M&T BANK CORP [MTB] Filings

10-Q 1 mtb-20240630.htm 10-Q mtb-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q

_______________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

Commission File Number 1-9861

_______________________

M&T BANK CORPORATION

(Exact name of registrant as specified in its charter)

_______________________


New York						16-0968385
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One M&T Plaza Buffalo, New York						14203
(Address of principal executive offices)						(Zip Code)

Registrant's telephone number, including area code:

(716) 635-4000

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Common Stock, $0.50 par value	MTB	New York Stock Exchange
Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series H	MTBPrH	New York Stock Exchange
Perpetual 7.500% Non-Cumulative Preferred Stock, Series J	MTBPrJ	New York Stock Exchange

_____________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

Number of shares of the registrant's Common Stock, $0.50 par value, outstanding as of the close of business on August 1, 2024: 167,000,691 shares.

M&T BANK CORPORATION

FORM 10-Q

For the Quarterly Period Ended June 30, 2024


Table of Contents of Information Required in Report		Page
	Glossary of Terms	3
Part I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	CONSOLIDATED BALANCE SHEET – June 30, 2024 and December 31, 2023	4

	CONSOLIDATED STATEMENT OF INCOME – Three and six months ended June 30, 2024 and 2023	5

	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME – Three and six months ended June 30, 2024 and 2023	6

	CONSOLIDATED STATEMENT OF CASH FLOWS – Six months ended June 30, 2024 and 2023	7

	CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY – Three and six months ended June 30, 2024 and 2023	8

	NOTES TO FINANCIAL STATEMENTS	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	45

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	86

Item 4.	Controls and Procedures	86

Part II. OTHER INFORMATION

Item 1.	Legal Proceedings	87

Item 1A.	Risk Factors	87

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	87

Item 3.	Defaults Upon Senior Securities	87

Item 4.	Mine Safety Disclosures	87

Item 5.	Other Information	88

Item 6.	Exhibits	88

SIGNATURES		89

- 2 -

GLOSSARY OF TERMS

The following listing includes acronyms and terms used throughout the document.


Term			Definition
2023 Annual Report			Form 10-K for the year ended December 31, 2023
Bayview Financial			Bayview Financial Holdings, L.P. together with its affiliates
BLG			Bayview Lending Group, LLC
Capital Rules			Capital adequacy standards established by the federal banking agencies
CET1			Common Equity Tier 1
CIT			Collective Investment Trust
Company			M&T Bank Corporation and its consolidated subsidiaries
DUS			Delegated Underwriting and Servicing
Executive ALCO Committee			Executive Asset-Liability Liquidity Capital Committee of M&T
FDIC			Federal Deposit Insurance Corporation
Federal Reserve			Board of Governors of the Federal Reserve System
FHLB			Federal Home Loan Bank
FOMC			Federal Open Market Committee
FRB			Federal Reserve Bank
GAAP			Accounting principles generally accepted in the U.S.
GDP			Gross Domestic Product
Junior subordinated debentures			Fixed and variable rate junior subordinated deferrable interest debentures
LTV			Loan-to-value
M&T			M&T Bank Corporation
M&T Bank			Manufacturers and Traders Trust Company
People’s United			People’s United Financial, Inc.
RWA			Risk-weighted assets
SCB			Stress capital buffer
SOFR			Secured Overnight Financing Rate
U.S.			United States of America

- 3 -

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (Unaudited)


(Dollars in millions, except per share)	June 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	1,778	$	1,731
Interest-bearing deposits at banks	24,792		28,069

Trading account	99		106
Investment securities:
Available for sale (cost: $14,131 at June 30, 2024; $10,691 at December 31, 2023)	13,892		10,440
Held to maturity (fair value: $13,509 at June 30, 2024; $14,308 at December 31, 2023)	14,793		15,330
Equity and other securities (cost: $1,201 at June 30, 2024; $1,125 at December 31, 2023)	1,209		1,127
Total investment securities	29,894		26,897


