M&T Bank Corporation (NYSE:MTB) announces third quarter 2024 results

Rhea-AI Summary

M&T Bank (NYSE:MTB) reported third quarter 2024 results with net income of $721 million or $4.02 diluted earnings per common share. Key highlights include:

- Net interest income of $1,726 million
- Provision for credit losses of $120 million
- Noninterest income of $606 million
- Noninterest expense of $1,303 million
- Return on average assets of 1.37% (annualized)
- Return on average common shareholders' equity of 10.26% (annualized)

The CET1 capital ratio rose to an estimated 11.54%, marking the sixth consecutive quarterly increase. M&T repurchased shares for a total cost of $200 million in Q3 2024. The net interest margin widened to 3.62% from 3.59% in Q2 2024, reflecting higher yields on investment securities and lower funding costs.

Positive

• Net income increased to $721 million, up from $655 million in Q2 2024
• Diluted earnings per common share rose to $4.02 from $3.73 in Q2 2024
• CET1 capital ratio increased to an estimated 11.54%, up from 11.45% in Q2 2024
• Net interest margin widened to 3.62% from 3.59% in Q2 2024
• Nonaccrual loans improved to 1.42% of loans outstanding, down from 1.50% in Q2 2024
• Noninterest income increased 4% from Q2 2024 and 8% year-over-year

Negative

• Net interest income decreased 3% year-over-year
• Average deposits declined compared to Q2 2024
• Net charge-offs increased to $120 million from $96 million in Q3 2023

Insights

Financial Analyst

M&T Bank's Q3 2024 results show solid performance with net income of $721 million and diluted EPS of $4.02, up from $655 million and $3.73 in Q2 2024. Key highlights include:

• CET1 capital ratio improved to 11.54%, continuing a six-quarter strengthening trend
• Net interest margin widened to 3.62% from 3.59% in Q2
• Nonaccrual loans improved to 1.42% of total loans, down from 1.50% in Q2
• Provision for credit losses decreased to $120 million from $150 million in Q2

The bank's focus on commercial and consumer lending growth, coupled with improved asset quality and a stronger capital position, bodes well for future performance. However, the slight year-over-year decline in net interest income and margin suggests ongoing challenges in the interest rate environment.

Market Research Analyst

M&T Bank's Q3 results reflect a resilient business model amidst a challenging banking environment. The 1% increase in taxable-equivalent net interest income from Q2, despite lower average earning assets, demonstrates effective balance sheet management. The bank's strategic focus is evident in:

• Growth in commercial & industrial and consumer loans, offsetting declines in commercial real estate
• Reduction in higher-cost brokered deposits and short-term borrowings
• Improved asset quality with lower nonaccrual loans and criticized commercial loans

The $200 million share repurchase signals confidence in capital position. However, the slight year-over-year decline in net interest income and margin warrants monitoring. The bank's ability to navigate interest rate challenges while growing core business segments will be important for maintaining investor confidence.

BUFFALO, N.Y., Oct. 17, 2024 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $721 million or $4.02 of diluted earnings per common share.

(Dollars in millions, except per share data)		3Q24		2Q24		3Q23
Earnings Highlights
Net interest income		$        1,726		$        1,718		$        1,775
Taxable-equivalent adjustment		13		13		15
Net interest income - taxable-equivalent		1,739		1,731		1,790
Provision for credit losses		120		150		150
Noninterest income		606		584		560
Noninterest expense		1,303		1,297		1,278
Net income		721		655		690
Net income available to common shareholders - diluted		674		626		664
Diluted earnings per common share		4.02		3.73		3.98
Return on average assets - annualized		1.37 %		1.24 %		1.33 %
Return on average common shareholders' equity - annualized		10.26		9.95		10.99
Average Balance Sheet
Total assets		$     209,581		$     211,981		$     205,791
Interest-bearing deposits at banks		25,491		29,294		26,657
Investment securities		31,023		29,695		27,993
Loans and leases, net of unearned discount		134,751		134,588		132,617
Deposits		161,505		163,491		162,688
Borrowings		15,428		16,452		12,585
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin		3.62 %		3.59 %		3.79 %
Efficiency ratio (1)		55.0		55.3		53.7
Net charge-offs to average total loans - annualized		.35		.41		.29
Allowance for credit losses to total loans		1.62		1.63		1.55
Nonaccrual loans to total loans		1.42		1.50		1.77
Common equity Tier 1 ("CET1") capital ratio (2)		11.54		11.45		10.95
Common shareholders' equity per share		$      159.38		$      153.57		$      145.72

(1) A reconciliation of non-GAAP measures is included in the tables that accompany this release

(2) September 30, 2024 CET1 capital ratio is estimated.

Financial Highlights

• M&T's capital position continues to strengthen as the CET1 capital ratio rose for the sixth consecutive quarter to an estimated 11.54% at September 30, 2024, representing a 9 basis point increase from 11.45% at June 30, 2024. M&T repurchased shares of its common stock for a total cost of $200 million, including the share repurchase excise tax, in the third quarter of 2024.
• Net interest margin of 3.62% in the recent quarter widened from 3.59% in the second quarter of 2024 reflecting higher yields on investment securities and lower funding costs led by a decline in brokered time deposits.
• Growth in average commercial and industrial loans and average consumer loans in the recent quarter was largely offset by a decline in average commercial real estate loans.
• A decline in average deposits in the third quarter of 2024 as compared with the second quarter of 2024 reflects lower average brokered time deposits. The decrease in average borrowings in the recent quarter from the second quarter of 2024 primarily reflects lower average short-term borrowings from the Federal Home Loan Bank ("FHLB") of New York.
• The decline in provision for credit losses in the recent quarter from the second quarter of 2024 reflects lower levels of criticized commercial real estate and commercial and industrial loans, partially offset by commercial and industrial and consumer loan growth.
• The level of nonaccrual loans improved to 1.42% of loans outstanding at September 30, 2024 from 1.50% at June 30, 2024.

 

Chief Financial Officer Commentary

"M&T's positive earnings momentum, strong capital position and unyielding focus on delivering for our customers and the communities we serve have positioned the franchise for a strong finish to 2024. I am proud of how our employees have exhibited our core values as we execute on our strategic priorities."

- Daryl N. Bible, M&T's Chief Financial Officer

Contact:
Investor Relations:	Brian Klock	716.842.5138
Media Relations:	Frank Lentini	929.651.0447

Non-GAAP Measures (1)
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions, except per share data)		3Q24		2Q24		2Q24		3Q23		3Q23
Net operating income		$            731		$            665		10 %		$            702		4 %
Diluted net operating earnings per common share		4.08		3.79		8		4.05		1
Annualized return on average tangible assets		1.45 %		1.31 %				1.41 %
Annualized return on average tangible common equity		15.47		15.27				17.41
Efficiency ratio		55.0		55.3				53.7
Tangible equity per common share		$       107.97		$       102.42		5		$         93.99		15

__________

(1)	A reconciliation of non-GAAP measures is included in the tables that accompany this release.

M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature.

Taxable-equivalent Net Interest Income
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions)		3Q24		2Q24		2Q24		3Q23		3Q23
Average earning assets		$     191,366		$     193,676		-1 %		$     187,403		2 %
Average interest-bearing liabilities		130,775		132,209		-1		121,388		8
Net interest income - taxable-equivalent		1,739		1,731		1		1,790		-3
Yield on average earning assets		5.82 %		5.82 %				5.62 %
Cost of interest-bearing liabilities		3.22		3.26				2.83
Net interest spread		2.60		2.56				2.79
Net interest margin		3.62		3.59				3.79

Taxable-equivalent net interest income increased $8 million, or 1%, from the second quarter of 2024.

• Average loans and leases increased $163 million and the yield on those loans and leases was unchanged.
• Average investment securities increased $1.3 billion and the rates earned on those securities increased 9 basis points.
• Average interest-bearing deposits decreased $410 million and the rates paid on such deposits declined 2 basis points. Average brokered deposits declined $1.1 billion in the recent quarter.
• Average borrowings declined $1.0 billion and the rates paid on such borrowings were flat.
• Average interest-bearing deposits at banks decreased $3.8 billion.

Taxable-equivalent net interest income decreased $51 million, or 3%, compared with the year-earlier third quarter.

• Average interest-bearing deposits rose $6.5 billion and the rates paid on those deposits increased 34 basis points. Average brokered deposits declined $2.0 billion.
• Average borrowings increased $2.8 billion and rates paid on such borrowings increased 40 basis points.
• Average interest bearing deposits at banks decreased $1.2 billion.
• Average investment securities and average loans and leases increased $3.0 billion and $2.1 billion, respectively.
• The yields earned on average investment securities and average loans and leases increased 56 basis points and 19 basis points, respectively.

Average Earning Assets
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions)		3Q24		2Q24		2Q24		3Q23		3Q23
Interest-bearing deposits at banks		$      25,491		$      29,294		-13 %		$      26,657		-4 %
Trading account		101		99		2		136		-26
Investment securities		31,023		29,695		4		27,993		11
Loans and leases, net of unearned discount
Commercial and industrial		59,779		58,152		3		54,567		10
Real estate - commercial		29,075		31,458		-8		34,288		-15
Real estate - consumer		22,994		23,006		—		23,573		-2
Consumer		22,903		21,972		4		20,189		13
Total loans and leases, net		134,751		134,588		—		132,617		2
Total earning assets		$    191,366		$    193,676		-1		$    187,403		2

Average earning assets decreased $2.3 billion, or 1%, from the second quarter of 2024.

• Average interest-bearing deposits at banks decreased $3.8 billion reflecting purchases of investment securities and the run-off of brokered time deposits and short-term FHLB advances.
• Average investment securities increased $1.3 billion primarily due to purchases of fixed rate agency mortgage-backed and U.S. Treasury securities during the third quarter of 2024.
• Average loans and leases increased $163 million primarily reflective of growth in average commercial and industrial loans and leases of $1.6 billion and consumer loans of $931 million, partially offset by a decline in average commercial real estate loans of $2.4 billion. The growth in commercial and industrial loans spanned most industry types.

Average earning assets increased $4.0 billion, or 2%, from the year-earlier third quarter.

• Average interest-bearing deposits at banks decreased $1.2 billion reflecting purchases of investment securities, loan growth and a decline in average deposits, partially offset by higher levels of average borrowings.
• Average investment securities increased $3.0 billion reflecting purchases of fixed rate agency mortgage-backed and U.S. Treasury securities over the past nine months.
• Average loans and leases increased $2.1 billion predominantly due to higher average commercial and industrial loans and leases of $5.2 billion, reflecting lending activities to financial and insurance industry customers, motor vehicle and recreational finance dealers and to the services industry, and consumer loans of $2.7 billion reflecting higher average recreational finance and automobile loans, partially offset by a $5.2 billion and a $579 million decline in average commercial real estate loans and residential real estate loans, respectively.

Average Interest-bearing Liabilities
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions)		3Q24		2Q24		2Q24		3Q23		3Q23
Interest-bearing deposits
Savings and interest-checking deposits		$          98,295		$          95,955		2 %		$          89,274		10 %
Time deposits		17,052		19,802		-14		19,528		-13
Total interest-bearing deposits		115,347		115,757		—		108,802		6
Short-term borrowings		4,034		4,962		-19		5,346		-25
Long-term borrowings		11,394		11,490		-1		7,240		57
Total interest-bearing liabilities		$        130,775		$        132,209		-1		$        121,388		8
Brokered savings and interest-checking    deposits		$             8,831		$             8,193		8 %		$             4,554		94 %
Brokered time deposits		2,114		3,826		-45		8,398		-75
Total brokered deposits		$          10,945		$          12,019		-9		$          12,952		-15

Average interest-bearing liabilities decreased $1.4 billion, or 1%, from the second quarter of 2024.

• Average borrowings decreased $1.0 billion predominantly due to lower average short-term borrowings from the FHLB of New York in the recent quarter.
• Average interest-bearing deposits decreased $410 million, reflective of a $1.1 billion decrease in average brokered deposits, partially offset by a $664 million increase in average non-brokered deposits.

Average interest-bearing liabilities increased $9.4 billion, or 8%, from the third quarter of 2023.

• Average interest-bearing deposits rose $6.5 billion reflecting an $8.5 billion increase in average non-brokered deposits as customers shifted funds into interest-bearing products amidst the rate environment, partially offset by a $2.0 billion decrease in average brokered deposits.
• Average borrowings increased $2.8 billion reflecting the issuances of senior notes and other long-term debt from the third quarter of 2023 through the third quarter of 2024, partially offset by lower average short-term borrowings.

Provision for Credit Losses/Asset Quality
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions)		3Q24		2Q24		2Q24		3Q23		3Q23
At end of quarter
Nonaccrual loans		$         1,926		$         2,024		-5 %		$         2,342		-18 %
Real estate and other foreclosed assets		37		33		14		37		—
Total nonperforming assets		1,963		2,057		-5		2,379		-17
Accruing loans past due 90 days or more (1)		288		233		24		354		-19
Nonaccrual loans as % of loans outstanding		1.42 %		1.50 %				1.77 %
Allowance for credit losses		$         2,204		$         2,204		—		$         2,052		7
Allowance for credit losses as % of loans outstanding		1.62 %		1.63 %				1.55 %
For the period
Provision for credit losses		$             120		$             150		-20		$             150		-20
Net charge-offs		120		137		-12		96		24
Net charge-offs as % of average loans (annualized)		.35 %		.41 %				.29 %

__________

(1)	Predominantly government-guaranteed residential real estate loans.

M&T recorded a provision for credit losses of $120 million in the third quarter of 2024 and $150 million in each of 2024's second quarter and 2023's third quarter. The lower provision for credit losses in the most recent quarter as compared with the second quarter of 2024 reflects a decline in commercial real estate and commercial and industrial criticized loans, partially offset by growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. Net charge-offs totaled $120 million in 2024's third quarter as compared with $137 million in 2024's second quarter and $96 million in the year-earlier quarter.

Nonaccrual loans were $1.9 billion at September 30, 2024, $98 million lower than at June 30, 2024 and $416 million lower than at September 30, 2023. The lower level of nonaccrual loans at the recent quarter end as compared with June 30, 2024 and September 30, 2023 was predominantly attributable to a decrease in commercial real estate nonaccrual loans.

Noninterest Income
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions)		3Q24		2Q24		2Q24		3Q23		3Q23
Mortgage banking revenues		$            109		$            106		3 %		$            105		4 %
Service charges on deposit accounts		132		127		3		121		9
Trust income		170		170		—		155		9
Brokerage services income		32		30		2		27		16
Trading account and other non-hedging      derivative gains		13		7		109		9		46
Gain (loss) on bank investment securities		(2)		(8)		—		—		—
Other revenues from operations		152		152		—		143		7
Total		$            606		$            584		4		$            560		8

Noninterest income in the third quarter of 2024 increased $22 million, or 4%, from 2024's second quarter.

• Service charges on deposit accounts increased $5 million reflecting a rise in consumer and commercial service charges.
• Trading account and other non-hedging derivative gains increased $6 million reflecting an increase in the market value of supplemental executive retirement plan assets from favorable market conditions and increased activity related to interest rate swap agreements with commercial customers.
• The lower loss on bank investment securities of $6 million in the third quarter of 2024 as compared with the second quarter of 2024 reflected realized losses on sales of certain non-agency investment securities during the second quarter of 2024.

Noninterest income rose $46 million, or 8%, as compared with the year-earlier third quarter.

• Service charges on deposit accounts increased $11 million reflecting higher commercial service charges from pricing changes and increased customer usage of sweep products and a rise in consumer service charges.
• Trust income increased $15 million predominantly due to higher sales and fees from the Company's global capital markets business and improved market performance in the wealth management business.
• Brokerage services income rose $5 million predominantly due to higher annuity sales.
• Other revenues from operations rose $9 million reflecting higher letter of credit and other credit-related fees.

