M&T Bank Corporation (MTB): history, ownership, mission, how it works & makes money

A Brief History of H3

As of 2024, H3 has demonstrated significant growth and resilience in the financial sector. The following outlines key financial metrics and historical developments.

Financial Performance Overview

For the third quarter of 2024, H3 reported a net income of $721 million, reflecting a 10% increase from the previous quarter's income of $655 million. Year-to-date, net income for the nine months ended September 30, 2024, was $1.907 billion, down from $2.259 billion in the same period in 2023, marking a 16% decline.

Provision for Credit Losses

H3 recorded a provision for credit losses of $120 million in Q3 2024, down from $150 million in Q2 2024. For the nine-month period ended September 30, 2024, the provision totaled $470 million, compared to $420 million for the same period in 2023.

Loan Portfolio and Asset Quality

As of September 30, 2024, H3's nonaccrual loans totaled $1.926 billion, a decrease from $2.024 billion in Q2 2024 and $2.342 billion in Q3 2023. Total nonperforming assets were $1.963 billion as of the same date.

Core Deposits and Funding Sources

H3 reported core deposits of $150.2 billion as of September 30, 2024, an increase from $146.5 billion at the end of 2023. The company also had long-term borrowings of $11.6 billion and short-term borrowings of $2.6 billion as of the same date.

Market Position and Strategic Initiatives

H3 continues to strengthen its market position through strategic initiatives aimed at enhancing customer service and expanding its service offerings. This includes improvements in digital banking solutions and the introduction of new financial products tailored to customer needs.

As of September 30, 2024, the company's total assets were reported at $211.785 billion, compared to $208.264 billion at the end of 2023.

A Who Owns M&T Bank Corporation (MTB)

Major Shareholders

As of 2024, M&T Bank Corporation (MTB) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. The largest shareholders of M&T Bank Corporation are as follows:

Institutional Ownership

Institutional investors play a significant role in the ownership of M&T Bank Corporation. As of the latest reports, approximately 85% of the company's shares are held by institutional investors. The following table summarizes the top institutional owners:

Insider Ownership

Insider ownership is also a factor in M&T Bank Corporation's ownership structure. As of 2024, insiders own approximately 1.5% of the total shares outstanding. Key insiders include:

Share Performance

M&T Bank Corporation's stock has shown resilience in the market. As of September 30, 2024, the stock price was approximately $166.40, reflecting a year-to-date increase of 12.5%. The following table outlines the stock performance over the past year:

Dividends

M&T Bank Corporation has a history of paying dividends to its shareholders. The following table summarizes the dividend payments for the past three quarters:

Recent Developments

In 2024, M&T Bank Corporation repurchased approximately 1,190,054 shares of its common stock at an average cost of $166.40 per share, amounting to a total cost of $200 million. This buyback reflects the company's strategy to enhance shareholder value.

M&T Bank Corporation (MTB) Mission Statement

Overview

M&T Bank Corporation's mission statement emphasizes its commitment to providing exceptional customer service and fostering long-term relationships with its clients. The bank aims to be a trusted financial partner by offering a diverse range of financial products and services to meet the needs of individuals, businesses, and communities.

Core Values

• Customer-Centric Approach: M&T Bank focuses on delivering personalized solutions that enhance customer satisfaction.
• Integrity: The bank maintains high ethical standards in all its operations.
• Community Commitment: M&T is dedicated to supporting the communities it serves through various initiatives and partnerships.
• Innovation: The bank embraces technology to improve customer experiences and operational efficiency.

Financial Performance Metrics

As of September 30, 2024, M&T Bank Corporation reported the following financial metrics:

Core Deposits

M&T Bank's core deposits have shown a significant increase, reflecting the bank's strength in customer relationships:

Capital Ratios

M&T Bank maintains strong capital ratios to ensure financial stability and compliance with regulatory requirements:

Share Repurchases

M&T Bank has actively managed its capital through share repurchase programs:

Tax Information

The effective tax rates for M&T Bank in recent quarters are as follows:

Conclusion

The mission statement of M&T Bank Corporation reflects its commitment to customer service, integrity, and community involvement while maintaining robust financial health as evidenced by its performance metrics, capital ratios, and deposit growth.

