UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 1-14659

WILMINGTON TRUST CORPORATION

Delaware		51-0328154
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Rodney Square North, 1100 North Market Street, Wilmington, Delaware (Address of principal executive offices)		19890 (Zip Code)

(302) 651-1000
(Registrant’s telephone number, including area code)

None
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ		Accelerated filer o		Non-accelerated filer o		Smaller reporting company o
				(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding as of September 30, 2009
Common stock — Par Value $1.00		69,389,934 shares

 

 

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1 Financial Statements (unaudited)
Consolidated Statements of Condition			1
Consolidated Statements of Income			3
Consolidated Statements of Cash Flows			5
Notes to Consolidated Financial Statements			9
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations			66
Company overview			66
Results for the three and nine months ended September 30, 2009			67
Regional Banking			81
Net interest income and net interest margin			95
Noninterest income			103
Corporate Client Services			104
Wealth Advisory Services			107
Assets under management and administration			110
Affiliate money managers			111
Noninterest expense			114
Capital resources			117
Liquidity and funding			125
Asset quality			131
Derivatives, hedging instruments, other off-balance-sheet arrangements, and other contractual obligations			149
Other information			152
Item 3 Quantitative and Qualitative Disclosures About Market Risk			154
Item 4 Controls and Procedures			161
PART II. OTHER INFORMATION
Item 1 Legal Proceedings			162
Item 1A Risk Factors			162
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds			162
Item 3 Defaults upon Senior Securities			164
Item 4 Submission of Matters to a Vote of Security Holders			164
Item 5 Other Information			164
Item 6 Exhibits			164

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

PART I — FINANCIAL INFORMATION

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)

		September 30,				December 31,
		2009				2008
		(In millions, except
		share amounts)
ASSETS
Cash and due from banks		$	229.6			$	290.4
Interest-bearing deposits in other banks			123.7				141.0
Federal funds sold and securities purchased under agreements to resell			65.9				45.3
Investment securities available for sale:
U.S. Treasury securities			10.7				41.4
Government agency securities			161.5				463.0
Obligations of state and political subdivisions			5.2				6.2
Mortgage-backed securities			276.5				660.3
Other securities			39.0				39.8
Total investment securities available for sale			492.9				1,210.7
Investment securities held to maturity:
Government agency securities			0.5				0.5
Obligations of state and political subdivisions			0.5				0.7
Mortgage-backed securities			—				0.2
Other securities			114.8				161.2
Total investment securities held to maturity			115.8				162.6
Total investment securities			608.7				1,373.3
Federal Home Loan Bank and Federal Reserve Bank stock, at cost			26.7				20.0
Loans:
Commercial, financial, and agricultural			2,644.9				2,966.3
Real estate — construction			1,950.7				1,923.8
Commercial mortgage			2,075.0				1,870.2
Total commercial loans			6,670.6				6,760.3
Residential mortgage			428.2				571.2
Consumer			1,485.5				1,732.9
Loans secured with investments			436.9				554.7
Total retail loans			2,350.6				2,858.8
Total loans, net of unearned income of $6.0 in 2009 and $5.6 in 2008			9,021.2				9,619.1
Reserve for loan losses			(201.8	)			(157.1	)
Net loans			8,819.4				9,462.0
Premises and equipment, net			149.1				152.0
Goodwill, net of accumulated amortization of $29.8 in 2009 and 2008			363.1				355.6
Other intangible assets, net of accumulated amortization of $47.4 in 2009 and $39.6 in 2008			42.3				47.0
Accrued interest receivable			65.6				82.0
Other assets			379.7				350.3
Total assets		$	10,873.8			$	12,318.9

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) — (Continued)

		September 30,				December 31,
		2009				2008
		(In millions, except
		share amounts)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand		$	1,041.6			$	1,231.7
Interest-bearing:
Savings			918.5				815.7
Interest-bearing demand			3,352.8				2,632.9
Certificates under $100,000			1,031.8				1,072.5
Local certificates $100,000 and over			161.6				230.7
Total core deposits			6,506.3				5,983.5
National brokered certificates			922.7				2,432.9
Total deposits			7,429.0				8,416.4
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase			1,266.1				1,590.8
U.S. Treasury demand deposits			—				6.4
Line of credit			—				20.0
Total short-term borrowings			1,266.1				1,617.2
Accrued interest payable			67.4				71.2
Other liabilities			326.0				411.2
Long-term debt			470.4				468.8
Total liabilities			9,558.9				10,984.8
Stockholders’ equity:
Wilmington Trust stockholders’ equity:
Preferred stock: $1.00 par value, 1,000,000 shares authorized, 330,000 5% cumulative shares issued and outstanding			322.8				321.5
Common stock: $1.00 par value, authorized 150,000,000 shares, issued 78,528,346 shares			78.5				78.5
Capital surplus			213.5				216.4
Retained earnings			1,118.0				1,103.7
Accumulated other comprehensive loss			(123.0	)			(84.5	)
Total contributed capital and retained earnings			1,609.8				1,635.6
Less: treasury stock: 9,138,412 shares in 2009 and 9,414,898 shares in 2008, at cost			(295.4	)			(301.7	)
Total Wilmington Trust stockholders’ equity			1,314.4				1,333.9
Noncontrolling interest			0.5				0.2
Total stockholders’ equity			1,314.9				1,334.1
Total liabilities and stockholders’ equity		$	10,873.8			$	12,318.9

