Wilmington Trust CEO Discusses Q3 2010 Results - Earnings Call Transcript

Wilmington Trust CEO Discusses Q3 2010 Results - Earnings Call Transcript
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Wilmington Trust (



Q3 2010 Earnings Call

November 1, 2010 10:00 a.m. ET


Ellen Roberts – VP, IR, Wilmington Trust

Don Foley – Chairman and CEO, Wilmington Trust

Bob Wilmers – Chairman and CEO, M&T Bank

Dave Gibson – CFO, Wilmington Trust

Rene Jones – CFO, M&T Bank


Steven Alexopoulos – JP Morgan

Joe Finnick – Sandler O'Neil

Matthew Clark – KBW

Matt O'Connor – Deutsche Bank

Bob Ramsey – FBR Capital Markets

Patrick O'Brien – Brown Advisory

Ken Derby – Morgan Stanley

Sachin Shah – Capstone Global Markets

John Pancari – Evercore Partners

Blaine Marder – Loeb Capital Management

Peter MacArthur – WDEL

Collyn Gilbert – Stifel Nicolaus

Andrea Jao [ph] with Cowan

Mike Mayo – CLSA



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Previous Statements by WL
» Wilmington Trust Corporation Q2 2010 Earnings Call Transcript
» Wilmington Trust Corporation Q1 2010 Earnings Call Transcript
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Greetings and welcome to the third quarter 2010 Wilmington Trust Corp. conference call. [Operator Instructions.] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ellen Roberts, vice president of investor relations for Wilmington Trust. Thank you. You may begin.

Ellen Roberts

Thanks operator. Good morning everybody. Welcome and thank you for participating. We have two items to discuss this morning. First is Wilmington Trust's third quarter earnings, and the second is the definitive merger agreement between Wilmington Trust and M&T Bank.

Our agenda this morning features remarks from Don Foley, Wilmington Trust's chairman and chief executive officer; Bob Wilmers, M&T's chairman and chief executive officer; and Rene Jones, M&T's chief financial officer.

Also with us this morning are Wilmington Trust's chief financial officer, Dave Gibson, and M&T's director of investor relations, Don MacLeod. We'll begin this morning with remarks from Mr. Foley. After conclusion of his remarks, Mr. Foley will introduce Mr. Wilmers, who will be followed by Mr. Jones. At the conclusion of their remarks, everyone will be available for questions.

I want to remind you that slides and other reporting materials are available on both Wilmington Trust's and M&T's websites. That would be wilmingtontrust.com and mtb.com. I want to remind you that the call is being recorded, and the replay details are in our earnings news release and on both websites as well. I want to remind you that news reported maybe on this call and that all participants are permitted to ask questions.

And now I have to give you the forward-looking disclaimer, which as you might imagine is a little big longer than what we usually go through. I wanted to let you know that our comments may contain forward-looking statements that reflect our current expectations about our performance. Our ability to achieve the results reflected in these statements could be affected adversely by changes in national or regional economic conditions, market interest rates, fluctuations in equity or fixed income markets, higher than expected credit losses, changes in the market values of securities in our investment portfolio, and other factors described in disclosure documents we file publicly from time to time.

Our comments contain forward-looking statements relating to the proposed merger of Wilmington Trust Corporation and M&T Bank Corporation, including the expected date of closing and potential benefits of the merger. The actual results of the merger could vary materially as a result of a number of factors, including the possibility that competing offers will be made and the possibility that various closing conditions for the transaction may not be satisfied or waived.

In conjunction with the proposed merger, M&T will file with the U.S. Securities and Exchange Commission a registration statement on Form S-4 that will include a Wilmington Trust proxy statement that also constitutes a prospectus of M&T. Wilmington Trust will mail the proxy statement prospectus to its stockholders. Investors and security holders are urged to read the proxy statement prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC as well as any amendments and supplements to those documents because they will contain important information.

You may attain a free copy of the proxy statement prospectus when it's available and other documents related to this transaction filed with the SEC by Wilmington Trust and M&T at the SEC's website at www.sec.gov. The proxy statement, when it's available, and the other documents, also may be attained free of charge on Wilmington Trust's website at wilmingtontrust.com under the tab "Investor Relations" and then under the heading "SEC Filings" or at M&T's website at mtb.com, under the tab "About Us", and then under the heading "Investor Relations", and then under the heading "SEC Filings."

With that I will turn it over to Mr. Foley.

Don Foley

Good morning everyone and thank you for joining us today. I realize our news this morning, both in terms of our third quarter earnings and the definitive agreement with M&T, is not what you were expecting.

This is a difficult moment in our company's history. From a purely personal perspective, the challenges facing us during my first few months on the job here have often been far more difficult than I ever imagined they would be. Especially difficult and painful is the decision we're announcing today.

I certainly recognize that this action touches many, many lives. All I can say is that we've worked hard to evaluate all the facts and circumstances and meet our obligations to our shareholders as well as our clients, colleagues, and community. I know there hasn't been much time to digest all the details of this transactions, so Bob, Rene, Dave, and I will do our best to walk you through it.

Before I get to that, however, I want to speak to our third quarter performance, and provide some context for what led up to today's events. Our loss for the third quarter was $370 million, that's $4.06 per share.

This loss was primarily the result of two factors. First, we continue to see credit deterioration in our loan portfolio, reflecting the extent of our exposure to real estate construction lending and its concentration in Delaware.

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