M&T Bank 2Q Net Dives 75% Amid Acquisition, Other Charges

   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; [e-mail]