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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.
February 12 -
In his annual shareholder address, the longtime CEO explained how M&T is working to fix its BSA compliance issues, took a swipe at megabanks and sang the praises of the bank's hometown.
March 10 -
M&T had delayed plans to buy Hudson City Bancorp because of the Federal Reserve's compliance concerns, and an order made public Tuesday details what the Buffalo, N.Y., company has to fix.
June 18 -
M&T Bank's (MTB) long-delayed purchase of Hudson City Bancorp (HCBK) could be held up until the end of 2014.
December 17
M&T Bank (MTB) in Buffalo reported lower earnings in the first quarter as customer activity dwindled in the first two months of 2014 and costs associated with regulatory requirements grew.
M&T earned $229 million in the first quarter, down 16% from the same period a year ago. Earnings per share of $1.61 matched the estimates of analysts polled by Bloomberg.
The company's noninterest income fell 3% from the first quarter of 2013, to $420 million, primarily due to a 14% drop in mortgage revenue and a 6% decline in service charges on deposit accounts. A March rebound in customer activity helped soften these declines, M&T Vice Chairman and Chief Financial Officer Rene Jones said in a Monday press release.
M&T's net interest income was nearly unchanged from the same period a year ago, at $656.4 million. The company reported a $3.5 billion increase in earnings from average investment securities. This increase was offset by a decrease in M&T's net interest margin, which narrowed by 19 basis points, to 3.52%.
Noninterest expenses grew by 10%, to $702 million. The rising costs were driven by professional salaries and services associated with capital planning and stress testing, risk management and compliance with anti-money laundering and Bank Secrecy Act rules.
"While these initiatives contributed to operating expenses that were higher than M&T's normal run rate, they position us well for the future," Jones said in the release.
The Federal Reserve Board has ordered M&T to
Improved asset quality allowed M&T to chop its loan-loss provision by 16%, to $32 million. Net chargeoffs also fell to $32 million, a 14% decrease from the same period a year ago.
M&T's shares were nearly 2% in early trading Wednesday, to $120.47.
