M&T Bank Shrugs Off Credit Woes
M&T Bank (MTB) rose modestly Thursday after posting a better-than-expected second quarter.
While M&T's quarterly profit of $214 million was flat compared to a year earlier, earnings of $1.95 a share beat analysts' expectations of $1.85. Revenue, excluding a provision for credit losses, rose 5% to $745 million, beating analysts' estimates of $717 million.
"In contrast to the first quarter, M&T experienced a 3-basis-point improvement in our net interest margin and growth in several noninterest income categories, including mortgage banking revenues that were consistent with our historical performance. In addition to revenue growth, operating expenses continued to be well controlled," said M&T's CFO Rene F. Jones.
The company said its net interest margin -- the profit it makes on taking deposits and lending them out again -- rose 1 basis point from a year earlier and 3 basis points from the first quarter to 3.67%.In the first three months of the year, M&T earnings were hit hard by the troubled mortgage market, particularly in the so-called Alt-A mortgage business -- mortgages made to consumers with imperfect credit histories or without full documentation. The company lowered earnings guidance for the first quarter after it reduced the value of its Alt-A portfolio and said the demand for repurchase activity for previously sold Alt-A mortgages was increasing.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV