN THREE COMPONENTS:
 Trust and investment advisory revenue
 22     MD&A
    
    Wilmington Trust Corporation




---



##### 



Planning and other services revenue
 Mutual fund revenue
  Wealth Advisory Services revenue
 ChangeFor the year ended December 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    2005 vs.(in millions)
    
    
    2006
    
    
    
        2005
    
    
    
        2004
    
    
    
      2005
    
    
    
        2004Trust and investment
advisory services
    
    $
    136.1
    
    
    $
    123.9
    
    
    $
    111.0
    
    
    
    9.8
    %
    
    
    11.6
    %Planning and
other services
    
    
    20.2
    
    
    
    17.8
    
    
    
    19.2
    
    
    
    13.5
    %
    
    
    (7.3
    )%Mutual fund fees
    
    
    35.7
    
    
    
    30.4
    
    
    
    25.4
    
    
    
    17.4
    %
    
    
    19.7
    %Total WAS revenue
    
    $
    192.0
    
    
    $
    172.1
    
    
    $
    155.6
    
    
    
    11.6
    %
    
    
    10.6
    %
 
 WAS RESULTS
  We expanded family office services on the East Coast.
 2006 Annual Report
    
    23




---



##### 



The family office expansion accounted for much of the increase in planning revenue.
 
 We opened new offices in Pennsylvania and New Jersey and added staff in other markets.
 
 Trust and investment advisory services continued to account for the majority of WAS revenue.
 We enhanced our investment platform.
 We increased external distribution of our investment management capabilities. ® ® SM ®
 
 WAS sales rose 6% to $20.0 million.
 We captured second place in the mixed-equity funds category of the 2006 Lipper/ Barrons Fund
Families Survey of relative mutual fund performance. 1
 Our staff earned national recognition. Worth Private Asset Management
 
 1 Source: Best of the Best by Lawrence C. Strauss, , February 5, 2007.
 24       MD&A
    
    Wilmington Trust Corporation




---



##### 



1
 
 1
    
    Excluding impairment write-down. Including impairment write-down WAS contributed 20% of net income. WEALTH ADVISORY SERVICES PROFITABILITY
   Wealth Advisory Services profitability
 For the year ended December 31(dollars in millions)
    
    
    2006
    
    
    
    2005
    
    
    
    2004Net interest income
    
    $
    25.7
    
    
    $
    24.1
    
    
    $
    23.3Provision for loan losses
    
    
    (0.8
    )
    
    
    (0.6
    )
    
    
    (0.1
    )Noninterest income
    
    
    179.2
    
    
    
    160.8
    
    
    
    144.6Noninterest expense
    
    
    (159.3
    )
    
    
    (144.4
    )
    
    
    (138.3
    )Income before taxes and minority interest
    
    
    44.8
    
    
    
    39.9
    
    
    
    29.5Taxes and minority interest
    
    
    (15.4
    )
    
    
    (13.5
    )
    
    
    (11.8
    )Net income
    
    $
    29.4
    
    
    $
    26.4
    
    
    $
    17.7Efficiency ratio
    
    
    77.63
    %
    
    
    77.97
    %
    
    
    82.22
    %
 Percentage contribution to total WAS sales by market
 2006
    
    
    
    2005
    
    
    
    2004California
    
    
    4
    %
    
    
    5
    %
    
    
    7
    %Delaware
    
    
    55
    %
    
    
    48
    %
    
    
    52
    %Florida
    
    
    8
    %
    
    
    8
    %
    
    
    5
    %Georgia
    
    
    3
    %
    
    
    6
    %
    
    
    7
    %Maryland
    
    
    2
    %
    
    
    2
    %
    
    
    1
    %New York
    
    
    11
    %
    
    
    14
    %
    
    
    15
    %Pennsylvania
    
    
    17
    %
    
    
    17
    %
    
    
    13
    %Total WAS sales (in millions)
    
    $
    20.0
    
    
    $
    18.9
    
    
    $
    21.5
  2006 Annual Report
    
    25




---



##### 



ASSETS UNDER MANAGEMENT AND ADMINISTRATION
 
    
    
    Asset management is only one of the wealth management services we provide and the
investment strategies we design for clients take wealth planning, wealth preservation,
wealth transition, and tax considerations into account in addition to asset
appreciation.
 
    
    Only the portion of WAS revenue that we record as trust and
investment advisory revenue is based on asset
valuations. Trust and investment advisory revenue accounted
for 71% of total WAS revenue for 2006 and 2005.
 
    
    Delaware law permits direction trusts, in which clients may
establish trusts with a fiduciary institution and have the
assets in the trust managed by a different institution. The
fees we receive for direction trust services are based on
trust asset valuations but direction trust assets are not
included in our assets under management or administration. We
include direction trust fees in WAS trust and investment
advisory revenue.
 
    
    Except for revenue from investment and cash management
services, the majority of CCS revenue is generated on a
fee-for-service basis, regardless of the size of any
associated asset.
 
    
    Monetary assets we manage or administer for CCS clients can
fluctuate by hundreds of millions of dollars from one
reporting period to the next, depending on the clientscash
management needs.
  26   MD&A




---



##### 



Client assets 1
 ChangeAs of December 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.(in billions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Assets under
management2
    
    $
    29.0
    
    
    $
    26.0
    
    
    $
    26.5
    
    
    
    12
    %
    
    
    (2
    )%Assets under
administration
    
    
    76.3
    
    
    
    74.9
    
    
    
    72.5
    
    
    
    2
    %
    
    
    3
    %Total
    
    $
    105.3
    
    
    $
    100.9
    
    
    $
    99.0
    
    
    
    4
    %
    
    
    2
    %
 1
    
    Excluding Cramer Rosenthal McGlynn and Roxbury Capital Management2
    
    Includes estimates of asset values that are not
readily ascertainable, such as those held in limited
partnerships Investment mix of assets under management 1
 As of December 31
    
    2006
    
    
    2005
    
    
    2004Equities
    
    
    48
    %
    
    
    56
    %
    
    
    59
    %Fixed income
    
    
    28
    
    
    
    23
    
    
    
    23Cash and equivalents
    
    
    13
    
    
    
    12
    
    
    
    12Other assets
    
    
    11
    
    
    
    9
    
    
    
    6
 
 1
    
    Excluding Cramer Rosenthal McGlynn and Roxbury Capital Management 
  AFFILIATE MONEY MANAGERS
    
  27




---



##### 



Cramer Rosenthal McGlynn
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.(in millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Assets under
management
at CRM
    
    $
    10,623.8
    
    
    $
    8,899.0
    
    
    $
    6,927.2
    
    
    
    19.4
    %
    
    
    28.5
    %Revenue contribution
from CRM
    
    $
    19.3
    
    
    $
    16.1
    
    
    $
    10.9
    
    
    
    19.9
    %
    
    
    47.7
    %
   Cramer Rosenthal McGlynn ownership
 At December 31(%)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000
    
    
    1999
    
    
    1998Ownership
position
in CRM
    
    
    81.73
    
    
    
    77.24
    
    
    
    77.24
    
    
    
    69.14
    
    
    
    63.47
    
    
    
    56.53
    
    
    
    56.53
    
    
    
    34.00
    
    
    
    24.00
 
  Roxbury Capital Management
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.(in millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Assets under
management
at RCM
    
    $
    3,138.1
    
    
    $
    3,287.3
    
    
    $
    3,138.6
    
    
    
    (4.5
    )%
    
    
    4.7
    %Revenue
contribution
from RCM
    
    $
    1.2
    
    
    $
    1.4
    
    
    $
    1.6
    
    
    
    (14.3
    )%
    
    
    (12.5
    )%
  28    MD&A




---



##### 



Roxbury
Capital Management ownership
 At December 31(%)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000
    
    
    1999
    
    
    1998Ownership
of RCMs
preferred
profits
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30Ownership
of RCMs
common
interests
    
    
    41.23
    
    
    
    41.23
    
    
    
    41.23
    
    
    
    41.23
    
    
    
    40.91
    
    
    
    40.25
    
    
    
    10.96
    
    
    
    
    
    
    
    
  
  CAPITAL RESOURCES
   Indicators of capital strength
 As of and for the year ended
    
    2006December 31
    
    With
    
    
    Without(dollars in millions)
    
    impairment
    
    
    impairment
    
    
    2005
    
    
    2004Stockholders equity (period end)
    
    $
    1,059.3
    
    
    $
    1,101.0
    
    
    $
    1,017.7
    
    
    $
    909.4Stockholders equity (on average)
    
    $
    1,059.1
    
    
    $
    1,069.7
    
    
    $
    949.3
    
    
    $
    854.3Return on average
stockholders equity
    
    
    13.58
    %
    
    
    17.34
    %
    
    
    17.59
    %
    
    
    16.02
    %Return on average assets
    
    
    1.37
    %
    
    
    1.76
    %
    
    
    1.70
    %
    
    
    1.50
    %Capital generation ratio
    
    
    5.77
    %
    
    
    9.87
    %
    
    
    9.54
    %
    
    
    7.70
    %
   29




---



##### 



Net income and capital growth rates
 Percentage change at
    
    2006December 31, compared
    
    With
    
    
    Withoutto prior year-end
    
    impairment
    
    
    impairment
    
    
    2005
    
    
    2004Growth in net income
    
    
    (13.9
    )%
    
    
    11.1
    %
    
    
    22.0
    %
    
    
    4.6
    %Growth in net income less
cash dividends paid
    
    
    (32.4
    )%
    
    
    15.7
    %
    
    
    40.2
    %
    
    
    2.0
    %Growth in stockholders
equity (period end)
    
    
    4.1
    %
    
    
    8.2
    %
    
    
    11.9
    %
    
    
    13.0
    %Growth in stockholders
equity (on average)
    
    
    11.6
    %
    
    
    12.7
    %
    
    
    11.1
    %
    
    
    10.5
    %
 We continued to increase capital levels while raising the
cash dividend and investing in growth opportunities.
 Cash dividend
 For the year ended December 31
    
    2006
    
    
    2005
    
    
    2004Dividend declared per share (annualized)
    
    $
    1.26
    
    
    $
    1.20
    
    
    $
    1.14Dividend paid per share
    
    $
    1.245
    
    
    $
    1.185
    
    
    $
    1.125Cost of dividend payments (in millions)
    
    $
    85.1
    
    
    $
    80.2
    
    
    $
    75.0Dividend payout ratio
    
    
    59.18
    %
    
    
    48.02
    %
    
    
    54.78
    %Dividend payout ratio (without impairment)
    
    
    45.88
    %
 The non-cash impairment write-down on Roxbury Capital
Management lowered some capital metrics.
    30   MD&A




---



##### 



Share repurchases increased.
 Share repurchases
 For the year ended December 31
    
    2006
    
    
    2005
    
    
    2004Number of shares repurchased
    
    
    662,996
    
    
    
    53,652
    
    
    
    550,224Average price per share repurchased
    
    $
    43.93
    
    
    $
    35.88
    
    
    $
    36.11Total cost of shares repurchased (in millions)
    
    $
    29.1
    
    
    $
    1.9
    
    
    $
    19.9
  Status of current repurchase plan
 As of December 31
    
    2006Shares purchased under current plan
    
    
    1,351,241Cost of current plan
    
    $53.4 millionShares remaining under current plan
    
    
    6,648,759
 Our capital ratios continued to exceed the Federal Reserve
Boards minimum guidelines for both well-capitalized and
adequately capitalized institutions. UBPR Users Guide
  Regulatory capital ratios
 Minimum
    

    
    Minimumto be
    
    
    to beadequately
    
    
    wellAt December 31
    
    2006
    
    
    2005
    
    
    2004
    
    
    capitalized
    
    
    capitalizedTotal risk-based capital
    
    
    12.10
    %
    
    
    11.84
    %
    
    11.68
    %
    
    8
    %
    
    
    10
    %Tier 1 risk-based capital
    
    
    8.25
    %
    
    
    7.43
    %
    
    6.99
    %
    
    4
    %
    
    
    6
    %Tier 1 leverage capital
    
    
    7.39
    %
    
    
    6.69
    %
    
    5.96
    %
    
    4
    %

    
    
    5
    %
    31




---



##### 



LIQUIDITY AND FUNDING
  
    
    Support operating and investing activities.
 
    
    Meet increases in demand for loans and other assets.
 
    
    Provide for decreases in deposits and other funding sources.
 
    
    Comply with regulatory funding and liquidity requirements.
 
    
    Minimize the risk of having insufficient funds to conduct
business.
   MANAGING LIQUIDITY
      32   MD&A




---



##### 



At year-end 2006, we were operating within Level I parameters of our liquidity management policy.
 All three credit rating agencies affirmed our credit ratings in 2006.
  
    
    Are investment grade
    
    Have been the same since August 2004
    
    Substantiate our financial
stability and the consistency, over
time, of our earnings
  Wilmington Trust Company credit ratings
 As of December 31, 2006
    
    Fitch
    
    
    Moodys
    
    
    S&PShort-term debt
    
    
    F1
    
    
    
    P-1
    
    
    
    A-1Senior debt (long-term)
    
    
    A+
    
    
    
    A2
    
    
    
    ABank deposits
    
    
    AA-/F1+
    
    
    
    A2
    
    
    
    A/A-1Bank financial strength
    
    
    A/B
    
    
    
    C+
    
    
    
    
 Wilmington Trust Corporation credit ratings
 As of December 31, 2006
    
    Fitch
    
    
    Moodys
    
    
    S&POutlook
    
    
    Stable
    
    
    
    Stable
    
    
    
    StableLong-term issuer
    
    
    A+
    
    
    
    A3
    
    
    
    A-Short-term issuer
    
    
    F1
    
    
    
    
    
    
    
    A-2Senior unsecured debt
    
    
    A+
    
    
    
    A3
    
    
    
    A-Subordinated debt
    
    
    A
    
    
    
    Baa1
    
    
    
    BBB+
 Our sources of liquidity remained diversified.
 
    
    Core deposit balances of $5.13 billion.
    
    National money market deposits of $143.1 million.
    
    National CDs 3 $100,000 of $3.05 billion.
    
    Short-term borrowings of $1.16 billion.
    
    Long-term debt of $388.5 million.
    
    Stockholders equity of $1.06 billion.
    
    Investment securities of $2.11 billion. For more
information about our investment securities, please read the
discussion that begins on page 35 of this report.
 2006 Annual Report
    
    33




---



##### 




    
    Borrowing capacity of $85 million from lines of credit with
U.S. financial institutions.
    
    Borrowing capacity of $843.5 million, secured with collateral, from the Federal Home Loan
Bank (FHLB) of Pittsburgh, of which Wilmington Trust Company and Wilmington Trust of
Pennsylvania are members, as of September 30, 2006. The FHLB adjusts our borrowing capacity on
a quarterly basis. Its adjustment calculations for December 31, 2006, were not available as of
the filing date of this report (March 1, 2007).
 Among the risks to our liquidity is a partial guaranty of a line of credit obligation for Cramer
Rosenthal McGlynn (CRM).
 Core deposits were our primary source of funding in 2006. 3 3 3
   The market interest rate environment caused funding costs to increase in 2006.
 We are developing other sources of funds.
 Sources of funding
 As a percentage of funding(based on daily average balances)
    
    2006
    
    2005
    
    2004Core deposits:Noninterest-bearing demand
    
    
    8.6
    %
    
    
    12.0
    %
    
    
    12.0
    %Savings
    
    
    3.5
    
    
    
    4.2
    
    
    
    4.8Interest-bearing demand
    
    
    26.4
    
    
    
    27.8
    
    
    
    30.0CDs < $100,000
    
    
    11.0
    
    
    
    10.0
    
    
    
    10.0Local CDs 3 $100,000
    
    
    5.9
    
    
    
    4.8
    
    
    
    2.3Total core deposits
    
    
    55.4
    %
    
    
    58.8
    %
    
    
    59.1
    %National funding:National money market deposits
    
    
    0.2
    %
    
    
    
    %
    
    
    
    %National CDs 3 $100,000
    
    
    31.6
    
    
    
    27.8
    
    
    
    26.4Short-term borrowings
    
    
    12.8
    
    
    
    13.4
    
    
    
    14.5Total national funding
    
    
    44.6
    %
    
    
    41.2
    %
    
    
    40.9
    %
 34     MD&A
    
    Wilmington Trust Corporation




---



##### 



WHY NATIONAL FUNDING WORKS FOR US
  
    
    It is a cost-effective way to add deposits without having to invest capital in a large-scale
expansion of our branch office network.
 
    
    It helps us curb annual operating expense growth. On an absolute basis, national funding
rates tend to be higher than core deposit rates, but core deposit rates do not include the
all-in expense of staffing and operating a branch office network.
 
    
    It helps our Regional Banking business produce an efficiency ratio that is much better than
our peer average. For more information about this, please see the Regional Banking discussion
that begins on page 10 of this report.
 
    
    It helps us manage interest rate risk, because we can match the repricing characteristics of
wholesale funds closely with the repricing characteristics of floating rate loans. We adjust
the mix between national CDs 3 $100,000 and short-term borrowings, depending on which has
more favorable terms.
 Average funding costs
 For the year ended December 31
    
    2006
    
    2005
    
    2004Core interest-bearing deposits
    
    
    2.08
    %
    
    
    1.39
    %
    
    
    0.85
    %National money market deposits
    
    
    5.39
    %
    
    
    
    
    
    
    National CDs 3 $100,000
    
    
    5.12
    %
    
    
    3.36
    %
    
    
    1.44
    %Short-term borrowings
    
    
    4.77
    %
    
    
    3.20
    %
    
    
    1.63
    %Total funds to support earning assets
    
    
    3.22
    %
    
    
    2.09
    %
    
    
    1.10
    %
 INVESTMENT SECURITIES PORTFOLIO
 On average, the size of our investment securities portfolio for 2006 was less than 1% higher
than for 2005.
  Investment
securities portfolio
 ChangeAs of December 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006 vs.
    
    
    2005 vs.(in millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Period-end balances
    
    $
    2,114.6
    
    
    $
    1,928.8
    
    
    $
    1,813.3
    
    
    
    9.6
    %
    
    
    6.4
    %Average balances
    
    $
    1,893.1
    
    
    $
    1,876.6
    
    
    $
    1,868.5
    
    
    
    0.9
    %
    
    
    0.4
    %Approximate cash
flow generated
    
    $
    302.2
    
    
    $
    387.5
    
    
    $
    718.8
    
    
    
    (22.0
    )%
    
    
    (46.1
    )%
    2006 Annual Report
    
    35




---



##### 



The average life and duration of the portfolio were lower at year-end 2006 than 2005.
 Average life
 At December 31 (in years)
    
    2006
    
    2005
    
    2004Mortgage-backed instruments
    
    
    4.10
    
    
    
    4.30
    
    
    
    3.96Total portfolio
    
    
    4.93
    
    
    
    6.14
    
    
    
    6.41
 Duration
 At December 31 (in years)
    
    2006
    
    2005
    
    2004Mortgage-backed instruments
    
    
    3.80
    
    
    
    3.92
    
    
    
    3.72Total portfolio
    
    
    2.24
    
    
    
    2.63
    
    
    
    2.66
 U.S. government agencies surpassed mortgage-backed instruments as the largest concentration
of securities in the portfolio.
 Investment securities portfolio composition
 As of December 31
    
    2006
    
    
        2005
    
    
        2004Mortgage-backed securities
    
    
    20
    %
    
    
    26
    %
    
    
    34
    %Collateralized mortgage obligations
    
    
    12
    
    
    
    18
    
    
    
    17U.S. government agencies
    
    
    38
    
    
    
    21
    
    
    
    17Corporate issues
    
    
    17
    
    
    
    19
    
    
    
    16U.S. Treasury
    
    
    6
    
    
    
    8
    
    
    
    8Money market preferred stocks
    
    
    5
    
    
    
    5
    
    
    
    5Municipal bonds
    
    
    1
    
    
    
    1
    
    
    
    1Other
    
    
    1
    
    
    
    2
    
    
    
    2Percentage of portfolio in floating rate instruments
    
    
    82
    
    
    
    79
    
    
    
    81Percentage of portfolio in fixed rate instruments
    
    
    18
    
    
    
    21
    
    
    
    19
 The portfolio generated $302.2 million of cash flow in 2006.
  36     MD&A
    
    Wilmington Trust Corporation




---



##### 



RISK
    
 ASSET QUALITY
     CREDIT RISK
   2006 Annual Report
    
    37




---



##### 



HOW WE MANAGE CREDIT RISK
  
    
    Apply rigorous and consistent loan underwriting criteria.
 
    
    Prefer to grow loan balances through our own efforts, using our own underwriting guidelines,
instead of purchasing loans or acquiring other banks.
 
    
    Make the majority of our loans in Delaware and the portions of Maryland, New Jersey, and
Pennsylvania that are contiguous to Delaware. The economy in this region is well diversified
and stable, and we know these markets well.
 
    
    Focus on client relationships, not transaction volumes.
 
    
    Maintain a loan portfolio that is diversified among different types of commercial and consumer loans.
 
    
    Monitor the loan portfolio continually to identify potential problems and avoid
disproportionately high concentrations to any one borrower or in any single industry sector.
 
    
    Regularly review all past-due loans, loans not performing according to contractual terms, and
loans we doubt will be repaid on a timely basis.
 
    
    Perform an internal risk rating analysis quarterly.
 
    
    Regularly analyze the loan portfolio with staff who are independent of the Regional Banking business.
 INTERNAL RISK RATING ANALYSIS
  
    
    Pass identifies loans with no current or potential problems;
    
    Watchlisted identifies potential problem credits;
    
    Substandard identifies problem credits with some probability of loss; and
    
    Doubtful identifies problem credits with a higher probability of loss.
  Internal risk rating analysis
 At December 31
    
    2006
    
    

    2005
    
    

    2004Pass
    
    
    97.39
    %
    
    
    97.24
    %
    
    
    96.58
    %Watchlisted
    
    
    1.82
    %
    
    
    1.96
    %
    
    
    1.82
    %Substandard
    
    
    0.79
    %
    
    
    0.73
    %
    
    
    1.35
    %Doubtful
    
    
    
    
    
    
    0.07
    %
    
    
    0.25
    %
 38     MD&A
    
    Wilmington Trust Corporation




---



##### 



Charge-offs
 For the year ended December 31 (in millions)
    
    2006
    
    2005
    
    2004Gross charge-offs
    
    $
    24.6
    
    
    $
    17.2
    
    
    $
    21.1Recoveries
    
    
    6.1
    
    
    
    7.1
    
    
    
    5.3Net charge-offs
    
    $
    18.5
    
    
    $
    10.1
    
    
    $
    15.8Net charge-offs as a percentage of average loan balances
    
    
    0.24
    %
    
    
    0.14
    %
    
    
    0.24
    %
 Net charge-offs were in line with historical levels.
   Composition of net charge-offs
 For the year ended December 31 (in millions)
    
    2006
    
    2005
    
    
    2004Consumer loan net charge-offs
    
    $
    8.1
    
    
    $
    8.4
    
    
    $
    6.9Commercial, financial, and agricultural loan
net charge-offs
    
    $
    10.2
    
    
    $
    1.6
    
    
    $
    9.6Commercial real estate/construction and
mortgage loan net charge-offs
    
    $
    0.2
    
    
    $
    0.1
    
    
    $
    (0.7
    )
 2006 Annual Report
    
    39




---



##### 



More than 97% of loans outstanding had pass ratings.
 Total nonperforming assets fell 19%.
 Nonperforming assets
 At December 31 (dollars in millions)
    
    2006
    
    2005
    
    2004Total nonperforming assets
    
    $
    35.8
    
    
    $
    44.2
    
    
    $
    61.8Ratio of nonperforming assets to
total loans outstanding
    
    
    0.44
    %
    
    
    0.60
    %
    
    
    0.91
    %
   Nonaccruing loans
 At December 31 (dollars in millions)
    
    2006
    
    2005
    
    2004Nonaccruing loans
    
    $
    31.0
    
    
    $
    39.3
    
    
    $
    56.4Ratio of nonaccruing loans to total loans outstanding
    
    
    0.38
    %
    
    
    0.53
    %
    
    
    0.83
    %
 OREO and renegotiated loans
 At December 31 (in millions)
    
    2006
    
    2005
    
    2004Other real estate owned (OREO)
    
    $
    4.8
    
    
    $
    0.2
    
    
    $
    0.2Renegotiated loans
    
    
    
    
    
    $
    4.7
    
    
    $
    5.2
 Less than 1% of loans outstanding were past due 90 days or more.
 40     MD&A
    
    Wilmington Trust Corporation




---



##### 



Loans past due 90 days or more
 At December 31 (dollars in millions)
    
    2006
    
    2005
    
    2004Amount in the commercial portfolio
    
    $
    2.0
    
    
    $
    1.5
    
    
    $
    3.1Amount in the residential mortgage portfolio
    
    
    1.1
    
    
    
    1.5
    
    
    
    1.2Amount in the consumer portfolio
    
    
    2.7
    
    
    
    1.1
    
    
    
    1.2Total loans past due 90 days or more
    
    $
    5.8
    
    
    $
    4.1
    
    
    $
    5.5Ratio of total past-due loans to total loans outstanding
    
    
    0.07
    %
    
    
    0.06
    %
    
    
    0.08
    %
 Serious-doubt loans amounted to less than 1% of total loans outstanding.
 Serious-doubt loans
 As of December 31
    
    2006
    
    2005
    
    2004Serious-doubt loans (in millions)
    
    $
    18.8
    
    
    $
    6.9
    
    
    $
    4.1Ratio of serious-doubt loans to total loan balances
    
    
    0.23
    %
    
    
    0.09
    %
    
    
    0.06
    %
 The loan portfolio remained well diversified.
 Loan portfolio composition
 As of December 31
    
    2006
     
    2005
     
    2004Commercial/financial/agricultural
    
    
    31
    %
    
    
    33
    %
    
    
    37
    %Commercial real estate/construction
    
    
    21
    
    
    
    17
    
    
    
    11Commercial mortgage
    
    
    16
    
    
    
    17
    
    
    
    18Residential mortgage
    
    
    7
    
    
    
    6
    
    
    
    6Home equity
    
    
    4
    
    
    
    4
    
    
    
    5Indirect auto
    
    
    8
    
    
    
    9
    
    
    
    8Credit card
    
    
    1
    
    
    
    1
    
    
    
    1Other consumer
    
    
    5
    
    
    
    5
    
    
    
    5Secured with liquid collateral
    
    
    7
    
    
    
    8
    
    
    
    9Floating
rate loans
    
    
    74
    %
    
    
    77
    %
    
    
    79
    %Fixed rate
loans
    
    
    26
    
    
    
    23
    
    
    
    21
 Loan concentrations by state
 As of December 31
    
    2006
    
    

    2005
    
    

    2004Delaware
    
    
    61
    %
    
    
    61
    %
    
    
    62
    %Pennsylvania
    
    
    21
    
    
    
    22
    
    
    
    23Maryland
    
    
    6
    
    
    
    9
    
    
    
    5New Jersey
    
    
    4
    
    
    
    4
    
    
    
    3Other
    
    
    8
    
    
    
    4
    
    
    
    7
 2006 Annual Report
    
    41




---



##### 



Changes in the provision and reserve for loan losses reflected our assessment of credit risk.
 Provision
and reserve
 At December 31 (dollars in millions)
    
    2006
    
    2005
    
    2004Provision for loan losses
    
    $
    21.3
    
    
    $
    11.8
    
    
    $
    15.6Reserve for loan losses
    
    $
    94.2
    
    
    $
    91.4
    
    
    $
    89.7Loan loss reserve ratio
    
    
    1.16
    %
    
    
    1.24
    %
    
    
    1.33
    %
  Loan loss reserve allocation
 At December 31
    
    2006
    
    
    2005
    
    
    2004Allocation
    
    
    Percent of
    
    
    Allocation
    
    
    Percent of
    
    
    Allocation
    
    
    Percent of(in millions)
    
    amount
    
    
    reserve
    
    
    amount
    
    
    reserve
    
    
    amount
    
    
    reserveCommercial,
financial, and
agricultural
    
    $
    36.3
    
    
    
    39
    %
    
    $
    38.5
    
    
    
    42
    %
    
    $
    43.4
    
    
    
    48
    %Commercial
real estate/construction
    
    
    19.2
    
    
    
    20
    
    
    
    12.7
    
    
    
    14
    
    
    
    7.8
    
    
    
    9Commercial
mortgage
    
    
    14.5
    
    
    
    16
    
    
    
    15.4
    
    
    
    17
    
    
    
    14.8
    
    
    
    16Residential
mortgage
    
    
    1.3
    
    
    
    1
    
    
    
    1.3
    
    
    
    1
    
    
    
    1.2
    
    
    
    1Consumer
    
    
    11.3
    
    
    
    12
    
    
    
    11.2
    
    
    
    12
    
    
    
    10.4
    
    
    
    12Secured
by liquid
collateral
    
    
    5.5
    
    
    
    6
    
    
    
    6.2
    
    
    
    7
    
    
    
    6.0
    
    
    
    7Unallocated
    
    
    6.1
    
    
    
    6
    
    
    
    6.1
    
    
    
    7
    
    
    
    6.1
    
    
    
    7Total loan
loss reserve
    
    $
    94.2
    
    
    
    100
    %
    
    $
    91.4
    
    
    
    100
    %
    
    $
    89.7
    
    
    
    100
    %
  42     MD&A
    
    Wilmington Trust Corporation




---



##### 



INTEREST RATE RISK
    
    
    Maintain a mix of assets and liabilities that gives us flexibility in a dynamic marketplace.
We prefer most of our assets to be loans. We prefer a mix of liabilities that includes core
deposits and other sources of funding.
 
