M&T BANK CORP
For the period ended Jun 30, 2024. Filed Aug 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 5, 2024
MTB$217.75-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-03.
0000950170-24-052773
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-05.
0001628280-24-034695
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 304 previous paragraphs and 291 current paragraphs.
110 unchanged; 123 reworded; 48 added; 63 removed; 8 previous and 10 current paragraphs rearranged.
Tables are not compared: 40 previous and 42 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
•Net interest income on a taxable-equivalent basis increased $39 million reflecting an expansion of the net interest margin by 7 basis points as the cost of interest-bearing liabilities remained flat while yields on earning assets improved from the immediately preceding quarter.
Current report
•Other expense declined $99 million reflecting seasonal salaries and employee benefits expenses in the first quarter of 2024, partially offset by the full-quarter impact of annual merit increases awarded in the first quarter of 2024. Lower FDIC special assessment expense and other costs of operations also contributed to the decline.
Current report
•Provision for credit losses increased $80 million reflecting the impact of higher interest rates on the performance of commercial borrowers and loan growth.
Current report
•Other income in the first six months of 2024 declined $226 million as compared with the first six months of 2023 reflecting the gain on sale of the CIT business in April 2023.
Current report
•Other expense in the first half of 2024, excluding $34 million of FDIC special assessment expense, rose slightly from 2023. Higher salaries and employee benefits expenses and a rise in outside data processing and software costs were partially offset by lower professional and other services expenses.
Current report
On May 13, 2024, M&T issued 75,000 shares of Perpetual Non-Cumulative Preferred Stock, Series J, with a liquidation preference of $10,000 per share. On July 10, 2024, M&T announced its intention to redeem, on August 15, 2024, all 350,000 outstanding shares of its Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E. Additional information about the issued and outstanding preferred stock of M&T is included in note 6 of Notes to Financial Statements.
Current report
(a)At the period end.
Current report
(a)Includes nonaccrual loans.
Current report
(a)Includes nonaccrual loans.
Current report
Expressed on a taxable-equivalent basis net interest income was $1.73 billion in the second quarter of 2024, compared with $1.69 billion in the first quarter of 2024. The increase in taxable-equivalent net interest income in the recent quarter reflects a 7 basis-point expansion of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, from the first quarter of 2024 to 3.59% in the recent quarter. That expansion largely reflects the deployment of cash to new loan originations and purchases of investment securities that generated higher yields than earning assets that have matured. The cost of interest-bearing liabilities has remained flat as compared with the first quarter of 2024, reflecting a shift in deposit mix from higher cost brokered deposits to lower cost customer savings and interest-checking deposits. That benefit was partially offset by higher balances of average borrowings. The Company continues to adjust its funding sources to include borrowings and brokered deposits in consideration of the competitive landscape for customer deposits. Average borrowings
Current report
48 - collectively rose $451 million or 3%, while average brokered deposits declined $1.2 billion or 9% when comparing the recent quarter with the first quarter of 2024.
Current report
Taxable-equivalent net interest income in the first six months of 2024 was $3.42 billion, down from $3.64 billion in the corresponding 2023 period. The decrease reflected a 41 basis-point narrowing of the net interest margin to 3.56% in the 2024 period from 3.97% in the year-earlier period. An increase in average interest-bearing liabilities in the first six months of 2024 as compared with the first six months of 2023 reflected a shift in customer deposits toward higher cost interest-bearing products, including time deposits, and higher average brokered deposits and borrowings. Average interest-bearing deposits rose $14.1 billion or 14% in the first six months of 2024 as compared with the first six months of 2023 and included an increase in average brokered deposits of $3.3 billion or 35%. Average borrowings rose $2.9 billion or 22% when comparing the first six months of 2024 to the same period in 2023. The increase in average earning assets in the first six months of 2024 reflects higher average deposits at the FRB of New York, loan growth and purchases of investment securities.
Current report
•Average commercial and industrial loans and leases were $58.2 billion in the recent quarter, up $1.3 billion from the first quarter of 2024, reflecting higher levels of lending across most industry types.
Current report
•Commercial real estate loans averaged $31.5 billion in the second quarter of 2024, down $1.2 billion as compared with the first quarter of 2024, reflecting decreases of $676 million and $562 million of average permanent and construction commercial real estate loans, respectively.
Current report
In the first six months of 2024, average loans and leases totaled $134.2 billion, up 1%, from $132.8 billion in the corresponding 2023 period.
Current report
Average deposits increased $3.3 billion in the first six months of 2024 from $160.5 billion in the first half of 2023.
Current report
June 30, 2023 and the rates paid on those deposits averaged 4.77% and 3.72%, respectively. Average brokered time deposits decreased $1.2 billion to $4.5 billion in the first half of 2024 from $5.7 billion in the six months ended June 30, 2023 and the rates paid on those deposits averaged 5.01% and 4.90%, respectively. The rate paid on total non-brokered interest-bearing deposits was 2.67% in the first six months of 2024, compared with 1.48% in the similar 2023 period. That increase in the rate on non-brokered interest-bearing deposits reflected repricing on certain deposit products as customers sought higher yields in an elevated interest rate environment.
Current report
(a)Predominantly government-guaranteed residential real estate loans.
Current report
The $278 million decline in nonaccrual loans from March 31, 2024 to June 30, 2024 was mainly attributable to lower commercial real estate and commercial and industrial nonaccrual loans of $213 million and $59 million, respectively. As compared with December 31, 2023, the $142 million decline in nonaccrual loans at June 30, 2024 reflects a $257 million reduction in commercial real estate nonaccrual loans, partially offset by a $135 million increase in commercial and industrial nonaccrual loans. At June 30, 2024, approximately 57% of nonaccrual commercial and industrial and commercial real estate loans were considered current with respect to their payment status.
Current report
Trust income was $170 million in the recent quarter up $10 million from $160 million in the first quarter of 2024.
Current report
•Wealth Management income increased $4 million reflecting seasonal tax service fees in the recent quarter.
Current report
For the six months ended June 30, 2024 trust income totaled $330 million, compared with $366 million in the similar 2023 period.
Current report
•The higher level of trust income from the Wealth Management business reflected higher levels of assets under management and improved market performance.
Current report
Brokerage services income
Current report
Brokerage services income, which includes revenues from the sale of mutual funds and annuities, securities brokerage fees and select investment products of LPL Financial, an independent financial services broker, increased $10 million in the first six months of 2024 as compared with the first six months of 2023 reflecting higher annuities sales.
Current report
Other revenues from operations in 2024's second quarter as compared with the initial 2024 quarter reflect increases in merchant discount and credit card fees, letter of credit and other credit-related fees and distributions from renewable energy and certain other tax credit investments. In the first quarter of 2024, other revenues from operations included a $25 million distribution from BLG.
Current report
Other revenues from operations in the first six months of 2024 declined $218 million from the first half of 2023 reflecting a $225 million gain on the sale of the CIT business in April 2023, a $12 million decline in operating lease income reflecting higher gains on sales of leased equipment recognized in the 2023 period, partially offset by a $6 million increase in tax-exempt income earned from bank owned life insurance and a $5 million increase in distributions received from M&T's investment in BLG.
Current report
•Salaries and employee benefits expenses decreased $69 million in the recent quarter as compared with the first quarter of 2024 reflecting seasonally higher stock-based compensation, payroll related-taxes and other employee benefits expense in the first quarter of 2024, partially offset by the full-quarter impact of annual merit increases awarded in the first quarter of 2024.
Current report
•FDIC assessments reflect estimated special assessment expense of $5 million and $29 million in the second and first quarter of 2024, respectively, related to the FDIC's updated loss estimates associated with certain failed banks.
Current report
•Nonpersonnel expenses decreased $10 million to $1.10 billion in the six months ended June 30, 2024 as compared with $1.11 billion in the first half of 2023. A decline in professional and other services expenses of $49 million, predominantly from lower sub-advisory fees following the sale of the CIT business in April 2023 and check fraud and other losses, were partially offset by higher FDIC assessments expense of $39 million. Estimated FDIC special assessment expense of $34 million was recognized in the first half of 2024.
Current report
(a)Common stock dividends were $447 million and $436 million and preferred stock dividends were $52 million and $50 million for the six months ended June 30, 2024 and 2023, respectively.
Current report
On May 13, 2024, M&T issued 75,000 shares of Perpetual 7.5% Non-Cumulative Preferred Stock, Series J, with a liquidation preference of $10,000 per share. On July 10, 2024, M&T announced its intention to redeem all 350,000 outstanding shares of its Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E, on August 15, 2024. Additional information about issued and outstanding preferred stock of M&T is included in note 6 of Notes to Financial Statements.
Current report
(b)Refer to note 11 of Notes to Financial Statements.
Current report
(c)Refer to note 8 of Notes to Financial Statements.
Current report
74 - requirements, including funding of future loan growth and other balance sheet management activities, as well as market and economic conditions.
Current report
•Net interest income was largely unchanged reflecting a widening of the net interest margin on loans and leases of 7 basis points, partially offset by a 7 basis-point narrowing of the net interest margin on deposits.
Current report
•Noninterest income increased $13 million reflecting higher credit-related fees of $6 million and a rise in commercial mortgage banking revenues of $4 million.
Current report
•Noninterest expenses increased $14 million reflecting a rise in personnel-related costs of $8 million, resulting from the full-quarter impact of annual merit increases awarded in the first quarter of 2024 and higher incentive compensation.
Current report
•Net interest income increased $19 million reflecting a 7 basis-point widening of the net interest margin on deposits and an increase in average outstanding deposit balances of $657 million.
Current report
•Noninterest income increased $7 million reflecting higher service charges on deposit accounts and merchant discount and credit card fees.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (63)
Previous report
(a)
Previous report
Other expenses declined $54 million reflecting a $29 million FDIC assessment in the recent quarter as compared with $197 million in the fourth quarter of 2023, partially offset by seasonally higher salaries and employee benefits expenses.
Previous report
Taxable-equivalent net interest income in the first quarter of 2024 declined $140 million, or 8%, when compared with the first quarter of 2023, reflecting a narrowing of the net interest margin by 52 basis points.
Previous report
Noninterest income in the first quarter of 2024 declined $7 million as compared with 2023's initial quarter. Lower trust income reflecting the CIT divestiture in April 2023 was partially offset by higher mortgage banking revenues and an increase in service charges on commercial deposit accounts.
Previous report
Noninterest expenses, excluding the increased FDIC special assessment, rose modestly from 2023's initial quarter. Higher levels of salaries and employee benefits expense, outside data processing and software expense and other costs of operations were partially offset by lower professional and other services, reflecting the CIT divestiture, and lower advertising and marketing costs.
Previous report
(a)
Previous report
At the period end.
Previous report
(a)
Previous report
Includes nonaccrual loans.
Previous report
(b)
Previous report
(a)
Previous report
Includes nonaccrual loans.
Previous report
(b)
Previous report
Expressed on a taxable-equivalent basis net interest income was $1.69 billion in the first quarter of 2024, compared with $1.74 billion and $1.83 billion, respectively, in the fourth and first quarters of 2023. The decrease in net interest income in the recent quarter reflects a 9 basis point reduction from the fourth quarter of 2023 and a 52 basis point reduction from the year-earlier quarter of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, to 3.52% in the recent quarter. The lower net interest margin in the first quarter of 2024 compared with the fourth and first quarters of 2023 predominantly reflects a comparatively higher interest rate environment, which has resulted in increases in rates paid on interest-bearing deposit products and borrowings outpacing increases in yields on the Company's interest-earning assets. Although the FOMC has not raised its federal funds target rate since July 2023, interest rates have remained elevated and the Company has experienced increased competition for customer deposits in the marketplace and a mix shift in those deposits toward higher cost interest-bearing products, including time deposits. The Company has also altered its use of other funding sources including borrowings and placement of brokered deposits. Average short-term and long-term borrowings in the recent quarter collectively rose by $2.9 billion, or 23%, while average brokered deposits decreased $736 million, or 5%, from the fourth quarter of 2023. As compared with the first quarter of 2023, average short-term and long-term borrowings collectively rose by $4.5 billion, or 39%, and average brokered deposits increased $5.2 billion, or 64% in the recent quarter.
Previous report
Commercial and industrial loans and leases averaged $56.8 billion in the recent quarter, up $1.4 billion from the fourth quarter of 2023 reflecting growth which spanned most industry types.
Previous report
Average commercial real estate loans were $32.7 billion in the first quarter of 2024, $759 million lower than the final quarter of 2023 reflecting declines of $296 million in average construction loans and $463 million in average permanent commercial real estate loans.
Previous report
Average loans and leases increased $1.8 billion or 1% from $132.0 billion in the similar quarter of 2023.
Previous report
Average deposits increased $2.5 billion from $161.5 billion in the year-earlier quarter.
Previous report
Long-term borrowings averaged $9.8 billion, $7.9 billion and $6.5 billion in the three-month periods ending March 31, 2024, December 31, 2023 and March 31, 2023, respectively. In February 2024, M&T Bank advanced $2.0 billion from the FHLB of New York which matures in February 2025 at a variable rate of SOFR plus 25 basis points payable quarterly until maturity. In March 2024, M&T issued $850 million of senior notes that mature in March 2032 and pay a 6.08% fixed rate semi-annually until March 2031 after which SOFR plus 2.26% will be paid quarterly until maturity. Also in March 2024, M&T Bank issued $511 million of asset-backed notes secured by automobile loans with a weighted-average estimated life of approximately two years and a weighted-average interest rate of 5.29% at the time
Previous report
(a)
Previous report
(b)
Previous report
(c)
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(a)
Previous report
Predominantly residential real estate loans.
Previous report
Nonaccrual loans were $2.3 billion at March 31, 2024, $136 million higher than December 31, 2023 and $255 million lower than March 31, 2023. The higher level of nonaccrual loans at the recent quarter end as compared with the immediately preceding quarter end was largely attributable to an increase in commercial and industrial nonaccrual loans, most notably loans to nonautomotive finance dealers and the manufacturing and services industries, partially offset by a decrease in commercial real estate nonaccrual loans. The decrease in nonaccrual loans at March 31, 2024 as compared with year-earlier quarter was predominantly due to lower levels of commercial real estate nonaccrual loans, including net charge-offs, and residential real estate nonaccrual loans, partially offset by a rise in commercial and industrial nonaccrual loans.
Previous report
(a)
Previous report
(b)
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(a)
Previous report
The lower balance of capitalized residential mortgage servicing rights at March 31, 2024 and December 31, 2023 as compared with March 31, 2023 reflects amortization of those servicing rights.
Previous report
(a)
Previous report
The lower assets under management at March 31, 2024 and December 31, 2023 as compared with March 31, 2023 reflects the sale of the CIT business in the second quarter of 2023.
Previous report
(a)
Previous report
(b)
Previous report
The decrease in letter of credit and other credit-related fees of $10 million in the recent quarter as compared with the fourth quarter of 2023 was primarily the result of lower loan syndication fees.
Previous report
Equipment operating lease income declined $10 million in 2024's first quarter as compared with the similar 2023 quarter reflecting lower gains on sales of leased equipment.
Previous report
Distributions from M&T's investment in BLG were $25 million and $20 million for the quarters ended March 31, 2024 and 2023, respectively. There were no such distributions in the fourth quarter of 2023.
Previous report
Salaries and employee benefits expenses increased $109 million in the recent quarter as compared with the fourth quarter of 2023 reflecting the aforementioned seasonal costs, annual merit increases and a rise in incentive compensation, partially offset by lower severance expense.
Previous report
FDIC assessments reflect a $197 million estimated special assessment in the fourth quarter of 2023 and $29 million of estimated incremental special assessment expense recorded in the first quarter of 2024.
Previous report
Nonpersonnel expenses increased $12 million in the recent quarter from $551 million in the year-earlier first quarter. That increase includes an FDIC special assessment of $29 million, higher outside data processing and software costs of $14 million and a rise in other costs of operations of $19 million, reflecting amortization of mortgage loan servicing rights obtained through a bulk purchase in March 2023. Those unfavorable factors were partially offset by lower professional and other services expenses of $40 million reflecting lower sub-advisory fees following the sale of the CIT business in April 2023 and a decline in advertising and marketing costs of $11 million.
Showing the first 40 of 63 passages. Open the source sections for the rest.
Reworded paragraphs (123)
Previous wording
The Company's results of operations for the first quarter of 2024 reflect an elevated interest rate environment which has led to higher costs of interest-bearing liabilities that have modestly outpaced increased yields on the Company's earning assets and an elevated level of provision for credit losses. The FOMC hiked its federal funds target rate four times in the first three quarters of 2023, totaling 100 basis points, but has not adjusted that rate since. Included in each of the first quarters of 2024 and 2023 results were seasonal salaries and employee benefits expenses of $99 million. Results for the first quarter of 2024 also included a $29 million estimated increase in the Company's FDIC special assessment. In the fourth quarter of 2023, an estimate of the FDIC special assessment for M&T of $197 million was recorded in the Consolidated Statement of Income. Additional information about the FDIC special assessment is included in note 13 of Notes to Financial Statements. A summary of financial results for the Company is provided below:
Current wording
The Company's results of operations for the second quarter of 2024 reflect a stabilization of deposit and borrowing costs after those costs increased significantly following four FOMC federal funds target rate increases totaling 100 basis points in the first three quarters of 2023. The FOMC has not adjusted that rate since. The results of operations for each of the first quarters of 2024 and 2023 included seasonal salaries and employee benefits expenses of $99 million. Estimated increases in the Company's FDIC special assessment of $29 million and $5 million were recorded in the first and second quarter of 2024 results of operations, respectively. Additional information about the FDIC special assessment is included in note 14 of Notes to Financial Statements. Other income in thefirst six months of 2023 included a $225 million gain on the sale of the Company's CIT business in April 2023. A summary of financial results for the Company is provided below:
Previous wording
Net interest income data are presented on a taxable-equivalent basis which is a non-GAAP measure. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on a composite income tax rate of approximately 25%.
Current wording
(a)Net interest income data are presented on a taxable-equivalent basis which is a non-GAAP measure. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on a composite income tax rate of approximately 25%.
Previous wording
The increase in net income in the recent quarter as compared with the fourth quarter of 2023 resulted from the following:
Current wording
The increase in net income in the recent quarter as compared with the first quarter of 2024 resulted from the following:
Previous wording
Provision for credit losses declined $25 million reflecting a modest improvement in economic forecasts, partially offset by an increase in criticized commercial and industrial loans.
