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

    By No Comments34 Mins Read
    MT Bank

    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)1Q244Q231Q23
    Earnings Highlights
    Net interest income$        1,680$        1,722$        1,818
    Taxable-equivalent adjustment121314
    Net interest income – taxable-equivalent1,6921,7351,832
    Provision for credit losses200225120
    Noninterest income580578587
    Noninterest expense1,3961,4501,359
    Net income531482702
    Net income available to common shareholders – diluted505457676
    Diluted earnings per common share3.022.744.01
    Return on average assets – annualized1.01%.92%1.40%
    Return on average common shareholders’ equity – annualized8.147.4111.74
    Average Balance Sheet
    Total assets$     211,478$     208,752$     202,599
    Interest-bearing deposits at banks30,64730,15324,312
    Investment securities28,58727,49027,622
    Loans and leases, net of unearned discount133,796132,770132,012
    Deposits164,065164,713161,537
    Borrowings16,00113,05711,505
    Selected Ratios
    (Amounts expressed as a percent, except per share data)
    Net interest margin3.52%3.61%4.04%
    Efficiency ratio60.862.155.5
    Net charge-offs to average total loans – annualized.42.44.22
    Allowance for credit losses to total loans1.621.591.49
    Nonaccrual loans to total loans1.711.621.92
    Common equity Tier 1 (“CET1”) capital ratio (1)11.0710.9810.16
    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 Klock716.842.5138
    Media Relations:Frank Lentini929.651.0447
     Non-GAAP Measures (1)
    Change
    1Q24 vs.    		Change
    1Q24 vs.
    (Dollars in millions, except per share data)1Q244Q234Q231Q231Q23
    Net operating income$            543$            49410%$            715-24%
    Diluted net operating earnings per common share3.092.81104.09-24
    Annualized return on average tangible assets1.08%.98%1.49%
    Annualized return on average tangible common equity12.6711.7019.00
    Efficiency ratio60.862.155.5
    Tangible equity per common share$         99.54$         98.541$         88.8112
    ____________________
    (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)1Q244Q234Q231Q231Q23
    Average earning assets$     193,135$     190,5361%$     184,0695%
    Average interest-bearing liabilities131,451127,6463111,18818
    Net interest income  ̶  taxable-equivalent1,6921,735-21,832-8
    Yield on average earning assets5.74%5.73%5.16%
    Cost of interest-bearing liabilities3.263.171.86
    Net interest spread2.482.563.30
    Net interest margin3.523.614.04

    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 $1.8 billion, respectively.
     Average Earning Assets
    Change
    1Q24 vs.    		Change
    1Q24 vs.
    (Dollars in millions)1Q244Q234Q231Q231Q23
    Interest-bearing deposits at banks$      30,647$      30,1532%$      24,31226%
    Trading account105123-15123-14
    Investment securities28,58727,490427,6223
    Loans and leases, net of unearned discount
    Commercial and industrial56,82155,420352,5108
    Real estate – commercial32,69633,455-235,245-7
    Real estate – consumer23,13623,339-123,770-3
    Consumer21,14320,556320,4873
    Total loans and leases, net133,796132,7701132,0121
    Total earning assets$    193,135$    190,5361$    184,0695

    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 $965 million due to the purchases of investment securities in 2023 and through the first quarter of 2024.
     Average Interest-bearing Liabilities
    Change
    1Q24 vs.    		Change
    1Q24 vs.
    (Dollars in millions)1Q244Q234Q231Q231Q23
    Interest-bearing deposits
    Savings and interest-checking deposits$          94,867$          93,3652%$          88,0538%
    Time deposits20,58321,224-311,63077
    Total interest-bearing deposits115,450114,589199,68316
    Short-term borrowings6,2285,156214,99425
    Long-term borrowings9,7737,901246,51150
    Total interest-bearing liabilities$        131,451$        127,6463$        111,18818