    
    Manage the relative proportions of fixed and floating rate assets and liabilities. We prefer
most of our loans and funding sources to have floating rates.
 
    
    Use off-balance-sheet derivative instruments, like interest rate swaps and floors. For
more information on our derivative and hedging activities, please see Note 14,
Derivative financial instruments, which begins on page 86
of this report, and to the discussion of off-balance-sheet arrangements
and contractual obligations that begins on page 49 of this report.
   The market interest rate environment affected us positively in 2005 and 2006.
  2006 Annual Report
    
    43




---



##### 



The net interest margin for 2006 was 8 basis points higher than for 2005.
 Net interest margin
 For the year ended December 31(dollars in millions)
    
    2006
    
    
    2005
    

    
    2004Net interest income (fully tax-equivalent)
    
    $
    367.4
    
    
    $
    332.8
    
    
    $
    298.9Total earning assets (on average)
    
    $
    9,645.7
    
    
    $
    8,957.4
    
    
    $
    8,362.7Net interest margin
    
    
    3.79
    %
    
    
    3.71
    %
    
    
    3.57
    %
 RESIDENTIAL MORTGAGES AND INTEREST RATE RISK
   Deposit repricing lagged loan repricing.
 Average yields and rates
 For the 12 months ended December 31
    
    2006
    
    2005
    
    2004Yield on commercial loans
    
    
    8.00
    %
    
    
    6.40
    %
    
    
    4.74
    %Yield on total loans
    
    
    7.60
    %
    
    
    6.22
    %
    
    
    4.87
    %Rate on CDs under $100,000
    
    
    3.73
    %
    
    
    2.56
    %
    
    
    2.03
    %Rate on total core interest-bearing deposits
    
    
    2.08
    %
    
    
    1.39
    %
    
    
    0.85
    %Rate on total interest-bearing deposits
    
    
    3.31
    %
    
    
    2.13
    %
    
    
    1.06
    %Yield on total earning assets
    
    
    7.01
    %
    
    
    5.80
    %
    
    
    4.67
    %Rate on funds to support earning assets
    
    
    3.22
    %
    
    
    2.09
    %
    
    
    1.10
    %
 We balanced the repricing characteristics of floating rate loans and deposits, in part, by
using national market funding. 3
 3
 44     MD&A
    
    Wilmington Trust Corporation




---



##### 



3
 Loans and deposit pricing characteristics
 As a percentage of total balances at December 31
    
    2006
    
    
    2005Earning assets that were loans
    
    
    79
    %
    
    
    79
    %Loans outstanding with floating rates
    
    
    74
    %
    
    
    77
    %Floating rate loans that were commercial loans
    
    
    82
    %
    
    
    80
    %Commercial loans tied to a prime rate
    
    
    61
    %
    
    
    63
    %Commercial loans tied to the 30-day LIBOR
    
    
    35
    %
    
    
    30
    %Commercial
floating rate loans repricing
in £ 30 days
    
    
    93
    %
    
    
    92
    %National
CDs3 $100,000 maturing
£ 90 days
    
    
    55
    %
    
    
    87
    %Short-term
borrowings maturing £ 90 days
    
    
    92
    %
    
    
    86
    %
 Loan pricing vs. market interest rates
 Interest rates atDecember 31
    
    2006
    
    
    2005
    
    
    2004Federal funds target rate
    
    
    5.25
    %
    
    
    4.25
    %
    
    
    2.25
    %Wilmington Trust prime
lending rate
(period end)
    
    
    8.25
    %
    
    
    7.25
    %
    
    
    5.25
    %Wilmington Trust prime
lending rate
(full year average)
    
    
    7.96
    %
    
    
    6.19
    %
    
    
    4.34
    %
  INTEREST RATE RISK SIMULATION
  
    
    If short-term rates were to increase gradually by a total of 250 basis points over a
10-month period, our net interest income would increase 4.22% over the 12 months beginning
December 31, 2006.
 
    
    If short-term rates were to decrease gradually over a 10-month period by a total of
250 basis points, our net interest income would decline by 3.99% over the 12 months
beginning December 31, 2006.
  
    
    To reflect pricing characteristics more accurately, we changed some of the assets in
the model from fixed rates to floating rates.
 
    
    On March 31, 2006, we terminated $250 million of interest rate swaps that were
associated with $250 million of subordinated long-term debt. We issued this debt at a
fixed rate, which we immediately swapped for a floating rate. We terminated these swaps to
eliminate the potential volatility of changing market valuations. For more information
about these swaps, please read Note 14, Derivative financial instruments, which begins
on page 86 of this report, and the discussion of off-balance-sheet arrangements that
begins on page 49 of this report.
 Impact of interest rate changes on net interest income
 For the 12 months beginning December 31
    
    2006
    
    
    2005
    
    
    2004Gradual increase of 250 basis points
    
    
    4.22
    %
    
    
    0.56
    %
    
    
    3.99
    %Gradual decrease of 250 basis points
    
    
    (3.99)
    %
    
    
    (3.97)
    %
    
    
    (8.11)
    %
  THE YIELD CURVE AND INTEREST RATE RISK




---



##### 



FINANCIAL MARKET RISK
   MANAGING FINANCIAL MARKET RISK




---



##### 



Revenue
subject to financial market risk
 For the year ended December 31 (dollars
in millions)
    
    2006
    
    
    2005
    
    
    2004WAS trust and investment advisory revenue
    
    $
    136.1
    
    
    $
    123.9
    
    
    $
    111.0CCS retirement services revenue
    
    
    11.5
    
    
    
    10.7
    
    
    
    9.2CCS investment/cash management revenue
    
    
    10.3
    
    
    
    7.7
    
    
    
    8.1Affiliate money manager revenue
    
    
    20.5
    
    
    
    17.5
    
    
    
    12.5Total revenue subject to financial market risk
    
    $
    178.4
    
    
    $
    159.8
    
    
    $
    140.8Total noninterest income (after amortization)
    
    $
    346.1
    
    
    $
    313.3
    
    
    $
    286.7Percent of total subject to financial market risk
    
    
    52
    %
    
    
    51
    %
    
    
    49
    %Total net interest and noninterest income
(after the provision and amortization)
    
    $
    687.9
    
    
    $
    630.4
    
    
    $
    565.5Percent of total subject to financial market risk
    
    
    26
    %
    
    
    25
    %
    
    
    25
    %
 
 ECONOMIC RISK
    Unemployment rate
 For the month of December
    
    2006
    
    
    2005
    
    
    2004State of Delaware
    
    
    3.0
    %
    
    
    4.1
    %
    
    
    3.8
    %Philadelphia/Camden/Wilmington MSA
    
    
    3.9
    %
    
    
    4.2
    %
    
    
    4.3
    %Dover, Delaware MSA
    
    
    2.7
    %
    
    
    3.6
    %
    
    
    3.0
    %United States
    
    
    4.5
    %
    
    
    4.9
    %
    
    
    5.4
    %
 Source: U.S. Department of Labor, Bureau of Labor Statistics
 MSA = Metropolitan Statistical Area
  The U.S. Census Bureau ranked Delaware as the 15th fastest-growing state in the
nation.
 Mayflower Transits 2006 Customer Relocation Studyranked Delaware as the second
most popular U.S. relocation destination, after South Carolina.
 Delaware placed eighth in Forbesmagazines ranking of the most business-friendly
states in the nation.




---



##### 



OPERATIONAL AND FIDUCIARY RISK
    
 REGULATORY RISK




---



##### 



2006 Annual Report on Form 10-K
 
 LEGAL RISK
  
 
 OTHER INFORMATION
 
 DERIVATIVES, HEDGING INSTRUMENTS, OTHER
OFF-BALANCE-SHEET ARRANGEMENTS, AND OTHER CONTRACTUAL
OBLIGATIONS
  
    
    Derivative instruments, such as interest rate swaps and interest rate floors. For
more information about our derivative instruments, please see Note 14, Derivative
financial instruments, which begins on page 86 of this report.
 
    
    Instruments that generally accepted accounting principles deem to be
off-balance-sheet arrangements, which means they do not appear on our balance sheet. These
instruments include stand-by letters of credit, unfunded loan commitments, unadvanced
lines of credit, operating lease obligations, and other guaranties. For more information
about these instruments, please see Note 12, Commitments and contingencies, which begins
on page 84 of this report.
 
    
    Contractual obligations that do appear on our balance sheet, including certificates
of deposit and long-term debt. For more information about certificates of deposit, please
see Note 13, Fair value of financial instruments, which
begins on page 84 of this
report. For more information about our long-term debt, please see Note 11, Borrowings and
securities purchased under agreements to resell, which begins
on page 83 of this report.




---



##### 



Contractual
obligations
 Payments due
    
    
    
    
    
    Less than
    
    
    1 to 3
    
    
    3 to 5
    
    
    More than(in millions)
    
    Total
    
    
    1 year
    
    
    years
    
    
    years
    
    
    5 yearsCertificates
of deposit
    
    $
    4,541.1
    
    
    $
    4,356.0
    
    
    $
    107.4
    
    
    $
    44.7
    
    
    $
    33.0Long-term
debt obligations1
    
    
    501.7
    
    
    
    22.3
    
    
    
    157.2
    
    
    
    66.1
    
    
    
    256.1Operating lease
obligations
    
    
    69.5
    
    
    
    10.7
    
    
    
    19.1
    
    
    
    19.4
    
    
    
    20.3Guaranty obligations
    
    
    2.5
    
    
    
    2.5
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    5,114.8
    
    
    $
    4,391.5
    
    
    $
    283.7
    
    
    $
    130.2
    
    
    $
    309.4
 
 1Contractual obligations associated with long-term debt obligations include future
interest payments.  CONTROLS AND PROCEDURES




---



##### 



CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  FACTORS AFFECTING FUTURE RESULTS




---



##### 



IMPAIRMENT COMPARISON
   COMPARISON
OF RESULTS WITH AND WITHOUT  THE NON-CASH IMPAIRMENT WRITE-DOWN
 As of and for the year ended December 31, 2006STATEMENT OF CONDITION(in millions)Goodwill, net of accumulated amortizationTotal assetsLiabilitiesStockholders equityLiabilities and stockholders equityOPERATING RESULTS(in millions)Net interest incomeProvision for loan lossesNoninterest incomeNoninterest expenseIncome before taxes and minority interestIncome tax
expenseNet income before minority interestMinority interestNet incomePER SHARE DATABasic shares outstanding (in millions)Diluted shares outstanding (in millions)Basic per-share earningsDiluted per-share earningsSTATISTICS AND RATIOSTotal
assets, on average (in millions)Stockholders equity, on average (in millions)Return on average assetsReturn on equityDividends paidDividend payout ratioShares outstanding (in millions)Book value per shareStaff membersNet income per staff member (in thousands)Capital generation ratioStock pricePrice/earnings multipleNet interest before provision and noninterest incomeTax equivalent interest incomeTax equivalent net interest and noninterest incomeNoninterest expenseEfficiency ratio
 52     
Impairment comparison
    
    Wilmington Trust Corporation




---



##### 



With impairment
    
    
    Without impairment
    
    
    Impairment$
    291.4
    
    
    $
    363.7
    
    
    $
    (72.3
    )$
    11,157.0
    
    
    $
    11,229.3
    
    
    $
    (72.3
    )10,097.7
    
    
    
    10,128.3
    
    
    
    (30.6
    )1,059.3
    
    
    
    1,101.0
    
    
    
    (41.7
    )$
    11,157.0
    
    
    $
    11,229.3
    
    
    $
    (72.3
    )$
    363.1
    
    
    $
    363.1
    
    
    $
    (21.3
    )
    
    
    (21.3
    )
    
    
    346.1
    
    
    
    346.1
    
    
    
    471.6
    
    
    
    399.3
    
    
    
    72.3216.3
    
    
    
    288.6
    
    
    
    (72.3
    )72.7
    
    
    
    103.3
    
    
    
    (30.6
    )143.6
    
    
    
    185.3
    
    
    
    (41.7
    )(0.2
    )
    
    
    (0.2
    )
    
    
    $
    143.8
    
    
    $
    185.5
    
    
    $
    (41.7
    )68.4
    
    
    
    68.4
    
    
    
    69.7
    
    
    
    69.7
    
    
    
    $
    2.10
    
    
    $
    2.71
    
    
    $
    (0.61
    )$
    2.06
    
    
    $
    2.66
    
    
    $
    (0.60
    )$
    10,495.1
    
    
    $
    10,513.5
    
    
    $
    (18.4
    )$
    1,059.1
    
    
    $
    1,069.7
    
    
    $
    (10.6
    )1.37
    %
    
    
    1.76
    %
    
    
    (0.39
    )%13.58
    %
    
    
    17.34
    %
    
    
    (3.76
    )%$
    85.1
    
    
    $
    85.1
    
    
    $
    59.18
    %
    
    
    45.88
    %
    
    
    13.30
    %68.5
    
    
    
    68.5
    
    
    
    $
    15.47
    
    
    $
    16.08
    
    
    $
    (0.61
    )2,562
    
    
    
    2,562
    
    
    
    $
    56,100
    
    
    $
    72,400
    
    
    $
    (16,300
    )5.77
    %
    
    
    9.87
    %
    
    
    (4.10
    )%$
    42.17
    
    
    $
    42.17
    
    
    $
    20.08
    
    
    
    15.56
    
    
    
    4.52$
    709.2
    
    
    $
    709.2
    
    
    $
    4.3
    
    
    
    4.3
    
    
    
    $
    713.5
    
    
    $
    713.5
    
    
    $
    $
    471.6
    
    
    $
    399.3
    
    
    $
    72.366.10
    %
    
    
    55.96
    %
    
    
    10.14
    %
 2006 Annual Report
    
    53




---



##### 



ELEVEN-YEAR SUMMARY OF  SELECTED CONSOLIDATED FINANCIAL DATA
 (In millions, except share amounts)
    
    20067
    
    
    2005CONSOLIDATED AVERAGE STATEMENTS OF CONDITIONASSETSCash and due from banks
    
    $
    210.6
    
    
    $
    229.2Short-term investments
    
    
    52.8
    
    
    
    33.7Investment securities
    
    
    1,893.1
    
    
    
    1,876.6Loans
    
    
    7,699.8
    
    
    
    7,047.1Reserve for loan losses
    
    
    (91.8
    )
    
    
    (90.9
    )Net loans
    
    
    7,608.0
    
    
    
    6,956.2Other
    
    
    730.6
    
    
    
    707.3Total
    
    $
    10,495.1
    
    
    $
    9,803.0LIABILITIES AND STOCKHOLDERS EQUITYCore deposits
    
    $
    4,919.1
    
    
    $
    4,866.6National money market deposit accounts
    
    
    17.6
    
    
    
    National certificates $100,000 and over
    
    
    2,803.9
    
    
    
    2,306.6Short-term borrowings
    
    
    1,135.8
    
    
    
    1,107.8Other
    
    
    164.9
    
    
    
    167.0Long-term debt
    
    
    394.4
    
    
    

    405.5Total
    
    
    9,435.7
    
    
    
    8,853.5Minority interest
    
    
    0.3
    
    
    
    0.2Stockholders equity
    
    
    1,059.1
    
    
    
    949.3Total
    
    $
    10,495.1
    
    
    $
    9,803.0CONSOLIDATED STATEMENTS OF INCOMENet interest income
    
    $
    363.1
    
    
    $
    328.9Advisory fees:Wealth Advisory Services
    
    
    192.0
    
    
    
    172.1Corporate Client Services
    
    
    85.6
    
    
    
    76.3Cramer Rosenthal McGlynn
    
    
    19.3
    
    
    
    16.1Roxbury Capital Management
    
    
    1.2
    
    
    
    1.4Total advisory fees
    
    
    298.1
    
    
    
    265.9Amortization of affiliate intangibles
    
    
    (4.2
    )
    
    
    (4.0
    )Net advisory fees
    
    
    293.9
    
    
    
    261.9Other noninterest income
    
    
    52.0
    
    
    
    50.6Securities gains/(losses)
    
    
    0.2
    
    
    
    0.8Total noninterest income
    
    
    346.1
    
    
    
    313.3Net interest and noninterest income
    
    
    709.2
    
    
    
    642.2Provision for loan losses
    
    
    (21.3
    )
    
    
    (11.8
    )Salaries and employment benefits
    
    
    242.5
    
    
    
    225.0Other noninterest expense
    
    
    229.1
    7
    
    
    145.1Total noninterest expense
    
    
    471.6
    
    
    
    370.1Income before income taxes, minority interest, and
cumulative effect of change in accounting principle
    
    
    216.3
    
    
    
    260.3Income tax
expense
    
    
    72.7
    
    
    
    93.0Net income before minority interest and cumulative
effect of change in accounting principle
    
    
    143.6
    
    
    
    167.3Minority interest
    
    
    (0.2
    )
    
    
    0.3Net income before cumulative effect of change
in accounting principle
    
    
    143.8
    
    
    
    167.0Cumulative effect of change in accounting principle
(net of income taxes of $0.6 in 2001)
    
    
    
    
    
    
    Net income
    
    $
    143.8
    
    
    $
    167.0
 
 Prior period numbers have been adjusted throughout this
report for the retrospective adoption of stock-based compensation
accounting.1
    
    1999 results included a $13.4 million one-time pre-tax charge for outsourcing data processing functions.2
    
    Based on income before the cumulative effect of change in accounting principle or one-time pre-tax charge for outsourcing data processing functions.3
    
    At year-end.4
    
    Total other expenses as a percentage of net interest and other income on a tax-equivalent basis.5
    
    Net income less dividends paid as a percentage of prior year-end stockholders equity.6
    
    Adjusted for two-for-one stock split June 2002.7
    
    2006 results included a $72.3 million non-cash goodwill impairment write-down. 54   Eleven-Year Summary of Selected Consolidated Financial Data
    
    
    
    Wilmington Trust Corporation




---



##### 



Compoundgrowth rates1996 to
    
    2001 to2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000
    
    
    1999
    
    
    1998
    
    
    1997
    
    
    1996
    
    
    2006
    
    
    2006$
    212.2
    
    
    $
    190.2
    
    
    $
    189.1
    
    
    $
    215.8
    
    
    $
    194.7
    
    
    $
    198.0
    
    
    $
    188.2
    
    
    $
    190.2
    
    
    $
    187.5
    
    
    
    1.17
    %
    
    
    (0.49
    )%23.8
    
    
    
    28.5
    
    
    
    28.2
    
    
    
    28.7
    
    
    
    29.5
    
    
    
    31.5
    
    
    
    31.1
    
    
    
    22.4
    
    
    
    26.5
    
    
    
    7.14
    
    
    
    12.971,868.5
    
    
    
    1,742.4
    
    
    
    1,295.4
    
    
    
    1,341.9
    
    
    
    1,567.0
    
    
    
    1,594.4
    
    
    
    1,609.6
    
    
    
    1,386.3
    
    
    
    1,343.0
    
    
    
    3.49
    
    
    
    7.126,470.4
    
    
    
    6,060.0
    
    
    
    5,691.3
    
    
    
    5,235.3
    
    
    
    5,053.1
    
    
    
    4,530.4
    
    
    
    4,156.4
    
    
    
    3,921.5
    
    
    
    3,602.4
    
    
    
    7.89
    
    
    
    8.02(90.3
    )
    
    
    (86.7
    )
    
    
    (83.0
    )
    
    
    (77.8
    )
    
    
    (75.3
    )
    
    
    (73.3
    )
    
    
    (66.2
    )
    
    
    (56.7
    )
    
    
    (50.8
    )
    
    
    6.10
    
    
    
    3.366,380.1
    
    
    
    5,973.3
    
    
    
    5,608.3
    
    
    
    5,157.5
    
    
    
    4,977.8
    
    
    
    4,457.1
    
    
    
    4,090.2
    
    
    
    3,864.8
    
    
    
    3,551.6
    
    
    
    7.92
    
    
    
    8.09643.2
    
    
    
    598.5
    
    
    
    542.9
    
    
    
    487.6
    
    
    
    441.4
    
    
    
    409.2
    
    
    
    333.9
    
    
    
    216.7
    
    
    
    199.0
    
    
    
    13.89
    
    
    
    8.42$
    9,127.8
    
    
    $
    8,532.9
    
    
    $
    7,663.9
    
    
    $
    7,231.5
    
    
    $
    7,210.4
    
    
    $
    6,690.2
    
    
    $
    6,253.0
    
    
    $
    5,680.4
    
    
    $
    5,307.6
    
    
    
    7.06
    %
    
    
    7.73
    %$
    4,553.7
    
    
    $
    4,356.2
    
    
    $
    3,981.1
    
    
    $
    3,675.0
    
    
    $
    3,766.3
    
    
    $
    4,004.5
    
    
    $
    3,802.1
    
    
    $
    3,561.8
    
    
    $
    3,412.0
    
    
    
    3.76
    %
    
    
    6.08
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,039.5
    
    
    
    1,937.7
    
    
    
    1,846.5
    
    
    
    1,588.1
    
    
    
    1,504.8
    
    
    
    762.0
    
    
    
    625.2
    
    
    
    308.6
    
    
    
    112.0
    
    
    
    37.99
    
    
    
    12.041,116.3
    
    
    
    975.7
    
    
    
    821.1
    
    
    
    1,027.7
    
    
    
    1,145.9
    
    
    
    1,138.1
    
    
    
    1,076.5
    
    
    
    1,188.2
    
    
    
    1,195.8
    
    
    
    (0.51
    )
    
    
    2.02156.3
    
    
    
    144.4
    
    
    
    132.1
    
    
    
    131.3
    
    
    
    92.2
    
    
    
    84.9
    
    
    
    96.0
    
    
    
    99.6
    
    
    
    101.8
    
    
    
    4.94
    
    
    
    4.66407.3
    
    
    
    345.8
    
    
    
    160.5
    
    
    
    166.3
    
    
    
    168.0
    
    
    
    168.0
    
    
    
    125.9
    
    
    
    43.0
    
    
    
    30.9
    
    
    
    29.00
    
    
    
    18.858,273.1
    
    
    
    7,759.8
    
    
    
    6,941.3
    
    
    
    6,588.4
    
    
    
    6,677.2
    
    
    
    6,157.5
    
    
    
    5,725.7
    
    
    
    5,201.2
    
    
    
    4,852.5
    
    
    
    6.88
    
    
    
    7.450.4
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    854.3
    
    
    
    773.0
    
    
    
    722.5
    
    
    
    643.1
    
    
    
    533.2
    
    
    
    532.7
    
    
    
    527.3
    
    
    
    479.2
    
    
    
    455.1
    
    
    
    8.81
    
    
    
    10.49$
    9,127.8
    
    
    $
    8,532.9
    
    
    $
    7,663.9
    
    
    $
    7,231.5
    
    
    $
    7,210.4
    
    
    $
    6,690.2
    
    
    $
    6,253.0
    
    
    $
    5,680.4
    
    
    $
    5,307.6
    
    
    
    7.06
    %
    
    
    7.73
    %$
    294.4
    
    
    $
    277.1
    
    
    $
    276.5
    
    
    $
    258.9
    
    
    $
    255.1
    
    
    $
    245.9
    
    
    $
    237.7
    
    
    $
    230.0
    
    
    $
    214.2
    
    
    
    5.42
    %
    
    
    7.00
    %155.6
    
    
    
    140.4
    
    
    
    126.9
    
    
    
    109.6
    
    
    
    104.5
    
    
    
    98.1
    
    
    
    88.8
    
    
    
    81.8
    
    
    
    70.1
    
    
    
    10.60
    
    
    
    11.8771.6
    
    
    
    67.3
    
    
    
    64.3
    
    
    
    54.9
    
    
    
    46.7
    
    
    
    40.4
    
    
    
    35.8
    
    
    
    32.7
    
    
    
    28.1
    
    
    
    11.78
    
    
    
    9.2910.9
    
    
    
    5.3
    
    
    
    7.7
    
    
    
    6.3
    
    
    
    1.6
    
    
    
    4.1
    
    
    
    4.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25.101.6
    
    
    
    (2.3
    )
    
    
    8.6
    
    
    
    14.2
    
    
    
    19.7
    
    
    
    12.0
    
    
    
    2.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (38.99
    )239.7
    
    
    
    210.7
    
    
    
    207.5
    
    
    
    185.0
    
    
    
    172.5
    
    
    
    154.6
    
    
    
    132.0
    
    
    
    114.5
    
    
    
    98.2
    
    
    
    11.74
    
    
    
    10.01(2.5
    )
    
    
    (1.7
    )
    
    
    (1.3
    )
    
    
    (8.2
    )
    
    
    (7.5
    )
    
    
    (6.2
    )
    
    
    (3.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12.52
    )237.2
    
    
    
    209.0
    
    
    
    206.2
    
    
    
    176.8
    
    
    
    165.0
    
    
    
    148.4
    
    
    
    128.8
    
    
    
    114.5
    
    
    
    98.2
    
    
    
    11.59
    
    
    
    10.7050.0
    
    
    
    54.5
    
    
    
    54.0
    
    
    
    49.7
    
    
    
    51.6
    
    
    
    41.8
    
    
    
    48.4
    
    
    
    43.0
    
    
    
    38.8
    
    
    
    2.97
    
    
    
    0.91(0.5
    )
    
    
    0.7
    
    
    
    2.0
    
    
    
    1.5
    
    
    
    (0.4
    )
    
    
    1.3
    
    
    
    6.7
    
    
    
    
    
    
    
    1.2
    
    
    
    (16.40
    )
    
    
    (33.17
    )286.7
    
    
    
    264.2
    
    
    
    262.2
    
    
    
    228.0
    
    
    
    216.2
    
    
    
    191.5
    
    
    
    183.9
    
    
    
    157.5
    
    
    
    138.2
    
    
    
    9.61
    
    
    
    8.71581.1
    
    
    
    541.3
    
    
    
    538.7
    
    
    
    486.9
    
    
    