Current wording
•Provision for credit losses declined $50 million reflecting lower commercial real estate loans, including criticized loans, and modest improvement in forecasted real estate prices, partially offset by commercial and industrial and consumer loan growth.
Previous wording
The decrease in net income in the first quarter of 2024 as compared with 2023's initial quarter reflects the following:
Current wording
The decline in net income for the six months ended June 30, 2024 as compared with the same 2023 period reflects the following:
Previous wording
Net interest income on a taxable-equivalent basis declined $43 million reflecting a narrowing of the net interest margin by 9 basis points.
Current wording
•Net interest income on a taxable-equivalent basis declined $222 million reflecting a narrowing of the net interest margin by 41 basis points as higher deposit and borrowing costs outpaced increased yields on the Company's earning assets.
Previous wording
The Company's effective tax rate was 20.0% in the first quarter of 2024, compared with 22.9% in the fourth quarter of 2023 and 24.2% in the first quarter of 2023. The first quarter of 2024 income tax expense reflects a net discrete benefit related to the resolution of a tax matter inherited from the acquisition of People's United.
Current wording
The Company's effective income tax rates were 23.4% and 20.0% for the quarters ended June 30, 2024 and March 31, 2024, respectively, and 21.9% and 24.8% for the six-month periods ended June 30, 2024 and 2023, respectively. The first quarter of 2024 income tax expense reflects a net discrete benefit related to the resolution of a tax matter inherited from the acquisition of People's United.
Previous wording
The efficiency ratio measures the relationship of noninterest operating expenses, which exclude expenses M&T considers to be "nonoperating" in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses, to revenues. The calculations of the Company’s efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), and reconciliations of GAAP amounts with corresponding non-GAAP amounts are presented in Table 2.
Current wording
46 - merger-related expenses, to revenues. The calculations of the Company’s efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), and reconciliations of GAAP amounts with corresponding non-GAAP amounts are presented in Table 2.
Previous wording
Includes available-for-sale securities at amortized cost.
Current wording
(b)Includes available-for-sale securities at amortized cost.
Previous wording
Includes available-for-sale securities at amortized cost.
Current wording
(b)Includes available-for-sale securities at amortized cost.
Previous wording
The following table summarizes average loans and leases outstanding in the first quarter of 2024 and percentage changes in the major components of the portfolio over comparable periods.
Current wording
The Company's lending activities in 2023 and for the first six months of 2024 reflect its execution of various strategies to reduce its relative concentration of commercial real estate loans. The following table summarizes average loans and leases for the three-month and six-month periods ended June 30, 2024 and percentage changes in the major components of the portfolio.
Previous wording
Average loans and leases totaled $133.8 billion in the first quarter of 2024, up $1.0 billion or 1% from the fourth quarter of 2023.
Current wording
Average loans and leases totaled $134.6 billion in the second quarter of 2024, up $792 million or 1% from the first quarter of 2024.
Previous wording
Average residential real estate loans decreased $203 million to $23.1 billion in the first quarter of 2024 as compared with the fourth quarter of 2023, largely attributable to customer payments on loans held for investment.
Current wording
•Largely reflecting customer payments on loans held for investment, average residential real estate loans decreased $130 million to $23.0 billion in the second quarter of 2024 as compared with the first quarter of 2024.
Previous wording
Consumer loans averaged $21.1 billion in the first quarter of 2024 or $587 million higher than the fourth quarter of 2023. That growth reflected an increase in average balances of $452 million and $247 million in M&T's portfolio of recreational finance loans and automobile loans, respectively.
Current wording
•Average consumer loans in the second quarter of 2024 increased $829 million from the first quarter of 2024 to $22.0 billion. That growth reflects an increase in average balances in recreational finance loans and automobile loans of $644 million and $217 million, respectively.
Previous wording
Average commercial and industrial loans and leases increased $4.3 billion from the year-earlier quarter predominantly reflecting growth in loans to financial and insurance industry customers and to motor vehicle and recreational finance dealers.
Current wording
•Average commercial and industrial loans and leases in the first half of 2024 increased $4.0 billion from the first half of 2023, reflecting growth in most industries, predominantly financial and insurance and motor vehicle and recreational finance dealers.
Previous wording
Average commercial real estate loans decreased $2.5 billion in the recent quarter as compared with the first quarter of 2023 reflecting decreases of $1.0 billion in average construction loans and $1.5 billion in average permanent commercial real estate loans.
Current wording
•Average commercial real estate loans declined $3.0 billion in the first half of 2024 as compared with the corresponding 2023 period reflecting decreases of $2.1 billion in average permanent commercial real estate loans and $962 million in average construction loans.
Previous wording
Average residential real estate loans decreased $634 million in the first quarter of 2024 from the year-earlier quarter. That decrease was largely attributable to customer payments on loans held for investment. In the first quarter of 2023, the Company returned to originating for sale the majority of its newly originated residential mortgage loans.
Current wording
•Average residential real estate loans decreased $704 million in the six months ended June 30, 2024 from the first half of 2023. That decrease was largely attributable to customer payments on loans held for investment.
Previous wording
Average consumer loans in the first quarter of 2024 increased $656 million from the year-earlier quarter. That growth reflected higher average balances of $1.2 billion of recreational finance loans, partially offset by declines of $252 million and $332 million in average balances of automobile loans and home equity loans and lines of credit, respectively.
Current wording
•Average consumer loans in the first half of 2024 increased $1.2 billion from the first half of 2023. That growth reflected higher average balances of $1.5 billion of recreational finance loans, partially offset by a decline of $295 million in the average balance of home equity loans and lines of credit.
Previous wording
The investment securities portfolio averaged $28.6 billion in the first quarter of 2024, up $1.1 billion and $965 million from the fourth and first quarters of 2023, respectively. The higher average balance in the recent quarter when compared with the fourth quarter of 2023 and year-earlier quarter reflects the purchase of $4.1 billion of debt securities during the three-month period ended March 31, 2024. Those purchases were predominantly U.S. Treasury notes and fixed rate government issued or guaranteed mortgage-backed securities. There were no significant sales of investment securities during the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. The Company routinely increases and decreases its holdings of capital stock of the FHLB of New York and the FRB of New York based on amounts of outstanding borrowings and available lines of credit with those entities.
Current wording
The investment securities portfolio averaged $29.7 billion in the second quarter of 2024, up $1.1 billion from the first quarter of 2024. The higher average balance in the recent quarter when compared with the first quarter of 2024 reflects the purchase of $3.1 billion of U.S. Treasury securities and government issued or guaranteed commercial and residential mortgage-backed securities in the recent quarter. In the first six months of 2024 and 2023, investment securities averaged $29.1 billion and $28.1 billion, respectively. The rise in average balances in the first half of 2024 as compared with the first half of 2023 reflects purchases of U.S Treasury securities and government issued or guaranteed commercial and residential mortgage-backed securities of $7.2 billion during the first half of 2024. The Company sold $71 million of non-agency investment securities from its available-for-sale portfolio during the first half of 2024. There were no significant sales of investment securities during the six months ended June 30, 2023. The Company routinely increases and decreases its holdings of capital stock of the FHLB of New York and the FRB of New York based on amounts of outstanding borrowings and available lines of credit with those entities.
Previous wording
The investment securities portfolio is largely comprised of government issued or guaranteed residential mortgage-backed securities and shorter-term U.S. Treasury and federal agency notes, but also includes commercial mortgage-backed securities and municipal securities. When purchasing investment securities, the Company considers its liquidity position and its overall interest rate risk profile as well as the adequacy of expected returns relative to risks assumed, including prepayments. The Company may occasionally sell investment securities as a result of movements in interest rates and spreads, changes in liquidity needs, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio in connection with a business combination. The amounts of investment securities held by the Company are influenced by such factors as available yield in comparison with alternative investments, demand for loans, which generally yield more than investment securities, ongoing repayments, the levels of deposits, and management of liquidity and balance sheet size and resulting capital ratios.
Current wording
The investment securities portfolio is largely comprised of government issued or guaranteed commercial and residential mortgage-backed securities and U.S. Treasury securities, but also includes municipal and other securities. When purchasing investment securities, the Company considers its liquidity position and its overall interest rate risk profile as well as the adequacy of expected returns relative to risks assumed, including prepayments. The Company may occasionally sell investment securities as a result of movements in interest rates and spreads, changes in liquidity needs, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio in connection with a business combination. The amounts of investment securities held by the Company are influenced by such factors as available yield in comparison with alternative investments, demand for loans, which generally yield more than investment securities, ongoing repayments, the levels of deposits, and management of liquidity and balance sheet size and resulting capital ratios.
Previous wording
The Company regularly reviews its debt investment securities for declines in value below amortized cost that might be indicative of credit-related losses. In light of such reviews, there were no credit-related losses on debt investment securities recognized in any of the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. A further discussion of fair values of investment securities is included herein under the heading "Capital." Additional information about the investment securities portfolio is included in notes 3 and 12 of Notes to Financial Statements.
Current wording
The Company regularly reviews its debt investment securities for declines in value below amortized cost that might be indicative of credit-related losses. In light of such reviews, there were no credit-related losses on debt investment securities recognized in either of the six months ended June 30, 2024 and 2023. A further discussion of fair values of investment securities is included herein under the heading "Capital." Additional information about the investment securities portfolio is included in notes 3 and 13 of Notes to Financial Statements.
Previous wording
Other earning assets include interest-bearing deposits at banks, trading account assets, federal funds sold and agreements to resell securities. Those other earning assets in the aggregate averaged $30.8 billion in the recently completed quarter, compared with $30.3 billion and $24.4 billion during the three months ended December 31, 2023 and March 31, 2023, respectively. Interest-bearing deposits at banks averaged $30.6 billion, $30.2 billion and $24.3 billion during the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The amounts of interest-bearing deposits at banks at those respective dates were predominantly comprised of deposits held at the FRB of New York. In general, the levels of those deposits often fluctuate due to changes in deposits of retail and commercial customers, trust-related deposits and additions to or maturities of investment securities or borrowings.
Current wording
Other earning assets include interest-bearing deposits at banks, trading account assets, federal funds sold and agreements to resell securities. Those other earning assets in the aggregate averaged $29.4 billion in the recently completed quarter, compared with $30.8 billion during the three months ended March 31, 2024, and $30.1 billion in the six months ended June 30, 2024, compared with $24.1 billion in the six months ended June 30, 2023. The amounts of other earning assets at those respective dates were predominantly comprised of deposits held at the FRB of New York. In general, the levels of those deposits often fluctuate due to changes in deposits of retail and
Previous wording
The most significant source of funding for the Company is core deposits. The Company considers noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and time deposits of $250,000 or less as core deposits. The Company’s branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Average core deposits totaled $147.4 billion, or 76% of average earning assets, for the quarter ended March 31, 2024, compared with $147.6 billion, or 77%, and $152.0 billion, or 83%, for the quarters ended December 31, 2023 and March 31, 2023, respectively. The lower level of core deposits in the two most recent quarters as compared with the first quarter of 2023 reflects a shift in the mix of funding sources, including from other deposit sources such as branch-related time deposits over $250,000 and brokered deposits. Brokered savings and interest-bearing transaction accounts and brokered time deposit accounts averaged $8.0 billion and $5.2 billion, respectively, in the recent quarter, compared with $6.7 billion and $7.3 billion, respectively, in the fourth quarter of 2023 and $3.4 billion and $4.6 billion, respectively, in the first quarter of 2023. Additional brokered deposits may be added in the future depending on market conditions, including demand by customers and other investors for those deposits, and the cost of funds available from alternative sources at that time. The following table provides an analysis of quarterly changes in the components of average deposits.
Current wording
The most significant source of funding for the Company is core deposits. The Company considers noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and time deposits of $250,000 or less as core deposits. The Company’s branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Average core deposits represented 76% of average earning assets for each of the quarters ended June 30, 2024 and March 31, 2024, and 76% and 81% for the six months ended June 30, 2024 and 2023, respectively. The Company also includes brokered deposits as a component of its wholesale funding strategy. Depending on market conditions, including demand by customers and other investors, and the cost of funds available from alternative sources, the Company may change the amount or composition of brokered deposits in the future. The following table provides an analysis of quarterly changes in the components of average deposits.
Previous wording
Deposits averaged $164.1 billion in the recent quarter, a $648 million decline from $164.7 billion in the fourth quarter of 2023.
Current wording
Deposits averaged $163.5 billion in the recent quarter, a $574 million decrease from $164.1 billion in the first quarter of 2024.
Previous wording
Average core deposits decreased nominally from the fourth quarter of 2023 reflecting a stabilization of customer deposits in the higher rate environment.
Current wording
•Average core deposits increased modestly from the first quarter of 2024 reflecting a stabilization of customer deposits in the higher rate environment.
Previous wording
The decrease in average brokered deposits in the recent quarter reflected a mix shift in the Company's wholesale funding strategies. Average brokered time deposits decreased $2.1 billion to $5.2 billion in the recent quarter from $7.3 billion in the fourth quarter of 2023 and the rates paid on those deposits averaged 5.01% and 4.97%, respectively. Average brokered savings and interest-bearing transaction accounts increased $1.3 billion to $8.0 billion in the recent quarter from $6.7 billion in the fourth quarter of 2023 and the rates paid on those deposits averaged 4.78% and 4.66%, respectively. The rate paid on total non-brokered interest-bearing deposits was 2.67% in the first quarter of 2024, compared with 2.62% in the fourth quarter of 2023.
Current wording
•The decrease in average brokered deposits in the recent quarter reflects a shift in the Company's wholesale funding strategy. Average brokered time deposits decreased $1.4 billion to $3.8 billion in the recent quarter from $5.2 billion in the first quarter of 2024. The rates paid on those deposits averaged 4.99% and 5.01%, during the three months ended June 30, 2024 and March 31, 2024, respectively. Average brokered savings and interest-bearing transaction accounts increased $163 million to $8.2 billion in the recent quarter from $8.0 billion in the first quarter of 2024. The rates paid on those deposits averaged 4.75% and 4.78%, during the three months ended June 30, 2024 and March 31, 2024, respectively. The rate paid on total non-brokered interest-bearing deposits was 2.67% in each of the first and second quarters of 2024 reflecting a stabilization in deposit product pricing.
Previous wording
The decrease in average core deposits in the recent quarter as compared with the year-earlier quarter reflects the impact of an elevated interest rate environment that influenced customers to seek higher rate alternatives, including a shift from noninterest-bearing deposit accounts to commercial sweep products and time deposits over $250,000.
Current wording
•Average core deposits decreased $1.7 billion in the six months ended June 30, 2024 as compared with the similar prior-year period reflecting the impact of an elevated interest rate environment that influenced customers to seek higher rate alternatives, including a shift of funds to commercial sweep products and time deposits greater than $250,000.
Previous wording
The increase in average brokered deposits in the recent quarter as compared with the first quarter of 2023 reflects the Company's liquidity management and funding strategies during a period of rising interest rates, partially offset by the maturity of some brokered time deposits in the recent quarter. The Company had brokered savings and interest-bearing transaction accounts and brokered time deposits that averaged $3.4 billion and $4.6 billion, respectively, in the year-earlier quarter and the rates paid on those deposits averaged 3.54% and 4.82%, respectively. The rate paid on total non-brokered interest-bearing deposits in the first quarter of 2023 was 1.24%.
Current wording
•The increase in average brokered deposits in the six months ended June 30, 2024 as compared with the first six months of 2023 reflects the Company's liquidity management and funding strategies during a period of rising interest rates, partially offset by the maturity of some brokered time deposits in the recent six-month period. Average brokered savings and interest-bearing transaction accounts increased $4.5 billion to $8.1 billion in the six months ended June 30, 2024 from $3.6 billion in the six months ended
Previous wording
The accompanying table summarizes the components of average total deposits by segment for the quarters ended March 31, 2024, December 31, 2023 and March 31, 2023.
Current wording
The accompanying table summarizes the components of average total deposits by segment for the three months ended June 30, 2024 and March 31, 2024 and the six months ended June 30, 2024 and 2023.
Previous wording
The Company also uses borrowing capacity from banks, the FHLBs, the FRB of New York and others as sources of funding. Short-term borrowings represent arrangements that at the time they were entered into had a contractual maturity of one year or less. The higher levels of short-term borrowings in the first quarter of 2024 as compared with the fourth quarter of 2023 and year-earlier first quarter reflect the Company's management of liquidity.
Current wording
The Company uses borrowing capacity from banks, the FHLBs, the FRB of New York and others as sources of funding. Short-term borrowings represent arrangements that at the time they were entered into had a contractual maturity of one year or less. The lower levels of short-term borrowings in the second quarter of 2024 as compared with the first quarter of 2024 as well as for the six months ended June 30, 2024 as compared with the similar 2023 period reflect the Company's management of liquidity.
Previous wording
-46 - of securitization. The increased usage of borrowing facilities reflects the Company's strategies to diversify its wholesale funding options to provide long-term funding stabilization and prepare for proposed regulations enumerating certain long-term debt requirements as described in Part I, Item 1 of M&T's 2023 Annual Report.
Current wording
Reflecting new issuances and advances of long-term borrowing arrangements of $3.4 billion during the first quarter of 2024, long-term borrowings averaged $11.5 billion and $9.8 billion in the three-month periods ended June 30, 2024 and March 31, 2024, respectively. Long-term borrowings averaged $10.6 billion and $7.0 billion for the six-month periods ended June 30, 2024 and 2023, respectively. The increased usage of borrowing facilities reflects the Company's strategies to diversify its wholesale funding options to provide long-term funding stabilization and prepare for proposed regulations enumerating certain long-term debt requirements as described in Part I, Item 1 of M&T's 2023 Annual Report.
Previous wording
Additional information regarding borrowings is provided in notes 5 and 11 of Notes to Financial Statements.
Current wording
Additional information regarding borrowings is provided in notes 5 and 12 of Notes to Financial Statements.
Previous wording
Net interest income can be impacted by changes in the composition of the Company's earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads. Net interest spread, or the difference between the taxable-equivalent yield on earning assets and the rate paid on interest-bearing liabilities, was 2.48% in the recent quarter, down 8 basis points from 2.56% in the fourth quarter of 2023. The decline in the net interest spread from the fourth quarter of 2023 reflects higher levels of average borrowings, partially offset by higher rates earned on investment securities. The yield on earning assets during the first quarter of 2024 was 5.74%, up 1 basis point from 5.73% in the fourth quarter of 2023. The rate paid on interest-bearing liabilities was 3.26% in the recent quarter, compared with 3.17% in the final quarter of 2023. In the first quarter of 2023, the net interest spread was 3.30%, the yield on earning assets was 5.16% and the rate paid on interest-bearing liabilities was 1.86%. The decline in the net interest spread in the recent quarter as compared with the first quarter of 2023 reflects the impact of higher rates paid on interest-bearing liabilities (predominantly interest-bearing deposits) resulting from a general rise in interest rates during the first three quarters of 2023, which outpaced higher yields earned on loans and leases, deposits at the FRB of New York and investment securities.
Current wording
Taxable-equivalent net interest income can be impacted by changes in the composition of the Company's earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads. Net interest spread, or the difference between the yield on earning assets and the rate paid on interest-bearing liabilities, was 2.56% in the recent quarter, up 8 basis points from 2.48% in the first quarter of 2024. The increase in the net interest spread from the first quarter of 2024 reflected increased yields on average earning assets and stability of the cost of interest-bearing liabilities. The yield on earning assets during the second quarter of 2024 was 5.82%, up 8 basis points from 5.74% in the first quarter of 2024 largely due to a 31 basis-point increase in yield on investment securities and a 6 basis-point increase in yield on loans. The rate paid on interest-bearing liabilities was 3.26%, unchanged from the first quarter of 2024. For the first six months of 2024, the net interest spread was 2.52%, down from 3.16% in the corresponding year-earlier period. Higher rates paid on interest-bearing deposits and other liabilities, which outpaced higher yields earned on loans and other earning assets, largely contributed to the decline in net interest spread.
Previous wording
Net interest-free funds consist largely of noninterest-bearing demand deposits and shareholders’ equity, partially offset by bank owned life insurance and non-earning assets, including goodwill and core deposit and other intangible assets. Net interest-free funds averaged $61.7 billion in the first quarter of 2024, compared with $62.9 billion in the fourth quarter of 2023 and $72.9 billion in the year-earlier quarter. The lower level of average net interest-free funds in the recent quarter as compared with the fourth and first quarters of 2023 is predominantly the result of a decline in the average balance of noninterest-bearing deposits, partially offset by increases in common shareholders equity from retained earnings, net of common and preferred stock dividends. Noninterest-bearing deposits averaged $48.6 billion in the first quarter of 2024, compared with $50.1 billion in the last quarter of 2023 and $61.9 billion in the first quarter of 2023. The decline in average noninterest-bearing deposits since the first quarter of 2023 reflects customer use of off-balance sheet investment products and a shift in deposits to interest-bearing accounts as interest rates rose. The contribution of net interest-free funds to net interest margin was 1.04% in the first quarter of 2024, compared with 1.05% in the fourth quarter of 2023 and .74% in the first quarter of 2023. The increased contribution of net interest-free funds to net interest margin in the two most recent quarters as compared with the first 2023 quarter reflects higher rates paid on interest-bearing liabilities used to value net interest-free funds.
Current wording
Net interest-free funds consist largely of noninterest-bearing demand deposits and shareholders’ equity, partially offset by bank owned life insurance and non-earning assets, including goodwill and core deposit and other intangible assets. Net interest-free funds averaged $61.5 billion in the second quarter of 2024, relatively unchanged from $61.7 billion in the first quarter of 2024. Net interest-free funds averaged $61.6 billion and $70.3 billion in the first six months of 2024 and 2023, respectively. Noninterest-bearing deposits averaged $47.7 billion in the second quarter of 2024, compared with $48.6 billion in the first quarter of 2024, and $48.2 billion in the first half of 2024 as compared with $59.0 billion in the first half of 2023. The declines in average noninterest-bearing deposits in the respective comparative periods reflect customer use of off-balance sheet investment products and a shift in deposits to interest-bearing accounts in an environment of elevated interest rates. The contribution of net interest-free funds to net interest margin was 1.03% in the second quarter of 2024, compared with 1.04% in the first quarter of 2024. In the first six months of 2024 and 2023, the contribution of net interest-free funds to net interest margin was 1.04% and .81%, respectively. The increased contribution of net interest-free funds to net interest margin in the first six months of 2024 as compared with the first six months of 2023 reflects higher rates paid on interest-bearing liabilities used to value net interest-free funds.
Previous wording
Reflecting the changes to the net interest spread and the contribution of net interest-free funds as described herein, the Company’s net interest margin was 3.52% in the first quarter of 2024, compared with 3.61% in the fourth quarter of 2023 and 4.04% in the year-earlier period. The higher interest rate environment has led to an increase in the rates paid on the Company's sources of funding which has outpaced the rise in yields on earning assets. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in changes to spreads, could impact the Company’s net interest income and net interest margin.
Current wording
Reflecting the changes to the net interest spread and the contribution of net interest-free funds as described herein, the Company’s net interest margin was 3.59% in the second quarter of 2024, compared with 3.52% in the first quarter of 2024. During the first six months of 2024 and 2023, the net interest margin was 3.56% and 3.97%, respectively. That 41 basis-point narrowing of the net interest margin reflects an increase in the rates paid on the Company's sources of funding which has outpaced the rise in yields on earning assets. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in changes to spreads, could impact the Company’s net interest income and net interest margin.
Previous wording
Information regarding the fair value of interest rate swap agreements is presented in note 10 of Notes to Financial Statements. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes (excluding forward-starting interest rate swap agreements not in effect during the quarter), the related effect on net interest income and margin and the weighted-average interest rates paid or received on those swap agreements is presented in the table that follows.
Current wording
Information regarding the fair value of interest rate swap agreements is presented in note 11 of Notes to Financial Statements. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes (excluding forward-starting interest rate swap agreements not in effect during the quarter), the related effect on net interest income and margin and the weighted-average interest rates paid or received on those swap agreements are presented in the table that follows.
Previous wording
Computed as an annualized percentage of average earning assets or interest-bearing liabilities.
Current wording
(a)Computed as an annualized percentage of average earning assets or interest-bearing liabilities.
Previous wording
Excludes forward-starting interest rate swap agreements not in effect during the period.
Current wording
(b)Excludes forward-starting interest rate swap agreements not in effect during the period.
Previous wording
Weighted-average rate paid or received on interest rate swap agreements in effect during the period.
Current wording
(c)Weighted-average rate paid or received on interest rate swap agreements in effect during the period.
