BUFFALO, N.Y., April 15, 2024 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $531 million or $3.02 of diluted earnings per common share. (Dollars in millions, except per share data) 1Q24 4Q23 1Q23 Earnings Highlights Net interest income $        1,680 $        1,722 $        1,818 Taxable-equivalent adjustment 12 13 14 Net interest income - taxable-equivalent 1,692 1,735 1,832 Provision for credit losses 200 225 120 Noninterest income 580 578 587 Noninterest expense 1,396 1,450 1,359 Net income 531 482 702 Net income available to common shareholders - diluted 505 457 676 Diluted earnings per common share 3.02 2.74 4.01 Return on average assets - annualized 1.01 % .92 % 1.40 % Return on average common shareholders' equity - annualized 8.14 7.41 11.74 Average Balance Sheet Total assets $     211,478 $     208,752 $     202,599 Interest-bearing deposits at banks 30,647 30,153 24,312 Investment securities 28,587 27,490 27,622 Loans and leases, net of unearned discount 133,796 132,770 132,012 Deposits 164,065 164,713 161,537 Borrowings 16,001 13,057 11,505 Selected Ratios (Amounts expressed as a percent, except per share data) Net interest margin 3.52 % 3.61 % 4.04 % Efficiency ratio 60.8 62.1 55.5 Net charge-offs to average total loans - annualized .42 .44 .22 Allowance for credit losses to total loans 1.62 1.59 1.49 Nonaccrual loans to total loans 1.71 1.62 1.92 Common equity Tier 1 ("CET1") capital ratio (1) 11.07 10.98 10.16 Common shareholders' equity per share $      150.90 $      150.15 $      140.88 (1) March 31, 2024 CET1 capital ratio is estimated.   Financial Highlights The CET1 capital ratio increased 9 basis points to an estimated 11.07% at March 31, 2024, compared with 10.98% at December 31, 2023, highlighting the Company's improved capital position. Net interest margin of 3.52% in the recent quarter narrowed from 3.61% in the fourth quarter of 2023 reflecting higher liquidity, cash moving to investment securities and higher deposit and borrowing costs. Growth in average commercial and industrial and consumer loans in the recent quarter was partially offset by a decline in average commercial real estate loans. Average deposits remained stable with a slowing mix shift to higher cost deposits. Average borrowings rose in the first quarter of 2024 as compared with the fourth quarter of 2023 due to increased borrowings from the Federal Home Loan Bank ("FHLB") of New York and the issuance of senior notes. Provision for credit losses in the recent quarter reflects elevated levels of criticized commercial and industrial loans and loan growth. Expenses included $99 million of seasonal salaries and employee benefits expense and a $29 million estimated increase in the FDIC special assessment, reflecting the FDIC's higher loss estimate attributable to certain failed banks. Chief Financial Officer Commentary "We are off to a solid start in 2024 as we were able to grow certain sectors of our commercial and consumer loan portfolios, while continuing to shrink our commercial real estate exposure. Expenses were prudently managed in the recent quarter and our selective approach to allocating resources to our strategic priorities with utmost care has not wavered. M&T's liquidity and capital position strengthened, reflecting a stable deposit base, higher levels of borrowings and solid earnings after considering seasonal employee compensation expenses and an incremental FDIC special assessment. I thank my colleagues at M&T for their stewardship of shareholder capital and their continuous support of our mission to make a difference in the lives of our customers and the communities in which we serve." - Daryl N. Bible, M&T's Chief Financial Officer Contact: Investor Relations: Brian Klock 716.842.5138 Media Relations: Frank Lentini 929.651.0447    Non-GAAP Measures (1) Change1Q24 vs. Change1Q24 vs. (Dollars in millions, except per share data) 1Q24 4Q23 4Q23 1Q23 1Q23 Net operating income $            543 $            494 10 % $            715 -24 % Diluted net operating earnings per common share 3.09 2.81 10 4.09 -24 Annualized return on average tangible assets 1.08 % .98 % 1.49 % Annualized return on average tangible common equity 12.67 11.70 19.00 Efficiency ratio 60.8 62.1 55.5 Tangible equity per common share $         99.54 $         98.54 1 $         88.81 12 ____________________ (1) A reconciliation of non-GAAP measures is included in the tables that accompany this release.   M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature.  Taxable-equivalent Net Interest Income Change1Q24 vs. Change1Q24 vs. (Dollars in millions) 1Q24 4Q23 4Q23 1Q23 1Q23 Average earning assets $     193,135 $     190,536 1 % $     184,069 5 % Average interest-bearing liabilities 131,451 127,646 3 111,188 18 Net interest income  ̶  taxable-equivalent 1,692 1,735 -2 1,832 -8 Yield on average earning assets 5.74 % 5.73 % 5.16 % Cost of interest-bearing liabilities 3.26 3.17 1.86 Net interest spread 2.48 2.56 3.30 Net interest margin 3.52 3.61 4.04   Taxable-equivalent net interest income decreased $43 million, or 2%, from the fourth quarter of 2023. Average borrowings rose $2.9 billion and the rate paid on such borrowings increased 13 basis points. Average interest-bearing deposits increased $861 million and the rates paid on such deposits rose 3 basis points. The yield on average loans and leases declined 1 basis point. Average investment securities increased $1.1 billion and the rates earned on those securities increased 17 basis points. Taxable-equivalent net interest income decreased $140 million, or 8%, compared with the year-earlier first quarter. Average interest-bearing deposits rose $15.8 billion and the rates paid on those deposits increased 144 basis points. Average borrowings increased $4.5 billion and rates paid on such borrowings increased 64 basis points. Yields earned on average interest-bearing deposits at banks and average loans and leases increased 85 basis points and 62 basis points, respectively. Average interest-bearing deposits at banks and average loans and leases increased $6.3 billion and $1.8 billion, respectively.  