BUFFALO, N.Y., July 18, 2024 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $655 million or $3.73 of diluted earnings per common share. (Dollars in millions, except per share data) 2Q24 1Q24 2Q23 Earnings Highlights Net interest income $        1,718 $        1,680 $        1,799 Taxable-equivalent adjustment 13 12 14 Net interest income - taxable-equivalent 1,731 1,692 1,813 Provision for credit losses 150 200 150 Noninterest income 584 580 803 Noninterest expense 1,297 1,396 1,293 Net income 655 531 867 Net income available to common shareholders - diluted 626 505 841 Diluted earnings per common share 3.73 3.02 5.05 Return on average assets - annualized 1.24 % 1.01 % 1.70 % Return on average common shareholders' equity - annualized 9.95 8.14 14.27 Average Balance Sheet Total assets $     211,981 $     211,478 $     204,376 Interest-bearing deposits at banks 29,294 30,647 23,617 Investment securities 29,695 28,587 28,623 Loans and leases, net of unearned discount 134,588 133,796 133,545 Deposits 163,491 164,065 159,399 Borrowings 16,452 16,001 15,055 Selected Ratios (Amounts expressed as a percent, except per share data) Net interest margin 3.59 % 3.52 % 3.91 % Efficiency ratio 55.3 60.8 48.9 Net charge-offs to average total loans - annualized .41 .42 .38 Allowance for credit losses to total loans 1.63 1.62 1.50 Nonaccrual loans to total loans 1.50 1.71 1.83 Common equity Tier 1 ("CET1") capital ratio (1) 11.44 11.08 10.59 Common shareholders' equity per share $      153.57 $      150.90 $      143.41 (1) June 30, 2024 CET1 capital ratio is estimated.   Financial Highlights Highlighting the Company's strengthening capital position, the CET1 capital ratio increased for the fifth consecutive quarter to an estimated 11.44% at June 30, 2024, representing a 36 basis point increase from 11.08% at March 31, 2024. Net interest margin of 3.59% in the recent quarter widened from 3.52% in the first quarter of 2024 reflecting higher yields on investment securities as cash was deployed to those products, and stable deposit and borrowing costs. Growth in average commercial and industrial loans and consumer loans in the recent quarter was partially offset by a decline in average commercial real estate loans. Average customer deposits grew as funding shifted from wholesale sources to lower cost customer savings and interest-checking deposits during the recent quarter. Average borrowings rose in the second quarter of 2024 as compared with the first quarter of 2024 due to the issuance of senior notes and asset-backed notes at the end of the immediately preceding quarter, partially offset by lower average borrowings from the Federal Home Loan Bank ("FHLB") of New York. Provision for credit losses in the recent quarter reflects lower levels of criticized commercial real estate loans, partially offset by commercial and industrial and consumer loan growth. Lower noninterest expense in the second quarter of 2024 reflects seasonal salaries and employee benefit expenses recognized in 2024's initial quarter. The first and second quarters of 2024 include a $29 million and a $5 million estimated increase in the FDIC special assessment, respectively. Chief Financial Officer Commentary "Building on a strong start to the year, the second quarter results reflect a 24% increase in diluted earnings per common share from the first quarter. We continued to grow our commercial and industrial and consumer loan portfolios, while lessening our commercial real estate exposure. Credit metrics improved as both nonaccrual and total criticized loans declined sequentially. Liquidity and capital positions are exceptional, and we are pleased with the reduction in our stress capital buffer that becomes effective later this year. Our team continues to diligently deploy resources while controlling expense growth. We are grateful for our employees' commitment to our customers and communities which was again on full display in the first half of 2024 through various community events and volunteer engagements throughout our footprint." - 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) Change2Q24 vs. Change2Q24 vs. (Dollars in millions, except per share data) 2Q24 1Q24 1Q24 2Q23 2Q23 Net operating income $            665 $            543 22 % $            879 -24 % Diluted net operating earnings per common share 3.79 3.09 23 5.12 -26 Annualized return on average tangible assets 1.31 % 1.08 % 1.80 % Annualized return on average tangible common equity 15.27 12.67 22.73 Efficiency ratio 55.3 60.8 48.9 Tangible equity per common share $       102.42 $         99.54 3 $         91.58 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 Change2Q24 vs. Change2Q24 vs. (Dollars in millions) 2Q24 1Q24 1Q24 2Q23 2Q23 Average earning assets $     193,676 $     193,135 — % $     185,936 4 % Average interest-bearing liabilities 132,209 131,451 1 118,274 12 Net interest income - taxable-equivalent 1,731 1,692 2 1,813 -5 Yield on average earning assets 5.82 % 5.74 % 5.46 % Cost of interest-bearing liabilities 3.26 3.26 2.43 Net interest spread 2.56 2.48 3.03 Net interest margin 3.59 3.52 3.91   Taxable-equivalent net interest income increased $39 million, or 2%, from the first quarter of 2024. Average loans and leases increased $792 million and the yield on those loans and leases rose 6 basis points. Average investment securities increased $1.1 billion and the rates earned on those securities increased 31 basis points. Average interest-bearing deposits increased $307 million and the rates paid on such deposits declined 3 basis points. Average brokered deposits declined $1.2 billion in the recent quarter. Average borrowings rose $451 million and the rate paid on such borrowings increased 11 basis points. Taxable-equivalent net interest income decreased $82 million, or 5%, compared with the year-earlier second quarter. Average interest-bearing deposits rose $12.5 billion and the rates paid on those deposits increased 88 basis points. Average borrowings increased $1.4 billion and rates paid on such borrowings increased 50 basis points. Average interest-bearing deposits at banks, average investment securities and average loans and leases increased $5.7 billion, $1.1 billion and $1.0 billion, respectively. Yields earned on average interest-bearing deposits at banks and average loans and leases each increased 36 basis points. The yield on investment securities increased 52 basis points.  Average Earning Assets Change2Q24 vs. Change2Q24 vs. (Dollars in millions) 2Q24 1Q24 1Q24 2Q23 2Q23 Interest-bearing deposits at banks $      29,294 $      30,647 -4 % $      23,617 24 % Trading account 99 105 -6 151 -34 Investment securities 29,695 28,587 4 28,623 4 Loans and leases, net of unearned discount Commercial and industrial 58,152 56,821 2 54,572 7 Real estate - commercial 31,458 32,696 -4 34,903 -10 Real estate - consumer 23,006 23,136 -1 23,781 -3 Consumer 21,972 21,143 4 20,289 8 Total loans and leases, net 134,588 133,796 1 133,545 1 Total earning assets $    193,676 $    193,135 — $    185,936 4   Average earning assets increased $541 million from the first quarter of 2024. Average interest-bearing deposits at banks decreased $1.4 billion reflecting purchases of investment securities and loan growth partially offset by higher long-term borrowings. Average investment securities increased $1.1 billion primarily due to purchases of fixed rate agency mortgage-backed and U.S. Treasury securities during the second quarter of 2024. Average loans and leases increased $792 million primarily reflective of growth in average commercial and industrial loans and leases of $1.3 billion and consumer loans of $829 million, 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 earning assets increased $7.7 billion, or 4%, from the year-earlier second quarter. Average interest-bearing deposits at banks increased $5.7 billion reflecting a rise in average deposits and higher levels of average borrowings, partially offset by loan growth and purchases of investment securities. Average investment securities increased $1.1 billion reflecting purchases of fixed rate agency mortgage-backed and U.S. Treasury securities over the past six months. Average loans and leases increased $1.0 billion predominantly due to higher average commercial and industrial loans and leases of $3.6 billion, reflecting lending activities to financial and insurance industry customers, motor vehicle and recreational finance dealers and to the services industry, and consumer loans of $1.7 billion reflecting higher average recreational finance loans, partially offset by a $3.4 billion and a $775 million decline in average commercial real estate loans and residential real estate loans, respectively.  Average Interest-bearing Liabilities Change2Q24 vs. Change2Q24 vs. (Dollars in millions) 2Q24 1Q24 1Q24 2Q23 2Q23 Interest-bearing deposits Savings and interest-checking deposits $          95,955 $          94,867 1 % $          87,210 10 % Time deposits 19,802 20,583 -4 16,009 24 Total interest-bearing deposits 115,757 115,450 — 103,219 12 Short-term borrowings 4,962 6,228 -20 7,539 -34 Long-term borrowings 11,490 9,773 18 7,516 53 Total interest-bearing liabilities $        132,209 $        131,451 1 $        118,274 12 Brokered savings and interest-checking    deposits $             8,193 $             8,030 2 % $             3,754 118 % Brokered time deposits 3,826 5,193 -26 6,873 -44 Total brokered deposits $          12,019 $          13,223 -9 $          10,627 13   Average interest-bearing liabilities increased $758 million, or 1%, from the first quarter of 2024. Average borrowings increased $451 million predominantly due to the issuance of senior notes and asset-backed notes at the end of the first quarter of 2024, partially offset by lower average borrowings from the FHLB of New York in the recent quarter. Average