---



##### 



2008 at a Glance
  
    
    Declining market interest rates, which reduced net interest income.
    
    A significant increase in the provision for loan losses.
    
    A $130.7 million write-down in the value of some of our investment
securities.
    
    A $66.9 million write-down in the value of our investment in Roxbury Capital Management.
 Increase/For the year ended December 31
    
    2008
    
    
    2007
    
    
    (decrease)FINANCIAL RESULTS(in millions)Net interest income
    
    $
    357.7
    
    
    $
    368.9
    
    
    
    (3
    )%Provision for loan losses
    
    
    (115.5
    )
    
    
    (28.2
    )
    
    
    310Noninterest income
    
    
    292.4
    
    
    
    386.0
    
    
    
    (24
    )Noninterest expense
    
    
    559.7
    
    
    
    444.1
    
    
    
    26Net (loss)/income
    
    
    (23.6
    )
    
    
    182.0
    
    
    
    Net income excluding impairment
charges1
    
    $
    99.4
    
    
    $
    182.0
    
    
    
    (45
    )PER-SHARE DATANet (loss)/income per common share
(diluted)
    
    $
    (0.36
    )
    
    $
    2.64
    
    
    
    
    %Net income per common share
(diluted)
excluding impairment charge
    
    
    1.46
    
    
    
    2.64
    
    
    
    (45
    )Dividends paid per common share
    
    
    1.37
    
    
    
    1.32
    
    
    
    4Weighted average shares outstanding
(in thousands, diluted)
    
    
    67,454
    
    
    
    68,851AVERAGE BALANCES(in millions)Investment securities portfolio
    
    $
    1,561.2
    
    
    $
    1,863.5
    
    
    
    (16
    )%Loans
    
    
    9,200.0
    
    
    
    8,212.0
    
    
    
    12Reserve for loan losses
    
    
    (108.1
    )
    
    
    (95.5
    )
    
    
    13Earning assets
    
    
    10,883.2
    
    
    
    10,126.3
    
    
    
    8Total assets
    
    
    11,881.2
    
    
    
    10,997.4
    
    
    
    8Core deposits
    
    
    5,397.2
    
    
    
    5,045.5
    
    
    
    7Stockholders equity
    
    
    1,103.1
    
    
    
    1,091.0
    
    
    
    1ASSETS UNDER MANAGEMENT(in
billions)Wilmington Trust Company
    
    $
    36.6
    
    
    $
    35.9
    
    
    
    2
    %Cramer Rosenthal McGlynn
    
    
    7.8
    
    
    
    11.4
    
    
    
    (32
    )Roxbury Capital Management
    
    
    1.3
    
    
    
    2.5
    
    
    
    (48
    )Combined assets under management
    
    $
    45.7
    
    
    $
    49.8
    
    
    
    (8
    )STATISTICS AND RATIOSReturn on average assets
    
    
    (0.20
    )%
    
    
    1.65
    %Return on average common stockholders equity
    
    
    (2.17
    )%
    
    
    16.68
    %Net interest margin (taxable equivalent)
    
    
    3.28
    %
    
    
    3.67
    %Staff members (full-time equivalent)
    
    
    2,946
    
    
    
    2,672
 1
    
    In 2008 we recorded two non-cash
impairment charges: A $66.9 million write-down on our
investment in affiliate money manager Roxbury Capital
Management and a $130.7 million write-down on investment securities. We show
amounts excluding these charges because we believe they give
investors a more relevant basis for evaluating our
performance. For a detailed comparison of 2008 results with
and without these impairment charges, see page 62 of this
report.
    Regional Banking Services
 Corporate
Client Services
 Wealth Advisory Services




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##### 



TO OUR
SHAREHOLDERS
       
    
    Downward economic trends in the mid-Atlantic region, which
sparked an uptick in loan repayment problems and led us to
increase the provision for loan losses.
 
    
    Volatility in the financial markets and illiquidity in the
capital markets, which reduced the value of some of our
assets, triggered the need for impairment testing under fair
value accounting rules, and ultimately caused us to record
several non-cash impairment charges.
   
 Ted T. Cecala
Chairman and Chief Executive Officer
Wilmington Trust
   
    
    Reached record highs.
 
    
    Exceeded $9 billion for the
first time on an
average-balance basis.
  
    
    Our diverse array of products
helped counter weakness in the
capital markets.
 
    
    Acquisitions doubled our
retirement services
capacity.
 
    
    Revenue reached a new high.
  
    
    Turmoil on Wall Street increased
interest in our history of
strength and stability.
 
    
    The family office practice
continued to gain momentum.
 
    
    Revenue increased opposite
double-digit declines in
financial market valuations.




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##### 



2       Wilmington Trust Corporation

2008 Annual Report
       
 DEVELOPING BUSINESS IN CHALLENGING CONDITIONS
 
      
    
    $130.7 million of investment securities impairments.
    
    A $66.9 million decline in the value of our
investment in Roxbury Capital Management.
    
    A significant increase in the provision for loan losses.
    
    Market interest rate pressure on our net interest
margin, which reduced net interest income.
 
 1
    
    Excluding securities impairment charges.
   
    
    Present a more relevant measure of trends in
each of our businesses.
 
    
    Offer a more relevant basis for comparison
with prior periods.
  
    
    Net income for 2008 was $99.4 million.
 
    
    Earnings were $1.46 per common share
(on a diluted basis).




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##### 



2008 Annual Report

Wilmington Trust Corporation
      3
            
    
    Support record-high loan growth.
    
    Complete the AST Capital Trust Company
acquisition, which was an all-cash transaction.
    
    Pay dividends on our common stock.




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##### 



4       Wilmington Trust Corporation

2008 Annual Report
  
 MANAGING CAPITAL IN CHALLENGING CONDITIONS
 
              
    
    Enhances our financial stability.
    
    Helps us stimulate recovery in the mid-Atlantic
regional economy by making loans to
qualified borrowers.




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##### 



2008 Annual Report

Wilmington Trust Corporation
      5
  
 CAPTURING OPPORTUNITIES IN CHALLENGING CONDITIONS
 
       
    
    The U.S. economy is resilient. Over the course of our companys
105-year history, the American economy has recovered
successfully from 20 recessions, two World Wars, and one Great
Depression.
 
    
    Our reputation as a stable, relationship-focused company has
helped us attract and retain clients throughout the vagaries
of economic cycles.
 
    
    Our company has prospered and remained independent for 105
years because we manage for the long term.
 
    
    Over the last 10 years, we have invested carefully to position
our company for long-term growth. These initiatives have given
us a scope of capabilities that are highly desired by the
clients we have and by those we seek.
 
    
    Our business model differentiates us. We do not depend on any
single sector for sustainable revenue; we do not venture beyond
our core competencies or the markets we know best; and we have
not participated in the types of financial transactions in which
so many of todays problems are rooted.




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##### 



6       Wilmington Trust Corporation

2008 Annual Report
 
       
   
 1
    
    Excluding securities
impairment charge.
 
 1
    
    Excluding non-cash
impairment charges.
Including impairment
charges, 2006 earnings were
$2.06 per share and 2008
earnings were $(0.36) per
common share.




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##### 



MD&A

7
 TABLE
OF CONTENTS
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    8The purpose of this discussion is to help investors gauge how
well we 
executed our strategy to produce consistent results
over the long term.We start with a summary of our 2008 results.
    
    Summary of financial performance
    
    
    8We also summarize our participation in U.S. government
economic 
stimulus programs.
    
    Participation in U.S. government
economic stimulus programs
    
    
    12Then we provide more detail about each of our three businesses
and other 
factors that affected our 2008 results.
    
    Regional Banking
    
    
    14Corporate Client Services
    
    
    23Wealth Advisory Services
    
    
    27Assets under management and
administration
    
    
    31Affiliate Money Managers
    
    
    32Then we discuss how we manage capital, liquidity, and funding.
    
    Capital resources
    
    
    34Next we discuss our primary risks and the steps we take to
mitigate them.
    
    Risk
    
    
    42Asset quality and credit risk
    
    
    44Interest rate risk
    
    
    53Financial market risk
    
    
    57Economic risk
    
    
    58Operational and fiduciary risk
    
    
    58Regulatory and legal risk
    
    
    58Finally, we summarize our derivative and hedging instruments,
other off-balance-sheet arrangements, other contractual
obligations,
and other information.
    
    Other information
    
    
    59Selected Financial Data
    
    
    
    
    62Audited Consolidated Financial Statements
    
    
    
    
    73Notes to Consolidated Financial Statements
    
    
    
    
    80Managements Discussion of Financial Responsibility
    
    
    
    
    130Here we affirm our commitment to presenting information that
is complete,
transparent, and understandable.Reports of Independent Registered Public Accounting Firm
    
    
    
    
    131Board of Directors and Principal Officers
    
    
    
    
    133Stockholder Information
    
    
    
    
    134Wilmington Trust Office Locations
    
    
    
    
    138




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##### 



8       Wilmington Trust Corporation

2008 Annual Report
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 ABOUT WILMINGTON TRUST
  
    
    Regional Banking.
    
    Corporate Client Services (CCS).
    
    Wealth Advisory Services (WAS).
   SUMMARY OF FINANCIAL PERFORMANCE
  
    
    We had record-high loan growth. Loan balances rose 12%, on average, and
exceeded $9 billion for the first time.
    
    Revenue from WAS and CCS surpassed their previous highs.
    
    We set new balance sheet benchmarks not just in loans but also in core
deposits, total assets, and stockholders equity.
      
    
    Sustainable earnings growth.
    
    Consistent profitability with low volatility.
  
    
    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.
    
    Increasing profitability without compromising
our overall risk profile.
  
    
    Have multiple sources of revenue.
    
    Manage risk conservatively.
    
    Regularly invest our capital for future growth.
    
    Take a long-term view.




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##### 



MD&A

9




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##### 



10       Wilmington Trust Corporation

2008 Annual Report
   Net income and earnings per share
 
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    Change(in millions, except
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.share amounts)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Including the non-cash
impairment charges:Reported net income
(in millions)
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8
    
    
    
    
    
    
    
    27
    %Reported earnings
per share (diluted)
    
    $
    (0.36
    )
    
    $
    2.64
    
    
    $
    2.06
    
    
    
    
    
    
    
    28
    %Excluding the non-cash
impairment charges:Operating net income
(in millions)
    
    $
    99.4
    
    
    $
    182.0
    
    
    $
    185.5
    
    
    
    (45
    )%
    
    
    (2
    )%Operating earnings
per share (diluted)
    
    $
    1.46
    
    
    $
    2.64
    
    
    $
    2.66
    
    
    
    (45
    )%
    
    
    (1
    )%
   
    
    Opened a new, larger Pennsylvania headquarters in Villanova.
    
    Opened new offices in the Lehigh Valley area of eastern Pennsylvania and
in Princeton, New Jersey, which we staffed with teams of commercial
lenders and wealth advisors.
    
    Added commercial lending and WAS staff in our Baltimore office.
    
    Acquired a consulting firm that gave WAS a presence in Boston.
    
    Launched WAS family office services on the East Coast. We opened an
office in Stamford, Connecticut, added family office staff in New York,
Princeton, and Delaware, and acquired several new areas of specialization.
    
    Opened CCS offices in Germany and the Netherlands.
    
    Acquired corporate services providers in the Cayman Islands
and Luxembourg.
    
    Doubled the capacity of our retirement services capabilities.
    
    Introduced WTDirect, the Internet-only channel through which we offer a
high-yield savings account.
 
 1
Excluding non-cash impairment charges.




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##### 



MD&A

11
  EXPENSES
 
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Full-time-equivalent
staff members
    
    
    2,946
    
    
    
    2,672
    
    
    
    2,574
    
    
    
    10
    %
    
    
    4
    %Staffing-related expenses
    
    $
    296.1
    
    
    $
    270.6
    
    
    $
    242.5
    
    
    
    9
    %
    
    
    12
    %Total reported expenses
    
    $
    559.7
    
    
    $
    444.1
    
    
    $
    471.6
    
    
    
    26
    %
    
    
    (6
    )%Total operating expenses
    
    $
    492.8
    
    
    $
    444.1
    
    
    $
    399.3
    
    
    
    11
    %
    
    
    11
    %
  
    
    Subadvisor expenses associated with the retirement services business.
This increase was offset by the increase in retirement services revenue.
    
    Servicing and consulting fees, due to payment to third parties for data we
used to estimate the fair values of our investment securities and other assets.
    
    Legal costs, due to increased loan collection activities.
   
    
    The RCM impairment charges in 2006 and 2008. These write-downs
generated a tax benefit for the subsidiary that holds our investment in RCM
of approximately $31.5 million for 2006 and approximately $26.5 million
for 2008.
 
    
    The addition in 2008 of approximately $4.0 million related to executive
compensation as a result of our participation in the U.S. governments
Capital Purchase Program, which we discuss in more detail below.
 
    
    A credit in 2007 of approximately $2.7 million that resulted from an
agreement with state taxing authorities that reduced our reserve for state
income taxes. Absent this credit, our effective tax rate for 2007 would have
been 36.35%.
 INCOME TAXES AND TAX RATE
 
 2008
    
    
    2008
    
    
    
    
    
    
    2006
    
    
    2006(without
    
    
    (with
    
    
    
    
    
    
    (without
    
    
    (withimpairment
    
    
    impairment
    
    
    
    
    
    
    impairment
    
    
    impairmentFor the year
    
    write-down)
    
    
    write-down)
    
    
    2007
    
    
    write-down)
    
    
    write-down)Pre-tax income
(in millions)
    
    $
    172.5
    
    
    $
    (25.1
    )
    
    $
    282.6
    
    
    $
    288.6
    
    
    $
    216.3Income tax expense/
(benefit) (in millions)
    
    $
    72.6
    
    
    $
    (2.0
    )
    
    $
    99.7
    
    
    $
    103.3
    
    
    $
    72.7Effective tax rate
    
    
    42.09
    %
    
    
    (7.97
    )%
    
    
    35.28
    %
    
    
    35.79
    %
    
    
    33.61
    %




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##### 



12       Wilmington Trust Corporation

2008 Annual Report
  BUSINESS SEGMENT EFFICIENCY RATIOS
 
 For the year
    
    2008
    
    
    2007
    
    
    2006Regional Banking
    
    
    42.93
    %
    
    
    42.81
    %
    
    
    40.32
    %Wealth Advisory Services
    
    
    85.01
    %
    
    
    80.05
    %
    
    
    78.43
    %Corporate Client Services
    
    
    84.55
    %
    
    
    72.88
    %
    
    
    72.78
    %Wilmington Trust consolidated (reported results)
    
    
    85.73
    %
    
    
    58.53
    %
    
    
    66.10
    %Wilmington Trust consolidated (operating results)
    
    
    62.89
    %
    
    
    58.53
    %
    
    
    55.96
    %
 2008 CONTRIBUTION BY BUSINESS LINE
 
 Corporate
    
    
    Wealth
    
    
    Affiliate(in millions,
    
    Regional
    
    
    Client
    
    
    Advisory
    
    
    Moneyexcept share amounts)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    ManagersTotal revenue (after the loan loss
provision and amortization)
    
    $
    291.2
    
    
    $
    144.1
    
    
    $
    222.9
    
    
    $
    7.1Expenses
    
    $
    170.0
    
    
    $
    122.0
    
    
    $
    200.8
    
    
    $
    Operating net income
    
    $
    73.2
    
    
    $
    10.5
    
    
    $
    12.3
    
    
    $
    3.4Operating earnings per common share*
    
    $
    1.07
    
    
    $
    0.16
    
    
    $
    0.18
    
    
    $
    0.05
 *
    
    Dividends on preferred stock were charged to the Regional Banking business line.
 2007 CONTRIBUTION BY BUSINESS LINE
 
 Corporate
    
    
    Wealth
    
    
    Affiliate(in millions,
    
    Regional
    
    
    Client
    
    
    Advisory
    
    
    Moneyexcept share amounts)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    ManagersTotal revenue (after the loan loss
provision and amortization)
    
    $
    369.0
    
    
    $
    117.8
    
    
    $
    231.1
    
    
    $
    8.8Expenses
    
    $
    169.9
    
    
    $
    86.0
    
    
    $
    188.2
    
    
    $
    Operating net income
    
    $
    128.8
    
    
    $
    20.6
    
    
    $
    27.4
    
    
    $
    5.2Operating earnings per common share
    
    $
    1.87
    
    
    $
    0.30
    
    
    $
    0.40
    
    
    $
    0.07
 PARTICIPATION IN U.S. GOVERNMENT ECONOMIC STIMULUS PROGRAMS
  Capital Purchase Program
   REVENUE MIX IN DOLLARS
 
 For the year 
(in millions)
    
    2008
    
    
    2007
    
    
    2006Net interest income1
    
    $
    242.2
    
    
    $
    340.7
    
    
    $
    341.8Noninterest income2
    
    
    423.1
    
    
    
    386.0
    
    
    
    346.1Total revenue
    
    $
    665.3
    
    
    $
    726.7
    
    
    $
    687.9
 1
    
    After the loan loss provision.2
    
    After amortization and excluding securities impairment charge.
 REVENUE MIX IN PERCENTAGES
 
 For the year
    
    2008
    
    
    2007
    
    
    2006Net interest income1
    
    
    36
    %
    
    
    47
    %
    
    
    50
    %Noninterest income2
    
    
    64
    %
    
    
    53
    %
    
    
    50
    %
 1
    
    After the loan loss provision.2
    
    After amortization and excluding securities impairment charge.




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##### 



MD&A

13
    New deposit insurance limits .
 FDIC Transaction Account Guarantee Program .
 FDIC Debt Guarantee Program .
 Temporary Guarantee Program for Money Market Funds .




---



##### 



14       Wilmington Trust Corporation

2008 Annual Report
 
 REGIONAL BANKING
 
 OVERVIEW
  We target commercial banking services to middle-market business owners throughout the mid-Atlantic
region.
  We focus our consumer lending, residential mortgage lending, and core deposit-gathering activities
in the state of Delaware, where we have 48 branch offices.
 We are the leading commercial and consumer bank in Delaware. 2008 Market Share Report
 2008 HIGHLIGHTS
 Strong demand generated record-high loan growth in 2008.
 LOAN GROWTH
 
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.on average)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Commercial loans
    
    $
    6,369.3
    
    
    $
    5,599.8
    
    
    $
    5,195.0
    
    
    
    14
    %
    
    
    8
    %Consumer and
other retail loans
    
    
    2,830.7
    
    
    
    2,612.2
    
    
    
    2,504.8
    
    
    
    8
    %
    
    
    4
    %Total loans
    
    $
    9,200.0
    
    
    $
    8,212.0
    
    
    $
    7,699.8
    
    
    
    12
    %
    
    
    7
    %
 Our business model and relationship focus attracted
additional clients.
 COMPETITIVE ADVANTAGES
 Relationship focus .
 Locally based, well-known brand .
 Team-based business model .
 Concentrated markets .
 
    
    Middle-market business clients in the
mid-Atlantic region.
 
    
    Consumer banking clients in Delaware.




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##### 



MD&A

15
 Markets
outside Delaware contributed a larger percentage of loans in 2008, and reflected the
success of our recent expansion initiatives.
 GEOGRAPHIC SOURCES OF LOANS
 
 As of December 31 
(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Loan balances at period-end
    
    $
    9,619.1
    
    
    $
    8,475.8
    
    
    $
    8,094.9Percent from Delaware market
    
    
    54
    %
    
    
    57
    %
    
    
    60
    %Percent from Pennsylvania market
    
    
    23
    
    
    
    23
    
    
    
    21Percent from Maryland market
    
    
    10
    
    
    
    10
    
    
    
    6Percent from New Jersey market
    
    
    7
    
    
    
    5
    
    
    
    4Percent from other markets
    
    
    6
    
    
    
    5
    
    
    
    9
 The loan portfolio remained well diversified across commercial and consumer lines.
 LOAN BALANCES
 
 At December 31(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Commercial,
financial,
and agricultural
    
    $
    2,966.3
    
    
    $
    2,594.9
    
    
    $
    2,533.5
    
    
    $
    2,461.3
    
    
    $
    2,505.2Commercial real
estate  construction
    
    
    1,923.8
    
    
    
    1,780.4
    
    
    
    1,663.9
    
    
    
    1,233.9
    
    
    
    735.4Commercial mortgage
    
    
    1,870.2
    
    
    
    1,463.4
    
    
    
    1,296.1
    
    
    
    1,223.9
    
    
    
    1,246.8Residential mortgage
    
    
    571.2
    
    
    
    562.0
    
    
    
    536.9
    
    
    
    455.5
    
    
    
    431.3Consumer
    
    
    1,732.9
    
    
    
    1,571.6
    
    
    
    1,517.0
    
    
    
    1,438.3
    
    
    
    1,239.6Secured with
investments1
    
    
    554.7
    
    
    
    503.5
    
    
    
    547.5
    
    
    
    584.8
    
    
    
    604.7Total loans
    
    $
    9,619.1
    
    
    $
    8,475.8
    
    
    $
    8,094.9
    
    
    $
    7,397.7
    
    
    $
    6,763.0
 1
    
    Loans secured with investments are mainly loans to Wealth Advisory Services clients. They do
not indicate trends in the Regional Banking business.
 We installed new imaging and sales support software in our Delaware network of branch offices in
2008.
 Regional
Bankings results for 2008 were affected negatively by declines in market interest rates.
 Results also reflected an increase in the level of troubled loans.
       DELAWARE MARKET SHARE
 
 At June 30, 2008
    
    Wilmington
    
    
    Nearest(dollars in billions)
    
    Trust
    
    
    competitorLoans
    
    $
    8.45
    
    
    $
    3.24Core deposits
    
    $
    4.81
    
    
    $
    3.28
 Source: Federal Deposit Insurance Corporation and call reports.




---



##### 



16       Wilmington Trust Corporation

2008 Annual Report
 
  
    
    44% of total operating revenue.
    
    34% of operating expenses.
    
    74% of operating net income.
    
    $1.07 of operating earnings per common share.
 Operating revenue from the Regional Banking business declined, but the efficiency ratio held
relatively steady.
 REGIONAL BANKING PROFITABILITY
 
 For the year ended December 31(dollar amounts in millions)
    
    2008
    
    
    2007
    
    
    2006Segment operating net income1
    
    $
    73.2
    
    
    $
    128.8
    
    
    $
    134.0Efficiency ratio
    
    
    42.93
    %
    
    
    42.81
    %
    
    
    40.32
    %Profit margin
    
    
    57.07
    %
    
    
    57.19
    %
    
    
    59.68
    %
 1
    
    Excluding securities and goodwill impairment charges.
  THE MID-ATLANTIC REGIONAL ECONOMY
 The
regional economy weakened in 2008, especially in the fourth quarter.
 Unemployment rates in the region increased, but remained below the average.
 UNEMPLOYMENT RATES
 
 As of December
    
    2008
    
    
    2007
    
    
    2006United States
    
    
    7.2
    %
    
    
    5.0
    %
    
    
    4.4
    %Delaware
    
    
    6.2
    
    
    
    3.8
    
    
    
    3.3New Jersey
    
    
    7.1
    
    
    
    4.5
    
    
    
    4.3Pennsylvania
    
    
    6.7
    
    
    
    4.7
    
    
    
    4.7Philadelphia/Camden/Wilmington metropolitan area
    
    
    7.0
    
    
    
    4.5
    
    
    
    4.3Baltimore/Towson metropolitan area1
    
    
    5.4
    
    
    
    3.5
    
    
    
    3.7
 1
    
    As of NovemberSources: Federal Reserve Banks of Philadelphia and Richmond




---



##### 



MD&A

17
 The
regional housing market softened in 2008, but not to the
extent seen in other parts of the United States.
 MEDIAN SALES PRICE OF EXISTING SINGLE-FAMILY HOMES
 
 Change2008 vs.(in thousands)
    
    2008
    
    
    2007
    
    
    2007United States
    
    $
    197.1
    
    
    $
    217.9
    
    
    
    (10
    )%Philadelphia/Camden/Wilmington metropolitan area
    
    $
    231.4
    
    
    $
    234.9
    
    
    
    (1
    )%Dover, Delaware metropolitan area
    
    $
    206.2
    
    
    $
    207.5
    
    
    
    (1
    )%Baltimore/Towson metropolitan area
    
    $
    274.1
    
    
    $
    286.1
    
    
    
    (4
    )%Las Vegas
    
    $
    220.5
    
    
    $
    297.7
    
    
    
    (26
    )%Orange County, California
    
    $
    533.2
    
    
    $
    709.5
    
    
    
    (25
    )%Phoenix
    
    $
    191.3
    
    
    $
    257.4
    
    
    
    (26
    )%Ft. Myers, Florida
    
    $
    152.6
    
    
    $
    252.1
    
    
    
    (39
    )%
 Source: National Association of REALTORS ®
 SINGLE-FAMILY HOME SALES
 
 Change2008 vs.(in thousands)
    
    2008
    
    
    2007
    
    
    2007Delaware
    
    
    11.5
    
    
    
    15.7
    
    
    
    (27
    )%Maryland
    
    
    63.8
    
    
    
    86.4
    
    
    
    (26
    )%New Jersey
    
    
    112.6
    
    
    
    137.4
    
    
    
    (18
    )%Pennsylvania
    
    
    174.7
    
    
    
    214.0
    
    
    
    (18
    )%
 Source: National Association of REALTORS 9
 PERCENT CHANGE IN HOUSE PRICE INDEX
 
 (quarter-to-
    
    2007
    
    
    2008
    
    
    2008
    
    
    2008
    
    
    2008quarter change)
    
    Q4
    
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4United States
    
    
    0.1
    %
    
    
    (0.2
    )%
    
    
    (1.4
    )%
    
    
    (2.7
    )%
    
    
    (4.4
    )%Within our Regional
Banking footprint:Delaware
    
    
    0.4
    %
    
    
    (0.7
    )%
    
    
    (1.0
    )%
    
    
    (1.0
    )%
    
    
    (3.1
    )%Pennsylvania
    
    
    0.4
    %
    
    
    0.7
    %
    
    
    (0.4
    )%
    
    
    (1.5
    )%
    
    
    (2.3
    )%Comparison with markets
where we do not lend:California
    
    
    (3.1
    )%
    
    
    (4.4
    )%
    
    
    (6.9
    )%
    
    
    (8.3
    )%
    
    
    (7.0
    )%Florida
    
    
    (1.7
    )%
    
    
    (3.3
    )%
    
    
    (5.3
    )%
    
    
    (6.1
    )%
    
    
    (7.7
    )%Nevada
    
    
    (3.0
    )%
    
    
    (5.0
    )%
    
    
    (5.6
    )%
    
    
    (9.5
    )%
    
    
    (10.9
    )%
 Source: Federal Housing Finance Agency
 PERCENT OF HOUSEHOLDS ENTERING FORECLOSURE
 
 For the year ended December 31
    
    2008
    
    
    2007United States
    
    
    1.8
    %
    
    
    1.0
    %Within our Regional Banking footprint:Delaware
    
    
    0.7
    
    
    
    0.3Maryland
    
    
    1.4
    
    
    
    0.8New Jersey
    
    
    1.8
    
    
    
    0.9Pennsylvania
    
    
    0.7
    
    
    
    0.3Comparison with markets where we do not lend:California
    
    
    4.0
    
    
    
    1.9Florida
    
    
    4.5
    
    
    
    2.0Michigan
    
    
    2.4
    
    
    
    1.9Nevada
    
    
    7.3
    
    
    
    3.4
 Source: RealtyTracs U.S. Foreclosure Market Reports for 2008 and 2007
 Delawares population continued to increase. Kiplingers




---



##### 




    
    Life sciences
 
    
    Financial services
 
    
    Pharmaceuticals
 
    
    Health care
 
    
    Education
 
    
    Construction
 
    
    Manufacturing
 
    
    Retail
 
    
    Agriculture
 
    
    Tourism




---



##### 



18       Wilmington Trust Corporation

2008 Annual Report
 
   COMMERCIAL LOANS BY LOAN SIZE
 
 As of December 31
    
    2008
    
    
    2007
    
    
    2006Less than $250,000
    
    
    3
    %
    
    
    3
    %
    
    
    3
    %$250,000 to $1 million
    
    
    10
    
    
    
    11
    
    
    
    12$1 million to $5 million
    
    
    36
    
    
    
    37
    
    
    
    36$5 million to $10 million
    
    
    23
    
    
    
    25
    
    
    
    22$10 million to $20 million
    
    
    18
    
    
    
    18
    
    
    
    20More than $20 million
    
    
    10
    
    
    
    6
    
    
    
    7
      POPULATION GROWTH RANKINGS
 
 For the 12 months ended July 1
    
    2008
    
    
    2007Delaware
    
    
    13
    
    
    
    14Maryland
    
    
    44
    
    
    
    40New Jersey
    
    
    40
    
    
    
    43Pennsylvania
    
    
    46
    
    
    
    41
 Source: U.S. Census Bureau
  COMMERCIAL LENDING
 Commercial loan balances rose on average, and exceeded $6 billion for the first time.
 COMMERCIAL
LOAN BALANCES
 
 For the year endedDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    Change(in millions,
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.on average)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Commercial,
financial, and
agricultural loans
    
    $
    2,814.6
    
    
    $
    2,485.7
    
    
    $
    2,437.4
    
    
    
    13
    %
    
    
    2
    %Commercial
real estate 
construction loans
    
    
    1,860.6
    
    
    
    1,731.9
    
    
    
    1,516.8
    
    
    
    7
    %
    
    
    14
    %Commercial
mortgage loans
    
    
    1,694.1
    
    
    
    1,382.2
    
    
    
    1,240.8
    
    
    
    23
    %
    
    
    11
    %Total commercial loans
    
    $
    6,369.3
    
    
    $
    5,599.8
    
    
    $
    5,195.0
    
    
    
    14
    %
    
    
    8
    %
 Market disruption drove more commercial clients to us in 2008.
 GEOGRAPHIC SOURCES OF COMMERCIAL LOANS
 
 As of December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Commercial loan balances at period-end
    
    $
    6,760.3
    
    
    $
    5,838.7
    
    
    $
    5,493.5Percent from Delaware market
    
    
    55
    %
    
    
    58
    %
    
    
    58
    %Percent from Pennsylvania market
    
    
    26
    
    
    
    27
    
    
    
    27Percent from Maryland market
    
    
    9
    
    
    
    9
    
    
    
    8Percent from New Jersey market
    
    
    7
    
    
    
    5
    
    
    
    5Percent from other markets
    
    
    3
    
    
    
    1
    
    
    
    2




---



##### 



MD&A

19
 Commercial, financial, and agricultural loans accounted for most of the 2008 growth in commercial
loan balances, on average.
 The pace of growth in commercial construction lending slowed in 2008 as the regional housing market
contracted.
 The 2008 increase in commercial mortgage loans resulted from changes in the mortgage financing
market.
 Most of the commercial mortgage loans we added in 2008 were for owner-occupied properties.
 Almost all of our commercial loans have floating rates.
 MATURITIES AND RATE SENSITIVITY OF COMMERCIAL LOANS
 
 At December 31, 2008
    
    Less than
    
    
    1 through
    
    
    More than
    
    
    Total gross(in millions)
    
    1 year
    
    
    5 years
    
    
    5 years
    
    
    loansCommercial, financial, and agricultural
    
    $
    1,343.0
    
    
    $
    869.4
    
    
    $
    753.9
    
    
    $
    2,966.3Commercial
real estate  construction
    
    
    120.5
    
    
    
    1,437.4
    
    
    
    365.9
    
    
    
    1,923.8Commercial mortgage
    
    
    4.0
    
    
    
    380.7
    
    
    
    1,485.5
    
    
    
    1,870.2Total
    
    $
    1,467.5
    
    
    $
    2,687.5
    
    
    $
    2,605.3
    
    
    $
    6,760.3Loans with fixed rates
    
    $
    16.1
    
    
    $
    191.6
    
    
    $
    560.1
    
    
    $
    767.8Loans with floating rates
    
    
    1,451.4
    
    
    
    2,495.9
    
    
    
    2,045.2
    
    
    
    5,992.5Total
    
    $
    1,467.5
    
    
    $
    2,687.5
    
    
    $
    2,605.3
    
    
    $
    6,760.3
 CONSTRUCTION LOANS BY GEOGRAPHIC LOCATION
 
 At December 31
    
    2008
    
    
    2007Delaware
    
    
    60
    %
    
    
    61
    %Pennsylvania
    
    
    23
    
    
    
    25Maryland
    
    
    7
    
    
    
    7New Jersey
    
    
    7
    
    
    
    4Other
    
    
    3
    
    
    
    3
 CONSTRUCTION LOANS BY PROJECT TYPE
 
 At December 31
    
    2008
    
    
    2007Residential real
estate construction
    
    
    51
    %
    
    
    52
    %Land development
    
    
    21
    
    
    
    21Retail and office
    
    
    15
    
    
    
    14Owner-occupied
    
    
    2
    
    
    
    5Multi-family
    
    
    2
    
    
    
    2Other
    
    
    9
    
    
    
    6




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##### 



20       Wilmington Trust Corporation

2008 Annual Report
   
    
    No subprime loans.
 
    
    No payment option adjustable rate mortgages.
 
    
    No negatively amortizing adjustable rate mortgages.
 
    
    No other types of nontraditional mortgages.
 
    
    One interest-only residential mortgage loan.
       
    
    Merchants who extend credit to customers.
 
    
    Borrowers who seek credit.
 
    
    Financial institutions that provide credit.
  
    
    For new and late-model used cars.
 
    
    Made through automobile dealers in the mid-Atlantic region as an extension of the commercial banking relationships we have with them.
 RESIDENTIAL MORTGAGE LENDING
 Our residential mortgage balances do not correlate directly with our origination volumes.
 
    
    We sell most of the fixed residential mortgages we originate into the secondary market,
instead of retaining them on our balance sheet. This is one of our interest rate risk
management strategies, which we describe in more detail in the interest rate risk section of
this report.
 
    
    Origination volumes include refinancings.
 
    
    We do not include the Community Reinvestment Act (CRA) loans we purchase in our origination volumes.
 Residential mortgage activity in 2008 reflected weakness in the housing market.
 RESIDENTIAL MORTGAGE LOAN ACTIVITY
 
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Number of residential
mortgages originated
    
    
    739
    
    
    
    869
    
    
    
    972
    
    
    
    (15
    )%
    
    
    (11
    )%Residential mortgage
origination volumes
    
    $
    166.8
    
    
    $
    206.3
    
    
    $
    225.3
    
    
    
    (19
    )%
    
    
    (8
    )%Residential mortgage
balances, on average
    
    $
    562.0
    
    
    $
    556.3
    
    
    $
    495.2
    
    
    
    1
    %
    
    
    12
    %Percentage of residential
mortgages originated
at fixed rates
    
    
    83
    %
    
    
    74
    %
    
    
    80
    %
 CONSUMER LENDING
 Consumer loan balances rose 13%, on average, and exceeded $1.7 billion for the first time.
 CONSUMER LOAN BALANCES
 
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(in millions, on average)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Indirect
    
    $
    893.9
    
    
    $
    708.8
    
    
    $
    657.3
    
    
    
    26
    %
    
    
    8
    %Home equity
    
    
    523.5
    
    
    
    486.6
    
    
    
    482.3
    
    
    
    8
    %
    
    
    1
    %Credit card
    
    
    66.9
    
    
    
    64.6
    
    
    
    60.9
    
    
    
    4
    %
    
    
    6
    %Other
    
    
    244.4
    
    
    
    266.6
    
    
    
    257.7
    
    
    
    (8
    )%
    
    
    3
    %Total consumer loans
    
    $
    1,728.7
    
    
    $
    1,526.6
    
    
    $
    1,458.2
    
    
    
    13
    %
    
    
    5
    %




---



##### 



MD&A

21
 Approximately 92% of our indirect loans at year-end 2008 were for automobiles.
 INDIRECT LOANS ADDED, BY MARKET
 
 During the year
    
    2008
    
    
    2007Percent from Delaware market
    
    
    46
    %
    
    
    62
    %Percent from Pennsylvania market
    
    
    21
    %
    
    
    13
    %Percent from Maryland market
    
    
    17
    %
    
    
    14
    %Percent from New Jersey market
    
    
    15
    %
    
    
    11
    %Percent from other markets
    
    
    1
    %
    
    
    
    %
 
 Most consumer loans continued to come from clients in Delaware.
  GEOGRAPHIC SOURCES OF CONSUMER LOANS
 
 As of December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Consumer loan balances at period-end
    
    $
    1,732.9
    
    
    $
    1,571.6
    
    
    $
    1,517.0Percent from Delaware market
    
    
    53
    %
    
    
    58
    %
    
    
    78
    %Percent from Pennsylvania market
    
    
    18
    
    
    
    14
    
    
    
    7Percent from Maryland market
    
    
    16
    
    
    
    15
    
    
    
    *Percent from New Jersey market
    
    
    9
    
    
    
    6
    
    
    
    *Percent from other markets
    
    
    4
    
    
    
    7
    
    
    
    15
 *
    
    Market breakdowns not available for 2006.
 CORE DEPOSIT GATHERING
 Core deposit balances increased 7% in 2008, on average, to $5.40 billion.
  We attribute much of this growth to client demand for safe havens amid severe financial market
fluctuations.
 CORE DEPOSIT BALANCES
 
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(in millions, on average)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Noninterest-bearing
demand deposits
    
    $
    841.7
    
    
    $
    722.4
    
    
    $
    759.1
    
    
    
    17
    %
    
    
    (5
    )%Savings deposits
    
    
    779.3
    
    
    
    500.1
    
    
    
    311.4
    
    
    
    56
    %
    
    
    61
    %Interest-bearing
demand deposits
    
    
    2,470.4
    
    
    
    2,400.2
    
    
    
    2,365.1
    
    
    
    3
    %
    
    
    1
    %CDs < $100,000
    
    
    1,006.3
    
    
    
    1,010.1
    
    
    
    979.4
    
    
    
    
    %
    
    
    3
    %Local CDs
3  $100,000
    
    
    299.5
    
    
    
    412.7
    
    
    
    521.7
    
    
    
    (27
    )%
    
    
    (21
    )%Total core deposits
    
    $
    5,397.2
    
    
    $
    5,045.5
    
    
    $
    4,936.7
    
    
    
    7
    %
    
    
    2
    %
 Most of the growth in core deposits in 2007 and 2008 was in savings deposits generated by WTDirect.
 Much of the 2008 growth in noninterest-bearing demand deposits was from Corporate Client Services clients.
  
    
    Core deposits.
 
    
    Non-core deposits.
  
    
    Noninterest-bearing demand deposits.
 
    
    Interest-bearing demand deposits.
 
    
    Savings deposits.
 
    
    Certificates of deposit (CDs).
  
    
    Deposits from money center banks that we purchase wholesale from brokers.
 
    
    Not associated with clients.
 
    
    Reported as national CDs in amounts of $100,000 or more.




---



##### 



22       Wilmington Trust Corporation

2008 Annual Report
 Most core deposits continued to come from clients in Delaware.
  GEOGRAPHIC SOURCES OF CORE DEPOSITS
 
 As of December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Core deposit balances at period-end
    
    $
    6,117.1
    
    
    $
    5,465.5
    
    
    
    5,275.0Percent from Delaware market
    
    
    85
    %
    
    
    87
    %
    
    
    94
    %Percent from Pennsylvania market
    
    
    3
    
    
    
    5
    
    
    
    5Percent from Maryland market
    
    
    9
    
    
    
    8
    
    
    
    1Percent from New Jersey market
    
    
    
    
    
    
    
    
    
    
    Percent from other markets
    
    
    3
    
    
    
    
    
    
    
    
 Most local CDs in amounts of $100,000 or more were from consumer banking clients in Delaware.
 LOCAL CDS > $100,000 BY CLIENT CATEGORY
 
 As of December 31
    
    2008
    
    
    2007Consumer banking clients in Delaware
    
    
    56
    %
    
    
    61
    %Commercial banking clients in Delaware
    
    
    9
    
    
    
    9Commercial banking clients in Pennsylvania
    
    
    9
    
    
    
    9Wealth Advisory Services clients
    
    
    10
    
    
    
    12Local CDs from other markets
    
    
    16
    
    
    
    9




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##### 



MD&A

23
 
 CORPORATE CLIENT SERVICES
 
 OVERVIEW
 The
Corporate Client Services business provides a variety of
trustee, agency, investment
management, and administrative services for institutional clients.
 
    
    Use capital markets financing structures.
 
    
    Seek to establish and maintain legal residency (nexus) for special purpose entities in preferred jurisdictions.
 
    
    Use independent trustees to hold retirement plan assets.
 
    
    Need investment and cash management services.
 Capital
markets services help clients who use a wide variety of institutional
financing structures and transactions.
 Entity management services help special purpose entities and captive insurance companies comply
with nexus requirements in preferred jurisdictions.
 We
specialize in providing retirement services for unbundled retirement
plans.
 Our institutional investment and cash management services help clients increase the returns on
fixed income investments and residual cash.
 We do not own, take positions in, or participate in the pricing or valuation of CCS client assets.
 COMPETITIVE ADVANTAGES
 Conflict-free.
 
    
    No lending conflicts of interest.
 
    
    No securities underwriting conflicts of interest.
 Credibility.
 Reputation.
 Market presence.
 Superior service.
  U.S. office locations
 
    
Arizona
 
    
Delaware
 
    
Minnesota
 
    
Nevada
 
    
New Jersey
 
    
New York
 
    
South Carolina
 
    
Vermont
 European office locations
 
    
Channel Islands
 
    
Dublin
 
    
Frankfurt
 
    
London
 
    
Luxembourg
 
    
The Netherlands
 Caribbean office locations
 
    
Grand Cayman
  
    
    Have credit risk exposure to large capital markets transactions.
 
    
    Own the assets or entities for which we serve as trustee or administrator.
 
    
    Record these assets on our balance sheet.
 
    
    Consolidate these entities in our financial statements.
 
    
    Issue, underwrite, set pricing, or establish valuations for the financing structures we support.
 
    
    Offer high-volume, back office processing services.




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##### 



24       Wilmington Trust Corporation

2008 Annual Report
 CAPITAL
MARKETS SERVICES
 
    
    Indenture, successor, collateral, and liquidating trustee and
administrative services for:
 
    
    Corporate debt issuances and debt restructurings
    
    Reorganizations, mergers, and bankruptcies
 
    
    Owner trustee, indenture trustee, and administrative services for:
 
    
    Securitizations and other structured finance transactions
    
    Capital equipment and project financing transactions
 
    
    Loan administration services
 
    
    Investment and cash management services
 
 HOW WE REPORT CCS REVENUE
 We report CCS revenue in four categories:
 Capital markets and entity management revenue is not based on asset valuations.
 A
portion of retirement services revenue is based on the market
valuations of retirement plans and collective funds for
which we are trustee.
 Approximately 33% of institutional investment and cash management revenue is based on the market
valuations of investment-grade fixed income instruments.
 2008 HIGHLIGHTS
 CCS revenue rose 34% in 2008.
 
    
    The completion of two acquisitions that made us one of the leading U.S. providers of services for unbundled retirement plans.
 
    
    Our ability to adapt swiftly to changing conditions in the capital markets.
 
    
    Our position as an independent, conflict-free service provider.
 The two retirement services acquisitions doubled our retirement services capacity.
 
    
    AST Capital Trust Company (AST), which we acquired on April 30, 2008. AST is a Phoenix-based
provider of directed trustee, trust administrative, and back-office services delivered through
financial advisors and third-party administrators to retirement plans, high-net-worth individuals and families, and
institutional investors.
 
    
    UBS Fiduciary Trust Company (UBSFTC), which we acquired on October 10, 2008. UBSFTC, a former
subsidiary of global financial services company UBS AG, is a New Jersey-based provider of
trust, custody, and investment management services for retirement and employee benefit plans.
UBSFTC had been outsourcing its operations to AST since 2007.
  These two acquisitions accounted for most of the $24.5 million increase in retirement services
revenue for 2008.




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##### 



MD&A

25
 CORPORATE CLIENT SERVICES REVENUE
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Capital markets services
    
    $
    48.1
    
    
    $
    42.9
    
    
    $
    37.0
    
    
    
    12
    %
    
    
    16
    %Entity management
services
    
    
    32.4
    
    
    
    30.0
    
    
    
    26.8
    
    
    
    8
    %
    
    
    12
    %Retirement services
    
    
    37.4
    
    
    
    12.9
    
    
    
    11.5
    
    
    
    190
    %
    
    
    12
    %Investment/cash
management services
    
    
    13.9
    
    
    
    12.8
    
    
    
    10.3
    
    
    
    9
    %
    
    
    24
    %Total Corporate Client
Services revenue
    
    $
    131.8
    
    
    $
    98.6
    
    
    $
    85.6
    
    
    
    34
    %
    
    
    15
    %
 Capital markets revenue rose 12% in 2008, even though industry activity was significantly lower.
 Trustee and other services that support defaults and bankruptcies were significant contributors to
the 2008 growth in capital markets revenue.
 Services
that support tender option bonds (TOBs) continued to be a source of capital markets revenue
growth.
 Capital markets revenue in 2008 also benefited from downgrades in the credit ratings of:
 
    
    Providers of credit default swaps. This increased the need for custody services as
providers were required to post additional collateral.
    
    Agent banks. This increased demand for independent providers of loan administration
services.
 We added a team of 12 seasoned capital markets experts in Minneapolis.
 Problems in the subprime residential mortgage market had a minimal effect on CCS revenue.
 Entity management services
 
    
    Corporate governance
    
    Independent directors
    
    Regulatory reporting
    
    Tax and accounting services
    
    Captive insurance company management
    
    Office management
    
    Other administrative services
 Retirement services
 
    
    Trust services
    
    Custody services
    
    Accounting services
    
    Benefit payment services
    
    Collective investment fund administration
    
    Investment management services
  
    
    22% of total operating revenue.
    
    25% of operating expenses.
    
    11% of operating net income.
    
    $0.16 of operating earnings per common share.




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##### 



26       Wilmington Trust Corporation

2008 Annual Report
 Revenue from entity management services increased 8% in
2008.
 We added The Netherlands to our jurisdictional capabilities
in Europe.
 Services that support new securitization structures in
Europe contributed to the growth in entity management
revenue.
 CCS
managed asset levels tripled in 2008.
 CCS ASSETS UNDER MANAGEMENT
 At December 31 (in millions)
    
    2008
    
    
    2007
    
    
    ChangeCCS assets under management
    
    $
    9,800.0
    
    
    $
    3,029.3
    
    
    
    224
    %
 At the end of 2008, we decided to close our collateralized
debt obligation (CDO) and conduit services business.
  CCS revenue was higher for 2008, but its profitability
decreased.
 CORPORATE CLIENT SERVICES PROFITABILITY
 For the year ended December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Segment operating net income1
    
    $
    10.5
    
    
    $
    20.6
    
    
    $
    19.2Efficiency ratio
    
    
    84.55
    %
    
    
    72.88
    %
    
    
    72.78
    %Profit margin
    
    
    15.45
    %
    
    
    27.12
    %
    
    
    27.22
    %
 
 1
    
    Excluding securities and goodwill impairment charges.




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##### 



MD&A

27
  WEALTH ADVISORY SERVICES
  OVERVIEW
 The Wealth Advisory Services (WAS) business helps high-net-worth clients grow, protect, and
transfer their wealth.
 We offer a comprehensive array of wealth management services. SM
 We specialize in strategic planning.
 Our Complete Asset Management SM approach offers clients a broad spectrum of asset
classes and styles.
 We provide objectivity by using a mix of investment managers.
 All asset management clients, regardless of account size, have access to our best thinking.
 We help family office clients identify, review, consolidate, and execute financial and lifestyle
management needs.
 
    
    Family office legal structures.
 
    
    Strategies for clients with inherited wealth.
 
    
    Compensation strategies for corporate executives.
 
    
    Services for entertainment and sports industry professionals.
 Family office clients may or may not also use our asset management services.
 We are recognized as a premier provider of trust and other fiduciary services.
 COMPETITIVE ADVANTAGES
 105 years of experience.
 Holistic approach.
 Objective investment advice.
 
    
    We focus on asset allocation and portfolio construction, not stock-picking.
 
    
    We use a combination of in-house and outside investment managers.
 Delaware advantage experts.
 Reputation.
 Long-term client relationships.
  WEALTH ADVISORY OFFICE LOCATIONS
 
    
    California
    
    Connecticut
    
    Delaware
    
    Florida
    
    Georgia
    
    Maryland
    
    Massachusetts
    
    New Jersey
    
    New York
    
    Pennsylvania
  
    
    Boston
    
    Chicago
    
    Los Angeles
    
    New York
 
    
    Philadelphia
    
    San Francisco
    
    West Palm Beach




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##### 



28       Wilmington Trust Corporation

2008 Annual Report
 ASSET MANAGEMENT SERVICES
  SM
 
    
    Emphasizing diversification.
 
    
    Applying forward-looking asset allocation.
 
    
    Performing tactical rebalancing.
 
    
    Employing a blend of active and passive funds.
 FAMILY OFFICE SERVICES
 
    
    Planning and governance
    
    Cash flow management and budgeting
    
    Tax planning and compliance
    
    Risk assessment
    
    Insurance oversight
    
    Bill payment and payroll management
    
    Family security
 FIDUCIARY SERVICES
 
    
    Trust management
    
    Trust administration
    
    Tax services
    
    Estate settlement
    
    Philanthropic services
 HOW WE REPORT WAS REVENUE
 We report WAS revenue in three categories:
 Trust and investment advisory revenue consists of fees for asset management, asset allocation, and
trust management services.
  Planning and other services revenue consists of fees from family office, financial planning, estate
settlement, tax, and other services.
  Mutual fund revenue consists of fees that are tied primarily to money market mutual fund and cash
balances.
 Most of the revenue from WAS is noninterest income.
 We believe that revenue, rather than managed asset levels, is a better indicator of trends in the
WAS business.
 2008 HIGHLIGHTS
 Market conditions were highly challenging for WAS in 2008.
 WAS revenue for 2008 was 2% higher than for 2007.
 The growth in WAS revenue amid such a difficult environment illustrated how our expansion
investments are reaping returns.




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##### 



MD&A

29
 WEALTH ADVISORY SERVICES REVENUE
 For the year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Trust and investment
advisory fees
    
    $
    152.0
    
    
    $
    158.6
    
    
    $
    136.5
    
    
    
    (4
    )%
    
    
    16
    %Planning and other
services fees
    
    
    45.5
    
    
    
    40.1
    
    
    
    35.3
    
    
    
    13
    %
    
    
    14
    %Mutual fund fees
    
    
    27.2
    
    
    
    21.4
    
    
    
    20.2
    
    
    
    27
    %
    
    
    6
    %Total Wealth Advisory
Services revenue
    
    $
    224.7
    
    
    $
    220.1
    
    
    $
    192.0
    
    
    
    2
    %
    
    
    15
    %
 Revenue from trust and investment advisory services decreased in 2008, but not nearly as severely
as the S&P 500.
 TRUST AND INVESTMENT ADVISORY REVENUE VS. THE S&P 500
 2008 vs.
    
    
    2007 vs.As of December 31
    
    2007
    
    
    2006Change in trust and investment advisory revenue
    
    
    (4
    )%
    
    
    16
    %Change in S&P 500
    
    
    (38
    )%
    
    
    4
    %
 Revenue from our family office practice increased in 2008.
 Mutual fund fees were the largest contributor to WAS revenue growth for 2008.
 Three of our mutual funds participated in the U.S. governments temporary guarantee program for
money market funds.
 The year 2008 was our first full year of revenue from our Boston office.
 Sales from the Boston market were significantly higher in 2008 than 2007.
 DELAWARE TRUST AND TAX ADVANTAGES
 
    
    Direction trusts permit the use of third-party
investment advisors. Trust laws in most other
states require the fiduciary to be the asset manager.
    
    Irrevocable trusts are exempt from Delaware income tax on
accumulated earnings and capital gains if there are no Delaware beneficiaries.
    
    Asset protection trusts provide an alternative to offshore
accounts for achieving protection from creditors.
    
    Spendthrift trusts provide significant protection from creditors claims.
    
    Perpetual dynasty trusts may be exempt from certain U.S. transfer taxes.
    
    Total return trusts align the interests of income and remainder beneficiaries.
    
    Delawares Chancery Court keeps trust matters confidential.




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##### 



30       Wilmington Trust Corporation

2008 Annual Report
  
    
    34% of total operating revenue.
    
    41% of operating expenses.
    
    12% of operating net income.
    
    $0.18 of operating earnings per common share.
 GEOGRAPHIC COMPOSITION OF WAS SALES
 For the year
    
    2008
    
    
    2007Mid-Atlantic markets:Delaware
    
    
    9
    %
    
    
    9
    %Maryland
    
    
    3
    %
    
    
    2
    %New Jersey
    
    
    1
    %
    
    
    1
    %Pennsylvania
    
    
    12
    %
    
    
    12
    %National markets:California
    
    
    5
    %
    
    
    5
    %Florida
    
    
    9
    %
    
    
    7
    %Georgia
    
    
    4
    %
    
    
    3
    %Massachusetts
    
    
    3
    %
    
    
    
    %New York
    
    
    9
    %
    
    
    8
    %Family office/family wealth
    
    
    45
    %
    
    
    53
    %Total WAS sales (in millions)
    
    $
    24.9
    
    
    $
    25.8
 The dollar amount of WAS sales decreased slightly
compared to 2007.
 Although WAS revenue was higher for 2008 than 2007, its
profitability decreased.
 
    
    Expenses
were higher in 2008 because they included 12 months
of Boston-related expenses, while 2007 expenses
included only six months.
    
    The portion of the loan loss reserve allocated to WAS was
higher.
 WAS PROFITABILITY
 For the year ended December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Segment operating net income1
    
    $
    12.3
    
    
    $
    27.4
    
    
    $
    28.2Efficiency ratio
    
    
    85.01
    %
    
    
    80.05
    %
    
    
    78.43
    %Profit margin
    
    
    14.99
    %
    
    
    19.95
    %
    
    
    21.57
    %
 
 1
    
    Excluding securities and goodwill impairment charges.




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##### 



MD&A

31
  ASSETS UNDER MANAGEMENT AND
ADMINISTRATION
    
    
    Asset management is only one of the wealth management services we offer.
    
    Not all WAS revenue is based on asset valuations.
    
    More than half of CCS revenue is generated on a fee-for-service basis and is
not tied to the value of any associated assets.
    
    WAS and CCS revenue may include fees for direction trust services,
but direction trust assets are not included in our AUM or AUA amounts.
For more information about direction trusts, read the Wealth Advisory
Services section of this report.
    
    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 cash management needs of these clients.
 The CCS business accounted for most of the 2008 increases in AUM and
AUA
 CLIENT ASSETS AT WILMINGTON TRUST 1
  At December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Assets under management
    
    $
    36,571.4
    
    
    $
    35,934.7
    
    
    $
    31,222.9Assets under administration
    
    
    94,422.2
    
    
    
    88,348.1
    
    
    
    76,282.6Total client assets at Wilmington Trust1
    
    $
    130,993.6
    
    
    $
    124,282.8
    
    
    $
    107,505.5
 1
    
    Excludes CRM and RCM. Includes estimates of asset values that are not readily
available, such as those held in limited partnerships.
 Assets managed by the CCS business more than tripled on strong demand for institutional investment
and cash management services.
 ASSETS UNDER MANAGEMENT BY BUSINESS LINE 1
  2008
    
    
    2007At December 31 (in millions)
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentWAS
    
    $
    26,771.4
    
    
    
    73
    %
    
    $
    32,905.4
    
    
    
    92
    %CCS
    
    
    9,800.0
    
    
    
    27
    %
    
    
    3,029.3
    
    
    
    8
    %Total Wilmington Trust AUM1
    
    $
    36,571.4
    
    
    
    
    
    
    $
    35,934.7
 1
    
    Excludes CRM and RCM. Includes
estimates of asset values that are not readily
available, such as those held in limited
partnerships.
 Shifts in the mix of managed assets on a percentage basis
reflected the growth in CCS investment/cash management
services.
  
    
    Assets under management (AUM).
    
    Assets under administration (AUA).
     INVESTMENT MIX OF AUM AT WILMINGTON TRUST 1
  At December 31
    
    2008
    
    
    2007
    
    
    2006Equities
    
    
    38
    %
    
    
    47
    %
    
    
    47
    %Fixed income
    
    
    33
    %
    
    
    23
    %
    
    
    27
    %Cash and
cash equivalents
    
    
    18
    %
    
    
    15
    %
    
    
    16
    %Other assets
    
    
    11
    %
    
    
    15
    %
    
    
    10
    %
 1
    
    Excludes CRM and RCM.




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##### 



32       Wilmington Trust Corporation

2008 Annual Report
   
    
    Net of their expenses.
 
    
    Based on our ownership position in each firm.
   
  AFFILIATE MONEY MANAGERS
   
    
    Cramer Rosenthal McGlynn (CRM), a value-style manager based in
New York.
 
    
    Roxbury Capital Management (RCM), a growth-style manager based in
Santa Monica, California.
  ASSETS UNDER MANAGEMENT
  At December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Wilmington Trust1
    
    $
    36,571.4
    
    
    $
    35,934.7
    
    
    $
    31,222.9Cramer Rosenthal McGlynn
    
    
    7,817.4
    
    
    
    11,417.3
    
    
    
    10,623.8Roxbury Capital Management
    
    
    1,336.6
    
    
    
    2,466.0
    
    
    
    3,138.1Combined assets under management
    
    $
    45,725.4
    
    
    $
    49,818.0
    
    
    $
    44,984.8
 1
    
    Includes estimates of asset values that are not readily available, such as
those held in limited partnerships.
  At CRM, business inflows remained solid in 2008, but equity market volatility affected the firms AUM levels and revenue negatively.
 CRAMER ROSENTHAL MCGLYNN
  As of and for the year 
ended December 31(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Assets under management
    
    $
    7,817.4
    
    
    $
    11,417.3
    
    
    $
    10,623.8Revenue (net of expenses)
    
    $
    16.4
    
    
    $
    20.7
    
    
    $
    19.3Wilmington Trusts ownership position
    
    
    80.99
    %
    
    
    82.41
    %
    
    
    81.73
    %




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##### 



MD&A

33
 Our ownership position in CRM changed slightly.
 At RCM, market pressures reduced managed asset levels and caused the firm to record a loss for
2008.
 Market pressures also led us to write down the carrying value of our investment in RCM.
 New products RCM has developed and launched recently are attracting assets.
 ROXBURY CAPITAL MANAGEMENT
  As of and for the year 
ended December 31(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Assets under management
    
    $
    1,336.6
    
    
    $
    2,466.0
    
    
    $
    3,138.1Revenue (net of expenses)
    
    $
    (0.7
    )
    
    $
    1.2
    
    
    $
    1.2Wilmington Trusts ownership positionOwnership of preferred profits
    
    
    30
    %
    
    
    30
    %
    
    
    30
    %Ownership of common interests
    
    
    41.23
    %
    
    
    41.23
    %
    
    
    41.23
    %Ownership of Class B interests
    
    
    67
    %
    
    
    25
    %
    
    
    
 Our ownership of Class B interests in RCM increased in 2007
and 2008, as permitted by the put provisions in our agreement with
RCM.




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##### 



34       Wilmington Trust Corporation

2008 Annual Report
   UBPR Users Guide,
  
    
    Support growth.
 
    
    Absorb losses.
 
    
    Invest in future opportunities.
    CAPITAL RESOURCES
  We remained well capitalized in 2008.
 REGULATORY CAPITAL RATIOS
  Minimumto be
    
    
    Minimumadequately
    
    
    to be wellAt December 31
    
    2008
    
    
    2007
    
    
    2006
    
    
    capitalized
    
    
    capitalizedTotal risk-based capital
    
    
    13.97
    %
    
    
    11.21
    %
    
    
    12.10
    %
    
    
    8
    %
    
    
    10
    %Tier 1 risk-based
capital
    
    
    9.24
    %
    
    
    7.73
    %
    
    
    8.25
    %
    
    
    4
    %
    
    
    6
    %Tier 1 leverage capital
    
    
    8.77
    %
    
    
    7.18
    %
    
    
    7.39
    %
    
    
    4
    %
    
    
    5
    %
 REGULATORY CAPITAL IN DOLLARS
  At December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Total risk-based capital
    
    $
    1,600.3
    
    
    $
    1,130.0
    
    
    $
    1,158.7Tier 1 risk-based capital
    
    $
    1,058.3
    
    
    $
    779.2
    
    
    $
    789.7Tier 1 leverage capital
    
    $
    1,058.3
    
    
    $
    779.2
    
    
    $
    789.7
 We completed three capital-raising activities in 2008.
 We raised $330.0 million by participating in the CPP.
 We issued $200.0 million of subordinated long-term debt.
 Net proceeds from our at-the-market offering of common stock were $43.7 million.




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##### 



MD&A

35
 CAPITAL STRENGTH
  As of and forthe year endedDecember 31(dollars in millions,
    
    2008
    
    
    
    
    
    
    2006except per
    
    With
    
    
    Without
    
    
    
    
    
    
    With
    
    
    Withoutshare amounts)
    
    impairment
    
    
    impairment
    
    
    2007
    
    
    impairment
    
    
    impairmentCommon stockholders equity
(period end)
    
    $
    1,012.4
    
    
    $
    1,070.6
    
    
    $
    1,120.3
    
    
    $
    1,059.3
    
    
    $
    1,101.0Common
stockholders
equity (on average)
    
    $
    1,085.2
    
    
    $
    1,108.4
    
    
    $
    1,091.0
    
    
    $
    1,059.1
    
    
    $
    1,069.7Return on average
common stockholders equity
    
    
    (2.17
    )%
    
    
    8.97
    %
    
    
    16.68
    %
    
    
    13.58
    %
    
    
    17.34
    %Return on
average assets
    
    
    (0.20
    )%
    
    
    0.83
    %
    
    
    1.65
    %
    
    
    1.37
    %
    
    
    1.76
    %Capital generation
ratio1
    
    
    (10.36
    )%
    
    
    0.62
    %
    
    
    8.69
    %
    
    
    5.77
    %
    
    
    9.87
    %Average common
equity to
average assets
    
    
    9.13
    %
    
    
    9.30
    %
    
    
    9.92
    %
    
    
    10.09
    %
    
    
    10.17
    %
 1
    
    To calculate the capital generation ratio, we divide net income, less dividends paid, by the
amount of common stockholders equity at the end of the prior year.
 The non-cash impairment charges we recorded in 2008 affected our capital negatively.
 On an operating basis, capital returns declined because net income was lower.
 NET INCOME AND CAPITAL GROWTH RATES ON A REPORTED BASIS
  Percentage change
    
    2008 vs.
    
    
    2007 vs.
    
    
    2006 vs.as of December 31
    
    2007
    
    
    2006
    
    
    2005Growth in net income
    
    
    
    %
    
    
    27
    %
    
    
    (14
    )%Growth in net income, less cash dividends paid
    
    
    
    %
    
    
    57
    %
    
    
    (32
    )%Growth in common stockholders equity (period
end)
    
    
    (10
    )%
    
    
    6
    %
    
    
    4
    %Growth in common stockholders equity (on
average)
    
    
    (1
    )%
    
    
    3
    %
    
    
    12
    %
 NET INCOME AND CAPITAL GROWTH RATES ON AN OPERATING BASIS
  Percentage change
    
    2008 vs.
    
    
    2007 vs.
    
    
    2006 vs.as of December 31
    
    2007
    
    
    2006
    
    
    2005Growth in net income
    
    
    (45
    )%
    
    
    (2
    )%
    
    
    11
    %Growth in net income, less cash dividends paid
    
    
    (93
    )%
    
    
    (8
    )%
    
    
    16
    %Growth in common stockholders equity (period
end)
    
    
    (4
    )%
    
    
    2
    %
    
    
    8
    %Growth in common stockholders equity (on
average)
    
    
    2
    %
    
    
    2
    %
    
    
    13
    %
  
    
    Meet or exceed appropriate standards of
financial safety and soundness.
 
    
    Provide for future growth.
  
    
    Make loans.
 
    
    Gather deposits.
 
    
    Cover expenses.
 
    
    Invest in buildings, equipment, and technology.
 
    
    Purchase investment securities.
 
    
    Pay dividends.
 
    
    Pay taxes.
 
    
    Make acquisitions.
 
    
    Fund expansion.
 
    
    Meet other needs.
     
    
    Satisfy existing and impending
regulatory requirements.
 
    
    Meet appropriate standards of safety.
 
    
    Provide for future growth.




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##### 



36       Wilmington Trust Corporation

2008 Annual Report
      In January 2009, economic uncertainty led us to reduce the cash dividend on our common stock.
  CASH DIVIDEND
 
 As of and forthe year endedDecember 31(dollars in millions,
    
    2008
    
    
    
    
    
    
    2006except per
    
    With
    
    
    Without
    
    
    
    
    
    
    With
    
    
    Withoutshare amounts)
    
    impairment
    
    
    impairment
    
    
    2007
    
    
    impairment
    
    
    impairmentDividends declared
per common share
(annualized)
    
    $
    1.38
    
    
    $
    1.38
    
    
    $
    1.34
    
    
    $
    1.26
    
    
    $
    1.26Dividends paid
per common share
    
    $
    1.37
    
    
    $
    1.37
    
    
    $
    1.32
    
    
    $
    1.245
    
    
    $
    1.245Cost of dividends
paid (in millions)
    
    $
    92.5
    
    
    $
    92.5
    
    
    $
    89.9
    
    
    $
    85.1
    
    
    $
    85.1Dividend payout ratio
    
    
    
    %
    
    
    93.06
    %
    
    
    49.40
    %
    
    
    59.18
    %
    
    
    45.88
    %
 In 2008, we did not repurchase any shares under our currently authorized share repurchase
plan.
 CURRENT 8-MILLION-SHARE REPURCHASE PLAN ACTIVITY
 
 For the year 
ended December 31
    
    2008
    
    
    2007
    
    
    2006Number of shares repurchased
    
    
    
    
    
    
    2,000,000
    
    
    
    500,000Average price per share repurchased
    
    
    $
    
    
    
    $39.60
    
    
    
    $44.14Total cost of shares repurchased (in millions)
    
    
    $
    
    
    
    $79.2
    
    
    
    $22.1Total shares purchased under current plan
    
    
    3,043,796
    
    
    
    3,043,796
    
    
    
    1,043,796Shares available for repurchase at year-end
    
    
    4,956,204
    
    
    
    4,956,204
    
    
    
    6,956,204
   From time to time, we may choose to issue equity or debt securities to raise capital for general
corporate or other purposes.




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##### 



MD&A

37
  LIQUIDITY AND FUNDING
 We categorize liquidity risk into three levels that consider various internal and external
scenarios.
    At the ends of 2007 and 2008, we were operating within Level I parameters of our liquidity risk
management policy.
 If unfavorable market conditions persist in 2009, our liquidity position could be affected
adversely.
 SOURCES OF LIQUIDITY
 
 As of December 31 
(in millions)
    
    2008
    
    
    2007
    
    
    2006Core deposit balances
    
    $
    6,117.1
    
    
    $
    5,465.5
    
    
    $
    5,275.0National CDs 3  $100,000
    
    
    2,432.9
    
    
    
    2,392.0
    
    
    
    3,054.1Short-term borrowings
    
    
    1,617.2
    
    
    
    1,992.1
    
    
    
    1,158.8Long-term debt
    
    
    468.8
    
    
    
    267.8
    
    
    
    388.5Stockholders equity
    
    
    1,333.9
    
    
    
    1,120.3
    
    
    
    1,059.3Investment securities
    
    
    1,373.3
    
    
    
    1,846.8
    
    
    
    2,107.3Unused borrowing capacity from lines of credit
with U.S. financial institutions
    
    
    80.0
    
    
    
    85.0
    
    
    
    85.0Unused borrowing capacity secured with
collateral
from the Federal Home Loan Bank of
Pittsburgh (FHLB)
    
    
    665.3
    
    
    
    428.5
    
    
    
    861.8Unused borrowing capacity secured with
collateral
from the Federal Reserve
    
    
    4,498.4
    
    
    
    406.5
    
    
    
    378.5Total
    
    $
    18,586.9
    
    
    $
    14,004.5
    
    
    $
    14,368.3
    
    
    Support operating and investing activities.
    
    Comply with regulatory requirements.
    
    Minimize the risk of being unable to conduct business.
  
    
    Are well capitalized.
    
    Have access to diverse sources of funding.
    
    Have investment-grade credit ratings.
  
    
    Deposits.
    
    Short-term borrowings.
    
    Long-term borrowings.
    
    Cash flows from our loan portfolio.
    
    Cash flows from our investment securities portfolio.
    
    Stockholders equity.
    
    Other types of credit facilities.
  
    
    Mitigates our liquidity risk.
    
    Enables us to adjust the mix and amount of funding as we deem appropriate.




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##### 



38       Wilmington Trust Corporation

2008 Annual Report
  
    
    We follow policies established by our Asset/ Liability Committee and approved by our Board of Directors.
 
    
    Use a funds-at-risk (FAR) ratio, which we calculate monthly.
  
    
    Expresses liquid assets and other dedicated funding sources as a percentage of wholesale liabilities.
 
    
    Considers these items on three-month, six-month, and one-year time horizons.
  
    
    The types of assets and liabilities on our balance sheet.
 
    
    Our investment, loan, and deposit balances.
 
    
    Our credit ratings.
 
    
    Our reputation.
    Our credit ratings were downgraded.
   WILMINGTON TRUST CORPORATION CREDIT RATINGS
 
 MoodysFitch

    
    
    
    Investors


    
    

    StandardRatings1
    
    
    Service2

    
    & Poors3Outlook
    
    Negative
    
    Negative
    
    NegativeIssuer rating (long-term/short-term)
    
    
    
    A/F1

    
    Baa1/*
    

    BBB+/A-2Subordinated debt
    
    
    
    A

    
    
    
    Baa2
    
    
    

    BBB
 WILMINGTON TRUST COMPANY CREDIT RATINGS
 
 MoodysFitch
    
    
    Investors
    
    
    StandardRatings1
    
    
    Service2
    
    
    & Poors3Outlook
    
    Negative
    

    Negative
    
    NegativeBank financial strength
    
    
    B
    
    
    
    C
    
    
    
    *Issuer rating (long-term/short-term)
    
    
    A/F1
    
    
    
    A3
    
    
    
    A-/A-2Bank deposits (long-term/short-term)
    
    
    A+/ F1
    
    
    
    A3/P-2
    
    
    
    A-/A-2
 *
    
    No rating in this category1
    
    As of February 2, 20092
    
    As of February 3, 20093
    
    As of January 14, 2009
 Core deposits continued to be our primary source of funding.




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##### 



MD&A

39
 FUNDING SOURCES AS A PERCENTAGE OF DAILY AVERAGE BALANCES
 
 For the year ended December 31
    
    2008
    
    
    2007
    
    
    2006Percentage from core deposits:Noninterest-bearing demand deposits
    
    
    8
    %
    
    
    8
    %
    
    
    9
    %Savings deposits
    
    
    8
    
    
    
    5
    
    
    
    3Interest-bearing demand
    
    
    24
    
    
    
    26
    
    
    
    27Certificates of deposits
    
    
    13
    
    
    
    15
    
    
    
    17Total percentage from core deposits
    
    
    53
    %
    
    
    54
    %
    
    
    56
    %Percentage from non-core deposits:National funding
    
    
    28
    %
    
    
    30
    %
    
    
    31
    %Short-term borrowings
    
    
    19
    
    
    
    16
    1
    
    
    13Total percentage from non-core deposits
    
    
    47
    %
    
    
    46
    %
    
    
    44
    %
 1
    
    Excluding debt that matured in 2008. LOAN-TO-DEPOSIT RATIO
 
 For the year ended December 31
    
    2008
    
    
    2007
    
    
    2006Loan-to-deposit ratio
    
    
    1.13
    %
    
    
    1.08
    %
    
    
    0.97
    %
 Our funding strategy is to use a mix of core deposits and
non-core deposits.
 This strategy supports our Regional Banking business model.
 Using non-core deposits:
 
    
    Is a cost-effective way to add funding without having to
incur the expense of a large-scale expansion of our
branch office network.On an absolute basis, the rates on
non-core deposits tend to be higher than the rates on
core deposits  but core deposit rates do not reflect
the expense of staffing and maintaining branch offices.
 
    
    Helps us manage interest rate risk.We can match the
repricing characteristics of our floating-rate loans
more easily with non-core deposits, since they
typically mature more quickly than deposits from our
clients. We adjust the mix between national CDs and
short-term borrowings according to which offers more
favorable terms.
    
    
    Loan growth will continue to outpace core deposit growth.
 
    
    We will continue to use a blend of core and non-core deposits to support loan growth.




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##### 



40       Wilmington Trust Corporation

2008 Annual Report
  
    
    Generate cash flow.
 
    
    Help us manage interest rate risk.
 
    
    Provide collateral for deposits and other liabilities.
   
    
    Mortgage-backed securities.
 
    
    U.S. Treasury and government agency bonds.
 
    
    Corporate bonds.
 
    
    Municipal bonds.
 
    
    Other types of debt and equity securities.
  INVESTMENT SECURITIES PORTFOLIO
 Investment securities balances decreased in 2008.
 
    
    Realized and unrealized securities losses were higher.
 
    
    As holdings matured amid tightening in the capital markets, we found fewer reinvestment
opportunities that satisfied our credit and duration risk preferences.
 
    
    We had less need for securities to collateralize accounts that use short-term cash sweeps.
 We recorded $130.7 million of securities impairment charges in 2008.
  INVESTMENT SECURITIES PORTFOLIO
 
 As of and forthe year ended
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change
    
    
    ChangeDecember 31
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008 vs.
    
    
    2007 vs.(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Period-end balances
    
    $
    1,373.3
    
    
    $
    1,846.8
    
    
    $
    2,107.3
    
    
    
    (26
    )%
    
    
    (12
    )%Average balances
    
    $
    1,561.2
    
    
    $
    1,863.5
    
    
    $
    1,884.0
    
    
    
    (16
    )%
    
    
    (1
    )%Approximate cash flow generated
    
    $
    565.2
    
    
    $
    470.5
    
    
    $
    296.8
    
    
    
    20
    %
    
    
    59
    %Securities gains
    
    $
    0.1
    
    
    $
    0.3
    
    
    $
    0.4
    
    
    
    (67
    )%
    
    
    (25
    )%Securities losses
    
    $
    (130.7
    )
    
    $
    (0.2
    )
    
    $
    (0.2
    )
    
    
    
    %
    
    
    
    %Securities (losses)/
gains (net)
    
    $
    (130.6
    )
    
    $
    0.1
    
    
    $
    0.2
    
    
    
    
    %
    
    
    (50
    )%
 U.S. government agency securities, trust-preferred securities, and preferred stock accounted for
most of the 2008 changes in the portfolios composition on a percentage basis.




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##### 



MD&A

41
 COMPOSITION OF INVESTMENT SECURITIES PORTFOLIO
 
 2008
    
    
    2007Dollar
    
    
    Percent of
    
    
    Dollar
    
    
    Percent ofAt December 31 (dollars in millions)
    
    amount
    
    
    portfolio
    
    
    amount
    
    
    portfolioCollateralized mortgage obligations
    
    $
    169.0
    
    
    
    12
    %
    
    $
    210.7
    
    
    
    11
    %Mortgage-backed securities
    
    
    491.5
    
    
    
    36
    
    
    
    519.9
    
    
    
    28Corporate bonds
(trust-preferred securities)
    
    
    160.2
    
    
    
    12
    
    
    
    317.7
    
    
    
    17U.S. government agency securities
    
    
    463.0
    
    
    
    34
    
    
    
    646.5
    
    
    
    35U.S. Treasury securities
    
    
    41.4
    
    
    
    3
    
    
    
    60.2
    
    
    
    3Preferred stock
    
    
    17.1
    
    
    
    1
    
    
    
    44.9
    
    
    
    3Municipal bonds
    
    
    6.9
    
    
    
    1
    
    
    
    17.8
    
    
    
    1Other securities
    
    
    24.2
    
    
    
    1
    
    
    
    29.1
    
    
    
    2Total
    
    $
    1,373.3
    
    
    
    100
    %
    
    $
    1,846.8
    
    
    
    100
    %Percentage invested in
fixed rate instruments
    
    $
    1,290.9
    
    
    
    94
    %
    
    $
    1,514.4
    
    
    
    82
    %
 There were no subprime residential mortgages in the underlying collateral of securities in
the portfolio in 2007 and 2008.
 Attrition in the portfolio caused its average life and duration to change.
 AVERAGE LIFE
 
 At December 31 (in years)
    
    2008
    
    
    2007
    
    
    2006Mortgage-backed instruments
    
    
    2.45
    
    
    
    3.48
    
    
    
    4.10Total portfolio
    
    
    6.32
    
    
    
    4.45
    
    
    
    4.93DURATIONAt December 31 (in years)
    
    2008
    
    
    2007
    
    
    2006Mortgage-backed instruments
    
    
    1.37
    
    
    
    3.20
    
    
    
    3.80Total portfolio
    
    
    (0.93
    )
    
    
    1.97
    
    
    
    2.24
   
    
    Residential mortgages typically have 15- to 30-year terms.
 
    
    In comparison, almost all of the mortgage-backed instruments in our securities portfolio are fixed rate instruments with terms of
15 years or less.




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##### 



42       Wilmington Trust Corporation

2008 Annual Report
  
    
    Credit risk:The risk that borrowers might be unable to repay their loans, which could increase our loan losses and our provision for loan losses.
 
    
    Interest rate risk:The risk that fluctuations in market interest rates could decrease the profitability of floating rate loans, compress the net
interest margin, and reduce net interest income.
 
    
    Financial market risk:The risk that volatility in the financial markets might reduce the market valuations of assets in:
 
    
    Client portfolios, which could decrease fee income.
 
    
    Our investment securities portfolio, which could require us to record securities losses.
 
    
    Economic risk:The risk that economic conditions might affect our ability to conduct business.
   
    
    Provides geographic, product, and client diversification.
 
    
    Produces two balanced and diversified sources of revenue (net interest income and noninterest income).
 
 RISK
 
  Lending money is inherently risky.
 Adverse economic conditions, especially within the Regional Banking geographic footprint, can
increase the degree of repayment risk.
 Some of the loans we make carry a higher degree of repayment risk than others.
 Market interest rates can affect loan profitability and increase repayment risk.
 Market interest rates present more risk to us than inflation.
 Changes in market interest rates, and the pace at which they occur, can increase or decrease our
net interest margin and net interest income.
 Securities in our investment portfolio could decline in value.
 Our noninterest income could be reduced by decreases in financial market valuations.
 Circumstances beyond our control could reduce demand for our services and negatively affect our
ability to conduct business.
 Competition could affect our ability to retain existing clients or attract new clients.




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##### 



MD&A

43
 The competitive environment could affect our business negatively.
 Changes in accounting rules and interpretations could affect our reported earnings and
operating income significantly.
 The value of goodwill or intangible assets on our balance sheet could decline.
 Insufficient funding could impede our ability to conduct business.
 Unfavorable credit ratings could affect our business negatively.
 Making and integrating acquisitions present a degree of risk.
 We are subject to a variety of legal and regulatory restrictions.
 We are exposed to a variety of operational risks.
 Negative public opinion could damage our reputation.
 Disruption in the capital and credit markets has created illiquidity and uncertainty.
 The failure of other financial institutions could affect us adversely.
 There can be no assurance that recent U.S. government intervention will help stabilize the U.S.
financial system.
  
    
    Focusing on long-term relationships with clients.
 
    
    Having extensive knowledge of the clients and markets we serve.
 
    
    Providing responsive, personalized, and customized services.
 
    
    Attracting and retaining highly qualified staff.
 
    
    Offering competitive pricing.
 
    
    Developing and marketing new and innovative products and services.
 
    
    Deploying technology that improves efficiency and client service.




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##### 



44       Wilmington Trust Corporation

2008 Annual Report
 
      
    
    It presents loan losses in the context of our lending activities overall.
 
    
    As loan balances increase, even if net charge-off dollar amounts rise, the net charge-off ratio may not.
 
    
    Other measures of credit quality do not convey the nature of our client relationships, our efforts to
help clients resolve problems, and our pursuit of repayment even after we classify a loan as nonaccruing or charge it off.
 Our ability to pay dividends on our common stock depends primarily on our financial results and
strategies for managing capital.
  ASSET
QUALITY AND CREDIT RISK
 COMPOSITION OF ASSETS
 
 At December 31
    
    2008
    
    
    2007
    
    
    2006Percentage in loans
    
    
    78
    %
    
    
    74
    %
    
    
    73
    %Percentage in investment securities
    
    
    11
    %
    
    
    16
    %
    
    
    19
    %Percentage in other types of assets
    
    
    11
    %
    
    
    10
    %
    
    
    8
    %
  
    
    Loan losses, as well as nonperforming, substandard, and watch-listed loans, were
significantly higher than in recent years.We discuss the quality of our loan portfolio
elsewhere in this section.
 
    
    Sharp declines in the market values of some of the instruments in our investment
securities portfolio led us to record securities losses that totaled $130.7 million.For
more information about this, read our discussion of the portfolio in the Capital
resources section of this report and Note 6, Investment securities, in this report.
 
    
    The carrying value of our investment in affiliate money manager Roxbury Capital
Management declined, and we recorded a goodwill impairment charge of $66.9 million.For
more information about this, read the Affiliate money managers section of this report.
  CREDIT RISK
 One of our primary risks is credit risk (the risk that borrowers will be unable to repay their
loans).
 
    
    Employ rigorous loan underwriting standards and apply them consistently.
    
    Prefer to grow loan balances ourselves, using our own underwriting standards, instead
of purchasing loans or acquiring other banks.
    
    Make the majority of our loans within Regional Bankings mid-Atlantic geographic footprint, in markets we know well.
    
    Focus on building long-term relationships with clients, not merely increasing transaction volumes.
    
    Maintain a loan portfolio that is diversified among different types of commercial and consumer loans.




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##### 



MD&A
    
    
    
    
    
    45



    
    Monitor the portfolio to identify potential problems and to avoid disproportionately high
concentrations in any single industry sector or to any one borrower.
    
    Regularly review all past-due loans, loans not being repaid according to contractual terms,
and loans we doubt will be paid on a timely basis.
    
