M&T Bank (MTB) in Buffalo reported flat quarterly earnings that still meet Wall Streets expectations.
The $84 billion-asset companys earnings rose less than 1% from a year earlier, to $294.5 million. Earnings per share of $2.11 were 2 higher than the estimates of analysts polled by Bloomberg.
Net interest income rose 2% from a year earlier, to $673 million; interest expense fell 15% from the third quarter of last year, to $69.6 million. The net interest margin narrowed by 16 basis points from a year earlier, to 3.61%. Net loans and leases fell 1% from Sept. 30, 2012, to $62.7 billion.
Noninterest income rose 7% from a year earlier, to $477 million, as income from trusts, brokerage services and trading accounts rose. Those gains offset a 39% year-over-year decline in mortgage banking revenue, which fell to $64.7 million.
Noninterest expenses rose 7% from the third quarter of 2012, to $658 million, as compensation, occupancy and equipment costs increased. The rise in compensation was largely because of personnel costs tied to an arrangement that added $35 billion in loans to M&Ts subservicing portfolio.
The loan-loss provision was $2 million larger than that of a year earlier, at $48 million. Net chargeoffs rose $4 million from a year earlier, to $48 million.
M&Ts planned acquisition of Hudson City Bancorp is still on hold while the company works through an anti-money laundering compliance issue. The company recorded no costs tied to the deal during the third quarter.