M&T Bank Corp. Files Q2 2024 10-Q Report

TL;DR

MTB Q2 10-Q filed. Financials look solid.

AI Summary

M&T Bank Corp. filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The filing details the company's assets, liabilities, and equity, as well as its revenues and expenses for the quarter. Specific financial figures and operational details are provided within the comprehensive report.

Why It Matters

This filing provides investors and analysts with a detailed look into M&T Bank's financial health and operational performance for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) for a publicly traded company, which is standard practice and does not inherently indicate elevated risk.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the second quarter of 2024 financial results.)
• 12/31 — Fiscal Year End (Specifies the end of the company's fiscal year.)

Key Players & Entities

• M&T BANK CORP (company) — Filer
• 0000036270 (company) — Central Index Key
• NY (location) — State of Incorporation
• 20240630 (date) — Report Period End Date

FAQ

Key Financial Figures

• $0.50 — ange on Which Registered Common Stock, $0.50 par value MTB New York Stock Exchange

Filing Documents

• mtb-20240630.htm (10-Q) — 5563KB
• a10q-exx3112q24.htm (EX-31.1) — 10KB
• a10q-exx3122q24.htm (EX-31.2) — 10KB
• a10q-exx3212q24.htm (EX-32.1) — 5KB
• a10q-exx3222q24.htm (EX-32.2) — 5KB
• 0001628280-24-034695.txt ( ) — 22824KB
• mtb-20240630.xsd (EX-101.SCH) — 82KB
• mtb-20240630_cal.xml (EX-101.CAL) — 131KB
• mtb-20240630_def.xml (EX-101.DEF) — 543KB
• mtb-20240630_lab.xml (EX-101.LAB) — 978KB
• mtb-20240630_pre.xml (EX-101.PRE) — 785KB
• mtb-20240630_htm.xml (XML) — 5772KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Item 1.

Financial Statements

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

NOTES TO FINANCIAL STATEMENTS 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 86 Item 4.

Controls and Procedures

Controls and Procedures 86

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 87 Item 1A.

Risk Factors

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

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 -

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

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 st

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS 1. Significant accounting policies The consolidated interim financial statements of the Company were compiled in accordance with GAAP using the accounting policies set forth in note 1 of Notes to Financial Statements included in M&T's 2023 Annual Report, except as described in the following table. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented. Recent accounting developments Standard Description Required date of adoption Effect on consolidated financial statements Standards Adopted in 2024 Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments permit an election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits and other income tax benefits received and the net amortization and income tax credits and other income tax benefits are recognized in the income statement as a component of income tax expense (benefit). January 1, 2024 As described in note 12, the Company adopted the amended guidance effective January 1, 2024 using a modified retrospective transition. The guidance did not have a material impact on the Company's consolidated financial statements. 2. Divestiture On April 29, 2023, the Company sold its CIT business to a private equity firm. The transaction resulted in a pre-tax gain of $ 225 million ($ 157 million after-tax effect) that has been included in "other revenues from operations" in the Consolidated Statement of Income for the three-month and six-month periods ended June 30, 2023. Prior to the sale, t

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 3. Investment securities The amortized cost and estimated fair value of investment securities were as follows: (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2024 Investment securities available for sale: U.S. Treasury and federal agencies $ 7,819 $ 2 $ 85 $ 7,736 Mortgage-backed securities: Government issued or guaranteed: Commercial 2,101 4 16 2,089 Residential 4,108 6 148 3,966 Other debt securities 103 — 2 101 14,131 12 251 13,892 Investment securities held to maturity: U.S. Treasury and federal agencies 1,010 — 30 980 Obligations of states and political subdivisions 2,433 — 127 2,306 Mortgage-backed securities: Government issued or guaranteed: Commercial 2,037 — 157 1,880 Residential 9,272 — 972 8,300 Privately issued 40 7 5 42 Other debt securities 1 — — 1 14,793 7 1,291 13,509 Total debt securities $ 28,924 $ 19 $ 1,542 $ 27,401 Equity and other securities: Readily marketable equity — at fair value $ 272 $ 11 $ 3 $ 280 Other — at cost 929 — — 929 Total equity and other securities $ 1,201 $ 11 $ 3 $ 1,209 December 31, 2023 Investment securities available for sale: U.S. Treasury and federal agencies $ 7,818 $ — $ 113 $ 7,705 Mortgage-backed securities: Government issued or guaranteed: Commercial 425 — 9 416 Residential 2,272 — 118 2,154 Other debt securities 176 — 11 165 10,691 — 251 10,440 Investment securities held to maturity: U.S. Treasury and federal agencies 1,005 — 31 974 Obligations of states and political subdivisions 2,501 — 67 2,434 Mortgage-backed securities: Government issued or guaranteed: Commercial 2,033 — 130 1,903 Residential 9,747 4 802 8,949 Privately issued 42 9 5 46 Other debt securities 2 — — 2 15,330 13 1,035 14,308 Total debt securities $ 26,021 $ 13 $ 1,286 $ 24,748 Equity and other securities: Readily marketable equity — at fair value $ 266 $ 5 $ 3 $ 268 Other — at cost 859 —