    Typically obtain collateral and personal guarantees from commercial loan clients.
 CREDIT QUALITY IN 2008 AND 2007
 Economic conditions deteriorated in the mid-Atlantic region.
 The number of troubled credits in the portfolio increased, but remained at a manageable level.
 In the internal risk rating analysis, the percentage of loans with pass ratings decreased to
90.80%.
 We believe the increase in the number of troubled credits resulted from economic pressures, not
underwriting inadequacies.
 CREDIT QUALITY OVERVIEW
 
 At December 31(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Total loans outstanding
    
    $
    9,619.1
    
    
    $
    8,475.8
    
    
    $
    8,094.9
    
    
    $
    7,397.7
    
    
    $
    6,763.0Nonaccruing loans
    
    $
    196.3
    
    
    $
    47.8
    
    
    $
    31.0
    
    
    $
    39.3
    
    
    $
    56.4Renegotiated loans
    
    $
    0.1
    
    
    $
    23.7
    
    
    $
    
    
    
    $
    4.7
    *
    
    $
    5.2
    *Other real estate owned
    
    $
    14.5
    
    
    $
    9.1
    
    
    $
    4.8
    
    
    $
    0.2
    
    
    $
    0.2Loans past due
90 days or more
    
    $
    34.3
    
    
    $
    13.7
    
    
    $
    5.8
    
    
    $
    4.1
    
    
    $
    5.5Net charge-offs
    
    $
    52.4
    
    
    $
    21.3
    
    
    $
    18.5
    
    
    $
    10.1
    
    
    $
    15.8Net charge-off ratio
    
    
    0.57
    %
    
    
    0.26
    %
    
    
    0.24
    %
    
    
    0.14
    %
    
    
    0.24
    %
 *
    
    Restructured as nonaccruing. Due to
the economic environment, non accruing loans, past-due loans, net charge-offs, the net
charge-off ratio, and other real estate owned increased significantly from their 2007 levels.
 On a percentage basis, the composition of the loan
portfolio remained well diversified and relatively
unchanged.
  
    
    Pass:Loans with no current or potential problems.
 
    
    Watchlisted:Accruing loans that are potentially problematic.
 
    
    Substandard:Accruing or nonaccruing loans with some probability of loss.
 
    
    Doubtful:Nonaccruing loans with a high probability of loss.
   INTERNAL RISK RATING CLASSIFICATIONS
 
 At December 31
    
    2008
    
    
    2007
    
    
    2006Pass
    
    
    90.80
    %
    
    
    96.03
    %
    
    
    97.39
    %Watchlisted
    
    
    5.20
    %
    
    
    2.69
    %
    
    
    1.82
    %Substandard
    
    
    3.99
    %
    
    
    1.27
    %
    
    
    0.79
    %Doubtful
    
    
    0.01
    %
    
    
    0.01
    %
    
    
    
    %
  
    
    Staff in the Regional Banking business set underwriting standards and make credit policy and lending decisions.
 
    
    Staff in the Finance Department perform the internal risk rating analysis, conduct other
reviews of the loan portfolio, and calculate the provision and reserve for loan losses.




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##### 



46       Wilmington Trust Corporation

2008 Annual Report



    
    We work with borrowers to resolve repayment problems.
 
    
    We may renegotiate loan terms or explore other repayment options.
    
    
    Negotiations with borrowers can affect the timing and extent of charge-offs, or averts them altogether.
 
    
    Associated legal proceedings can affect the timing and amount of charge-offs or recoveries.
 NET CHARGE-OFFS, LOAN LOSS PROVISION, AND LOAN LOSS RESERVE
 The
weaker economy in the mid-Atlantic region drove the net charge-off ratio for 2008 to 57 basis
points.
  QUARTERLY NET CHARGE-OFF RATIOS
 
 (not annualized)
    
    2008 Q1
    
    2008 Q2
    
    2008 Q3
    
    2008 Q40.05
    %
    
    
    0.13
    %
    
    
    0.11
    %
    
    
    0.26
    %
 Net charge-offs for 2008 were $52.4 million and split almost evenly between the commercial and
retail portfolios.
 One
loan accounted for approximately 49% of 2008 commercial net charge-offs.
 Three
other loans accounted for most of the rest of 2008 commercial net charge-offs:
 
    
    A commercial construction loan for a luxury home development in Montgomery County,
Pennsylvania. This loan had been nonaccruing since the 2007 third quarter. In the
2008 second quarter, we foreclosed on this property, charged of a portion of the
loan, and recorded the remainder as other real estate owned.
 
    
    A commercial loan to a Pennsylvania-based textile manufacturer.
 
    
    A commercial loan to a Delaware-based sports equipment retailer.
 Automobile loans made indirectly (through automobile dealers) accounted for most of the consumer
and other retail net charge-offs in 2008 and 2007.
 Changes in the status of commercial and consumer loans led to increases in the provision and
reserve for loan losses.




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##### 



MD&A
    
    
    
    
    
    47
 ANALYSIS OF NET CHARGE-OFFS AND THE LOAN LOSS RESERVE
 
 For the year endedDecember 31(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Loan loss reserve at
start of year
    
    $
    101.1
    
    
    $
    94.2
    
    
    $
    91.4
    
    
    $
    89.7
    
    
    $
    89.9Loans charged off:Commercial, financial,
and agricultural
    
    $
    12.6
    
    
    $
    4.3
    
    
    $
    10.8
    
    
    $
    4.9
    
    
    $
    11.0Commercial real
estate  construction
    
    
    13.5
    
    
    
    2.9
    
    
    
    
    
    
    
    
    
    
    
    Commercial mortgage
    
    
    2.0
    
    
    
    1.3
    
    
    
    0.3
    
    
    
    
    
    
    
    Residential mortgage
    
    
    0.4
    
    
    
    0.1
    
    
    
    
    
    
    
    0.1
    
    
    
    0.1Consumer and
other retail
    
    
    30.5
    
    
    
    20.8
    
    
    
    13.5
    
    
    
    12.2
    
    
    
    10.0Total loans charged off
    
    $
    59.0
    
    
    $
    29.4
    
    
    $
    24.6
    
    
    $
    17.2
    
    
    $
    21.1Recoveries on loans
previously charged off:Commercial, financial,
and agricultural
    
    $
    0.7
    
    
    $
    1.0
    
    
    $
    0.6
    
    
    $
    3.3
    
    
    $
    1.4Commercial real
estate  construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial mortgage
    
    
    0.8
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    0.8Residential mortgage
    
    
    0.1
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    Consumer and
other retail
    
    
    5.0
    
    
    
    6.9
    
    
    
    5.4
    
    
    
    3.8
    
    
    
    3.1Total recoveries
    
    $
    6.6
    
    
    $
    8.1
    
    
    $
    6.1
    
    
    $
    7.1
    
    
    $
    5.3Net loans charged off:Commercial, financial,
and agricultural
    
    $
    11.9
    
    
    $
    3.3
    
    
    $
    10.2
    
    
    $
    1.6
    
    
    $
    9.6Commercial real
estate  construction
    
    
    13.5
    
    
    
    2.9
    
    
    
    
    
    
    
    
    
    
    
    Commercial mortgage
    
    
    1.2
    
    
    
    1.1
    
    
    
    0.3
    
    
    
    
    
    
    
    (0.8
    )Residential mortgage
    
    
    0.3
    
    
    
    0.1
    
    
    
    (0.1
    )
    
    
    0.1
    
    
    
    0.1Consumer and
other retail
    
    
    25.5
    
    
    
    13.9
    
    
    
    8.1
    
    
    
    8.4
    
    
    
    6.9Total net charge-offs
    
    $
    52.4
    
    
    $
    21.3
    
    
    $
    18.5
    
    
    $
    10.1
    
    
    $
    15.8Transfers from/(to)
unfunded loan
commitments
    
    $
    (7.1
    )
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Provision for loan losses
    
    $
    115.5
    
    
    $
    28.2
    
    
    $
    21.3
    
    
    $
    11.8
    
    
    $
    15.6Loan loss reserve at
end of year
    
    $
    157.1
    
    
    $
    101.1
    
    
    $
    94.2
    
    
    $
    91.4
    
    
    $
    89.7Net charge-off ratio
(average balances)
    
    
    0.57
    %
    
    
    0.26
    %
    
    
    0.24
    %
    
    
    0.14
    %
    
    
    0.24
    %Loan loss reserve ratio
    
    
    1.63
    %
    
    
    1.19
    %
    
    
    1.16
    %
    
    
    1.24
    %
    
    
    1.33
    %Reserve for unfunded
loan commitments
in other liabilities*
    
    $
    7.1
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
 *
    
    We transferred the reserve for unfunded loan
commitments from the reserve into a separate liability
account (other liabilities) as of December 31, to
comply with current accounting guidelines. We did not
reclassify prior periods.    
    
    Loan growth.
 
    
    Internal risk rating classifications.
 
    
    Payment delinquency patterns.
 
    
    Market interest rates.
 
    
    Regulatory guidelines.
 
    
    Industry conditions and trends.
 
    
    Economic conditions in the mid-Atlantic region.




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##### 



48       Wilmington Trust Corporation

2008 Annual Report
     
    
    Nonaccruing loans.
 
    
    Renegotiated loans.
 
    
    Other real estate owned (OREO).
   LOAN LOSS RESERVE ALLOCATION
 
 At December 31(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Commercial, financial,
and agricultural
    
    $
    57.5
    
    
    $
    33.7
    
    
    $
    36.3
    
    
    $
    38.5
    
    
    $
    43.4Real estate  construction
    
    
    40.1
    
    
    
    25.7
    
    
    
    19.2
    
    
    
    12.7
    
    
    
    7.8Commercial mortgage
    
    
    18.6
    
    
    
    15.9
    
    
    
    14.5
    
    
    
    15.4
    
    
    
    14.8Residential mortgage
    
    
    2.3
    
    
    
    1.4
    
    
    
    1.3
    
    
    
    1.3
    
    
    
    1.2Consumer
    
    
    30.3
    
    
    
    13.4
    
    
    
    11.3
    
    
    
    11.2
    
    
    
    10.4Secured with investments
    
    
    6.2
    
    
    
    4.9
    
    
    
    5.5
    
    
    
    6.2
    
    
    
    6.0Unallocated
    
    
    2.1
    
    
    
    6.1
    
    
    
    6.1
    
    
    
    6.1
    
    
    
    6.1Total
    
    $
    157.1
    
    
    $
    101.1
    
    
    $
    94.2
    
    
    $
    91.4
    
    
    $
    89.7
 EACH CATEGORY OF LOANS AS A PERCENTAGE OF TOTAL NET LOANS
 
 At December 31(in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Commercial, financial,
and agricultural
    
    
    31
    %
    
    
    31
    %
    
    
    31
    %
    
    
    33
    %
    
    
    37
    %Real estate
 construction
    
    
    20
    
    
    
    21
    
    
    
    21
    
    
    
    17
    
    
    
    11Commercial mortgage
    
    
    19
    
    
    
    17
    
    
    
    16
    
    
    
    17
    
    
    
    19Residential mortgage
    
    
    6
    
    
    
    6
    
    
    
    6
    
    
    
    6
    
    
    
    6Consumer
    
    
    18
    
    
    
    19
    
    
    
    19
    
    
    
    19
    
    
    
    18Secured with investments
    
    
    6
    
    
    
    6
    
    
    
    7
    
    
    
    8
    
    
    
    9Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
 NONPERFORMING LOANS
 Most of the increase in nonaccruing loans occurred in the 2008 fourth quarter, when additional
concerns emerged about the health of the mid-Atlantic regional housing market.
 Commercial construction loans to several residential housing developers accounted for approximately
$78.4 million of the 2008 increase in nonaccruing loans.




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##### 



MD&A
    
    
    
    
    
    49
 Three loans accounted for most of the increase in nonaccruing commercial mortgage loans.
 Most of the increase in nonaccruing consumer and other retail loans was concentrated among three
loans to WAS clients.
 Almost all of the 2008 decrease in renegotiated loans, as well as almost all of the 2007 increase
in renegotiated loans, involved one project.
 In early 2008, we sold two properties recorded as OREO and recouped $8.9 million.
 We foreclosed on two other properties in 2008.
     
    
    We gain control of the situation.
 
    
    Negotiations with the borrower cease.
 
    
    Legal expenses associated with collection efforts cease.
 
    
    We gain the ability to facilitate disposition of these properties and recover our cash.
 
    
    We can then redeploy that cash into loans or other earning assets.




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##### 



50       Wilmington Trust Corporation

2008 Annual Report
 
   
    
    We think have a high probability of becoming nonperforming loans in the future.
 
    
    Were performing in accordance with their contractual terms, or were fewer than 90 days
past due, when we classified them as serious-doubt loans.
  NONPERFORMING LOANS
 
 At December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Nonaccruing loans:Commercial, financial, and agricultural
    
    $
    41.2
    
    
    $
    23.8
    
    
    $
    13.7Commercial real estate  construction
    
    
    112.7
    
    
    
    9.9
    
    
    
    Commercial mortgage
    
    
    21.7
    
    
    
    7.1
    
    
    
    8.5Consumer and other retail
    
    
    20.7
    
    
    
    7.0
    
    
    
    8.8Total nonaccruing loans
    
    $
    196.3
    
    
    $
    47.8
    
    
    $
    31.0Renegotiated loans
    
    
    0.1
    
    
    
    23.7
    
    
    
    Total nonaccruing and renegotiated loans
    
    $
    196.4
    
    
    $
    71.5
    
    
    $
    31.0Other real estate owned (OREO)
    
    
    14.5
    
    
    
    9.1
    
    
    
    4.8Total nonperforming loans
    
    $
    210.9
    
    
    $
    80.6
    
    
    $
    35.8Ratio of total nonperforming loans to
total loans outstanding
    
    
    2.19
    %
    
    
    0.95
    %
    
    
    0.44
    %
 PAST-DUE LOANS
 
 Consumer and other retail loans accounted for half of the 2008 and 2007 increases in loans past due
90 days or more.
 LOANS PAST DUE 90 DAYS OR MORE
 
 At December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Commercial, financial, and agricultural
    
    $
    8.4
    
    
    $
    2.4
    
    
    $
    1.5Commercial real estate  construction
    
    
    4.8
    
    
    
    0.7
    
    
    
    Commercial mortgage
    
    
    1.6
    
    
    
    1.3
    
    
    
    0.2Consumer and other retail
    
    
    19.5
    
    
    
    9.3
    
    
    
    4.1Total loans past due 90 days or more
    
    $
    34.3
    
    
    $
    13.7
    
    
    $
    5.8Ratio of loans past due 90 days or more to
total loans outstanding
    
    
    0.36
    %
    
    
    0.16
    %
    
    
    0.07
    %
 SERIOUS-DOUBT LOANS
 
 Economic
uncertainty in 2008 led to an increase in serious-doubt loans.
 SERIOUS-DOUBT LOANS
 
 At December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Commercial, financial, and agricultural
    
    $
    82.9
    
    
    $
    11.6
    
    
    $
    13.4Commercial real estate  construction
    
    
    8.4
    
    
    
    
    
    
    
    1.4Commercial mortgage
    
    
    15.0
    
    
    
    
    
    
    
    1.0Consumer and other retail
    
    
    0.6
    
    
    
    
    
    
    
    Contingency allocation
    
    
    3.0
    
    
    
    3.0
    
    
    
    3.0Total serious-doubt loans
    
    $
    109.9
    
    
    $
    14.6
    
    
    $
    18.8Ratio of serious-doubt loans to
total loans outstanding
    
    
    1.14
    %
    
    
    0.15
    %
    
    
    0.23
    %




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##### 



MD&A
    
    
    
    
    
    51
 CREDIT EXPOSURE TO THE COMMERCIAL REAL ESTATE INDUSTRY
 Commercial real estate-related loan balances
have increased on a dollar-amount basis, but have remained relatively unchanged as a percentage of
total loans outstanding.
 The
growth in commercial real estate-construction and commercial mortgage loans between 2006 and
2008 coincided with a period of tremendous expansion in the Regional Banking business in
southeastern Pennsylvania, New Jersey, and Maryland.
 COMMERCIAL REAL ESTATE EXPOSURE IN DOLLARS
 At December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Commercial real estate  construction loans
    
    $
    1,923.8
    
    
    $
    1,780.4
    
    
    $
    1,663.9Commercial mortgage loans
    
    
    1,870.2
    
    
    
    1,463.4
    
    
    
    1,296.1Total
    
    $
    3,794.0
    
    
    $
    3,243.8
    
    
    $
    2,960.0
 COMMERCIAL REAL ESTATE EXPOSURE AS A PERCENTAGE OF TOTAL NET LOANS
 At December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Commercial real estate  construction loans
    
    
    20
    %
    
    
    21
    %
    
    
    21
    %Commercial mortgage loans
    
    
    19
    %
    
    
    17
    %
    
    
    16
    %Total
    
    
    39
    %
    
    
    38
    %
    
    
    37
    %
 We have a high degree of confidence in our construction
loan underwriting standards.
 
    
    Conduct separate evaluations of the projects finances
and the
borrowers finances.
    
    Stress-test the projects estimated cash flows
in a variety of economic
scenarios, including changes in absorption rates and financing costs.




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##### 



52       Wilmington Trust Corporation

2008 Annual Report
  
    
    Our commercial construction-real estate and commercial mortgage lending activities.
    
    Economic dynamics in the mid-Atlantic region.
   COMMERCIAL CONSTRUCTION LOAN UNDERWRITING STANDARDS
 Maximum term:
    
    Two years on unimproved land
Three years on land developmentTarget loan size:
    
    $1 million to $10 millionMaximum loan-to-value requirements:
    
    65% on unimproved land

75% on land development

80% on residential construction
and income-producing
propertiesConstruction limits on residential projects:
    
    Pre-sold inventory plus a
maximum of: 6 unsold single-family homes or 10 unsold townhomes
  CREDIT EXPOSURE TO THE AUTOMOBILE INDUSTRY
 We had approximately $450.3 million in commercial loans
outstanding to automobile dealers at year-end 2008.
 Approximately
$234.0 million of this amount was in floor plan (inventory) lending.
 At year-end 2008, approximately $113.2 of the $450.3 million in automobile dealer outstandings was
classified as watchlisted or substandard in the internal risk rating analysis.
 We had
approximately $817.3 million in indirect automobile loans outstanding at year-end 2008.




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##### 



MD&A
    
    
    
    
    
    53


INTEREST RATE RISK
  
    
    Maintain a mix of assets and liabilities that give us flexibility in a dynamic
marketplace.
    
    Manage the relative proportion of fixed and floating rate assets and liabilities so we can
manage their repricing characteristics as closely as possible.
    
    Use a blend of core deposits and national funding.For more information about this, read the
liquidity and funding discussion in this report.
    
    Manage the size of our investment securities portfolio and the mix of instruments in it.
For more information about this, read the investment securities discussion in this report.
    
    Sell most newly originated fixed rate residential mortgages into the secondary market.By
limiting the fixed rate residential mortgages in our loan portfolio, we eliminate much of the
long-term risk inherent in instruments with fixed rates and 15- to 30-year maturities.
    
    Prefer to manage our exposure to fixed rate mortgages in our investment securities portfolio.
The mortgage-backed instruments in the portfolio typically have shorter maturity and duration
characteristics than a portfolio of individual mortgage loans.
    
    Use off-balance-sheet derivative instruments.For more information about this, read Note 15,
Derivative and hedging activities, and the discussion of off-balance-sheet arrangements and
contractual obligations in this report.
 INTEREST RATE RISK IN 2008 AND 2007
 The
market interest rate environment pressured our net interest margin.
 The magnitude of the rate cuts, and the pace at which they occurred, created most of the pressure.
  NET INTEREST MARGIN
 For the year ended December 31
    
    2008
    
    
    2007
    
    
    2006Net interest margin
    
    
    3.28
    %
    
    
    3.67
    %
    
    
    3.79
    %
 The 2008 margin did not reflect the full effect of the
FOMCs 2008 rate cuts.
   
    
    The yields we earn on assets like loans and investments.
    
    The rates we pay on liabilities like deposits and other borrowings.




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##### 



54       Wilmington Trust Corporation

2008 Annual Report



    
    We have more floating rate assets than floating rate liabilities.
    
    Following changes in market interest rates, our assets reprice more quickly than our
liabilities.
    
    Most of our floating rate loan price adjustments occur within 30 to 45 days of a rate change.
    
    It typically takes 90 to 120 days for the pricing on our liabilities to adjust after a rate
change.
    
    Some categories of core deposits may take even longer to reprice, depending on their
maturities.
  
    
    Our net interest income is more likely to increase in a rising market interest
rate environment.
    
    Our net interest income is more likely to decrease in a declining market interest rate
environment.
  TARGET FEDERAL FUNDS RATE CHANGES SINCE 2007
 At
January 1, 2007:
    
    
    5.25
    %September 18, 2007:
    
    
    4.75
    %October 31, 2007:
    
    
    4.50
    %December 11, 2007:
    
    
    4.25
    %January 22, 2008:
    
    
    3.50
    %January 30, 2008
    
    
    3.00
    %March 18, 2008:
    
    
    2.25
    %April 30, 2008:
    
    
    2.00
    %October 8, 2008:
    
    
    1.50
    %October 29, 2008:
    
    
    1.00
    %December 16, 2008:
    
    Zero to 0.25%
 Our use of non-core deposits helped mitigate the effects of the difficult interest rate
environment.
 LOAN AND DEPOSIT PRICING CHARACTERISTICS
AS A PERCENTAGE OF TOTAL BALANCES
 At December 31
    
    2008
    
    
    2007
    
    
    2006Total loans outstanding with floating rates
    
    
    74
    %
    
    
    71
    %
    
    
    74
    %Commercial loans with floating rates
    
    
    88
    %
    
    
    85
    %
    
    
    89
    %Floating
rate commercial loans tied to a prime rate
    
    
    57
    %
    
    
    59
    %
    
    
    61
    %Floating
rate commercial loans tied to the 30-day LIBOR
    
    
    37
    %
    
    
    36
    %
    
    
    35
    %National CDs ≥ $100,000 and short-term
borrowings maturing in ≤ 90 days
    
    
    83
    %
    
    
    78
    %1
    
    
    67
    %
 
 1
    
    Excludes debt that matured in 2008.  The market interest rate environment affected our net
interest income negatively and prevented the benefits of
record-high loan growth in 2008 from reaching our bottom
line.




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##### 



MD&A
    
    
    
    
    
    55


CHANGES IN INTEREST INCOME AND EXPENSE DUE TO VOLUME AND RATE
 2008/2007
    
    2007/2006Increase/(decrease)
    
    
    Increase/(decrease)due to change in
    
    
    due to change in(in millions)
    
    Volume2
    
    
    Rate3
    
    
    Total
    
    
    Volume2
    
    
    Rate3
    
    
    TotalInterest incomeTime deposits in other banks
    
    $
    4.4
    
    
    $
    (3.5
    )
    
    $
    0.9
    
    
    $
    0.1
    
    
    $
    0.1
    
    
    $
    0.2Federal funds sold and securities
purchased under agreements
to resell
    
    
    (0.1
    )
    
    
    (0.9
    )
    
    
    (1.0
    )
    
    
    (0.8
    )
    
    
    (0.1
    )
    
    
    (0.9
    )Total short-term investments
    
    
    4.3
    
    
    
    (4.4
    )
    
    
    (0.1
    )
    
    
    (0.7
    )
    
    
    
    
    
    
    (0.7
    )U.S. Treasury securities
    
    
    (1.6
    )
    
    
    (0.6
    )
    
    
    (2.2
    )
    
    
    (2.1
    )
    
    
    0.1
    
    
    
    (2.0
    )Government agency securities
    
    
    (8.3
    )
    
    
    
    
    
    
    (8.3
    )
    
    
    7.3
    
    
    
    3.6
    
    
    
    10.9State and municipal securities*
    
    
    (0.4
    )
    
    
    
    
    
    
    (0.4
    )
    
    
    0.4
    
    
    
    (0.2
    )
    
    
    0.2Preferred stock*
    
    
    (2.1
    )
    
    
    
    
    
    
    (2.1
    )
    
    
    (1.7
    )
    
    
    0.1
    
    
    
    (1.6
    )Mortgage-backed securities
    
    
    1.6
    
    
    
    1.7
    
    
    
    3.3
    
    
    
    (5.2
    )
    
    
    0.7
    
    
    
    (4.5
    )Other securities*
    
    
    (1.4
    )
    
    
    (5.8
    )
    
    
    (7.2
    )
    
    
    (0.5
    )
    
    
    1.0
    
    
    
    0.5Total investment securities
    
    
    (12.2
    )
    
    
    (4.7
    )
    
    
    (16.9
    )
    
    
    (1.8
    )
    
    
    5.3
    
    
    
    3.5FHLB & FRB
stock, at cost1
    
    
    0.4
    
    
    
    (0.1
    )
    
    
    0.3
    
    
    
    0.2
    
    
    
    (0.4
    )
    
    
    (0.2
    )Commercial, financial,
and agricultural*
    
    
    25.7
    
    
    
    (54.3
    )
    
    
    (28.6
    )
    
    
    3.8
    
    
    
    0.6
    
    
    
    4.4Real estate-construction
    
    
    10.7
    
    
    
    (52.8
    )
    
    
    (42.1
    )
    
    
    18.2
    
    
    
    (2.3
    )
    
    
    15.9Commercial mortgage*
    
    
    24.7
    
    
    
    (34.1
    )
    
    
    (9.4
    )
    
    
    11.1
    
    
    
    0.9
    
    
    
    12.0Total commercial loans
    
    
    61.1
    
    
    
    (141.2
    )
    
    
    (80.1
    )
    
    
    33.1
    
    
    
    (0.8
    )
    
    
    32.3Residential mortgage
    
    
    0.3
    
    
    
    (0.8
    )
    
    
    (0.5
    )
    
    
    3.5
    
    
    
    0.3
    
    
    
    3.8Installment loans to individuals
    
    
    15.0
    
    
    
    (17.3
    )
    
    
    (2.3
    )
    
    
    4.9
    
    
    
    3.7
    
    
    
    8.6Loans secured with investments
    
    
    0.7
    
    
    
    (13.0
    )
    
    
    (12.3
    )
    
    
    (1.4
    )
    
    
    1.1
    
    
    
    (0.3
    )Total retail loans
    
    
    16.0
    
    
    
    (31.1
    )
    
    
    (15.1
    )
    
    
    7.0
    
    
    
    5.1
    
    
    
    12.1Total loans net of
unearned income
    
    
    77.1
    
    
    
    (172.3
    )
    
    
    (95.2
    )
    
    
    40.1
    
    
    
    4.3
    
    
    
    44.4Total interest income
    
    $
    69.6
    
    
    $
    (181.5
    )
    
    $
    (111.9
    )
    
    $
    37.8
    
    
    $
    9.2
    
    
    $
    47.0Interest expense:Savings deposits
    
    $
    6.6
    
    
    $
    (0.7
    )
    
    $
    5.9
    
    
    $
    0.8
    
    
    $
    9.7
    
    
    $
    10.5Interest-bearing demand deposits
    
    
    1.0
    
    
    
    (15.8
    )
    
    
    (14.8
    )
    
    
    0.4
    
    
    
    6.8
    
    
    
    7.2Certificates under $100,000
    
    
    (0.2
    )
    
    
    (8.2
    )
    
    
    (8.4
    )
    
    
    1.1
    
    
    
    6.0
    
    
    
    7.1Local certificates $100,000
and over
    
    
    (5.4
    )
    
    
    (3.5
    )
    
    
    (8.9
    )
    
    
    (4.9
    )
    
    
    1.4
    
    
    
    (3.5
    )Total core interest-bearing deposits
    
    
    2.0
    
    
    
    (28.2
    )
    
    
    (26.2
    )
    
    
    (2.6
    )
    
    
    23.9
    
    
    
    21.3National certificates $100,000
and over
    
    
    4.8
    
    
    
    (52.9
    )
    
    
    (48.1
    )
    
    
    (2.4
    )
    
    
    6.8
    
    
    
    4.4Total interest-bearing deposits
    
    
    6.8
    
    
    
    (81.1
    )
    
    
    (74.3
    )
    
    
    (5.0
    )
    
    
    30.7
    
    
    
    25.7Federal funds purchased and
securities sold under
agreements to repurchase
    
    
    16.1
    
    
    
    (46.5
    )
    
    
    (30.4
    )
    
    
    16.6
    
    
    
    (1.4
    )
    
    
    15.2U.S. Treasury demand deposits
    
    
    0.4
    
    
    
    (0.7
    )
    
    
    (0.3
    )
    
    
    (0.1
    )
    
    
    0.1
    
    
    
    Line of credit & other debt
    
    
    (3.3
    )
    
    
    (1.1
    )
    
    
    (4.4
    )
    
    
    5.1
    
    
    
    2.3
    
    
    
    7.4Total short-term borrowings
    
    
    13.2
    
    
    
    (48.3
    )
    
    
    (35.1
    )
    
    
    21.6
    
    
    
    1.0
    
    
    
    22.6Long-term debt
    
    
    7.0
    
    
    
    2.8
    
    
    
    9.8
    
    
    
    (5.8
    )
    
    
    (0.9
    )
    
    
    (6.7
    )Total interest expense
    
    $
    27.0
    
    
    $
    (126.6
    )
    
    $
    (99.6
    )
    
    $
    10.8
    
    
    $
    30.8
    
    
    $
    41.6Changes in net
interest income
    
    $
    42.6
    
    
    $
    (54.9
    )
    
    $
    (12.3
    )
    
    $
    27.0
    
    
    $
    (21.6
    )
    
    $
    5.4
 
 *
    
    We calculate variances on a fully tax-equivalent basis, which includes the effects of
any disallowed interest expense.1
    
    Federal Home Loan Bank and Federal Reserve Bank stock2
    
    We define changes attributable to volume as changes in average balances multiplied
by the prior years rate.3
    
    We define changes attributable to rate as changes in rate multiplied by the average
balances in the applicable period of the prior year. A change in rate/volume (change in rate
multiplied by change in volume) has been allocated to the change in rate. WILMINGTON TRUST PRIME LENDING RATE
 As of and for the year ended December 31
    
    2008
    
    
    2007
    
    
    2006At year-end
    
    
    4.00
    %
    
    
    7.25
    %
    
    
    8.25
    %On average
    
    
    5.15
    %
    
    
    8.07
    %
    
    
    7.96
    %




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##### 



56       Wilmington Trust Corporation

2008 Annual Report
       In April 2008, after the FOMC cut the federal funds target rate to 2.00%, we changed the range of
our interest rate risk simulation for the gradual decrease scenario from 250 basis points to 200
basis points.
 In December 2008, after the FOMC included zero percent in its target rate range, we discontinued
the declining-rate scenario.
  EFFECT OF INTEREST RATE CHANGES ON NET INTEREST INCOME
 For the 12 months beginning December 31
    
    2008
    
    
    2007
    
    
    2006Gradual increase of 250 basis points
    
    
    4.03
    %
    
    
    4.22
    %
    
    
    4.22
    %Gradual decrease of 250 basis points
    
    Not applicable
    
    
    (6.67
    )%
    
    
    (3.99
    )%
  
    
    To reflect pricing characteristics more accurately, we changed the rates on some of the
assets in the model from fixed to floating.
    
    On March 31, 2006, we terminated $250 million of interest rate swaps that were associated
with $250 million of 10-year subordinated long-term debt we issued in April 2003. 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 this, read Note 15, Derivative and hedging activities, and the discussion
of derivatives and hedging instruments in this report.




---



##### 



MD&A
    
    
    
    
    
    57
 FINANCIAL MARKET RISK
    REVENUE SUBJECT TO FINANCIAL MARKET RISK
 For the year 
(dollars in millions)
    
    2008
    
    
    2007
    
    
    2006WAS trust and investment advisory fees
    
    $
    152.0
    
    
    $
    158.6
    
    
    $
    136.5WAS mutual fund fees
    
    
    27.2
    
    
    
    21.4
    
    
    
    20.2Total WAS fees subject to financial market risk
    
    $
    179.2
    
    
    $
    180.0
    
    
    $
    156.7Total WAS fees
    
    $
    224.7
    
    
    $
    220.1
    
    
    $
    192.0CCS retirement services fees
    
    
    37.4
    
    
    
    12.9
    
    
    
    11.5CCS investment/cash management fees
    
    
    13.9
    
    
    
    12.8
    
    
    
    10.3Total CCS fees subject to financial market risk
    
    $
    51.3
    
    
    $
    25.7
    
    
    $
    21.8Total CCS fees
    
    $
    131.8
    
    
    $
    98.6
    
    
    $
    85.6Affiliate money manager revenue
    
    
    15.7
    
    
    
    21.9
    
    
    
    20.5Total revenue subject to financial market risk
    
    $
    246.2
    
    
    $
    227.6
    
    
    $
    199.0Total
operating noninterest
income1
    
    $
    423.1
    
    
    $
    386.0
    
    
    $
    346.1Percent of operating noninterest income
subject to financial market risk
    
    
    58
    %
    
    
    59
    %
    
    
    57
    %Total operating net interest and
noninterest
income1
    
    $
    665.3
    
    
    $
    726.7
    
    
    $
    687.9Percent of total operating income subject
to financial market risk
    
    
    37
    %
    
    
    31
    %
    
    
    29
    %
 
 1
    
    Operating income excludes securities
impairment charges. Noninterest income after
amortization. Net interest income after the provision
for loan losses.    
    
    Most WAS revenue.
    
    Some CCS revenue.
    
    All of the revenue we receive from Cramer Rosenthal McGlynn and Roxbury Capital
Management.




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##### 



58       Wilmington Trust Corporation

2008 Annual Report
      ECONOMIC RISK
   OPERATIONAL AND FIDUCIARY RISK
  REGULATORY RISK
  LEGAL RISK




---



##### 



MD&A
    
    
    
    
    
    59
 OTHER INFORMATION
 DERIVATIVES, HEDGING INSTRUMENTS, OTHER OFF-BALANCE-SHEET ARRANGEMENTS, PENSION AND OTHER
POSTRETIREMENT BENEFIT OBLIGATIONS, AND OTHER CONTRACTUAL OBLIGATIONS
  
    
    Derivative instruments, such as interest rate swaps and interest rate floors. For more
information about our derivative instruments, read Note 15, Derivative and hedging
activities, in this report.
    
    Instruments that generally accepted accounting principles deem to be off-balance-sheet
arrangements. These instruments include standby letters of credit, unfunded loan commitments,
unadvanced lines of credit, operating lease obligations, and other guaranties. For more
information about these instruments, read Note 12, Borrowings, and Note 13, Commitments and
contingencies, in this report.
    
    Pension and other postretirement benefit plan obligations. We contributed $9.8 million and
$13.2 million in 2008 and 2007, respectively, to these plans. For more information about these
plans, read Note 18, Pension and other postretirement benefits, in this report.
    
    Contractual obligations including certificates of deposit and long-term debt, which appear on
our balance sheet. For more information about certificates of deposits, read Note 11,
Deposits, in this report. For more information about our long-term debt, read Note 12,
Borrowings, in this report.




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##### 



60       Wilmington Trust Corporation

2008 Annual Report
  
    
    One $28.0 million loan from the Federal Home Loan Bank of Pittsburgh (FHLB). We used this
loan to construct Wilmington Trust Plaza, our operations center in downtown Wilmington,
Delaware, which was completed in 1998.
    
    Lease commitments for offices, net of sublease arrangements, which totaled $72.6 million.
These lease commitments are for many of our branch offices in Delaware, all of our branch
offices outside of Delaware, and all of our non-branch offices outside of Delaware.
    
    Certificates of deposit amounting to $3.74 billion.
    
    Letters of credit, unfunded loan commitments, and unadvanced lines of credit amounting to
$3.67 billion.
 AMOUNTS AND DURATION OF PAYMENTS DUE
ON CURRENT CONTRACTUAL OBLIGATIONS
 At December 31, 2008
    
    
    
    
    
    Less than
    
    
    1 to
    
    
    3 to
    
    
    More than(in millions)
    
    Total
    
    
    1 year
    
    
    3 years
    
    
    5 years
    
    
    5 yearsCertificates of deposit
    
    $
    3,736.1
    
    
    $
    3,413.4
    
    
    $
    180.8
    
    
    $
    137.4
    
    
    $
    4.5Debt obligations
    
    
    478.0
    
    
    
    
    
    
    
    28.0
    
    
    
    250.0
    
    
    
    200.0Interest on
debt obligations
    
    
    213.4
    
    
    
    31.0
    
    
    
    59.9
    
    
    
    50.3
    
    
    
    72.2Operating lease
obligations
    
    
    72.6
    
    
    
    13.3
    
    
    
    21.4
    
    
    
    15.3
    
    
    
    22.6Benefit plan
obligations
    
    
    3.7
    
    
    
    3.7
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    4,503.8
    
    
    $
    3,461.4
    
    
    $
    290.1
    
    
    $
    453.0
    
    
    $
    299.3
  
    
    $250.0 million of subordinated long-term debt that we issued in 2003 and used for general
liquidity purposes. This debt is due on April 15, 2013.
    
    $200.0 million of subordinated long-term debt that we issued on April 1, 2008. We used some
of the proceeds of this issue to repay an aggregate principal amount of $125.0 million in
subordinated long-term debt that expired on May 1, 2008. We also used some to fund, in part,
our acquisition in April 2008 of AST Capital Trust Company. We intend to use the remaining
proceeds for general corporate purposes. This debt is due on April 2, 2018.
    
    FHLB advances of $28.0 million.




---



##### 



MD&A
    
    
    
    
    
    61
 CONTROLS AND PROCEDURES
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  FACTORS AFFECTING FUTURE RESULTS




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##### 



62       Wilmington Trust Corporation

2008 Annual Report
 COMPARISON OF RESULTS WITH AND WITHOUT
NON-CASH IMPAIRMENT WRITE-DOWNS
 As of and for the year ended December 31, 2008STATEMENT OF CONDITION(in millions)Investment securities available for saleInvestment securities held to maturityGoodwill, net of accumulated amortizationOther assetsTotal assetsLiabilitiesMinority interestStockholders equityTotal liabilities and stockholders equityOPERATING RESULTS(in millions)Net interest incomeProvision for loan lossesNoninterest incomeNoninterest expenseIncome before taxes and minority interestIncome tax (benefit)/expenseNet (loss)/income before minority interestMinority interestNet (loss)/incomePER SHARE DATABasic common shares outstanding (in millions)Diluted common shares outstanding (in millions)Basic per-share (loss)/earningsDiluted per-share (loss)/earningsSTATISTICS AND RATIOSTotal assets, on average (in millions)Common stockholders equity, on average (in millions)Return on average assetsReturn on common equityDividends
paid on common shares (in millions)Dividend payout ratioCommon shares outstanding (in millions)Book value per common shareStaff membersNet (loss)/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




---



##### 



63
 With
    
    
    Withoutimpairment
    
    
    impairment
    
    
    Impairment$
    1,210.7
    
    
    $
    1,212.1
    
    
    $
    (1.4
    )162.6
    
    
    
    190.6
    
    
    
    (28.0
    )355.6
    
    
    
    422.5
    
    
    
    (66.9
    )10,590.0
    
    
    
    10,545.4
    
    
    
    44.6$
    12,318.9
    
    
    $
    12,370.6
    
    
    $
    (51.7
    )$
    10,984.8
    
    
    $
    10,978.3
    
    
    $
    6.50.2
    
    
    
    0.2
    
    
    
    1,333.9
    
    
    
    1,392.1
    
    
    
    (58.2
    )$
    12,318.9
    
    
    $
    12,370.6
    
    
    $
    (51.7
    )$
    357.7
    
    
    $
    357.7
    
    
    $
    (115.5
    )
    
    
    (115.5
    )
    
    
    292.4
    
    
    
    423.1
    
    
    
    (130.7
    )559.7
    
    
    
    492.8
    
    
    
    66.9(25.1
    )
    
    
    172.5
    
    
    
    (197.6
    )(2.0
    )
    
    
    72.6
    
    
    
    (74.6
    )(23.1
    )
    
    
    99.9
    
    
    
    (123.0
    )0.5
    
    
    
    0.5
    
    
    
    $
    (23.6
    )
    
    $
    99.4
    
    
    $
    (123.0
    )67.5
    
    
    
    67.5
    
    
    
    67.5
    
    
    
    67.6
    
    
    
    (0.1
    )$
    (0.36
    )
    
    $
    1.46
    
    
    $
    (1.82
    )$
    (0.36
    )
    
    $
    1.46
    
    
    $
    (1.82
    )$
    11,881.2
    
    
    $
    11,912.8
    
    
    $
    (31.6
    )1,085.2
    
    
    
    1,108.4
    
    
    
    (23.2
    )(0.20
    )%
    
    
    0.83
    %
    
    
    (1.03
    )%(2.17
    )%
    
    
    8.97
    %
    
    
    (11.14
    )%$
    92.5
    
    
    $
    92.5
    
    
    $
    
    %
    
    
    93.06
    %
    
    
    
    %69.1
    
    
    
    69.1
    
    
    
    $
    14.65
    
    
    $
    15.49
    
    
    $
    (0.84
    )2,946
    
    
    
    2,946
    
    
    
    $
    (8.0
    )
    
    $
    33.7
    
    
    $
    (41.7
    )(10.36
    )%
    
    
    0.62
    %
    
    
    (10.98
    )%$
    22.24
    
    
    $
    22.24
    
    
    $
    
    
    
    
    15.23
    
    
    
    $
    650.1
    
    
    $
    780.8
    
    
    $
    (130.7
    )2.8
    
    
    
    2.8
    
    
    
    652.9
    
    
    
    783.6
    
    
    
    (130.7
    )559.7
    
    
    
    492.8
    
    
    
    66.985.73
    %
    
    
    62.89
    %
    
    
    22.84
    %
   
    
    $130.7 million represented declines in the carrying value of some of the securities in
our investment portfolio.
    
    $66.9 million represented a decline in the carrying value of our investment in Roxbury
Capital Management.
   
    
    On a reported basis, which includes these write-downs.
    
    On an operating basis, which excludes these write-downs.
  
    
    On a reported basis, we incurred a loss of $23.6 million, or $0.36 per share, for 2008.
    
    On an operating basis, we earned net income of
$99.4 million, or $1.46 per common share, for 2008.




