01—Abstract
Summary
Summary of the 10-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
M&T Bank Corporation (NYSE: MTB) reported net income of $2.59 billiona for 2024, down 6% from $2.74 billion in 2023, and diluted earnings per share of $14.64 versus $15.79.
The decline reflects lower net interest income as higher deposit and borrowing costs outpaced increased yields on earning assets. Taxable-equivalent net interest income fell $267 millionb, or 4%, to $6.90 billion, and the net interest margin narrowed 25 basis points to 3.58%. Noninterest income declined $101 million, or 4%, mainly due to the 2023 gain on the sale of the CIT business, while noninterest expense was roughly flat at $5.36 billion.
The provision for credit losses fell to $610 millionc from $645 million, reflecting improved performance of commercial real estate loans. At December 31, 2024, the Company had consolidated total assets of $208.1 billion, deposits of $161.1 billion and shareholders' equity of $29.0 billion. Credit metrics improved: nonaccrual loans declined to $1.69 billion from $2.17 billion, and criticized investor-owned commercial real estate loans fell to $6.0 billion from $8.8 billion.
Capital remained strong, with a CET1 ratio of 11.68% at year-end and a stress capital buffer of 3.8% effective October 1, 2024. In January 2025, the board authorized a new $4.0 billiond share repurchase program, replacing the prior $3.0 billion program. The filing also highlights ongoing regulatory and strategic considerations.
M&T is a Category IV banking organization under the Tailoring Rules, and it faces proposed changes to capital and long-term debt requirements. The Company has also reduced its commercial real estate concentration to 136% of Tier 1 capital plus allowance, down from 183%, and uninsured deposits were estimated at $73.0 billion at year-end 2024.
02—Key points
Key Highlights
- Net income of $2.59 billion in 2024, down 6% from $2.74 billion in 2023; diluted EPS of $14.64 versus $15.79.
- Taxable-equivalent net interest income fell 4% to $6.90 billion, with net interest margin narrowing 25 basis points to 3.58%.
- Noninterest income declined $101 million (4%) to $2.43 billion, largely reflecting the 2023 CIT business sale gain of $225 million.
- Provision for credit losses decreased to $610 million from $645 million; nonaccrual loans fell to $1.69 billion from $2.17 billion.
- Criticized investor-owned commercial real estate loans improved to $6.0 billion (23% of such loans) from $8.8 billion (27%).
- CET1 capital ratio of 11.68% at December 31, 2024; SCB of 3.8% became effective October 1, 2024.
- Board authorized a new $4.0 billion share repurchase program on January 22, 2025, replacing the prior $3.0 billion program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 19, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $1.54B$1.48B | +3.8% |
| Net Income | $2.59B$2.74B | −5.6% |
| EPS (Basic) | $14.71$15.85 | −7.2% |
| EPS (Diluted) | $14.64$15.79 | −7.3% |
| Shares Outstanding (Basic) | 166.48M166.36M | +0.1% |
| Shares Outstanding (Diluted) | 167.32M167.00M | +0.2% |
05—Questions
Frequently Asked Questions
How did M&T Bank's earnings change in 2024?
Net income was $2.59 billion in 2024, down from $2.74 billion in 2023, and diluted earnings per share were $14.64 versus $15.79. The decline reflected lower net interest income as deposit and borrowing costs rose faster than asset yields, plus the absence of the 2023 CIT divestiture gain.
What drove the decline in net interest income?
The net interest margin narrowed 25 basis points to 3.58% as the rate paid on interest-bearing liabilities increased 57 basis points, outpacing the 24 basis-point rise in the yield on earning assets. Average interest-bearing deposits rose $9.5 billion as customers shifted to higher-cost products, and average noninterest-bearing deposits declined.
How is M&T's credit quality trending?
Credit quality improved in 2024. Nonaccrual loans fell to $1.69 billion from $2.17 billion, and the provision for credit losses decreased to $610 million. The filing attributes this mainly to improved performance of commercial real estate loans, although commercial and industrial and consumer loan growth partially offset the benefit. Net charge-offs rose to $555 million, or 0.41% of average loans, from $441 million.
How much capital is M&T returning to shareholders?
In 2024, M&T repurchased 2,148,042 common shares for $400 million including excise tax, and paid $897 million in common dividends ($5.35 per share). On January 22, 2025, the board authorized a $4.0 billion repurchase program that replaces the prior $3.0 billion program. Future capital returns depend on regulatory capital requirements, including the stress capital buffer determined by Federal Reserve stress tests.
What regulatory risks does the filing highlight?
M&T is subject to enhanced prudential standards as a Category IV banking organization. The filing notes proposed revisions to capital rules, including inclusion of accumulated other comprehensive income in regulatory capital, and a proposed long-term debt requirement that would likely increase interest expense. It also describes the CFPB's December 2024 overdraft rule and the uncertain impact of recent CFPB developments on the Company.
06—Continue