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M&T Bank Corporation Announces 2012 Fourth Quarter And Full-Year Profits
PR Newswire
BUFFALO, N.Y.

BUFFALO, N.Y., Jan. 16, 2013 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2012.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2012 rose 108% to $2.16 from $1.04 in the year-earlier quarter and were comparable to $2.17 in the third quarter of 2012.  GAAP-basis net income in the recent quarter totaled $296 million, up from $148 million and $293 million in the fourth quarter of 2011 and the third quarter of 2012, respectively.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was 1.45% and 12.10%, respectively, compared with .75% and 6.12%, respectively, in the year-earlier quarter and 1.45% and 12.40%, respectively, in the third quarter of 2012.

For the year ended December 31, 2012, diluted earnings per common share were $7.54, up 19% from $6.35 in 2011.  Net income rose to $1.03 billion in 2012 from $859 million in the previous year.  Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2012 was 1.29% and 10.96%, respectively, compared with 1.16% and 9.67%, respectively, in 2011.  

Commenting on M&T's performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "This was a year of tremendous accomplishment, in which M&T recorded record levels of net income and earnings per share.  Revenues were up in most major categories, led by exceptional growth in mortgage banking.  We continued to extend credit throughout the communities we serve, and as a result, loans rose an impressive $6.5 billion or 11% from the end of 2011, all while improving our capital base and expanding the services we offer our customers.  The fourth quarter was a continuation of those trends, positioning us well for continued success in 2013.  As we await shareholder and regulatory approvals for our proposed acquisition of Hudson City Bancorp, Inc., we are working diligently to prepare to welcome our new employees and customers to M&T."

While there were no unusual items included in M&T's results during the recent quarter, the fourth quarter of 2011 included several items of note:  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 the previous year's fourth quarter net income 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 expenses and gains 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 $2.23 in the recent quarter, compared with $1.20 in the year-earlier period and $2.24 in the third quarter of 2012.  Net operating income for the fourth quarter of 2012 was $305 million, improved from $168 million in the year-earlier quarter and $302 million in the third quarter of 2012.  For the three months ended December 31, 2012, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.56% and 20.46%, respectively, compared with .89% and 12.36% in the corresponding 2011 period and 1.56% and 21.53%, respectively, in the third quarter of 2012.

Diluted net operating earnings per common share rose 20% to $7.88 in 2012 from $6.55 in 2011.  Net operating income for 2012 and 2011 totaled $1.07 billion and $884 million, respectively.  Net operating income in 2012 expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.40% and 19.42%, respectively, compared with 1.26% and 17.96%, respectively, in 2011.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income aggregated $674 million in the recent quarter, up from $669 million in the third quarter of 2012.  That improvement resulted from an increase in average earning assets, most notably a $1.6 billion rise in average loans and leases, partially offset by a 3 basis point narrowing of the net interest margin to 3.74% in the fourth quarter, compared with 3.77% in the immediately preceding quarter.  Taxable-equivalent net interest income in the recent quarter increased $49 million from $625 million in the fourth quarter of 2011 reflecting a $2.9 billion rise in average earning assets and a 14 basis point widening of the net interest margin.  For the year ended December 31, 2012, net interest income on a taxable-equivalent basis rose 9% to $2.62 billion from $2.42 billion in 2011 as a result of a 12%, or $6.5 billion, increase in average loans and leases.  Significantly, the net interest margin held steady at 3.73% in 2012 as compared with the prior year despite a challenging low interest rate environment.

Provision for Credit Losses/Asset Quality.  Credit quality remained strong. The provision for credit losses was $49 million during the fourth quarter of 2012, compared with $74 million in the year-earlier quarter and $46 million in the third quarter of 2012.  Net charge-offs of loans were $44 million in the recent quarter, representing an annualized .27% of average loans outstanding, compared with $74 million or .50% in the final quarter of 2011 and $42 million or .26% in 2012's third quarter.  The provision for credit losses declined 24% to $204 million for the year ended December 31, 2012 from $270 million in 2011.  Net loan charge-offs for the year totaled $186 million, or .30% of average loans outstanding, compared with $265 million, or .47% of average loans in 2011.

Loans classified as nonaccrual totaled $1.01 billion, or 1.52% of total loans at December 31, 2012, compared with $1.10 billion or 1.83% a year earlier and $925 million or 1.44% at September 30, 2012.  The increase in nonaccrual loans from September 30, 2012 resulted largely from the addition of $64 million of loans to a single borrower that are fully secured by residential real estate.

Assets taken in foreclosure of defaulted loans were $104 million at December 31, 2012, down from $157 million and $112 million at December 31, 2011 and September 30, 2012, respectively. 

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 $926 million at December 31, 2012, compared with $908 million a year earlier and $921 million at September 30, 2012.  The allowance expressed as a percentage of outstanding loans was 1.39% at the recent quarter-end, compared with 1.51% at December 31, 2011 and 1.44% at September 30, 2012. 

Noninterest Income and Expense.  Noninterest income totaled $453 million in the recently completed quarter, compared with $398 million and $446 million in the final quarter of 2011 and the third quarter of 2012, respectively.  Reflected in those amounts were net losses from investment securities of $14 million, $25 million and $5 million, each predominantly due to other-than-temporary impairment charges.  Also included in noninterest income in the fourth quarter of 2011 was the $55 million favorable litigation settlement related to M&T's 2007 investment in certain collateralized debt obligations, as previously noted. 

Excluding the specific items referred to in the preceding paragraph, noninterest income was $468 million in the recent quarter, increasing from $368 million in the year-earlier quarter and $451 million in the third quarter of 2012.  The rise in noninterest income in the recent quarter as compared with those earlier quarters was predominantly due to higher mortgage banking revenues. 

Noninterest income aggregated $1.67 billion and $1.58 billion during the years ended December 31, 2012 and 2011, respectively. The most significant contributors to the rise in noninterest income in 2012 as compared with 2011 were higher mortgage banking revenues and trust income, the latter reflecting the full-year impact of the acquisition of Wilmington Trust Corporation ("Wilmington Trust").  Partially offsetting those factors were net gains from investment securities, the previously noted litigation settlement and merger-related gains, all reflected in M&T's 2011 results. 

Noninterest expense in the fourth quarter of 2012 totaled $626 million, compared with $740 million in the year-earlier quarter and $616 million in 2012's third quarter.  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 $612 million in the recent quarter, compared with $706 million and $602 million in the fourth quarter of 2011 and the third quarter of 2012, respectively.  Reflected in noninterest expense in the fourth quarter of 2011 was the aforementioned $79 million impairment charge related to BLG and the $30 million charitable contribution.

For the year ended December 31, 2012, noninterest expense aggregated $2.51 billion, compared with $2.48 billion in the previous year.  Excluding those previously noted expenses considered to be nonoperating in nature, noninterest operating expenses were $2.44 billion in 2012 and $2.33 billion in 2011.  That increase was largely attributable to the full-year impact of the operations obtained in the Wilmington Trust acquisition.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities and merger-related gains), measures the relationship of operating expenses to revenues.  As a result of revenue growth that has outpaced increases in operating expenses, M&T's efficiency ratio improved to 53.6% in the recent quarter from 67.4% in the year-earlier quarter and 53.7% in the third quarter of 2012.  The efficiency ratio for the year ended December 31, 2012 was 56.2%, also improved, from 60.4% in 2011.  The improved efficiency ratio reflects the significant progress made in the integration of the operations obtained in the May 2011 acquisition of Wilmington Trust.   

Balance Sheet.  M&T had total assets of $83.0 billion at December 31, 2012, up from $77.9 billion a year earlier.  Loans and leases, net of unearned discount, totaled $66.6 billion at the 2012 year-end, $6.5 billion or 11% higher than $60.1 billion at December 31, 2011.  The pace of growth in outstanding loans and leases during 2012's final quarter remained robust, increasing $2.5 billion, or 4%, from $64.1 billion at September 30, 2012.  That growth reflects increases in commercial loans, commercial real estate loans and residential real estate loans.  Total deposits were $65.6 billion at December 31, 2012, $6.2 billion or 10% higher than $59.4 billion a year earlier and $1.6 billion or 3% above $64.0 billion at September 30, 2012. 

Total shareholders' equity rose 10% to $10.2 billion at December 31, 2012 from $9.3 billion a year earlier, representing 12.29% and 11.90% respectively, of total assets.  Common shareholders' equity was $9.3 billion, or $72.73 per share at December 31, 2012, compared with $8.4 billion, or $66.82 per share, a year earlier.  Tangible equity per common share rose 18% to $44.61 at December 31, 2012 from $37.79 a year earlier.  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 7.20% at December 31, 2012, compared with 6.40% and 7.04% at December 31, 2011 and September 30, 2012, respectively. M&T's estimated Tier 1 common ratio was 7.57% at December 31, 2012, compared with 6.86% and 7.46% at December 31, 2011 and September 30, 2012, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full-year 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 #86834125.  The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will  be available until January 19, 2013 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #86834125.  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

           

Year ended

     
 

Amounts in thousands,

   

December 31

           

December 31

     
 

 except per share

   

2012

 

2011

 

Change

       

2012

 

2011

 

Change

 
                                     
 

Performance

                                 
                                     
 

Net income

 

$

296,193

 

147,740

 

100

%

   

$

1,029,498

 

859,479

 

20

%

 

Net income available to common shareholders

   

276,605

 

129,804

 

113

       

953,429

 

781,765

 

22

 
                                     
 

Per common share:

                                 
 

  Basic earnings 

 

$

2.18

 

1.04

 

110

%

   

$

7.57

 

6.37

 

19

%

 

  Diluted earnings 

   

2.16

 

1.04

 

108

       

7.54

 

6.35

 

19

 
 

  Cash dividends 

 

$

.70

 

.70

 

-

     

$

2.80

 

2.80

 

-

 
                                     
 

Common shares outstanding:

                                 
 

  Average - diluted (1) 

   

127,800

 

124,736

 

2

%

     

126,405

 

123,079

 

3

%

 

  Period end (2) 

   

128,234

 

125,752

 

2

       

128,234

 

125,752

 

2

 
                                     
 

Return on (annualized):

                                 
 

  Average total assets 

   

1.45

%

.75

%

         

1.29

%

1.16

%

   
 

  Average common shareholders' equity 

   

12.10

%

6.12

%

         

10.96

%

9.67

%

   
                                     
 

Taxable-equivalent net interest income 

 

$

673,929

 

624,566

 

8

%

   

$

2,624,907

 

2,415,632

 

9

%

                                     
 

Yield on average earning assets 

   

4.17

%

4.17

%

         

4.22

%

4.35

%

   
 

Cost of interest-bearing liabilities 

   

.67

%

.82

%

         

.74

%

.87

%

   
 

Net interest spread 

   

3.50

%

3.35

%

         

3.48

%

3.48

%

   
 

Contribution of interest-free funds 

   

.24

%

.25

%

         

.25

%

.25

%

   
 

Net interest margin 

   

3.74

%

3.60

%

         

3.73

%

3.73

%

   
                                     
 

Net charge-offs to average total 

                                 
 

  net loans (annualized) 

   

.27

%

.50

%

         

.30

%

.47

%

   
                                     
 

Net operating results (3)

                                 
                                     
 

Net operating income 

 

$

304,657

 

168,410

 

81

%

   

$

1,072,510

 

884,253

 

21

%

 

Diluted net operating earnings per common share 

   

2.23

 

1.20

 

86

       

7.88

 

6.55

 

20

 
 

Return on (annualized):

                                 
 

  Average tangible assets 

   

1.56

%

.89

%

         

1.40

%

1.26

%

   
 

  Average tangible common equity 

   

20.46

%

12.36

%

         

19.42

%

17.96

%

   
 

Efficiency ratio 

   

53.63

%

67.38

%

         

56.19

%

60.43

%

   
                                     
                                     
                                     
       

At December 31

                       
 

Loan quality

   

2012

 

2011

 

Change

                   
                                     
