M&T Bank Corporation (NYSE:MTB) announces fourth quarter 2024 results

, /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $681 million or $3.86 of diluted earnings per common share and full-year net income of $2.59 billion or $14.64 of diluted earnings per common share. (Dollars in millions, except per share data) 4Q24 3Q24 4Q23 2024 2023 Earnings Highlights Net interest income $ 1,728 $ 1,726 $ 1,722 $ 6,852 $ 7,115 Taxable-equivalent adjustment 12 13 13 50 54 Net interest income - taxable-equivalent 1,740 1,739 1,735 6,902 7,169 Provision for credit losses 140 120 225 610 645 Noninterest income 657 606 578 2,427 2,528 Noninterest expense 1,363 1,303 1,450 5,359 5,379 Net income 681 721 482 2,588 2,741 Net income available to common shareholders - diluted 644 674 457 2,449 2,636 Diluted earnings per common share 3.86 4.02 2.74 14.64 15.79 Return on average assets - annualized 1.28 % 1.37 % .92 % 1.23 % 1.33 % Return on average common shareholders' equity - annualized 9.75 10.26 7.41 9.54 11.06 Average Balance Sheet Total assets $ 211,853 $ 209,581 $ 208,752 $ 211,220 $ 205,397 Interest-bearing deposits at banks 23,602 25,491 30,153 27,244 26,202 Investment securities 33,679 31,023 27,490 30,755 27,932 Loans and leases 135,723 134,751 132,770 134,717 132,738 Deposits 164,639 161,505 164,713 163,423 162,094 Borrowings 14,228 15,428 13,057 15,523 13,054 Selected Ratios (Amounts expressed as a percent, except per share data) Net interest margin 3.58 % 3.62 % 3.61 % 3.58 % 3.83 % Efficiency ratio (1) 56.8 55.0 62.1 56.9 54.9 Net charge-offs to average total loans - annualized .47 .35 .44 .41 .33 Allowance for credit losses to total loans 1.61 1.62 1.59 1.61 1.59 Nonaccrual loans to total loans 1.25 1.42 1.62 1.25 1.62 Common equity Tier 1 ("CET1") capital ratio (2) 11.67 11.54 10.98 11.67 10.98 Common shareholders' equity per share $ 160.90 $ 159.38 $ 150.15 $ 160.90 $ 150.15 (1) A reconciliation of non-GAAP measures is included in the tables that accompany this release. (2) December 31, 2024 CET1 capital ratio is estimated. Financial Highlights M&T's capital position continues to strengthen as the CET1 capital ratio increased for the seventh consecutive quarter to an estimated 11.67% at December 31, 2024, representing a 13 basis-point increase from 11.54% at September 30, 2024. M&T repurchased shares of its common stock for a total cost of $200 million, including the share repurchase excise tax, in the fourth quarter of 2024. Net interest margin of 3.58% in the recent quarter narrowed from 3.62% in the third quarter of 2024 reflecting a lower contribution of interest-free funds, partially offset by a higher net interest spread. Average loan growth reflected higher average balances of commercial and industrial and consumer loans, partially offset by a reduction in the average balance of commercial real estate loans. Higher average deposits reflected growth in average savings and interest-checking deposits and noninterest-bearing deposits and declines in higher-cost time deposits. Lower average borrowings reflected a decline in average short-term borrowings from the Federal Home Loan Bank ("FHLB") of New York. An increase in other income in the fourth quarter of 2024 reflected a rise in commercial mortgage banking revenues, a distribution from an equity investment and higher net gains on bank investment securities. Higher other expense in that same period reflected a loss on the redemption of certain of M&T's trust preferred obligations and vacated facility write-downs, partially offset by a pension-related distribution benefit. The level of nonaccrual loans improved to 1.25% of loans outstanding at December 31, 2024 from 1.42% at September 30, 2024. Chief Financial Officer Commentary "I would like to close out 2024 by thanking our customers for their business and our fellow colleagues at M&T for making a difference in people's lives and the communities we serve. M&T enters 2025 with resolute focus on enhancing capabilities to better serve our customers by optimizing our business processes and building more scale and resiliency for continued growth." - Daryl N. Bible, M&T's Chief Financial Officer Contact: Investor Relations: Brian Klock 716.842.5138 Media Relations: Frank Lentini 929.651.0447 Non-GAAP Measures (1) Change4Q24 vs. Change 4Q24 vs. (Dollars in millions, except per share data) 4Q24 3Q24 3Q24 4Q23 4Q23 Net operating income $ 691 $ 731 -6 % $ 494 40 % Diluted net operating earnings per common share 3.92 4.08 -4 2.81 40 Annualized return on average tangible assets 1.35 % 1.45 % .98 % Annualized return on average tangible common equity 14.66 15.47 11.70 Efficiency ratio 56.8 55.0 62.1 Tangible equity per common share $ 109.36 $ 107.97 1 $ 98.54 11 ____________________ (1) A reconciliation of non-GAAP measures is included in the tables that accompany this release. M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature. For the year ended December 31, 2024, diluted net operating