First quarter revenue at M&T Bank of $2.41bn compares with $1.45bn in the year ago quarter. Net interest income of $1.83bn rises by 102% y-o-y boosted by the bank’s acquisition of People’s United Bank and rise in the net interest margin. Specifically, the first quarter net interest margin is ahead by 139 basis points from 2.65% to 4.04%.

On the other hand, Q123 provisions for credit losses of $120m is up from $10m million in the year-earlier quarter.

Higher provisions reflect the impact of weaker forecasted economic conditions on several loan categories. A rise in outstanding loan balances on which to estimate credit losses also impacts first quarter provisions.

M&T Q123 highlights include deposits +26% y-o-y, cost income ratio improvement

Total deposits rise by 26% y-o-y to $159.1bn. But compared with the prior quarter, deposits fall by 2.7%. This contrasts with strong quarter-over-quarter deposits growth reported last week by Chase, Wells Fargo and Citi.

M&T’S cost-income ratio improves to 55.5% from 64.9% in the year ago quarter.

Darren King, Chief Financial Officer said: “The strength of M&T’s diversified community banking model and prudent management have positioned M&T to continue to deliver for our customers. First quarter net income nearly doubled from the year-earlier quarter. These results reflect loan growth, steady credit quality, a strong liquidity position and, as in past years, seasonally higher salaries and employee benefits expense. M&T’s estimated Common Equity Tier 1 ratio was 10.15% at March 31, 2023 compared with 10.44% at last year’s end.”

M&T completed its acquisition of People’s United last April to create a bank with assets of $202bn. Post-acquisition, M&T operates a branch network of over 1,000 outlets across 12 states from Maine to Virginia and Washington DC.