The man who'll be leading Wilmington Trust once the merger with Buffalo, NY-based M&T Bank is finalized faced a tough room as keynote speaker at the New Castle County Chamber of Commerce Annual Dinner Monday night.
Last November, M&T Chairman and CEO Robert Wilmers oversaw that bank’s $351 million purchase of Wilmington Trust, Delaware's largest bank – a move that will cost 721 Delawareans their jobs.
Wilmers addressed the elephant in the room right away.
“Let's face it-there isn't anyone in this room tonight, or in the state of Delaware for that matter, who's happy about the reasons we're here,” Wilmers said as he opened his speech to chamber members at the Double Tree in downtown Wilmington.
Wilmers brought some good news with him. He says M&T will be adding 40 jobs at its small operations center in Millsboro. That site already employs most of approximately 450 Delawareans who currently work for the bank. Wilmers has also told Governor Jack Markell (D) that M&T will be building a back-up data center in Delaware. According to Wilmers, M&T will be investing from $7 million to $10 million in that project, but no location has been selected.
[audio:http://www.wdde.org/wp-content/uploads/2011/03/MT-Bank-CEO-Robert-Wilmers-at-NCCo-Chamber-dinner-.mp3|titles=M&T Bank CEO Robert Wilmers at NCCo Chamber dinner]
Wilmers says he's not underestimating the impact that the difficult decisions made by M&T will have on the families of the Wilmington Trust employees who will be losing their jobs as a result of the merger. He adds that the company is working hard to help those workers transition to other jobs, suggesting some of those opportunities may be elsewhere in the M&T Bank system.
“I take no pleasure in saying this...,” Wilmers said, “but, the (Wilmington Trust's) credit and capital problems were overwhelming.” He says Wilmington Trust's construction loans more than doubled between 2004 and 2007, and when the real estate bubble burst, the bank's ability to do business while carrying a heavy construction loan portfolio were severely restricted.
Chamber President Mark Kleinschmidt says that while the loss of jobs is difficult on the community, the upside of the merger is that M&T is an institution known for making smart moves, turning around its failing acquisitions and being a strong community bank.
“I’ve had the opportunity to talk to my counterparts in Buffalo and Baltimore and they have nothing but good things to say about M&T,” said Kleinschmidt. “I think that bodes well for the continuation of Wilmington Trust’s legacy and the operations here in Delaware.”
County Executive Paul Clark (D) agrees the loss of 721 lost jobs is a tough pill to swallow, but feels it could have been worse.
“We all have to starting looking at the glass as half-full. Wilmington Trust could be gone. M&T came in. They’re merging with Wilmington Trust. Most of the jobs are staying,” said Clark. “I believe it’s a company that has good solid footing financially and I think you’ll see those jobs back and more in the long run with M&T.”
Wilmers says the quality of the Wilmington Trust workforce being absorbed by M&T inspires optimism because it closely resembles that already in place at M&T.
He closed his speech saying, “M&T is committed to the success of this merger, and we're committed to the success of the this community.”
It is expected that the deal between M&T Bank and Wilmington Trust will close by midyear this year.