M&T Bank reports a twofold increase in housing stock defaults


M&T Bank Says Late Stage NPLs More Than Doubled Over Last Year

M&T CFO Darren King (The Org and iStock)

Apart from analyst expectations, M&T Bank’s second quarter was profitable. The same cannot be said for homeowners who consider this firm to be their lender.

M&T posted adjusted earnings of $ 3.41 per share, which is not in line with estimates, but nearly double the $ 1.74 per share for the same quarter last year. Revenue in the second quarter excluding brokerage was $ 1.46 billion, beating consensus and surpassing the bank’s $ 1.1 billion in Q2 sales. published in 2020.

However, over the past year, M&T reported that late-stage delinquent loans, consisting mostly of residential property debt, have more than doubled. As of June 30, 2020, M&T had loans in the amount of USD 535 million overdue for more than 90 days; the company reported $ 1.1 billion this year.

Splash brings quantity overdue loans served by M&T to levels four times higher than before the pandemic.

As of March 2021, about 5% of mortgage loans have reached some stage of delay in payment. CoreLogic shows. Although the rates of early delinquency have declined over the past year; the number of mortgages that did not receive payments for 90 days or more increased by 1.2 percent, reflecting the growth of M&T.

In 10 days, the expiration of the federal moratorium is expected to result in a relatively low rate of foreclosures – just 0.3 percent of all mortgages in March, according to CoreLogic estimates. splash

On the commercial side, M&T reported total loan amounts for real estate in line with those during the pandemic.

The bank provided $ 37.6 billion in CRE loans in the second quarter, up about 1.1 percent over the same period last year and within tenths of a percentage point over previous quarters.

For most banks, lending trends began to subside in the early months of the pandemic. Commercial lending fell 30 percent from Q1 2020 to Q2, according to report CBRE… M&T, meanwhile, maintained its momentum, providing 1 percent more commercial real estate loans over the same period.

M&T Chief Financial Officer Darren King said he expects CRE loan growth to remain unchanged or decline slightly in the coming quarters.

“When you look at the real estate market, it’s no surprise that there isn’t much activity there,” said Chief Financial Officer Darren King.

King said clients are not selling or paying off their loans – which will be a hindrance to growth – but the firm also had less construction work started, and said developers currently have no appetite to expand their portfolios.

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