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

Posted by prnewswire October 17, 2024
m&t logo

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)3Q242Q243Q23
Earnings Highlights
Net interest income$        1,726$        1,718$        1,775
Taxable-equivalent adjustment131315
Net interest income – taxable-equivalent1,7391,7311,790
Provision for credit losses120150150
Noninterest income606584560
Noninterest expense1,3031,2971,278
Net income721655690
Net income available to common shareholders – diluted674626664
Diluted earnings per common share4.023.733.98
Return on average assets – annualized1.37 %1.24 %1.33 %
Return on average common shareholders’ equity – annualized10.269.9510.99
Average Balance Sheet
Total assets$     209,581$     211,981$     205,791
Interest-bearing deposits at banks25,49129,29426,657
Investment securities31,02329,69527,993
Loans and leases, net of unearned discount134,751134,588132,617
Deposits161,505163,491162,688
Borrowings15,42816,45212,585
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin3.62 %3.59 %3.79 %
Efficiency ratio (1)55.055.353.7
Net charge-offs to average total loans – annualized.35.41.29
Allowance for credit losses to total loans1.621.631.55
Nonaccrual loans to total loans1.421.501.77
Common equity Tier 1 (“CET1”) capital ratio (2)11.5411.4510.95
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)3Q242Q242Q243Q233Q23
Net operating income$            731$            66510 %$            7024 %
Diluted net operating earnings per common share4.083.7984.051
Annualized return on average tangible assets1.45 %1.31 %1.41 %
Annualized return on average tangible common equity15.4715.2717.41
Efficiency ratio55.055.353.7
Tangible equity per common share$       107.97$       102.425$         93.9915

__________

(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)3Q242Q242Q243Q233Q23
Average earning assets$     191,366$     193,676-1 %$     187,4032 %
Average interest-bearing liabilities130,775132,209-1121,3888
Net interest income – taxable-equivalent1,7391,73111,790-3
Yield on average earning assets5.82 %5.82 %5.62 %
Cost of interest-bearing liabilities3.223.262.83
Net interest spread2.602.562.79
Net interest margin3.623.593.79

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 $2.1 billion, respectively.
  • The yields earned on average investment securities and average loans and leases increased 56 basis points and 19 basis points, respectively.
 Average Earning Assets
Change
3Q24 vs.		Change
3Q24 vs.
(Dollars in millions)3Q242Q242Q243Q233Q23
Interest-bearing deposits at banks$      25,491$      29,294-13 %$      26,657-4 %
Trading account101992136-26
Investment securities31,02329,695427,99311
Loans and leases, net of unearned discount
Commercial and industrial59,77958,152354,56710
Real estate – commercial29,07531,458-834,288-15
Real estate – consumer22,99423,006—23,573-2
Consumer22,90321,972420,18913
Total loans and leases, net134,751134,588—132,6172
Total earning assets$    191,366$    193,676-1$    187,4032

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 $579 million decline in average commercial real estate loans and residential real estate loans, respectively.
 Average Interest-bearing Liabilities
Change
3Q24 vs.		Change
3Q24 vs.
(Dollars in millions)3Q242Q242Q243Q233Q23
Interest-bearing deposits
Savings and interest-checking deposits$          98,295$          95,9552 %$          89,27410 %
Time deposits17,05219,802-1419,528-13
Total interest-bearing deposits115,347115,757—108,8026
Short-term borrowings4,0344,962-195,346-25
Long-term borrowings11,39411,490-17,24057
Total interest-bearing liabilities$        130,775$        132,209-1$        121,3888
Brokered savings and interest-checking
   deposits		$             8,831$             8,1938 %$             4,55494 %
Brokered time deposits2,1143,826-458,398-75
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 $2.8 billion reflecting the issuances of senior notes and other long-term debt from the third quarter of 2023 through the third quarter of 2024, partially offset by lower average short-term borrowings.
Provision for Credit Losses/Asset Quality
Change3Q24 vs.Change3Q24 vs.
(Dollars in millions)3Q242Q242Q243Q233Q23
At end of quarter
Nonaccrual loans$         1,926$         2,024-5 %$         2,342-18 %
Real estate and other foreclosed assets37331437—
Total nonperforming assets1,9632,057-52,379-17
Accruing loans past due 90 days or more (1)28823324354-19
Nonaccrual loans as % of loans outstanding1.42 %1.50 %1.77 %
Allowance for credit losses$         2,204$         2,204—$         2,0527
Allowance for credit losses as % of loans outstanding1.62 %1.63 %1.55 %
For the period
Provision for credit losses$             120$             150-20$             150-20
Net charge-offs120137-129624
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)3Q242Q242Q243Q233Q23
Mortgage banking revenues$            109$            1063 %$            1054 %
Service charges on deposit accounts13212731219
Trust income170170—1559
Brokerage services income323022716
Trading account and other non-hedging
     derivative gains		137109946
Gain (loss) on bank investment securities(2)(8)———
Other revenues from operations152152—1437
Total$            606$            5844$            5608

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 $9 million reflecting higher letter of credit and other credit-related fees.
 Noninterest Expense
Change
3Q24 vs.		Change
3Q24 vs.
(Dollars in millions)3Q242Q242Q243Q233Q23
Salaries and employee benefits$          775$          7641 %$          7277 %
Equipment and net occupancy125125—131-5
Outside data processing and software123124-111111
Professional and other services8891-489-2
FDIC assessments2537-3229-14
Advertising and marketing2727—2318
Amortization of core deposit and other intangible assets1213—15-15
Other costs of operations12811610153-16
Total$       1,303$       1,297—$       1,2782

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
3Q242Q243Q23
CET111.54 %(1)11.45 %10.95 %
Tier 1 capital13.08(1)13.2312.27
Total capital14.66(1)14.8813.99
Tangible capital – common8.838.557.78

__________

(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 endedNine months ended
September 30,September 30,
(Dollars in millions, except per share, shares in thousands)20242023Change20242023Change
Performance
Net income$         721$         6905 %$       1,907$       2,259-16 %
Net income available to common shareholders67466421,8052,180-17
Per common share:
Basic earnings4.044.00110.8313.09-17
Diluted earnings4.023.98110.7813.05-17
Cash dividends1.351.3044.003.903
Common shares outstanding:
Average – diluted (1)167,567166,5701167,437167,093—
Period end (2)166,157165,970—166,157165,970—
Return on (annualized):
Average total assets1.37 %1.33 %1.21 %1.48 %
Average common shareholders’ equity10.2610.999.4712.33
Taxable-equivalent net interest income$       1,739$       1,790-3$       5,162$       5,434-5
Yield on average earning assets5.82 %5.62 %5.79 %5.41 %
Cost of interest-bearing liabilities3.222.833.242.39
Net interest spread2.602.792.553.02
Contribution of interest-free funds1.021.001.03.89
Net interest margin3.623.793.583.91
Net charge-offs to average total net loans (annualized).35.29.39.30
Net operating results (3)
Net operating income$         731$         7024$       1,939$       2,295-16
Diluted net operating earnings per common share4.084.05110.9713.26-17
Return on (annualized):
Average tangible assets1.45 %1.41 %1.28 %1.57 %
Average tangible common equity15.4717.4114.5119.70
Efficiency ratio55.053.757.052.6
At September 30,
Loan quality20242023Change
Nonaccrual loans$       1,926$       2,342-18 %
Real estate and other foreclosed assets3737—
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$           4073
Accruing loans past due 90 days or more269269—
Nonaccrual loans to total loans1.42 %1.77 %
Allowance for credit losses to total loans1.621.55
Additional information
Period end common stock price$     178.12$     126.4541
Domestic banking offices957967-1
Full time equivalent employees21,98622,424-2

