M&T Bank Corp. Files Q3 2024 10-Q

TL;DR

MTB's Q3 2024 10-Q is in. Check financials.

AI Summary

M&T Bank Corp. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position. Key financial data and operational updates are provided for the third quarter of 2024.

Why It Matters

This filing provides investors and analysts with the latest financial data for M&T Bank Corp., crucial for understanding the bank's performance and making informed investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial data is reported.)

Key Players & Entities

• M&T BANK CORP (company) — Filer
• 0000036270 (company) — Central Index Key
• NY (location) — State of Incorporation
• 20240930 (date) — Period of Report
• 20241105 (date) — Filing 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-20240930.htm (10-Q) — 5590KB
• a10q-exx3113q24.htm (EX-31.1) — 10KB
• a10q-exx3123q24.htm (EX-31.2) — 10KB
• a10q-exx3213q24.htm (EX-32.1) — 5KB
• a10q-exx3223q24.htm (EX-32.2) — 5KB
• 0001628280-24-045198.txt ( ) — 22851KB
• mtb-20240930.xsd (EX-101.SCH) — 83KB
• mtb-20240930_cal.xml (EX-101.CAL) — 132KB
• mtb-20240930_def.xml (EX-101.DEF) — 559KB
• mtb-20240930_lab.xml (EX-101.LAB) — 990KB
• mtb-20240930_pre.xml (EX-101.PRE) — 800KB
• mtb-20240930_htm.xml (XML) — 5719KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements CONSOLIDATED BALANCE SHEET – September 30, 2024 and December 31, 2023 4 CONSOLIDATED STATEMENT OF INCOME – Three and nine months ended September 30, 2024 and 2023 5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME – Three and nine months ended September 30, 2024 and 2023 6 CONSOLIDATED STATEMENT OF CASH FLOWS – Nine months ended September 30, 2024 and 2023 7 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY – Three and nine months ended September 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 87 Item 4.

Controls and Procedures

Controls and Procedures 87

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 88 Item 1A.

Risk Factors

Risk Factors 88 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88 Item 3. Defaults Upon Senior Securities 88 Item 4. Mine Safety Disclosures 88 Item 5. Other Information 89 Item 6. Exhibits 89

SIGNATURES

SIGNATURES 90 - 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 SEC Securities and Exchange Commission 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) September 30, 2024 December 31, 2023 Assets Cash and due from banks $ 2,216 $ 1,731 Interest-bearing deposits at banks 24,417 28,069 Trading account 102 106 Investment securities: Available for sale (cost: $ 16,658 at September 30, 2024; $ 10,691 at December 31, 2023) 16,727 10,440 Held to maturity (fair value: $ 13,709 at September 30, 2024; $ 14,308 at December 31, 2023) 14,503 15,330 Equity and other securities (cost: $ 1,090 at September 30, 2024; $ 1,125 at December 31, 2023) 1,097 1,127 Total investment securities 32,327 26,897 Loans and leases, net of unearned discount of $ 1,043 at September 30, 2024 and $ 868 at December 31, 2023 135,920 134,068 Allowance for credit losses ( 2,204 ) ( 2,129 ) Loans and leases, net 133,716 131,939 Premises and equipment 1,694 1,739 Goodwill 8,465 8,465 Core deposit and other intangible assets 107 147 Accrued interest and other assets 8,741 9,171 Total assets $ 211,785 $ 208,264 Liabilities Noninterest-bearing deposits $ 47,344 $ 49,294 Savings and interest-checking deposits 100,698 93,221 Time deposits 16,512 20,759 Total deposits 164,554 163,274 Short-term borrowings 2,605 5,316 Accrued interest and other liabilities 4,167 4,516 Long-term borrowings 11,583 8,201 Total liabilities 182,909 181,307 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 December 31, 2023; Liquidation preference of $ 10,000 per share: 215,000 shares at September 30, 2024 and 140,000 shares at December 31, 2023; Liquidation preference of $ 25 per share: 10,000,000 shares at September 30, 2024 and December 31, 2023 2,394 2,011 Common stock, $ 0.50 par, 250,000,000 shares authorized, 179,436,779 shares issued at September 30, 2024 and December

