DOW JONES NEWSWIRES
M&T Bank Corp.'s (MTB) second-quarter profit plunged 75%,
reflecting charges from its acquisition of Provident Bankshares and
special payment toward the Federal Deposit Insurance Corp.'s
deposit-insurance fund.
But Chief Financial Officer Rene F. Jones noted that core
deposits continued to grow - rising 12% overall - and credit costs
remained in line with the bank's expectations and "continue to
remain favorable" compared with the industry. M&T's
conservative underwriting standards historically insulated it from
credit-market woes.
M&T, which received $600 million from the Treasury
Department's Troubled Asset Relief Program last year, posted a
profit of $40.5 million, or 36 cents a share, down from $160.3
million, or $1.44 a share, a year earlier. Excluding items such as
the Provident charges and FDIC payment, earnings fell to 79 cents a
share from $1.53 a share.
Analysts polled by Thomson Reuters expected 47 cents.
The provision for credit losses rose 47% to $147 million but
fell from the first quarter's $158 million. Net charge-offs, loans
the company doesn't think are collectible, rose to 1.09% of total
loans from 0.81% a year ago and 0.83% in the prior quarter.
Nonperforming loans - those near default - rose to 2.11% from 1.16%
and 2.05%, respectively.
M&T shares closed Friday at $54.44 and were inactive
premarket. The stock is down 21% the past year.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com