M&T Bank Corporation ("M&T")
GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") rose 21% to $6.00 in 2004 from $4.95 in 2003. GAAP-basis net income in 2004 totaled $723 million, 26% above the $574 million earned in 2003. GAAP-basis net income for 2004 expressed as a rate of return on average assets and average common stockholders' equity was 1.40% and 12.67%, respectively, compared with 1.27% and 11.62%, respectively, in 2003.
M&T's financial results for 2004 reflect the full-year impact of operations obtained in the April 1, 2003 acquisition of Allfirst Financial Inc. ("Allfirst") and the related issuance by M&T of 26.7 million common shares on that date. Merger-related expenses in 2003 were $39 million, after applicable tax effect, or $.34 per diluted share. Such expenses represented costs for professional services, travel, and other expenses associated with the acquisition and the related integration of data processing and other operating systems and functions with those of M&T. There were no similar expenses in 2004.
For the fourth quarter of 2004, GAAP-basis diluted earnings per share increased 20% to $1.62 from $1.35 in the similar 2003 period. On the same basis, net income for the recently completed quarter rose to $192 million, 15% higher than $167 million in the final quarter of 2003. During the fourth quarter of 2003, M&T incurred merger-related expenses associated with the Allfirst acquisition totaling $2 million, after applicable tax effect, or $.01 per diluted share. Expressed as an annualized rate of return on average assets and average common stockholders' equity, GAAP-basis net income for 2004's final quarter was 1.45% and 13.37%, respectively, compared with 1.35% and 11.77%, respectively, in the year-earlier period.
Supplemental Reporting of Non-GAAP Results of Operations. Since 1998, M&T has consistently provided supplemental reporting of its results on a "net operating" or "tangible" basis, in which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such expenses are considered by management to be "nonoperating" in nature. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results. Amortization of core deposit and other intangible assets, after tax effect, totaled $10 million ($.08 per diluted share) in the fourth quarter of 2004, compared with $13 million ($.11 per diluted share) in the corresponding 2003 quarter. Similar amortization charges, after tax effect, for the years ended December 31, 2004 and 2003 were $46 million ($.38 per diluted share) and $48 million ($.41 per diluted share), respectively.
Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related expenses, were $6.38 for 2004, 12% higher than $5.70 in 2003. Net operating income for 2004 rose 16% to $769 million from $661 million in 2003. Net operating income in 2004 expressed as a rate of return on average tangible assets and average tangible stockholders' equity was 1.59% and 28.76%, respectively, compared with 1.55% and 28.49% in 2003.
For 2004's fourth quarter, diluted net operating earnings per share were $1.70, up 16% from $1.47 in the similar 2003 period. Net operating income for the final quarter of 2004 increased to $202 million, 11% above $182 million in the year-earlier period. For the quarter ended December 31, 2004, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.62% and 29.69%, respectively, compared with 1.57% and 28.33% in the year-earlier period.
Reconciliation of GAAP and Non-GAAP Results of Operations. A reconciliation of diluted earnings per share and net income with diluted net operating earnings per share and net operating income follows:
Three months ended Year ended
December 31 December 31
2004 2003 2004 2003
---- ---- ---- ----
(in thousands, except per share)
Diluted earnings per share $ 1.62 1.35 6.00 4.95
Amortization of core deposit
and other intangible assets(1) .08 .11 .38 .41
Merger-related expenses(1) - .01 - .34
-------- ------- ------- -------
Diluted net operating earnings
per share $ 1.70 1.47 6.38 5.70
======== ======= ======= =======
Net income $192,205 166,901 722,521 573,942
Amortization of core deposit
and other intangible assets(1) 10,010 13,059 46,097 47,826
Merger-related expenses(1) - 1,634 - 39,163
-------- ------- ------- -------
Net operating income $202,215 181,594 768,618 660,931
======== ======= ======= =======
(1) After any related tax effect
Reconciliation of Total Assets and Equity to Tangible Assets and Equity. A reconciliation of average assets and equity with average tangible assets and average tangible equity follows:
Three months ended Year ended
December 31 December 31
2004 2003 2004 2003
---- ---- ---- ----
(in millions)
Average assets $52,725 49,123 51,517 45,349
Goodwill (2,904) (2,904) (2,904) (2,456)
Core deposit and other
intangible assets (174) (251) (201) (233)
-------- ------- ------- -------
Average tangible assets $49,647 45,968 48,412 42,660
======== ======= ======= =======
Average equity $ 5,721 5,625 5,701 4,941
Goodwill (2,904) (2,904) (2,904) (2,456)
Core deposit and other
intangible assets (174) (251) (201) (233)
Deferred taxes 67 73 76 68
-------- ------- ------- -------
Average tangible equity $ 2,710 2,543 2,672 2,320
======== ======= ======= =======
Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income rose 8% to $1.75 billion in 2004 from $1.62 billion in 2003, largely due to higher average earning assets. Average loans outstanding grew 9% to $37.1 billion in 2004 from $34.0 billion in 2003. The 2003 average balance reflected the impact of the $10.3 billion of loans obtained in the April 1, 2003 acquisition of Allfirst for the final nine months of that year, while the 2004 average balance reflects a full-year impact of Allfirst-related loans. Average investment securities increased to $8.0 billion in 2004 from $5.3 billion in 2003. Net interest margin, or taxable-equivalent net interest income expressed as a percentage of average earning assets, declined to 3.88% in 2004 from 4.09% in 2003. The decrease in net interest margin was largely the result of lower yields earned on loans and investment securities.