    471.3
    
    
    
    437.4
    
    
    
    421.6
    
    
    
    387.5
    
    
    
    352.4
    
    
    
    7.24
    
    
    
    7.81(15.6
    )
    
    
    (21.6
    )
    
    
    (22.0
    )
    
    
    (19.9
    )
    
    
    (21.9
    )
    
    
    (17.5
    )
    
    
    (20.0
    )
    
    
    (21.5
    )
    
    
    (16.0
    )
    
    
    2.90
    
    
    
    1.37210.5
    
    
    
    190.8
    
    
    
    187.5
    
    
    
    172.2
    
    
    
    167.9
    
    
    
    151.7
    
    
    
    141.0
    
    
    
    133.3
    
    
    
    121.6
    
    
    
    7.15
    
    
    
    7.09139.3
    
    
    
    125.5
    
    
    
    127.5
    
    
    
    110.1
    
    
    
    101.8
    
    
    
    111.0

1
    
    
    92.2
    
    
    
    77.9
    
    
    
    72.7
    
    
    
    12.16
    
    
    
    15.78349.8
    
    
    
    316.3
    
    
    
    315.0
    
    
    
    282.3
    
    
    
    269.7
    
    
    
    262.7
    
    
    
    233.2
    
    
    
    211.2
    
    
    
    194.3
    
    
    
    9.27
    
    
    
    10.81215.7
    
    
    
    203.4
    
    
    
    201.7
    
    
    
    184.7
    
    
    
    179.7
    
    
    
    157.2
    
    
    
    168.4
    
    
    
    154.8
    
    
    
    142.1
    
    
    
    4.29
    
    
    
    3.2177.9
    
    
    
    71.4
    
    
    
    71.8
    
    
    
    64.1
    
    
    
    62.4
    
    
    
    53.2
    
    
    
    56.6
    
    
    
    51.6
    
    
    
    46.1
    
    
    
    4.66
    
    
    
    2.55137.8
    
    
    
    132.0
    
    
    
    129.9
    
    
    
    120.6
    
    
    
    117.3
    
    
    
    104.0
    
    
    
    111.8
    
    
    
    103.2
    
    
    
    96.0
    
    
    
    4.11
    
    
    
    3.550.9
    
    
    
    1.1
    
    
    
    0.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    136.9
    
    
    
    130.9
    
    
    
    129.3
    
    
    
    120.6
    
    
    
    117.3
    
    
    
    104.0
    
    
    
    111.8
    
    
    
    103.2
    
    
    
    96.0
    
    
    
    4.12
    
    
    
    3.58
    
    
    
    
    
    
    
    
    
    
    
    1.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (100.00
    )$
    136.9
    
    
    $
    130.9
    
    
    $
    129.3
    
    
    $
    121.7
    
    
    $
    117.3
    
    
    $
    104.0
    1
    
    $
    111.8
    
    
    $
    103.2
    
    
    $
    96.0
    
    
    
    4.12
    %
    
    
    3.39
    %
 2006 Annual Report


(CONTINUED) 55




---



##### 



ELEVEN-YEAR SUMMARY OF
SELECTED CONSOLIDATED FINANCIAL DATA
 (In millions, except share amounts)
    
    2006
    7

    
        2005Net income
per share - diluted:Income before cumulative effect of
change in accounting principle
    
    $
    2.06
    
    
    $
    2.43Cumulative effect of change in accounting principle6
    
    
    
    
    
    
    Net income
per share - diluted6
    
    $
    2.06
    
    
    $
    2.43Percentage change from prior year
    
    
    (15
    )%
    
    
    20
    %SELECTED FINANCIAL RATIOS AND STATISTICSNet income as a percentage of:Average stockholders equity2
    
    
    13.58
    %
    
    
    17.59
    %Average total assets2
    
    
    1.37
    
    
    
    1.70Loan quality:Percentage of average total loans:Net charge-offs
    
    
    0.24
    %
    
    
    0.14
    %Nonaccruing loans
    
    
    0.40
    
    
    
    0.56Percentage of total loans:Reserve for loan losses3
    
    
    1.16
    
    
    
    1.24Selected per share data:Dividends
paid6
    
    $
    1.245
    
    
    $
    1.185Book value3,6
    
    
    15.47
    
    
    
    14.99Stock price3,6
    
    
    42.17
    
    
    
    38.91Assets under management:Wilmington Trust Company
    
    $
    29,007.0
    
    
    $
    25,998.2Cramer Rosenthal McGlynn
    
    
    10,623.8
    
    
    
    8,899.0Roxbury Capital Management
    
    
    3,138.1
    
    
    
    3,287.3Combined assets under management
    
    $
    42,768.9
    
    
    $
    38,184.5Staff members (full-time equivalents)3
    
    
    2,562
    
    
    
    2,469Registered stockholders3
    
    
    7,962
    
    
    
    8,180Net income per staff member (in thousands)2
    
    $
    56.1
    
    
    $
    67.6Efficiency ratio2,4
    
    
    66.10
    %
    
    
    57.28
    %Capital generation rate2,5
    
    
    5.77
    %
    
    
    9.54
    %Risk-based capital ratio3
    
    
    12.10
    %
    
    
    11.84
    %Price/earnings multiple3
    
    
    20.08
    
    
    
    15.75
 
 Prior period numbers have been adjusted throughout this
report for the retrospective adoption of stock-based compensation
accounting.1
    
    1999 results included a $13.4 million one-time pre-tax charge
for outsourcing data processing functions.2
    
    Based on income before the cumulative effect of change in
accounting principle or one-time pre-tax charge for outsourcing
data processing functions.3
    
    At year-end.4
    
    Total other expenses as a percentage of net interest and other
income on a tax-equivalent basis.5
    
    Net income less dividends paid as a percentage of prior year-end
stockholders equity.6
    
    Adjusted for two-for-one stock split June 2002.7
    
    2006 results included a $72.3 million non-cash goodwill impairment
write-down. 56   Eleven-Year Summary of Selected Consolidated Financial Data
    
    
    
    Wilmington Trust Corporation




---



##### 



Compoundgrowth rates1996
to
    
    

2001
to2004
    
    
                2003
    
    
                    2002
    
    
    2001
    

    2000
    
    1999
    
    1998
    
    1997
    
    1996
    
    2006
    
    
    2006$
    2.02
    
    
    $
    1.97
    
    
    $
    1.95
    
    
    $
    1.83
    
    
    $
    1.80
    
    
    $
    1.56
    
    
    $
    1.63
    
    
    $
    1.50
    
    
    $
    1.38
    
    
    
    4.09
    %
    
    
    2.40
    %
    
    
    
    
    
    
    
    
    
    
    
    0.02
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (100.00
    )$
    2.02
    
    
    $
    1.97
    
    
    $
    1.95
    
    
    $
    1.85
    
    
    $
    1.80
    
    
    $
    1.56
    
    
    $
    1.63
    
    
    $
    1.50
    
    
    $
    1.38
    
    
    
    4.09
    %
    
    
    2.17
    %3
    %
    
    
    1
    %
    
    
    5
    %
    
    
    3
    %
    
    
    15
    %
    
    
    (4
    )%
    
    
    9
    %
    
    
    9
    %
    
    
    10
    %16.02
    %
    
    
    16.93
    %
    
    
    17.90
    %
    
    
    18.92
    %
    
    
    22.00
    %
    
    
    19.52
    %
    
    
    21.20
    %
    
    
    21.54
    %
    
    
    21.09
    %1.50
    
    
    
    1.53
    
    
    
    1.69
    
    
    
    1.68
    
    
    
    1.63
    
    
    
    1.55
    
    
    
    1.79
    
    
    
    1.82
    
    
    
    1.810.24
    %
    
    
    0.27
    %
    
    
    0.31
    %
    
    
    0.30
    %
    
    
    0.44
    %
    
    
    0.28
    %
    
    
    0.29
    %
    
    
    0.31
    %
    
    
    0.32
    %0.87
    
    
    
    0.75
    
    
    
    0.74
    
    
    
    0.73
    
    
    
    0.80
    
    
    
    0.64
    
    
    
    0.74
    
    
    
    0.73
    
    
    
    1.131.33
    
    
    
    1.44
    
    
    
    1.41
    
    
    
    1.47
    
    
    
    1.48
    
    
    
    1.60
    
    
    
    1.66
    
    
    
    1.60
    
    
    
    1.44$
    1.125
    
    
    $
    1.065
    
    
    $
    1.005
    
    
    $
    0.945
    
    
    $
    0.885
    
    
    $
    0.825
    
    
    $
    0.765
    
    
    $
    0.705
    
    
    $
    0.64513.49
    
    
    
    12.18
    
    
    
    11.35
    
    
    
    10.48
    
    
    
    9.17
    
    
    
    7.72
    
    
    
    8.20
    
    
    
    7.52
    
    
    
    6.8636.15
    
    
    
    36.00
    
    
    
    31.68
    
    
    
    31.66
    
    
    
    31.03
    
    
    
    24.13
    
    
    
    30.82
    
    
    
    31.19
    
    
    
    19.75$
    26,464.0
    
    
    $
    24,352.8
    
    
    $
    20,966.7
    
    
    $
    23,829.2
    
    
    $
    27,994.4
    
    
    $
    25,529.7
    
    
    $
    22,770.2
    
    
    $
    18,740.7
    
    
    $
    15,569.46,927.2
    
    
    
    4,698.6
    
    
    
    3,512.0
    
    
    
    4,643.0
    
    
    
    3,495.0
    
    
    
    3,204.0
    
    
    
    4,319.0
    
    
    
    
    
    
    
    3,138.6
    
    
    
    3,210.7
    
    
    
    3,712.4
    
    
    
    7,700.0
    
    
    
    11,300.0
    
    
    
    11,200.0
    
    
    
    6,000.0
    
    
    
    
    
    
    
    $
    36,529.8
    
    
    $
    32,262.1
    
    
    $
    28,191.1
    
    
    $
    36,172.2
    
    
    $
    42,789.4
    
    
    $
    39,933.7
    
    
    $
    33,089.2
    
    
    $
    18,740.7
    
    
    $
    15,569.42,428
    
    
    
    2,307
    
    
    
    2,361
    
    
    
    2,316
    
    
    
    2,299
    
    
    
    2,434
    
    
    
    2,442
    
    
    
    2,428
    
    
    
    2,4188,499
    
    
    
    8,666
    
    
    
    8,712
    
    
    
    8,841
    
    
    
    9,189
    
    
    
    9,617
    
    
    
    9,868
    
    
    
    10,164
    
    
    
    10,241$
    56.4
    
    
    $
    56.7
    
    
    $
    54.8
    
    
    $
    52.5
    
    
    $
    51.0
    
    
    $
    42.7
    
    
    $
    45.8
    
    
    $
    42.5
    
    
    $
    39.759.73
    %
    
    
    57.92
    %
    
    
    57.93
    %
    
    
    57.20
    %
    
    
    56.35
    %
    
    
    58.99
    %
    
    
    54.23
    %
    
    
    53.21
    %
    
    
    53.59
    %7.70
    %
    
    
    8.15
    %
    
    
    9.24
    %
    
    
    10.12
    %
    
    
    12.04
    %
    
    
    9.08
    %
    
    
    12.03
    %
    
    
    11.97
    %
    
    
    11.23
    %11.68
    %
    
    
    12.52
    %
    
    
    10.19
    %
    
    
    11.20
    %
    
    
    10.83
    %
    
    
    10.70
    %
    
    
    12.49
    %
    
    
    12.39
    %
    
    
    12.02
    %17.63
    
    
    
    18.09
    
    
    
    16.08
    
    
    
    16.93
    
    
    
    17.05
    
    
    
    15.27
    
    
    
    18.46
    
    
    
    20.39
    
    
    
    14.11
 2006 Annual Report
    
    
    
    57




---



##### 



FIVE-YEAR
ANALYSIS OF EARNINGS AND  CONSOLIDATED STATEMENTS OF CONDITION
 2006(Dollar amounts in millions;
    
    Average
    
 
    Income/
    
    Averagerates on a tax-equivalent basis)
    
    balance
    
 
    expense
    
    rateASSETSFederal funds sold and securitiespurchased under agreements to resell
    
    $
    52.8
    
    
    $
    2.7
    
    
    
    5.04
    %U.S. Treasury
    
    
    156.5
    
    
    
    6.0
    
    
    
    3.76Government agencies
    
    
    478.9
    
    
    
    20.4
    
    
    
    4.20Obligations
of state and political subdivisions1
    
    
    10.0
    
    
    
    0.9
    
    
    
    8.80Preferred stock1
    
    
    90.2
    
    
    
    6.9
    
    
    
    7.65Mortgage-backed securities
    
    
    761.9
    
    
    
    32.9
    
    
    
    4.15Other securities1
    
    
    395.6
    
    
    
    24.2
    
    
    
    6.14Total investment securities
    
    
    1,893.1
    
    
    
    91.3
    
    
    
    4.73Commercial,
financial, and agricultural loans
    
    
    2,437.4
    
    
    
    189.6
    
    
    
    7.78Real estate  construction loans
    
    
    1,516.8
    
    
    
    128.5
    
    
    
    8.47Mortgage  commercial loans
    
    
    1,240.8
    
    
    
    97.6
    
    
    
    7.87Total commercial loans
    
    
    5,195.0
    
    
    
    415.7
    
    
    
    8.00Mortgage  residential loans
    
    
    495.2
    
    
    
    28.7
    
    
    
    5.80Consumer loans
    
    
    1,458.2
    
    
    
    104.6
    
    
    
    7.18Loans secured with liquid collateral
    
    
    551.4
    
    
    
    36.1
    
    
    
    6.54Total retail loans
    
    
    2,504.8
    
    
    
    169.4
    
    
    
    6.76Total loans1,2
    
    
    7,699.8
    
    
    
    585.1
    
    
    
    7.60Total earning assets
    
    
    9,645.7
    
    
    
    679.1
    
    
    
    7.01Other assets
    
    
    849.4Total assets
    
    $
    10,495.1LIABILITIES AND STOCKHOLDERS EQUITYSavings
    
    $
    311.4
    
    
    
    1.3
    
    
    
    0.41Interest-bearing demand
    
    
    2,347.5
    
    
    
    25.5
    
    
    
    1.09Certificates
under $100,000
    
    
    979.4
    
    
    
    36.5
    
    
    
    3.73Local certificates $100,000 and over
    
    
    521.7
    
    
    
    23.3
    
    
    
    4.48Core interest-bearing deposits
    
    
    4,160.0
    
    
    
    86.6
    
    
    
    2.08National money market deposit accounts
    
    
    17.6
    
    
    
    1.0
    
    
    
    5.39National certificates $100,000 and over
    
    
    2,803.9
    
    
    
    143.7
    
    
    
    5.12Total interest-bearing deposits
    
    
    6,981.5
    
    
    
    231.3
    
    
    
    3.31Federal funds purchased and securitiessold under agreements to repurchase
    
    
    1,124.7
    
    
    
    53.7
    
    
    
    4.77U.S. Treasury demand
    
    
    11.1
    
    
    
    0.5
    
    
    
    4.77Total short-term borrowings
    
    
    1,135.8
    
    
    
    54.2
    
    
    
    4.77Long-term debt
    
    
    394.4
    
    
    
    26.2
    
    
    
    6.65Total interest-bearing liabilities
    
    
    8,511.7
    
    
    
    311.7
    
    
    
    3.66Demand deposits
    
    
    759.1Other noninterest funds
    
    
    374.9Total funds used to support earning
assets
    
    
    9,645.7
    
    
    
    311.7
    
    
    
    3.22Minority interest
    
    
    0.3Stockholders equity
    
    
    1,059.1Equity used to support earning assets
    
    
    (374.9
    )Other liabilities
    
    
    164.9Total
liabilities and stockholders equity
    
    $
    10,495.1Net interest income/margin3
    
    
    
    
    
    
    367.4
    
    
    
    3.79
    %Tax-equivalent adjustment
    
    
    
    
    
    
    (4.3
    )Net interest income
    
    
    
    
    
    $
    363.1
 1
    
    Tax-advantaged income has been adjusted to a tax-equivalent basis using a combined statutory federal and state income tax rate of 35% for all years.2
    
    Loan balances include nonaccrual loans. Amortization of deferred loan fees is included in interest income.3
    
    To compute the net interest margin, we divide net interest
income on a fully tax-equivalent basis by total earning assets, on
average. Note:
Average rates are calculated using average balances based on
historical cost and do not reflect market valuation
adjustments.
 58   Five-Year Analysis of Earnings and Consolidated statement of condition
    
    
    
    Wilmington Trust Corporation




---



##### 



2005
    
    2004
    
    2003
    
    2002Average
    
    Income/
    
    Average
    
    Average
    
    Income/
    
    Average
    
    Average
    
    Income/
    
    Average
    
    Average
    
    Income/
    
    Averagebalance
    
    expense
    
    rate
    
    balance
    
    expense
    
    rate
    
    balance
    
    expense
    
    rate
    
    balance
    
    expense
    
    rate$
    33.7
    
    
    $
    1.1
    
    
    
    3.39
    %
    
    $
    23.8
    
    
    $
    0.4
    
    
    
    1.52
    %
    
    $
    28.5
    
    
    $
    0.4
    
    
    
    1.26
    %
    
    $
    28.2
    
    
    $
    0.6
    
    
    
    2.14
    %124.4
    
    
    
    3.9
    
    
    
    3.05
    
    
    
    189.0
    
    
    
    5.6
    
    
    
    2.97
    
    
    
    308.1
    
    
    
    8.8
    
    
    
    2.90
    
    
    
    413.2
    
    
    
    15.0
    
    
    
    3.71363.8
    
    
    
    14.1
    
    
    
    3.85
    
    
    
    262.2
    
    
    
    10.2
    
    
    
    3.92
    
    
    
    190.7
    
    
    
    7.7
    
    
    
    4.16
    
    
    
    171.1
    
    
    
    9.6
    
    
    
    5.7511.5
    
    
    
    1.0
    
    
    
    8.75
    
    
    
    13.5
    
    
    
    1.1
    
    
    
    8.70
    
    
    
    16.4
    
    
    
    1.4
    
    
    
    9.00
    
    
    
    17.2
    
    
    
    1.5
    
    
    
    8.9894.0
    
    
    
    6.9
    
    
    
    7.50
    
    
    
    120.9
    
    
    
    9.1
    
    
    
    7.41
    
    
    
    118.4
    
    
    
    8.8
    
    
    
    7.44
    
    
    
    86.4
    
    
    
    7.4
    
    
    
    8.19925.0
    
    
    
    38.4
    
    
    
    4.07
    
    
    
    973.6
    
    
    
    39.8
    
    
    
    4.05
    
    
    
    861.1
    
    
    
    36.3
    
    
    
    4.23
    
    
    
    428.5
    
    
    
    23.9
    
    
    
    5.76357.9
    
    
    
    16.9
    
    
    
    4.73
    
    
    
    309.3
    
    
    
    9.7
    
    
    
    3.15
    
    
    
    247.7
    
    
    
    7.4
    
    
    
    2.95
    
    
    
    179.0
    
    
    
    6.6
    
    
    
    3.561,876.6
    
    
    
    81.2
    
    
    
    4.28
    
    
    
    1,868.5
    
    
    
    75.5
    
    
    
    4.03
    
    
    
    1,742.4
    
    
    
    70.4
    
    
    
    4.07
    
    
    
    1,295.4
    
    
    
    64.0
    
    
    
    5.012,462.1
    
    
    
    152.2
    
    
    
    6.19
    
    
    
    2,374.4
    
    
    
    107.9
    
    
    
    4.55
    
    
    
    2,209.3
    
    
    
    97.0
    
    
    
    4.39
    
    
    
    2,005.5
    
    
    
    104.2
    
    
    
    5.20982.3
    
    
    
    67.4
    
    
    
    6.87
    
    
    
    731.8
    
    
    
    35.7
    
    
    
    4.88
    
    
    
    612.4
    
    
    
    27.5
    
    
    
    4.49
    
    
    
    448.0
    
    
    
    22.8
    
    
    
    5.091,229.1
    
    
    
    79.3
    
    
    
    6.46
    
    
    
    1,168.6
    
    
    
    58.9
    
    
    
    5.04
    
    
    
    1,044.1
    
    
    
    55.7
    
    
    
    5.34
    
    
    
    998.5
    
    
    
    63.6
    
    
    
    6.374,673.5
    
    
    
    298.9
    
    
    
    6.40
    
    
    
    4,274.8
    
    
    
    202.5
    
    
    
    4.74
    
    
    
    3,865.8
    
    
    
    180.2
    
    
    
    4.66
    
    
    
    3,452.0
    
    
    
    190.6
    
    
    
    5.52438.6
    
    
    
    25.9
    
    
    
    5.89
    
    
    
    453.8
    
    
    
    27.4
    
    
    
    6.04
    
    
    
    585.2
    
    
    
    39.1
    
    
    
    6.67
    
    
    
    777.1
    
    
    
    53.8
    
    
    
    6.921,329.3
    
    
    
    84.8
    
    
    
    6.38
    
    
    
    1,134.1
    
    
    
    67.7
    
    
    
    5.97
    
    
    
    1,037.9
    
    
    
    68.1
    
    
    
    6.56
    
    
    
    1,008.5
    
    
    
    73.4
    
    
    
    7.28605.7
    
    
    
    28.6
    
    
    
    4.72
    
    
    
    607.7
    
    
    
    17.5
    
    
    
    2.88
    
    
    
    571.1
    
    
    
    15.4
    
    
    
    2.69
    
    
    
    453.7
    
    
    
    15.5
    
    
    
    3.422,373.6
    
    
    
    139.3
    
    
    
    5.86
    
    
    
    2,195.6
    
    
    
    112.6
    
    
    
    5.13
    
    
    
    2,194.2
    
    
    
    122.6
    
    
    
    5.58
    
    
    
    2,239.3
    
    
    
    142.7
    
    
    
    6.377,047.1
    
    
    
    438.2
    
    
    
    6.22
    
    
    
    6,470.4
    
    
    
    315.1
    
    
    
    4.87
    
    
    
    6,060.0
    
    
    
    302.8
    
    
    
    5.00
    
    
    
    5,691.3
    
    
    
    333.3
    
    
    
    5.868,957.4
    
    
    
    520.5
    
    
    
    5.80
    
    
    
    8,362.7
    
    
    
    391.0
    
    
    
    4.67
    
    
    
    7,830.9
    
    
    
    373.6
    
    
    
    4.78
    
    
    
    7,014.9
    
    
    
    397.9
    
    
    
    5.69845.6
    
    
    
    
    
    
    
    
    
    
    
    765.1
    
    
    
    
    
    
    
    
    
    
    
    702.0
    
    
    
    
    
    
    
    
    
    
    
    649.0$
    9,803.0
    
    
    
    
    
    
    
    
    
    
    $
    9,127.8
    
    
    
    
    
    
    
    
    
    
    $
    8,532.9
    
    
    
    
    
    
    
    
    
    
    $
    7,663.9$
    344.9
    
    
    
    0.9
    
    
    
    0.27
    
    
    $
    369.1
    
    
    
    0.7
    
    
    
    0.18
    
    
    $
    366.0
    
    
    
    0.6
    
    
    
    0.16
    
    
    $
    353.9
    
    
    
    0.9
    
    
    
    0.252,303.8
    
    
    
    19.9
    
    
    
    0.86
    
    
    
    2,311.1
    
    
    
    11.6
    
    
    
    0.50
    
    
    
    2,183.9
    
    
    
    9.2
    
    
    
    0.42
    
    
    
    1,735.2
    
    
    
    10.1
    
    
    
    0.58824.4
    
    
    
    21.1
    
    
    
    2.56
    
    
    
    768.3
    
    
    
    15.6
    
    
    
    2.03
    
    
    
    834.4
    
    
    
    22.3
    
    
    
    2.67
    
    
    
    891.2
    
    
    
    31.2
    
    
    
    3.51401.5
    
    
    
    12.1
    
    
    
    3.01
    
    
    
    177.7
    
    
    
    3.0
    
    
    
    1.69
    
    
    
    138.6
    
    
    
    2.4
    
    
    
    1.74
    
    
    
    169.5
    
    
    
    4.4
    
    
    
    2.603,874.6
    
    
    
    54.0
    
    
    
    1.39
    
    
    
    3,626.2
    
    
    
    30.9
    
    
    
    0.85
    
    
    
    3,522.9
    
    
    
    34.5
    
    
    
    0.98
    
    
    
    3,149.8
    
    
    
    46.6
    
    
    
    1.48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,306.6
    
    
    
    77.4
    
    
    
    3.36
    
    
    
    2,039.5
    
    
    
    29.3
    
    
    
    1.44
    
    
    
    1,937.7
    
    
    
    29.2
    
    
    
    1.50
    
    
    
    1,846.5
    
    
    
    41.4
    
    
    
    2.246,181.2
    
    
    
    131.4
    
    
    
    2.13
    
    
    
    5,665.7
    
    
    
    60.2
    
    
    
    1.06
    
    
    
    5,460.6
    
    
    
    63.7
    
    
    
    1.17
    
    
    
    4,996.3
    
    
    
    88.0
    
    
    
    1.761,096.3
    
    
    
    35.1
    
    
    
    3.20
    
    
    
    1,106.8
    
    
    
    18.1
    
    
    
    1.64
    
    
    
    964.1
    
    
    
    14.4
    
    
    
    1.50
    
    
    
    792.1
    
    
    
    17.3
    
    
    
    2.1911.5
    
    
    
    0.3
    
    
    
    3.04
    
    
    
    9.5
    
    
    
    0.1
    
    
    
    1.10
    
    
    
    11.6
    
    
    
    0.1
    
    
    
    0.87
    
    
    
    29.0
    
    
    
    0.4
    
    
    
    1.461,107.8
    
    
    
    35.4
    
    
    
    3.20
    
    
    
    1,116.3
    
    
    
    18.2
    
    
    
    1.63
    
    
    
    975.7
    
    
    
    14.5
    
    
    
    1.49
    
    
    
    821.1
    
    
    
    17.7
    
    
    
    2.16405.5
    
    
    
    20.9
    
    
    
    5.15
    
    
    
    407.3
    
    
    
    13.7
    
    
    
    3.36
    
    
    
    345.8
    
    
    
    13.5
    
    
    
    3.91
    
    
    
    160.5
    
    
    
    10.6
    
    
    
    6.607,694.5
    
    
    
    187.7
    
    
    
    2.44
    
    
    
    7,189.3
    
    
    
    92.1
    
    
    
    1.28
    
    
    
    6,782.1
    
    
    
    91.7
    
    
    
    1.35
    
    
    
    5,977.9
    
    
    
    116.3
    
    
    
    1.95992.0
    
    
    
    
    
    
    
    
    
    
    
    927.5
    
    
    
    
    
    
    
    
    
    
    
    833.3
    
    
    
    
    
    
    
    
    
    
    
    831.3270.9
    
    
    
    
    
    
    
    
    
    
    
    245.9
    
    
    
    
    
    
    
    
    
    
    
    215.5
    
    
    
    
    
    
    
    
    
    
    
    205.78,957.4
    
    
    
    187.7
    
    
    
    2.09
    
    
    
    8,362.7
    
    
    
    92.1
    
    
    
    1.10
    
    
    
    7,830.9
    
    
    
    91.7
    
    
    
    1.18
    
    
    
    7,014.9
    
    
    
    116.3
    
    
    
    1.670.2
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    0.1949.3
    
    
    
    
    
    
    
    
    
    
    
    854.3
    
    
    
    
    
    
    
    
    
    
    
    773.0
    
    
    
    
    
    
    
    
    
    
    
    722.5(270.9
    )
    
    
    
    
    
    
    
    
    
    
    (245.9
    )
    
    
    
    
    
    
    
    
    