Previous wording
A provision for credit losses is recorded to adjust the level of the allowance to reflect expected credit losses that are based on economic forecasts as of each reporting date. A provision for credit losses of $200 million was recorded in the first quarter of 2024, compared with $225 million in the fourth quarter of 2023 and $120 million in the year-earlier quarter. The comparatively higher provisions for credit losses in the most recent two quarters as compared with the first quarter of 2023 reflect declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers, including nonautomotive dealers and healthcare facilities, as well as growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. Net charge-offs totaled $138 million in 2024's first quarter as compared with $148 million in 2023's final quarter and $70 million in the year-earlier quarter. The lower level of net charge-offs in the first quarter of 2024 as compared with the preceding quarter included a decline in commercial real estate loan net charge-offs, partially offset by an increase in net charge-offs of commercial and industrial and consumer loans. As compared with year-earlier first quarter, the recent quarter net charge-offs reflect higher levels of commercial and industrial and consumer loan net charge-offs.
Current wording
A provision for credit losses is recorded to adjust the level of the allowance to reflect expected credit losses that are based on economic forecasts as of each reporting date. A provision for credit losses of $150 million was recorded in the second quarter of 2024, compared with $200 million in the first quarter of 2024. The lower provision for credit losses in the recent quarter as compared with the first quarter of 2024 reflects lower commercial real estate loans, including criticized loans, and modest improvement in forecasted real estate prices, partially offset by growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. For the six months ended June 30, 2024 and 2023, the Company recorded a provision for credit losses of $350 million and $270 million, respectively. The higher provision for credit losses in the most recent two quarters as compared with the similar 2023 period reflects declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers, including nonautomotive dealers and healthcare facilities, as well as growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios.
Showing the first 40 of 123 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The efficiency ratio measures the relationship of noninterest operating expenses, which exclude expenses M&T considers to be "nonoperating" in nature consisting of amortization of core deposit and other intangible assets and
Current report — wording carried from elsewhere
50 - commercial customers, trust-related deposits, brokered deposits and additions to or maturities of investment securities or borrowings.
Current report — wording carried from elsewhere
58 - criticized loan 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.
Current report — wording carried from elsewhere
•The increase in gains on commercial mortgage loans originated for sale in the second quarter of 2024 as compared with the first quarter of 2024 reflects higher volumes of new commitments to originate commercial real estate loans for sale.
Current report — wording carried from elsewhere
•Institutional Services trust income increased $6 million reflecting higher sales and fund management fees from its global capital markets business.
Current report — wording carried from elsewhere
70 - guaranteed mortgage-backed securities comprised 91% of the Company's debt securities portfolio at June 30, 2024. The weighted-average durations of debt investment securities available for sale and held to maturity at June 30, 2024 were 2.1 years and 5.3 years, respectively.
Current report — wording carried from elsewhere
71 - financial instruments used in the projections are based on expected growth from forecasted business opportunities, anticipated prepayments of loans and investment securities, and expected maturities of investment securities, loans and deposits. The Company has entered into interest rate swap agreements to help manage exposure to interest rate risk. At June 30, 2024, the aggregate notional amount of interest rate swap agreements entered into for interest rate risk management purposes that were currently in effect was $20.4 billion. In addition, the Company has entered into $9.4 billion of forward-starting interest rate swap agreements designated for hedging purposes. Information about interest rate swap agreements entered into for interest rate risk management purposes is included herein under the heading “Net Interest Margin” and in note 11 of Notes to Financial Statements.
Current report — wording carried from elsewhere
72 - changes. Management also uses an “economic value of equity” model to supplement the modeling technique described above and provide a long-term interest rate risk metric. Economic value of equity is a point-in-time analysis of the economic sensitivity of assets, liabilities and off-balance sheet positions that incorporates all cash flows over their estimated remaining lives. Management measures the impact of changes in market values due to interest rates under a number of scenarios, including immediate shifts of the yield curve.
Current report — wording carried from elsewhere
80 - administrative expenses. The Company’s investment securities portfolio, brokered deposits and short-term and long-term borrowings are generally included in the “All Other” category. In its management of interest rate risk, the Company utilizes interest rate swap agreements to modify the repricing characteristics of certain portfolios of earning assets and interest-bearing liabilities. The results of such activities are captured in the "All Other" category.
Current report — wording carried from elsewhere
81 - such as M&T. On April 4, 2024, the SEC issued an order to stay the final rule pending the completion of judicial review by the United States Court of Appeals for the Eighth Circuit.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
The comparatively higher provision for credit losses in the recent quarter as compared with the first quarter of 2023 reflects declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers, including nonautomotive finance dealers and healthcare facilities, and growth in loans to certain sectors of the Company's commercial and industrial and consumer loan portfolios.
Previous report — wording carried elsewhere
-50 - investor-owned commercial real estate loans have remained elevated at $8.5 billion or 26% of such loans at March 31, 2024 and $8.8 billion or 27% of such loans at December 31, 2023. Investor-owned commercial real estate loans comprised 66% and 70% of total criticized loans at March 31, 2024 and December 31, 2023, respectively. The weighted-average LTV ratios for investor-owned commercial real estate loans was approximately 56% at each of March 31, 2024 and December 31, 2023. Criticized loans secured by investor-owned commercial real estate had a weighted-average LTV ratio of approximately 62% at March 31, 2024 and 61% at December 31, 2023.
Previous report — wording carried elsewhere
-60 - outflows for more than 24 months, including dividends on common and preferred stock, debt service and scheduled debt maturities.
Previous report — wording carried elsewhere
The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income. The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments, loan and deposit volumes, mix and pricing, and deposit maturities. In the scenarios presented, the Company also assumed gradual changes in interest rates during a twelve-month period as compared with the base scenario. Changes in amounts presented since December 31, 2023 reflect changes in portfolio composition (including shifts between noninterest-bearing and interest-bearing deposits and higher levels of borrowings), the level of market-implied forward interest rates and hedging actions taken by the
Previous report — wording carried elsewhere
-63 - related to the Company’s actions to mitigate foreign currency and interest rate risk associated with customer activities. Information about the Company’s use of derivative financial instruments is included in note 10 of Notes to Financial Statements.
Previous report — wording carried elsewhere
Refer to note 10 of Notes to Financial Statements.
Previous report — wording carried elsewhere
Refer to note 7 of Notes to Financial Statements.
Previous report — wording carried elsewhere
-72 - 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.