On October 18, 2023, M&T Bank Corp (MTB, Financial) announced its third-quarter earnings for 2023. Despite challenges in the commercial real estate sector, the bank reported a net income of $690 million, or $3.98 per diluted share. The bank's net interest income stood at $1,775 million, a slight decrease from the previous quarter's $1,799 million. However, the bank's capital position remains strong, with the CET1 capital ratio increasing 35 basis points to an estimated 10.94% at the end of September 2023.
Financial Highlights
The bank's average loans and leases in Q3 2023 decreased by 1% from the previous quarter, reflecting a $714 million decline in average commercial real estate loan balances. Despite this, the level of nonaccrual loans improved to 1.77% of loans outstanding at the end of September 2023, compared with 1.83% at the end of June 2023. The bank's net charge-offs of $96 million, or 29 basis points, were below the company's long-term average net charge-off rate.
Commentary from the CFO
The third quarter results reflect the stability of M&T's diverse banking franchise and the ability to consistently generate capital for our shareholders while continuing to invest in the systems and resources needed to best serve our customers. Our credit metrics reflect a decline in nonaccrual loans and net charge-offs that remain below M&T's long-term average. The comparative strength of our financial position in the industry will continue to enable us to improve the communities in which we serve and the lives of our customers. Thank you to our employees for their commitment to delivering for our customers each and every day.” - Daryl N. Bible, M&T's Chief Financial Officer
Looking Ahead
Despite the challenges in the commercial real estate sector, M&T Bank Corp (MTB, Financial) remains committed to its customers and shareholders. The bank's strong capital position and improved credit metrics indicate its resilience and ability to navigate through economic uncertainties. As the bank continues to invest in its systems and resources, it aims to further strengthen its financial position and deliver value to its shareholders.
