M&T Bank's (MTB) first-quarter earnings were little changed amid a year-earlier investment gain as it repositioned its balance sheet ahead of its acquisition of Wilmington Trust.
The lender, which operates in the Northeastern and mid-Atlantic states, also reported improved mortgage-banking revenue and trust income for the latest period.
M&T early last year had seen results improve along with credit quality, like most of the industry. However, during the second half of last year the Buffalo, N.Y.-based lender saw profit decline as it posted charges related to its Wilmington Trust acquisition.
M&T Bank reported profit was flat at $206 million. On a per-share basis, earnings fell to $1.50 from $1.59 amid an increase in shares outstanding. The year-earlier period included 20 cents in investment gains. Excluding amortization of core deposit and other intangible assets, merger-related gains and expenses and other items, earnings were down at $1.59 from $1.67.
Revenue increased 20% to $997.1 million. Mortgage-banking revenue grew 24% to $56.2 million. Trust income nearly quadrupled to nearly $117 million.
Analysts polled by Thomson Reuters most recently projected earnings of $1.48 on revenue of $993 million.
Credit-loss provisions fell to $49 million, from $75 million a year earlier and from $74 million in the fourth quarter. Net charge-offs, or loans the company doesn't think are collectible, eased to 0.32% of average loans from 0.58% a year earlier and from 0.5% in the fourth quarter.