M&T Bank Second Quarter Results Top Estimates

(RTTNews) - Financial services firm M&T Bank Corp. (MTB) reported Thursday a profit for the second quarter that declined 21 percent from last year, reflecting lower revenues and higher expenses.. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"Results for the second quarter reflected an improvement in revenue from the first quarter in the areas of mortgage banking, trust and deposit services. M&T's credit quality measures were strong during the quarter," CFO Rene Jones said in a statement.

Buffalo, New-York based regional bank reported net income of $260.70 million or $1.98 per share for the second quarter, lower than $328.56 million or $2.55 per share in the prior-year quarter.

Excluding items, net operating earnings per share for the quarter was $289.97 million or $2.02 per share, compared to $360.73 million or $2.65 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $1.90 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter decreased to $1.13 billion from $1.19 billion in the same quarter last year, but topped sixteen Wall Street analysts' consensus estimate of $1.12 billion by a whisker.

M&T Bank's mortgage banking revenues for the quarter grew 5 percent from the prior-year quarter to $95.66 million.

Taxable-equivalent net interest income edged down 1 percent to $674.96 million from $683.80 million in the year-ago quarter, and non-interest income declined to $456.41 million from $508.69 million last year.

Net interest margin for the quarter, a key measure of lending profitability, narrowed to 3.40 percent from 3.71 percent in the prior-year quarter.

Provision for credit losses plunged 47 percent to $30 million $57 million last year. Net charge-offs of loans were $29 million or 0.18 percent, compared to $57 million or 0.35 percent in the year-ago quarter.

Noninterest expense for the quarter totaled $681 million, up from $599 million in the prior-year quarter.

In Thursday's regular trading session, MTB is currently trading at $122.26, down $0.91 or 0.74% on a volume of 0.83 million shares.