Financial services firm M&T Bank Corp. (MTB: Quote) reported Tuesday a profit for the second quarter that declined 28 percent from last year, which was boosted by merger-related gains. However, both adjusted earnings per share and quarterly revenues topped analysts' expectations.
"During the second quarter we saw significant growth in our revenues in the areas of net interest income, mortgage banking and trust services. Our credit experience, specifically net charge-offs as a percentage of loans, continued to favorably outpace the rest of the banking industry and the level of our nonaccrual loans declined $97 million or 9% from March 31," CFO Rene Jones said in a statement.
Buffalo, New-York based M&T Bank reported net income of $214.72 million or $1.71 per share for the second quarter, lower than $297.18 million or $2.42 per share in the prior-year quarter.
The results for the latest quarter primarily include $0.08 per share of amortization, while the year-ago quarter primarily included $0.52 per share of merger-related gain and $0.19 per share of merger-related expenses.
Excluding items, net operating earnings per share for the quarter declined to $247 million or $1.82 per share from $289 million or $2.16 per share in the year-ago quarter.
On average, 24 analysts polled by Thomson Reuters expected earnings of $1.68 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter decreased to $1.04 billion from $1.09 billion in the same quarter last year, but topped seventeen Wall Street analysts' consensus estimate of $1.02 billion.
Net interest income rose 11 percent to $648 million from the year-ago quarter, reflecting $7.1 billion increase in average earning assets. Meanwhile, non-interest income declined 22 percent to $392 million from $502 million last year.
Net interest margin for the quarter was 3.74 percent, down from 3.75 percent in the prior-year quarter.
Provision for credit losses decreased 5 percent to $60 million $63 million last year. Net charge-offs of loans were $52 million or 0.34 percent, compared to $59 million or 0.43 percent in the year-ago quarter.
Noninterest expense for the quarter totaled $627 million, up from $577 million in the prior-year quarter.
In Tuesday's regular trading session, MTB is currently trading at $84.40, up $0.85 or 1.02% on a volume of 0.13 million shares.
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by RTT Staff Writer
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