BUFFALO, N.Y., April 14, 2025 -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $584 million or $3.32 of diluted earnings per common share.
(Dollars in millions, except per share data) | 1Q25 | 4Q24 | 1Q24 | |||
Earnings Highlights | ||||||
Net interest income | $ 1,695 | $ 1,728 | $ 1,680 | |||
Taxable-equivalent adjustment | 12 | 12 | 12 | |||
Net interest income - taxable-equivalent | 1,707 | 1,740 | 1,692 | |||
Provision for credit losses | 130 | 140 | 200 | |||
Noninterest income | 611 | 657 | 580 | |||
Noninterest expense | 1,415 | 1,363 | 1,396 | |||
Net income | 584 | 681 | 531 | |||
Net income available to common shareholders - diluted | 547 | 644 | 505 | |||
Diluted earnings per common share | 3.32 | 3.86 | 3.02 | |||
Return on average assets - annualized | 1.14 % | 1.28 % | 1.01 % | |||
Return on average common shareholders' equity - annualized | 8.36 | 9.75 | 8.14 | |||
Average Balance Sheet | ||||||
Total assets | $ 208,321 | $ 211,853 | $ 211,478 | |||
Interest-bearing deposits at banks | 19,695 | 23,602 | 30,647 | |||
Investment securities | 34,480 | 33,679 | 28,587 | |||
Loans and leases | 134,844 | 135,723 | 133,796 | |||
Deposits | 161,220 | 164,639 | 164,065 | |||
Borrowings | 14,154 | 14,228 | 16,001 | |||
Selected Ratios | ||||||
(Amounts expressed as a percent, except per share data) | ||||||
Net interest margin | 3.66 % | 3.58 % | 3.52 % | |||
Efficiency ratio (1) | 60.5 | 56.8 | 60.8 | |||
Net charge-offs to average total loans - annualized | .34 | .47 | .42 | |||
Allowance for credit losses to total loans | 1.63 | 1.61 | 1.62 | |||
Nonaccrual loans to total loans | 1.14 | 1.25 | 1.71 | |||
Common equity Tier 1 ("CET1") capital ratio (2) | 11.50 | 11.68 | 11.08 | |||
Common shareholders' equity per share | $ 163.62 | $ 160.90 | $ 150.90 | |||
(1) | A reconciliation of non-GAAP measures is included in the tables that accompany this release. |
(2) | CET1 capital ratio at March 31, 2025 is estimated. |
Financial Highlights
- Net interest margin widened to 3.66% in the recent quarter as compared with 3.58% in the fourth quarter of 2024 reflecting lower levels of average earning assets. Lower funding costs associated with interest-bearing deposits and short-term borrowings were partially offset by a decline in the yields received on average interest-bearing deposits at banks and average loans and leases.
- Average loans and leases in the recent quarter reflect a lower average balance of commercial real estate loans, partially offset by modest increases in the average balances of commercial and industrial, residential real estate and consumer loans.
- First quarter average deposits reflect maturities of brokered time deposits and a seasonal decline in commercial customer deposits.
- The recent quarter decline in noninterest income reflects a distribution from M&T's investment in Bayview Lending Group, LLC ("BLG") and net gains on bank investment securities each in the final quarter of 2024.
- Noninterest expenses in the first quarter of 2025 reflect seasonal salaries and employee benefits expense of $110 million and higher outside data processing and software costs, partially offset by lower other costs of operations, which in the fourth quarter of 2024 included the redemption of certain of M&T's trust preferred obligations and vacated facility write-downs, partially offset by a pension-related distribution benefit.
- The level of nonaccrual loans improved to 1.14% of loans outstanding at March 31, 2025 from 1.25% at December 31, 2024.
- M&T repurchased 3,415,303 shares of its common stock for a total cost of $662 million, including the share repurchase excise tax, in the first quarter of 2025. Reflecting repurchases, M&T's CET1 capital ratio declined to an estimated 11.50% at March 31, 2025, representing an 18 basis-point decrease from 11.68% at December 31, 2024.
Chief Financial Officer Commentary
"I am pleased with the solid financial results we obtained in the first quarter. M&T's start to the year reflects the consistency and strength of our diversified banking model, healthy levels of capital and liquidity as well as improved credit results. We continue to invest in our people, technology and processes to better serve our customers. We remain steadfast in our goal to make a difference in the communities where we work and live."
- Daryl N. Bible, M&T's Chief Financial Officer
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