See notes to Consolidated Financial Statements

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

		For the Three Months								For the Nine Months
		Ended September 30,								Ended September 30,
		2009				2008				2009				2008
		(In millions, except share amounts)
NET INTEREST INCOME
Interest and fees on loans		$	98.9			$	133.1			$	304.6			$	403.5
Interest and dividends on investment securities:
Taxable interest			6.8				17.5				27.8				56.1
Tax-exempt interest			0.1				0.1				0.3				0.3
Dividends			0.3				0.5				1.1				2.1
Interest on deposits in other banks			0.1				0.5				0.3				0.9
Interest on federal funds sold and securities purchased under agreements to resell			0.1				0.2				0.3				0.7
Dividends on Federal Home Loan Bank and Federal Reserve Bank stock			—				0.2				0.3				0.7
Total interest income			106.3				152.1				334.7				464.3
Interest on deposits			17.3				43.2				66.4				143.4
Interest on short-term borrowings			0.6				9.5				3.0				36.9
Interest on long-term debt			8.4				8.3				25.1				20.9
Total interest expense			26.3				61.0				94.5				201.2
Net interest income			80.0				91.1				240.2				263.1
Provision for loan losses			(38.7	)			(19.6	)			(122.2	)			(48.0	)
Net interest income after provision for loan losses			41.3				71.5				118.0				215.1
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services:
Trust and investment advisory fees			33.5				39.3				96.4				118.7
Mutual fund fees			2.4				6.8				15.1				19.6
Planning and other services			10.0				11.2				31.2				32.5
Total Wealth Advisory Services			45.9				57.3				142.7				170.8
Corporate Client Services:
Capital markets services			15.2				11.9				39.5				35.6
Entity management services			8.3				7.7				24.5				24.2
Retirement services			16.7				11.3				49.4				22.0
Investment/cash management services			3.7				3.5				11.2				10.3
Total Corporate Client Services			43.9				34.4				124.6				92.1
Cramer Rosenthal McGlynn			5.3				3.8				13.3				13.3
Roxbury Capital Management			(0.6	)			0.4				(2.0	)			(0.4	)
Total advisory fees			94.5				95.9				278.6				275.8
Amortization of affiliate intangibles			(2.1	)			(2.2	)			(6.5	)			(5.4	)
Total advisory fees after amortization of affiliate intangibles			92.4				93.7				272.1				270.4
Service charges on deposit accounts			8.1				7.7				23.5				22.7
Loan fees and late charges			2.0				2.1				6.3				6.6
Card fees			2.4				2.7				7.2				7.2
Other noninterest income			0.8				1.3				4.7				9.0
Securities gains, net of losses			1.5				—				13.6				0.1
Total other-than-temporary impairment losses			(57.5	)			(19.7	)			(129.7	)			(32.3	)
Amount of loss recognized in other comprehensive income (before taxes)			19.4				—				63.7				—
Net other-than-temporary impairment losses recognized in income			(38.1	)			(19.7	)			(66.0	)			(32.3	)
Total noninterest income			69.1				87.8				261.4				283.7
Net interest and noninterest income		$	110.4			$	159.3			$	379.4			$	498.8

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) — (Continued)

		For the Three Months								For the Nine Months
		Ended September 30,								Ended September 30,
		2009				2008				2009				2008
		(In millions, except share amounts)
NONINTEREST EXPENSE
Salaries and wages		$	49.3			$	50.6			$	147.1			$	144.6
Incentives and bonuses			9.7				11.8				22.4				39.5
Employment benefits			14.0				12.8				44.9				39.5
Net occupancy			7.7				7.9				23.3				23.5
Furniture, equipment, and supplies			10.1				11.7				30.4				31.6
Advertising and contributions			1.4				2.6				5.7				7.7
Servicing and consulting fees			3.1				2.9				10.7				8.7
Subadvisor expense:
Retirement services			7.6				2.0				21.3				2.8
Other services			1.2				2.7				3.8				8.0
Travel, entertainment, and training			1.8				3.2				5.5				8.5
Originating and processing fees			2.4				2.8				7.8				7.8
Insurance			5.6				2.3				20.1				6.0
Conversion errors			—				—				2.8				—
Legal and auditing fees			2.9				1.8				8.9				6.7
Other noninterest expense			10.2				8.8				27.3				26.1
Total noninterest expense before impairment			127.0				123.9				382.0				361.0
Goodwill impairment write-down			—				—				—				66.9
Total noninterest expense			127.0				123.9				382.0				427.9
NET (LOSS)/INCOME
(Loss)/income before income taxes and noncontrolling interest			(16.6	)			35.4				(2.6	)			70.9
Income tax (benefit)/expense			(10.8	)			12.3				(9.8	)			25.5
Net (loss)/income before noncontrolling interest			(5.8	)			23.1				7.2				45.4
Net income attributable to the noncontrolling interest			0.1				0.2				0.4				0.5
Net (loss)/income attributable to Wilmington Trust Corporation			(5.9	)			22.9				6.8				44.9
Dividends and accretion on preferred stock			4.5				—				13.6				—
Net (loss)/income available to common shareholders		$	(10.4	)		$	22.9			$	(6.8	)		$	44.9
Net (loss)/income per common share:
Basic		$	(0.15	)		$	0.34			$	(0.10	)		$	0.67
Diluted		$	(0.15	)		$	0.34			$	(0.10	)		$	0.67
Weighted average common shares outstanding (in thousands):
Basic			68,979				67,231				68,963				67,155
Diluted			68,979				67,269				68,963				67,349

See notes to Consolidated Financial Statements

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		For the Nine Months
		Ended September 30,
		2009				2008
		(In millions)
OPERATING ACTIVITIES
Net income before noncontrolling interest		$	7.2			$	45.4
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses			122.2				48.0
Provision for depreciation and other amortization			16.6				16.9
Amortization of other intangible assets			7.5				6.2
Amortization of discounts and premiums on investment securities available for sale			1.5				0.4
Accretion of discounts and premiums on investment securities held to maturity			(0.3	)			—
Goodwill impairment write-down			—				66.9
Deferred income taxes			(1.0	)			(49.8	)
Employer pension contribution			(10.0	)			(6.5	)
Originations of residential mortgages available for sale			(216.3	)			(76.6	)
Gross proceeds from sales of residential mortgages			348.0				77.5
Gains on sales of residential mortgages			(2.8	)			(0.9	)
Securities losses/(gains):
Other-than-temporary impairment			66.0				32.3
Other			(13.6	)			(0.1	)
Amortization of gain on interest rate floors			(9.4	)			(8.5	)
Stock-based compensation expense			4.0				6.2
Tax expense realized on employee exercise of stock options			—				0.1
(Increase)/decrease in other assets			(18.4	)			17.7
Decrease in other liabilities			(79.1	)			(19.7	)
Net cash provided by operating activities		$	222.1			$	155.5

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) — (Continued)

		For the Nine Months
		Ended September 30,
		2009				2008
		(In millions)
INVESTING ACTIVITIES
Proceeds from sales of investment securities available for sale		$	410.5			$	11.9
Proceeds from sales of Federal Home Loan Bank and Federal Reserve Bank stock, at cost			—				12.9
Proceeds from maturities of investment securities available for sale			713.1				922.5
Proceeds from maturities of investment securities held to maturity			3.4				0.4
Purchases of investment securities available for sale			(398.3	)			(689.6	)
Purchases of investment securities held to maturity			(0.7	)			(0.6	)
Purchases of Federal Home Loan Bank and Federal Reserve Bank stock			(6.7	)			(6.9	)
Cash paid for acquisitions			(6.1	)			(93.6	)
Investment in affiliates			—				(14.3	)
Sale of affiliate interest			—				0.3
Purchase of residential mortgages			(5.5	)			—
Net decrease/(increase) in loans			397.0				(1,136.1	)
Purchases of premises and equipment			(12.5	)			(16.1	)
Dispositions of premises and equipment			0.4				1.2
Proceeds from sales of interest rate floors			—				55.1
Net cash provided by/(used for) investing activities		$	1,094.6			$	(952.9	)

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) — (Continued)

		For the Nine Months
		Ended September 30,
		2009				2008
		(In millions)
FINANCING ACTIVITIES
Net increase in demand, savings, and interest-bearing demand deposits		$	632.6			$	175.8
Net (decrease)/increase in certificates of deposit			(1,620.0	)			607.9
Net decrease in federal funds purchased and securities sold under agreements to repurchase			(324.7	)			(29.9	)
Net decrease in U.S. Treasury demand deposits			(6.4	)			(69.8	)
Proceeds from issuance of long-term debt			—				198.7
Maturity of other debt			—				(125.0	)
Net (decrease)/increase in line of credit			(20.0	)			5.0
Cash dividends			(35.7	)			(69.0	)
Distributions to minority shareholders			(0.1	)			(0.4	)
Proceeds from common stock issued under employment benefit plans			—				5.6
Proceeds from reissuance of treasury stock			—				16.2
Tax expense realized on employee exercise of stock options			—				(0.1	)
Acquisition of treasury stock			(0.8	)			(0.1	)
Net cash (used for)/provided by financing activities		$	(1,375.1	)		$	714.9
Effect of foreign currency translation on cash			0.9				(0.8	)
Decrease in cash and cash equivalents			(57.5	)			(83.3	)
Cash and cash equivalents at beginning of period			476.7				394.5
Cash and cash equivalents at end of period		$	419.2			$	311.2

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) — (Continued)

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the nine months ended September 30		2009				2008
		(In millions)
Interest		$	98.3			$	200.3
Taxes			44.6				71.8

Liabilities were assumed in connection with our interests in Roxbury Capital Management, LLC; and Camden Partners Holdings, LLC; and with our acquisitions of AST Capital Trust Company; Bingham Legg Advisers, LLC; and Grant Tani Barash & Altman, LLC, as follows:

Liabilities assumed during the nine months ended September 30		2009				2008
		(In millions)
Fair value of assets acquired		$	—			$	112.3
Goodwill and other intangible assets from acquisitions			6.1				97.0
Cash paid			(6.1	)			(107.6	)
Liabilities assumed		$	—			$	101.7

