M&T Bank Reports $2.59 Billion Net Income, 6% Decrease in 2024

M&T Bank Corporation (M&T) reported consolidated total assets of $208.1 billion, deposits of $161.1 billion, and shareholders’ equity of $29.0 billion at the end of 2024. Net income for the year was $2.59 billion, a 6% decrease compared to $2.74 billion in 2023. This decrease was primarily due to a $267 million (4%) decline in taxable-equivalent net interest income, resulting from higher deposit and borrowing costs exceeding increased yields on earning assets. The provision for credit losses decreased by $35 million (5%) to $610 million, reflecting improved commercial real estate loan performance, partially offset by growth in other loan categories. Other income also decreased by $101 million (4%) to $2.43 billion, primarily due to the divestiture of the CIT business in 2023.

The decline in net interest income reflects a 25 basis-point narrowing of the net interest margin to 3.58% in 2024 from 3.83% in 2023. This was driven by increases in the cost of interest-bearing liabilities outpacing the rise in yields on earning assets. Average interest-bearing liabilities increased due to a shift in customer deposits toward higher-cost interest-bearing products and higher average borrowings. The Company's effective tax rate was 21.8% in 2024, compared with 24.3% in 2023. M&T repurchased 2,148,042 shares of its common stock in 2024 at an average cost of $184.37 per share, totaling $400 million (including tax).

In April 2022, M&T completed the acquisition of People’s United Financial, Inc., adding $8.4 billion to its common shareholders’ equity. The acquisition added $3.9 billion in goodwill and $261 million in core deposit and other intangible assets to M&T's balance sheet. In April 2023, M&T divested its CIT business, resulting in a pre-tax gain of $225 million. The Company also experienced expenses related to a special assessment imposed by the FDIC in 2023 and 2024, totaling $197 million and $34 million respectively. As of December 31, 2024, M&T employed 21,873 full-time and 481 part-time employees.

Average loans and leases totaled $134.7 billion in 2024, a 1% increase from 2023. Average commercial and industrial loans increased by 8%, while commercial real estate loans decreased by 12%. Average consumer loans increased by 10%, primarily due to growth in recreational finance loans. The investment securities portfolio averaged $30.8 billion in 2024, a 10% increase from 2023, reflecting increased liquidity deployment into fixed-rate securities. Average deposits increased by 1% to $163.4 billion, with average core deposits remaining flat due to a shift in customer deposits from noninterest-bearing to interest-bearing accounts.

M&T's outlook is subject to various risks and uncertainties, including economic conditions, interest rate movements, credit quality, regulatory changes, and competition. The company's forward-looking statements acknowledge these uncertainties and the potential for material differences between projected and actual results. The company's ability to return capital to shareholders and pay dividends will depend in part on the results of future supervisory stress tests conducted by the Federal Reserve.