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

BUFFALO, N.Y., April 14, 2014 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2014.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2014 were $1.61, compared with $1.98 in the year-earlier quarter and $1.56 in the fourth quarter of 2013.  GAAP-basis net income in the recent quarter was $229 million, compared with $274 million in the initial 2013 quarter and $221 million in the final quarter of 2013.  Net income for the first three months of 2014 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.07% and 8.22%, respectively, compared with 1.36% and 11.10%, respectively, in the similar 2013 period and 1.03% and 7.99%, respectively, in the fourth quarter of 2013. 

Commenting on M&T's results for the recent quarter, Rene F. Jones, Vice Chairman and Chief Financial Officer, noted, "Revenue trends for the quarter were dampened by lower than normal levels of customer activity during the first two months of the period followed by a rebound in March. Overall, however, the recent quarter was a productive one for M&T.  We received a non-objection to our capital plan and proposed capital actions from the Federal Reserve, successfully accessed the debt and preferred equity markets and continued to progress on our infrastructure projects related to BSA/AML compliance, risk management, and capital plan and stress testing efforts.  While these initiatives contributed to operating expenses that were higher than M&T's normal run rate, they position us well for the future."

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. 

Diluted net operating earnings per common share were $1.66 in the recent quarter, compared with $2.06 and $1.61 in the first and fourth quarters of 2013, respectively.  Net operating income for the first three months of 2014 totaled $235 million.  Net operating income was $285 million and $228 million in the quarters ended March 31, 2013 and December 31, 2013, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.15% and 12.76%, respectively, in the first quarter of 2014.  The comparable returns were 1.48% and 18.71% in the year-earlier quarter and 1.11% and 12.67% in the fourth quarter of 2013.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $662 million in 2014's initial quarter, nearly unchanged from the year-earlier period.  Growth in average earning assets, led by a $3.5 billion rise in average investment securities, was offset by a 19 basis point narrowing of the net interest margin to 3.52% in the recent quarter from 3.71% in the first quarter of 2013.  The increase in investment securities reflects M&T's significant loan securitization activities in 2013.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $32 million in the first quarter of 2014, improved from $38 million and $42 million in the first and fourth quarters of 2013, respectively.  Net charge-offs of loans during the recent quarter were also $32 million, down from $37 million in the first quarter of 2013 and $42 million in the final 2013 quarter.  Net charge-offs expressed as an annualized percentage of average loans outstanding were .20% during the first three months of 2014, compared with .23% and .26% in the first and fourth quarters of 2013, respectively. 

Loans classified as nonaccrual totaled $891 million or 1.39% of total loans outstanding at March 31, 2014, compared with $1.05 billion or 1.60% a year earlier and $874 million or 1.36% at December 31, 2013. Assets taken in foreclosure of defaulted loans continued to decline and totaled $59 million at March 31, 2014, compared with $96 million and $67 million at March 31, 2013 and December 31, 2013, respectively. 

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of determining the allowance for credit losses.  As a result of those analyses, the allowance totaled $917 million or 1.43% of outstanding loans at each of March 31, 2014 and December 31, 2013, compared with $927 million or 1.41% of loans at March 31, 2013. 

Noninterest Income and Expense.  Noninterest income totaled $420 million in the first quarter of 2014, $433 million a year earlier and $446 million in the fourth quarter of 2013.  Noninterest income trends for the recent quarter reflected a slowdown in customer activity across most income categories during January and February. The largest factor contributing to the decline from 2013's first quarter was a $13 million decrease in mortgage banking revenues, resulting from lower originated loan volumes. 

Noninterest expense in the first quarter of 2014 totaled $702 million, compared with $636 million and $743 million in the first and fourth quarters of 2013, respectively.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $692 million in the recently completed quarter, $618 million in the first quarter of 2013 and $733 million in the final 2013 quarter.  The higher level of operating expenses in the recent quarter as compared with the year-earlier period was predominantly the result of expenses for professional services and salaries associated with BSA/AML compliance, capital planning and stress testing, risk management, and other operational initiatives.  The decline in noninterest operating expenses in 2014's first quarter as compared with the final 2013 quarter was largely due to the impact of a $40 million litigation-related accrual in 2013 and lower professional services costs in 2014 that were partially offset by seasonally higher stock-based compensation and employee benefits expenses. 

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 63.9% in the first quarter of 2014, 55.9% in the year-earlier quarter and 65.5% in the fourth quarter of 2013.

