M&T Bank 3rd-quarter profit rises 25 percent

M&T Bank 3rd-quarter profit increases on higher interest income, fee revenue

• On 4:30 pm EDT, Tuesday October 20, 2009

BUFFALO, N.Y. (AP) -- M&T Bank Corp. said its third-quarter profit rose 25 percent on growth in interest income and money flowing in from fees.

For the three months ended Sept. 30, the Buffalo-based regional bank reported net income available to common shareholders of nearly $113.9 million, or 97 cents per share, up from a profit of nearly $91.2 million, or 82 cents per share, in the same quarter a year ago.

Among several gains and losses, M&T recorded an after-tax gain of $18 million from its acquisition of all the deposits and certain assets of Baltimore-based Bradford Bank, which was taken over in August by the Federal Deposit Insurance Corp.

Net interest income -- the difference between how much it costs a bank to borrow money and how much it receives from lending money to customers -- rose 12 percent to nearly $547.7 million from $488.2 million.

Noninterest income from fees and charges rose 11 percent to $296 million from $266 million.

But M&T was hurt by continuing credit problems. Its provision for credit losses increased to $154 million from $101 million a year earlier, and net charge-offs totaled $141 million, up from $94 million a year ago.

Shares of M&T rose $1.05 to $67.32.

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.

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