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

BUFFALO, N.Y., July 17, 2014 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2014.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2014 were $1.98, up 23% from $1.61 in the first quarter of 2014.  GAAP-basis net income in the recent quarter totaled $284 million, compared with $229 million in the initial 2014 quarter.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was 1.27% and 9.79%, respectively, compared with 1.07% and 8.22%, respectively, in the first quarter of 2014.

The recent quarter's results reflect two noteworthy, but largely offsetting, items. The resolution with tax authorities of previously uncertain tax positions required M&T to reduce its accrual for income taxes and increase net income by $8 million, while an increase to M&T's litigation reserves of $12 million reduced net income by $7 million after applicable tax effect. Both accrual items were associated with pre-acquisition activities of M&T's Wilmington Trust entities.

Diluted earnings per common share and net income in last year's second quarter were $2.55 and $348 million, respectively.  Those results include after-tax gains from the sale of investment securities of $34 million and the effect of the reversal of an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust that resulted in a reduction of expenses having an after-tax impact of $15 million. Those items increased diluted earnings per common share by $.38 in 2013's second quarter.

Reflecting on the recent quarter's performance, Rene F. Jones,  Vice Chairman and Chief Financial Officer, noted, "Results for the second quarter reflected an improvement in revenue from the first quarter in the areas of mortgage banking, trust and deposit services.  M&T's credit quality measures were strong during the quarter.  While operating expense levels continue to be elevated, significant progress has been made on several key initiatives related to BSA/AML activities, Compliance, Risk Management and Capital Planning." 

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 $2.02 in the recent quarter, compared with $1.66 and $2.65 in the initial quarter of 2014 and last year's second quarter, respectively.  Net operating income during the second quarter of 2014 was $290 million, compared with $235 million in the first quarter of 2014 and $361 million in the second quarter of 2013.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.35% and 14.92%, respectively, in the second quarter of 2014.  The comparable returns were 1.15% and 12.76% in the first quarter of 2014 and 1.81% and 22.72% in the second quarter of 2013.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $675 million in the second quarter of 2014, down slightly from $684 million in the year-earlier period. The effect of growth in average earning assets, predominantly due to a $5.7 billion rise in average investment securities, was offset by a 31 basis point narrowing of the net interest margin to 3.40% in the recent quarter from 3.71% in the second quarter of 2013.  The significant increase in investment securities reflects M&T's continued efforts to meet proposed regulatory liquidity requirements.  Taxable-equivalent net interest income in the recent quarter was up 2% from $662 million in the first quarter of 2014.  That improvement reflects a $3.3 billion increase in average earning assets, including a $1.7 billion or 18% rise in average investment securities resulting from continued purchases of mortgage-backed securities, partially offset by a 12 basis point decline in the net interest margin.  The narrowing of the recent quarter's net interest margin as compared with the second quarter of 2013 and the initial 2014 quarter reflects continuing downward pressure on loan yields, increased balances of investment securities and higher levels of deposits held at the Federal Reserve Bank of New York.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $30 million in the second quarter of 2014, compared with $57 million and $32 million in the year-earlier quarter and the first quarter of 2014, respectively.  Net charge-offs of loans were $29 million during the recent quarter, improved from $57 million in the second quarter of 2013 and $32 million in the first quarter of 2014.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .18% and .35% in the second quarters of 2014 and 2013, respectively, and .20% in the first quarter of 2014.

Loans classified as nonaccrual declined to $880 million, or 1.36% of total loans outstanding at June 30, 2014, compared with $965 million or 1.46% a year earlier and $891 million or 1.39% at March 31, 2014.  Assets taken in foreclosure of defaulted loans were $60 million at June 30, 2014, improved from $82 million at June 30, 2013 and comparable to $59 million at March 31, 2014.

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 $918 million or 1.42% of loans outstanding at June 30, 2014, compared with $927 million or 1.41% of loans at June 30, 2013 and $917 million or 1.43% of loans at March 31, 2014. 

Noninterest Income and Expense.  Noninterest income aggregated $456 million in the second quarter of 2014, compared with $509 million in the year-earlier quarter and $420 million in the first quarter of 2014.  Reflected in the second quarter of 2013 were net pre-tax gains of $56 million from the noted sales of investment securities.  Excluding those gains, noninterest income in the second quarter of 2014 was up from $452 million in the year-earlier quarter and was 9% higher than the $420 million in the initial quarter of 2014.  Higher mortgage banking revenues and trust income in the recent quarter contributed to those improvements.

Noninterest expense in the second quarter of 2014 totaled $681 million, up from $599 million in the year-earlier quarter, but down from $702 million in the first quarter of 2014.  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 $672 million in the recent quarter, compared with $578 million in the second quarter of 2013 and $692 million in 2014's initial quarter.  The higher level of operating expenses in the recent quarter as compared with the year-earlier period was predominantly the result of costs for professional services and salaries associated with BSA/AML activities, compliance, capital planning and stress testing, risk management, and other operational initiatives.  As compared with the first quarter of 2014, 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, which were seasonally higher in the initial 2014 period, partially offset by the noted increase in litigation reserves. 

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 59.4% in the second quarter of 2014, compared with 50.9% in the year-earlier quarter and 63.9% in the first quarter of 2014. 

Balance Sheet.  M&T had total assets of $90.8 billion at June 30, 2014, up 9% from $83.2 billion a year earlier.  Investment securities were $12.1 billion at June 30, 2014, up $6.9 billion or 133% from June 30, 2013.  M&T has added investment securities during 2013 and 2014 through purchase and loan securitization transactions in order to enhance its liquidity position in response to proposed regulatory requirements.  Loans and leases, net of unearned discount, totaled $64.7 billion at the recent quarter-end, compared with $66.0 billion at June 30, 2013.  Total deposits rose 6% to $69.8 billion at June 30, 2014 from $65.7 billion a year earlier.

