Residential mortgage banking revenue contributed to M&T Bank’s $68 million year-to-year increase in overall net income to $274 million in the first quarter, but executives noted that margins in that business are
Officials at the company, which also is continuing to grapple with a merger-delaying regulatory issue involving anti-money laundering compliance, said in a conference call Monday that competition is putting the pressure on margins.
EVP/CFO Rene Jones said the pressure is particularly notable when it comes to borrowers with good credit.
M&T’s mortgage banking revenue in the first quarter was up $37 million from a year ago during the first quarter.
Overall the company’s noninterest income, which includes mortgage banking revenue, totaled $433 million in the first quarter. This was up from the same quarter a year ago, when noninterest income at the company was $377 million, but it was down from $453 million during the fourth quarter of 2012.
“The higher noninterest income in the final 2012 quarter reflected mortgage banking revenue that was $23 million higher than in the first quarter of 2013,” according to the company’s earnings release.