    
    (215.5
    )
    
    
    
    
    
    
    
    
    
    
    (205.7
    )167.0
    
    
    
    
    
    
    
    
    
    
    
    156.3
    
    
    
    
    
    
    
    
    
    
    
    144.4
    
    
    
    
    
    
    
    
    
    
    
    132.1$
    9,803.0
    
    
    
    
    
    
    
    
    
    
    $
    9,127.8
    
    
    
    
    
    
    
    
    
    
    $
    8,532.9
    
    
    
    
    
    
    
    
    
    
    $
    7,663.9332.8
    
    
    
    3.71
    %
    
    
    
    
    
    
    298.9
    
    
    
    3.57
    %
    
    
    
    
    
    
    281.9
    
    
    
    3.60
    %
    
    
    
    
    
    
    281.6
    
    
    
    4.02
    %(3.9
    )
    
    
    
    
    
    
    
    
    
    
    (4.5
    )
    
    
    
    
    
    
    
    
    
    
    (4.8
    )
    
    
    
    
    
    
    
    
    
    
    (5.1
    )$
    328.9
    
    
    
    
    
    
    
    
    
    
    $
    294.4
    
    
    
    
    
    
    
    
    
    
    $
    277.1
    
    
    
    
    
    
    
    
    
    
    $
    276.5
 2006 Annual Report
    
    59




---



##### 



FIVE-YEAR COMPARISON OF  CONSOLIDATED AVERAGE STATEMENTS OF CONDITION
 For the year ended December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002ASSETSCash and due from banks
    
    $
    210.6
    
    
    $
    229.2
    
    
    $
    212.2
    
    
    $
    190.2
    
    
    $
    189.1Federal funds sold and securities
purchased under agreements to resell
    
    
    52.8
    
    
    
    33.7
    
    
    
    23.8
    
    
    
    28.5
    
    
    
    28.2Investment securities:U.S. Treasury
    
    
    156.5
    
    
    
    124.4
    
    
    
    189.0
    
    
    
    308.1
    
    
    
    413.2Government agencies
    
    
    478.9
    
    
    
    363.8
    
    
    
    262.2
    
    
    
    190.7
    
    
    
    171.1Obligations of state and political subdivisions
    
    
    10.0
    
    
    
    11.5
    
    
    
    13.5
    
    
    
    16.4
    
    
    
    17.2Preferred stock
    
    
    90.2
    
    
    
    94.0
    
    
    
    120.9
    
    
    
    118.4
    
    
    
    86.4Mortgage-backed securities
    
    
    761.9
    
    
    
    925.0
    
    
    
    973.6
    
    
    
    861.1
    
    
    
    428.5Other securities
    
    
    395.6
    
    
    
    357.9
    
    
    
    309.3
    
    
    
    247.7
    
    
    
    179.0Total investment securities
    
    
    1,893.1
    
    
    
    1,876.6
    
    
    
    1,868.5
    
    
    
    1,742.4
    
    
    
    1,295.4Loans:Commercial, financial, and agricultural
    
    
    2,437.4
    
    
    
    2,462.1
    
    
    
    2,374.4
    
    
    
    2,209.3
    
    
    
    2,005.5Real estate  construction
    
    
    1,516.8
    
    
    
    982.3
    
    
    
    731.8
    
    
    
    612.4
    
    
    
    448.0Mortgage  commercial
    
    
    1,240.8
    
    
    
    1,229.1
    
    
    
    1,168.6
    
    
    
    1,044.1
    
    
    
    998.5Total commercial loans
    
    
    5,195.0
    
    
    
    4,673.5
    
    
    
    4,274.8
    
    
    
    3,865.8
    
    
    
    3,452.0Mortgage  residential
    
    
    495.2
    
    
    
    438.6
    
    
    
    453.8
    
    
    
    585.2
    
    
    
    777.1Consumer loans
    
    
    1,458.2
    
    
    
    1,329.3
    
    
    
    1,134.1
    
    
    
    1,037.9
    
    
    
    1,008.5Loans secured with liquid collateral
    
    
    551.4
    
    
    
    605.7
    
    
    
    607.7
    
    
    
    571.1
    
    
    
    453.7Total retail loans
    
    
    2,504.8
    
    
    
    2,373.6
    
    
    
    2,195.6
    
    
    
    2,194.2
    
    
    
    2,239.3Total loans net of unearned income
    
    
    7,699.8
    
    
    
    7,047.1
    
    
    
    6,470.4
    
    
    
    6,060.0
    
    
    
    5,691.3Reserve for loan losses
    
    
    (91.8
    )
    
    
    (90.9
    )
    
    
    (90.3
    )
    
    
    (86.7
    )
    
    
    (83.0
    )Net loans
    
    
    7,608.0
    
    
    
    6,956.2
    
    
    
    6,380.1
    
    
    
    5,973.3
    
    
    
    5,608.3Premises and equipment
    
    
    150.6
    
    
    
    148.9
    
    
    
    152.0
    
    
    
    153.4
    
    
    
    140.8Goodwill
    
    
    339.6
    
    
    
    341.4
    
    
    
    290.9
    
    
    
    244.1
    
    
    
    234.0Other intangibles
    
    
    37.4
    
    
    
    41.5
    
    
    
    31.1
    
    
    
    22.1
    
    
    
    12.2Other assets
    
    
    203.0
    
    
    
    175.5
    
    
    
    169.2
    
    
    
    178.9
    
    
    
    155.9Total assets
    
    $
    10,495.1
    
    
    $
    9,803.0
    
    
    $
    9,127.8
    
    
    $
    8,532.9
    
    
    $
    7,663.9LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Noninterest-bearing demand
    
    $
    759.1
    
    
    $
    992.0
    
    
    $
    927.5
    
    
    $
    833.3
    
    
    $
    831.3Interest-bearing:Savings
    
    
    311.4
    
    
    
    344.9
    
    
    
    369.1
    
    
    
    366.0
    
    
    
    353.9Interest-bearing demand
    
    
    2,347.5
    
    
    
    2,303.8
    
    
    
    2,311.1
    
    
    
    2,183.9
    
    
    
    1,735.2Certificates under $100,000
    
    
    979.4
    
    
    
    824.4
    
    
    
    768.3
    
    
    
    834.4
    
    
    
    891.2Local certificates $100,000 and over
    
    
    521.7
    
    
    
    401.5
    
    
    
    177.7
    
    
    
    138.6
    
    
    
    169.5Total core deposits
    
    
    4,919.1
    
    
    
    4,866.6
    
    
    
    4,553.7
    
    
    
    4,356.2
    
    
    
    3,981.1National money market deposit accounts
    
    
    17.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    National certificates $100,000 and over
    
    
    2,803.9
    
    
    
    2,306.6
    
    
    
    2,039.5
    
    
    
    1,937.7
    
    
    
    1,846.5Total deposits
    
    
    7,740.6
    
    
    
    7,173.2
    
    
    
    6,593.2
    
    
    
    6,293.9
    
    
    
    5,827.6Short-term borrowings:Federal funds purchased and securities sold
under agreements to repurchase
    
    
    1,124.7
    
    
    
    1,096.3
    
    
    
    1,106.8
    
    
    
    964.1
    
    
    
    792.1U.S. Treasury demand
    
    
    11.1
    
    
    
    11.5
    
    
    
    9.5
    
    
    
    11.6
    
    
    
    29.0Total short-term borrowings
    
    
    1,135.8
    
    
    
    1,107.8
    
    
    
    1,116.3
    
    
    
    975.7
    
    
    
    821.1Other liabilities
    
    
    164.9
    
    
    
    167.0
    
    
    
    156.3
    
    
    
    144.4
    
    
    
    132.1Long-term debt
    
    
    394.4
    
    
    
    405.5
    
    
    
    407.3
    
    
    
    345.8
    
    
    
    160.5Total liabilities
    
    
    9,435.7
    
    
    
    8,853.5
    
    
    
    8,273.1
    
    
    
    7,759.8
    
    
    
    6,941.3Minority interest
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.4
    
    
    
    0.1
    
    
    
    0.1Stockholders equity
    
    
    1,059.1
    
    
    
    949.3
    
    
    
    854.3
    
    
    
    773.0
    
    
    
    722.5Total liabilities and stockholders equity
    
    $
    10,495.1
    
    
    $
    9,803.0
    
    
    $
    9,127.8
    
    
    $
    8,532.9
    
    
    $
    7,663.9
 60     Five-Year
Comparison of Consolidated Average Statements of Condition
    
    Wilmington Trust Corporation




---



##### 



FIVE-YEAR COMPARISON  OF CONSOLIDATED STATEMENTS OF INCOME
 For the year ended December 31 (in millions, except share amounts)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002NET INTEREST INCOMEInterest income
    
    $
    674.8
    
    
    $
    516.6
    
    
    $
    386.5
    
    
    $
    368.8
    
    
    $
    392.8Interest expense
    
    
    311.7
    
    
    
    187.7
    
    
    
    92.1
    
    
    
    91.7
    
    
    
    116.3Net interest income
    
    
    363.1
    
    
    
    328.9
    
    
    
    294.4
    
    
    
    277.1
    
    
    
    276.5Provision for loan losses
    
    
    (21.3
    )
    
    
    (11.8
    )
    
    
    (15.6
    )
    
    
    (21.6
    )
    
    
    (22.0
    )Net interest income after provision for loan losses
    
    
    341.8
    
    
    
    317.1
    
    
    
    278.8
    
    
    
    255.5
    
    
    
    254.5NONINTEREST INCOMEAdvisory fees:Wealth Advisory Services
    
    
    192.0
    
    
    
    172.1
    
    
    
    155.6
    
    
    
    140.4
    
    
    
    126.9Corporate Client Services
    
    
    85.6
    
    
    
    76.3
    
    
    
    71.6
    
    
    
    67.3
    
    
    
    64.3Cramer Rosenthal McGlynn
    
    
    19.3
    
    
    
    16.1
    
    
    
    10.9
    
    
    
    5.3
    
    
    
    7.7Roxbury Capital Management
    
    
    1.2
    
    
    
    1.4
    
    
    
    1.6
    
    
    
    (2.3
    )
    
    
    8.6Total advisory fees
    
    
    298.1
    
    
    
    265.9
    
    
    
    239.7
    
    
    
    210.7
    
    
    
    207.5Amortization of affiliate intangibles
    
    
    (4.2
    )
    
    
    (4.0
    )
    
    
    (2.5
    )
    
    
    (1.7
    )
    
    
    (1.3
    )Advisory fees after amortization of affiliate intangibles
    
    
    293.9
    
    
    
    261.9
    
    
    
    237.2
    
    
    
    209.0
    
    
    
    206.2Service charges on deposit accounts
    
    
    28.2
    
    
    
    28.1
    
    
    
    31.4
    
    
    
    32.3
    
    
    
    29.9Other noninterest income
    
    
    23.8
    
    
    
    22.5
    
    
    
    18.6
    
    
    
    22.2
    
    
    
    24.1Securities gains/(losses)
    
    
    0.2
    
    
    
    0.8
    
    
    
    (0.5
    )
    
    
    0.7
    
    
    
    2.0Total noninterest income
    
    
    346.1
    
    
    
    313.3
    
    
    
    286.7
    
    
    
    264.2
    
    
    
    262.2Net interest and noninterest income
    
    
    687.9
    
    
    
    630.4
    
    
    
    565.5
    
    
    
    519.7
    
    
    
    516.7NONINTEREST EXPENSESalaries and wages
    
    
    154.4
    
    
    
    139.8
    
    
    
    134.7
    
    
    
    124.1
    
    
    
    119.5Incentives and bonuses
    
    
    39.8
    
    
    
    38.0
    
    
    
    35.1
    
    
    
    31.1
    
    
    
    35.4Employment benefits
    
    
    48.3
    
    
    
    47.2
    
    
    
    40.7
    
    
    
    35.6
    
    
    
    32.6Net occupancy
    
    
    25.7
    
    
    
    22.4
    
    
    
    21.2
    
    
    
    20.6
    
    
    
    20.4Furniture, equipment, and supplies
    
    
    38.3
    
    
    
    34.7
    
    
    
    32.1
    
    
    
    28.2
    
    
    
    31.9Impairment write-down
    
    
    72.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other noninterest expense
    
    
    92.8
    
    
    
    88.0
    
    
    
    86.0
    
    
    
    76.7
    
    
    
    75.2Total noninterest expense
    
    
    471.6
    
    
    
    370.1
    
    
    
    349.8
    
    
    
    316.3
    
    
    
    315.0NET INCOMEIncome before income taxes and minority interest
    
    
    216.3
    
    
    
    260.3
    
    
    
    215.7
    
    
    
    203.4
    
    
    
    201.7Income tax expense
    
    
    72.7
    
    
    
    93.0
    
    
    
    77.9
    
    
    
    71.4
    
    
    
    71.8Net income before minority interest
    
    
    143.6
    
    
    
    167.3
    
    
    
    137.8
    
    
    
    132.0
    
    
    
    129.9Minority interest
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9
    
    
    
    1.1
    
    
    
    0.6Net income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9
    
    
    $
    130.9
    
    
    $
    129.3Net income per share  basic
    
    $
    2.10
    
    
    $
    2.47
    
    
    $
    2.05
    
    
    $
    1.99
    
    
    $
    1.97Net income per share  diluted
    
    $
    2.06
    
    
    $
    2.43
    
    
    $
    2.02
    
    
    $
    1.97
    
    
    $
    1.95Weighted average shares outstanding (in thousands)
Basic
    
    
    68,413
    
    
    
    67,688
    
    
    
    66,793
    
    
    
    65,869
    
    
    
    65,617Diluted
    
    
    69,707
    
    
    
    68,570
    
    
    
    67,749
    
    
    
    66,536
    
    
    
    66,301Net income as a percentage of:Average total assets
    
    
    1.37
    %
    
    
    1.70
    %
    
    
    1.50
    %
    
    
    1.53
    %
    
    
    1.69
    %Average stockholders equity
    
    
    13.58
    %
    
    
    17.59
    %
    
    
    16.02
    %
    
    
    16.93
    %
    
    
    17.90
    %EXCLUDING IMPAIRMENT WRITE-DOWNIncome before income taxes and minority interest
    
    $
    216.3
    
    
    $
    260.3
    
    
    $
    215.7
    
    
    $
    203.4
    
    
    $
    201.7Impairment write-down
    
    
    72.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income before income taxes, minority interest and impairment write-down
    
    
    288.6
    
    
    
    260.3
    
    
    
    215.7
    
    
    
    203.4
    
    
    
    201.7Income tax expense
    
    
    103.3
    
    
    
    93.0
    
    
    
    77.9
    
    
    
    71.4
    
    
    
    71.8Net income before minority interest and impairment write-down
    
    
    185.3
    
    
    
    167.3
    
    
    
    137.8
    
    
    
    132.0
    
    
    
    129.9Minority interest
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9
    
    
    
    1.1
    
    
    
    0.6Net income before impairment write-down
    
    $
    185.5
    
    
    $
    167.0
    
    
    $
    136.9
    
    
    $
    130.9
    
    
    $
    129.3Net income per share  basic
    
    $
    2.71
    
    
    $
    2.47
    
    
    $
    2.05
    
    
    $
    1.99
    
    
    $
    1.97Net income per share  diluted
    
    $
    2.66
    
    
    $
    2.43
    
    
    $
    2.02
    
    
    $
    1.97
    
    
    $
    1.95Weighted average shares outstanding (in thousands)Basic
    
    
    68,413
    
    
    
    67,688
    
    
    
    66,793
    
    
    
    65,869
    
    
    
    65,617Diluted
    
    
    69,707
    
    
    
    68,570
    
    
    
    67,749
    
    
    
    66,536
    
    
    
    66,301Net income as a percentage of:Average total assets
    
    
    1.76
    %
    
    
    1.70
    %
    
    
    1.50
    %
    
    
    1.53
    %
    
    
    1.69
    %Average stockholders equity
    
    
    17.34
    %
    
    
    17.59
    %
    
    
    16.02
    %
    
    
    16.93
    %
    
    
    17.90
    %
 2006 Annual Report
    
    61




---



##### 



SUMMARY OF CONSOLIDATED  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
 For the year ended December 31
    
    2006
    
    
    2005(in millions, except share amounts)
    
    Dec. 31
    
    
    Sept. 30
    
    
    June 30
    
    
    Mar. 31
    
    
    Dec. 31
    
    
    Sept. 30
    
    
    June 30
    
    
    Mar. 31NET INTEREST INCOMEInterest income
    
    $
    182.0
    
    
    $
    175.0
    
    
    $
    165.0
    
    
    $
    152.8
    
    
    $
    146.2
    
    
    $
    134.9
    
    
    $
    122.6
    
    
    $
    112.9Interest expense
    
    
    89.6
    
    
    
    82.0
    
    
    
    74.6
    
    
    
    65.5
    
    
    
    58.7
    
    
    
    51.2
    
    
    
    42.5
    
    
    
    35.3Net interest income
    
    
    92.4
    
    
    
    93.0
    
    
    
    90.4
    
    
    
    87.3
    
    
    
    87.5
    
    
    
    83.7
    
    
    
    80.1
    
    
    
    77.6Provision for loan losses
    
    
    (6.5
    )
    
    
    (6.6
    )
    
    
    (4.2
    )
    
    
    (4.0
    )
    
    
    (2.0
    )
    
    
    (2.9
    )
    
    
    (3.8
    )
    
    
    (3.1
    )Net interest income after provision for
loan losses
    
    
    85.9
    
    
    
    86.4
    
    
    
    86.2
    
    
    
    83.3
    
    
    
    85.5
    
    
    
    80.8
    
    
    
    76.3
    
    
    
    74.5NONINTEREST INCOMEAdvisory fees:Wealth Advisory Services
    
    
    51.3
    
    
    
    47.1
    
    
    
    47.0
    
    
    
    46.3
    
    
    
    42.7
    
    
    
    43.5
    
    
    
    42.4
    
    
    
    43.5Corporate Client Services
    
    
    23.4
    
    
    
    21.1
    
    
    
    20.8
    
    
    
    20.4
    
    
    
    20.6
    
    
    
    19.1
    
    
    
    18.7
    
    
    
    18.0Cramer Rosenthal McGlynn
    
    
    5.3
    
    
    
    4.6
    
    
    
    5.5
    
    
    
    4.0
    
    
    
    4.3
    
    
    
    3.4
    
    
    
    4.0
    
    
    
    4.3Roxbury Capital Management
    
    
    0.1
    
    
    
    
    
    
    
    0.3
    
    
    
    0.9
    
    
    
    0.6
    
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.3Total advisory fees
    
    
    80.1
    
    
    
    72.8
    
    
    
    73.6
    
    
    
    71.6
    
    
    
    68.2
    
    
    
    66.3
    
    
    
    65.3
    
    
    
    66.1Amortization of affiliate intangibles
    
    
    (1.1
    )
    
    
    (1.1
    )
    
    
    (1.0
    )
    
    
    (1.0
    )
    
    
    (1.0
    )
    
    
    (1.0
    )
    
    
    (1.0
    )
    
    
    (1.0
    )Advisory fees after amortization of
affiliate intangibles
    
    
    79.0
    
    
    
    71.7
    
    
    
    72.6
    
    
    
    70.6
    
    
    
    67.2
    
    
    
    65.3
    
    
    
    64.3
    
    
    
    65.1Service charges on deposit accounts
    
    
    7.1
    
    
    
    7.3
    
    
    
    7.0
    
    
    
    6.9
    
    
    
    7.3
    
    
    
    7.4
    
    
    
    6.7
    
    
    
    6.7Other noninterest income
    
    
    6.2
    
    
    
    5.5
    
    
    
    6.8
    
    
    
    5.2
    
    
    
    5.3
    
    
    
    7.0
    
    
    
    5.4
    
    
    
    4.8Securities gains/(losses)
    
    
    0.2
    
    
    
    0.1
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.8Noninterest income
    
    
    92.5
    
    
    
    84.6
    
    
    
    86.3
    
    
    
    82.7
    
    
    
    79.8
    
    
    
    79.7
    
    
    
    76.4
    
    
    
    77.4Net interest and noninterest income
    
    
    178.4
    
    
    
    171.0
    
    
    
    172.5
    
    
    
    166.0
    
    
    
    165.3
    
    
    
    160.5
    
    
    
    152.7
    
    
    
    151.9NONINTEREST EXPENSESalaries and wages
    
    
    40.3
    
    
    
    39.5
    
    
    
    37.8
    
    
    
    36.9
    
    
    
    36.4
    
    
    
    35.4
    
    
    
    35.0
    
    
    
    32.9Incentives and bonuses
    
    
    10.3
    
    
    
    8.9
    
    
    
    10.3
    
    
    
    10.3
    
    
    
    8.8
    
    
    
    9.3
    
    
    
    10.1
    
    
    
    9.8Employment benefits
    
    
    11.4
    
    
    
    11.4
    
    
    
    11.9
    
    
    
    13.5
    
    
    
    11.5
    
    
    
    11.6
    
    
    
    11.7
    
    
    
    12.5Net occupancy
    
    
    6.7
    
    
    
    6.7
    
    
    
    6.3
    
    
    
    5.9
    
    
    
    6.1
    
    
    
    5.5
    
    
    
    5.1
    
    
    
    5.7Furniture, equipment, and supplies
    
    
    10.3
    
    
    
    9.2
    
    
    
    9.9
    
    
    
    9.0
    
    
    
    8.4
    
    
    
    8.7
    
    
    
    9.0
    
    
    
    8.4Other noninterest expense:Advertising and contributions
    
    
    3.2
    
    
    
    2.2
    
    
    
    2.1
    
    
    
    1.9
    
    
    
    2.5
    
    
    
    2.4
    
    
    
    2.1
    
    
    
    2.1Servicing and consulting fees
    
    
    2.9
    
    
    
    2.8
    
    
    
    2.4
    
    
    
    2.3
    
    
    
    2.9
    
    
    
    2.3
    
    
    
    2.3
    
    
    
    2.8Subadvisor expense
    
    
    2.3
    
    
    
    2.7
    
    
    
    2.9
    
    
    
    2.8
    
    
    
    2.5
    
    
    
    2.7
    
    
    
    1.7
    
    
    
    2.6Travel, entertainment, and training
    
    
    3.4
    
    
    
    2.5
    
    
    
    2.3
    
    
    
    2.2
    
    
    
    2.6
    
    
    
    2.6
    
    
    
    1.9
    
    
    
    1.7Originating and processing fees
    
    
    3.1
    
    
    
    2.8
    
    
    
    2.4
    
    
    
    2.8
    
    
    
    2.8
    
    
    
    2.8
    
    
    
    2.7
    
    
    
    2.2Other expense
    
    
    11.0
    
    
    
    9.9
    
    
    
    10.0
    
    
    
    9.9
    
    
    
    10.0
    
    
    
    10.2
    
    
    
    10.1
    
    
    
    9.6Total other noninterest expense
    
    
    25.9
    
    
    
    22.9
    
    
    
    22.1
    
    
    
    21.9
    
    
    
    23.3
    
    
    
    23.0
    
    
    
    20.8
    
    
    
    21.0Total noninterest expense
before impairment
    
    
    104.9
    
    
    
    98.6
    
    
    
    98.3
    
    
    
    97.5
    
    
    
    94.5
    
    
    
    93.5
    
    
    
    91.7
    
    
    
    90.3Impairment write-down
    
    
    
    
    
    
    72.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total noninterest expense
    
    
    104.9
    
    
    
    170.9
    
    
    
    98.3
    
    
    
    97.5
    
    
    
    94.5
    
    
    
    93.5
    
    
    
    91.7
    
    
    
    90.3NET INCOMEIncome before income taxes and
minority interest
    
    
    73.5
    
    
    
    0.1
    
    
    
    74.2
    
    
    
    68.5
    
    
    
    70.8
    
    
    
    67.0
    
    
    
    61.0
    
    
    
    61.6Income tax expense/(benefit)
    
    
    26.3
    
    
    
    (5.0
    )
    
    
    27.2
    
    
    
    24.3
    
    
    
    24.3
    
    
    
    24.1
    
    
    
    22.4
    
    
    
    22.4Net income before minority interest
    
    
    47.2
    
    
    
    5.1
    
    
    
    47.0
    
    
    
    44.2
    
    
    
    46.5
    
    
    
    42.9
    
    
    
    38.6
    
    
    
    39.2Minority interest
    
    
    (0.3
    )
    
    
    (0.1
    )
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    Net income
    
    $
    47.5
    
    
    $
    5.2
    
    
    $
    46.9
    
    
    $
    44.1
    
    
    $
    46.5
    
    
    $
    42.8
    
    
    $
    38.5
    
    
    $
    39.2Net income per share  basic
    
    $
    0.69
    
    
    $
    0.08
    
    
    $
    0.69
    
    
    $
    0.65
    
    
    $
    0.69
    
    
    $
    0.63
    
    
    $
    0.57
    
    
    $
    0.58Net income per share  diluted
    
    $
    0.68
    
    
    $
    0.07
    
    
    $
    0.67
    
    
    $
    0.64
    
    
    $
    0.67
    
    
    $
    0.62
    
    
    $
    0.56
    
    
    $
    0.57EXCLUDING IMPAIRMENT
WRITE-DOWNIncome before income taxes
and minority interest
    
    $
    73.5
    
    
    $
    0.1
    
    
    $
    74.2
    
    
    $
    68.5
    
    
    $
    70.8
    
    
    $
    67.0
    
    
    $
    61.0
    
    
    $
    61.6Impairment write-down
    
    
    
    
    
    
    72.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income
before income taxes, minority
interest, and impairment write-down
    
    
    73.5
    
    
    
    72.4
    
    
    
    74.2
    
    
    
    68.5
    
    
    
    70.8
    
    
    
    67.0
    
    
    
    61.0
    
    
    
    61.6Income tax expense
    
    
    26.3
    
    
    
    25.6
    
    
    
    27.2
    
    
    
    24.3
    
    
    
    24.3
    
    
    
    24.1
    
    
    
    22.4
    
    
    
    22.4Net income before minority interest
and impairment write-down
    
    
    47.2
    
    
    
    46.8
    
    
    
    47.0
    
    
    
    44.2
    
    
    
    46.5
    
    
    
    42.9
    
    
    
    38.6
    
    
    
    39.2Minority interest
    
    
    (0.3
    )
    
    
    (0.1
    )
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    Net income before impairment write-down
    
    $
    47.5
    
    
    $
    46.9
    
    
    $
    46.9
    
    
    $
    44.1
    
    
    $
    46.5
    
    
    $
    42.8
    
    
    $
    38.5
    
    
    $
    39.2Net income per share  basic
    
    $
    0.69
    
    
    $
    0.68
    
    
    $
    0.69
    
    
    $
    0.65
    
    
    $
    0.69
    
    
    $
    0.63
    
    
    $
    0.57
    
    
    $
    0.58Net income per share  diluted
    
    $
    0.68
    
    
    $
    0.68
    
    
    $
    0.67
    
    
    $
    0.64
    
    
    $
    0.67
    
    
    $
    0.62
    
    
    $
    0.56
    
    
    $
    0.57
 62     Summary
of Consolidated Quarterly Results of Operations (unaudited)
    
    Wilmington Trust Corporation




---



##### 



CONSOLIDATED STATEMENTS OF CONDITION
 As of December 31 (in millions, except share amounts)
    
    2006
    
    
    2005ASSETSCash and due from
banks
    
    $
    249.7
    
    
    $
    264.0Federal funds sold and securities purchased under agreements to
resell
    
    
    68.9
    
    
    
    14.3Investment securities available for sale
    
    
    2,112.9
    
    
    
    1,926.3Investment securities held to maturity (fair value of $1.8 in
2006 and $2.6 in 2005)
    
    
    1.7
    
    
    
