Enable Java Script

Either your browser does not support JavaScript, or you have JavaScript disabled.
You must have a JavaScript-enabled browser to use this site.

Microsoft Internet Explorer

To turn on JavaScript in Internet Explorer, follow these steps:

  1. On the Tools menu, click Internet Options, and then click the Security tab.
  2. Click the Web content zone that you are using (for example, click Local Intranet),
    and then click Custom Level button.
  3. Locate Active scripting under Scripting settings. Click to select the Enable radio button.
  4. Click OK button on Security Settings and Internet Options windows to save your changes.

To download Internet Explorer 7, click here.

Firefox

To turn on JavaScript in Firefox, follow these steps:

  1. On the Tools menu, click Options.., and then click the Content tab.
  2. Click to select the Enable JavaScript check box.
  3. Click OK button to save the setting.

To download Firefox 2, click here.

Safari

To turn on JavaScript in Safari, follow these steps:

  1. Open Safari
  2. On the Safari menu, click on Preferences.
  3. Click the Security icon.
  4. Click on Enable JavaScript next to the Web Content section if it is not checked
  5. Close the Preferences window
  6. Close and restart Safari.

Opera 9.xx series

To turn on JavaScript in Opera 9.xx series, follow these steps:

  1. Open Opera.
  2. On the Tools menu, click Preferences.
  3. Click Content in the Preferences list.
  4. Check the box next to Enable JavaScript.
  5. Click the JavaScript Options button to open the JavaScript Options box.
  6. Check the boxes that you want to allow.
  7. Click OK.
  8. Click OK.

Google Chrome(v0.4.154.23)

To turn on JavaScript in Google Chrome(v0.4.154.23), follow these steps:

  1. First close any open Chrome windows.
  2. Right click on a blank area of your Desktop.
  3. Select New.
  4. Create a new Shortcut with the following in the "Type the location of the item:" text box:
    • For Windows Vista:
      %userprofile%\Local\Google\Chrome\Application\chrome.exe -enable-javascript
    • For Windows XP:
      "%userprofile%\Local Settings\Application Data\Google\chrome.exe" -enable-javascript
      Note: You'll have to enclose the file path for Windows XP in quotes due to there being spaces in it.
M&T Bank Corporation Announces Second Quarter Profits
PR Newswire
BUFFALO, N.Y.

BUFFALO, N.Y., July 17, 2013 -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2013.

GAAP Results of Operations.  Diluted  earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2013 were $2.55, up 49% from $1.71 in the year-earlier quarter and 29% higher than $1.98 in the initial 2013 quarter.  GAAP-basis net income in the recent quarter totaled $348 million, 49% higher than $233 million in the second quarter of 2012 and 27% above $274 million in the first quarter of 2013.  GAAP-basis net income for the second quarter of 2013 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.68% and 13.78%, respectively, improved from 1.17% and 10.12%, respectively, in the second quarter of 2012 and from 1.36% and 11.10%, respectively, in the initial 2013 quarter.

Reflected in the recent quarter's results were certain noteworthy items.  M&T sold substantially all of its privately issued collateralized mortgage obligations that were in the available-for-sale investment securities portfolio for an after-tax loss of $28 million, or $.22 per diluted common share.  In addition, M&T's holdings of Visa and MasterCard shares were sold for an after-tax gain of $62 million, or $.48 per diluted common share.  Finally, during the recent quarter M&T reversed an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust, resulting in a reduction of expenses having an after-tax impact of $15 million, or $.12 of diluted earnings per common share.

Reflecting on the recent quarter's performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, commented, "Earnings quality in the second quarter continued to be supported by improved net interest income and strong mortgage banking revenues.  These factors combined with above average credit quality.  During the quarter, we took advantage of market conditions to reduce our exposure to private label mortgage-backed securities in favor of more liquid Ginnie Mae securities and we also liquidated our positions in Visa and MasterCard stock, for which the value had risen significantly.  These actions combined with strong earnings resulted in a 62 basis point increase on our Tier 1 common ratio from March 31, while improving M&T's liquidity profile.  All in all, we are quite pleased with our second quarter results."

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 $2.65 in the recent quarter, compared with $1.82 and $2.06 in the second quarter of 2012 and the first quarter of 2013, respectively.  Net operating income during the second quarter of 2013 was $361 million, compared with $247 million in the year-earlier quarter and $285 million in the initial 2013 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 1.81% and 22.72%, respectively, compared with 1.30% and 18.54% in the second quarter of 2012 and 1.48% and 18.71% in the first quarter of 2013.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $684 million in the second quarter of 2013, up 3% from $663 million in the immediately preceding quarter.  The net interest margin was 3.71% in each of the two most recent quarters.  The recent quarter's net interest margin reflects an additional $13 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 previously expected repayments led to a reduction in estimated expected credit losses on acquired loans of $130 million, resulting in a 2% increase in projected cash flows that will be recognized as interest income over the remaining terms of those loans.  Taxable-equivalent net interest income in the recent quarter was up 4% from $655 million in the second quarter of 2012.  That improvement reflects a $3.5 billion increase in average earning assets, including a $4.2 billion or 7% rise in average loans outstanding, partially offset by a 3 basis point decline in the net interest margin.

 

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $57 million in the recent quarter, compared with $60 million in the year-earlier quarter and $38 million in the initial 2013 quarter.  Net charge-offs of loans were $57 million during the recent quarter, compared with $52 million and $37 million in the second quarter of 2012 and the first quarter of 2013, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .35% and .34% in the second quarters of 2013 and 2012, respectively, and .23% in the initial quarter of 2013.

Loans classified as nonaccrual declined to $965 million, or 1.46% of total loans outstanding at June 30, 2013, improved from $968 million or 1.54% a year earlier and $1.05 billion or 1.60% at March 31, 2013.  Assets taken in foreclosure of defaulted loans declined to $82 million at June 30, 2013, improved from $116 million at June 30, 2012 and $96 million at March 31, 2013.

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.  As a result of those analyses, the allowance totaled $927 million at each of March 31 and June 30, 2013, compared with $917 million at June 30, 2012.  The allowance expressed as a percentage of outstanding loans was 1.41% at the two most recent quarter-ends, compared with 1.46% at June 30, 2012. 

Noninterest Income and Expense.  Noninterest income totaled $509 million in the second quarter of 2013, compared with $392 million and $433 million in the year-earlier quarter and the first quarter of 2013, respectively.  Reflected in those amounts were net pre-tax gains from investment securities of $56 million in the second quarter of 2013 and net pre-tax losses on investment securities of $17 million and $10 million in the second quarter of 2012 and the first quarter of 2013, respectively.  The net securities gains in the recent quarter resulted from $103 million of gains realized on the sale of M&T's holdings of shares of Visa and MasterCard, offset in part by $46 million of losses recognized from the sale of M&T's privately issued collateralized mortgage obligations that had been held in its available-for-sale investment securities portfolio.  The investment securities were sold as a result of favorable market conditions, thereby enhancing M&T's liquidity and capital.  The net securities losses in 2012's second quarter and in the initial 2013 quarter were predominantly due to other-than-temporary impairment charges related to a subset of those same privately issued collateralized mortgage obligations. 

Excluding gains and losses from investment securities in all periods, noninterest income in the second quarter of 2013 aggregated $452 million, up from $408 million in the year-earlier quarter and $443 million in the initial quarter of 2013.  The most significant factor in the recent quarter's improvement as compared with the year-earlier quarter was higher mortgage banking revenues. Relative to 2013's first quarter, declines in residential mortgage banking revenues due to lower gain on sale margins were largely offset by higher commercial mortgage banking revenues.

Noninterest expense in the second quarter of 2013 totaled $599 million, down from $627 million in the year-earlier quarter and $636 million in the first quarter of 2013.  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 $578 million in the recent quarter, compared with $604 million in the second quarter of 2012 and $618 million in 2013's initial quarter.  Factors contributing to the lower level of operating expenses in the recent quarter as compared with the year-earlier quarter were the reversal of an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust and declines in FDIC assessments and expenses related to foreclosed assets, partially offset by higher costs for professional services.  As compared with the first quarter of 2013, 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, and the favorable resolution of the Wilmington Trust-related compensation contingency, partially offset by higher costs for professional services and advertising and promotion. 

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), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 50.9% in the second quarter of 2013, compared with 56.9% in the year-earlier period and 55.9% in the first quarter of 2013. 

Balance Sheet.  M&T had total assets of $83.2 billion at June 30, 2013, compared with $80.8 billion at June 30, 2012.  Loans and leases, net of unearned discount, increased $3.1 billion or 5% to $66.0 billion at the recent quarter-end, from $62.9 billion a year earlier.  Total deposits rose 5% to $65.7 billion at June 30, 2013 from $62.5 billion at June 30, 2012.

Total shareholders' equity increased 11% to $10.7 billion at June 30, 2013 from $9.6 billion a year earlier, representing 12.88% and 11.92%, respectively, of total assets.  Common shareholders' equity was $9.8 billion, or $75.98 per share, at June 30, 2013, compared with $8.8 billion, or $69.15 per share, at June 30, 2012.  Tangible equity per common share rose 19% to $48.26 at the recent quarter-end from $40.52 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $73.99 and $46.11, respectively, at March 31, 2013.  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 7.85% at June 30, 2013, improved from 6.65% and 7.51% at June 30, 2012 and March 31, 2013, respectively. M&T's estimated Tier 1 common ratio, a regulatory capital measure, was 8.55% at June 30, 2013, improved from 7.15% and 7.93% at June 30, 2012 and March 31, 2013, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276.  International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID# 12309206. 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 through Saturday, July 20, 2013 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 12309206.  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.

 

M&T BANK CORPORATION

Financial Highlights

     

Three months ended

           

Six months ended

     

Amounts in thousands,

   

June 30

           

June 30

     

 except per share

   

2013

 

2012

 

Change

       

2013

 

2012

 

Change

 
                                   

Performance

                                 
                                   

Net income 

 

$

348,466

 

233,380

 

49

%

 

$

622,579

 

439,843

 

42

%

Net income available to common shareholders 

   

328,557

 

214,716

 

53

%

   

583,633

 

402,958

 

45

%

                                   

Per common share:

                                 

  Basic earnings 

 

$

2.56

 

1.71

 

50

%

 

$

4.56

 

3.21

 

42

%

  Diluted earnings 

   

2.55

 

1.71

 

49

%

   

4.53

 

3.20

 

42

%

  Cash dividends 

 

$

.70

 

.70

 

-

     

$

1.40

 

1.40

 

-

 
                                   

Common shares outstanding:

                                 

  Average - diluted (1) 

   

129,017

 

125,897

 

2

%

   

128,828

 

125,756

 

2

%

  Period end (2) 

   

129,464

 

126,645

 

2

%

   

129,464

 

126,645

 

2

%

                                   

Return on (annualized):

                                 

  Average total assets 

   

1.68

%

1.17

%

         

1.52

%

1.12

%

   

  Average common shareholders' equity 

   

13.78

%

10.12

%

         

12.47

%

9.58

%

   
                                   

Taxable-equivalent net interest income 

 

$

683,804

 

654,628

 

4

%

 

$

1,346,304

 

1,281,722

 

5

%

                                   

Yield on average earning assets 

   

4.10

%

4.25

%

         

4.12

%

4.24

%

   

Cost of interest-bearing liabilities 

   

.62

%

.76

%

         

.63

%

.78

%

   

Net interest spread 

   

3.48

%

3.49

%

         

3.49

%

3.46

%

   

Contribution of interest-free funds 

   

.23

%

.25

%

         

.22

%

.25

%

   

Net interest margin  

   

3.71

%

3.74

%

         

3.71

%

3.71

%

   
                                   

Net charge-offs to average total 

                                 

  net loans (annualized) 

   

.35

%

.34

%

         

.29

%

.33

%

   
                                   

Net operating results (3)

                                 
                                   

Net operating income 

 

$

360,734

 

247,433

 

46

%

 

$

645,870

 

465,793

 

39

%

Diluted net operating earnings per common share 

   

2.65

 

1.82

 

46

%

   

4.71

 

3.41

 

38

%

Return on (annualized):

                                 

  Average tangible assets 

   

1.81

%

1.30

%

         

1.65

%

1.24

%

   

  Average tangible common equity 

   

22.72

%

18.54

%

         

20.76

%

17.68

%

   

Efficiency ratio 

   

50.92

%

56.86

%

         

53.36

%

58.92

%

   
                                   
                                   
                                   
     

At  June 30

                       

Loan quality

   

2013

 

2012

 

Change

                   
                                   

Nonaccrual loans 

 

$

964,906

 

968,328

 

-

                   

Real estate and other foreclosed assets 

   

82,088

 

115,580

 

-29

%

               

  Total nonperforming assets 

 

$

1,046,994

 

1,083,908

 

-3

%

               
                                   

Accruing loans past due 90 days or more (4) 

 

$

340,467

 

274,598

 

24

%

               
                                   

Government guaranteed loans included in totals

                                 

  above:

                                 

  Nonaccrual loans 

 

$

69,508

 

48,712

 

43

%

               

  Accruing loans past due 90 days or more 

   

315,281

 

255,495

 

23

%

               
                                   

Renegotiated loans 

 

$

263,351

 

267,111

 

-1

%

               
                                   

Acquired accruing loans past due 90 

                                 

  days or more (5) 

 

$

155,686

 

162,487

 

-4

%

               
                                   

Purchased impaired loans (6):

                                 

  Outstanding customer balance 

 

$

725,196

 

1,037,458

 

-30

%

               

  Carrying amount 

   

394,697

 

560,700

 

-30

%

               
                                   

Nonaccrual loans to total net loans 

   

1.46

%

1.54

%

                     
                                   

Allowance for credit losses to total loans 

   

1.41

%

1.46

%

                     
                                   
                                   

(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

     

2013

 

2013

   

2012

   

2012

 

2012

 
                                     

Performance

                                   
                                     

Net income 

   

$

348,466

   

274,113

   

296,193

   

293,462

   

233,380

   

Net income available to common shareholders 

     

328,557

   

255,096

   

276,605

   

273,896

   

214,716

   
                                     

Per common share:

                                   

  Basic earnings 

   

$

2.56

   

2.00

   

2.18

   

2.18

   

1.71

   

  Diluted earnings 

     

2.55

   

1.98

   

2.16

   

2.17

   

1.71

   

  Cash dividends 

   

$

.70

   

.70

   

.70

   

.70

   

.70

   
                                     

Common shares outstanding:

                                   

  Average - diluted (1) 

     

129,017

   

128,636

   

127,800

   

126,292

   

125,897

   

  Period end (2) 

     

129,464

   

128,999

   

128,234

   

127,461

   

126,645

   
                                     

Return on (annualized):

                                   

  Average total assets  

     

1.68

%

 

1.36

%

 

1.45

%

 

1.45

%

 

1.17

%

 

  Average common shareholders' equity 

     

13.78

%

 

11.10

%

 

12.10

%

 

12.40

%

 

10.12

%

 
                                     

Taxable-equivalent net interest income 

   

$

683,804

   

662,500

   

673,929

   

669,256

   

654,628

   
                                     

Yield on average earning assets 

     

4.10

%

 

4.13

%

 

4.17

%

 

4.23

%

 

4.25

%

 

Cost of interest-bearing liabilities 

     

.62

%

 

.64

%

 

.67

%

 

.71

%

 

.76

%

 

Net interest spread 

     

3.48

%

 

3.49

%

 

3.50

%

 

3.52

%

 

3.49

%

 

Contribution of interest-free funds 

     

.23

%

 

.22

%

 

.24

%

 

.25

%

 

.25

%

 

Net interest margin 

     

3.71

%

 

3.71

%

 

3.74

%

 

3.77

%

 

3.74

%

 
                                     

Net charge-offs to average total 

                                   

  net loans (annualized) 

     

.35

%

 

.23

%

 

.27

%

 

.26

%

 

.34

%

 
                                     

Net operating results (3)

                                   
                                     

Net operating income 

   

$

360,734

   

285,136

   

304,657

   

302,060

   

247,433

   

Diluted net operating earnings per common share 

     

2.65

   

2.06

   

2.23

   

2.24

   

1.82

   

Return on (annualized):

                                   

  Average tangible assets 

     

1.81

%

 

1.48

%

 

1.56

%

 

1.56

%

 

1.30

%

 

  Average tangible common equity 

     

22.72

%

 

18.71

%

 

20.46

%

 

21.53

%

 

18.54

%

 

Efficiency ratio 

     

50.92

%

 

55.88

%

 

53.63

%

 

53.73

%

 

56.86

%

 
                                     
                                     
                                     
             
       

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

Loan quality

     

2013

 

2013

 

2012

 

2012

 

2012

 
                                     

Nonaccrual loans 

   

$

964,906

   

1,052,794

   

1,013,176

   

925,231

   

968,328

   

Real estate and other foreclosed assets 

     

82,088

   

95,680

   

104,279

   

112,160

   

115,580

   

  Total nonperforming assets 

   

$

1,046,994

   

1,148,474

   

1,117,455

   

1,037,391

   

1,083,908

   
                                     

Accruing loans past due 90 days or more (4) 

   

$

340,467

   

331,283

   

358,397

   

309,420

   

274,598

   
                                     

Government guaranteed loans included in totals

                                   

  above:

                                   

  Nonaccrual loans 

   

$

69,508

   

63,385

   

57,420

   

54,583

   

48,712

   

  Accruing loans past due 90 days or more 

     

315,281

   

311,579

   

316,403

   

280,410

   

255,495

   
                                     

Renegotiated loans 

   

$

263,351

   

272,285

   

271,971

   

266,526

   

267,111

   
                                     

Acquired accruing loans past due 90 

                                   

  days or more (5) 

   

$

155,686

   

157,068

   

166,554

   

161,424

   

162,487

   
                                     

Purchased impaired loans (6):

                                   

  Outstanding customer balance 

   

$

725,196

   

790,048

   

828,571

   

978,731

   

1,037,458

   

  Carrying amount 

     

394,697

   

425,232

   

447,114

   

528,001

   

560,700

   
                                     

Nonaccrual loans to total net loans 

     

1.46

%

 

1.60

%

 

1.52

%

 

1.44

%

 

1.54

%

 
                                     

Allowance for credit losses to total loans 

     

1.41

%

 

1.41

%

 

1.39

%

 

1.44

%

 

1.46

%

 
                                     
                                     

(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

 

2013

 

2012

 

Change

     

2013

 

2012

 

Change

 
                               

Interest income 

$

750,207

 

737,386

 

2

%

 

$

1,480,182

 

1,451,481

 

2

%

Interest expense 

 

72,620

 

89,403

 

-19

     

146,545

 

183,109

 

-20

 
                               

Net interest income 

 

677,587

 

647,983

 

5

     

1,333,637

 

1,268,372

 

5

 
                               

Provision for credit losses 

 

57,000

 

60,000

 

-5

     

95,000

 

109,000

 

-13

 
                               

Net interest income after

                             

   provision for credit losses 

 

620,587

 

587,983

 

6

     

1,238,637

 

1,159,372

 

7

 
                               

Other income

                             

     Mortgage banking revenues 

 

91,262

 

69,514

 

31

     

184,365

 

125,706

 

47

 

     Service charges on deposit accounts 

 

111,717

 

110,982

 

1

     

222,666

 

219,871

 

1

 

     Trust income  

 

124,728

 

122,275

 

2

     

246,331

 

239,228

 

3

 

     Brokerage services income 

 

17,258

 

16,172

 

7

     

32,969

 

30,073

 

10

 

     Trading account and foreign exchange gains 

 

9,224

 

6,238

 

48

     

18,151

 

16,809

 

8

 

     Gain (loss) on bank investment securities 

 

56,457

 

(408)

 

-

     

56,457

 

(363)

 

-

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

-

 

(16,173)

 

-

     

(9,800)

 

(27,659)

 

-

 

     Equity in earnings of Bayview Lending Group LLC 

 

(2,453)

 

(6,635)

 

-

     

(6,109)

 

(11,387)

 

-

 

     Other revenues from operations 

 

100,496

 

89,685

 

12

     

196,541

 

176,095

 

12

 

          Total other income 

 

508,689

 

391,650

 

30

     

941,571

 

768,373

 

23

 
                               

Other expense

                             

     Salaries and employee benefits

 

323,136

 

323,686

 

-

     

679,687

 

669,784

 

1

 

     Equipment and net occupancy 

 

64,278

 

65,376

 

-2

     

129,437

 

130,419

 

-1

 

     Printing, postage and supplies 

 

10,298

 

11,368

 

-9

     

20,997

 

23,240

 

-10

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

12,502

 

15,907

 

-21

     

25,845

 

32,681

 

-21

 

     FDIC assessments 

 

17,695

 

24,962

 

-29

     

37,133

 

53,911

 

-31

 

     Other costs of operations 

 

170,682

 

186,093

 

-8

     

341,088

 

357,052

 

-4

 

          Total other expense 

 

598,591

 

627,392

 

-5

     

1,234,187

 

1,267,087

 

-3

 
                               

Income before income taxes 

 

530,685

 

352,241

 

51

     

946,021

 

660,658

 

43

 
                               

Applicable income taxes 

 

182,219

 

118,861

 

53

     

323,442

 

220,815

 

46

 
                               

Net income 

$

348,466

 

233,380

 

49

%

 

$

622,579

 

439,843

 

42

%

 

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

 

2013

   

2013

   

2012

   

2012

   

2012

                             

Interest income 

$

750,207

   

729,975

   

745,353

   

744,851

   

737,386

Interest expense 

 

72,620

   

73,925

   

77,931

   

82,129

   

89,403

                             

Net interest income 

 

677,587

   

656,050

   

667,422

   

662,722

   

647,983

                             

Provision for credit losses 

 

57,000

   

38,000

   

49,000

   

46,000

   

60,000

                             

Net interest income after

                           

   provision for credit losses 

 

620,587

   

618,050

   

618,422

   

616,722

   

587,983

                             

Other income

                           

     Mortgage banking revenues

 

91,262

   

93,103

   

116,546

   

106,812

   

69,514

     Service charges on deposit accounts 

 

111,717

   

110,949

   

112,364

   

114,463

   

110,982

     Trust income  

 

124,728

   

121,603

   

116,915

   

115,709

   

122,275

     Brokerage services income 

 

17,258

   

15,711

   

14,872

   

14,114

   

16,172

     Trading account and foreign exchange gains 

 

9,224

   

8,927

   

10,356

   

8,469

   

6,238

     Gain (loss) on bank investment securities 

 

56,457

   

-

   

-

   

372

   

(408)

     Other-than-temporary impairment losses 

                           

        recognized in earnings 

 

-

   

(9,800)

   

(14,491)

   

(5,672)

   

(16,173)

     Equity in earnings of Bayview Lending Group LLC 

 

(2,453)

   

(3,656)

   

(4,941)

   

(5,183)

   

(6,635)

     Other revenues from operations 

 

100,496

   

96,045

   

101,543

   

96,649

   

89,685

          Total other income 

 

508,689

   

432,882

   

453,164

   

445,733

   

391,650

                             

