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

BUFFALO, N.Y., April 16, 2012 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2012.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2012 were $1.50, compared with $1.59 in the year-earlier quarter. GAAP-basis net income in each of the initial quarters of 2012 and 2011 was $206 million. GAAP-basis net income for the first three months of 2012 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.06% and 9.04%, respectively, compared with 1.23% and 10.16%, respectively, in the similar 2011 period.

The recent quarter's earnings as compared with the first quarter of 2011 reflect higher net interest income, lower credit costs, and higher trust income and residential mortgage banking revenues. While not significant in the recent quarter, last year's earnings were lifted by $39 million of realized gains from the sale of investment securities ($24 million after-tax effect, or $.20 of diluted earnings per common share), as M&T repositioned its balance sheet in anticipation of the acquisition of Wilmington Trust Corporation ("Wilmington Trust").

Commenting on the recent quarter's performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, said, "M&T's first quarter results reflect our continued progress with the integration of Wilmington Trust, lower credit costs and improvement in several revenue categories, including net interest income, mortgage banking revenues, trust income and fees for providing deposit services. Additionally, average loans grew an impressive 10% on an annualized basis as compared with the fourth quarter of 2011. The Tier 1 common ratio increased 18 basis points from the 2011 year-end to 7.04% at the end of the first quarter. Our strong first quarter positions us well for 2012."

Diluted earnings per common share and GAAP-basis net income in last year's fourth quarter were $1.04 and $148 million, respectively. GAAP-basis net income in that quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was .75% and 6.12%, respectively. Results for the final 2011 quarter reflected several noteworthy items, including: a $79 million (pre-tax effect) other-than-temporary impairment charge related to M&T's 20% investment in Bayview Lending Group LLC ("BLG"); $55 million of income in full settlement of a lawsuit arising from a 2007 investment in collateralized debt obligations; and a $30 million tax-deductible cash contribution to The M&T Charitable Foundation. The after-tax impact of those three items reduced net income in the fourth quarter of 2011 by $33 million, or $.26 of diluted earnings per common share.

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 $1.59 in the recent quarter, compared with $1.67 and $1.20 in the first and fourth quarters of 2011, respectively. Net operating income for the first three months of 2012 totaled $218 million, compared with $216 million and $168 million in the quarters ended March 31, 2011 and December 31, 2011, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.18% and 16.79%, respectively, in the first quarter of 2012, compared with 1.36% and 20.16% in the year-earlier quarter and .89% and 12.36% in the final 2011 quarter.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income increased an annualized 2% to $627 million in the recent quarter from $625 million in the fourth quarter of 2011. That improvement reflects a nine basis point (hundredths of one percent) widening of the net interest margin to 3.69% from 3.60% in the immediately preceding quarter. The wider net interest margin reflects the impact of a $1.41 billion increase in average loans outstanding in 2012's initial quarter, which largely offset a decline in lower yielding balances held at the Federal Reserve Bank of New York. Taxable-equivalent net interest income increased 9% in the first quarter of 2012 from $575 million in the year-earlier quarter. The improvement in such income resulted from an $8.96 billion increase in average earning assets, partially offset by a 23 basis point narrowing of the net interest margin, both of which were attributable to the impact of the Wilmington Trust acquisition on May 16, 2011.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $49 million in the first quarter of 2012, improved from $75 million and $74 million in the first and fourth quarters of 2011, respectively. Net charge-offs of loans during the recent quarter were $48 million, down from $74 million in each of the first and fourth quarters of 2011. Net charge-offs expressed as an annualized percentage of average loans outstanding improved significantly to .32% in the first three months of 2012 from .58% and .50% in the first and fourth quarters of 2011, respectively.

Loans classified as nonaccrual totaled $1.07 billion, or 1.75% of total loans outstanding at March 31, 2012, improved from $1.08 billion or 2.08% a year earlier and $1.10 billion or 1.83% at December 31, 2011.

