NYSE$MTB

M&T Bank Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

M&T Bank reported an increase in net income compared to the previous quarter and year-over-year, driven by growth in net interest income and well-controlled expenses.

M&T Bank Corporation reported GAAP diluted earnings per common share of $3.53 for Q3 2022, a decrease compared to $3.69 in Q3 2021, but a significant increase compared to $1.08 in Q2 2022. GAAP-basis net income was $647 million, up from $495 million in the third quarter of 2021 and $218 million in the second quarter of 2022. The results reflect non-operating merger-related expenses associated with the acquisition of People's United Financial, Inc.

  • Net income increased by 31% compared to the third quarter of 2021.
  • Diluted earnings per common share decreased by 4% compared to the third quarter of 2021.
  • Taxable-equivalent net interest income increased by 74% compared to the third quarter of 2021.
  • The net interest margin increased to 3.68%, up from 2.74% in the corresponding quarter of 2021.

Headline financials

Total Revenue

$2.24B

Previous: $1.54B+45.9%
EPS (adj)

$3.83

Previous: $3.76+1.9%
Net Interest Margin

3.7%

Previous: 2.7%+34.3%
Efficiency Ratio

53.6%

Previous: 57.7%-7.1%
Free Cash Flow

$647M

Previous: $495M+30.5%
Net Income

$647M

Previous: $495M+30.5%
Operating Income

$2.04B

Previous: $1.39B+47.4%
Gross Profit

$2.21B

Previous: $1.47B+50.3%
Cash & Equivalents

$27.6B

Previous: $39.9B-30.8%
Total Assets

$198B

Previous: $152B+30.3%

Revenue & EPS history

M&T Bank · Revenue · Quarterly

$2.24B

Q3 2022+45.9%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

M&T Bank · $491M total across 4 segments · Q1 2023

  • Trust Income
    $194M
  • Other Revenues
    $160M
  • Deposit Service Charges
    $114M
  • Brokerage Services
    $24M

Forward guidance

M&T Bank is focused on integrating People's United, building a preeminent commercial bank across the eastern United States, and delivering success for consumers, small businesses, and communities across its expanded footprint.

Tailwinds

  • Continued integration work to build a preeminent commercial bank across the eastern United States.
  • Commitment to the success of consumers, small businesses and communities across our expanded footprint
  • Recent quarter gains in net operating income which are up 21% from the second quarter and 39% year over year.
  • Improvement reflects increases in taxable-equivalent net interest income of 19% and 74%
  • Low credit losses and well-controlled expenses.

Headwinds

  • Potential adverse reactions or changes to business or employee relationships
  • Integration efforts may be more difficult or time-consuming than anticipated
  • Profitability following the combination may be lower than expected including for possible reasons such as lower than expected revenues or higher or unexpected costs, charges or expenses resulting from the transaction
  • Unforeseen risks that may exist
  • Economic conditions including inflation and supply chain issues.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.6%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.2%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+9.7%

Q1 2022

Best reaction

-14.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.2%-0.4%-7.0%
Q1 2026+0.6%-0.4%-7.0%
Q3 2025-3.5%-1.8%+1.0%
Q2 2025+0.4%-1.5%+2.9%
Q1 2025+0.3%+1.4%+17.4%
Q4 2024-2.0%-1.3%-1.0%
Q3 2024+4.3%+2.5%+13.4%
Q2 2024+0.4%+4.6%-0.9%
Q1 2024+2.1%+6.6%+14.9%
Q4 2023+6.4%+8.3%+5.6%
Q3 2023-3.8%-10.3%+1.9%
Q2 2023+2.8%+3.7%-5.3%
Q1 2023+7.8%+6.4%+2.9%
Q4 2022+5.4%+6.3%+9.7%
Q3 2022-14.8%-13.8%-9.9%
Q2 2022+2.7%+4.7%+14.6%
Q1 2022+9.7%+7.4%+0.4%
Q4 2021-9.0%-6.4%+3.7%
Q3 2021+5.4%+4.9%+3.8%
Q2 2021-4.5%-2.1%+0.5%
Q1 2021-2.7%-0.5%+5.4%
Q4 2020-0.4%-4.5%+4.3%
Q3 2020+7.2%+0.3%+19.2%
Q2 2020+1.6%-0.6%-0.9%
Q1 2020-0.8%-0.4%-8.9%
Q4 2019+5.9%+5.5%+4.1%
Q3 2019-4.2%-1.6%+3.2%
Q2 2019-4.4%-4.6%-13.4%
Q1 2019+0.3%-0.8%-3.8%
Q4 2018+7.2%+7.9%+11.6%
Q3 2018+1.3%-0.5%+6.5%
Q2 2018+2.5%+3.6%+4.7%
Q1 2018-3.1%-0.9%+0.6%
Q4 2017+5.3%+5.4%+6.9%
Q3 2017-1.1%+0.5%-2.2%
Q2 2017-3.1%-3.1%-7.3%
Q1 2017+2.6%+4.0%+5.8%
Q4 2016+1.5%+3.2%+8.6%
Q3 2016+3.1%+3.2%+22.5%
Q2 2016-5.1%-4.5%-0.9%
Q1 2016+2.6%
Q4 2015+0.2%
Q3 2015-1.3%
Q2 2015+2.5%
Q1 2015-1.1%
Q4 2014-2.4%
Q3 2014-2.6%
Q2 2014-0.2%
Q1 2014+1.8%
Q4 2013-2.5%
Q3 2013-1.1%
Q2 2013+1.5%
Q1 2013-1.8%
Q4 2012-0.1%
Q3 2012+7.7%
Q2 2012+4.0%
Q1 2012+3.4%
Q4 2011+1.1%
Q3 2011-2.0%
Q2 2011-3.0%
Q1 2011+1.3%
Q4 2007-2.1%
Q4 2010-2.1%
Q4 2009-2.1%
Q3 2010-0.3%
Q2 2010+1.6%
Q1 2009+5.0%
Q1 2010-0.2%
Q3 2009+3.1%
Q3 2008+3.1%
Q4 2008+2.7%
Q2 2009+2.7%
Q2 2008+2.7%

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