    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 $4.5 billion reflecting the issuances of senior notes and other long-term debt since the first quarter of 2023 and increases in average borrowings from the FHLB of New York.
    Provision for Credit Losses/Asset Quality
    Change
    1Q24 vs.    		Change
    1Q24 vs.
    (Dollars in millions)1Q244Q234Q231Q231Q23
    At end of quarter
    Nonaccrual loans$      2,302$      2,1666%$      2,557-10%
    Real estate and other foreclosed assets3839—44-13
    Total nonperforming assets2,3402,20562,601-10
    Accruing loans past due 90 days or more (1)297339-12407-27
    Nonaccrual loans as % of loans outstanding1.71%1.62%1.92%
    Allowance for credit losses$      2,191$      2,1293$      1,97511
    Allowance for credit losses as % of loans outstanding1.62%1.59%1.49%
    For the period
    Provision for credit losses$         200$         225-11$         12067
    Net charge-offs138148-77097
    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)1Q244Q234Q231Q231Q23
    Mortgage banking revenues$            104$            112-7%$               8523%
    Service charges on deposit accounts12412121139
    Trust income1601591194-17
    Brokerage services income2926102420
    Trading account and non-hedging derivative gains911-1912-21
    Gain (loss) on bank investment securities24-35——
    Other revenues from operations1521454159-5
    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 $5 million due to higher annuity sales.
     Noninterest Expense
    Change
    1Q24 vs.    		Change
    1Q24 vs.
    (Dollars in millions)1Q244Q234Q231Q231Q23
    Salaries and employee benefits$          833$          72415%$          8083%
    Equipment and net occupancy129134-41272
    Outside data processing and software120114510613
    Professional and other services8599-13125-31
    FDIC assessments60228-7430101
    Advertising and marketing2026-2131-35
    Amortization of core deposit and other intangible assets1515—17-13
    Other costs of operations1341102111516
    Total$       1,396$       1,450-4$       1,3593

