M&T Bank Corporation (NYSE:MTB) announces first quarter 2024 results
BUFFALO, N.Y., April 15, 2024 /PRNewswire/ — M&T Bank Corporation (“M&T” or “the Company”) reports quarterly net income of $531 million or $3.02 of diluted earnings per common share.
(Dollars in millions, except per share data)
1Q24
4Q23
1Q23
Earnings Highlights
Net interest income
$ 1,680
$ 1,722
$ 1,818
Taxable-equivalent adjustment
12
13
14
Net interest income – taxable-equivalent
1,692
1,735
1,832
Provision for credit losses
200
225
120
Noninterest income
580
578
587
Noninterest expense
1,396
1,450
1,359
Net income
531
482
702
Net income available to common shareholders – diluted
505
457
676
Diluted earnings per common share
3.02
2.74
4.01
Return on average assets – annualized
1.01
%
.92
%
1.40
%
Return on average common shareholders’ equity – annualized
8.14
7.41
11.74
Average Balance Sheet
Total assets
$ 211,478
$ 208,752
$ 202,599
Interest-bearing deposits at banks
30,647
30,153
24,312
Investment securities
28,587
27,490
27,622
Loans and leases, net of unearned discount
133,796
132,770
132,012
Deposits
164,065
164,713
161,537
Borrowings
16,001
13,057
11,505
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin
3.52
%
3.61
%
4.04
%
Efficiency ratio
60.8
62.1
55.5
Net charge-offs to average total loans – annualized
.42
.44
.22
Allowance for credit losses to total loans
1.62
1.59
1.49
Nonaccrual loans to total loans
1.71
1.62
1.92
Common equity Tier 1 (“CET1”) capital ratio (1)
11.07
10.98
10.16
Common shareholders’ equity per share
$ 150.90
$ 150.15
$ 140.88
(1) March 31, 2024 CET1 capital ratio is estimated.
Financial Highlights
The CET1 capital ratio increased 9 basis points to an estimated 11.07% at March 31, 2024, compared with 10.98% at December 31, 2023, highlighting the Company’s improved capital position.Net interest margin of 3.52% in the recent quarter narrowed from 3.61% in the fourth quarter of 2023 reflecting higher liquidity, cash moving to investment securities and higher deposit and borrowing costs.Growth in average commercial and industrial and consumer loans in the recent quarter was partially offset by a decline in average commercial real estate loans.Average deposits remained stable with a slowing mix shift to higher cost deposits. Average borrowings rose in the first quarter of 2024 as compared with the fourth quarter of 2023 due to increased borrowings from the Federal Home Loan Bank (“FHLB”) of New York and the issuance of senior notes.Provision for credit losses in the recent quarter reflects elevated levels of criticized commercial and industrial loans and loan growth.Expenses included $99 million of seasonal salaries and employee benefits expense and a $29 million estimated increase in the FDIC special assessment, reflecting the FDIC’s higher loss estimate attributable to certain failed banks.
Chief Financial Officer Commentary
“We are off to a solid start in 2024 as we were able to grow certain sectors of our commercial and consumer loan portfolios, while continuing to shrink our commercial real estate exposure. Expenses were prudently managed in the recent quarter and our selective approach to allocating resources to our strategic priorities with utmost care has not wavered. M&T’s liquidity and capital position strengthened, reflecting a stable deposit base, higher levels of borrowings and solid earnings after considering seasonal employee compensation expenses and an incremental FDIC special assessment. I thank my colleagues at M&T for their stewardship of shareholder capital and their continuous support of our mission to make a difference in the lives of our customers and the communities in which we serve.”
– 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
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions, except per share data)
1Q24
4Q23
4Q23
1Q23
1Q23
Net operating income
$ 543
$ 494
10
%
$ 715
-24
%
Diluted net operating earnings per common share
3.09
2.81
10
4.09
-24
Annualized return on average tangible assets
1.08
%
.98
%
1.49
%
Annualized return on average tangible common equity
12.67
11.70
19.00
Efficiency ratio
60.8
62.1
55.5
Tangible equity per common share
$ 99.54
$ 98.54
1
$ 88.81
12
____________________
(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
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions)
1Q24
4Q23
4Q23
1Q23
1Q23
Average earning assets
$ 193,135
$ 190,536
1
%
$ 184,069
5
%
Average interest-bearing liabilities
131,451
127,646
3
111,188
18
Net interest income ̶ taxable-equivalent
1,692
1,735
-2
1,832
-8
Yield on average earning assets
5.74
%
5.73
%
5.16
%
Cost of interest-bearing liabilities
3.26
3.17
1.86
Net interest spread
2.48
2.56
3.30
Net interest margin
3.52
3.61
4.04
Taxable-equivalent net interest income decreased $43 million, or 2%, from the fourth quarter of 2023.
