M&T Bank Corp.'s fourth-quarter earnings fell 28% as the regional bank reported higher expenses related to its May acquisition of Wilmington Trust, though revenue and credit quality continued to improve.
The lender, which operates in the Northeastern and mid-Atlantic states, early last year had seen results improve along with credit quality, like most of the industry. However in the third quarter, M&T of Buffalo, N.Y., also saw profit decline as it posted charges related to its Wilmington Trust acquisition.
M&T reported a fourth-quarter profit of $147.7 million, or $1.04 a share, down from $204.4 million, or $1.59 a share, a year earlier. Excluding merger-related impacts, investment write-downs and other items, earnings were down at $1.20 from $1.52 a share. Revenue increased 18% to $1.02 billion.
Analysts polled by Thomson Reuters most recently projected earnings of $1.46 a share on revenue of $992 million.
Credit-loss provisions fell to $74 million, from $85 million a year earlier, but were up from $58 million in the third quarter. Net charge-offs, or loans the company doesn't think are collectible, eased to 0.5% of average loans from 0.6% year-over-year but were up from 0.39% sequentially.
Total deposits were $59.4 billion at Dec. 31, up 19% from $49.8 billion a year earlier.
