Wilmington Trust Posts 3Q Loss On Investment Hit

WILMINGTON, Del. (AP) — Wilmington Trust Corp. said Friday it posted a third-quarter loss as the regional bank wrote down the value of some investment portfolio holdings.

Although the company's adjusted results beat Wall Street expectations, shares of Wilmington Trust fell 83 cents, or 5.4 percent, to $14.45 in afternoon trading. The stock has traded in a 52-week range of $6.76 to $30.15.

The bank posted a loss available to common shareholders of $10.4 million, or 15 cents per share, compared with a year-ago profit of $22.9 million, or 34 cents per share.

The latest quarter included $38.1 million in losses primarily from pooled trust-preferred securities, which some banks and insurers use to raise capital. The hybrid investments share characteristics of both debt and stock. On an after-tax basis, the securities losses in the latest quarter reduced net income by about $23.6 million, or 34 cents per share.

Excluding that, the company's operating profit in the latest quarter was $17.8 million, or 19 cents per share.

Wilmington Trust said it recorded the charge because some issuers of the securities that it held in its investment portfolio couldn't meet cash flow obligations. Values also were reduced due to a lack of trading activity for the securities.