Total shareholders' equity rose 14% to $12.2 billion at June 30, 2014 from $10.7 billion a year earlier, representing 13.40% and 12.88%, respectively, of total assets.  Common shareholders' equity was $10.9 billion, or $82.86 per share, at June 30, 2014, up from $9.8 billion, or $75.98 per share, at June 30, 2013.  Tangible equity per common share rose 16% to $55.89 at the recent quarter-end from $48.26 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $81.05 and $53.92, respectively, at March 31, 2014.  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 9.62% at June 30, 2014, compared with 8.55% and 9.45% at June 30, 2013 and March 31, 2014, respectively.  M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the capital rules approved in July 2013 on a fully phased-in basis was approximately 9.35% as of June 30, 2014.

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# 66984191. 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 Sunday, July 20, 2014 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 66984191.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.

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

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

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

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

INVESTOR CONTACT:

Donald J. MacLeod 

 

(716) 842-5138

   

MEDIA CONTACT:   

C. Michael Zabel

 

(716) 842-5385

 

 

M&T BANK CORPORATION

                       

Financial Highlights

                       
     

Three months ended

           

Six months ended

     

Amounts in thousands,

   

June 30

           

June 30

     

 except per share

   

2014

 

2013

 

Change

       

2014

 

2013

 

Change

 
                                   

Performance

                                 
                                   

Net income

 

$

284,336

 

348,466

 

-18

%

 

$

513,353

 

622,579

 

-18

%

Net income available to common shareholders 

   

260,695

 

328,557

 

-21

       

472,429

 

583,633

 

-19

 
                                   

Per common share:

                                 

  Basic earnings 

 

$

1.99

 

2.56

 

-22

%

 

$

3.62

 

4.56

 

-21

%

  Diluted earnings 

   

1.98

 

2.55

 

-22

       

3.59

 

4.53

 

-21

 

  Cash dividends 

 

$

.70

 

.70

 

-

     

$

1.40

 

1.40

 

-

 
                                   

Common shares outstanding:

                                 

  Average - diluted (1) 

   

131,828

 

129,017

 

2

%

   

131,479

 

128,828

 

2

%

  Period end (2) 

   

131,953

 

129,464

 

2

       

131,953

 

129,464

 

2

 
                                   

Return on (annualized):

                                 

  Average total assets 

   

1.27

%

1.68

%

         

1.17

%

1.52

%

   

  Average common shareholders' equity 

   

9.79

%

13.78

%

         

9.02

%

12.47

%

   
                                   

Taxable-equivalent net interest income 

 

$

674,963

 

683,804

 

-1

%

 

$

1,337,341

 

1,346,304

 

-1

%

                                   

Yield on average earning assets 

   

3.73

%

4.10

%

         

3.80

%

4.12

%

   

Cost of interest-bearing liabilities 

   

.51

%

.62

%

         

.53

%

.63

%

   

Net interest spread 

   

3.22

%

3.48

%

         

3.27

%

3.49

%

   

Contribution of interest-free funds 

   

.18

%

.23

%

         

.19

%

.22

%

   

Net interest margin  

   

3.40

%

3.71

%

         

3.46

%

3.71

%

   
                                   

Net charge-offs to average total 

                                 

  net loans (annualized) 

   

.18

%

.35

%

         

.19

%

.29

%

   
                                   

Net operating results (3)

                                 
                                   

Net operating income  

 

$

289,974

 

360,734

 

-20

%

 

$

525,136

 

645,870

 

-19

%

                                 

Diluted net operating earnings per common share 

   

2.02

 

2.65

 

-24

       

3.68

 

4.71

 

-22

 

Return on (annualized):

                                 

  Average tangible assets 

   

1.35

%

1.81

%

         

1.25

%

1.65

%

   

  Average tangible common equity 

   

14.92

%

22.72

%

         

13.86

%

20.76

%

   

Efficiency ratio 

   

59.39

%

50.92

%

         

61.62

%

53.36

%

   
                                   
                                   
                                   
     

At  June 30

                       

Loan quality

   

2014

 

2013

 

Change

                   
                                   

Nonaccrual loans 

 

$

880,134

 

964,906

 

-9

%

               

Real estate and other foreclosed assets 

   

59,793

 

82,088

 

-27

%

               

  Total nonperforming assets 

 

$

939,927

 

1,046,994

 

-10

%

               
                                   

Accruing loans past due 90 days or more (4) 

 

$

289,016

 

340,467

 

-15

%

               
                                   

Government guaranteed loans included in totals

                                 

  above:

                                 

  Nonaccrual loans 

 

$

81,817

 

69,508

 

18

%

               

  Accruing loans past due 90 days or more 

   

275,846

 

315,281

 

-13

%

               
                                   

Renegotiated loans 

 

$

270,223

 

263,351

 

3

%

               
                                   

Acquired accruing loans past due 90 

                                 

  days or more (5) 

 

$

124,217

 

155,686

 

-20

%

               
                                   

Purchased impaired loans (6):

                                 

  Outstanding customer balance 

 

$

504,584

 

725,196

 

-30

%

               

  Carrying amount 

   

282,517

 

394,697

 

-28

%

               
                                   

Nonaccrual loans to total net loans 

   

1.36

%

1.46

%

                     
                                   

Allowance for credit losses to total loans 

   

1.42

%

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,

   

June 30,

 

March 31,

   

December 31,

   

September 30,

 

June 30,

 

 except per share

   

2014

 

2014

   

2013

   

2013

 

2013

 
                                   

Performance

                                 
                                   

Net income 

 

$

284,336

   

229,017

   

221,422

   

294,479

   

348,466

   

Net income available to common shareholders 

   

260,695

   

211,731

   

203,451

   

275,356

   

328,557

   
                                   

Per common share:

                                 

  Basic earnings 

 

$

1.99

   

1.63

   

1.57

   

2.13

   

2.56

   

  Diluted earnings 

   

1.98

   

1.61

   

1.56

   

2.11

   

2.55

   

  Cash dividends 

 

$

.70

   

.70

   

.70

   

.70

   

.70

   
                                   

Common shares outstanding:

                                 

  Average - diluted (1) 

   

131,828

   

131,126

   

130,464

   

130,265

   

129,017

   

  Period end (2) 

   

131,953

   

131,431

   

130,564

   

130,241

   

129,464

   
                                   

Return on (annualized):

                                 

  Average total assets 

   

1.27

%

 

1.07

%

 

1.03

%

 

1.39

%

 

1.68

%

 

  Average common shareholders' equity 

   

9.79

%

 

8.22

%

 

7.99

%

 

11.06

%

 

13.78

%

 
                                   

Taxable-equivalent net interest income 

 

$

674,963

   

662,378

   

672,683

   

679,213

   

683,804

   
                                   

Yield on average earning assets 

   

3.73

%

 

3.87

%

 

3.92

%

 

3.98

%

 

4.10

%

 

Cost of interest-bearing liabilities 

   

.51

%

 

.55

%

 

.56

%

 

.58

%

 

.62

%

 

Net interest spread 

   

3.22

%

 

3.32

%

 

3.36

%

 

3.40

%

 

3.48

%

 

Contribution of interest-free funds 

   

.18

%

 

.20

%

 

.20

%

 

.21

%

 

.23

%

 

Net interest margin 

   

3.40

%

 

3.52

%

 

3.56

%

 

3.61

%

 

3.71

%

 
                                   

Net charge-offs to average total 

                                 

  net loans (annualized) 

   

.18

%

 

.20

%

 

.26

%

 

.29

%

 

.35

%

 
                                   

Net operating results (3)

                                 
                                   

Net operating income 

 

$

289,974

   

235,162

   

227,797

   

300,968

   

360,734

   
                                   

Diluted net operating earnings per common share 

   

2.02

   

1.66

   

1.61

   

2.16

   

2.65

   

Return on (annualized):

                                 

  Average tangible assets 

   

1.35

%

 

1.15

%

 

1.11

%

 

1.48

%

 

1.81

%

 

  Average tangible common equity 

   

14.92

%

 

12.76

%

 

12.67

%

 

17.64

%

 

22.72

%

 

Efficiency ratio 

   

59.39

%

 

63.95

%

 

65.48

%

 

56.03

%

 

50.92

%

 
                                   
                                   
                                   
           
     

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

Loan quality

   

2014

 

2014

 

2013

 

2013

 

2013

 
                                   

Nonaccrual loans 

 

$

880,134

   

890,893

   

874,156

   

915,871

   

964,906

   

Real estate and other foreclosed assets 

   

59,793

   

59,407

   

66,875

   

89,203

   

82,088

   

  Total nonperforming assets 

 

$

939,927

   

950,300

   

941,031

   

1,005,074

   

1,046,994

   
                                   

Accruing loans past due 90 days or more (4) 

 

$

289,016

   

307,017

   

368,510

   

339,792

   

340,467

   
                                   

Government guaranteed loans included in totals

                                 

  above:

                                 

  Nonaccrual loans 

 

$

81,817

   

75,959

   

63,647

   

68,519

   

69,508

   

  Accruing loans past due 90 days or more 

   

275,846

   

291,418

   

297,918

   

320,732

   

315,281

   
                                   

Renegotiated loans 

 

$

270,223

   

257,889

   

257,092

   

259,301

   

263,351

   
                                   

Acquired accruing loans past due 90 

                                 

  days or more (5) 

 

$

124,217

   

120,996

   

130,162

   

153,585

   

155,686

   
                                   

Purchased impaired loans (6):

                                 

  Outstanding customer balance 

 

$

504,584

   

534,331

   

579,975

   

648,118

   

725,196

   

  Carrying amount 

   

282,517

   

303,388

   

330,792

   

357,337

   

394,697

   
                                   

Nonaccrual loans to total net loans 

   

1.36

%

 

1.39

%

 

1.36

%

 

1.44

%

 

1.46

%

 
                                   

Allowance for credit losses to total loans 

   

1.42

%

 

1.43

%

 

1.43

%

 

1.44

%

 

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

         

Six months ended

     
   

June 30

         

June 30

     

Dollars in thousands

 

2014

 

2013

 

Change

     

2014

 

2013

 

Change

 
                               

Interest income 

$

734,290

 

750,207

 

-2

%

 

$

1,457,242

 

1,480,182

 

-2

%

Interest expense 

 

65,176

 

72,620

 

-10

     

131,695

 

146,545

 

-10

 
                               

Net interest income 

 

669,114

 

677,587

 

-1

     

1,325,547

 

1,333,637

 

-1

 
                               

Provision for credit losses 

 

30,000

 

57,000

 

-47

     

62,000

 

95,000

 

-35

 
                               

Net interest income after

                             

   provision for credit losses 

 

639,114

 

620,587

 

3

     

1,263,547

 

1,238,637

 

2

 
                               

Other income

                             

     Mortgage banking revenues 

 

95,656

 

91,262

 

5

     

175,705

 

184,365

 

-5

 

     Service charges on deposit accounts 

 

107,368

 

111,717

 

-4

     

211,566

 

222,666

 

-5

 

     Trust income  

 

129,893

 

124,728

 

4

     

251,145

 

246,331

 

2

 

     Brokerage services income 

 

17,487

 

17,258

 

1

     

33,987

 

32,969

 

3

 

     Trading account and foreign exchange gains 

 

8,042

 

9,224

 

-13

     

14,489

 

18,151

 

-20

 

     Gain on bank investment securities 

 

-

 

56,457

 

-

     

-

 

56,457

 

-

 

     Other-than-temporary impairment losses 

                             

        recognized in earnings 

 

-

 

-

 

-

     

-

 

(9,800)

 

-

 

     Equity in earnings of Bayview Lending Group LLC 

 

(4,055)

 

(2,453)

 

-

     

(8,509)

 

(6,109)

 

-

 

     Other revenues from operations 

 

102,021

 

100,496

 

2

     

198,136

 

196,541

 

1

 

          Total other income 

 

456,412

 

508,689

 

-10

     

876,519

 

941,571

 

-7

 
                               

Other expense

                             

     Salaries and employee benefits 

 

339,713

 

323,136

 

5

     

711,039

 

679,687

 

5

 

     Equipment and net occupancy 

 

68,084

 

64,278

 

6

     

139,251

 

129,437

 

8

 

     Printing, postage and supplies 

 

9,180

 

10,298

 

-11

     

20,136

 

20,997

 

-4

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

9,234

 

12,502

 

-26

     

19,296

 

25,845

 

-25

 

     FDIC assessments 

 

15,155

 

17,695

 

-14

     

30,643

 

37,133

 

-17

 

     Other costs of operations 

 

239,828

 

170,682

 

41

     

463,100

 

341,088

 

36

 

          Total other expense 

 

681,194

 

598,591

 

14

     

1,383,465

 

1,234,187

 

12

 
                               

Income before income taxes 

 

414,332

 

530,685

 

-22

     

756,601

 

946,021

 

-20

 
                               

Applicable income taxes 

 

129,996

 

182,219

 

-29

     

243,248

 

323,442

 

-25

 
                               

Net income 

$

284,336

 

348,466

 

-18

%

 

$

513,353

 

622,579

 

-18

%

 

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

 

2014

 

2014

   

2013

   

2013

   

2013

 
                               

Interest income 

$

734,290

   

722,952

   

734,466

   

742,686

   

750,207

 

Interest expense 

 

65,176

   

66,519

   

67,982

   

69,578

   

72,620

 
                               

Net interest income 

 

669,114

   

656,433

   

666,484

   

673,108

   

677,587

 
                               

Provision for credit losses 

 

30,000

   

32,000

   

42,000

   

48,000

   

57,000

 
                               

Net interest income after

                             

   provision for credit losses 

 

639,114

   

624,433

   

624,484

   

625,108

   

620,587

 
                               

Other income

                             

     Mortgage banking revenues 

 

95,656

   

80,049

   

82,169

   

64,731

   

91,262

 

     Service charges on deposit accounts 

 

107,368

   

104,198

   

110,436

   

113,839

   

111,717

 

     Trust income 

 

129,893

   

121,252

   

125,876

   

123,801

   

124,728

 

     Brokerage services income 

 

17,487

   

16,500

   

15,807

   

16,871

   

17,258

 

     Trading account and foreign exchange gains 

 

8,042

   

6,447

   

13,690

   

8,987

   

9,224

 

     Gain on bank investment securities 

 

-

   

-

   

-

   

-

   

56,457

 

     Equity in earnings of Bayview Lending Group LLC 

 

(4,055)

   

(4,454)

   

(6,136)

   

(3,881)

   

(2,453)

 

     Other revenues from operations 

 

102,021

   

96,115

   

104,404

   

153,040

   

100,496

 

          Total other income 

 

456,412

   

420,107

   

446,246

   

477,388

   

508,689

 
                               

Other expense

                             

     Salaries and employee benefits 

 

339,713

   

371,326

   

336,159

   

339,332

   

323,136

 

     Equipment and net occupancy 

 

68,084

   

71,167

   

68,670

   

66,220

   

64,278

 

     Printing, postage and supplies 

 

9,180

   

10,956

   

8,808

   

9,752

   

10,298

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

9,234

   

10,062

   

10,439

   

10,628

   

12,502

 

     FDIC assessments 

 

15,155

   

15,488

   

17,574

   

14,877

   

17,695

 

     Other costs of operations 

 

239,828

   

223,272

   

301,422

   

217,817

   

170,682

 

          Total other expense 

 

681,194

   

702,271

   

743,072

   

658,626

   

598,591

 
                               

Income before income taxes 

 

414,332

   

342,269

   

327,658

   

443,870

   

530,685

 
                               

Applicable income taxes 

 

129,996

   

113,252

   

106,236

   

149,391

   

182,219

 
                               

Net income 

$

284,336

   

229,017

   

221,422

   

294,479

   

348,466

 
                               

 

M&T BANK CORPORATION

               

Condensed Consolidated Balance Sheet

               
                 
     

June 30

     

Dollars in thousands

   

2014

 

2013

 

Change

 
                 

ASSETS

               
                 

Cash and due from banks 

 

$

1,827,197

 

1,350,015

 

35

%

                 

Interest-bearing deposits at banks 

   

3,032,530

 

2,555,354

 

19

 
                 

Federal funds sold and agreements

               

  to resell securities 

   

90,239

 

124,487

 

-28

 
                 

Trading account assets 

   

313,325

 

378,235

 

-17

 
                 

Investment securities 

   

12,120,195

 

5,210,526

 

133

 
                 

Loans and leases:

               
                 

   Commercial, financial, etc. 

