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

April 15, 2024 at 6:11 AM EDT

BUFFALO, N.Y., April 15, 2024 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $531 million or $3.02 of diluted earnings per common share.

(Dollars in millions, except per share data)


1Q24


4Q23


1Q23

Earnings Highlights


Net interest income


$        1,680



$        1,722



$        1,818


Taxable-equivalent adjustment


12



13



14


Net interest income - taxable-equivalent


1,692



1,735



1,832


Provision for credit losses


200



225



120


Noninterest income


580



578



587


Noninterest expense


1,396



1,450



1,359


Net income


531



482



702


Net income available to common shareholders - diluted


505



457



676


Diluted earnings per common share


3.02



2.74



4.01


Return on average assets - annualized


1.01

%


.92

%


1.40

%

Return on average common shareholders' equity - annualized


8.14



7.41



11.74


Average Balance Sheet


Total assets


$     211,478



$     208,752



$     202,599


Interest-bearing deposits at banks


30,647



30,153



24,312


Investment securities


28,587



27,490



27,622


Loans and leases, net of unearned discount


133,796



132,770



132,012


Deposits


164,065



164,713



161,537


Borrowings


16,001



13,057



11,505


Selected Ratios


(Amounts expressed as a percent, except per share data)










Net interest margin


3.52

%


3.61

%


4.04

%

Efficiency ratio


60.8



62.1



55.5


Net charge-offs to average total loans - annualized


.42



.44



.22


Allowance for credit losses to total loans


1.62



1.59



1.49


Nonaccrual loans to total loans


1.71



1.62



1.92


Common equity Tier 1 ("CET1") capital ratio (1)


11.07



10.98



10.16


Common shareholders' equity per share


$      150.90



$      150.15



$      140.88


(1) March 31, 2024 CET1 capital ratio is estimated.


 

Financial Highlights

  • The CET1 capital ratio increased 9 basis points to an estimated 11.07% at March 31, 2024, compared with 10.98% at December 31, 2023, highlighting the Company's improved capital position.
  • Net interest margin of 3.52% in the recent quarter narrowed from 3.61% in the fourth quarter of 2023 reflecting higher liquidity, cash moving to investment securities and higher deposit and borrowing costs.
  • Growth in average commercial and industrial and consumer loans in the recent quarter was partially offset by a decline in average commercial real estate loans.
  • Average deposits remained stable with a slowing mix shift to higher cost deposits. Average borrowings rose in the first quarter of 2024 as compared with the fourth quarter of 2023 due to increased borrowings from the Federal Home Loan Bank ("FHLB") of New York and the issuance of senior notes.
  • Provision for credit losses in the recent quarter reflects elevated levels of criticized commercial and industrial loans and loan growth.
  • Expenses included $99 million of seasonal salaries and employee benefits expense and a $29 million estimated increase in the FDIC special assessment, reflecting the FDIC's higher loss estimate attributable to certain failed banks.

Chief Financial Officer Commentary

"We are off to a solid start in 2024 as we were able to grow certain sectors of our commercial and consumer loan portfolios, while continuing to shrink our commercial real estate exposure. Expenses were prudently managed in the recent quarter and our selective approach to allocating resources to our strategic priorities with utmost care has not wavered. M&T's liquidity and capital position strengthened, reflecting a stable deposit base, higher levels of borrowings and solid earnings after considering seasonal employee compensation expenses and an incremental FDIC special assessment. I thank my colleagues at M&T for their stewardship of shareholder capital and their continuous support of our mission to make a difference in the lives of our customers and the communities in which we serve."

- 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)


























Change
1Q24 vs.





Change
1Q24 vs.

(Dollars in millions, except per share data)


1Q24


4Q23


4Q23


1Q23


1Q23

Net operating income


$            543



$            494



10

%


$            715



-24

%

Diluted net operating earnings per common share


3.09



2.81



10



4.09



-24


Annualized return on average tangible assets


1.08

%


.98

%





1.49

%




Annualized return on average tangible common equity


12.67



11.70






19.00





Efficiency ratio


60.8



62.1






55.5





Tangible equity per common share


$         99.54



$         98.54



1



$         88.81



12


____________________

(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.

 Taxable-equivalent Net Interest Income


























Change
1Q24 vs.





Change
1Q24 vs.

(Dollars in millions)


1Q24


4Q23


4Q23


1Q23


1Q23

Average earning assets


$     193,135



$     190,536



1

%


$     184,069



5

%

Average interest-bearing liabilities


131,451



127,646



3



111,188



18


Net interest income  ̶  taxable-equivalent


1,692



1,735



-2



1,832



-8


Yield on average earning assets


5.74

%


5.73

%





5.16

%




Cost of interest-bearing liabilities


3.26



3.17






1.86





Net interest spread


2.48



2.56






3.30





Net interest margin


3.52



3.61






4.04





 

Taxable-equivalent net interest income decreased $43 million, or 2%, from the fourth quarter of 2023.

  • Average borrowings rose $2.9 billion and the rate paid on such borrowings increased 13 basis points.
  • Average interest-bearing deposits increased $861 million and the rates paid on such deposits rose 3 basis points.
  • The yield on average loans and leases declined 1 basis point.
  • Average investment securities increased $1.1 billion and the rates earned on those securities increased 17 basis points.

Taxable-equivalent net interest income decreased $140 million, or 8%, compared with the year-earlier first quarter.

  • Average interest-bearing deposits rose $15.8 billion and the rates paid on those deposits increased 144 basis points.
  • Average borrowings increased $4.5 billion and rates paid on such borrowings increased 64 basis points.
  • Yields earned on average interest-bearing deposits at banks and average loans and leases increased 85 basis points and 62 basis points, respectively.
  • Average interest-bearing deposits at banks and average loans and leases increased $6.3 billion and $1.8 billion, respectively.

 Average Earning Assets





















Change
1Q24 vs.




Change
1Q24 vs.

(Dollars in millions)


1Q24


4Q23


4Q23


1Q23


1Q23

Interest-bearing deposits at banks


$      30,647


$      30,153


2

%


$      24,312


26

%

Trading account


105


123


-15



123


-14


Investment securities


28,587


27,490


4



27,622


3


Loans and leases, net of unearned discount













Commercial and industrial


56,821


55,420


3



52,510


8


Real estate - commercial


32,696


33,455


-2



35,245


-7


Real estate - consumer


23,136


23,339


-1



23,770


-3


Consumer


21,143


20,556


3



20,487


3


Total loans and leases, net


133,796


132,770


1



132,012


1


Total earning assets


$    193,135


$    190,536


1



$    184,069


5


 

Average earning assets increased $2.6 billion, or 1%, from the fourth quarter of 2023.

  • Average interest-bearing deposits at banks increased $494 million reflecting higher levels of borrowings partially offset by the purchase of investment securities and loan growth.
  • Average loans and leases increased $1.0 billion primarily reflective of growth in average commercial and industrial loans and leases and consumer loans, partially offset by declines in average commercial real estate and residential real estate loans. The growth in commercial and industrial loans spanned most industry types.
  • Average investment securities rose $1.1 billion primarily due to purchases of U.S. Treasury notes and fixed rate mortgage-backed securities during the first quarter of 2024.

Average earning assets increased $9.1 billion, or 5%, from the year-earlier first quarter.

  • Average interest-bearing deposits at banks increased $6.3 billion reflecting a rise in average deposits and higher levels of borrowings, partially offset by loan growth and purchases of investment securities.
  • Average loans and leases increased $1.8 billion predominantly due to higher average commercial and industrial loans and leases of $4.3 billion reflecting lending activities to financial and insurance industry customers and motor vehicle and recreational finance dealers, partially offset by a $2.5 billion decline in average commercial real estate loans.
  • Average investment securities increased $965 million due to the purchases of investment securities in 2023 and through the first quarter of 2024.

 Average Interest-bearing Liabilities


























Change
1Q24 vs.





Change
1Q24 vs.

(Dollars in millions)


1Q24


4Q23


4Q23


1Q23


1Q23

Interest-bearing deposits
















Savings and interest-checking deposits


$          94,867



$          93,365



2

%


$          88,053



8

%

Time deposits


20,583



21,224



-3



11,630



77


Total interest-bearing deposits


115,450



114,589



1



99,683



16


Short-term borrowings


6,228



5,156



21



4,994



25


Long-term borrowings


9,773



7,901



24



6,511



50


Total interest-bearing liabilities


$        131,451



$        127,646



3



$        111,188



18


 

Average interest-bearing liabilities increased $3.8 billion, or 3%, from the fourth quarter of 2023.

  • Average borrowings increased $2.9 billion predominantly due to the issuance of senior notes in the first quarter of 2024 and higher levels of average borrowings from the FHLB of New York.
  • Average interest-bearing deposits increased $861 million, reflective of a $1.6 billion increase in average non-brokered deposits.

Average interest-bearing liabilities increased $20.3 billion, or 18%, from the first quarter of 2023.

  • Average interest-bearing deposits rose $15.8 billion, including a $10.6 billion increase in average non-brokered deposits, reflecting customer demand for interest-bearing products amidst rising rates.
  • Average borrowings increased $4.5 billion reflecting the issuances of senior notes and other long-term debt since the first quarter of 2023 and increases in average borrowings from the FHLB of New York.

Provision for Credit Losses/Asset Quality


























Change
1Q24 vs.





Change
1Q24 vs.

(Dollars in millions)


1Q24


4Q23


4Q23


1Q23


1Q23

At end of quarter
















Nonaccrual loans


$      2,302



$      2,166



6

%


$      2,557



-10

%

Real estate and other foreclosed assets


38



39





44



-13


Total nonperforming assets


2,340



2,205



6



2,601



-10


Accruing loans past due 90 days or more (1)


297



339



-12



407



-27


Nonaccrual loans as % of loans outstanding


1.71

%


1.62

%





1.92

%




















Allowance for credit losses


$      2,191



$      2,129



3



$      1,975



11


Allowance for credit losses as % of loans outstanding


1.62

%


1.59

%





1.49

%




















For the period
















Provision for credit losses


$         200



$         225



-11



$         120



67


Net charge-offs


138



148



-7



70



97


Net charge-offs as % of average loans (annualized)


.42

%


.44

%





.22

%




____________________

(1)

Predominantly government-guaranteed residential real estate loans.

 

M&T recorded a provision for credit losses of $200 million in the first quarter of 2024 and $225 million in the immediately preceding quarter, compared with $120 million in the first quarter of 2023. 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.

Nonaccrual loans were $2.3 billion at March 31, 2024, $136 million higher than December 31, 2023 but $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 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.

 Noninterest Income


























Change
1Q24 vs.





Change
1Q24 vs.

(Dollars in millions)


1Q24


4Q23


4Q23


1Q23


1Q23

Mortgage banking revenues


$            104



$            112



-7

%


$               85



23

%

Service charges on deposit accounts


124



121



2



113



9


Trust income


160



159



1



194



-17


Brokerage services income


29



26



10



24



20


Trading account and non-hedging derivative gains


9



11



-19



12



-21


Gain (loss) on bank investment securities


2



4



-35






Other revenues from operations


152



145



4



159



-5


Total


$            580



$            578





$            587



-1


 

Noninterest income in the first quarter of 2024 was largely unchanged from 2023's fourth quarter.

  • Other revenues from operations increased $7 million resulting from a $25 million distribution from Bayview Lending Group LLC ("BLG") received in the first quarter of 2024 partially offset by declines in letter of credit and other credit-related fees, lower income earned from bank owned life insurance and a decline in merchant discount and credit card fees.
  • Mortgage banking revenues decreased $8 million reflecting a decline in gains on sale of commercial mortgage loans as a result of decreased origination volume, partially offset by higher residential mortgage banking revenues.

Noninterest income declined $7 million, or 1%, as compared with the year-earlier first quarter.

  • Trust income decreased $34 million reflecting lower revenues associated with the Company's Collective Investment Trust ("CIT") business of approximately $45 million following its sale in April 2023, partially offset by $11 million of higher revenues mainly attributable to higher sales and fees from the Company's global capital markets business.
  • Other revenues from operations declined $7 million reflecting lower gains on the sale of leased equipment.
  • Mortgage banking revenues rose $19 million due to higher servicing income related to the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023.
  • Service charges on deposit accounts increased $11 million predominantly due to a rise in commercial service charges.
  • Brokerage services income increased $5 million due to higher annuity sales.

 Noninterest Expense


























Change
1Q24 vs.





Change
1Q24 vs.

(Dollars in millions)


1Q24


4Q23


4Q23


1Q23


1Q23

Salaries and employee benefits


$          833



$          724



15

%


$          808



3

%

Equipment and net occupancy


129



134



-4



127



2


Outside data processing and software


120



114



5



106



13


Professional and other services


85



99



-13



125



-31


FDIC assessments


60



228



-74



30



101


Advertising and marketing


20



26



-21



31



-35


Amortization of core deposit and other intangible assets


15



15





17



-13


Other costs of operations


134



110



21



115



16


Total


$       1,396



$       1,450



-4



$       1,359



3


 

Noninterest expense aggregated $1.40 billion in the recent quarter, down from $1.45 billion in the fourth quarter of 2023.

  • 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 for the FDIC's updated loss estimates associated with certain failed banks.
  • Professional and other services expenses decreased $14 million reflecting the timing and level of consulting and legal-related fees.
  • Salaries and employee benefits expense increased $109 million reflecting annual merit increases and $99 million of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense.
  • Other costs of operations increased $24 million reflecting higher costs associated with the Company's supplemental executive retirement savings plan, losses on lease terminations related to certain vacated properties and incremental charitable contributions as compared with the fourth quarter of 2023.

Noninterest expense increased $37 million from the first quarter of 2023.

  • FDIC assessments increased $30 million reflecting the $29 million of estimated incremental special assessment expense recorded in the first quarter of 2024.
  • Salaries and employee benefits expenses increased $25 million reflecting higher salaries expense due to annual merit and other increases and a rise in incentive compensation, partially offset by lower staffing levels.
  • Other costs of operations increased $19 million as a result of higher amortization of capitalized servicing assets predominantly due to the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023.
  • Outside data processing and software increased $14 million due to higher software licensing and maintenance fees.
  • Professional and other services expense declined $40 million reflecting lower sub-advisory fees as a result of the sale of the CIT business.
  • Advertising and marketing expense decreased $11 million reflecting a general reduction in those related activities.

Income Taxes

The Company's effective tax rate was 20.0% in the first quarter of 2024, compared with 22.9% and 24.2% in the fourth quarter of 2023 and first quarter of 2023, respectively. The first quarter of 2024 income tax expense reflects a net discrete tax benefit related to the resolution of a tax matter inherited from the acquisition of People's United Financial, Inc.

 Capital


















1Q24



4Q23



1Q23


CET1


11.07

%


(1)

10.98

%



10.16

%


Tier 1 capital


12.37



(1)

12.29




11.48



Total capital


14.03



(1)

13.99




13.28



Tangible capital – common


8.03




8.20




7.58



____________________

(1)

March 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 $219 million and $25 million, respectively, for the quarter ended March 31, 2024. M&T did not repurchase any shares of its common stock in the first quarter of 2024 or the fourth quarter of 2023. In the first quarter of 2023, M&T repurchased 3,838,157 shares of its common stock in accordance with its capital plan for a total cost, including the share repurchase excise tax, of $600 million.

The CET1 capital ratio for M&T was estimated at 11.07% as of March 31, 2024. M&T's total risk-weighted assets at March 31, 2024 are estimated to be $155 billion.

Conference Call

Investors will have an opportunity to listen to M&T's conference call to discuss first 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 #MTBQ124. 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 Monday April 22, 2024 by calling (800) 839-2385, or (402) 220-7203 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 in 12 states across 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; the impact of the People's United Financial, Inc. acquisition; 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






March 31,




(Dollars in millions, except per share, shares in thousands)


2024


2023


Change

Performance










Net income


$        531



$        702



-24

%

Net income available to common shareholders


505



676



-25


Per common share:










Basic earnings


3.04



4.03



-25


Diluted earnings


3.02



4.01



-25


Cash dividends


1.30



1.30




Common shares outstanding:










Average - diluted (1)


167,084



168,410



-1


Period end (2)


166,724



165,865



1


Return on (annualized):










Average total assets


1.01

%


1.40

%




Average common shareholders' equity


8.14



11.74





Taxable-equivalent net interest income


$      1,692



$      1,832



-8


Yield on average earning assets


5.74

%


5.16

%




Cost of interest-bearing liabilities


3.26



1.86





Net interest spread


2.48



3.30





Contribution of interest-free funds


1.04



.74





Net interest margin


3.52



4.04





Net charge-offs to average total net loans (annualized)


.42



.22





Net operating results (3)










Net operating income


$        543



$        715



-24


Diluted net operating earnings per common share


3.09



4.09



-24


Return on (annualized):










Average tangible assets


1.08

%


1.49

%




Average tangible common equity


12.67



19.00





Efficiency ratio


60.8



55.5

















At March 31,



Loan quality


2024


2023


Change

Nonaccrual loans


$      2,302



$      2,557



-10

%

Real estate and other foreclosed assets


38



44



-13


Total nonperforming assets


$      2,340



$      2,601



-10


Accruing loans past due 90 days or more (4)


$        297



$        407



-27


Government guaranteed loans included in totals above:










Nonaccrual loans


$          62



$          42



47


Accruing loans past due 90 days or more


244



306



-20


Nonaccrual loans to total loans


1.71

%


1.92

%




Allowance for credit losses to total loans


1.62



1.49





____________________

(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 appears herein.

(4)

Predominantly residential real estate loans.

