M&T Bank Corporation reported net income of $721 million for the third quarter of 2024, a 10% increase from the $655 million recorded in the second quarter, with earnings per share of $4.02 compared with $3.73 in Q2, the bank said in its results release. Higher investment securities yields and lower funding costs lifted profitability at the Buffalo, New York-headquartered bank.
Non-interest income rose $22 million, or 4%, to $606 million in the quarter. The increase mainly reflected a $5 million rise in service charges on deposit accounts, a $6 million rise in trading account and other non-hedging derivative gains and a $6 million smaller loss on bank investment securities.
NET INTEREST INCOME AND MARGIN IMPROVE QUARTER-ON-QUARTER
Taxable-equivalent net interest income rose by $8 million quarter-on-quarter to $1.74 billion, while the net interest margin expanded by three basis points to 3.62%. The margin expansion reflected higher yields on investment securities and lower funding costs, led by a decline in brokered time deposits.
Higher non-interest income, slightly higher net interest income and a lower provision for credit losses ($120 million versus $150 million) produced the 10% sequential earnings increase.
M&T Bank operates across the Mid-Atlantic and New England regions of the United States and has a significant presence in commercial real estate lending. M&T noted that its commercial real estate concentration declined during the quarter.
YEAR-TO-DATE RESULTS
Year-to-date net income of $1.91 billion was 16% below the $2.26 billion earned in the first nine months of 2023.