M&T Bank Corporation Has A Difficult Second Quarter As Earnings Per Share Drop 22%

Thanks to continued levels of high expenses, M&T Bank had a difficult second quarter as its earnings per share fell by 22%.

Jul 17, 2014 at 2:50PM

Thanks to heightened expenses, M&T Bank (NYSE:MTB) announced today its earnings per share dropped to $1.98 in the second quarter of 2014, down from $2.55 seen in the second quarter last year. Its total net income stood at $284 million in the most recent quarter, relative to $348 million in the 2013 second quarter.

M&T Bank did note it recognized a gain of $0.38 per share from a variety of one-time items in the period last year, and excluding for those its earnings per share fell by 9%.

The biggest reason for the decrease in its earnings resulted from its expenses increasing 14%, or $82 million, to stand at $681 million. It saw a 5% gain in its salaries and employee benefits, but the biggest increase in expenses at M&T Bank came from its other costs of operations rising by nearly $70 million, or 41%.

The bank noted this was the result of increased costs for professional services related to its efforts to surrounding the Federal Reserve citing it had internal problems surrounding its upholding of the Bank Secrecy Act (BSA) and other regulations related to Anti-Money Laundering (AML).

M&T Bank did see gains from its core operations, thanks to its provision for credit losses -- what it expects to lose on the loans it has written -- falling by $27 million, or 47%, its net interest income rose by 3% to $639 million. In addition, excluding the $56.5 million gain seen from investment securities recognized in the second quarter of last year, its non-interest income rose by 1% to $546 million.

"Results for the second quarter reflected an improvement in revenue from the first quarter in the areas of mortgage banking, trust and deposit services," noted Vice Chairman and CFO, René Jones, in the announcement. "M&T's credit quality measures were strong during the quarter. While operating expense levels continue to be elevated, significant progress has been made on several key initiatives related to BSA/AML activities, Compliance, Risk Management and Capital Planning."

The bank did note it saw improvements relative to the first quarter of this year, however that often is not the best comparison to gauge results.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers