M&T Bank profit climbs 25 percent in Q4

BUFFALO, N.Y. — M&T Bank Corp. (NYSE: MTB) earned $278 million in the fourth quarter, up 25 percent from $221 million in the year-ago period as revenue increased and expenses stabilized.

Earnings per share in the fourth quarter totaled $1.92, up from $1.56 in the year-earlier quarter, Buffalo–based M&T Bank said in its earnings news release issued Tuesday.

For the full year, the banking company earned $1.07 billion, down from $1.14 billion earned in 2013. M&T’s earnings per common share totaled $7.42 in 2014, down from $8.20 in the previous year.

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The 2013 results reflected after-tax gains from investment securities and loan-securitization transactions of $67 million ($110 million pre-tax) or 51 cents of diluted earnings per common share. 

The results during 2014’s final quarter were “solid,” René Jones, vice chairman and CFO of M&T Bank, contended in the earnings news release.

“We had improved revenues, healthy loan growth, stable expense levels and excellent credit experience. Overall, 2014 represented a year of considerable investment in our infrastructure. Significant progress was made on our BSA/AML, compliance, risk management and technology initiatives that will position us well moving forward. In a year of substantial resource commitment, we further strengthened our already formidable balance sheet by raising our capital and liquidity levels,” said Jones.

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BSA / AML is short for Bank Secrecy Act / Anti-Money Laundering, a compliance program with a manual providing guidance on identifying and controlling risks associated with money laundering and terrorist financing, according to the online manual.

M&T had total assets of $96.7 billion as of Dec. 31, up 14 percent from $85.2 billion a year earlier.

Loans and leases, net of unearned discount, rose 4 percent to $66.7 billion at the end of 2014, up from $64.1 billion at the end of 2013.

Total deposits were $73.6 billion as of Dec. 31, up $6.5 billion, or 10 percent, from $67.1 billion at the end of 2013.

M&T Bank ranks first in deposit market share in the Syracuse metro area, with $2.7 billion in deposits and a 24.1 percent market share, according to June 30, 2014 statistics from the FDIC, the latest data available. It has 30 branch offices in the area.

M&T also ranks first in deposit market share in the full 16-county Central New York area with $5.1 billion in deposits and a 19.6 percent market share, operating from 67 branch offices, according to the latest FDIC data.

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M&T is a financial holding company headquartered in Buffalo. M&T’s principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, and the District of Columbia.

Eric Reinhardt: