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• Net Interest Margin: Increased by 8 basis points to 3.66%.

• Share Repurchases: Executed $662 million in share repurchases.

• Tangible Book Value Per Share: Grew by 2%.

• Fee Income Growth: Increased by 5% year-over-year, or 10% excluding last year's BLG distribution.

• Net Charge-Offs: 34 basis points, below full-year expectations of 40 basis points.

• Diluted GAAP Earnings Per Share: $3.32, down from $3.86 in the prior quarter.

• Net Income: $584 million, compared to $681 million in the linked quarter.

• Return on Assets (ROA): 1.14%.

• Return on Common Equity (ROCE): 8.36%.

• Net Operating Income: $594 million, compared to $691 million in the linked quarter.

• Taxable-Equivalent Net Interest Income: $1.71 billion, a decrease of $33 million or 2% from the linked quarter.

• Average Loans and Leases: Decreased by $0.9 million to $134.8 billion.

• Average Total Deposits: Declined by $3.4 billion or 2% to $161.2 billion.

• Noninterest Income: $611 million, compared to $657 million in the linked quarter.

• Noninterest Expenses: $1.42 billion, an increase of $52 million from the prior quarter.

• Efficiency Ratio: 60.5%, compared to 56.8% in the linked quarter.

• Nonaccrual Loans: Decreased by $150 million or 9% to $1.5 billion.

• CET1 Ratio: Estimated at 11.5%, compared to 11.68% at the end of the fourth quarter.

• Warning! GuruFocus has detected 4 Warning Sign with MTB.

Release Date: April 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• M&T Bank Corp (NYSE:MTB) reported a strong start to the year with an increase in net interest margin by 8 basis points, reflecting an efficient balance sheet and strong deposit franchise.

• The bank executed $662 million in share repurchases, contributing to a tangible book value per share growth of 2%.

• Asset quality improved with a $516 million reduction in commercial criticized balances and a $150 million reduction in nonaccrual loans.

• M&T Bank Corp (NYSE:MTB) received notable recognition, including 13 Greenwich Coalition awards and inclusion in Fortune's Most Admired and Most Innovative Company list.

• The bank's liquidity remains strong, with investment securities and cash totaling $57.9 billion, representing 28% of total assets.

Negative Points

• Diluted GAAP earnings per share decreased to $3.32 from $3.86 in the prior quarter, with net income falling to $584 million from $681 million.

• Average loans and leases decreased by $0.9 million, with lower CRE balances partially offsetting growth in other areas.

• Noninterest income declined by $46 million compared to the linked quarter, with a notable decrease in commercial mortgage banking revenues.

• Noninterest expenses increased by $52 million from the prior quarter, driven by seasonally higher compensation expenses.

• The allowance to loan ratio increased by 2 basis points to 1.63%, reflecting a modest deterioration in the macroeconomic forecast.