Noninterest Expense
						Change 3Q24 vs.				Change 3Q24 vs.
(Dollars in millions)		3Q24		2Q24		2Q24		3Q23		3Q23
Salaries and employee benefits		$          775		$          764		1 %		$          727		7 %
Equipment and net occupancy		125		125		—		131		-5
Outside data processing and software		123		124		-1		111		11
Professional and other services		88		91		-4		89		-2
FDIC assessments		25		37		-32		29		-14
Advertising and marketing		27		27		—		23		18
Amortization of core deposit and other intangible assets		12		13		—		15		-15
Other costs of operations		128		116		10		153		-16
Total		$       1,303		$       1,297		—		$       1,278		2

Noninterest expense rose $6 million from the second quarter of 2024.

• Salaries and employee benefits expense increased $11 million predominantly reflecting the impact of one additional working day in the recent quarter.
• FDIC assessments decreased $12 million reflecting estimated special assessment expense of $5 million recorded in the second quarter of 2024, related to the FDIC's updated loss estimates associated with certain failed banks.
• Other costs of operations increased $12 million predominantly due to the Company's obligation under various agreements to share in losses stemming from certain litigation of Visa, Inc.

Noninterest expense increased $25 million, or 2%, from the third quarter of 2023.

• Salaries and employee benefits expense increased $48 million reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower employee staffing levels.
• Outside data processing and software rose $12 million due to higher software licensing fees and software maintenance expenses.
• Other costs of operations decreased $25 million as a result of lower losses associated with certain retail banking activities.

Income Taxes

The Company's effective income tax rate was 20.7% in the third quarter of 2024, compared with 23.4% and 24.0% in the second quarter of 2024 and third quarter of 2023, respectively. The recent quarter income tax expense reflects a discrete tax benefit related to certain tax credits claimed on a prior year tax return.

Capital
		3Q24		2Q24		3Q23
CET1		11.54 %	(1)	11.45 %		10.95 %
Tier 1 capital		13.08	(1)	13.23		12.27
Total capital		14.66	(1)	14.88		13.99
Tangible capital – common		8.83		8.55		7.78

__________

(1)	September 30, 2024 capital ratios are estimated.

M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $226 million and $47 million, respectively, for the quarter ended September 30, 2024. On August 15, 2024, M&T redeemed all outstanding shares of its Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock (Series E) at a redemption price of $350 million. The Company issued $750 million par value of Perpetual 7.5% Non-Cumulative Preferred Stock (Series J) in May 2024. In June 2024, the Federal Reserve released the results of its most recent supervisory stress tests. Based on those results, on October 1, 2024, M&T's stress capital buffer of 3.8% became effective.

The CET1 capital ratio for M&T was estimated at 11.54% as of September 30, 2024. M&T's total risk-weighted assets at September 30, 2024 are estimated to be $156 billion.

M&T repurchased 1,190,054 shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $166.40 resulting in a total cost, including the share repurchase excise tax, of $200 million. No share repurchases occurred in the second quarter of 2024 or third quarter of 2023.

Conference Call

Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 8:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ324. The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday October 24, 2024 by calling (800) 757-4764, or (402) 220-7226 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations. 

About M&T

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 predominantly in 12 states across 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. 

Forward-Looking Statements

This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.

Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control.

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 and may cause actual outcomes to differ materially from what is expressed or forecasted.

While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events and developments in the financial services industry, including industry conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in M&T's credit ratings; the impact of the People's United Financial, Inc. acquisition; domestic or international political developments and other geopolitical events, including international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, and other factors.

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2023, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements.

Financial Highlights

	Three months ended						Nine months ended
	September 30,						September 30,
(Dollars in millions, except per share, shares in thousands)	2024		2023		Change		2024		2023		Change
Performance
Net income	$         721		$         690		5 %		$       1,907		$       2,259		-16 %
Net income available to common shareholders	674		664		2		1,805		2,180		-17
Per common share:
Basic earnings	4.04		4.00		1		10.83		13.09		-17
Diluted earnings	4.02		3.98		1		10.78		13.05		-17
Cash dividends	1.35		1.30		4		4.00		3.90		3
Common shares outstanding:
Average - diluted (1)	167,567		166,570		1		167,437		167,093		—
Period end (2)	166,157		165,970		—		166,157		165,970		—
Return on (annualized):
Average total assets	1.37 %		1.33 %				1.21 %		1.48 %
Average common shareholders' equity	10.26		10.99				9.47		12.33
Taxable-equivalent net interest income	$       1,739		$       1,790		-3		$       5,162		$       5,434		-5
Yield on average earning assets	5.82 %		5.62 %				5.79 %		5.41 %
Cost of interest-bearing liabilities	3.22		2.83				3.24		2.39
Net interest spread	2.60		2.79				2.55		3.02
Contribution of interest-free funds	1.02		1.00				1.03		.89
Net interest margin	3.62		3.79				3.58		3.91
Net charge-offs to average total net loans (annualized)	.35		.29				.39		.30
Net operating results (3)
Net operating income	$         731		$         702		4		$       1,939		$       2,295		-16
Diluted net operating earnings per common share	4.08		4.05		1		10.97		13.26		-17
Return on (annualized):
Average tangible assets	1.45 %		1.41 %				1.28 %		1.57 %
Average tangible common equity	15.47		17.41				14.51		19.70
Efficiency ratio	55.0		53.7				57.0		52.6
	At September 30,
Loan quality	2024		2023		Change
Nonaccrual loans	$       1,926		$       2,342		-18 %
Real estate and other foreclosed assets	37		37		—
Total nonperforming assets	$       1,963		$       2,379		-17
Accruing loans past due 90 days or more (4)	$         288		$         354		-19
Government guaranteed loans included in totals above:
Nonaccrual loans	$           69		$           40		73
Accruing loans past due 90 days or more	269		269		—
Nonaccrual loans to total loans	1.42 %		1.77 %
Allowance for credit losses to total loans	1.62		1.55
Additional information
Period end common stock price	$     178.12		$     126.45		41
Domestic banking offices	957		967		-1
Full time equivalent employees	21,986		22,424		-2

__________

(1)	Includes common stock equivalents.
(2)	Includes common stock issuable under deferred compensation plans.
(3)	Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4)	Predominantly residential real estate loans.

