Wilmington Trust chairman and CEO Cecala stepping down

Wilmington Trust CEO Ted T. Cecala steps down

WILMINGTON, Del. — Wilmington Trust Corp. says its chief executive stepped down and was replaced immediately by a member of the board.

Shares in the banking and wealth-management company sank more than 7 percent by midday Friday after the announcement on Thursday.

The company said Ted T. Cecala decided to retire after 31 years with the company. Cecala, 61, will remain chairman until July 19.

The board elected director Donald E. Foley to replace Cecala as CEO effective immediately, the company said.

Foley, a senior vice president and treasurer at defense contractor ITT Corp., resigned from that company on Thursday.

An analyst for Janney Capital Markets said Cecala’s “unexpected retirement” didn’t change his opinion that the company faces “significant credit challenges.”

Analyst Stephen M. Moss said 6.29 percent of the company’s assets were non-performing as of March 31, and 20.7 percent of loans were on a watch list or substandard, indicating potential problems.

The company raised money by selling stock this year. Moss said the company has said that repayment of $330 million it got in federal help for banks would hinge on a review of the books in the third quarter and the progress of non-performing assets.

In April, Wilmington posted a first-quarter loss of $33.8 million — much wider than expected — after it set aside more money to cover bad loans. The bank’s investment portfolio tumbled 36 percent in a year, and its wealth advisory services slipped.

Cecala joined the company in 1979 as controller and became chairman and CEO in 1996.

At ITT, Foley oversaw the company’s financing activities and pension investments. He joined Wilmington’s board in 2006.

He’ll be replaced at the White Plains, N.Y., company by CFO Denise Ramos until a permanent replacement can be found, ITT said in a regulatory filing Friday.

Wilmington shares fell $1.34, or 8.9 percent, to $13.65 in afternoon trading. ITT shares slipped $2.02, or 4.2 percent, to $45.92.