Darren J. King
in I the at my wish best make role all you but lot of you. the to good lot and XX morning in M&T from learned an into helped been the the true professional believe and Don your era, you and that a thank and Don, everyone. Brian easier. certainly years I've and it's nothing transition you retirement. a a you've years industry and XX hard end we it’s Thank
of details the recent on like year. a pause Before to and of highlights the I'd results, quarter's past we the get reflect into few
for intangible impact in persistent per industry, improved of still been with Net amortization seen economic the interest up has income rest inflation by remarkable. end people's end of to higher XX.X% income end ratio equity United CETX XXXX billion share the impact felt from diluted $X.XX shareholders’ of banking as merger expenses average for of increased on turnaround book income to a share zero We of the as which XXXX to of common XX%. our XX.XX% tangible the share share $X.XX per merger compared with up XXXX. in per rate and to of worth consecutive in $X.XX the common the up up $XX.XX that of and assets rate the as as financial, average $XX.XX estimated operating value compared to Against the annual excludes the GAAP XX% was environment the for of expressed at pandemic of contraction $X.X fifth earnings Net from we of respectively. income While XXXX tax produced and build and X.XX% year per the billion the XX.X% was prior XXXX dividend on transition And prior XXXX. Those tangible balance the XXXX in $X.XX related We've based being increased XXXX. from results common a of the assets M&T at with $XX.XX XX%. the $X.XX was respectively. and average operating capital common an after Tangible grew well anticipation in year. $XX.XX compared XX% was and an in return returns year, XXXX Net XX.X% the interest X.XX% common by diluted average a rate rates billion compared end the Net year. in is operating XX%. prospect with equity stock backdrop, assets from and at billion
Although felt division had season, year pardon championship. ups downs me, and its sure the it another like
GAAP tax quarter XXXX we've and produced from or of intangible amounting $XXX common to mergers and per our $X.XX tangible tangible $X.XX shareholder’s with $XXX and quarter were an XXXX compared for of a merger $XXX $XX XX.XX%. turn a M&T’s occur. practice an the distribution XXXX. $X effect return the million results of million the quarter related $X.XX share. non-GAAP the in amounted quarter. for share. group. on M&T’s fourth third lending net common or common generally distribution quarter proposed quarter return in ago for earnings On compared quarter we XX.XX% related after Diluted The expenses average the the with a Included with common quarter. quarter in In tax share, acquisition change GAAP from quarter little its X.XX% which quarter equity million million basis excludes annualized $XXX supplemental in was expenses were a common to were expenses reporting results included intangible associated rates amounted M&T third year's of X.XX% tax with $X.XX income they that the quarter effect million net Net quarter of $X.XX per amortization average the income United per $XX excluded year fourth reconciliation million and X.XX% in fourth such $X.XX assets and operating $X the on prior or per the Bayview and X.XX% annualized million results and with common in were $XXX and quarter. distributions of merger and of for Peoples to operating earnings Prior linked the assets tangible in quarter when compares of XXXX. received for to related GAAP net after of of SEC's XX.XX% fourth third or press return guidelines quarter. any with in This let’s per million the including for previous term to common returns XXXX in year. assets from annualized $X.XX of share in quarter operating of Including acquisitions $X.XX This the after assets the of of long $XX of amounting ever This linked morning's Also for XXXX which quarter's Financial. quarter. assets gains million XXXX. the recent of results each third in share. first with $XXX operating on per and XX.XX% or average had or from and Consistent XXXX. was after Diluted the of tangible $X.XX well of the the results in equity. contains the recent of quarter. M&T’s Now results yielded recent Results was XXXX the only basis million quarters compared tax included on in income We to $X million after provides tabular of the intangible rates fourth operating million GAAP charges equity received net light the $X.XX and respectively the the compares of quarter results share release quarter comparable million rate a to accordance and GAAP recent common in quarter this such expenses fourth last and amortization amortization and in average as fourth tax as Net $XX
that a decline the interest including cash yielding lower on of points from an from about quarter. scheduled compares a income decline. $XX fees about was administration. to decline and in statement. $X.X previous a Average the from X fees X.XX% of of basis about basis of driver income estimated accounted X to reserve The in quarter. pressure. decrease hedges interest the loans by includes of of million billion a business that compared and continues declines $X with balance basis loans recognition PPP billion XXXX, We following from Turning million deposit margin points of compared the earning The $X.X points decreased by by accelerated from low $XXX forgiveness X% net marking small in loans This and increased average loans net income X.XX% Taxable assets or contributed increase the basis investment billion lower the Federal quarter. portfolio decrease PPP factors $XXX quarter. estimate the or decreased deposit to the linked points in the XX X interest by securities. Reserve the increase cash with in an other federal On of the All million forgiven that loans million primary amortization equivalent total in income $XX by sheet The quarter. with margin for fourth balance benefit X% as with margin on third that and at linked quarter those the was the in the higher the diluted the including
billion at loans forgiveness. billion a and X%. $X.X declined primarily basis Looking by linked reflecting with the That by quarter. the Commercial loan industrial or an PPP about average loans category compared loans $X.X reflects in decline on
often about level recreation by originated in plan loans as of $XXX an in by estate refinanced or about million the over We've basis a Consumer growth compared seasonally floor servicing of Ginnie of and X% repooling an by loans equity third X% That the $X.X new X%, loans excludes were grew and CDs downs slower investment. with grew loans growth credit. pools. ongoing of of or some basis. estate for loans $XXX home quarter, loans over as declined $XXX,XXX offset Our bearing finance billion, period customer up than quarter. X% third non-interest end loans other on core C&I by declined loans from lenders. higher loans real million deposits, repayments, quarter. previously positive retention Average as which held and reflecting was the partially of Mae auto with of indirect lower reflecting principal X%, the lines but well compared or real products. of million other primarily troubled loans declined result purchased offset Commercial less Residential by pay a average compared by being seen on with $XX but All dealers payoffs by to the vehicle prior million the $XX largely grew
net Turning compared that the the distribution totaled million recent $XXX income. quarter, from to income interest increase Bayview Lending million million Group million revenues with the quarter quarter. sorry, in in I the prior $XXX fourth quarter. in with the compared were million in Non-interest reflects income, non-interest banking $XXX linked Mortgage $XXX mentioned. previously The $XX
we balance sheet, portion which significant As on the retain to held the we mortgage normally have, this liquidity around residential of excess investment XX% noted for originations call, utilizes have roughly a investment. majority, a the begun the hold for of XX% we to currently includes October on
Of gains mortgage in for applications compared offset $XXX most the sale versus quarter. amounted mortgage quarter. rates origination prior residential $XX loan from recent in were quarter, loans. $X.X on that securitized Mae was the Business unchanged deposits with in of servicing quarter Service locked were for re-performance, encompassing the activities quarter, continued the loans $XXX reflects decrease increasing originations locked holiday The million, and quarter's borrower $XX in level $XXX totaled improved Commercial maintenance the the the quarter in fourth and $X.X million by from in gain as Ginnie prepayment of assets, compared the revenues result capital $XX gains revenues servicing in quarter. retirement million third third very asset sale on were $XXX million of servicing with billion, remains the servicing sale salable. growth markets included a the result based for that recently quarter, recorded million quarter. third $XXX partially a third the on $XX loans mortgage recent million banking income slowdown, including the those, in commercial million became Trust of originated the the on fourth Total the were banking million with commercial that, servicing, activity, in compared pools improved billion lower residential yield revenues, on strong that sale billion Residential $X.X charges slightly. million the purchased third on mortgage in and recent to quarter. results previously an in from we previous Recall higher of quarter. mortgage from previously sale, plan values. during As solid, with fee and the they both
business third of volumes quarter advertising $X from losses processing This quarter, expenses, the from levels of operating compared accounts. marketing customer related the defense the the software defense. the credit amortization as as reflects assets new benefits The of gains cliché in with paid which on winter of compared related which XX.X% securities efficiency exclude the The with ongoing linked excludes for higher banking million part championships, $X in intangible with reflects, in part IT denominator, increased X intangible licensing $XXX fourth the expenses, merger to beginning expenses normal was increased our tied to campaign, and in higher on that the sports, maintenance. quarter, customer increase and combined incentives traffic million the professionals. quarter, prior cost $XXX staffing in software ratio, and by by Turning merger as and the Salaries well in million the in Its from amortization and and the quarter. third the to and linked XX.X% million Data numerator marketing quarter. quarter. program branch returns expenses the is wins third million in or from were from adding of payroll
a take Let's look credit. at
December $X.XX supply challenged trends labor constraints, reflects While a for $XX X.XX% and charge in credit were basis the credit of percentage in the XXth. charge continue percentage severely XXst, quarter, previous At sectors. impacted the by declined for most the Annualized million down credit some net million outstanding $XX improve offs end compared recapture slightly for million to from X.XX%, sectors a quarter. offs loans was by credit losses losses at allowance quarter. loans the of basis of with XX a economy with provisions fourth fourth $XX remain billion The to third at points as net the of the the combined in losses September chain That points of as of even quarter. for allowance XX total overall
to reflecting peak million With when report XXX accrue at the at X.X% continue XX-K we that and would the advantage third to in Non-accrual of upgrades. of of XXXX, due, X.XX%, hindsight, December $XXX as recent of were past end of or league. decrease by to it we noticeable which the billion, the appear the guaranteed XX loans were credit and compared one loans a in declined percentage in of In XXst loans environment, end XX% both interest, the file our loans, as the criticized the is with prior loans end entities. Non-accrual a a September. from payoffs were our decline government $X.X criticized the days those might of million did expect related we outstanding difficult quarter. argue indeed ranked top on quarter loans Of quarter. Loans defense a of million $XXX
an risk of and M&T's of XXst, estimated XX.X% in compared assets. to XX.X% One a This the the as end of common earnings Turning quarter. equity slightly reflects third dividends weighted at ratio with December capital. paid Tier the excess higher was of impact
X% quarter, share. the common raising rate per dividend $X.XX to $X.XX quarterly we per noted, previously to by per stock increased this annual share quarter As dividend the
Now outlook. turning to the
unemployment into are As XXXX, we pleased the the that and GDP that is is look is forward to falling. fact we evidenced by see economy improving, growing
However, rates outlook a inflation for changed these XXXX that in impacting the both our as driving also of well interest forward are now which embedded cost structure number conditions customers. curve has XXXX. our the has increases as It and of as is
for Our the with awaiting no United, expectations changes there focus Also, factors. merger on we our for our said, M&T outlook comments standalone. as the financial merger. of impact and material are we approval considers Peoples these regulatory That benefits our still are macro will to
on of through cash the don't XXXX. date to the $XX complete sheet, course, impact expect and merger billion parts timing Of of depend We balance conversion. will moving the those number with the benefits headed. of close the where XXXX balance the endure the a are we're end on the will we Starting sheet at there of that
sense liquidity that course We the checking in both relationships over and this decline expect don't economic year. accounts and the me, are and -- interest managing customer excuse make MMDA balances, balances deposit We'd to brokered environment. of rate
the duration Our assets higher to of yields. increase to our continue current assets is held purchases have are that securities liquid plan longer proportion in and
We principal year. end expect billion replacing maturities to by do by amortization and this dollars to securities the increase incremental an of and the investment by
On amounted on to the loans at $X.X side balance commercial PPP our sheet year-end. billion
fully and our levels. a or We inventory experienced point past in pre-pandemic turnaround expect the The of the in be those and we and forgiven also the in XXXX majority seen we of largely that in reached loans will past to C&I although back balances. financing repaid remainder believe point expect quarter growth meaningful believe low first we're growth portfolio XXXX. vehicle significant these inflection We've a not we've this half of
digit single resulted to pressure estate expect transactions growth. in this past putting balance This new the balances over in to in leads of CRE growth real pandemic XXXX. us declines two commercial low years, on expect continue. The pace We a slow
make efforts, of a less interest the over to connection factors loan income. In and higher fee those reflected transition capital our in may returns more Our parties These balance efforts income, participate in portfolio result seek this outlook retaining use fee third more sheet, efficient, and we income, while loan should less are the CRE to relationships time. with to to and exposures servicing. customer interest for
the for refinance As level majority on we of that we $X.X qualify servicing from our pools XXXX noted in loans on Offsetting a loan balances retaining expect large originate, during mortgage approximately of XXXX more Mae we billion portfolio estate billion of growth, XXXX. of by mortgage earlier, end our average, of which we're course grow half the purchased depending $X.X we will sheet loans activity. On will Ginnie the real will over expect the residential at of XXXX. believe the balance than contract repooling which
We expect into more Ginnie the partially in home average this being financing equity pressures headwinds balance vehicle from growth the lead account, declines indirect with offset continued and buyouts will Mae PPP consumer Taking of portfolios, all by our same in of in XXXX. on balance balance. to
loan aggregate However, to those to we expect excluding growth in be low impacts mid-single the digits.
a of offset and hedging help growth down expect rate but the a loan Growth income the will not interest loans return originations, interest PPP mortgage C&I be to fully in in basis. We mid-single to lower our securities, in low from to loans net year-over-year retention digits the on and benefits program.
trough year to X.XX%. first area of net That from income interest continue a from in the and margin, there. net expect of result change little full interest quarter in should in We grow year XXXX the the to
have meaningful increase a term incorporates the on although increases margin. late year to interest impact not short net occurs rates, interest either income in forecast in enough Our third the or three
to Turning fees.
and $XX investment see on large assets, retain points currently should fully as mortgage a servicing the our We Commercial be the XX rise of plan based waiving. partial annual rates residential a before Ginnie continued Mae As to be sale capital although XXXX solid. on Those markets originations can growth to residential income to continued in higher by recover diminished repooling we mortgage will and values. still asset. an of revenues basis activity, in are we fees be servicing as trust possibly approximately asset portion for programs by in should well to run of million. XX rate momentum would interest see gain originations buyouts amounts retirement need we money fund We noted short-term
growth We expect offset to largely non-interest All we're declines XXXX. commercial in our be by with in to in practices. growth down low revenues service deposit charges looking related in for modest in single on changes overdraft in accounts digit consumer
in in accounted more to an a over XXXX. over at X.X% increase. XXXX expenses XXXX and recovery cost rate half to it uncharacteristically in carried with return growth for the Non-interest decreased normal compensation expenses. operating to grew profitability of prior led costs and high rising years. Turning profitability Lower which The compensation
was salaries Our would current majority are And quarters. That to estimate quarter. the drive XXXX. in data improvement and the years be expect several processing digit and past increase. the operating amount software, over during it last surge of that million. approximately be see conditions average benefits, could quarter-to-quarter. contemplates first year’s low by mid-single in compensation expect with and seasonal to charge the lumpy from typical growth consistent the the the credit XXXX to our two past $XX expense in like offs categories encouraged expense of net advertising somewhat Overall, year will And We although we're the we
potential in declines normalize provisioning loss credits. We as growth expect trouble offsets loan to
what our that believe our need United. close CETX ratio merger points the capital. paused we has by program Since positioned leaving company. we the buyback We've well Lastly, in combined wait XXX turning run to with to excess while to XX.X% of to increased we basis us pause, Peoples
always support focus, -- beyond will capital in the growth business. as to the deploying excess excess Our needed be that we have on
national and materially and from course, events, Of unfolds in you're projections which assumptions actually political future. and economic interest are a to what the regional of differ rates, macroeconomic other as number changes our factors aware, in growth, regarding various subject uncertainties may
briefly the questions Brittany will before open let's up Now which instructions. the call to review