Other expense

                           

     Salaries and employee benefits 

 

323,136

   

356,551

   

323,010

   

321,746

   

323,686

     Equipment and net occupancy 

 

64,278

   

65,159

   

62,884

   

64,248

   

65,376

     Printing, postage and supplies 

 

10,298

   

10,699

   

10,417

   

8,272

   

11,368

     Amortization of core deposit and other 

                           

        intangible assets 

 

12,502

   

13,343

   

13,865

   

14,085

   

15,907

     FDIC assessments 

 

17,695

   

19,438

   

23,398

   

23,801

   

24,962

     Other costs of operations  

 

170,682

   

170,406

   

192,572

   

183,875

   

186,093

          Total other expense 

 

598,591

   

635,596

   

626,146

   

616,027

   

627,392

                             

Income before income taxes 

 

530,685

   

415,336

   

445,440

   

446,428

   

352,241

                             

Applicable income taxes 

 

182,219

   

141,223

   

149,247

   

152,966

   

118,861

                             

Net income 

$

348,466

   

274,113

   

296,193

   

293,462

   

233,380

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

                 
     

June 30

     

Dollars in thousands

   

2013

 

2012

 

Change

 
                 

ASSETS

               
                 

Cash and due from banks 

 

$

1,350,015

 

1,421,831

 

-5

%

                 

Interest-bearing deposits at banks 

   

2,555,354

 

1,069,717

 

139

 
                 

Federal funds sold and agreements

               

  to resell securities 

   

124,487

 

1,000

 

-

 
                 

Trading account assets 

   

378,235

 

544,938

 

-31

 
                 

Investment securities 

   

5,210,526

 

7,057,300

 

-26

 
                 

Loans and leases:

               
                 

   Commercial, financial, etc. 

   

18,021,812

 

16,395,587

 

10

 

   Real estate - commercial 

   

26,116,394

 

24,898,707

 

5

 

   Real estate - consumer 

   

10,399,749

 

9,811,525

 

6

 

   Consumer 

   

11,433,911

 

11,745,453

 

-3

 

     Total loans and leases, net of unearned discount 

   

65,971,866

 

62,851,272

 

5

 

        Less: allowance for credit losses 

   

927,065

 

917,028

 

1

 
                 

  Net loans and leases 

   

65,044,801

 

61,934,244

 

5

 
                 

Goodwill 

   

3,524,625

 

3,524,625

 

-

 
                 

Core deposit and other intangible assets 

   

89,918

 

143,713

 

-37

 
                 

Other assets 

   

4,951,044

 

5,110,210

 

-3

 
                 

  Total assets 

 

$

83,229,005

 

80,807,578

 

3

%

                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits 

 

$

24,074,815

 

22,854,794

 

5

%

                 

Interest-bearing deposits 

   

41,302,212

 

39,327,849

 

5

 
                 

Deposits at Cayman Islands office 

   

284,443

 

366,164

 

-22

 
                 

  Total deposits 

   

65,661,470

 

62,548,807

 

5

 
                 

Short-term borrowings 

   

307,740

 

975,575

 

-68

 
                 

Accrued interest and other liabilities 

   

1,421,067

 

1,965,421

 

-28

 
                 

Long-term borrowings 

   

5,122,398

 

5,687,868

 

-10

 
                 

  Total liabilities 

   

72,512,675

 

71,177,671

 

2

 
                 

Shareholders' equity:

               
                 

   Preferred 

   

876,796

 

868,433

 

1

 

   Common (1)  

   

9,839,534

 

8,761,474

 

12

 
                 

     Total shareholders' equity 

   

10,716,330

 

9,629,907

 

11

 
                 

  Total liabilities and shareholders' equity 

 

$

83,229,005

 

80,807,578

 

3

%

                 
                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $227.8 million at June 30, 2013 and $277.8 million at June 30, 2012.

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

       
     

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

Dollars in thousands

   

2013

   

2013

   

2012

   

2012

   

2012

                               

ASSETS

                             
                               

Cash and due from banks 

 

$

1,350,015

   

1,231,091

   

1,983,615

   

1,622,928

   

1,421,831

                               

Interest-bearing deposits at banks 

   

2,555,354

   

1,304,770

   

129,945

   

411,994

   

1,069,717

                               

Federal funds sold and agreements

                             

  to resell securities 

   

124,487

   

594,976

   

3,000

   

-

   

1,000

                               

Trading account assets 

   

378,235

   

420,144

   

488,966

   

526,844

   

544,938

                               

Investment securities 

   

5,210,526

   

5,660,831

   

6,074,361

   

6,624,004

   

7,057,300

                               

Loans and leases:

                             
                               

   Commercial, financial, etc. 

   

18,021,812

   

17,469,138

   

17,776,953

   

16,704,575

   

16,395,587

   Real estate - commercial 

   

26,116,394

   

25,944,819

   

25,993,790

   

24,970,416

   

24,898,707

   Real estate - consumer 

   

10,399,749

   

11,094,577

   

11,240,837

   

10,808,220

   

9,811,525

   Consumer 

   

11,433,911

   

11,415,733

   

11,559,377

   

11,628,744

   

11,745,453

     Total loans and leases, net of unearned discount 

   

65,971,866

   

65,924,267

   

66,570,957

   

64,111,955

   

62,851,272

        Less: allowance for credit losses 

   

927,065

   

927,117

   

925,860

   

921,223

   

917,028

                               

  Net loans and leases 

   

65,044,801

   

64,997,150

   

65,645,097

   

63,190,732

   

61,934,244

                               

Goodwill 

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

                               

Core deposit and other intangible assets 

   

89,918

   

102,420

   

115,763

   

129,628

   

143,713

                               

Other assets 

   

4,951,044

   

4,975,950

   

5,043,431

   

5,054,478

   

5,110,210

                               

  Total assets 

 

$

83,229,005

   

82,811,957

   

83,008,803

   

81,085,233

   

