BUFFALO, N.Y., Oct. 19, 2022 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:MTB) today reported its results of operations for the quarter ended September 30, 2022.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.53 in the third quarter of 2022, compared with $3.69 in the year-earlier quarter and $1.08 in the second quarter of 2022. GAAP-basis net income was $647 million in the recent quarter, $495 million in the third quarter of 2021 and $218 million in the second 2022 quarter. GAAP-basis net income expressed as an annualized rate of return on average assets was 1.28% in each of the third quarters of 2022 and 2021, and .42% in the second quarter of 2022. That net income produced a return on average common shareholders' equity of 10.43% in the recent quarter, 12.16% in the similar 2021 period and 3.21% in the second quarter of 2022. The results reflect non-operating merger-related expenses associated with the acquisition of People's United Financial, Inc. ("People's United") of $53 million ($39 million after-tax effect, or $0.22 of diluted earnings per common share) in the recent quarter, compared with $9 million ($7 million after-tax effect, or $.05 of diluted earnings per common share) in the year-earlier quarter and $465 million ($346 million after-tax effect, or $1.94 of diluted earnings per share) in the second quarter of 2022.

Darren J. King, Chief Financial Officer, commenting on M&T's results noted, "We are pleased with the recent quarter gains in net operating income which are up 21% from the second quarter and 39% year over year. That improvement reflects increases in taxable-equivalent net interest income of 19% and 74%, coupled with low credit losses and well-controlled expenses. We are excited to continue our integration work to build a preeminent commercial bank across the eastern United States and we are committed to the success of the consumers, small businesses and communities across our expanded footprint."

Earnings Highlights

										Change 3Q22 vs.
($ in millions, except per share data)	3Q22			3Q21			2Q22			3Q21			2Q22

Net income	$	647		$	495		$	218			31	%		197	%
Net income available to common shareholders ̶ diluted	$	621		$	476		$	192			30	%		223	%
Diluted earnings per common share	$	3.53		$	3.69		$	1.08			-4	%		227	%
Annualized return on average assets		1.28	%		1.28	%		.42	%
Annualized return on average common equity		10.43	%		12.16	%		3.21	%

For the first nine months of 2022, diluted earnings per common share were $7.14, compared with $10.43 in the year-earlier period. GAAP-basis net income was $1.23 billion and $1.40 billion in the first three quarters of 2022 and 2021, respectively. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the nine-month period ended September 30, 2022 was .87% and 7.24%, respectively, compared with 1.24% and 11.76%, respectively, in the similar 2021 period.

Supplemental Reporting of Non-GAAP Results of Operations. 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. The amounts of such "nonoperating" expenses are presented in the tables that accompany this release.

Merger-related expenses generally consist of professional services and other temporary help fees associated with actual or planned conversions of systems and/or integration of operations, costs related to terminations of existing contractual arrangements to purchase various services, severance and travel costs. Reflected in merger-related expenses in the second quarter of 2022 was a provision for credit losses of $242 million. GAAP requires that acquired loans be recorded at estimated fair value, which includes the use of interest rate and expected credit loss assumptions to forecast estimated cash flows. GAAP also provides that an allowance for credit losses on loans acquired, but not classified as purchased credit deteriorated ("PCD") also be recognized. Accordingly, M&T recorded a $242 million provision related to such loans obtained in the People's United acquisition. Given the requirement to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that provision to be a merger-related expense. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.

Diluted net operating earnings per common share were $3.83 in the third quarter of 2022, compared with $3.76 in the year-earlier quarter and $3.10 in the second quarter of 2022. Net operating income aggregated $700 million in the recent quarter, $504 million in the third quarter of 2021 and $578 million in 2022's second quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the third quarter of 2022 was 1.44% and 17.89%, respectively, 1.34% and 17.54%, respectively, in the similar quarter of 2021 and 1.16% and 14.41%, respectively, in the second quarter of 2022.

