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

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

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2012 rose 64% to $2.17 from $1.32 in the year-earlier quarter and were 27% higher than $1.71 in the second quarter of 2012.  GAAP-basis net income in the recent quarter aggregated $293 million, up from $183 million and $233 million in the third quarter of 2011 and the second quarter of 2012, respectively.  GAAP-basis net income for the third quarter of 2012 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.45% and 12.40%, respectively, compared with .94% and 7.84%, respectively, in the year-earlier quarter and 1.17% and 10.12%, respectively, in the second quarter of 2012.

The recent quarter's results as compared with each of the third quarter of 2011 and the second quarter of 2012 reflect higher mortgage banking revenues, increases in taxable-equivalent net interest income and a lower provision for credit losses. In addition, expenses in the recent quarter declined $46 million, or 7%, from the year-earlier quarter, predominantly due to the integration of the operations obtained in the May 2011 acquisition of Wilmington Trust Corporation.

Commenting on M&T's financial performance in the third quarter of 2012, Rene F. Jones, Executive Vice President and Chief Financial Officer, said, "Earnings for the quarter were exceptionally strong.  While revenue from mortgage banking activities rose $37 million, or 54%, from the second quarter, loan growth, wider margins, prudent expense management and continuing improvement in credit quality combined for an impressive quarter.  Revenue from residential mortgage banking activities rose 76% from the second quarter and net interest income increased due to solid loan growth and a 3 basis point expansion of the net interest margin.  Credit metrics continued to improve, as nonaccrual loans declined from June 30, and the ratio of net charge-offs to average loans improved to .26% in the recent quarter, a level not seen since the beginning of the economic recession in late-2007."

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 amounts 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 $2.24 in the recent quarter, up 46% and 23% from $1.53 and $1.82 in the third quarter of 2011 and the second quarter of 2012, respectively.  Net operating income during the third quarter of 2012 was $302 million, improved from $210 million in the year-earlier quarter and $247 million in 2012's second quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.56% and 21.53%, respectively, in the recent quarter, compared with 1.14% and 16.07%, respectively, in the third quarter of 2011 and 1.30% and 18.54%, respectively, in the second quarter of 2012.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $669 million in the third quarter of 2012, up an annualized 9% from $655 million in the second quarter of 2012.  That improvement was due largely to a 3 basis point widening of the net interest margin and a $212 million increase in average earning assets.  The net interest margin was 3.77% in the recent quarter, compared with 3.74% in the second quarter of 2012.  The higher level of average earning assets in the recent quarter as compared with the second quarter of 2012 was predominantly due to a $1.6 billion increase in average loans and leases, largely offset by declines in average balances of lower yielding money-market assets and investment securities.  Taxable-equivalent net interest income in the recent quarter rose $46 million from $623 million in the third quarter of 2011.  That improvement reflected a $3.4 billion increase in average earning assets and a 9 basis point widening of the net interest margin.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $46 million in the recent quarter, improved from $58 million in the third quarter of 2011 and $60 million in 2012's second quarter.  Net charge-offs of loans totaled $42 million during the third quarter of 2012, down from $57 million and $52 million in the quarters ended September 30, 2011 and June 30, 2012, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .26% and .39% in the third quarter of 2012 and 2011, respectively, and .34% in the second quarter of 2012.

Loans classified as nonaccrual declined to $925 million, or 1.44% of total loans outstanding at September 30, 2012, improved from $1.11 billion or 1.91% at September 30, 2011 and $968 million or 1.54% at June 30, 2012.

Assets taken in foreclosure of defaulted loans were $112 million at September 30, 2012, down from $150 million at September 30, 2011 and $116 million at June 30, 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 for credit losses was $921 million at September 30, 2012, compared with $909 million at September 30, 2011 and $917 million at June 30, 2012.  The allowance expressed as a percentage of outstanding loans was 1.44% at September 30, 2012, down from 1.56% at September 30, 2011 and 1.46% at June 30, 2012.

Noninterest Income and Expense.  Noninterest income totaled $446 million in the recent quarter, compared with $368 million and $392 million in the third quarter of 2011 and the second quarter of 2012, respectively.  Reflected in those amounts were net pre-tax losses from investment securities of $5 million, $10 million and $17 million in the recent quarter, the third quarter of 2011, and the second quarter of 2012, respectively. The net securities losses were predominantly due to other-than-temporary impairment charges related to certain of M&T's holding of privately issued collateralized mortgage obligations.  

Excluding losses from investment securities in all periods, noninterest income in the third quarter of 2012 aggregated $451 million, up from $378 million in the third quarter of 2011 and $408 million in 2012's second quarter.  The rise in noninterest income in the recent quarter as compared with the year-earlier quarter and the second quarter of 2012 was predominantly due to higher mortgage banking revenues.  

Noninterest expense in the third quarter of 2012 totaled $616 million, compared with $662 million in the year-earlier quarter and $627 million in the second 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 $602 million in the recent quarter, down from $619 million in the third quarter of 2011 and $604 million in 2012's second quarter, due largely to the continued realization of synergies from the integration into M&T of the operations obtained from Wilmington Trust Corporation. 

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 53.7% in the recent quarter, significantly improved from 61.8% and 56.9% in the year-earlier quarter and the second quarter of 2012, respectively.

Balance Sheet.  M&T had total assets of $81.1 billion at September 30, 2012, compared with $77.9 billion at September 30, 2011.  Loans and leases, net of unearned discount, increased $5.7 billion, or 10%, to $64.1 billion at September 30, 2012 from $58.4 billion a year earlier.  Total deposits aggregated $64.0 billion at the recent quarter-end, up 8% from $59.5 billion at September 30, 2011. 

Total shareholders' equity rose 6% to $9.9 billion at September 30, 2012 from $9.4 billion a year earlier, representing 12.27% and 12.04%, respectively, of total assets.  Common shareholders' equity was $9.1 billion, or $71.17 per share, at September 30, 2012, compared with $8.5 billion, or $67.70 per share, at September 30, 2011.  Tangible equity per common share rose 11% to $42.80 at September 30, 2012 from $38.56 at September 30, 2011. Common shareholders' equity per share and tangible equity per common share were $69.15 and $40.52, respectively, at June 30, 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 7.04% at September 30, 2012, compared with 6.53% and 6.65% at September 30, 2011 and June 30, 2012, respectively.  M&T's estimated Tier 1 common ratio, a regulatory capital measure, rose to 7.47% at September 30, 2012, improved from 6.87% and 7.15% at September 30, 2011 and June 30, 2012, respectively.

Other notable events during the third quarter of 2012 included the announcement that M&T and Hudson City Bancorp, Inc. ("Hudson City") had entered into a definitive merger agreement whereby M&T would acquire Hudson City.  Completing M&T's exit from the TARP program, the United States Treasury Department ("U.S. Treasury") sold M&T Series A and Series C Preferred Stock to the public and no longer holds any shares of M&T's preferred stock.  Subject to common shareholder approval, M&T had modified certain of the terms of its Series A and Series C Preferred Stock which had been held by the U.S. Treasury.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third 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 #38101096.  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 October 20, 2012 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #38101096.  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) 842-5462

   

MEDIA CONTACT:   

C. Michael Zabel

 

(716) 842-5385

 

 

M&T BANK CORPORATION

           
 

Financial Highlights

                   
       

Three months ended

           

Nine months ended

     
 

Amounts in thousands,

   

September 30

           

September 30

     
 

 except per share

   

2012

 

2011

 

Change

       

2012

 

2011

 

Change

 
                                     
 

Performance

                                 
                                     
 

Net income

 

$

293,462

 

183,108

 

60

%

 

$

733,305

 

711,739

 

3

%

 

Net income available to common shareholders 

   

273,896

 

164,671

 

66

%

   

676,842

 

651,966

 

4

%

                                     
 

Per common share:

                                 
 

  Basic earnings 

 

$

2.18

 

1.32

 

65

%

 

$

5.39

 

5.34

 

1

%

 

  Diluted earnings 

   

2.17

 

1.32

 

64

%

   

5.37

 

5.32

 

1

%

 

  Cash dividends 

 

$

.70

 

.70

 

-

     

$

2.10

 

2.10

 

-

 
                                     
 

Common shares outstanding:

                                 
 

  Average - diluted (1) 

   

126,292

 

124,860

 

1

%

   

125,936

 

122,521

 

3

%

 

  Period end (2) 

   

127,461

 

125,678

 

1

%

   

127,461

 

125,678

 

1

%

                                     
 

Return on (annualized):

                                 
 

  Average total assets 

   

1.45

%

.94

%

         

1.23

%

1.31

%

   
 

  Average common shareholders' equity 

   

12.40

%

7.84

%

         

10.55

%

10.94

%

   
                                     
 

Taxable-equivalent net interest income 

 

$

669,256

 

623,265

 

7

%

 

$

1,950,978

 

1,791,066

 

9

%

                                     
 

Yield on average earning assets 

   

