M&T Bank (NYSE:MTB) shares up 1.2% in Thursday’s premarket trading after Q4 earnings fell as interest income benefited from the Federal Reserve’s stimulus and continue to integrate People’s United into its work.
Q4 net EPS works of $4.57, vs. $4.44 consensus, up from $3.83 in Q3 and from $3.50 in Q4 2021.
“Dilutive operating earnings per share increased each quarter following the acquisition of People’s United, including 19% in the fourth quarter ,” said Chief Financial Officer Darren J. King. “The integration of the acquired franchise, the expansion of the interest rate and the strong growth in the balance of business position M&T (MTB) to continue its strong performance in 2023.”
Q4 annualized return on average equity of 12.59% vs. 10.43% in Q3 and 10.91% in the previous quarter.
Net interest income was $1.84B, in line with the Visible Alpha consensus, up from $1.69B in the first quarter and from $937M in the year-ago quarter. Interest rates increased to 4.06% from 3.68% in Q3 and from 2.58% in Q4 2021.
Provision for bad debt was $90M compared to $115M in Q3 and a benefit of $15M in Q4 2021.
Q4 interest was $1.41B up from $1.28B in the first quarter and from $928M a year ago. Excluding deemed non-operating expenses, Q4 non-interest expense was $1.35B, up from $1.21B in Q3 and up from $904M in Q4 2021 .
Compared to Q3, M&T Bank (MTB) increased spending on hardware and software, outsourcing data processing and software and seasonal increases in advertising and promotional spending. That was partially offset by lower payroll and employee benefits expenses, reflecting lower staffing levels after the transition to the People’s United operating system. and M&T’s with one payday in Q4.
Average loans were $129.4B in Q4 vs. $127.5B in Q3; Total deposits were $163.5B on December 31, 2022, down from $163.8B on September 30.
Mortgage income at $82M vs. $83M in Q2 and $139M in Q4 2021.
Banking services costs were $106M vs. $115M in the first quarter and $105M last year.
Trust revenue of $195M vs. $187M last quarter and $169M a year earlier.
Trading services revenue was $22M versus $21M in Q3 and $19M in Q4 202.
Other operating income increased to $267M from $153M in Q3 and from $139M in the year-ago quarter.
Meeting call at 11:00 AM ET.