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M&T Bank Corporation Announces Second Quarter Profits
PR Newswire
BUFFALO, N.Y.

BUFFALO, N.Y., July 20, 2011 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2011.

GAAP Results of Operations.  Diluted  earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2011 rose 66% to $2.42 from $1.46 in the year-earlier quarter and were 52% higher than $1.59 in the initial 2011 quarter.  GAAP-basis net income in the recent quarter aggregated $322 million, up from $189 million and $206 million in the second quarter of 2010 and the first quarter of 2011, respectively. GAAP-basis net income for the second quarter of 2011 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.78% and 14.94%, respectively, improved from 1.11% and 9.67%, respectively, in the year-earlier quarter and 1.23% and 10.16%, respectively, in the first quarter of 2011.

M&T's second quarter results were impacted by several noteworthy items.  Most significantly, M&T completed its acquisition of Wilmington Trust Corporation ("Wilmington Trust"), effective May 16, 2011, including the issuance of 4.7 million common shares.  Results of the operations acquired from Wilmington Trust are reflected in M&T's results since the acquisition date.  Assets acquired in the transaction totaled approximately $10.8 billion, including $6.4 billion of loans, while liabilities assumed were $10.0 billion, including $8.9 billion of deposits.  Although significant merger-related expenses will be incurred in the third and fourth quarters of 2011 as systems conversions are completed and operations are integrated, M&T recognized a net after-tax gain of $42 million, or $.33 of diluted earnings per common share, in the recent quarter related to the Wilmington Trust acquisition. That net gain was comprised of a non-taxable gain of $65 million, which represented the excess of the fair value of assets acquired less liabilities assumed over consideration exchanged, and merger-related expenses, which aggregated $23 million, after applicable tax effect. Such expenses were associated with integrating operations and introducing Wilmington Trust's former customers to M&T's products and services.  Also contributing to the recent quarter's improved performance were net gains on investment securities, which aggregated $51 million, after tax effect, or $.41 of diluted earnings per common share. Net securities gains in 2011's initial quarter contributed $14 million to that quarter's net income, or $.12 of diluted earnings per common share, while net securities losses during the second quarter of 2010 reduced net income and diluted earnings per common share by $14 million and $.11, respectively.  Other actions initiated by M&T during the recent quarter included the purchase from the U.S. Department of the Treasury ("Treasury Department") and subsequent retirement of $330 million of preferred stock that Wilmington Trust issued pursuant to the Troubled Asset Relief Program ("TARP"), the redemption of $370 million of M&T Series A Preferred Stock issued to the Treasury Department by M&T pursuant to the TARP, and the issuance by M&T of $500 million of fixed rate, perpetual non-cumulative preferred stock to supplement its Tier 1 capital.

Commenting on M&T's financial results for the recent quarter, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "The second quarter was truly a period of significant accomplishment.  On May 16, we welcomed the employees and customers of Wilmington Trust into the M&T family.  We are excited about the possibilities this merger brings to M&T's customers, both existing and new.  Above and beyond the positive impact of the merger, M&T's results reflected higher fee income, lower operating expenses and continued improvement in credit trends.  Also exclusive of the impact of the merger, average loans during the quarter grew an annualized 2% and average core deposits rose an annualized 10%."

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides 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 gains and expenses associated with merging acquired operations into M&T, since such items 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.  Reconciliations of GAAP to non-GAAP measures are provided in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $2.16 in the recent quarter, up from $1.53 and $1.67 in the second quarter of 2010 and the first quarter of 2011, respectively.  Net operating income during the second quarter of 2011 was $289 million, improved from $198 million and $216 million in the second quarter of 2010 and the first quarter of 2011, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recently completed quarter was 1.69% and 24.40%, respectively, compared with 1.23% and 20.36% in the second quarter of 2010 and 1.36% and 20.16% in the initial 2011 quarter.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $593 million in the second quarter of 2011, up 3% from $573 million in the year-earlier period and $575 million in the first quarter of 2011.  The improvement from the second quarter of 2010 was the result of a $3.6 billion rise in average earning assets, partially offset by a 9 basis point narrowing of the net interest margin to 3.75% in the recent quarter from 3.84% in the year-earlier quarter. The increase in taxable-equivalent net interest income from the initial 2011 quarter was due to a $4.0 billion increase in average earning assets, partially offset by a 17 basis point narrowing of the net interest margin.  The narrowing of the net interest margin in the recent quarter as compared with the year-earlier quarter and the first quarter of 2011 was partially attributable to the impact of the Wilmington Trust acquisition.  Also contributing to the narrowing were significantly higher earning balances on deposit with the Federal Reserve and higher amounts of agreements to resell securities, which in the aggregate averaged $1.3 billion during the recent quarter and totaled $2.5 billion at June 30, 2011.

Provision for Credit Losses/Asset Quality. Credit quality continued to show solid improvement during the recent quarter.  The provision for credit losses was $63 million in the second quarter of 2011, improved from $85 million in the year-earlier quarter and $75 million in the first quarter of 2011.  Net charge-offs of loans totaled $59 million during the recent quarter, down from $82 million and $74 million in the second quarter of 2010 and the first quarter of 2011, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .43% and .64% in the second quarter of 2011 and 2010, respectively, and .58% in the first quarter of 2011.

Loans classified as nonaccrual aggregated $1.26 billion at June 30, 2011, compared with $1.09 billion a year earlier and $1.21 billion at March 31, 2011.  Reflected in nonaccrual loans at June 30, 2011 were $77 million of loans obtained in the Wilmington Trust acquisition.  Nonaccrual loans as a percentage of total loans were 2.15%, 2.13% and 2.32% at June 30, 2011, June 30, 2010 and March 31, 2011, respectively. Assets taken in foreclosure of defaulted loans were $159 million at June 30, 2011, down from $193 million at June 30, 2010 and $218 million at March 31, 2011.  The decrease in such assets at the recent quarter-end resulted from the sale of a commercial real estate property in New York City with a carrying value of $99 million.  Reflected in assets taken in foreclosure of defaulted loans at June 30, 2011 were $57 million of such assets obtained in the Wilmington Trust acquisition that were recorded at fair value on the acquisition date.  The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.42% at June 30, 2011, improved from 2.73% at March 31, 2011.  That ratio was 2.50% at June 30, 2010.

