Apr. 22--Several banks operating locally have reported that profits dropped in their most recent earnings statements, including the parent companies of M&T Bank, PeoplesBank and Fulton Bank.

Banks said they are putting more money away for possible losses in their loan businesses.

M&T Bank, which is among the biggest York County banking operations, said it made about $64 million in the first three months of 2009. It reported income of about $202 million in the first quarter of 2008.

The company said it took an impairment charge of $32 million in connection with some investment securities in the first three months of this year and made a $158 million provision for credit losses.

Actual net charge-off of loans was about $58 million, M&T said.

M&T received about $600 million from the government's Troubled Asset Relief Program's Capital Purchase Program, which aimed to give healthy banks money to keep lending.

PeoplesBank said its net income fell from about $1.52 million to about $740,000.

The bank, based in York County, said the numbers fell because of decreased interest incomes, and increases in operating expenses and the bank's loan-loss provision. The provision protects against losses from loan defaults.

The company also said it has cut its dividend paid to shareholders from 12 cents to 8 cents per share. PeoplesBank received about $16.5 million in TARP money.

Fulton Bank parent

company Fulton Financial Corp. reported late Tuesday its earnings fell 80 percent for the first three months of 2009 compared to the same time in 2008.

Fulton said the drop was partially due to putting more money aside for loan losses. Fulton also cited its dividend payments to the U.S government in connection with its TARP money.

Fulton received about $375 million in TARP money.

REPORTING TODAY Susquehanna Bank had previously warned shareholders to expect earnings that are less than were expected for the first quarter of 2009.

The report is expected today.

Susquehanna said its diluted earnings per share would be lower because of its loan-loss provisions and lower net interest margins.

Susquehanna Bank has received about $300 million in TARP money.

bburkey@ydr.com; 771-2035

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