Assets taken in foreclosure of defaulted loans were $140 million at March 31, 2012, down from $218 million and $157 million at March 31, 2011 and December 31, 2011, respectively. The decline in such assets at the two most recent quarter-ends as compared with March 31, 2011 resulted predominantly from the sale during the second quarter of 2011 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 March 31, 2012 and December 31, 2011 were $40 million and $48 million, respectively, of assets related to the Wilmington Trust acquisition.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of determining the allowance for credit losses. As a result of those analyses, the allowance totaled $909 million at March 31, 2012, compared with $904 million at March 31, 2011 and $908 million at December 31, 2011. The allowance expressed as a percentage of outstanding loans was 1.49% at March 31, 2012, compared with 1.73% and 1.51% at March 31, 2011 and December 31, 2011, respectively.

Noninterest Income and Expense. Noninterest income totaled $377 million in the first quarter of 2012, compared with $314 million and $398 million in the first and fourth quarters of 2011, respectively. Reflected in those amounts were net losses on investment securities of $11 million in the initial 2012 quarter, compared with net gains of $23 million in the first quarter of 2011 and net losses of $25 million in the fourth quarter of 2011. The net losses on investment securities during the recent quarter and the fourth quarter of 2011 were predominantly due to other-than-temporary impairment charges related to certain of M&T's privately issued collateralized mortgage obligations. Partially offsetting the previously noted realized securities gains in the initial 2011 quarter, which totaled $39 million, were $16 million of other-than-temporary impairment charges related to certain of M&T's holdings of privately issued collateralized mortgage obligations.

Excluding gains and losses from investment securities in all periods and the $55 million of income resulting from the litigation settlement in 2011's final quarter, noninterest income totaled $388 million in the recently completed quarter, up from $291 million in the first quarter of 2011 and $368 million in the final 2011 quarter. Contributing to the rise from the year-earlier quarter were higher trust income, predominantly related to the Wilmington Trust acquisition, and mortgage banking revenues. The improvement in such noninterest income as compared with the final 2011 quarter was largely due to higher residential mortgage banking revenues. Contributing to those improved revenues were higher gains on residential real estate loans and commitments to originate loans to be sold. M&T continued its program of retaining residential real estate loans on its balance sheet, effectively reducing mortgage banking revenues by approximately $21 million that would have been recognized had the loans been held for sale. That compares with approximately $11 million of similar impact in last year's final quarter.

Noninterest expense in the first quarter of 2012 totaled $640 million, compared with $500 million and $740 million in the first and fourth quarters of 2011, respectively. 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 $620 million in the recently completed quarter, $483 million in the first quarter of 2011 and $706 million in the final 2011 quarter. The most significant factor for the higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was the impact of the operations obtained in the Wilmington Trust acquisition. The decrease in expenses from the fourth quarter of 2011 was largely the result of the previously noted fourth quarter charges related to the other-than-temporary impairment of M&T's investment in BLG and the $30 million charitable contribution, partially offset by recent quarter seasonally higher costs for stock-based compensation, unemployment insurance, and payroll-related taxes and employer contributions for retirement savings plan benefits related to incentive compensation payments.

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 61.1% in the first quarter of 2012, compared with 55.8% in the year-earlier quarter and 67.4% in the fourth quarter of 2011.

Balance Sheet. M&T had total assets of $79.2 billion at March 31, 2012, up 17% from $67.9 billion a year earlier. Loans and leases, net of unearned discount, increased $8.8 billion or 17% to $60.9 billion at the recent quarter-end from $52.1 billion at March 31, 2011, and were $826 million higher than $60.1 billion at December 31, 2011. Total deposits rose 21% to $60.9 billion at March 31, 2012 from $50.5 billion a year earlier.

Total shareholders' equity increased 11% to $9.4 billion at March 31, 2012 from $8.5 billion at March 31, 2011, representing 11.91% and 12.53%, respectively, of total assets. Common shareholders' equity was $8.6 billion, or $67.64 per share at March 31, 2012, up from $7.8 billion, or $64.43 per share, a year earlier. Tangible equity per common share rose 13% to $38.89 at March 31, 2012 from $34.38 a year earlier. Common shareholders' equity per share and tangible equity per common share were $66.82 and $37.79, respectively, at December 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 6.51% at March 31, 2012, improved from 6.44% and 6.40% at March 31, 2011 and December 31, 2011, respectively. M&T's estimated Tier 1 common ratio was 7.04% at March 31, 2012 compared with 6.78% and 6.86% at March 31, 2011 and December 31, 2011, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 10:30 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 #70075727. The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm. A replay of the call will be available until Wednesday, April 18, 2012 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #70075727. The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.

M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia. 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; the impact of changes in market values on trust-related revenues; 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

       

Amounts in thousands,

 

March 31

       

except per share

 

2012

 

2011

 

Change

   
                 

Performance

               
                 

Net income

$

206,463

 

206,273

 

-

%

 

Net income available to common shareholders

 

188,241

 

190,121

 

-1

%

 
                 

Per common share:

               

 Basic earnings

$

1.50

 

1.59

 

-6

%

 

 Diluted earnings

 

1.50

 

1.59

 

-6

%

 

 Cash dividends

$

.70

 

.70

 

-

%

 
                 

Common shares outstanding:

               

 Average - diluted (1)

 

125,616

 

119,852

 

5

%

 

 Period end (2)

 

126,534

 

120,410

 

5

%

 
                 

Return on (annualized):

               

 Average total assets

 

1.06

%

1.23

%

     

 Average common shareholders' equity

 

9.04

%

10.16

%

     
                 

Taxable-equivalent net interest income

$

627,094

 

575,131

 

9

%

 
                 

Yield on average earning assets

 

4.24

%

4.60

%

     

Cost of interest-bearing liabilities

 

.80

%

.91

%

     

Net interest spread

 

3.44

%

3.69

%

     

Contribution of interest-free funds

 

.25

%

.23

%

     

Net interest margin

 

3.69

%

3.92

%

     
                 

Net charge-offs to average total

               

 net loans (annualized)

 

.32

%

.58

%

     
                 

Net operating results (3)

               
                 

Net operating income

$

218,360

 

216,360

 

1

%

 

Diluted net operating earnings per common share

 

1.59

 

1.67

 

-5

%

 

Return on (annualized):

               

 Average tangible assets

 

1.18

%

1.36

%

     

 Average tangible common equity

 

16.79

%

20.16

%

     

Efficiency ratio

 

61.09

%

55.75

%

     
                 
                 
                 
   

At  March 31

       

Loan quality

 

2012

 

2011

 

Change

 
                 

Nonaccrual loans

$

1,065,229

 

1,081,920

 

-2

%

 

Real estate and other foreclosed assets

 

140,297

 

218,203

 

-36

%

 

 Total nonperforming assets

$

1,205,526

 

1,300,123

 

-7

%

 
                 

Accruing loans past due 90 days or more (4)

$

273,081

 

243,990

 

12

%

 
                 

Government guaranteed loans included in totals

               

 above:

               

 Nonaccrual loans

$

44,717

 

36,300

 

23

%

 

 Accruing loans past due 90 days or more

 

252,622

 

209,787

 

20

%

 
                 

Renegotiated loans

$

213,024

 

241,190

 

-12

%

 
                 

Acquired accruing loans past due 90

               

 days or more (5)

$

165,163

 

115,554

 

43

%

 
                 

Purchased impaired loans (6):

               

 Outstanding customer balance

$

1,158,829

 

206,253

       

 Carrying amount

 

604,779

 

88,589

       
                 

Nonaccrual loans to total net loans

 

1.75

%

2.08

%

     
                 

Allowance for credit losses to total loans

 

1.49

%

1.73

%

     
                 
                 

(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 on page 18.

 

(4)  Excludes acquired loans.

 

(5)  Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

 

(6)  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,

     

March 31,

 

December 31,

   

September 30,

 

June 30,

 

March 31,

 

except per share

     

2012

 

2011

   

2011

 

2011

 

2011

 
                                     

Performance

                                   
                                     

Net income

   

$

206,463

   

147,740

   

183,108

   

322,358

   

206,273

   

Net income available to common shareholders

     

188,241

   

129,804

   

164,671

   

297,179

   

190,121

   
                                     

Per common share:

                                   

 Basic earnings

   

$

1.50

   

1.04

   

1.32

   

2.43

   

1.59

   

 Diluted earnings

     

1.50

   

1.04

   

1.32

   

2.42

   

1.59

   

 Cash dividends

   

$

.70

   

.70

   

.70

   

.70

   

.70

   
                                     

Common shares outstanding:

                                   

 Average - diluted (1)

     

125,616

   

124,736

   

124,860

   

122,796

   

119,852

   

 Period end (2)

     

126,534

   

125,752

   

125,678

   

125,622

   

120,410

   
                                     

Return on (annualized):

                                   

 Average total assets

     

1.06

%

 

.75

%

 

.94

%

 

1.78

%

 

1.23

%

 

 Average common shareholders' equity

     

9.04

%

 

6.12

%

 

7.84

%

 

14.94

%

 

10.16

%

 
                                     

Taxable-equivalent net interest income

   

$

627,094

   

624,566

   

623,265

   

592,670

   

575,131

   
                                     

Yield on average earning assets

     

4.24

%

 

4.17

%

 

4.29

%

 

4.40

%

 

4.60

%

 

Cost of interest-bearing liabilities

     

.80

%

 

.82

%

 

.86

%

 

.89

%

 

.91

%

 

Net interest spread

     

3.44

%

 

3.35

%

 

3.43

%

 

3.51

%

 

3.69

%

 

Contribution of interest-free funds

     

.25

%

 

.25

%

 

.25

%

 

.24

%

 

.23

%

 

Net interest margin

     

3.69

%

 

3.60

%

 

3.68

%

 

3.75

%

 

3.92

%

 
                                     

Net charge-offs to average total

                                   

 net loans (annualized)

     

.32

%

 

.50

%

 

.39

%

 

.43

%

 

.58

%

 
                                     

Net operating results (3)

                                   
                                     

Net operating income

   

$

218,360

   

168,410

   

209,996

   

289,487

   

216,360

   

Diluted net operating earnings per common share

     

1.59

   

1.20

   

1.53

   

2.16

   

1.67

   

Return on (annualized):

                                   

 Average tangible assets

     

1.18

%

 

.89

%

 

1.14

%

 

1.69

%

 

1.36

%

 

 Average tangible common equity

     

16.79

%

 

12.36

%

 

16.07

%

 

24.24

%

 

20.16

%

 

Efficiency ratio

     

61.09

%

 

67.38

%

 

61.79

%

 

55.56

%

 

55.75

%

 
                                     
                                     
                                     
             
       

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Loan quality

     

2012

 

2011

 

2011

 

2011

 

2011

 
                                     

Nonaccrual loans

   

$

1,065,229

   

1,097,581

   

1,113,788

   

1,117,584

   

1,081,920

   

Real estate and other foreclosed assets

     

140,297

   

156,592

   

149,868

   

158,873

   

218,203

   

 Total nonperforming assets

   

$

1,205,526

   

1,254,173

   

1,263,656

   

1,276,457

   

1,300,123

   
                                     

Accruing loans past due 90 days or more (4)

   

$

273,081

   

287,876

   

239,970

   

239,527

   

243,990

   
                                     

Government guaranteed loans included in totals

                                   

 above:

                                   

 Nonaccrual loans

   

$

44,717

   

40,529

   

32,937

   

42,337

   

36,300

   

 Accruing loans past due 90 days or more

     

252,622

   

252,503

   

210,407

   

205,644

   

209,787

   
                                     

Renegotiated loans

   

$

213,024

   

214,379

   

223,233

   

234,726

   

241,190

   
                                     

Acquired accruing loans past due 90

                                   

 days or more (5)

   

$

165,163

   

163,738

   

211,958

   

228,304

   

115,554

   
                                     

Purchased impaired loans (6):

                                   

 Outstanding customer balance

   

$

1,158,829

   

1,267,762

   

1,393,777

   

1,473,237

   

206,253

   

 Carrying amount

     

604,779

   

653,362

   

703,632

   

752,978

   

88,589

   
                                     

Nonaccrual loans to total net loans

     

1.75

%

 

1.83

%

 

1.91

%

 

1.91

%

 

2.08

%

 
                                     

Allowance for credit losses to total loans

     

1.49

%

 

1.51

%

 

1.56

%

 

1.55

%

 

1.73

%

 
                                     
                                     

(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 on page 18.

 

(4)  Excludes acquired loans.

