Core Viewpoint - M&T Bank Corporation is set to announce its third quarter 2024 earnings results on October 17, 2024, before market opening, followed by a conference call to discuss the results [1]. Group 1: Earnings Announcement - The earnings results will be released in a press release before the market opens on October 17, 2024 [1]. - A conference call and webcast will take place at 8:00 a.m. (ET) on the same day to discuss the earnings results [1]. Group 2: Participation Details - Domestic callers can participate by dialing toll-free (800) 347-7315, while international participants can call (785) 424-1755 [2]. - Callers should reference M&T Bank Corporation or the conference ID MTBQ324 during the call [2]. Group 3: Replay Information - A replay of the conference call will be available until October 24, 2024, through specific phone numbers for domestic and international participants [3]. - The webcast archive will be accessible on M&T's website by 3:00 p.m. on October 17, 2024 [3]. Group 4: Company Overview - M&T Bank Corporation is a financial holding company based in Buffalo, New York, providing banking products and services across 12 states from Maine to Virginia and Washington, D.C. [4]. - Trust-related services are offered in select markets in the U.S. and internationally through M&T's Wilmington Trust-affiliated companies and M&T Bank [4].

BUFFALO, N.Y., Aug. 20, 2024 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:MTB) announced that it has declared a quarterly cash dividend of $1.35 per share on its common stock. The dividend will be payable September 30, 2024, to shareholders of record at the close of business on September 3, 2024. 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 in 12 states across the northeastern U.S. ...

Core Insights - M&T Bank has appointed Lopa Kolluri as Head of Affordable Housing Lending, emphasizing its commitment to affordable housing and community support [1][2] - Kolluri will oversee the development and management of the Affordable Housing vertical, aiming to enhance customer service and expand business opportunities [1][2] - The bank recognizes the growing need for affordable housing and aims to provide comprehensive financing solutions to meet client needs [2][3] Company Overview - M&T Bank Corporation is headquartered in Buffalo, New York, and operates in 12 states across the northeastern U.S. [5] - The bank's principal subsidiary, M&T Bank, offers a range of banking products and services, including trust-related services in select markets [5] Leadership Background - Lopa Kolluri brings over 25 years of experience in affordable housing and community development, previously serving as Senior Vice President in M&T's Commercial Real Estate Innovation Office [2][3] - Before joining M&T, Kolluri led the Federal Housing Administration at the U.S. Department of Housing and Urban Development, overseeing $1.2 trillion in insured mortgages [3]

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].

Core Insights - M&T Bank Corporation reported better-than-expected second-quarter financial results, with a 24% increase in diluted earnings per share from the first quarter [4] - The bank's quarterly earnings were $3.79 per share, surpassing the analyst consensus estimate of $3.50 per share, and quarterly sales reached $2.302 billion, exceeding expectations of $2.277 billion [7] Financial Performance - The second quarter results reflect a strong start to the year, with significant growth in commercial and industrial and consumer loan portfolios while reducing commercial real estate exposure [4] - Credit metrics improved, with both nonaccrual and total criticized loans declining sequentially [4] Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst David Konrad maintained a Market Perform rating and increased the price target from $170 to $180 [5] - DA Davidson analyst Peter Winter maintained a Neutral rating and raised the price target from $159 to $185 [5] - RBC Capital analyst Gerard Cassidy maintained an Outperform rating and increased the price target from $160 to $174 [5] Market Reaction - Following the announcement of the financial results, M&T Bank shares fell 0.5% to trade at $166.51 [2]

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 Operating Return on Average Tangible Common Equity (ROTCE) increased by 260 basis points Quarter-over-Quarter (QoQ)[71] - Tangible Book Value per Share increased by 3% QoQ to $10242[43] - Diluted Earnings Per Share (EPS) increased by 24% QoQ[105] Balance Sheet - Total loans increased by 1% QoQ to $1346 billion[6] - Consumer loans rose by 4% QoQ, an increase of $829 million, driven by growth in recreational finance and indirect auto[8] - Commercial Real Estate (CRE) loans declined by 4% QoQ, a decrease of $12 billion[109] - Average deposits decreased by less than 05% QoQ, a decrease of $574 million[10] - Noninterest-bearing deposits declined by $881 million, primarily commercial deposits[10] Income Statement - Taxable-equivalent net interest income increased by 2% QoQ, an increase of $39 million[94] - Noninterest expense decreased by 7% QoQ, a decrease of $99 million[141] - Salaries and employee benefits expense decreased by 8% QoQ, a decrease of $69 million[135] Asset Quality - Provision for Credit Losses declined by 25% QoQ[76]

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 % ...