Still relatively fresh off its acquisition of People’s United Bank, Buffalo, New York’s M&T Bank announced that its fourth-quarter profits soared by 67%, despite spending tens of millions of dollars on merger-related expenses.
M&T Bank Corp., parent of M&T Bank, said its fourth-quarter profits totaled $765 million, or $4.29 per diluted share, compared to $458 million, or $3.37 per diluted share, in the year-ago period.
The $200-billion asset bank reported the higher profits despite recording $45 million in merger-related expenses in the quarter. For all of 2022, the bank said it recorded $580 million in merger-related expenses.
M&T completed its $8.3 billion acquisition of People's United in April.
Overall, M&T officials said the deal has worked out well for the bank financially.
“The financial benefits of this combination are consistent to slightly better than our expectations at announcement,” M&T Chief Financial Officer Darren King told analysts during an earnings call.
During the fourth quarter, M&T said it also sold its insurance subsidiary, M&T Insurance Agency Inc., to Arthur J. Gallagher & Co. for $136 million. It also made a $135-million tax-deductible contribution to the M&T Charitable Foundation.