    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
    1Q244Q231Q23
    CET111.07%(1)10.98%10.16%
    Tier 1 capital12.37(1)12.2911.48
    Total capital14.03(1)13.9913.28
    Tangible capital – common8.038.207.58
    ____________________
    (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)20242023Change
    Performance
    Net income$        531$        702-24%
    Net income available to common shareholders505676-25
    Per common share:
    Basic earnings3.044.03-25
    Diluted earnings3.024.01-25
    Cash dividends1.301.30—
    Common shares outstanding:
    Average – diluted (1)167,084168,410-1
    Period end (2)166,724165,8651
    Return on (annualized):
    Average total assets1.01%1.40%
    Average common shareholders’ equity8.1411.74
    Taxable-equivalent net interest income$      1,692$      1,832-8
    Yield on average earning assets5.74%5.16%
    Cost of interest-bearing liabilities3.261.86
    Net interest spread2.483.30
    Contribution of interest-free funds1.04.74
    Net interest margin3.524.04
    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 share3.094.09-24
    Return on (annualized):
    Average tangible assets1.08%1.49%
    Average tangible common equity12.6719.00
    Efficiency ratio60.855.5
    At March 31,
    Loan quality20242023Change
    Nonaccrual loans$      2,302$      2,557-10%
    Real estate and other foreclosed assets3844-13
    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$          4247
    Accruing loans past due 90 days or more244306-20
    Nonaccrual loans to total loans1.71%1.92%
    Allowance for credit losses to total loans1.621.49
    ____________________
    (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)20242023202320232023
    Performance
    Net income$            531$            482$            690$            867$            702
    Net income available to common shareholders505457664841676
    Per common share:
    Basic earnings3.042.754.005.074.03
    Diluted earnings3.022.743.985.054.01
    Cash dividends1.301.301.301.301.30
    Common shares outstanding:
    Average – diluted (1)167,084166,731166,570166,320168,410
    Period end (2)166,724166,149165,970165,894165,865
    Return on (annualized):
    Average total assets1.01%.92%1.33%1.70%1.40%
    Average common shareholders’ equity8.147.4110.9914.2711.74
    Taxable-equivalent net interest income$          1,692$          1,735$          1,790$          1,813$          1,832
    Yield on average earning assets5.74%5.73%5.62%5.46%5.16%
    Cost of interest-bearing liabilities3.263.172.832.431.86
    Net interest spread2.482.562.793.033.30
    Contribution of interest-free funds1.041.051.00.88.74
    Net interest margin3.523.613.793.914.04
    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 share3.092.814.055.124.09
    Return on (annualized):
    Average tangible assets1.08%.98%1.41%1.80%1.49%
    Average tangible common equity12.6711.7017.4122.7319.00
    Efficiency ratio60.862.153.748.955.5
     March 31,December 31,September 30,June 30,March 31,
    Loan quality20242023202320232023
    Nonaccrual loans$          2,302$          2,166$          2,342$          2,435$          2,557
    Real estate and other foreclosed assets3839374344
    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 more244298269294306
    Nonaccrual loans to total loans1.71%1.62%1.77%1.83%1.92%
    Allowance for credit losses to total loans1.621.591.551.501.49
    ____________________
    (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)20242023Change
    Interest income$     2,745$     2,32718%
    Interest expense1,065509109
    Net interest income1,6801,818-8
    Provision for credit losses20012067
    Net interest income after provision for credit losses1,4801,698-13
    Other income
    Mortgage banking revenues1048523
    Service charges on deposit accounts1241139
    Trust income160194-17
    Brokerage services income292420
    Trading account and non-hedging     derivative gains912-21
    Gain (loss) on bank investment securities2——
    Other revenues from operations152159-5
    Total other income580587-1
    Other expense
    Salaries and employee benefits8338083
    Equipment and net occupancy1291272
    Outside data processing and software12010613
    Professional and other services85125-31
    FDIC assessments6030101
    Advertising and marketing2031-35
    Amortization of core deposit and other     intangible assets1517-13
    Other costs of operations13411516
    Total other expense1,3961,3593
    Income before income taxes664926-28
    Applicable income taxes133224-41
    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)20242023202320232023
    Interest income$         2,745$         2,740$         2,641$         2,516$         2,327
    Interest expense1,0651,018866717509
    Net interest income1,6801,7221,7751,7991,818
    Provision for credit losses200225150150120
    Net interest income after provision for credit losses1,4801,4971,6251,6491,698
    Other income
    Mortgage banking revenues10411210510785
    Service charges on deposit accounts124121121119113
    Trust income160159155172194
    Brokerage services income2926272524
    Trading account and non-hedging     derivative gains91191712
    Gain (loss) on bank investment securities24—1—
    Other revenues from operations152145143362159
    Total other income580578560803587
    Other expense
    Salaries and employee benefits833724727738808
    Equipment and net occupancy129134131129127
    Outside data processing and software120114111106106
    Professional and other services859989100125
    FDIC assessments60228292830
    Advertising and marketing2026232831
    Amortization of core deposit and other     intangible assets1515151517
    Other costs of operations134110153149115
    Total other expense1,3961,4501,2781,2931,359
    Income before income taxes6646259071,159926
    Applicable income taxes133143217292224
    Net income$            531$            482$            690$            867$            702
    Condensed Consolidated Balance Sheet
    March 31,
    (Dollars in millions)20242023Change
    ASSETS
