- M&T Bank reports first-quarter earnings per share of $1.50.
- Analysts were expecting EPS of $1.48.
- Mortgage banking revenue increased 24% year-over-year, to $56.2 million.
|M&T Bank Corp. CEO Robert Wilmers|
M&T's first-quarter return on average assets was 1.06%, improving from 0.75% the previous quarter, but down from 1.23% a year earlier. The ROA was a solid number, considering that the year-earlier results reflected the $39 pretax gain on securities sales. During the most recent quarter, M&T saw negligible gain on securities sales. The first-quarter return on average common equity was 9.04%, compared to 6.12% in the fourth quarter and 10.16% during the first quarter of 2011. M&T owes $230 million in federal bailout money received through the Troubled Assets Relief Program, or TARP, in December 2008, plus an additional $151.5 million in TARP money that was originally provided to Provident Bancshares, which M&T acquired in May 2009. It remains to be seen whether or not the company will offer common shares to the public in order to raise money to repay the government. Following the completion of the Federal Reserve's annual bank holding company stress tests in March, M&T made no announcement related to its capital management plans, or plans to repay TARP. The company previously repaid $230 million in TARP money, and an additional $330 million originally provided by the government to Wilmington Trust. Jones said that M&T's key "Tier 1 common ratio increased 18 basis points from the 2011 year-end to 7.04% at the end of the first quarter." M&T's shares closed at $84.43 Friday, returning 12% year-to-date, following a 9% decline during 2011.The shares trade for 2.2 times the company's reported March 31, Tangible equity per common share of $37.79, and for 11 times the consensus 2013 EPS estimate of $7.46. The consensus 2012 EPS estimate is $6.68. Based on a quarterly payout of 70 cents, the shares have a dividend yield of 3.32%. Interested in more on M&T Bank? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.