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 nine months ended September 30, 2023. Prior to the sale, the CIT business c

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 September 30, 2024 Investment securities available for sale: U.S. Treasury and federal agencies $ 7,824 $ 62 $ 26 $ 7,860 Mortgage-backed securities: Government issued or guaranteed: Commercial 3,125 55 3 3,177 Residential 5,606 60 77 5,589 Other debt securities 103 — 2 101 16,658 177 108 16,727 Investment securities held to maturity: U.S. Treasury and federal agencies 1,013 — 14 999 Obligations of states and political subdivisions 2,397 — 71 2,326 Mortgage-backed securities: Government issued or guaranteed: Commercial 2,038 — 81 1,957 Residential 9,016 13 646 8,383 Privately issued 38 8 3 43 Other debt securities 1 — — 1 14,503 21 815 13,709 Total debt securities $ 31,161 $ 198 $ 923 $ 30,436 Equity and other securities: Readily marketable equity — at fair value $ 250 $ 9 $ 2 $ 257 Other — at cost 840 — — 840 Total equity and other securities $ 1,090 $ 9 $ 2 $ 1,097 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 the nine-month period ended September 30, 2024. There were no significant gross realized gains recognized for that same 2024 period. There were no significant gross realized gains or losses from sales of investment securities for the nine-month period ended September 30, 2023. Unrealized losses on equity securities are included in "gain (loss) on bank investment securities" in the Consolidated Statement of Income. At September 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 $ 3,206 $ 3,187 Due after one year through five years 4,721 4,774 Due after five years through ten years — — Due after ten years — — 7,927 7,961 Mortgage-backed securities 8,731 8,766 $ 16,658 $ 16,727 Debt securities held to maturity: Due in one year or less $ 589 $ 585 Due after one year through five years 654 643 Due after five years through ten years 1,463 1,429 Due after ten years 705 669 3,411 3,326 Mortgage-backed securities 11,092 10,383 $ 14,503 $ 13,709 - 11 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

NOTES TO FINANCIAL STATEMENTS, CONTINUED 3. Investment securities, continued A summary of investment securities that as of September 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 September 30, 2024 Investment securities available for sale: U.S. Treasury and federal agencies $ 125 $ — $ 3,069 $ 26 Mortgage-backed securities: Government issued or guaranteed: Commercial 395 2 128 1 Residential 227 — 1,760 77 Other debt securities — — 64 2 747 2 5,021 106 Investment securities held to maturity: U.S. Treasury and federal agencies — — 949 14 Obligations of states and political subdivisions 26 — 2,192 71 Mortgage-backed securities: Government issued or guaranteed: Commercial — — 1,957 81 Residential — — 7,318 646 Privately issued — — 31 3 26 — 12,447 815 Total $ 773 $ 2 $ 17,468 $ 921 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 3,600 individual debt securities with aggregate gross unrealized losses of $ 923 million at September 30, 2024. Based on a review of each of the securities in the investment securities portfolio at September 30, 2024, the Company concluded that it expected to recover the amortized cost basis of its investment. As of September 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 September 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 $ 840 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 September 30, 2024 or December 31, 2023. At September 30, 2024 and December 31, 2023, investment securities with carrying values of $ 7.4 billion (including $ 124 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 September 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 September 30, 2024 Commercial and industrial $ 59,926 $ 265 $ 11 $ 810 $ 61,012 Real estate: Commercial (a) 21,560 231 2 578 22,371 Residential builder and developer 981 9 — 2 992 Other commercial construction 5,123 113 — 84 5,320 Residential (b) 21,042 667 268 219 22,196 Residential — limited documentation 737 29 — 57 823 Consumer: Home equity lines and loans 4,464 30 — 82 4,576 Recreational finance 11,621 90 —

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 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 g

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