M&T(US:MTB)2024-07-18 10:08Financial 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].