EX-99.1 2 q12024ex991release.htm EX-99.1 Document
Exhibit 99.1
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News Release
 One M&T Plaza, Buffalo, NY 14203April 15, 2024
M&T Bank Corporation (NYSE:MTB) announces first quarter 2024 results
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)1Q244Q231Q23
Earnings Highlights
Net interest income$1,680 $1,722 $1,818 
Taxable-equivalent adjustment12 13 14 
Net interest income - taxable-equivalent1,692 1,735 1,832 
Provision for credit losses200 225 120 
Noninterest income580 578 587 
Noninterest expense1,396 1,450 1,359 
Net income531 482 702 
Net income available to common shareholders - diluted505 457 676 
Diluted earnings per common share3.02 2.74 4.01 
Return on average assets - annualized1.01 %.92 %1.40 %
Return on average common shareholders' equity - annualized8.14 7.41 11.74 
Average Balance Sheet
Total assets$211,478 $208,752 $202,599 
Interest-bearing deposits at banks30,647 30,153 24,312 
Investment securities28,587 27,490 27,622 
Loans and leases, net of unearned discount133,796 132,770 132,012 
Deposits164,065 164,713 161,537 
Borrowings16,001 13,057 11,505 
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin3.52 %3.61 %4.04 %
Efficiency ratio60.8 62.1 55.5 
Net charge-offs to average total loans - annualized.42 .44 .22 
Allowance for credit losses to total loans1.62 1.59 1.49 
Nonaccrual loans to total loans1.71 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

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First Quarter 2024 Results




 Non-GAAP Measures (1)
Change 1Q24 vs.Change 1Q24 vs.
(Dollars in millions, except per share data)1Q244Q234Q231Q231Q23
Net operating income$543 $494 10 %$715 -24 %
Diluted net operating earnings per common share3.09 2.81 10 4.09 -24 
Annualized return on average tangible assets1.08 %.98 %1.49 %
Annualized return on average tangible common equity12.67 11.70 19.00 
Efficiency ratio60.8 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)1Q244Q234Q231Q231Q23
Average earning assets$193,135 $190,536 1 %$184,069 5 %
Average interest-bearing liabilities131,451 127,646 3 111,188 18 
Net interest income ̶ taxable-equivalent1,692 1,735 -2 1,832 -8 
Yield on average earning assets5.74 %5.73 %5.16 %
Cost of interest-bearing liabilities3.26 3.17 1.86 
Net interest spread2.48 2.56 3.30 
Net interest margin3.52 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.
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First Quarter 2024 Results

•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)1Q244Q234Q231Q231Q23
Interest-bearing deposits at banks$30,647 $30,153 2 %$24,312 26 %
Trading account105 123 -15 123 -14 
Investment securities28,587 27,490 4 27,622 3 
Loans and leases, net of unearned discount
Commercial and industrial56,821 55,420 3 52,510 8 
Real estate - commercial32,696 33,455 -2 35,245 -7 
Real estate - consumer23,136 23,339 -1 23,770 -3 
Consumer21,143 20,556 3 20,487 3 
Total loans and leases, net133,796 132,770 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.

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First Quarter 2024 Results

 Average Interest-bearing Liabilities
Change 1Q24 vs.Change 1Q24 vs.
(Dollars in millions)1Q244Q234Q231Q231Q23
Interest-bearing deposits
Savings and interest-checking deposits$94,867 $93,365 2 %$88,053 8 %
Time deposits20,583 21,224 -3 11,630 77 
Total interest-bearing deposits115,450 114,589 1 99,683 16 
Short-term borrowings6,228 5,156 21 4,994 25 
Long-term borrowings9,773 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.
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First Quarter 2024 Results

Provision for Credit Losses/Asset Quality
Change 1Q24 vs.Change 1Q24 vs.
(Dollars in millions)1Q244Q234Q231Q231Q23
At end of quarter
Nonaccrual loans$2,302 $2,166 6 %$2,557 -10 %
Real estate and other foreclosed assets38 39 — 44 -13 
Total nonperforming assets2,340 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 outstanding1.71 %1.62 %1.92 %
Allowance for credit losses$2,191 $2,129 3 $1,975 11 
Allowance for credit losses as % of loans outstanding1.62 %1.59 %1.49 %
For the period
Provision for credit losses$200 $225 -11 $120 67 
Net charge-offs138 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.
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First Quarter 2024 Results