4.23

%

4.29

%

         

4.24

%

4.42

%

   
 

Cost of interest-bearing liabilities 

   

.71

%

.86

%

         

.76

%

.89

%

   
 

Net interest spread 

   

3.52

%

3.43

%

         

3.48

%

3.53

%

   
 

Contribution of interest-free funds 

   

.25

%

.25

%

         

.25

%

.25

%

   
 

Net interest margin 

   

3.77

%

3.68

%

         

3.73

%

3.78

%

   
                                     
 

Net charge-offs to average total 

                                 
 

  net loans (annualized) 

   

.26

%

.39

%

         

.31

%

.46

%

   
                                     
 

Net operating results (3)

                                 
                                     
 

Net operating income 

 

$

302,060

 

209,996

 

44

%

 

$

767,853

 

715,843

 

7

%

 

Diluted net operating earnings per common share

   

2.24

 

1.53

 

46

%

   

5.64

 

5.36

 

5

%

 

Return on (annualized):

                                 
 

  Average tangible assets 

   

1.56

%

1.14

%

         

1.35

%

1.39

%

   
 

  Average tangible common equity 

   

21.53

%

16.07

%

         

19.03

%

20.03

%

   
 

Efficiency ratio 

   

53.73

%

61.79

%

         

57.11

%

57.84

%

   
                                     
                                     
                                     
       

 

At September 30

                       
 

Loan quality

   

2012

 

2011

 

Change

                   
                                     
 

Nonaccrual loans 

 

$

925,231

 

1,113,788

 

-17

%

               
 

Real estate and other foreclosed assets 

   

112,160

 

149,868

 

-25

%

               
 

  Total nonperforming assets 

 

$

1,037,391

 

1,263,656

 

-18

%

               
                                     
 

Accruing loans past due 90 days or more (4) 

 

$

309,420

 

239,970

 

29

%

               
                                     
 

Government guaranteed loans included in totals

                                 
 

  above:

                                 
 

  Nonaccrual loans 

 

$

54,583

 

32,937

 

66

%

               
 

  Accruing loans past due 90 days or more 

   

280,410

 

210,407

 

33

%

               
                                     
 

Renegotiated loans 

 

$

266,526

 

223,233

 

19

%

               
                                     
 

Acquired accruing loans past due 90 days or more (5) 

 

$

161,424

 

211,958

 

-24

%

               
                                     
 

Purchased impaired loans (6):

                                 
 

  Outstanding customer balance 

 

$

978,731

 

1,393,777

 

-30

%

               
 

  Carrying amount 

   

528,001

 

703,632

 

-25

%

               
                                     
 

Nonaccrual loans to total net loans 

   

1.44

%

1.91

%

                     
                                     
 

Allowance for credit losses to total loans 

   

1.44

%

1.56

%

                     
                                     
                                     
 

(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,

     

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 except per share

     

2012

 

2012

 

2012

 

2011

 

2011

 
                                     

Performance

                                   
                                     

Net income 

   

$

293,462

   

233,380

   

206,463

   

147,740

   

183,108

   

Net income available to common shareholders 

     

273,896

   

214,716

   

188,241

   

129,804

   

164,671

   
                                     

Per common share:

                                   

  Basic earnings 

   

$

2.18

   

1.71

   

1.50

   

1.04

   

1.32

   

  Diluted earnings 

     

2.17

   

1.71

   

1.50

   

1.04

   

1.32

   

  Cash dividends 

   

$

.70

   

.70

   

.70

   

.70

   

.70

   
                                     

Common shares outstanding:

                                   

  Average - diluted (1) 

     

126,292

   

125,897

   

125,616

   

124,736

   

124,860

   

  Period end (2) 

     

127,461

   

126,645

   

126,534

   

125,752

   

125,678

   
                                     

Return on (annualized):

                                   

  Average total assets 

     

1.45

%

 

1.17

%

1.06

%

.75

%

 

.94

%

 

  Average common shareholders' equity 

     

12.40

%

 

10.12

%

9.04

%

6.12

%

 

7.84

%

 
                                     

Taxable-equivalent net interest income 

   

$

669,256

   

654,628

   

627,094

   

624,566

   

623,265

   
                                     

Yield on average earning assets 

     

4.23

%

 

4.25

%

4.24

%

4.17

%

 

4.29

%

 

Cost of interest-bearing liabilities 

     

.71

%

 

.76

%

.80

%

.82

%

 

.86

%

 

Net interest spread 

     

3.52

%

 

3.49

%

3.44

%

3.35

%

 

3.43

%

 

Contribution of interest-free funds 

     

.25

%

 

.25

%

.25

%

.25

%

 

.25

%

 

Net interest margin  

     

3.77

%

 

3.74

%

3.69

%

3.60

%

 

3.68

%

 
                                     

Net charge-offs to average total 

                                   

  net loans (annualized) 

     

.26

%

 

.34

%

 

.32

%

 

.50

%

 

.39

%

 
                                     

Net operating results (3)

                                   
                                     

Net operating income  

   

$

302,060

   

247,433

   

218,360

   

168,410

   

209,996

   

Diluted net operating earnings per common share 

     

2.24

   

1.82

   

1.59

   

1.20

   

1.53

   

Return on (annualized):

                                   

  Average tangible assets 

     

1.56

%

 

1.30

%

1.18

%

.89

%

 

1.14

%

 

  Average tangible common equity 

     

21.53

%

 

18.54

%

16.79

%

12.36

%

 

16.07

%

 

Efficiency ratio 

     

53.73

%

 

56.86

%

61.09

%

67.38

%

 

61.79

%

 
                                     
                                     
                                     
             
       

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

Loan quality

     

2012

 

2012

 

2012

 

2011

 

2011

 
                                     

Nonaccrual loans 

   

$

925,231

   

968,328

   

1,065,229

   

1,097,581

   

1,113,788

   

Real estate and other foreclosed assets 

     

112,160

   

115,580

   

140,297

   

156,592

   

149,868

   

  Total nonperforming assets 

   

$

1,037,391

   

1,083,908

   

1,205,526

   

1,254,173

   

1,263,656

   
                                     

Accruing loans past due 90 days or more (4) 

   

$

309,420

   

274,598

   

273,081

   

287,876

   

239,970

   
                                     

Government guaranteed loans included in totals

                                   

  above:

                                   

  Nonaccrual loans 

   

$

54,583

   

48,712

   

44,717

   

40,529

   

32,937

   

  Accruing loans past due 90 days or more 

     

280,410

   

255,495

   

252,622

   

252,503

   

210,407

   
                                     

Renegotiated loans 

   

$

266,526

   

267,111

   

213,024

   

214,379

   

223,233

   
                                     

Acquired accruing loans past due 90 days or more (5) 

   

$

161,424

   

162,487

   

165,163

   

163,738

   

211,958

   
                                     

Purchased impaired loans (6):

                                   

  Outstanding customer balance 

   

$

978,731

   

1,037,458

   

1,158,829

   

1,267,762

   

1,393,777

   

  Carrying amount 

     

528,001

   

560,700

   

604,779

   

653,362

   

703,632

   
                                     

Nonaccrual loans to total net loans 

     

1.44

%

 

1.54

%

 

1.75

%

1.83

%

1.91

%

                                     

Allowance for credit losses to total loans 

     

1.44

%

 

1.46

%

 

1.49

%

1.51

%

1.56

%

                                     

(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

         

Nine months ended

     
   

September 30

         

September 30

     

Dollars in thousands

 

2012

 

2011

 

Change

     

2012

 

2011

 

Change

 
                               

Interest income 

$

744,851

 

720,351

 

3

%

 

$

2,196,332

 

2,076,087

 

6

%

Interest expense 

 

82,129

 

103,632

 

-21

     

265,238

 

304,362

 

-13

 
                               

Net interest income 

 

662,722

 

616,719

 

7

     

1,931,094

 

1,771,725

 

9

 
                               

Provision for credit losses 

 

46,000

 

58,000

 

-21

     

155,000

 

196,000

 

-21

 
                               

Net interest income after

                             

   provision for credit losses 

 

616,722

 

558,719

 

10

     

1,776,094

 

1,575,725

 

13

 
                               

Other income

                             

     Mortgage banking revenues 

 

106,812

 

38,141

 

180

     

232,518

 

125,448

 

85

 

     Service charges on deposit accounts 

 

114,463

 

121,577

 

-6

     

334,334

 

351,024

 

-5

 

     Trust income  

 

115,709

 

113,652

 

2

     

354,937

 

218,565

 

62

 

     Brokerage services income 

 

14,114

 

13,907

 

1

     

44,187

 

43,129

 

2

 

     Trading account and foreign exchange gains 

 

8,469

 

4,176

 

103

     

25,278

 

19,253

 

31

 

     Gain on bank investment securities 

 

372

 

89

 

-

     

9

 

150,186

 

-

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

(5,672)

 

(9,642)

 

-

     

(33,331)

 