Diluted net operating earnings per common share in the first nine months of 2022 totaled $9.78, compared with $10.61 in the similar 2021 period. Net operating income during the first nine months of 2022 was $1.65 billion, up from $1.42 billion in the nine-month period ended September 30, 2021. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.23% and 15.13%, respectively, in the initial nine months of 2022, compared with 1.30% and 17.10%, respectively, in the similar 2021 period.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $1.69 billion in the recent quarter, up from $971 million in the third quarter of 2021 and $1.42 billion in the second quarter of 2022. The increase compared with the earlier quarters reflects a higher net interest margin and, additionally, when compared with the year-earlier quarter, the impact of earning assets obtained in the acquisition of People's United. Average earning assets totaled $182.4 billion in the recent quarter, compared with $140.4 billion in the third quarter of 2021 and $189.8 billion in the second quarter of 2022. Average loans outstanding were $127.5 billion in the third quarter of 2022, compared with $95.3 billion in the year earlier quarter and $127.6 billion in the second quarter of 2022. The higher average balances of both earnings assets and loans outstanding in the second and third quarters of 2022 compared with the third quarter of 2021 reflect the impact of additional earning assets obtained in the acquisition of People's United. Reflecting the impact of rising interest rates, the net interest margin increased to 3.68% in the third quarter of 2022, up from 2.74% in the corresponding quarter of 2021 and 3.01% in the second quarter of 2022.


Taxable-equivalent Net Interest Income

										Change 3Q22 vs.
($ in millions)	3Q22			3Q21			2Q22			3Q21			2Q22

Average earning assets	$	182,382		$	140,420		$	189,755			30	%		-4	%
Net interest income ̶ taxable-equivalent	$	1,691		$	971		$	1,422			74	%		19	%
Net interest margin		3.68	%		2.74	%		3.01	%

Provision for Credit Losses/Asset Quality. The provision for credit losses was $115 million in the third quarter of 2022 and $302 million in the second quarter of 2022, compared with a $20 million recapture of provision in the third quarter of 2021. Included in the second quarter of 2022 was a $242 million provision, recorded in accordance with GAAP, related to loans obtained in the People's United acquisition that were considered non-PCD. GAAP provides that an allowance for credit losses on such loans be recorded beyond the recognition of the fair value of the loans at the acquisition date. In addition to that merger-related provision, M&T recorded a provision for credit losses of $60 million in the second quarter of 2022. Net loan charge-offs were $63 million in the third quarter of 2022, $40 million in the third quarter of 2021 and $50 million in 2022's second quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .17% in the third quarters of 2022 and 2021, respectively, and .16% in the second quarter of 2022.

Loans classified as nonaccrual totaled $2.43 billion at September 30, 2022, compared with $2.24 billion at September 30, 2021 and $2.63 billion at June 30, 2022. The balance of nonaccrual loans at the end of the two most recent quarters as compared with September 30, 2021 reflects loans obtained in the acquisition of People's United. Nonaccrual loans as a percentage of total loans were 1.89% at September 30, 2022, improved from 2.40% a year earlier and 2.05% at June 30, 2022. Assets taken in foreclosure of defaulted loans were $37 million at September 30, 2022, $25 million a year earlier and $29 million at June 30, 2022.

Allowance for Credit Losses. M&T regularly performs comprehensive analyses of its loan portfolios and assesses forecasted economic conditions for purposes of determining the adequacy of the allowance for credit losses. As a result of those procedures, the allowance for credit losses totaled $1.88 billion or 1.46% of loans outstanding at September 30, 2022 compared with $1.52 billion or 1.62% of loans outstanding at September 30, 2021 and $1.82 billion or 1.42% at June 30, 2022. The acquisition of People's United loans and leases resulted in a $341 million increase in the allowance for credit losses as of April 1, 2022, including $99 million related to PCD loans and $242 million related to non-PCD loans. Including the impact of the acquisition, M&T's allowance for credit losses was $1.81 billion on April 1, 2022, or 1.42% of then outstanding loans. The higher allowance for credit losses as a percentage of outstanding loans at the recent quarter end as compared with June 30, 2022 reflects a modestly less optimistic macroeconomic forecast.

Asset Quality Metrics
										Change 3Q22 vs.
($ in millions)	3Q22			3Q21			2Q22			3Q21			2Q22

At end of quarter
Nonaccrual loans	$	2,429		$	2,242		$	2,633			8	%		-8	%
Real estate and other foreclosed assets	$	37		$	25		$	29			49	%		29	%
Total nonperforming assets	$	2,466		$	2,267		$	2,662			9	%		-7	%
Accruing loans past due 90 days or more (1)	$	477		$	1,026		$	524			-54	%		-9	%
Nonaccrual loans as % of loans outstanding		1.89	%		2.40	%		2.05	%

Allowance for credit losses	$	1,876		$	1,515		$	1,824			24	%		3	%
Allowance for credit losses as % of loans outstanding		1.46	%		1.62	%		1.42	%

For the period
Provision for credit losses	$	115		$	(20)		$	302			—			-62	%
Net charge-offs (2)	$	63		$	40		$	50			58	%		27	%
Net charge-offs as % of average loans (annualized) (2)		.20	%		.17	%		.16	%


(1)	Predominantly government-guaranteed residential real estate loans.
(2)	For the quarter-ended June 30, 2022, net charge-offs and related data do not reflect $33 million of charge-offs related to PCD acquired loans.

Noninterest Income and Expense. Noninterest income totaled $563 million in the third quarter of 2022, compared with $569 million in the year-earlier quarter. Trust income, service charges on deposit accounts and credit-related fees included in other revenues from operations all increased reflecting the acquisition of People's United, but were offset by a decline in mortgage banking revenues resulting from M&T's decision to retain recently originated mortgage loans in portfolio rather than sell such loans. Noninterest income was $571 million in this year's second quarter. The comparative decline in the recent quarter was predominantly the result of lower service charges on deposit accounts and trust income, offset by higher credit-related fees.

Noninterest Income

							Change 3Q22 vs.
($ in millions)	3Q22		3Q21		2Q22		3Q21			2Q22

Mortgage banking revenues	$	83	$	160	$	83		-48	%		—
Service charges on deposit accounts		115		105		124		9	%		-7	%
Trust income		187		157		190		19	%		-2	%
Brokerage services income		21		20		24		3	%		-13	%
Trading account and non-hedging derivative gains		5		6		2		-9	%		122	%
Gain (loss) on bank investment securities		(1)		—		—		—			—
Other revenues from operations		153		121		148		27	%		4	%
Total	$	563	$	569	$	571		-1	%		-1	%

Noninterest expense totaled $1.28 billion in the third quarter of 2022, compared with $899 million in the similar quarter of 2021 and $1.40 billion in the second quarter of 2022. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $1.21 billion in the recent quarter, $888 million in the third quarter of 2021 and $1.16 billion in 2022's second quarter. The most significant factor for the higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was the impact of operations obtained in the People's United acquisition. Compared with the second quarter of 2022, the $46 million increase in operating expenses in 2022's third quarter predominantly resulted from a $32 million rise in salaries and benefits expenses attributable to an additional pay day in the third quarter and M&T's continued investment in its talent base through salaries and incentive compensation.

Noninterest Expense

							Change 3Q22 vs.
($ in millions)	3Q22		3Q21		2Q22		3Q21			2Q22

Salaries and employee benefits	$	736	$	510	$	776		44	%		-5	%
Equipment and net occupancy		127		81		125		57	%		2	%
Outside data processing and software		95		73		94		31	%		1	%
FDIC assessments		28		19		22		49	%		24	%
Advertising and marketing		21		15		21		41	%		4	%
Printing, postage and supplies		15		8		16		87	%		-5	%
Amortization of core deposit and other intangible assets		18		3		18		571	%		—
Other costs of operations		239		190		331		25	%		-28	%
Total	$	1,279	$	899	$	1,403		42	%		-9	%

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.6% in the third quarter of 2022, 57.7% in the year-earlier quarter and 58.3% in the second quarter of 2022.

Balance Sheet. M&T had total assets of $198.0 billion at September 30, 2022, compared with $151.9 billion and $204.0 billion at September 30, 2021 and June 30, 2022, respectively. Loans and leases, net of unearned discount, were $128.2 billion at September 30, 2022, compared with $93.6 billion at September 30, 2021 and $128.5 billion at June 30, 2022. The higher level of loans and leases at the recent quarter-end and June 30, 2022 as compared with September 30, 2021 is largely a reflection of balances associated with the acquisition of People's United. Also reflective of that acquisition, total deposits were $163.8 billion at the recent quarter-end and $170.4 billion at June 30, 2022, compared with $128.7 billion at September 30, 2021.

Total shareholders' equity was $25.3 billion or 12.76% of total assets at September 30, 2022, $17.5 billion or 11.54% at September 30, 2021 and $25.8 billion or 12.64% at June 30, 2022. Common shareholders' equity was $23.2 billion, or $134.45 per share, at September 30, 2022, compared with $15.8 billion, or $122.60 per share, a year-earlier and $23.8 billion, or $135.16 per share, at June 30, 2022. Tangible equity per common share was $84.28 at September 30, 2022, $86.88 at September 30, 2021 and $85.78 at June 30, 2022. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 10.7% at September 30, 2022, compared with 10.9% three months earlier and 11.1% at September 30, 2021.

In accordance with its capital plan, M&T repurchased 3,282,449 shares of its common stock during the recent quarter at an average cost per share of $182.79 resulting in a total cost of $600 million.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 225-9448. International participants, using any applicable international calling codes, may dial (203) 518-9708. Callers should reference M&T Bank Corporation or the conference ID #MTBQ322. 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 Wednesday October 26, 2022 by calling (800) 688-7339, or (402) 220-1347 for international participants. No conference ID 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.

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 the Company and/or the financial industry as a whole, as well as national and global events generally, on the Company'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 the Company's control. As described further below, statements regarding M&T's expectations or predictions regarding the acquisition of People's United are also forward-looking statements, including statements regarding the expected financial results, prospects, targets, goals and outlook.

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 risks, uncertainties and assumptions ("future factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Examples of future factors include: the impact of the People's United acquisition (as described in the next paragraph); economic conditions including inflation and supply chain issues; the impact of international conflicts or other events; the impact of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; 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; 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; 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; rapid 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; containing costs and expenses; 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 and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

In addition, future factors related to the acquisition of People's United include, among others: the outcome of any legal proceedings that may be instituted against M&T or its subsidiaries; the possibility that the anticipated benefits of the transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company does business; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships; the Company's success in executing its business plans and strategies and managing the risks involved in the foregoing; the business, economic and political conditions in the markets in which the Company operates; and other factors that may affect future results of the Company.

Future factors related to the acquisition also include risks, such as, among others: that there could be an adverse effect on the Company's ability to retain customers and retain or hire key personnel and maintain relationships with customers; that integration efforts may be more difficult or time-consuming than anticipated, including in areas such as sales force, cost containment, asset realization, systems integration and other key strategies; that 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; and other factors that may affect future results of the Company.

These are representative of the future factors that could affect the outcome of the forward-looking statements. In addition, 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, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other future factors.

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2021, 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 made, and M&T does not assume any duty and does not undertake to update forward-looking statements.