 

Financial Highlights, Five Quarter Trend

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in millions, except per share, shares in thousands)	2024		2024		2024		2023		2023
Performance
Net income	$             721		$             655		$             531		$             482		$             690
Net income available to common shareholders	674		626		505		457		664
Per common share:
Basic earnings	4.04		3.75		3.04		2.75		4.00
Diluted earnings	4.02		3.73		3.02		2.74		3.98
Cash dividends	1.35		1.35		1.30		1.30		1.30
Common shares outstanding:
Average - diluted (1)	167,567		167,659		167,084		166,731		166,570
Period end (2)	166,157		167,225		166,724		166,149		165,970
Return on (annualized):
Average total assets	1.37 %		1.24 %		1.01 %		.92 %		1.33 %
Average common shareholders' equity	10.26		9.95		8.14		7.41		10.99
Taxable-equivalent net interest income	$           1,739		$           1,731		$           1,692		$           1,735		$           1,790
Yield on average earning assets	5.82 %		5.82 %		5.74 %		5.73 %		5.62 %
Cost of interest-bearing liabilities	3.22		3.26		3.26		3.17		2.83
Net interest spread	2.60		2.56		2.48		2.56		2.79
Contribution of interest-free funds	1.02		1.03		1.04		1.05		1.00
Net interest margin	3.62		3.59		3.52		3.61		3.79
Net charge-offs to average total net loans (annualized)	.35		.41		.42		.44		.29
Net operating results (3)
Net operating income	$             731		$             665		$             543		$             494		$             702
Diluted net operating earnings per common share	4.08		3.79		3.09		2.81		4.05
Return on (annualized):
Average tangible assets	1.45 %		1.31 %		1.08 %		.98 %		1.41 %
Average tangible common equity	15.47		15.27		12.67		11.70		17.41
Efficiency ratio	55.0		55.3		60.8		62.1		53.7
	September 30,		June 30,		March 31,		December 31,		September 30,
Loan quality	2024		2024		2024		2023		2023
Nonaccrual loans	$           1,926		$           2,024		$           2,302		$           2,166		$           2,342
Real estate and other foreclosed assets	37		33		38		39		37
Total nonperforming assets	$           1,963		$           2,057		$           2,340		$           2,205		$           2,379
Accruing loans past due 90 days or more (4)	$             288		$             233		$             297		$             339		$             354
Government guaranteed loans included in totals above:
Nonaccrual loans	$               69		$               64		$               62		$               53		$               40
Accruing loans past due 90 days or more	269		215		244		298		269
Nonaccrual loans to total loans	1.42 %		1.50 %		1.71 %		1.62 %		1.77 %
Allowance for credit losses to total loans	1.62		1.63		1.62		1.59		1.55
Additional information
Period end common stock price	$         178.12		$         151.36		$         145.44		$         137.08		$         126.45
Domestic banking offices	957		957		958		961		967
Full time equivalent employees	21,986		22,110		21,927		21,980		22,424

__________

(1)	Includes common stock equivalents.
(2)	Includes common stock issuable under deferred compensation plans.
(3)	Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4)	Predominantly residential real estate loans.

 

Condensed Consolidated Statement of Income

	Three months ended						Nine months ended
	September 30,						September 30,
(Dollars in millions)	2024		2023		Change		2024		2023		Change
Interest income	$     2,785		$     2,641		5 %		$     8,319		$     7,484		11 %
Interest expense	1,059		866		22		3,195		2,091		53
Net interest income	1,726		1,775		-3		5,124		5,393		-5
Provision for credit losses	120		150		-20		470		420		12
Net interest income after provision for credit losses	1,606		1,625		-1		4,654		4,973		-6
Other income
Mortgage banking revenues	109		105		4		319		297		7
Service charges on deposit accounts	132		121		9		383		354		8
Trust income	170		155		9		500		521		-4
Brokerage services income	32		27		16		91		76		19
Trading account and other non-hedging      derivative gains	13		9		46		29		38		-22
Gain (loss) on bank investment securities	(2)		—		—		(8)		—		—
Other revenues from operations	152		143		7		456		664		-31
Total other income	606		560		8		1,770		1,950		-9
Other expense
Salaries and employee benefits	775		727		7		2,372		2,273		4
Equipment and net occupancy	125		131		-5		379		387		-2
Outside data processing and software	123		111		11		367		323		14
Professional and other services	88		89		-2		264		314		-16
FDIC assessments	25		29		-14		122		87		40
Advertising and marketing	27		23		18		74		82		-10
Amortization of core deposit and other      intangible assets	12		15		-15		40		47		-14
Other costs of operations	128		153		-16		378		417		-9
Total other expense	1,303		1,278		2		3,996		3,930		2
Income before taxes	909		907		—		2,428		2,993		-19
Income taxes	188		217		-13		521		734		-29
Net income	$        721		$        690		5 %		$     1,907		$     2,259		-16 %

