Wilmington Trust Posts 1Q Profit, Shares Surge

Wilmington Trust cut its provision for loan losses 56 percent to $29.5 million from $67.5 million in the fourth quarter. However, the $29.5 million is nearly triple the $10 million provision in the year-ago quarter. Net charge-offs fell nearly 17 percent to $21.2 million compared with the fourth quarter figure of $25.5 million, but were up sharply from $4.7 million in the year-ago quarter.

"All of our businesses did well in the first quarter, but extraordinary economic and market conditions prevented the full extent of these successes from translating into higher earnings," Chairman and Chief Executive Ted Cecala said.

Net interest income, or money earned from deposits and loans, fell to $78.5 million from $94.6 million in the fourth quarter, and from $86.9 million in the year-ago quarter. Lower interest rates reduced net interest margin to 2.91 percent from 3.34 percent in the fourth quarter, and from 3.37 percent in the year-ago quarter.

Shares of Wilmington Trust rose $4.35, or 40.8 percent, to $15.16 in morning trading. The stock has traded in a 52-week range of $6.76 to $35.75.

Wilmington Trust provides banking services throughout the mid-Atlantic region, as well wealth advisory services for clients in 36 countries, and corporate client services in 88 countries.