Monday, bank holding company M&T Bank Corporation (MTB) reported a 68% decrease in second quarter net earnings hurt primarily by increased provision for credit losses and higher impairment charges. Results were also impacted by integration expenses associated with the acquisition of Provident Bankshares Corporation.
The Buffalo, New York-based company's net income for the quarter plunged to $51.2 million from $160.3 million in the corresponding period last year.
Net income available to common shareholders declined 75% to $40.52 million or $0.36 per share from $160.27 million or $1.44 per share recorded in the prior-year period.
Effective May 23, 2009, M&T completed the acquisition of Provident Bankshares Corporation. Results for the quarter included expenses associated with systems conversions and other costs of integrating operations of $40 million, or $0.35 per common share. In addition, results for the quarter also include $20 million, or $0.17 per share, associated with the special assessment levied by Federal Deposit Insurance Corporation.
Also reflected in the recent quarter's results were $25 million, pre-tax, of other-than-temporary impairment charges on certain available-for-sale investment securities, which reduced net income and earnings per share by $15 million and $0.13, respectively.
Net operating income, which exclude the impact of merger-related expenses and intangible amortization, declined 41% to $100.81 million from $170.4 million in the year-ago quarter. Net operating earnings per share slid 48% to $0.79 from $1.53 in the same period of the previous year.
On average, sixteen analysts polled by Thomson Reuters expected the company to earn $0.48 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the quarter increased 3% to $501.6 million from $486.6 million in the year-ago quarter. Net interest income after provision for credit losses declined 8% to $354.6 million from $386.6 million in the same period last year.
Provision for credit losses were 47% higher at $147 million from $100 million in the year-ago quarter. Net interest margin was 3.43% compared with 3.39% in the prior year period.
Net charge-offs of loans totaled $138 million, up from $99 million in the year-earlier quarter, largely due to the partial charge-off of a commercial loan transferred to nonaccrual status in this year's first quarter. Allowance for credit loss totaled $855 million or 1.62% of total loans compared with $774 million or 1.58% of total loans in the same period last year.
Excluding gains and losses from investment securities, noninterest income in the second quarter of 2009 increased to $296 million from $277 million in the year-earlier quarter largely due to higher residential mortgage banking revenue and lower losses at Bayview Lending Group.
Total other expenses increased to $563.7 million from $419.7 million in the same period of the previous year. In addition to expenses related to Provident acquisition, increased expenses for FDIC deposit insurance and foreclosed residential real estate properties contributed to the rise.
Total assets were $69.9 billion at June 30, 2009, up from $65.9 billion at June 30, 2008. Total deposits rose to $46.8 billion at June 30, 2009, from $41.9 billion at June 30, 2008. Loans and leases, net of unearned discount, were $52.7 billion at the recent quarter-end, compared with $49.1 billion a year earlier.
Among others in the sector, Pittsburgh, Pennsylvania-based PNC Financial Services Group Inc. (PNC) is scheduled to announce its quarterly earnings results on July 23, 2009. Fifteen analysts polled by Thomson Reuters currently estimate PNC Financial to report earnings of $0.45 for the quarter.
For the six-month period, M&T Bank's net income available to common shareholders declined to $95.11 million or $0.85 per share, from $362.46 million or $3.26 per share in the year-ago period. Net interest income, after provision of credit losses, declined to $644 million from $805.5 million in the same period last year. Total other income declined to $504 million from $583.8 million in the year-ago period.
MTB is currently up $2.08 or 3.82% and trades at $56.74. In the past 52 weeks, the stock trended in a broad range of $29.11 - $108.53 with a three-month average of 1.7 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.