You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: He expects to rejoin us shortly.
When I handed over the CFO reins to Darren five years ago, one of the things that I was happy that went with it was the call.
But although Darren is doing well and we expect his return to action shortly, I boldly volunteered to handle the call today.
And just so you know, my agenda is that I do a good job but not such a good job that you won't be clamoring to have Darren back as soon as possible.
Outside of our usual seasonal first-quarter surge in salaries and benefits, expenses remained well-controlled, and credit trends are indicative of the state of the loan portfolio and the forecasted improvements in the economy.
Diluted GAAP earnings per common share was $3.33 for the first quarter of 2021, compared with $3.52 in the fourth quarter of 2020 and $1.93 in last year's first quarter.
Net income for the quarter was $447 million, compared with $471 million in the linked quarter and $269 million in the year-ago quarter.
On a GAAP basis, M&T's first-quarter results produced an annualized rate of return on average assets of 1.22% and an annualized return on average common equity of 11.57%.
This compares with rates of 1.30% and 12.07%, respectively, in the previous quarter.
Included in GAAP results in the recent quarter were after-tax expenses from the amortization of intangible assets amounting to $2 million or $0.02 per common share, little change from the prior quarter.
Also included in the quarter's results were merger-related charges of $10 million related to M&T's proposed acquisition of People's United Financial.
This amounted to $8 million after tax or $0.06 per common share.
Consistent with our long-term practice, M&T provides supplemental reporting of its results on a net operating or tangible basis, from which we have only ever excluded the after-tax effect of amortization of intangible assets, as well as any gains or expenses associated with mergers and acquisitions.
Net operating income for the first quarter, which excludes intangible amortization and the merger-related expenses, was $457 million, compared with $473 million in the linked quarter and $272 million in last year's first quarter.
Diluted net operating earnings per share were $3.41 for the recent quarter, compared with $3.54 in 2020's fourth quarter and $1.95 in the first quarter of last year -- of last year.
Net operating income yielded annualized rates of return on average tangible asset and average tangible common shareholders' equity of 1.29% and 17.05% for the recent quarter.
The comparable returns were 1.35% and 17.53% in the fourth quarter of 2020.
So let's take a look at some of the underlying details.
Taxable equivalent net interest income was $985 million in the first quarter of 2021, compared with $993 million in the linked quarter.
This reflects a higher level of average interest-earning assets, primarily cash equivalents, and a shorter calendar quarter.
The margin for the past quarter was 2.97%, down 3 basis points from 3% in the linked quarter.
The primary driver of the margin decline was the higher level of cash on deposit with the Federal Reserve, which we estimated reduced the margin by 5 basis points.
And that was partially offset by a 2-basis-point benefit from the shorter quarter.
Similarly, the $8 million linked-quarter decline in net interest income reflects the loss of income from two fewer accrual days.
Changes in interest rates had a minimal effect for the quarter.
Compared with the fourth quarter of 2020, average interest-earning assets increased by some 2%, reflecting a 9% increase in money market placements, including cash on deposit with the Federal Reserve, and an 8% decline in investment securities.
Average loans outstanding grew by – grew nearly 1% compared with the previous quarter.
Excluding PPP loans, average loans grew $1.1 billion or over 1%.
Looking at the loans by category on an average basis compared to the linked quarter, commercial and industrial loans were essentially flat with increased dealer floor plan balances and other C&I loans, partially offset by lower average PPP loans.
Due to timing of originations and the receipt of payments, average PPP loans declined $453 million from the prior quarter.
Commercial real estate loans declined less than 0.5% compared to the fourth quarter, indicative of very low levels of customer activity.
Residential real estate loans grew by 4%, consistent with our expectations.
The increase reflects purchases from -- of loans from Ginnie Mae pools that we sub-service, partially offset by further runoff of the acquired mortgage loans.
Consumer loans were up nearly 1%.
That activity was consistent with recent quarters, where growth in indirect auto and recreational finance loans has been outpacing declines in home equity lines and loans.
On an end-of-period basis, PPP loans totaled $6.2 billion, up from $5.4 billion at the end of the fourth quarter.
Average core customer deposits, which exclude deposits received at M&T's Cayman Island office and CDs over $250,000, increased 4% or $5 billion compared to the fourth quarter.
That figure includes $4 billion of noninterest-bearing deposits.
On an end-of-period basis, core deposits were up nearly $9 billion.
Foreign office deposits increased 17% on an average basis but were -- I'm sorry, decreased 17% on an average basis but were essentially flat on an end-of-period basis.
Turning to noninterest income, noninterest income totaled $506 million for the first quarter, compared with $551 million in the linked quarter.
The recent quarter included $12 million of valuation losses on equity securities, largely the remaining holdings of our GSE preferred stock, while 2020's final quarter included $2 million of gains.
Over the past few years, M&T has received a distribution from Baby Lending Group in the first quarter of the year.
Results for the first quarter of 2020 included a $23 million distribution and a change in the past timing.
As you may know, M&T received a $30 million distribution in the fourth quarter of 2020, as expected.
No distribution was received in this year's first quarter.
Mortgage banking revenues were $139 million in the recent quarter, down $1 million from $140 million in the linked quarter.
Our residential mortgage business continued to perform well.
Revenues from that business, including both originations and servicing activities, were $107 million in the first quarter, improved from $95 million in the prior quarter.
That increase reflects improved gain-on-sale margins.
Residential mortgage loans originated for sale were $1.3 billion in the recent quarter, up about 5% from the fourth quarter.
Commercial mortgage banking revenues were $32 million in the first quarter, reflecting the -- a seasonal decline from $45 million in the linked quarter.
That figure was $30 million in the year-ago quarter.
Trust income rose to $156 million in the recent quarter, improved from $151 million in the previous quarter.
The increase is the result of growth in assets under management, in wealth, and institutional businesses.
Service charges on deposits were $93 million, compared with $96 million in the fourth quarter.
The decline from the linked quarter is the result of higher customer balances offsetting activity-based fees.
Operating expenses -- turning to operating expenses for the first quarter, which exclude the amortization of intangible assets and merger-related expenses, were $907 million.
The comparable figures were $842 million in the linked quarter and $903 million in the year-ago quarter.
As is typical for M&T's fiscal first-quarter results, operating expenses for the recent quarter included approximately $69 million of seasonally higher compensation costs relating to accelerated – to the accelerated recognition of equity compensation expense for certain retirement-eligible employees, the HSA contribution, the impact of annual incentive compensation payouts on the 401(k) match and FICA payments, and unemployment insurance.
Those same items amounted to an increase in salaries and benefits of approximately $67 million in last year's first quarter.
As usual, we expect those seasonal factors to decline significantly as we enter the second quarter.
Other cost of operations for the past quarter included a $9 million reduction in the valuation allowance on our capitalized mortgage servicing rights.
You'll recall that there was a $3 million addition to the allowance in 2020's fourth quarter and a $10 million addition in last year's first quarter.
The quarter's results also reflect an elevated contribution to the M&T Charitable Foundation.
The efficiency ratio, which excludes intangible amortization from the numerator and securities gains or losses from the denominator, was 60.3% in the recent quarter compared with 54.6% in 2020's fourth quarter and 58.9% in the first quarter of 2020.
Those ratios in the first quarters of 2020 and 2021, each reflect the seasonally elevated compensation expenses that we talked about.
Next, let's turn to credit.
The overall economy, of course, continues to improve.
but some sectors such as hospitality, continue to face pressure.
As was the case over the course of 2020, the recent quarter continued to highlight the differences between the former incurred loss accounting method and the CECL standard adopted at the beginning of last year.
Previously, reported delinquencies and transition of loans from accruing to nonaccruing status evidenced by financial stress delinquency or default by borrowers preceded or accompanied the establishment of loss reserves.
Under CECL, we increased our loss reserves last year based on worsening projected economic scenarios.
Significant downgrades of specifically identifiable credits to nonaccrual emerged in the fourth quarter and criticized in the recent quarter -- and to criticize in the recent quarter, consistent with last year's additions to the allowance for credit losses.
The allowance for credit losses amounted to $1.6 billion at the end of the first quarter.
The $100 million decline from the end of 2020 reflects a $25 million recapture of previous provisions for credit losses, combined with $75 million of net charge-offs in the first quarter.
The provision recapture and the resulting reduction in the allowance for the recent quarter continued to reflect the ongoing uncertainty as to the impact of the COVID-19 pandemic on economic activity, employment levels, and the ultimate collectibility of loans.
That said, the improving economic outlook leaves us cautiously optimistic as to the ongoing effects of the pandemic compared with the greater levels of uncertainty in prior quarters.
Our macroeconomic forecast uses a number of economic variables with the largest drivers being the unemployment rate and GDP.
Our forecast assumes that the national unemployment rate continues to be at elevated levels, on average, 5.7% through 2021, followed by a gradual improvement, reaching 2.4% by the end of 2022.
I'm sorry, 4.2% by the end of 2022.
The forecast assumes that GDP grows at 6.2% annual -- at annual rate during 2021, resulting in GDP returning to pre-pandemic levels during 2021.
Our forecast considers improved government stimulus, but not any further fiscal or monetary actions.
Nonaccrual loans amounted to $1.9 billion or 1.97% of loans at the end of March.
This was up slightly from 1.92% at the end of last December.
As noted, net charge-offs for the recent quarter amounted to $75 million.
Annualized net charge-offs as a percentage of total loans were 31 basis points for the first quarter compared with 39 basis points in the fourth quarter.
Loans 90 days past due, on which we continue to improve interest, were $1.1 billion at the end of the recent quarter, 96% of those loans were guaranteed by government-related entities.
M&T's common equity Tier 1 ratio was an estimated 10.4% compared with 10% at the end of the fourth quarter, and which reflects a slight reduction in risk-weighted assets and earnings net of -- and earnings net of dividends.
As previously noted, the People's United merger is pending.
We don't plan to engage in any stock repurchase activity while that is pending.
Now turning to the outlook.
While the economy continues to improve and funds from stimulus programs reach our commercial, and consumer clients, we haven't seen enough change in our outlook for 2021 in any significant way from what we shared on the January call.
Aside from the improved credit outlook as evidenced by the reserve release this quarter, I don't intend to provide any updates.
Darren's remarks as to net interest income, loan growth, fees, and expenses still hold.
And those, of course, are predate our merger announcement and don't contemplate any impact from the merger.
We supply the merger-related comments at the time of announcement.
Of course, as you're aware, our projections are subject to a number of uncertainties and various assumptions regarding national and regional economic growth, changes in interest rates, political events, and other macroeconomic factors, which may differ materially from what actually unfolds in the future.
So now let's open up the call to questions before which Maria will briefly review the instructions.

user
q1 operating earnings per share $3.41.
recorded a provision for credit losses recapture of $25 million in the first quarter of 2021.
qtrly diluted earnings per common share $3.33.
qtrly net interest income expressed on a taxable-equivalent basis totaled $985 million, up from $982 million in q1 of 2020.
net loan charge-offs were $75 million during the recent quarter.

assistant