M&T Bank Corporation ("M&T")
GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2006 were $1.87, up 11% from $1.69 in the year-earlier period. GAAP-basis net income in the recent quarter totaled $213 million, 8% higher than $197 million in the second quarter of 2005. GAAP-basis net income for 2006's second quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.54% and 14.35%, respectively, compared with 1.46% and 13.73%, respectively, in the corresponding quarter of 2005.
For the first half of 2006, GAAP-basis diluted earnings per share were $3.64, 10% higher than $3.31 in the similar 2005 period. On the same basis, net income for the first two quarters of 2006 totaled $415 million, up 8% from $386 million in the first half of 2005. GAAP-basis net income for the six- month period ended June 30, 2006 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.52% and 14.16%, respectively, compared with 1.45% and 13.57%, respectively, in the corresponding 2005 period.
As previously announced, on June 30, 2006 M&T Bank, M&T's principal banking subsidiary, completed the acquisition of 21 branch offices in Buffalo and Rochester, New York from Citibank, N.A., including approximately $269 million in loans and approximately $1.0 billion of deposits. Although the June 30 transaction had no effect on day-to-day operating results, expenses associated with systems conversions and other costs of integrating and introducing Citibank, N.A.'s former customers to M&T's products and services aggregated $2 million, after applicable tax effect, or $.02 of diluted earnings per share during the three and six-month periods ended June 30, 2006. M&T will incur additional acquisition-related expenses in the third quarter of 2006.
In discussing the recent quarter's financial results, Rene F. Jones, Executive Vice President and Chief Financial Officer of M&T noted, "Our results for the quarter reflect many of M&T's traditional strengths. Continued attention to efficiency and the benefits of our consistent credit standards led to double-digit growth in M&T's diluted earnings per share." In addition, reflecting on the recently completed branch transaction, Mr. Jones observed, "We are excited about the addition of approximately 60,000 consumer and business customers in our Buffalo and Rochester markets, the second and third largest cities in New York State. The ability to service those customers without a significant increase in distribution costs made this transaction compelling. Our new customers will benefit from having access to M&T's network of ATM and branch facilities in western New York, and our shareholders will benefit from increased operating leverage."
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, 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, was $7 million ($.06 per diluted share) in the second quarter of 2006, compared with $9 million ($.07 per diluted share) in the year-earlier quarter. Similar after tax effect amortization charges for the six-month periods ended June 30, 2006 and 2005 were $15 million ($.13 per diluted share) and $18 million ($.15 per diluted share), respectively. As already noted, expenses related to the acquisition of branch offices, deposits and loans totaled $2 million, after applicable tax effect, or $.02 per diluted share in each of the three and six-month periods ended June 30, 2006. There were no similar expenses in 2005.
Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets and branch acquisition-related expenses, were $1.95 in 2006's second quarter, a rise of 11% from $1.76 in the year-earlier quarter. Net operating income during 2006's second quarter grew 8% to $222 million from $205 million in the similar 2005 period. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, net operating income was 1.69% and 30.02%, respectively, in the recent quarter, compared with 1.62% and 29.88% in the second quarter of 2005.
Diluted net operating earnings per share for the six-month period ended June 30, 2006 rose 10% to $3.79 from $3.46 in the year-earlier period. Net operating income for the first half of 2006 was $433 million, up 7% from $405 million in the corresponding 2005 period. For the first six months of 2006, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.67% and 29.67%, respectively, compared with 1.61% and 29.77% in the first two quarters of 2005.