INVESTOR CONTACT:		Brian Klock
		(716) 842-5138

MEDIA CONTACT:		Maya Dillon
		(646) 735-1958

Financial Highlights

	Three months ended									Nine months ended
	September 30									September 30
Amounts in thousands, except per share	2022			2021			Change			2022			2021			Change
Performance
Net income	$	646,596			495,460			31	%	$	1,226,292			1,400,778			-12	%
Net income available to common shareholders		620,554			475,961			30	%		1,152,406			1,342,812			-14	%
Per common share:
Basic earnings	$	3.55			3.70			-4	%	$	7.18			10.44			-31	%
Diluted earnings		3.53			3.69			-4	%		7.14			10.43			-32	%
Cash dividends	$	1.20			1.10			9	%	$	3.60			3.30			9	%
Common shares outstanding:
Average - diluted (1)		175,682			128,844			36	%		161,295			128,786			25	%
Period end (2)		172,900			128,699			34	%		172,900			128,699			34	%
Return on (annualized):
Average total assets		1.28	%		1.28	%					.87	%		1.24	%
Average common shareholders' equity		10.43	%		12.16	%					7.24	%		11.76	%
Taxable-equivalent net interest income	$	1,690,518			970,953			74	%	$	4,020,369			2,902,154			39	%
Yield on average earning assets		3.90	%		2.82	%					3.30	%		2.91	%
Cost of interest-bearing liabilities		.41	%		.14	%					.27	%		.15	%
Net interest spread		3.49	%		2.68	%					3.03	%		2.76	%
Contribution of interest-free funds		.19	%		.06	%					.12	%		.07	%
Net interest margin		3.68	%		2.74	%					3.15	%		2.83	%
Net charge-offs to average total net loans (annualized)		.20	%		.17	%					.14	%		.22	%
Net operating results (3)
Net operating income	$	700,030			504,030			39	%	$	1,653,651			1,424,361			16	%
Diluted net operating earnings per common share		3.83			3.76			2	%		9.78			10.61			-8	%
Return on (annualized):
Average tangible assets		1.44	%		1.34	%					1.23	%		1.30	%
Average tangible common equity		17.89	%		17.54	%					15.13	%		17.10	%
Efficiency ratio		53.6	%		57.7	%					58.1	%		58.8	%

	At September 30
Loan quality	2022			2021			Change
Nonaccrual loans	$	2,429,326			2,242,263			8	%
Real estate and other foreclosed assets		37,031			24,786			49	%
Total nonperforming assets	$	2,466,357			2,267,049			9	%
Accruing loans past due 90 days or more (4)	$	476,503			1,026,080			-54	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	44,797			47,358			-5	%
Accruing loans past due 90 days or more		423,371			947,091			-55	%
Renegotiated loans	$	356,797			242,955			47	%
Nonaccrual loans to total net loans		1.89	%		2.40	%
Allowance for credit losses to total loans		1.46	%		1.62	%


(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 appears herein.
(4)	Predominantly residential real estate loans.

Financial Highlights, Five Quarter Trend

	Three months ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Amounts in thousands, except per share	2022			2022			2022			2021			2021
Performance
Net income	$	646,596			217,522			362,174			457,968			495,460
Net income available to common shareholders		620,554			192,236			339,590			434,171			475,961
Per common share:
Basic earnings	$	3.55			1.08			2.63			3.37			3.70
Diluted earnings		3.53			1.08			2.62			3.37			3.69
Cash dividends	$	1.20			1.20			1.20			1.20			1.10
Common shares outstanding:
Average - diluted (1)		175,682			178,277			129,416			128,888			128,844
Period end (2)		172,900			175,969			129,080			128,705			128,699
Return on (annualized):
Average total assets		1.28	%		.42	%		.97	%		1.15	%		1.28	%
Average common shareholders' equity		10.43	%		3.21	%		8.55	%		10.91	%		12.16	%
Taxable-equivalent net interest income	$	1,690,518			1,422,443			907,408			937,356			970,953
Yield on average earning assets		3.90	%		3.12	%		2.72	%		2.64	%		2.82	%
Cost of interest-bearing liabilities		.41	%		.20	%		.13	%		.12	%		.14	%
Net interest spread		3.49	%		2.92	%		2.59	%		2.52	%		2.68	%
Contribution of interest-free funds		.19	%		.09	%		.06	%		.06	%		.06	%
Net interest margin		3.68	%		3.01	%		2.65	%		2.58	%		2.74	%
Net charge-offs to average total net loans (annualized)		.20	%		.16	%		.03	%		.13	%		.17	%
Net operating results (3)
Net operating income	$	700,030			577,622			375,999			475,477			504,030
Diluted net operating earnings per common share		3.83			3.10			2.73			3.50			3.76
Return on (annualized):
Average tangible assets		1.44	%		1.16	%		1.04	%		1.23	%		1.34	%
Average tangible common equity		17.89	%		14.41	%		12.44	%		15.98	%		17.54	%
Efficiency ratio		53.6	%		58.3	%		64.9	%		59.7	%		57.7	%

