M&T Bank Corporation (MTB) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 19, 2022 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the M&T Bank Third Quarter 2022 Earnings Conference Call. All lines have been placed on listen-only and the floor will be opened for questions following the presentation. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Brian Klock, Head of Markets and Investor Relations. Please, go ahead.

Brian Klock - Head of Markets & IR

Thank you, Gretchen, and good morning. I'd like to thank everyone for participating in M&T's third quarter 2022 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 by going to our website, www.mtb.com. Once there, you can click 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 webpage, 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.

Now, I'd like to turn the call over to our Chief Financial Officer, Darren King.

Darren King - CFO

Thank you, Brian, and good morning, everyone. As we reflect on the past quarter and the first nine months of the year, we're pleased with the progress we have made executing on the plans we laid out in January.

Through the first three quarters of the year, we have been actively putting our dry powder to work. We deployed $6 billion of cash into net investment securities growth, investing at consecutively higher yields, thereby limiting the impact on accumulated other comprehensive income, and at the same time, we began to rebuild our derivatives hedging portfolio.

Excluding the impact of the acquired loans and PPP loans, we've grown commercial and industrial loans by $3 billion, consumer loans by about $640 million, while the $2.8 billion decline in CRE balances reflects our decision to serve our commercial real estate customer base in a slightly different way.