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

PR Newswire


BUFFALO, N.Y.
, Jan. 16, 2024 /PRNewswire/ — 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


Contact:

Investor Relations:

Brian Klock

716.842.5138

Media Relations:

Frank Lentini

929.651.0447

 


 Non-GAAP Measures (1)

Change
4Q24 vs.

Change
4Q24 vs.


(Dollars in millions, except per share data)

4Q24

3Q24

3Q24

4Q23

4Q23

Net operating income

$            691

$            731

-6 %

$            494

40 %

Diluted net operating earnings per common share

3.92

4.08

-4

2.81

40

Annualized return on average tangible assets

1.35 %

1.45 %

.98 %

Annualized return on average tangible common equity

14.66

15.47

11.70

Efficiency ratio

56.8

55.0

62.1

Tangible equity per common share

$       109.36

$       107.97

1

$         98.54

11

____________________

(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.

For the year ended December 31, 2024, diluted net operating earnings per common share were $14.88, compared with $16.08 in 2023. Net operating income was $2.63 billion and $2.79 billion in 2024 and 2023, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income in 2024 was 1.30% and 14.54%, respectively, compared with 1.42% and 17.60%, respectively, in 2023.


 Taxable-equivalent Net Interest Income

Change
4Q24 vs.

Change
4Q24 vs.


(Dollars in millions)

4Q24

3Q24

3Q24

4Q23

4Q23

Average earning assets

$     193,106

$     191,366

1 %

$     190,536

1 %

Average interest-bearing liabilities

132,313

130,775

1

127,646

4

Net interest income – taxable-equivalent

1,740

1,739

1,735

Yield on average earning assets

5.60 %

5.82 %

5.73 %

Cost of interest-bearing liabilities

2.94

3.22

3.17

Net interest spread

2.66

2.60

2.56

Net interest margin

3.58

3.62

3.61

Taxable-equivalent net interest income increased $1 million from the third quarter of 2024.

  • Average interest-bearing deposits at banks decreased $1.9 billion and the yield received on those deposits declined 63 basis points.
  • Average investment securities increased $2.7 billion and the rates earned on those securities increased 18 basis points.
  • Average loans and leases increased $972 million while the yield received on those loans and leases decreased 21 basis points.
  • Average interest-bearing deposits increased $2.7 billion while the rates paid on such deposits declined 24 basis points.
  • Average borrowings declined $1.2 billion and the rates paid on such borrowings declined 32 basis points.

Taxable-equivalent net interest income increased $5 million compared with the year-earlier fourth quarter.

  • Average interest-bearing deposits at banks decreased $6.6 billion and the yield received on those deposits declined 68 basis points.
  • Average investment securities and average loans and leases increased $6.2 billion and $3.0 billion, respectively.
  • The yield earned on average investment securities increased 75 basis points while the yield received on average loans and leases decreased 16 basis points.
  • Average interest-bearing deposits rose $3.5 billion while the rates paid on those deposits decreased 26 basis points.
  • Average borrowings increased $1.2 billion while the rates paid on such borrowings declined 8 basis points.

Taxable-equivalent net interest income was $6.90 billion in 2024, a decrease of $267 million, or 4%, from $7.17 billion in 2023.

  • Average earning assets increased $5.8 billion to $192.8 billion in 2024 from $187.0 billion in 2023, reflecting purchases of investment securities and loan growth.
  • Yields earned on average investment securities and average loans and leases increased 55 and 24 basis points, respectively.
  • Average interest-bearing liabilities increased $12.0 billion reflecting a rise in interest-bearing deposits of $9.5 billion and borrowings of $2.5 billion.
  • Rates paid on average interest-bearing deposits and borrowings increased 57 and 37 basis points, respectively.


 Average Earning Assets

Change
4Q24 vs.

Change
4Q24 vs.


(Dollars in millions)

4Q24

3Q24

3Q24

4Q23

4Q23

Interest-bearing deposits at banks

$      23,602

$      25,491

-7 %

$      30,153

-22 %

Trading account

102

101

1

123

-17

Investment securities

33,679

31,023

9

27,490

23

Loans and leases

Commercial and industrial

60,704

59,779

2

55,420

10

Real estate – commercial

27,896

29,075

-4

33,455

-17

Real estate – consumer

23,088

22,994

23,339

-1

Consumer

24,035

22,903

5

20,556

17

Total loans and leases

135,723

134,751

1

132,770

2

Total earning assets

$    193,106

$    191,366

1

$    190,536

1

Average earning assets increased $1.7 billion, or 1%, from the third quarter of 2024.

