Wilmington Trust Corp. announced Friday that it expects to report lower-than-anticipated second-quarter results.
The Delaware company, which is set to report July 24, cited an expected 83.1% increase in its loan-loss provision, to approximately $54 million from the previous quarter; an expected pretax charge of about $23 million for other-than-temporary impairments on pooled trust-preferred securities; and an assessment by the Federal Deposit Insurance Corp. of about $5 million.
The company did not specify an earnings target. Analysts surveyed by Thomson Reuters, on average, had predicted a profit of 9 cents per share. Wilmington Trust said the results will show it remains well capitalized.
Wilmington Trust said the increase in the provision for loan losses is primarily attributable to an expected 32.1% increase in nonperforming loans to approximately $332 million from the previous quarter, an expected 69.8% increase in net chargeoffs, to approximately $36 million, and downgrades in internal credit risk ratings.