Non-cash items during the nine months ended September 30		2009				2008
		(In millions)
Net unrealized gains/(losses) on securities, net of tax of $4.3 and $(51.1), respectively		$	7.9			$	(90.7	)
Net unrealized (loss)/gain on equity method investment, net of tax of $(0.2) and $0.3, respectively			(0.4	)			0.5
Reclassification adjustment for securities (gains)/losses included in net income, net of taxes of $(3.3) and $11.6 respectively			(5.8	)			20.6
Net unrealized holding gains on derivatives used for cash flow hedges, net of taxes of $0.0 and $4.9, respectively			—				8.8
Reclassification from accumulated other comprehensive income into earnings of discontinued cash flow hedges, net of tax of $(3.4) and $(2.2), respectively			(6.0	)			(4.1	)
Foreign currency translation adjustment, net of tax of $0.7 and $0.0, respectively			1.3				—
Reclassification adjustment of derivative costs, net of tax of $0.0 and $(0.8), respectively			—				(1.4	)
Postretirement benefits liability adjustment, net of tax of $0.0 and $0.0, respectively			—				0.1
Minimum pension liability adjustment, net of tax of $0.4 and $0.2, respectively			0.3				0.1
SERP1 liability adjustment, net of tax of $0.9 and $0.2, respectively			1.5				0.3

See notes to Consolidated Financial Statements

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Accounting and reporting policies

We maintain our accounting records and prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. Using these principles, we make subjective judgments about uncertainties and trends and we make estimates and assumptions about the amounts we report in our financial statements and notes, including amounts for revenue recognition, the reserve for loan losses, pension and other benefit plans, stock-based employee compensation, investment securities valuations, goodwill impairment, loan origination fees, income taxes, and other items. We evaluate these estimates on an ongoing basis.

The precision of these estimates and the likelihood of future changes are subject to various risks and uncertainties, and depend on a number of assumptions, estimates, expectations, assessments of potential developments, other underlying variables, and a range of possible outcomes. Circumstances that differ significantly from our judgments and estimates could cause our actual financial results to differ from our expectations.

Our financial results could be affected adversely by, among other things, changes in national or regional economic conditions; changes in market interest rates; fluctuations in equity or fixed income markets; changes in the market values of securities in our investment portfolio; significant changes in banking laws or regulations; changes in accounting policies, procedures, or guidelines; increased competition for business; higher-than-expected credit losses; the effects of acquisitions; the effects of integrating acquired entities; a substantial and permanent loss of either client accounts and/or assets under management at Wilmington Trust and/or affiliate money managers Cramer Rosenthal McGlynn (CRM) and Roxbury Capital Management (RCM); changes in the regulatory, judicial, legislative, or tax treatment of business transactions; new litigation or developments in existing litigation; and economic uncertainty created by unrest in other parts of the world.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We may use the following abbreviations throughout this report:

	APB:		Accounting Principles Board
	ARB:		Accounting Research Bulletin
	ASC:		Accounting Standards Codification
	ASU:		Accounting Standards Update
	CPP:		U.S. Department of the Treasury Capital Purchase Program
	EITF:		Emerging Issues Task Force
	ESPP:		Employee Stock Purchase Plan
	FASB:		Financial Accounting Standards Board
	FHLB:		Federal Home Loan Bank of Pittsburgh
	FIN:		FASB Interpretation (Number)
	FOMC:		Federal Open Market Committee
	FRB:		Federal Reserve Bank
	FSP:		FASB Staff Position
	GAAP:		U.S. generally accepted accounting principles
	IRS:		Internal Revenue Service
	NYSE:		New York Stock Exchange
	SAB:		Staff Accounting Bulletin
	SEC:		Securities and Exchange Commission
	SERP:		Supplemental Executive Retirement Plan
	SFAS:		Statements of Financial Accounting Standards
	TARP:		U.S. Department of the Treasury Troubled Asset Relief Program

In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles,” which was incorporated into ASC 105, “Generally Accepted Accounting Principles.” SFAS No. 168 replaces SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles,” as the single source of authoritative U.S. accounting and reporting standards. SFAS No. 168 does not change current GAAP, but it does change the manner in which accounting literature is organized and referenced. SFAS No. 168 was effective for us with the quarter ending September 30, 2009. SFAS No. 168 did not affect our financial statements. Beginning with the 2009 third quarter, we updated our references to accounting literature to conform to those used in the codification.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Due to our adoption on January 1, 2009, of FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,” which was incorporated into ASC 260, “Earnings Per Share,” we are calculating earnings per common share under the two-class method. For more information about this, read Note 4, “Earnings per share,” in this report.

Our adoption on January 1, 2009, of SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51,” which was incorporated into ASC 810, “Consolidation,” changed the presentation of net income. What we formerly called “minority interest” is now called “noncontrolling interest.” In addition, our income statement includes a line for “net income attributable to the noncontrolling interest” as well as a line for “net income attributable to Wilmington Trust Corporation.” Throughout this report, we use “net income” to mean “net income attributable to Wilmington Trust Corporation.”