    2.5Loans:Commercial, financial, and agricultural
    
    
    2,533.5
    
    
    
    2,461.3Real estate  construction
    
    
    1,663.9
    
    
    
    1,233.9Mortgage  commercial
    
    
    1,296.1
    
    
    
    1,223.9Total commercial loans
    
    
    5,493.5
    
    
    
    4,919.1Mortgage  residential
    
    
    536.9
    
    
    
    455.5Consumer loans
    
    
    1,517.0
    
    
    
    1,438.3Loans secured with liquid collateral
    
    
    547.5
    
    
    
    584.8Total retail loans
    
    
    2,601.4
    
    
    
    2,478.6Total loans net of unearned income
    
    
    8,094.9
    
    
    
    7,397.7Reserve for loan losses
    
    
    (94.2
    )
    
    
    (91.4
    )Net loans
    
    
    8,000.7
    
    
    
    7,306.3Premises and equipment, net
    
    
    150.3
    
    
    
    147.6Goodwill, net of accumulated amortization of $29.8 in 2006 and
2005
    
    
    291.4
    
    
    
    348.3Other intangible assets, net of accumulated amortization of
$25.7 in 2006 and $20.3 in 2005
    
    
    35.4
    
    
    
    36.2Accrued interest receivable
    
    
    74.0
    
    
    
    54.5Other assets
    
    
    172.0
    
    
    
    145.4Total assets
    
    $
    11,157.0
    
    
    $
    10,245.4LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Noninterest-bearing demand
    
    $
    913.6
    
    
    $
    1,014.8Interest-bearing:Savings
    
    
    313.8
    
    
    
    326.3Interest-bearing demand
    
    
    2,417.5
    
    
    
    2,360.0Certificates under $100,000
    
    
    1,012.6
    
    
    
    923.0Local certificates $100,000 and over
    
    
    474.4
    
    
    
    436.5Total core deposits
    
    
    5,131.9
    
    
    
    5,060.6National money market deposit accounts
    
    
    143.1
    
    
    
    National certificates $100,000 and over
    
    
    3,054.1
    
    
    
    2,228.6Total deposits
    
    
    8,329.1
    
    
    
    7,289.2Short-term borrowings:Federal funds purchased and securities sold under agreements
to repurchase
    
    
    1,130.8
    
    
    
    1,355.6U.S. Treasury demand deposits
    
    
    13.0
    
    
    
    18.1Line of credit
    
    
    15.0
    
    
    
    Total short-term borrowings
    
    
    1,158.8
    
    
    
    1,373.7Accrued interest payable
    
    
    75.2
    
    
    
    45.7Other liabilities
    
    
    146.1
    
    
    
    118.5Long-term debt
    
    
    388.5
    
    
    
    400.4Total liabilities
    
    
    10,097.7
    
    
    
    9,227.5Minority interest
    
    
    
    
    
    
    0.2Stockholders equity:Common stock: $1.00 par value, authorized 150,000,000
shares, issued 78,528,346 shares
    
    
    78.5
    
    
    
    78.5Capital surplus
    
    
    168.6
    
    
    
    145.0Retained earnings
    
    
    1,130.4
    
    
    
    1,071.7Accumulated other comprehensive loss
    
    
    (52.7
    )
    
    
    (21.8
    )Total contributed capital and retained earnings
    
    
    1,324.8
    
    
    
    1,273.4Less:
treasury stock: 10,068,832 shares in 2006 and 10,625,067 shares in 2005, at cost
    
    
    (265.5
    )
    
    
    (255.7
    )Total stockholders equity
    
    
    1,059.3
    
    
    
    1,017.7Total liabilities and stockholders equity
    
    $
    11,157.0
    
    
    $
    10,245.4
 See Notes to Consolidated Financial Statements
 2006 Annual Report
    
    63




---



##### 



CONSOLIDATED STATEMENTS OF INCOME
 For the year ended December 31 (in millions, except share amounts)
    
    2006
    
    
    2005
    
    
    2004NET INTEREST INCOMEInterest and fees on loans
    
    $
    583.2
    
    
    $
    436.6
    
    
    $
    313.7Interest and dividends on investment securities:Taxable interest
    
    
    82.3
    
    
    
    72.4
    
    
    
    64.2Tax-exempt interest
    
    
    0.6
    
    
    
    0.6
    
    
    
    0.8Dividends
    
    
    6.0
    
    
    
    5.9
    
    
    
    7.4Interest on federal funds sold and securities purchased under agreements to resell
    
    
    2.7
    
    
    
    1.1
    
    
    
    0.4Total interest income
    
    
    674.8
    
    
    
    516.6
    
    
    
    386.5Interest on deposits
    
    
    231.3
    
    
    
    131.4
    
    
    
    60.2Interest on short-term borrowings
    
    
    54.2
    
    
    
    35.4
    
    
    
    18.2Interest on long-term debt
    
    
    26.2
    
    
    
    20.9
    
    
    
    13.7Total interest expense
    
    
    311.7
    
    
    
    187.7
    
    
    
    92.1Net interest income
    
    
    363.1
    
    
    
    328.9
    
    
    
    294.4Provision for loan losses
    
    
    (21.3
    )
    
    
    (11.8
    )
    
    
    (15.6
    )Net interest income after provision for loan losses
    
    
    341.8
    
    
    
    317.1
    
    
    
    278.8NONINTEREST INCOMEAdvisory fees:Wealth Advisory Services:Trust and investment advisory fees
    
    
    136.1
    
    
    
    123.9
    
    
    
    111.0Mutual fund fees
    
    
    20.2
    
    
    
    17.8
    
    
    
    19.2Planning and other services
    
    
    35.7
    
    
    
    30.4
    
    
    
    25.4Total Wealth Advisory Services
    
    
    192.0
    
    
    
    172.1
    
    
    
    155.6Corporate Client Services:Capital markets services
    
    
    37.0
    
    
    
    34.3
    
    
    
    31.7Entity management services
    
    
    26.8
    
    
    
    23.6
    
    
    
    22.6Retirement services
    
    
    11.5
    
    
    
    10.7
    
    
    
    9.2Investment/cash management services
    
    
    10.3
    
    
    
    7.7
    
    
    
    8.1Total Corporate Client Services
    
    
    85.6
    
    
    
    76.3
    
    
    
    71.6Cramer Rosenthal McGlynn
    
    
    19.3
    
    
    
    16.1
    
    
    
    10.9Roxbury Capital Management
    
    
    1.2
    
    
    
    1.4
    
    
    
    1.6Total advisory fees
    
    
    298.1
    
    
    
    265.9
    
    
    
    239.7Amortization of affiliate intangibles
    
    
    (4.2
    )
    
    
    (4.0
    )
    
    
    (2.5
    )Advisory fees after amortization of affiliate intangibles
    
    
    293.9
    
    
    
    261.9
    
    
    
    237.2Service charges on deposit accounts
    
    
    28.2
    
    
    
    28.1
    
    
    
    31.4Loan fees and late charges
    
    
    8.0
    
    
    
    7.2
    
    
    
    6.1Card fees
    
    
    9.2
    
    
    
    8.1
    
    
    
    8.6Other noninterest income
    
    
    6.6
    
    
    
    7.2
    
    
    
    3.9Securities gains/(losses)
    
    
    0.2
    
    
    
    0.8
    
    
    
    (0.5
    )Total noninterest income
    
    
    346.1
    
    
    
    313.3
    
    
    
    286.7Net interest and noninterest income
    
    $
    687.9
    
    
    $
    630.4
    
    
    $
    565.5
  64     Consolidated
Statements of Income
    
    Wilmington Trust Corporation




---



##### 



For the year ended December 31 (in millions, except share amounts)
    
    2006
    
    
    2005
    
    
    2004NONINTEREST EXPENSESalaries and wages
    
    $
    154.4
    
    
    $
    139.8
    
    
    $
    134.7Incentives and bonuses
    
    
    39.8
    
    
    
    38.0
    
    
    
    35.1Employment benefits
    
    
    48.3
    
    
    
    47.2
    
    
    
    40.7Net occupancy
    
    
    25.7
    
    
    
    22.4
    
    
    
    21.2Furniture, equipment, and supplies
    
    
    38.3
    
    
    
    34.7
    
    
    
    32.1Advertising and contributions
    
    
    9.4
    
    
    
    9.1
    
    
    
    8.5Servicing and consulting fees
    
    
    10.4
    
    
    
    10.2
    
    
    
    11.6Subadvisor expense
    
    
    10.7
    
    
    
    9.4
    
    
    
    9.5Travel, entertainment, and training
    
    
    10.4
    
    
    
    8.8
    
    
    
    8.7Originating and processing fees
    
    
    11.1
    
    
    
    10.5
    
    
    
    9.0Impairment write-down
    
    
    72.3
    
    
    
    
    
    
    
    Other noninterest expense
    
    
    40.8
    
    
    
    40.0
    
    
    
    38.7Total noninterest expense
    
    
    471.6
    
    
    
    370.1
    
    
    
    349.8NET INCOMEIncome before income taxes and minority interest
    
    
    216.3
    
    
    
    260.3
    
    
    
    215.7Income tax expense
    
    
    72.7
    
    
    
    93.0
    
    
    
    77.9Net income before minority interest
    
    $
    143.6
    
    
    $
    167.3
    
    
    $
    137.8Minority interest
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9Net income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9Net income per share:Basic
    
    $
    2.10
    
    
    $
    2.47
    
    
    $
    2.05Diluted
    
    $
    2.06
    
    
    $
    2.43
    
    
    $
    2.02Weighted average shares outstanding (in thousands):Basic
    
    
    68,413
    
    
    
    67,688
    
    
    
    66,793Diluted
    
    
    69,707
    
    
    
    68,570
    
    
    
    67,749
 See Notes to Consolidated Financial Statements
 2006 Annual Report
    
    65




---



##### 



CONSOLIDATED STATEMENTS OF  CHANGES IN STOCKHOLDERS EQUITY
 Accumulatedother com-Common
    
    
    Capital
    
    
    Retained
    
    
    prehensive
    
    
    Treasury(In millions, except share amounts)
    
    stock
    
    
    surplus
    
    
    earnings
    
    
    loss
    
    
    stock
    
    
    Total2006Balance at January 1, 2006
    
    $
    78.5
    
    
    $
    145.0
    
    
    $
    1,071.7
    
    
    $
    (21.8
    )
    
    $
    (255.7
    )
    
    $
    1,017.7Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    143.8
    
    
    
    
    
    
    
    
    
    
    
    143.8Other comprehensive income, net of taxUnrealized losses on securities, net of income
taxes of $2.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.0
    
    
    
    
    
    
    
    5.0Reclassification adjustment for security gains included
in net income, net of income taxes of $(0.1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    (0.1
    )Net unrealized losses on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.9Reclassification adjustment for derivative gains
included in net income, net of income taxes of $(1.4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2.6
    )
    
    
    
    
    
    
    (2.6
    )Foreign
currency translation adjustments, net of
income taxes of $0.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.2
    
    
    
    
    
    
    
    1.2Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147.3Minimum pension liability adjustment, net of income
taxes of $(12.9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23.9
    )
    
    
    
    
    
    
    (23.9
    )OPEB minimum liability adjustment, net of income
taxes of $(3.9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7.1
    )
    
    
    
    
    
    
    (7.1
    )SERP liability adjustment, net of income taxes of $(1.8)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.4
    )
    
    
    
    
    
    
    (3.4
    )Cash dividends paid: $1.245 per share
    
    
    
    
    
    
    
    
    
    
    (85.1
    )
    
    
    
    
    
    
    
    
    
    
    (85.1
    )Common stock issued under employment benefit plans
and to the Board of Directors (1,219,231 shares issued)
    
    
    
    
    
    
    12.1
    
    
    
    
    
    
    
    
    
    
    
    19.3
    
    
    
    31.4Stock-based compensation expense
    
    
    
    
    
    
    7.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7.0Acquisition of treasury stock (662,996 shares acquired)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (29.1
    )
    
    
    (29.1
    )Tax benefits from stock-based compensation costs
    
    
    
    
    
    
    4.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.5Balance at December 31, 2006
    
    $
    78.5
    
    
    $
    168.6
    
    
    $
    1,130.4
    
    
    $
    (52.7
    )
    
    $
    (265.5
    )
    
    $
    1,059.32005Balance at January 1, 2005
    
    $
    78.5
    
    
    $
    129.7
    
    
    $
    984.9
    
    
    $
    (22.7
    )
    
    $
    (261.0
    )
    
    $
    909.4Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    167.0
    
    
    
    
    
    
    
    
    
    
    
    167.0Other comprehensive income, net of taxUnrealized losses on securities, net of income
taxes of $(10.3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18.3
    )
    
    
    
    
    
    
    (18.3
    )Reclassification adjustment for security gains included
in net income, net of income taxes of $(0.3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.5
    )
    
    
    
    
    
    
    (0.5
    )Net unrealized losses on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18.8
    )Reclassification adjustment for derivative gains
included in net income, net of income taxes of $(0.1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    (0.1
    )Foreign
currency translation adjustments,
net of income taxes of $(0.2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.5
    )
    
    
    
    
    
    
    (0.5
    )Minimum pension liability adjustment, net of
income taxes of $10.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19.7
    
    
    
    
    
    
    
    19.7SERP
liability adjustment, net of income taxes of $0.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    0.6Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    167.9Cash dividends paid: $1.185 per share
    
    
    
    
    
    
    
    
    
    
    (80.2
    )
    
    
    
    
    
    
    
    
    
    
    (80.2
    )Common stock issued under employment benefit plans
and to the Board of Directors (551,509 shares issued)
    
    
    
    
    
    
    7.6
    
    
    
    
    
    
    
    
    
    
    
    7.2
    
    
    
    14.8Stock-based compensation expense
    
    
    
    
    
    
    6.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.6Acquisition of treasury stock (53,652 shares acquired)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.9
    )
    
    
    (1.9
    )Tax benefits from stock-based compensation costs
    
    
    
    
    
    
    1.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.1Balance at December 31, 2005
    
    $
    78.5
    
    
    $
    145.0
    
    
    $
    1,071.7
    
    
    $
    (21.8
    )
    
    $
    (255.7
    )
    
    $
    1,017.7
  66     Consolidated
Statements of Changes in Stockholders Equity
    
    Wilmington Trust Corporation




---



##### 



Accumulatedother com-Common
    
    
    Capital
    
    
    Retained
    
    
    prehensive
    
    
    Treasury(In millions, except share amounts)
    
    stock
    
    
    surplus
    
    
    earnings
    
    
    loss
    
    
    stock
    
    
    Total2004Balance at January 1, 2004
    
    $
    78.5
    
    
    $
    83.6
    
    
    $
    923.0
    
    
    $
    (16.1
    )
    
    $
    (264.6
    )
    
    $
    804.4Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    136.9
    
    
    
    
    
    
    
    
    
    
    
    136.9Other comprehensive income, net of taxUnrealized losses on securities, net of income
taxes of $(2.3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4.1
    )
    
    
    
    
    
    
    (4.1
    )Reclassification adjustment for security losses
included in net income, net of income taxes of $0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.3
    
    
    
    
    
    
    
    0.3Net unrealized losses on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.8
    )Reclassification adjustment for derivative gains
included in net income, net of income taxes of $(0.1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )
    
    
    
    
    
    
    (0.2
    )Foreign
currency translation adjustments, net of
income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    0.1Minimum pension liability adjustment, net of income
taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.7
    )
    
    
    
    
    
    
    (1.7
    )SERP liability adjustment, net of income taxes of $(0.6)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.0
    )
    
    
    
    
    
    
    (1.0
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    130.3Cash dividends paid: $1.125 per share
    
    
    
    
    
    
    
    
    
    
    (75.0
    )
    
    
    
    
    
    
    
    
    
    
    (75.0
    )Common stock issued under employment benefit plans
and to the Board of Directors (575,660 shares issued)
    
    
    
    
    
    
    7.2
    
    
    
    
    
    
    
    
    
    
    
    7.3
    
    
    
    14.5Stock-based compensation expense
    
    
    
    
    
    
    5.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.8Common stock issued for purchase of subsidiary
(1,316,654 shares issued)
    
    
    
    
    
    
    32.2
    
    
    
    
    
    
    
    
    
    
    
    16.2
    
    
    
    48.4Acquisition of treasury stock (550,224 shares acquired)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19.9
    )
    
    
    (19.9
    )Tax benefits from stock-based compensation costs
    
    
    
    
    
    
    0.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.9Balance at December 31, 2004
    
    $
    78.5
    
    
    $
    129.7
    
    
    $
    984.9
    
    
    $
    (22.7
    )
    
    $
    (261.0
    )
    
    $
    909.4
 See Notes to Consolidated Financial Statements
 2006 Annual Report
    
    67




---



##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the year ended December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004OPERATING ACTIVITIESNet income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    21.3
    
    
    
    11.8
    
    
    
    15.6Provision for depreciation and other amortization
    
    
    21.8
    
    
    
    19.3
    
    
    
    19.6Impairment write-down
    
    
    72.3
    
    
    
    
    
    
    
    Amortization of other intangible assets
    
    
    5.4
    
    
    
    5.3
    
    
    
    3.9Minority interest in net income
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9Amortization of investment securities available for sale discounts and premiums
    
    
    0.3
    
    
    
    3.8
    
    
    
    12.1Deferred income taxes
    
    
    (32.5
    )
    
    
    5.9
    
    
    
    8.5Originations of residential mortgages available for sale
    
    
    (82.4
    )
    
    
    (114.0
    )
    
    
    (78.5
    )Gross proceeds from sales of residential mortgages
    
    
    83.2
    
    
    
    115.6
    
    
    
    79.9Gains on sales of residential mortgages
    
    
    (0.8
    )
    
    
    (1.6
    )
    
    
    (1.4
    )Securities (gains)/losses
    
    
    (0.2
    )
    
    
    (0.8
    )
    
    
    0.5Employer pension contributions
    
    
    (15.0
    )
    
    
    (25.0
    )
    
    
    (12.0
    )Stock-based compensation expense
    
    
    7.0
    
    
    
    6.6
    
    
    
    5.8Tax benefit realized on employee exercise of stock options
    
    
    (4.5
    )
    
    
    (1.1
    )
    
    
    (0.9
    )Decrease/(increase) in other assets
    
    
    27.6
    
    
    
    (24.6
    )
    
    
    (12.2
    )Increase in other liabilities
    
    
    22.2
    
    
    
    40.6
    
    
    
    20.4Net cash provided by operating activities
    
    $
    269.3
    
    
    $
    209.1
    
    
    $
    199.1INVESTING ACTIVITIESProceeds from sales of investment securities available for sale
    
    $
    28.4
    
    
    $
    28.4
    
    
    $
    67.4Proceeds from maturities of investment securities available for sale
    
    
    1,404.0
    
    
    
    528.4
    
    
    
    1,360.3Proceeds from maturities of investment securities held to maturity
    
    
    0.8
    
    
    
    0.7
    
    
    
    1.1Purchases of investment securities available for sale
    
    
    (1,611.4
    )
    
    
    (705.3
    )
    
    
    (1,381.2
    )Purchases of investment securities held to maturity
    
    
    
    
    
    
    (0.1
    )
    
    
    Investments in affiliates
    
    
    (13.3
    )
    
    
    
    
    
    
    (15.7
    )Cash paid for purchase of subsidiary
    
    
    (4.7
    )
    
    
    (0.6
    )
    
    
    (56.1
    )Purchase of minority interest
    
    
    
    
    
    
    
    
    
    
    (1.4
    )Purchase of client list
    
    
    (0.9
    )
    
    
    
    
    
    
    Purchases of residential mortgages
    
    
    (11.7
    )
    
    
    (9.4
    )
    
    
    (9.9
    )Net increase in loans
    
    
    (704.0
    )
    
    
    (635.4
    )
    
    
    (543.6
    )Purchases of premises and equipment
    
    
    (24.1
    )
    
    
    (17.0
    )
    
    
    (42.1
    )Dispositions of premises and equipment
    
    
    1.7
    
    
    
    0.8
    
    
    
    24.9Increase in interest rate floor contracts
    
    
    (20.7
    )
    
    
    (0.2
    )
    
    
    Swap termination
    
    
    (12.7
    )
    
    
    
    
    
    
    Net cash used for investing activities
    
    $
    (968.6
    )
    
    $
    (809.7
    )
    
    $
    (596.3
    )
  68     Consolidated
Statements of Cash Flows
    
    Wilmington Trust Corporation




---



##### 



For the year ended December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004FINANCING ACTIVITIESNet increase/(decrease) in demand, savings, and interest-bearing demand deposits
    
    $
    86.9
    
    
    $
    (215.7
    )
    
    $
    158.2Net increase in certificates of deposit
    
    
    953.0
    
    
    
    633.0
    
    
    
    136.5Net (decrease)/increase in federal funds purchased and securities sold under agreements to repurchase
    
    
    (224.8
    )
    
    
    235.4
    
    
    
    299.7Net decrease in U.S. Treasury demand deposits
    
    
    (5.1
    )
    
    
    (19.0
    )
    
    
    (11.2
    )Maturity of long-term debt
    
    
    (7.5
    )
    
    
    
    
    
    
    Net increase/(decrease) in line of credit
    
    
    15.0
    
    
    
    
    
    
    
    (8.0
    )Cash dividends
    
    
    (85.1
    )
    
    
    (80.2
    )
    
    
    (75.0
    )Distributions to minority shareholders
    
    
    
    
    
    
    (0.2
    )
    
    
    (0.8
    )Proceeds from common stock issued under employment benefit plans
    
    
    31.4
    
    
    
    14.8
    
    
    
    14.5Tax benefit realized on employee exercise of stock options
    
    
    4.5
    
    
    
    1.1
    
    
    
    0.9Acquisition of treasury stock
    
    
    (29.1
    )
    
    
    (1.9
    )
    
    
    (19.9
    )Net cash provided by financing activities
    
    
    739.2
    
    
    
    567.3
    
    
    
    494.9Effect of foreign currency translation on cash
    
    
    0.4
    
    
    
    (0.3
    )
    
    
    0.2Increase/(decrease) in cash and cash equivalents
    
    
    40.3
    
    
    
    (33.6
    )
    
    
    97.9Cash and cash equivalents at beginning of year
    
    
    278.3
    
    
    
    311.9
    
    
    
    214.0Cash and cash equivalents at end of year
    
    $
    318.6
    
    
    $
    278.3
    
    
    $
    311.9SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATIONCash paid during the year for:Interest
    
    $
    282.3
    
    
    $
    167.6
    
    
    $
    90.1Taxes
    
    
    104.3
    
    
    
    80.5
    
    
    
    81.8Change in
minimum pension, SERP, and OPEB liabilities, net of taxes
    
    $
    34.4
    
    
    $
    (20.3
    )
    
    $
    2.7Liabilities were assumed in conjunction with the acquisitions ofPwC Corporate Services (Cayman) Limited; Cramer Rosenthal McGlynn, LLC;GTBA Holdings, Inc; and Wilmington Trust SP Services (London) Limited, as follows:Book value of assets acquired
    
    $
    0.3
    
    
    $
    0.1
    
    
    $
    5.3Goodwill and other intangible assets acquired
    
    
    19.2
    
    
    
    12.6
    
    
    
    116.9Common stock issued
    
    
    
    
    
    
    
    
    
    
    (48.4
    )Cash paid
    
    
    (18.9
    )
    
    
    (0.6
    )
    
    
    (71.8
    )Liabilities assumed
    
    $
    0.6
    
    
    $
    12.1
    
    
    $
    2.0
 See Notes to Consolidated Financial Statements
 2006 Annual Report
    
    69




---



##### 



NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 1. NATURE OF BUSINESS
 
   Regional Banking.
 Corporate Client Services.
 Wealth Advisory Services.
   
    
    Wilmington Trust of Pennsylvania, a
Pennsylvania-chartered bank and trust company with
five offices: one each in center city
Philadelphia, Bethlehem, Doylestown, Villanova,
and West Chester, Pennsylvania.
 
    
    Wilmington Trust FSB, a federally chartered
savings bank, through which we conduct business
from two offices in California, four offices in
Florida, two offices in Maryland, and one office
each in Georgia, Nevada, New Jersey, and New York.
  
    
    Rodney Square Management Corporation, which
oversees the Wilmington family of mutual funds.
 
    
    Wilmington Trust Investment Management, LLC
(WTIM), which sets our investment and asset
allocation policies, and selects the independent
asset managers we use in our investment consulting
services. Prior to January 2005, WTIM was known as
Balentine & Company, LLC.
 
    
    Grant Tani Barash & Altman, LLC (GTBA) and Grant,
Tani, Barash & Altman Management, Inc., the
Beverly Hills-based firm through which we offer
business management and family office services.
 
    
    Wilmington Family Office, Inc. (WFO), through
which we provide family office services.
  
    
    WT Investments, Inc. (WTI), which holds interests
in five asset management firms: our two affiliate
money managers, Cramer Rosenthal McGlynn, LLC and
Roxbury Capital Management, LLC; Clemente Capital,
Inc.; Camden Partners Holdings, LLC; and Camden
Partners Private Equity Advisors, LLC. WTI also
holds our interest in Wilmington Trust Conduit
Services, LLC, which provides conduit servicing
for special purpose vehicles.
 70     Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 




    
    Wilmington Trust (UK) Limited, through which we
conduct business outside the United States through
Wilmington Trust SP Services (London) Limited and
its subsidiaries. Prior to January 2006,
Wilmington Trust SP Services (London) Limited was
known as SPV Management Limited.
 
    
    GTBA Holdings, Inc. (GTBAH), through which we
conduct the business of GTBA, Grant, Tani, Barash
& Altman Management, Inc., and WFO.
 
    
    Wilmington Trust CI Holdings Limited, which owns
Wilmington Trust Corporate Services (Cayman)
Limited and its subsidiaries.
     2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    APB:
    
    Accounting Principles BoardARB:
    
    Accounting Research BulletinFASB:
    
    Financial Accounting Standards BoardFIN:
    
    Financial Interpretation (Number)GAAP:
    
    U.S. generally accepted accounting principlesSAB:
    
    Staff Accounting BulletinSEC:
    
    Securities and Exchange CommissionSFAS:
    
    Statement of Financial Accounting StandardsEITF:
    
    Emerging Issues Task Force
 Consolidation.
 Cash.
 Investment securities.
 2006 Annual Report
    
    
    
    71




---



##### 



Loans.
   Reserve for loan losses.
 
    
    We charge loans deemed uncollectible against the reserve.
    
    We credit recoveries, if any, to the reserve.
    
    We reassess the level of the reserve.
 
    
    We have the reserve evaluated by staff members
who do not have lending responsibilities.
       72     Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 



Premises and equipment.
 
    
    Buildings and improvements over an estimated
useful life of 39 years.
 
    
    Leasehold improvements over the lesser of the
assets useful life or the life of the lease plus
renewal options.
 
    
    Furniture and equipment over the assets
estimated useful life of three, five, or seven
years.
  Goodwill and other intangible assets.
   Other real estate owned (OREO).
 Derivative financial instruments.
     2006 Annual Report
    
    
    
    73




---



##### 



Revenue recognition.
 Stock-based compensation plans.
 Pension accounting.
 Income taxes.
   Per-share data.
 Comprehensive income.
 
