good and morning Don you, Thank everyone.
I'd to COVID-XX acknowledge we pandemic Before the of weeks moment the by efforts that to put has to extraordinary over the every past like employees response our aspect virtually forth few start, M&T's in impacted take economy. a
story to first from have When mobile March, D.C., branches. I'd share heard access our use I times about our since mid relationship but I when from multiple infrequently late money to their like to with appropriate Washington, web to heard customers across a In customers our footprint. a had who of all focus they bankers began to banking. reaching ensure particular on out and
customer decided job I'm anything turn, to it. lost the they this food. was our Natalie, the no do in with passed her of of the food, the end to something branch have team, if asked story the and shared manager to of about who help brought rest said, else attention and there my my need quickly I could hungry. the I such husband we conversation, do away. I banker At one her. The customer,
a of the on branch to previously operations supply assure difficult the our not significant branch can in help went closing the network, I Having home shopping day, her for branch and this the is groceries covered manual. procedure time. After the managed through team delivered their way you customer
to like enabling we operating while in M&T I'd share customers some Next, highlight commerce. helping practicing how and that current believe social metrics the distancing, is safe environment,
As appointment-only normally are restrictions. our last few ATMs XXX are domestic and and Drive-through lobbies of Friday, XXX basis. full-service and branches operating open with operating windows an on branch of are a
has maturity low relief For loan a and deferrals, consumer rate products. fee including of M&T provided options, host loan and customers, commercial extensions, payment interest waivers
has for or relief Our help worked those for customers mortgage others. to loans servicing we seeking group we for service payment own
total we've whose billion. some balances far, to customers XX,XXX loan provided over So assistance $XX
serviced balances under loans Just mortgage In others. the for of an total, of those we XX% we've XX% assisted are approximately service.
$XXX million loans, of with our Similarly, just loan equity balances and These of provided payment of and other home with X% and represent customers relief. customers credit over consumer card finance, nearly XX,XXX for customers we've some recreation consumer loans, form hold under auto portfolio.
be intended for helping employees, offers expenses, and been program the would utilities. loans government's laid This backed has or Program business rent M&T PPP. business small business as paycheck access Paycheck such off, customers to Protection small administration, by sustain the who to otherwise monthly
the get are have total Those ready additional make for made approved. bankers collectively more possible clients XXX,XXX get clock is than more associates employ worked additional help we clients of a M&T we our total, workers. to totaling around customers. that Over companies if billion. funding And backlog helped PPP XX,XXX approved of X,XXX In to loans $X.X a than M&T for available,
standing, we to short-term help cash good small, and pandemic challenges. modifications payment their large credit or customers, other deferrals business short-term other are flow who manage to agreements For offering them in the and existing entered
modifications So be with funds for payments principal customers' a do our accounts. week, department to businesses deposit the of of into in ready stands our our far, treasury for our weeks, from strength know We we've last COVID-XX communities. nearly began and an and $XX there X,XXX provided coming we to more aggregate will to receiving team billion. be balance the source customers And stimulus of
common income per for quarter the and quarter. compared compared $XXX with at the in first XXXX. $X.XX let's million $XXX $XXX quarter the for in of quarter XXXX in of look for Diluted and million GAAP in million quarter the with the was first $X.XX the Next, the quarter. financial share results quarter ago of earnings Net XXXX linked were $X.XX the fourth year
X.X% quarter. basis, previous return annualized assets with a GAAP average quarter results M&T's average X.X% produced an annualized on of rate and On in respectively, equity and XX.XX%, of on first an the of of X%. compares return rates This common
results, after assets Included recent quarter tax $X.XX intangible the common little $X or the share, of from change quarter. from in prior amortization GAAP expenses per were in million the amounting
Consistent with of when reporting with ever well of occur. as tangible acquisitions the of effect mergers have net our expenses assets or we long-term they and after-tax gains from basis, practice, on intangible excluded a operating associated only any amortization or its M&T results which provides supplemental as
M&T's quarter, $XXX first $XXX and year's intangible first with in million income for in linked million. million was excludes amortization, quarter quarter. which $XXX last net compares the the operating This
X.XX% of Net quarter recent of common rates XX.XX% annualized quarter. the and for average assets equity quarter share of Diluted comparable $X.XX net and The returns tangible compared recent the common XXXX. and average per earnings XX.XX% with the shareholders' fourth yielded XXXX's were $X.XX of fourth income were in X.XX% for return in quarter in tangible operating and operating the on XXXX. $X.XX first quarter
equity. assets this tangible with accordance of guidelines, non-GAAP contains morning's press tabular and In reconciliation SEC's the results, release and GAAP including a
quarter that employee quarter's addition earnings million in a Included for in noteworthy GAAP was, of This trustee $XX ownership our Recall by after-tax amounted $XX effect reserves plans. to a $X.XX stock legal per net as subsidiary's results and relating of first role customers share. a both diluted common were to that to item. for or million, impacted the operating XXXX
Turning equivalent was statement. a comes net the interest to income the This the average sheet level of million Taxable assets with by of combined quarter from stable million income balance a result down margin. net $XX in $XXX linked lower interest and XXXX, quarter. nearly first as interest-earning the of the
the was Margin for quarter quarter. X.XX%, up the basis past in X.XX% point linked from X
assets, lower absolute on on an indicated level points. with a XX a of call, a our more average of the the a funds of estimated proportion we of conference provided January As benefit earning margin combined deposit loans, to basis with favorable Fed, mix including higher
in Further XX caused helped rates decline basis decrease, in point interest modest interest-bearing by basis cost declines burning three points about of interest relatively -- deposits. an a of to pressure margin, the the
As a result residential basis mortgage-backed in of premium higher securities and pressure. loans Hudson points of on accelerated accounted acquisition forecasted City on amortization mortgage the for prepayments, acquired another X
of non-accrual in margin factors the day CECL. combined compared three of the loans include quarter basis interest point in recognition the the reduction. count as other includes factors adoption our quarter a change Those with loan acquired to the of income and net prior lesser to a Several which result on interest, contribute
just deposits decline with by the Average a X%, a securities, assets XX% investment Fed with X% over in those X% earning declined reflecting in loans previous partially declines quarter. interest increase the in compared a offsetting average and was decline outstanding
including an growth average plan category and by on at estate linked compared also basis loans Commercial grew dealer Looking quarter. in by X% the floor Commercial quarter. with increased the fourth loans loans. the X%, real compared to loans industrial
the City consistent mortgage with than approximately transaction million. continued which loans expectations. acquired or loans, estate to portfolio our down, Hudson declined $XXX real X% by in Residential include The more pay
nearly loans. up in was where and has X%. lines Activity recreational been in auto Consumer declines quarters indirect loans home growth consistent equity, loans recent with finance and outpacing were
XX%. lines basis, nearly sooner liquidity. undrawn of accounted more increased estimate later and customers as loans increase, to many own to billion that for led an billion manage rather draws access than $X by industrial COVID-XX commercial or $X.X previously crisis On committed contractually the their end-of-period on than that We funding
quarter which maturities. There deposits were quarter. exclude and and received or CDs deposits XXX,XXX, M&T's that X% at the Island deposit factors in less a to commercial deposits, office declined Cayman the the customer seasonally prior than mortgage compared multiple from time over change. escrow core nearly fourth average Average high drove deposits, $XXX million Lower decline
customers view attractive, Those factors as customers alternatives. customers' activity made into operating on sweeps, immediately at safer draws as flight deposit lines, sweep and lower off-balance than by being moderate were partially of by have deposited less on as sheet accounts, quality back to a levels rates credit M&T lower funds offset other
as basis, inflows the as end-of-period and levels Lower of were reflecting X%, of quality of escrow deposits core an issues, to deposits, the On well I up sweeps off-balance new sheet flight mentioned. just mortgage line redeposit draws.
historic with on see office Foreign decade. customers, XX% on commercial expect basis. during half decreased prior zero of rates nearly our less an the With average the an activity basis experience we end-of-period first sweep environments on and by lows, sweep deposits balance X% consistent nearing to rate over sheet the
Instead, likely or checking. remain accounts, DDA operating either interest their in funds would
The in stock. -- with the $XXX in non-interest valuation income, compared $XXX prior GSE to quarter. our of $XX on holdings Turning million million on recent quarter securities, remaining largely included totaled million equity the non-interest of million losses income first $XXX quarter, preferred
of While million quarter, XXXX's included final similar $X losses.
the recent the fourth from loans mortgage linked Residential sale more were Mortgage XX% the $XXX million compared quarter. quarter. than million $XXX million up banking the with originated in quarter, in $XXX million revenues $XXX in for quarter, in were
servicing prior activities from revenues, in $XX $XX banking including million improved quarter. in mortgage origination residential quarter, Total the million first and the were
million a million the reflects volume million. revenues for first was banking $XX Commercial in sale the on stronger the of increase the figure mortgage originated loans quarter, XXXX combined compared were in $XX And gain the quarter with comparable $XX with The higher first in sale quarter. margin. linked of
recent first were collapse, months, previous was from were by equity quarter Trust in markets. solid in for quarter, income the $XXX March million the first slightly Results in but the dampened two quarter. through million the down the $XXX then
seasonally in Service lower with normal, the accounts slowdown driven in compared reflected fourth activity. COVID-XX million $XXX in some quarter charges the were customer million quarter. payments decline The addition levels deposit from activity the to of linked $XXX on
results XXXX, a BayView of distribution amounting During M&T's to cash million. a quarter Lending Group; from distribution $XX $XX of the first million quarter of similar received in included the first M&T XXXX
operating intangible million. which exclude of Turning expenses, expenses for assets, first the amortization were $XXX to the quarter,
expenses litigation million addition $XX of the XXXX operating As the the noted, $XXX in to included quarter of million first reserve.
accelerated reset the as expense Operating expenses quarter the as of $XX million retirement-eligible recent approximately equity the payouts FICA on certain included annual seasonally to compensation higher the contribution, match in well employees, and the unemployment the compensation compensation annual insurance. HSA and impact related recognition payments of payments FICA of for incentive costs XXX(k) for
to quarter. Those million amounted benefits same of approximately an in in first items salaries $XX year's increase last and
expect to we those enter as second the usual, factors As seasonal quarter. significantly decline we
Excluding and quarter. were contractors and products The on those as our more to factors, reflects year-over-year new increase outside talent, changed we've of prior salaries benefits reliance the us from as bring our to little customers noted, has bench headcount and seasonal quickly. we've a previously our allowed been higher which services deepening reduce the
mortgage valuation allowance the quarter XXXX's the operations a was addition allowance rights. on quarter. the Recall, million in servicing of included that reduction $XX past for in cost $XX Other capitalized there fourth to our a million
each which seasonally XXXX's compared denominator, from the ratios quarter the quarter XX.X% with or first and ratio, in gains in of was recent Those in intangible XXXX. the the fourth in and amortization of securities elevated expenses. XXXX XXXX numerator the efficiency excludes quarter compensation XX.X% and The losses quarters XX.X% from the first reflect
Next, What us early been a XXXX to economy of than turn of expected. the let's would relatively this faster at credit. have and most had year end healthy deteriorated has
costs the the likelihood the XXXX were of fairly in pandemic we quarter increased are and loans the credit preparing and changes first stimulus impact economic as programs of the for benign, charge-offs net unprecedented non-accrual unfold. While still
credit At accordance of in the $X.XX with for billion or incurred amounted X.XX% loss losses allowance end to of then the loans. prevailing accounting XXXX, M&T's standard,
loss In million lifetime CECL. added expected with current the standard, reflecting adoption to of M&T higher loss connection the credit allowance, under $XXX expectations the
for or provision losses certain the Those billion growth, increasing million such for loans. expectations included loan The million, and to economic credit amounted as $X.X exceeding charge-offs X.XX% of unemployment assumptions net $XXX factors. by first in losses $XXX to the other quarter allowance and
series updated indicators double reasonable GDP assumptions, future unemployment The an half an macroeconomic in significant in reflecting moderate reflect deterioration including used scenario. digits supportable in and rate, second of currently recovery significant the allowance assumptions include economic a a a second Those forecast, of our The reflects contraction the more of adverse the and a assumptions XXXX. quarter. of approaching
loans. acquired at a March loans Non-accrual X.XX% the accounting amounted or standard from M&T billion, that loans XXXX. during In non-accrual of of our million the to million the to an CECL of XX discount X, declined as loans of for quarter. December. $XX adoption the $XXX as $X.X reclassification, non-accrual loans XXXX, Non-accrual on loans $XXX increase January amounted of were connection Thus, at accounting of previously except with end million past reclassified
amounted loans Net as XX million. the quarter to first points for was At percentage a quarter the of total for basis charge-offs loans net the recent points were loans of XX the end $XX quarter. of in non-accrual a fourth Annualized compared with percentage the charge-offs X.XX%. quarter, basis as
days we continue the million on due, at guaranteed XX% XX by recent of $XXX Loans entities. to or were quarter. related $XXX past Of interest, loans, million end government those which accrue the were
M&T's earnings of an reflects loans, was Tier net estimated net and which X.X% X.XX% and higher with dividends at fourth of and compared of impact capital, ratio quarter, X common the share end the to repurchases. Turning equity the
shares M&T X.X During an of repurchased the million. $XXX common first stock cost at aggregate quarter, million of
and anyway, statements without start, made we longer any the no I'll earnings conference saying, turning the on the Now, To January forward-looking to applicable. goes it outlook that are call outlook. say it but
make as As far activity. Fed refinancing the wouldn't particularly our liquidity term the balance short-term shorter investment environment. assets, this expand from with as goes, the in of and purchase contract fluid deposits, to deposits significant We operation, servicing be the sheet with expect investments somewhat will securities any or
to impacted previously movement as well the the quarter Holding principal impact for for once loans expected the than balance pandemic Future government average control. be of believed of into draws first the the will economic pace average restart, aside deferrals. and year breadth will expand programs is moment, the line as by of the under faster be somewhat as any end the the at roll a
a of As mostly are are automobile inventory extent. vehicles, although closed somewhat sales the lesser showrooms around as recreational country, those and are to stalled
certain balance programs is the Focusing program. and on on government their impact the PPP sheet, the most
uncertainty to the loans. balances these balance our the of added to While will is as the a are that is sheet there known, be yield, as great degree duration of
unclear. in program in coming These the are two-year than in sheet being balance for less interest will extensively uncertainty time, loans forgiveness remains portfolio our into the the margin prepayments size in loan any, introducing result Street still many as and the and on finalized the are months. net of details Lending of that but The such, loans, level participation the being of program, Main if the
up in the held well Fees first quarter.
to monitoring interest their markets businesses. in our rates, are responses impact closely and However, on pandemic assess equity we trends
markets continue state are. activity. to will slowdown impacted money of zero Trust environment for management debt be and extended as low while with a by the the market by the fees, fund rate equity be in income potential they of Residential waivers mutual an very capital resumption markets applications likely rates mortgage the of persists strong as
customers. Payment restaurants, fee more Certain leisure travel volumes lockdowns. we're impacted in our offering other being aggregate industries, are activities distancing by waivers and down as social are slightly. locally-mandated to And heavily consumer such
effect. while those activity will remain payments persist in restrictions Lower likely
as had to We and first seasonal normalize we salaries every expect it does the year. quarter the surge in benefits
been curtailed needs. address this team actively in the to around business members environment shifting bank and redeploying have have We hiring significantly
travel the in Like country, other place other such Credit the and use impact and of businesses of around mandates predict. entertainment difficult are as shelter costs expense base, to expense. will aspects our contractors
But as are challenging a mentioned we earlier, for preparing environment.
customers and credit several debt of larger of recent events work the will be While our impact forbearance our period the ultimate through for customers commercial a period likely not through consumer months. restructuring, clear navigate on temporary
to has not capital capital, us Turning current caused our environment reconsider allocation long-standing philosophy. to the
Our we in of economic the to of a customers source is primary serving our communities serve. while use support strength the activity as capital of
We objective. levels that support maintain to will prudent capital of
what our the you national subject and events regarding in Of learned. we've assumptions which just future, are various macroeconomic a materially as to and number as aware, course, actually in economic are political uncertainties growth, differ changes projections rates, of regional other from and may interest unfolds factors,
the Now, up call will let's review open questions, before Brandy the to which instructions. briefly
