M&T Bank (NYSE:MTB) reported a stronger-than-expected 49% gain in fourth-quarter earnings on Friday, helped primarily by lower credit losses.

The Buffalo, NY-based company posted a profit of $204 million, or $1.59 a share, compared with $136.8 million, or $1.04 a share in the same quarter last year, beating the Street’s view of $1.45 a share.

Revenue for the bank, which operates in the Northeast and mid-Atlantic, came in at $861 million, up 4.4%, and ahead of average analyst estimates polled by Thomson Reuters of $850 million.

Credit loss provisions improved year-over-year, down to $85 million from $145 million in the year-earlier period.

M&T CEO Rene F. Jones said in a release that the results capped off a successful year, noting that its level of credit costs remained well below recent industry averages.

Also last quarter, the bank agreed to acquire Wilmington Trust in an all-stock deal valued at $403 million. The company said it is happy with the progress achieved so far on the transaction.