UPDATE: M&T Bank Posts Better-Than-Expected Q2 Profit

M&T Bank

reported a better-than-expected second-quarter profit. The bank's quarterly profit fell 18% to $284.3 million, or $1.98 per share, versus a year-ago profit of $348.5 million, $2.55 per share. Its revenue remained flat at $1.13 billion in the quarter. However, analysts were projecting earnings of $1.90 per share on revenue of $1.12 billion. Taxable-equivalent net interest income dropped to $675 million, from $684 million in the year-ago period. The provision for credit losses shrank to $30 million from $57 million. Noninterest income dropped to $456 million from $509 million in the year-ago period, while noninterest expense rose to $681 million from $599 million. At June 30, 2014, total shareholders' equity climbed 14% to $12.2 billion versus $10.7 billion in the year-ago period. Rene F. Jones, Vice Chairman and Chief Financial Officer said, "Results for the second quarter reflected an improvement in revenue from the first quarter in the areas of mortgage banking, trust and deposit services. M&T's credit quality measures were strong during the quarter.” M&T Bank shares closed at $122.26 yesterday.