M&T(MTB) - 2025 Q1 - Quarterly Results

Financial Performance - M&T Bank Corporation reported a net income of $584 million, or$ 3.32 per diluted share, for Q1 2025, compared to $681 million and$ 3.86 per diluted share in Q4 2024[1][2]. - Net income for Q1 2025 was $584 million, an increase of 10% from$ 531 million in Q1 2024[39]. - Net income available to common shareholders rose to $547 million, up 8% from$ 505 million year-over-year[39]. - Basic earnings per share increased to $3.33, reflecting a 10% growth compared to$ 3.04 in the previous year[39]. - Net income for the quarter increased by 10% to $584 million, compared to$ 531 million in the prior year[43]. - Diluted earnings per share decreased to $3.32 from$ 3.86 in the previous quarter[50]. Income and Revenue - Net interest income for Q1 2025 was $1,707 million, a decrease of 2% from$ 1,740 million in Q4 2024, while noninterest income was $611 million, down from$ 657 million in the previous quarter[2][6]. - Noninterest income fell by $46 million, or 7%, in 1Q25 compared to 4Q24, but rose by$ 31 million, or 5%, compared to 1Q24[21][22]. - Total other income rose by 5% to $611 million, driven by increases in mortgage banking revenues (up 13% to$ 118 million) and trust income (up 11% to $177 million)[43]. - Interest income decreased by 7% to$ 2,560 million compared to $2,745 million in the same period last year[43]. - Net interest income after provision for credit losses increased by 6% to$ 1,565 million from $1,480 million year-over-year[43]. Asset and Loan Management - Average loans and leases decreased by$ 879 million, primarily due to a decline in commercial real estate loans, while total loans and leases stood at $134,844 million[2][15]. - Total loans and leases slightly decreased by 1% to$ 134,844 million compared to $135,723 million in the previous quarter[49]. - Nonaccrual loans improved to 1.14% of total loans, down from 1.25% at the end of Q4 2024, indicating better credit quality[6][2]. - Nonaccrual loans decreased to$ 1.54 billion in 1Q25, down 9% from 4Q24 and 33% from 1Q24[18]. - Total nonperforming assets also fell by 33% to $1.57 billion, down from$ 2.34 billion year-over-year[39]. Capital and Equity - M&T's CET1 capital ratio declined to an estimated 11.50% in Q1 2025, down from 11.68% in Q4 2024, following share repurchases totaling $662 million[6][3]. - CET1 capital ratio was estimated at 11.50% as of March 31, 2025, compared to 11.68% in 4Q24[28][29]. - Total shareholders' equity increased by 7% to$ 28,991 million from $27,169 million in the prior year[46]. - Average total equity increased to$ 28,998 million from $28,707 million in the previous quarter[50]. Expenses and Efficiency - The efficiency ratio for Q1 2025 was 60.5%, compared to 56.8% in Q4 2024, indicating a rise in operational costs relative to income[2][8]. - Noninterest expense increased by$ 52 million, or 4%, from 4Q24, and by $19 million, or 1%, from 1Q24[24][25]. - The efficiency ratio improved to 60.5% from 60.8% in the previous year, indicating better cost management[41]. Shareholder Returns - The company repurchased 3,415,303 shares of common stock in Q1 2025, costing$ 662 million, including taxes[6][2]. - Cash dividends declared totaled $223 million for common stock and$ 36 million for preferred stock in 1Q25[29]. - M&T repurchased 3,415,303 shares of common stock at an average cost of $192.06 per share, totaling$ 662 million in 1Q25[30]. Tax and Regulatory - The effective income tax rate was 23.2% in 1Q25, up from 22.8% in 4Q24 and 20.0% in 1Q24[26]. Deposits and Borrowings - Average interest-bearing deposits at banks decreased by $3.9 billion, reflecting a decline in average deposits and share repurchases[10][15]. - Noninterest-bearing deposits decreased by 3% to$ 49,051 million, while total deposits decreased by 1% to $165,409 million[46]. - Short-term borrowings significantly decreased by 67% to$ 1,573 million compared to $4,795 million in the previous year[46].