How did M&T's fourth-quarter 2024 earnings compare with the prior year?

Net income was $681 million, or $3.86 per diluted share, compared with $482 million, or $2.74 per diluted share, in the fourth quarter of 2023. Noninterest expense fell to $1.36 billion from $1.45 billion, and the provision for credit losses fell to $140 million from $225 million.

Why did full-year 2024 net income decline from 2023?

Full-year net income was $2.59 billion, down from $2.74 billion. The filing attributes the decline in noninterest income to the April 2023 sale of the Collective Investment Trust business, and net interest income fell to $6.85 billion from $7.12 billion, with net interest margin at 3.58% versus 3.83% in 2023.

What did the filing say about capital and share repurchases?

The CET1 capital ratio was an estimated 11.67% at December 31, 2024, up from 10.98% a year earlier. M&T repurchased 957,988 shares in the fourth quarter at an average cost of $206.70, for a total cost of $200 million including the share repurchase excise tax.

What is management's outlook for 2025?

The investor presentation furnished as Exhibit 99.2 projects taxable-equivalent net interest income of $7.1 billion to $7.2 billion, a net interest margin in the mid 3.60s, GAAP noninterest expense of $5.4 billion to $5.5 billion, net charge-offs of about 40 basis points of average loans, and a CET1 ratio target of about 11%.

How is credit quality trending?

Nonaccrual loans were $1.69 billion, or 1.25% of loans outstanding, at December 31, 2024, down from $1.93 billion at September 30, 2024 and $2.17 billion at December 31, 2023. Net charge-offs rose to $160 million in the quarter, or 0.47% of average loans on an annualized basis, from 0.35% in the third quarter.

M&T Bank 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 16, 2025. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation reported net income of $681 million^a, or $3.86 of diluted earnings per common share, for the fourth quarter of 2024, compared with $482 million, or $2.74 per diluted share, in the fourth quarter of 2023.

For full-year 2024, net income was $2.59 billion^b, or $14.64 per diluted share, versus $2.74 billion, or $15.79 per diluted share, in 2023. Net operating income, a non-GAAP measure that excludes amortization of intangibles, was $691 million ($3.92 per diluted share) for the quarter and $2.63 billion ($14.88 per diluted share) for the year. The filing shows improving capital and credit metrics.

The CET1 capital ratio was an estimated 11.67% at December 31, 2024, up from 11.54% at September 30, 2024 and 10.98% at December 31, 2023, and M&T repurchased $200 million^c of common stock in the fourth quarter. Nonaccrual loans fell to $1.69 billion, or 1.25% of loans, from $1.93 billion at September 30, 2024.

Net charge-offs rose to 0.47% of average loans in the quarter, and net interest margin narrowed to 3.58% from 3.62% in the third quarter. Management's 2025 outlook, presented in the investor presentation furnished as Exhibit 99.2, includes taxable-equivalent net interest income of $7.1 billion to $7.2 billion^d, a net interest margin in the mid 3.60s, GAAP expense of $5.4 billion to $5.5 billion, net charge-offs of about 40 basis points of average loans, and a CET1 ratio target of about 11%.

02—Key points

Key Highlights

Q4 2024 net income of $681 million ($3.86 diluted EPS), up 41% from $482 million ($2.74) in Q4 2023; full-year 2024 net income was $2.59 billion ($14.64 diluted EPS), down 6% from 2023.
Q4 2024 net operating income was $691 million ($3.92 diluted net operating EPS); full-year 2024 net operating income was $2.63 billion ($14.88 per share) versus $2.79 billion in 2023.
CET1 capital ratio was an estimated 11.67% at December 31, 2024, up 13 basis points from 11.54% at September 30, 2024; the company repurchased $200 million of shares in Q4 2024.
Nonaccrual loans declined to $1.69 billion, or 1.25% of loans, from 1.42% at September 30, 2024 and 1.62% at December 31, 2023.
Net interest margin was 3.58% in Q4 2024, narrowing from 3.62% in Q3 2024; full-year 2024 net interest margin was 3.58% versus 3.83% in 2023.
Provision for credit losses was $140 million in Q4 2024 versus $225 million in Q4 2023; net charge-offs were 0.47% of average loans (annualized) in Q4 2024 versus 0.44% a year earlier.
Investor presentation (Exhibit 99.2) outlines 2025 guidance including taxable-equivalent net interest income of $7.1–$7.2 billion, GAAP expense of $5.4–$5.5 billion, and a CET1 target of about 11%.

03—Questions

Frequently Asked Questions

How did M&T's fourth-quarter 2024 earnings compare with the prior year?
Net income was $681 million, or $3.86 per diluted share, compared with $482 million, or $2.74 per diluted share, in the fourth quarter of 2023. Noninterest expense fell to $1.36 billion from $1.45 billion, and the provision for credit losses fell to $140 million from $225 million.
Why did full-year 2024 net income decline from 2023?
Full-year net income was $2.59 billion, down from $2.74 billion. The filing attributes the decline in noninterest income to the April 2023 sale of the Collective Investment Trust business, and net interest income fell to $6.85 billion from $7.12 billion, with net interest margin at 3.58% versus 3.83% in 2023.
What did the filing say about capital and share repurchases?
The CET1 capital ratio was an estimated 11.67% at December 31, 2024, up from 10.98% a year earlier. M&T repurchased 957,988 shares in the fourth quarter at an average cost of $206.70, for a total cost of $200 million including the share repurchase excise tax.
What is management's outlook for 2025?
The investor presentation furnished as Exhibit 99.2 projects taxable-equivalent net interest income of $7.1 billion to $7.2 billion, a net interest margin in the mid 3.60s, GAAP noninterest expense of $5.4 billion to $5.5 billion, net charge-offs of about 40 basis points of average loans, and a CET1 ratio target of about 11%.
How is credit quality trending?
Nonaccrual loans were $1.69 billion, or 1.25% of loans outstanding, at December 31, 2024, down from $1.93 billion at September 30, 2024 and $2.17 billion at December 31, 2023. Net charge-offs rose to $160 million in the quarter, or 0.47% of average loans on an annualized basis, from 0.35% in the third quarter.

04—Continue

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