Financial Performance - Net interest income for the second quarter of 2024 was $1,718 million, an increase of $38 million or 2% from the previous quarter, but a decline of $219 million or 6% compared to the same period in 2023[137]. - Net income for the second quarter of 2024 was $655 million, an increase of $124 million or 23% from the previous quarter, but a decrease of $383 million or 24% compared to the same period in 2023[137]. - Diluted net operating earnings per share for the second quarter of 2024 were $3.79, an increase of $0.70 or 23% from the previous quarter, but a decrease of $2.32 or 25% compared to the same period in 2023[142]. - Total revenue for Q2 2024 was $717 million, reflecting an 18 million increase from Q1 2024, but a decrease of $154 million compared to the same period in 2023[265]. - Net income for Q2 2024 was $655 million, up from $531 million in Q1 2024, representing a 23.3% increase[296]. Credit Losses and Asset Quality - Provision for credit losses decreased by $50 million to $150 million in the second quarter of 2024, reflecting lower commercial real estate loans and improved forecasted real estate prices[138]. - Nonaccrual loans decreased by $278 million from March 31, 2024, to June 30, 2024, primarily due to lower commercial real estate nonaccrual loans[187]. - Total nonperforming assets amounted to $2,057 million as of June 30, 2024, down from $2,340 million on March 31, 2024[186]. - The company recorded a total provision for credit losses of $350 million for the six months ended June 30, 2024, compared to $270 million for the same period in 2023[180]. - Nonperforming assets to total net loans and leases ratio was 1.52% as of June 30, 2024, down from 1.73% on March 31, 2024[186]. Interest Income and Margin - Interest income for Q2 2024 was $2,802 million, an increase from $2,757 million in Q1 2024[293]. - The net interest margin for the second quarter of 2024 was 3.59%, an increase from 3.52% in the first quarter of 2024[174]. - The yield on earning assets increased to 5.82% in the second quarter of 2024, up from 5.74% in the first quarter of 2024[172]. - Taxable-equivalent net interest income for the first six months of 2024 was $3.42 billion, down from $3.64 billion in the same period of 2023, reflecting a 41 basis-point narrowing of the net interest margin to 3.56%[149]. Deposits and Funding - Average interest-bearing deposits rose to $115.757 billion in Q2 2024, generating $835 million in interest, compared to $115.450 billion and $840 million in Q1 2024[145]. - Total deposits as of June 30, 2024, amounted to $163,491 million, a slight decrease from $164,065 million as of March 31, 2024[167]. - Average total deposits were $163.5 billion in Q2 2024, a decrease of $574 million from Q1 2024[162]. - The company maintains available liquidity sources representing approximately 141% of uninsured deposits that are not collateralized as of June 30, 2024[238]. Equity and Capital - Shareholders' equity increased to $27.745 billion in Q2 2024, compared to $27.019 billion in Q1 2024[145]. - Total shareholders' equity increased to $28.424 billion as of June 30, 2024, up from $26.957 billion on December 31, 2023[255]. - M&T's current SCB is 4.0%, estimated to be 3.8% effective October 1, 2024[259]. - As of June 30, 2024, M&T's CET1 ratio is 11.45%, Tier 1 capital ratio is 13.23%, and total capital ratio is 14.88%[259]. Noninterest Income and Expenses - Other income for the first six months of 2024 declined by $226 million compared to the same period in 2023, primarily due to a $225 million gain on the sale of the CIT business in April 2023[140]. - Noninterest income increased by $13 million in Q2 2024, driven by higher credit-related fees and commercial mortgage banking revenues[267]. - Total other expenses decreased by $99 million, or 7%, to $1.297 billion for the three months ended June 30, 2024, compared to $1.396 billion in the previous quarter[228]. - Noninterest expense decreased to $1,284 million in Q2 2024 from $1,381 million in Q1 2024, a reduction of 7.0%[296]. Economic Outlook and Risks - The business climate in the first half of 2024 has been affected by inflationary pressures and elevated interest rates, impacting borrowers in various sectors[193]. - The company anticipates a potential downside economic scenario could increase modeled credit losses by $361 million[208]. - The estimated national unemployment rate for Year 1 is 4.5% and for Year 2 is 4.7%[207]. - Forward-looking statements are subject to uncertainties and may not guarantee future performance, with risks including market volatility and regulatory changes[289].

