CORRECTED - UPDATE 1-M&T Bank profit falls 54 percent on credit losses
(Corrects net income figures for both years in 3rd paragraph)
* Earnings fell 54 percent, hurt by credit losses
* M&T increased loan loss provisions
NEW YORK, Oct 21 (Reuters) - M&T Bank Corp (MTB.N), a large U.S. mid-Atlantic regional bank, said on Tuesday that third-quarter profit fell 54 percent, hurt by mounting credit losses from residential real estate.
The Buffalo, New York-based lender increased to $781 million the amount it set aside to cover bad debt, while loans it doesn't expect to be paid back rose to $710 million. M&T's largest investors include Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N).
Net income fell to $91.2 million, or 82 cents per diluted share, from $199.2 million, or $1.83 per share, a year earlier.
M&T -- with more than 700 branches in seven mid-Atlantic states and the District of Columbia -- said operating earnings fell 52 percent to $100.8 million, or 91 cents per share.
The bank set aside $101 million for credit losses, up from $34 million a year earlier, while net charge-offs increased to $94 million from $22 million.
Shares of M&T closed Monday at $81.08 on the New York Stock Exchange. They have fallen 1 percent this year, compared with a 35 percent drop in the KBW Bank Index .BKX. (Reporting by Jonathan Stempel and Juan Lagorio; Editing by Lisa Von Ahn)