  • Average interest-bearing deposits at banks decreased $1.9 billion reflecting purchases of investment securities, maturities of short-term FHLB advances and increases in average loans, partially offset by increases in average deposits.
  • Average investment securities increased $2.7 billion primarily due to purchases of fixed rate agency mortgage-backed and U.S. Treasury securities during the third and fourth quarters of 2024.
  • Average loans and leases increased $972 million primarily reflective of higher average consumer loans of $1.1 billion and average commercial and industrial loans and leases of $925 million, reflecting lending activities to financial and insurance industry customers and motor vehicle and recreational finance dealers, partially offset by a decrease in average commercial real estate loans of $1.2 billion.

Average earning assets increased $2.6 billion, or 1%, from the year-earlier fourth quarter.

  • Average interest-bearing deposits at banks decreased $6.6 billion reflecting purchases of investment securities and loan growth, partially offset by higher average deposits and borrowings.
  • Average investment securities increased $6.2 billion primarily reflecting purchases of fixed rate agency mortgage-backed and U.S. Treasury securities in 2024.
  • Average loans and leases increased $3.0 billion predominantly due to higher average commercial and industrial loans and leases of $5.3 billion, reflecting growth spanning most industry types, and average consumer loans of $3.5 billion, reflecting higher average recreational finance and automobile loans, partially offset by a $5.6 billion decline in average commercial real estate loans.


 Average Interest-bearing Liabilities

Change
4Q24 vs.

Change
4Q24 vs.


(Dollars in millions)

4Q24

3Q24

3Q24

4Q23

4Q23

Interest-bearing deposits

Savings and interest-checking deposits

$        102,127

$          98,295

4 %

$          93,365

9 %

Time deposits

15,958

17,052

-6

21,224

-25

Total interest-bearing deposits

118,085

115,347

2

114,589

3

Short-term borrowings

2,563

4,034

-36

5,156

-50

Long-term borrowings

11,665

11,394

2

7,901

48

Total interest-bearing liabilities

$        132,313

$        130,775

1

$        127,646

4

Brokered savings and interest-checking
   deposits

$             9,690

$             8,831

10 %

$             6,706

44 %

Brokered time deposits

1,740

2,114

-18

7,253

-76

Total brokered deposits

$          11,430

$          10,945

4

$          13,959

-18

Average interest-bearing liabilities increased $1.5 billion, or 1%, from the third quarter of 2024.

  • Average interest-bearing deposits rose $2.7 billion, reflecting an increase of $2.3 billion in average non-brokered deposits and $485 million in average brokered deposits.
  • Average borrowings decreased $1.2 billion reflecting lower average short-term borrowings from the FHLB of New York in the recent quarter.

Average interest-bearing liabilities increased $4.7 billion, or 4%, from the fourth quarter of 2023.

  • Average interest-bearing deposits rose $3.5 billion reflecting a $6.0 billion increase in average non-brokered deposits, partially offset by a $2.5 billion decrease in average brokered deposits.
  • Average borrowings increased $1.2 billion reflecting the issuances of senior notes and other long-term debt in 2024, partially offset by lower average short-term borrowings.


Provision for Credit Losses/Asset Quality

Change

4Q24 vs.

Change

4Q24 vs.


(Dollars in millions)

4Q24

3Q24

3Q24

4Q23

4Q23


At end of quarter

Nonaccrual loans

$         1,690

$         1,926

-12 %

$         2,166

-22 %

Real estate and other foreclosed assets

35

37

-6

39

-9

Total nonperforming assets

1,725

1,963

-12

2,205

-22

Accruing loans past due 90 days or more (1)

338

288

17

339

Nonaccrual loans as % of loans outstanding

1.25 %

1.42 %

1.62 %

Allowance for credit losses

$         2,184

$         2,204

-1

$         2,129

3

Allowance for credit losses as % of loans outstanding

1.61 %

1.62 %

1.59 %


For the period

Provision for credit losses

$             140

$             120

17

$             225

-38

Net charge-offs

160

120

34

148

8

Net charge-offs as % of average loans (annualized)

.47 %

.35 %

.44 %

____________________

(1)

Predominantly government-guaranteed residential real estate loans.

The provision for credit losses was $610 million in 2024 as compared with $645 million in 2023. That decrease reflects a decline in commercial real estate criticized loans, partially offset by growth in certain sectors of M&T’s commercial and industrial and consumer loan portfolios. For 2024 and 2023, net charge-offs were $555 million and $441 million, respectively, representing .41% and .33%, respectively, of average loans outstanding. The increased level of net charge-offs in 2024 was predominantly comprised of higher commercial and industrial and consumer loan net charge-offs.

Nonaccrual loans were $1.7 billion at December 31, 2024, $236 million lower than at September 30, 2024 and $476 million lower than at December 31, 2023. The lower level of nonaccrual loans at the recent quarter end as compared with September 30, 2024 and December 31, 2023 was predominantly attributable to a decrease in commercial real estate nonaccrual loans.