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##### 



64       Wilmington Trust Corporation

2008 Annual Report
 ELEVEN-YEAR SUMMARY OF
SELECTED CONSOLIDATED FINANCIAL DATA
 (in millions, except share amounts)
    
    2008
    8
    
    2007
    
    
    2006
    8
    
    2005
    
    
    2004
    
    
    2003CONSOLIDATED AVERAGE STATEMENTS OF CONDITIONASSETSCash and due from banks
    
    $
    253.1
    
    
    $
    208.7
    
    
    $
    210.6
    
    
    $
    229.2
    
    
    $
    212.2
    
    
    $
    190.2Short-term investments
    
    
    99.8
    
    
    
    38.4
    
    
    
    52.8
    
    
    
    33.7
    
    
    
    23.8
    
    
    
    28.5Investment securities
    
    
    1,561.2
    
    
    
    1,863.5
    
    
    
    1,884.0
    
    
    
    1,863.3
    
    
    
    1,848.3
    
    
    
    1,720.0FHLB and FRB
stock, at
cost1
    
    
    22.2
    
    
    
    12.4
    
    
    
    9.1
    
    
    
    13.3
    
    
    
    20.2
    
    
    
    22.4Loans
    
    
    9,200.0
    
    
    
    8,212.0
    
    
    
    7,699.8
    
    
    
    7,047.1
    
    
    
    6,470.4
    
    
    
    6,060.0Reserve for loan losses
    
    
    (108.1
    )
    
    
    (95.5
    )
    
    
    (91.8
    )
    
    
    (90.9
    )
    
    
    (90.3
    )
    
    
    (86.7
    )Net loans
    
    
    9,091.9
    
    
    
    8,116.5
    
    
    
    7,608.0
    
    
    
    6,956.2
    
    
    
    6,380.1
    
    
    
    5,973.3Other
    
    
    853.0
    
    
    
    757.9
    
    
    
    730.6
    
    
    
    707.3
    
    
    
    643.2
    
    
    
    598.5Total
    
    $
    11,881.2
    
    
    $
    10,997.4
    
    
    $
    10,495.1
    
    
    $
    9,803.0
    
    
    $
    9,127.8
    
    
    $
    8,532.9LIABILITIES AND STOCKHOLDERS EQUITYCore deposits
    
    $
    5,397.2
    
    
    $
    5,045.5
    
    
    $
    4,936.7
    
    
    $
    4,866.6
    
    
    $
    4,553.7
    
    
    $
    4,356.2National certificates $100,000 and over
    
    
    2,846.3
    
    
    
    2,756.7
    
    
    
    2,803.9
    
    
    
    2,306.6
    
    
    
    2,039.5
    
    
    
    1,937.7Short-term borrowings
    
    
    1,883.5
    
    
    
    1,568.2
    
    
    
    1,135.8
    
    
    
    1,107.8
    
    
    
    1,116.3
    
    
    
    975.7Other
    
    
    232.6
    
    
    
    228.5
    
    
    
    164.9
    
    
    
    167.0
    
    
    
    156.3
    
    
    
    144.4Long-term debt
    
    
    418.3
    
    
    
    307.3
    
    
    
    394.4
    
    
    
    405.5
    
    
    
    407.3
    
    
    
    345.8Total
    
    
    10,777.9
    
    
    
    9,906.2
    
    
    
    9,435.7
    
    
    
    8,853.5
    
    
    
    8,273.1
    
    
    
    7,759.8Minority interest
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.4
    
    
    
    0.1Stockholders equity
    
    
    1,103.1
    
    
    
    1,091.0
    
    
    
    1,059.1
    
    
    
    949.3
    
    
    
    854.3
    
    
    
    773.0Total
    
    $
    11,881.2
    
    
    $
    10,997.4
    
    
    $
    10,495.1
    
    
    $
    9,803.0
    
    
    $
    9,127.8
    
    
    $
    8,532.9CONSOLIDATED STATEMENTS OF INCOMENet interest income
    
    $
    357.7
    
    
    $
    368.9
    
    
    $
    363.1
    
    
    $
    328.9
    
    
    $
    294.4
    
    
    $
    277.1Advisory
fees:Wealth Advisory Services
    
    
    224.7
    
    
    
    220.1
    
    
    
    192.0
    
    
    
    172.1
    
    
    
    155.6
    
    
    
    140.4Corporate Client Services
    
    
    131.8
    
    
    
    98.6
    
    
    
    85.6
    
    
    
    76.3
    
    
    
    71.6
    
    
    
    67.3Cramer Rosenthal McGlynn
    
    
    16.4
    
    
    
    20.7
    
    
    
    19.3
    
    
    
    16.1
    
    
    
    10.9
    
    
    
    5.3Roxbury Capital Management
    
    
    (0.7
    )
    
    
    1.2
    
    
    
    1.2
    
    
    
    1.4
    
    
    
    1.6
    
    
    
    (2.3
    )Total advisory fees
    
    
    372.2
    
    
    
    340.6
    
    
    
    298.1
    
    
    
    265.9
    
    
    
    239.7
    
    
    
    210.7Amortization of affiliate intangibles
    
    
    (7.7
    )
    
    
    (4.7
    )
    
    
    (4.2
    )
    
    
    (4.0
    )
    
    
    (2.5
    )
    
    
    (1.7
    )Total advisory fees after amortization of affiliate intangibles
    
    
    364.5
    
    
    
    335.9
    
    
    
    293.9
    
    
    
    261.9
    
    
    
    237.2
    
    
    
    209.0Other noninterest income
    
    
    58.5
    
    
    
    50.0
    
    
    
    52.0
    
    
    
    50.6
    
    
    
    50.0
    
    
    
    54.5Securities (losses)/gains
    
    
    (130.6
    )
    
    
    0.1
    
    
    
    0.2
    
    
    
    0.8
    
    
    
    (0.5
    )
    
    
    0.7Total noninterest income
    
    
    292.4
    
    
    
    386.0
    
    
    
    346.1
    
    
    
    313.3
    
    
    
    286.7
    
    
    
    264.2Net interest and noninterest income
    
    
    650.1
    
    
    
    754.9
    
    
    
    709.2
    
    
    
    642.2
    
    
    
    581.1
    
    
    
    541.3Provision for loan losses
    
    
    (115.5
    )
    
    
    (28.2
    )
    
    
    (21.3
    )
    
    
    (11.8
    )
    
    
    (15.6
    )
    
    
    (21.6
    )Salaries and employment benefits
    
    
    296.1
    
    
    
    270.6
    
    
    
    242.5
    
    
    
    225.0
    
    
    
    210.5
    
    
    
    190.8Other noninterest expense
    
    
    263.6

8
    
    
    173.5
    
    
    
    229.1

8
    
    
    145.1
    
    
    
    139.3
    
    
    
    125.5Total noninterest expense
    
    
    559.7
    
    
    
    444.1
    
    
    
    471.6
    
    
    
    370.1
    
    
    
    349.8
    
    
    
    316.3(Loss)/income before income taxes, minority interest, and
cumulative effect of change in accounting principle
    
    
    (25.1
    )
    
    
    282.6
    
    
    
    206.3
    
    
    
    260.3
    
    
    
    215.7
    
    
    
    203.4Applicable income taxes
    
    
    (2.0
    )
    
    
    99.7
    
    
    
    72.7
    
    
    
    93.0
    
    
    
    77.9
    
    
    
    71.4Net (loss)/income before minority interest and
cumulative effect of change in accounting principle
    
    
    (23.1
    )
    
    
    182.9
    
    
    
    143.6
    
    
    
    167.3
    
    
    
    137.8
    
    
    
    132.0Minority interest
    
    
    0.5
    
    
    
    0.9
    
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9
    
    
    
    1.1Net (loss)/income before cumulative effect of change
in accounting principle
    
    
    (23.6
    )
    
    
    182.0
    
    
    
    143.8
    
    
    
    167.0
    
    
    
    136.9
    
    
    
    130.9Cumulative effect of change in accounting principle
(net of income taxes of $0.6 in 2001)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net (loss)/income
    
    $
    (23.6

)8
    
    $
    182.0
    
    
    $
    143.8

8
    
    $
    167.0
    
    
    $
    136.9
    
    
    $
    130.9




---



##### 



65
  Compound
    
    
    Compoundgrowth rates
    
    
    growth rates1998 to
    
    
    2003 to2002
    
    
    2001
    
    
    2000
    
    
    19992
    
    
    1998
    
    
    2008
    
    
    2008$
    189.1
    
    
    $
    215.8
    
    
    $
    194.7
    
    
    $
    198.0
    
    
    $
    188.2
    
    
    
    3.01
    %
    
    
    5.88
    %28.2
    
    
    
    28.7
    
    
    
    29.5
    
    
    
    31.5
    
    
    
    31.1
    
    
    
    12.37
    
    
    
    28.491,278.2
    
    
    
    1,320.8
    
    
    
    1,538.1
    
    
    
    1,570.5
    
    
    
    1,591.4
    
    
    
    (0.19
    )
    
    
    (1.92
    )17.2
    
    
    
    21.1
    
    
    
    28.9
    
    
    
    23.9
    
    
    
    18.2
    
    
    
    2.01
    
    
    
    (0.18
    )5,691.3
    
    
    
    5,235.3
    
    
    
    5,053.1
    
    
    
    4,530.4
    
    
    
    4,156.4
    
    
    
    8.27
    
    
    
    8.71(83.0
    )
    
    
    (77.8
    )
    
    
    (75.3
    )
    
    
    (73.3
    )
    
    
    (66.2
    )
    
    
    5.03
    
    
    
    4.515,608.3
    
    
    
    5,157.5
    
    
    
    4,977.8
    
    
    
    4,457.1
    
    
    
    4,090.2
    
    
    
    8.32
    
    
    
    8.76542.9
    
    
    
    487.6
    
    
    
    441.4
    
    
    
    409.2
    
    
    
    333.9
    
    
    
    9.83
    
    
    
    7.34$
    7,663.9
    
    
    $
    7,231.5
    
    
    $
    7,210.4
    
    
    $
    6,690.2
    
    
    $
    6,253.0
    
    
    
    6.63
    %
    
    
    6.84
    %$
    3,981.1
    
    
    $
    3,675.0
    
    
    $
    3,766.3
    
    
    $
    4,004.5
    
    
    $
    3,802.1
    
    
    
    3.57
    %
    
    
    4.38
    %1,846.5
    
    
    
    1,588.1
    
    
    
    1,504.8
    
    
    
    762.0
    
    
    
    625.2
    
    
    
    16.37
    
    
    
    7.99821.1
    
    
    
    1,027.7
    
    
    
    1,145.9
    
    
    
    1,138.1
    
    
    
    1,076.5
    
    
    
    5.75
    
    
    
    14.06132.1
    
    
    
    131.3
    
    
    
    92.2
    
    
    
    84.9
    
    
    
    96.0
    
    
    
    9.25
    
    
    
    10.00160.5
    
    
    
    166.3
    
    
    
    168.0
    
    
    
    168.0
    
    
    
    125.9
    
    
    
    12.76
    
    
    
    3.886,941.3
    
    
    
    6,588.4
    
    
    
    6,677.2
    
    
    
    6,157.5
    
    
    
    5,725.7
    
    
    
    6.53
    
    
    
    6.790.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.87722.5
    
    
    
    643.1
    
    
    
    533.2
    
    
    
    532.7
    
    
    
    527.3
    
    
    
    7.66
    
    
    
    7.37$
    7,663.9
    
    
    $
    7,231.5
    
    
    $
    7,210.4
    
    
    $
    6,690.2
    
    
    $
    6,253.0
    
    
    
    6.63
    %
    
    
    6.84
    %$
    276.5
    
    
    $
    258.9
    
    
    $
    255.1
    
    
    $
    245.9
    
    
    $
    237.7
    
    
    
    4.17
    %
    
    
    5.24
    %126.9
    
    
    
    109.6
    
    
    
    104.5
    
    
    
    98.1
    
    
    
    88.8
    
    
    
    9.73
    
    
    
    9.8664.3
    
    
    
    54.9
    
    
    
    46.7
    
    
    
    40.4
    
    
    
    35.8
    
    
    
    13.92
    
    
    
    14.397.7
    
    
    
    6.3
    
    
    
    1.6
    
    
    
    4.1
    
    
    
    4.9
    
    
    
    12.84
    
    
    
    25.358.6
    
    
    
    14.2
    
    
    
    19.7
    
    
    
    12.0
    
    
    
    2.5
    
    
    
    
    
    
    
    (21.17
    )207.5
    
    
    
    185.0
    
    
    
    172.5
    
    
    
    154.6
    
    
    
    132.0
    
    
    
    10.92
    
    
    
    12.05(1.3
    )
    
    
    (8.2
    )
    
    
    (7.5
    )
    
    
    (6.2
    )
    
    
    (3.2
    )
    
    
    9.18
    
    
    
    35.27206.2
    
    
    
    176.8
    
    
    
    165.0
    
    
    
    148.4
    
    
    
    128.8
    
    
    
    10.96
    
    
    
    11.7754.0
    
    
    
    49.7
    
    
    
    51.6
    
    
    
    41.8
    
    
    
    48.4
    
    
    
    1.91
    
    
    
    1.432.0
    
    
    
    1.5
    
    
    
    (0.4
    )
    
    
    1.3
    
    
    
    6.7
    
    
    
    
    
    
    
    262.2
    
    
    
    228.0
    
    
    
    216.2
    
    
    
    191.5
    
    
    
    183.9
    
    
    
    4.75
    
    
    
    2.05538.7
    
    
    
    486.9
    
    
    
    471.3
    
    
    
    437.4
    
    
    
    421.6
    
    
    
    4.43
    
    
    
    3.73(22.0
    )
    
    
    (19.9
    )
    
    
    (21.9
    )
    
    
    (17.5
    )
    
    
    (20.0
    )
    
    
    19.17
    
    
    
    39.84187.5
    
    
    
    172.2
    
    
    
    167.9
    
    
    
    151.7
    
    
    
    141.0
    
    
    
    7.70
    
    
    
    9.19127.5
    
    
    
    110.1
    
    
    
    101.8
    
    
    
    111.0
    2
    
    
    92.2
    
    
    
    11.08
    
    
    
    16.00315.0
    
    
    
    282.3
    
    
    
    269.7
    
    
    
    262.7
    
    
    
    233.2
    
    
    
    9.15
    
    
    
    12.09201.7
    
    
    
    184.7
    
    
    
    179.7
    
    
    
    157.2
    
    
    
    168.4
    
    
    
    
    
    
    
    71.8
    
    
    
    64.1
    
    
    
    62.4
    
    
    
    53.2
    
    
    
    56.6
    
    
    
    
    
    
    
    129.9
    
    
    
    120.6
    
    
    
    117.3
    
    
    
    104.0
    
    
    
    111.8
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14.59
    )129.3
    
    
    
    120.6
    
    
    
    117.3
    
    
    
    104.0
    
    
    
    111.8
    
    
    
    
    
    
    
    
    
    
    
    1.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    129.3
    
    
    $
    121.7
    
    
    $
    117.3
    
    
    $
    104.0
    2
    
    $
    111.8
    
    
    
    
    %
    
    
    
    %
 (continued)
 
 1
    
    Federal Home Loan Bank and Federal Reserve Bank stock.2
    
    1999 results included a $13.4 million one-time pre-tax charge for outsourcing data processing functions.3
    
    Based on income before the cumulative effect of change in accounting principle or
one-time pre-tax charge for outsourcing data processing functions.4
    
    At year-end.5
    
    Total other expenses as a percentage of net interest and other income on a tax-equivalent basis.6
    
    Net income minus dividends paid as a percentage of prior year-end stockholders equity.7
    
    Adjusted for two-for-one stock split in June 2002.8
    
    2008 and 2006 results included non-cash goodwill impairment write-downs of $66.9 and
$72.3 million, respectively. 2008 results also include securities write-downs of
$130.7 million.




---



##### 



66       Wilmington Trust Corporation

2008 Annual Report
 ELEVEN-YEAR
SUMMARY OF
 SELECTED CONSOLIDATED FINANCIAL DATA
 (in millions, except share amounts)
    

20088
    
    
    2007
    
    
    20068
    
    
    2005
    
    
    2004
    
    
    2003Net (loss)/income per common share  diluted:(Loss)/income before cumulative effect of change
in accounting principle
    
    $
    (0.36)
    8
    
    $
    2.64
    
    
    $
    2.06
    8
    
    $
    2.43
    
    
    $
    2.02
    
    
    $
    1.97Cumulative effect of change in accounting principle7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net (loss)/income per common share  diluted7
    
    $
    (0.36)
    8
    
    $
    2.64
    
    
    $
    2.06
    8
    
    $
    2.43
    
    
    $
    2.02
    
    
    $
    1.97Percentage change from prior year
    
    
    
    %
    
    
    28
    %
    
    
    (15
    )%
    
    
    20
    %
    
    
    3
    %
    
    
    1
    %SELECTED FINANCIAL RATIOS AND STATISTICSNet (loss)/income as a percentage of:Average
common stockholders equity3
    
    
    (2.17
    )%
    
    
    16.68
    %
    
    
    13.58
    %
    
    
    17.59
    %
    
    
    16.02
    %
    
    
    16.93
    %Average
total assets3
    
    
    (0.20
    )
    
    
    1.65
    
    
    
    1.37
    
    
    
    1.70
    
    
    
    1.50
    
    
    
    1.53Capital generation ratio3,6
    
    
    (10.36
    )
    
    
    8.69
    
    
    
    5.77
    
    
    
    9.54
    
    
    
    7.70
    
    
    
    8.15Average common equity to assets ratio
    
    
    9.13
    
    
    
    9.92
    
    
    
    10.09
    
    
    
    9.68
    
    
    
    9.36
    
    
    
    9.06Risk-based capital ratio4
    
    
    13.97
    
    
    
    11.21
    
    
    
    12.10
    
    
    
    11.84
    
    
    
    11.68
    
    
    
    12.52Loan quality:Percentage of average total loans:Net charge-offs
    
    
    0.57
    %
    
    
    0.26
    %
    
    
    0.24
    %
    
    
    0.14
    %
    
    
    0.24
    %
    
    
    0.28
    %Nonaccruing loans
    
    
    2.13
    
    
    
    0.58
    
    
    
    0.40
    
    
    
    0.62
    
    
    
    0.95
    
    
    
    0.75Percentage of total loans:Reserve for
loan losses4
    
    
    1.63
    %
    
    
    1.19
    %
    
    
    1.16
    %
    
    
    1.24
    %
    
    
    1.33
    %
    
    
    1.44
    %Selected per share data:Cash dividends declared and paid per common share7
    
    $
    1.370
    
    
    $
    1.320
    
    
    $
    1.245
    
    
    $
    1.185
    
    
    $
    1.125
    
    
    $
    1.065Book value4,7
    
    
    14.65
    
    
    
    16.70
    
    
    
    15.46
    
    
    
    14.99
    
    
    
    13.49
    
    
    
    12.17Stock price4,7
    
    
    22.24
    
    
    
    35.20
    
    
    
    42.17
    
    
    
    38.91
    
    
    
    36.15
    
    
    
    36.00Price/earnings multiple4
    
    
    
    
    
    
    13.13
    
    
    
    20.08
    
    
    
    15.75
    
    
    
    17.63
    
    
    
    18.09Assets under management:Wilmington Trust
    
    $
    36,571.4
    
    
    $
    35,934.7
    
    
    $
    31,222.9
    
    
    $
    25,998.2
    
    
    $
    26,464.0
    
    
    $
    24,352.8Cramer Rosenthal McGlynn
    
    
    7,817.4
    
    
    
    11,417.3
    
    
    
    10,623.8
    
    
    
    8,899.0
    
    
    
    6,927.2
    
    
    
    4,698.6Roxbury Capital Management
    
    
    1,336.6
    
    
    
    2,466.0
    
    
    
    3,138.1
    
    
    
    3,287.3
    
    
    
    3,138.6
    
    
    
    3,210.7Combined assets under management
    
    $
    45,725.4
    
    
    $
    49,818.0
    
    
    $
    44,984.8
    
    
    $
    38,184.5
    
    
    $
    36,529.8
    
    
    $
    32,262.1Staff members (full-time-equivalent)4
    
    
    2,946
    
    
    
    2,672
    
    
    
    2,574
    
    
    
    2,469
    
    
    
    2,428
    
    
    
    2,307Net (loss)/income per staff member (in thousands)3
    
    $
    (8.0)
    8
    
    $
    68.1
    
    
    $
    55.9
    8
    
    $
    67.6
    
    
    $
    56.4
    
    
    $
    56.7Efficiency ratio3,5
    
    
    85.73
    %
    
    
    58.53
    %
    
    
    66.10
    %
    
    
    57.28
    %
    
    
    59.72
    %
    
    
    57.92
    %Registered stockholders4
    
    
    7,534
    
    
    
    7,718
    
    
    
    7,962
    
    
    
    8,180
    
    
    
    8,499
    
    
    
    8,666




---



##### 



67


Compound
    
    
    Compoundgrowth rates
    
    
    growth rates1998 to
    
    
    2003 to2002
    
    
    2001
    
    
    2000
    
    
    19992
    
    
    1998
    
    
    2008
    
    
    2008$
    1.95
    
    
    $
    1.83
    
    
    $
    1.80
    
    
    $
    1.56
    2
    
    $
    1.63
    
    
    
    
    %
    
    
    
    %
    
    
    
    0.02
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1.95
    
    
    $
    1.85
    
    
    $
    1.80
    
    
    $
    1.56
    2
    
    $
    1.63
    
    
    
    
    %
    
    
    
    %5
    %
    
    
    3
    %
    
    
    15
    %
    
    
    (4
    )%
    
    
    9
    %17.90
    %
    
    
    18.92
    %
    
    
    22.00
    %
    
    
    19.52
    %
    
    
    21.20
    %1.69
    
    
    
    1.68
    
    
    
    1.63
    
    
    
    1.55
    
    
    
    1.799.24
    
    
    
    10.13
    
    
    
    12.04
    
    
    
    9.07
    
    
    
    12.049.43
    
    
    
    8.89
    
    
    
    7.39
    
    
    
    7.96
    
    
    
    8.4310.19
    
    
    
    11.20
    
    
    
    10.83
    
    
    
    10.70
    
    
    
    12.490.31
    %
    
    
    0.30
    %
    
    
    0.44
    %
    
    
    0.28
    %
    
    
    0.29
    %0.74
    
    
    
    0.73
    
    
    
    0.80
    
    
    
    0.64
    
    
    
    0.741.41
    %
    
    
    1.47
    %
    
    
    1.48
    %
    
    
    1.60
    %
    
    
    1 .66
    %$
    1.005
    
    
    $
    0.945
    
    
    $
    0.885
    
    
    $
    0.825
    
    
    $
    0.76511.35
    
    
    
    10.48
    
    
    
    9.17
    
    
    
    7.72
    
    
    
    8.2031.68
    
    
    
    31.66
    
    
    
    31.03
    
    
    
    24.13
    
    
    
    30.8216.08
    
    
    
    16.93
    
    
    
    17.05
    
    
    
    15.27
    
    
    
    18.46$
    20,966.7
    
    
    $
    23,829.2
    
    
    $
    27,994.4
    
    
    $
    25,529.7
    
    
    $
    22,770.23,512.0
    
    
    
    4,643.0
    
    
    
    3,495.0
    
    
    
    3,204.0
    
    
    
    4,319.03,712.4
    
    
    
    7,700.0
    
    
    
    11,300.0
    
    
    
    11,200.0
    
    
    
    6,000.0$
    28,191.1
    
    
    $
    36,172.2
    
    
    $
    42,789.4
    
    
    $
    39,933.7
    
    
    $
    33,089.22,361
    
    
    
    2,316
    
    
    
    2,299
    
    
    
    2,434
    
    
    
    2,442$
    54.8
    
    
    $
    52.5
    
    
    $
    51.0
    
    
    $
    42.7
    2
    
    $
    45.857.93
    %
    
    
    57.20
    %
    
    
    56.35
    %
    
    
    58.99
    %
    
    
    54.23
    %8,712
    
    
    
    8,841
    
    
    
    9,189
    
    
    
    9,617
    
    
    
    9,868


1
    
    Federal Home Loan Bank and Federal Reserve Bank stock.2
    
    1999 results included a $13.4 million one-time pre-tax
charge for outsourcing data processing functions.3
    
    Based on income before the cumulative effect of
change in accounting principle or one-time pre-tax
charge for outsourcing data processing functions.4
    
    At year-end.5
    
    Total other expenses as a percentage of net interest and other income on a
tax-equivalent basis.6
    
    Net income minus dividends paid as a percentage
of prior year-end stockholders equity.7
    
    Adjusted for two-for-one stock split in June 2002.8
    
    2008 and 2006 results included non-cash
goodwill impairment write-downs of $66.9 and
$72.3 million, respectively. 2008 results also include
securities write-downs of $130.7 million.




---



##### 



68       Wilmington Trust Corporation

2008 Annual Report
 FIVE-YEAR
ANALYSIS OF EARNINGS AND
 CONSOLIDATED AVERAGE STATEMENTS
OF CONDITION
 2008
    
    
    2007(dollar amounts in millions;
    
    Average
    
    
    Income/
    
    
    Average
    
    
    Average
    
    
    Income/
    
    
    Averagerates on a tax-equivalent basis)
    
    balance
    
    
    expense
    
    
    rate
    
    
    balance
    
    
    expense
    
    
    rateASSETSInterest-bearing deposits in other banks
    
    $
    67.1
    
    
    $
    1.2
    
    
    
    1.82
    %
    
    $
    4.4
    
    
    $
    0.3
    
    
    
    6.95
    %Federal funds sold and securities purchased under agreements to resell
    
    
    32.7
    
    
    
    0.7
    
    
    
    2.28
    
    
    
    34.0
    
    
    
    1.7
    
    
    
    5.01Total short-term investments
    
    
    99.8
    
    
    
    1.9
    
    
    
    1.97
    
    
    
    38.4
    
    
    
    2.0
    
    
    
    5.23U.S. Treasury securities
    
    
    60.7
    
    
    
    1.8
    
    
    
    2.97
    
    
    
    103.8
    
    
    
    4.0
    
    
    
    3.82Government agency securities
    
    
    485.6
    
    
    
    23.0
    
    
    
    4.73
    
    
    
    659.5
    
    
    
    31.3
    
    
    
    4.75Obligations of state and political subdivisions2
    
    
    8.8
    
    
    
    0.7
    
    
    
    8.10
    
    
    
    14.5
    
    
    
    1.1
    
    
    
    7.48Preferred stock2
    
    
    41.8
    
    
    
    3.2
    
    
    
    7.60
    
    
    
    68.5
    
    
    
    5.3
    
    
    
    7.76Mortgage-backed securities
    
    
    705.5
    
    
    
    31.7
    
    
    
    4.50
    
    
    
    668.3
    
    
    
    28.4
    
    
    
    4.25Other securities2
    
    
    355.5
    
    
    
    16.9
    
    
    
    4.74
    
    
    
    377.5
    
    
    
    24.1
    
    
    
    6.36Total investment securities
    
    
    1,657.9
    
    
    
    77.3
    
    
    
    4.66
    
    
    
    1,892.1
    
    
    
    94.2
    
    
    
    4.97FHLB & FRB stock, at cost1
    
    
    22.2
    
    
    
    0.7
    
    
    
    3.28
    
    
    
    12.4
    
    
    
    0.4
    
    
    
    3.59Commercial, financial, and agricultural loans
    
    
    2,814.6
    
    
    
    165.4
    
    
    
    5.88
    
    
    
    2,485.7
    
    
    
    194.0
    
    
    
    7.81Real estate  construction loans
    
    
    1,860.6
    
    
    
    102.3
    
    
    
    5.50
    
    
    
    1,731.9
    
    
    
    144.4
    
    
    
    8.34Commercial mortgage loans
    
    
    1,694.1
    
    
    
    100.2
    
    
    
    5.91
    
    
    
    1,382.2
    
    
    
    109.6
    
    
    
    7.93Total commercial loans
    
    
    6,369.3
    
    
    
    367.9
    
    
    
    5.77
    
    
    
    5,599.8
    
    
    
    448.0
    
    
    
    8.00Residential mortgage loans
    
    
    562.0
    
    
    
    32.0
    
    
    
    5.70
    
    
    
    556.3
    
    
    
    32.5
    
    
    
    5.84Consumer loans
    
    
    1,728.7
    
    
    
    110.9
    
    
    
    6.42
    
    
    
    1,526.6
    
    
    
    113.2
    
    
    
    7.41Loans secured with investments
    
    
    540.0
    
    
    
    23.5
    
    
    
    4.35
    
    
    
    529.3
    
    
    
    35.8
    
    
    
    6.76Total retail loans
    
    
    2,830.7
    
    
    
    166.4
    
    
    
    5.88
    
    
    
    2,612.2
    
    
    
    181.5
    
    
    
    6.95Total loans2,3
    
    
    9,200.0
    
    
    
    534.3
    
    
    
    5.81
    
    
    
    8,212.0
    
    
    
    629.5
    
    
    
    7.67Total earning assets at historical cost
    
    
    10,979.9
    
    
    
    
    
    
    
    
    
    
    
    10,154.9Fair value adjustment on securities available for sale
    
    
    (96.7
    )
    
    
    
    
    
    
    
    
    
    
    (28.6
    )Total earning assets
    
    
    10,883.2
    
    
    
    614.2
    
    
    
    5.59
    
    
    
    10,126.3
    
    
    
    726.1
    
    
    
    7.15Other assets
    
    
    998.0
    
    
    
    
    
    
    
    
    
    
    
    871.1Total assets
    
    $
    11,881.2
    
    
    
    
    
    
    
    
    
    
    $
    10,997.4LIABILITIES AND STOCKHOLDERS EQUITYSavings
    
    $
    779.3
    
    
    
    17.7
    
    
    
    2.28
    %
    
    $
    500.1
    
    
    
    11.8
    
    
    
    2.35
    %Interest-bearing demand
    
    
    2,470.4
    
    
    
    18.9
    
    
    
    0.77
    
    
    
    2,400.2
    
    
    
    33.7
    
    
    
    1.40Certificates under $100,000
    
    
    1,006.3
    
    
    
    35.2
    
    
    
    3.49
    
    
    
    1,010.1
    
    
    
    43.6
    
    
    
    4.32Local certificates $100,000 and over
    
    
    299.5
    
    
    
    10.9
    
    
    
    3.63
    
    
    
    412.7
    
    
    
    19.8
    
    
    
    4.80Core interest-bearing deposits
    
    
    4,555.5
    
    
    
    82.7
    
    
    
    1.81
    
    
    
    4,323.1
    
    
    
    108.9
    
    
    
    2.52National certificates $100,000 and over
    
    
    2,846.3
    
    
    
    100.0
    
    
    
    3.51
    
    
    
    2,756.7
    
    
    
    148.1
    
    
    
    5.37Total interest-bearing deposits
    
    
    7,401.8
    
    
    
    182.7
    
    
    
    2.47
    
    
    
    7,079.8
    
    
    
    257.0
    
    
    
    3.63Federal funds purchased and securities sold under agreements to
repurchase
    
    
    1,810.5
    
    
    
    38.0
    
    
    
    2.10
    
    
    
    1,465.0
    
    
    
    68.4
    
    
    
    4.67U.S. Treasury demand
    
    
    18.5
    
    
    
    0.2
    
    
    
    1.28
    
    
    
    9.8
    
    
    
    0.5
    
    
    
    4.77Line of credit and other debt
    
    
    54.5
    
    
    
    3.5
    
    
    
    6.52
    
    
    
    93.4
    
    
    
    7.9
    
    
    
    8.45Total short-term borrowings
    
    
    1,883.5
    
    
    
    41.7
    
    
    
    2.22
    
    
    
    1,568.2
    
    
    
    76.8
    
    
    
    4.90Long-term debt
    
    
    418.3
    
    
    
    29.3
    
    
    
    7.01
    
    
    
    307.3
    
    
    
    19.5
    
    
    
    6.33Total interest-bearing liabilities
    
    
    9,703.6
    
    
    
    253.7
    
    
    
    2.61
    
    
    
    8,955.3
    
    
    
    353.3
    
    
    
    3.95Demand deposits
    
    
    841.7
    
    
    
    
    
    
    
    
    
    
    
    722.4Other noninterest funds
    
    
    434.6
    
    
    
    
    
    
    
    
    
    
    
    477.2Total funds used to support earning assets
    
    
    10,979.9
    
    
    
    253.7
    
    
    
    2.31
    
    
    
    10,154.9
    
    
    
    353.3
    
    
    
    3.48Minority interest
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    0.2Stockholders equity
    
    
    1,103.1
    
    
    
    
    
    
    
    
    
    
    
    1,091.0Equity used to support earning assets
    
    
    (434.6
    )
    
    
    
    
    
    
    
    
    
    
    (477.2
    )Other liabilities
    
    
    232.6
    
    
    
    
    
    
    
    
    
    
    
    228.5Total liabilities and stockholders equity
    
    $
    11,881.2
    
    
    
    
    
    
    
    
    
    
    $
    10,997.4Net interest income/margin4
    
    
    
    
    
    
    360.5
    
    
    
    3.28
    %
    
    
    
    
    
    
    372.8
    
    
    
    3.67
    %Tax-equivalent adjustment
    
    
    
    
    
    
    (2.8
    )
    
    
    
    
    
    
    
    
    
    
    (3.9
    )Net interest income
    
    
    
    
    
    $
    357.7
    
    
    
    
    
    
    
    
    
    
    $
    368.9




---



##### 



69 2006
    
    
    2005
    
    
    2004Average
    
    
    Income/
    
    
    Average
    
    
    Average
    
    
    Income/
    
    
    Average
    
    
    Average
    
    
    Income/
    
    
    Averagebalance
    
    
    expense
    
    
    rate
    
    
    balance
    
    
    expense
    
    
    rate
    
    
    balance
    
    
    expense
    
    
    rate$
    2.9
    
    
    $
    0.1
    
    
    
    4.16
    %
    
    $
    1.0
    
    
    $
    0.1
    
    
    
    6.44
    %
    
    $
    0.5
    
    
    $
    
    
    
    
    5.75
    %49.9
    
    
    
    2.6
    
    
    
    5.09
    
    
    
    32.7
    
    
    
    1.0
    
    
    
    3.30
    
    
    
    23.3
    
    
    
    0.4
    
    
    
    1.4252.8
    
    
    
    2.7
    
    
    
    5.04
    
    
    
    33.7
    
    
    
    1.1
    
    
    
    3.39
    
    
    
    23.8
    
    
    
    0.4
    
    
    
    1.52159.1
    
    
    
    6.0
    
    
    
    3.76
    
    
    
    125.7
    
    
    
    3.9
    
    
    
    3.05
    
    
    
    187.9
    
    
    
    5.6
    
    
    
    2.97485.9
    
    
    
    20.4
    
    
    
    4.20
    
    
    
    366.8
    
    
    
    14.1
    
    
    
    3.85
    
    
    
    260.6
    
    
    
    10.2
    
    
    
    3.929.8
    
    
    
    0.9
    
    
    
    8.80
    
    
    
    11.2
    
    
    
    1.0
    
    
    
    8.75
    
    
    
    13.0
    
    
    
    1.1
    
    
    
    8.6990.6
    
    
    
    6.9
    
    
    
    7.65
    
    
    
    93.1
    
    
    
    6.9
    
    
    
    7.50
    
    
    
    122.3
    
    
    
    9.1
    
    
    
    7.41792.7
    
    
    
    32.9
    
    
    
    4.15
    
    
    
    942.0
    
    
    
    38.4
    
    
    
    4.07
    
    
    
    982.5
    
    
    
    39.8
    
    
    
    4.05386.1
    
    
    
    23.6
    
    
    
    6.14
    
    
    
    344.3
    
    
    
    16.5
    
    
    
    4.79
    
    
    
    288.4
    
    
    
    9.3
    
    
    
    3.251,924.2
    
    
    
    90.7
    
    
    
    4.72
    
    
    
    1,883.1
    
    
    
    80.8
    
    
    
    4.29
    
    
    
    1,854.7
    
    
    
    75.1
    
    
    
    4.059.1
    
    
    
    0.6
    
    
    
    6.23
    
    
    
    13.3
    
    
    
    0.4
    
    
    
    3.28
    
    
    
    20.2
    
    
    
    0.4
    
    
    
    1.752,437.4
    
    
    
    189.6
    
    
    
    7.78
    
    
    
    2,462.1
    
    
    
    152.2
    
    
    
    6.19
    
    
    
    2,374.4
    
    
    
    107.9
    
    
    
    4.551,516.8
    
    
    
    128.5
    
    
    
    8.47
    
    
    
    982.3
    
    
    
    67.4
    
    
    
    6.87
    
    
    
    731.8
    
    
    
    35.7
    
    
    
    4.881,240.8
    
    
    
    97.6
    
    
    
    7.87
    
    
    
    1,229.1
    
    
    
    79.3
    
    
    
    6.46
    
    
    
    1,168.6
    
    
    
    58.9
    
    
    
    5.045,195.0
    
    
    
    415.7
    
    
    
    8.00
    
    
    
    4,673.5
    
    
    
    298.9
    
    
    
    6.40
    
    
    
    4,274.8
    
    
    
    202.5
    
    
    
    4.74495.2
    
    
    
    28.7
    
    
    
    5.80
    
    
    
    438.6
    
    
    
    25.9
    
    
    
    5.89
    
    
    
    453.8
    
    
    
    27.4
    
    
    
    6.041,458.2
    
    
    
    104.6
    
    
    
    7.18
    
    
    
    1,329.3
    
    
    
    84.8
    
    
    
    6.38
    
    
    
    1,134.1
    
    
    
    67.7
    
    
    
    5.97551.4
    
    
    
    36.1
    
    
    
    6.54
    
    
    
    605.7
    
    
    
    28.6
    
    
    
    4.72
    
    
    
    607.7
    
    
    
    17.5
    
    
    
    2.882,504.8
    
    
    
    169.4
    
    
    
    6.76
    
    
    
    2,373.6
    
    
    
    139.3
    
    
    
    5.86
    
    
    
    2,195.6
    
    
    
    112.6
    
    
    
    5.137,699.8
    
    
    
    585.1
    
    
    
    7.60
    
    
    
    7,047.1
    
    
    
    438.2
    
    
    
    6.22
    
    
    
    6,470.4
    
    
    
    315.1
    
    
    
    4.879,685.9
    
    
    
    
    
    
    
    
    
    
    
    8,977.2
    
    
    
    
    
    
    
    
    
    
    
    8,369.1(40.2
    )
    
    
    
    
    
    
    
    
    
    
    (19.8
    )
    
    
    
    
    
    
    
    
    
    
    (6.4
    )9,645.7
    
    
    
    679.1
    
    
    
    7.01
    
    
    
    8,957.4
    
    
    
    520.5
    
    
    
    5.80
    
    
    
    8,362.7
    
    
    
    391.0
    
    
    
    4.67849.4
    
    
    
    
    
    
    
    
    
    
    
    845.6
    
    
    
    
    
    
    
    
    
    
    
    765.1$
    10,495.1
    
    
    
    
    
    
    
    
    
    
    $
    9,803.0
    
    
    
    
    
    
    
    
    
    
    $
    9,127.8$
    311.4
    
    
    
    1.3
    
    
    
    0.41
    %
    
    $
    344.9
    
    
    
    0.9
    
    
    
    0.27
    %
    
    $
    369.1
    
    
    
    0.7
    
    
    
    0.18
    %2,365.1
    
    
    
    26.5
    
    
    
    1.12
    
    
    
    2,303.8
    
    
    
    19.9
    
    
    
    0.86
    
    
    
    2,311.1
    
    
    
    11.6
    
    
    
    0.50979.4
    
    
    
    36.5
    
    
    
    3.73
    
    
    
    824.4
    
    
    
    21.1
    
    
    
    2.56
    
    
    
    768.3
    
    
    
    15.6
    
    
    
    2.03521.7
    
    
    
    23.3
    
    
    
    4.48
    
    
    
    401.5
    
    
    
    12.1
    
    
    
    3.01
    
    
    
    177.7
    
    
    
    3.0
    
    
    
    1.694,177.6
    
    
    
    87.6
    
    
    
    2.10
    
    
    
    3,874.6
    
    
    
    54.0
    
    
    
    1.39
    
    
    
    3,626.2
    
    
    
    30.9
    
    
    
    0.852,803.9
    
    
    
    143.7
    
    
    
    5.12
    
    
    
    2,306.6
    
    
    
    77.4
    
    
    
    3.36
    
    
    
    2,039.5
    
    
    
    29.3
    
    
    
    1.446,981.5
    
    
    
    231.3
    
    
    
    3.31
    
    
    
    6,181.2
    
    
    
    131.4
    
    
    
    2.13
    
    
    
    5,665.7
    
    
    
    60.2
    
    
    
    1.061,116.2
    
    
    
    53.2
    
    
    
    4.77
    
    
    
    1,096.3
    
    
    
    35.1
    
    
    
    3.20
    
    
    
    1,106.0
    
    
    
    18.1
    
    
    
    1.6411.1
    
    
    
    0.5
    
    
    
    4.77
    
    
    
    11.5
    
    
    
    0.3
    
    
    
    3.04
    
    
    
    9.5
    
    
    
    0.1
    
    
    
    1.108.5
    
    
    
    0.5
    
    
    
    5.95
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.8
    
    
    
    
    
    
    
    1.521,135.8
    
    
    
    54.2
    
    
    
    4.77
    
    
    
    1,107.8
    
    
    
    35.4
    
    
    
    3.20
    
    
    
    1,116.3
    
    
    
    18.2
    
    
    
    1.63394.4
    
    
    
    26.2
    
    
    
    6.65
    
    
    
    405.5
    
    
    
    20.9
    
    
    
    5.15
    
    
    
    407.3
    
    
    
    13.7
    
    
    
    3.368,511.7
    
    
    
    311.7
    
    
    
    3.66
    
    
    
    7,694.5
    
    
    
    187.7
    
    
    
    2.44
    
    
    
    7,189.3
    
    
    
    92.1
    
    
    
    1.28759.1
    
    
    
    
    
    
    
    
    
    
    
    992.0
    
    
    
    
    
    
    
    
    
    
    
    927.5415.1
    
    
    
    
    
    
    
    
    
    
    
    290.7
    
    
    
    
    
    
    
    
    
    
    
    252.39,685.9
    
    
    
    311.7
    
    
    
    3.22
    
    
    
    8,977.2
    
    
    
    187.7
    
    
    
    2.09
    
    
    
    8,369.1
    
    
    
    92.1
    
    
    
    1.100.3
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    0.41,059.1
    
    
    
    
    
    
    
    
    
    
    
    949.3
    
    
    
    
    
    
    
    
    
    
    
    854.3(415.1
    )
    
    
    
    
    
    
    
    
    
    
    (290.7
    )
    
    
    
    
    
    
    
    
    
    
    (252.3
    )164.9
    
    
    
    
    
    
    
    
    
    
    
    167.0
    
    
    
    
    
    
    
    
    
    
    
    156.3$
    10,495.1
    
    
    
    
    
    
    
    
    
    
    $
    9,803.0
    
    
    
    
    
    
    
    
    
    
    $
    9,127.8367.4
    
    
    
    3.79
    %
    
    
    
    
    
    
    332.8
    
    
    
    3.71
    %
    
    
    
    
    
    
    298.9
    
    
    
    3.57
    %(4.3
    )
    
    
    
    
    
    
    
    
    
    
    (3.9
    )
    
    
    
    
    
    
    
    
    
    
    (4.5
    )$
    363.1
    
    
    
    
    
    
    
    
    
    
    $
    328.9
    
    
    
    
    
    
    
    
    
    
    $
    294.4
 1
    
    Federal Home Loan Bank and Federal Reserve Bank stock2
    
    Tax-advantaged income has been adjusted to a
tax-equivalent basis using an income tax rate of 35%
for all years.3
    
    Loan balances include nonaccrual loans. Interest
income includes amortization of deferred loan fees.4
    
    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.




