- M&T Bank (NYSE:MTB) Q1 earnings beat analysts estimate as the company recaptured some of its previous credit loss reserves due to the improved macroeconomic outlook. Net interest fell Q/Q and loans on nonaccrual status increased.
- MTB stock falls 1.4% in premarket trading.
- Q1 net operating EPS of $3.41 beats the average analyst estimate of $2.98; compares with $3.54 in Q4 2020 and $1.95 in Q1 2020.
- Provision for credit losses recapture of $25M compared with provisions of$75M in Q4 2020 and $250M a year ago.
- Q1 net interest income on a taxable equivalent basis was $985M, down from $993M in the prior quarter and up from $982M in the year-ago quarter.
- Q1 net interest margin (taxable equivalent basis) of 2.97% declined from 3.00% in Q4 and 3.65% in Q1 2020.
- Loans classified as nonaccrual totaled $1.96B, or 1.97% of total loans outstanding as of March 31, 2021, vs. $1.89B or 1.92% at Dec. 31, 2020 and $1.06B, or 1.13% at March 31, 2020. the increase reflects the continuing impact of the pandemic on borrowers' ability to make contractual payments on their loans, most notably loans in the hospitality sector.
- Net charge-offs, as a percentage of average loans (annualized) was 0.31% in Q1 2021 vs. 0.39% in Q4 and 0.22% in Q1 2020.
- Loans and leases, net of unearned discount, were $99.3B at March 31, 2021, up from $98.5B at Dec. 31, 2020.
- Total deposits rose to $128.5B at March 31, 2021 vs. $119.8B at Dec. 31, 2020.
- Conference call at 11:00 AM ET.
- Previously (April 19): M&T Bank EPS beats by $0.43, beats on revenue