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Wilmington Trust Corporation Q2 2008 Earnings Call Transcript

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2008-07-18 12:06:08.0

Tags: Wilmington Trust Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Your first question comes from Andrea Yau – Lehman Brothers.

Andrea Yau – Lehman Brothers

Good morning, everyone. First question was, I was hoping you could give actually the dollar amount that either you grew organically or that AST contributed, both on the revenue and expense line.

David R. Gibson

Andrea, this is Dave. I’m not quite sure I follow your question.

Andrea Yau – Lehman Brothers

How much would revenues and expenses lines at AST impacted? How much would those have grown without AST?

David R. Gibson

AST added $800,000 to wealth advisory, $4.4 million to CCS revenue, and $4.2 million to expenses.

Andrea Yau – Lehman Brothers

Great. And then separately, I was hoping you could walk me through the balance sheet impact of the goodwill impairment. Both on the asset side and on equity.

David R. Gibson

On the goodwill impairment?

Andrea Yau – Lehman Brothers

M-hm.

David R. Gibson

Well, goodwill was written down by the pre-tax charge in the, when you see quarter to quarter you may, you will actually see an increase in goodwill because while we wrote down the Roxbury investment we acquired AST in the same quarter. So the net effect of that write-down and acquisition was actually a small, I’m looking at a $13 million increase in goodwill. And the charge was obviously the after-tax part that was taken out of equity.

Andrea Yau – Lehman Brothers

Okay. Perfect. Thank you so much.

Operator

Your next question comes from Rob Rutschow – Deutsche Bank.

Robert Rutschow – Deutsche Bank Securities

Hey, good morning. A couple additional questions on AST. It looks like you had some decent growth on assets under management on a linked sequential quarter basis and some of the larger private banks have talked about flight to quality. Did you see any of that and what would attribute to the increase there?

David R. Gibson

I think we did see AST was a fair amount of the increase that you saw on a trailing quarter basis. I think anecdotally we have heard of a flight to quality. I can’t say that that was a material part of the change that you saw in those AUM numbers. I think that inertia will take a little bit of time to see some asset growth.

Robert Rutschow – Deutsche Bank Securities

Okay. On the expense side, I guess you laid out $4.2 million in expenses related to AST. So that leaves on a sequential quarter basis about another $6 million. I’m sorry, another couple million increase on a linked quarter basis. Can you talk about sort of where those additional expenses are coming from?

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