---



##### 



70       Wilmington Trust Corporation

2008 Annual Report
 FIVE-YEAR COMPARISON OF
 CONSOLIDATED AVERAGE STATEMENTS OF CONDITION
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004ASSETSCash and due from banks
    
    $
    253.1
    
    
    $
    208.7
    
    
    $
    210.6
    
    
    $
    229.2
    
    
    $
    212.2Interest-bearing deposits in other banks
    
    
    67.1
    
    
    
    4.4
    
    
    
    2.9
    
    
    
    1.0
    
    
    
    0.5Federal funds sold and securities
purchased under agreements to resell
    
    
    32.7
    
    
    
    34.0
    
    
    
    49.9
    
    
    
    32.7
    
    
    
    23.3Investment securities:U.S. Treasury securities
    
    
    61.0
    
    
    
    103.0
    
    
    
    156.5
    
    
    
    124.4
    
    
    
    189.0Government agency securities
    
    
    493.3
    
    
    
    657.8
    
    
    
    478.9
    
    
    
    363.8
    
    
    
    262.2Obligations of state and political subdivisions
    
    
    9.0
    
    
    
    14.7
    
    
    
    10.0
    
    
    
    11.5
    
    
    
    13.5Preferred stock
    
    
    35.6
    
    
    
    66.2
    
    
    
    90.2
    
    
    
    94.0
    
    
    
    120.9Mortgage-backed securities
    
    
    700.2
    
    
    
    647.5
    
    
    
    761.9
    
    
    
    925.0
    
    
    
    973.6Other securities
    
    
    262.1
    
    
    
    374.3
    
    
    
    386.5
    
    
    
    344.6
    
    
    
    289.1Total investment securities
    
    
    1,561.2
    
    
    
    1,863.5
    
    
    
    1,884.0
    
    
    
    1,863.3
    
    
    
    1,848.3Federal Home Loan Bank and Federal Reserve Bank
stock, at cost
    
    
    22.2
    
    
    
    12.4
    
    
    
    9.1
    
    
    
    13.3
    
    
    
    20.2Loans:Commercial, financial, and agricultural
    
    
    2,814.6
    
    
    
    2,485.7
    
    
    
    2,437.4
    
    
    
    2,462.1
    
    
    
    2,374.4Real estate  construction
    
    
    1,860.6
    
    
    
    1,731.9
    
    
    
    1,516.8
    
    
    
    982.3
    
    
    
    731.8Commercial mortgage
    
    
    1,694.1
    
    
    
    1,382.2
    
    
    
    1,240.8
    
    
    
    1,229.1
    
    
    
    1,168.6Total commercial loans
    
    
    6,369.3
    
    
    
    5,599.8
    
    
    
    5,195.0
    
    
    
    4,673.5
    
    
    
    4,274.8Residential mortgage
    
    
    562.0
    
    
    
    556.3
    
    
    
    495.2
    
    
    
    438.6
    
    
    
    453.8Consumer
    
    
    1,728.7
    
    
    
    1,526.6
    
    
    
    1,458.2
    
    
    
    1,329.3
    
    
    
    1,134.1Loans secured with investments
    
    
    540.0
    
    
    
    529.3
    
    
    
    551.4
    
    
    
    605.7
    
    
    
    607.7Total retail loans
    
    
    2,830.7
    
    
    
    2,612.2
    
    
    
    2,504.8
    
    
    
    2,373.6
    
    
    
    2,195.6Total loans net of unearned income
    
    
    9,200.0
    
    
    
    8,212.0
    
    
    
    7,699.8
    
    
    
    7,047.1
    
    
    
    6,470.4Reserve for loan losses
    
    
    (108.1
    )
    
    
    (95.5
    )
    
    
    (91.8
    )
    
    
    (90.9
    )
    
    
    (90.3
    )Net loans
    
    
    9,091.9
    
    
    
    8,116.5
    
    
    
    7,608.0
    
    
    
    6,956.2
    
    
    
    6,380.1Premises and equipment
    
    
    153.5
    
    
    
    149.6
    
    
    
    150.6
    
    
    
    148.9
    
    
    
    152.0Goodwill
    
    
    356.0
    
    
    
    314.3
    
    
    
    339.6
    
    
    
    341.4
    
    
    
    290.9Other intangibles
    
    
    42.4
    
    
    
    36.6
    
    
    
    37.4
    
    
    
    41.5
    
    
    
    31.1Other assets
    
    
    301.1
    
    
    
    257.4
    
    
    
    203.0
    
    
    
    175.5
    
    
    
    169.2Total assets
    
    $
    11,881.2
    
    
    $
    10,997.4
    
    
    $
    10,495.1
    
    
    $
    9,803.0
    
    
    $
    9,127.8LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Noninterest-bearing demand
    
    $
    841.7
    
    
    $
    722.4
    
    
    $
    759.1
    
    
    $
    992.0
    
    
    $
    927.5Interest-bearing:Savings
    
    
    779.3
    
    
    
    500.1
    
    
    
    311.4
    
    
    
    344.9
    
    
    
    369.1Interest-bearing demand
    
    
    2,470.4
    
    
    
    2,400.2
    
    
    
    2,365.1
    
    
    
    2,303.8
    
    
    
    2,311.1Certificates under $100,000
    
    
    1,006.3
    
    
    
    1,010.1
    
    
    
    979.4
    
    
    
    824.4
    
    
    
    768.3Local certificates $100,000 and over
    
    
    299.5
    
    
    
    412.7
    
    
    
    521.7
    
    
    
    401.5
    
    
    
    177.7Total core deposits
    
    
    5,397.2
    
    
    
    5,045.5
    
    
    
    4,936.7
    
    
    
    4,866.6
    
    
    
    4,553.7National certificates $100,000 and over
    
    
    2,846.3
    
    
    
    2,756.7
    
    
    
    2,803.9
    
    
    
    2,306.6
    
    
    
    2,039.5Total deposits
    
    
    8,243.5
    
    
    
    7,802.2
    
    
    
    7,740.6
    
    
    
    7,173.2
    
    
    
    6,593.2Short-term borrowings:Federal funds purchased and securities sold
under agreements to repurchase
    
    
    1,810.5
    
    
    
    1,465.0
    
    
    
    1,116.2
    
    
    
    1,096.3
    
    
    
    1,106.0U.S. Treasury demand
    
    
    18.5
    
    
    
    9.8
    
    
    
    11.1
    
    
    
    11.5
    
    
    
    9.5Line of credit and other debt
    
    
    54.5
    
    
    
    93.4
    
    
    
    8.5
    
    
    
    
    
    
    
    0.8Total short-term borrowings
    
    
    1,883.5
    
    
    
    1,568.2
    
    
    
    1,135.8
    
    
    
    1,107.8
    
    
    
    1,116.3Other liabilities
    
    
    232.6
    
    
    
    228.5
    
    
    
    164.9
    
    
    
    167.0
    
    
    
    156.3Long-term debt
    
    
    418.3
    
    
    
    307.3
    
    
    
    394.4
    
    
    
    405.5
    
    
    
    407.3Total liabilities
    
    
    10,777.9
    
    
    
    9,906.2
    
    
    
    9,435.7
    
    
    
    8,853.5
    
    
    
    8,273.1Minority interest
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.4Stockholders equity:Preferred stock
    
    
    17.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other stockholders equity
    
    
    1,085.2
    
    
    
    1,091.0
    
    
    
    1,059.1
    
    
    
    949.3
    
    
    
    854.3Total stockholders equity
    
    
    1,103.1
    
    
    
    1,091.0
    
    
    
    1,059.1
    
    
    
    949.3
    
    
    
    854.3Total liabilities and stockholders equity
    
    $
    11,881.2
    
    
    $
    10,997.4
    
    
    $
    10,495.1
    
    
    $
    9,803.0
    
    
    $
    9,127.8




---



##### 



71
 FIVE-YEAR COMPARISON OF
 CONSOLIDATED STATEMENTS
OF INCOME
 For the year ended December 31 (in millions, except share amounts)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004NET INTEREST INCOMEInterest income
    
    $
    611.4
    
    
    $
    722.2
    
    
    $
    674.8
    
    
    $
    516.6
    
    
    $
    386.5Interest expense
    
    
    253.7
    
    
    
    353.3
    
    
    
    311.7
    
    
    
    187.7
    
    
    
    92.1Net interest income
    
    
    357.7
    
    
    
    368.9
    
    
    
    363.1
    
    
    
    328.9
    
    
    
    294.4Provision for loan losses
    
    
    (115.5
    )
    
    
    (28.2
    )
    
    
    (21.3
    )
    
    
    (11.8
    )
    
    
    (15.6
    )Net interest income after provision for loan losses
    
    
    242.2
    
    
    
    340.7
    
    
    
    341.8
    
    
    
    317.1
    
    
    
    278.8NONINTEREST INCOMEAdvisory fees:Wealth Advisory Services
    
    
    224.7
    
    
    
    220.1
    
    
    
    192.0
    
    
    
    172.1
    
    
    
    155.6Corporate Client Services
    
    
    131.8
    
    
    
    98.6
    
    
    
    85.6
    
    
    
    76.3
    
    
    
    71.6Cramer Rosenthal McGlynn
    
    
    16.4
    
    
    
    20.7
    
    
    
    19.3
    
    
    
    16.1
    
    
    
    10.9Roxbury Capital Management
    
    
    (0.7
    )
    
    
    1.2
    
    
    
    1.2
    
    
    
    1.4
    
    
    
    1.6Total advisory fees
    
    
    372.2
    
    
    
    340.6
    
    
    
    298.1
    
    
    
    265.9
    
    
    
    239.7Amortization of affiliate intangibles
    
    
    (7.7
    )
    
    
    (4.7
    )
    
    
    (4.2
    )
    
    
    (4.0
    )
    
    
    (2.5
    )Total advisory fees after amortization of affiliate intangibles
    
    
    364.5
    
    
    
    335.9
    
    
    
    293.9
    
    
    
    261.9
    
    
    
    237.2Service charges on deposit accounts
    
    
    30.2
    
    
    
    28.3
    
    
    
    28.2
    
    
    
    28.1
    
    
    
    31.4Other noninterest income
    
    
    28.3
    
    
    
    21.7
    
    
    
    23.8
    
    
    
    22.5
    
    
    
    18.6Securities (losses)/gains
    
    
    (130.6
    )
    
    
    0.1
    
    
    
    0.2
    
    
    
    0.8
    
    
    
    (0.5
    )Total noninterest income
    
    
    292.4
    
    
    
    386.0
    
    
    
    346.1
    
    
    
    313.3
    
    
    
    286.7Net interest and noninterest income
    
    
    534.6
    
    
    
    726.7
    
    
    
    687.9
    
    
    
    630.4
    
    
    
    565.5NONINTEREST EXPENSESalaries and wages
    
    
    196.3
    
    
    
    172.8
    
    
    
    154.4
    
    
    
    139.8
    
    
    
    134.7Incentives and bonuses
    
    
    48.1
    
    
    
    46.9
    
    
    
    39.8
    
    
    
    38.0
    
    
    
    35.1Employment benefits
    
    
    51.7
    
    
    
    50.9
    
    
    
    48.3
    
    
    
    47.2
    
    
    
    40.7Net occupancy
    
    
    30.8
    
    
    
    28.3
    
    
    
    25.7
    
    
    
    22.4
    
    
    
    21.2Furniture, equipment, and supplies
    
    
    43.3
    
    
    
    39.2
    
    
    
    38.3
    
    
    
    34.7
    
    
    
    32.1Other noninterest expense
    
    
    122.6
    
    
    
    106.0
    
    
    
    92.8
    
    
    
    88.0
    
    
    
    86.0Total noninterest expense before impairment
    
    
    492.8
    
    
    
    444.1
    
    
    
    399.3
    
    
    
    370.1
    
    
    
    349.8Goodwill impairment write-down
    
    
    66.9
    
    
    
    
    
    
    
    72.3
    
    
    
    
    
    
    
    Total noninterest expense
    
    
    559.7
    
    
    
    444.1
    
    
    
    471.6
    
    
    
    370.1
    
    
    
    349.8NET(LOSS)/INCOME(Loss)/income before income taxes and minority interest
    
    
    (25.1
    )
    
    
    282.6
    
    
    
    216.3
    
    
    
    260.3
    
    
    
    215.7Income tax (benefit)/expense
    
    
    (2.0
    )
    
    
    99.7
    
    
    
    72.7
    
    
    
    93.0
    
    
    
    77.9Net (loss)/income before minority interest
    
    
    (23.1
    )
    
    
    182.9
    
    
    
    143.6
    
    
    
    167.3
    
    
    
    137.8Minority interest
    
    
    0.5
    
    
    
    0.9
    
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9Net(loss)/income
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8
    
    
    $
    167.0
    
    
    $
    136.9Net (loss)/income per common share  basic
    
    $
    (0.36
    )
    
    $
    2.68
    
    
    $
    2.10
    
    
    $
    2.47
    
    
    $
    2.05Net (loss)/income per common share  diluted
    
    $
    (0.36
    )
    
    $
    2.64
    
    
    $
    2.06
    
    
    $
    2.43
    
    
    $
    2.02Weighted
average common shares outstanding (in thousands):Basic
    
    
    67,454
    
    
    
    67,946
    
    
    
    68,413
    
    
    
    67,688
    
    
    
    66,793Diluted
    
    
    67,454
    
    
    
    68,851
    
    
    
    69,675
    
    
    
    68,570
    
    
    
    67,749Net (loss)/income as a percentage of:Average total assets
    
    
    (0.20
    )%
    
    
    1.65
    %
    
    
    1.37
    %
    
    
    1.70
    %
    
    
    1.50
    %Average common stockholders equity
    
    
    (2.17
    )%
    
    
    16.68
    %
    
    
    13.58
    %
    
    
    17.59
    %
    
    
    16.02
    %EXCLUDING IMPAIRMENT WRITE-DOWNS(Loss)/income before income taxes and minority interest
    
    $
    (25.1
    )
    
    $
    282.6
    
    
    $
    216.3
    
    
    $
    260.3
    
    
    $
    215.7Impairment write-downs
    
    
    197.6
    
    
    
    
    
    
    
    72.3
    
    
    
    
    
    
    
    Income before income taxes, minority interest, and
impairment write-downs
    
    
    172.5
    
    
    
    282.6
    
    
    
    288.6
    
    
    
    260.3
    
    
    
    215.7Income tax expense
    
    
    72.6
    
    
    
    99.7
    
    
    
    103.3
    
    
    
    93.0
    
    
    
    77.9Net income before minority interest and impairment write-downs
    
    
    99.9
    
    
    
    182.9
    
    
    
    185.3
    
    
    
    167.3
    
    
    
    137.8Minority interest
    
    
    0.5
    
    
    
    0.9
    
    
    
    (0.2
    )
    
    
    0.3
    
    
    
    0.9Net income before impairment write-downs
    
    $
    99.4
    
    
    $
    182.0
    
    
    $
    185.5
    
    
    $
    167.0
    
    
    $
    136.9Net income per common share  basic
    
    $
    1.46
    
    
    $
    2.68
    
    
    $
    2.71
    
    
    $
    2.47
    
    
    $
    2.05Net income per common share  diluted
    
    $
    1.46
    
    
    $
    2.64
    
    
    $
    2.66
    
    
    $
    2.43
    
    
    $
    2.02Weighted average common shares outstanding (in thousands):Basic
    
    
    67,454
    
    
    
    67,946
    
    
    
    68,413
    
    
    
    67,688
    
    
    
    66,793Diluted
    
    
    67,607
    
    
    
    68,851
    
    
    
    69,675
    
    
    
    68,570
    
    
    
    67,749Net income as a percentage of:Average total assets
    
    
    0.83
    %
    
    
    1.65
    %
    
    
    1.76
    %
    
    
    1.70
    %
    
    
    1.50
    %Average common stockholders equity
    
    
    8.97
    %
    
    
    16.68
    %
    
    
    17.34
    %
    
    
    17.59
    %
    
    
    16.02
    %




---



##### 



72       Wilmington Trust Corporation

2008 Annual Report
 SUMMARY
OF CONSOLIDATED
 
 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
 For the quarter ended
    
    2008
    
    
    2007(in millions, except per share amounts)
    
    Dec. 31
    
    
    Sept. 30
    
    
    June 30
    
    
    Mar. 31
    
    
    Dec. 31
    
    
    Sept. 30
    
    
    June 30
    
    
    Mar. 31NET INTEREST INCOMEInterest income
    
    $
    147.1
    
    
    $
    152.1
    
    
    $
    150.0
    
    
    $
    162.4
    
    
    $
    177.9
    
    
    $
    183.4
    
    
    $
    180.8
    
    
    $
    180.0Interest expense
    
    
    52.5
    
    
    
    61.0
    
    
    
    64.8
    
    
    
    75.5
    
    
    
    86.8
    
    
    
    89.3
    
    
    
    88.0
    
    
    
    89.2Net interest income
    
    
    94.6
    
    
    
    91.1
    
    
    
    85.2
    
    
    
    86.9
    
    
    
    91.1
    
    
    
    94.1
    
    
    
    92.8
    
    
    
    90.8Provision for loan losses
    
    
    (67.5
    )
    
    
    (19.6
    )
    
    
    (18.5
    )
    
    
    (10.0
    )
    
    
    (9.2
    )
    
    
    (8.9
    )
    
    
    (6.5
    )
    
    
    (3.6
    )Net interest income after provision
for loan losses
    
    
    27.1
    
    
    
    71.5
    
    
    
    66.7
    
    
    
    76.9
    
    
    
    81.9
    
    
    
    85.2
    
    
    
    86.3
    
    
    
    87.2NONINTEREST INCOMEAdvisory fees:Wealth Advisory Services
    
    
    54.0
    
    
    
    57.3
    
    
    
    57.8
    
    
    
    55.7
    
    
    
    59.1
    
    
    
    56.1
    
    
    
    53.4
    
    
    
    51.5Corporate Client Services
    
    
    39.7
    
    
    
    34.4
    
    
    
    31.7
    
    
    
    26.0
    
    
    
    26.2
    
    
    
    23.6
    
    
    
    24.8
    
    
    
    24.0Cramer Rosenthal McGlynn
    
    
    3.1
    
    
    
    3.8
    
    
    
    5.5
    
    
    
    4.0
    
    
    
    5.5
    
    
    
    4.2
    
    
    
    6.3
    
    
    
    4.7Roxbury Capital Management
    
    
    (0.3
    )
    
    
    0.4
    
    
    
    (1.1
    )
    
    
    0.3
    
    
    
    0.4
    
    
    
    0.4
    
    
    
    0.2
    
    
    
    0.1Total advisory fees
    
    
    96.5
    
    
    
    95.9
    
    
    
    93.9
    
    
    
    86.0
    
    
    
    91.2
    
    
    
    84.3
    
    
    
    84.7
    
    
    
    80.3Amortization of affiliate intangibles
    
    
    (2.3
    )
    
    
    (2.2
    )
    
    
    (2.0
    )
    
    
    (1.2
    )
    
    
    (1.3
    )
    
    
    (1.2
    )
    
    
    (1.1
    )
    
    
    (1.1
    )Advisory fees after amortization of
affiliate intangibles
    
    
    94.2
    
    
    
    93.7
    
    
    
    91.9
    
    
    
    84.8
    
    
    
    89.9
    
    
    
    83.1
    
    
    
    83.6
    
    
    
    79.2Service charges on deposit accounts
    
    
    7.3
    
    
    
    7.7
    
    
    
    7.5
    
    
    
    7.6
    
    
    
    7.3
    
    
    
    7.2
    
    
    
    7.0
    
    
    
    6.8Other noninterest income
    
    
    5.5
    
    
    
    6.1
    
    
    
    6.3
    
    
    
    10.4
    
    
    
    5.3
    
    
    
    4.7
    
    
    
    6.2
    
    
    
    5.4Securities (losses)/gains
    
    
    (98.4
    )
    
    
    (19.7
    )
    
    
    (12.5
    )
    
    
    
    
    
    
    0.2
    
    
    
    (0.2
    )
    
    
    0.1
    
    
    
    Noninterest income
    
    
    8.6
    
    
    
    87.8
    
    
    
    93.2
    
    
    
    102.8
    
    
    
    102.7
    
    
    
    94.8
    
    
    
    96.9
    
    
    
    91.4Net interest and noninterest income
    
    
    35.7
    
    
    
    159.3
    
    
    
    159.9
    
    
    
    179.7
    
    
    
    184.6
    
    
    
    180.0
    
    
    
    183.2
    
    
    
    178.6NONINTEREST EXPENSESalaries and wages
    
    
    51.7
    
    
    
    50.6
    
    
    
    48.3
    
    
    
    45.7
    
    
    
    45.0
    
    
    
    44.1
    
    
    
    41.9
    
    
    
    41.8Incentives and bonuses
    
    
    8.6
    
    
    
    11.8
    
    
    
    13.2
    
    
    
    14.5
    
    
    
    11.5
    
    
    
    10.0
    
    
    
    11.4
    
    
    
    14.0Employment benefits
    
    
    12.1
    
    
    
    12.8
    
    
    
    12.4
    
    
    
    14.3
    
    
    
    12.0
    
    
    
    12.7
    
    
    
    11.5
    
    
    
    14.6Net occupancy
    
    
    7.3
    
    
    
    7.9
    
    
    
    8.0
    
    
    
    7.5
    
    
    
    7.4
    
    
    
    7.3
    
    
    
    6.8
    
    
    
    6.8Furniture, equipment, and supplies
    
    
    11.8
    
    
    
    11.7
    
    
    
    10.3
    
    
    
    9.8
    
    
    
    9.7
    
    
    
    10.0
    
    
    
    9.8
    
    
    
    9.7Other noninterest expense:Advertising and contributions
    
    
    2.8
    
    
    
    2.6
    
    
    
    3.0
    
    
    
    2.1
    
    
    
    3.2
    
    
    
    2.0
    
    
    
    2.8
    
    
    
    2.7Servicing and consulting fees
    
    
    4.8
    
    
    
    2.9
    
    
    
    3.2
    
    
    
    2.5
    
    
    
    3.4
    
    
    
    2.6
    
    
    
    2.8
    
    
    
    2.4Subadvisor expense:Retirement services
    
    
    6.7
    
    
    
    2.0
    
    
    
    0.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    Other services
    
    
    2.4
    
    
    
    2.7
    
    
    
    2.7
    
    
    
    2.7
    
    
    
    2.8
    
    
    
    2.7
    
    
    
    2.4
    
    
    
    2.5Travel, entertainment, and training
    
    
    2.8
    
    
    
    3.2
    
    
    
    2.9
    
    
    
    2.4
    
    
    
    3.3
    
    
    
    2.8
    
    
    
    2.4
    
    
    
    2.2Originating and processing fees
    
    
    2.8
    
    
    
    2.8
    
    
    
    2.6
    
    
    
    2.4
    
    
    
    2.9
    
    
    
    2.8
    
    
    
    2.7
    
    
    
    2.5Other expense
    
    
    18.0
    
    
    
    12.9
    
    
    
    14.2
    
    
    
    11.6
    
    
    
    15.7
    
    
    
    13.8
    
    
    
    11.4
    
    
    
    11.2Total other noninterest expense
    
    
    40.3
    
    
    
    29.1
    
    
    
    29.4
    
    
    
    23.7
    
    
    
    31.3
    
    
    
    26.7
    
    
    
    24.6
    
    
    
    23.5Total noninterest expense
before impairment
    
    
    131.8
    
    
    
    123.9
    
    
    
    121.6
    
    
    
    115.5
    
    
    
    116.9
    
    
    
    110.8
    
    
    
    106.0
    
    
    
    110.4Goodwill impairment write-down
    
    
    
    
    
    
    
    
    
    
    66.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total noninterest expense
    
    
    131.8
    
    
    
    123.9
    
    
    
    188.5
    
    
    
    115.5
    
    
    
    116.9
    
    
    
    110.8
    
    
    
    106.0
    
    
    
    110.4NET (LOSS)/INCOME(Loss)/income before income taxes
and minority interest
    
    
    (96.1
    )
    
    
    35.4
    
    
    
    (28.6
    )
    
    
    64.2
    
    
    
    67.7
    
    
    
    69.2
    
    
    
    77.2
    
    
    
    68.2Income tax (benefit)/expense
    
    
    (27.6
    )
    
    
    12.3
    
    
    
    (9.3
    )
    
    
    22.7
    
    
    
    23.6
    
    
    
    22.9
    
    
    
    28.3
    
    
    
    24.6Net (loss)/income before minority
interest
    
    
    (68.5
    )
    
    
    23.1
    
    
    
    (19.3
    )
    
    
    41.5
    
    
    
    44.1
    
    
    
    46.3
    
    
    
    48.9
    
    
    
    43.6Minority interest
    
    
    
    
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    0.6Net (loss)/income
    
    $
    (68.5
    )
    
    $
    22.9
    
    
    $
    (19.5
    )
    
    $
    41.4
    
    
    $
    44.0
    
    
    $
    46.2
    
    
    $
    48.9
    
    
    $
    43.0Net (loss)/income per common share 
basic
    
    $
    (1.02
    )
    
    $
    0.34
    
    
    $
    (0.29
    )
    
    $
    0.62
    
    
    $
    0.66
    
    
    $
    0.68
    
    
    $
    0.71
    
    
    $
    0.63Net (loss)/income per common share 
diluted
    
    $
    (1.02
    )
    
    $
    0.34
    
    
    $
    (0.29
    )
    
    $
    0.62
    
    
    $
    0.65
    
    
    $
    0.67
    
    
    $
    0.70
    
    
    $
    0.62EXCLUDING IMPAIRMENT WRITE-DOWNS(Loss)/income before income taxes
and minority interest
    
    $
    (96.1
    )
    
    $
    35.4
    
    
    $
    (28.6
    )
    
    $
    64.2
    
    
    $
    67.7
    
    
    $
    69.2
    
    
    $
    77.2
    
    
    $
    68.2Impairment write-downs
    
    
    98.4
    
    
    
    19.7
    
    
    
    79.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income before income taxes, minority
interest, and impairment write-downs
    
    
    2.3
    
    
    
    55.1
    
    
    
    50.9
    
    
    
    64.2
    
    
    
    67.7
    
    
    
    69.2
    
    
    
    77.2
    
    
    
    68.2Income tax expense
    
    
    11.8
    
    
    
    19.5
    
    
    
    18.7
    
    
    
    22.7
    
    
    
    23.6
    
    
    
    22.9
    
    
    
    28.3
    
    
    
    24.6Net (loss)/income before minority
interest and impairment write-downs
    
    
    (9.5
    )
    
    
    35.6
    
    
    
    32.2
    
    
    
    41.5
    
    
    
    44.1
    
    
    
    46.3
    
    
    
    48.9
    
    
    
    43.6Minority interest
    
    
    

    
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    
    
    
    
    0.6Net (loss)/income before impairment
write-downs
    
    $
    (9.5
    )
    
    $
    35.4
    
    
    $
    32.0
    
    
    $
    41.4
    
    
    $
    44.0
    
    
    $
    46.2
    
    
    $
    48.9
    
    
    $
    43.0Net (loss)/income per common share -
basic
    
    $
    (0.15
    )
    
    $
    0.53
    
    
    $
    0.48
    
    
    $
    0.62
    
    
    $
    0.66
    
    
    $
    0.68
    
    
    $
    0.71
    
    
    $
    0.63Net (loss)/income per common share -
diluted
    
    $
    (0.15
    )
    
    $
    0.53
    
    
    $
    0.47
    
    
    $
    0.62
    
    
    $
    0.65
    
    
    $
    0.67
    
    
    $
    0.70
    
    
    $
    0.62




---



##### 



73
 
 CONSOLIDATED STATEMENTS OF CONDITION
 As of December 31 (in millions, except share amounts)
    
    2008
    
    
    2007ASSETSCash and due from banks
    
    $
    290.4
    
    
    $
    260.5Interest-bearing deposits in other banks
    
    
    141.0
    
    
    
    4.4Federal funds sold and securities purchased under agreements to resell
    
    
    45.3
    
    
    
    129.6Investment securities available for sale
    
    
    1,210.7
    
    
    
    1,844.7Investment securities held to maturity (fair value of $119.2 in 2008 and $2.1 in 2007)
    
    
    162.6
    
    
    
    2.1Federal Home Loan Bank and Federal Reserve Bank stock, at cost
    
    
    20.0
    
    
    
    22.4Loans:Commercial, financial, and agricultural
    
    
    2,966.3
    
    
    
    2,594.9Real estate  construction
    
    
    1,923.8
    
    
    
    1,780.4Commercial mortgage
    
    
    1,870.2
    
    
    
    1,463.4Total commercial loans
    
    
    6,760.3
    
    
    
    5,838.7Residential mortgage
    
    
    571.2
    
    
    
    562.0Consumer
    
    
    1,732.9
    
    
    
    1,571.6Loans secured with investments
    
    
    554.7
    
    
    
    503.5Total retail loans
    
    
    2,858.8
    
    
    
    2,637.1Total loans, net of unearned income of $5.6 in 2008 and $5.4 in 2007
    
    
    9,619.1
    
    
    
    8,475.8Reserve for loan losses
    
    
    (157.1
    )
    
    
    (101.1
    )Net loans
    
    
    9,462.0
    
    
    
    8,374.7Premises and equipment, net
    
    
    152.0
    
    
    
    152.1Goodwill, net of accumulated amortization of $29.8 in 2008 and 2007
    
    
    355.6
    
    
    
    330.0Other intangible assets, net of accumulated amortization of $39.6 in 2008 and $31.6 in 2007
    
    
    47.0
    
    
    
    38.3Accrued interest receivable
    
    
    82.0
    
    
    
    80.0Other assets
    
    
    350.3
    
    
    
    246.9Total assets
    
    $
    12,318.9
    
    
    $
    11,485.7LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Noninterest-bearing demand
    
    $
    1,365.3
    
    
    $
    966.2Interest-bearing:Savings
    
    
    815.7
    
    
    
    659.8Interest-bearing demand
    
    
    2,632.9
    
    
    
    2,471.8Certificates under $100,000
    
    
    1,072.5
    
    
    
    1,011.4Local certificates $100,000 and over
    
    
    230.7
    
    
    
    356.3Total core deposits
    
    
    6,117.1
    
    
    
    5,465.5National certificates $100,000 and over
    
    
    2,432.9
    
    
    
    2,392.0Total deposits
    
    
    8,550.0
    
    
    
    7,857.5Short-term borrowings:Federal funds purchased and securities sold under agreements to repurchase
    
    
    1,590.8
    
    
    
    1,775.3U.S. Treasury demand deposits
    
    
    6.4
    
    
    
    77.3Line of credit and other debt
    
    
    20.0
    
    
    
    139.5Total short-term borrowings
    
    
    1,617.2
    
    
    
    1,992.1Accrued interest payable
    
    
    71.2
    
    
    
    78.8Other liabilities
    
    
    277.6
    
    
    
    169.1Long-term debt
    
    
    468.8
    
    
    
    267.8Total liabilities
    
    
    10,984.8
    
    
    
    10,365.3Minority interest
    
    
    0.2
    
    
    
    0.1Stockholders equity:Preferred
stock: $1.00 par value, 1,000,000 shares authorized, 330,000 5% cumulative shares issued and outstanding
    
    
    321.5
    
    
    
    Common stock: $1.00 par value, authorized 150,000,000 shares, issued 78,528,346 shares
    
    
    78.5
    
    
    
    78.5Capital surplus
    
    
    216.4
    
    
    
    188.1Retained earnings
    
    
    1,103.7
    
    
    
    1,221.1Accumulated other comprehensive loss
    
    
    (84.5
    )
    
    
    (28.4
    )Total contributed capital and retained earnings
    
    
    1,635.6
    
    
    
    1,459.3Less: treasury stock: 9,414,898 shares in 2008 and 11,441,800 shares in 2007, at cost
    
    
    (301.7
    )
    
    
    (339.0
    )Total stockholders equity
    
    
    1,333.9
    
    
    
    1,120.3Total liabilities and stockholders equity
    
    $
    12,318.9
    
    
    $
    11,485.7
 Notes to Consolidated Financial Statements




---



##### 



74       Wilmington Trust Corporation

2008 Annual Report
 
 CONSOLIDATED STATEMENTS OF INCOME
 For the year ended December 31 (in millions, except share amounts)
    
    2008
    
    
    2007
    
    
    2006NET INTEREST INCOMEInterest and fees on loans
    
    $
    532.8
    
    
    $
    627.5
    
    
    $
    583.2Interest and dividends on investment securities:Taxable interest
    
    
    73.1
    
    
    
    87.4
    
    
    
    82.3Tax-exempt interest
    
    
    0.4
    
    
    
    0.5
    
    
    
    0.6Dividends
    
    
    2.5
    
    
    
    4.4
    
    
    
    5.4Interest on deposits in other banks
    
    
    1.2
    
    
    
    0.3
    
    
    
    0.2Interest on federal funds sold and securities purchased under agreements to resell
    
    
    0.7
    
    
    
    1.7
    
    
    
    2.5Dividends on Federal Home Loan Bank and Federal Reserve Bank stock
    
    
    0.7
    
    
    
    0.4
    
    
    
    0.6Total interest income
    
    
    611.4
    
    
    
    722.2
    
    
    
    674.8Interest on deposits
    
    
    182.7
    
    
    
    257.0
    
    
    
    231.3Interest on short-term borrowings
    
    
    41.7
    
    
    
    76.8
    
    
    
    54.2Interest on long-term debt
    
    
    29.3
    
    
    
    19.5
    
    
    
    26.2Total interest expense
    
    
    253.7
    
    
    
    353.3
    
    
    
    311.7Net interest income
    
    
    357.7
    
    
    
    368.9
    
    
    
    363.1Provision for loan losses
    
    
    (115.5
    )
    
    
    (28.2
    )
    
    
    (21.3
    )Net interest income after provision for loan losses
    
    
    242.2
    
    
    
    340.7
    
    
    
    341.8NONINTEREST INCOMEAdvisory fees:Wealth Advisory Services:Trust and investment advisory fees
    
    
    152.0
    
    
    
    158.6
    
    
    
    136.5Mutual fund fees
    
    
    27.2
    
    
    
    21.4
    
    
    
    20.2Planning and other services
    
    
    45.5
    
    
    
    40.1
    
    
    
    35.3Total Wealth Advisory Services
    
    
    224.7
    
    
    
    220.1
    
    
    
    192.0Corporate Client Services:Capital markets services
    
    
    48.1
    
    
    
    42.9
    
    
    
    37.0Entity management services
    
    
    32.4
    
    
    
    30.0
    
    
    
    26.8Retirement services
    
    
    37.4
    
    
    
    12.9
    
    
    
    11.5Investment/cash management services
    
    
    13.9
    
    
    
    12.8
    
    
    
    10.3Total Corporate Client Services
    
    
    131.8
    
    
    
    98.6
    
    
    
    85.6Cramer Rosenthal McGlynn
    
    
    16.4
    
    
    
    20.7
    
    
    
    19.3Roxbury Capital Management
    
    
    (0.7
    )
    
    
    1.2
    
    
    
    1.2Total advisory fees
    
    
    372.2
    
    
    
    340.6
    
    
    
    298.1Amortization of affiliate intangibles
    
    
    (7.7
    )
    
    
    (4.7
    )
    
    
    (4.2
    )Total advisory fees after amortization of affiliate intangibles
    
    
    364.5
    
    
    
    335.9
    
    
    
    293.9Service charges on deposit accounts
    
    
    30.2
    
    
    
    28.3
    
    
    
    28.2Loan fees and late charges
    
    
    8.9
    
    
    
    8.6
    
    
    
    8.0Card fees
    
    
    9.6
    
    
    
    7.2
    
    
    
    9.2Other noninterest income
    
    
    9.8
    
    
    
    5.9
    
    
    
    6.6Securities (losses)/gains
    
    
    (130.6
    )
    
    
    0.1
    
    
    
    0.2Total noninterest income
    
    
    292.4
    
    
    
    386.0
    
    
    
    346.1Net interest and noninterest income
    
    $
    534.6
    
    
    $
    726.7
    
    
    $
    687.9




---



##### 



75
 For the year ended December 31 (in millions, except share amounts)
    
    2008
    
    
    2007
    
    
    2006NONINTEREST EXPENSESalaries and wages
    
    $
    196.3
    
    
    $
    172.8
    
    
    $
    154.4Incentives and bonuses
    
    
    48.1
    
    
    
    46.9
    
    
    
    39.8Employment benefits
    
    
    51.7
    
    
    
    50.9
    
    
    
    48.3Net occupancy
    
    
    30.8
    
    
    
    28.3
    
    
    
    25.7Furniture, equipment, and supplies
    
    
    43.3
    
    
    
    39.2
    
    
    
    38.3Advertising and contributions
    
    
    10.5
    
    
    
    10.7
    
    
    
    9.4Servicing and consulting fees
    
    
    13.4
    
    
    
    11.2
    
    
    
    10.4Subadvisor expense:Retirement services
    
    
    9.6
    
    
    
    0.1
    
    
    
    0.1Other services
    
    
    10.3
    
    
    
    10.4
    
    
    
    10.6Travel, entertainment, and training
    
    
    11.3
    
    
    
    10.7
    
    
    
    10.4Originating and processing fees
    
    
    10.6
    
    
    
    10.9
    
    
    
    11.1Other noninterest expense
    
    
    56.9
    
    
    
    52.0
    
    
    
    40.8Total noninterest expense before impairment
    
    
    492.8
    
    
    
    444.1
    
    
    
    399.3Goodwill impairment write-down
    
    
    66.9
    
    
    
    
    
    
    
    72.3Total noninterest expense
    
    
    559.7
    
    
    
    444.1
    
    
    
    471.6NET (LOSS)/INCOME(Loss)/income before income taxes and minority interest
    
    
    (25.1
    )
    
    
    282.6
    
    
    
    216.3Income tax (benefit)/expense
    
    
    (2.0
    )
    
    
    99.7
    
    
    
    72.7Net (loss)/income before minority interest
    
    $
    (23.1
    )
    
    $
    182.9
    
    
    $
    143.6Minority interest
    
    
    0.5
    
    
    
    0.9
    
    
    
    (0.2
    )Net (loss)/income
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8Net (loss)/income per common share:Basic
    
    $
    (0.36
    )
    
    $
    2.68
    
    
    $
    2.10Diluted
    
    $
    (0.36
    )
    
    $
    2.64
    
    
    $
    2.06Weighted average common shares outstanding (in thousands):Basic
    
    
    67,454
    
    
    
    67,946
    
    
    
    68,413Diluted
    
    
    67,454
    
    
    
    68,851
    
    
    
    69,675
 Notes to Consolidated Financial Statements




---



##### 



76       Wilmington Trust Corporation

2008 Annual Report
 
 CONSOLIDATED
STATEMENTS OF
 CHANGES
IN STOCKHOLDERS EQUITY
 Accumulatedother com-Preferred
    
    
    Common
    
    
    Capital
    
    
    Retained
    
    
    prehensive
    
    
    Treasury(in millions, except share amounts)
    
    stock
    
    
    stock2
    
    
    surplus
    
    
    earnings
    
    

loss3
    
    
    stock
    
    
    Total2008Balance at January 1, 2008
    
    $
    
    
    
    $
    78.5
    
    
    $
    188.1
    
    
    $
    1,221.1
    
    
    $
    (28.4
    )
    
    $
    (339.0
    )
    
    $
    1,120.3Comprehensive loss:Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23.6
    )
    
    
    
    
    
    
    
    
    
