Wilmington Trust Corp.'s (WL) fourth-quarter loss widened as the
company's loan-loss provision surged.
The operator of regional banks throughout the mid-Atlantic
region, which also provides financial services around the world,
has struggled amid continued credit problems. It has agreed to be
bought by M&T Bank Corp. (MTB) in a deal that valued the target
at $351 million when it was announced in November.
Merger and acquisition activity among U.S. banks has picked up
lately and is expected to increase further, particularly as
institutions that have yet to return to profitability look to
return outstanding funds from the Troubled Asset Relief
Program.
Wilmington reported a loss of $209.3 million, or $2.35 a share,
compared with a year-earlier loss of $11.2 million, or 23 cents a
share. Revenue fell 8.2% to $163.6 million.
Analysts polled by Thomson Reuters forecast a loss of 35 cents a
share on $168 million in revenue. Such estimates typically exclude
one-time items and other adjustments.
Loan-loss provisions were $135.6 million, up from $82.8 million
a year earlier but less than the prior quarter's $281.5 million.
Net charge-offs, or loans lenders don't think are collectible, rose
to 2.58% of average loans from 0.37% a year earlier and from 1.74%
in the third quarter. Nonperforming assets, those near default,
jumped to 15.02% from 5.76% and 12.11%.
Shares closed Thursday at $4.39 and were inactive premarket. The
stock has plunged 71% over the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com