 Noninterest Income

Change
4Q24 vs.

Change
4Q24 vs.


(Dollars in millions)

4Q24

3Q24

3Q24

4Q23

4Q23

Mortgage banking revenues

$          117

$          109

8 %

$          112

4 %

Service charges on deposit accounts

131

132

121

9

Trust income

175

170

3

159

11

Brokerage services income

30

32

-1

26

18

Trading account and other non-hedging derivative gains

10

13

-33

11

-20

Gain (loss) on bank investment securities

18

(2)

4

407

Other revenues from operations

176

152

15

145

20

Total

$          657

$          606

8

$          578

14

Noninterest income in the fourth quarter of 2024 increased $51 million, or 8%, from 2024’s third quarter.

  • Mortgage banking revenues rose $8 million predominantly due to higher gains on sales of commercial mortgage loans.
  • The gain on bank investment securities in the fourth quarter of 2024 reflects realized gains on the sales of Fannie Mae and Freddie Mac preferred securities.
  • Other revenues from operations increased $24 million reflecting a $23 million distribution from M&T’s investment in Bayview Lending Group LLC (“BLG”) received in the recent quarter.

Noninterest income rose $79 million, or 14%, as compared with the year-earlier fourth quarter.

  • Service charges on deposit accounts increased $10 million reflecting a rise in commercial service charges.
  • Trust income increased $16 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.
  • The higher gain on bank investment securities in the fourth quarter of 2024 as compared with the fourth quarter of 2023 reflects realized gains on the sales of Fannie Mae and Freddie Mac preferred securities in the recent quarter.
  • Other revenue from operations increased $31 million reflecting a $23 million distribution from M&T’s investment in BLG.

Noninterest income declined $101 million, or 4%, to $2.43 billion in 2024 as compared with $2.53 billion in 2023, reflecting the sale of the Collective Investment Trust (“CIT”) business in April 2023, partially offset by higher service charges on deposit accounts, non-CIT business related trust income, mortgage banking revenues, brokerage services income and distributions from M&T’s investment in BLG.


 Noninterest Expense

Change
4Q24 vs.

Change
4Q24 vs.


(Dollars in millions)

4Q24

3Q24

3Q24

4Q23

4Q23

Salaries and employee benefits

$          790

$          775

2 %

$          724

9 %

Equipment and net occupancy

133

125

7

134

-1

Outside data processing and software

125

123

1

114

9

Professional and other services

80

88

-7

99

-18

FDIC assessments

24

25

-6

228

-90

Advertising and marketing

30

27

11

26

17

Amortization of core deposit and other intangible assets

13

12

15

-15

Other costs of operations

168

128

31

110

52

Total

$       1,363

$       1,303

5

$       1,450

-6

Noninterest expense rose $60 million, or 5%, from the third quarter of 2024.

  • Salaries and employee benefits expenses increased $15 million, inclusive of higher incentive compensation.
  • Other costs of operations increased $40 million reflecting a $20 million loss on the redemption of certain of M&T’s trust preferred obligations and a $27 million write-down of two vacated office facilities in the fourth quarter of 2024. Offsetting these charges was a $12 million benefit associated with the solicited election of certain participants in M&T’s pension plan to accept a lump-sum distribution in the fourth quarter of 2024 in lieu of future retirement benefit payments. Other costs of operations in the third quarter of 2024 included costs incurred due to the Company’s obligation under various agreements to share in losses stemming from certain litigation of Visa, Inc.

Noninterest expense decreased $87 million, or 6%, from the fourth quarter of 2023.

  • Salaries and employee benefits expenses increased $66 million reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower average employee staffing levels.
  • Outside data processing and software rose $11 million reflecting higher software maintenance and data processing expenses.
  • Professional and other services decreased $19 million largely due to lower consulting expenses.
  • The decline in FDIC assessments reflects a $197 million special assessment recorded in the fourth quarter of 2023.
  • Other costs of operations increased $58 million reflecting, in the fourth quarter of 2024, the redemption of certain of M&T’s trust preferred obligations and vacated facility write-downs, partially offset by a benefit related to voluntary lump-sum distributions to certain M&T pension plan participants.

For the year ended December 31, 2024, noninterest expense aggregated $5.36 billion, compared with $5.38 billion in 2023. The $20 million decrease in noninterest expenses reflected FDIC special assessments of $197 million in 2023 and $34 million in 2024, lower professional and other services expense, reflecting lower sub-advisory fees resulting from the sale of the CIT business in April 2023 and a decline in management consulting fees, partially offset by higher salaries and employee benefits expenses, reflecting annual merit and other increases and a rise in incentive compensation, and higher outside data processing and software costs.

