M&T Bank 2Q profit falls 75 percent on charges

BUFFALO, N.Y. (AP) — M&T Bank Corp. said second-quarter profit fell 75 percent as it incurred several one-time expenses, including acquisition costs of Provident Bankshares Corp., a special government assessment and investment impairment charges.

The company reported net income of $40.5 million, or 36 cents per share, compared with $160.3 million, or $1.44 per share, a year earlier.

The results included $40 million, or 35 cents a share, in integration costs related to the acquisition of Provident, $20 million, or 17 cents a share, for a special Federal Deposit Insurance Corp. assessment levied against banks to rebuild the bank insurance fund, and $15 million, or 13 cents a share, in investment securities impairment charges.

Excluding the one-time costs, the company said it earned 79 cents a share compared with $1.53 a year earlier.

Analysts polled by Thomson Reuters expected 47 cents a share. They typically exclude one-time costs in their estimates.

Net interest income, or the difference between how much it costs a bank to borrow money and how much it receives from lending money to customers, was up 3 percent to $501.6 million.

The bank's provision for credit losses increased 47 percent to $147 million.

Shares rose$1.69, or 3.1 percent, to $56.13. They've traded between $29.11 and $108.53 in the past 52 weeks.

CEO Rene F. Jones called the integration of M&T and Provident a significant accomplishment.

Jones said residential mortgage banking revenue and fee income improved from the first quarter.

"Finally, credit costs for the quarter remain in line with internal expectations and we believe that they continue to remain favorable as compared with the industry," Jones said.

M&T is a holding company whose subsidiaries operate bank branches in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and Washington, D.C.

The company closed on its acquisition of Baltimore-based Provident on May 23. The deal boosts the bank's presence in Maryland and Virginia.