(RTTNews) - Wednesday, Susquehanna Bancshares, Inc. (SUSQ: News ) reported a sharp decline in profit for the third quarter compared with last year mainly due to significantly higher provision for loan losses.

Susquehanna's net income available to common shareholders for the quarter declined to $2.65 million or $0.03 per share from $6.36 million or $0.07 per share in the year-ago period.

On average, 11 analysts polled by Thomson-Reuters expected the company to report a loss of $0.04 per share. Analysts' estimates typically exclude one-time items.

Net interest income for the quarter increased to $104.80 million from $101.26 million in the same quarter last year. Net interest margin increased 4 basis points to 3.64% from 3.60% in the year-ago period. Provision for loan and lease losses increased to $48 million from $17.70 million year-ago.

Total noninterest income rose to $40.71 million from $17.92 million, while noninterest expense declined to $91.53 million from $95.79 million in the same quarter last year.
For the nine months, net loss available to common shareholders was $7.42 million or $0.09 per share compared with net profit of $63.58 million or $0.74 per share last year. Net interest income increased to $300.2 million from $298.5 million, while total noninterest income rose to $117.7 million from $105.5 million from last year.

The company declared a $0.01 per common share quarterly dividend, a reduction from the third quarter dividend of $0.05 per share, payable on November 23, 2009 to shareholders of record as of November 9.

SUSQ closed Wednesday's trading at $5.84, up $0.30 or 5.42% on a volume of 1.68 million shares on the Nasdaq.

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by RTT Staff Writer

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