Income Taxes

The Company’s effective income tax rate was 22.8% in the fourth quarter of 2024, compared with 20.7% and 22.9% in the third quarter of 2024 and fourth quarter of 2023, respectively. Income tax expense in the third quarter of 2024 reflects a discrete tax benefit related to certain tax credits claimed on a prior year tax return. The Company’s effective tax rates were 21.8% and 24.3% in 2024 and 2023, respectively. Income tax expense in 2024 as compared with 2023 reflects a discrete tax benefit claimed on a prior year tax return and a net discrete tax benefit related to the resolution of an income tax matter inherited from the acquisition of People’s United.


Capital

4Q24

3Q24

4Q23

CET1

11.67 %

(1)

11.54 %

10.98 %

Tier 1 capital

13.20

(1)

13.08

12.29

Total capital

14.72

(1)

14.65

13.99

Tangible capital – common

9.07

8.83

8.20

________________________

(1)

December 31, 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 $35 million, respectively, for the quarter ended December 31, 2024.

The CET1 capital ratio for M&T was estimated at 11.67% as of December 31, 2024. M&T’s total risk-weighted assets at December 31, 2024 are estimated to be $156.7 billion.

M&T repurchased 957,988 shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $206.70 resulting in a total cost, including the share repurchase excise tax, of $200 million, compared with 1,190,054 shares at an average cost per share of $166.40 and a total cost, including the share repurchase excise tax, of $200 million in third quarter of 2024. No share repurchases occurred in the fourth quarter of 2023.

Conference Call

Investors will have an opportunity to listen to M&T’s conference call to discuss fourth 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 #MTBQ424. 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 January 23, 2025 by calling (800) 727-6189, or (402) 220-2671 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 with a branch and ATM network spanning 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; 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

Year ended

December 31,

December 31,


(Dollars in millions, except per share, shares in thousands)

2024

2023

Change

2024

2023

Change



Performance

Net income

$         681

$         482

41 %

$       2,588

$       2,741

-6 %

Net income available to common shareholders

644

457

41

2,449

2,636

-7

Per common share:

Basic earnings

3.88

2.75

41

14.71

15.85

-7

Diluted earnings

3.86

2.74

41

14.64

15.79

-7

Cash dividends

1.35

1.30

4

5.35

5.20

3

Common shares outstanding:

Average – diluted (1)

166,969

166,731

167,319

167,002

Period end (2)

165,526

166,149

165,526

166,149

Return on (annualized):

Average total assets

1.28 %

.92 %

1.23 %

1.33 %

Average common shareholders’ equity

9.75

7.41

9.54

11.06

Taxable-equivalent net interest income

$       1,740

$       1,735

$       6,902

$       7,169

-4

Yield on average earning assets

5.60 %

5.73 %

5.74 %

5.50 %

Cost of interest-bearing liabilities

2.94

3.17

3.17

2.60

Net interest spread

2.66

2.56

2.57

2.90

Contribution of interest-free funds

.92

1.05

1.01

.93

Net interest margin

3.58

3.61

3.58

3.83

Net charge-offs to average total net loans (annualized)

.47

.44

.41

.33



Net operating results (3)

Net operating income

$         691

$         494

40

$       2,630

$       2,789

-6

Diluted net operating earnings per common share

3.92

2.81

40

14.88

16.08

-7

Return on (annualized):

Average tangible assets

1.35 %

.98 %

1.30 %

1.42 %

Average tangible common equity

14.66

11.70

14.54

17.60

Efficiency ratio

56.8

62.1

56.9

54.9

At December 31,



Loan quality

2024

2023

Change

Nonaccrual loans

$       1,690

$       2,166

-22 %

Real estate and other foreclosed assets

35

39

-9

Total nonperforming assets

$       1,725

$       2,205

-22

Accruing loans past due 90 days or more (4)

$         338

$         339

Government guaranteed loans included in totals above:

Nonaccrual loans

$           69

$           53

31

Accruing loans past due 90 days or more

318

298

7

Nonaccrual loans to total loans

1.25 %

1.62 %

Allowance for credit losses to total loans

1.61

1.59



Additional information

Period end common stock price

$     188.01

$     137.08

37

Domestic banking offices

955

961

-1

Full time equivalent employees

22,101

21,980

1

____________________

(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

December 31,

September 30,

June 30,

March 31,

December 31,


(Dollars in millions, except per share, shares in thousands)

2024

2024

2024

2024

2023



Performance

Net income

$             681

$             721

$             655

$             531

$             482

Net income available to common shareholders

644

674

626

505

457

Per common share:

Basic earnings

3.88

4.04

3.75

3.04

2.75

Diluted earnings

3.86

4.02

3.73

3.02

2.74

Cash dividends

1.35

1.35

1.35

1.30

1.30

Common shares outstanding:

Average – diluted (1)

166,969

167,567

167,659

167,084

166,731

Period end (2)