Balance Sheet.  M&T had total assets of $88.5 billion at March 31, 2014, up 7% from $82.8 billion a year earlier.  Investment securities at March 31, 2014 were $10.4 billion, up $4.7 billion or 83% from March 31, 2013.  M&T added investment securities through purchase and loan securitization transactions in order to enhance its liquidity position as a result of changing regulatory requirements.  Loans and leases, net of unearned discount, and deposits totaled $64.1 billion and $68.7 billion, respectively, at the recent quarter-end, compared with $65.9 billion and $65.1 billion, respectively, a year earlier. 

Total shareholders' equity increased 14% to $11.9 billion at March 31, 2014 from $10.4 billion at March 31, 2013, representing 13.43% and 12.59%, respectively, of total assets.  During the recent quarter, M&T issued $350 million of 6.45% preferred stock and redeemed a like amount of 8.50% trust preferred securities.  Common shareholders' equity was $10.6 billion, or $81.05 per share at March 31, 2014, up from $9.5 billion, or $73.99 per share, a year earlier.  Tangible equity per common share rose 17% to $53.92 at March 31, 2014 from $46.11 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $79.81 and $52.45, respectively, at December 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 estimated Tier 1 common ratio, a regulatory capital measure, was 9.45% at March 31, 2014, compared with 7.93% and 9.22% at March 31, 2013 and December 31, 2013, respectively.  M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the new capital rules approved in July 2013 on a fully phased-in basis was approximately 9.22% as of March 31, 2014.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 10:00 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 #22896274.  The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available until Thursday, April 17, 2014 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #22896274.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.

M&T is a financial holding company headquartered in Buffalo, New York.  M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

Forward-Looking Statements.  This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management.  These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements.  In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

 

INVESTOR CONTACT:

Donald J. MacLeod

 

(716) 842-5138

   

MEDIA CONTACT:

C. Michael Zabel

 

(716) 842-5385

 

 

M&T BANK CORPORATION

                   

Financial Highlights

                   
     

Three months ended

         

Amounts in thousands,

   

March 31

         

 except per share

   

2014

 

2013

 

Change

     
                     

Performance

                   
                     

Net income

 

$

229,017

 

274,113

 

-16

%

   

Net income available to common shareholders

   

211,731

 

255,096

 

-17

     
                     

Per common share:

                   

  Basic earnings

 

$

1.63

 

2.00

 

-19

%

   

  Diluted earnings

   

1.61

 

1.98

 

-19

     

  Cash dividends

 

$

.70

 

.70

 

-

     
                     

Common shares outstanding:

                   

  Average - diluted (1)

   

131,126

 

128,636

 

2

%

   

  Period end (2)

   

131,431

 

128,999

 

2

     
                     

Return on (annualized):

                   

  Average total assets

   

1.07

%

1.36

%

       

  Average common shareholders' equity

   

8.22

%

11.10

%

       
                     

Taxable-equivalent net interest income

 

$

662,378

 

662,500

 

-

     
                     

Yield on average earning assets

   

3.87

%

4.13

%

       

Cost of interest-bearing liabilities

   

.55

%

.64

%

       

Net interest spread

   

3.32

%

3.49

%

       

Contribution of interest-free funds

   

.20

%

.22

%

       

Net interest margin 

   

3.52

%

3.71

%

       
                     

Net charge-offs to average total 

                   

  net loans (annualized)

   

.20

%

.23

%

       
                     

Net operating results (3)

                   
                     

Net operating income

 

$

235,162

 

285,136

 

-18

%

   

Diluted net operating earnings per common share

   

1.66

 

2.06

 

-19

     

Return on (annualized):

                   

  Average tangible assets

   

1.15

%

1.48

%

       

  Average tangible common equity

   

12.76

%

18.71

%

       

Efficiency ratio

   

63.95

%

55.88

%

       
                     
                     
                     
     

At  March 31

         

Loan quality

   

2014

 

2013

 

Change

     
                     

Nonaccrual loans

 

$

890,893

 

1,052,794

 

-15

%

   

Real estate and other foreclosed assets

   

59,407

 

95,680

 

-38

%

   

  Total nonperforming assets

 

$

950,300

 

1,148,474

 

-17

%

   
                     

Accruing loans past due 90 days or more (4)

 

$

307,017

 

331,283

 

-7

%

   
                     

Government guaranteed loans included in totals

                   

  above:

                   

  Nonaccrual loans

 

$

75,959

 

63,385

 

