Trust and investment services are helping to buoy M&T Banks sagging residential and commercial mortgage banking revenues, the parent of the Buffalo, N.Y.-based bank announced Thursday.
In the third quarter of 2013, trust services generated $123.8 million in revenue, up 7% year-over-year. Meanwhile, income from brokerage services swelled 20% to $16.9 million from $14.1 million. Overall, non-interest income (excluding gains from loan securitization activities and gains and losses from investment securities) was off 7%, falling to $421 million from $451 million in the third-quarter of 2012.
Higher trust income, due largely to wealth advisory services, helped offset lower mortgage banking revenues in the most recent quarter, the bank noted in its earnings release.
Revenue from both trust and brokerage services, however, were down slightly from the previous quarter, with brokerage income declining 2% from $17.2 million and trust income falling less than 1% from $124.7 million.
The second quarter results benefited from the normal seasonal uptick in tax preparation fees, Rene Jones, executive vice president and chief financial officer of M&T Bank, said of slight decline in trust income during the earnings call on Thursday.
Overall, M&T Bank Corp., the parent of M&T Bank, earned $294 million in the third quarter, up slightly from $293 million in the same quarter last year.