__________

(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)20242024202420232023
Performance
Net income$             721$             655$             531$             482$             690
Net income available to common shareholders674626505457664
Per common share:
Basic earnings4.043.753.042.754.00
Diluted earnings4.023.733.022.743.98
Cash dividends1.351.351.301.301.30
Common shares outstanding:
Average – diluted (1)167,567167,659167,084166,731166,570
Period end (2)166,157167,225166,724166,149165,970
Return on (annualized):
Average total assets1.37 %1.24 %1.01 %.92 %1.33 %
Average common shareholders’ equity10.269.958.147.4110.99
Taxable-equivalent net interest income$           1,739$           1,731$           1,692$           1,735$           1,790
Yield on average earning assets5.82 %5.82 %5.74 %5.73 %5.62 %
Cost of interest-bearing liabilities3.223.263.263.172.83
Net interest spread2.602.562.482.562.79
Contribution of interest-free funds1.021.031.041.051.00
Net interest margin3.623.593.523.613.79
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 share4.083.793.092.814.05
Return on (annualized):
Average tangible assets1.45 %1.31 %1.08 %.98 %1.41 %
Average tangible common equity15.4715.2712.6711.7017.41
Efficiency ratio55.055.360.862.153.7
September 30,June 30,March 31,December 31,September 30,
Loan quality20242024202420232023
Nonaccrual loans$           1,926$           2,024$           2,302$           2,166$           2,342
Real estate and other foreclosed assets3733383937
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 more269215244298269
Nonaccrual loans to total loans1.42 %1.50 %1.71 %1.62 %1.77 %
Allowance for credit losses to total loans1.621.631.621.591.55
Additional information
Period end common stock price$         178.12$         151.36$         145.44$         137.08$         126.45
Domestic banking offices957957958961967
Full time equivalent employees21,98622,11021,92721,98022,424

__________

(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 endedNine months ended
September 30,September 30,
(Dollars in millions)20242023Change20242023Change
Interest income$     2,785$     2,6415 %$     8,319$     7,48411 %
Interest expense1,059866223,1952,09153
Net interest income1,7261,775-35,1245,393-5
Provision for credit losses120150-2047042012
Net interest income after provision for credit losses1,6061,625-14,6544,973-6
Other income
Mortgage banking revenues10910543192977
Service charges on deposit accounts13212193833548
Trust income1701559500521-4
Brokerage services income322716917619
Trading account and other non-hedging
     derivative gains		139462938-22
Gain (loss) on bank investment securities(2)——(8)——
Other revenues from operations1521437456664-31
Total other income60656081,7701,950-9
Other expense
Salaries and employee benefits77572772,3722,2734
Equipment and net occupancy125131-5379387-2
Outside data processing and software1231111136732314
Professional and other services8889-2264314-16
FDIC assessments2529-141228740
Advertising and marketing2723187482-10
Amortization of core deposit and other
     intangible assets		1215-154047-14
Other costs of operations128153-16378417-9
Total other expense1,3031,27823,9963,9302
Income before taxes909907—2,4282,993-19
Income taxes188217-13521734-29
Net income$        721$        6905 %$     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)20242024202420232023
Interest income$         2,785$         2,789$         2,745$         2,740$         2,641
Interest expense1,0591,0711,0651,018866
Net interest income1,7261,7181,6801,7221,775
Provision for credit losses120150200225150
Net interest income after provision for credit losses1,6061,5681,4801,4971,625
Other income
Mortgage banking revenues109106104112105
Service charges on deposit accounts132127124121121
Trust income170170160159155
Brokerage services income3230292627
Trading account and other non-hedging
     derivative gains		1379119
Gain (loss) on bank investment securities(2)(8)24—
Other revenues from operations152152152145143
Total other income606584580578560
Other expense
Salaries and employee benefits775764833724727
Equipment and net occupancy125125129134131
Outside data processing and software123124120114111
Professional and other services8891859989
FDIC assessments25376022829
Advertising and marketing2727202623
Amortization of core deposit and other
     intangible assets		1213151515
Other costs of operations128116134110153
Total other expense1,3031,2971,3961,4501,278
Income before taxes909855664625907
Income taxes188200133143217
Net income$            721$            655$            531$            482$            690

