M&T Bank Corp. (NYSE:MTB) surpassed Wall Street expectations for first-quarter earnings on Monday due to the U.S. Federal Reserve’s accelerated rate hikes to manage excessive inflation.

The first quarter saw greater interest payments than expected, which helped U.S. banking giants avoid a crisis brought on by the failure of two local institutions.

Markets have been volatile as a result of the Fed’s aggressive monetary tightening, which has helped the majority of consumer-facing lenders.

In premarket trading, shares of M&T Bank increased by roughly 3% to $120. This year, they have lost almost 20% of their worth.

In the first quarter of the year that concluded on March 31, the bank’s net interest income more than doubled to $1.83 billion from $907 million.

M&T Bank’s total deposits decreased by over 3% to $159.1 billion from $163.5 billion at the end of the previous quarter.

The banking crisis has shaken investor trust in the industry, according to analysts, who predict that deposit outflows will decrease in the coming months. Without a solid showing of earnings power, the sector is not expected to rebound in the near term.

According to Refinitiv IBES statistics, M&T Bank recorded a profit of $4.01 per share for the quarter, exceeding analysts’ average estimate of $3.99 per share.

In light of the uncertain economic outlook, the bank set aside $120 million, up from $10 million in the corresponding period last year, to cover potential bad loans.