Home >> Daily Dose >> M&T Posts Q1 Results
Print This Post Print This Post

M&T Posts Q1 Results

M&T Bank Corporation’s Q1 results reveal year-over-year increases in total revenue, as well as an increase in mortgage revenue. The bank also reported an increase in provision for credit losses, from $49 million in Q1 2016 to $55 million in Q1 2017.

At the end of Q1 2017, the M&T bank reported a mortgage banking revenue of $85 million, a $3 million increase from Q1 2016, but a decrease from Q4 2016’s $98 million. The bank’s real estate and other foreclosed assets dropped from $188 million to $119 million year-over-year, and quarterly from $139 million.

Total nonperforming assets equaled $1.05 billion, down from Q1 2016’s $1.07 billion and Q4 2016’s $1.06 billion.

Noninterest expenses, including from mortgage banking, totaled $788 million, up year-over year from Q1 2016’s $776 million and up from $769 million in Q4 2016. Total income from noninterest departments, such as mortgage banking, totaled $447 million, an increase from Q1 2016, but a drop from Q4 2016.

“M&T’s financial performance for the first quarter was strong, led by a 26 basis point widening of the net interest margin that resulted in growth in taxable-equivalent net interest income of four percent as compared with the preceding quarter,” said Darren J. King, EVP and CFO at M&T Bank. “Expenses continued to be well-controlled, recognizing the seasonally higher costs traditionally seen in the first quarter for stock-based compensation and employee benefits, and credit quality factors remained stable.  In accordance with our capital plan, M&T repurchased $532 million of its common stock and increased the common stock dividend from $.70 to $.75 during the quarter.”

M&T reports that the adoption of new accounting guidance for share-based transactions resulted in an $18 million reduction in income tax expense for Q1 2017. Then new guidance requires that all excess tax benefits and tax deficiencies associated with share-based compensation be recognized as income tax expense or benefit in the income statement.

About Author: Seth Welborn

x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.