On April 1, 2009, we adopted FSP FAS No. 115-2 and FAS No. 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments,” which was incorporated into ASC 320, “Investments — Debt and Equity Securities.” FSP FAS No. 115-2 and FAS No. 124-2 applies to debt securities and amends when other-than-temporary impairments must be taken, and changes the amount and presentation of other-than-temporary impairments recognized in earnings when a portion of the impairment is not due to credit losses. If we do not intend to sell the security and it is not more likely than not that we will be required to sell the security, the amount of impairment determined to be due to credit loss is recognized in earnings, and the non-credit-related portion of the impairment is now recorded in other comprehensive income. We recognized the effects of adopting this FSP as a change in accounting principle and recorded a cumulative effect adjustment to retained earnings at April 1, 2009, of $70.1 million, which represented our determination of the non-credit related portion of previously recorded other-than-temporary impairment on debt securities. A corresponding adjustment was made to accumulated other comprehensive income. For more information about the effects of this pronouncement, read Note 10, “Investment Securities,” in this report.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Three other recent FASB pronouncements were effective for us as of June 30, 2009:

•

FSP FAS No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” which was incorporated into ASC 820, “Fair Value Measurements and Disclosures.”

•

FSP FAS No. 107-1 and APB No. 28-1, “Interim Disclosures About Fair Value of Financial Instruments,” which was incorporated into ASC 825, “Financial Instruments.”

•

SFAS No. 165, “Subsequent Events,” which was incorporated into ASC 855, “Subsequent Events.”

These pronouncements did not affect our financial statements materially, but they did expand our disclosures. For more information about the effects of these pronouncements, read Note 5, “Fair value measurement of assets and liabilities,” Note 10, “Investment securities,” and Note 15, “Subsequent events,” in this report.

Our consolidated financial statements include the accounts of Wilmington Trust Corporation, our wholly owned subsidiaries, and the subsidiaries in which we are majority owner. We eliminate intercompany balances and transactions in consolidation. For more information about our accounting policies, read Note 2, “Summary of significant accounting policies,” in our 2008 Annual Report to Shareholders.

Although we are majority owner of CRM, we do not consolidate its results because CRM owners retain control over certain governance matters. We do not consolidate the results of RCM because we are not majority owner and RCM owners retain control over certain governance matters. For information on how we account for CRM, RCM, and other subsidiaries and affiliates, read Note 4, “Affiliates and acquisitions,” in our 2008 Annual Report to Shareholders.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We have applied our critical accounting policies and estimation methods consistently in all periods presented in this report and we have discussed these policies with our Audit Committee. The information in this report has not been audited. It includes all adjustments of a normal recurring nature that we believe are necessary for fair presentation. We have reclassified certain prior-year amounts to conform to the current-year presentation. The consolidated financial statements in this report should be read in conjunction with the “Consolidated Financial Statements” and the “Notes to Consolidated Financial Statements” in our 2008 Annual Report to Shareholders.

2. Stock-based compensation plans

The Compensation Committee and the Select Committee of our Board of Directors administer an executive incentive plan, an employee stock purchase plan (ESPP), a directors’ deferred fee plan, and a long-term incentive plan. We account for our stock-based compensation plans in accordance with ASC 718, “Stock Compensation” and ASC 505-50, “Equity-Based Payments to Non-Employees.” For more information about these plans and how we determine valuations of stock-based awards, read Note 19, “Stock-based compensation plans,” in our 2008 Annual Report to Shareholders.

The common shares we issue as stock-based compensation come from our treasury, which held approximately 9.1 million shares at September 30, 2009. This is more than adequate to meet the share requirements of our current stock-based compensation plans.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

		For the three months ended								For the nine months ended
		September 30,								September 30,
Stock-based compensation expense (in millions)		2009				2008				2009				2008
Compensation expense:
Common stock options		$	0.8			$	1.3			$	2.5			$	4.0
Restricted common stock			0.4				0.4				1.3				2.3
Employee stock purchase plan			0.3				0.1				0.2				(0.1	)
Total compensation expense		$	1.5			$	1.8			$	4.0			$	6.2
Tax benefit			—				0.6				0.9				2.2
Net income effect		$	1.5			$	1.2			$	3.1			$	4.0

			For the three months ended								For the nine months ended
			September 30,								September 30,
Stock option valuation assumptions			2009			20081					2009				2008
Risk-free interest rate			2.57% - 2.85%				—				2.11% - 3.35%				2.49 - 3.64%
Volatility of Corporation’s common stock			40.38% - 41.84%				—				29.86% - 41.84%				13.71% - 17.86%
Expected common stock dividend yield			5.16% - 6.38%				—				5.16% - 8.67%				3.85% - 4.34%
Expected life of options			4.9 years				—				4.9 - 8.6 years				4.7 - 8.2 years

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the valuation assumptions in the table above:

•

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.

Stock-based compensation expense for incentive stock options and the ESPP affects our income tax expense and effective tax rate, because we are not allowed a tax deduction unless the award recipient or ESPP subscriber makes a disqualifying disposition upon exercise. As a participant in the CPP, we may not deduct compensation of more than $500,000 paid to any named executive officer identified in our proxy statement for any year in which the U.S. Treasury holds any debt or equity security we issued to the U.S. Treasury under the CPP.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Long-term stock-based incentive plans

		For the three months ended								For the nine months ended
		September 30,								September 30,
Long-term incentive plan options exercised		2009				2008				2009				2008
		(Dollars in millions)
Number of common stock options exercised			—				20,858				—				217,269
Total intrinsic value of options exercised		$	—			$	0.2			$	—			$	0.6
Cash received from options exercised		$	—			$	0.6			$	—			$	5.1
Tax benefit realized from tax deductions for options exercised		$	—			$	0.1			$	—			$	0.2

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

										Weighted
						Weighted				average				Aggregate
		Common				average				remaining				intrinsic
Long-term incentive plan option activity for the nine		stock				exercise				contractual				value
months ended September 30, 2009		options				price				term				(in millions)
Outstanding at January 1, 2009			6,982,300			$	34.95
Granted			1,120,100			$	10.70
Exercised			—			$	—
Expired			(431,169	)		$	31.12
Forfeited			(151,073	)		$	30.02
Outstanding at September 30, 2009			7,520,158			$	31.66			3.2 years				$	3.8
Exercisable at September 30, 2009			4,545,526			$	34.03			2.1 years				$	—

Unvested stock options

At September 30, 2009, total unrecognized compensation cost related to unvested common stock options was $3.3 million, which we expect to record over a weighted average period of 1.6 years. Stock options awarded since we became a participant in the CPP do not vest until the later of the stated vesting period or when the U.S. Treasury no longer holds any debt or equity securities we issued under the CPP.

Restricted stock grants

We measure the fair value of restricted common stock by the last sale price of our common stock on the date of the restricted stock grant. We amortize the value of restricted stock grants into stock-based compensation expense on a straight-line basis over the requisite service period for the entire award. At September 30, 2009, total unrecognized compensation cost related to restricted stock grants was $4.0 million, which we expect to record over a weighted average period of 1.6 years.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Under our incentive plans, the vesting period for some of our restricted stock awards can accelerate upon retirement and in certain other circumstances. When we award restricted stock to people from whom we may not receive services in the future, such as those who are eligible for retirement, we recognize the expense of restricted stock grants when we make the award, instead of amortizing the expense over the vesting period of the award. In the 2009 third quarter, we recorded $0.4 million of expense for restricted stock grants. Restricted stock awarded to certain officers since we became a participant in the CPP does not vest until the later of the stated vesting period or when the U.S. Treasury no longer holds any debt or equity securities we issued under the CPP.

		Restricted				Weighted average fair
Restricted stock activity for the nine months ended September 30, 2009		shares				value at grant date
Outstanding at January 1, 2009			178,908			$	35.47
Granted			302,619			$	10.67
Vested			(31,961	)		$	38.66
Forfeited			(38,405	)		$	19.04
Outstanding at September 30, 2009			411,161			$	18.50

Employee stock purchase plan (ESPP)

For the ESPP, we record stock-based compensation expense based on the fair value of plan participants’ options to purchase shares, amortized over the plan’s fiscal year. We use the Black-Scholes method to determine the fair value. For the nine months ended September 30, 2009, total recognized compensation cost related to the ESPP was $0.2 million and total unrecognized compensation cost related to this plan was $1.0 million.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

		Shares reserved for				Subscriptions				Price per
Employee stock purchase plan		future subscriptions				outstanding				share
Balance at January 1, 2008			408,875				93,992
New plan appropriation			800,000				—
Forfeitures			78,849				(78,849	)		$	36.64
Shares issued			—				(15,143	)		$	36.64
Expiration of 2004 ESPP			(487,724	)			—
Subscriptions entered into on June 1, 2008			(116,076	)			116,076			$	27.67
Forfeitures			25,918				(25,918	)		$	27.67
Balance at January 1, 2009			709,842				90,158
Forfeitures			88,360				(88,360	)		$	27.67
Shares issued			—				(1,798	)		$	27.67
Subscriptions entered into on June 1, 2009			(285,745	)			285,745			$	12.67
Forfeitures			15,097				(15,097	)		$	12.67
Balance at September 30, 2009			527,554				270,648

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

3. Comprehensive income/(loss)

		For the Three								For the Nine
		Months Ended								Months Ended
		September 30,								September 30,
Comprehensive income/(loss)		2009				2008				2009				2008
		(In millions)
Net (loss)/income before noncontrolling interest		$	(5.8	)		$	23.1			$	7.2			$	45.4
Other comprehensive income/(loss), net of tax:
Net unrealized gains/(losses) on securities, net of income taxes of $2.1, $(20.5), $4.3, and $(51.1)			4.2				(36.4	)			7.9				(90.7	)
Net unrealized (loss)/gain on equity method investment, net of income taxes of $0.0, $0.0, $(0.2), and $0.3			—				—				(0.4	)			0.5
Reclassification adjustment for securities (gains)/losses included in net income, net of income taxes of $(0.5), $7.1, $(3.3), and $11.6			(1.0	)			12.6				(5.8	)			20.6
Non-credit portion of held-to-maturity investment securities OTTI1 losses recognized in other comprehensive income, net of income taxes of $(7.0), $0.0, $(22.9), and $0.0			(12.4	)			—				(40.8	)			—
Accretion of non-credit portion of OTTI1 losses recognized in other comprehensive income, net of income taxes of $(0.1), $0.0, $(0.1), and $0.0			(0.2	)			—				(0.1	)			—
Reclassification of unrealized losses recorded at the time of transfer to held to maturity, net of income taxes of $3.0, $0.0, $12.2, and $0.0.			5.3				—				21.6				—
Reclassification adjustment for current period OTTI1 recognized in income, net of income taxes of $10.5, $0.0, $14.8, and $0.0			18.8				—				26.5				—
Net unrealized holding gains arising during the period on derivatives used for cash flow hedges, net of income taxes of $0.0, $0.0, $0.0, and $4.9			—				—				—				8.8
Reclassification from accumulated other comprehensive income into earnings of discontinued cash flow hedges, net of taxes of $(1.0), $(1.3), $(3.4), and $(2.2)			(1.8	)			(2.5	)			(6.0	)			(4.1	)
Reclassification adjustment of derivative costs, net of income taxes of $0.0, $0.0, $0.0, and $(0.8)			—				—				—				(1.4	)
Foreign currency translation adjustments, net of income taxes of $(0.1), $(0.2), $0.7, and $0.0			(0.3	)			(0.3	)			1.3				—
SERP liability adjustment, net of income taxes of $0.1, $0.1, $0.9, and $0.2			0.1				0.1				1.5				0.3
Postretirement benefits liability adjustment, net of income taxes of $0.0, $0.0, $0.0, and $0.0			—				—				—				0.1
Minimum pension liability adjustment, net of income taxes of $0.2, $0.0, $0.4, and $0.2			0.1				—				0.3				0.1
Comprehensive income/(loss) before the noncontrolling interest		$	7.0			$	(3.4	)		$	13.2			$	(20.4	)
Comprehensive income attributable to the noncontrolling interest			0.1				0.2				0.4				0.5
Comprehensive income/(loss) attributable to Wilmington Trust Corporation		$	6.9			$	(3.6	)		$	12.8			$	(20.9	)

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

4. Earnings per share

As a result of our adoption on January 1, 2009, of FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,” which was incorporated into ASC 260, “Earnings Per Share,” we calculate earnings per common share under the two-class method. The restricted stock awards we grant include nonforfeitable rights to receive dividends over the vesting period of the award. Based on the guidance in ASC 260, our unvested restricted stock awards meet the definition of participating securities, and we are required to use the two-class method to calculate earnings per share.

Using a prescribed earnings allocation formula, the two-class method requires us to present earnings per common share as if all of the earnings for the period had been distributed to common shareholders and to the holders of unvested restricted stock. The application of the two-class method reduces income available to common shareholders as well as both basic and diluted earnings per common share.

In accordance with the two-class method described in ASC 260, “Earnings Per Share,” we recalculated the basic and diluted earnings per share amounts for the three and nine months ended September 30, 2008, under the two-class method. This recalculation did not change the previously reported basic or diluted earnings per share amounts.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

		For the Three								For the Nine
		Months Ended								Months Ended
		September 30,								September 30,
Computation of Basic and Diluted Earnings per Share		2009				2008				2009				2008
		(In millions, except per-share amounts)
Net (loss)/income		$	(5.9	)		$	22.9			$	6.8			$	44.9
Dividends and accretion on preferred stock			4.5				—				13.6				—
Net (loss)/income available to common shareholders		$	(10.4	)		$	22.9			$	(6.8	)		$	44.9
Average common shares issued and outstanding			69.0				67.2				69.0				67.2
Dilutive common shares from employee stock options, ESPP subscriptions, and stock warrants			—				0.1				—				0.1
Total diluted common shares issued and outstanding			69.0				67.3				69.0				67.3
Basic (loss)/income per common share		$	(0.15	)		$	0.34			$	(0.10	)		$	0.67
Diluted (loss)/income per common share1		$	(0.15	)		$	0.34			$	(0.10	)		$	0.67
Cash dividends declared per common share		$	0.01			$	0.345			$	0.355			$	1.025
Anti-dilutive equity instruments excluded from calculation			10.1				6.4				10.1				5.2

5. Fair value measurement of assets and liabilities

We disclose the estimated fair values of certain financial instruments, whether or not we recognize them at fair value in our Consolidated Statements of Condition. Fair value generally is the exchange price on which a willing buyer and a willing seller would agree when market conditions are not distressed. Because of the uncertainties inherent in determining fair value, fair value estimates may not be precise. Many of our fair value estimates are based on highly subjective judgments and assumptions we make about market information and economic conditions. Changes in market interest rates, or any of the assumptions underlying our estimates, could cause those estimates to change significantly.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We do not believe that the aggregate fair value amounts presented in this note offer a full assessment of our consolidated financial condition, our ability to generate net income, or the value of our company, because the fair value amounts presented here do not consider any value that may accrue from existing client relationships or our ability to create value by making loans, gathering deposits, or providing fee-based services. In addition, we do not include the values of nonfinancial assets and liabilities and intangible assets.

We measure the fair values of assets and liabilities in accordance with ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 establishes a three-level hierarchy that prioritizes the factors (inputs) used to calculate the fair value of assets and liabilities:

•

Level 1. Level 1 inputs are unadjusted quoted prices, such as NYSE closing prices, 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.

If we use multiple input levels to calculate the fair value of an asset or liability, then the lowest-level significant input determines the level for the entire fair value measurement of that asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and it considers factors specific to each asset or liability.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

In accordance with GAAP, we may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. These adjustments typically relate to lower-of-cost or fair value accounting, or write-downs of individual assets due to impairment.

The following paragraphs summarize how we determine fair values and inputs to fair value calculations.

Cash and due from banks, short-term investments, accrued interest receivable, short-term borrowings, and accrued interest payable. Since these instruments have short maturities, their fair values and carrying values are approximately the same.

