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M & T Bank (MTB) Q2 2021 Earnings Call Transcript

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M & T Bank (NYSE:MTB)
Q2 2021 Earnings Call
Jul 21, 2021, 11:00 a.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Good day, and thank you for standing by. Welcome to the M&T Bank second quarter 2021 earnings conference call. [Operator instructions] Please be advised that today’s conference is being recorded. [Operator instructions] I would now like to hand the conference over to Don MacLeod.

Thank you. Please go ahead.

Don MacLeodVice President and Director of Investor Relations

Thank you, Erica, and good morning. I’d like to thank everyone for participating in M&T’s second quarter of 2021 earnings conference call, both by telephone and through the webcast. If you have not read the earnings release we issued this morning, you may access it along with the financial tables and schedules from our website, www.mtb.com, and by clicking on the Investor Relations link and then on the Events and Presentations link. Also before we start, I’d like to mention that today’s presentation may contain forward-looking information.

Cautionary statements about this information, as well as reconciliations of non-GAAP financial measures are included in today’s earnings release materials, as well as our SEC filings and other investor materials. These materials are all available on our Investor Relations web page, and we encourage participants to refer to them for a complete discussion of forward-looking statements and risk factors. These statements speak only as of the date made, and M&T undertakes no obligation to update them. I’m happy to say that our Chief Financial Officer, Darren King, will be leading the call today.

Also joining us today is Brian Klock, who started with M&T in May and who will take over as the Head of Market and Investor Relations at the end of this year. Darren?

Darren KingChief Financial Officer

Thanks, Don. Good morning, everyone. Welcome back, Brian, after a 17-year hiatus. Welcome to the other side of the table.

And I have a rhetorical question for you: where would you rather be than right here right now?

Brian KlockSVP and Head of Markets and Investor Relations

You got it, Mark — I mean, Darren.

Darren KingChief Financial Officer

All right. Let’s jump into the business of the day. As we noted in this morning’s press release, we were pleased with the continued rebound in the economy from the pandemic-induced slowdown. We continue to see improved customer activity across all sectors of the economy.

Notably, while not back to pre-pandemic levels, we’re seeing improvements in the leisure and hospitality sectors. While nonaccrual and criticized loans increased from prior quarter, loss emergence remains subdued, leading us to recognize a further moderate release from the allowance for credit losses. The balance sheet continues to strengthen as both capital and liquidity grew from already elevated levels, positioning the bank to continue to be a source of strength for our customers. We continue to make progress toward the fourth quarter close of the People’s United merger, and we were pleased with the overwhelming shareholder support of the combination.

Looking at the results for the quarter. Diluted GAAP earnings per common share were $3.41 for the second quarter of 2021, improved from $3.33 in the first quarter of 2021 and $1.74 in the second quarter of 2020. Net income for the quarter was $458 million, compared with $447 million in the linked quarter and $241 million in the year-ago quarter. On a GAAP basis, M&T’s second-quarter results produced an annualized rate of return on average assets of 1.22% and an annualized rate of return on average common equity of 11.55%.

This compares with rates of 1.22% and 11.57%, respectively, in the previous quarter. Included in GAAP results in the recent quarter were after-tax expenses from the amortization of intangible assets amounting…

Read More: M & T Bank (MTB) Q2 2021 Earnings Call Transcript

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