Core Viewpoint - M&T Bank reported strong Q2 earnings, surpassing consensus estimates, and showing improvement in credit quality, which alleviates some concerns regarding reserves [2][12]. Financial Performance - In Q2, M&T Bank earned $3.79 per share, exceeding consensus by $0.28, with revenue of $2.3 billion slightly above estimates [2]. - Earnings increased by $0.70 sequentially, indicating solid financial performance [2]. - Net interest income rose by $39 million to $1.73 billion, with a net interest margin (NIM) of 3.59%, up 7 basis points sequentially [9]. Credit Quality - The company experienced meaningful improvement in credit quality, with nonaccrual loans declining by $300 million from Q1 and $400 million from the previous year [11]. - M&T took $150 million in provisions for credit loss, down from $200 million last quarter, indicating a shift away from commercial real estate (CRE) [12]. - The bank's nonaccrual loans now total $2.0 billion, reflecting effective recovery efforts [11]. Deposit Trends - M&T Bank has $163.5 billion in deposits, down $600 million from the previous quarter but up 1.7% year-over-year [9]. - Deposit costs remained flat at 2.06%, despite a decline in noninterest-bearing deposits [10]. - Consumer deposits increased, while brokered deposits decreased, indicating a favorable deposit mix [10]. Market Position and Valuation - M&T's shares are viewed as fairly valued at approximately 11x earnings power, similar to peers like Fifth Third [13]. - The bank's common equity tier 1 (CET1) capital ratio stands at 11.4%, providing a buffer against lower reserves [12]. - The outlook for the year appears credible, with expectations for a normalized NIM of around 3.54% to 3.60% by year-end [12].

M&T Bank Corporation MTB reported better-than-expected second-quarter financial results on Thursday. M&T Bank shares fell 0.5% to trade at $166.51 on Friday. Read Next: Loading... "Building on a strong start to the year, the second quarter results reflect a 24% increase in diluted earnings per common share from the first quarter. We continued to grow our commercial and industrial and consumer loan portfolios, while lessening our commercial real estate exposure. Credit metrics improved as both nonaccrual and ...

M&T Bank Corporation's (MTB) second-quarter 2024 net operating earnings per share (EPS) of $3.79 topped the Zacks Consensus Estimate of $3.50. However, the bottom line compared unfavorably with $5.12 earned in the year-ago quarter. Results benefited from a rise in loans and leases and higher deposits. A decline in net interest income (NII) and higher expenses were spoilsport. M&T Bank's quarterly revenues were $2.32 billion, surpassing the consensus estimate of $2.27 billion. However, the reported figure de ...

Financial Performance - Net income for Q2 2024 was $655 million, compared to $531 million in Q1 2024, representing a 23% increase[14]. - Net income for the quarter was reported at $655 million, or $3.73 of diluted earnings per common share[29]. - Net income for Q2 2024 was $655 million, a decrease of 25% from $867 million in Q2 2023[68]. - Net income available to common shareholders decreased by 26% to $626 million from $841 million year-over-year[68]. - Basic earnings per share fell to $3.75, down 26% from $5.07 in the same quarter last year[68]. - Net income for the three months ended June 30, 2024, was $655 million, a decrease from $867 million in the same period last year, representing a decline of 24.4%[81]. - Diluted earnings per common share decreased to $3.73 from $5.05 year-over-year, reflecting a decline of 26%[81]. Asset Management - Total assets decreased to $208,855 million from $215,137 million, a decline of approximately 2.6%[2]. - Total assets increased to $211,981 million, reflecting a 4% growth compared to $204,376 million in the previous year[5]. - Total assets increased by 1% to $208,855 million in June 2024 from $207,672 million in March 2024[9]. - Average assets increased to $211,981 million from $204,376 million year-over-year, showing a growth of 3.9%[81]. - Total tangible common equity reached $17,127 million, compared to $15,192 million, reflecting a growth of 12.8%[81]. Deposits and Loans - Total deposits fell to $159,910 million, down 4.3% from $167,196 million[2]. - Total deposits decreased by 1% to $159,910 million in June 2024 from $162,058 million in March 2024[9]. - Net loans and leases increased slightly to $132,798 million, compared to $132,782 million, reflecting a marginal growth[2]. - Total loans and leases net of unearned discount reached $134,588 million, with a 1% increase from $133,545 million year-over-year[5]. - Commercial and industrial loans rose to $60,027 million, an increase of 3.7% from $57,897 million[2]. - Commercial and industrial loans grew by 2% to $58,152 million, up from $56,821 million[5]. Equity and Capital - Shareholders' equity increased to $28,424 million, up 4.6% from $27,169 million[2]. - Total shareholders' equity increased to $27,745 million, a 3% rise from $25,685 million[5]. - Common equity Tier 1 (CET1) capital ratio was estimated at 11.44% as of June 30, 2024, up from 11.08% in Q1 2024[22]. - CET1 capital ratio improved to 11.44% as of June 30, 2024, up from 10.59% a year earlier[56]. - Total common equity rose to $25,680 million from $25,158 million in the previous quarter, indicating a solid capital position[89]. Income and Expenses - Net interest income for Q2 2024 was $1,718 million, an increase of 2% from Q1 2024's $1,680 million[14]. - Noninterest income totaled $584 million, slightly up from $580 million in Q1 2024[14]. - Total noninterest income for the quarter was $584 million, a decrease of 27% compared to the same quarter last year[41]. - Noninterest operating expense for the quarter was $1,284 million, slightly up from $1,278 million in the previous year, indicating a marginal increase of 0.5%[81]. - Total noninterest expense was $1.30 billion, down from $1.40 billion in the first quarter of 2024, reflecting a decrease in salaries and employee benefits[63]. Credit Quality - The allowance for credit losses increased to $2,204 million, up from $2,191 million, indicating a cautious approach to credit risk[2]. - Provision for credit losses decreased to $150 million in Q2 2024 from $200 million in Q1 2024[14]. - Nonaccrual loans decreased to $2.0 billion, down 12% from the previous quarter and 17% year-over-year[48]. - Net charge-offs totaled $137 million, slightly down from $138 million in the first quarter of 2024[50]. - Allowance for credit losses increased to $2.204 billion, representing 1.63% of loans outstanding[50]. Efficiency and Ratios - The efficiency ratio improved to 55.3% in Q2 2024 from 60.8% in Q1 2024[22]. - The efficiency ratio improved to 55.3% compared to 48.9% in the same quarter last year, indicating a decrease in operational efficiency[81]. - The effective income tax rate increased to 23.4% in the second quarter of 2024, compared to 20.0% in the first quarter of 2024[55]. - Average interest-bearing liabilities increased by $758 million, or 1%, from the first quarter of 2024[28]. Interest Income and Expense - Interest income increased by 11% to $2,789 million compared to $2,516 million in the same quarter of 2023[86]. - Interest expense rose significantly by 50% to $1,071 million from $717 million year-over-year[86]. - Net interest margin widened to 3.59%, up from 3.52% in the first quarter of 2024[30]. - Net interest margin decreased to 3.59% from 3.91% in Q2 2023[68].

