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Wilmington Trust cites $19.5M Q2 loss

Wilmington Trust Corp., citing problems at an affiliated company, Roxbury Capital Management, and other problems, said it lost $19.5 million, or $0.29 per share, during the second quarter.

A previously disclosed charge of $66.9 million from the decline in the value of Roxbury reduced net income by $43.5 million, or $0.64 per share (on a diluted basis), the company said.

Also the carrying value of the firm's investment portfolio went down $12.6 million, mostly due to declines in the carrying value of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) securities.

Wilmington Trust said its regional banking business added $483.0 million of loans during the 2008 second quarter - the largest three-month increase in the company's history. Loan balances topped $9 billion for the first time, the holding company said.

The company also said that retirement services revenue more than doubled from prior periods because of the acquisition of AST Capital Trust Co., with the second quarter reflecting two months of revenue from this acquisition, which closed April 30.

"These charges were a function of extraordinarily unsettled equity markets," Ted T. Cecala, Wilmington Trust chairman and chief executive officer, said in a statement. "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."

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