M&T(MTB)2024-08-05 19:16Financial 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].