| --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------|------------|------------|------------------------|------------|------------------------| | (Dollars in millions, except per share data) | 2Q24 | 1Q24 | Change 2Q24 vs. \n1Q24 | 2Q23 | Change 2Q24 vs. \n2Q23 | | Net operating income Diluted net operating earnings per common share | $ 665 3.79 | $ 543 3.09 | 22 % 23 | $ 879 5.12 | -24 % -26 | | Annualized return on average tangible assets | 1.31 % ...

Core Viewpoint - M&T Bank Corporation (MTB) is expected to report a decline in both revenues and earnings for the second quarter of 2024, with earnings estimated at $3.53, reflecting a 31.1% decrease year-over-year [1][3]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for MTB's second-quarter earnings is $3.53, indicating a 31.1% decline from the previous year [3]. - The consensus estimate for revenues is pegged at $2.27 billion, suggesting a fall of 12.8% from the prior-year reported level [13]. - Quarterly earnings have surpassed consensus estimates in two of the last four quarters, with an average earnings surprise of 0.66% [2]. Group 2: Loan and Interest Income - Demand for commercial and industrial loans, as well as commercial real estate loans, was decent in Q2 2024, supported by the Federal Reserve's high interest rate environment [5]. - The Zacks Consensus Estimate for average interest-earning assets is $193.6 billion, indicating a marginal increase from the prior quarter [6]. - Management projects net interest income (NII) of $1.70 billion, reflecting a 2.6% decline from the previous quarter [7]. Group 3: Expenses and Fee Income - Company expenses are rising due to investments in strengthening franchises, with management expecting expenses between $1.29 billion and $1.31 billion [9]. - The consensus estimate for brokerage services income is $28 million, suggesting a marginal decline from the first quarter of 2024 [8]. - The consensus estimate for non-interest income is $580 million, while management expects it to be $570 million [18]. Group 4: Mortgage Banking and Refinancing - Mortgage rates declined slightly, with the 30-year fixed mortgage rate falling to 6.7% in June, which may have led to a modest rise in refinancing activities [7][23]. - The Zacks Consensus Estimate for mortgage banking is pegged at $108 million, indicating a 3.8% increase from the prior quarter [17]. Group 5: Overall Performance Outlook - The combination of a positive Earnings ESP of +0.31% and a Zacks Rank of 3 suggests that the company may experience an earnings beat this quarter [19][25]. - The inverted yield curve and high funding costs are expected to negatively impact NII expansion [15].

M&T Bank Corporation (MTB) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price ch ...

The Company's regulatory minimum CET1 ratio implied by the preliminary SCB is now 8.3%, down from 8.5%. M&T expects the second quarter 2024 CET1 ratio to be over 11.35%. "The results of this year's stress test reflect the strength of the company's core earnings power, capital, and ongoing risk management work, including the reduction in the commercial real estate concentration," said Daryl Bible, M&T's Chief Financial Officer. "This strong capital position supports organic growth, as well as growth in new c ...

Kin 110 1 I 18 I Conclusion May 2024 Investor Presentation MTB provides its customers with a wide range of retail and commercial banking, trust and wealth management, and investment services. It has grown through the strategic acquisition of banks and thrift institutions. It has made 24 successful integrations since 1987, with the most recent being the acquisition of People's United Financial in 2022 to create a $200 billion banking franchise. This was also MTB's largest acquisition to date, bringing in $64 ...