 

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in millions)	2024		2024		2024		2023		2023
Interest income	$         2,785		$         2,789		$         2,745		$         2,740		$         2,641
Interest expense	1,059		1,071		1,065		1,018		866
Net interest income	1,726		1,718		1,680		1,722		1,775
Provision for credit losses	120		150		200		225		150
Net interest income after provision for credit losses	1,606		1,568		1,480		1,497		1,625
Other income
Mortgage banking revenues	109		106		104		112		105
Service charges on deposit accounts	132		127		124		121		121
Trust income	170		170		160		159		155
Brokerage services income	32		30		29		26		27
Trading account and other non-hedging      derivative gains	13		7		9		11		9
Gain (loss) on bank investment securities	(2)		(8)		2		4		—
Other revenues from operations	152		152		152		145		143
Total other income	606		584		580		578		560
Other expense
Salaries and employee benefits	775		764		833		724		727
Equipment and net occupancy	125		125		129		134		131
Outside data processing and software	123		124		120		114		111
Professional and other services	88		91		85		99		89
FDIC assessments	25		37		60		228		29
Advertising and marketing	27		27		20		26		23
Amortization of core deposit and other      intangible assets	12		13		15		15		15
Other costs of operations	128		116		134		110		153
Total other expense	1,303		1,297		1,396		1,450		1,278
Income before taxes	909		855		664		625		907
Income taxes	188		200		133		143		217
Net income	$            721		$            655		$            531		$            482		$            690

 

Condensed Consolidated Balance Sheet

	September 30,
(Dollars in millions)	2024		2023		Change
ASSETS
Cash and due from banks	$         2,216		$         1,769		25 %
Interest-bearing deposits at banks	24,417		30,114		-19
Trading account	102		137		-25
Investment securities	32,327		27,336		18
Loans and leases, net of unearned discount:
Commercial and industrial	61,012		54,891		11
Real estate - commercial	28,683		33,741		-15
Real estate - consumer	23,019		23,448		-2
Consumer	23,206		20,275		14
Total loans and leases, net	135,920		132,355		3
Less: allowance for credit losses	2,204		2,052		7
Net loans and leases	133,716		130,303		3
Goodwill	8,465		8,465		—
Core deposit and other intangible assets	107		162		-34
Other assets	10,435		10,838		-4
Total assets	$     211,785		$     209,124		1 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$       47,344		$       53,787		-12 %
Interest-bearing deposits	117,210		110,341		6
Total deposits	164,554		164,128		—
Short-term borrowings	2,605		6,731		-61
Accrued interest and other liabilities	4,167		4,946		-16
Long-term borrowings	11,583		7,123		63
Total liabilities	182,909		182,928		—
Shareholders' equity:
Preferred	2,394		2,011		19
Common	26,482		24,185		9
Total shareholders' equity	28,876		26,196		10
Total liabilities and shareholders' equity	$     211,785		$     209,124		1 %

 

Condensed Consolidated Balance Sheet, Five Quarter Trend  

	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in millions)	2024		2024		2024		2023		2023
ASSETS
Cash and due from banks	$         2,216		$         1,778		$         1,695		$         1,731		$         1,769
Interest-bearing deposits at banks	24,417		24,792		32,144		28,069		30,114
Trading account	102		99		99		106		137
Investment securities	32,327		29,894		28,496		26,897		27,336
Loans and leases, net of unearned discount:
Commercial and industrial	61,012		60,027		57,897		57,010		54,891
Real estate - commercial	28,683		29,532		32,416		33,003		33,741
Real estate - consumer	23,019		23,003		23,076		23,264		23,448
Consumer	23,206		22,440		21,584		20,791		20,275
Total loans and leases, net	135,920		135,002		134,973		134,068		132,355
Less: allowance for credit losses	2,204		2,204		2,191		2,129		2,052
Net loans and leases	133,716		132,798		132,782		131,939		130,303
Goodwill	8,465		8,465		8,465		8,465		8,465
Core deposit and other intangible assets	107		119		132		147		162
Other assets	10,435		10,910		11,324		10,910		10,838
Total assets	$     211,785		$     208,855		$     215,137		$     208,264		$     209,124
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$       47,344		$       47,729		$       50,578		$       49,294		$       53,787
Interest-bearing deposits	117,210		112,181		116,618		113,980		110,341
Total deposits	164,554		159,910		167,196		163,274		164,128
Short-term borrowings	2,605		4,764		4,795		5,316		6,731
Accrued interest and other liabilities	4,167		4,438		4,527		4,516		4,946
Long-term borrowings	11,583		11,319		11,450		8,201		7,123
Total liabilities	182,909		180,431		187,968		181,307		182,928
Shareholders' equity:
Preferred	2,394		2,744		2,011		2,011		2,011
Common	26,482		25,680		25,158		24,946		24,185
Total shareholders' equity	28,876		28,424		27,169		26,957		26,196
Total liabilities and shareholders' equity	$     211,785		$     208,855		$     215,137		$     208,264		$     209,124