earnings per common share were $14.88, compared with $16.08 in 2023. Net operating income was $2.63 billion and $2.79 billion in 2024 and 2023, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in 2024 was 1.30% and 14.54%, respectively, compared with 1.42% and 17.60%, respectively, in 2023. Taxable-equivalent Net Interest Income Change 4Q24 vs. Change 4Q24 vs. (Dollars in millions) 4Q24 3Q24 3Q24 4Q23 4Q23 Average earning assets $ 193,106 $ 191,366 1 % $ 190,536 1 % Average interest-bearing liabilities 132,313 130,775 1 127,646 4 Net interest income - taxable-equivalent 1,740 1,739 — 1,735 — Yield on average earning assets 5.60 % 5.82 % 5.73 % Cost of interest-bearing liabilities 2.94 3.22 3.17 Net interest spread 2.66 2.60 2.56 Net interest margin 3.58 3.62 3.61 Taxable-equivalent net interest income increased $1 million from the third quarter of 2024. Average interest-bearing deposits at banks decreased $1.9 billion and the yield received on those deposits declined 63 basis points. Average investment securities increased $2.7 billion and the rates earned on those securities increased 18 basis points. Average loans and leases increased $972 million while the yield received on those loans and leases decreased 21 basis points. Average interest-bearing deposits increased $2.7 billion while the rates paid on such deposits declined 24 basis points. Average borrowings declined $1.2 billion and the rates paid on such borrowings declined 32 basis points. Taxable-equivalent net interest income increased $5 million compared with the year-earlier fourth quarter. Average interest-bearing deposits at banks decreased $6.6 billion and the yield received on those deposits declined 68 basis points. Average investment securities and average loans and leases increased $6.2 billion and $3.0 billion, respectively. The yield earned on average investment securities increased 75 basis points while the yield received on average loans and leases decreased 16 basis points. Average interest-bearing deposits rose $3.5 billion while the rates paid on those deposits decreased 26 basis points. Average borrowings increased $1.2 billion while the rates paid on such borrowings declined 8 basis points. Taxable-equivalent net interest income was $6.90 billion in 2024, a decrease of $267 million, or 4%, from $7.17 billion in 2023. Average earning assets increased $5.8 billion to $192.8 billion in 2024 from $187.0 billion in 2023, reflecting purchases of investment securities and loan growth. Yields earned on average investment securities and average loans and leases increased 55 and 24 basis points, respectively. Average interest-bearing liabilities increased $12.0 billion reflecting a rise in interest-bearing deposits of $9.5 billion and borrowings of $2.5 billion. Rates paid on average interest-bearing deposits and borrowings increased 57 and 37 basis points, respectively. Average Earning Assets Change 4Q24 vs. Change 4Q24 vs. (Dollars in millions) 4Q24 3Q24 3Q24 4Q23 4Q23 Interest-bearing deposits at banks $ 23,602 $ 25,491 -7 % $ 30,153 -22 % Trading account 102 101 1 123 -17 Investment securities 33,679 31,023 9 27,490 23 Loans and leases Commercial and industrial 60,704 59,779 2 55,420 10 Real estate - commercial 27,896 29,075 -4 33,455 -17 Real estate - consumer 23,088 22,994 — 23,339 -1 Consumer 24,035 22,903 5 20,556 17 Total loans and leases 135,723 134,751 1 132,770 2 Total earning assets $ 193,106 $ 191,366 1 $ 190,536 1 Average earning assets increased $1.7 billion, or 1%, from the third quarter of 2024. Average interest-bearing deposits at banks decreased $1.9 billion reflecting purchases of investment securities, maturities of short-term FHLB advances and increases in average loans, partially offset by increases in average deposits. Average investment securities increased $2.7 billion primarily due to purchases of fixed rate agency mortgage-backed and U.S. Treasury securities during the third and fourth quarters of 2024. Average loans and leases increased $972 million primarily reflective of higher average consumer loans of $1.1 billion and average commercial and industrial loans and leases of $925 million, reflecting lending activities to financial and insurance industry customers and motor vehicle and recreational finance dealers, partially offset by a decrease in average commercial real estate loans of $1.2 billion. Average earning assets increased $2.6 billion, or 1%, from the year-earlier fourth quarter. Average interest-bearing deposits at banks decreased $6.6 billion reflecting purchases of investment securities and loan growth, partially offset by higher average deposits and borrowings. Average investment securities increased $6.2 billion primarily reflecting purchases of fixed rate agency mortgage-backed and U.S. Treasury securities in 2024. Average loans and leases increased $3.0 billion predominantly due to higher average commercial and industrial loans and leases of $5.3 billion, reflecting growth spanning most industry types, and average consumer loans of $3.5 billion, reflecting higher average recreational finance and automobile loans, partially offset by a $5.6 billion decline in average commercial real estate loans. Average Interest-bearing Liabilities Change 4Q24 vs. Change 4Q24 vs. (Dollars in millions) 4Q24 3Q24 3Q24 4Q23 4Q23 Interest-bearing deposits Savings and interest-checking deposits $ 102,127 $ 98,295 4 % $ 93,365 9 % Time deposits 15,958 17,052 -6 21,224 -25 Total interest-bearing deposits 118,085 115,347 2 114,589 3 Short-term borrowings 2,563 4,034 -36 5,156 -50 Long-term borrowings 11,665 11,394 2 7,901 48 Total interest-bearing liabilities $ 132,313 $ 130,775 1 $ 127,646 4 Brokered savings and interest-checking deposits $ 9,690 $ 8,831 10 % $ 6,706 44 % Brokered time deposits 1,740 2,114 -18 7,253 -76 Total brokered deposits $ 11,430 $ 10,945 4 $ 13,959 -18 Average interest-bearing liabilities increased $1.5 billion, or 1%, from the third quarter of 2024. Average interest-bearing deposits rose $2.7 billion, reflecting an increase of $2.3 billion in average non-brokered deposits and $485 million in average brokered deposits. Average borrowings decreased $1.2 billion reflecting lower average short-term borrowings from the FHLB of New York in the recent quarter. Average interest-bearing liabilities increased $4.7 billion, or 4%, from the fourth quarter of 2023. Average interest-bearing deposits rose $3.5 billion reflecting a $6.0 billion increase in average non-brokered deposits, partially offset by a $2.5 billion decrease in average brokered deposits. Average borrowings increased $1.2 billion reflecting the issuances of senior notes and other long-term debt in 2024, partially offset by lower average short-term borrowings. Provision for Credit Losses/Asset Quality Change 4Q24 vs. Change 4Q24 vs. (Dollars in millions) 4Q24 3Q24 3Q24 4Q23 4Q23 At end of quarter Nonaccrual loans $ 1,690 $ 1,926 -12 % $ 2,166 -22 % Real estate and other foreclosed assets 35 37 -6 39 -9 Total nonperforming assets 1,725 1,963 -12 2,205 -22 Accruing loans past due 90 days or more (1) 338 288 17 339 — Nonaccrual loans as % of loans outstanding 1.25 % 1.42 % 1.62 % Allowance for credit losses $ 2,184 $ 2,204 -1 $ 2,129 3 Allowance for credit losses as % of loans outstanding 1.61 % 1.62 % 1.59 % For the period Provision for credit losses $ 140 $ 120 17 $ 225 -38 Net charge-offs 160 120 34 148 8 Net charge-offs as % of average loans (annualized) .47 % .35 % .44 % ____________________ (1) Predominantly government-guaranteed residential real estate loans. The provision for credit losses was $610 million in 2024 as compared with $645 million in 2023. That decrease reflects a decline in commercial real estate criticized loans, partially offset by growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. For 2024 and 2023, net charge-offs were $555 million and $441 million, respectively, representing .41% and .33%, respectively, of average loans outstanding. The increased level of net charge-offs in 2024 was predominantly comprised of higher commercial and industrial and consumer loan net charge-offs. Nonaccrual loans were $1.7 billion at December 31, 2024, $236 million lower than at September 30, 2024 and $476 million lower than at December 31, 2023. The lower level of nonaccrual loans at the recent quarter end as compared with September 30, 2024 and December 31, 2023 was predominantly attributable to a decrease in commercial real estate nonaccrual loans. Noninterest Income Change 4Q24 vs. Change 4Q24 vs. (Dollars in millions) 4Q24 3Q24 3Q24 4Q23 4Q23 Mortgage banking revenues $ 117 $ 109 8 % $ 112 4 % Service charges on deposit accounts 131 132 — 121 9 Trust income 175 170 3 159 11 Brokerage services income 30 32 -1 26 18 Trading account and other non-hedging derivative gains 10 13 -33 11 -20 Gain (loss) on bank investment securities 18 (2) — 4 407 Other revenues from operations 176 152 15 145 20 Total $ 657 $ 606 8 $ 578 14 Noninterest income in the fourth quarter of 2024 increased $51 million, or 8%, from 2024's third quarter. Mortgage banking revenues rose $8 million predominantly due to higher gains on sales of commercial mortgage loans. The gain on bank investment securities in the fourth quarter of 2024 reflects realized gains on the sales of Fannie Mae and Freddie Mac preferred securities. Other revenues from operations increased $24 million reflecting a $23 million distribution from M&T's investment in Bayview Lending Group LLC ("BLG") received in the recent quarter. Noninterest income rose $79 million, or 14%, as compared with the year-earlier fourth quarter. Service charges on deposit accounts increased $10 million reflecting a rise in commercial service charges. Trust income increased $16 million predominantly due to higher sales and fees from the Company's global capital markets business and improved market performance in the wealth management business. The higher gain on bank investment securities