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

BUFFALO, N.Y., April 20, 2015 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2015.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the initial quarter of 2015 were $1.65, up from $1.61 in the first quarter of 2014.  GAAP-basis net income in the recent quarter was $242 million, 6% higher than the $229 million earned in the year-earlier quarter.  Net income for the first three months of 2015 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.02% and 7.99%, respectively, compared with 1.07% and 8.22%, respectively, in the corresponding 2014 period. 

Commenting on M&T's results for the recent quarter, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "Significantly higher mortgage banking revenues in the recent quarter helped M&T record a 6% increase in net income from the first quarter of last year.  Higher origination activity led to improvement in both residential and commercial mortgage banking revenues.  Credit quality remained strong during the quarter with net charge-offs continuing to be well below M&T's historical norm.  We also contained expense growth while making significant investments in our overall risk management infrastructure.  Capital levels continued to strengthen and during the quarter we received a non-objection to our capital plan and proposed capital actions from the Federal Reserve."

Diluted earnings per common share and net income in the fourth quarter of 2014 were $1.92 and $278 million, respectively.  The annualized returns on average assets and average common shareholders' equity in the final 2014 quarter were 1.12% and 9.10%, respectively.

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 $1.68 in the first three months of 2015, compared with $1.66 and $1.95 in the first and fourth quarters of 2014, respectively.  Net operating income for the first quarter of 2015 was $246 million, compared with $235 million and $282 million in the quarters ended March 31 and December 31, 2014, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.08% and 11.90%, respectively, in the first quarter of 2015.  The comparable returns were 1.15% and 12.76% in the year-earlier quarter and 1.18% and 13.55% in the fourth quarter of 2014.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $665 million in the initial quarter of 2015, up from $662 million in the year-earlier period.  Growth in average earning assets, reflecting increases of $4.1 billion in average investment securities, $2.8 billion or 4% in average loan balances and $2.0 billion in average balances of interest-bearing deposits at banks, was largely offset by a 35 basis point (hundredths of one percent) narrowing of the net interest margin to 3.17% in the recent quarter from 3.52% in the first quarter of 2014.  The growth in investment securities resulted from continued progress made in response to regulatory liquidity requirements that will become effective for M&T in January 2016.  The growth in the loan portfolio reflects higher average balances of commercial loans, commercial real estate loans and consumer loans.  The decline in the net interest margin was largely attributable to the higher balances of investment securities and interest-bearing deposits at banks that have substantially lower yields than loans.  Net interest income and the net interest margin in the fourth quarter of 2014 were $688 million and 3.10%, respectively.  The recent quarter's decline in net interest income as compared with the immediately preceding quarter resulted largely from two less days in 2015's initial quarter, lower average balances of interest-bearing deposits at banks and the net impact of actions taken in response to the liquidity requirements that take effect in 2016.  The 7 basis point improvement in net interest margin as compared with the final 2014 quarter was largely due to the lower average balances of interest-bearing deposits at banks, partially offset by higher average balances of investment securities and long-term borrowings.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $38 million in the first quarter of 2015, compared with $32 million and $33 million in the first and fourth quarters of 2014, respectively.  Net charge-offs of loans during the recent quarter aggregated $36 million, compared with $32 million in each of the first and fourth quarters of 2014.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .22% during the first three months of 2015, compared with .20% and .19% in the initial and final quarters of 2014, respectively. 

Loans classified as nonaccrual totaled $791 million or 1.18% of total loans outstanding at March 31, 2015, improved from $891 million or 1.39% a year earlier and $799 million or 1.20% at December 31, 2014. Assets taken in foreclosure of defaulted loans totaled $63 million at March 31, 2015, compared with $59 million and $64 million at March 31, 2014 and December 31, 2014, 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 $921 million or 1.37% of loans outstanding at March 31, 2015, compared with $917 million or 1.43% a year earlier and $920 million or 1.38% at December 31, 2014. 

Noninterest Income and Expense.  Noninterest income totaled $440 million in the recent quarter, $420 million in the year-earlier quarter and $452 million in the fourth quarter of 2014.  The improvement as compared with the initial 2014 quarter resulted from higher residential and commercial mortgage banking revenues while the decline as compared with the final quarter of 2014 reflects a decrease in loan syndication fees and seasonally lower trust income and service charges on deposit accounts, partially offset by higher residential mortgage banking revenues.

Effective January 1, 2015, M&T adopted amended guidance from the Financial Accounting Standards Board for investments in qualified affordable housing projects under which the initial cost of such investments is amortized to income tax expense in proportion to the tax benefits received.  The adoption of this accounting guidance did not have a significant effect on M&T's financial position or results of operations, but did result in the restatement of the consolidated financial statements for 2014 and earlier years to remove net costs associated with qualified affordable housing projects from noninterest expense and include the amortization of the investments in income tax expense. 

