M&T Bank Corporation Announces Common Stock Repurchase Program

Rhea-AI Summary

M&T Bank (NYSE:MTB) has announced a new $4.0 billion share repurchase program for its common stock, effective January 22, 2025. This program replaces the previous $3.0 billion authorization from July 2022. The repurchases can be executed through open market or private transactions, with timing, volume, and terms at M&T's discretion, subject to regulatory limitations.

Chief Financial Officer Daryl Bible emphasized that this decision reflects the company's commitment to responsible capital management while maintaining support for customers, communities, and business investments. The company's strong earnings and solid capital position enable both operational goals and shareholder returns.

Positive

• Increased share repurchase authorization from $3.0B to $4.0B
• Strong earnings and solid capital position reported by CFO
• Demonstrates financial strength and commitment to shareholder returns

Negative

• Large capital allocation to buybacks may limit funds for business growth and investments

Insights

Financial Analyst

M&T Bank's newly authorized $4.0 billion share repurchase program marks a substantial 33% increase from the previous $3.0 billion authorization, sending a powerful signal to the market about the bank's financial strength and capital generation capabilities. This move is particularly noteworthy given the current banking environment, where many institutions are being more conservative with capital deployment.

The timing and size of this authorization reveals several key insights:

• The 33% increase in buyback capacity suggests M&T's management sees their stock as undervalued relative to its intrinsic worth
• The bank's willingness to deploy $4.0 billion indicates robust capital levels well above regulatory requirements
• This flexible authorization structure allows management to opportunistically repurchase shares while maintaining capital for potential growth opportunities

For investors, this program carries multiple benefits:

• Enhanced earnings per share through share count reduction
• Improved return on equity metrics
• A floor under the stock price during market volatility

The discretionary nature of the program is strategically important, as it allows M&T to adjust repurchase activity based on market conditions, growth opportunities and capital needs. This balanced approach to capital management, prioritizing both business investment and shareholder returns, demonstrates sophisticated financial stewardship that should resonate positively with institutional investors.

BUFFALO, N.Y., Jan. 22, 2025 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:MTB) announced that its Board of Directors authorized a share repurchase program to repurchase up to $4.0 billion of M&T common stock, $0.50 par value per share, on the open market or in privately negotiated transactions. The authorization replaces, and terminates effective January 22, 2025, the prior $3.0 billion share repurchase program authorized by the Board of Directors in July 2022.

Daryl Bible, M&T's Chief Financial Officer, noted: "The Board's decision underscores our dedication to managing shareholders' capital responsibly, in line with our established practices. Our primary focus in capital allocation is to support our customers and the communities we serve while continuing to invest in our businesses. Our strong earnings and solid capital position allow us to meet these essential goals and return surplus capital to our investors."

The exact number of shares, timing for such repurchases, and the price and terms at and on which such repurchases are to be made will be at the discretion of M&T and subject to all applicable regulatory limitations.

About M&T Bank

M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com.

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Investor Contact:
Brian Klock
(716) 842-5138

Media Contact:
Frank Lentini
(929) 651-0447

Forward-Looking Statements. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement, including statements that are based on current expectations, estimates and projections about the M&T's business, management's beliefs, and assumptions made by management. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict. Therefore, actual actions, outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. M&T provides further detail regarding risks, uncertainties and other factors that could affect the outcome of forward-looking statements in its public filings, including the "risk factors" described in M&T's Form 10-K for the year ended December 31, 2023, and subsequent filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and M&T does not assume any duty, and does not undertake, to update forward-looking statements.

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SOURCE M&T Bank Corporation

FAQ

How much is M&T Bank's (MTB) new share repurchase program worth?

M&T Bank's new share repurchase program is worth $4.0 billion, announced on January 22, 2025.

What was the size of MTB's previous share repurchase program?

MTB's previous share repurchase program, authorized in July 2022, was worth $3.0 billion.

When does MTB's new share buyback program take effect?

The new share buyback program takes effect on January 22, 2025, replacing the previous program.

How will MTB execute its $4.0 billion share repurchase program?

MTB will execute the repurchases through open market or privately negotiated transactions, with timing, volume, and terms at the company's discretion, subject to regulatory limitations.

What is the purpose of MTB's new share repurchase program?

The program aims to manage shareholders' capital responsibly while maintaining support for customers, communities, and business investments, leveraging the company's strong earnings and solid capital position.