Average borrowings rose $2.9 billion and the rate paid on such borrowings increased 13 basis points.Average interest-bearing deposits increased $861 million and the rates paid on such deposits rose 3 basis points.The yield on average loans and leases declined 1 basis point.Average investment securities increased $1.1 billion and the rates earned on those securities increased 17 basis points.
Taxable-equivalent net interest income decreased $140 million, or 8%, compared with the year-earlier first quarter.
Average interest-bearing deposits rose $15.8 billion and the rates paid on those deposits increased 144 basis points.Average borrowings increased $4.5 billion and rates paid on such borrowings increased 64 basis points.Yields earned on average interest-bearing deposits at banks and average loans and leases increased 85 basis points and 62 basis points, respectively.Average interest-bearing deposits at banks and average loans and leases increased $6.3 billion and $1.8 billion, respectively.
Average Earning Assets
Change
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions)
1Q24
4Q23
4Q23
1Q23
1Q23
Interest-bearing deposits at banks
$ 30,647
$ 30,153
2
%
$ 24,312
26
%
Trading account
105
123
-15
123
-14
Investment securities
28,587
27,490
4
27,622
3
Loans and leases, net of unearned discount
Commercial and industrial
56,821
55,420
3
52,510
8
Real estate – commercial
32,696
33,455
-2
35,245
-7
Real estate – consumer
23,136
23,339
-1
23,770
-3
Consumer
21,143
20,556
3
20,487
3
Total loans and leases, net
133,796
132,770
1
132,012
1
Total earning assets
$ 193,135
$ 190,536
1
$ 184,069
5
Average earning assets increased $2.6 billion, or 1%, from the fourth quarter of 2023.
Average interest-bearing deposits at banks increased $494 million reflecting higher levels of borrowings partially offset by the purchase of investment securities and loan growth.Average loans and leases increased $1.0 billion primarily reflective of growth in average commercial and industrial loans and leases and consumer loans, partially offset by declines in average commercial real estate and residential real estate loans. The growth in commercial and industrial loans spanned most industry types.Average investment securities rose $1.1 billion primarily due to purchases of U.S. Treasury notes and fixed rate mortgage-backed securities during the first quarter of 2024.
Average earning assets increased $9.1 billion, or 5%, from the year-earlier first quarter.
Average interest-bearing deposits at banks increased $6.3 billion reflecting a rise in average deposits and higher levels of borrowings, partially offset by loan growth and purchases of investment securities.Average loans and leases increased $1.8 billion predominantly due to higher average commercial and industrial loans and leases of $4.3 billion reflecting lending activities to financial and insurance industry customers and motor vehicle and recreational finance dealers, partially offset by a $2.5 billion decline in average commercial real estate loans.Average investment securities increased $965 million due to the purchases of investment securities in 2023 and through the first quarter of 2024.
Average Interest-bearing Liabilities
Change
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions)
1Q24
4Q23
4Q23
1Q23
1Q23
Interest-bearing deposits
Savings and interest-checking deposits
$ 94,867
$ 93,365
2
%
$ 88,053
8
%
Time deposits
20,583
21,224
-3
11,630
77
Total interest-bearing deposits
115,450
114,589
1
99,683
16
Short-term borrowings
6,228
5,156
21
4,994
25
Long-term borrowings
9,773
7,901
24
6,511
50
Total interest-bearing liabilities
$ 131,451
$ 127,646
3
$ 111,188
18
Average interest-bearing liabilities increased $3.8 billion, or 3%, from the fourth quarter of 2023.
Average borrowings increased $2.9 billion predominantly due to the issuance of senior notes in the first quarter of 2024 and higher levels of average borrowings from the FHLB of New York.Average interest-bearing deposits increased $861 million, reflective of a $1.6 billion increase in average non-brokered deposits.
Average interest-bearing liabilities increased $20.3 billion, or 18%, from the first quarter of 2023.