Loans past due 90 days or more and accruing interest totaled $373 million at the end of the recent quarter, including loans guaranteed by government-related entities of $207 million.  Included in such loans at the recent quarter-end were $130 million of loans obtained in the Wilmington Trust acquisition.  Loans past due 90 days or more and accruing interest were $203 million and $264 million at June 30, 2010 and March 31, 2011, respectively, including $188 million and $215 million of government guaranteed loans at those respective dates.

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses.  Reflecting those analyses, the allowance totaled $908 million at June 30, 2011, up from $895 million and $904 million at June 30, 2010 and March 31, 2011, respectively.  Beginning in 2009, GAAP requires that expected credit losses associated with loans obtained in acquisitions be reflected in the estimation of loan fair value as of each respective acquisition date and prohibits any carry-over of the acquired entity's allowance for credit losses.  Excluding amounts related to loans obtained in acquisition transactions subsequent to 2008, the allowance-to-legacy loan ratio was 1.80% at June 30, 2011, compared with 1.86% at June 30, 2010 and 1.81% at March 31, 2011.  

Noninterest Income and Expense. Noninterest income totaled $502 million in the second quarter of 2011, compared with $274 million and $314 million in the second quarter of 2010 and the first quarter of 2011, respectively.  Reflected in those amounts were net pre-tax gains on investment securities of $84 million and $23 million in the recent quarter and the first quarter of 2011, respectively, and net pre-tax losses from investment securities of $22 million in the second quarter of 2010.  The net securities gains in the recent quarter resulted from $111 million of gains realized on the sale of investment securities available for sale, predominantly residential mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac, collateralized debt obligations and capital preferred securities, having an amortized cost of approximately $1.21 billion.  Partially offsetting those securities gains were $27 million of other-than-temporary impairment charges related to certain of M&T's holdings of privately issued collateralized mortgage obligations.  The net securities gains in the initial 2011 quarter resulted from $39 million of gains realized on the sale of investment securities available for sale having an amortized cost of approximately $484 million.  Partially offsetting those securities gains were $16 million of other-than-temporary impairment charges related to certain of M&T's holdings of privately issued collateralized mortgage obligations.  Due largely to the Wilmington Trust acquisition, M&T sold the securities in order to manage its balance sheet size and composition and the resultant capital ratios.  The net losses in the second quarter of 2010 were predominantly due to other-than-temporary impairment charges on investment securities.  

Excluding gains and losses from investment securities in all periods and the gain recorded in the recent quarter related to the Wilmington Trust acquisition, noninterest income in the second quarter of 2011 aggregated $353 million, improved from $296 million in the year-earlier quarter and $291 million in the initial quarter of 2011. Contributing to the rise from the year-earlier quarter were significantly higher trust income, predominantly due to the Wilmington Trust transaction, letter of credit and other credit-related fees and gains on the sale of previously leased equipment, partially offset by lower service charges on consumer deposit accounts.  The recent quarter's improvement in noninterest income as compared with the initial 2011 quarter resulted from higher trust income, due to the Wilmington Trust acquisition, and higher consumer service charges and other fee income.  Wilmington Trust-related revenues in the recent quarter added $54 million to other income, including $46 million to trust income and $4 million to deposit service charges.

Noninterest expense in the second quarter of 2011 totaled $577 million, compared with $476 million in the year-earlier quarter and $500 million in the first quarter of 2011.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $525 million in the recent quarter, compared with $461 million in the second quarter of 2010 and $483 million in 2011's initial quarter.  As compared with the second quarter of 2010 and the first quarter of 2011, the recent quarter's higher level of operating expenses was due, in large part, to the operations obtained in the Wilmington Trust acquisition.  

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 and merger-related gains), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 55.6% in the second quarter of 2011, compared with 53.1% in the year-earlier period and 55.8% in the first quarter of 2011.  

Balance Sheet.  M&T had total assets of $77.7 billion at June 30, 2011, compared with $68.2 billion at June 30, 2010.  Loans and leases, net of unearned discount, were $58.5 billion at the recent quarter-end, compared with $51.1 billion a year earlier.  Total deposits rose to $59.2 billion at June 30, 2011 from $47.5 billion at June 30, 2010.

Total shareholders' equity increased to $9.2 billion at June 30, 2011 from $8.1 billion a year earlier, each representing 11.89% of total assets.  Common shareholders' equity was $8.4 billion, or $66.71 per share, at June 30, 2011, compared with $7.4 billion, or $61.77 per share, at June 30, 2010.  Tangible equity per common share rose 19% to $37.00 at the recent quarter-end from $31.15 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $64.43 and $34.38, respectively, at March 31, 2011.  In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances.  M&T's tangible common equity to tangible assets ratio was 6.28% at June 30, 2011, compared with 5.75% and 6.44% at June 30, 2010 and March 31, 2011, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 11:00 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.  Callers should reference M&T Bank Corporation or the conference ID# 82574531. The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/conference.cfm.  A replay of the call will be available until Friday, July 22, 2011 by calling (855)859-2056, or (404)537-3406 for international participants, and by making reference to ID# 82574531.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/conference.cfm.  

M&T is a financial holding company headquartered in Buffalo, New York.  M&T's principal banking subsidiary, M&T Bank, operates retail and commercial bank branches in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey, the District of Columbia and Ontario, Canada.  Trust-related services are provided by M&T's Wilmington Trust affiliated companies and by M&T Bank.