in the fourth quarter of 2024 as compared with the fourth quarter of 2023 reflects realized gains on the sales of Fannie Mae and Freddie Mac preferred securities in the recent quarter. Other revenue from operations increased $31 million reflecting a $23 million distribution from M&T's investment in BLG. Noninterest income declined $101 million, or 4%, to $2.43 billion in 2024 as compared with $2.53 billion in 2023, reflecting the sale of the Collective Investment Trust ("CIT") business in April 2023, partially offset by higher service charges on deposit accounts, non-CIT business related trust income, mortgage banking revenues, brokerage services income and distributions from M&T's investment in BLG. Noninterest Expense Change 4Q24 vs. Change 4Q24 vs. (Dollars in millions) 4Q24 3Q24 3Q24 4Q23 4Q23 Salaries and employee benefits $ 790 $ 775 2 % $ 724 9 % Equipment and net occupancy 133 125 7 134 -1 Outside data processing and software 125 123 1 114 9 Professional and other services 80 88 -7 99 -18 FDIC assessments 24 25 -6 228 -90 Advertising and marketing 30 27 11 26 17 Amortization of core deposit and other intangible assets 13 12 — 15 -15 Other costs of operations 168 128 31 110 52 Total $ 1,363 $ 1,303 5 $ 1,450 -6 Noninterest expense rose $60 million, or 5%, from the third quarter of 2024. Salaries and employee benefits expenses increased $15 million, inclusive of higher incentive compensation. Other costs of operations increased $40 million reflecting a $20 million loss on the redemption of certain of M&T's trust preferred obligations and a $27 million write-down of two vacated office facilities in the fourth quarter of 2024. Offsetting these charges was a $12 million benefit associated with the solicited election of certain participants in M&T's pension plan to accept a lump-sum distribution in the fourth quarter of 2024 in lieu of future retirement benefit payments. Other costs of operations in the third quarter of 2024 included costs incurred due to the Company's obligation under various agreements to share in losses stemming from certain litigation of Visa, Inc. Noninterest expense decreased $87 million, or 6%, from the fourth quarter of 2023. Salaries and employee benefits expenses increased $66 million reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower average employee staffing levels. Outside data processing and software rose $11 million reflecting higher software maintenance and data processing expenses. Professional and other services decreased $19 million largely due to lower consulting expenses. The decline in FDIC assessments reflects a $197 million special assessment recorded in the fourth quarter of 2023. Other costs of operations increased $58 million reflecting, in the fourth quarter of 2024, the redemption of certain of M&T's trust preferred obligations and vacated facility write-downs, partially offset by a benefit related to voluntary lump-sum distributions to certain M&T pension plan participants. For the year ended December 31, 2024, noninterest expense aggregated $5.36 billion, compared with $5.38 billion in 2023. The $20 million decrease in noninterest expenses reflected FDIC special assessments of $197 million in 2023 and $34 million in 2024, lower professional and other services expense, reflecting lower sub-advisory fees resulting from the sale of the CIT business in April 2023 and a decline in management consulting fees, partially offset by higher salaries and employee benefits expenses, reflecting annual merit and other increases and a rise in incentive compensation, and higher outside data processing and software costs. Income Taxes The Company's effective income tax rate was 22.8% in the fourth quarter of 2024, compared with 20.7% and 22.9% in the third quarter of 2024 and fourth quarter of 2023, respectively. Income tax expense in the third quarter of 2024 reflects a discrete tax benefit related to certain tax credits claimed on a prior year tax return. The Company's effective tax rates were 21.8% and 24.3% in 2024 and 2023, respectively. Income tax expense in 2024 as compared with 2023 reflects a discrete tax benefit claimed on a prior year tax return and a net discrete tax benefit related to the resolution of an income tax matter inherited from the acquisition of People's United. Capital 4Q24 3Q24 4Q23 CET1 11.67 % (1) 11.54 % 10.98 % Tier 1 capital 13.20 (1) 13.08 12.29 Total capital 14.72 (1) 14.65 13.99 Tangible capital – common 9.07 8.83 8.20 ________________________ (1) December 31, 2024 capital ratios are estimated. M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $226 million and $35 million, respectively, for the quarter ended December 31, 2024. The CET1 capital ratio for M&T was estimated at 11.67% as of December 31, 2024. M&T's total risk-weighted assets at December 31, 2024 are estimated to be $156.7 billion. M&T repurchased 957,988 shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $206.70 resulting in a total cost, including