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

	Three months ended												Change in balance				Nine months ended
	September 30,				June 30,				September 30,				September 30, 2024 from				September 30,								Change
(Dollars in millions)	2024				2024				2023				June 30,		September 30,		2024				2023				in
	Balance		Rate		Balance		Rate		Balance		Rate		2024		2023		Balance		Rate		Balance		Rate		balance
ASSETS
Interest-bearing deposits at banks	$   25,491		5.43 %		$   29,294		5.50 %		$   26,657		5.40 %		-13 %		-4 %		$   28,467		5.48 %		$   24,871		5.07 %		14 %
Trading account	101		3.40		99		3.47		136		4.05		2		-26		102		3.43		136		3.02		-25
Investment securities	31,023		3.70		29,695		3.61		27,993		3.14		4		11		29,773		3.54		28,081		3.08		6
Loans and leases, net of unearned      discount:
Commercial and industrial	59,779		7.01		58,152		7.04		54,567		6.86		3		10		58,256		7.01		53,877		6.60		8
Real estate - commercial	29,075		6.27		31,458		6.38		34,288		6.50		-8		-15		31,069		6.34		34,823		6.26		-11
Real estate - consumer	22,994		4.41		23,006		4.32		23,573		4.14		—		-2		23,045		4.33		23,707		4.06		-3
Consumer	22,903		6.72		21,972		6.61		20,189		6.16		4		13		22,009		6.63		20,320		5.90		8
Total loans and leases, net	134,751		6.38		134,588		6.38		132,617		6.19		—		2		134,379		6.36		132,727		5.98		1
Total earning assets	191,366		5.82		193,676		5.82		187,403		5.62		-1		2		192,721		5.79		185,815		5.41		4
Goodwill	8,465				8,465				8,465				—		—		8,465				8,476				—
Core deposit and other intangible assets	113				126				170				-10		-33		126				185				-32
Other assets	9,637				9,714				9,753				-1		-1		9,696				9,790				-1
Total assets	$ 209,581				$ 211,981				$ 205,791				-1 %		2 %		$ 211,008				$ 204,266				3 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking      deposits	$   98,295		2.65 %		$   95,955		2.59 %		$   89,274		2.20 %		2 %		10 %		$   96,379		2.62 %		$   88,184		1.73 %		9 %
Time deposits	17,052		4.19		19,802		4.41		19,528		4.09		-14		-13		19,138		4.34		15,751		3.74		22
Total interest-bearing deposits	115,347		2.88		115,757		2.90		108,802		2.54		—		6		115,517		2.90		103,935		2.03		11
Short-term borrowings	4,034		5.60		4,962		5.62		5,346		5.16		-19		-25		5,071		5.53		5,961		5.01		-15
Long-term borrowings	11,394		5.83		11,490		5.83		7,240		5.52		-1		57		10,887		5.82		7,092		5.42		54
Total interest-bearing liabilities	130,775		3.22		132,209		3.26		121,388		2.83		-1		8		131,475		3.24		116,988		2.39		12
Noninterest-bearing deposits	46,158				47,734				53,886				-3		-14		47,498				57,277				-17
Other liabilities	3,923				4,293				4,497				-9		-13		4,202				4,305				-2
Total liabilities	180,856				184,236				179,771				-2		1		183,175				178,570				3
Shareholders' equity	28,725				27,745				26,020				4		10		27,833				25,696				8
Total liabilities and shareholders' equity	$ 209,581				$ 211,981				$ 205,791				-1 %		2 %		$ 211,008				$ 204,266				3 %
Net interest spread			2.60				2.56				2.79								2.55				3.02
Contribution of interest-free funds			1.02				1.03				1.00								1.03				0.89
Net interest margin			3.62 %				3.59 %				3.79 %								3.58 %				3.91 %

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
(Dollars in millions, except per share)
Income statement data
Net income
Net income	$       721		$       690		$    1,907		$    2,259
Amortization of core deposit and other intangible assets (1)	10		12		32		36
Net operating income	$       731		$       702		$    1,939		$    2,295
Earnings per common share
Diluted earnings per common share	$      4.02		$      3.98		$    10.78		$    13.05
Amortization of core deposit and other intangible assets (1)	.06		.07		.19		.21
Diluted net operating earnings per common share	$      4.08		$      4.05		$    10.97		$    13.26
Other expense
Other expense	$    1,303		$    1,278		$    3,996		$    3,929
Amortization of core deposit and other intangible assets	(12)		(15)		(40)		(47)
Noninterest operating expense	$    1,291		$    1,263		$    3,956		$    3,882
Efficiency ratio
Noninterest operating expense (numerator)	$    1,291		$    1,263		$    3,956		$    3,882
Taxable-equivalent net interest income	$    1,739		$    1,790		$    5,162		$    5,434
Other income	606		560		1,770		1,950
Less:  Gain (loss) on bank investment securities	(2)		—		(8)		—
Denominator	$    2,347		$    2,350		$    6,940		$    7,384
Efficiency ratio	55.0 %		53.7 %		57.0 %		52.6 %
Balance sheet data
Average assets
Average assets	$ 209,581		$ 205,791		$ 211,008		$ 204,266
Goodwill	(8,465)		(8,465)		(8,465)		(8,476)
Core deposit and other intangible assets	(113)		(170)		(126)		(185)
Deferred taxes	28		43		30		46
Average tangible assets	$ 201,031		$ 197,199		$ 202,447		$ 195,651
Average common equity
Average total equity	$  28,725		$  26,020		$  27,833		$  25,696
Preferred stock	(2,565)		(2,011)		(2,328)		(2,011)
Average common equity	26,160		24,009		25,505		23,685
Goodwill	(8,465)		(8,465)		(8,465)		(8,476)
Core deposit and other intangible assets	(113)		(170)		(126)		(185)
Deferred taxes	28		43		30		46
Average tangible common equity	$  17,610		$  15,417		$  16,944		$  15,070
At end of quarter
Total assets
Total assets	$ 211,785		$ 209,124
Goodwill	(8,465)		(8,465)
Core deposit and other intangible assets	(107)		(162)
Deferred taxes	30		41
Total tangible assets	$ 203,243		$ 200,538
Total common equity
Total equity	$  28,876		$  26,197
Preferred stock	(2,394)		(2,011)
Common equity	26,482		24,186
Goodwill	(8,465)		(8,465)
Core deposit and other intangible assets	(107)		(162)
Deferred taxes	30		41
Total tangible common equity	$  17,940		$  15,600