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, collateral securing 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 capital requirements; 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, including tax-related examinations and other matters; 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

         

Six months ended

       

Amounts in thousands,

 

June 30

         

June 30

       

except per share

 

2011

 

2010

 

Change

     

2011

 

2010

 

Change

   
                                 

Performance

                               
                                 

Net income

$

322,358

 

188,749

 

71

%

 

$

528,631

 

339,704

 

56

%

 

Net income available to common shareholders

 

297,179

 

173,597

 

71

     

487,308

 

310,037

 

57

   
                                 

Per common share:

                               

 Basic earnings

$

2.43

 

1.47

 

65

%

 

$

4.04

 

2.63

 

54

%

 

 Diluted earnings

 

2.42

 

1.46

 

66

     

4.02

 

2.61

 

54

   

 Cash dividends

$

.70

 

.70

 

-

   

$

1.40

 

1.40

 

-

   
                                 

Common shares outstanding:

                               

 Average - diluted (1)

 

122,796

 

118,878

 

3

%

   

121,332

 

118,569

 

2

%

 

 Period end (2)

 

125,622

 

119,161

 

5

     

125,622

 

119,161

 

5

   
                                 

Return on (annualized):

                               

 Average total assets

 

1.78

%

1.11

%

       

1.52

%

1.00

%

     

 Average common shareholders' equity

 

14.94

%

9.67

%

       

12.62

%

8.78

%

     
                                 

Taxable-equivalent net interest income

$

592,670

 

573,332

 

3

%

 

$

1,167,801

 

1,135,589

 

3

%

 
                                 

Yield on average earning assets

 

4.40

%

4.63

%

       

4.49

%

4.61

%

     

Cost of interest-bearing liabilities

 

.89

%

1.04

%

       

.90

%

1.04

%

     

Net interest spread

 

3.51

%

3.59

%

       

3.59

%

3.57

%

     

Contribution of interest-free funds

 

.24

%

.25

%

       

.24

%

.24

%

     

Net interest margin

 

3.75

%

3.84

%

       

3.83

%

3.81

%

     
                                 

Net charge-offs to average total

                               

 net loans (annualized)

 

.43

%

.64

%

       

.50

%

.69

%

     
                                 

Net operating results (3)

                               
                                 

Net operating income

$

289,487

 

197,752

 

46

%

 

$

505,847

 

358,705

 

41

%

 

Diluted net operating earnings per common share

 

2.16

 

1.53

 

41

     

3.83

 

2.77

 

38

   

Return on (annualized):

                               

 Average tangible assets

 

1.69

%

1.23

%

       

1.53

%

1.11

%

     

 Average tangible common equity

 

24.40

%

20.36

%

       

22.37

%

18.89

%

     

Efficiency ratio

 

55.56

%

53.06

%

       

55.65

%

54.45

%

     
                                 
                                 
                                 
   

At June 30

                       

Loan quality

 

2011

 

2010

 

Change

                   
                                 

Nonaccrual loans

$

1,258,975

 

1,090,135

 

15

%

                 

Real estate and other foreclosed assets

 

158,873

 

192,631

 

-18

%

                 

 Total nonperforming assets

$

1,417,848

 

1,282,766

 

11

%

                 
                                 

Accruing loans past due 90 days or more

$

373,197

 

203,081

 

84

%

                 
                                 

Renegotiated loans

$

234,726

 

228,847

 

3

%

                 
                                 

Government guaranteed loans included in totals

                               

 above:

                               

 Nonaccrual loans

$

78,732

 

40,271

 

96

%

                 

 Accruing loans past due 90 days or more

 

207,135

 

187,682

 

10

%

                 
                                 

Purchased impaired loans (4):

                               

 Outstanding customer balance

$

1,538,419

 

130,808

 

-

                   

 Carrying amount

 

752,978

 

61,524

 

-

                   
                                 

Nonaccrual loans to total net loans

 

2.15

%

2.13

%

                     
                                 

Allowance for credit losses to:

                               

 Legacy loans

 

1.80

%

1.86

%

                     

 Total loans

 

1.55

%

1.75

%

                     
                                 
                                 

(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

 

      gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects.

 

      Reconciliations of net income with net operating income appear herein.

 

(4)  Accruing loans that were impaired at acquisition date and recorded at fair value.

 
                               

 

M&T BANK CORPORATION

                               

Financial Highlights, Five Quarter Trend

                               
   

Three months ended

   

Amounts in thousands,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

except per share

 

2011

 

2011

 

2010

 

2010

 

2010

 
                                 

Performance

                               
                                 

Net income

$

322,358

   

206,273

   

204,442

   

192,015

   

188,749

   

Net income available to common shareholders

 

297,179

   

190,121

   

189,678

   

176,789

   

173,597

   
                                 

Per common share:

                               

 Basic earnings

$

2.43

   

1.59

   

1.59

   

1.49

   

1.47

   

 Diluted earnings

 

2.42

   

1.59

   

1.59

   

1.48

   

1.46

   

 Cash dividends

$

.70

   

.70

   

.70

   

.70

   

.70

   
                                 

Common shares outstanding:

                               

 Average - diluted (1)

 

122,796

   

119,852

   

119,503

   

119,155

   

118,878

   

 Period end (2)

 

125,622

   

120,410

   

119,774

   

119,435

   

119,161

   
                                 

Return on (annualized):

                               

 Average total assets

 

1.78

%

 

1.23

%

 

1.18

%

 

1.12

%

 

1.11

%

 

 Average common shareholders' equity

 

14.94

%

 

10.16

%

 

10.03

%

 

9.56

%

 

9.67

%

 
                                 

Taxable-equivalent net interest income

$

592,670

   

575,131

   

580,227

   

575,733

   

573,332

   
                                 

Yield on average earning assets

 

4.40

%

 

4.60

%

 

4.58

%

 

4.65

%

 

4.63

%

 

Cost of interest-bearing liabilities

 

.89

%

 

.91

%

 

.97

%

 

1.03

%

 

1.04

%

 

Net interest spread

 

3.51

%

 

3.69

%

 

3.61

%

 

3.62

%

 

3.59

%

 

Contribution of interest-free funds

 

.24

%

 

.23

%

 

.24

%

 

.25

%

 

.25

%

 

Net interest margin

 

3.75

%

 

3.92

%

 

3.85

%

 

3.87

%

 

3.84

%

 
                                 

Net charge-offs to average total

                               

 net loans (annualized)

 

.43

%

 

.58

%

 

.60

%

 

.73

%

 

.64

%

 
                                 

Net operating results (3)

                               
                                 

Net operating income

$

289,487

   

216,360

   

196,235

   

200,225

   

197,752

   

Diluted net operating earnings per common share

 

2.16

   

1.67

   

1.52

   

1.55

   

1.53

   

Return on (annualized):

                               

 Average tangible assets

 