	September 30,			June 30,			March 31,			December 31,			September 30,
Loan quality	2022			2022			2022			2021			2021
Nonaccrual loans	$	2,429,326			2,633,005			2,134,231			2,060,083			2,242,263
Real estate and other foreclosed assets		37,031			28,692			23,524			23,901			24,786
Total nonperforming assets	$	2,466,357			2,661,697			2,157,755			2,083,984			2,267,049
Accruing loans past due 90 days or more (4)	$	476,503			523,662			776,751			963,399			1,026,080
Government guaranteed loans included in totals above:
Nonaccrual loans	$	44,797			46,937			46,151			51,429			47,358
Accruing loans past due 90 days or more		423,371			467,834			689,831			927,788			947,091
Renegotiated loans	$	356,797			276,584			242,108			230,408			242,955
Nonaccrual loans to total net loans		1.89	%		2.05	%		2.32	%		2.22	%		2.40	%
Allowance for credit losses to total loans		1.46	%		1.42	%		1.60	%		1.58	%		1.62	%

Condensed Consolidated Statement of Income

	Three months ended							Nine months ended
	September 30							September 30
Dollars in thousands	2022		2021		Change			2022		2021		Change
Interest income	$	1,781,513		992,946		79	%	$	4,174,911		2,980,266		40	%
Interest expense		102,822		25,696		300			180,329		89,281		102
Net interest income		1,678,691		967,250		74			3,994,582		2,890,985		38
Provision for credit losses		115,000		(20,000)		—			427,000		(60,000)		—
Net interest income after provision for credit losses		1,563,691		987,250		58			3,567,582		2,950,985		21
Other income
Mortgage banking revenues		83,041		159,995		-48			275,115		432,062		-36
Service charges on deposit accounts		115,213		105,426		9			340,890		296,721		15
Trust income		186,577		156,876		19			545,874		475,889		15
Brokerage services income		21,086		20,490		3			65,414		43,868		49
Trading account and non-hedging derivative gains		5,081		5,563		-9			12,743		18,349		-31
Gain (loss) on bank investment securities		(1,108)		291		—			(1,913)		(22,646)		—
Other revenues from operations		153,189		120,485		27			436,943		344,114		27
Total other income		563,079		569,126		-1			1,675,066		1,588,357		5
Other expense
Salaries and employee benefits		736,354		510,422		44			2,090,075		1,530,634		37
Equipment and net occupancy		127,117		80,738		57			337,584		244,057		38
Outside data processing and software		95,068		72,782		31			268,607		213,025		26
FDIC assessments		28,105		18,810		49			66,266		50,874		30
Advertising and marketing		21,398		15,208		41			58,057		43,200		34
Printing, postage and supplies		14,768		7,917		87			40,488		28,367		43
Amortization of core deposit and other intangible assets		18,384		2,738		571			38,024		8,213		363
Other costs of operations		238,059		190,719		25			743,047		565,753		31
Total other expense		1,279,253		899,334		42			3,642,148		2,684,123		36
Income before income taxes		847,517		657,042		29			1,600,500		1,855,219		-14
Applicable income taxes		200,921		161,582		24			374,208		454,441		-18
Net income	$	646,596		495,460		31	%	$	1,226,292		1,400,778		-12	%