 

Nonaccrual loans 

 

$

1,013,176

 

1,097,581

 

-8

%

                 
 

Real estate and other foreclosed assets 

   

104,279

 

156,592

 

-33

%

                 
 

  Total nonperforming assets 

 

$

1,117,455

 

1,254,173

 

-11

%

                 
                                     
 

Accruing loans past due 90 days or more (4) 

 

$

358,397

 

287,876

 

24

%

                 
                                     
 

Government guaranteed loans included in totals

                                 
 

  above:

                                 
 

  Nonaccrual loans 

 

$

57,420

 

40,529

 

42

%

                 
 

  Accruing loans past due 90 days or more 

   

316,403

 

252,503

 

25

%

                 
                                     
 

Renegotiated loans 

 

$

271,971

 

214,379

 

27

%

                 
                                     
 

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

$

166,554

 

163,738

 

2

%

                 
                                     
 

Purchased impaired loans (6):

                                 
 

  Outstanding customer balance 

 

$

828,571

 

1,267,762

 

-35

%

                 
 

  Carrying amount 

   

447,114

 

653,362

 

-32

%

                 
                                     
 

Nonaccrual loans to total net loans 

   

1.52

%

1.83

%

                     
                                     
 

Allowance for credit losses to total loans 

   

1.39

%

1.51

%

                     
                                     
                                     
 

(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,

     

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 except per share

     

2012

 

2012

 

2012

 

2012

 

2011

 
                                     

Performance

                                   
                                     

Net income

   

$

296,193

   

293,462

   

233,380

   

206,463

   

147,740

   

Net income available to common shareholders 

     

276,605

   

273,896

   

214,716

   

188,241

   

129,804

   
                                     

Per common share:

                                   

  Basic earnings 

   

$

2.18

   

2.18

   

1.71

   

1.50

   

1.04

   

  Diluted earnings 

     

2.16

   

2.17

   

1.71

   

1.50

   

1.04

   

  Cash dividends 

   

$

.70

   

.70

   

.70

   

.70

   

.70

   
                                     

Common shares outstanding:

                                   

  Average - diluted (1) 

     

127,800

   

126,292

   

125,897

   

125,616

   

124,736

   

  Period end (2) 

     

128,234

   

127,461

   

126,645

   

126,534

   

125,752

   
                                     

Return on (annualized):

                                   

  Average total assets 

     

1.45

%

 

1.45

%

 

1.17

%

 

1.06

%

 

.75

%

 

  Average common shareholders' equity 

     

12.10

%

 

12.40

%

 

10.12

%

 

9.04

%

 

6.12

%

 
                                     

Taxable-equivalent net interest income 

   

$

673,929

   

669,256

   

654,628

   

627,094

   

624,566

   
                                     

Yield on average earning assets 

     

4.17

%

 

4.23

%

 

4.25

%

 

4.24

%

 

4.17

%

 

Cost of interest-bearing liabilities 

     

.67

%

 

.71

%

 

.76

%

 

.80

%

 

.82

%

 

Net interest spread 

     

3.50

%

 

3.52

%

 

3.49

%

 

3.44

%

 

3.35

%

 

Contribution of interest-free funds 

     

.24

%

 

.25

%

 

.25

%

 

.25

%

 

.25

%

 

Net interest margin  

     

3.74

%

 

3.77

%

 

3.74

%

 

3.69

%

 

3.60

%

 
                                     

Net charge-offs to average total 

                                   

  net loans (annualized) 

     

.27

%

 

.26

%

 

.34

%

 

.32

%

 

.50

%

 
                                     

Net operating results (3)

                                   
                                     

Net operating income  

   

$

304,657

   

302,060

   

247,433

   

218,360

   

168,410

   

Diluted net operating earnings per common share 

     

2.23

   

2.24

   

1.82

   

1.59

   

1.20

   

Return on (annualized):

                                   

  Average tangible assets 

     

1.56

%

 

1.56

%

 

1.30

%

 

1.18

%

 

.89

%

 

  Average tangible common equity 

     

20.46

%

 

21.53

%

 

18.54

%

 

