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M&T, in Buffalo, N.Y., is still comfortable with its decision to acquire the mortgage lender even though a recent rise in mortgage rates could crimp Hudson City's profits.
July 17 -
M&T Bank is expected to complete its purchase of Hudson City Bancorp despite unexpected regulatory issues. But an analyst had fun speculating about who might step in as the buyer if that deal collapsed.
August 23
M&T Bank (MTB) in Buffalo reported flat quarterly earnings that still meet Wall Streets expectations.
The $84 billion-asset companys earnings rose less than 1% from a year earlier, to $294.5 million. Earnings per share of $2.11 were 2 higher than the estimates of analysts polled by Bloomberg.
Net interest income rose 2% from a year earlier, to $673 million; interest expense fell 15% from the third quarter of last year, to $69.6 million. The net interest margin narrowed by 16 basis points from a year earlier, to 3.61%. Net loans and leases fell 1% from Sept. 30, 2012, to $62.7 billion.
Noninterest income rose 7% from a year earlier, to $477 million, as income from trusts, brokerage services and trading accounts rose. Those gains offset a 39% year-over-year decline in mortgage banking revenue, which fell to $64.7 million.
Noninterest expenses rose 7% from the third quarter of 2012, to $658 million, as compensation, occupancy and equipment costs increased. The rise in compensation was largely because of personnel costs tied to an arrangement that added $35 billion in loans to M&Ts subservicing portfolio.
The loan-loss provision was $2 million larger than that of a year earlier, at $48 million. Net chargeoffs rose $4 million from a year earlier, to $48 million.
M&Ts planned acquisition of Hudson City Bancorp is