   

19,105,892

 

18,021,812

 

6

 

   Real estate - commercial 

   

26,374,274

 

26,116,394

 

1

 

   Real estate - consumer 

   

8,656,766

 

10,399,749

 

-17

 

   Consumer 

   

10,610,761

 

11,433,911

 

-7

 

     Total loans and leases, net of unearned discount 

   

64,747,693

 

65,971,866

 

-2

 

        Less: allowance for credit losses 

   

917,666

 

927,065

 

-1

 
                 

  Net loans and leases 

   

63,830,027

 

65,044,801

 

-2

 
                 

Goodwill 

   

3,524,625

 

3,524,625

 

-

 
                 

Core deposit and other intangible assets 

   

49,555

 

89,918

 

-45

 
                 

Other assets 

   

6,047,309

 

4,951,044

 

22

 
                 

  Total assets 

 

$

90,835,002

 

83,229,005

 

9

%

                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits 

 

$

26,088,763

 

24,074,815

 

8

%

                 

Interest-bearing deposits 

   

43,502,602

 

41,302,212

 

5

 
                 

Deposits at Cayman Islands office 

   

237,890

 

284,443

 

-16

 
                 

  Total deposits 

   

69,829,255

 

65,661,470

 

6

 
                 

Short-term borrowings 

   

161,631

 

307,740

 

-47

 
                 

Accrued interest and other liabilities 

   

1,283,430

 

1,421,067

 

-10

 
                 

Long-term borrowings 

   

7,391,931

 

5,122,398

 

44

 
                 

  Total liabilities 

   

78,666,247

 

72,512,675

 

8

 
                 

Shareholders' equity:

               
                 

   Preferred 

   

1,231,500

 

876,796

 

40

 

   Common (1)  

   

10,937,255

 

9,839,534

 

11

 
                 

     Total shareholders' equity 

   

12,168,755

 

10,716,330

 

14

 
                 

  Total liabilities and shareholders' equity 

 

$

90,835,002

 

83,229,005

 

9

%

                 
                 

(1)  Reflects accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30,

       2014 and accumulated other comprehensive loss, net of applicable income tax effect, of $227.8 million at June 30, 2013.

 

M&T BANK CORPORATION

                               

Condensed Consolidated Balance Sheet, Five Quarter Trend

                           
         
     

June 30,

 

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Dollars in thousands

   

2014

 

2014

   

2013

   

2013

   

2013

 
                                 

ASSETS

                               
                                 

Cash and due from banks 

 

$

1,827,197

   

1,671,052

   

1,573,361

   

1,941,944

   

1,350,015

 
                                 

Interest-bearing deposits at banks 

   

3,032,530

   

3,299,185

   

1,651,138

   

1,925,811

   

2,555,354

 
                                 

Federal funds sold and agreements

                               

  to resell securities 

   

90,239

   

92,066

   

99,573

   

117,809

   

124,487

 
                                 

Trading account assets 

   

313,325

   

314,807

   

376,131

   

371,370

   

378,235

 
                                 

Investment securities 

   

12,120,195

   

10,364,249

   

8,796,497

   

8,309,773

   

5,210,526

 
                                 

Loans and leases:

                               
                                 

   Commercial, financial, etc. 

   

19,105,892

   

18,896,070

   

18,705,216

   

17,911,149

   

18,021,812

 

   Real estate - commercial 

   

26,374,274

   

26,104,086

   

26,148,208

   

26,345,267

   

26,116,394

 

   Real estate - consumer 

   

8,656,766

   

8,774,095

   

8,928,221

   

9,228,003

   

10,399,749

 

   Consumer 

   

10,610,761

   

10,360,827

   

10,291,514

   

10,174,623

   

11,433,911

 

     Total loans and leases, net of unearned discount 

   

64,747,693

   

64,135,078

   

64,073,159

   

63,659,042

   

65,971,866

 

        Less: allowance for credit losses 

   

917,666

   

916,768

   

916,676

   

916,370

   

927,065

 
                                 

  Net loans and leases 

   

63,830,027

   

63,218,310

   

63,156,483

   

62,742,672

   

65,044,801

 
                                 

Goodwill 

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

 
                                 

Core deposit and other intangible assets 

   

49,555

   

58,789

   

68,851

   

79,290

   

89,918

 
                                 

Other assets 

   

6,047,309

   

5,987,277

   

5,915,732

   

5,414,191

   

4,951,044

 
                                 

  Total assets 

 

$

90,835,002

   

88,530,360

   

85,162,391

   

84,427,485

   

83,229,005

 
                                 
                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                               
                                 

Noninterest-bearing deposits 

 

$

26,088,763

   

25,244,200

   

24,661,007

   

24,150,771

   

24,074,815

 
                                 

Interest-bearing deposits 

   

43,502,602

   

43,207,286

   

42,134,859

   

42,084,860

   

41,302,212

 
                                 

Deposits at Cayman Islands office 

   

237,890

   

247,880

   

322,746

   

316,510

   

284,443

 
                                 

  Total deposits 

   

69,829,255

   

68,699,366

   

67,118,612

   

66,552,141

   

65,661,470

 
                                 

Short-term borrowings 

   

161,631

   