 

(5)  Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

 

(6)  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

       
   

March 31

       

Dollars in thousands

 

2012

 

2011

 

Change

   
                 

Interest income

$

714,095

 

667,483

 

7

%

 
                 

Interest expense

 

93,706

 

98,679

 

-5

   
                 

Net interest income

 

620,389

 

568,804

 

9

   
                 

Provision for credit losses

 

49,000

 

75,000

 

-35

   
                 

Net interest income after

               

  provision for credit losses

 

571,389

 

493,804

 

16

   
                 

Other income

               

    Mortgage banking revenues

 

56,192

 

45,156

 

24

   

    Service charges on deposit accounts

 

108,889

 

109,731

 

-1

   

    Trust income

 

116,953

 

29,321

 

299

   

    Brokerage services income

 

13,901

 

14,296

 

-3

   

    Trading account and foreign exchange gains

 

10,571

 

8,279

 

28

   

    Gain on bank investment securities

 

45

 

39,353

 

-

   

    Other-than-temporary impairment losses

               

       recognized in earnings

 

(11,486)

 

(16,041)

 

-

   

    Equity in earnings of Bayview Lending Group LLC

 

(4,752)

 

(6,678)

 

-

   

    Other revenues from operations

 

86,410

 

91,003

 

-5

   

         Total other income

 

376,723

 

314,420

 

20

   
                 

Other expense

               

    Salaries and employee benefits

 

346,098

 

266,090

 

30

   

    Equipment and net occupancy

 

65,043

 

56,663

 

15

   

    Printing, postage and supplies

 

11,872

 

9,202

 

29

   

    Amortization of core deposit and other

               

       intangible assets

 

16,774

 

12,314

 

36

   

    FDIC assessments

 

28,949

 

19,094

 

52

   

    Other costs of operations

 

170,959

 

136,208

 

26

   

         Total other expense

 

639,695

 

499,571

 

28

   
                 

Income before income taxes

 

308,417

 

308,653

 

-

   
                 

Applicable income taxes

 

101,954

 

102,380

 

-

   
                 

Net income

$

206,463

 

206,273

 

-

%

 
               

 
                               

M&T BANK CORPORATION

                             

Condensed Consolidated Statement of Income, Five Quarter Trend

 
                               
   

Three months ended

 
   

March 31,

 

December 31,

   

September 30,

   

June 30,

   

March 31,

 

Dollars in thousands

 

2012

 

2011

   

2011

   

2011

   

2011

 
                               

Interest income

$

714,095

   

716,000

   

720,351

   

688,253

   

667,483

 

Interest expense

 

93,706

   

97,969

   

103,632

   

102,051

   

98,679

 
                               

Net interest income

 

620,389

   

618,031

   

616,719

   

586,202

   

568,804

 
                               

Provision for credit losses

 

49,000

   

74,000

   

58,000

   

63,000

   

75,000

 
                               

Net interest income after

                             

  provision for credit losses

 

571,389

   

544,031

   

558,719

   

523,202

   

493,804

 
                               

Other income

                             

    Mortgage banking revenues

 

56,192

   

40,573

   

38,141

   

42,151

   

45,156

 

    Service charges on deposit accounts

 

108,889

   

104,071

   

121,577

   

119,716

   

109,731

 

    Trust income

 

116,953

   

113,820

   

113,652

   

75,592

   

29,321

 

    Brokerage services income

 

13,901

   

13,341

   

13,907

   

14,926

   

14,296

 

    Trading account and foreign exchange gains

 

10,571

   

7,971

   

4,176

   

6,798

   

8,279

 

    Gain on bank investment securities

 

45

   

1

   

89

   

110,744

   

39,353

 

    Other-than-temporary impairment losses

                             

       recognized in earnings

 

(11,486)

   

(24,822)

   

(9,642)

   

(26,530)

   

(16,041)

 

    Equity in earnings of Bayview Lending Group LLC

 

(4,752)

   

(5,419)

   

(6,911)

   

(5,223)

   

(6,678)

 

    Other revenues from operations

 

86,410

   

148,918

   

93,393

   

163,482

   

91,003

 

         Total other income

 

376,723

   

398,454

   

368,382

   

501,656

   

314,420

 
                               

Other expense

                             

    Salaries and employee benefits

 

346,098

   

312,528

   

325,197

   

300,178

   

266,090

 

    Equipment and net occupancy

 

65,043

   

65,080

   

68,101

   

59,670

   

56,663

 

    Printing, postage and supplies

 

11,872

   

11,399

   

10,593

   

9,723

   

9,202

 

    Amortization of core deposit and other

                             

       intangible assets

 

16,774

   

17,162

   

17,401

   

14,740

   

12,314

 

    FDIC assessments

 