Reflecting the application of the new accounting guidance, noninterest expense in the first quarter of 2015 aggregated $686 million, compared with $690 million and $666 million in the first and fourth quarters of 2014, respectively.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets.  Exclusive of those expenses, noninterest operating expenses were $680 million in each of the first quarters of 2015 and 2014 and $659 million in the fourth quarter of 2014.  Operating expenses in the recent quarter as compared with the year-earlier period reflected lower costs for professional services, FDIC assessments and equipment and net occupancy expenses that were offset by higher salaries and employee benefits expenses.  The rise in operating expenses from the fourth quarter of 2014 to the initial 2015 quarter was predominantly the result of seasonally higher stock-based compensation and employee benefits expenses offset, in part, by lower professional services costs.

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 61.5% in the first quarter of 2015, 62.8% in the year-earlier quarter and 57.8% in the fourth quarter of 2014.

Balance Sheet.  M&T had total assets of $98.4 billion at March 31, 2015, up 11% from $88.5 billion a year earlier.  Investment securities at March 31, 2015 were $14.4 billion, up $4.0 billion or 39% from March 31, 2014.  Loans and leases, net of unearned discount, rose 5% to $67.1 billion at March 31, 2015 from $64.1 billion a year earlier.  Total deposits were $73.6 billion at the recent quarter-end, up 7% from $68.7 billion at March 31, 2014. 

Total shareholders' equity rose 5% to $12.5 billion at March 31, 2015 from $11.9 billion at March 31, 2014, representing 12.73% and 13.43%, respectively, of total assets.  Common shareholders' equity was $11.3 billion, or $84.95 per share at March 31, 2015, up from $10.7 billion, or $81.05 per share, a year earlier.  Tangible equity per common share rose 8% to $58.29 at March 31, 2015 from $53.92 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $83.88 and $57.06, respectively, at December 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 estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the transitional capital rules that became effective for M&T on January 1, 2015 was approximately 9.78% as of March 31, 2015.  M&T's estimated Tier 1 common ratio under previously effective regulatory capital rules would have been 9.98% at March 31, 2015, compared with 9.45% and 9.83% at March 31, 2014 and December 31, 2014, respectively. 

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first 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 #24457680.  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 23, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #24457680.  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 regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

 

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

M&T BANK CORPORATION

                 

Financial Highlights

                 
     

Three months ended

       

Amounts in thousands,

   

March 31

       

 except per share

   

2015

 

2014

 

Change

   
                   

Performance

                 
                   

Net income 

 

$

241,613

 

229,017

 

6

%

Net income available to common shareholders 

   

218,837

 

211,731

 

3

%

                   

Per common share:

                 

  Basic earnings 

 

$

1.66

 

1.63

 

2

%

  Diluted earnings 

   

1.65

 

1.61

 

2

%

  Cash dividends 

 

$

.70

 

.70

 

-

   
                   

Common shares outstanding:

                 

  Average - diluted (1) 

   

132,769

 

131,126

 

1

%

  Period end (2) 

   

132,946

 

131,431

 

1

%

                   

Return on (annualized):

                 

  Average total assets 

   

1.02

%

1.07

%

     

  Average common shareholders' equity 

   

7.99

%

8.22

%

     
                   

Taxable-equivalent net interest income 

 

$

665,426

 

662,378

 

-

   
                   

Yield on average earning assets 

   

3.54

%

3.87

%

     

Cost of interest-bearing liabilities 

   

.57

%

.55

%

     

Net interest spread 

   

2.97

%

3.32

%

     

Contribution of interest-free funds 

   

.20

%

.20

%

     

Net interest margin 

   

3.17

%

3.52

%

     
                   

Net charge-offs to average total 

                 

  net loans (annualized) 

   

.22

%

.20

%

     
                   

Net operating results (3)

                 
                   

Net operating income 

 

$

245,776

 

235,162

 

5

%

Diluted net operating earnings per common share 

   

1.68

 

1.66

 

1

%

Return on (annualized):

                 

  Average tangible assets 

   

1.08

%

1.15

%

     

  Average tangible common equity 

   

11.90

%

12.76

%

     

Efficiency ratio 

   

61.46

%

62.83

%

     
                   
                   
                   
     

At  March 31

       

Loan quality

   

2015

 

2014

 

Change

   
                   

Nonaccrual loans 

 

$

790,586

 

890,893

 

-11

%

Real estate and other foreclosed assets 

   

