Wilmington Trust Offers Itself To M&T Bank At Half-Price

Wilmington Trust headquarters with the I. M. P...

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This venerable Delaware bank started by the du Pont family has fallen on hard times.  After sustaining some large losses over the last several quarters, the bank started looking for a buyer.  M&T Bank has acquired Wilmington Trust and will inherit a strong presence in Delaware.

Wilmington Trust is a casualty of the recession – low investment earnings and the housing market grinding to a halt have affected the bank’s ability to make enough revenue.

At present, no member of the du Pont family sits on the bank’s board, although some family members are depositors.  One of Wilmington Trust’s specialties is wealth management.  They have a number of clients with a $10,000,000+ in liquid assets for a total of $58.4 billion.

Sadly, this is another more or less “local” bank that’s being gobbled up by a super-regional player.  M&T Bank has bought up smaller banks and expanded their presence.  Delaware will expand M&T’s market to ten states, primarily along the East Cost.  M&T Bank, based in Buffalo,NY, has reported profits for 34 years in a row.

Wilmington Trust Sold To M&T Bank

Wilmington Trust headquarters with the I. M. P...

Image via Wikipedia

Yet another local bank is being gobbled up by a larger one.  Wilmington Trust has been purchased, at a very discounted rate, by M&T Bank after being bailed out in 2008 by the federal government.

Wilmington Trust made a profit every year from 1903 to 2008 when they lost their proverbial shirt on construction loans.

For those of you who like trivia, M&T Bank and First Niagara Bank are both Buffalo, NY based banks and have recently purchased Philadelphia area banks.

Once the sale goes through next summer, Wilmington Trust branches will be renamed and M&T Bank will become Delaware’s largest bank (deposits).