Average interest-bearing deposits rose $15.8 billion, including a $10.6 billion increase in average non-brokered deposits, reflecting customer demand for interest-bearing products amidst rising rates.Average borrowings increased $4.5 billion reflecting the issuances of senior notes and other long-term debt since the first quarter of 2023 and increases in average borrowings from the FHLB of New York.
Provision for Credit Losses/Asset Quality
Change
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions)
1Q24
4Q23
4Q23
1Q23
1Q23
At end of quarter
Nonaccrual loans
$ 2,302
$ 2,166
6
%
$ 2,557
-10
%
Real estate and other foreclosed assets
38
39
—
44
-13
Total nonperforming assets
2,340
2,205
6
2,601
-10
Accruing loans past due 90 days or more (1)
297
339
-12
407
-27
Nonaccrual loans as % of loans outstanding
1.71
%
1.62
%
1.92
%
Allowance for credit losses
$ 2,191
$ 2,129
3
$ 1,975
11
Allowance for credit losses as % of loans outstanding
1.62
%
1.59
%
1.49
%
For the period
Provision for credit losses
$ 200
$ 225
-11
$ 120
67
Net charge-offs
138
148
-7
70
97
Net charge-offs as % of average loans (annualized)
.42
%
.44
%
.22
%
____________________
(1)
Predominantly government-guaranteed residential real estate loans.
M&T recorded a provision for credit losses of $200 million in the first quarter of 2024 and $225 million in the immediately preceding quarter, compared with $120 million in the first quarter of 2023. The comparatively higher provisions for credit losses in the most recent two quarters as compared with the first quarter of 2023 reflect declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers, including nonautomotive dealers and healthcare facilities, as well as growth in certain sectors of M&T’s commercial and industrial and consumer loan portfolios. Net charge-offs totaled $138 million in 2024’s first quarter as compared with $148 million in 2023’s final quarter and $70 million in the year-earlier quarter. The lower level of net charge-offs in the first quarter of 2024 as compared with the preceding quarter included a decline in commercial real estate loan net charge-offs, partially offset by an increase in net charge-offs of commercial and industrial and consumer loans. As compared with year-earlier first quarter, the recent quarter net charge-offs reflect higher levels of commercial and industrial and consumer loan net charge-offs.
Nonaccrual loans were $2.3 billion at March 31, 2024, $136 million higher than December 31, 2023 but $255 million lower than March 31, 2023. The higher level of nonaccrual loans at the recent quarter end as compared with the immediately preceding quarter end was largely attributable to an increase in commercial and industrial nonaccrual loans partially offset by a decrease in commercial real estate nonaccrual loans. The decrease in nonaccrual loans at March 31, 2024 as compared with year-earlier quarter was predominantly due to lower levels of commercial real estate nonaccrual loans, including net charge-offs, and residential real estate nonaccrual loans, partially offset by a rise in commercial and industrial nonaccrual loans.
Noninterest Income
Change
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions)
1Q24
4Q23
4Q23
1Q23
1Q23
Mortgage banking revenues
$ 104
$ 112
-7
%
$ 85
23
%
Service charges on deposit accounts
124
121
2
113
9
Trust income
160
159
1
194
-17
Brokerage services income
29
26
10
24
20
Trading account and non-hedging derivative gains
9
11
-19
12
-21
Gain (loss) on bank investment securities
2
4
-35
—
—
Other revenues from operations
152
145
4
159
-5
Total
$ 580
$ 578
—
$ 587
-1
Noninterest income in the first quarter of 2024 was largely unchanged from 2023’s fourth quarter.
Other revenues from operations increased $7 million resulting from a $25 million distribution from Bayview Lending Group LLC (“BLG”) received in the first quarter of 2024 partially offset by declines in letter of credit and other credit-related fees, lower income earned from bank owned life insurance and a decline in merchant discount and credit card fees.Mortgage banking revenues decreased $8 million reflecting a decline in gains on sale of commercial mortgage loans as a result of decreased origination volume, partially offset by higher residential mortgage banking revenues.
Noninterest income declined $7 million, or 1%, as compared with the year-earlier first quarter.
Trust income decreased $34 million reflecting lower revenues associated with the Company’s Collective Investment Trust (“CIT”) business of approximately $45 million following its sale in April 2023, partially offset by $11 million of higher revenues mainly attributable to higher sales and fees from the Company’s global capital markets business.Other revenues from operations declined $7 million reflecting lower gains on the sale of leased equipment.Mortgage banking revenues rose $19 million due to higher servicing income related to the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023.Service charges on deposit accounts increased $11 million predominantly due to a rise in commercial service charges.Brokerage services income increased $5 million due to higher annuity sales.
Noninterest Expense
Change
1Q24 vs.
Change
1Q24 vs.
(Dollars in millions)
1Q24
4Q23
4Q23
1Q23
1Q23
Salaries and employee benefits
$ 833
$ 724
15
%
$ 808
3
%
Equipment and net occupancy
129
134
-4
127
2
Outside data processing and software
120
114
5
106
13
Professional and other services
85
99
-13
125
-31
FDIC assessments
60
228
-74
30
101
Advertising and marketing
20
26
-21
31
-35
Amortization of core deposit and other intangible assets
15
15
—
17
-13
Other costs of operations
134
110
21
115
16
Total
$ 1,396
$ 1,450
-4
$ 1,359
3
Noninterest expense aggregated $1.40 billion in the recent quarter, down from $1.45 billion in the fourth quarter of 2023.
FDIC assessments reflect a $197 million estimated special assessment in the fourth quarter of 2023 and $29 million of estimated incremental special assessment expense recorded in the first quarter of 2024 for the FDIC’s updated loss estimates associated with certain failed banks.Professional and other services expenses decreased $14 million reflecting the timing and level of consulting and legal-related fees.Salaries and employee benefits expense increased $109 million reflecting annual merit increases and $99 million of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense.Other costs of operations increased $24 million reflecting higher costs associated with the Company’s supplemental executive retirement savings plan, losses on lease terminations related to certain vacated properties and incremental charitable contributions as compared with the fourth quarter of 2023.
Noninterest expense increased $37 million from the first quarter of 2023.
FDIC assessments increased $30 million reflecting the $29 million of estimated incremental special assessment expense recorded in the first quarter of 2024.Salaries and employee benefits expenses increased $25 million reflecting higher salaries expense due to annual merit and other increases and a rise in incentive compensation, partially offset by lower staffing levels.Other costs of operations increased $19 million as a result of higher amortization of capitalized servicing assets predominantly due to the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023.Outside data processing and software increased $14 million due to higher software licensing and maintenance fees.Professional and other services expense declined $40 million reflecting lower sub-advisory fees as a result of the sale of the CIT business.Advertising and marketing expense decreased $11 million reflecting a general reduction in those related activities.
Income Taxes
The Company’s effective tax rate was 20.0% in the first quarter of 2024, compared with 22.9% and 24.2% in the fourth quarter of 2023 and first quarter of 2023, respectively. The first quarter of 2024 income tax expense reflects a net discrete tax benefit related to the resolution of a tax matter inherited from the acquisition of People’s United Financial, Inc.
Capital
1Q24
4Q23
1Q23
CET1
11.07
%
(1)
10.98
%
10.16
%
Tier 1 capital
12.37
(1)
12.29
11.48
Total capital
14.03
(1)
13.99
13.28
Tangible capital – common
8.03
8.20
7.58
____________________
(1)
March 31, 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 $219 million and $25 million, respectively, for the quarter ended March 31, 2024. M&T did not repurchase any shares of its common stock in the first quarter of 2024 or the fourth quarter of 2023. In the first quarter of 2023, M&T repurchased 3,838,157 shares of its common stock in accordance with its capital plan for a total cost, including the share repurchase excise tax, of $600 million.
The CET1 capital ratio for M&T was estimated at 11.07% as of March 31, 2024. M&T’s total risk-weighted assets at March 31, 2024 are estimated to be $155 billion.
Conference Call
Investors will have an opportunity to listen to M&T’s conference call to discuss first 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 #MTBQ124. 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 Monday April 22, 2024 by calling (800) 839-2385, or (402) 220-7203 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 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
March 31,
(Dollars in millions, except per share, shares in thousands)
2024
2023
Change
Performance
Net income
$ 531
$ 702
-24
%
Net income available to common shareholders
505
676
-25
Per common share:
Basic earnings
3.04
4.03
-25
Diluted earnings
3.02
4.01
-25
Cash dividends
1.30
1.30
—
Common shares outstanding:
Average – diluted (1)
167,084
168,410
-1
Period end (2)
166,724
165,865
1
Return on (annualized):
Average total assets
1.01
%
1.40
%
Average common shareholders’ equity
8.14
11.74
Taxable-equivalent net interest income
$ 1,692
$ 1,832
-8
Yield on average earning assets
5.74
%
5.16
%
Cost of interest-bearing liabilities
3.26
1.86
Net interest spread
2.48
3.30
Contribution of interest-free funds
1.04
.74
Net interest margin
3.52
4.04
Net charge-offs to average total net loans (annualized)
.42
.22
Net operating results (3)
Net operating income
$ 543
$ 715
-24
Diluted net operating earnings per common share
3.09
4.09
-24
Return on (annualized):
Average tangible assets
1.08
%
1.49
%
Average tangible common equity
12.67
19.00
Efficiency ratio
60.8
55.5
At March 31,
Loan quality
2024
2023
Change
Nonaccrual loans
$ 2,302
$ 2,557
-10
%
Real estate and other foreclosed assets
38
44
-13
Total nonperforming assets
$ 2,340
$ 2,601
-10
Accruing loans past due 90 days or more (4)
$ 297
$ 407
-27
Government guaranteed loans included in totals above:
Nonaccrual loans
$ 62
$ 42
47
Accruing loans past due 90 days or more
244
306
-20
Nonaccrual loans to total loans
1.71
%
1.92
%
Allowance for credit losses to total loans
1.62
1.49
____________________
(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 appears herein.
(4)
Predominantly residential real estate loans.
Financial Highlights, Five Quarter Trend
Three months ended
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in millions, except per share, shares in thousands)
2024
2023
2023
2023
2023
Performance
Net income
$ 531
$ 482
$ 690
$ 867
$ 702
Net income available to common shareholders
505
457
664
841
676
Per common share:
Basic earnings
3.04
2.75
4.00
5.07
4.03
Diluted earnings
3.02
2.74
3.98
5.05
4.01
Cash dividends
1.30
1.30
1.30
1.30
1.30
Common shares outstanding:
Average – diluted (1)
167,084
166,731
166,570
166,320
168,410
Period end (2)
166,724
166,149
165,970
165,894
165,865
Return on (annualized):
Average total assets
1.01
%
.92
%
1.33
%
1.70
%
1.40
%
Average common shareholders’ equity
8.14
7.41
10.99
14.27
11.74
Taxable-equivalent net interest income
$ 1,692
$ 1,735
$ 1,790
$ 1,813
$ 1,832
Yield on average earning assets
5.74
%
5.73
%
5.62
%
5.46
%
5.16
%
Cost of interest-bearing liabilities
3.26
3.17
2.83
2.43
1.86
Net interest spread
2.48
2.56
2.79
3.03
3.30
Contribution of interest-free funds
1.04
1.05
1.00
.88
.74
Net interest margin
3.52
3.61
3.79
3.91
4.04
Net charge-offs to average total net loans (annualized)
.42
.44
.29
.38
.22
Net operating results (3)
Net operating income
$ 543
$ 494
$ 702
$ 879
$ 715
Diluted net operating earnings per common share
3.09
2.81
4.05
5.12
4.09
Return on (annualized):
Average tangible assets
1.08
%
.98
%
1.41
%
1.80
%
1.49
%
Average tangible common equity
12.67
11.70
17.41
22.73
19.00
Efficiency ratio
60.8
62.1
53.7
48.9
55.5
March 31,
December 31,
September 30,
June 30,
March 31,
Loan quality
2024
2023
2023
2023
2023
Nonaccrual loans
$ 2,302
$ 2,166
$ 2,342
$ 2,435
$ 2,557
Real estate and other foreclosed assets
38
39
37
43
44
Total nonperforming assets
$ 2,340
$ 2,205
$ 2,379
$ 2,478
$ 2,601
Accruing loans past due 90 days or more (4)
$ 297
$ 339
$ 354
$ 380
$ 407
Government guaranteed loans included in totals above:
Nonaccrual loans
$ 62
$ 53
$ 40
$ 40
$ 42
Accruing loans past due 90 days or more
244
298
269
294
306
Nonaccrual loans to total loans
1.71
%
1.62
%
1.77
%
1.83
%
1.92
%
Allowance for credit losses to total loans
1.62
1.59
1.55
1.50
1.49
____________________
(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 appears herein.
(4)
Predominantly residential real estate loans.
Condensed Consolidated Statement of Income
Three months ended
March 31,
(Dollars in millions)
2024
2023
Change
Interest income
$ 2,745
$ 2,327
18
%
Interest expense
1,065
509
109
Net interest income
1,680
1,818
-8
Provision for credit losses
200
120
67
Net interest income after provision for credit losses
1,480
1,698
-13
Other income
Mortgage banking revenues
104
85
23
Service charges on deposit accounts
124
113
9
Trust income
160
194
-17
Brokerage services income
29
24
20
Trading account and non-hedging
derivative gains
9
12
-21
Gain (loss) on bank investment securities
2
—
—
Other revenues from operations
152
159
-5
Total other income
580
587
-1
Other expense
Salaries and employee benefits
833
808
3
Equipment and net occupancy
129
127
2
Outside data processing and software
120
106
13
Professional and other services
85
125
-31
FDIC assessments
60
30
101
Advertising and marketing
20
31
-35
Amortization of core deposit and other
intangible assets
15
17
-13
Other costs of operations
134
115
16
Total other expense
1,396
1,359
3
Income before income taxes
664
926
-28
Applicable income taxes
133
224
-41
Net income
$ 531
$ 702
-24
%
Condensed Consolidated Statement of Income, Five Quarter Trend
Three months ended
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in millions)
2024
2023
2023
2023
2023
Interest income
$ 2,745
$ 2,740
$ 2,641
$ 2,516
$ 2,327
Interest expense
1,065
1,018
866
717
509
Net interest income
1,680
1,722
1,775
1,799
1,818
Provision for credit losses
200
225
150
150
120
Net interest income after provision for credit losses
1,480
1,497
1,625
1,649
1,698
Other income
Mortgage banking revenues
104
112
105
107
85
Service charges on deposit accounts
124
121
121
119
113
Trust income
160
159
155
172
194
Brokerage services income
29
26
27
25
24
Trading account and non-hedging
derivative gains
9
11
9
17
12
Gain (loss) on bank investment securities
2
4
—
1
—
Other revenues from operations
152
145
143
362
159
Total other income
580
578
560
803
587
Other expense
Salaries and employee benefits
833
724
727
738
808
Equipment and net occupancy
129
134
131
129
127
Outside data processing and software
120
114
111
106
106
Professional and other services
85
99
89
100
125
FDIC assessments
60
228
29
28
30
Advertising and marketing
20
26
23
28
31
Amortization of core deposit and other
intangible assets
15
15
15
15
17
Other costs of operations
134
110
153
149
115
Total other expense
1,396
1,450
1,278
1,293
1,359
Income before income taxes
664
625
907
1,159
926
Applicable income taxes
133
143
217
292
224
Net income
$ 531
$ 482
$ 690
$ 867
$ 702
Condensed Consolidated Balance Sheet
March 31,
(Dollars in millions)
2024
2023
Change
ASSETS
Cash and due from banks
$ 1,695
$ 1,818
-7
%
Interest-bearing deposits at banks
32,144
22,306
44
Trading account
99
165
-40
Investment securities
28,496
28,443
—
Loans and leases, net of unearned discount:
Commercial and industrial
57,897
53,934
7
Real estate – commercial
32,416
34,897
-7
Real estate – consumer
23,076
23,790
-3
Consumer
21,584
20,317
6
Total loans and leases, net
134,973
132,938
2
Less: allowance for credit losses
2,191
1,975
11
Net loans and leases
132,782
130,963
1
Goodwill
8,465
8,490
—
Core deposit and other intangible assets
132
192
-31
Other assets
11,324
10,579
7
Total assets
$ 215,137
$ 202,956
6
%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits
$ 50,578
$ 59,955
-16
%
Interest-bearing deposits
116,618
99,120
18
Total deposits
167,196
159,075
5
Short-term borrowings
4,795
6,995
-31
Accrued interest and other liabilities
4,527
4,046
12
Long-term borrowings
11,450
7,463
53
Total liabilities
187,968
177,579
6
Shareholders’ equity:
Preferred
2,011
2,011
—
Common
25,158
23,366
8
Total shareholders’ equity
27,169
25,377
7
Total liabilities and shareholders’ equity
$ 215,137
$ 202,956
6
%
Condensed Consolidated Balance Sheet, Five Quarter Trend
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in millions)
2024
2023
2023
2023
2023
ASSETS
Cash and due from banks
$ 1,695
$ 1,731
$ 1,769
$ 1,848
$ 1,818
Interest-bearing deposits at banks
32,144
28,069
30,114
27,107
22,306
Trading account
99
106
137
137
165
Investment securities
28,496
26,897
27,336
27,917
28,443
Loans and leases, net of unearned discount:
Commercial and industrial
57,897
57,010
54,891
54,699
53,934
Real estate – commercial
32,416
33,003
33,741
34,634
34,897
Real estate – consumer
23,076
23,264
23,448
23,762
23,790
Consumer
21,584
20,791
20,275
20,249
20,317
Total loans and leases, net
134,973
134,068
132,355
133,344
132,938
Less: allowance for credit losses
2,191
2,129
2,052
1,998
1,975
Net loans and leases
132,782
131,939
130,303
131,346
130,963
Goodwill
8,465
8,465
8,465
8,465
8,490
Core deposit and other intangible assets
132
147
162
177
192
Other assets
11,324
10,910
10,838
10,675
10,579
Total assets
$ 215,137
$ 208,264
$ 209,124
$ 207,672
$ 202,956
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits
$ 50,578
$ 49,294
$ 53,787
$ 54,938
$ 59,955
Interest-bearing deposits
116,618
113,980
110,341
107,120
99,120
Total deposits
167,196
163,274
164,128
162,058
159,075
Short-term borrowings
4,795
5,316
6,731
7,908
6,995
Accrued interest and other liabilities
4,527
4,516
4,946
4,488
4,046
Long-term borrowings
11,450
8,201
7,123
7,417
7,463
Total liabilities
187,968
181,307
182,928
181,871
177,579
Shareholders’ equity:
Preferred
2,011
2,011
2,011
2,011
2,011
Common
25,158
24,946
24,185
23,790
23,366
Total shareholders’ equity
27,169
26,957
26,196
25,801
25,377
Total liabilities and shareholders’ equity
$ 215,137
$ 208,264
$ 209,124
$ 207,672
$ 202,956
Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates
Three months ended
Change in balance
March 31,
December 31,
March 31,
March 31, 2024 from
2024
2023
2023
December 31,
March 31,
(Dollars in millions)
Balance
Rate
Balance
Rate
Balance
Rate
2023
2023
ASSETS
Interest-bearing deposits at banks
$ 30,647
5.49
%
$ 30,153
5.48
%
$ 24,312
4.64
%
2
%
26
%
Federal funds sold and agreements to
resell securities
—
5.80
—
5.79
—
4.89
-78
-92
Trading account
105
3.42
123
3.80
123
2.32
-15
-14
Investment securities
28,587
3.30
27,490
3.13
27,622
3.00
4
3
Loans and leases, net of unearned discount:
Commercial and industrial
56,821
6.99
55,420
7.01
52,510
6.30
3
8
Real estate – commercial
32,696
6.36
33,455
6.54
35,245
5.89
-2
-7
Real estate – consumer
23,136
4.28
23,339
4.25
23,770
3.96
-1
-3
Consumer
21,143
6.54
20,556
6.42
20,487
5.67
3
3
Total loans and leases, net
133,796
6.32
132,770
6.33
132,012
5.70
1
1
Total earning assets
193,135
5.74
190,536
5.73
184,069
5.16
1
5
Goodwill
8,465
8,465
8,490
—
—
Core deposit and other intangible assets
140
154
201
-10
-30
Other assets
9,738
9,597
9,839
1
-1
Total assets
$ 211,478
$ 208,752
$ 202,599
1
%
4
%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
Savings and interest-checking deposits
$ 94,867
2.61
$ 93,365
2.58
$ 88,053
1.28
2
%
8
%
Time deposits
20,583
4.41
21,224
4.30
11,630
3.11
-3
77
Total interest-bearing deposits
115,450
2.93
114,589
2.90
99,683
1.49
1
16
Short-term borrowings
6,228
5.42
5,156
5.27
4,994
4.69
21
25
Long-term borrowings
9,773
5.81
7,901
5.70
6,511
5.27
24
50
Total interest-bearing liabilities
131,451
3.26
127,646
3.17
111,188
1.86
3
18
Noninterest-bearing deposits
48,615
50,124
61,854
-3
-21
Other liabilities
4,393
4,482
4,180
-2
5
Total liabilities
184,459
182,252
177,222
1
4
Shareholders’ equity
27,019
26,500
25,377
2
6
Total liabilities and shareholders’ equity
$ 211,478
$ 208,752
$ 202,599
1
%
4
%
Net interest spread
2.48
2.56
3.30
Contribution of interest-free funds
1.04
1.05
.74
Net interest margin
3.52
%
3.61
%
4.04
%
Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
Three months ended
March 31,
December 31,
September 30,
June 30,
March 31,
2024
2023
2023
2023
2023
(Dollars in millions, except per share)
Income statement data
Net income
Net income
$ 531
$ 482
$ 690
$ 867
$ 702
Amortization of core deposit and other intangible assets (1)
12
12
12
12
13
Net operating income
$ 543
$ 494
$ 702
$ 879
$ 715
Earnings per common share
Diluted earnings per common share
$ 3.02
$ 2.74
$ 3.98
$ 5.05
$ 4.01
Amortization of core deposit and other intangible assets (1)
.07
.07
.07
.07
.08
Diluted net operating earnings per common share
$ 3.09
$ 2.81
$ 4.05
$ 5.12
$ 4.09
Other expense
Other expense
$ 1,396
$ 1,450
$ 1,278
$ 1,293
$ 1,359
Amortization of core deposit and other intangible assets
(15)
(15)
(15)
(15)
(17)
Noninterest operating expense
$ 1,381
$ 1,435
$ 1,263
$ 1,278
$ 1,342
Efficiency ratio
Noninterest operating expense (numerator)
$ 1,381
$ 1,435
$ 1,263
$ 1,278
$ 1,342
Taxable-equivalent net interest income
$ 1,692
$ 1,735
$ 1,790
$ 1,813
$ 1,832
Other income
580
578
560
803
587
Less: Gain (loss) on bank investment securities
2
4
—
1
—
Denominator
$ 2,270
$ 2,309
$ 2,350
$ 2,615
$ 2,419
Efficiency ratio
60.8
%
62.1
%
53.7
%
48.9
%
55.5
%
Balance sheet data
Average assets
Average assets
$ 211,478
$ 208,752
$ 205,791
$ 204,376
$ 202,599
Goodwill
(8,465)
(8,465)
(8,465)
(8,473)
(8,490)
Core deposit and other intangible assets
(140)
(154)
(170)
(185)
(201)
Deferred taxes
33
39
43
46
49
Average tangible assets
$ 202,906
$ 200,172
$ 197,199
$ 195,764
$ 193,957
Average common equity
Average total equity
$ 27,019
$ 26,500
$ 26,020
$ 25,685
$ 25,377
Preferred stock
(2,011)
(2,011)
(2,011)
(2,011)
(2,011)
Average common equity
25,008
24,489
24,009
23,674
23,366
Goodwill
(8,465)
(8,465)
(8,465)
(8,473)
(8,490)
Core deposit and other intangible assets
(140)
(154)
(170)
(185)
(201)
Deferred taxes
33
39
43
46
49
Average tangible common equity
$ 16,436
$ 15,909
$ 15,417
$ 15,062
$ 14,724
At end of quarter
Total assets
Total assets
$ 215,137
$ 208,264
$ 209,124
$ 207,672
$ 202,956
Goodwill
(8,465)
(8,465)
(8,465)
(8,465)
(8,490)
Core deposit and other intangible assets
(132)
(147)
(162)
(177)
(192)
Deferred taxes
34
37
41
44
47
Total tangible assets
$ 206,574
$ 199,689
$ 200,538
$ 199,074
$ 194,321
Total common equity
Total equity
$ 27,169
$ 26,957
$ 26,197
$ 25,801
$ 25,377
Preferred stock
(2,011)
(2,011)
(2,011)
(2,011)
(2,011)
Common equity
25,158
24,946
24,186
23,790
23,366
Goodwill
(8,465)
(8,465)
(8,465)
(8,465)
(8,490)
Core deposit and other intangible assets
(132)
(147)
(162)
(177)
(192)
Deferred taxes
34
37
41
44
47
Total tangible common equity
$ 16,595
$ 16,371
$ 15,600
$ 15,192
$ 14,731
____________________
(1)
After any related tax effect.
View original content to download multimedia:https://www.prnewswire.com/news-releases/mt-bank-corporation-nysemtb-announces-first-quarter-2024-results-302116556.html
SOURCE M&T Bank Corporation