165,526

166,157

167,225

166,724

166,149

Return on (annualized):

Average total assets

1.28 %

1.37 %

1.24 %

1.01 %

.92 %

Average common shareholders’ equity

9.75

10.26

9.95

8.14

7.41

Taxable-equivalent net interest income

$           1,740

$           1,739

$           1,731

$           1,692

$           1,735

Yield on average earning assets

5.60 %

5.82 %

5.82 %

5.74 %

5.73 %

Cost of interest-bearing liabilities

2.94

3.22

3.26

3.26

3.17

Net interest spread

2.66

2.60

2.56

2.48

2.56

Contribution of interest-free funds

.92

1.02

1.03

1.04

1.05

Net interest margin

3.58

3.62

3.59

3.52

3.61

Net charge-offs to average total net loans (annualized)

.47

.35

.41

.42

.44



Net operating results (3)

Net operating income

$             691

$             731

$             665

$             543

$             494

Diluted net operating earnings per common share

3.92

4.08

3.79

3.09

2.81

Return on (annualized):

Average tangible assets

1.35 %

1.45 %

1.31 %

1.08 %

.98 %

Average tangible common equity

14.66

15.47

15.27

12.67

11.70

Efficiency ratio

56.8

55.0

55.3

60.8

62.1

December 31,

September 30,

June 30,

March 31,

December 31,



Loan quality

2024

2024

2024

2024

2023

Nonaccrual loans

$           1,690

$           1,926

$           2,024

$           2,302

$           2,166

Real estate and other foreclosed assets

35

37

33

38

39

Total nonperforming assets

$           1,725

$           1,963

$           2,057

$           2,340

$           2,205

Accruing loans past due 90 days or more (4)

$             338

$             288

$             233

$             297

$             339

Government guaranteed loans included in totals above:

Nonaccrual loans

$               69

$               69

$               64

$               62

$               53

Accruing loans past due 90 days or more

318

269

215

244

298

Nonaccrual loans to total loans

1.25 %

1.42 %

1.50 %

1.71 %

1.62 %

Allowance for credit losses to total loans

1.61

1.62

1.63

1.62

1.59



Additional information

Period end common stock price

$         188.01

$         178.12

$         151.36

$         145.44

$         137.08

Domestic banking offices

955

957

957

958

961

Full time equivalent employees

22,101

21,986

22,110

21,927

21,980

____________________

(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

Year ended

December 31,

December 31,


(Dollars in millions)

2024

2023

Change

2024

2023

Change

Interest income

$     2,707

$     2,740

-1 %

$  11,026

$  10,224

8 %

Interest expense

979

1,018

-4

4,174

3,109

34

Net interest income

1,728

1,722

6,852

7,115

-4

Provision for credit losses

140

225

-38

610

645

-5

Net interest income after provision for credit losses

1,588

1,497

6

6,242

6,470

-4

Other income

Mortgage banking revenues

117

112

4

436

409

7

Service charges on deposit accounts

131

121

9

514

475

8

Trust income

175

159

11

675

680

-1

Brokerage services income

30

26

18

121

102

19

Trading account and other non-hedging
     derivative gains

10

11

-20

39

49

-21

Gain (loss) on bank investment securities

18

4

407

10

4

158

Other revenues from operations

176

145

20

632

809

-22

Total other income

657

578

14

2,427

2,528

-4

Other expense

Salaries and employee benefits

790

724

9

3,162

2,997

6

Equipment and net occupancy

133

134

-1

512

520

-2

Outside data processing and software

125

114

9

492

437

13

Professional and other services

80

99

-18

344

413

-17

FDIC assessments

24

228

-90

146

315

-54

Advertising and marketing

30

26

17

104

108

-3

Amortization of core deposit and other
     intangible assets

13

15

-15

53

62

-15

Other costs of operations

168

110

52

546

527

3

Total other expense

1,363

1,450

-6

5,359

5,379

Income before taxes

882

625

41

3,310

3,619

-9

Income taxes

201

143

41

722

878

-18

Net income

$        681

$        482

41 %

$     2,588

$     2,741

-6 %

 

Condensed Consolidated Statement of Income, Five Quarter Trend

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,


(Dollars in millions)

2024

2024

2024

2024

2023

Interest income

$         2,707

$         2,785

$         2,789

$         2,745

$         2,740

Interest expense

979

1,059

1,071

1,065

1,018

Net interest income

1,728

1,726

1,718

1,680

1,722

Provision for credit losses

140

120

150

200

225

Net interest income after provision for credit losses

1,588

1,606

1,568

1,480

1,497

Other income

Mortgage banking revenues

117

109

106

104

112

Service charges on deposit accounts

131

132

127

124

121

Trust income

175

170

170

160

159

Brokerage services income

30

32

30

29

26

Trading account and other non-hedging
     derivative gains

10

13

7

9

11

Gain (loss) on bank investment securities

18

(2)

