Wilmington Trust Corp. posted a second-quarter loss of $19.5 million, or 29 cents a share, as a result of a $66.9 million noncash impairment charge related to its investment in Roxbury Capital Management LLC.
Excluding the charge, Wilmington Trust would have reported a profit of $32 million, or 47 cents a share, missing the average analyst estimate by 2 cents, according to Thomson Reuters.
Net interest income for the quarter declined 8.2%, to $85.2 million, and non-interest income declined 3.8%, to $93.2 million.
Wilmington Trust said the charge would be about $43.5 million, or 64 cents a share, after taxes. The company had announced the charge last month in an 8-K filing with the Securities and Exchange Commission.
The carrying value of preferred stocks in Wilmington Trust's investment securities portfolio decreased by $12.6 million. The decrease, recorded as a securities loss, reduced net income by $8 million, or 12 cents a share, and came mostly in the carrying value of securities issued by Fannie Mae and Freddie Mac, Wilmington Trust said.
"These charges were a function of extraordinarily unsettled equity markets," Ted T. Cecala, the company's chairman and chief executive, said during an earnings call Friday. "They overshadow very strong commercial and consumer loan growth, higher revenue from corporate client services and wealth advisory services, and other positive aspects of our second-quarter results and ongoing operations."
For the second quarter of last year, his company reported a profit of $48.9 million, or 70 cents a share.
Wilmington Trust said that its capital position remains strong. The impairment charges did not affect client funds or the ability to pay dividends, the Delaware company said.
It also declared a quarterly cash dividend of 34.5 cents a share payable to shareholders Aug. 15.