1.69

%

 

1.36

%

 

1.20

%

 

1.24

%

 

1.23

%

 

 Average tangible common equity

 

24.40

%

 

20.16

%

 

18.43

%

 

19.58

%

 

20.36

%

 

Efficiency ratio

 

55.56

%

 

55.75

%

 

52.55

%

 

53.40

%

 

53.06

%

 
                                 
                                 
                                 
         
   

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

   

Loan quality

 

2011

 

2011

 

2010

 

2010

 

2010

   
                                 

Nonaccrual loans

$

1,258,975

   

1,211,111

   

1,239,194

   

1,099,560

   

1,090,135

   

Real estate and other foreclosed assets

 

158,873

   

218,203

   

220,049

   

192,600

   

192,631

   

 Total nonperforming assets

$

1,417,848

   

1,429,314

   

1,459,243

   

1,292,160

   

1,282,766

   
                                 

Accruing loans past due 90 days or more

$

373,197

   

264,480

   

269,593

   

214,769

   

203,081

   
                                 

Renegotiated loans

$

234,726

   

241,190

   

233,342

   

233,671

   

228,847

   
                                 

Government guaranteed loans included in totals

                               

 above:

                               

 Nonaccrual loans

$

78,732

   

69,353

   

56,787

   

38,232

   

40,271

   

 Accruing loans past due 90 days or more

 

207,135

   

214,505

   

214,111

   

194,223

   

187,682

   
                                 

Purchased impaired loans (4):

                               

 Outstanding customer balance

$

1,538,419

   

206,253

   

219,477

   

113,964

   

130,808

   

 Carrying amount

 

752,978

   

88,589

   

97,019

   

52,728

   

61,524

   
                                 

Nonaccrual loans to total net loans

 

2.15

%

 

2.32

%

 

2.38

%

 

2.16

%

 

2.13

%

 
                                 

Allowance for credit losses to:

                               

 Legacy loans

 

1.80

%

 

1.81

%

 

1.82

%

 

1.86

%

 

1.86

%

 

 Total loans

 

1.55

%

 

1.73

%

 

1.74

%

 

1.76

%

 

1.75

%

 
                                 
                                 
                                 
                                 

(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 gains and expenses which, except in the calculation of the efficiency ratio, are

       net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)  Accruing loans that were impaired at acquisition date and recorded at fair value.

   
                               

 

M&T BANK CORPORATION

                             

Condensed Consolidated Statement of Income

                             
                               
 

Three months ended

         

Six months ended

       
 

June 30

         

June 30

       

Dollars in thousands

2011

 

2010

 

Change

     

2011

 

2010

 

Change

   
                               

Interest income

$    688,253

 

684,784

 

1

%

 

$

1,355,736

 

1,361,170

 

-

%

 

Interest expense

102,051

 

117,557

 

-13

     

200,730

 

237,609

 

-16

   
                               

Net interest income

586,202

 

567,227

 

3

     

1,155,006

 

1,123,561

 

3

   
                               

Provision for credit losses

63,000

 

85,000

 

-26

     

138,000

 

190,000

 

-27

   
                               

Net interest income after

                             

  provision for credit losses

523,202

 

482,227

 

8

     

1,017,006

 

933,561

 

9

   
                               

Other income

                             

    Mortgage banking revenues

42,151

 

47,084

 

-10

     

87,307

 

88,560

 

-1

   

    Service charges on deposit accounts

119,716

 

128,976

 

-7

     

229,447

 

249,271

 

-8

   

    Trust income

75,592

 

30,169

 

151

     

104,913

 

61,097

 

72

   

    Brokerage services income

14,926

 

12,788

 

17

     

29,222

 

25,894

 

13

   

    Trading account and foreign exchange gains

6,798

 

3,797

 

79

     

15,077

 

8,496

 

77

   

    Gain on bank investment securities

110,744

 

10

 

-

     

150,097

 

469

 

-

   

    Other-than-temporary impairment losses

                             

       recognized in earnings

(26,530)

 

(22,380)

 

-

     

(42,571)

 

(49,182)

 

-

   

    Equity in earnings of Bayview Lending Group LLC

(5,223)

 

(6,179)

 

-

     

(11,901)

 

(11,893)

 

-

   

    Other revenues from operations

163,482

 

79,292

 

106

     

254,485

 

158,551

 

61

   

         Total other income

501,656

 

273,557

 

83

     

816,076

 

531,263

 

54

   
                               

Other expense

                             

    Salaries and employee benefits

300,178

 

245,861

 

22

     

566,268

 

509,907

 

11

   

    Equipment and net occupancy

59,670

 

55,431

 

8

     

116,333

 

110,832

 

5

   

    Printing, postage and supplies

9,723

 

8,549

 

14

     

18,925

 

17,592

 

8

   

    Amortization of core deposit and other

                             

       intangible assets

14,740

 

14,833

 

-1

     

27,054

 

31,308

 

-14

   

    FDIC assessments

26,609

 

21,608

 

23

     

45,703

 

42,956

 

6

   

    Other costs of operations

165,975

 

129,786

 

28

     

302,183

 

252,835

 

20

   

         Total other expense

576,895

 

476,068

 

21

     

1,076,466

 

965,430

 

12

   
                               

Income before income taxes

447,963

 

279,716

 

60

     

756,616

 

499,394

 

52

   
                               

Applicable income taxes

125,605

 

90,967

 

38

     

227,985

 

159,690

 

43

   
                               

Net income

$    322,358

 

188,749

 

71

%

 

$

528,631

 

339,704

 

56

%

 
                             

 

M&T BANK CORPORATION

                               

Condensed Consolidated Statement of Income, Five Quarter Trend

                           
                                 
   

Three months ended

   
   

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

   

Dollars in thousands

 

2011

 

2011

 

2010

 

2010

 

2010

   
                                 

Interest income

$

688,253

   

667,483

   

682,725

   

685,900

   

684,784

   

Interest expense

 

102,051

   

98,679

   

108,628

   

116,032

   

117,557

   
                                 

Net interest income

 

586,202

   

568,804

   

574,097

   

569,868

   

567,227

   
                                 

Provision for credit losses

 

63,000

   

75,000

   