80,807,578

                               
                               

LIABILITIES AND SHAREHOLDERS' EQUITY

                             
                               

Noninterest-bearing deposits 

 

$

24,074,815

   

23,603,971

   

24,240,802

   

22,968,401

   

22,854,794

                               

Interest-bearing deposits 

   

41,302,212

   

41,219,679

   

40,325,932

   

39,636,104

   

39,327,849

                               

Deposits at Cayman Islands office 

   

284,443

   

266,076

   

1,044,519

   

1,402,753

   

366,164

                               

  Total deposits 

   

65,661,470

   

65,089,726

   

65,611,253

   

64,007,258

   

62,548,807

                               

Short-term borrowings 

   

307,740

   

374,593

   

1,074,482

   

592,154

   

975,575

                               

Accrued interest and other liabilities 

   

1,421,067

   

1,530,118

   

1,512,717

   

1,570,758

   

1,965,421

                               

Long-term borrowings 

   

5,122,398

   

5,394,563

   

4,607,758

   

4,969,536

   

5,687,868

                               

  Total liabilities

   

72,512,675

   

72,389,000

   

72,806,210

   

71,139,706

   

71,177,671

                               

Shareholders' equity:

                             
                               

   Preferred

   

876,796

   

874,627

   

872,500

   

870,416

   

868,433

   Common (1) 

   

9,839,534

   

9,548,330

   

9,330,093

   

9,075,111

   

8,761,474

                               

     Total shareholders' equity 

   

10,716,330

   

10,422,957

   

10,202,593

   

9,945,527

   

9,629,907

                               

  Total liabilities and shareholders' equity 

 

$

83,229,005

   

82,811,957

   

83,008,803

   

81,085,233

   

80,807,578

                               
                               

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $227.8 million at June 30, 2013, $226.0 million at March 31, 2013, $240.3 million at December 31, 2012, $230.1 million at September 30, 2012 and $277.8 million at June 30, 2012.

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

 and Annualized Taxable-equivalent Rates

 
     

Three months ended

 

Change in balance

   

 

Six months ended

     
     

June 30,

 

June 30,

 

March 31,

 

June 30, 2013 from

   

 

June 30

     

Dollars in millions

   

2013

 

2012

 

2013

 

June 30,

 

March 31,

   

2013

 

2012

 

Change in

 
     

Balance

Rate

 

Balance

Rate

 

Balance

Rate

 

2012

 

2013

   

Balance

Rate

 

Balance 

Rate

 

balance

 

ASSETS

                                                   
                                                     

Interest-bearing deposits at banks 

 

$

2,403

.24

%

1,247

.25

%

527

.21

%

93

%

 

356

%

 

$

1,470

.24

%

774

.25

%

90

%

                                                     

Federal funds sold and agreements

                                                   

  to resell securities 

   

199

.09

 

6

.56

 

81

.13

 

   

144

     

141

.10

 

4

.54

 

 
                                                     

Trading account assets 

   

86

1.43

 

100

1.64

 

76

3.60

 

-14

   

14

     

81

2.45

 

97

1.61

 

-16

 
                                                     

Investment securities 

   

5,293

3.34

 

7,271

3.47

 

5,803

3.33

 

-27

   

-9

     

5,546

3.33

 

7,389

3.51

 

-25

 
                                                     

Loans and leases, net of unearned discount

                                                   

  Commercial, financial, etc. 

   

17,713

3.61

 

16,104

3.72

 

17,328

3.66

 

10

   

2

     

17,522

3.64

 

15,918

3.72

 

10

 

  Real estate - commercial 

   

26,051

4.72

 

24,737

4.65

 

25,915

4.41

 

5

   

1

     

25,983

4.57

 

24,648

4.54

 

5

 

  Real estate - consumer 

   

10,806

4.05

 

9,216

4.43

 

11,142

4.09

 

17

   

-3

     

10,973

4.07

 

8,751

4.51

 

25

 

  Consumer 

   

11,409

4.58

 

11,769

4.82

 

11,467

4.66

 

-3

   

     

11,438

4.62

 

11,838

4.81

 

-3

 

     Total loans and leases, net 

   

65,979

4.32

 

61,826

4.42

 

65,852

4.24

 

7

   

     

65,916

4.28

 

61,155

4.39

 

8

 
                                                     

  Total earning assets

   

73,960

4.10

 

70,450

4.25

 

72,339

4.13

 

5

   

2

     

73,154

4.12

 

69,419

4.24

 

5

 
                                                     

Goodwill 

   

3,525

   

3,525

   

3,525

   

   

     

3,525

   

3,525

   

 
                                                     

Core deposit and other intangible assets 

   

95

   

151

   

109

   

-37

   

-12

     

102

   

159

   

-36

 
                                                     

Other assets 

   

5,772

   

5,961

   

5,940

   

-3

   

-3

     

5,856

   

5,953

   

-2

 
                                                     

  Total assets 

 

$

83,352

   

80,087

   

81,913

   

4

%

 

2

%

 

$

82,637

   

79,056

   

5

%

                                                     
                                                     
                                                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                   
                                                     

Interest-bearing deposits

                                                   

  NOW accounts 

 

$

941

.14

 

841

.20

 

893

.15

 

12

%

 

5

%

 

$

917

.14

 

834

.17

 

10

%

  Savings deposits 

   

36,459

.15

 

33,286

.20

 

35,394

.16

 

10

   

3

     

35,930

.16

 

32,848

.22

 

9

 

  Time deposits 

   

4,210

.71

 

5,545

.90

 

4,438

.75

 

-24

   

-5

     

4,323

.73

 

5,753

.90

 

-25

 

  Deposits at Cayman Islands office 

   

326

.25

 

457

.20

 

859

.18

 

-29

   

-62

     

591

.20

 

476

.19

 

24

 

     Total interest-bearing deposits 

   

41,936

.21

 

40,129

.30

 

41,584

.22

 

5

   

1

     

