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M&T Bank 8-K Report, Regulation FD Disclosure (May 3, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed May 3, 2024
Period End
May 3, 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 May 3, 2024. Cited figures are marked; the original filing is the authoritative source.

On May 3, 2024, M&T Bank Corporation filed a Form 8-K under Item 7.01 (Regulation FD Disclosure) to announce that it posted an investor presentation titled "Investor Update, 2nd Quarter 2024" to its Investor Relations website.

The presentation is attached as Exhibit 99.1, and M&T states it may use the presentation in conversations with investors and analysts. The filing itself contains no new financial results; the substance lies in the presentation's content. The presentation describes M&T as a top 15 U.S.-based commercial bank holding company with $215 billiona in total assets, $167 billion in total deposits and $135 billion in total loans and leases, net, as of 1Q24.

It reports 1Q24 net operating ROTA of 1.08% and net operating ROTCE of 12.67%, an efficiency ratio of 60.8% and a 1Q24 net charge-off ratio of 0.42%. It cites a 2024 outlook of net interest income of $6.8 billionb (taxable-equivalent) 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, and net charge-offs of approximately 40 basis points of average loans. Share repurchases are described as "currently paused," with a decision to be evaluated after 2nd quarter results.

The presentation also details credit and capital positions. Permanent commercial real estate is $25.2 billionc, with a weighted average LTV of 56%, and total criticized C&I and CRE loans rose $364 million quarter over quarter. The CET1 ratio was 11.08% and the Tier 1 capital ratio was 12.38% at 3/31/2024, and the presentation notes a roughly 20 basis point negative impact to CET1 from AOCI under proposed rules.

02—Key points

Key Highlights

  1. Form 8-K filed under Item 7.01 (Regulation FD) furnishing Exhibit 99.1, an investor presentation dated May 3, 2024; the information is furnished rather than filed under Section 18 of the Exchange Act.
  2. 1Q24 balance sheet: total assets of $215 billion, total deposits of $167 billion and total loans and leases, net, of $135 billion.
  3. 1Q24 net operating ROTA of 1.08% and net operating ROTCE of 12.67%, with an efficiency ratio of 60.8% (59.6% adjusted), compared with 19.00% ROTCE in 1Q23.
  4. 2024 outlook: taxable-equivalent net interest income of $6.8 billion with NIM in the 3.50s, reflecting two rate cuts; fee income of $2.3 billion to $2.4 billion; GAAP expense of $5.25 billion to $5.30 billion.
  5. Net charge-offs guided to approximately 40 basis points of average loans, with a 24.0% to 24.5% taxable-equivalent tax rate; average loans of $134 billion to $136 billion and average deposits of $162 billion to $164 billion.
  6. Share repurchases are currently paused, with a decision to be evaluated after 2nd quarter 2024 results.
  7. Credit and capital: 1Q24 nonaccrual reserve ratio of about 18%, criticized C&I and CRE loans up $364 million quarter over quarter, CET1 ratio of 11.08%, and a TCE to tangible assets ratio of 8.03%.

03—Questions

Frequently Asked Questions

  1. Does this 8-K report new financial results?

    No. The 8-K itself is a Regulation FD disclosure stating that M&T posted an investor presentation to its website on May 3, 2024. The financial and operating information appears in the attached Exhibit 99.1 presentation, which is furnished rather than filed.

  2. What is M&T's 2024 outlook for net interest income and fee income?

    The presentation projects taxable-equivalent net interest income of $6.8 billion, with NIM in the 3.50s, reflecting two rate cuts. Fee income is projected at $2.3 billion to $2.4 billion, with trust income growth expected from higher equity markets.

  3. What does the presentation say about credit quality?

    It reports 1Q24 net charge-offs of 0.42% of loans, versus 0.44% in 4Q23, and guides to approximately 40 basis points for 2024, with normalization in C&I and consumer portfolios. Criticized C&I and CRE loans rose $364 million quarter over quarter, mainly driven by a $641 million increase in C&I, partly offset by a $277 million decline in CRE. The presentation says 97% of criticized accrual loans are current.

  4. What is the status of share repurchases?

    The presentation states that share repurchases are currently paused, and management will evaluate resuming them after 2nd quarter 2024 results.

  5. How strong is M&T's capital position?

    At 3/31/2024 the presentation shows a CET1 ratio of 11.08%, a Tier 1 capital ratio of 12.38% and a tangible common equity to tangible assets ratio of 8.03%. It notes that AFS and pension-related AOCI represents about a 20 basis point negative impact on regulatory capital.

04—Continue

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