230,209

   

260,455

   

246,019

   

307,740

 
                                 

Accrued interest and other liabilities 

   

1,283,430

   

1,462,725

   

1,368,922

   

1,491,797

   

1,421,067

 
                                 

Long-term borrowings 

   

7,391,931

   

6,251,197

   

5,108,870

   

5,121,326

   

5,122,398

 
                                 

  Total liabilities 

   

78,666,247

   

76,643,497

   

73,856,859

   

73,411,283

   

72,512,675

 
                                 

Shareholders' equity:

                               
                                 

   Preferred 

   

1,231,500

   

1,231,500

   

881,500

   

879,010

   

876,796

 

   Common (1) 

   

10,937,255

   

10,655,363

   

10,424,032

   

10,137,192

   

9,839,534

 
                                 

     Total shareholders' equity 

   

12,168,755

   

11,886,863

   

11,305,532

   

11,016,202

   

10,716,330

 
                                 

  Total liabilities and shareholders' equity 

 

$

90,835,002

   

88,530,360

   

85,162,391

   

84,427,485

   

83,229,005

 
                                 
                                 

(1)  Reflects accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30, 2014, and 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 and $227.8 million at June 30, 2013.

 
 

 

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, 2014 from

   

 

 

June 30

     

Dollars in millions

   

2014

 

2013

 

2014

 

June 30,

 

March 31,

   

2014

 

2013

 

Change in

 
     

Balance

Rate

 

Balance

Rate

 

Balance

Rate

 

2013

 

2014

   

Balance

Rate

 

Balance 

Rate

 

balance

 

ASSETS

                                                   
                                                     

Interest-bearing deposits at banks 

 

$

4,080

.25

%

2,403

.24

%

3,089

.25

%

70

%

 

32

%

 

$

3,587

.25

%

1,470

.24

%

144

%

                                                     

Federal funds sold and agreements

                                                   

  to resell securities 

   

90

.07

 

199

.09

 

100

.07

 

-55

   

-9

     

95

.07

 

141

.10

 

-32

 
                                                     

Trading account assets 

   

84

1.25

 

86

1.43

 

71

2.68

 

-2

   

18

     

78

1.91

 

81

2.45

 

-4

 
                                                     

Investment securities 

   

10,959

3.19

 

5,293

3.34

 

9,265

3.34

 

107

   

18

     

10,117

3.26

 

5,546

3.33

 

82

 
                                                     

Loans and leases, net of unearned discount

                                                   

  Commercial, financial, etc. 

   

18,978

3.34

 

17,713

3.61

 

18,476

3.37

 

7

   

3

     

18,728

3.35

 

17,522

3.64

 

7

 

  Real estate - commercial 

   

26,140

4.22

 

26,051

4.72

 

26,143

4.40

 

   

     

26,141

4.31

 

25,983

4.57

 

1

 

  Real estate - consumer 

   

8,746

4.36

 

10,806

4.05

 

8,844

4.19

 

-19

   

-1

     

8,795

4.27

 

10,973

4.07

 

-20

 

  Consumer 

   

10,479

4.52

 

11,409

4.58

 

10,300

4.59

 

-8

   

2

     

10,390

4.56

 

11,438

4.62

 

-9

 

     Total loans and leases, net 

   

64,343

4.05

 

65,979

4.32

 

63,763

4.14

 

-2

   

1

     

64,054

4.09

 

65,916

4.28

 

-3

 
                                                     

  Total earning assets 

   

79,556

3.73

 

73,960

4.10

 

76,288

3.87

 

8

   

4

     

77,931

3.80

 

73,154

4.12

 

7

 
                                                     

Goodwill 

   

3,525

   

3,525

   

3,525

   

   

     

3,525

   

3,525

   

 
                                                     

Core deposit and other intangible assets 

   

53

   

95

   

64

   

-44

   

-15

     

59

   

102

   

-43

 
                                                     

Other assets 

   

6,739

   

5,772

   

6,788

   

17

   

-1

     

6,763

   

5,856

   

15

 
                                                     

  Total assets 

 

$

89,873

   

83,352

   

86,665

   

8

%

 

4

%

 

$

88,278

   

82,637

   

7

%

                                                     
                                                     
                                                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                   
                                                     

Interest-bearing deposits

                                                   

  NOW accounts 

 

$

1,026

.13

 

941

.14

 

988

.12

 

9

%

 

4

%

 

$

1,007

.13

 

917

.14

 

10

%

  Savings deposits 

   

39,478

.11

 

36,459

.15

 

38,358

.12

 

8

   

3

     

38,921

.12

 

35,930

.16

 

8

 

  Time deposits 

   

3,350

.46

 

4,210

.71

 

3,460

.46

 

-20

   

-3

     

3,404

.46

 

4,323

.73

 

-21

 

  Deposits at Cayman Islands office 

   

339

.21

 

326

.25

 

380

.22

 

4

   

-11

     

360

.22

 

591

.20

 

-39

 

     Total interest-bearing deposits 

   

44,193

.14

 

41,936

.21

 

43,186

.15

 

5

   

2

     

43,692

.15

 

41,761

.22

 

5

 
                                                     

Short-term borrowings 

   

220

.05

 

343

.11

 

264

.05

 

-36

   

-17

     

242

.05

 

489

.13

 

-51

 

Long-term borrowings 

   

6,525

3.05

 

5,051

4.03

 

5,897

3.47

 

29

   

11

     

6,213

3.25

 

4,871

4.20

 

28

 
                                                     

Total interest-bearing liabilities 

   

50,938

.51

 

47,330

.62

 