41,761

.22

 

39,911

.31

 

5

 
                                                     

Short-term borrowings 

   

343

.11

 

875

.16

 

637

.15

 

-61

   

-46

     

489

.13

 

852

.15

 

-43

 

Long-term borrowings 

   

5,051

4.03

 

6,102

3.90

 

4,688

4.39

 

-17

   

8

     

4,871

4.20

 

6,304

3.84

 

-23

 
                                                     

Total interest-bearing liabilities 

   

47,330

.62

 

47,106

.76

 

46,909

.64

 

   

1

     

47,121

.63

 

47,067

.78

 

 
                                                     

Noninterest-bearing deposits

   

23,744

   

21,401

   

22,956

   

11

   

3

     

23,352

   

20,499

   

14

 
                                                     

Other liabilities 

   

1,715

   

2,044

   

1,726

   

-16

   

-1

     

1,720

   

2,034

   

-15

 
                                                     

  Total liabilities 

   

72,789

   

70,551

   

71,591

   

3

   

2

     

72,193

   

69,600

   

4

 
                                                     

Shareholders' equity 

   

10,563

   

9,536

   

10,322

   

11

   

2

     

10,444

   

9,456

   

10

 
                                                     

  Total liabilities and shareholders' equity 

 

$

83,352

   

80,087

   

81,913

   

4

%

 

2

%

 

$

82,637

   

79,056

   

5

%

                                                     
                                                     

Net interest spread 

     

3.48

   

3.49

   

3.49

                 

3.49

   

3.46

     

Contribution of interest-free funds 

     

.23

   

.25

   

.22

                 

.22

   

.25

     

Net interest margin 

     

3.71

%

 

3.74

%

 

3.71

%

               

3.71

%

 

3.71

%

 

 

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

                       
                       
       

Three months ended

   

Six months ended

       

June 30

   

June 30

       

2013

 

2012

   

2013

 

2012

Income statement data

                 

In thousands, except per share

                 

Net income

                 

Net income 

$

348,466

 

233,380

 

$

622,579

 

439,843

Amortization of core deposit and other

                 

  intangible assets (1) 

 

7,632

 

9,709

   

15,780

 

19,949

Merger-related expenses (1) 

 

4,636

 

4,344

   

7,511

 

6,001

  Net operating income 

$

360,734

 

247,433

 

$

645,870

 

465,793

Earnings per common share

                 

Diluted earnings per common share 

$

2.55

 

1.71

 

$

4.53

 

3.20

Amortization of core deposit and other

                 

  intangible assets (1) 

 

.06

 

.08

   

.12

 

.16

Merger-related expenses (1) 

 

.04

 

.03

   

.06

 

.05

  Diluted net operating earnings per common share 

$

2.65

 

1.82

 

$

4.71

 

3.41

Other expense

                 

Other expense 

$

598,591

 

627,392

 

$

1,234,187

 

1,267,087

Amortization of core deposit and other

                 

  intangible assets  

 

(12,502)

 

(15,907)

   

(25,845)

 

(32,681)

Merger-related expenses  

 

(7,632)

 

(7,151)

   

(12,364)

 

(9,879)

  Noninterest operating expense 

$

578,457

 

604,334

 

$

1,195,978

 

1,224,527

Merger-related expenses

                 

Salaries and employee benefits 

$

300

 

3,024

 

$

836

 

4,997

Equipment and net occupancy 

 

489

 

-

   

690

 

15

Printing, postage and supplies 

 

998

 

-

   

1,825

 

-

Other costs of operations 

 

5,845

 

4,127

   

9,013

 

4,867

  Total 

$

7,632

 

7,151

 

$

12,364

 

9,879

Efficiency ratio

                 

Noninterest operating expense (numerator) 

$

578,457

 

604,334

 

$

1,195,978

 

1,224,527

Taxable-equivalent net interest income 

 

683,804

 

654,628

   

1,346,304

 

1,281,722

Other income 

 

508,689

 

391,650

   

941,571

 

768,373

Less:  Gain (loss) on bank investment securities 

 

56,457

 

(408)

   

56,457

 

(363)

           Net OTTI losses recognized in earnings 

 

-

 

(16,173)

   

(9,800)

 

(27,659)

Denominator 

$

1,136,036

 

1,062,859

 

$

2,241,218

 

2,078,117

Efficiency ratio 

 

50.92%

 

56.86%

   

53.36%

 

58.92%

                       
                       

Balance sheet data

                 

In millions

                 

Average assets

                 

Average assets 

$

83,352

 

80,087

 

$

82,637

 

79,056

Goodwill 

 

(3,525)

 

(3,525)

   

(3,525)

 

(3,525)

Core deposit and other intangible assets 

 

(95)

 

(151)

   

(102)

 

(159)

Deferred taxes 

 

28

 

44

   

30

 

46

  Average tangible assets 

$

79,760

 

76,455

 

$

79,040

 

75,418

Average common equity

                 

Average total equity 

$

10,563

 

9,536

 

$

10,444

 

9,456

Preferred stock 

 

(876)

 

(868)

   

(876)

 

(867)

  Average common equity 

 

9,687

 

8,668

   

9,568

 

8,589

Goodwill 

 

(3,525)

 

(3,525)

   

(3,525)

 

(3,525)

Core deposit and other intangible assets 

 

(95)

 

(151)

   

(102)

 

(159)

Deferred taxes 

 

28

 

44

   

30

 

46

  Average tangible common equity 

$

6,095

 

5,036

 

$

5,971

 

4,951

                       

At end of quarter

                 

Total assets

                 

Total assets 

$

83,229

 

80,808

         

Goodwill 

 

(3,525)

 

(3,525)

         

Core deposit and other intangible assets 

 

(90)

 

(143)

         

Deferred taxes 

 

27

 

41

         

  Total tangible assets 

$

79,641

 

77,181

         

Total common equity

                 

Total equity 

$

10,716

 

9,630

         

Preferred stock 

 

(877)

 

(868)

         

Undeclared dividends - cumulative preferred stock 

 

(3)

 

(4)

         

  Common equity, net of undeclared cumulative

                 

    preferred dividends 

 

9,836

 

8,758

         

Goodwill 

 

(3,525)

 

(3,525)

         

Core deposit and other intangible assets 

 

(90)

 

(143)

         

Deferred taxes 

 

27

 

41

         

  Total tangible common equity 

$

6,248

 

5,131

         
                       
                       

(1) After any related tax effect.

