M&T Bank Reports Mixed Q3 Results, Net Income Up 4% Year-Over-Year

M&T Bank Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the third quarter of 2024, M&T Bank achieved a net income of $721 million, an increase from $690 million in the same quarter of 2023. Net income available to common shareholders rose to $674 million from $664 million year-over-year. Basic earnings per share increased to $4.04 from $4.00. However, for the nine months ended September 30, 2024, net income decreased to $1.907 billion from $2.259 billion in the prior year, with basic earnings per share dropping to $10.83 from $13.09.

Interest income for the third quarter was $2.785 billion, up from $2.641 billion in the same period last year, while total interest expense rose significantly to $1.059 billion from $866 million. This resulted in net interest income of $1.726 billion, slightly down from $1.775 billion in Q3 2023. For the nine-month period, net interest income decreased to $5.124 billion from $5.393 billion, reflecting a narrowing net interest margin.

M&T Bank's total assets as of September 30, 2024, were $211.785 billion, a modest increase from $208.264 billion at the end of 2023. Total deposits rose to $164.554 billion from $163.274 billion. The bank's long-term borrowings increased to $11.583 billion from $8.201 billion, while total shareholders' equity grew to $28.876 billion from $26.957 billion.

Strategically, M&T Bank completed the sale of its CIT business to a private equity firm in April 2023, which contributed a pre-tax gain of $225 million to other revenues for the nine months ended September 30, 2023. The bank also issued $733 million in Series J preferred stock in May 2024 and repurchased 1.19 million shares of common stock in Q3 2024 at an average cost of $166.40 per share.

The bank's provision for credit losses for the third quarter was $120 million, down from $150 million in the previous quarter, while the nine-month provision increased to $470 million from $420 million in 2023. Nonaccrual loans decreased to $1.926 billion from $2.166 billion year-over-year, indicating improved asset quality.

Overall, M&T Bank's performance reflects a combination of increased interest income and strategic adjustments, alongside challenges in net income and credit loss provisions compared to the previous fiscal period.