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 2007 were $1.95, up from $1.87 in the year-earlier quarter. GAAP-basis net income in the recently completed quarter totaled $214 million, compared with $213 million in the second quarter of 2006. GAAP-basis net income for 2007's second quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.49% and 13.92%, respectively, compared with 1.54% and 14.35%, respectively, in the corresponding quarter of 2006.
Reflecting on M&T's financial performance in the recently completed quarter, Rene F. Jones, Executive Vice President and Chief Financial Officer, stated, "In contrast to the first quarter, M&T experienced a 3 basis point improvement in our net interest margin and growth in several noninterest income categories, including mortgage banking revenues that were consistent with our historical performance. In addition to revenue growth, operating expenses continued to be well-controlled."
For the first six months of 2007, GAAP-basis diluted earnings per share were $3.51, compared with $3.64 in the similar 2006 period. On the same basis, net income for the first half of the year totaled $390 million in 2007 and $415 million in 2006. GAAP-basis net income for the six-month period ended June 30, 2007 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.37% and 12.65%, respectively, compared with 1.52% and 14.16%, respectively, in the similar 2006 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, 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 $10 million ($.09 per diluted share) in the second quarter of 2007, compared with $7 million ($.06 per diluted share) in the second quarter of 2006. Similar after tax effect amortization charges for the six-month periods ended June 30, 2007 and 2006 were $21 million ($.19 per diluted share) and $15 million ($.13 per diluted share), respectively. The increased amortization in 2007 as compared with the corresponding 2006 periods reflects the June 30, 2006 acquisition of 21 banking offices in Buffalo and Rochester, including $1 billion of deposits and $269 million of loans. Expenses related to the acquisition and integration of those banking offices, deposits and loans totaled $2 million, after applicable tax effect, or $.02 per diluted share in the three- and six-month periods ended June 30, 2006. There were no similar expenses in 2007.
Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets and banking office acquisition-related expenses, were $2.04 in the recent quarter, up 5% from $1.95 in the year-earlier quarter. Net operating income during 2007's second quarter was $224 million, compared with $222 million in the corresponding 2006 period. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, net operating income was 1.65% and 29.35%, respectively, in the recent quarter, compared with 1.69% and 30.02% in the year-earlier quarter.
Diluted net operating earnings per share for the six-month period ended June 30, 2007 were $3.70, compared with $3.79 in the first six months of 2006. Net operating income for the first half of 2007 was $411 million, compared with $433 million in the similar 2006 period. For the first two quarters of 2007, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.53% and 26.71%, respectively, compared with 1.67% and 29.67% in the first half of 2006.
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
2007 2006 2007 2006
---- ---- ---- ----
(in thousands, except per share)
Diluted earnings per share $ 1.95 1.87 3.51 3.64
Amortization of core deposit
and other intangible assets(1) .09 .06 .19 .13
Merger-related expenses(1) - .02 - .02
------- ------- ------- -------
Diluted net operating earnings
per share $ 2.04 1.95 3.70 3.79
======= ======= ======= =======
Net income $214,169 212,573 390,142 415,490
Amortization of core deposit
and other intangible assets(1) 10,021 6,921 21,210 14,860
Merger-related expenses(1) - 2,344 - 2,344
------- ------- ------- -------
Net operating income $224,190 221,838 411,352 432,694
======= ======= ======= =======
(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
2007 2006 2007 2006
---- ---- ---- ----
(in millions)
Average assets $57,523 55,498 57,366 55,303
Goodwill (2,909) (2,909) (2,909) (2,908)
Core deposit and other
intangible assets (223) (107) (232) (109)
Deferred taxes 24 40 26 41
------ ------ ------ ------
Average tangible assets $54,415 52,522 54,251 52,327
====== ====== ====== ======
Average equity $ 6,172 5,940 6,221 5,917
Goodwill (2,909) (2,909) (2,909) (2,908)
Core deposit and other
intangible assets (223) (107) (232) (109)
Deferred taxes 24 40 26 41
------ ------ ------ ------
Average tangible equity $ 3,064 2,964 3,106 2,941
====== ====== ====== ======
Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $467 million in the second quarter of 2007, up 3% from $451 million in the year-earlier period. Growth in average loans and leases, which rose 6% to $43.6 billion in the recent quarter from $41.0 billion in the second quarter of 2006, was the most significant contributor to the improvement. Such growth was attributable to average outstanding balance increases in commercial loans, commercial real estate loans and residential real estate loans. Net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, was 3.67% in the recent quarter, compared with 3.66% in the corresponding quarter of 2006. The recent quarter's net interest margin was also improved from 3.64% in 2007's initial quarter.
Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $30 million in the second quarter of 2007, up from $17 million in the year-earlier quarter. Net charge-offs of loans were $22 million during the recent quarter, compared with $10 million in the second quarter of 2006. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .10% in the second quarter of 2007 and 2006, respectively. With regard to credit, Mr. Jones noted, "Consistent with our expectations, loan charge-off rates have risen although they are still well below historical norms."
Loans classified as nonperforming totaled $296 million, or .68% of total loans at June 30, 2007, compared with $156 million or .38% a year earlier, $224 million or .52% at December 31, 2006 and $273 million or .63% at March 31, 2007. Contributing to the increase in nonperforming loans from March 31, 2007 was the addition of a $34 million loan to a residential home builder and developer in the Mid-Atlantic region. Loans past due 90 days or more and accruing interest were $135 million at the end of the recent quarter, compared with $101 million at June 30, 2006. Included in these past due but accruing amounts were loans guaranteed by government-related entities of $70 million and $79 million at June 30, 2007 and 2006, respectively. Assets taken in foreclosure of defaulted loans were $18 million at June 30, 2007, compared with $14 million a year earlier.
Allowance for Credit Losses. The allowance for credit losses totaled $668 million, or 1.53% of total loans, at June 30, 2007, compared with $646 million, or 1.55%, a year earlier and $650 million, or 1.51%, at December 31, 2006. The decline in the allowance as a percentage of loans from June 30, 2006 to the recent quarter-end reflects increased holdings of residential real estate loans in the loan portfolio. In general, M&T experiences lower charge-offs on residential real estate loans than on most other loan types. The ratio of M&T's allowance for credit losses to nonperforming loans was 226%, 414% and 290% at June 30, 2007, June 30, 2006 and December 31, 2006, respectively.
Noninterest Income and Expense. Noninterest income in the second quarter of 2007 totaled $283 million, an increase of 8% from $263 million in the year- earlier quarter. Contributing to the increase were higher deposit account service charges, revenues from providing brokerage, trust and corporate advisory services, and $8 million relating to M&T's pro-rata portion of the operating results of Bayview Lending Group, LLC ("BLG"), a privately-held commercial mortgage lender in which M&T invested on February 5, 2007. Including expenses associated with M&T's investment in BLG, most notably interest expense, that investment added approximately $2 million (after tax effect) to M&T's net income in the second quarter of 2007. BLG specializes in originating, securitizing and servicing small balance commercial real estate loans in the United States, and to a lesser extent in Canada and the United Kingdom.
Noninterest expense in the second quarter of 2007 aggregated $393 million, compared with $377 million in the second quarter of 2006. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $16 million in 2007 and $11 million in 2006, and banking office acquisition-related expenses of $4 million in 2006. The increased amortization and the acquisition-related expenses reflect M&T's June 30, 2006 transaction to acquire 21 banking offices in Western New York. Exclusive of these nonoperating expenses, noninterest operating expenses were $376 million in the recent quarter, compared with $362 million in the second quarter of 2006. Higher salaries expense in the recent quarter as compared with the second quarter of 2006 was the largest contributor to the increase in noninterest operating expenses. During the recent quarter, the allowance for impairment of capitalized residential mortgage servicing rights was reduced by $5 million, compared with a similar reversal of $8 million in the second quarter of 2006. Those reversals reduced noninterest operating expenses and resulted from higher interest rate environments at the end of the respective quarters as compared with the immediately preceding quarter-ends.
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 improved to 50.2% in the second quarter of 2007 from 50.7% in the year-earlier period.
Balance Sheet. M&T had total assets of $57.9 billion at June 30, 2007, up from $56.5 billion at June 30, 2006. Loans and leases, net of unearned discount, rose 5% to $43.7 billion at the recent quarter-end from $41.6 billion a year earlier. Deposits were $39.4 billion at June 30, 2007, compared with $38.5 billion at June 30, 2006. Total stockholders' equity was $6.2 billion at June 30, 2007, representing 10.67% of total assets, compared with $6.0 billion or 10.62% a year earlier. Common stockholders' equity per share was $57.59 and $54.01 at June 30, 2007 and 2006, respectively. Tangible equity per common share was $28.66 at June 30, 2007, compared with $25.55 at June 30, 2006. 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 $3.1 billion and $3.2 billion at June 30, 2007 and 2006, respectively.
During the recent quarter, M&T repurchased 1,978,000 shares of common stock at an average cost per share of $109.77 under a plan authorized in February 2007 by M&T's Board of Directors allowing for the purchase of up to 5,000,000 shares of common stock. During the first half of 2007, M&T repurchased 3,714,800 shares of its common stock pursuant to authorized repurchased plans (including 1,696,300 shares that were repurchased under a previous authorization that was completed in March 2007) at an average cost of $114.41 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. Callers should reference M&T Bank Corporation or conference ID# 8942628. 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 Friday, July 13, 2007 by calling 877-519-4471, or 973-341-3080 for international participants, and by making reference to ID# 8942628. 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.
M&T is a bank holding company whose banking subsidiaries, M&T Bank and M&T Bank, National Association, operate branch offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia.
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, credit losses and market values on loans and other assets; 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, including tax legislation; 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, acquisition and investment 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
Amounts in thousands, June 30
except per share -----------------------
2007 2006 Change
---------- ---------- ------
Performance
Net income $214,169 212,573 1 %
Per common share:
Basic earnings $ 1.98 1.91 4 %
Diluted earnings 1.95 1.87 4
Cash dividends $ .60 .60 -
Common shares outstanding:
Average - diluted (1) 109,919 113,968 -4 %
Period end (2) 107,230 111,086 -3
Return on (annualized):
Average total assets 1.49 % 1.54 %
Average common stockholders' equity 13.92 % 14.35 %
Taxable-equivalent net interest
income $466,884 451,254 3 %
Yield on average earning assets 6.95 % 6.63 %
Cost of interest-bearing liabilities 3.87 % 3.56 %
Net interest spread 3.08 % 3.07 %
Contribution of interest-free funds .59 % .59 %
Net interest margin 3.67 % 3.66 %
Net charge-offs to average total
net loans (annualized) .20 % .10 %
Net operating results (3)
Net operating income $224,190 221,838 1 %
Diluted net operating earnings per
common share 2.04 1.95 5
Return on (annualized):
Average tangible assets 1.65 % 1.69 %
Average tangible common equity 29.35 % 30.02 %
Efficiency ratio 50.18 % 50.70 %
Six months ended
Amounts in thousands, June 30
except per share -----------------------
2007 2006 Change
---------- ---------- ------
Performance
Net income $390,142 415,490 -6 %
Per common share:
Basic earnings $ 3.59 3.73 -4 %
Diluted earnings 3.51 3.64 -4
Cash dividends $ 1.20 1.05 14
Common shares outstanding:
Average - diluted (1) 111,046 114,157 -3 %
Period end (2) 107,230 111,086 -3
Return on (annualized):
Average total assets 1.37 % 1.52 %
Average common stockholders' equity 12.65 % 14.16 %
Taxable-equivalent net interest
income $922,434 903,011 2 %
Yield on average earning assets 6.94 % 6.55 %
Cost of interest-bearing liabilities 3.88 % 3.42 %
Net interest spread 3.06 % 3.13 %
Contribution of interest-free funds .60 % .57 %
Net interest margin 3.66 % 3.70 %
Net charge-offs to average total
net loans (annualized) .18 % .13 %
Net operating results (3)
Net operating income $411,352 432,694 -5 %
Diluted net operating earnings per
common share 3.70 3.79 -2
Return on (annualized):
Average tangible assets 1.53 % 1.67 %
Average tangible common equity 26.71 % 29.67 %
Efficiency ratio 52.53 % 51.53 %
At June 30
------------------------
Loan quality 2007 2006 Change
---------- ---------- -------
Nonaccrual loans $282,133 140,626 101 %
Renegotiated loans 13,706 15,399 -11
---------- ---------
Total nonperforming loans $295,839 156,025 90 %
========== =========
Accruing loans past due 90 days or
more $134,906 101,001 34 %
Nonperforming loans to total net
loans .68 % .38 %
Allowance for credit losses to total
net loans 1.53 % 1.55 %
-------------------------------------------------------------------------
(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
June 30
----------------------
Dollars in thousands 2007 2006 Change
---------- ---------- ------
Interest income $878,176 812,911 8 %
Interest expense 416,264 366,298 14
---------- ----------
Net interest income 461,912 446,613 3
Provision for credit losses 30,000 17,000 76
---------- ----------
Net interest income after
provision for credit losses 431,912 429,613 1
Other income
Mortgage banking revenues 35,546 41,565 -14
Service charges on deposit
accounts 104,626 95,549 9
Trust income 37,550 34,757 8
Brokerage services income 16,654 14,481 15
Trading account and foreign
exchange gains 6,963 6,168 13
Gain on bank investment
securities 260 236 -
Equity in earnings of Bayview
Lending Group LLC 8,128 - -
Other revenues from operations 73,390 69,846 5
---------- ----------
Total other income 283,117 262,602 8
Other expense
Salaries and employee benefits 224,700 217,162 3
Equipment and net occupancy 41,099 42,527 -3
Printing, postage and supplies 8,984 8,072 11
Amortization of core deposit and
other intangible assets 16,457 11,357 45
Other costs of operations 101,411 97,879 4
---------- ----------
Total other expense 392,651 376,997 4
Income before income taxes 322,378 315,218 2
Applicable income taxes 108,209 102,645 5
---------- ----------
Net income $214,169 212,573 1 %
========== ==========
Six months ended
June 30
------------------------
Dollars in thousands 2007 2006 Change
----------- ----------- ------
Interest income $1,739,225 1,590,183 9 %
Interest expense 826,886 696,544 19
----------- -----------
Net interest income 912,339 893,639 2
Provision for credit losses 57,000 35,000 63
----------- -----------
Net interest income after
provision for credit losses 855,339 858,639 -
Other income
Mortgage banking revenues 49,419 76,076 -35
Service charges on deposit
accounts 199,213 184,425 8
Trust income 74,523 68,553 9
Brokerage services income 31,866 29,205 9
Trading account and foreign
exchange gains 13,186 12,674 4
Gain on bank investment
securities 1,323 294 -
Equity in earnings of Bayview
Lending Group LLC 5,700 - -
Other revenues from operations 144,370 144,306 -
----------- -----------
Total other income 519,600 515,533 1
Other expense
Salaries and employee benefits 461,454 441,244 5
Equipment and net occupancy 83,945 85,929 -2
Printing, postage and supplies 17,890 16,639 8
Amortization of core deposit and
other intangible assets 34,813 24,385 43
Other costs of operations 193,586 190,803 1
----------- -----------
Total other expense 791,688 759,000 4
Income before income taxes 583,251 615,172 -5
Applicable income taxes 193,109 199,682 -3
----------- -----------
Net income $390,142 415,490 -6 %
=========== ===========
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
June 30
------------------------
Dollars in thousands 2007 2006 Change
----------- ----------- ------
ASSETS
Cash and due from banks $1,301,894 1,572,863 -17 %
Interest-bearing deposits at banks 6,954 14,923 -53
Federal funds sold and agreements
to resell securities 334,924 16,649 -
Trading account assets 152,410 208,291 -27
Investment securities 6,982,323 7,903,142 -12
Loans and leases, net of unearned
discount 43,743,822 41,599,461 5
Less: allowance for credit losses 668,138 645,851 3
----------- -----------
Net loans and leases 43,075,684 40,953,610 5
Goodwill 2,908,849 2,908,849 -
Core deposit and other intangible
assets 215,897 290,847 -26
Other assets 2,890,134 2,637,914 10
----------- -----------
Total assets $57,869,069 56,507,088 2 %
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits at U.S.
offices $7,477,576 8,099,083 -8 %
Other deposits at U.S. offices 25,330,140 27,637,294 -8
Deposits at foreign office 6,610,919 2,777,306 138
----------- -----------
Total deposits 39,418,635 38,513,683 2
Short-term borrowings 2,933,081 5,304,814 -45
Accrued interest and other
liabilities 897,249 953,858 -6
Long-term borrowings 8,444,797 5,734,509 47
----------- -----------
Total liabilities 51,693,762 50,506,864 2
Stockholders' equity (1) 6,175,307 6,000,224 3
----------- -----------
Total liabilities and stockholders'
equity $57,869,069 56,507,088 2 %
=========== ===========
-------------------------------------------------------------------------
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $66.8 million at June 30, 2007 and $147.8
million at June 30, 2006.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended
June 30
-------------------------------
Dollars in millions 2007 2006
--------------- --------------- Change in
Balance Rate Balance Rate balance
ASSETS ------- ---- ------- ---- ---------
Interest-bearing deposits at
banks $ 9 3.12 % 16 2.85 % -45 %
Federal funds sold and
agreements to resell
securities 448 6.03 30 5.36 -
Trading account assets 67 1.40 103 2.94 -35
Investment securities 6,886 5.01 8,314 4.81 -17
Loans and leases, net of
unearned discount
Commercial, financial, etc. 12,155 7.23 11,274 7.04 8
Real estate - commercial 15,578 7.45 14,947 7.22 4
Real estate - consumer 5,875 6.49 4,860 6.29 21
Consumer 9,964 7.47 9,899 6.99 1
------- -------
Total loans and
leases, net 43,572 7.27 40,980 7.01 6
------- -------
Total earning assets 50,982 6.95 49,443 6.63 3
Goodwill 2,909 2,909 -
Core deposit and other
intangible assets 223 107 109
Other assets 3,409 3,039 12
------- -------
Total assets $57,523 55,498 4 %
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $ 453 .91 438 .71 3 %
Savings deposits 15,027 1.63 14,254 1.34 5
Time deposits 10,523 4.73 12,699 4.39 -17
Deposits at foreign office 3,706 5.19 3,598 4.88 3
------- -------
Total interest-bearing
deposits 29,709 3.16 30,989 2.99 -4
------- -------
Short-term borrowings 5,555 5.31 4,326 4.97 28
Long-term borrowings 7,905 5.52 5,930 5.51 33
------- -------
Total interest-bearing
liabilities 43,169 3.87 41,245 3.56 5
Noninterest-bearing deposits 7,339 7,446 -1
Other liabilities 843 867 -3
------- -------
Total liabilities 51,351 49,558 4
Stockholders' equity 6,172 5,940 4
------- -------
Total liabilities and
stockholders' equity $57,523 55,498 4 %
======= =======
Net interest spread 3.08 3.07
Contribution of interest-free
funds .59 .59
Net interest margin 3.67 % 3.66 %
Six months ended
June 30
-------------------------------
Dollars in millions 2007 2006
--------------- --------------- Change in
Balance Rate Balance Rate balance
ASSETS ------- ---- ------- ---- ---------
Interest-bearing deposits at
banks $ 8 3.33 % 13 2.91 % -37 %
Federal funds sold and
agreements to resell
securities 377 6.18 31 5.12 -
Trading account assets 60 1.15 100 2.85 -40
Investment securities 7,049 5.03 8,349 4.76 -16
Loans and leases, net of
unearned discount
Commercial, financial, etc. 11,955 7.25 11,155 6.85 7
Real estate - commercial 15,526 7.37 14,813 7.15 5
Real estate - consumer 5,907 6.48 4,731 6.23 25
Consumer 9,956 7.45 10,064 6.89 -1
------- -------
Total loans and leases,
net 43,344 7.27 40,763 6.93 6
------- -------
Total earning assets 50,838 6.94 49,256 6.55 3
Goodwill 2,909 2,908 -
Core deposit and other
intangible assets 232 109 113
Other assets 3,387 3,030 12
------- -------
Total assets $57,366 55,303 4 %
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $ 445 .99 423 .68 5 %
Savings deposits 14,881 1.65 14,294 1.29 4
Time deposits 11,087 4.74 12,287 4.22 -10
Deposits at foreign office 3,711 5.20 3,491 4.66 6
------- -------
Total interest-bearing
deposits 30,124 3.22 30,495 2.85 -1
Short-term borrowings 5,206 5.31 4,440 4.73 17
Long-term borrowings 7,608 5.55 6,111 5.35 25
------- -------
Total interest-bearing
liabilities 42,938 3.88 41,046 3.42 5
Noninterest-bearing deposits 7,380 7,509 -2
Other liabilities 827 831 -
------- -------
Total liabilities 51,145 49,386 4
Stockholders' equity 6,221 5,917 5
------- -------
Total liabilities and
stockholders' equity $57,366 55,303 4 %
======= =======
Net interest spread 3.06 3.13
Contribution of interest-free
funds .60 .57
Net interest margin 3.66 % 3.70 %
Media Contact:
C. Michael Zabel
(716) 842-5385
Investor Contact:
Donald J. MacLeod
(716) 842-5138
Web site: http://www.mandtbank.com/