M&T Bank Corporation (NYSE:MTB) saw its shares tick up 0.39% in premarket trading on Wednesday after reporting better-than-expected results for the second quarter.
The Buffalo-headquartered lender delivered adjusted earnings of $4.28 per share, topping analyst projections of $3.99. Total revenue for the quarter came in at $2.4 billion, slightly ahead of the $2.39 billion forecast. Reported net income stood at $716 million, or $4.24 per diluted share.
The quarterly performance was buoyed by a 12% quarter-over-quarter rise in noninterest income, which climbed to $683 million. Meanwhile, the bank benefited from a 6% reduction in noninterest expenses, largely attributed to lower personnel-related costs.
“M&T’s consistent profitability has supported a significant return of capital to shareholders while maintaining resiliency entering the second half of the year,” said Daryl N. Bible, the bank’s Chief Financial Officer.
M&T also posted a $15 million, or 1%, sequential rise in net interest income on a taxable-equivalent basis, helped by an extra day in the quarter and asset repricing tailwinds. Loan growth was modest, with a 4% increase in consumer lending and a 2% uptick in residential real estate loans. These gains were partially offset by a 4% drop in commercial real estate lending.
Credit trends showed signs of strengthening. The bank’s allowance for loan losses edged down 2 basis points to 1.61% of total loans. Net charge-offs declined to $108 million, representing 0.32% of average loans, compared to 0.34% in Q1.
Shareholder returns accelerated as M&T repurchased 6.1 million shares during the quarter at a total cost of $1.1 billion, up from 3.4 million shares worth $662 million in the previous period. However, the Common Equity Tier 1 capital ratio slipped to an estimated 10.98%, down from 11.50% as of the end of March.
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