M&T Bank Corporation ("M&T")
GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") increased 12% to $6.73 in 2005 from $6.00 in 2004. On the same basis, net income in 2005 was $782 million, up 8% from $723 million earned in 2004. GAAP-basis net income for 2005 expressed as a rate of return on average assets and average common stockholders' equity was 1.44% and 13.49%, respectively, compared with 1.40% and 12.67%, respectively, in 2004.
GAAP-basis diluted earnings per share for the fourth quarter of 2005 rose 10% to $1.78 from $1.62 in the corresponding period of 2004. On the same basis, net income for the recent quarter increased to $205 million, up 7% from $192 million in the fourth quarter of 2004. Expressed as an annualized rate of return on average assets and average common stockholders' equity, GAAP- basis net income for 2005's final quarter was 1.48% and 13.85%, respectively, compared with 1.45% and 13.37%, respectively, in the year-earlier period.
Reflecting on 2005's financial results, Rene F. Jones, Senior Vice President and Chief Financial Officer, commented, "Overall, M&T had another successful year in 2005. Improved credit quality, reflecting a continuation of our prudent underwriting standards, coupled with our success in containing expenses were the leading forces behind M&T's strong financial performance. Given the challenging interest rate environment and the resultant slow revenue growth that we had forecasted a year ago, it was extremely important for M&T to focus on controlling costs to maintain an acceptable spread between the growth in revenues and expenses. The implementation of several corporate initiatives, coupled with the hard work and dedication of our employees, have allowed us to enhance the efficiency of our operations."
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, from 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, because 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, for the years ended December 31, 2005 and 2004 were $35 million ($.30 per diluted share) and $46 million ($.38 per diluted share), respectively. Similar amortization charges, after tax effect, totaled $8 million ($.07 per diluted share) in the fourth quarter of 2005, compared with $10 million ($.08 per diluted share) in the year-earlier quarter.
Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets, were $7.03 in 2005, 10% higher than $6.38 in 2004. Net operating income for 2005 increased 6% to $817 million from $769 million in 2004. Net operating income in 2005 expressed as a rate of return on average tangible assets and average tangible stockholders' equity was 1.60% and 29.06%, respectively, compared with 1.59% and 28.76% in 2004.
For the fourth quarter of 2005, diluted net operating earnings per share were $1.85, 9% higher than $1.70 in the corresponding 2004 period. Net operating income for 2005's final quarter rose 5% to $213 million from $202 million in the similar period in 2004. For the three-month period ended December 31, 2005, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.63% and 29.12%, respectively, compared with 1.62% and 29.69% 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
2005 2004 2005 2004
------ ------ ------ ------
(in thousands, except per share)
Diluted earnings per share $ 1.78 1.62 6.73 6.00
Amortization of core deposit
and other intangible assets(1) .07 .08 .30 .38
--------- -------- -------- -------
Diluted net operating earnings
per share $ 1.85 1.70 7.03 6.38
========= ======== ======== =======
Net income $ 204,985 192,205 782,183 722,521
Amortization of core deposit
and other intangible assets(1) 7,753 10,010 34,682 46,097
--------- -------- -------- --------
Net operating income $ 212,738 202,215 816,865 768,618
========= ======== ======== ========
(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
2005 2004 2005 2004
------ ------ ------ ------
(in millions)
Average assets $54,835 52,725 54,135 51,517
Goodwill (2,904) (2,904) (2,904) (2,904)
Core deposit and other
intangible assets (115) (174) (135) (201)
Deferred taxes 44 - 52 -
-------- ------- -------- -------
Average tangible assets $51,860 49,647 51,148 48,412
======== ======= ======== =======
Average equity $ 5,873 5,721 5,798 5,701
Goodwill (2,904) (2,904) (2,904) (2,904)
Core deposit and other
intangible assets (115) (174) (135) (201)
Deferred taxes 44 67 52 76
-------- ------- -------- -------
Average tangible equity $ 2,898 2,710 2,811 2,672
======== ======= ======== =======
Taxable-equivalent Net Interest Income. Led by growth in average loan balances outstanding, taxable-equivalent net interest income increased 3% to $1.81 billion in 2005 from $1.75 billion in 2004. Average loans outstanding rose 6% to $39.5 billion in 2005 from $37.1 billion in 2004. Partially offsetting the positive impact of loan growth was a narrowing of M&T's net interest margin, or taxable-equivalent net interest income expressed as a percentage of average earning assets, to 3.77% in 2005 from 3.88% in 2004. That narrowing resulted from rising short-term interest rates that produced a flattening of the yield curve in 2005 as compared with historic norms.
