A widening net interest margin and rising trust income boosted the bottom line for M&T Bank in Buffalo, N.Y.
The $120.9 billion-asset company's net income in the second quarter rose 13% year over year to $381 million. Earnings per share were $2.35, beating analysts’ average estimate of $2.26, according to FactSet Research Systems.
Net interest income increased 9% to $938.2 million. The net interest margin widened 32 basis points to 3.45%.
Total loans and leases increased slightly to $89.1 billion, on growth in commercial-and-industrial. commercial real estate and consumer loans. Residential real estate loans fell 15% to $21 billion.
Noninterest income increased 3% to $461 million, driven largely by increases in trust income, which increased 5% to $127 million.
At $751 million, noninterest expenses were little changed.
M&T’s results were “highlighted by a continued widening of the net interest margin,” Chief Financial Officer Darren King said in a press release Wednesday. M&T also benefited from “increased trust income and well-controlled expenses that were in line with our expectations."