During 2004's final quarter, taxable-equivalent net interest income was $446 million, up 5% from $425 million in the corresponding quarter of 2003. Average earning assets and annualized net interest margin in the fourth quarter of 2004 were $46.5 billion and 3.82%, respectively, compared with $42.7 billion and 3.96% in the similar 2003 period.
Provision for Credit Losses/Asset Quality. The provision for credit losses was $95 million in 2004, down from $131 million in 2003. Net loan charge-offs in 2004 totaled $82 million, or .22% of average loans outstanding, improved from $97 million or .28% of average loans in 2003. The provision for credit losses was $28 million during the fourth quarter of both 2004 and 2003. Net charge-offs of loans were $27 million in 2004's final quarter, or an annualized .29% of average loans outstanding, compared with $32 million or .35% during the corresponding 2003 quarter.
Loans classified as nonperforming aggregated $172 million, or .45% of total loans at December 31, 2004, significantly lower than $240 million or .67% a year earlier. The substantial decrease in nonperforming loans at the recent year-end as compared with December 31, 2003 was largely the result of several large commercial loans that are no longer in M&T's loan portfolio due to a combination of sales, payoffs or charge-offs. Loans past due 90 days or more and accruing interest totaled $155 million at each of the recent year-end and December 31, 2003. Included in the past due but accruing amounts were loans guaranteed by government-related entities of $118 million and $125 million at December 31, 2004 and 2003, respectively. Assets taken in foreclosure of defaulted loans were $13 million at December 31, 2004, compared with $20 million at December 31, 2003.
Allowance for Credit Losses. The allowance for credit losses totaled $627 million, or 1.63% of total loans, at December 31, 2004, compared with $614 million, or 1.72%, a year earlier. The decline in the allowance as a percentage of loans reflects improvement in various credit factors, including the previously noted decreases in net charge-offs and nonperforming loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 364% and 256% at December 31, 2004 and 2003, respectively.
Noninterest Income and Expense. Noninterest income in 2004 grew to $943 million, 13% higher than $831 million in 2003. The increase in such income was attributable to the full-year impact of revenues related to operations in market areas associated with the former Allfirst franchise. Excluding Allfirst-related revenues, higher levels of service charges on deposit accounts and letter of credit and other credit-related fees were offset by a decrease in mortgage banking revenues resulting from a lower level of loan originations in 2004. Noninterest income of $238 million in the fourth quarter of 2004 was up 2% from $234 million in the corresponding quarter of 2003, largely due to higher revenues from providing deposit account services.
Noninterest expense in 2004 totaled $1.52 billion, 5% higher than $1.45 billion in 2003. Included in such amounts are expenses considered to be "nonoperating" in nature, consisting of amortization of core deposit and other intangible assets of $75 million in 2004 and $78 million in 2003, and merger- related expenses of $60 million in 2003. As noted earlier, there were no merger-related expenses in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $1.44 billion in 2004, compared with $1.31 billion in 2003. The 10% increase in such operating expenses was largely related to the full-year impact in 2004 of operations formerly associated with Allfirst. Also contributing to the increase was a $25 million cash contribution made by M&T Bank, M&T's wholly owned principal bank subsidiary, to The M&T Charitable Foundation, a tax-exempt, private charitable foundation, during 2004's third quarter.
Noninterest expense in the fourth quarter of 2004 totaled $362 million, down from $378 million in the year-earlier quarter. Included in such amounts were amortization of core deposit and other intangible assets of $16 million in 2004 and $21 million in 2003, and merger-related expenses of $3 million in 2003. Exclusive of these nonoperating expenses, noninterest operating expenses were $346 million in the recently completed quarter, compared with $354 million in the final quarter of 2003.
The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from sales of bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.5% in 2004, compared with 53.6% in 2003. If the $25 million charitable contribution was excluded from the computation, M&T's efficiency ratio for 2004 would have been 52.6%. During 2004's fourth quarter, M&T's efficiency ratio was 50.6%, compared with 53.9% in the year-earlier quarter.
Balance Sheet. M&T's total assets increased 6% to $52.9 billion at December 31, 2004 from $49.8 billion a year earlier. Loans and leases, net of unearned discount, aggregated $38.4 billion at the 2004 year-end, up 7% from $35.8 billion at December 31, 2003. Deposits rose to $35.4 billion at December 31, 2004 from $33.1 billion at the end of 2003. Total stockholders' equity was $5.7 billion at December 31, 2004, representing 10.82% of total assets, compared with $5.7 billion or 11.47% a year earlier. Common stockholders' equity per share was $49.68 at December 31, 2004, compared with $47.55 a year earlier. Tangible equity per common share was $23.62 and $21.97 at December 31, 2004 and 2003, respectively. In the calculation of tangible equity per common share, stockholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances, which aggregated $3.0 billion and $3.1 billion at December 31, 2004 and 2003, respectively.
During 2004, M&T repurchased 6,520,800 shares of its common stock under authorized repurchase plans at an average cost of $93.59 per share. In the fourth quarter of 2004, a total of 1,468,200 shares were repurchased by M&T at an average per share cost of $103.27, including 152,900 shares under a new plan authorized in December 2004 by M&T's Board of Directors allowing for the purchase of up to 5,000,000 shares of common stock.
Commenting on M&T's financial results for 2004, Michael P. Pinto, Executive Vice President and Chief Financial Officer, said "We are pleased with M&T's performance in 2004, particularly given the challenges resulting from the economic environment we faced. Most encouraging are the key credit quality trends, which reflect lower levels of net charge-offs and nonperforming loans." Looking ahead to 2005, Mr. Pinto noted, "Subject to the impact of future economic and political conditions, our present estimate of GAAP-basis diluted earnings per share for 2005 is in the range of $6.60 to $6.80."
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full year financial results at 9:00 a.m. Eastern Time today, January 11, 2005. Those wishing to participate in the call may dial 877-780-2276. International participants, using any applicable international calling codes, may dial 973-582-2700. The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until January 12, 2005 by calling 877-519-4471, code 5543168 and 973-341-3080 for international participants. The event will be transcribed and available by 1:00 p.m. today on M&T's website at http://ir.mandtbank.com/conference.cfm.
Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.
Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; credit losses; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock options to be issued in future periods; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively; regulatory supervision and oversight, including required capital levels; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes, including environmental regulations; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger and acquisition activities compared with M&T's expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, including interest rate and currency exchange rate fluctuations, and other Future Factors.
CONTACT: Donald J. MacLeod
(716) 842-5138
M&T BANK CORPORATION
Financial Highlights
Amounts in Three months ended Year ended
thousands, December 31 December 31
except -------------------- -----------------------
per share 2004 2003 Change 2004 2003 Change
-------- -------- ------ ---------- ------- ------
Performance
-----------
Net income $192,205 166,901 15% $ 722,521 573,942 26%
Per common
share:
Basic
earnings $ 1.66 1.39 19% $ 6.14 5.08 21%
Diluted
earnings 1.62 1.35 20 6.00 4.95 21
Cash
dividends $.40 .30 33 $ 1.60 1.20 33
Common shares
outstanding:
Average -
diluted (1) 119,010 123,328 -4% 120,406 115,932 4%
Period
end (2) 115,335 120,231 -4 115,335 120,231 -4
Return on
(annualized):
Average
total assets 1.45% 1.35% 1.40% 1.27%
Average common
stockholders'
equity 13.37% 11.77% 12.67% 11.62%
Taxable-
equivalent
net interest
income $446,257 425,500 5% $1,751,902 1,615,068 8%
Yield on
average
earning
assets 5.24% 5.16% 5.13% 5.42%
Cost of interest
-bearing
liabilities 1.75% 1.48% 1.53% 1.61%
Net interest
spread 3.49% 3.68% 3.60% 3.81%
Contribution of
interest-free
funds .33% .28% .28% .28%
Net interest
margin 3.82% 3.96% 3.88% 4.09%
Net charge-offs
to average total
net loans
(annualized) .29% .35% .22% .28%
Net operating
results (3)
-------------
Net operating
income $202,215 181,594 11% $ 768,618 660,931 16%
Diluted net
operating
earnings per
common share 1.70 1.47 16 6.38 5.70 12
Return on
(annualized):
Average tangible
assets 1.62% 1.57% 1.59% 1.55%
Average tangible
common equity 29.69% 28.33% 28.76% 28.49%
Efficiency ratio 50.56% 53.93% 53.51% 53.59%
At December 31
--------------------
Loan quality 2004 2003 Change
------------ -------- ------- ------
Nonaccrual
loans $162,013 232,983 -30%
Renegotiated
loans 10,437 7,309 43
-------- -------
Total
nonperforming
loans $172,450 240,292 -28%
======== =======
Accruing loans
past due 90
days or more $154,590 154,759 -%
Nonperforming
loans to total
net loans .45% .67%
Allowance for
credit losses
to total
net loans 1.63% 1.72%
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes merger-related expenses and amortization and balances
related to goodwill and core deposit and other intangible assets
which, except in the calculation of the efficiency ratio, are net of
applicable income tax effects. A reconciliation of net income and net
operating income is included herein.