How M&T Bank Corporation (MTB) Works

Company Overview

M&T Bank Corporation operates as a bank holding company, providing a wide range of financial services through its subsidiaries. The company primarily focuses on commercial banking, retail banking, and wealth management services. As of September 30, 2024, M&T Bank had total assets of $211 billion.

Financial Performance

As of September 30, 2024, M&T Bank Corporation reported the following financial results:

Loan Portfolio

M&T Bank's loan portfolio comprises various types of loans. As of September 30, 2024, the composition was as follows:

Deposits and Funding

M&T Bank's primary funding source is its core deposits, which totaled $150.2 billion as of September 30, 2024. This represents an increase from $146.5 billion at the end of 2023. The bank also utilizes short-term and long-term borrowings to supplement its funding. The following table outlines the funding sources:

Capital Ratios

M&T Bank is required to maintain certain capital ratios as per regulatory standards. As of September 30, 2024, the capital ratios are as follows:

Income Taxes

In the third quarter of 2024, M&T Bank reported an income tax expense of $188 million, with an effective tax rate of 20.7%. For the nine months ended September 30, 2024, the income tax expense totaled $521 million, compared to $734 million in the same period of 2023.

Credit Losses and Provisions

The provision for credit losses for the nine months ended September 30, 2024, was $470 million, up from $420 million in 2023. The net charge-offs for the third quarter of 2024 were $120 million, with an annualized percentage of average loans at 0.35%.

Shareholder Equity and Stock Repurchase

As of September 30, 2024, M&T Bank's total shareholders' equity amounted to $28.9 billion. The bank repurchased 1,190,054 shares of common stock at an average cost per share of $166.40, totaling $200 million in the recent quarter. The dividends paid per common share were $1.35.

Market Position and Competition

M&T Bank operates in a competitive banking environment, facing competition from various financial institutions. The bank's geographical footprint has expanded, contributing to a diverse customer base. The company emphasizes customer service and community involvement, which are integral to its business strategy.

How M&T Bank Corporation (MTB) Makes Money

Net Interest Income

M&T Bank's primary source of revenue is net interest income, which for the third quarter of 2024 was $1,739 million on a taxable-equivalent basis, slightly up from $1,731 million in the previous quarter. For the nine months ended September 30, 2024, net interest income totaled $5,162 million, down from $5,434 million in the same period in 2023, reflecting a decline of 5% year-over-year.

Other Income

Other income, which includes service charges, trading revenues, and investment income, amounted to $606 million in the third quarter of 2024, an increase from $584 million in the second quarter. For the nine-month period, other income was $1,770 million, a decrease from $1,950 million in the prior year.

Provision for Credit Losses

M&T Bank recorded a provision for credit losses of $120 million in Q3 2024, down from $150 million in the previous quarter. For the nine months ending September 30, 2024, the provision was $470 million, compared to $420 million for the same period in 2023.

Expenses

Total expenses for the third quarter of 2024 were $1,303 million, a slight increase from $1,297 million in Q2 2024. Year-to-date, total expenses reached $3,996 million, compared to $3,930 million for the same period in 2023.

Net Income

M&T Bank reported net income of $721 million for the third quarter of 2024, a 10% increase from $655 million in the second quarter. For the nine months ending September 30, 2024, net income was $1,907 million, down from $2,259 million in the same period in 2023.

Key Financial Metrics

Funding Sources

M&T Bank's funding relies heavily on core deposits, which totaled $150.2 billion as of September 30, 2024, an increase from $146.5 billion at December 31, 2023. The bank also utilizes short-term and long-term wholesale borrowings, which amounted to $11.6 billion and $2.6 billion, respectively, as of September 30, 2024.

Capital Structure

The company's capital strategy includes the issuance of subordinated capital notes and preferred stock. As of September 30, 2024, M&T had $2.394 billion in preferred stock and $18.659 billion in retained earnings.

Shareholder Returns

M&T Bank declared cash dividends of $1.35 per share for Q3 2024, maintaining the same level from previous quarters.

Market Position

M&T Bank's efficiency ratio stood at 55.0% for Q3 2024, indicating the percentage of revenue consumed by operating expenses. This ratio is crucial for assessing operational efficiency and profitability.

Updated on 16 Nov 2024

Resources:

1. M&T Bank Corporation (MTB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of M&T Bank Corporation (MTB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View M&T Bank Corporation (MTB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.