M&T Bank Corporation (NYSE:MTB) delivered first-quarter results that topped analyst expectations on both earnings and revenue.
The bank reported adjusted earnings per share of $4.18, exceeding the consensus estimate of $4.01. Revenue came in at $2.44 billion, slightly above the $2.43 billion forecast.
On a GAAP basis, net income totaled $664 million, or $4.13 per diluted share, representing a 14% increase from $584 million in the same quarter last year. Revenue rose 3% year over year from $2.32 billion.
Net interest margin expanded to 3.71%, compared to 3.66% in the prior-year period, as lower funding costs more than offset declines in yields on earning assets.
The company repurchased $1.25 billion of common stock during the quarter, acquiring 5.5 million shares under its capital plan. As a result, the Common Equity Tier 1 ratio declined to an estimated 10.33% from 10.84% in the prior quarter.
Average loans increased 1% sequentially to $138.4 billion, driven by a $1.5 billion rise in commercial and industrial lending, partially offset by declines in commercial real estate and consumer loans. On a year-over-year basis, average loans grew 3%.
The provision for credit losses totaled $140 million, rising from $125 million in the prior quarter but declining from $130 million in the year-ago period.
