Thanks, Don, and morning, good everyone.
a seeing expenses with as pace percentage deposit from already over lowest the initiated the increases three rising which by Highlights asset the seen earnings in to These by margin, quarter solid. a noted by for reserve net the to growth interest of improved quarter's net a Credit further this yields morning's in be for interest short-term fees the been growth lending XXXX. a rates as up price three results of of in loan XXXX a X% trust of income, results expansion strong increases. interest were in remaining the a and charge-offs interest environment of quarters driven federal the with fourth net release, coming growth for loans was over result growth As noninterest with notable industrial contributed continue aggregate that years positive include: of the the first XXXX. quarter. revenues aspect of include credit characterized pick in fourth that the full-year commercial net net highlight, further continuation since in of combined we've in the taxable well-controlled income One a remains equivalent M&T's trends level manageable past
that expectations, to not capital While back the meet excess generated loan subdued our we return us growth growth did shareholders. enabled our to
repurchased million common $X.X XXX% M&T repurchase resulted for diluted decline compared with dividends For the $XXX in billion XXXX. a the to and the paid for in full-year stock average resulted ratio X.X% common The of year. payout year, shares of XXXX in program our shareholders. a That of when
tangible provision M&T linked of and operating the contribution Now which let's specifics assets On $X.XX to million down on of income amounted and fourth as M&T increased results fourth XX.XX% with in or changes. returns noteworthy only equity income was $X.XX securities, intangible $X.XX in respectively per rates and million which in assets quarter X.XX% release gains SEC's return quarter have the compares in of to the contribution $XX the with M&T XXXX common a assets X.XX% those XXXX the in to per a operating shareholders' taxes approximately $X.XX of including for to quarter look quarter Charitable $XX which the common XX% and comparable amounted any in well amortization for XXXX's were of common tax GAAP GAAP common GAAP to from for operating slightly Net with Diluted M&T's quarter for $X X.X% corporate the earnings common of quarter. recent of Both or effect Also tax $XXX in In in which quarter. after-tax the and included million per fourth The average improved and recent an earnings the income amounting operating and Also our and a rates. $X.XX expenses compared in and the at million Diluted previous net they of XXXX's by after-tax $XX share. third or after-tax M&T's That change income $X.XX million arising M&T's were on third amounted fees acquisitions tangible X.XX% to XXXX that average in quarters in the an million for This the average accordance fourth of M&T's common XXXX's assets quarter share million gains common to $XXX and was equity share on realized quarter million XXXX, quarter the of quarter rate of per reflected practice, recent of were produced per for $X.XX tax per from earnings Net share, of yielded the was $X.XX from XXXX the in of law quarter. year-ago as approved M&T's to for in annualized fourth reduction on the net intangible quarter common by $XXX its of fourth XXXX. million, quarter. quarter, the the with XXXX. compared XXXX. of with Included with This Included investment IRS or income results items. average Consistent expenses of Included in quarter XXXX amortization in million of tangible the GAAP a and XX.XX% fourth tangible the $XX $XX an XXXX. assets in net $XX quarter from amortization a and rates taxes, reconciliation the annualized equity. income quarter contains fourth the million associated the million intangible in or guidelines, on $XXX were results return tax the third supplemental prior return fourth and long-term of by the XX.X%. quarter million of fourth share. $X.XX basis, XXXX impacted Foundation. and amounted certain was results, the amounting results quarter results with annualized was provides after-tax the of were to from after-tax to reporting compared press net provision tabular $X.XX this GAAP were effective linked also a share. in effect of of per for was morning's fourth $X.XX the $X.XX effect loan quarter operating common which the when quarter occur. fourth rate share excluded as result excludes we ever impacted or mergers share. quarter million of for in $XXX million was $XXX quarter. basis Charitable the per certain $XX effect Foundation was federal fourth changes $XX results common XXXX's treatment in retroactive the non-GAAP quarter.
both by operating reduction As were the taxes the corporate income federal GAAP impacted and net year-over-year a in reminder, for for earnings comparisons XXXX.
to cash September estimated higher added fourth to of me, We XXXX, quarter. X.XX% million the -- from net billion margin points benefit Turning to increased flows in and interest The to Hudson that basis estate and the had in margin. point X and basis which placed the quarter. quarter. interest interest $XX The December the X.XX%, dilutive of or of categories, statement. the loans reinvestment was of quarter. of by acquired the estimated X the fees cash were in income Average net continued the as pace loans from asset increased added from margin million increased slow demand interest margin. received the trust ongoing slightly the fed short-term following fourth loans -- the rate offset linked balance prepayment actions, the level balance up A basis sheet funds higher improved than loans result Taxable runoff effect interest points on loan was residential The other than of excuse deposit on primarily mortgage acquired compared linked equivalent higher an City X an X a balances quarter that estimate $X.XX as of quarter with up less primarily of $XXX the real from fed X% rates basis average income the third combined with the points. estimate deposits we a Cash previous growth on much securities. with more higher X.X% investment shorter
commercial with and the X% pace X% about inventories quarter, a loans on estate the Consumer of with linked which Looking expected than were comprised X% prior portfolio quarters. combined indirect were auto seasonal a transaction compared growth in loans are average City sale. loans of and growth consistent loans to loans for held which acquired lending, the a of This Residential finance in included Tarrytown, in real addition increase loans million auto lower about estate in largely by and X% Metro real previous were Hudson quarter the loans floor loans. down loans recreation mortgage The dealers in declined Pennsylvania and the includes than at loans by Commercial lines of the continued rebound C&I result in to increase with home up with C&I paydowns. in $XXX plan multi-region a decline industrial in basis the loans. finance loans. and an loans $XXX million in mortgage the realized less York our quarter. seasonal strongest to City, compared a commercial third in their declines other New Regionally, outpacing region, with Philadelphia, construction category, continuing loans equity as higher in growth and offset level paydowns modest with
exclude up New increase. The spot trust core quarter. Office $XXX,XXX with levels deposits, X% deposits and primary the received the CRE Jersey customer mentioned demand the previously M&T's about which loans. I CDs Average driver third Islands over the were Cayman for at were higher of was annualized bright compared deposits of
by the with decline revenues the the in noninterest mortgage to compared Mortgage million banking loans third Noninterest portfolio for offset with compared million quarter. $XXX in slightly of were quarter. were $XXX on in residential were $XX in results remaining Commercial a the $XX quarter's down million recent the banking million in linked X% fourth in fees million million previous million valuation mortgage with activities from million in Turning in prior servicing and revenues subservicing $X $XXX partially the the mortgage quarter, income attributable residential with compared about XXXX's quarter. $XX was compared the quarter. fourth in included fourth linked up were revenues the $XXX loss preferred Residential in and up higher XX% boarded quarter. with million Total in the $XX the was million stock security on in our banking origination quarter prior million quarter. A quarter. gains to recent revenues third $X The origination quarter the including we $XX both $XX income. million GSE the sale million Trust third quarter, during quarter, in quarter servicing $XXX quarter. $XXX million the of originated totaled compared from up from income portfolio
commercial in New million weakness from headwind. markets prior accounts the gains the were coming business generation of $XXX deposit $XX reflecting a of result customer essentially continues were as modest lending. was rate million a the charges from prior $XX FX quarter. activity to improved during improved largely the Service quarter be while on strong, interest unchanged the equity swap and pace by Trading quarter million,
expenses. fourth quarter were the which Operating exclude the expenses assets of amortization for million. intangible to Turning $XXX
earlier, I expenses fourth the contribution quarter's $XX to million a As M&T operating the Foundation. Charitable reflected mentioned
$XXX or the numerator elimination which compensation from include the offset by in excludes attributable arising the of essentially recent increased contribution aggregate quarter. reflects by performance. the from higher operating million increased cost of does contribution, last The solid fourth ratio That the securities was and which XXXX's partially efficiency from were with incentive gains quarter. with the operations. the FDIC's ratio, and denominator quarter. increase the to XX.X% the increased one in working expenses losses XXXX's quarter intangible salaries surcharge quarter, day financial quarter amortization expense bank charitable was year's Excluding million benefits flat of The XX.X% the remaining and previous The in being XX.X% from slightly other additional $X in third in categories large higher during from expense prior
Next, to turn credit. let's
XX in total a net in large the be acquired loans by have loans fourth driven the loans percentage criticized compared credit were million line with with charge-offs of the million past primarily of Our were at basis X.XX%. at a loans ratio third the a the charged-off total past which on was quality XX% matching over CRE at accrue credit at by ending losses recovery continues $XXX million results that and charge-offs. at continue few with increased on quarters, a loans to quarter acquisition in these by provision billion for for days did Loans interest allowance $XX of third related was $XXX of quarter. credit in entities. the We sizable excluding to trend couple as points for of included been end to loans or Nonaccrual seen the of total years. points quarter. that quarter, Recall the X essentially the Annualized increased million are prior loans with loan. the the end trend $XX see government due X.XX% of the The largely previously Of fair quarter's loans, end few value circumstances. allowance guaranteed quarter. quarter, the December X compared recent end losses December XXXX. of the XX indeed, rise $X discounted we point to during The by unique past with XX over basis a marked seen loans the nonaccrual a the the the XXXX quarter consistent of basis net ratio $XX to The was million
million the of Turning repurchases capital. the growth, reflects decline fourth quarter. equity -- during estimated decline during Tier end impact improved at which $XXX and the stock common of with the of common M&T turn X loan was repurchased assets. higher its ratio XX.XX% end The quarter, risk-weighted quarter. share retention of period XX.XX% led an in the M&T's to third the to compared reflects earnings the retention
the XX.X of and full-year common million the As billion stock noted to of for shareholders. resulted shares M&T common its earlier, ratio payout This year. in XXX% million $XXX for $X.X a repurchased of valued at dividends XXXX, paid our
per also in corporate net included the and equity common in benefit income We earnings tangible respectively. the XX.XX%, note billion and was results operating to from full-year XX% per that as of XXXX. equity share lower common $X.XX intangible highlights results. were prior Next $X.XX net operating Net earnings the return XXXX's cover expressed based take average to Diluted a I’d billion XX% average key for $X.XX share Net in and rate of GAAP $XX.XX, moment improvement XXXX common shareholders' was assets $XX.XX, from $X.XX X.XX% a in average up like was prior in up operating excludes diluted GAAP the operating full-year rates. on improved $X.XX a and XX.XX%, income, produced on tangible income and year. sizable $X.XX assets U.S Net respectively. billion from tax These amortization was which from returns improved billion average common year. of X.XX% XXXX. from income
year-over-year improvement improved and X%, was the Pre-tax diluted significant. However, GAAP taxes as both by by net shares a result the common X.X% while lower operating of declined repurchase outstanding activity. notwithstanding income
Now turning to outlook. the
fairly call forward into outlook we shared is consistent January. Looking our this one last with on XXXX, the
still we remains financial cautious. healthy. be commercial since annual expect ended. although the average remains customers slightly relatively a high, in slow low growth growth seen are in positions customers consumer consistent are recession of last at with Consumer level the last and both very the more Unemployment commercial confidence GDP and it may the seen -- XXXX, from seen pace While to rate
continues tailored there regulatory to approach toward for like addition, measurable be banks progress a M&T. In
Loans usual from by events XXXX. However, half for residential about quarter thoughts other from loan average a the aggregate X% fourth at caveat XXXX by were a This of never a decline the with are outstanding residential in you the of unfold about XXXX end that one XXXX, year. basis declined reflected aggregate X% average of the XXXX total for of offset full-year other end entirely manner in quarter up XX% on few by of one here estate but the the expect, in real loans the the half loans portfolios. XX% were in the portfolios. in of growth mortgage with Average fourth growth decline loans X% X% offset upcoming a in down
While stronger two Paydowns notably over industrial as quarter any noted, and growth past the the was past quarter in commercial wildcard. to continue be years. loan a than
consistent active, better was CRE the Our last slightly The somewhat this and market point -- pipeline perhaps XXXX it notably multifamily or enter as year. than is in XXXX sectors. at healthcare we with most remains
case be construction projects which are and was for funded, coming CRE XXXX, in dictated existing for will new completion. for as reach as by As construction demand construction projects as the the at year loan financing, financing rate -- project construction the growth well permanent
We expect the low likely at residential real runoff double-digit portfolio pace. consistent a estate continued of
of gets amount pricing as to the standards continue portfolio attractive the And to underwriting see will in decline dollar in consumer area. continue the that Although lessen we smaller.
could Given that a in If will M&T full-year for of lending is trends, loans exceed single-digit C&I average slower grow these experienced quarter a the continues, our the total expectation improved basis that including pace. that fourth at pace low XXXX paydowns, rate. on we
year. late dependent A still has Any outlook offer raise XXXX on further calendar been the our Deposit by an from to from Fed interest the the appears the as benefit margin quarter they is should of the scenario occur, future focus and upside. the in X.XX% interest last in over XXXX, some year likely remains somewhat fourth flat actions reactivity for moderate should since in to area the September for extended be potentially rate Fed As pricing net began than higher actions. of expansion rates case, to the rate in margin Fed and past. the full will a actions December lead
halts we we entered increase bring estimate more we’ve Fed time. from Wilmington pricing the seen on the X in pace deposit pressures a into or in a As hypothetical excludes on of have through challenge to This the the short-term year, result will on basis revenue. loan for our environment potential period rate margin will average balance modest interest reflecting of in interest an on to reported Based specifically balances on year-over-year interest which but the assumptions expect lesser higher is usually Trust, in residential pricing mortgage its short-term of perhaps assumptions, at last continue the That likelihood increases, slows there effect in cash basis with brought higher the for will interest area likely hedges of the impact a of than future benefit residential rate have XXXX, reactivity. continue interest a respect outlook quarter. level a in previously, and growth fourth a Based the to X embeds of banking impact points. margin, interest deposit cash rates rates deposit year-end for net the on XX that on of mortgage level incremental Fed point was rate series impact would margin at net originations. The the current income. the those The to
potential to MSR offset for noted and which originations. single-digit XXXX been As trust our the have in appetite fee remains range or could single-digit offer in low the slower better growth a businesses pace. have outlook servicing additional in for consistent the with mid growing revenues, The or the capacity a we've exception business. subservicing experience we owned of This with with remaining previously,
expect in litigation $XXX full-year reserve from XXXX the the year. growth we expenses, to million XXXX's operating Excluding total low operating for over last expenses nominal addition
a of We includes as from in first handful a for As FDIC increase benefit expect budget modest the that compensation our vested XXXX This we each annual income would realized approximately In of that million. provision items. year in as the year leverage surcharge. the you equity and reflects Last benefit when approximately we the is was $XX of our the taxes to million grants primarily usual XXXX, quarter's of operating prior on wouldn't prices incentive of than date. increase and based remind first stock usual practice, which grant for at quarter. well we XXXX's XXXX, positive a benefits higher other first the price, in the at revenue At our our $XX full-year elimination outlook. quarter similar we equity rally our meaningful benefit price levels, the current seasonal stock salaries expect there's in unless
remains balanced. We credit below for just consecutive charge-off Xth outlook points. experience completed of Our basis year our XX net
and I'll years, not get in will or outlook Eventually we’ve particular criticized are long-term reiterate For be will There each trend can't right. that to that continue on geographies. that cautioned and the although tick this industries of some the I four past losses nonperforming continue there apparent modest this averages. year. upward, pressures no weaknesses approaching but loans,
of XX% approximate Regarding is our the the XXXX the of XXXX, An some discrete range appropriate taxes, during XX% in rate effective to be proved conservative. occur items year. for tax XX% coming for rate to unless for more outlook
while through our rules the quarter. XXXX end we of banks continue execute capital, to to year's capital its amended testing second capital implements will plan of our the stress As size, and Fed this for
for expect capital in final from plan. our time rules Fed XXXX We the
credit to our expect our the capital argues underwriting end by of manage range levels end peers. our continue maintaining capital lower approach we volatility of resultant group the low maintained We peer and consistent to the to levels lower towards earnings believe our towards our that for as
unfolds economic regional macroeconomic what from you’re other various rates, actually changes aware, Of future. differ regarding and uncertainties national political projections course number are our events factors in which to subject and the interest of may in growth, assumptions a and as materially
before instructions. open review questions, will the which the call let's to Laurie briefly Now
