M&T Bank Corporation said its first quarter profits rose by 37%, helped by the purchase of Allfirst Financial in April 2003. M&T's $3 billion purchase of Allfirst from AIB made it one of the 20 largest US banks.
The Buffalo-based bank said its net income, excluding merger and other costs, rose to $159.5m or $1.30 per share from $116.5m or $1.23 per share the same time a year ago.
M&T's Chief Financial Officer Michael Pinto said the first quarter reflected mixed results for the bank. He said the drop in residential mortgage banking and a $&m charge related to mortgage servicing rights partially offset the 'resumption of growth in our commercial loan portfolios and the improvement of our overall credit quality'.
He said that M&T expects 2004 profits to be in line with its prior forecast of $5.90-6.10 per share.
M&T said its net interest margin fell to 3.92% from 3.96% in the fourth quarter. Lending income rose 33% from a year earlier to $419.3m. The company said it had set aside £20m for bad loans, down 39%.
M&T's shares were added to the Standard & Poor's 500 stock index in the three month period.