 Noninterest Income
Change 1Q24 vs.Change 1Q24 vs.
(Dollars in millions)1Q244Q234Q231Q231Q23
Mortgage banking revenues$104 $112 -7 %$85 23 %
Service charges on deposit accounts124 121 2 113 9 
Trust income160 159 1 194 -17 
Brokerage services income29 26 10 24 20 
Trading account and non-hedging derivative gains9 11 -19 12 -21 
Gain (loss) on bank investment securities2 4 -35 — — 
Other revenues from operations152 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.


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First Quarter 2024 Results

 Noninterest Expense
Change 1Q24 vs.Change 1Q24 vs.
(Dollars in millions)1Q244Q234Q231Q231Q23
Salaries and employee benefits$833 $724 15 %$808 3 %
Equipment and net occupancy129 134 -4 127 2 
Outside data processing and software120 114 5 106 13 
Professional and other services85 99 -13 125 -31 
FDIC assessments60 228 -74 30 101 
Advertising and marketing20 26 -21 31 -35 
Amortization of core deposit and other intangible assets15 15 — 17 -13 
Other costs of operations134 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.


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First Quarter 2024 Results

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
1Q244Q231Q23
CET111.07 %(1)10.98 %10.16 %
Tier 1 capital12.37 (1)12.29 11.48 
Total capital14.03 (1)13.99 13.28 
Tangible capital – common8.03 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.


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First Quarter 2024 Results

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.
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First Quarter 2024 Results

Financial Highlights
Three months ended
March 31,
(Dollars in millions, except per share, shares in thousands)20242023Change
Performance
Net income$531 $702 -24 %
Net income available to common shareholders505 676 -25 
Per common share:
Basic earnings3.04 4.03 -25 
Diluted earnings3.02 4.01 -25 
Cash dividends1.30 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 assets1.01 %1.40 %
Average common shareholders' equity8.14 11.74 
Taxable-equivalent net interest income$1,692 $1,832 -8 
Yield on average earning assets5.74 %5.16 %
Cost of interest-bearing liabilities3.26 1.86 
Net interest spread2.48 3.30 
Contribution of interest-free funds1.04 .74 
Net interest margin3.52 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 share3.09 4.09 -24 
Return on (annualized):
Average tangible assets1.08 %1.49 %
Average tangible common equity12.67 19.00 
Efficiency ratio60.8 55.5 
At March 31,
Loan quality20242023Change
Nonaccrual loans$2,302 $2,557 -10 %
Real estate and other foreclosed assets38 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 more244 306 -20 
Nonaccrual loans to total loans1.71 %1.92 %
Allowance for credit losses to total loans1.62 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 appear on page 17.
(4) Predominantly residential real estate loans.

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First Quarter 2024 Results

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)20242023202320232023
Performance
Net income$531 $482 $690 $867 $702 
Net income available to common shareholders505 457 664 841 676 
Per common share:
Basic earnings3.04 2.75 4.00 5.07 4.03 
Diluted earnings3.02 2.74 3.98 5.05 4.01 
Cash dividends1.30 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 assets1.01 %.92 %1.33 %1.70 %1.40 %
Average common shareholders' equity8.14 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 assets5.74 %5.73 %5.62 %5.46 %5.16 %
Cost of interest-bearing liabilities3.26 3.17 2.83 2.43 1.86 
Net interest spread2.48 2.56 2.79 3.03 3.30 
Contribution of interest-free funds1.04 1.05 1.00 .88 .74 
Net interest margin3.52 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 share3.09 2.81 4.05 5.12 4.09 
Return on (annualized):
Average tangible assets1.08 %.98 %1.41 %1.80 %1.49 %
Average tangible common equity12.67 11.70 17.41 22.73 19.00 
Efficiency ratio60.8 62.1 53.7 48.9 55.5 
 March 31, December 31,September 30,June 30,March 31,
Loan quality20242023202320232023
Nonaccrual loans$2,302 $2,166 $2,342 $2,435 $2,557 
Real estate and other foreclosed assets38 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 more244 298 269 294 306 
Nonaccrual loans to total loans1.71 %1.62 %1.77 %1.83 %1.92 %
Allowance for credit losses to total loans1.62 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 appear on page 17.
(4) Predominantly residential real estate loans.
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First Quarter 2024 Results