(8)

2

4

Other revenues from operations

176

152

152

152

145

Total other income

657

606

584

580

578

Other expense

Salaries and employee benefits

790

775

764

833

724

Equipment and net occupancy

133

125

125

129

134

Outside data processing and software

125

123

124

120

114

Professional and other services

80

88

91

85

99

FDIC assessments

24

25

37

60

228

Advertising and marketing

30

27

27

20

26

Amortization of core deposit and other
     intangible assets

13

12

13

15

15

Other costs of operations

168

128

116

134

110

Total other expense

1,363

1,303

1,297

1,396

1,450

Income before taxes

882

909

855

664

625

Income taxes

201

188

200

133

143

Net income

$            681

$            721

$            655

$            531

$            482

 

Condensed Consolidated Balance Sheet

December 31,


(Dollars in millions)

2024

2023

Change

ASSETS

Cash and due from banks

$         1,909

$         1,731

10 %

Interest-bearing deposits at banks

18,873

28,069

-33

Trading account

101

106

-4

Investment securities

34,051

26,897

27

Loans and leases:

Commercial and industrial

61,481

57,010

8

Real estate – commercial

26,764

33,003

-19

Real estate – consumer

23,166

23,264

Consumer

24,170

20,791

16

Total loans and leases

135,581

134,068

1

Less: allowance for credit losses

2,184

2,129

3

Net loans and leases

133,397

131,939

1

Goodwill

8,465

8,465

Core deposit and other intangible assets

94

147

-36

Other assets

11,215

10,910

3

Total assets

$     208,105

$     208,264

— %

LIABILITIES AND SHAREHOLDERS’ EQUITY

Noninterest-bearing deposits

$       46,020

$       49,294

-7 %

Interest-bearing deposits

115,075

113,980

1

Total deposits

161,095

163,274

-1

Short-term borrowings

1,060

5,316

-80

Accrued interest and other liabilities

4,318

4,516

-4

Long-term borrowings

12,605

8,201

54

Total liabilities

179,078

181,307

-1

Shareholders’ equity:

Preferred

2,394

2,011

19

Common

26,633

24,946

7

Total shareholders’ equity

29,027

26,957

8

Total liabilities and shareholders’ equity

$     208,105

$     208,264

— %

 

Condensed Consolidated Balance Sheet, Five Quarter Trend  

December 31,

September 30,

June 30,

March 31,

December 31,


(Dollars in millions)

2024

2024

2024

2024

2023

ASSETS

Cash and due from banks

$         1,909

$         2,216

$         1,778

$         1,695

$         1,731

Interest-bearing deposits at banks

18,873

24,417

24,792

32,144

28,069

Trading account

101

102

99

99

106

Investment securities

34,051

32,327

29,894

28,496

26,897

Loans and leases

Commercial and industrial

61,481

61,012

60,027

57,897

57,010

Real estate – commercial

26,764

28,683

29,532

32,416

33,003

Real estate – consumer

23,166

23,019

23,003

23,076

23,264

Consumer

24,170

23,206

22,440

21,584

20,791

Total loans and leases

135,581

135,920

135,002

134,973

134,068

Less: allowance for credit losses

2,184

2,204

2,204

2,191

2,129

Net loans and leases

133,397

133,716

132,798

132,782

131,939

Goodwill

8,465

8,465

8,465

8,465

8,465

Core deposit and other intangible assets

94

107

119

132

147

Other assets

11,215

10,435

10,910

11,324

10,910

Total assets

$     208,105

$     211,785

$     208,855

$     215,137

$     208,264

LIABILITIES AND SHAREHOLDERS’ EQUITY

Noninterest-bearing deposits

$       46,020

$       47,344

$       47,729

$       50,578

$       49,294

Interest-bearing deposits

115,075

117,210

112,181

116,618

113,980

Total deposits

161,095

164,554

159,910

167,196

163,274

Short-term borrowings

1,060

2,605

4,764

4,795

5,316

Accrued interest and other liabilities

4,318

4,167

4,438

4,527

4,516

Long-term borrowings

12,605

11,583

11,319

11,450

8,201

Total liabilities

179,078

182,909

180,431

187,968

181,307

Shareholders’ equity:

Preferred

2,394

2,394

2,744

2,011

2,011

Common

26,633

26,482

25,680

25,158

24,946

Total shareholders’ equity

29,027

28,876

28,424

27,169

26,957

Total liabilities and shareholders’ equity

$     208,105

$     211,785

$     208,855

$     215,137

$     208,264

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

Three months ended

Change in balance

Year ended

December 31,

September 30,

December 31,

December 31, 2024 from

December 31,

Change


(Dollars in millions)