20

%

   

  Accruing loans past due 90 days or more

   

291,418

 

311,579

 

-6

%

   
                     

Renegotiated loans

 

$

257,889

 

272,285

 

-5

%

   
                     

Acquired accruing loans past due 90 

                   

  days or more (5)

 

$

120,996

 

157,068

 

-23

%

   
                     

Purchased impaired loans (6):

                   

  Outstanding customer balance

 

$

566,100

 

790,048

         

  Carrying amount

   

303,388

 

425,232

         
                     

Nonaccrual loans to total net loans

   

1.39

%

1.60

%

       
                     

Allowance for credit losses to total loans

   

1.43

%

1.41

%

       
                     
                     

(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 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,

     

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

       

 except per share

     

2014

   

2013

   

2013

   

2013

   

2013

       
                                         

Performance

                                       
                                         

Net income

   

$

229,017

   

221,422

   

294,479

   

348,466

   

274,113

       

Net income available to common shareholders

     

211,731

   

203,451

   

275,356

   

328,557

   

255,096

       
                                         

Per common share:

                                       

  Basic earnings

   

$

1.63

   

1.57

   

2.13

   

2.56

   

2.00

       

  Diluted earnings

     

1.61

   

1.56

   

2.11

   

2.55

   

1.98

       

  Cash dividends

   

$

.70

   

.70

   

.70

   

.70

   

.70

       
                                         

Common shares outstanding:

                                       

  Average - diluted (1)

     

131,126

   

130,464

   

130,265

   

129,017

   

128,636

       

  Period end (2)

     

131,431

   

130,564

   

130,241

   

129,464

   

128,999

       
                                         

Return on (annualized):

                                       

  Average total assets

     

1.07

%

 

1.03

%

 

1.39

%

 

1.68

%

 

1.36

%

     

  Average common shareholders' equity

     

8.22

%

 

7.99

%

 

11.06

%

 

13.78

%

 

11.10

%

     
                                         

Taxable-equivalent net interest income

   

$

662,378

   

672,683

   

679,213

   

683,804

   

662,500

       
                                         

Yield on average earning assets

     

3.87

%

 

3.92

%

 

3.98

%

 

4.10

%

 

4.13

%

     

Cost of interest-bearing liabilities

     

.55

%

 

.56

%

 

.58

%

 

.62

%

 

.64

%

     

Net interest spread

     

3.32

%

 

3.36

%

 

3.40

%

 

3.48

%

 

3.49

%

     

Contribution of interest-free funds

     

.20

%

 

.20

%

 

.21

%

 

.23

%

 

.22

%

     

Net interest margin

     

3.52

%

 

3.56

%

 

3.61

%

 

3.71

%

 

3.71

%

     
                                         

Net charge-offs to average total 

                                       

  net loans (annualized)

     

.20

%

 

.26

%

 

.29

%

 

.35

%

 

.23

%

     
                                         

Net operating results (3)

                                       
                                         

Net operating income

   

$

235,162

   

227,797

   

300,968

   

360,734

   

285,136

       

Diluted net operating earnings per common share

     

1.66

   

1.61

   

2.16

   

2.65

   

2.06

       

Return on (annualized):

                                       

  Average tangible assets

     

1.15

%

 

1.11

%

 

1.48

%

 

1.81

%

 

1.48

%

     

  Average tangible common equity

     

12.76

%

 

12.67

%

 

17.64

%

 

22.72

%

 

18.71

%

     

Efficiency ratio

     

63.95

%

 

65.48

%

 

56.03

%

 

50.92

%

 

55.88

%

     
                                         
                                         
                                         
                                         
       

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

       

Loan quality

     

2014

   

2013

   

2013

   

2013

   

2013

       
                                         

Nonaccrual loans

   

$

890,893

   

874,156

   

915,871

   

964,906

   

1,052,794

       

Real estate and other foreclosed assets

     

59,407

   

66,875

   

89,203

   

82,088

   

95,680

       

  Total nonperforming assets

   

$

950,300

   

941,031

   

1,005,074

   

1,046,994

   

1,148,474

       
                                         

Accruing loans past due 90 days or more (4)

   

$

307,017

   

368,510

   

339,792

   

340,467

   

331,283

       
                                         

Government guaranteed loans included in totals above:

                                       

  Nonaccrual loans

   

$

75,959

   

63,647

   

68,519

   

69,508

   

63,385

       

  Accruing loans past due 90 days or more

     

291,418

   

297,918

   

320,732

   

315,281

   

311,579

       
                                         

Renegotiated loans

   

$

257,889

   

257,092

   

259,301

   

263,351

   

272,285

       
                                         

Acquired accruing loans past due 90 

                                       

  days or more (5)

   

$

120,996

   

130,162

   

153,585

   

155,686

   

157,068

       
                                         

Purchased impaired loans (6):

                                       

  Outstanding customer balance

   

$

566,100

   

579,975

   

648,118

   

725,196

   

790,048

       

  Carrying amount

     

303,388

   

330,792

   

357,337

   

394,697

   

425,232

       
                                         

Nonaccrual loans to total net loans

     

1.39

%

 

1.36

%

 

1.44

%

 

1.46

%

 

1.60

%

     
                                         

Allowance for credit losses to total loans

     

1.43

%

 

1.43

%

 

1.44

%

 

1.41

%

 

1.41

%

     
                                         
                                         

(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 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

     
   

March 31

     

Dollars in thousands

 

2014

 

2013

 

Change

 
               

Interest income

$

722,952

 

729,975

 

-1

%

Interest expense

 

66,519

 

73,925

 

-10

 
               

Net interest income

 

656,433

 

656,050

 

-

 
               

Provision for credit losses

 

32,000

 

38,000

 

-16

 
               

Net interest income after

             

   provision for credit losses

 

624,433

 

618,050

 

1

 
               

Other income

             

     Mortgage banking revenues

 

80,049

 

93,103

 

-14

 

     Service charges on deposit accounts

 

104,198

 

110,949

 

-6

 

     Trust income

 

121,252

 

121,603

 

-

 

     Brokerage services income

 

16,500

 

15,711

 

5

 

     Trading account and foreign exchange gains

 

6,447

 

8,927

 

-28

 

     Other-than-temporary impairment losses 

             

        recognized in earnings

 

-

 

(9,800)

 

-

 

     Equity in earnings of Bayview Lending Group LLC

 

(4,454)

 

(3,656)

 

-

 

     Other revenues from operations

 

96,115

 

96,045

 

-

 

          Total other income

 

420,107

 

432,882

 

-3

 
               

Other expense

             

     Salaries and employee benefits

 

371,326

 

356,551

 

4

 

     Equipment and net occupancy

 

71,167

 

65,159

 

9

 

     Printing, postage and supplies

 

10,956

 

10,699

 

2

 

     Amortization of core deposit and other 

             

        intangible assets

 

10,062

 

13,343

 

-25

 

     FDIC assessments

 

15,488

 

19,438

 

-20

 

     Other costs of operations

 

223,272

 

170,406

 

31

 

          Total other expense

 

702,271

 

635,596

 

10

 
               

Income before income taxes

 

342,269

 

415,336

 

-18

 
               

Applicable income taxes

 

113,252

 

141,223

 

-20

 
               

Net income

$

229,017

 

274,113

 

-16

%

               

 

M&T BANK CORPORATION

                       

Condensed Consolidated Statement of Income, Five Quarter Trend

               
                             
   

Three months ended

   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

Dollars in thousands

 

2014

   

2013

   

2013

   

2013

   

2013

                             

Interest income

$

722,952

   

734,466

   

742,686

   

750,207

   

729,975

Interest expense

 

66,519

   

67,982

   

69,578

   

72,620

   

73,925

                             

Net interest income

 

656,433

   

666,484

   

673,108

   

677,587

   

656,050

                             

Provision for credit losses

 

32,000

   

42,000

   

48,000

   

57,000

   

38,000

                             

Net interest income after

                           

   provision for credit losses

 

624,433

   

624,484

   

625,108

   

620,587

   

618,050

                             

Other income

                           

     Mortgage banking revenues

 

80,049

   

82,169

   

64,731

   

91,262

   

93,103

     Service charges on deposit accounts

 

104,198

   

110,436

   

113,839

   

111,717

   

110,949

     Trust income 

 

121,252

   

125,876

   

123,801

   

124,728

   

121,603

     Brokerage services income

 

16,500

   

15,807

   

16,871

   

17,258

   

15,711

     Trading account and foreign exchange gains

 

6,447

   

13,690

   

8,987

   

9,224

   

8,927

     Gain on bank investment securities

 

-

   

-

   

-

   

56,457

   

-

     Other-than-temporary impairment losses 

                           

        recognized in earnings

 

-

   

-

   

-

   

-

   

(9,800)

     Equity in earnings of Bayview Lending Group LLC

 

(4,454)

   

(6,136)

   

(3,881)

   

(2,453)

   

(3,656)

     Other revenues from operations

 

96,115

   

104,404

   

153,040

   

100,496

   

96,045

          Total other income

 

420,107

   

446,246

   

477,388

   

508,689

   

432,882

                             

Other expense

                           

     Salaries and employee benefits

 

371,326

   

336,159

   

339,332

   

323,136

   

356,551

     Equipment and net occupancy

 

71,167

   

68,670

   

66,220

   

64,278

   

65,159

     Printing, postage and supplies

 

10,956

   

8,808

   

9,752

   

10,298

   

10,699

     Amortization of core deposit and other 

                           

        intangible assets

 

10,062

   

10,439

   

10,628

   

12,502

   

13,343

     FDIC assessments

 

15,488

   

17,574

   

14,877

   

17,695

   

19,438

     Other costs of operations

 

223,272

   

301,422

   

217,817

   

170,682

   

170,406

          Total other expense

 

702,271

   

743,072

   

658,626

   

598,591

   

635,596

                             

Income before income taxes

 

342,269

   

327,658

   

443,870

   

530,685

   

415,336

                             

Applicable income taxes

 

113,252

   

106,236

   

149,391

   

182,219

   

141,223

                             

Net income

$

229,017

   

221,422

   

294,479

   

348,466

   

274,113

                             

 

M&T BANK CORPORATION

               

Condensed Consolidated Balance Sheet

               
                 
     

March 31

     

Dollars in thousands

   

2014

 

2013

 

Change

 
                 

ASSETS

               
                 

Cash and due from banks

 

$

1,671,052

 

1,231,091

 

36

%

                 

Interest-bearing deposits at banks

   

3,299,185

 

1,304,770

 

153

 
                 

Federal funds sold and agreements

               

  to resell securities

   

92,066

 

594,976

 

-85

 
                 

Trading account assets

   

314,807

 

420,144

 

-25

 
                 

Investment securities

   

10,364,249

 

5,660,831

 

83

 
                 

Loans and leases:

               
                 

   Commercial, financial, etc

   

18,896,070

 

17,469,138

 

8

 

   Real estate - commercial

   

26,104,086

 

25,944,819

 

1

 

   Real estate - consumer

   

8,774,095

 

11,094,577

 

-21

 

   Consumer

   

10,360,827

 

11,415,733

 

-9

 

     Total loans and leases, net of unearned discount

   

64,135,078

 

65,924,267

 

-3

 

        Less: allowance for credit losses

   

916,768

 

927,117

 

-1

 
                 

  Net loans and leases

   

63,218,310

 

64,997,150

 

-3

 
                 

Goodwill

   

3,524,625

 

3,524,625

 

-

 
                 

Core deposit and other intangible assets

   

58,789

 

102,420

 

-43

 
                 

Other assets

   

5,987,277

 

4,975,950

 

20

 
                 

  Total assets

 

$

88,530,360

 

82,811,957

 

7

%

                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits

 

$

25,244,200

 

23,603,971

 

7

%

                 

Interest-bearing deposits

   

43,207,286

 

41,219,679

 

5

 
                 

Deposits at Cayman Islands office

   

247,880

 

266,076

 

-7

 
                 

  Total deposits

   

68,699,366

 

65,089,726

 

6

 
                 

Short-term borrowings

   

230,209

 

374,593

 

-39

 
                 

Accrued interest and other liabilities

   

1,462,725

 

1,530,118

 

-4

 
                 

Long-term borrowings

   

6,251,197

 

5,394,563

 

16

 
                 

  Total liabilities

   

76,643,497

 

72,389,000

 

6

 
                 

Shareholders' equity:

               
                 

   Preferred

   

1,231,500

 

874,627

 

41

 

   Common (1) 

   

10,655,363

 

9,548,330

 

12

 
                 

     Total shareholders' equity

   

11,886,863

 

10,422,957

 

14

 
                 

  Total liabilities and shareholders' equity

 

$

88,530,360

 

82,811,957

 

7

%

                 
                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $25.3 million at March 31, 2014 and $226.0 million at March 31, 2013.

                 

 

M&T BANK CORPORATION

                       

Condensed Consolidated Balance Sheet, Five Quarter Trend

                 
       
     

March 31,

 

December 31,

   

September 30,

   

June 30,

   

March 31,

Dollars in thousands

   

2014

 

2013

   

2013

   

2013

   

2013

                               

ASSETS

                             
                               

Cash and due from banks

 

$

1,671,052

   

1,573,361

   

1,941,944

   

1,350,015

   

1,231,091

                               

Interest-bearing deposits at banks

   

3,299,185

   

1,651,138

   

1,925,811

   

2,555,354

   

1,304,770

                               

Federal funds sold and agreements

                             

  to resell securities

   

92,066

   

99,573

   

117,809

   

124,487

   

594,976

                               

Trading account assets

   

314,807

   

376,131

   

371,370

   

378,235

   

420,144

                               

Investment securities

   

10,364,249

   

8,796,497

   

8,309,773

   

5,210,526

   

5,660,831

                               

Loans and leases:

                             
                               

   Commercial, financial, etc

   

18,896,070

   

18,705,216

   

17,911,149

   

18,021,812

   

17,469,138

   Real estate - commercial

   

26,104,086

   

26,148,208

   

26,345,267

   

26,116,394

   

25,944,819

   Real estate - consumer

   

8,774,095

   

8,928,221

   

9,228,003

   

10,399,749

   

11,094,577

   Consumer

   

10,360,827

   

10,291,514

   

10,174,623

   

11,433,911

   

11,415,733

     Total loans and leases, net of unearned discount

   

64,135,078

   

64,073,159

   

63,659,042

   

65,971,866

   

65,924,267

        Less: allowance for credit losses

   

916,768

   

916,676

   

916,370

   

927,065

   

927,117

                               

  Net loans and leases

   

63,218,310

   

63,156,483

   

62,742,672

   

65,044,801

   

64,997,150

                               

Goodwill

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

                               

Core deposit and other intangible assets

   

58,789

   

68,851

   

79,290

   

89,918

   

102,420

                               

Other assets

   

5,987,277

   

5,915,732

   

5,414,191

   

4,951,044

   

4,975,950

                               

  Total assets

 

$

88,530,360

   

85,162,391

   

84,427,485

   

83,229,005

   

82,811,957

                               
                               

LIABILITIES AND SHAREHOLDERS' EQUITY

                             
                               

Noninterest-bearing deposits

 

$

25,244,200

   

24,661,007

   

24,150,771

   

24,074,815

   

23,603,971

                               

Interest-bearing deposits

   

43,207,286

   

42,134,859

   

42,084,860

   

41,302,212

   

41,219,679

                               

Deposits at Cayman Islands office

   

247,880

   

322,746

   

316,510

   

284,443

   

266,076

                               

  Total deposits

   

68,699,366

   

67,118,612

   

66,552,141

   

65,661,470

   

65,089,726

                               

Short-term borrowings

   

230,209

   

260,455

   

246,019

   

307,740

   

374,593

                               

Accrued interest and other liabilities

   

1,462,725

   

1,368,922

   

1,491,797

   

1,421,067

   

1,530,118

                               

Long-term borrowings

   

6,251,197

   

5,108,870

   

5,121,326

   

5,122,398

   

5,394,563

                               

  Total liabilities

   

76,643,497

   

73,856,859

   

73,411,283

   

72,512,675

   

72,389,000

                               

Shareholders' equity:

                             
                               

   Preferred

   

1,231,500

   

881,500

   

879,010

   

876,796

   

874,627

   Common (1) 

   

10,655,363

   

10,424,032

   

10,137,192

   

9,839,534

   

9,548,330

                               

     Total shareholders' equity

   

11,886,863

   

11,305,532

   

11,016,202

   

10,716,330

   

10,422,957

                               

  Total liabilities and shareholders' equity

 

$

88,530,360

   

85,162,391

   

84,427,485

   

83,229,005

   

82,811,957

                               
                               

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $25.3 million at March 31, 2014, $64.2 million at December 31, 2013, $198.1 million at September 30, 2013, $227.8 million at June 30, 2013 and $226.0 million at March 31, 2013.

 

M&T BANK CORPORATION

                       

Condensed Consolidated Average Balance Sheet

                   

 and Annualized Taxable-equivalent Rates

                     
                                 
     

Three months ended

 

Change in balance

     

March 31,

 

March 31,

 

December 31,

 

March 31, 2014 from

Dollars in millions

   

2014

 

2013

 

2013

 

March 31,

 

December 31,

     

Balance

Rate

 

Balance

Rate

 

Balance

Rate

 

2013

 

2013

ASSETS

                               
                                 

Interest-bearing deposits at banks

 

$

3,089

.25

%

527

.21

%

2,948

.25

%

486

%

 

5

%

                                 

Federal funds sold and agreements

                               

  to resell securities

   

100

.07

 

81

.13

 

115

.07

 

22

   

-14

 
                                 

Trading account assets

   

71

2.68

 

76

3.60

 

82

1.36

 

-6

   

-13

 
                                 

Investment securities

   

9,265

3.34

 

5,803

3.33

 

8,354

3.32

 

60

   

11

 
                                 

Loans and leases, net of unearned discount

                               

  Commercial, financial, etc

   

18,476

3.37

 

17,328

3.66

 

18,096

3.41

 

7

   

2

 

  Real estate - commercial

   

26,143

4.40

 

25,915

4.41

 

26,231

4.48

 

1

   

-

 

  Real estate - consumer

   

8,844

4.19

 

11,142

4.09

 

8,990

4.20

 

-21

   

-2

 

  Consumer

   

10,300

4.59

 

11,467

4.66

 

10,233

4.60

 

-10

   

1

 

     Total loans and leases, net

   

63,763

4.14

 

65,852

4.24

 

63,550

4.17

 

-3

   

-

 
                                 

  Total earning assets

   

76,288

3.87

 

72,339

4.13

 

75,049

3.92

 

5

   

2

 
                                 

Goodwill

   

3,525

   

3,525

   

3,525

   

-

   

-

 
                                 

Core deposit and other intangible assets

   

64

   

109

   

74

   

-42

   

-14

 
                                 

Other assets

   

6,788

   

5,940

   

6,682

   

14

   

2

 
                                 

  Total assets

 

$

86,665

   

81,913

   

85,330

   

6

%

 

2

%

                                 
                                 
                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                               
                                 

Interest-bearing deposits

                               

  NOW accounts

 

$

988

.12

 

893

.15

 

933

.13

 

11

%

 

6

%

  Savings deposits

   

38,358

.12

 

35,394

.16

 

38,079

.14

 

8

   

1

 

  Time deposits

   

3,460

.46

 

4,438

.75

 

3,617

.51

 

-22

   

-4

 

  Deposits at Cayman Islands office

   

380

.22

 

859

.18

 

414

.21

 

-56

   

-8

 

     Total interest-bearing deposits

   

43,186

.15

 

41,584

.22

 

43,043

.17

 

4

   

-

 
                                 

Short-term borrowings

   

264

.05

 

637

.15

 

287

.06

 

-59

   

-8

 

Long-term borrowings

   

5,897

3.47

 

4,688

4.39

 

5,009

3.91

 

26

   

18

 
                                 

Total interest-bearing liabilities

   

49,347

.55

 

46,909

.64

 

48,339

.56

 

5

   

2

 
                                 

Noninterest-bearing deposits

   

24,141

   

22,956

   

24,169

   

5

   

-

 
                                 

Other liabilities

   

1,529

   

1,726

   

1,713

   

-11

   

-11

 
                                 

  Total liabilities

   

75,017

   

71,591

   

74,221

   

5

   

1

 
                                 

Shareholders' equity

   

11,648

   

10,322

   

11,109

   

13

   

5

 
                                 

  Total liabilities and shareholders' equity

 

$

86,665

   

81,913

   

85,330

   

6

%

 

2

%

                                 
                                 

Net interest spread

     

3.32

   

3.49

   

3.36

           

Contribution of interest-free funds

     

.20

   

.22

   

.20

           

Net interest margin

     

3.52

%

 

3.71

%

 

3.56

%

         
                                 

 

M&T BANK CORPORATION

                         

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

                 
                           
                           
                           
       

Three months ended

 
       

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 
       

2014

 

2013

 

2013

 

2013

 

2013

 

Income statement data

                         

In thousands, except per share

                         

Net income

                         

Net income

   

$

229,017

 

221,422

 

294,479

 

348,466

 

274,113

 

Amortization of core deposit and other

                         

  intangible assets (1)

     

6,145

 

6,375

 

6,489

 

7,632

 

8,148

 

Merger-related expenses (1)

     

-

 

-

 

-

 

4,636

 

2,875

 

  Net operating income

   

$

235,162

 

227,797

 

300,968

 

360,734

 

285,136

 

Earnings per common share

                         

Diluted earnings per common share

   

$

1.61

 

1.56

 

2.11

 

2.55

 

1.98

 

Amortization of core deposit and other

                         

  intangible assets (1)

     

.05

 

.05

 

.05

 

.06

 

.06

 

Merger-related expenses (1)

     

-

 

-

 

-

 

.04

 

.02

 

  Diluted net operating earnings per common share

   

$

1.66

 

1.61

 

2.16

 

2.65

 

2.06

 

Other expense

                         

Other expense

   

$

702,271

 

743,072

 

658,626

 

598,591

 

635,596

 

Amortization of core deposit and other

                         

  intangible assets

     

(10,062)

 

(10,439)

 

(10,628)

 

(12,502)

 

(13,343)

 

Merger-related expenses

     

-

 

-

 

-

 

(7,632)

 

(4,732)

 

  Noninterest operating expense

   

$

692,209

 

732,633

 

647,998

 

578,457

 

617,521

 

Merger-related expenses

                         

Salaries and employee benefits

   

$

-

 

-

 

-

 

300

 

536

 

Equipment and net occupancy

     

-

 

-

 

-

 

489

 

201

 

Printing, postage and supplies

     

-

 

-

 

-

 

998

 

827

 

Other costs of operations

     

-

 

-

 

-

 

5,845

 

3,168

 

  Total

   

$

-

 

-

 

-

 

7,632

 

4,732

 

Efficiency ratio

                         

Noninterest operating expense (numerator)

   

$

692,209

 

732,633

 

647,998

 

578,457

 

617,521

 

Taxable-equivalent net interest income

     

662,378

 

672,683

 

679,213

 

683,804

 

662,500

 

Other income

     

420,107

 

446,246

 

477,388

 

508,689

 

432,882

 

Less:  Gain on bank investment securities

     

-

 

-

 

-

 

56,457

 

-

 

           Net OTTI losses recognized in earnings

     

-

 

-

 

-

 

-

 

(9,800)

 

Denominator

   

$

1,082,485

 

1,118,929

 

1,156,601

 

1,136,036

 

1,105,182

 

Efficiency ratio

     

63.95

%

65.48

%

56.03

%

50.92

%

55.88

%

                           
                           

Balance sheet data

                         

In millions

                         

Average assets

                         

Average assets

   

$

86,665

 

85,330

 

84,011

 

83,352

 

81,913

 

Goodwill

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

     

(64)

 

(74)

 

(84)

 

(95)

 

(109)

 

Deferred taxes

     

20

 

23

 

25

 

28

 

32

 

  Average tangible assets

   

$

83,096

 

81,754

 

80,427

 

79,760

 

78,311

 

Average common equity

                         

Average total equity

   

$

11,648

 

11,109

 

10,881

 

10,563

 

10,322

 

Preferred stock

     

(1,072)

 

(881)

 

(878)

 

(876)

 

(874)

 

  Average common equity

     

10,576

 

10,228

 

10,003

 

9,687

 

9,448

 

Goodwill

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

     

(64)

 

(74)

 

(84)

 

(95)

 

(109)

 

Deferred taxes

     

20

 

23

 

25

 

28

 

32

 

  Average tangible common equity

   

$

7,007

 

6,652

 

6,419

 

6,095

 

5,846

 
                           

At end of quarter

                         

Total assets

                         

Total assets

   

$

88,530

 

85,162

 

84,427

 

83,229

 

82,812

 

Goodwill

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

     

(59)

 

(69)

 

(79)

 

(90)

 

(102)

 

Deferred taxes

     

19

 

21

 

24

 

27

 

30

 

  Total tangible assets

   

$

84,965

 

81,589

 

80,847

 

79,641

 

79,215

 

Total common equity

                         

Total equity

   

$

11,887

 

11,306

 

11,016

 

10,716

 

10,423

 

Preferred stock

     

(1,232)

 

(882)

 

(879)

 

(877)

 

(875)

 

Undeclared dividends - cumulative preferred stock

     

(3)

 

(3)

 

(4)

 

(3)

 

(3)

 

  Common equity, net of undeclared cumulative

                         

    preferred dividends

     

10,652

 

10,421

 

10,133

 

9,836

 

9,545

 

Goodwill

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets

     

(59)

 

(69)

 

(79)

 

(90)

 

(102)

 

Deferred taxes

     

19

 

21

 

24

 

27

 

30

 

  Total tangible common equity

   

$

7,087

 

6,848

 

6,553

 

6,248

 

5,948

 
                           
                           

(1) After any related tax effect.