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 Six months ended
June 30 June 30
2006 2005 2006 2005
------- ------- ------- -------
(in thousands, except per share)
Diluted earnings per share $ 1.87 1.69 3.64 3.31
Amortization of core deposit
and other intangible assets(1) .06 .07 .13 .15
Merger-related expenses(1) .02 - .02 -
------- ------- ------- -------
Diluted net operating earnings
per share $ 1.95 1.76 3.79 3.46
======= ======= ======= =======
Net income $212,573 196,834 415,490 386,124
Amortization of core deposit
and other intangible
assets(1) 6,921 8,581 14,860 18,426
Merger-related expenses(1) 2,344 - 2,344 -
------- ------- ------- -------
Net operating income $221,838 205,415 432,694 404,550
======= ======= ======= =======
(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 Six months ended
June 30 June 30
2006 2005 2006 2005
------- ------ ------- -------
(in millions)
Average assets $ 55,498 53,935 55,303 53,622
Goodwill (2,909) (2,904) (2,908) (2,904)
Core deposit and other
intangible assets (107) (142) (109) (150)
Deferred taxes 40 55 41 58
------- ------- ------- -------
Average tangible assets $ 52,522 50,944 52,327 50,626
======= ======= ======= =======
Average equity $ 5,940 5,749 5,917 5,736
Goodwill (2,909) (2,904) (2,908) (2,904)
Core deposit and other
intangible assets (107) (142) (109) (150)
Deferred taxes 40 55 41 58
------- ------- ------- -------
Average tangible equity $ 2,964 2,758 2,941 2,740
======= ======= ======= =======
Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income was little changed from a year earlier totaling $451 million in the second quarter of 2006. Net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, declined to 3.66% in the recent quarter from 3.78% in the second quarter of 2005. Such decline reflects the continuing impact of higher short- term interest rates, which resulted in the rates paid on interest-bearing liabilities rising more rapidly than the yields on many earning assets. The recent quarter's net interest margin also declined from 3.73% in 2006's initial quarter. Largely offsetting the impact of the lower net interest margin was growth in average loans and leases which totaled $41.0 billion in the recent quarter, 4% higher than $39.2 billion in the second quarter of 2005. Such growth was attributable to average outstanding balance increases in commercial loans, commercial real estate loans and residential real estate loans. Average consumer loans declined 9% from the year-earlier period, the result of lower automobile loans and leases outstanding, continuing a two-year trend during which M&T has decided not to extend such credit at unfavorable interest rates.
Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $17 million in the recent quarter, down from $19 million in the second quarter of 2005. Net charge-offs of loans during the second quarter of 2006 were $10 million, compared with $14 million in the year-earlier period. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .10% and .14% in the second quarter of 2006 and 2005, respectively. Loans classified as nonperforming totaled $156 million, or .38% of total loans at June 30, 2006, compared with $184 million or .46% a year earlier, $156 million or .39% at December 31, 2005 and $143 million or .35% at March 31, 2006. Loans past due 90 days or more and accruing interest were $101 million at the end of the recently completed quarter, compared with $123 million at June 30, 2005. Included in these past due but accruing amounts were loans guaranteed by government-related entities of $79 million and $99 million at June 30, 2006 and 2005, respectively. Assets taken in foreclosure of defaulted loans were $14 million at June 30, 2006, compared with $8 million a year earlier.
Allowance for Credit Losses. The allowance for credit losses totaled $646 million, or 1.55% of total loans, at June 30, 2006, compared with $637 million, or 1.60%, 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 the rate of net loan charge-offs and the level of nonperforming loans. At December 31, 2005, the allowance for credit losses totaled $638 million, or 1.58% of total loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 414%, 346% and 408% at June 30, 2006, June 30, 2005 and December 31, 2005, respectively.
Noninterest Income and Expense. Noninterest income in the recent quarter totaled $263 million, a 7% improvement from $245 million in the second quarter of 2005. Contributing to the increase were higher mortgage banking revenues, deposit account service charges and trust income.
Noninterest expense in the second quarter of 2006 totaled $377 million, 1% below the year-earlier period's total of $380 million. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $11 million in 2006 and $14 million in 2005, and branch acquisition-related expenses of $4 million in 2006. Exclusive of these nonoperating expenses, noninterest operating expenses were $362 million in the recently completed quarter, down from $366 million in the second quarter of 2005. The most significant contributor to the lower level of operating expenses was an $8 million partial reversal of the valuation allowance for the impairment of capitalized mortgage servicing rights recorded during the recently completed quarter. The reduction of the valuation allowance reflects an increase in the value of capitalized servicing rights resulting from higher residential mortgage loan interest rates at the end of the recent quarter as compared with three months earlier. A $5 million addition to the valuation allowance for the impairment of capitalized mortgage servicing rights was recorded during the second quarter of 2005. Higher costs for salaries in the recent quarter as compared with the second quarter of 2005 partially offset the favorable impact of the change in the mortgage servicing rights valuation allowance.
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 50.7% in the second quarter of 2006, compared with 52.6% in the year-earlier period.
Balance Sheet. M&T had total assets of $56.5 billion at June 30, 2006, up from $54.5 billion at June 30, 2005. Loans and leases, net of unearned discount, rose 4% to $41.6 billion at the recent quarter-end, compared with $39.9 billion a year earlier. Reflecting the deposits obtained in the June 30 branch acquisition, total deposits were $38.5 billion at June 30, 2006, up 3% from $37.3 billion at June 30, 2005. Total stockholders' equity was $6.0 billion at June 30, 2006, representing 10.62% of total assets, compared with $5.8 billion or 10.71% a year earlier. Common stockholders' equity per share was $54.01 and $51.20 at June 30, 2006 and 2005, respectively. Tangible equity per common share was $25.55 at June 30, 2006, compared with $25.00 at June 30, 2005. 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 $3.2 billion and $3.0 billion at June 30, 2006 and 2005, respectively.
In November 2005, M&T announced that it had been authorized by its Board of Directors to purchase up to 5,000,000 shares of its common stock. During the recent quarter, 605,700 shares of common stock were repurchased by M&T pursuant to such plan at an average cost per share of $114.61. Through June 30, 2006, M&T had repurchased 1,919,400 shares of its common stock pursuant to such plan at an average cost of $110.48 per share.
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 10:00 a.m. Eastern Daylight Saving 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 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, July 13, 2006 by calling 877-519-4471, code 7587763 and 973-341-3080 for international participants. The event will also be archived and available by 3:00 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 monetary policy and required capital levels; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; 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) 842-5138
MEDIA CONTACT: C. Michael Zabel
(716) 842-5385
M&T BANK CORPORATION
Financial Highlights
Three months ended Six months ended
Amounts in thousands, June 30 June 30
except per share ----------------- ---------------
2006 2005 Change 2006 2005 Change
-------- ------ ------ -------- ------ -----
Performance
Net income $ 212,573 196,834 8% $ 415,490 386,124 8%
Per common share:
Basic earnings $ 1.91 1.73 10% $ 3.73 3.38 10%
Diluted earnings 1.87 1.69 11 3.64 3.31 10
Cash dividends $ .60 .45 33 $ 1.05 .85 24
Common shares outstanding:
Average - diluted (1) 113,968 116,422 -2% 114,157 116,801 -2%
Period end (2) 111,086 114,011 -3 111,086 114,011 -3
Return on (annualized):
Average total assets 1.54% 1.46% 1.52% 1.45%
Average common
stockholders' equity 14.35% 13.73% 14.16% 13.57%
Taxable-equivalent net
interest income $ 451,254 451,765 -% $ 903,011 897,940 1%
Yield on average earning
assets 6.63% 5.70% 6.55% 5.61%
Cost of interest-bearing
liabilities 3.56% 2.34% 3.42% 2.20%
Net interest spread 3.07% 3.36% 3.13% 3.41%
Contribution of
interest-free funds .59% .42% .57% .40%
Net interest margin 3.66% 3.78% 3.70% 3.81%
Net charge-offs to average
total net loans
(annualized) .10% .14% .13% . 17%
Net operating results (3)
Net operating income $ 221,838 205,415 8% $ 432,694 404,550 7%
Diluted net operating