the share repurchase excise tax, of $200 million, compared with 1,190,054 shares at an average cost per share of $166.40 and a total cost, including the share repurchase excise tax, of $200 million in third quarter of 2024. No share repurchases occurred in the fourth quarter of 2023. Conference Call Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter financial results today at 8:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ424. The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday January 23, 2025 by calling (800) 727-6189, or (402) 220-2671 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations. About M&T M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com. Forward-Looking Statements This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions. Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted. While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events and developments in the financial services industry, including industry conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in M&T's credit ratings; domestic or international political developments and other geopolitical events, including international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements. These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, and other factors. M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2023, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements. Financial Highlights Three months ended Year ended December 31, December 31, (Dollars in millions, except per share, shares in thousands) 2024 2023 Change 2024 2023 Change Performance Net income $ 681 $ 482 41 % $ 2,588 $ 2,741 -6 % Net income available to common shareholders 644 457 41 2,449 2,636 -7 Per common share: Basic earnings 3.88 2.75 41 14.71 15.85 -7 Diluted earnings 3.86 2.74 41 14.64 15.79 -7 Cash dividends 1.35 1.30 4 5.35 5.20 3 Common shares outstanding: Average - diluted (1) 166,969 166,731 — 167,319 167,002 — Period end (2) 165,526 166,149 — 165,526 166,149 — Return on (annualized): Average total assets 1.28 % .92 % 1.23 % 1.33 % Average common shareholders' equity 9.75 7.41 9.54 11.06 Taxable-equivalent net interest income $ 1,740 $ 1,735 — $ 6,902 $ 7,169 -4 Yield on average earning assets 5.60 % 5.73 % 5.74 % 5.50 % Cost of interest-bearing liabilities 2.94 3.17 3.17 2.60 Net interest spread 2.66 2.56 2.57 2.90 Contribution of interest-free funds .92 1.05 1.01 .93 Net interest margin 3.58 3.61 3.58 3.83 Net charge-offs to average total net loans (annualized) .47 .44 .41 .33 Net operating results (3) Net operating income $ 691 $ 494 40 $ 2,630 $ 2,789 -6 Diluted net operating earnings per common share 3.92 2.81 40 14.88 16.08 -7 Return on (annualized): Average tangible assets 1.35 % .98 % 1.30 % 1.42 % Average tangible common equity 14.66 11.70 14.54 17.60 Efficiency ratio 56.8 62.1 56.9 54.9 At December 31, Loan quality 2024 2023 Change Nonaccrual loans $ 1,690 $ 2,166 -22 % Real estate and other foreclosed assets 35 39 -9 Total nonperforming assets $ 1,725 $ 2,205 -22 Accruing loans past due 90 days or more (4) $ 338 $ 339 — Government guaranteed loans included in totals above: Nonaccrual loans $ 69 $ 53 31 Accruing loans past due 90 days or more 318 298 7 Nonaccrual loans to total loans 1.25 % 1.62 % Allowance for credit losses to total loans 1.61 1.59 Additional information Period end common stock price $ 188.01 $ 137.08 37 Domestic banking offices 955 961 -1 Full time equivalent employees 22,101 21,980 1 ____________________ (1) Includes common stock equivalents. (2) Includes common stock issuable under deferred compensation plans. (3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein. (4) Predominantly residential real estate loans. Financial Highlights, Five Quarter Trend Three months ended December 31, September 30, June 30, March 31, December 31, (Dollars in millions, except per share, shares in thousands) 2024 2024 2024 2024 2023 Performance Net income $ 681 $ 721 $ 655 $ 531 $ 482 Net income available to common shareholders 644 674 626 505 457 Per common share: Basic earnings 3.88 4.04 3.75 3.04 2.75 Diluted earnings 3.86 4.02 3.73 3.02 2.74 Cash dividends 1.35 1.35 1.35 1.30 1.30 Common shares outstanding: Average - diluted (1) 166,969 167,567 167,659 167,084 166,731 Period end (2) 165,526 166,157 167,225 166,724 166,149 Return on (annualized): Average total assets 1.28 % 1.37 % 1.24 % 1.01 % .92 % Average common shareholders' equity 9.75 10.26 9.95 8.14 7.41 Taxable-equivalent net interest income $ 1,740 $ 1,739 $ 1,731 $ 1,692 $ 1,735 Yield on average earning assets 5.60 % 5.82 % 5.82 % 5.74 % 5.73 % Cost of interest-bearing liabilities 2.94 3.22 3.26 3.26 3.17 Net interest spread 2.66 2.60 2.56 2.48 2.56 Contribution of interest-free funds .92 1.02 1.03 1.04 1.05 Net interest margin 3.58 3.62 3.59 3.52 3.61 Net charge-offs to average total net loans (annualized) .47 .35 .41 .42 .44 Net operating results (3) Net operating income $ 691 $ 731 $ 665 $ 543 $ 494 