Wilmington Trust Corporation (NYSE:WL) anticipates that earnings per
common share (on a diluted basis) for the 2009 second quarter will be
lower than market expectations. This is primarily due to:
-
An expected increase in the provision for loan losses from $29.5
million for the 2009 first quarter to approximately $54 million.
-
An expected pre-tax charge of approximately $23 million for
other-than-temporary impairments on pooled trust-preferred investment
securities.
-
A special assessment by the Federal Deposit Insurance Corporation
(FDIC) of approximately $5 million. (This special assessment, which
the FDIC levied industry-wide, is in addition to regular insurance
premiums.)
Second quarter results will show that the company remains well
capitalized, both including and excluding the $330 million in Capital
Purchase Program funds the company received in exchange for issuing
shares of Wilmington Trust Series A preferred stock to the U.S.
Department of the Treasury. All regulatory capital ratios continue to
exceed the well-capitalized amounts required by the Federal Reserve
Board.
"While our Wealth Advisory Services and Corporate Client Services
businesses performed well during the second quarter, the recession
continued to put stress on some of our borrowers and on some of the
underlying issuers in our pooled trust-preferred securities,” said Ted
T. Cecala, Wilmington Trust chairman and chief executive officer.
The second quarter increase in the provision for loan losses is
primarily due to:
-
An expected increase in nonperforming loans from $251.1 million for
the 2009 first quarter to approximately $332 million.
-
An expected increase in net charge-offs from $21.2 million for the
2009 first quarter to approximately $36 million.
-
Downgrades in internal credit risk ratings.
Wilmington Trust intends to announce second quarter results on July 24,
2009, at 8:00 a.m. (Eastern). Management plans to discuss those results
in a conference call the same day at 10:00 a.m. (Eastern). The earnings
release, along with instructions on how to access the conference call
and its replay, will be available on www.wilmingtontrust.com
in the Investor Relations section, under "Earnings Announcements.”
This release includes forward-looking statements regarding Wilmington
Trust’s expected second quarter 2009 results and diluted earnings per
common share. These statements rely on a number of assumptions,
estimates, and assessments of potential developments, and are subject to
various risks and uncertainties that could cause actual results to
differ from expectations. Wilmington Trust’s ability to achieve the
results reflected in these statements could be affected adversely by,
among other things, changes in national or regional economic conditions;
fluctuations in equity or fixed income markets; changes in accounting
policies, procedures, or guidelines; higher-than-expected credit losses;
changes in the market values of securities in the investment portfolio;
and changes in the regulatory, judicial, legislative, or tax treatment
of business transactions.
Wilmington Trust Corporation is a financial services holding company
that provides Regional Banking services throughout the mid-Atlantic
region, Wealth Advisory Services for high-net-worth clients in 36
countries, and Corporate Client Services for institutional clients in 88
countries. Its wholly owned bank subsidiary, Wilmington Trust Company,
which was founded in 1903, is one of the largest personal trust
providers in the United States and the leading retail and commercial
bank in Delaware. Wilmington Trust Corporation and its affiliates have
offices in Arizona, California, Connecticut, Delaware, Florida, Georgia,
Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New
York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the
Channel Islands, London, Dublin, Frankfurt, Luxembourg, and Amsterdam.
For more information, visit www.wilmingtontrust.com.