49,347

.55

 

8

   

3

     

50,147

.53

 

47,121

.63

 

6

 
                                                     

Noninterest-bearing deposits 

   

25,466

   

23,744

   

24,141

   

7

   

5

     

24,807

   

23,352

   

6

 
                                                     

Other liabilities 

   

1,430

   

1,715

   

1,529

   

-17

   

-6

     

1,479

   

1,720

   

-14

 
                                                     

  Total liabilities 

   

77,834

   

72,789

   

75,017

   

7

   

4

     

76,433

   

72,193

   

6

 
                                                     

Shareholders' equity 

   

12,039

   

10,563

   

11,648

   

14

   

3

     

11,845

   

10,444

   

13

 
                                                     

  Total liabilities and shareholders' equity 

 

$

89,873

   

83,352

   

86,665

   

8

%

 

4

%

 

$

88,278

   

82,637

   

7

%

                                                     
                                                     

Net interest spread 

     

3.22

   

3.48

   

3.32

                 

3.27

   

3.49

     

Contribution of interest-free funds 

     

.18

   

.23

   

.20

                 

.19

   

.22

     

Net interest margin 

     

3.40

%

 

3.71

%

 

3.52

%

               

3.46

%

 

3.71

%

 

 

M&T BANK CORPORATION

                       

Reconciliation of Quarterly GAAP to Non-GAAP Measures

               
                         
                         
       

Three months ended

   

Six months ended

 
       

June 30

   

June 30

 
       

2014

 

2013

   

2014

 

2013

 

Income statement data

                       

In thousands, except per share

                       

Net income

                       

Net income 

   

$

284,336

 

348,466

 

$

513,353

 

622,579

 

Amortization of core deposit and other

                       

  intangible assets (1) 

     

5,638

 

7,632

   

11,783

 

15,780

 

Merger-related expenses (1) 

     

-

 

4,636

   

-

 

7,511

 

  Net operating income 

   

$

289,974

 

360,734

 

$

525,136

 

645,870

 

Earnings per common share

                       

Diluted earnings per common share 

   

$

1.98

 

2.55

 

$

3.59

 

4.53

 

Amortization of core deposit and other

                       

  intangible assets (1) 

     

.04

 

.06

   

.09

 

.12

 

Merger-related expenses (1) 

     

-

 

.04

   

-

 

.06

 

  Diluted net operating earnings per common share 

$

2.02

 

2.65

 

$

3.68

 

4.71

 

Other expense

                       

Other expense 

   

$

681,194

 

598,591

 

$

1,383,465

 

1,234,187

 

Amortization of core deposit and other

                       

  intangible assets  

     

(9,234)

 

(12,502)

   

(19,296)

 

(25,845)

 

Merger-related expenses  

     

-

 

(7,632)

   

-

 

(12,364)

 

  Noninterest operating expense 

   

$

671,960

 

578,457

 

$

1,364,169

 

1,195,978

 

Merger-related expenses

                       

Salaries and employee benefits 

   

$

-

 

300

 

$

-

 

836

 

Equipment and net occupancy 

     

-

 

489

   

-

 

690

 

Printing, postage and supplies 

     

-

 

998

   

-

 

1,825

 

Other costs of operations 

     

-

 

5,845

   

-

 

9,013

 

  Total 

   

$

-

 

7,632

 

$

-

 

12,364

 

Efficiency ratio

                       

Noninterest operating expense (numerator) 

 

$

671,960

 

578,457

 

$

1,364,169

 

1,195,978

 

Taxable-equivalent net interest income 

     

674,963

 

683,804

   

1,337,341

 

1,346,304

 

Other income 

     

456,412

 

508,689

   

876,519

 

941,571

 

Less:  Gain on bank investment securities 

   

-

 

56,457

   

-

 

56,457

 

           Net OTTI losses recognized in earnings 

 

-

 

-

   

-

 

(9,800)

 

Denominator 

   

$

1,131,375

 

1,136,036

 

$

2,213,860

 

2,241,218

 

Efficiency ratio 

     

59.39

%

50.92

%

 

61.62

%

53.36

%

                         
                         

Balance sheet data

                       

In millions

                       

Average assets

                       

Average assets 

   

$

89,873

 

83,352

 

$

88,278

 

82,637

 

Goodwill 

     

(3,525)

 

(3,525)

   

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(53)

 

(95)

   

(59)

 

(102)

 

Deferred taxes 

     

16

 

28

   

18

 

30

 

  Average tangible assets 

   

$

86,311

 

79,760

 

$

84,712

 

79,040

 

Average common equity

                       

Average total equity 

   

$

12,039

 

10,563

 

$

11,845

 

10,444

 

Preferred stock 

     

(1,231)

 

(876)

   

(1,152)

 

(876)

 

  Average common equity 

     

10,808

 

9,687

   

10,693

 

9,568

 

Goodwill 

     

(3,525)

 

(3,525)

   

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(53)

 

(95)

   

(59)

 

(102)

 

Deferred taxes 

     

16

 

28

   

18

 

30

 

  Average tangible common equity 

   

$

7,246

 

6,095

 

$

7,127

 

5,971

 
                         

At end of quarter

                       

Total assets

                       

Total assets 

   

$

90,835

 

83,229

           

Goodwill 

     

(3,525)

 

(3,525)

           

Core deposit and other intangible assets 

     

(49)

 

(90)

           

Deferred taxes 

     

15

 

27

           

  Total tangible assets 

   

$

87,276

 

79,641

           

Total common equity

                       

Total equity 

   

$

12,169

 

10,716

           

Preferred stock 

     