85,000

   

93,000

   

85,000

   
                                 

Net interest income after

                               

  provision for credit losses

 

523,202

   

493,804

   

489,097

   

476,868

   

482,227

   
                                 

Other income

                               

    Mortgage banking revenues

 

42,151

   

45,156

   

35,013

   

61,052

   

47,084

   

    Service charges on deposit accounts

 

119,716

   

109,731

   

111,129

   

117,733

   

128,976

   

    Trust income

 

75,592

   

29,321

   

31,031

   

30,485

   

30,169

   

    Brokerage services income

 

14,926

   

14,296

   

11,648

   

12,127

   

12,788

   

    Trading account and foreign exchange gains

 

6,798

   

8,279

   

12,755

   

6,035

   

3,797

   

    Gain on bank investment securities

 

110,744

   

39,353

   

861

   

1,440

   

10

   

    Other-than-temporary impairment losses

                               

       recognized in earnings

 

(26,530)

   

(16,041)

   

(27,567)

   

(9,532)

   

(22,380)

   

    Equity in earnings of Bayview Lending Group LLC

 

(5,223)

   

(6,678)

   

(7,415)

   

(6,460)

   

(6,179)

   

    Other revenues from operations

 

163,482

   

91,003

   

119,483

   

77,019

   

79,292

   

         Total other income

 

501,656

   

314,420

   

286,938

   

289,899

   

273,557

   
                                 

Other expense

                               

    Salaries and employee benefits

 

300,178

   

266,090

   

243,413

   

246,389

   

245,861

   

    Equipment and net occupancy

 

59,670

   

56,663

   

50,879

   

54,353

   

55,431

   

    Printing, postage and supplies

 

9,723

   

9,202

   

8,435

   

7,820

   

8,549

   

    Amortization of core deposit and other

                               

       intangible assets

 

14,740

   

12,314

   

13,269

   

13,526

   

14,833

   

    FDIC assessments

 

26,609

   

19,094

   

18,329

   

18,039

   

21,608

   

    Other costs of operations

 

165,975

   

136,208

   

134,949

   

140,006

   

129,786

   

         Total other expense

 

576,895

   

499,571

   

469,274

   

480,133

   

476,068

   
                                 

Income before income taxes

 

447,963

   

308,653

   

306,761

   

286,634

   

279,716

   
                                 

Applicable income taxes

 

125,605

   

102,380

   

102,319

   

94,619

   

90,967

   
                                 

Net income

$

322,358

   

206,273

   

204,442

   

192,015

   

188,749

   
                               

 

M&T BANK CORPORATION

               

Condensed Consolidated Balance Sheet

               
                 
   

June 30

       

Dollars in thousands

 

2011

 

2010

 

Change

   
                 

ASSETS

               
                 

Cash and due from banks

$

1,297,335

 

1,045,886

 

24

%

 
                 

Interest-bearing deposits at banks

 

2,275,450

 

117,826

 

-

   
                 

Federal funds sold and agreements

               

 to resell securities

 

415,580

 

10,000

 

-

   
                 

Trading account assets

 

502,986

 

487,692

 

3

   
                 

Investment securities

 

6,492,265

 

8,097,572

 

-20

   
                 

Loans and leases:

               
                 

  Commercial, financial, etc.

 

15,040,892

 

13,017,598

 

16

   

  Real estate - commercial

 

24,263,726

 

20,612,905

 

18

   

  Real estate - consumer

 

6,970,921

 

5,729,126

 

22

   

  Consumer

 

12,265,690

 

11,701,657

 

5

   

    Total loans and leases, net of unearned discount

 

58,541,229

 

51,061,286

 

15

   

       Less: allowance for credit losses

 

907,589

 

894,667

 

1

   
                 

 Net loans and leases

 

57,633,640

 

50,166,619

 

15

   
                 

Goodwill

 

3,524,625

 

3,524,625

 

-

   
                 

Core deposit and other intangible assets

 

275,057

 

152,712

 

80

   
                 

Other assets

 

5,310,216

 

4,550,684

 

17

   
                 

 Total assets

$

77,727,154

 

68,153,616

 

14

%

 
                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits

$

18,598,828

 

13,960,723

 

33

%

 
                 

Interest-bearing deposits

 

40,078,834

 

33,010,520

 

21

   
                 

Deposits at Cayman Islands office

 

551,553

 

551,428

 

-

   
                 

 Total deposits

 

59,229,215

 

47,522,671

 

25

   
                 

Short-term borrowings

 

567,144

 

2,158,957

 

-74

   
                 

Accrued interest and other liabilities

 

1,557,685

 

1,114,615

 

40

   
                 

Long-term borrowings

 

7,128,916

 

9,255,529

 

-23

   
                 

 Total liabilities

 

68,482,960

 

60,051,772

 

14

   
                 

Shareholders' equity:

               
                 

  Preferred

 

860,901

 

735,350

 

17

   

  Common (1)

 

8,383,293

 

7,366,494

 

14

   
                 

    Total shareholders' equity

 

9,244,194

 

8,101,844

 

14

   
                 

 Total liabilities and shareholders' equity

$

77,727,154

 

68,153,616

 

14

%

 
                 
                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $228.8 million

 

      at June 30, 2011 and $197.2 million at June 30, 2010.

 
               

 

M&T BANK CORPORATION

                         

Condensed Consolidated Balance Sheet, Five Quarter Trend

                         
       
   

June 30,

 

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Dollars in thousands

 

2011

 

2011

   

2010

   

2010

   

2010

 
                               

ASSETS

                             
                               

Cash and due from banks

$

1,297,335

   

972,005

   

908,755

   

1,070,625

   

1,045,886

 
                               

Interest-bearing deposits at banks

 

2,275,450

   

100,101

   

101,222

   

401,624

   

117,826

 
                               

Federal funds sold and agreements

                             

 to resell securities

 

415,580

   

10,300

   

25,000

   

443,700

   

10,000

 
                               

Trading account assets

 

502,986

   

413,737

   

523,834

   

536,702

   

487,692

 
                               

Investment securities

 

6,492,265

   

6,507,165

   

7,150,540

   

7,662,715

   

8,097,572

 
                               

Loans and leases:

                             
                               

  Commercial, financial, etc.

 

15,040,892

   

13,826,299

   

13,390,610

   

12,788,136

   

13,017,598

 

  Real estate - commercial

 

24,263,726

   

20,891,615

   

21,183,161

   

20,580,450

   

20,612,905

 

  Real estate - consumer

 

6,970,921

   

6,154,960

   

5,928,056

   

5,754,432

   

5,729,126

 

  Consumer

 

12,265,690

   

11,245,807

   

11,488,555

   

11,668,540

   

11,701,657

 

    Total loans and leases, net of unearned discount

 

58,541,229

   

52,118,681

   

51,990,382

   

50,791,558

   

51,061,286

 

       Less: allowance for credit losses

 

907,589

   

903,703

   

902,941

   

894,720

   

894,667

 
                               

 Net loans and leases

 

57,633,640

   

51,214,978

   

51,087,441

   

49,896,838

   

50,166,619

 
                               

Goodwill

 

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

 
                               

Core deposit and other intangible assets

 

275,057

   

113,603

   

125,917

   

139,186

   

152,712

 
                               

Other assets

 

5,310,216

   

5,024,694

   

4,573,929

   

4,570,822

   

4,550,684

 
                               

 Total assets

$

77,727,154

   

67,881,208

   

68,021,263

   

68,246,837

   

68,153,616

 
                               
                               

LIABILITIES AND SHAREHOLDERS' EQUITY

                             
                               

Noninterest-bearing deposits

$

18,598,828

   

15,219,562

   

14,557,568

   

14,665,603

   

13,960,723

 
                               

Interest-bearing deposits

 

40,078,834

   

34,264,867

   

33,641,800

   

33,335,104

   

33,010,520

 
                               

Deposits at Cayman Islands office

 

551,553

   

1,063,670

   

1,605,916

   

653,916

   

551,428

 
                               

 Total deposits

 

59,229,215

   

50,548,099

   

49,805,284

   

48,654,623

   

47,522,671

 
                               

Short-term borrowings

 

567,144

   

504,676

   

947,432

   

1,211,683

   

2,158,957

 
                               

Accrued interest and other liabilities

 

1,557,685

   

1,015,495

   

1,070,701

   

1,157,250

   

1,114,615

 
                               

Long-term borrowings

 

7,128,916

   

7,305,420

   

7,840,151

   

8,991,508

   

9,255,529

 
                               

 Total liabilities

 

68,482,960

   

59,373,690

   

59,663,568

   

60,015,064

   

60,051,772

 
                               

Shareholders' equity:

                             
                               

  Preferred

 

860,901

   

743,385

   

740,657

   

737,979

   

735,350

 

  Common (1)

 

8,383,293

   

7,764,133

   

7,617,038

   

7,493,794

   

7,366,494

 
                               

    Total shareholders' equity

 

9,244,194

   

8,507,518

   

8,357,695

   

8,231,773

   

8,101,844

 
                               

 Total liabilities and shareholders' equity

$

77,727,154

   

67,881,208

   

68,021,263

   

68,246,837

   

68,153,616

 
                               
                               

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $228.8 million at June 30, 2011, $197.5 million at

 

      March 31, 2011, $205.2 million at December 31, 2010, $192.6 million at September 30, 2010 and $197.2 million at June 30, 2010.

 
                             

 

M&T BANK CORPORATION

                               

Condensed Consolidated Average Balance Sheet

                               

and Annualized Taxable-equivalent Rates 

                               
                                                               
   

Three months ended

 

Change in balance

   

Six months ended

       
   

June 30,

 

June 30,

 

March 31,

 

June 30, 2011 from

   

June 30

       

Dollars in millions

 

2011

 

2010

 

2011

 

June 30,

 

March 31,

   

2011

 

2010

 

Change in

   
   

Balance

 

Rate

 

Balance

 

Rate

 

Balance

 

Rate

 

2010

 

2011

   

Balance

 

Rate

 

Balance

 

Rate

 

balance

   

ASSETS

                                                             
                                                               

Interest-bearing deposits at banks

$

804

 

.24

%

81

 

.02

%

115

 

.13

%

894

%

 

597

%

 

$

462

 

.22

%

104

 

.02

%

345

%

 
                                                               

Federal funds sold and agreements

                                                             

 to resell securities

 

622

 

.09

 

10

 

.41

 

15

 

.53

 

-

   

-

     

320

 

.10

 

17

 

.28

 

-

   
                                                               

Trading account assets

 

101

 

1.32

 

66

 

.96

 

110

 

1.61

 

51

   

-8

     

105

 

1.47

 

63

 

.88

 

66

   
                                                               

Investment securities

 

6,394

 

4.03

 

8,376

 

4.27

 

7,219

 

4.17

 

-24

   

-11

     

6,805

 

4.11

 

8,274

 

4.35

 

-18

   
                                                               

Loans and leases, net of unearned discount

                                                             

 Commercial, financial, etc.

 

14,623

 

3.89

 

13,096

 

4.03

 

13,573

 

3.93

 

12

   

8

     

14,101

 

3.91

 

13,251

 

3.95

 

6

   

 Real estate - commercial

 

22,471

 

4.59

 

20,759

 

4.64

 

21,003

 

4.71

 

8

   

7

     

21,741

 

4.65

 

20,813

 

4.56

 

4

   

 Real estate - consumer

 

6,559

 

5.00

 

5,653

 

5.35

 

6,054

 

5.06

 

16

   

8

     

6,308

 

5.03

 

5,697

 

5.33

 

11

   

 Consumer

 

11,808

 

5.03

 

11,770

 

5.24

 

11,342

 

5.13

 

-

   

4

     

11,576

 

5.08

 

11,850

 

5.25

 

-2

   

    Total loans and leases, net

 

55,461

 

4.55

 

51,278

 

4.71

 

51,972

 

4.67

 

8

   

7

     

53,726

 

4.61

 

51,611

 

4.67

 

4

   
                                                               

 Total earning assets

 

63,382

 

4.40

 

59,811

 

4.63

 

59,431

 

4.60

 

6

   

7

     

61,418

 

4.49

 

60,069

 

4.61

 

2

   
                                                               

