BUFFALO, N.Y., Oct. 17, 2024 -- 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
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