 

Financial Highlights, Five Quarter Trend





Three months ended



March 31,


December 31,


September 30,


June 30,


March 31,

(Dollars in millions, except per share, shares in thousands)

2024


2023


2023


2023


2023

Performance















Net income

$            531



$            482



$            690



$            867



$            702


Net income available to common shareholders

505



457



664



841



676


Per common share:















Basic earnings

3.04



2.75



4.00



5.07



4.03


Diluted earnings

3.02



2.74



3.98



5.05



4.01


Cash dividends

1.30



1.30



1.30



1.30



1.30


Common shares outstanding:















Average - diluted (1)

167,084



166,731



166,570



166,320



168,410


Period end (2)

166,724



166,149



165,970



165,894



165,865


Return on (annualized):















Average total assets

1.01

%


.92

%


1.33

%


1.70

%


1.40

%

Average common shareholders' equity

8.14



7.41



10.99



14.27



11.74


Taxable-equivalent net interest income

$          1,692



$          1,735



$          1,790



$          1,813



$          1,832


Yield on average earning assets

5.74

%


5.73

%


5.62

%


5.46

%


5.16

%

Cost of interest-bearing liabilities

3.26



3.17



2.83



2.43



1.86


Net interest spread

2.48



2.56



2.79



3.03



3.30


Contribution of interest-free funds

1.04



1.05



1.00



.88



.74


Net interest margin

3.52



3.61



3.79



3.91



4.04


Net charge-offs to average total net loans (annualized)

.42



.44



.29



.38



.22


Net operating results (3)















Net operating income

$            543



$            494



$            702



$            879



$            715


Diluted net operating earnings per common share

3.09



2.81



4.05



5.12



4.09


Return on (annualized):















Average tangible assets

1.08

%


.98

%


1.41

%


1.80

%


1.49

%

Average tangible common equity

12.67



11.70



17.41



22.73



19.00


Efficiency ratio

60.8



62.1



53.7



48.9



55.5






 March 31,


December 31,


September 30,


June 30,


March 31,

Loan quality

2024


2023


2023


2023


2023

Nonaccrual loans

$          2,302



$          2,166



$          2,342



$          2,435



$          2,557


Real estate and other foreclosed assets

38



39



37



43



44


Total nonperforming assets

$          2,340



$          2,205



$          2,379



$          2,478



$          2,601


Accruing loans past due 90 days or more (4)

$            297



$            339



$            354



$            380



$            407


Government guaranteed loans included in totals above:















Nonaccrual loans

$               62



$               53



$               40



$               40



$               42


Accruing loans past due 90 days or more

244



298



269



294



306


Nonaccrual loans to total loans

1.71

%


1.62

%


1.77

%


1.83

%


1.92

%

Allowance for credit losses to total loans

1.62



1.59



1.55



1.50



1.49


____________________

(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 appears herein.

(4)

Predominantly residential real estate loans.

 

Condensed Consolidated Statement of Income





Three months ended





March 31,




(Dollars in millions)

2024


2023


Change

Interest income

$     2,745



$     2,327



18

%

Interest expense

1,065



509



109


Net interest income

1,680



1,818



-8


Provision for credit losses

200



120



67


Net interest income after provision for credit losses

1,480



1,698



-13


Other income









Mortgage banking revenues

104



85



23


Service charges on deposit accounts

124



113



9


Trust income

160



194



-17


Brokerage services income

29



24



20


Trading account and non-hedging

     derivative gains

9



12



-21


Gain (loss) on bank investment securities

2






Other revenues from operations

152



159



-5


Total other income

580



587



-1


Other expense









Salaries and employee benefits

833



808



3


Equipment and net occupancy

129



127



2


Outside data processing and software

120



106



13


Professional and other services

85



125



-31


FDIC assessments

60



30



101


Advertising and marketing

20



31



-35


Amortization of core deposit and other

     intangible assets

15



17



-13


Other costs of operations

134



115



16


Total other expense

1,396



1,359



3


Income before income taxes

664



926



-28


Applicable income taxes

133



224



-41


Net income

$        531



$        702



-24

%

 

Condensed Consolidated Statement of Income, Five Quarter Trend




Three months ended



March 31,


December 31,


September 30,


June 30,


March 31,

(Dollars in millions)


2024


2023


2023


2023


2023

Interest income


$         2,745


$         2,740


$         2,641


$         2,516


$         2,327

Interest expense


1,065


1,018


866


717


509

Net interest income


1,680


1,722


1,775


1,799


1,818

Provision for credit losses


200


225


150


150


120

Net interest income after provision for credit losses


1,480


1,497


1,625


1,649


1,698

Other income











Mortgage banking revenues


104


112


105


107