Goodwill

 

3,525

     

3,525

     

3,525

     

-

   

-

     

3,525

     

3,525

     

-

   
                                                               

Core deposit and other intangible assets

 

198

     

160

     

119

     

24

   

66

     

159

     

168

     

-5

   
                                                               

Other assets

 

5,349

     

4,838

     

4,970

     

11

   

8

     

5,160

     

4,845

     

7

   
                                                               

 Total assets

$

72,454

     

68,334

     

68,045

     

6

%

 

6

%

 

$

70,262

     

68,607

     

2

%

 
                                                               
                                                               
                                                               

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                             
                                                               

Interest-bearing deposits

                                                             

 NOW accounts

$

742

 

.15

 

619

 

.14

 

628

 

.13

 

20

%

 

18

%

 

$

685

 

.14

 

602

 

.14

 

14

%

 

 Savings deposits

 

30,043

 

.28

 

25,942

 

.33

 

27,669

 

.28

 

16

   

9

     

28,863

 

.28

 

25,508

 

.33

 

13

   

 Time deposits

 

6,657

 

1.16

 

6,789

 

1.55

 

5,700

 

1.36

 

-2

   

17

     

6,181

 

1.25

 

6,998

 

1.60

 

-12

   

 Deposits at Cayman Islands office

 

820

 

.09

 

972

 

.16

 

1,182

 

.14

 

-16

   

-31

     

999

 

.12

 

1,104

 

.13

 

-9

   

    Total interest-bearing deposits

 

38,262

 

.42

 

34,322

 

.56

 

35,179

 

.45

 

11

   

9

     

36,728

 

.44

 

34,212

 

.58

 

7

   
                                                               

Short-term borrowings

 

707

 

.08

 

1,763

 

.17

 

1,344

 

.15

 

-60

   

-47

     

1,024

 

.13

 

2,063

 

.16

 

-50

   

Long-term borrowings

 

7,076

 

3.48

 

9,454

 

2.91

 

7,368

 

3.26

 

-25

   

-4

     

7,222

 

3.37

 

9,805

 

2.82

 

-26

   
                                                               

Total interest-bearing liabilities

 

46,045

 

.89

 

45,539

 

1.04

 

43,891

 

.91

 

1

   

5

     

44,974

 

.90

 

46,080

 

1.04

 

-2

   
                                                               

Noninterest-bearing deposits

 

16,195

     

13,610

     

14,501

     

19

   

12

     

15,353

     

13,453

     

14

   
                                                               

Other liabilities

 

1,402

     

1,149

     

1,202

     

22

   

17

     

1,302

     

1,121

     

16

   
                                                               

 Total liabilities

 

63,642

     

60,298

     

59,594

     

6

   

7

     

61,629

     

60,654

     

2

   
                                                               

Shareholders' equity

 

8,812

     

8,036

     

8,451

     

10

   

4

     

8,633

     

7,953

     

9

   
                                                               

 Total liabilities and shareholders' equity

$

72,454

     

68,334

     

68,045

     

6

%

 

6

%

 

$

70,262

     

68,607

     

2

%

 
                                                               
                                                               

Net interest spread

     

3.51

     

3.59

     

3.69

                   

3.59

     

3.57

       

Contribution of interest-free funds

     

.24

     

.25

     

.23

                   

.24

     

.24

       

Net interest margin

     

3.75

%

   

3.84

%

   

3.92

%

                 

3.83

%

   

3.81

%

     
                                                             

 
 

M&T BANK CORPORATION

                 
 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

           
                     
                     
     

Three months ended

 

Six months ended

 
     

June 30

 

June 30

 
     

2011

 

2010

 

2011

 

2010

 
 

Income statement data

                 
 

In thousands, except per share

                 
 

Net income

                 
 

Net income

$

322,358

 

188,749

$

528,631

 

339,704

 
 

Amortization of core deposit and other

                 
 

 intangible assets (1)

 

8,974

 

9,003

 

16,452

 

19,001

 
 

Merger-related gains (1)

 

(64,930)

 

-

 

(64,930)

 

-

 
 

Merger-related expenses (1)

 

23,085

 

-

 

25,694

 

-

 
 

 Net operating income

$

289,487

 

197,752

$

505,847

 

358,705

 
 

Earnings per common share

                 
 

Diluted earnings per common share

$

2.42

 

1.46

$

4.02

 

2.61

 
 

Amortization of core deposit and other

                 
 

 intangible assets (1)

 

.07

 

.07

 

.13

 

.16

 
 

Merger-related gains (1)

 

(.52)

 

-

 

(.53)

 

-

 
 

Merger-related expenses (1)

 

.19

 

-

 

.21

 

-

 
 

 Diluted net operating earnings per common share

$

2.16

 

1.53

$

3.83

 

2.77

 
 

Other expense

                 
 

Other expense

$

576,895

 

476,068

$

1,076,466

 

965,430

 
 

Amortization of core deposit and other

                 
 

 intangible assets

 

(14,740)

 

(14,833)

 

(27,054)

 

(31,308)

 
 

Merger-related expenses

 

(36,996)

 

-

 

(41,291)

 

-

 
 

 Noninterest operating expense

$

525,159

 

461,235

$

1,008,121

 

934,122

 
 

Merger-related expenses

                 
 

Salaries and employee benefits

$

15,305

 

-

$

15,312

 

-

 
 

Equipment and net occupancy

 

25

 

-

 

104

 

-

 
 

Printing, postage and supplies

 

318

 

-

 

465

 

-

 
 

Other costs of operations

 

21,348

 

-

 

25,410

 

-

 
 

 Total

$

36,996

 

-

$

41,291

 

-

 
                     
                     
 

Balance sheet data

                 
 

In millions

                 
 

Average assets

                 
 

Average assets

$

72,454

 

68,334

$

70,262

 

68,607

 
 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 
 

Core deposit and other intangible assets

 

(198)

 

(160)

 

(159)

 

(168)

 
 

Deferred taxes

 

46

 

30

 

34

 

32

 
 

 Average tangible assets

$

68,777

 

64,679

$

66,612

 

64,946

 
 

Average common equity

                 
 

Average total equity

$

8,812

 

8,036

$

8,633

 

7,953

 
 

Preferred stock

 

(716)

 

(734)

 

(730)

 

(733)

 
 

 Average common equity

 

8,096

 

7,302

 

7,903

 

7,220

 
 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 
 

Core deposit and other intangible assets

 

(198)

 

(160)

 

(159)

 

(168)

 
 

Deferred taxes

 

46

 

30

 

34

 

32

 
 

 Average tangible common equity

$

4,419

 

3,647

$

4,253

 

3,559

 
                     
 

At end of quarter

                 
 

Total assets

                 
 

Total assets

$

77,727

 

68,154

$

77,727

 

68,154

 
 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 
 

Core deposit and other intangible assets

 

(275)

 

(152)

 

(275)

 

(152)

 
 

Deferred taxes

 

68

 

28

 

68

 

28

 
 

 Total tangible assets

$

73,995

 

64,505

$

73,995

 

64,505

 
 

Total common equity

                 
 

Total equity

$

9,244

 

8,102

$

9,244

 

8,102

 
 

Preferred stock

 

(861)

 

(735)

 

(861)

 

(735)

 
 

Undeclared dividends - cumulative preferred stock

 

(3)

 

(7)

 

(3)

 

(7)

 
 

 Common equity, net of undeclared cumulative

                 
 

   preferred dividends

 

8,380

 

7,360

 

8,380

 

7,360

 
 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 
 

Core deposit and other intangible assets

 

(275)

 

(152)

 

(275)

 

(152)

 
 

Deferred taxes

 

68

 

28

 

68

 

28

 
 

 Total tangible common equity

$

4,648

 

3,711

$

4,648

 

3,711

 
                     
                     

 (1) After any related tax effect.  

 
                   

 

M&T BANK CORPORATION

                     

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

           
                       
                       
                       
   

Three months ended

 
   

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 
   

2011

 

2011

 

2010

 

2010

 

2010

 

Income statement data

                     

In thousands, except per share

                     

Net income

                     

Net income

$

322,358

 

206,273

 

204,442

 

192,015

 

188,749

 

Amortization of core deposit and other

                     

 intangible assets (1)

 

8,974

 

7,478

 

8,054

 

8,210

 

9,003

 

Merger-related gain (1)

 

(64,930)

 

-

 

(16,730)

 

-

 

-

 

Merger-related expenses (1)

 

23,085

 

2,609

 

469

 

-

 

-

 

 Net operating income

$

289,487

 

216,360

 

196,235

 

200,225

 

197,752

 

Earnings per common share

                     

Diluted earnings per common share

$

2.42

 

1.59

 

1.59

 

1.48

 

1.46

 

Amortization of core deposit and other

                     

 intangible assets (1)

 

.07

 

.06

 

.07

 

.07

 

.07

 

Merger-related gain (1)

 

(.52)

 

-

 

(.14)

 

-

 

-

 

Merger-related expenses (1)

 

.19

 

.02

 

-

 

-

 

-

 

 Diluted net operating earnings per common share

$

2.16

 

1.67

 

1.52

 

1.55

 

1.53

 

Other expense

                     

Other expense

$

576,895

 

499,571

 

469,274

 

480,133

 

476,068

 

Amortization of core deposit and other

                     

 intangible assets

 

(14,740)

 

(12,314)

 

(13,269)

 

(13,526)

 

(14,833)

 

Merger-related expenses

 

(36,996)

 

(4,295)

 

(771)

 

-

 

-

 

 Noninterest operating expense

$

525,159

 

482,962

 

455,234

 

466,607

 

461,235

 

Merger-related expenses

                     

Salaries and employee benefits

$

15,305

 

7

 

7

 

-

 

-

 

Equipment and net occupancy

 

25

 

79

 

44

 

-

 

-

 

Printing, postage and supplies

 

318

 

147

 

74

 

-

 

-

 

Other costs of operations

 

21,348

 

4,062

 

646

 

-

 

-

 

 Total

$

36,996

 

4,295

 

771

 

-

 

-

 
                       
                       

Balance sheet data

                     

In millions

                     

Average assets

                     

Average assets

$

72,454

 

68,045

 

68,502

 

67,811

 

68,334

 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

 

(198)

 

(119)

 

(132)

 

(146)

 

(160)

 

Deferred taxes

 

46

 

22

 

24

 

27

 

30

 

 Average tangible assets

$

68,777

 

64,423

 

64,869

 

64,167

 

64,679

 

Average common equity

                     

Average total equity

$

8,812

 

8,451

 

8,322

 

8,181

 

8,036

 

Preferred stock

 

(716)

 

(743)

 

(740)

 

(737)

 

(734)

 

 Average common equity

 

8,096

 

7,708

 

7,582

 

7,444

 

7,302

 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

 

(198)

 

(119)

 

(132)

 

(146)

 

(160)

 

Deferred taxes

 

46

 

22

 

24

 

27

 

30

 

 Average tangible common equity

$

4,419

 

4,086

 

3,949

 

3,800

 

3,647

 
                       

At end of quarter

                     

Total assets

                     

Total assets

$

77,727

 

67,881

 

68,021

 

68,247

 

68,154

 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

 

(275)

 

(113)

 

(126)

 

(139)

 

(152)

 

Deferred taxes

 

68

 

20

 

23

 

26

 

28

 

 Total tangible assets

$

73,995

 

64,263

 

64,393

 

64,609

 

64,505

 

Total common equity

                     

Total equity

$

9,244

 

8,508

 

8,358

 

8,232

 

8,102

 

Preferred stock

 

(861)

 

(743)

 

(741)

 

(738)

 

(735)

 

Undeclared dividends - cumulative preferred stock

 

(3)

 

(7)

 

(6)

 

(6)

 

(7)

 

 Common equity, net of undeclared cumulative

                     

   preferred dividends

 

8,380

 

7,758

 

7,611

 

7,488

 

7,360

 

Goodwill

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

 

(275)

 

(113)

 

(126)

 

(139)

 

(152)

 

Deferred taxes

 

68

 

20

 

23

 

26

 

28

 

 Total tangible common equity

$

4,648

 

4,140

 

3,983

 

3,850

 

3,711

 
                       
                       

(1) After any related tax effect.