Condensed Consolidated Statement of Income
Three months ended
March 31,
(Dollars in millions)20242023Change
Interest income$2,745 $2,327 18 %
Interest expense1,065 509 109 
Net interest income1,680 1,818 -8 
Provision for credit losses200 120 67 
Net interest income after provision for credit losses1,480 1,698 -13 
Other income
Mortgage banking revenues104 85 23 
Service charges on deposit accounts124 113 9 
Trust income160 194 -17 
Brokerage services income29 24 20 
Trading account and non-hedging
derivative gains		9 12 -21 
Gain (loss) on bank investment securities2 — — 
Other revenues from operations152 159 -5 
Total other income580 587 -1 
Other expense
Salaries and employee benefits833 808 3 
Equipment and net occupancy129 127 2 
Outside data processing and software120 106 13 
Professional and other services85 125 -31 
FDIC assessments60 30 101 
Advertising and marketing20 31 -35 
Amortization of core deposit and other
intangible assets		15 17 -13 
Other costs of operations134 115 16 
Total other expense1,396 1,359 3 
Income before income taxes664 926 -28 
Applicable income taxes133 224 -41 
Net income$531 $702 -24 %

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First Quarter 2024 Results

Condensed Consolidated Statement of Income, Five Quarter Trend
Three months ended
March 31,December 31,September 30,June 30,March 31,
(Dollars in millions)20242023202320232023
Interest income$2,745 $2,740 $2,641 $2,516 $2,327 
Interest expense1,065 1,018 866 717 509 
Net interest income1,680 1,722 1,775 1,799 1,818 
Provision for credit losses200 225 150 150 120 
Net interest income after provision for credit losses1,480 1,497 1,625 1,649 1,698 
Other income
Mortgage banking revenues104 112 105 107 85 
Service charges on deposit accounts124 121 121 119 113 
Trust income160 159 155 172 194 
Brokerage services income29 26 27 25 24 
Trading account and non-hedging
derivative gains		9 11 9 17 12 
Gain (loss) on bank investment securities2 4 — 1 — 
Other revenues from operations152 145 143 362 159 
Total other income580 578 560 803 587 
Other expense
Salaries and employee benefits833 724 727 738 808 
Equipment and net occupancy129 134 131 129 127 
Outside data processing and software120 114 111 106 106 
Professional and other services85 99 89 100 125 
FDIC assessments60 228 29 28 30 
Advertising and marketing20 26 23 28 31 
Amortization of core deposit and other
intangible assets		15 15 15 15 17 
Other costs of operations134 110 153 149 115 
Total other expense1,396 1,450 1,278 1,293 1,359 
Income before income taxes664 625 907 1,159 926 
Applicable income taxes133 143 217 292 224 
Net income$531 $482 $690 $867 $702 

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First Quarter 2024 Results

Condensed Consolidated Balance Sheet
March 31,
(Dollars in millions)20242023Change
ASSETS
Cash and due from banks$1,695 $1,818 -7 %
Interest-bearing deposits at banks32,144 22,306 44 
Trading account99 165 -40 
Investment securities28,496 28,443 — 
Loans and leases, net of unearned discount:
Commercial and industrial57,897 53,934 7 
Real estate - commercial32,416 34,897 -7 
Real estate - consumer23,076 23,790 -3 
Consumer21,584 20,317 6 
Total loans and leases, net134,973 132,938 2 
Less: allowance for credit losses2,191 1,975 11 
Net loans and leases132,782 130,963 1 
Goodwill8,465 8,490 — 
Core deposit and other intangible assets132 192 -31 
Other assets11,324 10,579 7 
Total assets$215,137 $202,956 6 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits$50,578 $59,955 -16 %
Interest-bearing deposits116,618 99,120 18 
Total deposits167,196 159,075 5 
Short-term borrowings4,795 6,995 -31 
Accrued interest and other liabilities4,527 4,046 12 
Long-term borrowings11,450 7,463 53 
Total liabilities187,968 177,579 6 
Shareholders' equity:
Preferred2,011 2,011 — 
Common25,158 23,366 8 
Total shareholders' equity27,169 25,377 7 
Total liabilities and shareholders' equity$215,137 $202,956 6 %
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First Quarter 2024 Results