28,949

   

27,826

   

26,701

   

26,609

   

19,094

 

    Other costs of operations

 

170,959

   

305,588

   

214,026

   

165,975

   

136,208

 

         Total other expense

 

639,695

   

739,583

   

662,019

   

576,895

   

499,571

 
                               

Income before income taxes

 

308,417

   

202,902

   

265,082

   

447,963

   

308,653

 
                               

Applicable income taxes

 

101,954

   

55,162

   

81,974

   

125,605

   

102,380

 
                               

Net income

$

206,463

   

147,740

   

183,108

   

322,358

   

206,273

 
                             

 
                 

M&T BANK CORPORATION

               

Condensed Consolidated Balance Sheet

               
                 
   

March 31

       

Dollars in thousands

 

2012

 

2011

 

Change

   
                 

ASSETS

               
                 

Cash and due from banks

$

1,344,092

 

972,005

 

38

%

 
                 

Interest-bearing deposits at banks

 

1,282,040

 

100,101

 

1,181

   
                 

Federal funds sold and agreements

               

 to resell securities

 

-

 

10,300

 

-100

   
                 

Trading account assets

 

517,620

 

413,737

 

25

   
                 

Investment securities

 

7,195,296

 

6,507,165

 

11

   
                 

Loans and leases:

               
                 

  Commercial, financial, etc.

 

15,938,672

 

13,826,299

 

15

   

  Real estate - commercial

 

24,486,555

 

20,891,615

 

17

   

  Real estate - consumer

 

8,696,594

 

6,154,960

 

41

   

  Consumer

 

11,799,929

 

11,245,807

 

5

   

    Total loans and leases, net of unearned discount

 

60,921,750

 

52,118,681

 

17

   

       Less: allowance for credit losses

 

909,006

 

903,703

 

1

   
                 

 Net loans and leases

 

60,012,744

 

51,214,978

 

17

   
                 

Goodwill

 

3,524,625

 

3,524,625

 

-

   
                 

Core deposit and other intangible assets

 

159,619

 

113,603

 

41

   
                 

Other assets

 

5,150,851

 

5,024,694

 

3

   
                 

 Total assets

$

79,186,887

 

67,881,208

 

17

%

 
                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits

$

20,648,970

 

15,219,562

 

36

%

 
                 

Interest-bearing deposits

 

39,868,782

 

34,264,867

 

16

   
                 

Deposits at Cayman Islands office

 

395,191

 

1,063,670

 

-63

   
                 

 Total deposits

 

60,912,943

 

50,548,099

 

21

   
                 

Short-term borrowings

 

511,981

 

504,676

 

1

   
                 

Accrued interest and other liabilities

 

1,856,749

 

1,015,495

 

83

   
                 

Long-term borrowings

 

6,476,526

 

7,305,420

 

-11

   
                 

 Total liabilities

 

69,758,199

 

59,373,690

 

17

   
                 

Shareholders' equity:

               
                 

  Preferred

 

866,489

 

743,385

 

17

   

  Common (1)

 

8,562,199

 

7,764,133

 

10

   
                 

    Total shareholders' equity

 

9,428,688

 

8,507,518

 

11

   
                 

 Total liabilities and shareholders' equity

$

79,186,887

 

67,881,208

 

17

%

 
                 
                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $331.3 million

 

      at March 31, 2012 and $197.5 million at March 31, 2011.

 
               

 
                               

M&T BANK CORPORATION

                             

Condensed Consolidated Balance Sheet, Five Quarter Trend

                             
       
   

March 31,

 

December 31,

   

September 30,

   

June 30,

   

March 31,

 

Dollars in thousands

 

2012

 

2011

   

2011

   

2011

   

2011

 
                               

ASSETS

                             
                               

Cash and due from banks

$

1,344,092

   

1,449,547

   

1,349,057

   

1,297,335

   

972,005

 
                               

Interest-bearing deposits at banks

 

1,282,040

   

154,960

   

2,226,779

   

2,275,450

   

100,101

 
                               

Federal funds sold and agreements

                             

 to resell securities

 

-

   

2,850

   

5,000

   

415,580

   

10,300

 
                               

Trading account assets

 

517,620

   

561,834

   

605,557

   

502,986

   

413,737

 
                               

Investment securities

 

7,195,296

   

7,673,154

   

7,173,797

   

6,492,265

   

6,507,165

 
                               

Loans and leases:

                             
                               

  Commercial, financial, etc.

 

15,938,672

   

15,734,436

   

15,218,502

   

15,040,892

   

13,826,299

 

  Real estate - commercial

 

24,486,555

   

24,411,114

   

23,961,306

   

24,263,726

   

20,891,615

 

  Real estate - consumer

 

8,696,594

   

7,923,165

   

7,065,451

   

6,970,921

   

6,154,960

 

  Consumer

 

11,799,929

   

12,027,290

   

12,156,005

   

12,265,690

   

11,245,807

 

    Total loans and leases, net of unearned discount

 

60,921,750

   

60,096,005

   

58,401,264

   

58,541,229

   

52,118,681

 

       Less: allowance for credit losses

 

909,006

   

908,290

   

908,525

   

907,589

   

903,703

 
                               

 Net loans and leases

 

60,012,744

   

59,187,715

   

57,492,739

   

57,633,640

   

51,214,978

 
                               

Goodwill

 

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

 
                               

Core deposit and other intangible assets

 

159,619

   

176,394

   

193,556

   

210,957

   

113,603

 
                               

Other assets

 

5,150,851

   

5,193,208

   

5,292,781

   

5,374,316

   

5,024,694

 
                               

 Total assets

$

79,186,887

   

77,924,287

   

77,863,891

   

77,727,154

   

67,881,208

 
                               
                               

LIABILITIES AND SHAREHOLDERS' EQUITY

                             
                               

Noninterest-bearing deposits

$

20,648,970

   

20,017,883

   

19,637,491

   

18,598,828

   

15,219,562

 
                               

Interest-bearing deposits

 

39,868,782

   

39,020,839

   

39,330,027

   

40,078,834

   

34,264,867

 
                               

Deposits at Cayman Islands office

 

395,191

   

355,927

   

514,871

   

551,553

   

1,063,670

 
                               

 Total deposits

 

60,912,943

   

59,394,649

   

59,482,389

   

59,229,215

   

50,548,099

 
                               

Short-term borrowings

 

511,981

   

782,082

   

694,398

   

567,144

   

504,676

 
                               

Accrued interest and other liabilities

 

1,856,749

   

1,790,121

   

1,563,121

   

1,557,685

   

1,015,495

 
                               

Long-term borrowings

 

6,476,526

   

6,686,226

   

6,748,857

   

7,128,916

   

7,305,420

 
                               

 Total liabilities

 

69,758,199

   

68,653,078

   

68,488,765

   

68,482,960

   

59,373,690

 
                               

Shareholders' equity:

                             
                               

  Preferred

 

866,489

   

864,585

   

862,717

   

860,901

   

743,385

 

  Common (1)

 

8,562,199

   

8,406,624

   

8,512,409

   

8,383,293

   

7,764,133

 
                               

    Total shareholders' equity

 

9,428,688

   

9,271,209

   

9,375,126

   

9,244,194

   

8,507,518

 
                               

 Total liabilities and shareholders' equity

$

79,186,887

   

77,924,287

   

77,863,891

   

77,727,154

   

67,881,208

 
                               
                               

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $331.3 million at March 31, 2012, $356.4 million at

 

      December 31, 2011, $192.5 million at September 30, 2011, $228.8 million at June 30, 2011 and $197.5 million at March 31, 2011.

 
                             

 
                                 

M&T BANK CORPORATION

                               

Condensed Consolidated Average Balance Sheet

                               

and Annualized Taxable-equivalent Rates

                               
                                 
   

Three months ended

 

Change in balance

 
   

March 31,

 

March 31,

 

December 31,

 

March 31, 2012 from

 

Dollars in millions

 

2012

 

2011

 

2011

 

March 31,

 

December 31,

 
   

Balance

Rate

 

Balance

Rate

 

Balance

Rate

 

2011

 

2011

 

ASSETS

                               
                                 

Interest-bearing deposits at banks

$

301

.28

%

115

.13

%

1,973

.25

%

161

%

 

-85

%

 
                                 

Federal funds sold and agreements

                               

 to resell securities

 

3

.50

 

15

.53

 

6

.38

 

-83

   

-60

   
                                 

Trading account assets

 

93

1.57

 

110

1.61

 

82

1.30

 

-15

   

14

   
                                 

Investment securities

 

7,507

3.54

 

7,219

4.17

 

7,633

3.48

 

4

   

-2

   
                                 

Loans and leases, net of unearned discount

                               

 Commercial, financial, etc.

 

15,732

3.71

 

13,573

3.93

 

15,392

3.78

 

16

   

2

   

 Real estate - commercial

 

24,559

4.42

 

21,003

4.71

 

24,108

4.47

 

17

   

2

   

 Real estate - consumer

 

8,286

4.60

 

6,054

5.06

 

7,480

4.77

 

37

   

11

   

 Consumer

 

11,907

4.80

 

11,342

5.13

 

12,097

4.87

 

5

   

-2

   

    Total loans and leases, net

 

60,484

4.35

 

51,972

4.67

 

59,077

4.39

 

16

   

2

   
                                 

 Total earning assets

 

68,388

4.24

 

59,431

4.60

 

68,771

4.17

 

15

   

-1

   
                                 

Goodwill

 

3,525

   

3,525

   

3,525

   

-

   

-

   
                                 

Core deposit and other intangible assets

 

168

   

119

   

185

   

40

   

-9

   
                                 

Other assets

 

5,945

   

4,970

   

5,912

   

20

   

1

   
                                 

 Total assets

$

78,026

   

68,045

   

78,393

   

15

%

 

-

%

 
                                 
                                 
                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                               
                                 

Interest-bearing deposits

                               

 NOW accounts

$

827

.14

 

628

.13

 

826

.15

 

32

%

 

-

%

 

 Savings deposits

 

32,410

.23

 

27,669

.28

 

32,179

.27

 

17

   

1

   

 Time deposits

 

5,960

.91

 

5,700

1.36

 

6,379

.93

 

5

   

-7

   

 Deposits at Cayman Islands office

 

496

.17

 

1,182

.14

 

512

.15

 

-58

   

-3

   

    Total interest-bearing deposits

 

39,693

.33

 

35,179

.45

 

39,896

.37

 

13

   

-1

   
                                 

Short-term borrowings

 

828

.15

 

1,344

.15

 

674

.10

 

-38

   

23

   

Long-term borrowings

 

6,507

3.78

 

7,368

3.26

 

6,574

3.66

 

-12

   

-1

   
                                 

Total interest-bearing liabilities

 

47,028

.80

 

43,891

.91

 

47,144

.82

 

7

   

-

   
                                 

Noninterest-bearing deposits

 

19,598

   

14,501

   

20,103

   

35

   

-3

   
                                 

Other liabilities

 

2,024

   

1,202

   

1,733

   

68

   

17

   
                                 

 Total liabilities

 

68,650

   

59,594

   

68,980

   

15

   

-

   
                                 

Shareholders' equity

 

9,376

   

8,451

   

9,413

   

11

   

-

   
                                 

 Total liabilities and shareholders' equity

$

78,026

   

68,045

   

78,393

   

15

%

 

-

%

 
                                 
                                 

Net interest spread

   

3.44

   

3.69

   

3.35

             

Contribution of interest-free funds

   

.25

   

.23

   

.25

             

Net interest margin

   

3.69

%

 

3.92

%

 

3.60

%

           
                               

 
                         

M&T BANK CORPORATION

                       

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

 
                         
                         
                         
   

Three months ended

   
   

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

   
   

2012

 

2011

 

2011

 

2011

 

2011

   

Income statement data

                       

In thousands, except per share

                       

Net income

                       

Net income

$

206,463

 

147,740

 

183,108

 

322,358

 

206,273

   

Amortization of core deposit and other

                       

 intangible assets (1)

 

10,240

 

10,476

 

10,622

 

8,974

 

7,478

   

Merger-related gain (1)

 

-

 

-

 

-

 

(64,930)

 

-

   

Merger-related expenses (1)

 

1,657

 

10,194

 

16,266

 

23,085

 

2,609

   

 Net operating income

$

218,360

 

168,410

 

209,996

 

289,487

 

216,360

   

Earnings per common share

                       

Diluted earnings per common share

$

1.50

 

1.04

 

1.32

 

2.42

 

1.59

   

Amortization of core deposit and other

                       

 intangible assets (1)

 

.08

 

.08

 

.08