M&T Bank's Profit Rises Slightly on Improved Revenue

M&T Bank in Buffalo, N.Y., reported a higher quarterly profit that reflected increased fees and higher net interest income.

The $97 billion-asset company reported Thursday that its second-quarter net income rose 1.1% from a year earlier, to $263.5 million, or $1.98 a share.

The results included an after-tax gain of $23 million tied the sale of a trade processing business and a $40 million cash contribution to the company's charitable foundation. The items combined lowered net income by $1 million, or a penny.

Net interest income rose 2%, to $683 million. Total loans increased by 5.3%, to $68.1 billion. Commercial real estate loans, M&T's largest category, rose 8%, to $28.4 billion. The net interest margin narrowed by 23 basis points, to 3.17%.

Fee income rose 9%, to $497 million, boosted by the sale of the trade processing business, along with higher mortgage banking revenue and loan syndication fees.

Noninterest expenses rose 4%, to $697 million, reflecting the charitable contribution and the amortization of core deposits and other intangibles. The efficiency ratio rose slightly, to 58.23%.