M&T Bank operating profit rises in Q4

M&T Bank Corp. (NYSE: MTB), Central New York’s largest bank ranked by deposit market share, recently reported that its fourth-quarter profit rose, excluding one-time expenses related to its long-delayed acquisition of Hudson City Bancorp, Inc. (NASDAQ: HCBK). Net operating income at M&T rose 20 percent to $338 million, or $2.09 a share, in the latest […]

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M&T Bank Corp. (NYSE: MTB), Central New York’s largest bank ranked by deposit market share, recently reported that its fourth-quarter profit rose, excluding one-time expenses related to its long-delayed acquisition of Hudson City Bancorp, Inc. (NASDAQ: HCBK).

Net operating income at M&T rose 20 percent to $338 million, or $2.09 a share, in the latest quarter, from $282 million, or $1.95, in the fourth quarter of 2014. That beat analysts’ expectations of $1.96 a share.

The operating results exclude the effect of the Hudson City deal, which took effect Nov. 1, and other items, the banking company said in its earnings report issued Jan. 19.

M&T made a cash payment of $2.1 billion and issued nearly 26 million common shares to complete the acquisition. Assets acquired in the transaction totaled about $34.6 billion, including $19 billion of loans and $7.9 billion of investment securities, while liabilities assumed totaled $31.5 billion, including $17.9 billion of deposits and $13.2 billion of borrowings, the banking company said. 

Merger-related expenses incurred during the fourth quarter of 2015 totaled $61 million after-tax, or 40 cents a share.

With those costs included, M&T generated net income of $271 million, or $1.65, in the latest quarter, down from $278 million, or $1.92, in the fourth quarter of 2014.

“M&T posted strong financial performance in the fourth quarter, reflecting our recent merger, growth in revenues, controlled expenses and continued solid credit quality… On November 1, we welcomed our Hudson City colleagues and valued customers into the M&T family. The full integration of Hudson City’s operations will be completed in February after the conversion of the deposit system and branch network. The merger with Hudson City brings exceptional opportunities for M&T, and we are excited to offer our broad array of products and services to both existing and new customers,” René F. Jones, vice chairman and chief financial officer at M&T Bank, said in the earnings report.

M&T had total assets of nearly $123 billion at the end of 2015, up 27 percent from almost $97 billion a year earlier. It reported total deposits of $92 billion at year-end, up 25 percent from nearly $74 billion a year prior.

M&T Bank, headquartered in Buffalo, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia. Trust-related services are provided by M&T’s Wilmington Trust-affiliated companies and by M&T Bank.  

Adam Rombel: