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Post Earnings Coverage as M&T Bank's Q1 Diluted NOI Rose 15% Y-o-Y; Outperformed Forecasts

Upcoming AWS Coverage on Valley National Bancorp Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 19, 2017 / Active Wall St. announces its post-earnings coverage on M&T Bank Corp. (NYSE: MTB). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 17, 2017. M&T Bank' diluted net operating income rose 15% y-o-y, outperforming market consensus forecasts. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of M&T Bank's competitors within the Regional - Northeast Banks space, Valley National Bancorp (NYSE: VLY), announced on March 30, 2017, that it will release its Q1 2017 earnings before the market opens on Wednesday, April 26, 2017. AWS will be initiating a research report on Valley National Bancorp in the coming days.

Today, AWS is promoting its earnings coverage on MTB; touching on VLY. Get our free coverage by signing up to: http://www.activewallst.com/register/

Earnings Reviewed

In Q1 FY17, M&T Bank' interest income rose 3% to $1.01 billion from $972.83 million in Q1 FY16. The Banks' interest expenses during the reported period fell 9% to $91.77 million from $100.87 million in Q1 FY16.

M&T Bank' net interest income grew 5% in Q1 FY17 to $914.26 million from $871.96 million in the prior year's comparable quarter. Meanwhile, taxable-equivalent net interest income was up by 5% during the reported quarter to $922.26 million from $878.30 million in Q1 FY16. Furthermore, the Bank's total other income also increased to $446.85 million in Q1 FY17 from $420.93 million in the year ago same quarter.

The Buffalo, New York-based bank reported a record GAAP net income available to common stockholders of $328.57 million, or $2.12 per diluted common share, in Q1 FY17 versus $275.75 million, or $1.73 per diluted common share, in Q1 FY16. The Company's net operating income for the reported quarter stood at $354.04 million, or $2.15 per diluted share, compared to $320.06 million, or $1.87 per diluted share in Q1 FY16. Meanwhile, Wall Street had expected the Company to report net operating income of $1.94 per diluted share.

Earnings Metrics

During the reported quarter, the bank's annualized return on average assets was 1.15% versus 0.97% in the prior year's comparable quarter. The annualized return on average common stockholders' equity came in at 8.89% in Q1 FY17 compared to 7.44% reported in the year ago comparable period. Furthermore, annualized returns on average tangible common stockholders' equity stood at 13.05%, which was above the 11.62% reported in the year ago same quarter. For Q1 FY17, the bank's efficiency ratio was 56.93% compared to 57.00% in Q1 FY16.

Net interest margin for the reported quarter rose to 3.34% from 3.18% in Q1 FY16. The bank's yield on average earning assets also improved during Q1 FY17 to 3.67% from 3.54% in the year ago corresponding period. In Q1 FY17, average interest earning assets surged to $112.01 billion from $111.21 billion in the previous year's same quarter.

The Company's allowance for loan and lease losses for credit losses was $1.00 billion, or 1.12% of loans outstanding, at March 31, 2017, compared to $962.75 million, or 1.10% of loans outstanding, at March 31, 2016.

Balance Sheet Analyzed

M&T Bank' noninterest-bearing deposits increased 15% to $34.28 billion as on March 31, 2017, from $29.71 billion as on March 31, 2016. Total interest bearing deposits were $62.57 billion as on March 31, 2017, compared to $64.34 billion recorded as on March 31, 2016. Furthermore, the bank had total assets worth $123.22 billion as on March 31, 2017, versus $124.63 billion as on March 31, 2016.

The Banks's non-performing assets were marginally down to $1.05 billion as on March 31, 2017, compared to $1.07 billion as at end of last year's quarter. Nonaccrual loans as a percentage of loans outstanding was 1.04% as on March 31, 2017, compared to $1.00% as on March 31, 2016. Furthermore, net charge-offs to average loans stood at 0.19% as on March 31, 2017 and as on March 31, 2016.

Share Repurchase

During Q1 FY17, the Company repurchased 3.23 million shares at an aggregate cost of $532 million.

Stock Performance

At the closing bell, on Tuesday, April 18, 2017, M&T Bank's stock fell 1.21%, ending the trading session at $151.85. A total volume of 1.26 million shares were traded at the end of the day, which was higher than the 3-month average volume of 885.59 thousand shares. In the last six months and previous twelve months, shares of the Company have soared 34.61% and 33.93%, respectively. The stock is trading at a PE ratio of 19.41 and has a dividend yield of 1.88%.

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SOURCE: Active Wall Street