    
    (23.6
    )Other comprehensive loss1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (56.1
    )
    
    
    
    
    
    
    (56.1
    )Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (79.7
    )Cash dividends paid: $1.37 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (92.5
    )
    
    
    
    
    
    
    
    
    
    
    (92.5
    )Preferred stock issued
    
    
    321.5
    
    
    
    
    
    
    
    8.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    330.0Pension/SERP6 adjustment due to change in measurement date, net of taxes7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.3
    )
    
    
    
    
    
    
    
    
    
    
    (1.3
    )Common stock
issued under employment benefit plans and to the Board of Directors (353,197 shares issued)
    
    
    
    
    
    
    
    
    
    
    1.3
    
    
    
    
    
    
    
    
    
    
    
    5.9
    
    
    
    7.2Reissuance of treasury stock (1,727,300 shares)
    
    
    
    
    
    
    
    
    
    
    10.6
    
    
    
    
    
    
    
    
    
    
    
    33.1
    
    
    
    43.7Stock-based compensation expense
    
    
    
    
    
    
    
    
    
    
    8.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.0Acquisition of treasury stock (53,595 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.7
    )
    
    
    (1.7
    )Tax expense from stock-based compensation costs
    
    
    
    
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Balance at December 31, 2008
    
    $
    321.5
    
    
    $
    78.5
    
    
    $
    216.4
    
    
    $
    1,103.7
    
    
    $
    (84.5
    )
    
    $
    (301.7
    )
    
    $
    1,333.92007Balance at January 1, 2007
    
    $
    
    
    
    $
    78.5
    
    
    $
    168.6
    
    
    $
    1,130.4
    
    
    $
    (52.7
    )
    
    $
    (265.5
    )
    
    $
    1,059.3Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    182.0
    
    
    
    
    
    
    
    
    
    
    
    182.0Other comprehensive income1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24.3
    
    
    
    
    
    
    
    24.3Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    206.3Cash dividends paid: $1.32 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (89.9
    )
    
    
    
    
    
    
    
    
    
    
    (89.9
    )Common stock
issued under employment
benefit plans and to the Board of Directors
(807,955 shares issued)
    
    
    
    
    
    
    
    
    
    
    10.1
    
    
    
    
    
    
    
    
    
    
    
    13.0
    
    
    
    23.1Stock-based compensation expense
    
    
    
    
    
    
    
    
    
    
    8.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.1Acquisition of treasury stock (2,180,923 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (86.5
    )
    
    
    (86.5
    )Adoption of FASB Interpretation No. 48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.4
    )
    
    
    
    
    
    
    
    
    
    
    (1.4
    )Tax benefits from stock-based compensation costs
    
    
    
    
    
    
    
    
    
    
    1.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.3Balance at December 31, 2007
    
    $
    
    
    
    $
    78.5
    
    
    $
    188.1
    
    
    $
    1,221.1
    
    
    $
    (28.4
    )
    
    $
    (339.0
    )
    
    $
    1,120.3




---



##### 



77
 Accumulatedother com-Preferred
    
    
    Common
    
    
    Capital
    
    
    Retained
    
    
    prehensive
    
    
    Treasury(in millions, except share amounts)
    
    stock
    
    
    stock2
    
    
    surplus
    
    
    earnings
    
    
    loss3
    
    
    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 income1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.5
    
    
    
    
    
    
    
    3.5Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147.3Effect of adopting SFAS 158, net of taxes of $(18.6)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (34.4
    )
    
    
    
    
    
    
    (34.4
    )Cash dividends paid: $1.245 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (85.1
    )
    
    
    
    
    
    
    
    
    
    
    (85.1
    )Common stock
issued under employment benefit
plans and to the Board of Directors
(1,219,231 shares issued)
    
    
    
    
    
    
    
    
    
    
    11.3
    4
    
    
    
    
    
    
    
    
    
    
    19.3
    
    
    
    30.6Stock-based compensation expense
    
    
    
    
    
    
    
    
    
    
    7.8
    5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7.8Acquisition of treasury stock (662,996 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (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
    )
    
    $
    1,059.3
 1  Other comprehensive (loss)/income(in millions)
    
    2008
    
    
    2007
    
    
    2006Other comprehensive (loss)/income, net of tax:Net unrealized (losses)/gains on securities, net of taxes of $(54.0), $(2.6), and $2.9
    
    $
    (95.9
    )
    
    $
    (4.5
    )
    
    $
    5.0Net unrealized gain on equity method investments, net of taxes of $0.3, $0.0, and $0.0
    
    
    0.5
    
    
    
    
    
    
    
    Reclassification adjustment for securities losses/(gains) included in net income, net of
income taxes of $47.0, $0.0, and $(0.1)
    
    
    83.6
    
    
    
    (0.1
    )
    
    
    (0.1
    )Net
unrealized holding gains/(losses) arising during the year on derivatives used for
cash flow hedges, net of taxes of $4.9, $8.3, and $(1.5)
    
    
    8.8
    
    
    
    15.4
    
    
    
    (2.7
    )Reclassification adjustment from accumulated other comprehensive income into earnings of
discontinued cash flow hedges, net of taxes of $(3.6), $0.0, and $0.0
    
    
    (6.7
    )
    
    
    
    
    
    
    Reclassification
adjustment of derivative costs, net of income taxes of $(0.8), $0.7, and $0.1
    
    
    (1.4
    )
    
    
    1.3
    
    
    
    0.1Foreign currency translation adjustments, net of income taxes of $(1.5), $0.2, and $0.7
    
    
    (2.6
    )
    
    
    0.3
    
    
    
    1.2SERP6 liability adjustment, net of income taxes of $(1.9), $(0.4), and $0.0
    
    
    (3.6
    )
    
    
    (0.7
    )
    
    
    Postretirement benefits liability adjustment, net of income taxes of $5.1, $0.4, and $0.0
    
    
    9.6
    
    
    
    0.4
    
    
    
    Pension liability adjustment, net of income taxes of $(26.1), $6.5, and $0.0
    
    
    (48.4
    )
    
    
    12.2
    
    
    
    Total other comprehensive (loss)/income
    
    $
    (56.1
    )
    
    $
    24.3
    
    
    $
    3.5
 2
    
    Shares outstanding at December 31, 2008, 2007, and 2006 were 69,113,448, 67,086,546, and 68,459,514, respectively3
    
    See Note 21 for additional accumulated other comprehensive loss information4
    
    Includes reclassification of $(0.8) for 20065
    
    Includes reclassification of $0.8 for 20066
    
    Supplemental executive retirement plan7
    
    See Note 18 for measurement date information
 Notes to Consolidated Financial Statements




---



##### 



78       Wilmington Trust Corporation

2008 Annual Report
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006OPERATING ACTIVITIESNet (loss)/income
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    115.5
    
    
    
    28.2
    
    
    
    21.3Provision for depreciation and other amortization
    
    
    22.8
    
    
    
    22.8
    
    
    
    21.8Impairment write-down
    
    
    66.9
    
    
    
    
    
    
    
    72.3Amortization of other intangible assets
    
    
    8.9
    
    
    
    5.9
    
    
    
    5.4Minority interest in net income
    
    
    0.5
    
    
    
    0.9
    
    
    
    (0.2
    )(Accretion)/amortization of discounts and premiums on investment securities
    
    
    0.2
    
    
    
    (1.4
    )
    
    
    0.3Deferred income taxes
    
    
    (110.2
    )
    
    
    (14.7
    )
    
    
    (32.5
    )Originations of residential mortgages available for sale
    
    
    (96.8
    )
    
    
    (115.7
    )
    
    
    (82.4
    )Gross proceeds from sales of residential mortgages
    
    
    97.9
    
    
    
    117.2
    
    
    
    83.2Gains on sales of residential mortgages
    
    
    (1.1
    )
    
    
    (1.5
    )
    
    
    (0.8
    )Securities (gains)/losses:Other-than-temporary impairment
    
    
    130.7
    
    
    
    
    
    
    
    Other
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.2
    )Employer pension contributions
    
    
    (6.5
    )
    
    
    (10.0
    )
    
    
    (15.0
    )Amortization of gain on interest rate floors
    
    
    (12.7
    )
    
    
    
    
    
    
    Stock-based
compensation
expense2
    
    
    8.0
    
    
    
    8.1
    
    
    
    7.8Tax expense/(benefit) realized on employee exercise of stock options
    
    
    0.1
    
    
    
    (1.3
    )
    
    
    (4.5
    )Decrease/(increase) in other assets
    
    
    16.7
    
    
    
    (43.3
    )
    
    
    27.6Increase in other liabilities
    
    
    33.7
    
    
    
    46.0
    
    
    
    22.2Net cash provided by operating activities
    
    $
    250.9
    
    
    $
    223.1
    
    
    $
    270.1INVESTING ACTIVITIESProceeds from sales of investment securities available for sale
    
    $
    11.9
    
    
    $
    44.2
    
    
    $
    23.0Proceeds from sales of Federal Home Loan Bank and Federal Reserve Bank stock
    
    
    17.9
    
    
    
    8.7
    
    
    
    5.4Proceeds from maturities of investment securities available for sale
    
    
    1,208.6
    
    
    
    1,332.4
    
    
    
    1,404.0Proceeds from maturities of investment securities held to maturity
    
    
    4.2
    
    
    
    0.5
    
    
    
    0.8Purchases of investment securities available for sale
    
    
    (900.6
    )
    
    
    (1,121.4
    )
    
    
    (1,610.8
    )Purchases of investment securities held to maturity
    
    
    (0.6
    )
    
    
    (0.9
    )
    
    
    Purchases of Federal Home Loan Bank and Federal Reserve Bank stock
    
    
    (15.5
    )
    
    
    (23.8
    )
    
    
    (0.6
    )Investments in affiliates
    
    
    (16.8
    )
    
    
    (17.9
    )
    
    
    (13.3
    )Cash paid for acquisitions
    
    
    (109.9
    )
    
    
    (30.7
    )
    
    
    (4.7
    )Proceeds from sale of affiliate interest
    
    
    0.3
    
    
    
    
    
    
    
    Purchase of client list
    
    
    
    
    
    
    
    
    
    
    (0.9
    )Purchases of residential mortgages
    
    
    (2.0
    )
    
    
    (7.0
    )
    
    
    (11.7
    )Net increase in loans
    
    
    (1,200.8
    )
    
    
    (395.2
    )
    
    
    (704.0
    )Purchases of premises and equipment
    
    
    (24.2
    )
    
    
    (20.8
    )
    
    
    (24.1
    )Dispositions of premises and equipment
    
    
    4.0
    
    
    
    0.2
    
    
    
    1.7Sale of interest rate floors
    
    
    55.1
    
    
    
    
    
    
    
    Increase in interest rate floor contracts
    
    
    
    
    
    
    
    
    
    
    (20.7
    )Swap termination
    
    
    
    
    
    
    
    
    
    
    (12.7
    )Net cash used for investing activities
    
    $
    (968.4
    )
    
    $
    (231.7
    )
    
    $
    (968.6
    )




---



##### 



79
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006FINANCING ACTIVITIESNet increase in demand, savings, and interest-bearing demand deposits
    
    $
    716.1
    
    
    $
    309.8
    
    
    $
    86.9Net (decrease)/increase in certificates of deposit
    
    
    (23.6
    )
    
    
    (781.4
    )
    
    
    953.0Net (decrease)/increase in federal funds purchased and securities sold under agreements to repurchase
    
    
    (184.5
    )
    
    
    644.5
    
    
    
    (224.8
    )Net (decrease)/increase in U.S. Treasury demand deposits
    
    
    (70.9
    )
    
    
    64.3
    
    
    
    (5.1
    )Proceeds from issuance of long-term debt
    
    
    198.7
    
    
    
    
    
    
    
    Proceeds from issuance of preferred stock
    
    
    330.0
    
    
    
    
    
    
    
    Maturity of long-term debt
    
    
    (125.0
    )
    
    
    
    
    
    
    (7.5
    )Net increase in line of credit
    
    
    5.0
    
    
    
    
    
    
    
    15.0Cash dividend
    
    
    (92.5
    )
    
    
    (89.9
    )
    
    
    (85.1
    )Distributions to minority shareholders
    
    
    (0.4
    )
    
    
    (0.8
    )
    
    
    Proceeds
from common stock issued under employment and director benefit
plans3
    
    
    5.7
    
    
    
    16.8
    
    
    
    27.2Proceeds from reissuance of treasury stock
    
    
    43.7
    
    
    
    
    
    
    
    Tax (expense)/benefit realized on employee exercise of stock options
    
    
    (0.1
    )
    
    
    1.3
    
    
    
    4.5Acquisition of treasury stock
    
    
    (0.2
    )
    
    
    (80.2
    )
    
    
    (25.7
    )Net cash provided by financing activities
    
    
    802.0
    
    
    
    84.4
    
    
    
    738.4Effect of foreign currency translation on cash
    
    
    (2.3
    )
    
    
    0.1
    
    
    
    0.4Increase in cash and cash equivalents
    
    
    82.2
    
    
    
    75.9
    
    
    
    40.3Cash and cash equivalents at beginning of year
    
    
    394.5
    
    
    
    318.6
    
    
    
    278.3Cash and cash equivalents at end of year
    
    $
    476.7
    
    
    $
    394.5
    
    
    $
    318.6SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATIONCash paid during the year for:Interest
    
    $
    261.3
    
    
    $
    349.9
    
    
    $
    282.3Taxes
    
    
    72.9
    
    
    
    92.6
    
    
    
    104.3Liabilities
were assumed in connection with our interests in Cramer Rosenthal McGlynn; LLC,
Roxbury Capital Management, LLC; and Camden Partners Holdings, LLC; and with our acquisitions
of AST Capital Trust Company; UBS Fiduciary Trust Company; Grant Tani Barash & Altman, LLC;
Amaco (Luxembourg) S.A.; PwC Corporate Services (Cayman) Limited; and
SPV Management Limited, as follows:Fair value of assets acquired
    
    $
    116.4
    
    
    $
    4.9
    
    
    $
    0.3Goodwill and other intangible assets from acquisitions
    
    
    114.7
    
    
    
    46.2
    
    
    
    19.2Cash paid
    
    
    (126.4
    )
    
    
    (48.6
    )
    
    
    (18.9
    )Liabilities assumed
    
    $
    104.7
    
    
    $
    2.5
    
    
    $
    0.6Non-cash items during the year:Net unrealized (losses)/gains on securities, net of tax of $(54.0), $(2.6), and $2.8, respectively
    
    $
    (95.9
    )
    
    $
    (4.6
    )
    
    $
    4.9Net unrealized gains on equity method investment, net of tax of $0.3, $0.0, and $0.0, respectively
    
    
    0.5
    
    
    
    
    
    
    
    Other-than-temporary impairment losses on securities, net of tax of $47.0, $0.0, and $0.0
    
    
    83.7
    
    
    
    
    
    
    
    Transfer of investment securities from available-for-sale to held-to-maturity
    
    
    189.1
    
    
    
    
    
    
    
    Net unrealized holding gains/(losses) on derivatives used for cash flow hedges,
net of tax of $4.9, $8.3, and $(1.5), respectively
    
    
    8.8
    
    
    
    15.4
    
    
    
    (2.7
    )Reclassification from accumulated other comprehensive income into earnings of
discontinued cash flow hedges, net of tax of $(3.6), $0.0, and $0.0
    
    
    (6.7
    )
    
    
    
    
    
    
    Foreign currency translation adjustment, net of tax of $(1.5), $0.2, and $0.7, respectively
    
    
    (2.6
    )
    
    
    0.3
    
    
    
    1.2Adoption of FASB Interpretation No. 48
    
    
    
    
    
    
    (1.4
    )
    
    
    Reclassification
adjustment of derivative costs, net of tax of $(0.8), $0.7, and $0.1, respectively
    
    
    (1.4)
    
    
    
    1.3
    
    
    
    0.1Pension liability adjustment, net of tax of $(26.1), $6.5, and $(12.9), respectively
    
    
    (48.4
    )
    
    
    12.2
    
    
    
    (23.9
    )Postretirement benefits liability adjustment, net of tax of $5.1, $0.4, and $(3.9), respectively
    
    
    9.6
    
    
    
    0.4
    
    
    
    (7.1
    )SERP1 liability adjustment, net of tax of $(1.9), $(0.4), and $(1.8), respectively
    
    
    (3.6
    )
    
    
    (0.7
    )
    
    
    (3.4
    )
 
 1
    
    Supplemental executive retirement plan2
    
    Includes reclassification of $0.8 for 20063
    
    Includes reclassification of $(0.8) for 2006 See Notes to Consolidated Financial Statements




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##### 



80       Wilmington Trust Corporation

2008 Annual Report
 
 NOTES TO
 CONSOLIDATED FINANCIAL STATEMENTS
 1. NATURE OF BUSINESS
   Regional Banking
    Serves:

Commercial banking clients in the mid-Atlantic region (Delaware and contiguous areas in Pennsylvania, New Jersey, and
Maryland)

Retail banking clients in DelawareTargets:Family-owned or closely held businesses in the mid-Atlantic region with annual sales of up to $250 million with whom we can
develop long-term banking and wealth management relationshipsProvides:

Commercial lending, including lines of credit, term loans, and demand loans for working capital and to finance accounts
receivable, inventory, and equipment purchases

Consumer lending, including installment loans, residential mortgages, home improvement loans, direct and indirect automobile
loans, credit cards, and secured and unsecured lines of credit

Deposit taking, including demand checking, certificate of deposit, negotiable order of withdrawal, money market, and various
savings deposit servicesCorporate Client
    Serves institutional clients who seek:Services (CCS)



The advantageous legal, tax, and creditor protections available in jurisdictions in the United States, the Caribbean, and
Europe

Trustee and administrative services that support capital markets transactions

To establish and maintain legal residency (nexus) for special purpose entities

Independent trustees to hold or manage retirement plan assets

Investment and cash managementTargets:Investment bankers, corporate tax advisors, and financial executives of multinational institutionsProvides:

Indenture, successor, collateral, and liquidating trustee and
administrative services that support corporate debt issuances, reorganizations,
debt restructurings, mergers, and bankruptcies

Owner and indenture trustee and specialized services that support asset-backed securitizations and financing structures for
aircraft, power generating facilities, ships, and other types of capital equipment




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##### 



Notes to Consolidated Financial Statements

81
    Independent directors, corporate governance, and regulatory reporting services for special purpose entities   Trust and custody services for unbundled retirement plans   Fixed income investment and cash management servicesWealth Advisory
    
    Serves:Services (WAS)    High-net-worth individuals and families who want to:   Grow, preserve, and protect their wealth   Minimize taxes   Transfer wealth to future generations   Support charitable endeavors   Manage family and business affairs   Foundations and endowments   Tax-qualified benefit and defined contribution plansTargets:Clients throughout the United States with liquid assets of $10 million or moreProvides:   Investment counseling, asset allocation, and asset management   Proprietary and third-party investment management that encompasses a full spectrum of investment styles
and asset classes, including domestic and international equities, fixed income instruments, mutual funds,
real estate investment trusts, private equity investments, and hedge funds   Strategies for taxable and tax-exempt cash portfolios   Fiduciary and trust services   Financial, estate, succession, and other planning services   Tax preparation, estate settlement, private banking, and insurance services   Broker-dealer services   Corporate governance, business management, bookkeeping, and other administrative services for family offices
      
    
    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.
    
    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.
    
    Wilmington Brokerage Services Company, which is also a licensed broker-dealer.
  
    
    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;




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##### 



82       Wilmington Trust Corporation

2008 Annual Report
 
 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.
    
    Wilmington Trust (UK) Limited, through which we conduct business outside the United States
through Wilmington Trust SP Services (London) Limited and its subsidiaries.
    
    GTBA Holdings, Inc. (GTBAH), through which we conduct the business of GTBA, Grant, Tani, Barash & Altman Management, Inc., and WFO.
    
    WTC Camden, Inc., which holds our interest in Camden Partners Equity Managers I, LLC.
    
    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 BulletinCPP:
    
    U.S. Department of the Treasury Capital Purchase ProgramEITF:
    
    Emerging Issues Task ForceFASB:
    
    The Financial Accounting Standards BoardFHLB:
    
    Federal Home Loan BankFIN:
    
    FASB Interpretation (Number)FRB:
    
    Federal Reserve Bank




---



##### 



Notes to Consolidated Financial Statements

83
 FSP:
    
    FASB Staff PositionGAAP:
    
    U.S. generally accepted accounting principlesIRS:
    
    Internal Revenue ServiceNYSE:
    
    New York Stock ExchangeSAB:
    
    Staff Accounting BulletinSEC:
    
    Securities and Exchange CommissionSFAS:
    
    Statement of Financial Accounting StandardsTARP:
    
    U.S. Department of the Treasury Troubled Asset Relief Program
  Consolidation.
  Cash.
 Investment securities.
   Fair
value.
 Loans.




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##### 



84       Wilmington Trust Corporation

2008 Annual Report
   Reserve for loan losses.
  
    
    Charge loans deemed uncollectible against the reserve.
    
    Credit recoveries, if any, to the reserve.
    
    Reassess the level of the reserve.
    
    Have the reserve evaluated by staff members who do not have lending responsibilities.
 We made several enhancements to our reserve methodology in 2008:
 
    
    We expanded the use of historical losses to determine appropriate reserve levels.
    
    We added qualitative factors, such as general economic conditions, loan concentrations, and other factors, to the criteria we use to assign reserve levels.
    
    We reclassified a portion of the reserve to a separate liability account to create a reserve for unfunded loan commitments, mainly letters of credit.




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##### 



Notes to Consolidated Financial Statements

85
 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 lesser of the assets useful life or an estimated useful life of three, five, or seven years.
  Goodwill and other intangible assets.
   Other real estate owned (OREO).
 Derivative financial instruments.




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##### 



86       Wilmington Trust Corporation

2008 Annual Report
   Revenue recognition.
 Stock-based
compensation plans.
 Pension accounting.
 Income taxes.
   Per share data.
 Comprehensive income.




---



##### 



Notes to Consolidated Financial Statements

87
 3. RECENT ACCOUNTING PRONOUNCEMENTS
  SFAS
No. 160.
 SFAS
No. 141(revised 2007).
 SFAS No. 161.
 SFAS No. 162.
 FSP
EITF 03-6-1.
 FSP FAS No. 133-1 and FIN 45-4.
 FSP FAS No. 157-3.




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##### 



88       Wilmington Trust Corporation

2008 Annual Report
  FSP FAS
No. 132(revised)-1.
 FSP
No. EITF 99-20-1.
 4. AFFILIATES AND ACQUISITIONS
 Cramer Rosenthal McGlynn.
    CRM OWNERSHIP
 At December 31
    
    2008
    
    
    2007
    
    
    2006WTI interest in CRM
    
    
    80.99
    %
    
    
    82.41
    %
    
    
    81.73
    %




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##### 



Notes to Consolidated Financial Statements

89
 Roxbury Capital Management.
     RCM OWNERSHIP
 At December 31
    
    2008
    
    
    2007
    
    
    2006WTI interest in RCM s preferred profts
    
    
    30
    %
    
    
    30
    %
    
    
    30
    %WTI interest in RCM s common interests
    
    
    41.23
    %
    
    
    41.23
    %
    
    
    41.23
    %WTI interest in RCM s Class B interests
    
    
    67
    %
    
    
    25
    %
    
    
    
  RCM CLASS B PUTS
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007RCM Class B interests put to Wilmington Trust
    
    $
    16.8
    
    
    $
    13.0Revenue contribution to Wilmington Trust
    
    $
    2.3
    
    
    $
    1.4
   Underlying equity in affiliate asset manager transactions.
 INVESTMENTS IN AFFILIATES
 At December 31 (in millions)
    
    2008
    
    
    2007Cramer Rosenthal McGlynn
    
    $
    133.3
    
    
    $
    137.2Roxbury Capital Management
    
    $
    22.5
    
    
    $
    76.2




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##### 



90       Wilmington Trust Corporation

2008 Annual Report
 Camden Partners.
 Grant
Tani Barash & Altman.
 Charleston Captive Management Company.
 PwC Corporate Services (Cayman) Limited.
 Wilmington Trust Conduit Services.
  Amaco (Luxembourg) S.A.
 Bingham Legg Advisers, LLC.
 AST Capital Trust Company of Delaware.




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##### 



Notes to Consolidated Financial Statements

91
 UBS Fiduciary Trust Company.
 5. RESTRICTIONS ON CASH AND DUE FROM BANKS
  6. INVESTMENT SECURITIES
   
    
    Securities issued by the U.S. Treasury.
    
    Discount notes and other securities issued by other U.S. government agencies, including the Government National Mortgage
Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Bank System.
    
    Obligations of state and political subdivisions, which primarily are bonds issued by the state of Delaware and its municipalities.
    
    Mortgage-backed securities and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac, and Ginnie Mae in which the underlying collateral consists of adjustable rate and/or fixed
rate residential mortgages. As of December 31, 2008, there were no subprime mortgages in the underlying collateral of these securities.
    
    Corporate debt securities, which are trust-preferred securities (TruPS) issued by financial institutions.
    
    Perpetual preferred stock, which consists of securities issued by Fannie Mae, Freddie Mac, and three other financial institutions.
    
    Small amounts of other types of marketable debt and equity securities.
    1.
    
    Available-for-sale (AFS). This means we have the ability to hold the security, but we may elect
to sell it, depending on our needs.2.
    
    Held-to-maturity (HTM). This means we have not only the ability, but also the intent, to retain
the security on our books until it matures.




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##### 



92       Wilmington Trust Corporation

2008 Annual Report
  
    
    The causes of the decline in fair value, such as credit problems, interest rate fluctuations, or market volatility.
    
    The severity and duration of the decline.
    
    Whether or not the securitys contractual cash flows have been, or are projected to become, impaired.
    
    Our ability and intent to hold these investments until they recover in value, mature, or are called.
  BOOK VALUES (AMORTIZED COST) AND FAIR VALUES
 2008
    
    
    2007At December 31 (in millions)
    
    Amortized 
cost
    
    
    Fair 
value
    
    
    Amortized 
cost
    
    
    Fair 
valueInvestment securities available for sale:U.S. Treasury securities
    
    $
    41.2
    
    
    $
    41.4
    
    
    $
    60.0
    
    
    $
    60.2Government agency securities
    
    
    453.9
    
    
    
    463.0
    
    
    
    639.6
    
    
    
    646.5Obligations of state and political subdivisions
    
    
    6.3
    
    
    
    6.2
    
    
    
    16.7
    
    
    
    16.9Mortgage-backed debt securities
    
    
    649.6
    
    
    
    660.3
    
    
    
    743.1
    
    
    
    730.4Corporate debt securities
    
    
    
    
    
    
    
    
    
    
    336.2
    
    
    
    317.7Foreign securities
    
    
    
    
    
    
    
    
    
    
    0.5
    
    
    
    0.5Preferred stock
    
    
    20.5
    
    
    
    17.1
    
    
    
    54.2
    
    
    
    44.9Other marketable equity securities
    
    
    26.3
    
    
    
    22.7
    
    
    
    27.5
    
    
    
    27.6Total
    
    $
    1,197.8
    
    
    $
    1,210.7
    
    
    $
    1,877.8
    
    
    $
    1,844.7Investment securities held to maturity:Obligations of state and political subdivisions
    
    $
    0.7
    
    
    $
    0.7
    
    
    $
    0.9
    
    
    $
    0.9Mortgage-backed debt securities
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.2Corporate debt securities
    
    
    160.2
    
    
    
    116.8
    
    
    
    
    
    
    
    Foreign securities
    
    
    0.5
    
    
    
    0.5
    
    
    
    
    
    
    
    Other debt securities
    
    
    1.0
    
    
    
    1.0
    
    
    
    1.0
    
    
    
    1.0Total
    
    $
    162.6
    
    
    $
    119.2
    
    
    $
    2.1
    
    
    $
    2.1
 UNREALIZED GAINS/(LOSSES)
 2008
    
    
    2007Unrealized
    
    
    Unrealized
    
    
    Unrealized
    
    
    UnrealizedAt December 31 (in millions)
    
    gains
    
    
    losses
    
    
    gains
    
    
    lossesInvestment securities available for sale:U.S. Treasury securities
    
    $
    0.2
    
    
    $
    
    
    
    $
    0.2
    
    
    $
    Government agency securities
    
    
    9.1
    
    
    
    
    
    
    
    7.0
    
    
    
    (0.1
    )Obligations of state and political subdivisions
    
    
    
    
    
    
    (0.1
    )
    
    
    0.2
    
    
    
    Mortgage-backed debt securities
    
    
    11.5
    
    
    
    (0.8
    )
    
    
    0.6
    
    
    
    (13.3
    )Corporate debt securities
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    (18.8
    )Preferred stock
    
    
    0.4
    
    
    
    (3.8
    )
    
    
    
    
    
    
    (9.3
    )Other marketable equity securities
    
    
    
    
    
    
    (3.6
    )
    
    
    
    
    
    
    Total
    
    $
    21.2
    
    
    $
    (8.3
    )
    
    $
    8.4
    
    
    $
    (41.5
    )Investment securities held to maturity:Corporate debt securities
    
    $
    
    
    
    $
    (43.4
    )
    
    $
    
    
    
    $
    Total
    
    $
    
    
    
    $
    (43.4
    )
    
    $
    
    
    
    $
    




---



##### 



Notes to Consolidated Financial Statements

93
 CONTRACTUAL MATURITY OF SECURITIES
 After
    
    
    After1 year
    
    
    5 years1 year
    
    
    through
    
    
    through
    
    
    AfterAt December 31, 2008 (in millions)
    
    or less
    
    
    5 years
    
    
    10 years
    
    
    10 years
    
    
    TotalBook value (amortized cost) of debt securities available for sale:U.S. Treasury securities
    
    $
    37.7
    
    
    $
    3.5
    
    
    $
    
    
    
    $
    
    
    
    $
    41.2Government agency securities
    
    
    242.9
    
    
    
    128.0
    
    
    
    83.0
    
    
    
    
    
    
    
    453.9Obligations of state and political subdivisions
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    6.1
    
    
    
    6.3Mortgage-backed securities
    
    
    
    
    
    
    20.4
    
    
    
    270.5
    
    
    
    358.7
    
    
    
    649.6Total book value of debt securities available for sale
    
    $
    280.6
    
    
    $
    152.1
    
    
    $
    353.5
    
    
    $
    364.8
    
    
    $
    1,151.0Fair value of debt securities available for sale
    
    $
    282.0
    
    
    $
    156.7
    
    
    $
    361.7
    
    
    $
    370.5
    
    
    $
    1,170.9Weighted
average yield of securities available for
sale1
    
    
    2.79
    %
    
    
    4.81
    %
    
    
    4.59
    %
    
    
    4.75
    %
    
    
    4.23
    %Book value of debt securities held to maturity:Obligations of state and political subdivisions
    
    $
    
    
    
    $
    0.7
    
    
    $
    
    
    
    $
    
    
    
    $
    0.7Mortgage-backed securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    0.2Corporate debt securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    160.2
    
    
    
    160.2Foreign securities
    
    
    
    
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    0.5Other debt securities
    
    
    0.2
    
    
    
    0.7
    
    
    
    0.1
    
    
    
    
    
    
    
    1.0Total book value of debt securities held to maturity
    
    $
    0.2
    
    
    $
    1.9
    
    
    $
    0.1
    
    
    $
    160.4
    
    
    $
    162.6Fair value of debt securities held to maturity
    
    $
    0.2
    
    
    $
    1.9
    
    
    $
    0.1
    
    
    $
    117.0
    
    
    $
    119.2Weighted
average yield of securities held to
maturity1
    
    
    
    %
    
    
    4.73
    %
    
    
    
    %
    
    
    11.73
    %
    
    
    11.71
    %
 1
    
    Weighted average yields are not on a tax-equivalent basis  Temporarily impaired securities.
  
    
    Report the amount of the impairment as an unrealized loss.
    
    Record the unrealized loss as a change in stockholders equity through accumulated other comprehensive income. This reduces stockholders equity. It does not affect earnings.
  
    
    Disclose the amount of the decline in fair value.
    
    Make that disclosure in a footnote, not as a change in stockholders equity. There is no effect to our financial statements or earnings.




---



##### 



94       Wilmington Trust Corporation

2008 Annual Report
 
   TEMPORARILY IMPAIRED SECURITIES
 Fewer than 12 months
    
    
    12 months or more
    
    
    TotalEstimated
    
    
    
    
    
    
    Estimated
    
    
    
    
    
    
    EstimatedFair
    
    
    unrealized
    
    
    Fair
    
    
    unrealized
    
    
    Fair
    
    
    unrealized(in millions)
    
    value
    
    
    losses
    
    
    value
    
    
    losses
    
    
    value
    
    
    lossesAs of December 31, 2008:Obligations of state and political subdivisions
    
    $
    5.5
    
    
    $
    (0.1
    )
    
    $
    
    
    
    $
    
    
    
    $
    5.5
    
    
    $
    (0.1
    )Mortgage-backed securities
    
    
    20.8
    
    
    
    
    
    
    
    39.5
    
    
    
    (0.8
    )
    
    
    60.3
    
    
    
    (0.8
    )Corporate debt securities
    
    
    
    
    
    
    
    
    
    
    84.1
    
    
    
    (43.4
    )
    
    
    84.1
    
    
    
    (43.4
    )Preferred stock
    
    
    
    
    
    
    
    
    
    
    10.8
    
    
    
    (3.8
    )
    
    
    10.8
    
    
    
    (3.8
    )Other marketable equity securities
    
    
    13.6
    
    
    
    (3.6
    )
    
    
    
    
    
    
    
    
    
    
    13.6
    
    
    
    (3.6
    )Total temporarily impaired securities
    
    $
    39.9
    
    
    $
    (3.7
    )
    
    $
    134.4
    
    
    $
    (48.0
    )
    
    $
    174.3
    
    
    $
    (51.7
    )As of December 31, 2007:U.S. Treasury securities
    
    $
    20.0
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    20.0
    
    
    $
    Government agency securities
    
    
    116.1
    
    
    
    
    
    
    
    82.9
    
    
    
    (0.1
    )
    
    
    199.0
    
    
    
    (0.1
    )Mortgage-backed securities
    
    
    68.3
    
    
    
    (0.5
    )
    
    
    500.2
    
    
    
    (12.8
    )
    
    
    568.5
    
    
    
    (13.3
    )Corporate debt securities
    
    
    189.3
    
    
    
    (14.4
    )
    
    
    67.3
    
    
    
    (4.4
    )
    
    
    256.6
    
    
    
    (18.8
    )Preferred stock
    
    
    29.6
    
    
    
    (6.6
    )
    
    
    12.3
    
    
    
    (2.7
    )
    
    
    41.9
    
    
    
    (9.3
    )Total temporarily impaired securities
    
    $
    423.3
    
    
    $
    (21.5
    )
    
    $
    662.7
    
    
    $
    (20.0
    )
    
    $
    1,086.0
    
    
    $
    (41.5
    )
 TEMPORARILY IMPAIRED SECURITIES
 At December 31
    2008
    

    2007Number of positions
    65
   
    168Number of positions with unrealized losses continuously for 12 months or more
    44
    
    99
  Trust-preferred securities (TruPS).
 
    
    The amortized cost of the total TruPS portfolio was $160.2 million.
    
    Its estimated fair value was $116.8 million.
    
    The TruPS portfolio consisted of 38 pooled issues and 9 single-issue securities. The single-issue TruPS are from money center and large regional banks. The pooled instruments include securities issued by banks, insurance
companies, and other financial institutions. Our positions in pooled TruPS are generally secured by over-collateralization or default protections provided by subordinated tranches.




---



##### 



Notes to Consolidated Financial Statements

95
     
    
    We have the ability and intent to hold these securities until they mature.
    
    These securities have attractive cash flows, and all were meeting their contractual cash flow obligations as of the reclassification date.
    
    Reclassifying the TruPS to HTM reduces the volatility and future negative effect on our capital
ratios, because HTM securities are not marked-to-market through accumulated other comprehensive
income, but carried at their amortized cost basis.
    
    
    The use of all applicable guidance issued by the SEC and FASB, particularly the guidance issued in the 2008 third and fourth quarters.
    
    The cash flow methodology described in this report in Note 14, Fair value measurement of assets and liabilities.
    
    Our belief that the decline in the fair value of these TruPS was due primarily to the absence of demand for them and the ensuing market illiquidity.
    
    An assessment of cash flow projections for individual securities within the pooled TruPS. As of
December 31, 2008, we concluded it was probable that we will collect all of the estimated cash
flows.




---



##### 



96
      Wilmington Trust Corporation

2008 Annual Report
  TRUPS
IN WILMINGTON TRUSTS PORTFOLIO AS RATED BY FITCH RATINGS 1
 Fairvalue plusNumber of
    
    
    
    
    
    
    Amortized
    
    
    unrealizedAt December 31, 2008 (dollars in millions)
    
    holdings
    
    
    Fair value
    
    
    cost
    
    
    lossesPooled TruPS:AAA
    
    
    5
    
    
    $
    13.4
    
    
    $
    15.4
    
    
    $
    25.2AA
    
    
    2
    
    
    
    2.2
    
    
    
    2.6
    
    
    
    4.7A
    
    
    30
    
    
    
    58.1
    
    
    
    81.8
    
    
    
    124.2BBB
    
    
    1
    
    
    
    3.3
    
    
    
    3.4
    
    
    
    3.3Below investment grade
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Not rated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total pooled TruPS
    
    
    38
    
    
    $
    77.0
    
    
    $
    103.2
    
    
    $
    157.4Single-issue TruPS:AAA
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    $
    AA
    
    
    1
    
    
    
    5.4
    
    
    
    8.7
    
    
    
    11.4A
    
    
    6
    
    
    
    29.1
    
    
    
    39.8
    
    
    
    46.0BBB
    
    
    2
    
    
    
    5.3
    
    
    
    8.5
    
    
    
    10.7Below investment grade
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Not rated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total single-issue TruPS
    
    
    9
    
    
    $
    39.8
    
    
    $
    57.0
    
    
    $
    68.1Total TruPS
    
    
    47
    
    
    $
    116.8
    
    
    $
    160.2
    
    
    $
    225.5Total investment securities portfolio
    
    
    
    
    
    $
    1,329.9
    
    
    $
    1,360.4
    

    
    $
    1,446.9
 
 1
    
    As of January 27, 2009 TRUPS
IN WILMINGTON TRUSTS PORTFOLIO AS RATED BY MOODYS
INVESTORS
SERVICE1
 Fair
value plusNumber of
    
    
    
    
    
    
    Amortized
    
    
    unrealizedAt December 31, 2008 (dollars in millions)
    
    holdings
    
    
    Fair value
    
    
    cost
    
    
    lossesPooled TruPS:Aaa
    
    
    1
    
    
    $
    2.0
    
    
    $
    2.5
    
    
    $
    2.9Aa
    
    
    5
    
    
    
    12.8
    
    
    
    14.8
    
    
    
    26.2A
    
    
    5
    
    
    
    14.9
    
    
    
    22.4
    
    
    
    42.8Baa
    
    
    7
    
    
    
    14.2
    
    
    
    14.7
    
    
    
    14.2Below investment grade
    
    
    20
    
    
    
    33.1
    
    
    
    48.8
    
    
    
    71.3Not rated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total pooled TruPS
    
    
    38
    
    
    $
    77.0
    
    
    $
    103.2
    
    
    $
    157.4Single-issue TruPS:Aaa
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    $
       Aa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    A
    
    
    8
    
    
    
    37.2
    
    
    
    53.1
    
    
    
    63.3Baa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Below investment grade
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Not rated
    
    
    1
    
    
    
    2.6
    
    
    
    3.9
    
    
    
    4.8Total single-issue TruPS
    
    
    9
    
    
    $
    39.8
    
    
    $
    57.0
    
    
    $
    68.1Total TruPS
    
    
    47
    
    
    $
    116.8
    
    
    $
    160.2
    
    
    $
    225.5Total investment securities portfolio
    
    
    
    
    
    $
    1,329.9
    
    
    $
    1,360.4
    
    
    $
    1,446.9
 
 1
    
    As of January 27, 2009




---



##### 



Notes to Consolidated Financial Statements

97
  Other-than-temporarily impaired (OTTI) securities.
     Other matters.
  SALE
AND WRITE-DOWN OF INVESTMENT SECURITIES AVAILABLE FOR SALE
 For the year ended December 31
 (in millions)
    
    2008
    
    
    2007
    
    
    2006Proceeds
    
    $
    11.9
    
    
    $
    44.2
    
    
    $
    23.0Gross gains realized
    
    $
    0.1
    
    
    $
    0.1
    
    
    $
    0.4Gross losses
realized
    
    $
    
    
    
    $
    (0.2
    )
    
    $
    (0.2
    )OTTI charges
    
    $
    (33.7
    )
    
    $
    
    
    
    $
    
 CALLED
SECURITIES
 For the year ended December 31 
(in millions)
    
    2008
    
    
    2007
    
    
    2006Gross gains
    
    $
    
    
    
    $
    0.2
    
    
    $
    Offsetting losses
    
    $
    
    
    
    $
    
    
    
    $
    




---



##### 



98       Wilmington Trust Corporation

2008 Annual Report
 7. LOAN CONCENTRATIONS
 LOAN
CONCENTRATIONS AS A PERCENTAGE OF TOTAL LOANS OUTSTANDING
 At December 31
    
    2008
    
    
    2007Commercial, financial, and agricultural
    
    
    31
    %
    
    
    31
    %Commercial real estate  construction
    
    
    20
    
    
    
    21Commercial mortgage
    
    
    19
    
    
    
    17Residential mortgage
    
    
    6
    
    
    
    6Consumer
    
    
    18
    
    
    
    19Secured with investments
    
    
    6
    
    
    
    6
      8. RESERVE FOR LOAN LOSSES
 CHANGES
IN THE RESERVE FOR LOAN LOSSES
 (in millions)
    
    2008
    
    
    2007
    
    
    2006Reserve for loan losses at January 1
    
    $
    101.1
    
    
    $
    94.2
    
    
    $
    91.4Loans charged off:Commercial, financial, and agricultural
    
    
    (12.6
    )
    
    
    (4.3
    )
    
    
    (10.8
    )Commercial real estate  construction
    
    
    (13.5
    )
    
    
    (2.9
    )
    
    
    Commercial mortgage
    
    
    (2.0
    )
    
    
    (1.3
    )
    
    
    (0.3
    )Residential mortgage
    
    
    (0.4
    )
    
    
    (0.1
    )
    
    
    Consumer and other retail
    
    
    (30.5
    )
    
    
    (20.8
    )
    
    
    (13.5
    )Total loans charged off
    
    $
    (59.0
    )
    
    $
    (29.4
    )
    
    $
    (24.6
    )Recoveries on loans previously charged off:Commercial, financial, and agricultural
    
    
    0.7
    
    
    
    1.0
    
    
    
    0.6Commercial real estate  construction
    
    
    
    
    
    
    
    
    
    
    Commercial mortgage
    
    
    0.8
    
    
    
    0.2
    
    
    
    Residential mortgage
    
    
    0.1
    
    
    
    
    
    
    
    0.1Consumer and other retail
    
    
    5.0
    
    
    
    6.9
    
    
    
    5.4Total recoveries
    
    $
    6.6
    
    
    $
    8.1
    
    
    $
    6.1Net loans charged off
    
    $
    (52.4
    )
    
    $
    (21.3
    )
    
    $
    (18.5
    )Transfers from/(to) reserve for lending commitments
    
    
    (7.1
    )
    
    
    
    
    
    
    Provision charged to operations
    
    
    115.5
    
    
    
    28.2
    
    
    
    21.3Reserve for loan losses at December 31
    
    $
    157.1
    
    
    $
    101.1
    
    
    $
    94.2Reserve for unfunded commitments in other liabilities1
    
    $
    7.1
    
    
    $
    
    
    
    $
    
 1
    
    The reserve for unfunded commitments was transferred to other liabilities as of
December 31, 2008. Prior periods were not reclassified.




---



##### 



Notes to Consolidated Financial Statements

99
   IMPAIRED LOANS
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Average investment recorded in impaired loans
    
    $
    78.4
    
    
    $
    37.8
    
    
    $
    32.8Year-end investment recorded in impaired loans subject to a reserve for loan losses:2008 reserve: $31.0
    
    $
    207.52007 reserve: $5.5
    
    
    
    
    
    $
    40.32006 reserve: $4.2
    
    
    
    
    
    
    
    
    
    $
    21.9Year-end investment in impaired loans requiring no reserve for loan losses
    
    $
    2.3
    
    
    $
    27.2
    
    
    $
    5.0Year-end investment recorded in impaired loans
    
    $
    209.8
    
    
    $
    67.5
    
    
    $
    26.9Year-end investment recorded in impaired loans classified as nonaccruing
    
    $
    196.3
    
    
    $
    43.8
    
    
    $
    26.9Year-end investment recorded in impaired loans classified as troubled restructured debt
    
    $
    0.1
    
    
    $
    23.7
    
    
    $
    Interest income recognized
    
    $
    4.4
    
    
    $
    1.9
    
    
    $
    1.2Interest income recognized using the cash basis method of income recognition
    
    $
    4.4
    
    
    $
    1.9
    
    
    $
    1.2
 EFFECT OF NONACCRUING LOANS ON INTEREST INCOME
 (in millions)
    
    2008
    
    
    2007
    
    
    2006Nonaccruing loans at December 31
    
    $
    196.3
    
    
    $
    47.8
    
    
    $
    31.0Interest income that would have been recognized under original terms
    
    $
    5.0
    
    
    $
    3.4
    
    
    $
    2.5Interest actually received
    
    $
    4.3
    
    
    $
    2.1
    
    
    $
    1.3
 9. PREMISES AND EQUIPMENT
 VALUE OF PREMISES AND EQUIPMENT
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007Land
    
    $
    9.5
    
    
    $
    10.5Buildings and improvements
    
    
    171.4
    
    
    
    165.0Furniture and equipment
    
    
    209.9
    
    
    
    198.4Total
    
    $
    390.8
    
    
    $
    373.9Accumulated depreciation
    
    
    (238.8
    )
    
    
    (221.8
    )Premises and equipment, net
    
    $
    152.0
    
    
    $
    152.1




---



##### 



100       Wilmington Trust Corporation

2008 Annual Report
 10. GOODWILL AND OTHER INTANGIBLE ASSETS
 GOODWILL AND OTHER INTANGIBLE ASSETS
 2008
    
    
    2007Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    Netcarrying
    
    
    Accumulated
    
    
    carrying
    
    
    carrying
    
    
    Accumulated
    
    
    carryingFor the year ended December 31 (in millions)
    
    amount
    
    
    amortization
    
    
    amount
    
    
    amount
    
    
    amortization
    
    
    amountGoodwill (nonamortizing)
    
    $
    385.4
    
    
    $
    29.8
    
    
    $
    355.6
    
    
    $
    359.8
    
    
    $
    29.8
    
    
    $
    330.0Other intangibles (amortizing):Mortgage servicing rights
    
    $
    9.7
    
    
    $
    8.0
    
    
    $
    1.7
    
    
    $
    9.1
    
    
    $
    7.3
    
    
    $
    1.8Client lists
    
    
    73.2
    
    
    
    28.4
    
    
    
    44.8
    
    
    
    57.2
    
    
    
    21.3
    
    
    
    35.9Acquisition costs
    
    
    1.7
    
    
    
    1.7
    
    
    
    
    
    
    
    1.7
    
    
    
    1.7
    
    
    
    Other intangibles
    
    
    2.0
    
    
    
    1.5
    
    
    
    0.5
    
    
    
    1.9
    
    
    
    1.3
    
    
    
    0.6Total other intangibles
    
    $
    86.6
    
    
    $
    39.6
    1
    
    $
    47.0
    
    
    $
    69.9
    
    
    $
    31.6
    
    
    $
    38.3
 1
    
    The change in accumulated amortization at December 31, 2008, included a decrease of
$0.9 million due to foreign currency translation adjustments.
      AMORTIZATION EXPENSE OF OTHER INTANGIBLE ASSETS
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Amortization expense of other intangible assets
    
    $
    8.9
    
    
    $
    5.9
    
    
    $
    5.4
 FUTURE AMORTIZATION EXPENSE OF OTHER INTANGIBLE ASSETS
 For the year ended December 31 (in millions)
    
    2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013Estimated annual amortization expense of other intangibles
    
    $
    9.4
    
    
    $
    8.0
    
    
    $
    6.7
    
    
    $
    5.5
    
    
    $
    4.3




---



##### 



Notes to Consolidated Financial Statements

101
 CARRYING AMOUNT OF GOODWILL BY BUSINESS SEGMENT
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    Money(in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalBalance as of January 1, 2008
    
    $
    3.8
    
    
    $
    107.7
    
    
    $
    25.2
    
    
    $
    193.3
    
    
    $
    330.0Goodwill acquired
    
    
    
    
    
    
    18.0
    
    
    
    63.0
    
    
    
    16.8
    
    
    
    97.8Impairment write-down
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (66.9
    )
    
    
    (66.9
    )Sale of affiliate interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3
    )
    
    
    (0.3
    )Decrease in carrying value due to foreign currency
translation adjustments
    
    
    
    
    
    
    
    
    
    
    (5.0
    )
    
    
    
    
    
    
    (5.0
    )Balance as of December 31, 2008
    
    $
    3.8
    
    
    $
    125.7
    
    
    $
    83.2
    
    
    $
    142.9
    
    
    $
    355.6Balance as of January 1, 2007
    
    $
    3.8
    
    
    $
    88.9
    
    
    $
    22.7
    
    
    $
    176.0
    
    
    $
    291.4Goodwill acquired
    
    
    
    
    
    
    18.8
    
    
    
    2.1
    
    
    
    17.3
    
    
    
    38.2Increase in carrying value due to foreign currency
translation adjustments
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    
    
    
    
    0.4Balance as of December 31, 2007
    
    $
    3.8
    
    
    $
    107.7
    
    
    $
    25.2
    
    
    $
    193.3
    
    
    $
    330.0
  
    
    The following amounts recorded under Wealth Advisory Services:
 
    
    $13.3 million in connection with the 2008 acquisition of AST Capital Trust Company.
    
    A $3.6 million contingent payment in connection with the 2004 acquisition of Grant Tani Barash
& Altman, LLC.
    
    A $2.5 million contingent payment in connection with the 2007 acquisition of Bingham Legg
Advisers, LLC (BLA).
    
    $(1.4) million recorded for subsequent adjustments in connection with the 2007 acquisition of
BLA.
 
    
    The following amounts recorded under Corporate Client Services:
 
    
    $50.2 million recorded in connection with the 2008 acquisition of AST Capital Trust Company.
    
    $12.8 million recorded in connection with the 2008 acquisition of UBS Fiduciary Trust Company.
 
    
    $16.8 million recorded under Affiliate Money Managers in connection with the purchase of a
portion of the Class B interests
from principals of RCMs office in Portland, Oregon.
   
    
    The following amounts recorded under Wealth Advisory Services:
 
    
    $16.0 million in connection with the 2007 acquisition of Bingham Legg Advisers, LLC.
    
    A $2.8 million contingent payment in connection with the 2004 acquisition of Grant Tani Barash
& Altman, LLC.
 
    
    $2.1 million recorded under Corporate Client Services in connection with the 2007 acquisition of
Amaco (Luxembourg) S.A.
    
    The following amounts recorded under Affiliate Money Managers:
 
    
    $13.0 million in connection with the purchase of a portion of the Class B interests of
principals of RCMs office in Portland, Oregon.
    
    $4.3 million in connection with an increase in WTIs equity interest in CRM.
 CHANGES IN OTHER INTANGIBLE ASSETS
 2008
    
    
    2007Weighted average amortization
    
    
    Weighted average amortizationAmount
    
    
    Residual
    
    
    Period
    
    
    Amount
    
    
    Residual
    
    
    PeriodFor the year ended December 31 (in millions)
    
    assigned
    
    
    value
    
    
    in years
    
    
    assigned
    
    
    value
    
    
    in yearsMortgage servicing rights
    
    $
    0.6
    
    
    $
    
    
    
    
    8
    
    
    $
    0.8
    
    
    $
    
    
    
    
    8Client lists
    
    
    17.3
    
    
    
    
    
    
    
    7
    
    
    
    7.9
    
    
    
    
    
    
    
    16Decrease in carrying value of client lists due to
foreign currency translation adjustments
    
    
    (1.3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other intangibles
    
    
    0.1
    
    
    
    
    
    
    
    9
    
    
    
    0.1
    
    
    
    
    
    
    
    9Changes in other intangible assets
    
    $
    16.7
    
    
    $
    
    
    
    
    
    
    
    $
    8.8
    
    
    $
    




---



##### 



102       Wilmington Trust Corporation

2008 Annual Report
  
    
    The following amounts recorded under Corporate Client Services:
 
    
    $10.6 million recorded in connection with the 2008 acquisition of AST Capital Trust Company.
    
    $2.5 million recorded in connection with the 2008 acquisition of UBS Fiduciary Trust Company.
 
    
    The following amounts recorded under Wealth Advisory Services:
 
    
    $2.8 million recorded in connection with the 2008 acquisition of AST Capital Trust Company.
    
    $1.4 million recorded for subsequent adjustments in connection with the 2007 acquisition of
Bingham Legg Advisers, LLC.
  
    
    $7.3 million recorded under Wealth Advisory Services in connection with the 2007 acquisition of
Bingham Legg Advisers, LLC.
    
    $0.6 million recorded under Affiliate Money Managers in connection with an increase in WTIs
equity interest in CRM.
 11. DEPOSITS
 CONTRACTUAL MATURITIES OF CDS
 (in millions)2009
    
    $
    3,413.42010
    
    $
    148.42011
    
    $
    32.42012
    
    $
    124.52013
    
    $
    12.92014 and thereafter
    
    $
    4.5
  MATURITIES OF TIME DEPOSITS ≥ $100,000
 All otherinterest-Certificates
    
    
    bearingAs of December 31, 2008 (in millions)
    
    of deposit
    
    
    depositsThree months or less
    
    $
    1,866.4
    
    
    $
    More than three through six months
    
    
    504.1
    
    
    
    More than six through 12 months
    
    
    262.8
    
    
    
    More than 12 months
    
    
    30.3
    
    
    
    Total
    
    $
    2,663.6
    
    
    $
    




---



##### 



Notes to Consolidated Financial Statements

103
 12. BORROWINGS
  Federal funds purchased and securities sold under agreements to repurchase.
 FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Average amount outstanding during the year
    
    $
    1,810.5
    
    
    $
    1,465.0
    
    
    $
    1,116.2Weighted average interest rate during the year
    
    
    2.1
    %
    
    
    4.7
    %
    
    
    4.8
    %Weighted average interest rate at December 31
    
    
    0.4
    %
    
    
    3.9
    %
    
    
    4.9
    %Maximum amount outstanding at any month end
    
    $
    2,381.7
    
    
    $
    1,999.3
    
    
    $
    1,254.6Amount outstanding at December 31
    
    $
    1,590.8
    
    
    $
    1,775.3
    
    
    $
    1,130.9
 Lines of credit.
   FHLB advance.
 FEDERAL HOME LOAN BANK ADVANCE
 Fixed(dollars in millions)
    
    2008
    
    
    2007
    
    
    Term
    
    
    interest rate
    
    
    Maturity datePrincipal amounts
    
    $
    28.0
    
    
    $
    28.0
    
    
    15 years
    
    
    
    6.55
    %
    
    October 4, 2010
  Subordinated long-term debt.




---



##### 



104       Wilmington Trust Corporation

2008 Annual Report
 SUBORDINATED LONG-TERM DEBT
 (dollars in millions)
    
    Amount issued
    
    
    
    
    
    
    
    
    
    
    FixedIssue date
    
    and outstanding
    
    
    Term
    
    
    Semiannual payment dates
    
    
    payment rates
    
    
    MaturityApril 4, 2003
    
    $
    250.0
    
    
    10 years
    
    
    April 15 and October 15
    
    
    
    4.875
    %
    
    April 15, 2013April 1, 2008
    
    $
    200.0
    
    
    10 years
    
    
    April 1 and October 1
    
    
    
    8.50
    %
    
    April 2, 2018
   13. COMMITMENTS AND CONTINGENCIES
 Lease commitments.
 MIMIMUM NONCANCELABLE LEASE PAYMENTS ON REAL PROPERTY
 Gross
    
    
    Sublease
    
    
    Net(in millions)
    
    amount
    
    
    amount
    
    
    amount2009
    
    $
    13.5
    
    
    $
    0.2
    
    
    $
    13.32010
    
    $
    12.2
    
    
    $
    0.1
    
    
    $
    12.12011
    
    $
    9.4
    
    
    $
    0.1
    
    
    $
    9.32012
    
    $
    8.2
    
    
    $
    0.1
    
    
    $
    8.12013
    
    $
    7.3
    
    
    $
    0.1
    
    
    $
    7.22014 and thereafter
    
    $
    23.1
    
    
    $
    0.5
    
    
    $
    22.6
 Off-balance-sheet commitments.
 Commitments to extend credit and letters of credit.
  Loan guaranties.




---



##### 



Notes to Consolidated Financial Statements

105
 OFF-BALANCE-SHEET COMMITMENTS
 2008
    
    
    2007Contractual
    
    
    Fair
    
    
    Contractual
    
    
    FairAt December 31 (in millions)
    
    amount
    
    
    value
    
    
    amount
    
    
    valueUnfunded commitments to extend credit
    
    $
    3,261.3
    
    
    $
    12.5
    
    
    $
    3,485.8
    
    
    $
    13.4Standby and commercial letters of credit
    
    
    406.0
    
    
    
    2.8
    
    
    
    510.4
    
    
    
    3.1CRM loan guaranty
    
    
    
    
    
    
    
    
    
    
    2.5
    
    
    
    
 Visa Inc. litigation.
    Legal proceedings.
 14. FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES




---



##### 



106       Wilmington Trust Corporation

2008 Annual Report
     
    
    Level 1.Level 1 inputs are unadjusted quoted prices, such as a New York Stock Exchange
closing price, in active markets for identical assets. Level 1 is the highest priority in the
hierarchy.
    
    Level 2.Level 2 inputs may include quoted prices for similar assets and liabilities in
active markets, as well as other significant inputs that are observable at commonly quoted
intervals, such as interest rates, foreign exchange rates, and yield curves.
    
    Level 3.Level 3 inputs are unobservable inputs. Typically, our own assumptions determine
these inputs, since there is little, if any, related market activity. Level 3 is the lowest
priority in the hierarchy.
    Cash and due from banks, short-term investments, accrued interest receivable, short-term
borrowings, and accrued interest payable.
 Investment securities.




---



##### 



Notes to Consolidated Financial Statements

107
   FHLB and FRB stock.
 Derivative financial instruments.
    Loans.
  Deposits.
 Long-term debt.
 Commitments to extend credit and letters of credit.




---



##### 



108       Wilmington Trust Corporation

2008 Annual Report
 CARRYING VALUES AND ESTIMATED FAIR VALUES
 2008
    
    
    2007For the year ended December 31 (in millions)
    
    Carrying 
value
    
    
    Fair 
value
    
    
    Carrying 
value
    
    
    Fair 
valueFinancial assets:Cash and due from banks
    
    $
    290.4
    
    
    $
    290.4
    
    
    $
    260.5
    
    
    $
    260.5Short-term investments
    
    
    186.3
    
    
    
    186.3
    
    
    
    134.0
    
    
    
    134.0Investment securities
    
    
    1,373.3
    
    
    
    1,329.9
    
    
    
    1,846.8
    
    
    
    1,846.8Federal Home Loan Bank and Federal Reserve Bank stock
    
    
    20.0
    
    
    
    20.0
    
    
    
    22.4
    
    
    
    22.4Loans, net of reserves
    
    
    9,462.0
    
    
    
    9,384.0
    
    
    
    8,374.7
    
    
    
    8,313.2Interest rate swap contracts
    
    
    73.7
    
    
    
    73.7
    
    
    
    9.9
    
    
    
    9.9Interest rate floor contracts
    
    
    
    
    
    
    
    
    
    
    40.4
    
    
    
    40.4Accrued interest receivable
    
    
    82.0
    
    
    
    82.0
    
    
    
    80.0
    
    
    
    80.0Financial liabilities:Deposits
    
    $
    8,550.0
    
    
    $
    8,601.6
    
    
    $
    7,857.5
    
    
    $
    7,924.4Short-term borrowings
    
    
    1,617.2
    
    
    
    1,617.2
    
    
    
    1,992.1
    
    
    
    1,992.9Interest rate swap contracts
    
    
    74.5
    
    
    
    74.5
    
    
    
    10.4
    
    
    
    10.4Accrued interest payable
    
    
    71.2
    
    
    
    71.2
    
    
    
    78.5
    
    
    
    78.5Long-term debt
    
    
    468.8
    
    
    
    442.7
    
    
    
    267.8
    
    
    
    257.7
   FAIR VALUE OF ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS
 Quoted prices
    
    
    Significantin active
    
    
    other
    
    
    Significantmarkets for
    
    
    observable
    
    
    unobservableidentical assets
    
    
    inputs
    
    
    inputsAs of December 31, 2008 (in millions)
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    TotalAssetsInvestment securities available for sale
    
    $
    13.7
    
    
    $
    1,197.0
    
    
    $
    
    
    
    $
    1,210.7Interest rate swap contracts
    
    
    
    
    
    
    73.7
    
    
    
    
    
    
    
    73.7Total assets
    
    $
    13.7
    
    
    $
    1,270.7
    
    
    $
    
    
    
    $
    1,284.4LiabilitiesInterest rate swap contracts
    
    $
    
    
    
    $
    74.5
    
    
    $
    
    
    
    $
    74.5Total liabilities
    
    $
    
    
    
    $
    74.5
    
    
    $
    
    
    
    $
    74.5




---



##### 



Notes to Consolidated Financial Statements

109
 FAIR VALUE OF ASSETS AND LIABILITIES MEASURED ON A NONRECURRING BASIS
 Quoted prices
    
    
    Significantin active
    
    
    other
    
    
    Significantmarkets for
    
    
    observable
    
    
    unobservableAs of December 31, 2008
    
    identical assets
    
    
    inputs
    
    
    inputs(in millions)
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    TotalLoans
    
    $
    
    
    
    $
    28.4
    
    
    $
    
    
    
    $
    28.4Other real estate owned
    
    
    
    
    
    
    14.5
    
    
    
    
    
    
    
    14.5Investment securities held to maturity
    
    
    
    
    
    
    39.8
    
    
    
    77.0
    
    
    
    116.8
  15. DERIVATIVE AND HEDGING ACTIVITIES
  Interest rate swaps.




---



##### 



110       Wilmington Trust Corporation

2008 Annual Report
 Interest rate floors.
    Interest rate floor expense.
 INTEREST RATE FLOOR EXPENSE
 For the year ended December 31
(in millions)
    
    2008
    
    
    2007
    
    
    2006Interest rate floor contract expense
    
    $
    0.2
    
    
    $
    2.0
    
    
    $
    0.2
 Fair value hedging strategies.
 Cash flow hedging strategies.




---



##### 



Notes to Consolidated Financial Statements

111
 16. CAPITAL
 Federal capital adequacy requirements.
  U.S. REGULATORY CAPITAL RATIOS
 Actual
    
    
    Adequately capitalized minimum
    
    
    Well-capitalized minimum(dollars in millions)
    
    Amount
    
    
    Ratio
    
    
    Amount ≥
    
    
    Ratio ≥
    
    
    Amount ≥
    
    
    Ratio ≥As of December 31, 2008Total capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    1,600.3
    
    
    
    13.97
    %
    
    $
    916.4
    
    
    
    8.00
    %
    
    $
    1,145.5
    
    
    
    10.00
    %Wilmington Trust Company
    
    $
    1,080.0
    
    
    
    10.45
    %
    
    $
    826.8
    
    
    
    8.00
    %
    
    $
    1,033.5
    
    
    
    10.00
    %Wilmington Trust FSB1
    
    $
    166.0
    
    
    
    11.09
    %
    
    $
    119.7
    
    
    
    8.00
    %
    
    $
    149.7
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    1,058.3
    
    
    
    9.24
    %
    
    $
    458.2
    
    
    
    4.00
    %
    
    $
    687.3
    
    
    
    6.00
    %Wilmington Trust Company
    
    $
    950.6
    
    
    
    9.20
    %
    
    $
    413.4
    
    
    
    4.00
    %
    
    $
    620.1
    
    
    
    6.00
    %Wilmington Trust FSB1
    
    $
    148.4
    
    
    
    9.92
    %
    
    $
    59.9
    
    
    
    4.00
    %
    
    $
    89.8
    
    
    
    6.00
    %Tier 1 capital (to average assets):Wilmington Trust Corporation
    
    $
    1,058.3
    
    
    
    8.77
    %
    
    $
    482.6
    
    
    
    4.00
    %
    
    $
    603.2
    
    
    
    5.00
    %Wilmington Trust Company
    
    $
    950.6
    
    
    
    8.88
    %
    
    $
    428.1
    
    
    
    4.00
    %
    
    $
    535.2
    
    
    
    5.00
    %Wilmington Trust FSB1
    
    $
    148.4
    
    
    
    7.27
    %
    
    $
    36.1
    
    
    
    4.00
    %
    
    $
    45.2
    
    
    
    5.00
    %As of December 31, 2007Total capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    1,130.0
    
    
    
    11.21
    %
    
    $
    806.3
    
    
    
    8.00
    %
    
    $
    1,007.9
    
    
    
    10.00
    %Wilmington Trust Company
    
    $
    1,004.3
    
    
    
    10.77
    %
    
    $
    745.9
    
    
    
    8.00
    %
    
    $
    932.4
    
    
    
    10.00
    %Wilmington Trust of Pennsylvania
    
    $
    112.8
    
    
    
    13.78
    %
    
    $
    65.5
    
    
    
    8.00
    %
    
    $
    81.9
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted assets):Wilmington Trust Corporation
    
    $
    779.2
    
    
    
    7.73
    %
    
    $
    403.1
    
    
    
    4.00
    %
    
    $
    604.7
    
    
    
    6.00
    %Wilmington Trust Company
    
    $
    919.5
    
    
    
    9.86
    %
    
    $
    373.0
    
    
    
    4.00
    %
    
    $
    559.5
    
    
    
    6.00
    %Wilmington Trust of Pennsylvania
    
    $
    104.8
    
    
    
    12.80
    %
    
    $
    32.7
    
    
    
    4.00
    %
    
    $
    49.1
    
    
    
    6.00
    %Tier 1 capital (to average assets):Wilmington Trust Corporation
    
    $
    779.2
    
    
    
    7.18
    %
    
    $
    434.2
    
    
    
    4.00
    %
    
    $
    542.8
    
    
    
    5.00
    %Wilmington Trust Company
    
    $
    919.5
    
    
    
    9.34
    %
    
    $
    393.9
    
    
    
    4.00
    %
    
    $
    492.4
    
    
    
    5.00
    %Wilmington Trust of Pennsylvania
    
    $
    104.8
    
    
    
    8.60
    %
    
    $
    48.8
    
    
    
    4.00
    %
    
    $
    60.9
    
    
    
    5.00
    %
 1
    
    Wilmington Trust of Pennsylvania was merged into Wilmington Trust FSB on November 1,
2008.




---



##### 



112       Wilmington Trust Corporation

2008 Annual Report
 Capital Purchase Program (CPP).
      At-the-market equity offering.
 Capital requirements for dividend payments.
 Other capital adequacy requirements.




---



##### 



Notes to Consolidated Financial Statements

113
 17. RELATED PARTY TRANSACTIONS
  LOANS TO RELATED PARTIES
 At December 31
(in millions)
    
    2008
    
    
    2007Total loans to related parties
    
    $
    57.5
    
    
    $
    62.5Loan additions
    
    $
    32.3
    
    
    $
    40.8Loan payments received
    
    $
    37.0
    
    
    $
    22.7Other changes
    
    $
    (0.3
    )
    
    $
    0.4
   18. PENSION AND OTHER POSTRETIREMENT BENEFITS




---



##### 



114       Wilmington Trust Corporation

2008 Annual Report
 WEIGHTED AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS
 Pension benefits
   
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31  (in millions)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Discount rate
    
    
    6.20
    %
    
    
    6.50
    %
    
    
    6.50
    %
    
    
    6.50
    %
    
    
    6.75
    %
    
    
    6.30
    %Rate of compensation increase
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    
    
    
    
    
 CHANGES TO ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS
 PostretirementAt December 31  (in millions)
    
    Pension plan
    
    
    SERP
    
    
    benefits planGain/(loss) due to change in the discount rate
    
    $
    9.3
    
    
    $
    
    
    
    $
    (1.0
    )Gain/(loss) due to change in return on assets
    
    $
    65.3
    
    
    $
    
    
    
    $
    
  EXCESS/(SHORTFALL) OF PLAN ASSETS COMPARED TO PLAN OBLIGATIONS
 Pension benefits
    
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Fair value of plan assets
    
    $
    177.7
    
    
    $
    223.5
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Projected benefit
obligation
    
    
    218.6
    
    
    
    190.8
    
    
    
    32.6
    
    
    
    25.6
    
    
    
    
    
    
    
    Funded status (difference)
    
    $
    (40.9
    )
    
    $
    32.7
    
    
    $
    (32.6
    )
    
    $
    (25.6
    )
    
    $
    
    
    
    $
    Fair value of plan assets
    
    $
    177.7
    
    
    $
    223.5
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Accumulated benefit
obligation
    
    
    193.6
    
    
    
    169.0
    
    
    
    25.4
    
    
    
    20.2
    
    
    
    27.7
    
    
    
    41.0Funded status (difference)
    
    $
    (15.9
    )
    
    $
    54.5
    
    
    $
    (25.4
    )
    
    $
    (20.2
    )
    
    $
    (27.7
    )
    
    $
    (41.0
    )
 CHANGES IN THE NET PROJECTED BENEFIT OBLIGATIONS AND PLAN ASSETS
 Pension benefits
    
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Net projected benefit obligation at start of year
    
    $
    190.8
    
    
    $
    186.6
    
    
    $
    25.6
    
    
    $
    22.4
    
    
    $
    41.0
    
    
    $
    41.0Service cost
    
    
    12.2
    
    
    
    9.0
    
    
    
    1.0
    
    
    
    0.7
    
    
    
    1.2
    
    
    
    1.3Interest cost
    
    
    15.2
    
    
    
    11.2
    
    
    
    2.1
    
    
    
    1.3
    
    
    
    2.6
    
    
    
    2.4Plan participants contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    0.4Actuarial loss/(gain)
    
    
    9.8
    
    
    
    (8.8
    )
    
    
    4.6
    
    
    
    1.8
    
    
    
    0.6
    
    
    
    (1.1
    )Gross benefits paid
    
    
    (9.4
    )
    
    
    (7.2
    )
    
    
    (0.7
    )
    
    
    (0.6
    )
    
    
    (3.0
    )
    
    
    (3.0
    )Change in plan provisions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15.1
    )
    
    
    Net projected benefit obligation at end of year
    
    $
    218.6
    
    
    $
    190.8
    
    
    $
    32.6
    
    
    $
    25.6
    
    
    $
    27.7
    
    
    $
    41.0Fair value of plan assets at start of year
    
    $
    223.5
    
    
    $
    197.5
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Actual return on plan assets
    
    
    (42.9
    )
    
    
    23.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employer contributions
    
    
    6.5
    
    
    
    10.0
    
    
    
    0.7
    
    
    
    0.6
    
    
    
    2.6
    
    
    
    2.6Plan participants contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    0.4Gross benefits paid
    
    
    (9.4
    )
    
    
    (7.2
    )
    
    
    (0.7
    )
    
    
    (0.6
    )
    
    
    (3.0
    )
    
    
    (3.0
    )Fair value of plan assets at end of year
    
    $
    177.7
    
    
    $
    223.5
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Funded status at end of year
    
    $
    (40.9
    )
    
    $
    32.7
    
    
    $
    (32.6
    )
    
    $
    (25.6
    )
    
    $
    (27.7
    )
    
    $
    (41.0
    )




---



##### 



Notes to Consolidated Financial Statements

115
 NET AMOUNTS RECOGNIZED IN OUR CONSOLIDATED STATEMENTS OF CONDITION
 Pension benefits
    
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Assets
    
    $
    
    
    
    $
    32.7
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Liabilities
    
    
    40.9
    
    
    
    
    
    
    
    32.6
    
    
    
    25.5
    
    
    
    27.7
    
    
    
    41.0Net amount recognized at end of year
    
    $
    (40.9
    )
    
    $
    32.7
    
    
    $
    (32.6
    )
    
    $
    (25.5
    )
    
    $
    (27.7
    )
    
    $
    (41.0
    )
 COMPONENTS OF THE NET AMOUNT RECOGNIZED IN OUR CONSOLIDATED STATEMENTS OF CONDITION
 Pension benefits
    
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007(Accrued)/prepaid benefit cost
    
    $
    51.7
    
    
    $
    50.8
    
    
    $
    (21.4
    )
    
    $
    (18.0
    )
    
    $
    (32.2
    )
    
    $
    (30.8
    )Net asset/(liability) recognized
    
    
    51.7
    
    
    
    50.8
    
    
    
    (21.4
    )
    
    
    (18.0
    )
    
    
    (32.2
    )
    
    
    (30.8
    )Accumulated other comprehensive (loss)/income
    
    
    (92.6
    )
    
    
    (18.1
    )
    
    
    (11.2
    )
    
    
    (7.5
    )
    
    
    4.5
    
    
    
    (10.2
    )Net amount recognized at end of year
    
    $
    (40.9
    )
    
    $
    32.7
    
    
    $
    (32.6
    )
    
    $
    (25.5
    )
    
    $
    (27.7
    )
    
    $
    (41.0
    )Amounts recognized in accumulated other
comprehensive loss:Prior service cost (credit)
    
    $
    0.1
    
    
    $
    0.1
    
    
    $
    4.3
    
    
    $
    1.5
    
    
    $
    (18.4
    )
    
    $
    (3.8
    )Net loss
    
    
    92.5
    
    
    
    18.0
    
    
    
    6.9
    
    
    
    6.0
    
    
    
    13.9
    
    
    
    14.0Total
    
    $
    92.6
    
    
    $
    18.1
    
    
    $
    11.2
    
    
    $
    7.5
    
    
    $
    (4.5
    )
    
    $
    10.2
 OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE (LOSS)/INCOME
 Pension benefits
    
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Prior service cost/(credit)
    
    $
    
    
    
    $
    
    
    
    $
    3.2
    
    
    $
    
    
    
    $
    (15.1
    )
    
    $
    Net (gain)/loss
    
    
    75.1
    
    
    
    (16.1
    )
    
    
    1.4
    
    
    
    1.7
    
    
    
    0.6
    
    
    
    (0.4
    )Amortization of prior service cost
    
    
    
    
    
    
    (0.8
    )
    
    
    (0.4
    )
    
    
    (0.3
    )
    
    
    0.6
    
    
    
    0.5Amortization of net (gain)/loss
    
    
    (0.6
    )
    
    
    (1.8
    )
    
    
    (0.4
    )
    
    
    (0.2
    )
    
    
    (0.8
    )
    
    
    (0.9
    )Total recognized in other
comprehensive (loss)/income
    
    $
    74.5
    
    
    $
    (18.7
    )
    
    $
    3.8
    
    
    $
    1.2
    
    
    $
    (14.7
    )
    
    $
    (0.8
    )Change in liability included in
other comprehensive (loss)/income
    
    $
    (74.5
    )
    
    $
    18.7
    
    
    $
    (3.8
    )
    
    $
    (1.2
    )
    
    $
    14.7
    
    
    $
    0.8
 NET PERIODIC BENEFIT EXPENSE WE EXPECT TO RECORD IN 2009
 PostretirementComponent of accumulated other comprehensive (loss)/income (in millions)
    
    Pension plan
    
    
    SERP plan
    
    
    benefits planExpected 2009 amortization of prior service cost
    
    $
    
    
    
    $
    0.9
    
    
    $
    (1.9
    )Expected 2009 amortization of net loss
    
    $
    1.9
    
    
    $
    0.4
    
    
    $
    0.7




---



##### 



116       Wilmington Trust Corporation

2008 Annual Report
 WEIGHTED AVERAGE ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT EXPENSE OF THE PLANS
 Pension benefits
    
    
    SERP benefits
    
    
    Postretirement benefitsAt December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006Weighted average assumptions used to determine
net periodic benefit expense:Discount rate
    
    
    6.50
    %
    
    
    6.10
    %
    
    
    6.00
    %
    
    
    6.50
    %
    
    
    6.00
    %
    
    
    5.90
    %
    
    
    6.30
    %
    
    
    5.90
    %
    
    
    5.90
    %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
    
    $
    9.8
    
    
    $
    9.0
    
    
    $
    8.3
    
    
    $
    0.8
    
    
    $
    0.7
    
    
    $
    0.8
    
    
    $
    1.2
    
    
    $
    1.3
    
    
    $
    1.2Interest cost
    
    
    12.2
    
    
    
    11.2
    
    
    
    10.3
    
    
    
    1.7
    
    
    
    1.3
    
    
    
    1.3
    
    
    
    2.6
    
    
    
    2.4
    
    
    
    2.2Expected return on plan assets
    
    
    (18.0
    )
    
    
    (16.0
    )
    
    
    (14.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of transition obligation/(asset)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    0.8
    
    
    
    0.8
    
    
    
    0.3
    
    
    
    0.3
    
    
    
    0.3
    
    
    
    (0.5
    )
    
    
    (0.5
    )
    
    
    (0.5
    )Recognized actuarial loss
    
    
    0.5
    
    
    
    1.8
    
    
    
    2.0
    
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.3
    
    
    
    0.8
    
    
    
    0.9
    
    
    
    0.9Net periodic benefit cost
    
    $
    4.5
    
    
    $
    6.8
    
    
    $
    7.3
    
    
    $
    3.1
    
    
    $
    2.5
    
    
    $
    2.8
    
    
    $
    4.1
    
    
    $
    4.1
    
    
    $
    3.8
 PLAN CONTRIBUTIONS EXPECTED IN 2009
 Pension
    
    
    SERP
    
    
    Postretirement(in millions)
    
    plan
    
    
    plan
    
    
    benefits planExpected employer contributions
    
    $
    
    
    
    $
    0.7
    
    
    $
    3.0Expected employee contributions
    
    $
    
    
    
    $
    
    
    
    $
    0.7
  ESTIMATED FUTURE BENEFIT PAYMENTS BASED UPON CURRENT ASSUMPTIONS
 Pension
    
    
    SERP
    
    
    Postretirement(in millions)
    
    benefits
    
    
    benefits
    
    
    benefits2009
    
    $
    7.9
    
    
    $
    0.7
    
    
    $
    3.02010
    
    $
    8.3
    
    
    $
    0.8
    
    
    $
    2.92011
    
    $
    8.7
    
    
    $
    1.2
    
    
    $
    2.92012
    
    $
    9.5
    
    
    $
    1.4
    
    
    $
    2.82013
    
    $
    10.5
    
    
    $
    1.7
    
    
    $
    2.72014-2018
    
    $
    69.1
    
    
    $
    14.1
    
    
    $
    11.9
 Pension plan.




---



##### 



Notes to Consolidated Financial Statements

117
 DISCOUNT
RATE AND ASSET RETURN ASSUMPTIONS
 Increase/
    
    
    Increase/(decrease)
    
    
    (decrease)At December 31, 2008 (dollars in millions)
    
    Change
    
    
    in liabilities
    
    
    in expenseGain/(loss) due to increase in the discount rate
    
    
    0.25
    %
    
    $
    (7.8
    )
    
    $
    1.0Gain/(loss) due to increase in return on assets
    
    
    0.25
    %
    
    $
    
    
    
    $
    0.5Gain/(loss) due to increase in salary
    
    
    0.25
    %
    
    $
    0.9
    
    
    $
    0.3
   
    
    Grow assets at an average annual rate that exceeds the actuarially assumed expected rate of
return in order to keep pace with future obligations.
    
    Achieve the target growth rate with a moderate level of risk.
    
    Show positive returns after inflation.
    
    Provide liquidity for benefit payments to retired plan participants.
  
    
    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 Barclays Capital
Government/Credit Index.
    
    Returns that exceed those of the benchmarks for each asset class in which we invest plan assets.
   PENSION
PLAN ASSET ALLOCATION
 Target allocation(weighted average)
    
    
    Actual allocationAt December 31
    
    2008
    
    
    2008
    
    
    2007Equity securities1
    
    
    34
    %
    
    
    30
    %
    
    
    41
    %Debt securities2
    
    
    30
    %
    
    
    33
    %
    
    
    26
    %Real estate3
    
    
    17
    %
    
    
    16
    %
    
    
    13
    %Alternative assets4
    
    
    19
    %
    
    
    21
    %
    
    
    20
    %Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
 
 1
    
    Includes large-cap, mid-cap, small-cap, and international equities2
    
    Includes cash and fixed income instruments3
    
    Includes investments in real estate investment trusts, Treasury inflation protection securities, commodities, and private real estate4
    
    Includes low- and moderate-volatility hedge funds and private equity investments




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##### 



118       Wilmington Trust Corporation

2008 Annual Report
 Supplemental executive retirement plan (SERP).
 DISCOUNT
RATE, ASSET RETURN, AND SALARY INCREASE ASSUMPTIONS
 Increase/
    
    
    Increase/(decrease)
    
    
    (decrease)At December 31, 2008 (dollars in millions)
    
    Change
    
    
    in liabilities
    
    
    in expenseGain/(loss) due to increase in the discount rate
    
    
    0.25
    %
    
    $
    (1.0
    )
    
    $
    (0.1
    )Gain/(loss) due to increase in return on assets
    
    
    0.25
    %
    
    $
    
    
    
    $
    Gain/(loss) due to increase in salary
    
    
    0.25
    %
    
    $
    0.4
    
    
    $
    0.1
 Postretirement health care and life insurance benefits.
 ASSUMPTIONS
USED TO CALCULATE THE ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION
 At December 31
    
    2008
    
    
    2007Health care cost trend rate assumed
    
    
    9
    %
    
    
    10
    %Rate to which cost trend rate is assumed to decline (the ultimate trend rate)
    
    
    5
    %
    
    
    5
    %Year that rate reaches the ultimate trend rate
    
    
    2013
    
    
    
    2013
 ASSUMPTIONS
USED TO CALCULATE THE NET PERIODIC BENEFIT EXPENSE
 For the year ended December 31
    
    2008
    
    
    2007Health care cost trend rate assumed
    
    
    10
    %
    
    
    9
    %Rate to which cost trend rate is assumed to decline (the ultimate trend rate)
    
    
    5
    %
    
    
    6
    %Year that rate reaches the ultimate trend rate
    
    
    2013
    
    
    
    2010
 DISCOUNT
RATE ASSUMPTIONS
 Increase/
    
    
    Increase/(decrease)
    
    
    (decrease) inAt December 31, 2008 (dollars in millions)
    
    Change
    
    
    in liabilities
    
    
    expenseGain/(loss) due to increase in the discount rate
    
    
    0.25
    %
    
    $
    (0.5
    )
    
    $
    
 EFFECT
ON POSTRETIREMENT HEALTH CARE BENEFITS OF A 1% CHANGE IN THE ASSUMED
HEALTH CARE TREND RATE
 (in millions)
    
    1% increase
    
    
    1% decreaseEffect on total service and interest components of net periodic health care benefit expense
    
    $
    0.4
    
    
    $
    (0.3
    )Effect on accumulated postretirement benefit obligation
    
    $
    1.2
    
    
    $
    (1.0
    )
 Thrift savings plan.




