M&T Bank 2nd-qtr profit more than quadruples as credit losses slide, acquisition costs down

M&T Bank 2Q profit quadruples; credit losses slide

BUFFALO, N.Y. — M&T Bank Corp. on Wednesday said its second-quarter profit more than quadrupled, as it wrote off fewer bad loans and spent less on an acquisition.

For the three months ended June 30, M&T reported net income available to common shareholders of $176.1 million, or $1.46 per share, compared with $40.9 million, or 36 cents per share, it posted in the 2009 second quarter.

The year-ago quarter included $40 million, or 35 cents per share, in charges related to the acquisition of Provident Bankshares Corp.

Analysts surveyed by Thomson Reuters, on average, expected profit of $1.25 per share.

Net interest income, or earnings from deposits and loans, edged up 1 percent to $567.2 million, from $501.6 million a year ago.

The bank slashed its provision for credit losses, or money set aside to cover defaulting loans, by 42 percent to $85 million, from $147 million last year.

Net charge-offs, or loans written off as uncollectable, fell to $82 million, from $138 million last year.

Nonperforming assets, or loans considered past due and in danger of default, rose 7 percent to $1.28 million, from $1.2 billion last year.

Noninterest income, or money earned from fees and charges, edged up to $274 million, from $272 million in the 2009 second quarter.

M&T Bank shares closed down $1.58, at $83.50 as the broader market declined.