BUFFALO, N.Y., Jan. 16, 2024 -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $681 million or $3.86 of diluted earnings per common share and full-year net income of $2.59 billion or $14.64 of diluted earnings per common share.
(Dollars in millions, except per share data) | 4Q24 | 3Q24 | 4Q23 | 2024 | 2023 | |||||
Earnings Highlights | ||||||||||
Net interest income | $ 1,728 | $ 1,726 | $ 1,722 | $ 6,852 | $ 7,115 | |||||
Taxable-equivalent adjustment | 12 | 13 | 13 | 50 | 54 | |||||
Net interest income - taxable-equivalent | 1,740 | 1,739 | 1,735 | 6,902 | 7,169 | |||||
Provision for credit losses | 140 | 120 | 225 | 610 | 645 | |||||
Noninterest income | 657 | 606 | 578 | 2,427 | 2,528 | |||||
Noninterest expense | 1,363 | 1,303 | 1,450 | 5,359 | 5,379 | |||||
Net income | 681 | 721 | 482 | 2,588 | 2,741 | |||||
Net income available to common shareholders - diluted | 644 | 674 | 457 | 2,449 | 2,636 | |||||
Diluted earnings per common share | 3.86 | 4.02 | 2.74 | 14.64 | 15.79 | |||||
Return on average assets - annualized | 1.28 % | 1.37 % | .92 % | 1.23 % | 1.33 % | |||||
Return on average common shareholders' equity - annualized | 9.75 | 10.26 | 7.41 | 9.54 | 11.06 | |||||
Average Balance Sheet | ||||||||||
Total assets | $ 211,853 | $ 209,581 | $ 208,752 | $ 211,220 | $ 205,397 | |||||
Interest-bearing deposits at banks | 23,602 | 25,491 | 30,153 | 27,244 | 26,202 | |||||
Investment securities | 33,679 | 31,023 | 27,490 | 30,755 | 27,932 | |||||
Loans and leases | 135,723 | 134,751 | 132,770 | 134,717 | 132,738 | |||||
Deposits | 164,639 | 161,505 | 164,713 | 163,423 | 162,094 | |||||
Borrowings | 14,228 | 15,428 | 13,057 | 15,523 | 13,054 | |||||
Selected Ratios | ||||||||||
(Amounts expressed as a percent, except per share data) | ||||||||||
Net interest margin | 3.58 % | 3.62 % | 3.61 % | 3.58 % | 3.83 % | |||||
Efficiency ratio (1) | 56.8 | 55.0 | 62.1 | 56.9 | 54.9 | |||||
Net charge-offs to average total loans - annualized | .47 | .35 | .44 | .41 | .33 | |||||
Allowance for credit losses to total loans | 1.61 | 1.62 | 1.59 | 1.61 | 1.59 | |||||
Nonaccrual loans to total loans | 1.25 | 1.42 | 1.62 | 1.25 | 1.62 | |||||
Common equity Tier 1 ("CET1") capital ratio (2) | 11.67 | 11.54 | 10.98 | 11.67 | 10.98 | |||||
Common shareholders' equity per share | $ 160.90 | $ 159.38 | $ 150.15 | $ 160.90 | $ 150.15 | |||||
(1) A reconciliation of non-GAAP measures is included in the tables that accompany this release. | ||||||||||
(2) December 31, 2024 CET1 capital ratio is estimated. |
Financial Highlights
- M&T's capital position continues to strengthen as the CET1 capital ratio increased for the seventh consecutive quarter to an estimated 11.67% at December 31, 2024, representing a 13 basis-point increase from 11.54% at September 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 fourth quarter of 2024.
- Net interest margin of 3.58% in the recent quarter narrowed from 3.62% in the third quarter of 2024 reflecting a lower contribution of interest-free funds, partially offset by a higher net interest spread.
- Average loan growth reflected higher average balances of commercial and industrial and consumer loans, partially offset by a reduction in the average balance of commercial real estate loans.
- Higher average deposits reflected growth in average savings and interest-checking deposits and noninterest-bearing deposits and declines in higher-cost time deposits. Lower average borrowings reflected a decline in average short-term borrowings from the Federal Home Loan Bank ("FHLB") of New York.
- An increase in other income in the fourth quarter of 2024 reflected a rise in commercial mortgage banking revenues, a distribution from an equity investment and higher net gains on bank investment securities. Higher other expense in that same period reflected a loss on 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 1.25% of loans outstanding at December 31, 2024 from 1.42% at September 30, 2024.
Chief Financial Officer Commentary
"I would like to close out 2024 by thanking our customers for their business and our fellow colleagues at M&T for making a difference in people's lives and the communities we serve. M&T enters 2025 with resolute focus on enhancing capabilities to better serve our customers by optimizing our business processes and building more scale and resiliency for continued growth."
- Daryl N. Bible, M&T's Chief Financial Officer
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