M&T BANK CORPORATION
Condensed Consolidated Statement of Income
Dollars in Three months ended Year ended
thousands December 31 December 31
-------------------- -----------------------
2004 2003 Change 2004 2003 Change
-------- ------- ------ ---------- --------- ------
Interest income $608,947 550,473 11% $2,298,732 2,126,565 8%
Interest expense 166,755 129,173 29 564,160 527,810 7
-------- ------- ---------- ---------
Net interest
income 442,192 421,300 5 1,734,572 1,598,755 8
Provision for
credit losses 28,000 28,000 - 95,000 131,000 -27
-------- ------- ---------- ---------
Net interest
income after
provision for
credit losses 414,192 393,300 5 1,639,572 1,467,755 12
Other income
Mortgage banking
revenues 33,897 31,944 6 124,353 149,105 -17
Service charges
on deposit
accounts 93,023 89,591 4 366,301 309,749 18
Trust income 34,421 34,467 - 136,296 114,620 19
Brokerage
services income 13,282 13,455 -1 53,740 51,184 5
Trading account
and foreign
exchange gains 7,143 4,993 43 19,435 15,989 22
Gain on sales of
bank investment
securities 362 1,946 - 2,874 2,487 -
Other revenues
from operations 55,431 57,361 -3 239,970 187,961 28
-------- ------- ---------- ---------
Total other
income 237,559 233,757 2 942,969 831,095 13
Other expense
Salaries and
employee
benefits 198,152 196,651 1 806,552 740,324 9
Equipment and
net occupancy 44,726 47,126 -5 179,595 170,623 5
Printing, postage
and supplies 7,987 9,954 -20 34,476 36,985 -7
Amortization of
core deposit and
other intangible
assets 16,393 21,345 -23 75,410 78,152 -4
Other costs of
operations 94,664 103,279 -8 419,985 422,096 -1
-------- ------- ---------- ---------
Total other
expense 361,922 378,355 -4 1,516,018 1,448,180 5
Income before
income taxes 289,829 248,702 17 1,066,523 850,670 25
Applicable
income taxes 97,624 81,801 19 344,002 276,728 24
-------- ------- ---------- ---------
Net income $192,205 166,901 15% $ 722,521 573,942 26%
======== ======= ========== =========
Summary of merger-
related expenses
included above:
Salaries and
employee
benefits $ - 426 $ - 8,542
Equipment and
net occupancy - 472 - 2,126
Printing, postage
and supplies - 241 - 3,216
Other costs
of operations - 1,394 - 46,503
-------- ------- ---------- ---------
Total merger-
related
expenses $ - 2,533 $ - 60,387
======== ======= ========== =========
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
December 31
-----------------------
Dollars in thousands 2004 2003 Change
---------- --------- ------
ASSETS
Cash and due from banks $ 1,334,628 1,877,494 -29%
Money-market assets 199,364 250,315 -20
Investment securities 8,474,619 7,259,150 17
Loans and leases, net of unearned discount 38,398,477 35,772,435 7
Less: allowance for credit losses 626,864 614,058 2
---------- ----------
Net loans and leases 37,771,613 35,158,377 7
Goodwill 2,904,081 2,904,081 -
Core deposit and other intangible assets 165,507 240,830 -31
Other assets 2,088,909 2,135,834 -2
---------- ----------
Total assets $52,938,721 49,826,081 6%
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits at U.S.
offices $ 8,417,365 8,411,296 -%
Other deposits at U.S. offices 22,779,176 22,494,197 1
Deposits at foreign office 4,232,932 2,209,451 92
---------- ----------
Total deposits 35,429,473 33,114,944 7
Short-term borrowings 4,703,664 4,442,246 6
Accrued interest and other liabilities 727,411 1,016,256 -28
Long-term borrowings 6,348,559 5,535,425 15
---------- ----------
Total liabilities 47,209,107 44,108,871 7
Stockholders' equity (1) 5,729,614 5,717,210 -
---------- ----------
Total liabilities and stockholders'
equity $52,938,721 49,826,081 6%
========== ==========
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $17.2 million at December 31, 2004 and
accumulated other comprehensive income, net of applicable income tax
effect, of $25.7 million at December 31, 2003.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended
December 31
---------------------------------
Dollars in millions 2004 2003
-------------- --------------- Change in
Balance Rate Balance Rate balance
------- ---- ------- ----- --------
ASSETS
Money-market assets $ 67 .87% 99 1.00% -32%
Investment securities 8,326 4.18 6,212 3.98 34
Loans and leases, net
of unearned discount
Commercial,
financial, etc 9,919 4.52 9,202 4.00 8
Real estate
- commercial 13,894 5.93 12,344 5.86 13
Real estate
- consumer 3,161 5.89 3,758 6.06 -16
Consumer 11,168 5.71 11,057 5.79 1
------ ------
Total loans and
leases, net 38,142 5.48 36,361 5.37 5
------ ------
Total earning assets 46,535 5.24 42,672 5.16 9
Goodwill 2,904 2,904 -
Core deposit and other
intangible assets 174 251 -31
Other assets 3,112 3,296 -6
------ ------
Total assets $52,725 49,123 7%
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing
deposits
NOW accounts $ 375 .30 1,160 .33 -68%
Savings deposits 15,363 .65 14,674 .70 5
Time deposits 7,089 2.36 6,440 2.29 10
Deposits at
foreign office 3,539 1.94 2,378 .96 49
------ ------
Total interest-
bearing deposits 26,366 1.28 24,652 1.12 7
------ ------
Short-term borrowings 5,370 1.98 4,162 1.02 29
Long-term borrowings 6,104 3.62 5,922 3.27 3
------ ------
Total interest-bearing
liabilities 37,840 1.75 34,736 1.48 9
Noninterest-bearing
deposits 8,402 7,705 9
Other liabilities 762 1,057 -28
------ ------
Total liabilities 47,004 43,498 8
Stockholders' equity 5,721 5,625 2
------ ------
Total liabilities and
stockholders' equity $52,725 49,123 7%
====== ======
Net interest spread 3.49 3.68
Contribution of
interest-free funds .33 .28
Net interest margin 3.82% 3.96%
Year ended
December 31
---------------------------------
Dollars in millions 2004 2003
-------------- --------------- Change in
Balance Rate Balance Rate balance
------- ---- ------- ----- --------
ASSETS
Money-market assets $ 74 .83% 216 1.24% -66%
Investment securities 7,997 4.15 5,344 4.40 50
Loans and leases, net
of unearned discount
Commercial,
financial, etc 9,534 4.30 8,523 4.21 12
Real estate
- commercial 13,264 5.75 11,573 6.10 15
Real estate
- consumer 3,111 5.92 3,777 6.15 -18
Consumer 11,220 5.58 10,098 6.02 11
------ ------
Total loans and
leases, net 37,129 5.34 33,971 5.61 9
------ ------
Total earning assets 45,200 5.13 39,531 5.42 14
Goodwill 2,904 2,456 18
Core deposit and other
intangible assets 201 233 -14
Other assets 3,212 3,129 3
------ ------
Total assets $51,517 45,349 14%
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing
deposits
NOW accounts $ 550 .33 1,021 .35 -46%
Savings deposits 15,305 .60 13,278 .77 15
Time deposits 6,948 2.23 6,638 2.41 5
Deposits at
foreign office 3,136 1.37 1,445 1.04 117
------ ------
Total interest-
bearing deposits 25,939 1.12 22,382 1.25 16
------ ------
Short-term borrowings 5,142 1.38 4,331 1.13 19
Long-term borrowings 5,832 3.45 6,018 3.29 -3
------ ------
Total interest-bearing
liabilities 36,913 1.53 32,731 1.61 13
Noninterest-bearing
deposits 8,039 6,801 18
Other liabilities 864 876 -1
------ ------
Total liabilities 45,816 40,408 13
Stockholders' equity 5,701 4,941 15
------ ------
Total liabilities and
stockholders' equity $51,517 45,349 14%
====== ======
Net interest spread 3.60 3.81
Contribution of
interest-free funds .28 .28
Net interest margin 3.88% 4.09%
CONTACT:
Donald J. MacLeod
+1-716-842-5138
Web site: http://www.mandtbank.com/