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
Dollars in thousands	2022		2022		2022		2021		2021
Interest income	$	1,781,513		1,465,142		928,256		958,518		992,946
Interest expense		102,822		53,425		24,082		24,725		25,696
Net interest income		1,678,691		1,411,717		904,174		933,793		967,250
Provision for credit losses		115,000		302,000		10,000		(15,000)		(20,000)
Net interest income after provision for credit losses		1,563,691		1,109,717		894,174		948,793		987,250
Other income
Mortgage banking revenues		83,041		82,926		109,148		139,267		159,995
Service charges on deposit accounts		115,213		124,170		101,507		105,392		105,426
Trust income		186,577		190,084		169,213		168,827		156,876
Brokerage services income		21,086		24,138		20,190		18,923		20,490
Trading account and non-hedging derivative gains		5,081		2,293		5,369		6,027		5,563
Gain (loss) on bank investment securities		(1,108)		(62)		(743)		1,426		291
Other revenues from operations		153,189		147,551		136,203		138,775		120,485
Total other income		563,079		571,100		540,887		578,637		569,126
Other expense
Salaries and employee benefits		736,354		776,201		577,520		515,043		510,422
Equipment and net occupancy		127,117		124,655		85,812		82,641		80,738
Outside data processing and software		95,068		93,820		79,719		78,814		72,782
FDIC assessments		28,105		22,585		15,576		18,830		18,810
Advertising and marketing		21,398		20,635		16,024		21,228		15,208
Printing, postage and supplies		14,768		15,570		10,150		8,140		7,917
Amortization of core deposit and other intangible assets		18,384		18,384		1,256		1,954		2,738
Other costs of operations		238,059		331,304		173,684		200,850		190,719
Total other expense		1,279,253		1,403,154		959,741		927,500		899,334
Income before income taxes		847,517		277,663		475,320		599,930		657,042
Applicable income taxes		200,921		60,141		113,146		141,962		161,582
Net income	$	646,596		217,522		362,174		457,968		495,460

Condensed Consolidated Balance Sheet

	September 30
Dollars in thousands	2022		2021		Change
ASSETS
Cash and due from banks	$	2,255,810		1,479,712		52	%
Interest-bearing deposits at banks		25,391,528		38,445,788		-34
Trading account		129,672		50,920		155
Investment securities		24,603,765		6,447,622		282
Loans and leases:
Commercial, financial, etc.		38,807,949		22,514,940		72
Real estate - commercial		46,138,665		37,023,952		25
Real estate - consumer		23,074,280		16,209,354		42
Consumer		20,204,693		17,834,648		13
Total loans and leases, net of unearned discount		128,225,587		93,582,894		37
Less: allowance for credit losses		1,875,591		1,515,024		24
Net loans and leases		126,349,996		92,067,870		37
Goodwill		8,501,357		4,593,112		85
Core deposit and other intangible assets		226,974		5,952		—
Other assets		10,496,377		8,810,218		19
Total assets	$	197,955,479		151,901,194		30	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	73,023,271		56,542,309		29	%
Interest-bearing deposits		90,822,117		72,158,987		26
Total deposits		163,845,388		128,701,296		27
Short-term borrowings		917,806		103,548		786
Accrued interest and other liabilities		4,476,456		2,067,188		117
Long-term borrowings		3,459,336		3,500,391		-1
Total liabilities		172,698,986		134,372,423		29
Shareholders' equity:

Includes common stock equivalents.

Includes common stock issuable under deferred compensation plans.

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 appears herein.

Predominantly residential real estate loans.

M&T BANK CORPORATION ANNOUNCES THIRD QUARTER RESULTS