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M&T Bank in Buffalo, N.Y., has completed its acquisition of Hudson City Bancorp in Paramus, N.J., putting to rest a deal that had been announced more than three years earlier.
November 2 -
First Niagara Financial Group in Buffalo, N.Y., considered offers from four potential acquirers before deciding in late October to sell itself to KeyCorp.
December 1 -
Bank of America Corp., the second-biggest U.S. lender, said profit rose 9.4 percent on gains in fees and declines in expenses.
January 19
Costs associated with M&T Bank's successful but prolonged effort to buy Hudson City Bancorp pushed the Buffalo, N.Y., company's fourth-quarter profit lower.
Net income at the $123 billion-asset M&T fell 2.4% to $248.1 million, compared with a year earlier. Yet its adjusted earnings per share (which exclude the merger costs) were $2.05, ahead of a consensus analyst estimate of $1.97, according to Bloomberg.
M&T finally
Fourth-quarter noninterest expense at M&T rose 18% from a year earlier, to $786.1 million. It made a $21 million provision for credit losses on loans acquired from Hudson City that had a fair value in excess of their outstanding principal. Expenses also rose because of increases in salaries, and costs for equipment, supplies and deposit-insurance assessments.
Excluding costs tied to the Hudson City deal, M&T said its noninterest expense rose 6.4% to $701 million. Still, its efficiency ratio improved 231 basis points to 55.53%.
Net interest income after a provision for credit losses rose 15% to $749 million. The provision rose 76% to $58 million. The net interest margin widened 2 basis points to 3.12%.
Net loans and leases rose 32% to $86.5 billion, in part because of the addition of Hudson City. The largest increase among loan categories was in residential mortgage loans, which more than tripled to $26.3 billion.
Fee income fell 1% to $448.1 million, on lower trust income and residential mortgage banking fees associated with loan servicing.
