M&T Bank Springs into Action with Strong Q1 Results
M&T Bank has kicked off the year on a high note, delivering impressive first-quarter results that showcase its resilience and commitment to serving customers.
During their recent conference call, M&T's Senior Executive Vice President and CFO, Daryl Bible, highlighted the company's purpose: 'to make a difference in people's lives.' This mission is reflected not only in its customer-centric approach but also in its dedication to supporting communities and delivering value to shareholders.
The company's strong liquidity, capital levels, and capital generation position it well for navigating uncertain times. M&T's consistent adherence to the fundamentals of liquidity management, capital allocation, and transparency has allowed it to perform consistently across various macroeconomic cycles.
As showcased on Slide 4, M&T received notable recognition, including 13 Greenwich Coalition awards for its small business and middle market segments. The company was also included in Fortune's most admired and most innovative companies list.
In the first quarter, M&T Bank achieved several successes. Its net interest margin increased by 8 basis points, driven by efficient balance sheet management and a strong deposit franchise. The company executed $662 million in share repurchases, further reducing its common equity tier 1 (CET1) ratio to 11% while growing tangible book value per share by 2%. Fee income grew 5%, with asset quality continuing to improve.
The results are impressive: net income was $584 million compared to $681 million in the linked quarter, and diluted GAAP earnings per share were $3.32, down from $3.86 in the prior quarter. Net operating income muted an ROTA (return on average tangible equity) of 1.21% and a ROTCE (return on total common equity) of 12.53%. This demonstrates M&T's ability to maintain strong performance even during periods of economic uncertainty.
Looking at underlying trends, taxable equivalent net interest income decreased by $33 million or 2% from the linked quarter, primarily due to 2 fewer days and lower returning assets. However, favorable deposit costs offset this decline, contributing to an increase in net interest margin of 8 basis points.
The company's average loans and leases decreased by $0.9 billion to $134.8 billion. This was largely due to lower commercial real estate balances being partially offset by growth in C&I, consumer, and residential mortgage loans. C&I loans grew 1% to $61 million, driven by continued strength in the corporate institutional and fund banking sectors.
M&T's results demonstrate its ability to adapt to changing market conditions while maintaining a strong focus on customer service and community support. The company's resilience and commitment to its mission are likely to drive future success."