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 3. Investment securities, continued Gross realized losses from sales of investment securities totaled $ 13 million for each of the three-month and six-month periods ended June 30, 2024. There were no significant gross realized gains recognized for those same 2024 periods. There were no significant gross realized gains or losses from sales of investment securities for the three-month and six-month periods ended June 30, 2023. Unrealized losses on equity securities are included in "gain (loss) on bank investment securities" in the Consolidated Statement of Income. At June 30, 2024, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows: (Dollars in millions) Amortized Cost Estimated Fair Value Debt securities available for sale: Due in one year or less $ 3,133 $ 3,093 Due after one year through five years 4,789 4,744 Due after five years through ten years — — Due after ten years — — 7,922 7,837 Mortgage-backed securities 6,209 6,055 $ 14,131 $ 13,892 Debt securities held to maturity: Due in one year or less $ 588 $ 579 Due after one year through five years 653 628 Due after five years through ten years 1,392 1,332 Due after ten years 811 748 3,444 3,287 Mortgage-backed securities 11,349 10,222 $ 14,793 $ 13,509 - 11 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 3. Investment securities, continued A summary of investment securities that as of June 30, 2024 and December 31, 2023 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows: Less Than 12 Months 12 Months or More (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2024 Investment securities available for sale: U.S. Treasury and federal agencies $ 2,586 $ 15 $ 4,400 $ 70 Mortgage-backed securities: Government issued or guaranteed: Commercial 1,061 10 317 6 Residential 1,129 11 1,874 137 Other debt securities 10 — 64 2 4,786 36 6,655 215 Investment securities held to maturity: U.S. Treasury and federal agencies — — 980 30 Obligations of states and political subdivisions 45 1 2,214 126 Mortgage-backed securities: Government issued or guaranteed: Commercial — — 1,880 157 Residential 790 13 7,510 959 Privately issued — — 31 5 835 14 12,615 1,277 Total $ 5,621 $ 50 $ 19,270 $ 1,492 December 31, 2023 Investment securities available for sale: U.S. Treasury and federal agencies $ 229 $ 1 $ 7,474 $ 112 Mortgage-backed securities: Government issued or guaranteed: Commercial 74 1 330 8 Residential 151 2 1,959 116 Other debt securities 6 — 154 11 460 4 9,917 247 Investment securities held to maturity: U.S. Treasury and federal agencies 50 — 924 31 Obligations of states and political subdivisions 218 3 2,172 64 Mortgage-backed securities: Government issued or guaranteed: Commercial 328 9 1,575 121 Residential 955 11 7,139 791 Privately issued — — 34 5 1,551 23 11,844 1,012 Total $ 2,011 $ 27 $ 21,761 $ 1,259 - 12 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 3. Investment securities, continued The Company owned 3,996 individual debt securities with aggregate gross unrealized losses of $ 1.5 billion at June 30, 2024. Based on a review of each of the securities in the investment securities portfolio at June 30, 2024, the Company concluded that it expected to recover the amortized cost basis of its investment. As of June 30, 2024, the Company does not intend to sell, nor is it anticipated that it would be required to sell, any of its impaired investment securities at a loss. At June 30, 2024, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $ 929 million of cost method equity securities. The Company estimated no material allowance for credit losses for its investment securities classified as held-to-maturity at June 30, 2024 or December 31, 2023. At June 30, 2024 and December 31, 2023, investment securities with carrying values of $ 7.1 billion (including $ 311 million related to repurchase transactions) and $ 8.2 billion (including $ 393 million related to repurchase transactions), respectively, were pledged to secure borrowings, lines of credit and governmental deposits. 4. Loans and leases and the allowance for credit losses A summary of current, past due and nonaccrual loans as of June 30, 2024 and December 31, 2023 follows: (Dollars in millions) Current 30-89 Days Past Due Accruing Loans Past Due 90 Days or More Nonaccrual Total June 30, 2024 Commercial and industrial $ 58,982 $ 234 $ 6 $ 805 $ 60,027 Real estate: Commercial (a) 21,913 142 4 707 22,766 Residential builder and developer 1,026 2 — 2 1,030 Other commercial construction 5,581 76 2 77 5,736 Residential (b) 21,023 709 214 205 22,151 Residential — limited documentation 762 35 — 55 852 Consumer: Home equity lines and loans 4,449 33 — 79 4,561 Recreational finance 11,152 83 — 25 11,260 Automobile 4,459 53 — 11 4,

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 4. Loans and leases and the allowance for credit losses, continued Credit quality indicators The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. Loans with a lower expectation of default are assigned one of ten possible "pass" loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are designated as "criticized" and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be designated as "nonaccrual" if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. Line of business personnel in different geographic locations with support from and review by the Company's credit risk personnel review and reassign loan grades based on their detailed knowledge of individual borrowers and their judgment of the impact on such borrowers resulting from changing conditions in their respective regions. Factors considered in assigning loan grades include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information. The Company's policy is that at least annually, updated financial information be obtained from commercial borrowers associated with pass grade loans and additional analysis performed. On a quarterly basis, the Company's credit personnel review all criticized commercial and industrial loans and commercial real estate loans greater than $ 5 million to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. - 14 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 4. Loans and leases and the allowance for credit losses, continued The following table summarizes the loan grades applied at June 30, 2024 to the various classes of the Company's commercial and industrial loans and commercial real estate loans and gross charge-offs for those types of loans for the three-month and six-month periods ended June 30, 2024 by origination year. Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in millions) 2024 2023 2022 2021 2020 Prior Commercial and industrial: Pass $ 4,226 $ 7,554 $ 7,107 $ 4,199 $ 1,932 $ 6,299

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