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M&T Bank 8-K Report, Financial Results (Jan 18, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 18, 2024
Period End
January 18, 2024
In the record · 2016–202610-K1110-Q338-K161

MTB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 161 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’16Jan ’16
  2. Leadership change8-K · Jun ’22Jun ’22
  3. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed January 18, 2024. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation furnished a Form 8-K on January 18, 2024 under Item 2.02 (Results of Operations and Financial Condition), attaching a news release (Exhibit 99.1) announcing results for the quarter and year ended December 31, 2023.

The company reported fourth-quarter 2023 net income of $482 milliona, or $2.74 of diluted earnings per common share, compared with $690 million in the third quarter of 2023 and $765 million in the fourth quarter of 2022. Full-year 2023 net income was $2.74 billion, or $15.79 of diluted earnings per share, versus $1.99 billion in 2022. Fourth-quarter net operating income was $494 million, or $2.81 per diluted share, and includes an FDIC special assessment of $197 million ($146 million net of tax, or $0.88 per diluted share).

Net interest margin narrowed to 3.61% in the fourth quarter from 3.79% in the third quarter, reflecting higher deposit costs and a shift of customer funds into interest-bearing products. The provision for credit losses rose to $225 millionb from $150 million in the prior quarter and $90 million a year earlier, reflecting pressure on investor-owned commercial real estate borrowers. Net charge-offs were $148 million in the quarter, and nonaccrual loans declined to $2.17 billion at year-end.

The estimated CET1 capital ratio was 10.98% at December 31, 2023, up from 10.95% at September 30, 2023. The release also states that M&T realigned its business into three reportable segments (Commercial Bank, Retail Bank, and Institutional Services and Wealth Management), to be reflected in its upcoming Form 10-K. The filing states that no shares were repurchased in the fourth quarter of 2023 and that M&T repurchased 3,838,157 shares for $600 millionc in the first quarter of 2023.

02—Key points

Key Highlights

  1. Q4 2023 net income of $482 million, or $2.74 diluted EPS, down from $765 million ($4.29) in Q4 2022; full-year 2023 net income of $2.74 billion, or $15.79 diluted EPS.
  2. Q4 2023 net operating income of $494 million, or $2.81 per diluted share; full-year net operating income of $2.79 billion, or $16.08 per diluted share.
  3. Noninterest expense included a $197 million FDIC special assessment ($146 million net of tax, or $0.88 per diluted share) in Q4 2023.
  4. Net interest margin fell to 3.61% in Q4 2023 from 3.79% in Q3 2023, as deposit costs rose and customers shifted funds into interest-bearing products.
  5. Provision for credit losses rose to $225 million in Q4 2023 from $90 million in Q4 2022, reflecting pressure on investor-owned commercial real estate borrowers; net charge-offs were $148 million.
  6. Estimated CET1 capital ratio was 10.98% at December 31, 2023, up slightly from 10.95% at September 30, 2023; no common shares were repurchased in Q4 2023.
  7. M&T realigned its business into three reportable segments, to be reflected in its upcoming Form 10-K for 2023.

03—Questions

Frequently Asked Questions

  1. How did M&T perform in the fourth quarter of 2023 compared with the prior year?

    Net income was $482 million, or $2.74 per diluted share, compared with $765 million, or $4.29 per diluted share, in the fourth quarter of 2022. Net operating income was $494 million, or $2.81 per diluted share, versus $812 million, or $4.57, a year earlier. Results were affected by a $197 million FDIC special assessment and a higher provision for credit losses.

  2. What drove the decline in net interest margin?

    The release attributes the margin decline to 3.61% in Q4 2023 from 3.79% in Q3 2023, reflecting higher costs paid on deposits amid a continued shift of customer funds to interest-bearing products. Taxable-equivalent net interest income decreased $55 million from the third quarter.

  3. How did credit quality trend?

    The provision for credit losses was $225 million in Q4 2023, up from $150 million in Q3 2023 and $90 million in Q4 2022, reflecting pressure on investor-owned commercial real estate borrowers. Nonaccrual loans fell to $2.17 billion at December 31, 2023 from $2.34 billion at September 30, 2023, and the allowance for credit losses rose to 1.59% of loans.

  4. What is the capital position?

    The estimated CET1 capital ratio was 10.98% at December 31, 2023, compared with 10.95% at September 30, 2023 and 10.44% at December 31, 2022. Total risk-weighted assets were estimated at $154 billion. Cash dividends declared on common and preferred stock totaled $217 million and $25 million, respectively, in the quarter, and no shares were repurchased in Q4 2023.

  5. Will the reporting structure change?

    Yes. In the fourth quarter of 2023, M&T completed changes to its management reporting system and realigned its operations into three reportable segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. The change will be reflected in the company's upcoming Form 10-K for 2023.

04—Continue

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