Diluted net operating earnings per common share 3.92 4.08 3.79 3.09 2.81 Return on (annualized): Average tangible assets 1.35 % 1.45 % 1.31 % 1.08 % .98 % Average tangible common equity 14.66 15.47 15.27 12.67 11.70 Efficiency ratio 56.8 55.0 55.3 60.8 62.1 December 31, September 30, June 30, March 31, December 31, Loan quality 2024 2024 2024 2024 2023 Nonaccrual loans $ 1,690 $ 1,926 $ 2,024 $ 2,302 $ 2,166 Real estate and other foreclosed assets 35 37 33 38 39 Total nonperforming assets $ 1,725 $ 1,963 $ 2,057 $ 2,340 $ 2,205 Accruing loans past due 90 days or more (4) $ 338 $ 288 $ 233 $ 297 $ 339 Government guaranteed loans included in totals above: Nonaccrual loans $ 69 $ 69 $ 64 $ 62 $ 53 Accruing loans past due 90 days or more 318 269 215 244 298 Nonaccrual loans to total loans 1.25 % 1.42 % 1.50 % 1.71 % 1.62 % Allowance for credit losses to total loans 1.61 1.62 1.63 1.62 1.59 Additional information Period end common stock price $ 188.01 $ 178.12 $ 151.36 $ 145.44 $ 137.08 Domestic banking offices 955 957 957 958 961 Full time equivalent employees 22,101 21,986 22,110 21,927 21,980 ____________________ (1) Includes common stock equivalents. (2) Includes common stock issuable under deferred compensation plans. (3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein. (4) Predominantly residential real estate loans. Condensed Consolidated Statement of Income Three months ended Year ended December 31, December 31, (Dollars in millions) 2024 2023 Change 2024 2023 Change Interest income $ 2,707 $ 2,740 -1 % $ 11,026 $ 10,224 8 % Interest expense 979 1,018 -4 4,174 3,109 34 Net interest income 1,728 1,722 — 6,852 7,115 -4 Provision for credit losses 140 225 -38 610 645 -5 Net interest income after provision for credit losses 1,588 1,497 6 6,242 6,470 -4 Other income Mortgage banking revenues 117 112 4 436 409 7 Service charges on deposit accounts 131 121 9 514 475 8 Trust income 175 159 11 675 680 -1 Brokerage services income 30 26 18 121 102 19 Trading account and other non-hedging derivative gains 10 11 -20 39 49 -21 Gain (loss) on bank investment securities 18 4 407 10 4 158 Other revenues from operations 176 145 20 632 809 -22 Total other income 657 578 14 2,427 2,528 -4 Other expense Salaries and employee benefits 790 724 9 3,162 2,997 6 Equipment and net occupancy 133 134 -1 512 520 -2 Outside data processing and software 125 114 9 492 437 13 Professional and other services 80 99 -18 344 413 -17 FDIC assessments 24 228 -90 146 315 -54 Advertising and marketing 30 26 17 104 108 -3 Amortization of core deposit and other intangible assets 13 15 -15 53 62 -15 Other costs of operations 168 110 52 546 527 3 Total other expense 1,363 1,450 -6 5,359 5,379 — Income before taxes 882 625 41 3,310 3,619 -9 Income taxes 201 143 41 722 878 -18 Net income $ 681 $ 482 41 % $ 2,588 $ 2,741 -6 % Condensed Consolidated Statement of Income, Five Quarter Trend Three months ended December 31, September 30, June 30, March 31, December 31, (Dollars in millions) 2024 2024 2024 2024 2023 Interest income $ 2,707 $ 2,785 $ 2,789 $ 2,745 $ 2,740 Interest expense 979 1,059 1,071 1,065 1,018 Net interest income 1,728 1,726 1,718 1,680 1,722 Provision for credit losses 140 120 150 200 225 Net interest income after provision for credit losses 1,588 1,606 1,568 1,480 1,497 Other income Mortgage banking revenues 117 109 106 104 112 Service charges on deposit accounts 131 132 127 124 121 Trust income 175 170 170 160 159 Brokerage services income 30 32 30 29 26 Trading account and other non-hedging derivative gains 10 13 7 9 11 Gain (loss) on bank investment securities 18 (2) (8) 2 4 Other revenues from operations 176 152 152 152 145 Total other income 657 606 584 580 578 Other expense Salaries and employee benefits 790 775 764 833 724 Equipment and net occupancy 133 125 125 129 134 Outside data processing and software 125 123 124 120 114 Professional and other services 80 88 91 85 99 FDIC assessments 24 25 37 60 228 Advertising and marketing 30 27 27 20 26 Amortization of core deposit and other intangible assets 13 12 13 15 15 Other costs of operations 168 128 116 134 110 Total other expense 1,363 1,303 1,297 1,396 1,450 Income before taxes 882 909 855 664 625 Income taxes 201 188 200 133 143 Net income $ 681 $ 721 $ 655 $ 531 $ 482 Condensed Consolidated Balance Sheet December 31, (Dollars in millions) 2024 2023 Change ASSETS Cash and due from banks $ 1,909 $ 1,731 10 % Interest-bearing deposits at banks 18,873 28,069 -33 Trading account 101 106 -4 Investment securities 34,051 26,897 27 Loans and leases: Commercial and industrial 61,481 57,010 8 Real estate - commercial 26,764 33,003 -19 Real estate - consumer 23,166 23,264 — Consumer 24,170 20,791 16 Total loans and leases 135,581 134,068 1 Less: allowance for credit losses 2,184 2,129 3 Net loans and leases 133,397 131,939 1 Goodwill 8,465 8,465 — Core deposit and other intangible assets 94 147 -36 Other assets 11,215 10,910 3 Total assets $ 208,105 $ 208,264 — % LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $ 46,020 $ 49,294 -7 % Interest-bearing deposits 115,075 113,980 1 Total deposits 161,095 163,274 -1 Short-term borrowings 1,060 5,316 -80 Accrued interest and other liabilities 4,318 4,516 -4 Long-term borrowings 12,605 8,201 54 Total liabilities 179,078 181,307 -1 Shareholders' equity: Preferred 2,394 2,011 19 Common 26,633 24,946 7 Total shareholders' equity 29,027 26,957 8 Total liabilities and shareholders' equity $ 208,105 $ 208,264 — % Condensed Consolidated Balance Sheet, Five Quarter Trend December 31, September 30, June 30, March 31, December 31, (Dollars in millions) 2024 2024 2024 2024 2023 ASSETS Cash and due from banks $ 1,909 $ 2,216 $ 1,778 $ 1,695 $ 1,731 Interest-bearing deposits at banks 18,873 24,417 24,792 32,144 28,069 Trading account 101 102 99 99 106 Investment securities 34,051 32,327 29,894 28,496 26,897 Loans and leases Commercial and industrial 61,481 61,012 60,027 57,897 57,010 Real estate - commercial 26,764 28,683 29,532 32,416 33,003 Real estate - consumer 23,166 23,019 23,003 23,076 23,264 Consumer 24,170 23,206 22,440 21,584 20,791 Total loans and leases 135,581 135,920 135,002 134,973 134,068 Less: allowance for credit losses 2,184 2,204 2,204 2,191 2,129 Net loans and leases 133,397 133,716 132,798 132,782 131,939 Goodwill 8,465 8,465 8,465 8,465 8,465 Core deposit and other intangible assets 94 107 119 132 147 Other assets 11,215 10,435 10,910 11,324 10,910 Total assets $ 208,105 $ 211,785 $ 208,855 $ 215,137 $ 208,264 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $ 46,020 $ 47,344 $ 47,729 $ 50,578 $ 49,294 Interest-bearing deposits 115,075 117,210 112,181 116,618 113,980 Total deposits 161,095 164,554 159,910 167,196 163,274 Short-term borrowings 1,060 2,605 4,764 4,795 5,316 Accrued interest and other liabilities 4,318 4,167 4,438 4,527 4,516 Long-term borrowings 12,605 11,583 11,319 11,450 8,201 Total liabilities 179,078 182,909 180,431 187,968 181,307 Shareholders' equity: Preferred 2,394 2,394 2,744 2,011 2,011 Common 26,633 26,482 25,680 25,158 24,946 Total shareholders' equity 29,027 28,876 28,424 27,169 26,957 Total liabilities and shareholders' equity $ 208,105 $ 211,785 $ 208,855 $ 215,137 $ 208,264 Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates Three months ended Change in balance Year ended December 31, September 30, December 31, December 31, 2024 from December 31, Change (Dollars in millions) 2024 2024 2023 September 30, December 31, 2024 2023 in Balance Rate Balance Rate Balance Rate 2024 2023 Balance Rate Balance Rate balance ASSETS Interest-bearing deposits at banks $ 23,602 4.80 % $ 25,491 5.43 % $ 30,153 5.48 % -7 % -22 % $ 27,244 5.33 % $ 26,202 5.19 % 4 % Trading account 102 3.37 101 3.40 123 3.80 1 -17 102 3.42 133 3.20 -24 Investment securities 33,679 3.88 31,023 3.70 27,490 3.13 9 23 30,755 3.64 27,932 3.09 10 Loans and leases: Commercial and industrial 60,704 6.56 59,779 7.01 55,420 7.01 2 10 58,871 6.90 54,271 6.71 8 Real estate - commercial 27,896 6.25 29,075 6.27 33,455 6.54 -4 -17 30,271 6.32 34,473 6.33 -12 Real estate - consumer 23,088 4.45 22,994 4.41 23,339 4.25 — -1 23,056 4.36 23,614 4.11 -2 Consumer 24,035 6.65 22,903 6.72 20,556 6.42 5 17 22,519 6.63 20,380 6.03 10 Total loans and leases 135,723 6.17 134,751 6.38 132,770 6.33 1 2 134,717 6.31 132,738 6.07 1 Total earning assets 193,106 5.60 191,366 5.82 190,536 5.73 1 1 192,818 5.74 187,005 5.50 3 Goodwill 8,465 8,465 8,465 — — 8,465 8,473 — Core deposit and other intangible assets 100 113 154 -11 -35 120 177 -32 Other assets 10,182 9,637 9,597 6 6 9,817 9,742 1 Total assets $ 211,853 $ 209,581 $ 208,752 1 % 1 % $ 211,220 $ 205,397 3 % LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits Savings and interest-checking deposits $ 102,127 2.44 % $ 98,295 2.65 % $ 93,365 2.58 % 4 % 9 % $ 97,824 2.57 % $ 89,489 1.95 % 9 % Time deposits 15,958 3.95 17,052 4.19 21,224 4.30 -6 -25 18,339 4.26 17,131 3.92 7 Total interest-bearing deposits 118,085 2.64 115,347 2.88 114,589 2.90 2 3 116,163 2.84 106,620 2.27 9 Short-term borrowings 2,563 4.93 4,034 5.60 5,156 5.27 -36 -50 4,440 5.45 5,758 5.07 -23 Long-term borrowings 11,665 5.57 11,394 5.83 7,901 5.70 2 48 11,083 5.76 7,296 5.49 52 Total interest-bearing liabilities 132,313 2.94 130,775 3.22 127,646 3.17 1 4 131,686 3.17 119,674 2.60 10 Noninterest-bearing deposits 46,554 46,158 50,124 1 -7 47,260 55,474 -15 Other liabilities 4,279 3,923 4,482 9 -5 4,222 4,350 -3 Total liabilities 183,146 180,856 182,252 1 — 183,168 179,498 2 Shareholders' equity 28,707 28,725 26,500 — 8 28,052 25,899 8 Total liabilities and shareholders' equity $ 211,853 $ 209,581 $ 208,752 1 % 1 % $ 211,220 $ 205,397 3 % Net interest spread 2.66 2.60 2.56 2.57 2.90 Contribution of interest-free funds .92 1.02 1.05 1.01 .93 Net interest margin 3.58 % 3.62 % 3.61 % 3.58 % 3.83 % Reconciliation of Quarterly GAAP to Non-GAAP Measures Three months ended Year ended December 31, December 31, 2024 