During the final quarter of 2005, taxable-equivalent net interest income was $454 million, 2% higher than $446 million in the year-earlier quarter. Average loans outstanding and annualized net interest margin in the fourth quarter of 2005 were $40.4 billion and 3.69%, respectively, compared with $38.1 billion and 3.82% in the similar 2004 period.
Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $88 million in 2005, down from $95 million in 2004. Net loan charge-offs in 2005 totaled $77 million, or .19% of average loans outstanding, improved from $82 million or .22% of average loans in 2004. The provision for credit losses was $23 million during the final three months of 2005, compared with $28 million in the year-earlier period. Net charge-offs of loans were nearly $23 million in 2005's fourth quarter, representing an annualized .22% of average loans outstanding, compared with $27 million or .29% during the similar 2004 quarter.
Loans classified as nonperforming declined to $156 million, or .39% of total loans at December 31, 2005, compared with $172 million or .45% a year earlier. Loans past due 90 days or more and accruing interest aggregated $129 million at the recent year-end, compared with $155 million at December 31, 2004. Included in these past due, but accruing loans at December 31, 2005 and 2004 were $106 million and $121 million, respectively, of loans guaranteed by government-related entities. Assets taken in foreclosure of defaulted loans remained at low levels, totaling $9 million at December 31, 2005 and $13 million at December 31, 2004.
Allowance for Credit Losses. The allowance for credit losses totaled $638 million, or 1.58% of total loans, at December 31, 2005, compared with $627 million, or 1.63%, a year earlier. The decline in the allowance as a percentage of loans reflects improvement in various credit factors, including lower levels of net loan charge-offs and nonperforming loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 408% and 364% at December 31, 2005 and 2004, respectively.
Noninterest Income and Expense. Noninterest income totaled $950 million in 2005, compared with $943 million in 2004. Higher mortgage banking revenues, corporate financing advisory fees, gains on sales of commercial lease equipment and other property, and other revenues contributed to that improvement. Losses from bank investment securities in 2005 included a previously disclosed $29 million non-cash, other-than-temporary impairment charge in the third quarter related to preferred stock issuances of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Excluding gains and losses from investment securities, noninterest income in 2005 rose $38 million or 4% from 2004. Noninterest income of $249 million in the fourth quarter of 2005 was up 5% from $238 million in the corresponding 2004 quarter, due in part to higher revenues from providing mortgage banking and corporate financing advisory services.
Noninterest expense in 2005 aggregated $1.49 billion, down 2% from $1.52 billion in 2004. Included in such amounts are expenses considered to be "nonoperating" in nature, consisting of amortization of core deposit and other intangible assets of $57 million in 2005 and $75 million in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $1.43 billion in 2005 and $1.44 billion in 2004. Included in 2004's operating expenses was a $25 million tax-deductible contribution made to The M&T Charitable Foundation, a tax-exempt private charitable foundation. Excluding the impact of the charitable contribution, operating expenses in 2005 increased $13 million, or less than 1% from 2004, reflecting M&T's ongoing efforts to control expenses. Increases in the cost of providing health care and retirement benefits to employees and higher professional services expenses were partially offset by a higher reversal of a portion of the valuation allowance for the impairment of capitalized residential mortgage servicing rights during 2005 as compared with 2004, due to higher residential mortgage loan interest rates.
Noninterest expense in the fourth quarter of 2005 totaled $369 million, compared with $362 million in the year-earlier quarter. Included in such amounts were amortization of core deposit and other intangible assets of $13 million in 2005 and $16 million in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $356 million in the recently completed quarter, compared with $346 million in the final 2004 quarter. Higher costs for employee benefits and professional services were the leading contributors to that increase, partially offset by a higher reversal of a portion of the valuation allowance for the impairment of capitalized residential mortgage servicing rights.
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 bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 51.2% in 2005, improved from 53.5% in 2004. If the $25 million charitable contribution was excluded from the computation, M&T's efficiency ratio for 2004 would have been 52.6%. During 2005's fourth quarter, M&T's efficiency ratio was 50.7%, compared with 50.6% in the year-earlier quarter.