---



##### 



Notes to Consolidated Financial Statements

119
 19. STOCK-BASED COMPENSATION PLANS
  
    
    Executive incentive plan.Our current 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. Recent grants typically have vested over a three- or four-year
period.
    
    Employee stock purchase plan (ESPP).Under the current ESPP, which shareholders approved on
April 17, 2008, 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 $21,250, 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, 2008, the fair value of phantom shares
granted under the deferral plan was $0.8 million. For more information about our directors
compensation, please see the proxy statement for our 2009 annual shareholders meeting.
    
    Long-term incentive plans.These stock-based plans have permitted us to grant incentive stock
options, nonstatutory stock options, restricted stock, and other awards of common stock to
officers, other key staff members, directors, and advisory board members. Under these plans,
the exercise price of each option has equaled the last sale price of our common stock on the
date of the grant; options have been subject to a cliff vesting period, which typically has
been three years (or such other term as our Compensation Committee or Select Committee
determined); and options have had a maximum term of 10 years.
  EFFECTS
OF STOCK-BASED COMPENSATION
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Compensation expense:Stock options
    
    $
    5.4
    
    
    $
    5.4
    
    
    $
    6.4Restricted stock
    
    
    2.6
    
    
    
    2.1
    
    
    
    0.8ESPP
    
    
    
    
    
    
    0.6
    
    
    
    0.6Total compensation expense
    
    $
    8.0
    
    
    $
    8.1
    
    
    $
    7.8Tax benefit
    
    
    2.8
    
    
    
    2.6
    
    
    
    1.9Net income effect
    
    $
    5.2
    
    
    $
    5.5
    
    
    $
    5.9
  Stock option valuation.
 
    
    Base the value of the options on the amount of time that typically lapses between when
options are granted and when they are exercised.
    
    Apply different forfeiture rates for each group.
    
    Calculate valuation estimates more precisely.




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##### 



120       Wilmington Trust Corporation

2008 Annual Report
 STOCK OPTION VALUATION ASSUMPTIONS
 For the year ended December 31
    
    2008
    
    
    2007
    
    
    2006Risk-free interest rate
    
    
    2.49-3.64
    %
    
    
    3.25-4.84
    %
    
    
    4.51-4.94
    %Volatility of Corporations stock
    
    
    13.71-17.86
    %
    
    
    13.46-18.25
    %
    
    
    14.39-20.82
    %Expected dividend yield
    
    
    3.85-4.34
    %
    
    
    2.88-3.87
    %
    
    
    2.72-2.99
    %Expected life of options
    
    4.7-8.2 years
    
    
    4.5-8.2 years
    
    
    4.3-8.4 years
  
    
    We use the Black-Scholes valuation method.
    
    The risk-free interest rate is the U.S. Treasury rate commensurate with the expected life of options on the date of each grant.
    
    We based the volatility of our stock on historical volatility over a span of time equal to the expected life of the options.
    
    We based the expected life of stock option awards on historical experience. Expected life is
the period of time we estimate that granted stock options will remain outstanding.
  Long-term stock-based incentive plans (LTIPs).
 LONG-TERM INCENTIVE PLAN STOCK OPTIONS EXERCISED
 For the year ended December 31 (dollars in millions)
    
    2008
    
    
    2007
    
    
    2006Number of options exercised
    
    
    219,219
    
    
    
    657,168
    
    
    
    1,071,943Total intrinsic value of options exercised
    
    $
    0.6
    
    
    $
    7.6
    
    
    $
    19.3Cash received from options exercised
    
    $
    5.1
    
    
    $
    19.7
    
    
    $
    27.5Tax benefit realized from tax deductions for options exercised
    
    $
    0.2
    
    
    $
    2.3
    
    
    $
    6.0
 LONG-TERM INCENTIVE PLAN STOCK OPTION ACTIVITY
 WeightedWeighted
    
    
    average
    
    
    Aggregateaverage
    
    
    remaining
    
    
    intrinsicStock
    
    
    exercise
    
    
    contractual
    
    
    valueFor the year ended December 31, 2008
    
    options
    
    
    price
    
    
    term
    
    
    (in millions)Outstanding at January 1, 2008
    
    
    6,313,109
    
    
    $
    35.21Granted
    
    
    1,100,156
    
    
    $
    33.06Exercised
    
    
    (219,219
    )
    
    $
    30.32Expired
    
    
    (111,709
    )
    
    $
    34.86Forfeited
    
    
    (100,037
    )
    
    $
    40.68Outstanding at December 31, 2008
    
    
    6,982,300
    
    
    $
    34.95
    
    
    3.2 years
    
    $
    00.0
    1Exercisable at December 31, 2008
    
    
    4,116,689
    
    
    $
    31.81
    
    
    2.0 years
    
    $
    00.0
    1
 
 1
    
    At December 31, 2008, the closing stock price was $22.24, below the strike price for all options.




---



##### 



Notes to Consolidated Financial Statements

121
  PROPOSED 2008 LONG-TERM INCENTIVE PLAN
 For
    
    
    Against
    
    
    AbstainShareholder votes
    
    
    31,023,091
    
    
    
    14,806,837
    
    
    
    945,718
  Unvested stock options.
 UNVESTED STOCK OPTIONS
 For the year (per share)
    
    2008
    
    
    2007
    
    
    2006Weighted average fair value at grant date of stock options issued during year
    
    $
    2.95
    
    
    $
    6.92
    
    
    $
    7.05
 Restricted stock grants.
 
    
    Reacquire the shares, hold them in our treasury, and use them to grant new awards.
    
    Adjust stockholders equity and stock-based compensation expense to reflect these forfeitures.
   RESTRICTED STOCK ACTIVITY
 WeightedaverageRestricted
    
    
    fair valueFor the year ended December 31, 2008
    
    shares
    
    
    at grant dateOutstanding at January 1, 2008
    
    
    86,131
    
    
    $
    42.77Granted
    
    
    118,865
    
    
    $
    31.26Vested
    
    
    (22,539
    )
    
    $
    41.14Forfeited
    
    
    (3,549
    )
    
    $
    35.63Outstanding at December 31, 2008
    
    
    178,908
    
    
    $
    35.47
 VALUE OF VESTED RESTRICTED STOCK
 (in millions)
    
    2008
    
    
    2007
    
    
    2006Total value of shares vested during the year
    
    $
    0.9
    
    
    $
    0.8
    
    
    $
    0.3
 Employee stock purchase plan.




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##### 



122       Wilmington Trust Corporation

2008 Annual Report
 EMPLOYEE STOCK PURCHASE PLAN ACTIVITY
 Shares reservedActivity for the 2004 and 2008 employee stock
    
    for future
    
    
    Subscriptionspurchase plans and their predecessors
    
    subscriptions
    
    
    outstanding
    
    
    Price per shareBalance at January 1, 2006
    
    
    590,290
    
    
    
    106,836Subscriptions entered into on June 1, 2006
    
    
    (95,551
    )
    
    
    95,551
    
    
    $
    37.06Forfeitures
    
    
    6,038
    
    
    
    (6,038
    )
    
    $
    30.54-$37.06Shares issued
    
    
    
    
    
    
    (102,348
    )
    
    $
    30.54Balance at January 1, 2007
    
    
    500,777
    
    
    
    94,001Subscriptions entered into on June 1, 2007
    
    
    (106,012
    )
    
    
    106,012
    
    
    $
    36.64Forfeitures
    
    
    14,110
    
    
    
    (14,110
    )
    
    $
    36.64-$37.06Shares issued
    
    
    
    
    
    
    (91,911
    )
    
    $
    37.06Balance at January 1, 2008
    
    
    408,875
    
    
    
    93,992New plan adoption
    
    
    800,000
    
    
    
    Forfeitures
    
    
    78,849
    
    
    
    (78,849
    )
    
    $
    36.64Shares issued
    
    
    
    
    
    
    (15,143
    )
    
    $
    36.64Expiration of 2004 plan
    
    
    (487,724
    )
    
    
    Subscriptions entered into on June 1, 2008
    
    
    (116,076
    )
    
    
    116,076
    
    
    $
    27.67Forfeitures
    
    
    25,918
    
    
    
    (25,918
    )
    
    $
    27.67Balance at December 31, 2008
    
    
    709,842
    
    
    
    90,158
 20. INCOME TAXES
 RECONCILIATION OF STATUTORY INCOME TAX TO INCOME TAX (BENEFIT)/EXPENSE
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006(Loss)/income before taxes
    
    $
    (25.1
    )
    
    $
    282.6
    
    
    $
    216.3Less: Minority interest
    
    
    0.5
    
    
    
    0.9
    
    
    
    (0.2
    )Less: Foreign income before taxes
    
    
    3.5
    
    
    
    1.8
    
    
    
    1.5Domestic (loss)/income before taxes, less minority interest
    
    $
    (29.1
    )
    
    $
    279.9
    
    
    $
    215.0Domestic (loss)/income before taxes, less minority interest
    
    $
    (29.1
    )
    
    $
    279.9
    
    
    $
    215.0Income tax at statutory rate of 35%
    
    
    (10.2
    )
    
    
    98.0
    
    
    
    75.3Tax effect of tax-exempt and dividend income
    
    
    (2.2
    )
    
    
    (3.0
    )
    
    
    (2.9
    )Stock compensation expense
    
    
    3.8
    
    
    
    0.3
    
    
    
    0.2State taxes, net of federal tax benefit
    
    
    (4.0
    )
    
    
    5.4
    
    
    
    (2.1
    )Valuation allowance
    
    
    2.7
    
    
    
    
    
    
    
    Tax reserve
    
    
    4.9
    
    
    
    (1.2
    )
    
    
    0.8Other
    
    
    3.0
    
    
    
    0.2
    
    
    
    1.4Total income taxes
    
    $
    (2.0
    )
    
    $
    99.7
    
    
    $
    72.7Current income taxes:Federal taxes
    
    $
    96.6
    
    
    $
    92.4
    
    
    $
    99.5State taxes
    
    
    11.2
    
    
    
    8.4
    
    
    
    5.4Foreign taxes
    
    
    0.4
    
    
    
    0.5
    
    
    
    0.3Total current income taxes
    
    $
    108.2
    
    
    $
    101.3
    
    
    $
    105.2Deferred income taxes:Federal taxes
    
    $
    (101.2
    )
    
    $
    0.2
    
    
    $
    (23.8
    )State taxes
    
    
    (9.0
    )
    
    
    (1.8
    )
    
    
    (8.7
    )Total deferred income taxes
    
    $
    (110.2
    )
    
    $
    (1.6
    )
    
    $
    (32.5
    )Total income taxes
    
    $
    (2.0
    )
    
    $
    99.7
    
    
    $
    72.7




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##### 



Notes to Consolidated Financial Statements

123
      SIGNIFICANT COMPONENTS OF DEFERRED TAX LIABILITIES AND ASSETS
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007Deferred tax liabilities:Automobile and equipment leases
    
    $
    0.1
    
    
    $
    1.1Partnerships
    
    
    47.7
    
    
    
    48.8Pension and SERP
    
    
    13.1
    
    
    
    14.4Accretion of discount
    
    
    1.6
    
    
    
    3.6Amortization expense
    
    
    5.4
    
    
    
    2.7OCI  interest rate floors
    
    
    8.0
    
    
    
    7.6Bonus reserve
    
    
    0.1
    
    
    
    0.9State taxes
    
    
    
    
    
    
    5.5Other
    
    
    2.8
    
    
    
    4.4Gross deferred tax liabilities
    
    $
    78.8
    
    
    $
    89.0Deferred tax assets:Loan loss provision
    
    $
    58.4
    
    
    $
    36.5Tax depreciation
    
    
    3.1
    
    
    
    1.4Customer list
    
    
    2.9
    
    
    
    0.3Vacation reserve
    
    
    0.9
    
    
    
    2.2OPEB obligation
    
    
    10.7
    
    
    
    14.3Unearned fees
    
    
    16.4
    
    
    
    19.1Market valuation on investment securities
    
    
    64.9
    
    
    
    12.5OCI  additional pension liability
    
    
    37.6
    
    
    
    14.0Interest on nonaccruing loans
    
    
    2.8
    
    
    
    1.5Impairment of goodwill
    
    
    60.7
    
    
    
    32.1Stock compensation expense
    
    
    5.3
    
    
    
    6.8Gain on sale of securities
    
    
    
    
    
    
    2.2Net interest
rate floor gains
    
    
    8.1
    
    
    
    Other
    
    
    0.7
    
    
    
    1.1Gross deferred tax assets
    
    $
    272.5
    
    
    $
    144.0Valuation allowance
    
    
    (2.7
    )
    
    
    Total deferred tax assets, net of valuation allowance
    
    $
    269.8
    
    
    $
    144.0Net deferred tax assets
    
    $
    191.0
    
    
    $
    55.0




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##### 



124       Wilmington Trust Corporation

2008 Annual Report
        
    
    We recorded $0.5 million of interest and penalty exposure as accrued income tax expense.
    
    Agreements with state taxing authorities required us to adjust our FIN 48 liability, which
resulted in a credit to income tax expense of approximately $1.2 million.
 UNRECOGNIZED TAX BENEFITS/(LIABILITIES)
 
 (in millions)Balance at January 1, 2008
    
    $
    (2.4
    )Additions based on tax positions related to the current year
    
    
    (0.2
    )Additions for tax positions of prior years
    
    
    (5.1
    )Reductions for tax positions of prior years
    
    
    0.1Reductions due to settlements and payments
    
    
    1.2Reductions due to statute expirations
    
    
    Balance at December 31, 2008
    
    $
    (6.4
    )




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##### 



Notes to Consolidated Financial Statements

125
 
 21. ACCUMULATED OTHER COMPREHENSIVE LOSS
 
 COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS
 
 For the year (in millions)
    
    2008
    
    
    2007
    
    
    2006Net unrealized losses on securities, net of taxes of $(18.8), $(11.9), and $(9.3)
    
    $
    (33.5
    )
    
    $
    (21.2
    )
    
    $
    (16.6
    )Net unrealized gain on equity method investment, net of taxes of $0.3, $0.0, and $0.0
    
    
    0.5
    
    
    
    
    
    
    
    Net
unrealized holding gains/(losses) on derivatives, net of taxes of $8.1, $6.8, and $(1.5)
    
    
    14.8
    
    
    
    12.7
    
    
    
    (2.7
    )Reclassification adjustment of derivative costs, net of taxes of $0.0, $0.8, and $0.1
    
    
    
    
    
    
    1.4
    
    
    
    0.1Pension liability, net of taxes of $(32.5), $(6.4), and $(12.9)
    
    
    (60.1
    )
    
    
    (11.7
    )
    
    
    (23.9
    )SERP liability, net of taxes of $(4.5), $(2.6), and $(2.2)
    
    
    (8.4
    )
    
    
    (4.8
    )
    
    
    (4.1
    )Postretirement benefits liability, net of taxes of $1.6, $(3.5), and $(3.9)
    
    
    2.9
    
    
    
    (6.7
    )
    
    
    (7.1
    )Foreign currency translation, net of taxes of $(0.4), $1.1, and $0.9
    
    
    (0.7
    )
    
    
    1.9
    
    
    
    1.6Total accumulated other comprehensive loss
    
    $
    (84.5
    )
    
    $
    (28.4
    )
    
    $
    (52.7
    )
 ACCUMULATED DERIVATIVE GAINS/(LOSSES) ON CASH FLOW HEDGES
 
 For the year, net of taxes (in millions)
    
    2008
    
    
    2007
    
    
    2006Beginning accumulated derivative gains/(losses) on cash flow hedges
    
    $
    12.7
    
    
    $
    (2.7
    )
    
    $
    Net change associated with current year hedging transactions
    
    
    8.8
    
    
    
    15.4
    
    
    
    (2.7
    )Net amount reclassified into earnings
    
    
    (6.7
    )
    
    
    
    
    
    
    Ending accumulated derivative gains/(losses) on cash flow hedges
    
    $
    14.8
    
    
    $
    12.7
    
    
    $
    (2.7
    )
 
 22. EARNINGS PER SHARE
 
 COMPUTATION OF BASIC AND DILUTED NET EARNINGS PER COMMON SHARE
 
 (in millions, except earnings per share and dividends per share)
    
    2008
    
    
    2007
    
    
    2006Net (loss)/income
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8Preferred dividends
    
    
    0.9
    
    
    
    
    
    
    
    Net (loss)/income available to common shareholders
    
    $
    (24.5
    )
    
    $
    182.0
    
    
    $
    143.8Average common shares issued and outstanding
    
    
    67.5
    
    
    
    67.9
    
    
    
    68.4Dilutive common shares from employee stock options, non-vested restricted stock, ESPP subscriptions, and stock warrants
    
    
    
    
    
    
    1.0
    
    
    
    1.3Total diluted common shares issued and outstanding
    
    
    67.5
    
    
    
    68.9
    
    
    
    69.7Basic (loss)/income per common share
    
    $
    (0.36
    )
    
    $
    2.68
    
    
    $
    2.10Diluted (loss)/income per common share
    
    $
    (0.36
    )
    
    $
    2.64
    
    
    $
    2.06Annual cash dividend declared per common share
    
    $
    1.37
    
    
    $
    1.32
    
    
    $
    1.245Anti-dilutive options excluded from calculation
    
    
    7.2
    1
    
    
    0.3
    
    
    
    0.5
 1
    
    At December 31, 2008, the closing price of our stock was less than the strike price for all share equivalents.
 
 23. SEGMENT REPORTING




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##### 



126       Wilmington Trust Corporation

2008 Annual Report
       SEGMENT REPORTING
 
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    MoneyFor the year ended December 31, 2008 (in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalsNet interest income
    
    $
    334.0
    
    
    $
    24.1
    
    
    $
    7.3
    
    
    $
    (7.7
    )
    
    $
    357.7Provision for loan losses
    
    
    (102.4
    )
    
    
    (13.1
    )
    
    
    
    
    
    
    
    
    
    
    (115.5
    )Net interest income after provision
    
    
    231.6
    
    
    
    11.0
    
    
    
    7.3
    
    
    
    (7.7
    )
    
    
    242.2Advisory fees:Wealth Advisory Services
    
    
    2.8
    
    
    
    214.0
    
    
    
    7.9
    
    
    
    
    
    
    
    224.7Corporate Client Services
    
    
    1.6
    
    
    
    
    
    
    
    130.2
    
    
    
    
    
    
    
    131.8Affiliate
Money Managers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15.7
    
    
    
    15.7Total advisory fees
    
    
    4.4
    
    
    
    214.0
    
    
    
    138.1
    
    
    
    15.7
    
    
    
    372.2Amortization of other intangibles
    
    
    
    
    
    
    (4.1
    )
    
    
    (2.7
    )
    
    
    (0.9
    )
    
    
    (7.7
    )Total advisory fees after amortization of other intangibles
    
    
    4.4
    
    
    
    209.9
    
    
    
    135.4
    
    
    
    14.8
    
    
    
    364.5Other noninterest income
    
    
    55.1
    
    
    
    2.0
    
    
    
    1.4
    
    
    
    
    
    
    
    58.5Securities gains
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1Net interest and noninterest income
    
    
    291.2
    
    
    
    222.9
    
    
    
    144.1
    
    
    
    7.1
    
    
    
    665.3Noninterest expense
    
    
    (170.0
    )
    
    
    (200.8
    )
    
    
    (122.0
    )
    
    
    
    
    
    
    (492.8
    )Segment profit before income taxes
    
    
    121.2
    
    
    
    22.1
    
    
    
    22.1
    
    
    
    7.1
    
    
    
    172.5Applicable income taxes and minority interest
    
    
    48.0
    
    
    
    9.8
    
    
    
    11.6
    
    
    
    3.7
    
    
    
    73.1Segment operating income
    
    $
    73.2
    
    
    $
    12.3
    
    
    $
    10.5
    
    
    $
    3.4
    
    
    $
    99.4Investment securities impairment charge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (130.7
    )Roxbury Capital Management impairment charge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (66.9
    )Applicable income taxes for impairment charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    74.6Reported net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (23.6
    )Depreciation and amortization
    
    $
    12.6
    
    
    $
    10.3
    
    
    $
    8.1
    
    
    $
    0.9
    
    
    $
    31.9Investment in equity method investees
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    158.1
    
    
    $
    158.1Segment average assets
    
    $
    9,749.1
    
    
    $
    1,590.3
    
    
    $
    353.2
    
    
    $
    188.6
    
    
    $
    11,881.2




---



##### 



Notes to Consolidated Financial Statements

127
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    MoneyFor the year ended December 31, 2007 (in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalsNet interest income
    
    $
    342.0
    
    
    $
    25.2
    
    
    $
    13.8
    
    
    $
    (12.1)
    
    
    $
    368.9Provision for loan losses
    
    
    (24.4
    )
    
    
    (3.8
    )
    
    
    
    
    
    
    
    
    
    
    (28.2
    )Net interest income after provision
    
    
    317.6
    
    
    
    21.4
    
    
    
    13.8
    
    
    
    (12.1
    )
    
    
    340.7Advisory fees:Wealth Advisory Services
    
    
    2.8
    
    
    
    210.9
    
    
    
    6.4
    
    
    
    
    
    
    
    220.1Corporate Client Services
    
    
    1.3
    
    
    
    
    
    
    
    97.3
    
    
    
    
    
    
    
    98.6Affiliate Money Managers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21.9
    
    
    
    21.9Total advisory fees
    
    
    4.1
    
    
    
    210.9
    
    
    
    103.7
    
    
    
    21.9
    
    
    
    340.6Amortization of affiliate intangibles
    
    
    
    
    
    
    (3.1
    )
    
    
    (0.6
    )
    
    
    (1.0
    )
    
    
    (4.7
    )Total
advisory fees after amortization of affiliate intangibles
    
    
    4.1
    
    
    
    207.8
    
    
    
    103.1
    
    
    
    20.9
    
    
    
    335.9Other noninterest income
    
    
    47.2
    
    
    
    1.9
    
    
    
    0.9
    
    
    
    
    
    
    
    50.0Securities gains
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1Net interest and noninterest income
    
    
    369.0
    
    
    
    231.1
    
    
    
    117.8
    
    
    
    8.8
    
    
    
    726.7Noninterest expense
    
    
    (169.9
    )
    
    
    (188.2
    )
    
    
    (86.0
    )
    
    
    
    
    
    
    (444.1
    )Segment profit before income taxes
    
    
    199.1
    
    
    
    42.9
    
    
    
    31.8
    
    
    
    8.8
    
    
    
    282.6Applicable income taxes and minority interest
    
    
    70.3
    
    
    
    15.5
    
    
    
    11.2
    
    
    
    3.6
    
    
    
    100.6Segment net income
    
    $
    128.8
    
    
    $
    27.4
    
    
    $
    20.6
    
    
    $
    5.2
    
    
    $
    182.0Depreciation and amortization
    
    $
    12.5
    
    
    $
    9.1
    
    
    $
    4.7
    
    
    $
    1.0
    
    
    $
    27.3Investment in equity method investees
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    215.3
    
    
    $
    215.3Segment average assets
    
    $
    9,172.2
    
    
    $
    1,412.7
    
    
    $
    203.1
    
    
    $
    209.4
    
    
    $
    10,997.4
 Wealth
    
    
    Corporate
    
    
    AffiliateRegional
    
    
    Advisory
    
    
    Client
    
    
    MoneyFor the year ended December 31, 2006 (in millions)
    
    Banking
    
    
    Services
    
    
    Services
    
    
    Managers
    
    
    TotalsNet interest income
    
    $
    334.7
    
    
    $
    25.7
    
    
    $
    15.2
    
    
    $
    (12.5
    )
    
    $
    363.1Provision for loan losses
    
    
    (20.5
    )
    
    
    (0.8
    )
    
    
    
    
    
    
    
    
    
    
    (21.3
    )Net interest income after provision
    
    
    314.2
    
    
    
    24.9
    
    
    
    15.2
    
    
    
    (12.5
    )
    
    
    341.8Advisory fees:Wealth Advisory Services
    
    
    2.3
    
    
    
    184.5
    
    
    
    5.2
    
    
    
    
    
    
    
    192.0Corporate Client Services
    
    
    1.0
    
    
    
    
    
    
    
    84.6
    
    
    
    
    
    
    
    85.6Affiliate Money Managers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.5
    
    
    
    20.5Total advisory fees
    
    
    3.3
    
    
    
    184.5
    
    
    
    89.8
    
    
    
    20.5
    
    
    
    298.1Amortization of affiliate intangibles
    
    
    
    
    
    
    (2.8
    )
    
    
    (0.5
    )
    
    
    (0.9
    )
    
    
    (4.2
    )Total advisory fees after amortization of affiliate intangibles
    
    
    3.3
    
    
    
    181.7
    
    
    
    89.3
    
    
    
    19.6
    
    
    
    293.9Other noninterest income
    
    
    48.6
    
    
    
    2.3
    
    
    
    1.1
    
    
    
    
    
    
    
    52.0Securities gains
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2Net interest and noninterest income
    
    
    366.3
    
    
    
    208.9
    
    
    
    105.6
    
    
    
    7.1
    
    
    
    687.9Noninterest expense
    
    
    (157.5
    )
    
    
    (164.7
    )
    
    
    (77.0
    )
    
    
    (0.1
    )
    
    
    (399.3
    )Segment profit before income taxes
    
    
    208.8
    
    
    
    44.2
    
    
    
    28.6
    
    
    
    7.0
    
    
    
    288.6Applicable income taxes and minority interest
    
    
    74.8
    
    
    
    16.0
    
    
    
    9.4
    
    
    
    2.9
    
    
    
    103.1Segment operating income
    
    
    134.0
    
    
    
    28.2
    
    
    
    19.2
    
    
    
    4.1
    
    
    
    185.5Roxbury Capital Management impairment charge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (72.3
    )Applicable income tax benefit from impairment charge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30.6Reported net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    143.8Depreciation and amortization
    
    $
    12.7
    
    
    $
    9.0
    
    
    $
    4.9
    
    
    $
    0.9
    
    
    $
    27.5Investment in equity method investees
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    198.9
    
    
    $
    198.9Segment average assets
    
    $
    8,650.1
    
    
    $
    1,381.4
    
    
    $
    216.6
    
    
    $
    247.0
    
    
    $
    10,495.1




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##### 



128       Wilmington Trust Corporation

2008 Annual Report
 
 24. WILMINGTON TRUST CORPORATION (CORPORATION ONLY)
 
  STATEMENTS OF CONDITION
 
 As of December 31 (in millions)
    
    2008
    
    
    2007Assets:Cash and due from banks
    
    $
    303.7
    
    
    $
    11.2Investment in subsidiaries
    
    
    1,372.4
    
    
    
    1,346.6Investment securities available for sale
    
    
    43.4
    
    
    
    54.2Advance to subsidiaries
    
    
    79.8
    
    
    
    84.4Income taxes receivable
    
    
    2.8
    
    
    
    3.8Other assets
    
    
    5.7
    
    
    
    5.0Total assets
    
    $
    1,807.8
    
    
    $
    1,505.2Liabilities and stockholders equity:Liabilities
    
    $
    13.1
    
    
    $
    5.6Line of credit and other debt
    
    
    20.0
    
    
    
    139.5Long-term debt
    
    
    440.8
    
    
    
    239.8Stockholders equity
    
    
    1,333.9
    
    
    
    1,120.3Total liabilities and stockholders equity
    
    $
    1,807.8
    
    
    $
    1,505.2
 STATEMENTS OF INCOME
 
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006Income:Dividend from subsidiaries
    
    $
    94.2
    
    
    $
    142.1
    
    
    $
    73.2Interest on advance to subsidiaries
    
    
    3.9
    
    
    
    5.8
    
    
    
    5.3Interest
    
    
    2.0
    
    
    
    2.6
    
    
    
    3.3Securities (losses)/gains
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Total income
    
    $
    100.2
    
    
    $
    150.6
    
    
    $
    81.9Expense:Interest on other borrowings
    
    $
    4.2
    
    
    $
    7.9
    
    
    $
    0.5Interest on long-term debt
    
    
    27.5
    
    
    
    17.6
    
    
    
    24.0Salaries, incentives, and bonuses
    
    
    0.3
    
    
    
    0.3
    
    
    
    0.5Other noninterest expense
    
    
    1.5
    
    
    
    1.4
    
    
    
    2.4Total expense
    
    $
    33.5
    
    
    $
    27.2
    
    
    $
    27.4(Loss)/income before income tax benefit and equity in undistributed income of subsidiaries
    
    $
    66.7
    
    
    $
    123.4
    
    
    $
    54.5Income tax benefit
    
    
    (9.1
    )
    
    
    (5.5
    )
    
    
    (5.8
    )Equity in undistributed (loss)/income of subsidiaries
    
    
    (99.4
    )
    
    
    53.1
    
    
    
    83.5Net (loss)/income
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8




---



##### 



Notes to Consolidated Financial Statements

129
 STATEMENTS OF CASH FLOW
 
 For the year ended December 31 (in millions)
    
    2008
    
    
    2007
    
    
    2006OPERATING ACTIVITIESNet (loss)/income
    
    $
    (23.6
    )
    
    $
    182.0
    
    
    $
    143.8Adjustments to reconcile net income to net cash provided by operating activities:Equity in undistributed loss/(income) of subsidiaries
    
    
    99.4
    
    
    
    (53.1
    )
    
    
    (83.5
    )Amortization of premiums on investment securities available for sale
    
    
    0.2
    
    
    
    0.3
    
    
    
    0.3Securities gains
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.1
    )Stock-based compensation expense
    
    
    0.3
    
    
    
    0.3
    
    
    
    0.5Tax benefit realized on employee exercise of stock options
    
    
    
    
    
    
    
    
    
    
    Decrease in other assets
    
    
    4.2
    
    
    
    2.7
    
    
    
    4.9Increase in other liabilities
    
    
    9.4
    
    
    
    1.0
    
    
    
    0.4Net cash provided by operating activities
    
    
    89.8
    
    
    
    133.1
    
    
    
    66.3INVESTING ACTIVITIESProceeds from sales of investment securities available for sale
    
    
    6.5
    
    
    
    1.0
    
    
    
    7.2Proceeds from maturities of investment securities available for sale
    
    
    7.6
    
    
    
    29.8
    
    
    
    11.0Purchases of investment securities available for sale
    
    
    (4.8
    )
    
    
    (0.4
    )
    
    
    (7.4
    )Capital contribution to subsidiaries
    
    
    (177.0
    )
    
    
    (31.2
    )
    
    
    (6.8
    )Advance to subsidiary
    
    
    (8.0
    )
    
    
    (15.3
    )
    
    
    (15.9
    )Repayment of advance to subsidiary
    
    
    13.0
    
    
    
    11.3
    
    
    
    13.3Swap termination
    
    
    
    
    
    
    
    
    
    
    (12.7
    )Net cash used for investing activities
    
    
    (162.7
    )
    
    
    (4.8
    )
    
    
    (11.3
    )FINANCING ACTIVITIESCash dividends
    
    
    (92.5
    )
    
    
    (89.9
    )
    
    
    (85.1
    )Net increase in line of credit
    
    
    5.0
    
    
    
    
    
    
    
    15.0Proceeds from common stock issued under employment benefit plans
    
    
    5.7
    
    
    
    23.1
    
    
    
    31.4Proceeds from reissuance of treasury stock
    
    
    43.7
    
    
    
    
    
    
    
    Proceeds from issuance of preferred stock
    
    
    330.0
    
    
    
    
    
    
    
    Proceeds from issuance of long-term debt
    
    
    198.7
    
    
    
    
    
    
    
    Maturity of long-term debt
    
    
    (125.0
    )
    
    
    
    
    
    
    Acquisition of treasury stock
    
    
    (0.2
    )
    
    
    (86.5
    )
    
    
    (29.1
    )Net cash provided by/(used for) financing activities
    
    
    365.4
    
    
    
    (153.3
    )
    
    
    (67.8
    )Increase/(decrease) in cash and cash equivalents
    
    
    292.5
    
    
    
    (25.0
    )
    
    
    (12.8
    )Cash and cash equivalents at beginning of year
    
    
    11.2
    
    
    
    36.2
    
    
    
    49.0Cash and cash equivalents at end of year
    
    $
    303.7
    
    
    $
    11.2
    
    
    $
    36.2




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##### 



130       Wilmington Trust Corporation

2008 Annual Report
 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
 -s- Ted T. Cecala
    
    -s- Robert V.A. Harra Jr.
    
    -s- David R. GibsonTed T Cecala
    
    Robert V.A. Harra Jr.
    
    David R. GibsonChairman and
    
    President and
    
    Chief Financial Officer andChief Executive Officer
    
    Chief Operating Officer
    
    Executive Vice President, Finance




---



##### 



131


Report
of Independent Registered Public Accounting Firm













Internal Control  Integrated Framework









---



##### 



132       Wilmington Trust Corporation

2008 Annual Report
 
 Report of Independent Registered Public Accounting Firm
 
 Internal
Control  Integrated Framework Managements Report on Internal Control Over
Financial Reporting
    Internal Control
 Integrated Framework




---



##### 



Board Of Directors
 Carolyn S. Burger 1
 Ted T. Cecala
 Thomas L. Du Pont 2,3
 R. Keith Elliott 3
 Donald E. Foley 1*,2
 Robert V.A. Harra Jr.
 Gailen Krug 1,2
 Rex L. Mears 3*
 Stacey J. Mobley 2*
 Michele Rollins, Esq. 3
 Dr. David P. Roselle 1        Oliver R. Sockwell Jr. 1        Robert W. Tunnell Jr. 3     Susan D. Whiting 2    Standing Committees of the Board:
 1
    
    Audit Committee2
    
    Compensation Committee3
    
    Nominating and Corporate Governance Committee*
    
    Denotes committee chair
 WILMINGTON TRUST PRINCIPAL OFFICERS
 Ted T. Cecala
 Robert V.A. Harra Jr.
 David R. Gibson
 Robert M. Balentine
 William J. Farrell II
 Mark A. Graham
 Michael A. Digregorio
 Ronald K. Pendleton
 Kevyn N. Rakowski
 Kevin J. Conte
 133




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##### 



134       Wilmington Trust Corporation

2008 Annual Report
 STOCKHOLDER INFORMATION
 
 STOCK MARKET LISTING
 
   ®
  
 COMMON STOCK PRICE PERFORMANCE
 
  
 Source: KBW Research, SNL DataSource, FactSet Research
 CUMULATIVE TOTAL STOCKHOLDER RETURN
 
 As of December 31
    
    2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008WL
    
    $
    100.0
    
    
    $
    103.5
    
    
    $
    115.1
    
    
    $
    128.4
    
    
    $
    110.8
    
    
    $
    73.7S&P 500 Index
    
    $
    100.0
    
    
    $
    110.8
    
    
    $
    116.3
    
    
    $
    134.6
    
    
    $
    142.0
    
    
    $
    89.5KBW 50 Bank Index
    
    $
    100.0
    
    
    $
    110.0
    
    
    $
    111.3
    
    
    $
    132.9
    
    
    $
    102.3
    
    
    $
    55.8




---



##### 



Stockholder Information

135
 COMMON STOCK PRICE PERFORMANCE AND PER-SHARE DIVIDENDS PAID
 
 2008
    
    
    2007
    
    
    2006Dividend
    
    
    
    
    
    
    
    
    
    
    Dividend
    
    
    
    
    
    
    
    
    
    
    DividendQuarter
    
    High
    
    
    Low
    
    
    paid
    
    
    High
    
    
    Low
    
    
    paid
    
    
    High
    
    
    Low
    
    
    paidFirst
    
    $
    35.50
    
    
    $
    27.78
    
    
    $
    0.335
    
    
    $
    44.55
    
    
    $
    39.74
    
    
    $
    0.315
    
    
    $
    44.80
    
    
    $
    38.54
    
    
    $
    0.300Second
    
    $
    35.17
    
    
    $
    26.26
    
    
    $
    0.345
    
    
    $
    43.14
    
    
    $
    39.62
    
    
    $
    0.335
    
    
    $
    45.21
    
    
    $
    40.22
    
    
    $
    0.315Third
    
    $
    46.75
    
    
    $
    20.50
    
    
    $
    0.345
    
    
    $
    42.14
    
    
    $
    36.46
    
    
    $
    0.335
    
    
    $
    45.61
    
    
    $
    40.52
    
    
    $
    0.315Fourth
    
    $
    31.07
    
    
    $
    19.49
    
    
    $
    0.345
    
    
    $
    42.00
    
    
    $
    32.57
    
    
    $
    0.335
    
    
    $
    45.33
    
    
    $
    40.54
    
    
    $
    0.315Total
    
    $
    46.75
    
    
    $
    19.49
    
    
    $
    1.370
    
    
    $
    44.55
    
    
    $
    32.57
    
    
    $
    1.320
    
    
    $
    45.61
    
    
    $
    38.54
    
    
    $
    1.245Dividend payout ratio
    
    
    
    
    
    
    
    
    
    
    
    %
    
    
    
    
    
    
    
    
    
    
    49.40
    %
    
    
    
    
    
    
    
    
    
    
    59.18
    %Dividend payout
ratio excluding
impairment
write-downs
    
    
    
    
    
    
    
    
    
    
    93.06
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45.88
    %
 PER-SHARE PRICE AND BOOK VALUE
 
 2008
    
    
    2007
    
    
    2006At quarter end
    
    Closing price
    
    
    Book value
    
    
    Closing price
    
    
    Book value
    
    
    Closing price
    
    
    Book valueFirst
    
    $
    31.10
    
    
    $
    16.99
    
    
    $
    42.17
    
    
    $
    15.90
    
    
    $
    43.35
    
    
    $
    15.30Second
    
    $
    26.44
    
    
    $
    15.84
    
    
    $
    41.51
    
    
    $
    15.77
    
    
    $
    42.18
    
    
    $
    15.54Third
    
    $
    28.83
    
    
    $
    15.60
    
    
    $
    38.90
    
    
    $
    16.23
    
    
    $
    44.55
    
    
    $
    15.56Fourth
    
    $
    22.24
    
    
    $
    14.65
    
    
    $
    35.20
    
    
    $
    16.70
    
    
    $
    42.17
    
    
    $
    15.46
 STATISTICAL INFORMATION
 
 At year end
    
    2008
    
    
    2007
    
    
    2006Shareholders of record (approximate)
    
    
    7,534
    
    
    
    7,718
    
    
    
    7,962Diluted shares outstanding (average)
    
    
    67,453,648
    
    
    
    68,850,523
    
    
    
    69,674,934Basic shares outstanding (period end)
    
    
    69,113,448
    
    
    
    67,086,546
    
    
    
    68,459,514Market capitalization
    
    $1.54 billion
    
    
    $2.36 billion
    
    
    $2.89 billion
 
 DIVIDENDS
 
   
 ANNUAL MEETING




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##### 



136       Wilmington Trust Corporation

2008 Annual Report
 
 INQUIRIES REGARDING STOCK HOLDINGS
 
  Wells Fargo Bank, N.A.Telephone: 800.999.9867www.wellsfargo.com/com/shareowner_servicesMailing Address:Wells Fargo Shareowner ServicesP.O. Box 64854St. Paul, MN 55164Street Address:Wells Fargo Shareowner Services161 North Concord ExchangeSouth St. Paul, MN 55075
  
 DIVIDEND REINVESTMENT AND VOLUNTARY STOCK PURCHASE PLAN
 
  
 ADDITIONAL INFORMATION
 
    
 SEC CERTIFICATIONS
 
 2008 Annual Report on Form 10-K




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Stockholder Information

137
 
 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 Benintende,Vice President, Investor Relations
    
    Vice President, Public Relations302.651.8069
    
    302.651.8268
 ®
 
 CORPORATE HEADQUARTERS
 
 
 
 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
 © 2009 Wilmington Trust Corporation. Affiliates in Arizona, California, Delaware, Florida, Georgia,
Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, and Pennsylvania. Members FDIC. Other
affiliates in Connecticut, South Carolina, Vermont, Amsterdam, Cayman Islands, Channel Islands, Dublin,
Frankfurt, London, and Luxembourg.




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138       Wilmington Trust Corporation

2008 Annual Report
 WILMINGTON TRUST OFFICE LOCATIONS
 CORPORATE HEADQUARTERS
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
302.651.1000
www.wilmingtontrust.com
    
    ARIZONA
PhoenixCALIFORNIA
Beverly Hills
Costa Mesa
Los AngelesCONNECTICUT
Guilford
StamfordDELAWARE
49 offices throughout the stateFLORIDA
North Palm Beach
Palm Beach
Stuart
Vero BeachGEORGIA
AtlantaMARYLAND
Baltimore
Bel AirMASSACHUSETTS
BostonMINNESOTA
Minneapolis
    
    NEVADA
Las VegasNEW JERSEY
Jersey City
Mount Laurel
PrincetonNEW YORK
2 offices in ManhattanPENNSYLVANIA
Doylestown
Lehigh Valley (Bethlehem) 
Philadelphia
Villanova
West ChesterSOUTH CAROLINA
CharlestonVERMONT
BurlingtonOUTSIDE THE UNITED STATES
Amsterdam
Cayman Islands
Channel Islands
Dublin
Frankfurt
London
Luxembourg
    
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Wilmington Trust 2008 ANNUAL REPORT AR2008