Partners Trust reports quarterly earnings results

Partners Trust Financial Group Inc.'s third-quarter earnings fell by half in the third quarter of this year compared to results in the same quarter of 2006.

The company released its third-quarter earnings results Wednesday, about three weeks before its $555 million acquisition by M&T Bank Corp. is expected to be finalized.

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<td>AT A GLANCE</td>

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<td>Partners Trust Financial Group Inc.'s third-quarter earnings fell by 50.8 percent in the third quarter of 2007 compared to results in the same quarter of 2006. In the third quarter:

* Net income was $3.1 million, or $0.07 per diluted share, for the third quarter of 2007, compared to $6.3 million, or $0.15 per diluted share, in the third quarter of 2006.

* Net interest income in the third quarter was $17.9 million, a decrease of $2.2 million from the third quarter of 2006.

* Total deposits were $2.21 billion as of Sept. 30, a decrease of $33.6 million from the end of 2006, due to a decrease in retail savings and money market deposits, and municipal deposits.

* Partners Trust's shares closed at $12.36 Wednesday, up 0.08 percent, or 1 cent, from Tuesday's close.</td>

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Partners Trust's net income was $3.1 million, or $0.07 per diluted share, for the third quarter of 2007, compared to $6.3 million, or $0.15 per diluted share, in the third quarter of 2006.

This year's third-quarter results were impacted by a $2.6 million recovery of loans losses offset by $2.6 million in expenses, mostly in investment banker and legal fees, related to Partners Trust merger into M&T.

Partners Trust's net interest income in the third quarter was $17.9 million, a decrease of $2.2 million from the third quarter of 2006.

Partners Trust's shares closed at $12.36 Wednesday, up 0.08 percent, or 1 cent, from Tuesday's close.

Buffalo-based M&T announced in July that it planned to acquire Partners Trust. The deal will result in 382 job cuts at Partners Trust, which will lose 219 jobs in Utica and New Hartford. That deal is expected to be finalized Nov. 9, pending regulatory approval.

M&T also reported a drop in its third-quarter earnings when it released its results last week.

M&T's third-quarter net income was $199 million, or $1.83 per diluted share, compared with $210 million, or $1.85 per diluted share, in the third quarter of 2006.

The results were related to higher credit costs, slow revenue growth and M&T's investment in Bayview Lending Group LLC, according to M&T.

The company experienced $1 billion in loan growth in the third quarter.