(52,213)

 

-

 

     Equity in earnings of Bayview Lending Group LLC 

 

(5,183)

 

(6,911)

 

-

     

(16,570)

 

(18,812)

 

-

 

     Other revenues from operations 

 

96,649

 

93,393

 

3

     

272,744

 

347,878

 

-22

 

          Total other income 

 

445,733

 

368,382

 

21

     

1,214,106

 

1,184,458

 

3

 
                               

Other expense

                             

     Salaries and employee benefits 

 

321,746

 

325,197

 

-1

     

991,530

 

891,465

 

11

 

     Equipment and net occupancy 

 

64,248

 

68,101

 

-6

     

194,667

 

184,434

 

6

 

     Printing, postage and supplies 

 

8,272

 

10,593

 

-22

     

31,512

 

29,518

 

7

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

14,085

 

17,401

 

-19

     

46,766

 

44,455

 

5

 

     FDIC assessments 

 

23,801

 

26,701

 

-11

     

77,712

 

72,404

 

7

 

     Other costs of operations 

 

183,875

 

214,026

 

-14

     

540,927

 

516,209

 

5

 

          Total other expense 

 

616,027

 

662,019

 

-7

     

1,883,114

 

1,738,485

 

8

 
                               

Income before income taxes 

 

446,428

 

265,082

 

68

     

1,107,086

 

1,021,698

 

8

 
                               

Applicable income taxes 

 

152,966

 

81,974

 

87

     

373,781

 

309,959

 

21

 
                               

Net income 

$

293,462

 

183,108

 

60

%

 

$

733,305

 

711,739

 

3

%

                               

 

 

M&T BANK CORPORATION

         

Condensed Consolidated Statement of Income, Five Quarter Trend

         
                               
   

Three months ended

 
   

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

Dollars in thousands

 

2012

 

2012

 

2012

 

2011

 

2011

                               

Interest income 

$

744,851

   

737,386

   

714,095

   

716,000

   

720,351

 

Interest expense 

 

82,129

   

89,403

   

93,706

   

97,969

   

103,632

 
                               

Net interest income 

 

662,722

   

647,983

   

620,389

   

618,031

   

616,719

 
                               

Provision for credit losses 

 

46,000

   

60,000

   

49,000

   

74,000

   

58,000

 
                               

Net interest income after

                             

   provision for credit losses 

 

616,722

   

587,983

   

571,389

   

544,031

   

558,719

 
                               

Other income

                             

     Mortgage banking revenues 

 

106,812

   

69,514

   

56,192

   

40,573

   

38,141

 

     Service charges on deposit accounts 

 

114,463

   

110,982

   

108,889

   

104,071

   

121,577

 

     Trust income 

 

115,709

   

122,275

   

116,953

   

113,820

   

113,652

 

     Brokerage services income 

 

14,114

   

16,172

   

13,901

   

13,341

   

13,907

 

     Trading account and foreign exchange gains 

 

8,469

   

6,238

   

10,571

   

7,971

   

4,176

 

     Gain (loss) on bank investment securities 

 

372

   

(408)

   

45

   

1

   

89

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

(5,672)

   

(16,173)

   

(11,486)

   

(24,822)

   

(9,642)

 

     Equity in earnings of Bayview Lending Group LLC 

 

(5,183)

   

(6,635)

   

(4,752)

   

(5,419)

   

(6,911)

 

     Other revenues from operations 

 

96,649

   

89,685

   

86,410

   

148,918

   

93,393

 

          Total other income 

 

445,733

   

391,650

   

376,723

   

398,454

   

368,382

 
                               

Other expense

                             

     Salaries and employee benefits 

 

321,746

   

323,686

   

346,098

   

312,528

   

325,197

 

     Equipment and net occupancy 

 

64,248

   

65,376

   

65,043

   

65,080

   

68,101

 

     Printing, postage and supplies 

 

8,272

   

11,368

   

11,872

   

11,399

   

10,593

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

14,085

   

15,907

   

16,774

   

17,162

   

17,401

 

     FDIC assessments 

 

23,801

   

24,962

   

28,949

   

27,826

   

26,701

 

     Other costs of operations  

 

183,875

   

186,093

   

170,959

   

305,588

   

214,026

 

          Total other expense 

 

616,027

   

627,392

   

639,695

   

739,583

   

662,019

 
                               

Income before income taxes 

 

446,428

   

352,241

   

308,417

   

202,902

   

265,082

 
                               

Applicable income taxes 

 

152,966

   

118,861

   

101,954

   

55,162

   

81,974