Average Earning Assets Change1Q24 vs. Change1Q24 vs. (Dollars in millions) 1Q24 4Q23 4Q23 1Q23 1Q23 Interest-bearing deposits at banks $      30,647 $      30,153 2 % $      24,312 26 % Trading account 105 123 -15 123 -14 Investment securities 28,587 27,490 4 27,622 3 Loans and leases, net of unearned discount Commercial and industrial 56,821 55,420 3 52,510 8 Real estate - commercial 32,696 33,455 -2 35,245 -7 Real estate - consumer 23,136 23,339 -1 23,770 -3 Consumer 21,143 20,556 3 20,487 3 Total loans and leases, net 133,796 132,770 1 132,012 1 Total earning assets $    193,135 $    190,536 1 $    184,069 5   Average earning assets increased $2.6 billion, or 1%, from the fourth quarter of 2023. Average interest-bearing deposits at banks increased $494 million reflecting higher levels of borrowings partially offset by the purchase of investment securities and loan growth. Average loans and leases increased $1.0 billion primarily reflective of growth in average commercial and industrial loans and leases and consumer loans, partially offset by declines in average commercial real estate and residential real estate loans. The growth in commercial and industrial loans spanned most industry types. Average investment securities rose $1.1 billion primarily due to purchases of U.S. Treasury notes and fixed rate mortgage-backed securities during the first quarter of 2024. Average earning assets increased $9.1 billion, or 5%, from the year-earlier first quarter. Average interest-bearing deposits at banks increased $6.3 billion reflecting a rise in average deposits and higher levels of borrowings, partially offset by loan growth and purchases of investment securities. Average loans and leases increased $1.8 billion predominantly due to higher average commercial and industrial loans and leases of $4.3 billion reflecting lending activities to financial and insurance industry customers and motor vehicle and recreational finance dealers, partially offset by a $2.5 billion decline in average commercial real estate loans. Average investment securities increased $965 million due to the purchases of investment securities in 2023 and through the first quarter of 2024.  Average Interest-bearing Liabilities Change1Q24 vs. Change1Q24 vs. (Dollars in millions) 1Q24 4Q23 4Q23 1Q23 1Q23 Interest-bearing deposits Savings and interest-checking deposits $          94,867 $          93,365 2 % $          88,053 8 % Time deposits 20,583 21,224 -3 11,630 77 Total interest-bearing deposits 115,450 114,589 1 99,683 16 Short-term borrowings 6,228 5,156 21 4,994 25 Long-term borrowings 9,773 7,901 24 6,511 50 Total interest-bearing liabilities $        131,451 $        127,646 3 $        111,188 18   Average interest-bearing liabilities increased $3.8 billion, or 3%, from the fourth quarter of 2023. Average borrowings increased $2.9 billion predominantly due to the issuance of senior notes in the first quarter of 2024 and higher levels of average borrowings from the FHLB of New York. Average interest-bearing deposits increased $861 million, reflective of a $1.6 billion increase in average non-brokered deposits. Average interest-bearing liabilities increased $20.3 billion, or 18%, from the first quarter of 2023. Average interest-bearing deposits rose $15.8 billion, including a $10.6 billion increase in average non-brokered deposits, reflecting customer demand for interest-bearing products amidst rising rates. Average borrowings increased $4.5 billion reflecting the issuances of senior notes and other long-term debt since the first quarter of 2023 and increases in average borrowings from the FHLB of New York. Provision for Credit Losses/Asset Quality Change1Q24 vs. Change1Q24 vs. (Dollars in millions) 1Q24 4Q23 4Q23 1Q23 1Q23 At end of quarter Nonaccrual loans $      2,302 $      2,166 6 % $      2,557 -10 % Real estate and other foreclosed assets 38 39 — 44 -13 Total nonperforming assets 2,340 2,205 6 2,601 -10 Accruing loans past due 90 days or more (1) 297 339 -12 407 -27 Nonaccrual loans as % of loans outstanding 1.71 % 1.62 % 1.92 % Allowance for credit losses $      2,191 $      2,129 3 $      1,975 11 Allowance for credit losses as % of loans outstanding 1.62 % 1.59 % 1.49 % For the period Provision for credit losses $         200 $         225 -11 $         120 67 Net charge-offs 138 148 -7 70 97 Net charge-offs as % of average loans (annualized) .42 % .44 % .22 % ____________________ (1) Predominantly government-guaranteed residential real estate loans.   