M&T Bank's second-quarter profit improved thanks to a lower loan-loss provision and other factors.
Year-over-year comparisons of the $124 billion-asset Buffalo, N.Y., company's results were distorted by its Oct. 31 acquisition of Hudson City Bancorp in Paramus, N.J. Net income rose 14% from the first quarter to $313 million.
Net interest income after the loan-loss provision rose 1% from the first quarter to $832 million. The provision fell 35% to $32 million. Net loans and leases rose 0.7% to $88.5 billion as an increase in commercial real estate lending was offset by a decline in residential mortgages. CRE rose 3.4% to $30.7 billion.
The net interest margin narrowed by 5 basis points to 3.13%.
Noninterest income rose 6% to $448 million on higher trust income and trading account and foreign exchange gains.
Noninterest expense rose 13% to $336 million. M&T recorded $12.6 million in merger-related expenses. Its efficiency ratio improved by 194 basis points to 55.06%.