01—Abstract
Summary
Summary of the 10-Q filed May 3, 2024. Cited figures are marked; the original filing is the authoritative source.
M&T Bank Corporation's first-quarter 2024 Form 10-Q reports net income of $531 milliona, or $3.02 diluted earnings per common share, compared with $702 million, or $4.01 diluted, in the first quarter of 2023.
Net interest income fell to $1.68 billionb from $1.82 billion a year earlier, as the net interest margin narrowed to 3.52% from 4.04%, reflecting higher rates paid on deposits and borrowings. The provision for credit losses rose to $200 million from $120 million, citing declines in commercial real estate values and a deterioration in loans to nonautomotive dealers and healthcare facilities. Total other expense rose to $1.40 billion, including a $29 million incremental FDIC special assessment.
Balance sheet growth was driven by funding. Total assets increased to $215.14 billionc from $208.26 billion at year-end 2023, with interest-bearing deposits at banks rising to $32.14 billion. Long-term borrowings increased to $11.45 billion from $8.20 billion, including a $2.0 billion FHLB advance and an $850 million senior note issuance in March 2024.
Nonaccrual loans were $2.30 billiond, up $136 million from year-end 2023, largely due to commercial and industrial loans. Shareholders' equity was $27.17 billion, and the common equity tier 1 ratio for the consolidated company was 11.08%.
For investors, the quarter shows resilient but pressured earnings: revenue is held back by margin compression and elevated credit costs, while capital and liquidity metrics remain strong. Management reported net operating income of $543 million and a diluted net operating EPS of $3.09 as supplemental non-GAAP measures.
02—Key points
Key Highlights
- Net income of $531 million ($3.02 diluted EPS) versus $702 million ($4.01 diluted) in Q1 2023, a decline of 24%.
- Net interest income of $1.68 billion, down from $1.82 billion; net interest margin narrowed to 3.52% from 4.04% year over year.
- Provision for credit losses increased to $200 million from $120 million; net charge-offs were $138 million, or 0.42% of average loans.
- Total assets grew to $215.14 billion from $208.26 billion at December 31, 2023, while total deposits rose to $167.20 billion.
- Long-term borrowings increased to $11.45 billion from $8.20 billion, including a $2.0 billion FHLB advance and an $850 million senior notes issuance.
- Nonaccrual loans were $2.30 billion, up $136 million from year-end 2023, with commercial and industrial loans a key driver.
- Common shareholders' equity per share was $150.90 and tangible equity per common share was $99.54; the CET1 ratio for M&T (consolidated) was 11.08%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 3, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $367.00M— | — |
| Interest Expense | $1.06B$509.00M | +109.2% |
| Net Income | $531.00M$702.00M | −24.4% |
| EPS (Basic) | $3.04$4.03 | −24.6% |
| EPS (Diluted) | $3.02$4.01 | −24.7% |
| Shares Outstanding (Basic) | 166.46M167.73M | −0.8% |
| Shares Outstanding (Diluted) | 167.08M168.41M | −0.8% |
05—Questions
Frequently Asked Questions
Why did M&T's net income decline in the first quarter of 2024?
Net income fell to $531 million from $702 million a year earlier. The main drivers were lower net interest income, which declined $138 million as the net interest margin narrowed 52 basis points to 3.52%, and a higher provision for credit losses of $200 million versus $120 million. Other expense rose $37 million, including a $29 million FDIC special assessment increase.
How did credit quality trend in the quarter?
Nonaccrual loans totaled $2.30 billion at March 31, 2024, up $136 million from December 31, 2023 but down $255 million from March 31, 2023. The increase from year-end was mainly in commercial and industrial loans, notably loans to nonautomotive finance dealers and manufacturing and services. Criticized commercial and industrial and commercial real estate loans totaled $12.9 billion, or 14.3% of those portfolios.
How was M&T funding its balance sheet growth?
Deposits increased to $167.20 billion from $163.27 billion at year-end 2023, and long-term borrowings rose to $11.45 billion from $8.20 billion. New funding included a $2.0 billion FHLB of New York advance maturing in February 2025, $850 million of senior notes maturing in March 2032, and $511 million of automobile-loan asset-backed notes sold to third parties.
Did M&T repurchase shares or change its dividend in the quarter?
No shares were repurchased in the first quarter of 2024, and no repurchases occurred in the fourth quarter of 2023. Common dividends declared were $1.30 per share, totaling $218 million, and preferred stock dividends were $25 million. Approximately $1.2 billion of the program's $3.0 billion authorization remained available.
06—Continue