M&T Bank’s Earnings Defy Turmoil to Top Forecasts. The Stock Is Rising.

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Shares of

M&T Bank

ticked higher early Monday after the company reported better-than-expected earnings for its first quarter, giving investors a boost of confidence in the regional lender following turmoil in the wider banking sector earlier this year.

M&T Bank (ticker:

MTB

) posted first-quarter diluted earnings of $4.01 per share, higher than the $2.62 per share recorded a year ago and beating analysts’ expectations of $3.94, according to FactSet. 

The company also posted first-quarter net income of $702 million, soaring from the $362 million in the same period a year ago and higher than analysts’ forecasts.

Net interest income clocked in at $1.83 billion for the quarter, rising from the $907 million a year ago. 

“The strength of M&T’s diversified community banking model and prudent management have positioned M&T to continue to deliver for our customers,” Chief Financial Officer Darren King said in the earnings release. 

Indeed, last month the company snagged a thumbs-up from

Citigroup

analyst Keith Horowitz, who lifted his rating on M&T stock to Buy from Neutral.

“M&T Bank was the most disciplined with its excess cash during the period of low rates and has strongest capital position of the regionals,” Horowitz wrote at the time.

Shares of M&T rose 3.3% to $120.43 early Monday, and the

SPDR S&P Regional Banking ETF
(KRE) gained 0.8%.

Write to Emily Dattilo at [email protected]