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M&T Bank Corp., the market share leader in Rochester, reported an 18 percent drop in fourth-quarter net income on Friday because of costs related to infrastructure improvements.
The Buffalo-based bank reported income of $227.4 million, or $1.74 per diluted share, attributable to common shareholders in the fourth quarter. That compares with $276.6 million, or $2.16 a share, a year ago.
Fourth quarter net income, excluding onetime charges, was $246 million, or $1.76 a basic share, down 17 percent from $296 million, or $2.18 a share, in the fourth quarter 2012.
Analysts expected M&T to post earnings of $1.92 a share for the most recent three months.
“During the final two quarters of 2013, we invested heavily in several key areas, including risk management, capital planning and stress testing, regulatory compliance, and other operational and technology initiatives,” said Rene Jones, executive vice president and chief financial officer, in a statement. “Those investments will better position M&T for the future.”
The upgrades have been necessary because of concerns from the Federal Reserve related to M&T’s anti-money laundering procedures.
Those issues have delayed M&T’s proposed $3.7 billion cash and stock acquisition of Hudson City Bancorp Inc. The merger, announced in August 2012, has been extended twice and now has a deadline of the end of 2014.
The bank’s net income for all of 2013 was nearly $1.1 billion, or $8.38 a diluted share attributable to shareholders, up 14 percent from $953.4 million, or $7.54, in 2012.
M&T ranks first in the Rochester market with local deposits of $3.8 billion.
Shares of M&T stock (NYSE: MTB) were down nearly 3 percent in early afternoon trading at $111.34 a share.
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