Condensed Consolidated Balance Sheet

September 30,
(Dollars in millions)20242023Change
ASSETS
Cash and due from banks$         2,216$         1,76925 %
Interest-bearing deposits at banks24,41730,114-19
Trading account102137-25
Investment securities32,32727,33618
Loans and leases, net of unearned discount:
Commercial and industrial61,01254,89111
Real estate – commercial28,68333,741-15
Real estate – consumer23,01923,448-2
Consumer23,20620,27514
Total loans and leases, net135,920132,3553
Less: allowance for credit losses2,2042,0527
Net loans and leases133,716130,3033
Goodwill8,4658,465—
Core deposit and other intangible assets107162-34
Other assets10,43510,838-4
Total assets$     211,785$     209,1241 %
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits$       47,344$       53,787-12 %
Interest-bearing deposits117,210110,3416
Total deposits164,554164,128—
Short-term borrowings2,6056,731-61
Accrued interest and other liabilities4,1674,946-16
Long-term borrowings11,5837,12363
Total liabilities182,909182,928—
Shareholders’ equity:
Preferred2,3942,01119
Common26,48224,1859
Total shareholders’ equity28,87626,19610
Total liabilities and shareholders’ equity$     211,785$     209,1241 %

Condensed Consolidated Balance Sheet, Five Quarter Trend  

September 30,June 30,March 31,December 31,September 30,
(Dollars in millions)20242024202420232023
ASSETS
Cash and due from banks$         2,216$         1,778$         1,695$         1,731$         1,769
Interest-bearing deposits at banks24,41724,79232,14428,06930,114
Trading account1029999106137
Investment securities32,32729,89428,49626,89727,336
Loans and leases, net of unearned discount:
Commercial and industrial61,01260,02757,89757,01054,891
Real estate – commercial28,68329,53232,41633,00333,741
Real estate – consumer23,01923,00323,07623,26423,448
Consumer23,20622,44021,58420,79120,275
Total loans and leases, net135,920135,002134,973134,068132,355
Less: allowance for credit losses2,2042,2042,1912,1292,052
Net loans and leases133,716132,798132,782131,939130,303
Goodwill8,4658,4658,4658,4658,465
Core deposit and other intangible assets107119132147162
Other assets10,43510,91011,32410,91010,838
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 deposits117,210112,181116,618113,980110,341
Total deposits164,554159,910167,196163,274164,128
Short-term borrowings2,6054,7644,7955,3166,731
Accrued interest and other liabilities4,1674,4384,5274,5164,946
Long-term borrowings11,58311,31911,4508,2017,123
Total liabilities182,909180,431187,968181,307182,928
Shareholders’ equity:
Preferred2,3942,7442,0112,0112,011
Common26,48225,68025,15824,94624,185
Total shareholders’ equity28,87628,42427,16926,95726,196
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 endedChange in balanceNine months ended
September 30,June 30,September 30,September 30, 2024 fromSeptember 30,Change
(Dollars in millions)202420242023June 30,September 30,20242023in
BalanceRateBalanceRateBalanceRate20242023BalanceRateBalanceRatebalance
ASSETS
Interest-bearing deposits at banks$   25,4915.43 %$   29,2945.50 %$   26,6575.40 %-13 %-4 %$   28,4675.48 %$   24,8715.07 %14 %
Trading account1013.40993.471364.052-261023.431363.02-25
Investment securities31,0233.7029,6953.6127,9933.1441129,7733.5428,0813.086
Loans and leases, net of unearned      discount:     
Commercial and industrial59,7797.0158,1527.0454,5676.8631058,2567.0153,8776.608
Real estate – commercial29,0756.2731,4586.3834,2886.50-8-1531,0696.3434,8236.26-11
Real estate – consumer22,9944.4123,0064.3223,5734.14—-223,0454.3323,7074.06-3
Consumer22,9036.7221,9726.6120,1896.1641322,0096.6320,3205.908
Total loans and leases, net134,7516.38134,5886.38132,6176.19—2134,3796.36132,7275.981
Total earning assets191,3665.82193,6765.82187,4035.62-12192,7215.79185,8155.414
Goodwill8,4658,4658,465——8,4658,476—
Core deposit and other intangible assets113126170-10-33126185-32
Other assets9,6379,7149,753-1-19,6969,790-1
Total assets$ 209,581$ 211,981$ 205,791-1 %2 %$ 211,008$ 204,2663 %
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
Savings and interest-checking     deposits$   98,2952.65 %$   95,9552.59 %$   89,2742.20 %2 %10 %$   96,3792.62 %$   88,1841.73 %9 %
Time deposits17,0524.1919,8024.4119,5284.09-14-1319,1384.3415,7513.7422
Total interest-bearing deposits115,3472.88115,7572.90108,8022.54—6115,5172.90103,9352.0311
Short-term borrowings4,0345.604,9625.625,3465.16-19-255,0715.535,9615.01-15
Long-term borrowings11,3945.8311,4905.837,2405.52-15710,8875.827,0925.4254
Total interest-bearing liabilities130,7753.22132,2093.26121,3882.83-18131,4753.24116,9882.3912
Noninterest-bearing deposits46,15847,73453,886-3-1447,49857,277-17
Other liabilities3,9234,2934,497-9-134,2024,305-2
Total liabilities180,856184,236179,771-21183,175178,5703
Shareholders’ equity28,72527,74526,02041027,83325,6968
Total liabilities and shareholders’ equity$ 209,581$ 211,981$ 205,791-1 %2 %$ 211,008$ 204,2663 %
Net interest spread2.602.562.792.553.02
Contribution of interest-free funds1.021.031.001.030.89
Net interest margin3.62 %3.59 %3.79 %3.58 %3.91 %

