M&T Bank Corporation (MTB) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 17, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the M&T Bank First Quarter 2023 Earnings Conference Call. 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, Shelby, and good morning. I'd like to thank everyone for participating in M&T's First Quarter 2023 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 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.

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. Our first quarter results reflect the strength of our balance sheet and liquidity position as well as the impact of our merger with People's United Bank. Compared to last year's first quarter, revenues have grown over $970 million or 67%, translating into 24% positive operating leverage year-over-year.

Pre-provision net revenues have more than doubled since last year to $1.1 billion. Credit remained solid with net charge-offs still below our long-term average. Capital levels remained strong with the CET1 ratio estimated to end the first quarter at 10.15%. During the quarter, we repurchased $600 million in common shares which represented 2% of our outstanding common stock, and the Board approved an 8% or $0.10 per share increase in the quarterly common dividend to $1.30 per share. Tangible common equity per share increased 3% to $88.81 per share.

In addition, April 1 marked the one-year anniversary of the closing of the People's United acquisition. We're pleased with the results of the largest acquisition in our company's history. The tangible book value dilution was only 4% and has been earned back already. Merger costs were less than anticipated at the time of announcement. Targeted expense synergies have largely been realized and are now in the run rate. As a result of these, the above, the return on investment and EPS accretion have exceeded those expected at the time the deal was announced.