Wilmington Trust Profits Rise 13%; Dividend Raised for 25th Consecutive Year

Business Wire, April 21, 2006

WILMINGTON, Del. -- Wilmington Trust Corporation (NYSE:WL) reported that net income for the first quarter of 2006 was $44.1 million. This was 13% higher than for the year-ago first quarter.

Earnings per share (on a diluted basis) for the 2006 first quarter were $0.64. This was 12% higher than for the year-ago first quarter.

"Growth in each of our businesses, a 10% increase in loan balances, a favorable market interest rate environment, and the high quality of our loan portfolio produced strong first quarter results," said Ted T. Cecala, Wilmington Trust chairman and chief executive officer. "These results illustrate the continuing return we are seeing from the investments we have made over the past several years to hire the best people, add the capabilities our clients need most, and enter markets that have the greatest potential for growth."

For the 2006 first quarter:

--Loan balances were $7.45 billion, on average, a 10% increase from the year-ago first quarter.

--Net charge-offs and the net charge-off ratio declined.

--More than 97% of loans outstanding continued to receive pass ratings in the internal risk rating analysis.

--Net interest income was 13% higher than for the year-ago first quarter.

--The net interest margin rose to 3.77%.

--Trust and investment advisory revenue in the Wealth Advisory business was 15% higher than for the year-ago first quarter.

--Corporate Client Services revenue was 13% higher than for the year-ago first quarter.

--Managed assets at value-style affiliate money manager Cramer Rosenthal McGlynn continued to reach new highs.

--Expense growth was managed.

On an annualized basis, first quarter 2006 results produced a return on average assets of 1.76% and a return on average equity of 17.42%. The corresponding returns for the first quarter of 2005 were 1.68% and 17.32%, respectively.

Beginning with the first quarter of 2006, the company adopted the retrospective method of accounting for the cost of stock-based compensation in accordance with Statement of Financial Accounting Standards (SFAS) No. 123 (revised). All affected prior-period amounts were restated accordingly, including incentive and bonus expense (which includes stock-based compensation expense), total noninterest expense, taxes, net income, net income per share, total assets, stockholders' equity, the returns on average assets and average equity, period-end primary capital, risk-based capital, and book value per share. The restated amounts for the full years 1995 through 2005 are available at www.wilmingtontrust.com, by e-mail request to IR@wilmingtontrust.com, or by telephone request to (302) 651-8107.

Cash dividend raised for 25th consecutive year

In consideration of the continued growth in net income and stockholders' equity, the Board of Directors raised the quarterly cash dividend 5%, from $0.30 per share to $0.315 per share. On an annualized basis, this increased the dividend from $1.20 per share to $1.26 per share. The quarterly dividend will be paid on May 15, 2006, to stockholders of record as of May 1, 2006.

Today's declaration marks the 25th consecutive year that Wilmington Trust has raised its cash dividend. According to Mergent, Inc.'s Dividend Achievers, only 112 of the 10,000 companies trading on North American exchanges have raised their dividends for 25 or more consecutive years.

Balance sheet expansion reflects loan growth

Balance sheet assets for the 2006 first quarter were $10.17 billion, on average. This was 7% higher than for the year-ago first quarter, and slightly higher than for the fourth quarter of 2005.

Earning assets for the 2006 first quarter were $9.34 billion, on average. This was 8% higher than for the year-ago first quarter, and slightly more than for the 2005 fourth quarter.

Loans continued to comprise approximately 73% of total balance sheet assets and approximately 80% of earning assets.

Balances, on average, of the investment securities portfolio were $1.88 billion for the 2006 first quarter. This was slightly higher than for the year-ago first quarter, and slightly lower than for the 2005 fourth quarter. On a percentage basis, the composition of investments in the portfolio remained relatively unchanged.

Investment securities portfolio             3/31/06 12/31/05  3/31/05
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Average life (in years)                       6.27     6.14     6.42
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Duration                                      2.71     2.63     3.07
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Beginning with the first quarter of 2006, balances of U.S. Treasury securities and those of government agencies were recorded separately on the balance sheet. Prior period amounts were adjusted to reflect this change. This change had no effect on period-end or average balance amounts.

Regional Banking benefits from healthy economy, loan growth

Economic indicators remained positive throughout the Delaware Valley region. According to the Federal Reserve Bank of Philadelphia, economic activity indices for the region rose over the past 12 months, and moderate to strong economic growth was projected through the third quarter of 2006. According to the Federal Deposit Insurance Corporation, Delaware's rate of job growth in the fourth quarter of 2005 (the most recent data available) was among the highest in the United States. Delaware's unemployment rate remained below the national unemployment rate.