16.79

%

 

12.36

%

 

Efficiency ratio 

     

53.63

%

 

53.73

%

 

56.86

%

 

61.09

%

 

67.38

%

 
                                     
                                     
                                     
             
       

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Loan quality

     

2012

 

2012

 

2012

 

2012

 

2011

 
                                     

Nonaccrual loans 

   

$

1,013,176

   

925,231

   

968,328

   

1,065,229

   

1,097,581

   

Real estate and other foreclosed assets 

     

104,279

   

112,160

   

115,580

   

140,297

   

156,592

   

  Total nonperforming assets 

   

$

1,117,455

   

1,037,391

   

1,083,908

   

1,205,526

   

1,254,173

   
                                     

Accruing loans past due 90 days or more (4)

   

$

358,397

   

309,420

   

274,598

   

273,081

   

287,876

   
                                     

Government guaranteed loans included in totals

                                   

  above:

                                   

  Nonaccrual loans 

   

$

57,420

   

54,583

   

48,712

   

44,717

   

40,529

   

  Accruing loans past due 90 days or more 

     

316,403

   

280,410

   

255,495

   

252,622

   

252,503

   
                                     

Renegotiated loans 

   

$

271,971

   

266,526

   

267,111

   

213,024

   

214,379

   
                                     

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

 

$

166,554

   

161,424

   

162,487

   

165,163

   

163,738

   
                                     

Purchased impaired loans (6):

                                   

  Outstanding customer balance 

   

$

828,571

   

978,731

   

1,037,458

   

1,158,829

   

1,267,762

   

  Carrying amount 

     

447,114

   

528,001

   

560,700

   

604,779

   

653,362

   
                                     

Nonaccrual loans to total net loans 

     

1.52

%

 

1.44

%

 

1.54

%

 

1.75

%

 

1.83

%

 
                                     

Allowance for credit losses to total loans 

     

1.39

%

 

1.44

%

 

1.46

%

 

1.49

%

 

1.51

%

 
                                     
                                         

(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

         

Year ended

     
   

December 31

         

December 31

     

Dollars in thousands

 

2012

 

2011

 

Change

     

2012

 

2011

 

Change

 
                               

Interest income 

$

745,353

 

716,000

 

4

%

 

$

2,941,685

 

2,792,087

 

5

%

Interest expense 

 

77,931

 

97,969

 

-20

     

343,169

 

402,331

 

-15

 
                               

Net interest income 

 

667,422

 

618,031

 

8

     

2,598,516

 

2,389,756

 

9

 
                               

Provision for credit losses 

 

49,000

 

74,000

 

-34

     

204,000

 

270,000

 

-24

 
                               

Net interest income after

                             

   provision for credit losses 

 

618,422

 

544,031

 

14

     

2,394,516

 

2,119,756

 

13

 
                               

Other income

                             

     Mortgage banking revenues 

 

116,546

 

40,573

 

187

     

349,064

 

166,021

 

110

 

     Service charges on deposit accounts 

 

112,364

 

104,071

 

8

     

446,698

 

455,095

 

-2

 

     Trust income 

 

116,915

 

113,820

 

3

     

471,852

 

332,385

 

42

 

     Brokerage services income 

 

14,872

 

13,341

 

11

     

59,059

 

56,470

 

5

 

     Trading account and foreign exchange gains 

 

10,356

 

7,971

 

30

     

35,634

 

27,224

 

31

 

     Gain on bank investment securities 

 

-

 

1

 

-

     

9

 

150,187

 

-

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

(14,491)

 

(24,822)

 

-

     

(47,822)

 

(77,035)

 

-

 

     Equity in earnings of Bayview Lending Group LLC 

 

(4,941)

 

(5,419)

 

-

     

(21,511)

 

(24,231)

 

-

 

     Other revenues from operations 

 

101,543

 

148,918

 

-32

     

374,287

 

496,796

 

-25

 

          Total other income 

 

453,164

 

398,454

 

14

     

1,667,270

 

1,582,912

 

5

 
                               

Other expense

                             

     Salaries and employee benefits 

 

