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M&T Bank Corp. on Thursday reported a 21 percent drop in net income available to common shareholders, with earnings per share beating Wall Street estimates.
Buffalo-based M&T, the market share leader in the Rochester area, reported net income of $260.7 million, or $1.98 a diluted share, compared with nearly $328.6 million, or $2.55 a diluted share, in the second quarter 2013.
Minus special items, net income for the second quarter was $284.3 million, or $1.99 a basic share, compared with nearly $348.5 million, or $2.56 a basic share, a year ago.
Analysts had predicted per-share earnings of $1.90.
Shares of M&T stock (NYSE: MTB) were up less than 1 percent in Thursday afternoon trading at $122.63.
“M&T’s credit quality measures were strong during the quarter,” Vice Chairman and Chief Financial Officer Rene Jones said in a statement.
Operating expenses continue to be elevated, but significant progress has been made on initiatives related to compliance, risk management and capital planning, Jones said.
The year-ago results included after-tax gains from the sale of $34 million in investment securities and the reversal of an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust Corp. the Buffalo-based bank reported.
The two items reduced expenses after taxes by $15 million and increased diluted earnings per common share by 38 cents for the second quarter of 2013, the bank reported.
The most recent quarterly earnings were affected by a resolution of uncertain tax provisions that required M&T to reduce its accrual for income taxes and increase net income by $8 million, the bank reported. A $12 million increase in litigation reserves reduced net income by $7 million after taxes.
M&T ranks first in the Rochester market with local deposits of $3.8 billion, data from the Federal Deposit Insurance Corp. shows.
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