interest-bearing deposits increased $307 million, reflective of a $1.5 billion increase in average non-brokered deposits. Average interest-bearing liabilities increased $13.9 billion, or 12%, from the second quarter of 2023. Average interest-bearing deposits rose $12.5 billion, including a $11.1 billion increase in average non-brokered deposits, reflecting customer demand for interest-bearing products amidst rising rates. Average borrowings increased $1.4 billion reflecting the issuances of senior notes and other long-term debt since the second quarter of 2023, partially offset by lower average short-term borrowings. Provision for Credit Losses/Asset Quality Change 2Q24 vs. Change 2Q24 vs. (Dollars in millions) 2Q24 1Q24 1Q24 2Q23 2Q23 At end of quarter Nonaccrual loans $         2,024 $         2,302 -12 % $         2,435 -17 % Real estate and other foreclosed assets 33 38 -16 43 -23 Total nonperforming assets 2,057 2,340 -12 2,478 -17 Accruing loans past due 90 days or more (1) 233 297 -21 380 -39 Nonaccrual loans as % of loans outstanding 1.50 % 1.71 % 1.83 % Allowance for credit losses $         2,204 $         2,191 1 $         1,998 10 Allowance for credit losses as % of loans outstanding 1.63 % 1.62 % 1.50 % For the period Provision for credit losses $             150 $             200 -25 $             150 — Net charge-offs 137 138 -1 127 8 Net charge-offs as % of average loans (annualized) .41 % .42 % .38 % (1)  Predominantly government-guaranteed residential real estate loans.   M&T recorded a provision for credit losses of $150 million in each of the second quarters of 2024 and 2023, compared with $200 million in 2024's initial quarter. The lower provision for credit losses in the most recent quarter as compared with the first quarter of 2024 reflects lower commercial real estate loans, including criticized loans, and modest improvement in forecasted real estate prices, partially offset by growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. Net charge-offs totaled $137 million in 2024's second quarter as compared with $138 million in 2024's first quarter and $127 million in the year-earlier quarter. Nonaccrual loans were $2.0 billion at June 30, 2024, $278 million lower than March 31, 2024 and $411 million lower than June 30, 2023, respectively. The lower level of nonaccrual loans at the recent quarter end as compared with the March 31, 2024 and June 30, 2023 was predominantly attributable to a decrease in commercial real estate nonaccrual loans. The decline in commercial real estate nonaccrual loans from the second quarter of 2023 was partially offset by an increase in commercial and industrial nonaccrual loans.  Noninterest Income Change2Q24 vs. Change2Q24 vs. (Dollars in millions) 2Q24 1Q24 1Q24 2Q23 2Q23 Mortgage banking revenues $            106 $            104 1 % $            107 -1 % Service charges on deposit accounts 127 124 3 119 8 Trust income 170 160 6 172 -1 Brokerage services income 30 29 5 25 21 Trading account and other non-hedging derivative gains 7 9 -29 17 -61 Gain (loss) on bank investment securities (8) 2 — 1 — Other revenues from operations 152 152 — 362 -58 Total $            584 $            580 1 $            803 -27   Noninterest income in the second quarter of 2024 increased $4 million, or 1%, from 2024's first quarter. Trust income increased $10 million due to seasonal tax service fees in the second quarter of 2024 of $4 million and higher revenues from the Company's global capital markets business. The loss on bank investment securities in the second quarter of 2024 reflected realized losses on sales of certain non-agency investment securities. Other revenues from operations in 2024's second quarter reflect increases in merchant discount and credit card fees, letter of credit and other credit-related fees and distributions from renewable energy and certain other tax credit investments. In the first quarter of 2024, other revenues from operations included a $25 million distribution from Bayview Lending Group LLC. Noninterest income declined $219 million, or 27%, as compared with the year-earlier second quarter. Other revenues from operations declined $210 million predominantly due to the $225 million gain on the sale of the Collective Investment Trust ("CIT") business recognized in April 2023, partially offset by higher letter of credit and other credit-related fees and an increase in tax-exempt income from bank owned life insurance in the recent quarter. Trust income decreased $2 million. The Company recorded approximately $15 million of revenues from its CIT business in 2023 prior to its sale. That revenue decline was largely offset by higher sales and fees from the Company's global capital markets business.  Noninterest Expense Change2Q24 vs. Change2Q24 vs. (Dollars in millions) 2Q24 1Q24 1Q24 2Q23 2Q23 Salaries and employee benefits $          764 $          833 -8 % $          738 4 % Equipment and net occupancy 125 129 -3 129 -3 Outside data processing and software 124 120 4 106 17 Professional and other services 91 85 6 100 -10 FDIC assessments 37 60 -38 28 32 Advertising and marketing 27 20 34 28 -5 Amortization of core deposit and other intangible assets 13 15 -15 15 -15 Other costs of operations 116 134 -13 149 -21 Total $       1,297 $       1,396 -7 $       1,293 —   Noninterest expense aggregated $1.30 billion in the recent quarter, down from $1.40 billion in the first quarter of 2024. Salaries and employee benefits expense decreased $69 million reflecting seasonally higher stock-based compensation, payroll related-taxes and other employee benefits expense in the first quarter of 2024, partially offset by the full-quarter impact of annual merit increases awarded in the first quarter of 2024. FDIC assessments reflect estimated special assessment expense of $29 million and $5 million in the first quarter and second quarter of 2024, respectively, related to the FDIC's updated loss estimates associated with certain failed banks. Other costs of operations decreased $18 million reflecting lower expense associated with the Company's supplemental executive retirement savings plan and losses on lease terminations related to certain vacated properties in the first quarter of 2024. Noninterest expense increased $4 million from the second quarter of 2023. Salaries and employee benefits expenses increased $26 million reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower employee staffing levels. Outside data processing and software rose $18 million due to higher software maintenance and licensing costs and data processing expenses. Other costs of operations decreased $33 million as a result of a decline in check fraud losses, credit card merchant expenses and costs associated with serviced loans. Income Taxes The Company's effective income tax rate was 23.4% in the second quarter of 2024, compared with 20.0% and 25.2% in the first quarter of 2024 and second quarter of 2023, respectively. The first quarter of 2024 income tax expense reflects a net discrete tax benefit related to the resolution of a tax matter inherited from the acquisition of People's United Financial, Inc. Capital 2Q24 1Q24 2Q23 CET1 11.44 % (1) 11.08 % 10.59 % Tier 1 capital 13.22 (1) 12.38 11.91 Total capital 14.87 (1) 14.04 13.71 Tangible capital – common 8.55 8.03 7.63 (1)  June 30, 2024 capital ratios are estimated.   M&T's capital ratios remained well above the minimum set forth by regulatory requirements. The Company issued $750 million par value of Perpetual 7.5% Non-Cumulative Preferred Stock (Series J) in May 2024. Cash dividends declared on M&T's common and preferred stock totaled $228 million and $27 million, respectively, for the quarter ended June 30, 2024. M&T's current stress capital buffer is 4.0%. In June 2024, the Federal Reserve released the results of its most recent supervisory stress tests. Based on those results, M&T's stress capital buffer is estimated to be 3.8% effective October 1, 2024. The CET1 capital ratio for M&T was estimated at 11.44% as of June 30, 2024. M&T's total risk-weighted assets at June 30, 2024 are estimated to be $155 billion. Conference Call Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 8:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ224. The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday July 25, 2024 by calling (800) 727-5306, or (402) 220-2670 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations. About M&T M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services in 12 states across the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com. Forward-Looking Statements This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions. Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted. While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events and developments in the financial services industry, including industry conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in M&T's credit ratings; the impact of the People's United Financial, Inc. acquisition; domestic or international political developments and other geopolitical events, including international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements. These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, and other factors. M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2023, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements. Financial Highlights Three months ended Six months ended June 30, June 30, (Dollars in millions, except per share, shares in thousands) 2024 2023 Change 2024 2023 Change Performance Net income $         655 $         867 -25 % $       1,186 $       1,569 -24 % Net income available to common shareholders 626 841 -26 1,131 1,516 -25 Per common share: Basic earnings 3.75 5.07 -26 6.79 9.09 -25 Diluted earnings 3.73 5.05 -26 6.76 9.06 -25 Cash dividends 1.35 1.30 4 2.65 2.60 2 Common shares outstanding: