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

BUFFALO, N.Y., July 17, 2012 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2012.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2012 were $1.71, up 14% from $1.50 in the initial 2012 quarter.  GAAP-basis net income in the recent quarter totaled $233 million, 13% higher than $206 million in the first quarter of 2012.  GAAP-basis net income for the second quarter of 2012 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.17% and 10.12%, respectively, improved from 1.06% and 9.04%, respectively, in the immediately preceding quarter.

The recent quarter's results as compared with the first quarter of 2012 reflect a 24% rise in mortgage banking revenues and solid increases in net interest income and trust income, as well as reduced costs for salaries and benefits.  The higher mortgage banking revenues reflect significant improvements in both residential and commercial mortgage banking activities.

Reflecting on the recent quarter's performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, commented, "M&T continues to perform well for both our customers and our shareholders.  During the second quarter we saw significant growth in our revenues in the areas of net interest income, mortgage banking and trust services.  Our credit experience, specifically net charge-offs as a percentage of loans, continued to favorably outpace the rest of the banking industry and the level of our nonaccrual loans declined $97 million or 9% from March 31.  Furthermore, our operating expenses were once again well controlled as reflected in our efficiency ratio, which improved to 56.9% from 61.1%.  We view this as a very solid quarter of performance."

Diluted earnings per common share and GAAP-basis net income in the second quarter of 2011 were $2.42 and $322 million, respectively.  The recent quarter's results as compared with the second quarter of 2011 reflect increased net interest income, trust income and mortgage banking revenues.  Earnings for last year's second quarter were supplemented by realized gains from the sale of investment securities, which totaled $67 million after-tax effect, or $.54 of diluted earnings per common share, as M&T repositioned its balance sheet in conjunction with the May 16, 2011 acquisition of Wilmington Trust Corporation ("Wilmington Trust").  Also adding to earnings in the second quarter of 2011 was a net after-tax gain of $42 million, or $.33 of diluted earnings per common share, related to the Wilmington Trust acquisition. GAAP-basis net income in that quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.78% and 14.94%, respectively.

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, but include the effect of securities gains and losses, were $1.82 in the recent quarter, compared with $2.16 and $1.59 in the second quarter of 2011 and the first quarter of 2012, respectively.  Net operating income during the second quarter of 2012 was $247 million, compared with $289 million in the second quarter of 2011 and $218 million in the initial 2012 quarter.  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 1.30% and 18.54%, respectively, compared with 1.69% and 24.24% in the year-earlier quarter and 1.18% and 16.79% in the first quarter of 2012.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $655 million in the second quarter of 2012, up an annualized 18% from $627 million in the first quarter of 2012.  That improvement was predominantly due to a $2.1 billion increase in average earning assets, including a $1.3 billion increase in average loans outstanding, and a 5 basis point (hundredths of one percent) widening of the net interest margin.  The higher net interest margin reflects an additional $14 million of interest income which resulted from an improvement in estimated cash flows expected to be collected on acquired loans.  Stabilizing economic conditions and better than expected repayments resulted in an approximate 1% increase in projected cash flows, which will be recognized as interest income over the remaining terms of the acquired loans.  Taxable-equivalent net interest income in the recent quarter was up 10% from $593 million in the second quarter of 2011.  That improvement resulted from a $7.1 billion increase in average earning assets.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $60 million in the second quarter of 2012, compared with $63 million in the year-earlier quarter and $49 million in the first quarter of 2012.  Net charge-offs of loans were $52 million during the recent quarter, compared with $59 million and $48 million in the second quarter of 2011 and the first quarter of 2012, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .34% and .43% in the second quarter of 2012 and 2011, respectively, and .32% in the first quarter of 2012.

Loans classified as nonaccrual declined to $968 million, or 1.54% of total loans outstanding at June 30, 2012, improved from $1.12 billion or 1.91% a year earlier and $1.07 billion or 1.75% at March 31, 2012.

Assets taken in foreclosure of defaulted loans were $116 million at June 30, 2012, improved from $159 million at June 30, 2011 and $140 million at March 31, 2012.

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 $917 million at June 30, 2012, compared with $908 million and $909 million at June 30, 2011 and March 31, 2012, respectively.  The allowance expressed as a percentage of outstanding loans was 1.46% at June 30, 2012, compared with 1.55% at June 30, 2011 and 1.49% at March 31, 2012. 

Noninterest Income and Expense.  Noninterest income totaled $392 million in the second quarter of 2012, compared with $502 million and $377 million in the second quarter of 2011 and the first quarter of 2012, respectively.  Reflected in those amounts were net pre-tax losses on investment securities of $17 million and $11 million in the recent quarter and the first quarter of 2012, respectively, and net pre-tax gains from investment securities of $84 million in the second quarter of 2011.  The net securities losses in the recent quarter and the initial 2012 quarter were predominantly due to 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 second quarter of 2011 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.  In connection with the Wilmington Trust acquisition, M&T sold investment securities in last year's second quarter in order to manage its balance sheet size and composition and the resultant capital ratios. 

Excluding gains and losses from investment securities in all periods and the $65 million gain recorded in 2011's second quarter related to the Wilmington Trust acquisition, noninterest income in the second quarter of 2012 aggregated $408 million, compared with $353 million in the year-earlier quarter and $388 million in the initial quarter of 2012.  The recent quarter's improvement in noninterest income as compared with the earlier quarters resulted predominantly from higher mortgage banking revenues and trust income.

Noninterest expense in the second quarter of 2012 totaled $627 million, compared with $577 million in the year-earlier quarter and $640 million in the first quarter of 2012.  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 $604 million in the recent quarter, compared with $525 million in the second quarter of 2011 and $620 million in 2012's initial 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.  As compared with the first quarter of 2012, the recent quarter's lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation. 

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 56.9% in the second quarter of 2012, compared with 55.6% in the year-earlier period and 61.1% in the first quarter of 2012. 

Balance Sheet.  M&T had total assets of $80.8 billion at June 30, 2012, compared with $77.7 billion at June 30, 2011.  Loans and leases, net of unearned discount, increased $4.3 billion or 7% to $62.9 billion at the recent quarter-end, from $58.5 billion a year earlier.  Total deposits rose 6% to $62.5 billion at June 30, 2012 from $59.2 billion at June 30, 2011.

Total shareholders' equity increased 4% to $9.6 billion at June 30, 2012 from $9.2 billion a year earlier, representing 11.92% and 11.89%, respectively, of total assets.  Common shareholders' equity was $8.8 billion, or $69.15 per share, at June 30, 2012, compared with $8.4 billion, or $66.71 per share, at June 30, 2011.  Tangible equity per common share rose 8% to $40.52 at the recent quarter-end from $37.45 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $67.64 and $38.89, respectively, at March 31, 2012.  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 6.65% at June 30, 2012, up from 6.35% and 6.51% at June 30, 2011 and March 31, 2012, respectively. M&T's estimated Tier 1 common ratio, a regulatory capital measure, was 7.15% at June 30, 2012, improved from 6.67% and 7.04% at June 30, 2011 and March 31, 2012, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second 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# 99533519. 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 Thursday, July 19, 2012 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID# 99533519.  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

           

Six months ended

     

Amounts in thousands,

   

June 30

           

June 30

     

 except per share

   

2012

 

2011

 

Change

       

2012

 

2011

 

Change

 
                                   

Performance

                                 
                                   

Net income

 

$

233,380

 

322,358

 

-28

%

 

$

439,843

 

528,631

 

-17

%

Net income available to common shareholders 

   

214,716

 

297,179

 

-28

%

   

402,958

 

487,308

 

-17

%

                                   

Per common share:

                                 

  Basic earnings 

 

$

1.71

 

2.43

 

-30

%

 

$

3.21

 

4.04

 

-21

%

  Diluted earnings 

   

1.71

 

2.42

 

-29

%

   

3.20

 

4.02

 

-20

%

  Cash dividends 

 

$

.70

 

.70

 

-

     

$

1.40

 

1.40

 

-

 
                                   

Common shares outstanding:

                                 

  Average - diluted (1) 

   

125,897

 

122,796

 

3

%

   

125,756

 

121,332

 

4

%

  Period end (2) 

   

126,645

 

125,622

 

1

%

   

126,645

 

125,622

 

1

%

                                   

Return on (annualized):

                                 

  Average total assets 

   

1.17

%

1.78

%

         

1.12

%

1.52

%

   

  Average common shareholders' equity 

   

10.12

%

14.94

%

         

9.58

%

12.62

%

   
                                   

Taxable-equivalent net interest income 

 

$

654,628

 

592,670

 

10

%

 

$

1,281,722

 

1,167,801

 

10

%

                                   

Yield on average earning assets 

   

4.25

%

4.40

%

         

4.24

%

4.49

%

   

Cost of interest-bearing liabilities 

   

.76

%

.89

%

         

.78

%

.90

%

   

Net interest spread 

   

3.49

%

3.51

%

         

3.46

%

3.59

%

   

Contribution of interest-free funds 

   

.25

%

.24

%

         

.25

%

.24

%

   

Net interest margin  

   

3.74

%

3.75

%

         

3.71

%

3.83

%

   
                                   

Net charge-offs to average total 

                                 

  net loans (annualized) 

   

.34

%

.43

%

         

.33

%

.50

%

   
                                   

Net operating results (3)

                                 
                                   

Net operating income 

 

$

247,433

 

289,487

 

-15

%

 

$

465,793

 

505,847

 

-8

%

Diluted net operating earnings per common share 

   

1.82

 

2.16

 

-16

%

   

3.41

 

3.83

 

-11

%

Return on (annualized):

                                 

  Average tangible assets 

   

1.30

%

1.69

%

         

1.24

%

1.53

%

   

  Average tangible common equity 

   

18.54

%

24.24

%

         

17.68

%

22.30

%

   

Efficiency ratio 

   

56.86

%

55.56

%

         

58.92

%

55.65

%

   
                                   
                                   
                                   
     

 

At  June 30

                       

Loan quality

   

2012

 

2011

 

Change

                   
                                   

Nonaccrual loans 

 

$

968,328

 

1,117,584

 

-13

%

               

Real estate and other foreclosed assets 

   

115,580

 

158,873

 

-27

%

               

  Total nonperforming assets 

 

$

1,083,908

 

1,276,457

 

-15

%

               
                                   

Accruing loans past due 90 days or more (4) 

 

$

274,598

 

239,527

 

15

%

               
                                   

Government guaranteed loans included in totals

                                 

  above:

                                 

  Nonaccrual loans 

 

$

48,712

 

42,337

 

15

%

               

  Accruing loans past due 90 days or more 

   

255,495

 

205,644

 

24

%

               
                                   

Renegotiated loans 

 

$

267,111

 

234,726

 

14

%

               
                                   

Acquired accruing loans past due 90 

                                 

  days or more (5) 

 

$

162,487

 

228,304

 

-29

%

               
                                   

Purchased impaired loans (6):

                                 

  Outstanding customer balance 

 

$

1,037,458

 

1,473,237

                       

  Carrying amount 

   

560,700

 

752,978

                       
                                   

Nonaccrual loans to total net loans 

   

1.54

%

1.91

%

                     
                                   

Allowance for credit losses to total loans 

   

1.46

%

1.55

%

                     
                                   
 
 

(1)  Includes common stock equivalents.

(2)  Includes common stock issuable under deferred compensation plans.

(3)  Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related 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)  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,

     

June 30,

 

March 31,

   

December 31,

   

September 30,

 

June 30,

   

 except per share

     

2012

 

2012

   

2011

   

2011

 

2011

   
                                       

Performance

                                     
                                       

Net income 

   

$

233,380

   

206,463

   

147,740

   

183,108

   

322,358

     

Net income available to common shareholders 

     

214,716

   

188,241

   

129,804

   

164,671

   

297,179

     
                                       

Per common share:

                                     

  Basic earnings 

   

$

1.71

   

1.50

   

1.04

   

1.32

   

2.43

     

  Diluted earnings 

     

1.71

   

1.50

   

1.04

   

1.32

   

2.42

     

  Cash dividends 

   

$

.70

   

.70

   

.70

   

.70

   

.70

     
                                       

Common shares outstanding:

                                     

  Average - diluted (1)

     

125,897

   

125,616

   

124,736

   

124,860

   

122,796

     

  Period end (2)

     

126,645

   

126,534

   

125,752

   

125,678

   

125,622

     
                                       

Return on (annualized):

                                     

  Average total assets 

     

1.17

%

 

1.06

%

.75

%

.94

%

 

1.78

%

   

  Average common shareholders' equity  

     

10.12

%

 

9.04

%

6.12

%

7.84

%

 

14.94

%

   
                                       

Taxable-equivalent net interest income

   

$

654,628

   

627,094

   

624,566

   

623,265

   

592,670

     
                                       

Yield on average earning assets 

     

4.25

%

 

4.24

%

4.17

%

4.29

%

 

4.40

%

   

Cost of interest-bearing liabilities 

     

.76

%

 

.80

%

.82

%

.86

%

 

.89

%

   

Net interest spread 

     

3.49

%

 

3.44

%

3.35

%

3.43

%

 

3.51

%

   

Contribution of interest-free funds 

     

.25

%

 

.25

%

.25

%

.25

%

 

.24

%

   

Net interest margin 

     

3.74

%

 

3.69

%

3.60

%

3.68

%

 

3.75

%

   
                                       

Net charge-offs to average total 

                                     

  net loans (annualized) 

     

.34

%

 

.32

%

 

.50

%

 

.39

%

 

.43

%

   
                                       

Net operating results (3)

                                     
                                       

Net operating income  

   

$

247,433

   

218,360

   

168,410

   

209,996

   

289,487

     

Diluted net operating earnings per common share 

     

1.82

   

1.59

   

1.20

   

1.53

   

2.16

     

Return on (annualized):

                                     

  Average tangible assets 

     

1.30

%

 

1.18

%

.89

%

1.14

%

 

1.69

%

   

  Average tangible common equity 

     

18.54

%

 

16.79

%

12.36

%

16.07

%

 

24.24

%

   

Efficiency ratio 

     

56.86

%

 

61.09

%

67.38

%

61.79

%

 

55.56

%

   
                                       
                                       
                                       
               
       

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

   

Loan quality

     

2012

 

2012

 

2011

 

2011

 

2011

   
                                       

Nonaccrual loans 

   

$

968,328

   

1,065,229

   

1,097,581

   

1,113,788

   

1,117,584

     

Real estate and other foreclosed assets 

     

115,580

   

140,297

   

156,592

   

149,868

   

158,873

     

  Total nonperforming assets 

   

$

1,083,908

   

1,205,526

   

1,254,173

   

1,263,656

   

1,276,457

     
                                       

Accruing loans past due 90 days or more (4) 

   

$

274,598

   

273,081

   

287,876

   

239,970

   

239,527

     
                                       

Government guaranteed loans included in totals

                                     

  above:

                                     

  Nonaccrual loans 

   

$

48,712

   

44,717

   

40,529

   

32,937

   

42,337

     

  Accruing loans past due 90 days or more 

     

255,495

   

252,622

   

252,503

   

210,407

   

205,644

     
                                       

Renegotiated loans 

   

$

267,111

   

213,024

   

214,379

   

223,233

   

234,726

     
                                       

Acquired accruing loans past due 90 

                                     

  days or more (5) 

   

$

162,487

   

165,163

   

163,738

   

211,958

   

228,304

     
                                       

Purchased impaired loans (6):

                                     

  Outstanding customer balance 

   

$

1,037,458

   

1,158,829

   

1,267,762

   

1,393,777

   

1,473,237

     

  Carrying amount 

     

560,700

   

604,779

   

653,362

   

703,632

   

752,978

     
                                       

Nonaccrual loans to total net loans 

     

1.54

%

 

1.75

%

 

1.83

%

1.91

%

 

1.91

%

 
                                       

Allowance for credit losses to total loans 

     

1.46

%

1.49

%

1.51

%

 

1.56

%

1.55

%

 
                                       
                                       

(1)  Includes common stock equivalents.

                                     

(2)  Includes common stock issuable under deferred compensation plans.

                         

(3)  Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related 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)  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

         

Six months ended

     
   

June 30

         

June 30

     

Dollars in thousands

 

2012

 

2011

 

Change

     

2012

 

2011

 

Change

 
                               

Interest income 

$

737,386

 

688,253

 

7

%

 

$

1,451,481

 

1,355,736

 

7

%

Interest expense 

 

89,403

 

102,051

 

-12

     

183,109

 

200,730

 

-9

 
                               

Net interest income 

 

647,983

 

586,202

 

11

     

1,268,372

 

1,155,006

 

10

 
                               

Provision for credit losses 

 

60,000

 

63,000

 

-5

     

109,000

 

138,000

 

-21

 
                               

Net interest income after

                             

   provision for credit losses 

 

587,983

 

523,202

 

12

     

1,159,372

 

1,017,006

 

14

 
                               

Other income

                             

     Mortgage banking revenues 

 

69,514

 

42,151

 

65

     

125,706

 

87,307

 

44

 

     Service charges on deposit accounts 

 

110,982

 

119,716

 

-7

     

219,871

 

229,447

 

-4

 

     Trust income 

 

122,275

 

75,592

 

62

     

239,228

 

104,913

 

128

 

     Brokerage services income 

 

16,172

 

14,926

 

8

     

30,073

 

29,222

 

3

 

     Trading account and foreign exchange gains 

 

6,238

 

6,798

 

-8

     

16,809

 

15,077

 

11

 

     Gain (loss) on bank investment securities 

 

(408)

 

110,744

 

-

     

(363)

 

150,097

 

-

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

(16,173)

 

(26,530)

 

-

     

(27,659)

 

(42,571)

 

-

 

     Equity in earnings of Bayview Lending Group LLC 

 

(6,635)

 

(5,223)

 

-

     

(11,387)

 

(11,901)

 

-

 

     Other revenues from operations 

 

89,685

 

163,482

 

-45

     

176,095

 

254,485

 

-31

 

          Total other income 

 

391,650

 

501,656

 

-22

     

768,373

 

816,076

 

-6

 
                               

Other expense

                             

     Salaries and employee benefits 

 

323,686

 

300,178

 

8

     

669,784

 

566,268

 

18

 

     Equipment and net occupancy 

 

65,376

 

59,670

 

10

     

130,419

 

116,333

 

12

 

     Printing, postage and supplies 

 

11,368

 

9,723

 

17

     

23,240

 

18,925

 

23

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

15,907

 

14,740

 

8

     

32,681

 

27,054

 

21

 

     FDIC assessments 

 

24,962

 

26,609

 

-6

     

53,911

 

45,703

 

18

 

     Other costs of operations 

 

186,093

 

165,975

 

12

     

357,052

 

302,183

 

18

 

          Total other expense 

 

627,392

 

576,895

 

9

     

1,267,087

 

1,076,466

 

18

 
                               

Income before income taxes 

 

352,241

 

447,963

 

-21

     

660,658

 

756,616

 

-13

 
                               

Applicable income taxes 

 

118,861

 

125,605

 

-5

     

220,815

 

227,985

 

-3

 
                               

Net income 

$

233,380

 

322,358

 

-28

%

 

$

439,843

 

528,631

 

-17

%

 

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

 

2012

 

2012

 

2011

 

2011

 

2011

                               

Interest income 

$

737,386

 

714,095

 

716,000

 

720,351

 

688,253

Interest expense 

 

89,403

 

93,706

 

97,969

 

103,632

 

102,051

                               

Net interest income 

 

647,983

 

620,389

 

618,031

 

616,719

 

586,202

                               

Provision for credit losses 

 

60,000

 

49,000

 

74,000

 

58,000

 

63,000

                               

Net interest income after

                             

   provision for credit losses 

 

587,983

 

571,389

 

544,031

 

558,719

 

523,202

                               

Other income

                             

     Mortgage banking revenues 

 

69,514

 

56,192

 

40,573

 

38,141

 

42,151

     Service charges on deposit accounts 

 

110,982

 

108,889

 

104,071

 

121,577

 

119,716

     Trust income 

 

122,275

 

116,953

 

113,820

 

113,652

 

75,592

     Brokerage services income 

 

16,172

 

13,901

 

13,341

 

13,907

 

14,926

     Trading account and foreign exchange gains 

 

6,238

 

10,571

 

7,971

 

4,176

 

6,798

     Gain (loss) on bank investment securities 

 

(408)

 

45

 

1

 

89

 

110,744

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

(16,173)

 

(11,486)

 

(24,822)

 

(9,642)

 

(26,530)

     Equity in earnings of Bayview Lending Group LLC 

 

(6,635)

 

(4,752)

 

(5,419)

 

(6,911)

 

(5,223)

     Other revenues from operations 

 

89,685

 

86,410

 

148,918

 

93,393

 

163,482

          Total other income 

 

391,650

 

376,723

 

398,454

 

368,382

 

501,656

                               

Other expense

                             

     Salaries and employee benefits 

 

323,686

 

346,098

 

312,528

 

325,197

 

300,178

     Equipment and net occupancy 

 

65,376

 

65,043

 

65,080

 

68,101

 

59,670

     Printing, postage and supplies 

 

11,368

 

11,872

 

11,399

 

10,593

 

9,723

     Amortization of core deposit and other 

                             

        intangible assets 

 

15,907

 

16,774

 

17,162

 

17,401

 

14,740

     FDIC assessments 

 

24,962

 

28,949

 

27,826

 

26,701

 

26,609

     Other costs of operations  

 

186,093

 

170,959

 

305,588

 

214,026

 

165,975

          Total other expense 

 

627,392

 

639,695

 

739,583

 

662,019

 

576,895

                               

Income before income taxes 

 

352,241

 

308,417

 

202,902

 

265,082

 

447,963

                               

Applicable income taxes 

 

118,861

 

101,954

 

55,162

 

81,974

 

125,605

                               

Net income 

$

233,380

 

206,463

 

147,740

 

183,108

 

322,358

                               

 

 

M&T BANK CORPORATION

         

Condensed Consolidated Balance Sheet

               
                 
     

June 30

     

Dollars in thousands

   

2012

 

2011

 

Change

 
                 

ASSETS