Loans and leases, net of unearned discount of $990 at June 30, 2024 and $868 at December 31, 2023	135,002		134,068
Allowance for credit losses	(2,204)		(2,129)
Loans and leases, net	132,798		131,939
Premises and equipment	1,719		1,739
Goodwill	8,465		8,465
Core deposit and other intangible assets	119		147
Accrued interest and other assets	9,191		9,171
Total assets	$	208,855	$	208,264
Liabilities
Noninterest-bearing deposits	$	47,729	$	49,294
Savings and interest-checking deposits	94,668		93,221
Time deposits	17,513		20,759
Total deposits	159,910		163,274
Short-term borrowings	4,764		5,316
Accrued interest and other liabilities	4,438		4,516
Long-term borrowings	11,319		8,201
Total liabilities	180,431		181,307
Shareholders' equity
Preferred stock, $1.00 par, 20,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: 350,000 shares at June 30, 2024 and December 31, 2023; Liquidation preference of $10,000 per share: 215,000 shares at June 30, 2024 and 140,000 shares at December 31, 2023; Liquidation preference of $25 per share; 10,000,000 shares at June 30, 2024 and December 31, 2023	2,744		2,011
Common stock, $0.50 par, 250,000,000 shares authorized, 179,436,779 shares issued at June 30, 2024 and December 31, 2023	90		90
Common stock issuable, 11,560 shares at June 30, 2024; 12,217 shares at December 31, 2023	1		1
Additional paid-in capital	9,976		10,020
Retained earnings	18,211		17,524
Accumulated other comprehensive income (loss), net	(551)		(459)
Treasury stock — common, at cost — 12,223,276 shares at June 30, 2024; 13,300,298 shares at December 31, 2023	(2,047)		(2,230)
Total shareholders’ equity	28,424		26,957
Total liabilities and shareholders’ equity	$	208,855	$	208,264

See accompanying notes to financial statements.

- 4 -

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2024		2023		2024		2023
Interest income
Loans and leases, including fees	$	2,128	$	1,998	$	4,225	$	3,848
Investment securities:
Fully taxable	244		199		456		381
Exempt from federal taxes	16		16		32		33
Deposits at banks	400		302		819		579
Other	1		1		2		2
Total interest income	2,789		2,516		5,534		4,843
Interest expense
Savings and interest-checking deposits	618		369		1,233		646
Time deposits	217		150		442		239
Short-term borrowings	69		96		153		154
Long-term borrowings	167		102		308		187
Total interest expense	1,071		717		2,136		1,226
Net interest income	1,718		1,799		3,398		3,617
Provision for credit losses	150		150		350		270
Net interest income after provision for credit losses	1,568		1,649		3,048		3,347
Other income
Mortgage banking revenues	106		107		210		192
Service charges on deposit accounts	127		119		251		232
Trust income	170		172		330		366
Brokerage services income	30		25		59		49
Trading account and other non-hedging derivative gains	7		17		16		28
Gain (loss) on bank investment securities	(8)		1		(6)		1
Other revenues from operations	152		362		304		522
Total other income	584		803		1,164		1,390
Other expense
Salaries and employee benefits	764		738		1,597		1,546
Equipment and net occupancy	125		129		254		256
Outside data processing and software	124		106		244		212
Professional and other services	91		100		176		225
FDIC assessments	37		28		97		58
Advertising and marketing	27		28		47		59
Amortization of core deposit and other intangible assets	13		15		28		32
Other costs of operations	116		149		250		264
Total other expense	1,297		1,293		2,693		2,652
Income before taxes	855		1,159		1,519		2,085
Income taxes	200		292		333		516
Net income	$	655	$	867	$	1,186	$	1,569
Net income available to common shareholders
Basic	$	626	$	841	$	1,131	$	1,516
Diluted	626		841		1,131		1,516
Net income per common share
Basic	3.75		5.07		6.79		9.09
Diluted	3.73		5.05		6.76		9.06
Average common shares outstanding
Basic	166,951		165,842		166,705		166,782
Diluted	167,659		166,320		167,372		167,359

See accompanying notes to financial statements.

- 5 -

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2024		2023		2024		2023
Net income	$	655	$	867	$	1,186	$	1,569
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	18		(64)		8		1
Cash flow hedges adjustments	22		(156)		(95)		(75)
Defined benefit plans liability adjustments	(2)		(1)		(3)		(3)
Other	—		1		(2)		2
Total other comprehensive income (loss)	38		(220)		(92)		(75)
Total comprehensive income	$	693	$	647	$	1,094	$	1,494

See accompanying notes to financial statements.

- 6 -

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)


	Six Months Ended June 30,
(Dollars in millions)	2024		2023
Cash flows from operating activities
Net income	$	1,186	$	1,569
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	350		270
Depreciation and amortization of premises and equipment	159		149
Amortization of capitalized servicing rights	70		57
Amortization of core deposit and other intangible assets	28		32
Provision for deferred income taxes	(14)		(7)
Asset write-downs	6		1
Net (gain) loss on sales of assets	3		(234)
Net change in accrued interest receivable, payable	—		259
Net change in other accrued income and expense	51		(72)
Net change in loans originated for sale	11		(340)
Net change in trading account and other non-hedging derivative assets and liabilities	112		1
Net cash provided by operating activities	1,962		1,685
Cash flows from investing activities
Proceeds from sales of investment securities:
Available for sale	58		—
Equity and other securities	223		614
Proceeds from maturities of investment securities:
Available for sale	3,522		298
Held to maturity	547		571
Purchases of investment securities:
Available for sale	(7,200)		(344)
Held to maturity	—		(2,948)
Equity and other securities	(294)		(873)
Net increase in loans and leases	(1,258)		(1,645)
Net (increase) decrease in interest-bearing deposits at banks	3,277		(2,148)
Capital expenditures, net	(101)		(101)
Net decrease in loan servicing advances	153		286
Other, net	(384)		(360)
Net cash used by investing activities	(1,457)		(6,650)
Cash flows from financing activities
Net decrease in deposits	(3,366)		(1,455)
Net increase (decrease) in short-term borrowings	(552)		4,353
Proceeds from long-term borrowings	3,357		3,486
Payments on long-term borrowings	(162)		—
Proceeds from issuance of Series J preferred stock	733		—
Purchases of treasury stock	—		(594)
Dividends paid — common	(446)		(436)
Dividends paid — preferred	(58)		(50)
Other, net	36		(11)
Net cash provided (used) by financing activities	(458)		5,293
Net increase in cash, cash equivalents and restricted cash	47		328
Cash, cash equivalents and restricted cash at beginning of period	1,731		1,520
Cash, cash equivalents and restricted cash at end of period	$	1,778	$	1,848
Supplemental disclosure of cash flow information
Interest received during the period	$	5,547	$	4,814
Interest paid during the period	2,115		923
Income taxes paid during the period	106		329
Supplemental schedule of noncash investing and financing activities
Real estate acquired in settlement of loans	23		12
Additions to right-of-use assets under operating leases	43		69

See accompanying notes to financial statements.

- 7 -

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Dollars in millions, except per share)

M&T BANK CORP [MTB] Filings
M&T BANK CORP [MTB-PH] Filings
M&T BANK CORP [MTB-PJ] Filings
10-Q	[2024-08-05]
10-Q	[2024-05-03]
10-K	[2024-02-21]
10-Q	[2023-11-06]
10-Q	[2023-08-08]
10-Q	[2023-05-05]
10-K	[2023-02-22]
10-Q	[2022-11-07]
10-Q	[2022-08-05]
10-Q	[2022-05-05]
10-K	[2022-02-16]
10-Q	[2021-11-05]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-02-22]
10-Q	[2020-11-04]
10-Q	[2020-08-05]
10-Q	[2020-05-07]
10-K	[2020-02-20]
10-Q	[2019-11-05]
10-Q	[2019-08-05]
10-Q	[2019-05-02]
10-K	[2019-02-20]
10-Q	[2018-11-05]
10-Q	[2018-08-02]
10-Q	[2018-05-04]
10-K	[2018-02-22]
10-Q	[2017-11-03]
10-Q	[2017-08-07]
10-Q	[2017-05-05]
10-K	[2017-02-22]
10-Q	[2016-11-04]
10-Q	[2016-08-04]
10-Q	[2016-04-29]
10-K	[2016-02-19]
10-Q	[2015-10-30]
10-Q	[2015-08-05]
10-Q	[2015-05-08]
10-K	[2015-02-20]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-02-21]
10-Q	[2013-11-12]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-02-25]
10-Q	[2012-11-06]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-02-23]

M&T BANK CORP [MTB] Filings

M&T BANK CORP [MTB-PH] Filings

M&T BANK CORP [MTB-PJ] Filings