 3. RECENT ACCOUNTING PRONOUNCEMENTS
 
 SFAS No. 155.
 74     Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 



SFAS No. 156.
 FIN 48.
 SFAS No. 157.
 SAB 108.
  4. AFFILIATES AND ACQUISITIONS
  Cramer Rosenthal McGlynn.
  At December 31
    
    2006
    
    
    2005
    
    
    2004WTI interest in CRM
    
    
    81.73
    %
    
    
    77.24
    %
    
    
    77.24
    %
    2006 Annual Report
    
    
    
    75




---



##### 



Roxbury Capital Management.
  At December 31
    
    2006
    
    
    2005
    
    
    2004WTI ownership of RCMs preferred profits
    
    
    30
    %
    
    
    30
    %
    
    
    30
    %WTI ownership of RCMs common interests
    
    
    41.23
    %
    
    
    41.23
    %
    
    
    41.23
    %
      Underlying equity in affiliate asset manager
transactions.
 Camden Partners.
 Grant Tani Barash & Altman.
 76     Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 



Charleston Captive Management Company.
 PwC Corporate Services (Cayman) Limited.
 Wilmington Trust Conduit Services.
 
 5. RESTRICTIONS ON CASH AND DUE FROM BANKS
 
  
 6. INVESTMENT SECURITIES
 
    2006 Annual Report
    
    
    
    77




---



##### 



Book values (amortized cost) and fair values of investment securities
 2006
    
    
    2005Amortized
    
    
    Fair
    
    
    Amortized
    
    
    FairBook and market value at December 31 (in millions)
    
    cost
    
    
    value
    
    
    cost
    
    
    valueInvestment securities available for sale:U.S. Treasury securities
    
    $
    126.6
    
    
    $
    125.2
    
    
    $
    163.2
    
    
    $
    161.1Government agencies
    
    
    810.6
    
    
    
    807.1
    
    
    
    417.5
    
    
    
    410.8Obligations of state and political subdivisions
    
    
    7.7
    
    
    
    8.1
    
    
    
    8.8
    
    
    
    9.0Mortgage-backed debt securities
    
    
    711.5
    
    
    
    689.3
    
    
    
    877.2
    
    
    
    851.9Corporate debt securities
    
    
    356.7
    
    
    
    356.8
    
    
    
    365.2
    
    
    
    366.2Foreign debt securities
    
    
    0.5
    
    
    
    0.5
    
    
    
    0.5
    
    
    
    0.5Preferred stocks
    
    
    90.4
    
    
    
    90.5
    
    
    
    91.4
    
    
    
    90.6Other marketable equity securities
    
    
    34.8
    
    
    
    35.4
    
    
    
    36.1
    
    
    
    36.2Total
    
    $
    2,138.8
    
    
    $
    2,112.9
    
    
    $
    1,959.9
    
    
    $
    1,926.3Investment securities held to maturity:Obligations of state and political subdivisions
    
    $
    1.4
    
    
    $
    1.5
    
    
    $
    2.0
    
    
    $
    2.1Mortgage-backed debt securities
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.2Other debt securities
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.3
    
    
    
    0.3Total
    
    $
    1.7
    
    
    $
    1.8
    
    
    $
    2.5
    
    
    $
    2.6
 Unrealized gains and losses of investment securities
 2006
    
    
    2005Unrealized
    
    
    Unrealized
    
    
    Unrealized
    
    
    UnrealizedUnrealized gains/(losses) at December 31 (in millions)
    
    gains
    
    
    losses
    
    
    gains
    
    
    lossesInvestment securities available for sale:U.S. Treasury securities
    
    $
    
    
    
    $
    (1.4
    )
    
    $
    
    
    
    $
    (2.1
    )Government agencies
    
    
    1.7
    
    
    
    (5.2
    )
    
    
    
    
    
    
    (6.7
    )Obligations of state and political subdivisions
    
    
    0.4
    
    
    
    
    
    
    
    0.2
    
    
    
    Mortgage-backed debt securities
    
    
    0.2
    
    
    
    (22.4
    )
    
    
    0.3
    
    
    
    (25.6
    )Corporate debt securities
    
    
    1.9
    
    
    
    (1.8
    )
    
    
    2.6
    
    
    
    (1.6
    )Preferred stocks
    
    
    1.0
    
    
    
    (0.9
    )
    
    
    0.6
    
    
    
    (1.4
    )Other marketable equity securities
    
    
    0.6
    
    
    
    
    
    
    
    0.1
    
    
    
    Total
    
    $
    5.8
    
    
    $
    (31.7
    )
    
    $
    3.8
    
    
    $
    (37.4
    )Investment securities held to maturity:Obligations of state and political subdivisions
    
    $
    0.1
    
    
    $
    
    
    
    $
    
    
    
    $
    Mortgage-backed debt securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other debt securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    0.1
    
    
    $
    
    
    
    $
    
    
    
    $
    
 Book value (amortized cost) and fair value of debt securities by contractual maturity
 Available for sale
    
    
    Held to maturityAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairDebt securities by contractual maturity at December 31, 2006 (in millions)
    
    cost
    
    
    value
    
    
    cost
    
    
    valueDue in one year or less
    
    $
    337.8
    
    
    $
    335.8
    
    
    $
    0.4
    
    
    $
    0.4Due after one year through five years
    
    
    482.1
    
    
    
    478.5
    
    
    
    1.1
    
    
    
    1.2Due after five years through 10 years
    
    
    175.2
    
    
    
    174.7
    
    
    
    
    
    
    
    Due after 10 years
    
    
    1,018.5
    
    
    
    998.0
    
    
    
    0.2
    
    
    
    0.2Total
    
    $
    2,013.6
    
    
    $
    1,987.0
    
    
    $
    1.7
    
    
    $
    1.8
  78     Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 



Temporarily
impaired securities.
 Fewer than 12 months
    
    
    12 months or more
    
    
    TotalEstimated
    
    
    
    
    
    
    Estimated
    
    
    
    
    
    
    EstimatedFair
    
    
    unrealized
    
    
    Fair
    
    
    unrealized
    
    
    Fair
    
    
    unrealizedTemporarily impaired securities (in millions)
    
    value
    
    
    losses
    
    
    value
    
    
    losses
    
    
    value
    
    
    lossesAs of December 31, 2006U.S. Treasury securities


    $
    48.9
    
    
    $
    
    
    
    $
    76.3
    
    
    $
    (1.4
    )
    
    $
    125.2
    
    
    $
    (1.4
    )Government agencies
    
    
    246.5
    
    
    
    (0.5
    )
    
    
    339.1
    
    
    
    (4.7
    )
    
    
    585.6
    
    
    
    (5.2
    )Mortgage-backed securities
    
    
    2.9
    
    
    
    
    
    
    
    662.1
    
    
    
    (22.4
    )
    
    
    665.0
    
    
    
    (22.4
    )Corporate debt securities
    
    
    72.1
    
    
    
    (0.8
    )
    
    
    58.7
    
    
    
    (1.0
    )
    
    
    130.8
    
    
    
    (1.8
    )Preferred stocks
    
    
    33.8
    
    
    
    (0.6
    )
    
    
    5.6
    
    
    
    (0.3
    )
    
    
    39.4
    
    
    
    (0.9
    )Total temporarily impaired securities
    
    $
    404.2
    
    
    $
    (1.9
    )
    
    $
    1,141.8
    
    
    $
    (29.8
    )
    
    $
    1,546.0
    
    
    $
    (31.7
    )As of December 31, 2005U.S. Treasury securities
    
    $
    87.0
    
    
    $
    (0.4
    )
    
    $
    74.1
    
    
    $
    (1.7
    )
    
    $
    161.1
    
    
    $
    (2.1
    )Government agencies
    
    
    324.6
    
    
    
    (5.0
    )
    
    
    71.2
    
    
    
    (1.7
    )
    
    
    395.8
    
    
    
    (6.7
    )Mortgage-backed securities
    
    
    359.6
    
    
    
    (7.4
    )
    
    
    477.1
    
    
    
    (18.2
    )
    
    
    836.7
    
    
    
    (25.6
    )Corporate debt securities
    
    
    68.5
    
    
    
    (0.9
    )
    
    
    44.0
    
    
    
    (0.7
    )
    
    
    112.5
    
    
    
    (1.6
    )Preferred stocks
    
    
    49.3
    
    
    
    (1.3
    )
    
    
    0.9
    
    
    
    (0.1
    )
    
    
    50.2
    
    
    
    (1.4
    )Total temporarily impaired securities
    
    $
    889.0
    
    
    $
    (15.0
    )
    
    $
    667.3
    
    
    $
    (22.4
    )
    
    $
    1,556.3
    
    
    $
    (37.4
    )
    Sale and write-down of investment securities available for sale
 (In millions)
    
    2006
    
    
    2005
    
    
    2004Proceeds
    
    $
    28.4
    
    
    $
    28.4
    
    
    $
    67.4Gross gains realized
    
    $
    0.4
    
    
    $
    0.7
    
    
    $
    0.9Gross losses
    
    $
    (0.2
    )
    
    $
    
    
    
    $
    1.6
 Called securities
 (In millions)
    
    2006
    
    
    2005
    
    
    2004Gross gains
    
    $
    
    
    
    $
    0.1
    
    
    $
    0.2Gross losses
    
    $
    
    
    
    $
    
    
    
    $
    
 2006 Annual Report
    
    
    
    79




---



##### 



Pledged
securities.
  7. LOAN CONCENTRATIONS
  Loan concentrations by percentage of total outstanding loans
 For the year ended December 31
    
    2006
    
    
    2005Commercial, financial, and agricultural
    
    
    31
    %
    
    
    34
    %Commercial
real estate/construction
    
    
    20
    
    
    
    16Commercial mortgage
    
    
    16
    
    
    
    17Residential mortgage
    
    
    7
    
    
    
    6Consumer
    
    
    19
    
    
    
    19Secured with liquid collateral
    
    
    7
    
    
    
    8
    8. RESERVE FOR LOAN LOSSES
  Changes in the reserve for loan losses
 (In millions)
    
    2006
    
    
    2005
    
    
    2004Reserve for loan losses at January 1
    
    $
    91.4
    
    
    $
    89.7
    
    
    $
    89.9Charge-offs
    
    
    (24.6
    )
    
    
    (17.2
    )
    
    
    (21.1
    )Recoveries
    
    
    6.1
    
    
    
    7.1
    
    
    
    5.3Net charge-offs
    
    
    (18.5
    )
    
    
    (10.1
    )
    
    
    (15.8
    )Provision charged to operations
    
    
    21.3
    
    
    
    11.8
    
    
    
    15.6Reserve for loan losses at December 31
    
    $
    94.2
    
    
    $
    91.4
    
    
    $
    89.7
 Impaired loans
  For the year ended December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004Average recorded investment in
impaired loans
    
    $
    32.8
    
    
    $
    47.3
    
    
    $
    45.2Recorded investment in impaired loans
at year-end subject to a reserve
for loan losses:2006 reserve: $  4.2
    
    $
    20.52005 reserve: $  9.8
    
    
    
    
    
    $
    37.42004 reserve: $12.5
    
    
    
    
    
    
    
    
    
    $
    55.7Recorded investment in impaired loans
at year-end requiring no reserve
for loan losses
    
    $
    5.0
    
    
    $
    2.3
    
    
    $
    1.4Recorded investment in impaired loans
at year-end
    
    $
    26.9
    
    
    $
    39.7
    
    
    $
    57.1Recorded investment in impaired loans
at year-end classified as nonaccruing
    
    $
    26.9
    
    
    $
    39.7
    
    
    $
    56.8Interest income recognized
    
    $
    1.2
    
    
    $
    1.3
    
    
    $
    2.2Interest income recognized using the cash
basis method of income recognition
    
    $
    1.2
    
    
    $
    1.3
    
    
    $
    2.2
 Effect of nonaccruing loans on interest income
 (In millions)
    
    2006
    
    
    2005
    
    
    2004Nonaccruing loans at December 31
    
    $
    31.0
    
    
    $
    44.0
    
    
    $
    61.6Interest income that would have been
recognized under original terms
    
    $
    2.5
    
    
    $
    3.4
    
    
    $
    3.7Interest actually received
    
    $
    1.3
    
    
    $
    1.5
    
    
    $
    2.4
  80      Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 



9. PREMISES AND EQUIPMENT
  Value of premises and equipment
  For the year ended December 31 (in millions)
    
    2006
    
    
    2005Land
    
    $
    10.5
    
    
    $
    10.2Buildings and improvements
    
    
    160.0
    
    
    
    154.5Furniture and equipment
    
    
    183.0
    
    
    
    172.3Total
    
    
    353.5
    
    
    
    337.0Accumulated depreciation
    
    
    (203.2
    )
    
    
    (189.4
    )Premises and equipment, net
    
    $
    150.3
    
    
    $
    147.6
   10. GOODWILL AND OTHER INTANGIBLE ASSETS
   Goodwill and other intangible assets
 2006
    
    
    2005Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    Netcarrying
    
    
    Accumulated
    
    
    carrying
    
    
    carrying
    
    
    Accumulated
    
    
    carryingFor the year ended December 31 (in millions)
    
    amount
    
    
    amortization
    
    
    amount
    
    
    amount
    
    
    amortization
    
    
    amountGoodwill (nonamortizing)
    
    $
    321.2
    
    
    $
    29.8
    
    
    $
    291.4
    
    
    $
    378.1
    
    
    $
    29.8
    
    
    $
    348.3Other intangibles:Amortizing:Mortgage servicing rights
    
    $
    8.3
    
    
    $
    6.4
    
    
    $
    1.9
    
    
    $
    8.0
    
    
    $
    5.6
    
    
    $
    2.4Client lists
    
    
    49.3
    
    
    
    16.5
    
    
    
    32.8
    
    
    
    43.0
    
    
    
    12.0
    
    
    
    31.0Acquisition costs
    
    
    1.7
    
    
    
    1.7
    
    
    
    
    
    
    
    1.7
    
    
    
    1.7
    
    
    
    Other intangibles
    
    
    1.8
    
    
    
    1.1
    
    
    
    0.7
    
    
    
    1.6
    
    
    
    1.0
    
    
    
    0.6Nonamortizing:Pension and SERP intangibles
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.2
    
    
    
    
    
    
    
    2.2Total other intangibles
    
    $
    61.1
    
    
    $
    25.7
    
    
    $
    35.4
    
    
    $
    56.5
    
    
    $
    20.3
    
    
    $
    36.2
 Amortization expense of other intangible assets
 For the year ended December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004Amortization expense of other intangible assets
    
    $
    5.4
    
    
    $
    5.3
    
    
    $
    3.9
 Future amortization expense of other intangible assets
 For the year ended December 31 (in millions)
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010
    
    
    2011Estimated annual amortization expense of other intangibles
    
    $
    5.2
    
    
    $
    4.9
    
    
    $
    4.2
    
    
    $
    3.4
    
    
    $
    3.0
 2006 Annual Report
    
    
    
    81




---



##### 



Carrying amount of goodwill by business segment
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    Money(In millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalBalance as of January 1, 2006
    
    $
    3.8
    
    
    $
    86.7
    
    
    $
    19.2
    
    
    $
    238.6
    
    
    $
    348.3Goodwill from acquisitions
    
    
    
    
    
    
    2.2
    
    
    
    1.3
    
    
    
    10.0
    
    
    
    13.5Impairment write-down
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (72.3
    )
    
    
    (72.3
    )Sale of affiliate interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3
    )
    
    
    (0.3
    )Increase in carrying value due to foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    2.2
    
    
    
    
    
    
    
    2.2Balance as of December 31, 2006
    
    $
    3.8
    
    
    $
    88.9
    
    
    $
    22.7
    
    
    $
    176.0
    
    
    $
    291.4Balance as of January 1, 2005
    
    $
    3.8
    
    
    $
    84.3
    
    
    $
    10.3
    
    
    $
    238.6
    
    
    $
    337.0Goodwill from acquisitions
    
    
    
    
    
    
    2.4
    
    
    
    10.2
    
    
    
    
    
    
    
    12.6Decrease in carrying value due to foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    (1.3
    )
    
    
    
    
    
    
    (1.3
    )Balance as of December 31, 2005
    
    $
    3.8
    
    
    $
    86.7
    
    
    $
    19.2
    
    
    $
    238.6
    
    
    $
    348.3
  
    
    $10.0 million recorded under Affiliate Money Managers
in connection with an increase in WTIs equity interest
in CRM.
 
    

$1.3 million recorded under Corporate Client
Services in connection with the acquisition of PwC
Corporate Services (Cayman) Limited.
 
    
    A $2.2 million contingent payment recorded under
Wealth Advisory Services in connection with the
acquisition of Grant Tani Barash & Altman, LLC.
  
    
    $8.4 million recorded under Corporate Client Services
in connection with the acquisition of Wilmington Trust
SP
Services (London) Limited (formerly known as SPV
Management Limited).
 
    
    $1.8 million recorded under Corporate Client Services
in
connection with the acquisition of Charleston Captive
Management Company.
 
    
    $2.4 million recorded under Wealth Advisory Services
in connection with the acquisition of Wilmington Trust
Investment Management, LLC (WTIM) (formerly known as
Balentine & Company, LLC).
 Changes
in other intangible assets
 2006
    
    
    2005Weighted
    
    
    
    
    
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    
    
    
    
    
    averageamortization
    
    
    
    
    
    
    
    
    
    
    amortizationAmount
    
    
    Residual
    
    
    period
    
    
    Amount
    
    
    Residual
    
    
    periodFor the year ended December 31 (in millions)
    
    assigned
    
    
    value
    
    
    in years
    
    
    assigned
    
    
    value
    
    
    in yearsMortgage servicing rights
    
    $
    0.3
    
    
    
    
    
    
    
    8
    
    
    $
    0.9
    
    
    
    
    
    
    
    8Client lists
    
    
    6.0
    
    
    
    
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    Increase/(decrease) in carrying value of client lists due to
foreign currency translation adjustments
    
    
    0.3
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )
    
    
    
    
    
    
    Other intangibles
    
    
    0.2
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    Pension and SERP intangibles
    
    
    (2.3
    )
    
    
    
    
    
    
    
    
    
    
    (3.0
    )
    
    
    
    
    
    
    Changes
in other intangible assets
    
    $
    4.5
    
    
    
    
    
    
    
    
    
    
    $
    (2.3
    )
    
    
    
  
    
    $1.3 million recorded under Corporate Client Services in connection with the acquisition of PwC
Corporate Services (Cayman) Limited.
    
    $1.2 million recorded under Wealth Advisory Services in
connection with the purchase of a client list during the formation of Wilmington Family Office,
Inc.
 
    
    $3.5 million recorded under Affiliate Money Managers in connection with an increase in WTIs
equity interest in CRM.
 82      Notes to Consolidated Financial Statements
    
    
    
    Wilmington Trust Corporation




---



##### 



11. BORROWINGS AND SECURITIES PURCHASED
UNDER AGREEMENTS TO RESELL
   As of and for the year endedDecember 31 (in millions)
    
    2006
    
    
    2005Securities purchased under agreements to resell:Highest amount outstanding at any month end
    
    $
    66.7
    
    
    $
    64.0Daily average amount outstanding
    
    $
    6.4
    
    
    $
    3.9Weighted average interest rate for
instruments outstanding
    
    
    4.23
    %
    
    
    2.84
    %Securities sold under agreements to repurchase:Highest amount outstanding at any month end
    
    $
    906.7
    
    
    $
    575.4Daily average amount outstanding
    
    $
    634.6
    
    
    $
    452.6Weighted average interest rate for
instruments outstanding
    
    
    4.62
    %
    
    
    2.87
    %
 Lines
of Credit.
 Long-Term
Debt.
 Federal Home Loan Bank advances
   FixedIn 2006
    
    In 2005
    
    
    Term
    
    interest rate

    
    Maturity date$     28.0
    
    $
    28.0
    
    
    15 years
    
    
    6.55
    %
    
    October 4, 2010$       
    
    $
    7.5
    
    
    10 years
    
    
    6.41
    %
    
    November 6, 2006
  Subordinated long-term debt
   Semiannual
    
    
    FixedIssue
    
    Issue
    
    
    
    
    
    
    payment
    
    
    paymentdate
    
    amount
    
    
    Term
    
    
    dates
    
    
    rates
    
    
    MaturityMay  4, 1998
    
    $
    125.0
    
    
    10 years
    
    May 1 and  November 1
    
    
    6.625
    %
    
    May 1, 2008April 4, 2003
    
    $
    250.0
    
    
    10 years
    
    April 15 and October 15
    
    
    4.875
    %
    
    April 15, 2013
  2006 Annual Report
    
    
    83




---



##### 



12. COMMITMENTS AND CONTINGENCIES
  Lease commitments.
 Minimum payments on noncancelable leases for real property
 Gross
    
    
    
    Sublease
    
    
    
    Net(In millions)
    
    
    amount
    
    
    
    amount
    
    
    
    amount2007
    
    $
    11.3
    
    
    $
    0.6
    
    
    $
    10.72008
    
    $
    10.4
    
    
    $
    0.5
    
    
    $
    9.92009
    
    $
    9.3
    
    
    $
    0.2
    
    
    $
    9.12010
    
    $
    7.8
    
    
    $
    0.1
    
    
    $
    7.72011
    
    $
    6.3
    
    
    $
    
    
    
    $
    6.32012 and thereafter
    
    $
    25.8
    
    
    $
    
    
    
    $
    25.8
 Off-balance-sheet commitments.
 Commitments to extend credit and letters of credit.
  Loan guaranties.
 Off-balance-sheet items
 2006
    
    
    2005For the year ended December 31
    
    Contractual
    
    
    Fair
    
    
    Contractual
    
    
    Fair(in millions)
    
    amount
    
    
    value
    
    
    amount
    
    
    valueUnfunded commitments
to extend credit
    
    $
    3,326.3
    
    
    $
    12.7
    
    
    $
    3,242.9
    
    
    $
    12.4Standby and commercial
letters of credit
    
    $
    471.7
    
    
    $
    3.3
    
    
    $
    382.2
    
    
    $
    3.8CRM loan guaranty
    
    $
    2.5
    
    
    $
    
    
    
    $
    2.3
    
    
    $
    
 Legal proceedings.
  13. FAIR VALUE OF FINANCIAL INSTRUMENTS
   84      Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Carrying values and estimated fair values
 2006
    
    
    2005For the year ended December 31
    
    Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair(in millions)
    
    value
    
    
    value
    
    
    value
    
    
    valueFinancial assets:Cash and due
from banks
    
    $
    249.7
    
    
    $
    249.7
    
    
    $
    264.0
    
    
    $
    264.0Short-term investments
    
    $
    68.9
    
    
    $
    68.9
    
    
    $
    14.3
    
    
    $
    14.3Investment securities
    
    $
    2,114.6
    
    
    $
    2,114.7
    
    
    $
    1,928.8
    
    
    $
    1,928.9Loans, net of reserves
    
    $
    8,000.7
    
    
    $
    7,933.7
    
    
    $
    7,306.3
    
    
    $
    7,228.3Interest rate
swap contracts
    
    $
    7.6
    
    
    $
    7.6
    
    
    $
    7.0
    
    
    $
    7.0Interest rate
floor contracts
    
    $
    16.6
    
    
    $
    16.6
    
    
    $
    0.2
    
    
    $
    0.2Accrued interest
receivable
    
    $
    74.0
    
    
    $
    74.0
    
    
    $
    54.5
    
    
    $
    54.5Financial liabilities:Deposits
    
    $
    8,329.1
    
    
    $
    8,413.3
    
    
    $
    7,289.2
    
    
    $
    7,327.6Short-term
borrowings
    
    $
    1,158.8
    
    
    $
    1,158.8
    
    
    $
    1,373.7
    
    
    $
    1,373.7Interest rate
swap contracts
    
    $
    10.1
    
    
    $
    10.1
    
    
    $
    16.4
    
    
    $
    16.4Accrued interest
payable
    
    $
    75.2
    
    
    $
    75.2
    
    
    $
    45.7
    
    
    $
    45.7Long-term debt
    
    $
    388.5
    
    
    $
    378.8
    
    
    $
    400.4
    
    
    $
    402.1
   Cash
and due from banks; federal funds sold and
securities purchased under agreements to resell;
accrued interest receivable; federal funds purchased
and securities sold under agreements to repurchase;
other short-term borrowings; and accrued interest
payable.
 Investment securities.
 Loans.
 Deposits.
   Scheduled maturities
 Time deposits in denominations of $100,000 or more2007
    
    $3,502.2 million2008
    
    $      6.8 million2009
    
    $      4.3 million2010
    
    $      2.0 million2011
    
    $      8.1 million2012 and thereafter
    
    $      5.1 million
 Long-term debt.
 Derivative financial instruments.
 2006 Annual Report
    
    
    85




---



##### 



Commitments to extend credit and letters of
credit.
  14. DERIVATIVE FINANCIAL INSTRUMENTS
   Interest rate swaps.
   
    
    $444.5 million of swaps for clients that
exchanged floating rates for fixed rates.
    
    $444.5 million, the mirror of the above
amount, of
swaps that exchanged fixed rates for floating rates,
which we made with other financial institutions.
    
    $125.0 million of swaps with other financial
institutions that were recorded as a fair value hedge
against the 10-year subordinated long-term debt we
issued on May 4, 1998. We issued this debt at a fixed
rate of 6.625%. On December 4, 2003, we swapped the
fixed rate payments on this debt for floating rate
payments based on the six-month Libor, which was
5.36% at December 31, 2006. The interest rates on
these swaps reset semiannually. Semiannual payments
coincide with the subordinated debt payments.
  Interest rate floors.
   Interest rate floor expense
 For the year ended December 31 (in
millions)
    
    2006
    
    
    2005
    
    
    2004Interest rate floor contract expense
    
    $
    0.2
    
    
    $
    
    
    
    $
    
  86      Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



15. CAPITAL REQUIREMENTS
  Federal capital adequacy requirements.
 U.S. regulatory capital ratios
 Adequatelycapitalized
    
    Well-capitalizedActual
    
    minimum
    
    minimumAmount
    
    Ratio
    
    Amount
    
    Ratio(Dollars in millions)
    
    Amount
    
    Ratio
    

3
    
    3
    
    3
    
    3As of December 31, 2006Total capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    1,158.7
    
    
    
    12.10
    %
    
    $
    765.8
    
    
    
    8.00
    %
    
    $
    957.3
    
    
    
    10.00
    %Wilmington Trust Company
    
    $
    968.9
    
    
    
    10.93
    %
    
    $
    709.3
    
    
    
    8.00
    %
    
    $
    886.6
    
    
    
    10.00
    %Wilmington Trust of Pennsylvania
    
    $
    104.8
    
    
    
    13.87
    %
    
    $
    60.4
    
    
    
    8.00
    %
    
    $
    75.6
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    789.7
    
    
    
    8.25
    %
    
    $
    382.9
    
    
    
    4.00
    %
    
    $
    574.4
    
    
    
    6.00
    %Wilmington Trust Company
    
    $
    887.6
    
    
    
    10.01
    %
    
    $
    354.6
    
    
    
    4.00
    %
    
    $
    532.0
    
    
    
    6.00
    %Wilmington Trust of Pennsylvania
    
    $
    98.1
    
    
    
    12.99
    %
    
    $
    30.2
    
    
    
    4.00
    %
    
    $
    45.3
    
    
    
    6.00
    %Tier 1 capital (to average assets):Wilmington Trust Corporation
    
    $
    789.7
    
    
    
    7.39
    %
    
    $
    427.2
    
    
    
    4.00
    %
    
    $
    534.0
    
    
    
    5.00
    %Wilmington Trust Company
    
    $
    887.6
    
    
    
    8.95
    %
    
    $
    396.7
    
    
    
    4.00
    %
    
    $
    495.9
    
    
    
    5.00
    %Wilmington Trust of Pennsylvania
    
    $
    98.1
    
    
    
    8.74
    %
    
    $
    44.9
    
    
    
    4.00
    %
    
    $
    56.1
    
    
    
    5.00
    %As of December 31, 2005Total capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    1,048.6
    
    
    
    11.84
    %
    
    $
    708.6
    
    
    
    8.00
    %
    
    $
    885.7
    
    
    
    10.00
    %Wilmington Trust Company
    
    $
    846.8
    
    
    
    10.35
    %
    
    $
    654.8
    
    
    
    8.00
    %
    
    $
    818.5
    
    
    
    10.00
    %Wilmington Trust of Pennsylvania
    
    $
    94.9
    
    
    
    14.08
    %
    
    $
    53.9
    
    
    
    8.00
    %
    
    $
    67.4
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    657.9
    
    
    
    7.43
    %
    
    $
    354.3
    
    
    
    4.00
    %
    
    $
    531.4
    
    
    
    6.00
    %Wilmington Trust Company
    
    $
    769.0
    
    
    
    9.40
    %
    
    $
    327.4
    
    
    
    4.00
    %
    
    $
    491.1
    
    
    
    6.00
    %Wilmington Trust of Pennsylvania
    
    $
    87.7
    
    
    
    13.01
    %
    
    $
    27.0
    
    
    
    4.00
    %
    
    $
    40.4
    
    
    
    6.00
    %Tier 1 capital (to average assets):Wilmington Trust Corporation
    
    $
    657.9
    
    
    
    6.69
    %
    
    $
    393.5
    
    
    
    4.00
    %
    
    $
    491.9
    
    
    
    5.00
    %Wilmington Trust Company
    
    $
    769.0
    
    
    
    8.45
    %
    
    $
    364.2
    
    
    
    4.00
    %
    
    $
    455.2
    
    
    
    5.00
    %Wilmington Trust of Pennsylvania
    
    $
    87.7
    
    
    
    9.32
    %
    
    $
    37.6
    
    
    
    4.00
    %
    
    $
    47.0
    
    
    
    5.00
    %
 2006      Annual Report
    
    87




---



##### 



Capital requirements for dividend payments.
 Other capital adequacy requirements.
  16. RELATED PARTY TRANSACTIONS
   Loans to related parties
 At December 31 (in millions)
    
    2006
    
    2005Total loans to related parties
    
    $
    44.0
    
    
    $
    54.4Loan additions
    
    $
    37.3
    
    
    $
    52.1Loan payments received
    
    $
    47.7
    
    
    $
    21.3
   17. PENSION AND OTHER POSTRETIREMENT BENEFITS
    88     Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Excess/(shortfall) of plan assets compared to plan obligations
 PostretirementPension benefits
    
    SERP benefits
    
    benefitsAt December 31 (in millions)
    
    
    2006
    
    
    
    2005
    
    
    
    2006
    
    
    
    2005
    
    
    
    2006
    
    
    
    2005Fair value of plan assets
    
    $
    197.5
    
    
    $
    174.0
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Projected benefit obligation
    
    
    186.6
    
    
    
    174.9
    
    
    
    22.4
    
    
    
    22.0
    
    
    
    
    
    
    
    Funded status (difference)
    
    $
    10.9
    
    
    $
    (0.9
    )
    
    $
    (22.4
    )
    
    $
    (22.0
    )
    
    $
    
    
    
    $
    Fair value of plan assets
    
    $
    197.5
    
    
    $
    174.0
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Accumulated benefit obligation
    
    
    165.0
    
    
    
    157.3
    
    
    
    18.7
    
    
    
    17.2
    
    
    
    41.0
    
    
    
    37.8Funded status (difference)
    
    $
    32.5
    
    
    $
    16.7
    
    
    $
    (18.7
    )
    
    $
    (17.2
    )
    
    $
    (41.0
    )
    
    $
    (37.8
    )
 Weighted average assumptions used to determine benefit obligations
 PostretirementPension benefits
    
    SERP benefits
    
    benefitsAt December 31 (in millions)
    
    2006
    
    2005
    
    2006
    
    2005
    
    2006
    
    2005Discount rate
    
    
    6.10
    %
    
    
    6.00
    %
    
    
    6.00
    %
    
    
    5.90
    %
    
    
    5.90
    %
    
    
    5.90
    %Rate of compensation increase
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    
    
    
    
    
 Changes in the net projected benefit obligation and plan assets
 PostretirementPension benefits
    
    SERP benefits
    
    benefitsAt December 31 (in millions)
    
    
    2006
    
    
    
    2005
    
    
    
    2006
    
    
    
    2005
    
    
    
    2006
    
    
    
    2005Net projected benefit obligation at start of year
    
    $
    174.9
    
    
    $
    163.1
    
    
    $
    22.0
    
    
    $
    21.4
    
    
    $
    37.8
    
    
    $
    40.0Service cost
    
    
    8.3
    
    
    
    7.8
    
    
    
    0.8
    
    
    
    0.7
    
    
    
    1.2
    
    
    
    0.7Interest cost
    
    
    10.3
    
    
    
    9.6
    
    
    
    1.3
    
    
    
    1.3
    
    
    
    2.2
    
    
    
    2.4Plan participants contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    0.6Actuarial loss/(gain)
    
    
    (0.2
    )
    
    
    0.6
    
    
    
    (1.1
    )
    
    
    (0.8
    )
    
    
    2.2
    
    
    
    3.9Gross benefits paid
    
    
    (6.7
    )
    
    
    (6.2
    )
    
    
    (0.6
    )
    
    
    (0.6
    )
    
    
    (2.8
    )
    
    
    (4.9
    )Change in plan provisions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4.9
    )Net projected benefit obligation at end of year
    
    $
    186.6
    
    
    $
    174.9
    
    
    $
    22.4
    
    
    $
    22.0
    
    
    $
    41.0
    
    
    $
    37.8Fair value of plan assets at start of year
    
    $
    174.0
    
    
    $
    134.1
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Actual return on plan assets
    
    
    15.2
    
    
    
    21.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employer contributions
    
    
    15.0
    
    
    
    25.0
    
    
    
    0.6
    
    
    
    0.6
    
    
    
    2.4
    
    
    
    4.4Plan participants contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    0.5Gross benefits paid
    
    
    (6.7
    )
    
    
    (6.2
    )
    
    
    (0.6
    )
    
    
    (0.6
    )
    
    
    (2.8
    )
    
    
    (4.9
    )Fair value of plan assets at end of year
    
    $
    197.5
    
    
    $
    174.0
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Funded status at end of year
    
    $
    10.9
    
    
    $
    (0.9
    )
    
    $
    (22.4
    )
    
    $
    (22.0
    )
    
    $
    (41.0
    )
    
    $
    (37.8
    )
 Net amounts recognized in our Consolidated Statements of Condition
 PostretirementPension benefits
    
    SERP benefits
    
    benefitsAt December 31 (in millions)
    
    2006
    
    2005
    
    2006
    
    2005
    
    2006
    
    2005Funded status
    
    $
    10.9
    
    
    $
    (0.9
    )
    
    $
    (22.4
    )
    
    $
    (22.0
    )
    
    $
    (41.0
    )
    
    $
    (37.8
    )Unrecognized net actuarial loss/(gain)
    
    
    
    
    
    
    39.2
    
    
    
    
    
    
    
    5.9
    
    
    
    
    
    
    
    14.7Unrecognized net transition obligation/(asset)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    Unrecognized prior service cost
    
    
    
    
    
    
    1.7
    
    
    
    
    
    
    
    2.2
    
    
    
    
    
    
    
    (4.9
    )Contributions from measurement date to end of year
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    Net amount recognized at end of year
    
    $
    10.9
    
    
    $
    40.0
    
    
    $
    (22.3
    )
    
    $
    (13.7
    )
    
    $
    (41.0
    )
    
    $
    (28.0
    )
 2006 Annual Report
    
    

    
    89




---



##### 



Components of the net amount recognized in our Consolidated Statements of Condition
 PostretirementPension benefits
    
    SERP benefits
    
    benefitsAt December 31 (in millions)
    
    2006
    
    2005
    
    2006
    
    2005
    
    2006
    
    2005(Accrued)/prepaid benefit cost
    
    $
    47.7
    
    
    $
    40.0
    
    
    $
    
    
    
    $
    
    
    
    $
    (29.4
    )
    
    $
    (28.0
    )Accrued benefit liability
    
    
    
    
    
    
    
    
    
    
    (18.7
    )
    
    
    (17.2
    )
    
    
    
    
    
    
    Intangible assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.3
    
    
    
    
    
    
    
    Net liability recognized
    
    
    47.7
    
    
    
    40.0
    
    
    
    (18.7
    )
    
    
    (14.9
    )
    
    
    (29.4
    )
    
    
    (28.0
    )Accumulated other comprehensive income
    
    
    
    
    
    
    
    
    
    
    (3.7
    )
    
    
    1.1
    
    
    
    (11.6
    )
    
    
    Contributions from measurement date to end of year
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    Net amount recognized at end of year
    
    $
    47.7
    
    
    $
    40.0
    
    
    $
    (22.3
    )
    
    $
    (13.7
    )
    
    $
    (41.0
    )
    
    $
    (28.0
    )Change in minimum liability included in other comprehensive income
    
    $
    36.8
    
    
    $
    (32.8
    )
    
    $
    5.6
    
    
    $
    (0.9
    )
    
    $
    11.7
    
    
    $
    
  Changes in funded status and additional minimum liabilities
 December 31, 2006
    
    
    Additional
    
    
    SFAS No. 158
    
    
    December 31, 2006Prior to adoption
    
    
    minimum liability
    
    
    adoption
    
    
    Post adoption(In millions)
    
    of SFAS No. 158
    
    
    adjustment
    
    
    adjustment
    
    
    of SFAS No. 158Intangible assets
    
    $
    2.3
    
    
    $
    (2.3
    )
    
    $
    
    
    
    $
    Prepaid pension cost
    
    $
    47.7
    
    
    $
    
    
    
    $
    (36.8
    )
    
    $
    10.9Other assets
    
    $
    0.4
    
    
    $
    (0.4
    )
    
    $
    18.9
    
    
    $
    18.9SERP liability
    
    $
    19.9
    
    
    $
    (3.3
    )
    
    $
    5.7
    
    
    $
    22.3Postretirement liability
    
    $
    29.4
    
    
    $
    
    
    
    $
    11.6
    
    
    $
    41.0Accumulated other comprehensive income, net of taxes
    
    $
    (0.7
    )
    
    $
    0.7
    
    
    $
    35.2
    
    
    $
    35.2
 Net periodic benefit expense we expect to record in 2007
 Component of accumulated other
comprehensive income (in millions)
    
    Pension plan
    
    
    SERP plan
    
    
    Postretirement planExpected 2007 amortization of transition obligation
    
    $
    
    
    
    $
    
    
    
    $
    Expected 2007 amortization of prior service cost
    
    $
    0.8
    
    
    $
    0.3
    
    
    $
    (0.5
    )Expected 2007 amortization of net loss
    
    $
    1.8
    
    
    $
    0.2
    
    
    $
    0.9
 90      Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Weighted average assumptions used to determine the net periodic benefit expense of the plans
 PostretirementPension benefits
    
    
    SERP benefits
    
    
    benefitsAt December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004Weighted average assumptions used to determine
net periodic benefit expense:Discount rate
    
    
    6.00
    %
    
    
    6.00
    %
    
    
    6.00
    %
    
    
    5.90
    %
    
    
    6.00
    %
    
    
    6.00
    %
    
    
    5.90
    %
    
    
    6.00
    %
    
    
    6.25
    %Expected return on plan assets
    
    
    8.50
    %
    
    
    8.50
    %
    
    
    8.50
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Rate of compensation increase
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    
    
    
    
    
    
    
    
    Components of net periodic benefit cost:Service cost
    
    $
    8.3
    
    
    $
    7.8
    
    
    $
    6.5
    
    
    $
    0.8
    
    
    $
    0.8
    
    
    $
    0.7
    
    
    $
    1.2
    
    
    $
    0.8
    
    
    $
    0.7Interest cost
    
    
    10.3
    
    
    
    9.6
    
    
    
    8.8
    
    
    
    1.3
    
    
    
    1.3
    
    
    
    1.2
    
    
    
    2.2
    
    
    
    2.4
    
    
    
    2.3Expected return on plan assets
    
    
    (14.1
    )
    
    
    (12.3
    )
    
    
    (11.3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of transition obligation/(asset)
    
    
    
    
    
    
    
    
    
    
    (0.9
    )
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    0.8
    
    
    
    0.8
    
    
    
    0.8
    
    
    
    0.3
    
    
    
    0.3
    
    
    
    0.3
    
    
    
    (0.5
    )
    
    
    
    
    
    
    Recognized actuarial (gain)/loss
    
    
    2.0
    
    
    
    1.6
    
    
    
    0.8
    
    
    
    0.3
    
    
    
    0.4
    
    
    
    0.5
    
    
    
    0.9
    
    
    
    0.6
    
    
    
    0.4Difference in actual expense and estimate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    Net periodic benefit cost
    
    $
    7.3
    
    
    $
    7.5
    
    
    $
    4.7
    
    
    $
    2.8
    
    
    $
    2.9
    
    
    $
    2.8
    
    
    $
    3.8
    
    
    $
    4.0
    
    
    $
    3.4
 Plan contributions expected in 2007
 Pension
    
    
    SERP
    
    
    Postretirement(In millions)
    
    benefits
    
    
    benefits
    
    
    benefitsExpected employer contributions
    
    $
    
    
    
    $
    0.6
    
    
    $
    2.7Expected employee contributions
    
    $
    
    
    
    $
    
    
    
    $
    0.6
  Estimated future benefit payments based upon current assumptions
 Pension
    
    
    SERP
    
    
    Postretirement(In millions)
    
    benefits
    
    
    benefits
    
    
    benefits2007
    
    $
    7.0
    
    
    $
    0.6
    
    
    $
    2.72008
    
    $
    7.2
    
    
    $
    0.7
    
    
    $
    2.82009
    
    $
    7.6
    
    
    $
    0.7
    
    
    $
    2.82010
    
    $
    8.2
    
    
    $
    0.8
    
    
    $
    2.92011
    
    $
    8.7
    
    
    $
    1.0
    
    
    $
    3.020122016
    
    $
    59.0
    
    
    $
    8.1
    
    
    $
    15.8
 Pension plan.
   
    
    Grow assets at an average annual rate that
exceeds the actuarially assumed expected rate of
return in order to keep pace with future
obligations.
    
    Provide for the most stability possible to meet
the target growth rate with a medium level of
risk.
    
    Show positive returns after inflation.
    
    Provide liquidity so that we can make benefit
payments to plan participants who have retired.
 2006 Annual Report
    
    91




---



##### 




    
    Returns that exceed, and volatility that is equal
to, or lower than those of an index that blends
70% of the Standard and Poors 500 Index and 30%
of the Lehman Government/Credit Index.
    
    Returns that exceed those of the relevant market
index for each asset class in which we invest plan
assets.
   Targeted vs. actual asset allocation
 Target allocation
    
    ActualAsset allocation
    
    (weighted average)
    
    allocationat September 30
    
    2006
    
    
    2006
    
    
    2005Equity securities
    
    
    38
    %
    
    
    36
    %
    
    
    40
    %Debt securities
    
    
    30
    %
    
    
    35
    %
    
    
    23
    %Real estate
    
    
    11
    %
    
    
    11
    %
    
    
    17
    %Other
    
    
    21
    %
    
    
    18
    %
    
    
    20
    %Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  Supplemental executive retirement plan (SERP).
 Postretirement health care and life insurance benefits.
 Assumptions used to calculate the accumulated postretirement benefit obligation
 At December 31
    
    2006
    
    
    2005Health care cost trend rate assumed
    
    
    9
    %
    
    
    9
    %Rate to which cost trend rate is assumed to decline
(the ultimate trend rate)
    
    
    6
    %
    
    
    6
    %Year that rate reaches the ultimate trend rate
    
    
    2010
    
    
    
    2009
 Assumptions used to calculate the net periodic benefit expense
 For the year ended December 31
    
    2006
    
    
    2005Health care cost trend rate assumed
    
    
    9
    %
    
    
    8
    %Rate to which cost trend rate is assumed to decline
(the ultimate trend rate)
    
    
    6
    %
    
    
    5
    %Year that rate reaches the ultimate trend rate
    
    
    2009
    
    
    
    2008
 Effect on postretirement health care
benefits of 1% change in the assumed health
care trend rate
 1%
    
    
    1%(In millions)
    
    increase
    
    
    decreaseEffect on total service and interest components of
net periodic health care benefit expense
    
    $
    0.4
    
    
    $
    (0.3
    )Effect on accumulated postretirement
benefit obligation
    
    $
    3.6
    
    
    $
    (3.0
    )
  92

    Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Thrift savings plan.
  18. STOCK-BASED COMPENSATION PLANS
   
    
    Long-term stock-based incentive plans.Under our
2005 long-term incentive plan, we may grant
incentive stock options, nonstatutory stock
options, restricted stock, and other stock-based
awards of up to 4 million shares of common stock
to officers, other key staff members, directors,
and advisory board members. Under this plan and
its predecessors, the exercise price of each
option equals the last sale price of our common
stock on the date of the grant. Options are subject
to a vesting period, which is normally three years
(or such other term as our Compensation Committee
or Select Committee may determine). Options have a
maximum term of 10 years.
    
    Executive incentive plan.Our 2004 executive
incentive plan, which was approved by shareholders
on April 15, 2004, authorizes cash bonuses and
issuances of up to 300,000 shares of our common
stock with a par value of $1.00 per share. The
stock awards we have granted under this plan are
for restricted stock and are subject to vesting at
the sole discretion of the Compensation Committee.
    
    Employee stock purchase plan (ESPP).Under our 2004
employee stock purchase plan, substantially all
staff members may purchase our common stock at the
beginning of the stock purchase plan year through
payroll deductions of up to 10% of their annual
base pay, or $25,000, whichever is less. Plan
participants may terminate their participation at
any time. The price per share is 85% (or such
greater percentage as our Compensation Committee
may determine) of the stocks fair market value at
the beginning of the plan year.
    
    Directors deferred fee plan.Our directors may
elect to defer receipt of the cash portion of
their directors fees until they retire from the
Board. A director may elect to earn a yield on the
deferred cash portion based on yields Wilmington
Trust Company pays on certain deposit products
and/or changes in the price of our common stock
(including dividends). Choosing the latter creates
phantom shares. As of December 31, 2006, the fair
value of phantom shares granted under the deferral
plan was $1.8 million. For more information about
directorscompensation, please see our proxy
statement for the 2007 annual
shareholdersmeeting.
   Effects of stock-based compensation
 For the year ended December 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004Compensation expense
    
    $
    7.0
    
    
    $
    6.6
    
    
    $
    5.8Tax benefit
    
    
    2.1
    
    
    
    0.6
    
    
    
    0.8Net income effect
    
    $
    4.9
    
    
    $
    6.0
    
    
    $
    5.0
 Stock
option valuation.
 
    
    Base the value of the options on the amount of
time that typically lapses between when the
options are granted and when they are exercised.
 2006 Annual Report
    
    93




---



##### 




    
    Apply different forfeiture rates for each group.
    
    Calculate valuation estimates more precisely.
  Stock optionvaluation assumptionsFor the yearended December 31
    
    2006
    
    2005
    
    2004Risk-free interest rate
    
    4.514.94%
    
    3.043.26%
    
    2.893.11%Volatility of
Corporations stock
    
    14.3920.82%
    
    19.0421.57%
    
    21.5225.90%Expected dividend yield
    
    2.722.99%
    
    3.534.48%
    
    2.943.57%Expected life of options
    
    4.38.4 years
    
    35 years
    
    35 years
  
    
    The risk-free interest rate is the U.S. Treasury
rate commensurate with the expected life of
options on the date of their grant.
    
    We based the volatility of our stock on
historical volatility over a span of time equal to
the expected life of stock option
awards, which is the period of time we estimate that
stock options granted will remain outstanding.
    
    We based the expected life of stock option awards
on historical experience.
  Long-term
stock-based incentive plans.
 Options exercisedFor the year ended December 31 (dollars in millions)
    
    2006
    
    
    2005
    
    
    2004Number of options exercised
    
    
    1,071,943
    
    
    
    427,608
    
    
    
    435,411Total intrinsic value of options exercised
    
    $
    4.9
    
    
    $
    2.1
    
    
    $
    2.0Cash received from options exercised
    
    $
    28.3
    
    
    $
    11.7
    
    
    $
    11.4Tax deduction realized from
options exercised
    
    $
    6.0
    
    
    $
    1.1
    
    
    $
    1.2
 Weighted
    
    
    AggregateWeighted
    
    
    average
    
    
    intrinsicaverage
    
    
    remaining
    
    
    value perStock
    
    
    exercise
    
    
    contractual
    
    
    optionStock option activity for the year ended December 31, 2006
    
    options
    
    
    price
    
    
    term
    
    
    outstandingOutstanding at January 1, 2006
    
    
    6,335,292
    
    
    $
    30.56Granted
    
    
    1,039,052
    
    
    $
    43.01Exercised
    
    
    (1,071,943
    )
    
    $
    27.23Expired
    
    
    (3,700
    )
    
    $
    27.38Forfeited
    
    
    (136,734
    )
    
    $
    36.22Outstanding at December 31, 2006
    
    
    6,161,967
    
    
    $
    33.43
    
    
    
    6.3
    
    
    $
    5.89Exercisable at December 31, 2006
    
    
    3,311,567
    
    
    $
    29.33
    
    
    
    4.5
    
    
    $
    5.44Stock option activity for the year ended December 31, 2005Outstanding at January 1, 2005
    
    
    6,016,054
    
    
    $
    29.72Granted
    
    
    979,921
    
    
    $
    33.98Exercised
    
    
    (427,608
    )
    
    $
    26.19Expired
    
    
    
    
    
    $
    Forfeited
    
    
    (233,075
    )
    
    $
    31.25Outstanding at December 31, 2005
    
    
    6,335,292
    
    
    $
    30.56
    
    
    
    6.8
    
    
    $
    5.48Exercisable at December 31, 2005
    
    
    3,033,934
    
    
    $
    28.65
    
    
    
    4.9
    
    
    $
    5.36
 94

    Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Weighted
    
    
    AggregateWeighted
    
    
    average
    
    
    intrinsicaverage
    
    
    remaining
    
    
    value perStock
    
    
    exercise
    
    
    contractual
    
    
    optionStock option activity for the year ended December 31, 2004
    
    options
    
    
    price
    
    
    term
    
    
    outstandingOutstanding at January 1, 2004
    
    
    5,495,880
    
    
    $
    27.82Granted
    
    
    1,094,810
    
    
    $
    36.77Exercised
    
    
    (435,411
    )
    
    $
    24.81Expired
    
    
    
    
    
    $
    Forfeited
    
    
    (139,225
    )
    
    $
    29.97Outstanding at December 31, 2004
    
    
    6,016,054
    
    
    $
    29.72
    
    
    
    6.8
    
    
    $
    5.53Exercisable at December 31, 2004
    
    
    3,163,032
    
    
    $
    27.91
    
    
    
    5.3
    
    
    $
    5.39
 Nonvested
stock options.
 Weighted averageFor the year ended
    
    Stock
    
    
    fair valueDecember 31, 2006
    
    options
    
    
    at grant dateNonvested at January 1, 2006
    
    
    3,301,358
    
    
    $
    5.59Granted
    
    
    1,039,052
    
    
    $
    7.05Vested
    
    
    (1,367,377
    )
    
    $
    4.95Exercised
    
    
    (1,000
    )
    
    $
    6.81Expired
    
    
    
    
    
    $
    Forfeited
    
    
    (121,633
    )
    
    $
    5.87Nonvested at December 31, 2006
    
    
    2,850,400
    
    
    $
    6.41
 Weighted averageFor the year ended
    
    Stock
    
    
    fair valueDecember 31, 2005
    
    options
    
    
    at grant dateNonvested at January 1, 2005
    
    
    2,853,022
    
    
    $
    5.68Granted
    
    
    979,921
    
    
    $
    5.40Vested
    
    
    (337,560
    )
    
    $
    5.91Exercised
    
    
    (5,450
    )
    
    $
    5.13Expired
    
    
    
    
    
    $
    Forfeited
    
    
    (188,575
    )
    
    $
    5.55Nonvested at December 31, 2005
    
    
    3,301,358
    
    
    $
    5.59
 Weighted averageFor the year ended
    
    Stock
    
    
    fair valueDecember 31, 2004
    
    options
    
    
    at grant dateNonvested at January 1, 2004
    
    
    2,274,163
    
    
    $
    5.31Granted
    
    
    1,094,810
    
    
    $
    6.65Vested
    
    
    (440,426
    )
    
    $
    6.23Exercised
    
    
    
    
    
    $
    Expired
    
    
    
    
    
    $
    Forfeited
    
    
    (75,525
    )
    
    $
    5.40Nonvested at December 31, 2004
    
    
    2,853,022
    
    
    $
    5.68
 Restricted
stock grants.
 Weighted averageFor the year ended
    
    Restricted
    
    
    fair valueDecember 31, 2006
    
    shares
    
    
    at grant dateOutstanding at January 1, 2006
    
    
    25,730
    
    
    $
    34.84Granted
    
    
    40,860
    
    
    $
    43.23Vested
    
    
    (9,871
    )
    
    $
    35.12Forfeited
    
    
    (984
    )
    
    $
    40.60Outstanding at December 31, 2006
    
    
    55,735
    
    
    $
    40.84
  2006 Annual Report
    
    95




---



##### 



Weighted averageFor the year ended
    
    Restricted
    
    
    fair valueDecember 31, 2005
    
    shares
    
    
    at grant dateOutstanding at January 1, 2005
    
    
    12,638
    
    
    $
    37.02Granted
    
    
    18,003
    
    
    $
    33.90Vested
    
    
    (4,911
    )
    
    $
    37.02Forfeited
    
    
    
    
    
    $
    Outstanding at December 31, 2005
    
    
    25,730
    
    
    $
    34.84
 Weighted averageFor the year ended
    
    Restricted
    
    
    fair valueDecember 31, 2004
    
    shares
    
    
    at grant dateOutstanding at January 1, 2004
    
    
    
    
    
    $
    Granted
    
    
    12,638
    
    
    $
    37.02Vested
    
    
    
    
    
    $
    Forfeited
    
    
    
    
    
    $
    Outstanding at December 31, 2004
    
    
    12,638
    
    
    $
    37.02
 Employee
Stock Purchase Plan.
 Shares reservedActivity for the 2004 employee stock purchase plan
    
    for future
    
    
    Subscriptionsand its predecessors
    
    subscriptions
    
    
    outstanding
    
    
    Price per shareBalance at January 1, 2004
    
    
    351,339
    
    
    
    124,926New plan appropriation
    
    
    800,000
    
    
    
    Subscriptions entered into on June 1, 2004
    
    
    (110,026
    )
    
    
    110,026
    
    
    $
    31.06Forfeitures
    
    
    4,640
    
    
    
    (4,640
    )
    
    $
    25.03$31.06Shares issued
    
    
    
    
    
    
    (123,323
    )
    
    $
    25.03Cancellation of old plan
    
    
    (352,942
    )
    
    
    Balance at January 1, 2005
    
    
    693,011
    
    
    
    106,989Subscriptions entered into on June 1, 2005
    
    
    (110,266
    )
    
    
    110,266
    
    
    $
    30.54Forfeitures
    
    
    7,545
    
    
    
    (7,545
    )
    
    $
    30.54$31.06Shares issued
    
    
    
    
    
    
    (102,874
    )
    
    $
    30.46Balance at January 1, 2006
    
    
    590,290
    
    
    
    106,836Subscriptions entered into on June 1, 2006
    
    
    (95,551
    )
    
    
    95,551
    
    
    $
    37.07Forfeitures
    
    
    6,038
    
    
    
    (6,038
    )
    
    $
    30.54$37.07Shares issued
    
    
    
    
    
    
    (102,348
    )
    
    $
    30.54Balance at December 31, 2006
    
    
    500,777
    
    
    
    94,001
  96      Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



19. INCOME TAXES
  Reconciliation
of statutory income tax to income tax expense
 For the year endedDecember 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004Income before taxes, less minority interest
    
