M&T(US:MTB)2025-10-27 21:05Financial Performance - Net income for the three months ended September 30, 2025, was $792 million, up from $721 million in the same period of 2024, representing an increase of 9.84%[20] - Net income for the nine months ended September 30, 2025, was $2,092 million, an increase of 9.7% compared to $1,907 million in 2024[24] - Total revenue for the nine months ended September 30, 2025, reached $1,237 million, a 7.7% increase from $1,149 million in the same period of 2024[83] - Basic earnings per common share for the three months ended September 30, 2025, was $4.85, compared to $4.04 in 2024, reflecting a 20.1% increase[85] - Diluted earnings per common share for the nine months ended September 30, 2025, was $12.34, up from $10.78 in 2024, representing a 14.5% growth[86] Asset and Liability Management - Total assets increased to $211.277 billion as of September 30, 2025, compared to $208.105 billion at December 31, 2024, reflecting a growth of 1.05%[16] - The total liabilities increased to $182.549 billion as of September 30, 2025, from $179.078 billion at December 31, 2024, reflecting a growth of 2.18%[16] - Total deposits rose to $163.426 billion as of September 30, 2025, from $161.095 billion at December 31, 2024, marking a growth of 1.44%[16] - Total borrowings increased to $14.987 billion as of September 30, 2025, up from $13.665 billion at December 31, 2024, reflecting a rise of approximately 9.7%[72] Credit Losses and Provisions - The provision for credit losses was $125 million for the three months ended September 30, 2025, compared to $120 million for the same period in 2024, indicating a slight increase of 4.17%[20] - The provision for credit losses decreased to $380 million in 2025 from $470 million in 2024, a reduction of 19.1%[24] - The allowance for loan losses was $1.512 billion, with nonaccrual loans totaling $1.512 billion[41] - The provision for credit losses for the three months ended September 30, 2025, was $110 million, while net charge-offs totaled $146 million, leading to an ending balance of $2.161 billion in the allowance for loan losses[53] Income and Revenue Sources - Other income for the three months ended September 30, 2025, totaled $752 million, an increase from $606 million in the same period of 2024, reflecting a growth of 24.1%[20] - Service charges on deposit accounts increased to $141 million for the three months ended September 30, 2025, up from $132 million in the same period of 2024, representing a growth of 6.8%[82] - Trust income rose to $181 million in Q3 2025, compared to $170 million in Q3 2024, an increase of 6.5%[82] - Noninterest income increased by 16% to $2,046 million for the nine months ended September 30, 2025, compared to $1,770 million for the same period in 2024[152] Investment Securities - As of September 30, 2025, the amortized cost of investment securities was $35.711 billion, with an estimated fair value of $35.087 billion, reflecting gross unrealized losses of $879 million[35] - The Company does not anticipate selling any impaired investment securities at a loss as of September 30, 2025[38] - The total investment securities for the nine months ended September 30, 2025, were $35,466 million, generating $1,056 million in interest income, with an average rate of 3.98%[166] Loan Portfolio - As of September 30, 2025, total loans amounted to $136.974 billion, with $133.830 billion classified as current loans[41] - The total amount of foreclosed property held was $37 million, with $180 million in loans secured by residential real estate in the process of foreclosure[44] - The total amount of commercial real estate loans was $20.062 billion, with a slight decrease from $20.780 billion at the end of 2024[41] - The total for residential builder and developer loans classified as "Pass" was $742 million[50] Nonperforming Assets - The company reported total past due loans of $1.255 billion for the twelve months ended September 30, 2025, compared to $1.247 billion for the same period in 2024, reflecting a marginal increase of 0.6%[69] - Total nonperforming assets were $1.549 billion as of September 30, 2025, down from $1.603 billion in the previous quarter[204] - Nonaccrual loans decreased by $61 million from June 30, 2025, to September 30, 2025, reflecting declines in commercial and industrial, commercial real estate, and residential real estate nonaccrual loans[205] Capital Management - The company repurchased 2.1 million shares of common stock at a total cost of $409 million during the recent quarter, compared to 6.1 million shares at a cost of $1.1 billion in the second quarter of 2025[155] - Average tangible common equity increased to 17.13% from 15.54% in the previous quarter, indicating stronger capital position[157] Interest Rate Management - The company has utilized interest rate swap agreements to manage interest rate risk, with a total notional amount of $31,100 million as of September 30, 2025[174] - The net interest margin expanded by 6 basis points to 3.68% in the third quarter of 2025 compared to 3.62% in the second quarter of 2025[153] - The net interest spread for the nine months ended September 30, 2025, was 2.83%, compared to 2.55% for the same period in 2024[166] Tax and Regulatory Matters - The company’s effective income tax rate for the nine months ended September 30, 2025, was 23.1%, compared to 21.5% for the same period in 2024[154] - The Company does not expect the new accounting standards related to income tax disclosures to have a material impact on its consolidated financial statements[30]