Balance Sheet. M&T had total assets of $55.1 billion at December 31, 2005, up from $52.9 billion a year earlier. Loans and leases, net of unearned discount, aggregated $40.3 billion at the 2005 year-end, up 5% from $38.4 billion at December 31, 2004. Deposits grew 5% to $37.1 billion at December 31, 2005 from $35.4 billion at the end of 2004. Total stockholders' equity was $5.9 billion at December 31, 2005, representing 10.66% of total assets, compared with $5.7 billion or 10.82% a year earlier. Common stockholders' equity per share was $52.39 at December 31, 2005, compared with $49.68 a year earlier. Tangible equity per common share was $25.91 and $23.62 at December 31, 2005 and 2004, 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 at December 31, 2005 and 2004.
During 2005, M&T repurchased 4,891,800 shares of its common stock under authorized repurchase plans at an average cost of $104.18 per share. In the fourth quarter of 2005, a total of 951,700 shares were repurchased by M&T at an average per share cost of $107.03, including 44,700 shares under a new authorization approved in December 2005 by M&T's Board of Directors allowing for the purchase of up to 5,000,000 shares of common stock.
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full year financial results today at 9:00 a.m. Eastern Time. 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 also be webcast live on M&T's website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Thursday, January 12, 2006 by calling 877-519-4471, code 6893221 and 973-341-3080 for international participants. The event will also be archived 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; prepayment speeds, loan originations and credit losses; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards 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; 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 initial 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, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.
INVESTOR CONTACT: Donald J. MacLeod
(716) 842-5462
MEDIA CONTACT: C. Michael Zabel
(716) 842-2311
M&T BANK CORPORATION
Financial Highlights
Three months ended
Amounts in thousands, December 31
except per share --------------------
2005 2004 Change
------ ------ --------
Performance
------------
Net income $204,985 192,205 7 %
Per common share:
Basic earnings $ 1.82 1.66 10 %
Diluted earnings 1.78 1.62 10
Cash dividends $ .45 .40 13
Common shares outstanding:
Average - diluted (1) 115,147 119,010 -3 %
Period end (2) 112,160 115,335 -3
Return on (annualized):
Average total assets 1.48 % 1.45 %
Average common stockholders' equity 13.85 % 13.37 %
Taxable-equivalent net interest
income $454,161 446,257 2 %
Yield on average earning assets 6.16 % 5.24 %
Cost of interest-bearing liabilities 2.98 % 1.75 %
Net interest spread 3.18 % 3.49 %
Contribution of interest-free funds .51 % .33 %
Net interest margin 3.69 % 3.82 %
Net charge-offs to average total
net loans (annualized) .22 % .29 %
Net operating results (3)
-------------------------
Net operating income $212,738 202,215 5 %
Diluted net operating earnings per
common share 1.85 1.70 9
Return on (annualized):
Average tangible assets 1.63 % 1.62 %
Average tangible common equity 29.12 % 29.69 %
Efficiency ratio 50.69 % 50.56 %
Year ended
Amounts in thousands, December 31
except per share --------------------
2005 2004 Change
------ ------ --------
Performance
-----------
Net income $ 782,183 722,521 8 %
Per common share:
Basic earnings $ 6.88 6.14 12 %
Diluted earnings 6.73 6.00 12
Cash dividends $ 1.75 1.60 9
Common shares outstanding:
Average - diluted (1) 116,232 120,406 -3 %
Period end (2) 112,160 115,335 -3
Return on (annualized):
Average total assets 1.44 % 1.40 %
Average common stockholders' equity 13.49 % 12.67 %
Taxable-equivalent net interest
income $1,811,654 1,751,902 3 %
Yield on average earning assets 5.83 % 5.13 %
Cost of interest-bearing liabilities 2.51 % 1.53 %
Net interest spread 3.32 % 3.60 %
Contribution of interest-free funds .45 % .28 %
Net interest margin 3.77 % 3.88 %
Net charge-offs to average total
net loans (annualized) .19 % .22 %
Net operating results (3)
-------------------------