2024

2024

2023

September 30,

December 31,

2024

2023

in

Balance

Rate

Balance

Rate

Balance

Rate

2024

2023

Balance

Rate

Balance

Rate

balance

ASSETS

Interest-bearing deposits at banks

$ 23,602

4.80 %

$  25,491

5.43 %

$ 30,153

5.48 %

-7 %

-22 %

$  27,244

5.33 %

$   26,202

5.19 %

4 %

Trading account

102

3.37

101

3.40

123

3.80

1

-17

102

3.42

133

3.20

-24

Investment securities

33,679

3.88

31,023

3.70

27,490

3.13

9

23

30,755

3.64

27,932

3.09

10

Loans and leases:

Commercial and industrial

60,704

6.56

59,779

7.01

55,420

7.01

2

10

58,871

6.90

54,271

6.71

8

Real estate – commercial

27,896

6.25

29,075

6.27

33,455

6.54

-4

-17

30,271

6.32

34,473

6.33

-12

Real estate – consumer

23,088

4.45

22,994

4.41

23,339

4.25

-1

23,056

4.36

23,614

4.11

-2

Consumer

24,035

6.65

22,903

6.72

20,556

6.42

5

17

22,519

6.63

20,380

6.03

10

Total loans and leases

135,723

6.17

134,751

6.38

132,770

6.33

1

2

134,717

6.31

132,738

6.07

1


Total earning assets

193,106

5.60

191,366

5.82

190,536

5.73

1

1

192,818

5.74

187,005

5.50

3

Goodwill

8,465

8,465

8,465

8,465

8,473

Core deposit and other intangible assets

100

113

154

-11

-35

120

177

-32

Other assets

10,182

9,637

9,597

6

6

9,817

9,742

1

Total assets

$   211,853

$   209,581

$   208,752

1 %

1 %

$   211,220

$   205,397

3 %

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing deposits

Savings and interest-checking

     deposits

$   102,127

2.44 %

$  98,295

2.65 %

$ 93,365

2.58 %

4 %

9 %

$  97,824

2.57 %

$   89,489

1.95 %

9 %

Time deposits

15,958

3.95

17,052

4.19

21,224

4.30

-6

-25

18,339

4.26

17,131

3.92

7

Total interest-bearing deposits

118,085

2.64

115,347

2.88

114,589

2.90

2

3

116,163

2.84

106,620

2.27

9

Short-term borrowings

2,563

4.93

4,034

5.60

5,156

5.27

-36

-50

4,440

5.45

5,758

5.07

-23

Long-term borrowings

11,665

5.57

11,394

5.83

7,901

5.70

2

48

11,083

5.76

7,296

5.49

52


Total interest-bearing liabilities

132,313

2.94

130,775

3.22

127,646

3.17

1

4

131,686

3.17

119,674

2.60

10

Noninterest-bearing deposits

46,554

46,158

50,124

1

-7

47,260

55,474

-15

Other liabilities

4,279

3,923

4,482

9

-5

4,222

4,350

-3

Total liabilities

183,146

180,856

182,252

1

183,168

179,498

2

Shareholders’ equity

28,707

28,725

26,500

8

28,052

25,899

8

Total liabilities and shareholders’ equity

$   211,853

$   209,581

$   208,752

1 %

1 %

$   211,220

$   205,397

3 %

Net interest spread

2.66

2.60

2.56

2.57

2.90

Contribution of interest-free funds

.92

1.02

1.05

1.01

.93

Net interest margin

3.58 %

3.62 %

3.61 %

3.58 %

3.83 %

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

Three months ended

Year ended

December 31,

December 31,

2024

2023

2024

2023


(Dollars in millions, except per share)



Income statement data


Net income

Net income

$       681

$       482

$    2,588

$    2,741

Amortization of core deposit and other intangible assets (1)

10

12

42

48

Net operating income

$       691

$       494

$    2,630

$    2,789


Earnings per common share

Diluted earnings per common share

$      3.86

$      2.74

$    14.64

$    15.79

Amortization of core deposit and other intangible assets (1)

.06

.07

.24

.29

Diluted net operating earnings per common share

$      3.92

$      2.81

$    14.88

$    16.08


Other expense

Other expense

$    1,363

$    1,450

$    5,359

$    5,379

Amortization of core deposit and other intangible assets

(13)

(15)

(53)

(62)

Noninterest operating expense

$    1,350

$    1,435

$    5,306

$    5,317


Efficiency ratio

Noninterest operating expense (numerator)

$    1,350

$    1,435

$    5,306

$    5,317

Taxable-equivalent net interest income

$    1,740

$    1,735

$    6,902

$    7,169

Other income

657

578

2,427

2,528

Less: Gain (loss) on bank investment securities

18

4

10

4

Denominator

$    2,379

$    2,309

$    9,319

$    9,693

Efficiency ratio

56.8 %

62.1 %

56.9 %

54.9 %



Balance sheet data


Average assets

Average assets

$ 211,853

$ 208,752

$ 211,220

$ 205,397

Goodwill

(8,465)

