It's just shy of three years since M&T Bank Corp. launched its big push into New Jersey, when the bank completed its deal for Hudson City Bank.
The acquisition has paid off, said Darren J. King, M&T's chief financial officer. "We're very pleased with how things are going in New Jersey, and the deal has pretty much unfolded as we expected when we announced the merger."
The Hudson City deal took far longer than expected. M&T announced the planned purchase in 2012, but the acquisition was delayed while Buffalo-based M&T upgraded its anti-money laundering and Bank Secrecy Act programs to satisfy federal regulators.
The $5.2 billion deal put the bank "in a geography that was very attractive to us," King said Wednesday, after the bank released its third-quarter earnings. M&T already had a presence essentially around that area, and Hudson City's own territory, primarily New Jersey, had a high density of both individuals and small business and middle market customers, King said.
M&T now has 94 branches in New Jersey. And in M&T's third quarter, New Jersey was the bank's highest-growth market for commercial loans, on a percentage basis.
M&T recorded profits of $526 million in the third quarter, up 48 percent from $356 million a year ago. The bank reported diluted earnings per share of $3.53, topping analysts' forecasts and up 60 percent from $2.21 per share a year ago.
M&T's mortgage banking revenues were down 9 percent from a year ago, to $88 million. But King said the bank added $9 billion worth of mortgage subservicing work — which involves processing while not owning the mortgages — that translated to about $1 million to $2 million worth of fees for M&T during the quarter.
"The full impact of that [additional work] will show up in the fourth" quarter, King said.