Net operating income $ 816,865 768,618 6 %
Diluted net operating earnings per
common share 7.03 6.38 10
Return on (annualized):
Average tangible assets 1.60 % 1.59 %
Average tangible common equity 29.06 % 28.76 %
Efficiency ratio 51.20 % 53.51 %
At December 31
--------------------------
Loan quality 2005 2004 Change
------------- --------- ------- --------
Nonaccrual loans $141,067 162,013 -13 %
Renegotiated loans 15,384 10,437 47
--------- -------
Total nonperforming loans $156,451 172,450 -9 %
========= =======
Accruing loans past due 90 days or
more $129,403 154,590 -16 %
Nonperforming loans to total net
loans .39 % .45 %
Allowance for credit losses to total
net loans 1.58 % 1.63 %
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core
deposit and other intangible assets and merger-related
expenses 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
Three months ended
December 31
--------------------
Dollars in thousands 2005 2004 Change
--------- -------- --------
Interest income $753,101 608,947 24 %
Interest expense 303,493 166,755 82
--------- --------
Net interest income 449,608 442,192 2
Provision for credit losses 23,000 28,000 -18
--------- --------
Net interest income after
provision for credit losses 426,608 414,192 3
Other income
Mortgage banking revenues 36,069 33,897 6
Service charges on deposit
accounts 93,718 93,023 1
Trust income 34,663 34,421 1
Brokerage services income 13,527 13,282 2
Trading account and foreign
exchange gains 5,705 7,143 -20
Gain (loss) on bank investment
securities (384) 362 -
Other revenues from operations 65,306 55,431 18
--------- --------
Total other income 248,604 237,559 5
Other expense
Salaries and employee benefits 203,317 198,152 3
Equipment and net occupancy 44,042 44,726 -2
Printing, postage and supplies 7,817 7,987 -2
Amortization of core deposit and
other intangible assets 12,703 16,393 -23
Other costs of operations 101,235 94,664 7
--------- --------
Total other expense 369,114 361,922 2
Income before income taxes 306,098 289,829 6
Applicable income taxes 101,113 97,624 4
--------- --------
Net income $204,985 192,205 7 %
========= ========
Year ended
December 31
-----------------------
Dollars in thousands 2005 2004 Change
----------- ---------- --------
Interest income $2,788,694 2,298,732 21 %
Interest expense 994,351 564,160 76
----------- ----------
Net interest income 1,794,343 1,734,572 3
Provision for credit losses 88,000 95,000 -7
----------- ----------
Net interest income after
provision for credit losses 1,706,343 1,639,572 4
Other income
Mortgage banking revenues 136,114 124,353 9
Service charges on deposit
accounts 369,918 366,301 1
Trust income 134,679 136,296 -1
Brokerage services income 55,572 53,740 3
Trading account and foreign
exchange gains 22,857 19,435 18
Gain (loss) on bank investment
securities (28,133) 2,874 -
Other revenues from operations 258,711 239,970 8
----------- ----------
Total other income 949,718 942,969 1
Other expense
Salaries and employee benefits 822,239 806,552 2
Equipment and net occupancy 173,689 179,595 -3
Printing, postage and supplies 33,743 34,476 -2
Amortization of core deposit and
other
intangible assets 56,805 75,410 -25
Other costs of operations 398,666 419,985 -5
----------- ----------
Total other expense 1,485,142 1,516,018 -2
Income before income taxes 1,170,919 1,066,523 10
Applicable income taxes 388,736 344,002 13
----------- ----------
Net income $ 782,183 722,521 8 %
=========== ==========
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
December 31
-------------------------
Dollars in thousands 2005 2004 Change
------------ ----------- ------
ASSETS
Cash and due from banks $ 1,479,239 1,334,628 11 %
Money-market assets 211,245 199,364 6
Investment securities 8,400,164 8,474,619 -1
Loans and leases, net of unearned
discount 40,330,645 38,398,477 5
Less: allowance for credit losses 637,663 626,864 2
------------ -----------
Net loans and leases 39,692,982 37,771,613 5
Goodwill 2,904,081 2,904,081 -
Core deposit and other intangible
assets 108,260 165,507 -35
Other assets 2,350,435 2,088,909 13
------------ -----------
Total assets $55,146,406 52,938,721 4 %
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits at U.S.