(1,232)

 

(877)

           

Undeclared dividends - cumulative preferred stock 

 

(3)

 

(3)

           

  Common equity, net of undeclared cumulative

                   

    preferred dividends 

     

10,934

 

9,836

           

Goodwill 

     

(3,525)

 

(3,525)

           

Core deposit and other intangible assets 

     

(49)

 

(90)

           

Deferred taxes 

     

15

 

27

           

  Total tangible common equity 

   

$

7,375

 

6,248

           
                         
                         

(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,

 
       

2014

 

2014

 

2013

 

2013

 

2013

 

Income statement data

                         

In thousands, except per share

                         

Net income

                         

Net income 

   

$

284,336

 

229,017

 

221,422

 

294,479

 

348,466

 

Amortization of core deposit and other

                         

  intangible assets (1) 

     

5,638

 

6,145

 

6,375

 

6,489

 

7,632

 

Merger-related expenses (1) 

     

-

 

-

 

-

 

-

 

4,636

 

  Net operating income 

   

$

289,974

 

235,162

 

227,797

 

300,968

 

360,734

 

Earnings per common share

                         

Diluted earnings per common share 

   

$

1.98

 

1.61

 

1.56

 

2.11

 

2.55

 

Amortization of core deposit and other

                         

  intangible assets (1) 

     

.04

 

.05

 

.05

 

.05

 

.06

 

Merger-related expenses (1) 

     

-

 

-

 

-

 

-

 

.04

 

  Diluted net operating earnings per common share 

$

2.02

 

1.66

 

1.61

 

2.16

 

2.65

 

Other expense

                         

Other expense 

   

$

681,194

 

702,271

 

743,072

 

658,626

 

598,591

 

Amortization of core deposit and other

                         

  intangible assets  

     

(9,234)

 

(10,062)

 

(10,439)

 

(10,628)

 

(12,502)

 

Merger-related expenses  

     

-

 

-

 

-

 

-

 

(7,632)

 

  Noninterest operating expense 

   

$

671,960

 

692,209

 

732,633

 

647,998

 

578,457

 

Merger-related expenses

                         

Salaries and employee benefits 

   

$

-

 

-

 

-

 

-

 

300

 

Equipment and net occupancy 

     

-

 

-

 

-

 

-

 

489

 

Printing, postage and supplies 

     

-

 

-

 

-

 

-

 

998

 

Other costs of operations 

     

-

 

-

 

-

 

-

 

5,845

 

  Total 

   

$

-

 

-

 

-

 

-

 

7,632

 

Efficiency ratio

                         

Noninterest operating expense (numerator) 

 

$

671,960

 

692,209

 

732,633

 

647,998

 

578,457

 

Taxable-equivalent net interest income 

     

674,963

 

662,378

 

672,683

 

679,213

 

683,804

 

Other income 

     

456,412

 

420,107

 

446,246

 

477,388

 

508,689

 

Less:  Gain on bank investment securities 

   

-

 

-

 

-

 

-

 

56,457

 

           Net OTTI losses recognized in earnings

 

-

 

-

 

-

 

-

 

-

 

Denominator 

   

$

1,131,375

 

1,082,485

 

1,118,929

 

1,156,601

 

1,136,036

 

Efficiency ratio 

     

59.39

%

63.95

%

65.48

%

56.03

%

50.92

%

                           
                           

Balance sheet data

                         

In millions

                         

Average assets

                         

Average assets 

   

$

89,873

 

86,665

 

85,330

 

84,011

 

83,352

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(53)

 

(64)

 

(74)

 

(84)

 

(95)

 

Deferred taxes 

     

16

 

20

 

23

 

25

 

28

 

  Average tangible assets 

   

$

86,311

 

83,096

 

81,754

 

80,427

 

79,760

 

Average common equity

                         

Average total equity 

   

$

12,039

 

11,648

 

11,109

 

10,881

 

10,563

 

Preferred stock 

     

(1,231)

 

(1,072)

 

(881)

 

(878)

 

(876)

 

  Average common equity 

     

10,808

 

10,576

 

10,228

 

10,003

 

9,687

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(53)

 

(64)

 

(74)

 

(84)

 

(95)

 

Deferred taxes

     

16

 

20

 

23

 

25

 

28

 

  Average tangible common equity 

   

$

7,246

 

7,007

 

6,652

 

6,419

 

6,095

 
                           

At end of quarter

                         

Total assets

                         

Total assets 

   

$

90,835

 

88,530

 

85,162

 

84,427

 

83,229

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(49)

 

(59)

 

(69)

 

(79)

 

(90)

 

Deferred taxes 

     

15

 

19

 

21

 

24

 

27

 

  Total tangible assets 

   

$

87,276

 

84,965

 

81,589

 

80,847

 

79,641

 

Total common equity

                         

Total equity 

   

$

12,169

 

11,887

 

11,306

 

11,016

 

10,716

 

Preferred stock 

     

(1,232)

 

(1,232)

 

(882)

 

(879)

 

(877)

 

Undeclared dividends - cumulative preferred stock 

 

(3)

 

(3)

 

(3)

 

(4)

 

(3)

 

  Common equity, net of undeclared cumulative

                     

    preferred dividends 

     

10,934

 

10,652

 

10,421

 

10,133

 

9,836

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(49)

 

(59)

 

(69)

 

(79)

 

(90)

 

Deferred taxes

     

15

 

19

 

21

 

24

 

27

 

  Total tangible common equity 

   

$

7,375

 

7,087

 

6,848

 

6,553

 

6,248

 
                           
                           

(1) After any related tax effect.