2023 2024 2023 (Dollars in millions, except per share) Income statement data Net income Net income $ 681 $ 482 $ 2,588 $ 2,741 Amortization of core deposit and other intangible assets (1) 10 12 42 48 Net operating income $ 691 $ 494 $ 2,630 $ 2,789 Earnings per common share Diluted earnings per common share $ 3.86 $ 2.74 $ 14.64 $ 15.79 Amortization of core deposit and other intangible assets (1) .06 .07 .24 .29 Diluted net operating earnings per common share $ 3.92 $ 2.81 $ 14.88 $ 16.08 Other expense Other expense $ 1,363 $ 1,450 $ 5,359 $ 5,379 Amortization of core deposit and other intangible assets (13) (15) (53) (62) Noninterest operating expense $ 1,350 $ 1,435 $ 5,306 $ 5,317 Efficiency ratio Noninterest operating expense (numerator) $ 1,350 $ 1,435 $ 5,306 $ 5,317 Taxable-equivalent net interest income $ 1,740 $ 1,735 $ 6,902 $ 7,169 Other income 657 578 2,427 2,528 Less: Gain (loss) on bank investment securities 18 4 10 4 Denominator $ 2,379 $ 2,309 $ 9,319 $ 9,693 Efficiency ratio 56.8 % 62.1 % 56.9 % 54.9 % Balance sheet data Average assets Average assets $ 211,853 $ 208,752 $ 211,220 $ 205,397 Goodwill (8,465) (8,465) (8,465) (8,473) Core deposit and other intangible assets (100) (154) (120) (177) Deferred taxes 29 39 33 44 Average tangible assets $ 203,317 $ 200,172 $ 202,668 $ 196,791 Average common equity Average total equity $ 28,707 $ 26,500 $ 28,052 $ 25,899 Preferred stock (2,394) (2,011) (2,344) (2,011) Average common equity 26,313 24,489 25,708 23,888 Goodwill (8,465) (8,465) (8,465) (8,473) Core deposit and other intangible assets (100) (154) (120) (177) Deferred taxes 29 39 33 44 Average tangible common equity $ 17,777 $ 15,909 $ 17,156 $ 15,282 At end of quarter Total assets Total assets $ 208,105 $ 208,264 Goodwill (8,465) (8,465) Core deposit and other intangible assets (94) (147) Deferred taxes 28 37 Total tangible assets $ 199,574 $ 199,689 Total common equity Total equity $ 29,027 $ 26,957 Preferred stock (2,394) (2,011) Common equity 26,633 24,946 Goodwill (8,465) (8,465) Core deposit and other intangible assets (94) (147) Deferred taxes 28 37 Total tangible common equity $ 18,102 $ 16,371 ____________________ (1) After any related tax effect. Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend Three months ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 (Dollars in millions, except per share) Income statement data Net income Net income $ 681 $ 721 $ 655 $ 531 $ 482 Amortization of core deposit and other intangible assets (1) 10 10 10 12 12 Net operating income $ 691 $ 731 $ 665 $ 543 $ 494 Earnings per common share Diluted earnings per common share $ 3.86 $ 4.02 $ 3.73 $ 3.02 $ 2.74 Amortization of core deposit and other intangible assets (1) .06 .06 .06 .07 .07 Diluted net operating earnings per common share $ 3.92 $ 4.08 $ 3.79 $ 3.09 $ 2.81 Other expense Other expense $ 1,363 $ 1,303 $ 1,297 $ 1,396 $ 1,450 Amortization of core deposit and other intangible assets (13) (12) (13) (15) (15) Noninterest operating expense $ 1,350 $ 1,291 $ 1,284 $ 1,381 $ 1,435 Efficiency ratio Noninterest operating expense (numerator) $ 1,350 $ 1,291 $ 1,284 $ 1,381 $ 1,435 Taxable-equivalent net interest income $ 1,740 $ 1,739 $ 1,731 $ 1,692 $ 1,735 Other income 657 606 584 580 578 Less: Gain (loss) on bank investment securities 18 (2) (8) 2 4 Denominator $ 2,379 $ 2,347 $ 2,323 $ 2,270 $ 2,309 Efficiency ratio 56.8 % 55.0 % 55.3 % 60.8 % 62.1 % Balance sheet data Average assets Average assets $ 211,853 $ 209,581 $ 211,981 $ 211,478 $ 208,752 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (100) (113) (126) (140) (154) Deferred taxes 29 28 30 33 39 Average tangible assets $ 203,317 $ 201,031 $ 203,420 $ 202,906 $ 200,172 Average common equity Average total equity $ 28,707 $ 28,725 $ 27,745 $ 27,019 $ 26,500 Preferred stock (2,394) (2,565) (2,405) (2,011) (2,011) Average common equity 26,313 26,160 25,340 25,008 24,489 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (100) (113) (126) (140) (154) Deferred taxes 29 28 30 33 39 Average tangible common equity $ 17,777 $ 17,610 $ 16,779 $ 16,436 $ 15,909 At end of quarter Total assets Total assets $ 208,105 $ 211,785 $ 208,855 $ 215,137 $ 208,264 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (94) (107) (119) (132) (147) Deferred taxes 28 30 31 34 37 Total tangible assets $ 199,574 $ 203,243 $ 200,302 $ 206,574 $ 199,689 Total common equity Total equity $ 29,027 $ 28,876 $ 28,424 $ 27,169 $ 26,957 Preferred stock (2,394) (2,394) (2,744) (2,011) (2,011) Common equity 26,633 26,482 25,680 25,158 24,946 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (94) (107) (119) (132) (147) Deferred taxes 28 30 31 34 37 Total tangible common equity $ 18,102 $ 17,940 $ 17,127 $ 16,595 $ 16,371 ____________________ (1) After any related tax effect. 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M&T Bank Corporation (NYSE:MTB) announces fourth quarter 2024 results

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