M&T Bank Corp. (NYSE: MTB) earned $233 million in the second quarter, down 28 percent from the same period in 2011. Last year’s second-quarter results included $67 million in gains from investment sales as M&T repositioned its balance sheet after its May 2011 acquisition of Wilmington Trust Corp. The second quarter of 2011 also included […]
M&T Bank Corp. (NYSE: MTB) earned $233 million in the second quarter, down 28 percent from the same period in 2011.
Last year’s second-quarter results included $67 million in gains from investment sales as M&T repositioned its balance sheet after its May 2011 acquisition of Wilmington Trust Corp. The second quarter of 2011 also included another $42 million gain related to the acquisition.
Earnings per share for 2012’s second quarter totaled $1.71, down from $2.42 a year earlier.
The bank expects no further expenses related to the Wilmington deal, M&T CFO Rene Jones said during a July 17 conference call on the company’s second-quarter results. In fact, M&T is expecting savings as a result of the merger in the second half of 2012.
The $351 million deal brought 55 new branches and $10.7 billion in new assets. Wilmington also offered strong corporate trust and wealth-advisory businesses, according to M&T.
Buffalo–based M&T is the leading bank in the Syracuse–area deposit market with 30 branch offices, more than $2.2 billion in deposits, and a market share of more than 21.2 percent. It is number two in the Utica–Rome market with 13 branches, more than
$615 million in deposits, and a market share of about 16.8 percent.
M&T also leads the Binghamton–area market with a deposit market share of 48.7 percent, 16 branches, and more than
$1.2 billion in deposits, according to the latest statistics from the Federal Deposit Insurance Corp.
The bank has $80.8 billion in total assets and more than 780 branches in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, and Washington, D.C.
Net interest income for the second quarter totaled $655 million at M&T, up 10 percent from the same period in 2011. Noninterest income was $392 million, down from $502 million a year earlier.
Noninterest income in the second quarter last year included $84 million in gains from investment securities, compared with a loss of $17 million this year, according to M&T.
Noninterest expenses for the period totaled $627 million, compared with $577 million in the second quarter of 2011.
Loans and leases rose 7 percent from a year earlier to $62.9 billion as of June 30. The bank saw increases in commercial and industrial loans, commercial real-estate loans, and residential real-estate loans, Jones said.
Consumer loans dipped in the face of fewer auto loans, home equity loans, and lines of credit, he added.
M&T continued to benefit from some customer upheaval in the wake of First Niagara Bank’s acquisition in May of 195 HSBC locations in upstate New York, Westchester County, and Connecticut, Jones said. Loans in M&T’s Western New York region rose 8 percent on an annualized basis from the first quarter, he said.
Deposits in the region increased by an annualized rate of 15 percent from the previous quarter, he added.
Total deposits at M&T increased 6 percent from a year earlier to $62.5 billion as of June 30.
M&T’s loan-loss provision was $60 million in the second quarter, down from $63 million a year earlier. Net charge-offs for the period totaled $52 million, down from $59 million in the second quarter of 2011.
Nonaccruing loans totaled $968 million as of June 30, down from $1.12 billion a year earlier.