offices $ 8,141,928 8,417,365 -3 %
Other deposits at U.S. offices 26,148,714 22,779,176 15
Deposits at foreign office 2,809,532 4,232,932 -34
------------ -----------
Total deposits 37,100,174 35,429,473 5
Short-term borrowings 5,152,872 4,703,664 10
Accrued interest and other
liabilities 819,980 727,411 13
Long-term borrowings 6,196,994 6,348,559 -2
------------ -----------
Total liabilities 49,270,020 47,209,107 4
Stockholders' equity (1) 5,876,386 5,729,614 3
------------ -----------
Total liabilities and stockholders'
equity $55,146,406 52,938,721 4 %
============ ===========
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $97.9 million at December 31, 2005 and $17.2
million at December 31, 2004.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended
December 31
------------------------------
Dollars in millions 2005 2004
------------- ------------- Change in
Balance Rate Balance Rate balance
------- ----- ------- ---- ---------
ASSETS
Money-market assets $ 128 2.78 % 67 .87 % 90 %
Investment securities 8,302 4.48 8,326 4.18 -
Loans and leases, net of
unearned discount
Commercial, financial, etc 10,738 6.25 9,919 4.52 8
Real estate - commercial 14,419 6.92 13,894 5.93 4
Real estate - consumer 4,674 6.04 3,161 5.89 48
Consumer 10,572 6.53 11,168 5.71 -5
------- -------
Total loans and leases, net 40,403 6.51 38,142 5.48 6
------- -------
Total earning assets 48,833 6.16 46,535 5.24 5
Goodwill 2,904 2,904 -
Core deposit and other
intangible assets 115 174 -34
Other assets 2,983 3,112 -4
------- -------
Total assets $54,835 52,725 4 %
======= =======
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing deposits
NOW accounts $ 421 .67 375 .30 12 %
Savings deposits 14,498 1.12 15,363 .65 -6
Time deposits 11,018 3.69 7,089 2.36 55
Deposits at foreign office 3,227 3.95 3,539 1.94 -9
------- -------
Total interest-bearing
deposits 29,164 2.40 26,366 1.28 11
------- -------
Short-term borrowings 4,625 4.03 5,370 1.98 -14
Long-term borrowings 6,606 4.81 6,104 3.62 8
------- -------
Total interest-bearing
liabilities 40,395 2.98 37,840 1.75 7
Noninterest-bearing deposits 7,842 8,402 -7
Other liabilities 725 762 -5
------- -------
Total liabilities 48,962 47,004 4
Stockholders' equity 5,873 5,721 3
------- -------
Total liabilities and
stockholders' equity $54,835 52,725 4 %
======= =======
Net interest spread 3.18 3.49
Contribution of interest-free
funds .51 .33
Net interest margin 3.69 % 3.82 %
Year ended
December 31
------------------------------
Dollars in millions 2005 2004
------------- ------------- Change in
Balance Rate Balance Rate balance
------- ----- ------- ---- ---------
ASSETS
Money-market assets $ 113 2.22 % 74 .83 % 53 %
Investment securities 8,476 4.40 7,997 4.15 6
Loans and leases, net of
unearned discount
Commercial, financial, etc 10,455 5.64 9,534 4.30 10
Real estate - commercial 14,341 6.56 13,264 5.75 8
Real estate - consumer 3,925 6.00 3,111 5.92 26
Consumer 10,808 6.15 11,220 5.58 -4
-------- -------
Total loans and leases, net 39,529 6.15 37,129 5.34 6
-------- -------
Total earning assets 48,118 5.83 45,200 5.13 6
Goodwill 2,904 2,904 -
Core deposit and other
intangible assets 135 201 -33
Other assets 2,978 3,212 -7
------- -------
Total assets $54,135 51,517 5 %
======= =======
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing deposits
NOW accounts $ 400 .55 550 .33 -27 %
Savings deposits 14,889 .94 15,305 .60 -3
Time deposits 9,158 3.22 6,948 2.23 32
Deposits at foreign office 3,819 3.15 3,136 1.37 22
------- -------
Total interest-bearing
deposits 28,266 1.97 25,939 1.12 9
------- -------
Short-term borrowings 4,890 3.23 5,142 1.38 -5
Long-term borrowings 6,411 4.37 5,832 3.45 10
------- -------
Total interest-bearing
liabilities 39,567 2.51 36,913 1.53 7
Noninterest-bearing deposits 8,050 8,039 -
Other liabilities 720 864 -17
------- -------
Total liabilities 48,337 45,816 6
Stockholders' equity 5,798 5,701 2
------- -------
Total liabilities and
stockholders' equity $54,135 51,517 5 %
======= =======
Net interest spread 3.32 3.60
Contribution of interest-free
funds .45 .28
Net interest margin 3.77 % 3.88 %
Media Contact:
C. Michael Zabel
(716) 842-5385
Investor Contact:
Donald J. MacLeod
(716) 842-5138