Reconciliation of Quarterly GAAP to Non-GAAP Measures

Three months endedNine months ended
September 30,September 30,
2024202320242023
(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)10123236
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 income6065601,7701,950
Less:  Gain (loss) on bank investment securities(2)—(8)—
Denominator$    2,347$    2,350$    6,940$    7,384
Efficiency ratio55.0 %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 taxes28433046
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 equity26,16024,00925,50523,685
Goodwill(8,465)(8,465)(8,465)(8,476)
Core deposit and other intangible assets(113)(170)(126)(185)
Deferred taxes28433046
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 taxes3041
Total tangible assets$ 203,243$ 200,538
Total common equity
Total equity$  28,876$  26,197
Preferred stock(2,394)(2,011)
Common equity26,48224,186
Goodwill(8,465)(8,465)
Core deposit and other intangible assets(107)(162)
Deferred taxes3041
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,
20242024202420232023
(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)1010121212
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 income606584580578560
Less:  Gain (loss) on bank investment securities(2)(8)24—
Denominator$                  2,347$                  2,323$                  2,270$                  2,309$                  2,350
Efficiency ratio55.0 %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 taxes2830333943
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 equity26,16025,34025,00824,48924,009
Goodwill(8,465)(8,465)(8,465)(8,465)(8,465)
Core deposit and other intangible assets(113)(126)(140)(154)(170)
Deferred taxes2830333943
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 taxes3031343741
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 equity26,48225,68025,15824,94624,186
Goodwill(8,465)(8,465)(8,465)(8,465)(8,465)
Core deposit and other intangible assets(107)(119)(132)(147)(162)
Deferred taxes3031343741
Total tangible common equity$               17,940$               17,127$               16,595$               16,371$               15,600

__________

(1)After any related tax effect.

SOURCE M&T Bank Corporation

source link – M&T Bank Corporation (NYSE:MTB) announces third quarter 2024 results (prnewswire.com)

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