earnings per common share 1.95 1.76 11 3.79 3.46 10
Return on (annualized):
Average tangible assets 1.69% 1.62% 1.67% 1.61%
Average tangible common
equity 30.02% 29.88% 29.67% 29.77%
Efficiency ratio 50.70% 52.56% 51.53% 52.10%
At June 30
-------------------------
Loan quality 2006 2005 Change
--------- --------- --------
Nonaccrual loans $ 140,626 173,403 -19 %
Renegotiated loans 15,399 10,649 45
--------- ---------
Total nonperforming loans $ 156,025 184,052 -15 %
========= =========
Accruing loans past due 90
days or more $ 101,001 123,301 -18 %
Nonperforming loans to
total net loans .38 % .46 %
Allowance for credit losses
to total net loans 1.55 % 1.60 %
(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 Six months ended
June 30 June 30
----------------- ----------------
Dollars in thousands 2006 2005 Change 2006 2005 Change
-------- ------- ------ --------- -------- ------
Interest income $ 812,911 676,518 20 % $ 1,590,183 1,314,839 21 %
Interest expense 366,298 229,016 60 696,544 425,282 64
------- ------- --------- ---------
Net interest income 446,613 447,502 - 893,639 889,557 -
Provision for credit
losses 17,000 19,000 -11 35,000 43,000 -19
------- ------- --------- ---------
Net interest income
after provision
for credit losses 429,613 428,502 - 858,639 846,557 1
Other income
Mortgage banking
revenues 41,565 31,274 33 76,076 64,700 18
Service charges on
deposit accounts 95,549 92,969 3 184,425 181,322 2
Trust income 34,757 32,745 6 68,553 66,268 3
Brokerage services
income 14,481 14,179 2 29,205 28,360 3
Trading account and
foreign exchange
gains 6,168 5,957 4 12,674 10,826 17
Gain on bank
investment securities 236 30 - 294 246 -
Other revenues from
operations 69,846 68,208 2 144,306 127,898 13
------- ------- ------- -------
Total other
income 262,602 245,362 7 515,533 479,620 7
Other expense
Salaries and employee
benefits 217,162 204,607 6 441,244 411,217 7
Equipment and net
occupancy 42,527 42,608 - 85,929 86,614 -1
Printing, postage
and supplies 8,072 8,411 -4 16,639 17,242 -3
Amortization of core
deposit and other
intangible assets 11,357 14,055 -19 24,385 30,176 -19
Other costs of
operations 97,879 110,760 -12 190,803 202,529 -6
------- ------- ------- -------
Total other
expense 376,997 380,441 -1 759,000 747,778 2
Income before income
taxes 315,218 293,423 7 615,172 578,399 6
Applicable income
taxes 102,645 96,589 6 199,682 192,275 4
-------- ------- ------- -------
Net income $ 212,573 196,834 8 % $ 415,490 386,124 8 %
======== ======= ======== =======
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
June 30
-----------------------
Dollars in thousands 2006 2005 Change
--------- --------- --------
ASSETS
Cash and due from banks $ 1,572,863 1,473,675 7 %
Interest-bearing deposits at banks 14,923 9,741 53
Federal funds sold and agreements
to resell securities 16,649 4,390 279
Trading account assets 208,291 194,950 7
Investment securities 7,903,142 8,319,967 -5
Loans and leases, net of unearned
discount 41,599,461 39,910,964 4
Less: allowance for credit losses 645,851 637,345 1
----------- -----------
Net loans and leases 40,953,610 39,273,619 4
Goodwill 2,908,849 2,904,081 -
Core deposit and other intangible
assets 290,847 135,331 115
Other assets 2,637,914 2,166,192 22
---------- ----------
Total assets $ 56,507,088 54,481,946 4 %
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits at U.S.
offices $ 8,099,083 8,681,655 -7 %
Other deposits at U.S. offices 27,637,294 24,442,455 13
Deposits at foreign office 2,777,306 4,181,722 -34
---------- ----------
Total deposits 38,513,683 37,305,832 3
Short-term borrowings 5,304,814 4,284,930 24
Accrued interest and other
liabilities 953,858 735,500 30
Long-term borrowings 5,734,509 6,317,961 -9
---------- ----------
Total liabilities 50,506,864 48,644,223 4
Stockholders' equity (1) 6,000,224 5,837,723 3
---------- ----------
Total liabilities and stockholders'
equity $ 56,507,088 54,481,946 4 %
========== ==========
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $147.8 million at June 30, 2006 and $37.8
million at June 30, 2005.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended
June 30
--------------------------------
Dollars in millions 2006 2005
--------------- -------------- Change in
Balance Rate Balance Rate balance
------- ----- ------- ---- ---------
ASSETS
Interest-bearing deposits
at banks $ 16 2.85 % 10 1.48 % 54 %
Federal funds sold and
agreements to resell
securities 30 5.36 24 3.37 25
Trading account assets 103 2.94 75 1.60 37
Investment securities 8,314 4.81 8,593 4.41 -3
Loans and leases, net of
unearned discount
Commercial, financial, etc. 11,274 7.04 10,484 5.44 8
Real estate - commercial 14,947 7.22 14,399 6.37 4
Real estate - consumer 4,860 6.29 3,493 6.00 39
Consumer 9,899 6.99 10,853 5.99 -9
------ ------
Total loans and leases, net 40,980 7.01 39,229 5.99 4
------ ------
Total earning assets 49,443 6.63 47,931 5.70 3
Goodwill 2,909 2,904 -
Core deposit and other
intangible assets 107 142 -25
Other assets 3,039 2,958 3
------ ------
Total assets $ 55,498 53,935 3 %
======= ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $ 438 .71 401 .54 9 %
Savings deposits 14,254 1.34 15,163 .88 -6
Time deposits 12,699 4.39 8,609 2.99 48
Deposits at foreign office 3,598 4.88 3,850 2.93 -7
------- ------
Total interest-bearing
deposits 30,989 2.99 28,023 1.80 11
------- ------
Short-term borrowings 4,326 4.97 4,969 2.96 -13
Long-term borrowings 5,930 5.51 6,263 4.25 -5
------- ------
Total interest-bearing
liabilities 41,245 3.56 39,255 2.34 5
Noninterest-bearing deposits 7,446 8,222 -9
Other liabilities 867 709 22
------ ------
Total liabilities 49,558 48,186 3
Stockholders' equity 5,940 5,749 3
------ ------
Total liabilities and
stockholders' equity $ 55,498 53,935 3 %
======= ======
Net interest spread 3.07 3.36
Contribution of interest-free funds .59 .42
Net interest margin 3.66 % 3.78 %
Six months ended
June 30
--------------------------------
Dollars in millions 2006 2005
--------------- -------------- Change in
Balance Rate Balance Rate balance
------- ----- ------- ---- ---------
ASSETS
Interest-bearing deposits
at banks $ 13 2.91 % 10 1.32 % 26 %
Federal funds sold and
agreements to resell
securities 31 5.12 24 3.12 28
Trading account assets 100 2.85 64 1.25 56
Investment securities 8,349 4.76 8,583 4.36 -3
Loans and leases, net of
unearned discount
Commercial, financial, etc. 11,155 6.85 10,290 5.28 8
Real estate - commercial 14,813 7.15 14,296 6.23 4
Real estate - consumer 4,731 6.23 3,370 5.99 40
Consumer 10,064 6.89 10,950 5.91 -8
------ ------
Total loans and leases, net 40,763 6.93 38,906 5.89 5
------ ------
Total earning assets 49,256 6.55 47,587 5.61 4
Goodwill 2,908 2,904 -
Core deposit and other
intangible assets 109 150 -27
Other assets 3,030 2,981 2
------ ------
Total assets $ 55,303 53,622 3 %
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $ 423 .68 389 .45 9 %
Savings deposits 14,294 1.29 15,123 .82 -5
Time deposits 12,287 4.22 8,017 2.84 53
Deposits at foreign office 3,491 4.66 4,025 2.68 -13
------- ------
Total interest-bearing
deposits 30,495 2.85 27,554 1.67 11
------- ------
Short-term borrowings 4,440 4.73 5,081 2.73 -13
Long-term borrowings 6,111 5.35 6,333 4.08 -4
------- ------
Total interest-bearing
liabilities 41,046 3.42 38,968 2.20 5
Noninterest-bearing deposits 7,509 8,212 -9
Other liabilities 831 706 18
------- ------
Total liabilities 49,386 47,886 3
Stockholders' equity 5,917 5,736 3
------- ------
Total liabilities and
stockholders' equity $ 55,303 53,622 3 %
======= =======
Net interest spread 3.13 3.41
Contribution of interest-free funds .57 .40
Net interest margin 3.70 % 3.81 %
Media Contact:
C. Michael Zabel
(716) 842-5385
Investor Contact:
Donald J. MacLeod
(716) 842-5138