M&T Bank Corp. (MTB) in Buffalo has revised its fourth-quarter and yearly earnings downward due to costs related to a lawsuit against its Wilmington Trust unit.
The company increased its litigation reserve to $40 million after reaching a settlement Monday on behalf of Wilmington Trust, which M&T acquired in 2011. The adjustment reduced M&T's fourth-quarter earnings to $221.4 million, compared to the initially reported $245.7 million. Its income for the full year of 2013 decreased by 1.7%, to $1.14 billion.
The settlement puts an end to a lawsuit brought by heirs to Mennen Co., the maker of Speed Stick deodorant. The Mennen heirs sought over $100 million in damages from Wilmington for investment losses.
The trial was set to begin Tuesday in the Delaware Chancery Court, according to M&T's Wednesday press release.
The $85.2 billion-asset M&T has faced a number of problems related to acquisitions in recent months. Its planned purchase of Hudson City Bancorp (HCBK) has been delayed as M&T works to improve compliance with anti-money laundering and Bank Secrecy Act regulations under an order from the Federal Reserve.