M&t Bank Corp (NYSE:MTB) stock rose 2.14% (As on April 15, 11:19:54 AM UTC-4, Source: Google Finance) though the company posted lower than expected results for first quarter of FY25, affected by a fall in loan balance and a rise in expenses. Net income available to common shareholders was $547 million, up 8.3% from the prior-year quarter. Average earning assets decreased $4.0 billion, or 2%, from the fourth quarter of 2024. Average interest-bearing deposits at banks decreased $3.9 billion reflecting a decline in average deposits, purchases of investment securities and share repurchases. Average investment securities increased $801 million primarily due to purchases of fixed rate agency mortgage-backed securities and U.S. Treasury securities during the first quarter of 2025 and the fourth quarter of 2024. Average loans and leases decreased $879 million primarily reflective of lower average commercial real estate loans of $1.6 billion resulting from lower origination activity and higher payoffs, partially offset by higher average commercial and industrial loans and leases of $352 million, average consumer loans of $318 million and average residential real estate loans of $88 million.

Moreover, the provision for credit losses was $130 million in the first quarter of 2025 as compared with $140 million in the immediately preceding quarter and $200 million in the first quarter of 2024. Mortgage banking revenues rose $14 million due to higher gains on sales of commercial mortgage loans and increased residential mortgage loan sub-servicing fees. Service charges on deposit accounts increased $9 million reflecting a rise in commercial service charges. Trust income increased $17 million predominantly due to higher sales and fees from the Company’s global capital markets business and improved market performance in the wealth management business.

MTB in the first quarter of FY25 has reported the adjusted earnings per share of $3.38, missing the analysts’ estimates for the adjusted earnings per share of $3.42. The company had reported the adjusted revenue of $2.32 billion in the first quarter of FY25, missing the analysts’ estimates for revenue of $2.35 billion.

Additionally, M&T repurchased 3,415,303 shares of its common stock for a total cost of $662 million, including the share repurchase excise tax, in the first quarter of 2025. Reflecting repurchases, M&T’s CET1 capital ratio declined to an estimated 11.50% at March 31, 2025, representing an 18 basis-point decrease from 11.68% at December 31, 2024.