___________

(1)	After any related tax effect.

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
(Dollars in millions, except per share)
Income statement data
Net income
Net income	$                     721		$                     655		$                     531		$                     482		$                     690
Amortization of core deposit and other intangible assets (1)	10		10		12		12		12
Net operating income	$                     731		$                     665		$                     543		$                     494		$                     702
Earnings per common share
Diluted earnings per common share	$                    4.02		$                    3.73		$                    3.02		$                    2.74		$                    3.98
Amortization of core deposit and other intangible assets (1)	.06		.06		.07		.07		.07
Diluted net operating earnings per common share	$                    4.08		$                    3.79		$                    3.09		$                    2.81		$                    4.05
Other expense
Other expense	$                  1,303		$                  1,297		$                  1,396		$                  1,450		$                  1,278
Amortization of core deposit and other intangible assets	(12)		(13)		(15)		(15)		(15)
Noninterest operating expense	$                  1,291		$                  1,284		$                  1,381		$                  1,435		$                  1,263
Efficiency ratio
Noninterest operating expense (numerator)	$                  1,291		$                  1,284		$                  1,381		$                  1,435		$                  1,263
Taxable-equivalent net interest income	$                  1,739		$                  1,731		$                  1,692		$                  1,735		$                  1,790
Other income	606		584		580		578		560
Less:  Gain (loss) on bank investment securities	(2)		(8)		2		4		—
Denominator	$                  2,347		$                  2,323		$                  2,270		$                  2,309		$                  2,350
Efficiency ratio	55.0 %		55.3 %		60.8 %		62.1 %		53.7 %
Balance sheet data
Average assets
Average assets	$             209,581		$             211,981		$             211,478		$             208,752		$             205,791
Goodwill	(8,465)		(8,465)		(8,465)		(8,465)		(8,465)
Core deposit and other intangible assets	(113)		(126)		(140)		(154)		(170)
Deferred taxes	28		30		33		39		43
Average tangible assets	$             201,031		$             203,420		$             202,906		$             200,172		$             197,199
Average common equity
Average total equity	$               28,725		$               27,745		$               27,019		$               26,500		$               26,020
Preferred stock	(2,565)		(2,405)		(2,011)		(2,011)		(2,011)
Average common equity	26,160		25,340		25,008		24,489		24,009
Goodwill	(8,465)		(8,465)		(8,465)		(8,465)		(8,465)
Core deposit and other intangible assets	(113)		(126)		(140)		(154)		(170)
Deferred taxes	28		30		33		39		43
Average tangible common equity	$               17,610		$               16,779		$               16,436		$               15,909		$               15,417
At end of quarter
Total assets
Total assets	$             211,785		$             208,855		$             215,137		$             208,264		$             209,124
Goodwill	(8,465)		(8,465)		(8,465)		(8,465)		(8,465)
Core deposit and other intangible assets	(107)		(119)		(132)		(147)		(162)
Deferred taxes	30		31		34		37		41
Total tangible assets	$             203,243		$             200,302		$             206,574		$             199,689		$             200,538
Total common equity
Total equity	$               28,876		$               28,424		$               27,169		$               26,957		$               26,197
Preferred stock	(2,394)		(2,744)		(2,011)		(2,011)		(2,011)
Common equity	26,482		25,680		25,158		24,946		24,186
Goodwill	(8,465)		(8,465)		(8,465)		(8,465)		(8,465)
Core deposit and other intangible assets	(107)		(119)		(132)		(147)		(162)
Deferred taxes	30		31		34		37		41
Total tangible common equity	$               17,940		$               17,127		$               16,595		$               16,371		$               15,600

__________

(1)	After any related tax effect.

 

 

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SOURCE M&T Bank Corporation

FAQ

What was M&T Bank's (MTB) net income for Q3 2024?

M&T Bank reported a net income of $721 million for the third quarter of 2024.

How much did M&T Bank's (MTB) diluted earnings per share increase in Q3 2024?

M&T Bank's diluted earnings per common share increased to $4.02 in Q3 2024, up from $3.73 in Q2 2024.

What was M&T Bank's (MTB) CET1 capital ratio in Q3 2024?

M&T Bank's CET1 capital ratio rose to an estimated 11.54% in Q3 2024, marking the sixth consecutive quarterly increase.

How much did M&T Bank (MTB) spend on share repurchases in Q3 2024?

M&T Bank repurchased shares for a total cost of $200 million in the third quarter of 2024.

What was M&T Bank's (MTB) net interest margin in Q3 2024?

M&T Bank's net interest margin widened to 3.62% in Q3 2024, up from 3.59% in Q2 2024.