Condensed Consolidated Balance Sheet, Five Quarter Trend
March 31,December 31,September 30,June 30,March 31,
(Dollars in millions)20242023202320232023
ASSETS
Cash and due from banks$1,695 $1,731 $1,769 $1,848 $1,818 
Interest-bearing deposits at banks32,144 28,069 30,114 27,107 22,306 
Trading account99 106 137 137 165 
Investment securities28,496 26,897 27,336 27,917 28,443 
Loans and leases, net of unearned discount:
Commercial and industrial57,897 57,010 54,891 54,699 53,934 
Real estate - commercial32,416 33,003 33,741 34,634 34,897 
Real estate - consumer23,076 23,264 23,448 23,762 23,790 
Consumer21,584 20,791 20,275 20,249 20,317 
Total loans and leases, net134,973 134,068 132,355 133,344 132,938 
Less: allowance for credit losses2,191 2,129 2,052 1,998 1,975 
Net loans and leases132,782 131,939 130,303 131,346 130,963 
Goodwill8,465 8,465 8,465 8,465 8,490 
Core deposit and other intangible assets132 147 162 177 192 
Other assets11,324 10,910 10,838 10,675 10,579 
Total assets$215,137 $208,264 $209,124 $207,672 $202,956 
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits$50,578 $49,294 $53,787 $54,938 $59,955 
Interest-bearing deposits116,618 113,980 110,341 107,120 99,120 
Total deposits167,196 163,274 164,128 162,058 159,075 
Short-term borrowings4,795 5,316 6,731 7,908 6,995 
Accrued interest and other liabilities4,527 4,516 4,946 4,488 4,046 
Long-term borrowings11,450 8,201 7,123 7,417 7,463 
Total liabilities187,968 181,307 182,928 181,871 177,579 
Shareholders' equity:
Preferred2,011 2,011 2,011 2,011 2,011 
Common25,158 24,946 24,185 23,790 23,366 
Total shareholders' equity27,169 26,957 26,196 25,801 25,377 
Total liabilities and shareholders' equity$215,137 $208,264 $209,124 $207,672 $202,956 
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First Quarter 2024 Results

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates
Three months endedChange in balance
March 31,December 31,March 31,March 31, 2024 from
202420232023December 31,March 31,
(Dollars in millions)BalanceRateBalanceRateBalanceRate20232023
ASSETS
Interest-bearing deposits at banks$30,647 5.49 %$30,153 5.48 %$24,312 4.64 %2 %26 %
Federal funds sold and agreements to
     resell securities		— 5.80 — 5.79 — 4.89 -78 -92 
Trading account105 3.42 123 3.80 123 2.32 -15 -14 
Investment securities28,587 3.30 27,490 3.13 27,622 3.00 4 3 
Loans and leases, net of unearned discount:
Commercial and industrial56,821 6.99 55,420 7.01 52,510 6.30 3 8 
Real estate - commercial32,696 6.36 33,455 6.54 35,245 5.89 -2 -7 
Real estate - consumer23,136 4.28 23,339 4.25 23,770 3.96 -1 -3 
Consumer21,143 6.54 20,556 6.42 20,487 5.67 3 3 
Total loans and leases, net133,796 6.32 132,770 6.33 132,012 5.70 1 1 
Total earning assets193,135 5.74 190,536 5.73 184,069 5.16 1 5 
Goodwill8,465 8,465 8,490 — — 
Core deposit and other intangible assets140 154 201 -10 -30 
Other assets9,738 9,597 9,839 1 -1 
Total assets$211,478 $208,752 $202,599 1 %4 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking deposits$94,867 2.61 $93,365 2.58 $88,053 1.28 2 %8 %
Time deposits20,583 4.41 21,224 4.30 11,630 3.11 -3 77 
Total interest-bearing deposits115,450 2.93 114,589 2.90 99,683 1.49 1 16 
Short-term borrowings6,228 5.42 5,156 5.27 4,994 4.69 21 25 
Long-term borrowings9,773 5.81 7,901 5.70 6,511 5.27 24 50 
Total interest-bearing liabilities131,451 3.26 127,646 3.17 111,188 1.86 3 18 
Noninterest-bearing deposits48,615 50,124 61,854 -3 -21 
Other liabilities4,393 4,482 4,180 -2 5 
Total liabilities184,459 182,252 177,222 1 4 
Shareholders' equity27,019 26,500 25,377 2 6 
Total liabilities and shareholders' equity$211,478 $208,752 $202,599 1 %4 %
Net interest spread2.48 2.56 3.30 
Contribution of interest-free funds1.04 1.05 .74 
Net interest margin3.52 %3.61 %4.04 %
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First Quarter 2024 Results

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
Three months ended
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
(Dollars in millions, except per share)
Income statement data
Net income
Net income$531 $482 $690 $867 $702 
Amortization of core deposit and other intangible assets (1)12 12 12 12 13 
Net operating income$543 $494 $702 $879 $715 
Earnings per common share
Diluted earnings per common share$3.02 $2.74 $3.98 $5.05 $4.01 
Amortization of core deposit and other intangible assets (1).07 .07 .07 .07 .08 
Diluted net operating earnings per common share$3.09 $2.81 $4.05 $5.12 $4.09 
Other expense
Other expense$1,396 $1,450 $1,278 $1,293 $1,359 
Amortization of core deposit and other intangible assets(15)(15)(15)(15)(17)
Noninterest operating expense$1,381 $1,435 $1,263 $1,278 $1,342 
Efficiency ratio
Noninterest operating expense (numerator)$1,381 $1,435 $1,263 $1,278 $1,342 
Taxable-equivalent net interest income$1,692 $1,735 $1,790 $1,813 $1,832 
Other income580 578 560 803 587 
Less: Gain (loss) on bank investment securities2 4 — 1 — 
Denominator$2,270 $2,309 $2,350 $2,615 $2,419 
Efficiency ratio60.8 %62.1 %53.7 %48.9 %55.5 %
Balance sheet data
Average assets
Average assets$211,478 $208,752 $205,791 $204,376 $202,599 
Goodwill(8,465)(8,465)(8,465)(8,473)(8,490)
Core deposit and other intangible assets(140)(154)(170)(185)(201)
Deferred taxes33 39 43 46 49 
Average tangible assets$202,906 $200,172 $197,199 $195,764 $193,957 
Average common equity
Average total equity$27,019 $26,500 $26,020 $25,685 $25,377 
Preferred stock(2,011)(2,011)(2,011)(2,011)(2,011)
Average common equity25,008 24,489 24,009 23,674 23,366 
Goodwill(8,465)(8,465)(8,465)(8,473)(8,490)
Core deposit and other intangible assets(140)(154)(170)(185)(201)
Deferred taxes33 39 43 46 49 
Average tangible common equity$16,436 $15,909 $15,417 $15,062 $14,724 
At end of quarter
Total assets
Total assets$215,137 $208,264 $209,124 $207,672 $202,956 
Goodwill(8,465)(8,465)(8,465)(8,465)(8,490)
Core deposit and other intangible assets(132)(147)(162)(177)(192)
Deferred taxes34 37 41 44 47 
Total tangible assets$206,574 $199,689 $200,538 $199,074 $194,321 
Total common equity
Total equity$27,169 $26,957 $26,197 $25,801 $25,377 
Preferred stock(2,011)(2,011)(2,011)(2,011)(2,011)
Common equity25,158 24,946 24,186 23,790 23,366 
Goodwill(8,465)(8,465)(8,465)(8,465)(8,490)
Core deposit and other intangible assets(132)(147)(162)(177)(192)
Deferred taxes34 37 41 44 47 
Total tangible common equity$16,595 $16,371 $15,600 $15,192 $14,731 

(1) After any related tax effect.
17