323,010

 

312,528

 

3

     

1,314,540

 

1,203,993

 

9

 

     Equipment and net occupancy 

 

62,884

 

65,080

 

-3

     

257,551

 

249,514

 

3

 

     Printing, postage and supplies 

 

10,417

 

11,399

 

-9

     

41,929

 

40,917

 

2

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

13,865

 

17,162

 

-19

     

60,631

 

61,617

 

-2

 

     FDIC assessments 

 

23,398

 

27,826

 

-16

     

101,110

 

100,230

 

1

 

     Other costs of operations 

 

192,572

 

305,588

 

-37

     

733,499

 

821,797

 

-11

 

          Total other expense 

 

626,146

 

739,583

 

-15

     

2,509,260

 

2,478,068

 

1

 
                               

Income before income taxes 

 

445,440

 

202,902

 

120

     

1,552,526

 

1,224,600

 

27

 
                               

Applicable income taxes 

 

149,247

 

55,162

 

171

     

523,028

 

365,121

 

43

 
                               

Net income 

$

296,193

 

147,740

 

100

%

 

$

1,029,498

 

859,479

 

20

%

                               

 

 

M&T BANK CORPORATION

                     

Condensed Consolidated Statement of Income, Five Quarter Trend

         
                               
   

Three months ended

 
   

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

Dollars in thousands

 

2012

 

2012

 

2012

 

2012

 

2011

                               

Interest income 

$

745,353

   

744,851

   

737,386

   

714,095

   

716,000

 

Interest expense 

 

77,931

   

82,129

   

89,403

   

93,706

   

97,969

 
                               

Net interest income 

 

667,422

   

662,722

   

647,983

   

620,389

   

618,031

 
                               

Provision for credit losses 

 

49,000

   

46,000

   

60,000

   

49,000

   

74,000

 
                               

Net interest income after

                             

   provision for credit losses

 

618,422

   

616,722

   

587,983

   

571,389

   

544,031

 
                               

Other income

                             

     Mortgage banking revenues 

 

116,546

   

106,812

   

69,514

   

56,192

   

40,573

 

     Service charges on deposit accounts 

 

112,364

   

114,463

   

110,982

   

108,889

   

104,071

 

     Trust income  

 

116,915

   

115,709

   

122,275

   

116,953

   

113,820

 

     Brokerage services income 

 

14,872

   

14,114

   

16,172

   

13,901

   

13,341

 

     Trading account and foreign exchange gains 

 

10,356

   

8,469

   

6,238

   

10,571

   

7,971

 

     Gain (loss) on bank investment securities 

 

-

   

372

   

(408)

   

45

   

1

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

(14,491)

   

(5,672)

   

(16,173)

   

(11,486)

   

(24,822)

 

     Equity in earnings of Bayview Lending Group LLC 

 

(4,941)

   

(5,183)

   

(6,635)

   

(4,752)

   

(5,419)

 

     Other revenues from operations 

 

101,543

   

96,649

   

89,685

   

86,410

   

148,918

 

          Total other income 

 

453,164

   

445,733

   

391,650

   

376,723

   

398,454

 
                               

Other expense

                             

     Salaries and employee benefits 

 

323,010

   

321,746

   

323,686

   

346,098

   

312,528

 

     Equipment and net occupancy 

 

62,884

   

64,248

   

65,376

   

65,043

   

65,080

 

     Printing, postage and supplies 

 

10,417

   

8,272

   

11,368

   

11,872

   

11,399

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

13,865

   

14,085

   

15,907

   

16,774

   

17,162

 

     FDIC assessments 

 

23,398

   

23,801

   

24,962

   

28,949

   

27,826

 

     Other costs of operations 

 

192,572

   

183,875

   

186,093

   

170,959

   

305,588

 

          Total other expense 

 

626,146

   

616,027

   

627,392

   

639,695

   

739,583

 
                               

Income before income taxes 

 

445,440

   

446,428

   

352,241

   

308,417

   

202,902

 
                               

Applicable income taxes 

 

149,247

   

152,966

   

118,861

   

101,954

   

55,162