(8,465)

(8,465)

(8,473)

Core deposit and other intangible assets

(100)

(154)

(120)

(177)

Deferred taxes

29

39

33

44

Average tangible assets

$ 203,317

$ 200,172

$ 202,668

$ 196,791


Average common equity

Average total equity

$  28,707

$  26,500

$  28,052

$  25,899

Preferred stock

(2,394)

(2,011)

(2,344)

(2,011)

Average common equity

26,313

24,489

25,708

23,888

Goodwill

(8,465)

(8,465)

(8,465)

(8,473)

Core deposit and other intangible assets

(100)

(154)

(120)

(177)

Deferred taxes

29

39

33

44

Average tangible common equity

$  17,777

$  15,909

$  17,156

$  15,282


At end of quarter


Total assets

Total assets

$ 208,105

$ 208,264

Goodwill

(8,465)

(8,465)

Core deposit and other intangible assets

(94)

(147)

Deferred taxes

28

37

Total tangible assets

$ 199,574

$ 199,689


Total common equity

Total equity

$  29,027

$  26,957

Preferred stock

(2,394)

(2,011)

Common equity

26,633

24,946

Goodwill

(8,465)

(8,465)

Core deposit and other intangible assets

(94)

(147)

Deferred taxes

28

37

Total tangible common equity

$  18,102

$  16,371

____________________

(1)

After any related tax effect.

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023


(Dollars in millions, except per share)



Income statement data


Net income

Net income

$                     681

$                     721

$                     655

$                     531

$                     482

Amortization of core deposit and other intangible assets (1)

10

10

10

12

12

Net operating income

$                     691

$                     731

$                     665

$                     543

$                     494


Earnings per common share

Diluted earnings per common share

$                    3.86

$                    4.02

$                    3.73

$                    3.02

$                    2.74

Amortization of core deposit and other intangible assets (1)

.06

.06

.06

.07

.07

Diluted net operating earnings per common share

$                    3.92

$                    4.08

$                    3.79

$                    3.09

$                    2.81


Other expense

Other expense

$                  1,363

$                  1,303

$                  1,297

$                  1,396

$                  1,450

Amortization of core deposit and other intangible assets

(13)

(12)

(13)

(15)

(15)

Noninterest operating expense

$                  1,350

$                  1,291

$                  1,284

$                  1,381

$                  1,435


Efficiency ratio

Noninterest operating expense (numerator)

$                  1,350

$                  1,291

$                  1,284

$                  1,381

$                  1,435

Taxable-equivalent net interest income

$                  1,740

$                  1,739

$                  1,731

$                  1,692

$                  1,735

Other income

657

606

584

580

578

Less: Gain (loss) on bank investment securities

18

(2)

(8)

2

4

Denominator

$                  2,379

$                  2,347

$                  2,323

$                  2,270

$                  2,309

Efficiency ratio

56.8 %

55.0 %

55.3 %

60.8 %

62.1 %



Balance sheet data


Average assets

Average assets

$             211,853

$             209,581

$             211,981

$             211,478

$             208,752

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(100)

(113)

(126)

(140)

(154)

Deferred taxes

29

28

30

33

39

Average tangible assets

$             203,317

$             201,031

$             203,420

$             202,906

$             200,172


Average common equity

Average total equity

$               28,707

$               28,725

$               27,745

$               27,019

$               26,500

Preferred stock

(2,394)

(2,565)

(2,405)

(2,011)

(2,011)

Average common equity

26,313

26,160

25,340

25,008

24,489

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(100)

(113)

(126)

(140)

(154)

Deferred taxes

29

28

30

33

39

Average tangible common equity

$               17,777

$               17,610

$               16,779

$               16,436

$               15,909


At end of quarter


Total assets

Total assets

$             208,105

$             211,785

$             208,855

$             215,137

$             208,264

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(94)

(107)

(119)

(132)

(147)

Deferred taxes

28

30

31

34

37

Total tangible assets

$             199,574

$             203,243

$             200,302

$             206,574

$             199,689


Total common equity

Total equity

$               29,027

$               28,876

$               28,424

$               27,169

$               26,957

Preferred stock

(2,394)

(2,394)

(2,744)

(2,011)

(2,011)

Common equity

26,633

26,482

25,680

25,158

24,946

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(94)

(107)

(119)

(132)

(147)

Deferred taxes

28

30

31

34

37

Total tangible common equity

$               18,102

$               17,940

$               17,127

$               16,595

$               16,371

____________________

(1)

After any related tax effect.

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SOURCE M&T Bank Corporation