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