    Cash and due from banks$         1,695$         1,818-7%
    Interest-bearing deposits at banks32,14422,30644
    Trading account99165-40
    Investment securities28,49628,443—
    Loans and leases, net of unearned discount:
    Commercial and industrial57,89753,9347
    Real estate – commercial32,41634,897-7
    Real estate – consumer23,07623,790-3
    Consumer21,58420,3176
    Total loans and leases, net134,973132,9382
    Less: allowance for credit losses2,1911,97511
    Net loans and leases132,782130,9631
    Goodwill8,4658,490—
    Core deposit and other intangible assets132192-31
    Other assets11,32410,5797
    Total assets$     215,137$     202,9566%
    LIABILITIES AND SHAREHOLDERS’ EQUITY
    Noninterest-bearing deposits$       50,578$       59,955-16%
    Interest-bearing deposits116,61899,12018
    Total deposits167,196159,0755
    Short-term borrowings4,7956,995-31
    Accrued interest and other liabilities4,5274,04612
    Long-term borrowings11,4507,46353
    Total liabilities187,968177,5796
    Shareholders’ equity:
    Preferred2,0112,011—
    Common25,15823,3668
    Total shareholders’ equity27,16925,3777
    Total liabilities and shareholders’ equity$     215,137$     202,9566%
    Condensed Consolidated Balance Sheet, Five Quarter Trend  
    March 31,December 31,September 30,June 30,March 31,
    (Dollars in millions)20242023202320232023
    ASSETS
    Cash and due from banks$         1,695$         1,731$         1,769$         1,848$         1,818
    Interest-bearing deposits at banks32,14428,06930,11427,10722,306
    Trading account99106137137165
    Investment securities28,49626,89727,33627,91728,443
    Loans and leases, net of unearned discount:
    Commercial and industrial57,89757,01054,89154,69953,934
    Real estate – commercial32,41633,00333,74134,63434,897
    Real estate – consumer23,07623,26423,44823,76223,790
    Consumer21,58420,79120,27520,24920,317
    Total loans and leases, net134,973134,068132,355133,344132,938
    Less: allowance for credit losses2,1912,1292,0521,9981,975
    Net loans and leases132,782131,939130,303131,346130,963
    Goodwill8,4658,4658,4658,4658,490
    Core deposit and other intangible assets132147162177192
    Other assets11,32410,91010,83810,67510,579
    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 deposits116,618113,980110,341107,12099,120
    Total deposits167,196163,274164,128162,058159,075
    Short-term borrowings4,7955,3166,7317,9086,995
    Accrued interest and other liabilities4,5274,5164,9464,4884,046
    Long-term borrowings11,4508,2017,1237,4177,463
    Total liabilities187,968181,307182,928181,871177,579
    Shareholders’ equity:
    Preferred2,0112,0112,0112,0112,011
    Common25,15824,94624,18523,79023,366
    Total shareholders’ equity27,16926,95726,19625,80125,377
    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 endedChange in balance
    March 31,December 31,March 31,March 31, 2024 from
    202420232023December 31,March 31,
    (Dollars in millions)BalanceRateBalanceRateBalanceRate20232023
    ASSETS
    Interest-bearing deposits at banks$  30,6475.49%$  30,1535.48%$  24,3124.64%2%26%
    Federal funds sold and agreements to     resell securities—5.80—5.79—4.89-78-92
    Trading account1053.421233.801232.32-15-14
    Investment securities28,5873.3027,4903.1327,6223.0043
    Loans and leases, net of unearned discount:
    Commercial and industrial56,8216.9955,4207.0152,5106.3038
    Real estate – commercial32,6966.3633,4556.5435,2455.89-2-7
    Real estate – consumer23,1364.2823,3394.2523,7703.96-1-3
    Consumer21,1436.5420,5566.4220,4875.6733
    Total loans and leases, net133,7966.32132,7706.33132,0125.7011
    Total earning assets193,1355.74190,5365.73184,0695.1615
    Goodwill8,4658,4658,490——
    Core deposit and other intangible assets140154201-10-30
    Other assets9,7389,5979,8391-1
    Total assets$  211,478$  208,752$  202,5991%4%
    LIABILITIES AND SHAREHOLDERS’ EQUITY
    Interest-bearing deposits
    Savings and interest-checking deposits$  94,8672.61$  93,3652.58$  88,0531.282%8%
    Time deposits20,5834.4121,2244.3011,6303.11-377
    Total interest-bearing deposits115,4502.93114,5892.9099,6831.49116
    Short-term borrowings6,2285.425,1565.274,9944.692125
    Long-term borrowings9,7735.817,9015.706,5115.272450
    Total interest-bearing liabilities131,4513.26127,6463.17111,1881.86318
    Noninterest-bearing deposits48,61550,12461,854-3-21
    Other liabilities4,3934,4824,180-25
    Total liabilities184,459182,252177,22214
    Shareholders’ equity27,01926,50025,37726
    Total liabilities and shareholders’ equity$  211,478$  208,752$  202,5991%4%
    Net interest spread2.482.563.30
    Contribution of interest-free funds1.041.05.74
    Net interest margin3.52%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,
    20242023202320232023
    (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)1212121213
    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 income580578560803587
    Less:  Gain (loss) on bank investment securities24—1—
    Denominator$                  2,270$                  2,309$                  2,350$                  2,615$                  2,419
    Efficiency ratio60.8%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 taxes3339434649
    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 equity25,00824,48924,00923,67423,366
    Goodwill(8,465)(8,465)(8,465)(8,473)(8,490)
    Core deposit and other intangible assets(140)(154)(170)(185)(201)
    Deferred taxes3339434649
    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 taxes3437414447
    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 equity25,15824,94624,18623,79023,366
    Goodwill(8,465)(8,465)(8,465)(8,465)(8,490)
    Core deposit and other intangible assets(132)(147)(162)(177)(192)
    Deferred taxes3437414447
    Total tangible common equity$               16,595$               16,371$               15,600$               15,192$               14,731
    ____________________
    (1)After any related tax effect.

    SOURCE M&T Bank Corporation

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