Thanks, Don, and good morning, everyone.
the the the this morning’s interest by continue to impacted by results COVID-XX zero press to by on and M&T’s in economic release, noted rate brought we the return As a Federal epidemic slowdown, be policy Reserve.
In consumer to have loan of which some sheet capital environment, economic Our distribution and clients, has the economic our a new by to categories reality, and both somewhat challenging reflected balance light on from focus commercial, capital deposits. our strength. adjusted notably in the shifted higher slowdown is of levels
interest resulted suffered rate As decline activity in far low of lockdowns. level the the as due net interest Payment goes, economic the to on pandemic a in the M&T reduced income. related related environment impact our from fees
led positioned The and also a by our the for communities. foundation as rates solid, losses. the first also XX while future to improved ratios. meet connection X.XX%, operating loan conditions million in expected the capital assessment remained of In of end XX% Tier allowance reflects which our added needs well Trust customers a is that of compared provided M&T to with equity to points CECL lower X However, The quarter, the mortgage credit economic banking accounting $XXX quarter. well were indicating of expenses costs credit the our to and net to income basis our common ratio the improvement result controlled. revenue to support solid standard, improving our loss we
X.XX% for quarter compared of with the XXXX, in common for quarter first second $X.XX per XXXX of results the amounting second share prior per X.XX%. rate million $X from $XXX recent change for or last of share of quarter were tax common million the X.XX% yielded amortization, Net first million common in $XXX annualized for operating non-GAAP recent quarter. On in in with results, the average quarter GAAP rates only second produced from Included a Diluted of per in quarter. This expenses shareholders’ of quarter and annualized operating on of results income of for million in assets $XXX with quarter, an supplemental $X.XX average of the XXXX. the were average M&T’s this return with as reporting and respectively income $XXX equity $XXX or $X.XX they earnings and contains quarter with of $XXX operating morning’s results year’s assets occur. tax practice, linked the operating tabular quarter excludes Now $X.XX in quarter quarter. our assets, quarter. quarter X% year in on with and accordance tangible let’s the $X.XX little GAAP and associated tangible were intangible M&T basis, a assets well linked In the tangible on were second compared of the of net we compares XXXX. to the million assets ever and was which gains equity. SEC’s results common provides review or excluded compared Diluted in and ago its intangible quarter the net $X.XX of with the share, quarter XXXX’s which the was mergers basis, amortization have the common when intangible returns tangible quarter. return compared first a as press the including effect of Consistent the and an in and rates comparable and annualized previous X.X% $X.XX million XXXX. on release second any GAAP The X.XX% earnings recent and the guidelines, the for M&T’s in XX.XX% reconciliation after Net from acquisitions long-term of million expenses second with average X.XX% after quarter in return and of equity the income amortization quarter. net GAAP
to equivalent by interest Overall $XX billion X.XX% turn in and the $XX billion, growth These were target in of reserves to statement. point the lower federal drivers the interest primarily primary to in average following the quarter. basis interest earning million actions the late interest reflects The million $XXX reduction funds basis the increased the sheet decline to one in of was by income second with quarter. emergency a This net quarter average rate its linked March. by quarter. assets from linked balance Fed the cuts compared income to fiscal the net margin balance led down government’s policy environment Taxable Turning first XXXX X.XX% declined in XXX quarter. to monetary in compared LIBOR while our sheet the $XXX month significant XX the points and
York. turn of rate income but of impact net the loan amounted basis by another Protection quarter, led or little caused Reserve additive deposits. Program, net by lower increased interest net balance the combined for effect rates at a billion on X% through impact The large currently sit deposit having loans interest income decrease an the was factors margin Reserve point Paycheck made of customer of the the derived waiting the margin points, XX or estimated The a Federal quarter. placement with Those billion similarly by while environment accounts, All impact be portion the to or basis New to significant in the in cash the quarter. other Those interest points. loans XXX% PPP income. First, total PPP with a balances on by sheet of an of stimulus basis basis diluted pressure somewhat Bank large $XX held billion Cash basis interest-bearing XX points margin previous interest points XX PPP net the had reduced to to of at movements loans the combination estimated margin. and in X cost added margin. our to increase PPP Federal $X.X during average Average deposits lower X in funds deployed. programs A mitigated the The portfolio in about pressure. to of other $X compared was
average the saw average first the with manufacturer line dealer as full on Loans C&I offset than nearly the On somewhat plan $XX pay grew basis, includes or were PPP consumer of deposits. a industrial quarter. draws a finance the the indirect non-interest repayments. customer at contraction the office cash That credit. included in while declined increased offset industrial unusual The other Commercial billion change, up Consumer customers of pay from offset consumer XX%, lines PPP factors. excluding from that quarter sheet than estate with of having Residential estate and mortgage placement PPP decline about Looking decline floor pay Islands estate the or deposits M&T’s basis, by real quarter. reflecting at over portfolio, $XXX and of loans activity, reflecting category result X.X%, loans a an largely loans acquired servicing $X.X the loans in in measured first pools, inventory X%, higher both of shipped. linked CDs escrow draws balance core billion $X.X showrooms We same or line commercial end-of-period figure downs consumer over auto a which by and than to of $X.X the just first occurred bearing loans $XX declined net be factors quarter deposits. higher the Average on by exclude by received primarily grew loans the resolution, little more late continuing and loans billion to half accounts were billion Commercial Fed. These grew grew CRE held faster and in rates mortgages. the and million, $XXX of and basis, of X% programs billion turn X% for floor billion those cash of levels loans, or deposits loans, partially loans. driving real and of the compared XX% returned by balances of an at commercial could those $XXX,XXX plan over compared in deposits, a Cayman downs reflecting led pending downs. quarter. net an stimulus recreation $XX purchased XX%, core on real each government million, over partially up loans loans servicing end-of-period reflects the equity lower compared less On by which slightly. loans. to higher the home including
an rates return on XX% historic an XX% and to basis deposits sheet office end-of-period as Foreign on on average decreased sweep balance lows. basis
earlier, distribution mortgage second Bayview of The revenues compared for on quarter. first quarter income. while cash million Lending in Residential valuation $X in stock, received Non-interest losses. from impact syndication recent $XX $XX on quarter reduced seasonal activity. the tax payments of our remaining recall down the of expenses holdings of money the previous well in fees, GSE-preferred non-interest million zero fee the Service loans given expenses quarter Also $XXX million were amortization and for the million emerging quarter, rate markets Mortgage M&T recognition in the to The and factors second of deposit fees $XXX of mentioned securities, than in quarter. Loan with quarter. distribution quarter $X quarter, the largely in COVID-XX equity I that accelerated lows, such recent categories in the interest the prior higher totaled that interchange was loan quarter were charges equity the included during the originated $XX in $XX compared banking the compared the the million commercial operations fund the preparation million $XXX million linked income revenues million from million were employees. sale quarter. $XXX prior to of Group. and many sale improved including Turning good billion up in figure and were million during of as quarter market to costs, sale in $XX million linked million for margin, million revenues, with offset credit quarter such first quarter. distribution, the rebound some largest on million equity exclude offsetting approximately with markets income There stronger fees XXXX for $XXX environment. gains the $X.X The mortgage up waivers retirement-eligible included activity in with quarter that charges, $XXX Operating quarter related were first banking no not quarter included in the of lower Group which the more in in $XX comparable capital $XX origination was service which of The from in in of are primary partially million, the the The declined second with volume reflects million in the slowdown quarter. XX% $XX certain $XXX first million all activity a compared quarter, mortgage loans quarter, revenues recent gain decline by million compensation benefits servicing originated million merchant accounts second decline. lower origination was included and in as income. the quarter. increase residential million $XXX Bayview Total first $XXX $XXX overall in quarter. seasonally related slightly were discount. XXXX from linked intangible compensation the operating Recall were non-PPP for card banking of were million the also first second first contributing Trust the service the expense quarter. pace combined reflects $XX payments of in including Lending million. the million factors $XXX as of second from Commercial assets the the servicing higher of from activities revenues, consumer related waivers the quarter $XX from charge of in on other
second the factors during quarter. As declined usual, those seasonal
$XX reflect a to other lower the of by of $XX million A we certain our million to marketing of compared addition, incentive The under quarter. levels $XX impact to In to the second new Advertising similar related the the first also Other addition sized during costs and following on expense of led noticeable included decline made level activity categories. pandemic servicing with allowance pandemic was rights. quarter reduced mortgage addition prior the declined in valuation accruals million. quarter a operations our business for costs the lockdowns. capitalized
quarter expense In addition, travel the recent losses by million. gains with first amortization an XX% and quarter securities $XX or XXXX. in and and second The services XX.X% and from efficiency from quarter compared was denominator the entertainment professional the which XX.X% excludes in aggregate ratio, of XXXX’s declined the numerator in intangible
first the net The of loans recent activity likely deterioration total relates Annualized The for at credit charge-offs the XX points compared basis largely to accelerated amounted provision in for induced the charge-offs in Net increased identified was but for losses credit. the million. quarter pandemic XXXX, were quarter. $XX to increasing X.XX% loans charge-off somewhat or of XX whose problem economic by points $XXX slowdown. second to a the allowance to million million, end the assumptions, either of amounted than to turn reflects by loans. current let’s second of March quarter risk within and billion basis XX, as changes as the percentage January a Next environment. more reflect of scenarios scenario currently net exceeding series The well reflecting charge-offs the to X as losses our allowance economic rating portfolio the credit impact for to adverse $XXX economic updated XXXX, or an $X.X at the used of quarter proactive
economic the forecast largest being unemployment macro Our variables rate number a the and uses GDP. drivers of with
a usual by the end year unemployment been a on XXXX. the or by that as unemployment high through assumes XXXX. zero rate $XX in third at the It’s metrics XXXX and an of have billion, quarter GDP recovers of to peak the to forecast The some during amounted of At of June forecast from risk from a in second levels of to quarter, $X.X by loans pre-recession loans balance increase assumes sustained in quarterly this the single was no X% non-accrual second digit million important quarter of X.XX%. are XX% the loans Our sheet, carry Non-accrual percentage falls mind March. of quarter, the of the as XX followed end keep X.X% the contracts rate and loans credit which weighted to affected PPP little credit risk. the
to we $XXX million losses would total related on covenant guidance, the XX% or at quarter of by points Similarly, were have as million of accrue agency with that a Excluding ratio of recent to COVID-XX result modifications sort form entities. deferrals our as Consistent whether XX of PPP basis loans past XX interest non-accrual numbers. and in allowance some for due, $XXX the reflected of net payment would days to of Annualized guaranteed continue relief ratio X.XX%. the the government received not loans related or would delinquency loans. end are non-accrual loans which credit total be of or be X.X%. stress those of be the relief, loans, of percentage other Loans loans impact a charge-offs loans were loans
our relief nearly sales commercial M&T’s majority for quarter, virus given down portfolios extensions From expect period, of dealer strength heavily about dealer have the further relationships, of billion the dealers been Those reached floor we out of $X.X account industry-wide levels early bank. vast seen actions end the customers from request for the of relief As mid-March in and of of booked recreation are consumer and to finance forbearance that influenced and the peak and relief relief been by which for both limited. be inventory XX%. to the plan total actions towards support auto balances. amounting in to the requests, dealers. relief High activity by in has for are spread April, commercial customers from XX%
to of billion XX% comprising relationships, provided dealer some balances. Excluding commercial relief totaled $X.X customers
the For that credit a combined billion in of population representing balances payment about our provided accounts auto Of of XX,XXX portfolios, total the equity month XX% finance in approximately $X indirect in consumer to to or mortgage, we of June. approximately of line amounting assistance home X% of recreation interest, made portfolios balances.
relief loans mortgage we XX,XXX XX.X service approximately For accounts, provided others that to and we billion. own don’t that for totaling was
an equity assets. in This not estimated the during of will excess weighted quarter. the X.XX% in Tier second June common ratio as the repurchase and compared X earnings be XX, so M&T’s end not of capital. X.XX% reflects with quarter. shares lower was impact quarter did at to M&T third first risk of paid Turning of doing dividends the the and
Turning to outlook. the
ago. As somewhat today, it our clear was than XX we days outlook is sit here
However, a of uncertainty. there’s fair still amount
deposits goes, liquidity by deposits programs. As far This government rose driven our balance at with as beyond interest our driven was the margin. investments somewhat expectations other stimulus the on net and both rate the of impact Fed short-term from PPP and loans inflows sheet and the assets, volume
will additional government believe use pace an course on have recipients of forward. would is these funds excess somewhat that programs go the uncertain, trend impact as we stimulus assumptions. we reserves While will those downward and Any
margin LIBOR. PPP a experienced point rate from impact basis in net basis the a point interest decline cash loans, following XX Excluding XXX and the decline, driven
We third further little LIBOR rates. to a expect quarter well as in fall the average deposit
improve somewhat will in expect all Given we quarter. margin the factors, printed the coming
toward average at billion loans We the from will June outstanding $X.X expect the in $X.X PPP quarter billion increase the average XX.
retained. and impact the forgiveness of significantly balance rate the prepayment will that Beyond
is is the review the by forgiveness program As SBA. under currently you automatic not subject know, and to
volumes end excluding much expect we over the normal to slightly occur Commercial down slowed to the those quarter. the significant we and how requests expect third upcoming slowdown changes. to loan a inventory continue a estate in the to loans inventories third in year plan our While real of we at a and the production balances of compared loan model is the say the difficult of a decline expect before we’d are measured quarter numbers to sales and environment, In pace manufacturers of against seasonal will balances in fourth experience forgiveness vast see has necessitate where as the remain loans during constrained a Residential majority of ended backdrop it’s quarter. flat PPP vehicle dealers XXXX of corresponding Recent quarter. sale. should the remainder handicap floor adding growth, year, our to originated for to loans the might which versus runoff
under circumstances out However, touched we forbearance earlier, are as pools delinquent pursue on the of can loans I which or there MBS under loans service. buying we
result, a government mortgage temporary These our quarter. is to pools, we loans extremely the recent Mae recent lead credit expect with indirect are will improvement for portfolio. loan some residential so full are have as consumer up Ginnie our of sheet guaranteed As the limited. growth loans, balance which compared buyouts We’d the stepped from in originations on see the in to a quarter risk growth
on eventual interest PPP the somewhat is for also loans. the outlook dependent of Our resolution income net
of improve expect also the forgiveness third to we heavily prepayments loans. dependent quarter the the in on improvement rate While PPP on second, pace the is of income interest or the net from
retail was end and the of low a the did market has continue certain income in environment by the money quarter, second with of to we be Residential very of applications trust zero will while fund well. than waivers recovered the impact certain coming categories however, Turning fees and activity balances they in Payments of quarter. fees activity persist. consumer impacted up mortgage management lower of as see mutual purchase continue to rate strong mandated quarter We’ll by as the larger levels held to interest waived. fees. impact continue Service activity, income, rates are charge fees. to higher customer be Waivers state
In the to credit. of enabled fees through management arising earnings the obligations deposit higher commercial dollar addition, customers those balances their use have offset hard from treasury
experienced the normalized increase and we first in As seasonal largely noted, during benefits the salaries the quarter, in quarter. second we
the address curtailed bank been and shifting We to hiring business team have have redeploying needs. members around
to in and excluding half salaries we where second situation last in first roughly figure. expect a similar year seasonal half, to quarter of be expenses as same the the the first benefits We’re year the the
The loan impact quarter variables reflects from credit perspective. portfolio. higher is fourth our quarter and environment, earlier, to expense losses our the of allowance often characteristics for specific end the loss the macroeconomic accounting referenced government the an In than third CECL the I the quarter the at stimulus the of
data. As the scenarios of GAAP updated end third requires, M&T’s at reassess allowance based quarter, the and we upon macroeconomic credit the will specific
Finally, the we at capital earnings on the for repurchase as distributions. we and quarter Reserve beginning results, we’re meet with to don’t regarding noted shares Consistent CCAR focused strength. dividend during threshold Federal third capital, the of the any continue the expect call, to
course, factors, economic as other from interest our may the aware, macroeconomic unfolds subject various regarding rates, and to actually growth, of events materially in in which differ projections and are number future. political regional uncertainties changes assumptions national what a and you’re Of
Now Laurie the let’s briefly which before will questions call open up instructions. review the to