Investment securities. We review our debt and equity investment securities at least quarterly to determine their fair value. The key determinants of fair value are market interest rates, credit spreads, and investor perceptions. When market interest rates rise or credit spreads widen, the fair values of debt and equity securities typically decline and unrealized losses increase. Conversely, when market interest rates fall or credit spreads tighten, the fair values of debt and equity securities typically increase. As their fair values rise, unrealized losses may decrease or unrealized gains may increase.

To determine the fair values of most of our investment securities, we consider a variety of factors and use criteria specified by the SEC and FASB. We use financial market data, credit data, cash flow projections, and other analytics generated internally and by third parties. Where possible, we use direct quotes or draw parallels from the trades and quotes of securities with similar features. If these parallels are not available, we base fair value on the market prices of comparable instruments as quoted by broker-dealers, with adjustments for maturity dates, underlying assets, credit ratings, and other items, if necessary.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Due to continued illiquidity in the market for pooled trust-preferred securities (TruPS), we mainly use Level 3 inputs, obtained from brokers or third-party advisors, to estimate the fair value of these securities. To estimate fair value, we use an internal model that reflects liquidity and credit risk to discount the cash flow projections provided by the third-party advisors.

The base cash flow for the calculation is the remaining expected future cash flows, based on the contractual terms of the security and adjusted for current and expected future defaults. We adjust our default assumptions each quarter based on, among other factors, the current financial sector environment; estimates of loss severity; and developments related to the financial institutions whose securities underlie the pooled TruPS. We also adjust the discount rate for appropriate risk premiums, including liquidity risk and credit risk. Based on changes in certain yield curves related to the financial sector, and other factors, we estimate the associated risk premium for each individual security and adjust the discount rate accordingly.

While estimating fair values and the inputs to fair value calculations in illiquid markets is inherently uncertain, we believe our methodology applies assumptions that market participants would find relevant, and provides the best estimate of fair value at this time.

FHLB and FRB stock. The fair value of FHLB and FRB stock is assumed to equal its cost basis, since the stock is nonmarketable but redeemable at its par value.

Derivative financial instruments. We base the fair value estimates of derivative instruments on pricing models that use assumptions about market conditions and risks that are current as of the reporting date. The derivative instruments we use are mainly interest rate swaps and floors, which we use primarily to hedge the interest rate risk associated with floating rate commercial loans and subordinated long-term debt. In accordance with ASC 815, “Derivatives and Hedging,” the estimated fair values of these instruments represent the amounts we would have expected to receive or pay to terminate such agreements.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

To determine the fair values of our interest rate swaps, we obtain data from an independent third-party advisor on interest rate and foreign exchange risk management. We use data provided by this advisor to determine the fair values of our interest rate swaps by using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). We base the variable cash payments or receipts on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with ASC 820, we incorporate credit valuation adjustments to reflect both our nonperformance risk and the respective counterparty’s nonperformance risk. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Most of the inputs we use to value our swap contracts fall within Level 2 of the fair value hierarchy. For the credit valuation adjustments, we use some Level 3 inputs, such as internal estimates of current credit spreads for our swap clients, to evaluate the likelihood of default by us and our counterparties.

For more information about our use of derivatives, read Note 6, “Derivative and hedging activities,” in this report, and Note 15, “Derivative and hedging activities,” in our 2008 Annual Report to Shareholders.

Loans. To determine the fair values of loans, we employ discounted cash flow analyses that use interest rates and terms similar to those currently being offered to borrowers.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We do not record loans at fair value on a recurring basis. We record fair value adjustments to loans on a nonrecurring basis to reflect full and partial charge-offs due to impairment. For impaired loans, we use a variety of techniques to measure fair value, such as using the current appraised value of the collateral, discounting the contractual cash flows, and analyzing market data that we may adjust due to the specific characteristics of the loan or collateral.

Deposits. The fair values of demand deposits equal the amount payable on demand as of the reporting date. The carrying amount for variable rate deposits approximates their fair values as of the reporting date. To estimate the fair values of fixed rate CDs, we use a discounted cash flow analysis that incorporates prevailing market rates for CDs with comparable maturities.

Long-term debt. We base the fair value of long-term debt on the borrowing rate currently available to us for debt with comparable terms and maturities.

Commitments to extend credit and letters of credit. The fair values of loan commitments and letters of credit approximate the fees we charge for providing these services.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three and nine months ended September 30, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

		As of September 30, 2009								As of December 31, 2008
		Carrying				Fair				Carrying				Fair
Carrying values and estimated fair values		Value				Value				Value				Value
		(In millions)
Financial assets:
Cash and due from banks		$	229.6			$	229.6			$	290.4			$	290.4
Short-term investments			189.6				189.6				186.3				186.3
Investment securities			608.7				590.7				1,373.3				1,329.9
FHLB and FRB stock			26.7				26.7				20.0				20.0
Loans, net of reserves			8,819.4				8,686.2				9,462.0				9,384.0
Interest rate swap contracts			53.4				53.4				73.7				73.7
Accrued interest receivable			65.6				65.6				82.0				82.0
Financial liabilities:
Deposits		$	7,429.0			$	7,501.9			$	8,416.4			$	8,468.0
Short-term borrowings			1,266.1				1,266.1				1,617.2				1,617.2
Interest rate swap contracts			54.3				54.3				74.5				74.5
Accrued interest payable			67.4				67.4				71.2				71.2
Long-term debt			470.4				468.6				468.8				442.7