M&T recorded a provision for credit losses of $200 million in the first quarter of 2024 and $225 million in the immediately preceding quarter, compared with $120 million in the first quarter of 2023. The comparatively higher provisions for credit losses in the most recent two quarters as compared with the first quarter of 2023 reflect declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers, including nonautomotive dealers and healthcare facilities, as well as growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. Net charge-offs totaled $138 million in 2024's first quarter as compared with $148 million in 2023's final quarter and $70 million in the year-earlier quarter. The lower level of net charge-offs in the first quarter of 2024 as compared with the preceding quarter included a decline in commercial real estate loan net charge-offs, partially offset by an increase in net charge-offs of commercial and industrial and consumer loans. As compared with year-earlier first quarter, the recent quarter net charge-offs reflect higher levels of commercial and industrial and consumer loan net charge-offs. Nonaccrual loans were $2.3 billion at March 31, 2024, $136 million higher than December 31, 2023 but $255 million lower than March 31, 2023. The higher level of nonaccrual loans at the recent quarter end as compared with the immediately preceding quarter end was largely attributable to an increase in commercial and industrial nonaccrual loans partially offset by a decrease in commercial real estate nonaccrual loans. The decrease in nonaccrual loans at March 31, 2024 as compared with year-earlier quarter was predominantly due to lower levels of commercial real estate nonaccrual loans, including net charge-offs, and residential real estate nonaccrual loans, partially offset by a rise in commercial and industrial nonaccrual loans.  Noninterest Income Change1Q24 vs. Change1Q24 vs. (Dollars in millions) 1Q24 4Q23 4Q23 1Q23 1Q23 Mortgage banking revenues $            104 $            112 -7 % $               85 23 % Service charges on deposit accounts 124 121 2 113 9 Trust income 160 159 1 194 -17 Brokerage services income 29 26 10 24 20 Trading account and non-hedging derivative gains 9 11 -19 12 -21 Gain (loss) on bank investment securities 2 4 -35 — — Other revenues from operations 152 145 4 159 -5 Total $            580 $            578 — $            587 -1   Noninterest income in the first quarter of 2024 was largely unchanged from 2023's fourth quarter. Other revenues from operations increased $7 million resulting from a $25 million distribution from Bayview Lending Group LLC ("BLG") received in the first quarter of 2024 partially offset by declines in letter of credit and other credit-related fees, lower income earned from bank owned life insurance and a decline in merchant discount and credit card fees. Mortgage banking revenues decreased $8 million reflecting a decline in gains on sale of commercial mortgage loans as a result of decreased origination volume, partially offset by higher residential mortgage banking revenues. Noninterest income declined $7 million, or 1%, as compared with the year-earlier first quarter. Trust income decreased $34 million reflecting lower revenues associated with the Company's Collective Investment Trust ("CIT") business of approximately $45 million following its sale in April 2023, partially offset by $11 million of higher revenues mainly attributable to higher sales and fees from the Company's global capital markets business. Other revenues from operations declined $7 million reflecting lower gains on the sale of leased equipment. Mortgage banking revenues rose $19 million due to higher servicing income related to the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023. Service charges on deposit accounts increased $11 million predominantly due to a rise in commercial service charges. Brokerage services income increased $5 million due to higher annuity sales.  Noninterest Expense Change1Q24 vs. Change1Q24 vs. (Dollars in millions) 1Q24 4Q23 4Q23 1Q23 1Q23 Salaries and employee benefits $          833 $          724 15 % $          808 3 % Equipment and net occupancy 129 134 -4 127 2 Outside data processing and software 120 114 5 106 13 Professional and other services 85 99 -13 125 -31 FDIC assessments 60 228 -74 30 101 Advertising and marketing 20 26 -21 31 -35 Amortization of core deposit and other intangible assets 15 15 — 17 -13 Other costs of operations 134 110 21 115 16 Total $       1,396 $       1,450 -4 $       1,359 3   Noninterest expense aggregated $1.40 billion in the recent quarter, down from $1.45 billion in the fourth quarter of 2023. FDIC assessments reflect a $197 million estimated special assessment in the fourth quarter of 2023 and $29 million of estimated incremental special assessment expense recorded in the first quarter of 2024 for the FDIC's updated loss estimates associated with certain failed banks. Professional and other services expenses decreased $14 million reflecting the timing and level of consulting and legal-related fees. Salaries and employee benefits expense increased $109 million reflecting annual merit increases and $99 million of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense. Other costs of operations increased $24 million reflecting higher costs associated with the Company's supplemental executive retirement savings plan, losses on lease terminations related to certain vacated properties and incremental charitable contributions as compared with the fourth quarter of 2023. Noninterest expense increased $37 million from the first quarter of 2023. FDIC assessments increased $30 million reflecting the $29 million of estimated incremental special assessment expense recorded in the first quarter of 2024. Salaries and employee benefits expenses increased $25 million reflecting higher salaries expense due to annual merit and other increases and ...