Skip to content
AnalystLens

M&T Bank 8-K Report, Regulation FD Disclosure (Apr 15, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed April 15, 2024
Period End
April 15, 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 April 15, 2024. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation furnished an investor presentation dated April 15, 2024 (Exhibit 99.1) under Item 7.01 Regulation FD Disclosure, covering its first-quarter 2024 earnings results.

The filing states that the presentation is posted on M&T's Investor Relations website and may be used in conversations with investors and analysts. The information is furnished, not filed, for purposes of Section 18 of the Exchange Act. According to the presentation, GAAP diluted EPS was $3.02a in 1Q24, up from $2.74 in 4Q23 and down from $4.01 in 1Q23, with GAAP net income of $531 million.

On a GAAP-Adjusted basis, which excludes the FDIC special assessment, diluted EPS was $3.15b and net income was $553 million. Net operating diluted EPS was $3.09. Net interest margin declined 9 bps quarter over quarter to 3.52%, and noninterest expense included FDIC special assessments of $29 million in 1Q24 versus $197 million in 4Q23.

Net charge-offs were 0.42% of average loans, and the provision for credit losses was $200 millionc. The presentation reports a CET1 capital ratio of 11.07% (estimated as of March 31, 2024) and tangible book value per share of $99.54.

Criticized C&I and CRE loans rose $364 milliond quarter over quarter, with C&I criticized loans up $641 million. The 2024 outlook guides to taxable-equivalent net interest income of $6.8 billion with NIM in the 3.50s, GAAP expenses of $5.25 billion to $5.30 billion, net charge-offs of about 40 basis points, and share repurchases currently paused pending review after second-quarter results.

02—Key points

Key Highlights

  1. GAAP diluted EPS of $3.02 in 1Q24 versus $2.74 in 4Q23 and $4.01 in 1Q23; GAAP-Adjusted diluted EPS of $3.15 excluding the FDIC special assessment
  2. Net interest margin of 3.52% in 1Q24, down 9 bps from 4Q23, with taxable-equivalent net interest income down $43 million quarter over quarter
  3. Noninterest expense of $1,396 million in 1Q24 versus $1,450 million in 4Q23, including $29 million of FDIC special assessments versus $197 million in 4Q23
  4. Net charge-offs of 0.42% of average loans and a provision for credit losses of $200 million in 1Q24
  5. CET1 capital ratio of 11.07% (estimated as of March 31, 2024) and tangible book value per share of $99.54
  6. Criticized C&I and CRE loans increased $364 million quarter over quarter, driven by a $641 million increase in criticized C&I loans
  7. 2024 outlook includes NIM in the 3.50s and share repurchases currently paused, to be evaluated after second-quarter results

03—Questions

Frequently Asked Questions

  1. How did M&T's first-quarter 2024 earnings compare with the prior quarter and prior year?

    GAAP diluted EPS was $3.02 in 1Q24, compared with $2.74 in 4Q23 and $4.01 in 1Q23. GAAP net income was $531 million, versus $482 million in 4Q23 and $702 million in 1Q23. On a GAAP-Adjusted basis, which excludes the FDIC special assessment, diluted EPS was $3.15 versus $3.62 in 4Q23 and $4.01 in 1Q23.

  2. What drove the change in net interest margin?

    NIM declined 9 bps quarter over quarter to 3.52%. The presentation attributes -6 bps to nonaccrual interest and the impact of swaps, -3 bps to higher liquidity and cash moving into investment securities, and -3 bps to core deposit mix shift and pricing, partially offset by +3 bps from other items, primarily favorable asset repricing.

  3. What is the outlook for 2024?

    The outlook projects taxable-equivalent net interest income of $6.8 billion with NIM in the 3.50s, fee income of $2.3 billion to $2.4 billion, GAAP expense of $5.25 billion to $5.30 billion excluding incremental FDIC special assessments, and net charge-offs of about 40 basis points of average loans. Average loans are expected at $134 billion to $136 billion and deposits at $162 billion to $164 billion.

  4. Are share repurchases continuing?

    Share repurchases are currently paused, and the company will evaluate them after second-quarter results, according to the presentation's outlook section.

  5. What is the trend in credit quality?

    Criticized C&I and CRE loans increased $364 million quarter over quarter. Criticized C&I loans rose $641 million, led by nonautomotive dealers and manufacturing, while criticized CRE loans decreased $277 million. The presentation states that 97% of criticized accrual loans and 59% of criticized nonaccrual loans are current.

04—Continue

← View all 8-K filings