    $
    216.5
    
    
    $
    260.0
    
    
    $
    214.8Income tax at statutory rate of 35%
    
    
    75.8
    
    
    
    91.0
    
    
    
    75.2Tax effect of tax-exempt and
dividend income
    
    
    (2.9
    )
    
    
    (2.9
    )
    
    
    (2.9
    )Client list adjustment
    
    
    
    
    
    
    (1.4
    )
    
    
    Stock option compensation expense
    
    
    0.2
    
    
    
    (0.6
    )
    
    
    (0.8
    )State taxes, net of federal tax benefit
    
    
    (2.1
    )
    
    
    4.4
    
    
    
    3.9Other
    
    
    1.7
    
    
    
    2.5
    
    
    
    2.5Total income taxes
    
    $
    72.7
    
    
    $
    93.0
    
    
    $
    77.9Current income taxes:Federal taxes
    
    $
    99.5
    
    
    $
    80.4
    
    
    $
    63.7State taxes
    
    
    5.4
    
    
    
    6.8
    
    
    
    5.3Foreign taxes
    
    
    0.3
    
    
    
    (0.1
    )
    
    
    0.4Total current income taxes
    
    $
    105.2
    
    
    $
    87.1
    
    
    $
    69.4Deferred income taxes:Federal taxes
    
    $
    (23.8
    )
    
    $
    4.2
    
    
    $
    7.8State taxes
    
    
    (8.7
    )
    
    
    1.7
    
    
    
    0.7Total deferred income taxes
    
    $
    (32.5
    )
    
    $
    5.9
    
    
    $
    8.5Total income taxes
    
    $
    72.7
    
    
    $
    93.0
    
    
    $
    77.9
   Significant components of deferred tax liabilities and assets
 For the year endedDecember 31 ( in millions)
    
    2006
    
    
    2005Deferred tax liabilities:Tax depreciation
    
    $
    2.2
    
    
    $
    3.4Automobile and equipment leases
    
    
    1.2
    
    
    
    1.3Partnerships
    
    
    41.0
    
    
    
    34.2Pension and Supplemental Executive Retirement Plan
    
    
    10.9
    
    
    
    12.5Client list
    
    
    1.3
    
    
    
    2.0Accretion of discount
    
    
    1.6
    
    
    
    1.2Amortization expense
    
    
    2.0
    
    
    
    1.0Other
    
    
    3.1
    
    
    
    2.3Total deferred tax liabilities
    
    $
    63.3
    
    
    $
    57.9Deferred tax assets:Loan loss provision
    
    $
    32.6
    
    
    $
    32.2Vacation reserve
    
    
    0.9
    
    
    
    0.9State taxes
    
    
    1.5
    
    
    
    0.9Other postemployment benefits obligation
    
    
    13.8
    
    
    
    9.8Unearned fees
    
    
    15.4
    
    
    
    13.7Market valuation on investment securities
    
    
    9.9
    
    
    
    13.2Additional minimum pension liability
    
    
    15.1
    
    
    
    0.4Interest on nonaccruing loans
    
    
    3.7
    
    
    
    3.0Impairment of goodwill
    
    
    30.6
    
    
    
    OCI  floors
    
    
    1.4
    
    
    
    Gain on sale of securities
    
    
    0.8
    
    
    
    0.6Stock option
compensation expense
    
    
    5.4
    
    
    
    4.7Other
    
    
    3.0
    
    
    
    0.8Total deferred tax assets
    
    $
    134.1
    
    
    $
    80.2Net deferred tax assets
    
    $
    70.8
    
    
    $
    22.3
   2006 Annual Report
    
    97




---



##### 



20. EARNINGS PER SHARE
   Basic earnings per share(In millions, except share amounts)
    
    2006
    
    
    2005
    
    
    2004Numerator:Net income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9Denominator:Weighted average shares
    
    
    68.4
    
    
    
    67.7
    
    
    
    66.8Basic earnings per share
    
    $
    2.10
    
    
    $
    2.47
    
    
    $
    2.05
 Diluted earnings per share(In millions, except share amounts)
    
    2006
    
    
    2005
    
    
    2004Numerator:Net income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9Denominator:Weighted average shares
    
    
    68.4
    
    
    
    67.7
    
    
    
    66.8Effect of dilutive securities:Employee stock options and
ESPP subscriptions
    
    
    1.3
    
    
    
    0.9
    
    
    
    0.9Adjusted weighted average shares and
assumed conversions
    
    
    69.7
    
    
    
    68.6
    
    
    
    67.7Diluted earnings per share
    
    $
    2.06
    
    
    $
    2.43
    
    
    $
    2.02
  21. SEGMENT REPORTING
      98      Notes to Consolidated Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Segment reporting
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    MoneyFor the year ended December 31, 2006 (in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalsNet interest income
    
    $
    334.9
    
    
    $
    25.7
    
    
    $
    15.0
    
    
    $
    (12.5
    )
    
    $
    363.1Provision for loan losses
    
    
    (20.5
    )
    
    
    (0.8
    )
    
    
    
    
    
    
    
    
    
    
    (21.3
    )Net interest income after provision
    
    
    314.4
    
    
    
    24.9
    
    
    
    15.0
    
    
    
    (12.5
    )
    
    
    341.8Advisory fees:Wealth Advisory Services
    
    
    2.1
    
    
    
    179.7
    
    
    
    10.2
    
    
    
    
    
    
    
    192.0Corporate Client Services
    
    
    1.1
    
    
    
    
    
    
    
    84.5
    
    
    
    
    
    
    
    85.6Affiliate managers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.5
    
    
    
    20.5Advisory fees
    
    
    3.2
    
    
    
    179.7
    
    
    
    94.7
    
    
    
    20.5
    
    
    
    298.1Amortization of other intangibles
    
    
    
    
    
    
    (2.8
    )
    
    
    (0.5
    )
    
    
    (0.9
    )
    
    
    (4.2
    )Advisory fees after amortization of other intangibles
    
    
    3.2
    
    
    
    176.9
    
    
    
    94.2
    
    
    
    19.6
    
    
    
    293.9Other noninterest income
    
    
    48.6
    
    
    
    2.3
    
    
    
    1.1
    
    
    
    
    
    
    
    52.0Securities gains/(losses)
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2Net interest and noninterest income
    
    
    366.4
    
    
    
    204.1
    
    
    
    110.3
    
    
    
    7.1
    
    
    
    687.9Noninterest expense
    
    
    (158.5
    )
    
    
    (159.3
    )
    
    
    (81.4
    )
    
    
    (72.4
    )1
    
    
    (471.6
    )Segment profit before income taxes
    
    
    207.9
    
    
    
    44.8
    
    
    
    28.9
    
    
    
    (65.3
    )
    
    
    216.3Applicable income taxes and minority interest
    
    
    73.0
    
    
    
    15.4
    
    
    
    10.1
    
    
    
    (26.0
    )
    
    
    72.5Segment net income
    
    $
    134.9
    
    
    $
    29.4
    
    
    $
    18.8
    
    
    $
    (39.3
    )
    
    $
    143.8Depreciation and amortization
    
    $
    12.8
    
    
    $
    8.6
    
    
    $
    5.2
    
    
    $
    0.9
    
    
    $
    27.5Investment in equity method investees
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    198.9
    
    
    $
    198.9Segment average assets
    
    $
    8,650.3
    
    
    $
    1,383.0
    
    
    $
    214.8
    
    
    $
    247.0
    
    
    $
    10,495.1Efficiency ratio
    
    
    40.57
    %
    
    
    77.63
    %
    
    
    73.67
    %
    
    
    
    %
    
    
    66.10
    %
 1Includes non-cash impairment write-down.
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    MoneyFor the year ended December 31, 2005 (in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalsNet interest income
    
    $
    303.1
    
    
    $
    24.1
    
    
    $
    11.4
    
    
    $
    (9.7
    )
    
    $
    328.9Provision for loan losses
    
    
    (11.2
    )
    
    
    (0.6
    )
    
    
    
    
    
    
    
    
    
    
    (11.8
    )Net interest income after provision
    
    
    291.9
    
    
    
    23.5
    
    
    
    11.4
    
    
    
    (9.7
    )
    
    
    317.1Advisory fees:Wealth Advisory Services
    
    
    1.6
    
    
    
    161.9
    
    
    
    8.6
    
    
    
    
    
    
    
    172.1Corporate Client Services
    
    
    0.9
    
    
    
    
    
    
    
    75.4
    
    
    
    
    
    
    
    76.3Affiliate managers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17.5
    
    
    
    17.5Advisory fees
    
    
    2.5
    
    
    
    161.9
    
    
    
    84.0
    
    
    
    17.5
    
    
    
    265.9Amortization of other intangibles
    
    
    
    
    
    
    (2.9
    )
    
    
    (0.5
    )
    
    
    (0.6
    )
    
    
    (4.0
    )Advisory fees after amortization of other intangibles
    
    
    2.5
    
    
    
    159.0
    
    
    
    83.5
    
    
    
    16.9
    
    
    
    261.9Other noninterest income
    
    
    47.8
    
    
    
    1.8
    
    
    
    1.0
    
    
    
    
    
    
    
    50.6Securities gains/(losses)
    
    
    0.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.8Net interest and noninterest income
    
    
    343.0
    
    
    
    184.3
    
    
    
    95.9
    
    
    
    7.2
    
    
    
    630.4Noninterest expense
    
    
    (152.2
    )
    
    
    (144.4
    )
    
    
    (73.5
    )
    
    
    
    
    
    
    (370.1
    )Segment profit before income taxes
    
    
    190.8
    
    
    
    39.9
    
    
    
    22.4
    
    
    
    7.2
    
    
    
    260.3Applicable income taxes and minority interest
    
    
    67.3
    
    
    
    13.5
    
    
    
    8.1
    
    
    
    4.4
    
    
    
    93.3Segment net income
    
    $
    123.5
    
    
    $
    26.4
    
    
    $
    14.3
    
    
    $
    2.8
    
    
    $
    167.0Depreciation and amortization
    
    $
    14.1
    
    
    $
    8.5
    
    
    $
    5.1
    
    
    $
    0.7
    
    
    $
    28.4Investment in equity method investees
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    260.8
    
    
    $
    260.8Segment average assets
    
    $
    8,013.5
    
    
    $
    1,335.0
    
    
    $
    196.1
    
    
    $
    258.4
    
    
    $
    9,803.0Efficiency ratio
    
    
    42.56
    %
    
    
    77.97
    %
    
    
    76.48
    %
    
    
    
    %
    
    
    57.28
    %
  2006 Annual Report
    
    99




---



##### 



Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    MoneyFor the year ended December 31, 2004 (in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalsNet interest income
    
    $
    266.9
    
    
    $
    23.3
    
    
    $
    10.0
    
    
    $
    (5.8
    )
    
    $
    294.4Provision for loan losses
    
    
    (15.5
    )
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    (15.6
    )Net interest income after provision
    
    
    251.4
    
    
    
    23.2
    
    
    
    10.0
    
    
    
    (5.8
    )
    
    
    278.8Advisory fees:Wealth Advisory Services
    
    
    1.8
    
    
    
    144.5
    
    
    
    9.3
    
    
    
    
    
    
    
    155.6Corporate Client Services
    
    
    1.0
    
    
    
    
    
    
    
    70.6
    
    
    
    
    
    
    
    71.6Affiliate managers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12.5
    
    
    
    12.5Advisory fees
    
    
    2.8
    
    
    
    144.5
    
    
    
    79.9
    
    
    
    12.5
    
    
    
    239.7Amortization of other intangibles
    
    
    
    
    
    
    (1.4
    )
    
    
    (0.5
    )
    
    
    (0.6
    )
    
    
    (2.5
    )Advisory fees after amortization of other intangibles
    
    
    2.8
    
    
    
    143.1
    
    
    
    79.4
    
    
    
    11.9
    
    
    
    237.2Other noninterest income
    
    
    47.2
    
    
    
    1.5
    
    
    
    1.3
    
    
    
    
    
    
    
    50.0Securities gains/(losses)
    
    
    (0.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.5
    )Net interest and noninterest income
    
    
    300.9
    
    
    
    167.8
    
    
    
    90.7
    
    
    
    6.1
    
    
    
    565.5Noninterest expense
    
    
    (143.8
    )
    
    
    (138.3
    )
    
    
    (67.7
    )
    
    
    
    
    
    
    (349.8
    )Segment profit before income taxes
    
    
    157.1
    
    
    
    29.5
    
    
    
    23.0
    
    
    
    6.1
    
    
    
    215.7Applicable income taxes and minority interest
    
    
    54.8
    
    
    
    11.8
    
    
    
    8.9
    
    
    
    3.3
    
    
    
    78.8Segment net income
    
    $
    102.3
    
    
    $
    17.7
    
    
    $
    14.1
    
    
    $
    2.8
    
    
    $
    136.9Depreciation and amortization
    
    $
    21.1
    
    
    $
    8.2
    
    
    $
    5.7
    
    
    $
    0.6
    
    
    $
    35.6Investment in equity method investees
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    262.0
    
    
    $
    262.0Segment average assets
    
    $
    7,469.8
    
    
    $
    1,206.3
    
    
    $
    201.3
    
    
    $
    250.4
    
    
    $
    9,127.8Efficiency ratio
    
    
    44.88
    %
    
    
    82.22
    %
    
    
    74.40
    %
    
    
    
    %
    
    
    59.72
    %
  22. WILMINGTON TRUST CORPORATION (CORPORATION ONLY)
   Statements of Condition
 For the year endedDecember 31 (in millions)
    
    2006
    
    
    2005Assets:Cash and due from banks
    
    $
    36.2
    
    
    $
    49.0Investment in subsidiaries
    
    
    1,232.6
    
    
    
    1,162.9Investment securities available for sale
    
    
    84.5
    
    
    
    94.5Advance to subsidiaries
    
    
    80.4
    
    
    
    77.8Income taxes receivable
    
    
    5.4
    
    
    
    5.3Other assets
    
    
    1.7
    
    
    
    (1.8
    )Total assets
    
    $
    1,440.8
    
    
    $
    1,387.7Liabilities and stockholders equity:Liabilities
    
    $
    6.0
    
    
    $
    5.1Line of credit
    
    
    15.0
    
    
    
    Long-term debt
    
    
    360.5
    
    
    
    364.9Stockholders equity
    
    
    1,059.3
    
    
    
    1,017.7Total liabilities and stockholders equity
    
    $
    1,440.8
    
    
    $
    1,387.7
 Statements of Income
 For the year endedDecember 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004Income:Dividend from subsidiaries
    
    $
    73.2
    
    
    $
    88.2
    
    
    $
    88.5Interest on advance to subsidiaries
    
    
    5.3
    
    
    
    3.8
    
    
    
    2.7Interest
    
    
    3.3
    
    
    
    3.9
    
    
    
    4.9Securities gains
    
    
    0.1
    
    
    
    
    
    
    
    Total income
    
    $
    81.9
    
    
    $
    95.9
    
    
    $
    96.1Expense:Interest on other borrowings
    
    $
    0.5
    
    
    $
    
    
    
    $
    Interest on long-term debt
    
    
    24.0
    
    
    
    18.6
    
    
    
    11.4Salaries, incentives, and bonuses
    
    
    0.5
    
    
    
    6.6
    
    
    
    5.8Other noninterest expense
    
    
    2.4
    
    
    
    2.2
    
    
    
    1.6Total expense
    
    $
    27.4
    
    
    $
    27.4
    
    
    $
    18.8Income before income tax benefit
and equity in undistributed income
of subsidiaries
    
    $
    54.5
    
    
    $
    68.5
    
    
    $
    77.3Income tax benefit
    
    
    (5.8
    )
    
    
    (5.2
    )
    
    
    (2.7
    )Equity in undistributed income
of subsidiaries
    
    
    83.5
    
    
    
    93.3
    
    
    
    56.9Net income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9
 100     Notes to Consolidated  Financial Statements
    
    Wilmington Trust Corporation




---



##### 



Statements of Cash Flows
 For the year endedDecember 31 (in millions)
    
    2006
    
    
    2005
    
    
    2004OPERATING ACTIVITIESNet income
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9Adjustments to reconcile net income
to net cash provided by
operating activities:Equity in undistributed income
of subsidiaries
    
    
    (83.5
    )
    
    
    (93.3
    )
    
    
    (56.9
    )Amortization of investment securities
available for sale premiums
    
    
    0.3
    
    
    
    0.5
    
    
    
    0.7Securities gains
    
    
    (0.1
    )
    
    
    
    
    
    
    Stock-based compensation expense
    
    
    0.5
    
    
    
    6.6
    
    
    
    5.8Income tax benefit realized on
employee exercise of stock options
    
    
    
    
    
    
    (1.1
    )
    
    
    (0.9
    )(Increase)/decrease in other assets
    
    
    4.9
    
    
    
    0.6
    
    
    
    0.4Increase in other liabilities
    
    
    0.4
    
    
    
    1.8
    
    
    
    0.7Net cash provided by operating activities
    
    
    66.3
    
    
    
    82.1
    
    
    
    86.7INVESTING ACTIVITIESProceeds from sales of investment
securities available for sale
    
    
    7.2
    
    
    
    
    
    
    
    Proceeds from maturities of investment
securities available for sale
    
    
    11.0
    
    
    
    17.8
    
    
    
    83.2Purchases of investment securities
available for sale
    
    
    (7.4
    )
    
    
    (4.7
    )
    
    
    (21.1
    )Capital contribution to subsidiaries
    
    
    (6.8
    )
    
    
    (11.9
    )
    
    
    (7.4
    )Advance to subsidiary
    
    
    (15.9
    )
    
    
    
    
    
    
    (10.9
    )Repayment of advance to subsidiary
    
    
    13.3
    
    
    
    15.1
    
    
    
    14.8Swap termination
    
    
    (12.7
    )
    
    
    
    
    
    
    Purchase of subsidiaries
    
    
    
    
    
    
    
    
    
    
    (52.8
    )Net cash provided by
investing activities
    
    
    (11.3
    )
    
    
    16.3
    
    
    
    5.8FINANCING ACTIVITIESCash dividends
    
    
    (85.1
    )
    
    
    (80.2
    )
    
    
    (75.0
    )Net increase/(decrease) in line of credit
    
    
    15.0
    
    
    
    
    
    
    
    (8.0
    )Proceeds from common stock issued
under employment benefit plans
    
    
    31.4
    
    
    
    14.8
    
    
    
    14.5Income tax benefit realized on employee
exercise of stock options
    
    
    
    
    
    
    1.1
    
    
    
    0.9Payments for common stock acquired
through buybacks
    
    
    (29.1
    )
    
    
    (1.9
    )
    
    
    (19.9
    )Net cash used for financing activities
    
    
    (67.8
    )
    
    
    (66.2
    )
    
    
    (87.5
    )(Decrease)/increase in cash and
cash equivalents
    
    
    (12.8
    )
    
    
    32.2
    
    
    
    5.0Cash and cash equivalents at
beginning of year
    
    
    49.0
    
    
    
    16.8
    
    
    
    11.8Cash and cash equivalents at
end of year
    
    $
    36.2
    
    
    $
    49.0
    
    
    $
    16.8
 2006 Annual Report
    
    101




---



##### 



MANAGEMENTS DISCUSSION OF FINANCIAL RESPONSIBILITY
   MAINTAINING
A STRONG INTERNAL CONTROL ENVIRONMENT.
  ENGAGING STRONG AND EFFECTIVE CORPORATE GOVERNANCE.
  PRESENTING FINANCIAL RESULTS THAT ARE COMPLETE, TRANSPARENT, AND UNDERSTANDABLE.
 
 MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
 
 Internal
Control  Integrated Framework
 Ted T. Cecala
 Robert V.A. Harra Jr.
 David R. Gibson
 102     Managements Discussion of Financial Responsibility
    
    Wilmington Trust Corporation




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      Internal Control  Integrated
Framework
 
 2006 Annual Report
    
    103




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  Managements Report on
Internal Control Over Financial Reporting Internal Control  Integrated Framework
    Internal Control  Integrated Framework Internal Control  Integrated Framework
  
 104      Report of Independent Registered Public Accounting Firm
    
    Wilmington Trust Corporation




---



##### 



BOARD OF DIRECTORS
 CAROLYN S. BURGER 2,3*
 TED T. CECALA
 CHARLES S. CROMPTON JR., ESQUIRE 1
 THOMAS
L. du PONT
 R. KEITH ELLIOTT 1*
 DONALD E. FOLEY
 ROBERT V.A. HARRA JR.
 GAILEN KRUG 1,2
 REX L. MEARS 1,2
 STACEY J. MOBLEY 3
 DR. DAVID P. ROSELLE 2*,3
 H. RODNEY SHARP III 2,3
 ROBERT W. TUNNELL JR. 1
 SUSAN D. WHITING 3
 WILMINGTON TRUST PRINCIPAL OFFICERS
 TED T. CECALA
 ROBERT V.A. HARRA JR.
 WILLIAM J. FARRELL II
 DAVID R. GIBSON
 RODNEY P. WOOD
 MICHAEL
A. DiGREGORIO
 KEVYN N. RAKOWSKI
 RONALD K. PENDLETON
 REGIONAL PRESIDENTS

PHILIP P. CAVE
 MARK A. GRAHAM
 PETER E. TONY GUERNSEY JR.
 GREGORY F. SANFORD
 J. CHRISTOPHE SCHROEDER
 KEMP C. STICKNEY
  Standing Committees of the Board1
    
    Audit Committee2
    
    Compensation Committee3
    
    Nominating and Corporate Governance Committee*
    
    Denotes committee chair
  105




---



##### 



STOCKHOLDER INFORMATION
  STOCK MARKET LISTING
  
 ®
  STOCK PRICE PERFORMANCE
   
 Cumulative total stockholder return
  As of December 31
    
    2001
    
    
    2002
    
    
    2003
    
    
    2004
    
    
    2005
    
    
    2006WL
    
    $
    100.0
    
    
    $
    103.4
    
    
    $
    121.6
    
    
    $
    125.9
    
    
    $
    139.9
    
    
    $
    156.1S&P 500 Index
    
    $
    100.0
    
    
    $
    78.0
    
    
    $
    100.3
    
    
    $
    111.1
    
    
    $
    116.6
    
    
    $
    135.0KBW 50 Bank Index
    
    $
    100.0
    
    
    $
    93.0
    
    
    $
    124.6
    
    
    $
    137.1
    
    
    $
    138.7
    
    
    $
    165.6
 Stock performance and per-share dividends paid
  2006
    
    
    2005
    
    
    2004Quarter
    
    High
    
    
    Low
    
    
    Dividend
    
    
    High
    
    
    Low
    
    
    Dividend
    
    
    High
    
    
    Low
    
    
    DividendFirst
    
    $
    44.80
    
    
    $
    38.54
    
    
    $
    0.300
    
    
    $
    36.26
    
    
    $
    33.40
    
    
    $
    0.285
    
    
    $
    38.80
    
    
    $
    35.42
    
    
    $
    0.270Second
    
    
    45.21
    
    
    
    40.22
    
    
    
    0.315
    
    
    
    36.49
    
    
    
    33.01
    
    
    
    0.300
    
    
    
    38.26
    
    
    
    34.21
    
    
    
    0.285Third
    
    
    45.61
    
    
    
    40.52
    
    
    
    0.315
    
    
    
    39.36
    
    
    
    35.35
    
    
    
    0.300
    
    
    
    37.54
    
    
    
    34.31
    
    
    
    0.285Fourth
    
    
    45.33
    
    
    
    40.54
    
    
    
    0.315
    
    
    
    40.96
    
    
    
    34.65
    
    
    
    0.300
    
    
    
    35.69
    
    
    
    33.64
    
    
    
    0.285Total
    
    $
    45.61
    
    
    $
    38.54
    
    
    $
    1.245
    
    
    $
    40.96
    
    
    $
    33.01
    
    
    $
    1.185
    
    
    $
    38.80
    
    
    $
    33.64
    
    
    $
    1.125Dividend payout ratio
    
    
    
    
    
    
    
    
    
    
    59.18
    %
    
    
    
    
    
    
    
    
    
    
    48.02
    %
    
    
    
    
    
    
    
    
    
    
    54.78
    %Dividend payout ratio excluding impairment write-down
    
    
    
    
    
    
    
    
    
    
    45.88
    %


106    Stockholder Information
    
    Wilmington Trust Corporation




---



##### 



STOCKHOLDER INFORMATION
 Per-share price and book value
  2006
    
    
    2005
    
    
    2004At quarter end
    
    Closing price
    
    
    Book value
    
    
    Closing price
    
    
    Book value
    
    
    Closing price
    
    
    Book valueFirst
    
    $
    43.35
    
    
    $
    15.30
    
    
    $
    35.10
    
    
    $
    13.56
    
    
    $
    37.37
    
    
    $
    12.64Second
    
    $
    42.18
    
    
    $
    15.54
    
    
    $
    36.01
    
    
    $
    14.08
    
    
    $
    37.22
    
    
    $
    12.51Third
    
    $
    44.55
    
    
    $
    15.55
    
    
    $
    36.45
    
    
    $
    14.04
    
    
    $
    36.21
    
    
    $
    13.28Fourth
    
    $
    42.17
    
    
    $
    15.47
    
    
    $
    38.91
    
    
    $
    14.99
    
    
    $
    36.15
    
    
    $
    13.49
 Statistical information
 At December 31
    
    2006
    
    
    2005
    
    
    2004Shareholders of record (approximate)
    
    
    7,962
    
    
    
    8,180
    
    
    
    8,499Diluted shares outstanding (average)
    
    
    69,707,318
    
    
    
    68,570,161
    
    
    
    67,749,242Diluted shares outstanding (period end)
    
    
    68,459,514
    
    
    
    67,903,279
    
    
    
    67,405,422Market capitalization
    
    $2.89 billion
    
    $2.64 billion
    
    $2.44 billion
  ABOUT OUR DIVIDEND
   Dividend
Achievers
  ANNUAL MEETING
    INQUIRIES REGARDING STOCK HOLDINGS
   Wells Fargo Bank, N.A.
 Mailing Address
    
    Street AddressWells Fargo
    
    Wells FargoShareowner Services
    
    Shareowner ServicesP.O. Box 64854
    
    161 North Concord ExchangeSt. Paul, MN 55164
    
    South St. Paul, MN 55075
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STOCKHOLDER INFORMATION
  DIVIDEND REINVESTMENT AND
VOLUNTARY STOCK PURCHASE PLAN
    ADDITIONAL INFORMATION
  Our 2006 Annual Report onForm 10-K was filed
separately with the Securities and Exchange Commission
(SEC). That document, quarterly earnings releases,
other reports filed with the SEC, corporate news, and
other company information are available at
wilmingtontrust.com, or by contacting Investor
Relations at 302.651.8527 or IR@wilmingtontrust.com.
  SEC CERTIFICATIONS
  2006 Annual Report
on Form 10-K
  NYSE CERTIFICATIONS
    HOW TO CONTACT US
  Investors should direct inquiries to:
    
    Members of the news media should direct inquiries to:IR@wilmingtontrust.com
    
    media@wilmingtontrust.comEllen J. Roberts
    
    J.William BenintendeVice President,
    
    Vice President,Investor Relations
    
    Public Relations302.651.8069
    

    302.651.8268
 ®
  CORPORATE HEADQUARTERS
  
   INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  
 ©2007 Wilmington Trust Corporation. Affiliates in California, Delaware, Florida, Georgia,
Maryland, Nevada, New Jersey, New York, and Pennsylvania. Members FDIC. Other affiliates in
Connecticut, South Carolina, Vermont, London, Dublin, Frankfurt, Cayman Islands, and Channel
Islands.
 108      Stockholder Information
    
    Wilmington Trust Corporation




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