M&T Bank, headquartered in Buffalo, N.Y., announced impressive earnings for the second quarter of the year, largely attributed to the retention of its deposits. The company reported a profit of $867 million, or $5.05 per share. This is a significant increase from $218 million, or $1.08 per share, during the same period last year.
After excluding one-time items, adjusted earnings stood at $5.12 per share. Analysts surveyed by FactSet had projected earnings of $4.16 per share, indicating a positive surprise for the bank.
Taxable-equivalent net interest income also witnessed growth, reaching $1.81 billion compared to $1.42 billion in the same quarter last year. In April 2022, M&T Bank successfully completed its acquisition of People’s United Financial.
The bank’s noninterest income experienced a remarkable surge of 41% compared to the previous year, totaling $803 million. This increase can be attributed, in part, to the boost in mortgage banking revenue resulting from the bulk purchase of residential mortgage loan servicing rights towards the end of the first quarter.
Despite the growth in earnings, total deposits at the end of the quarter amounted to $162.1 billion, a slight increase from the previous quarter’s figure of $159.1 billion, but a decline from $170.4 billion in the same period last year.
M&T Bank provisioned $150 million for credit losses during the quarter, significantly lower than both the $302 million recorded in the same quarter last year and the $120 million provisioned in the first quarter of 2023.