M&T Bank in Buffalo, N.Y., reported a higher third-quarter profit as improved net interest income offset declines in trust services, deposit-account fees and mortgage banking.
Net income at the $98 billion-asset company rose 2%, to $257.3 million, from a year earlier. Diluted earnings per share increased 1%, to $1.93, but came in 7 cents short of estimates of analysts polled by Bloomberg.
M&T’s shares were down 1.3%, to $115.52, in early trading Monday.
Net interest income rose 4%, to $692.8 million, as total loans and leases rose 5%, to $68.5 billion. The company reported growth in all loan categories except residential mortgages. Its net interest margin shrank 9 basis points year over year, to 3.14%.
Noninterest income fell 3%, to $439.7 million, as a result of declines in trust income, deposit service charges and income from mortgage banking.
Its noninterest expense fell 2%, to $653.8 million, while its efficiency ratio declined from 58.23% to 57.05% from the same quarter last year.