MT Bank Corporation (MTB) delivered a credit-positive start to 2024 with substantial NII generation and a resilient balance sheet, even as credit quality faces challenge signals in CRE and C&I. Net income for QQ1 2024 was $531 million on revenue of $3.30 billion, translating to an EPS of $3.04 (GAAP) and $3.02 on a diluted basis. Management emphasized that the quarter benefited from meaningful C&I and consumer loan growth, a first-quarter PPNR of $891 million, and a deposit franchise that remained comparatively steady in a higher-rate environment.
Looking at profitability and operating performance, MTB posted a gross profit of $2.035 billion with a gross margin of 61.7% and an operating margin near 20.1%. The NII was $1.7 billion with a net interest margin of 3.52%, modestly down versus the linked quarter due to mix and rate dynamics but supported by higher-yielding new originations and a re-priced securities book. Noninterest expenses were $1.4 billion; adjusted expense ex-FDIC special assessments rose about 0.6% versus 1Q23, driven by seasonal compensation but expected to retreat in q2. The efficiency ratio (adjusted) was 59.6%, reflecting ongoing investments and seasonality.
From a capital and liquidity lens, MTB’s CET1 reached approximately 11.07% at quarter-end, with tangible book value per share up 1% to $99.54. The liquidity profile remained robust, with total liquidity assets around $62.3 billion and deposits averaging $164.1 billion. The company signaled a disciplined approach to capital deployment, noting that share repurchases remain on hold and will be reassessed after Q2, with capital being redirected toward organic growth and relationship-building. Management framed the outlook as one with upside potential for NII given rate expectations, while acknowledging CRE and C&I credit-cycle risks.
Overall, the QQ1 2024 results underscore MTB’s ability to generate steady NII, maintain a resilient funding franchise, and sustain a durable balance sheet, even as the bank navigates a challenging credit backdrop and a still-evolving regulatory and macro environment. Investors should monitor NII progression, deposit cost dynamics, CRE and C&I criticized exposures, and any shifts in buyback policy as key drivers of the stock’s risk-reward.