                 

 

M&T BANK CORPORATION

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

                         
                         
                         
       

Three months ended

       

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

       

2013

 

2013

 

2012

 

2012

 

2012

Income statement data

                   

In thousands, except per share

                   

Net income

                   

Net income 

$

348,466

 

274,113

 

296,193

 

293,462

 

233,380

Amortization of core deposit and other

                   

  intangible assets (1) 

 

7,632

 

8,148

 

8,464

 

8,598

 

9,709

Merger-related expenses (1) 

 

4,636

 

2,875

 

-

 

-

 

4,344

  Net operating income 

$

360,734

 

285,136

 

304,657

 

302,060

 

247,433

Earnings per common share

                   

Diluted earnings per common share 

$

2.55

 

1.98

 

2.16

 

2.17

 

1.71

Amortization of core deposit and other

                   

  intangible assets (1) 

 

.06

 

.06

 

.07

 

.07

 

.08

Merger-related expenses (1) 

 

.04

 

.02

 

-

 

-

 

.03

  Diluted net operating earnings per common share 

$

2.65

 

2.06

 

2.23

 

2.24

 

1.82

Other expense

                   

Other expense 

$

598,591

 

635,596

 

626,146

 

616,027

 

627,392

Amortization of core deposit and other

                   

  intangible assets  

 

(12,502)

 

(13,343)

 

(13,865)

 

(14,085)

 

(15,907)

Merger-related expenses  

 

(7,632)

 

(4,732)

 

-

 

-

 

(7,151)

  Noninterest operating expense 

$

578,457

 

617,521

 

612,281

 

601,942

 

604,334

Merger-related expenses

                   

Salaries and employee benefits 

$

300

 

536

 

-

 

-

 

3,024

Equipment and net occupancy 

 

489

 

201

 

-

 

-

 

-

Printing, postage and supplies 

 

998

 

827

 

-

 

-

 

-

Other costs of operations 

 

5,845

 

3,168

 

-

 

-

 

4,127

  Total 

$

7,632

 

4,732

 

-

 

-

 

7,151

Efficiency ratio

                   

Noninterest operating expense (numerator) 

$

578,457

 

617,521

 

612,281

 

601,942

 

604,334

Taxable-equivalent net interest income 

 

683,804

 

662,500

 

673,929

 

669,256

 

654,628

Other income 

 

508,689

 

432,882

 

453,164

 

445,733

 

391,650

Less:  Gain (loss) on bank investment securities 

 

56,457

 

-

 

-

 

372

 

(408)

           Net OTTI losses recognized in earnings

 

-

 

(9,800)

 

(14,491)

 

(5,672)

 

(16,173)

Denominator 

$

1,136,036

 

1,105,182

 

1,141,584

 

1,120,289

 

1,062,859

Efficiency ratio 

 

50.92%

 

55.88%

 

53.63%

 

53.73%

 

56.86%

                         
                         

Balance sheet data

                   

In millions

                   

Average assets

                   

Average assets 

$

83,352

 

81,913

 

81,366

 

80,432

 

80,087

Goodwill 

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

Core deposit and other intangible assets 

 

(95)

 

(109)

 

(122)

 

(136)

 

(151)

Deferred taxes 

 

28

 

32

 

36

 

39

 

44

  Average tangible assets 

$

79,760

 

78,311

 

77,755

 

76,810

 

76,455

Average common equity

                   

Average total equity

$

10,563

 

10,322

 

10,105

 

9,789

 

9,536

Preferred stock 

 

(876)

 

(874)

 

(872)

 

(870)

 

(868)

  Average common equity 

 

9,687

 

9,448

 

9,233

 

8,919

 

8,668

Goodwill 

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

Core deposit and other intangible assets 

 

(95)

 

(109)

 

(122)

 

(136)

 

(151)

Deferred taxes 

 

28

 

32

 

36

 

39

 

44

  Average tangible common equity 

$

6,095

 

5,846

 

5,622

 

5,297

 

5,036

                         

At end of quarter

                   

Total assets

                   

Total assets 

$

83,229

 

82,812

 

83,009

 

81,085

 

80,808

Goodwill 

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

Core deposit and other intangible assets 

 

(90)

 

(102)

 

(116)

 

(129)

 

(143)

Deferred taxes 

 

27

 

30

 

34

 

38

 

41

  Total tangible assets 

$

79,641

 

79,215

 

79,402

 

77,469

 

77,181

Total common equity

                   

Total equity 

$

10,716

 

10,423

 

10,203

 

9,945

 

9,630

Preferred stock 

 

(877)

 

(875)

 

(873)

 

(870)

 

(868)

Undeclared dividends - cumulative preferred stock 

 

(3)

 

(3)

 

(3)

 

(4)

 

(4)

  Common equity, net of undeclared cumulative

                   

    preferred dividends 

 

9,836

 

9,545

 

9,327

 

9,071

 

8,758

Goodwill 

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

Core deposit and other intangible assets 

 

(90)

 

(102)

 

(116)

 

(129)

 

(143)

Deferred taxes

 

27

 

30

 

34

 

38

 

41

  Total tangible common equity

$

6,248

 

5,948

 

5,720

 

5,455

 

5,131

                         
                         

(1) After any related tax effect.

                   

 

INVESTOR CONTACT:

Donald J. MacLeod
(716) 842-5138

MEDIA CONTACT:

C. Michael Zabel
(716) 842-5385