62,578

 

59,407

 

5

%

  Total nonperforming assets 

 

$

853,164

 

950,300

 

-10

%

                   

Accruing loans past due 90 days or more (4) 

 

$

236,621

 

307,017

 

-23

%

                   

Government guaranteed loans included in totals

                 

  above:

                 

  Nonaccrual loans 

 

$

60,508

 

75,959

 

-20

%

  Accruing loans past due 90 days or more 

   

193,618

 

291,418

 

-34

%

                   

Renegotiated loans 

 

$

198,911

 

257,889

 

-23

%

                   

Acquired accruing loans past due 90 

                 

  days or more (5) 

 

$

80,110

 

120,996

 

-34

%

                   

Purchased impaired loans (6):

                 

  Outstanding customer balance 

 

$

335,079

 

534,331

       

  Carrying amount 

   

184,018

 

303,388

       
                   

Nonaccrual loans to total net loans 

   

1.18

%

1.39

%

     
                   

Allowance for credit losses to total loans 

   

1.37

%

1.43

%

     
                   

(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

     

2015

 

2014

   

2014

 

2014

 

2014

   
                                       

Performance

                                     
                                       

Net income 

   

$

241,613

   

277,549

   

275,344

   

284,336

   

229,017

     

Net income available to common shareholders 

     

218,837

   

254,239

   

251,917

   

260,695

   

211,731

     
                                       

Per common share:

                                     

  Basic earnings 

   

$

1.66

   

1.93

   

1.92

   

1.99

   

1.63

     

  Diluted earnings 

     

1.65

   

1.92

   

1.91

   

1.98

   

1.61

     

  Cash dividends 

   

$

.70

   

.70

   

.70

   

.70

   

.70

     
                                       

Common shares outstanding:

                                     

  Average - diluted (1) 

     

132,769

   

132,278

   

132,128

   

131,828

   

131,126

     

  Period end (2) 

     

132,946

   

132,354

   

132,142

   

131,953

   

131,431

     
                                       

Return on (annualized):

                                     

  Average total assets 

     

1.02

%

 

1.12

%

 

1.17

%

 

1.27

%

 

1.07

%

   

  Average common shareholders' equity 

     

7.99

%

 

9.10

%

 

9.18

%

 

9.79

%

 

8.22

%

   
                                       

Taxable-equivalent net interest income 

   

$

665,426

   

687,847

   

674,900

   

674,963

   

662,378

     
                                       

Yield on average earning assets 

     

3.54

%

 

3.44

%

 

3.59

%

 

3.73

%

 

3.87

%

   

Cost of interest-bearing liabilities 

     

.57

%

 

.52

%

 

.54

%

 

.51

%

 

.55

%

   

Net interest spread 

     

2.97

%

 

2.92

%

 

3.05

%

 

3.22

%

 

3.32

%

   

Contribution of interest-free funds 

     

.20

%

 

.18

%

 

.18

%

 

.18

%

 

.20

%

   

Net interest margin  

     

3.17

%

 

3.10

%

 

3.23

%

 

3.40

%

 

3.52

%

   
                                       

Net charge-offs to average total 

                                     

  net loans (annualized) 

     

.22

%

 

.19

%

 

.17

%

 

.18

%

 

.20

%

   
                                       

Net operating results (3)

                                     
                                       

Net operating income 

   

$

245,776

   

281,929

   

279,838

   

289,974

   

235,162

     

Diluted net operating earnings per common share 

     

1.68

   

1.95

   

1.94

   

2.02

   

1.66

     

Return on (annualized):

                                     

  Average tangible assets 

     

1.08

%

 

1.18

%

 

1.24

%

 

1.35

%

 

1.15

%

   

  Average tangible common equity 

     

11.90

%

 

13.55

%

 

13.80

%

 

14.92

%

 

12.76

%

   

Efficiency ratio 

     

61.46

%

 

57.84

%

 

58.44

%

 

58.20

%

 

62.83

%

   
                                       
                                       
                                       
               
       

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

   

Loan quality

     

2015

 

2014

 

2014

 

2014

 

2014

   
                                       

Nonaccrual loans 

   

$

790,586

   

799,151

   

847,784

   

880,134

   

890,893

     

Real estate and other foreclosed assets 

     

62,578

   

63,635

   

67,629

   

59,793

   

59,407

     

  Total nonperforming assets 

   

$

853,164

   

862,786

   

915,413

   

939,927

   

950,300

     
                                       

Accruing loans past due 90 days or more (4) 

   

$

236,621

   

245,020

   

312,990

   

289,016

   

307,017

     
                                       

Government guaranteed loans included in totals

                                     

  above:

                                     

  Nonaccrual loans 

   

$

60,508

   

69,095

   

68,586

   

81,817

   

75,959

     

  Accruing loans past due 90 days or more 

     

193,618

   

217,822

   

265,333

   

275,846

   

291,418

     
                                       

Renegotiated loans 

   

$

198,911

   

202,633

   

209,099

   

270,223

   

257,889

     
                                       

Acquired accruing loans past due 90 

                                     

  days or more (5) 

   

$

80,110

   

110,367

   

132,147

   

134,580

   

120,996

     
                                       

Purchased impaired loans (6):

                                     

  Outstanding customer balance 

   

$

335,079

   

369,080

   

429,915

   

504,584

   

534,331

     

  Carrying amount 

     

184,018

   

197,737

   

236,662

   

282,517

   

303,388

     
                                       

Nonaccrual loans to total net loans 

     

1.18

%

 

1.20

%

 

1.29

%

 

1.36

%

 

1.39

%

   
                                       

Allowance for credit losses to total loans 

     

1.37

%

 

1.38

%

 

1.40

%

 

1.42

%

 

1.43

%

   
                                       
                                       

(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

 

2015

 

2014

 

Change

   
                 

Interest income 

$

738,087

 

722,952

 

2

%

 

Interest expense 

 

78,499

 

66,519

 

18

   
                 

Net interest income 

 

659,588

 

656,433

 

-

   
                 

Provision for credit losses 

 

38,000

 

32,000

 

19

   
                 

Net interest income after

               

   provision for credit losses 

 

621,588

 

624,433

 

-

   
                 

Other income

               

     Mortgage banking revenues 

 

101,601

 

80,049

 

27

   

     Service charges on deposit accounts 

 

102,344

 

104,198

 

-2

   

     Trust income  

 

123,734

 

121,252

 

2

   

     Brokerage services income 

 

15,461

 

16,500

 

-6

   

     Trading account and foreign exchange gains 

 

6,231

 

6,447

 

-3

   

     Loss on bank investment securities 

 

(98)

 

-

 

-

   

     Equity in earnings of Bayview Lending Group LLC 

 

(4,191)

 

(4,454)

 

-

   

     Other revenues from operations 

 

95,121

 

96,115

 

-1

   

          Total other income 

 

440,203

 

420,107

 

5

   
                 

Other expense

               

     Salaries and employee benefits 

 

389,893

 

371,326

 

5

   

     Equipment and net occupancy 

 

66,470

 

71,167

 

-7

   

     Printing, postage and supplies 

 

9,590

 

10,956

 

-12

   

     Amortization of core deposit and other 

               

        intangible assets 

 

6,793

 

10,062

 

-32

   

     FDIC assessments 

 

10,660

 

15,488

 

-31

   

     Other costs of operations 

 

202,969

 

211,235

 

-4

   

          Total other expense 

 

686,375

 

690,234

 

-1

   
                 

Income before income taxes 

 

375,416

 

354,306

 

6

   
                 

Applicable income taxes 

 

133,803

 

125,289

 

7

   
                 

Net income

$

241,613

 

229,017

 

6

%

 
                 

 

 

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

 

2015

 

2014

   

2014

   

2014

   

2014

 
                               

Interest income 

$

738,087

   

756,612

   

743,023

   

734,290

   

722,952

 

Interest expense 

 

78,499

   

74,772

   

73,964

   

65,176

   

66,519

 
                               

Net interest income 

 

659,588

   

681,840

   

669,059

   

669,114

   

656,433

 
                               

Provision for credit losses 

 

38,000

   

33,000

   

29,000

   

30,000

   

32,000

 
                               

Net interest income after

                             

   provision for credit losses 

 

621,588

   

648,840

   

640,059

   

639,114

   

624,433

 
                               

Other income

                             

     Mortgage banking revenues 

 

101,601

   

93,675

   

93,532

   

95,656

   

80,049

 

     Service charges on deposit accounts 

 

102,344

   

106,319

   

110,071

   

107,368

   

104,198

 

     Trust income  

 

123,734

   

128,442

   

128,671

   

129,893

   

121,252

 

     Brokerage services income 

 

15,461

   

15,809

   

17,416

   

17,487

   

16,500

 

     Trading account and foreign exchange gains 

 

6,231

   

8,397

   

6,988

   

8,042

   

6,447

 

     Loss on bank investment securities 

 

(98)

   

-

   

-

   

-

   

-

 

     Equity in earnings of Bayview Lending Group LLC 

 

(4,191)

   

(4,049)

   

(4,114)

   

(4,055)

   

(4,454)

 

     Other revenues from operations 

 

95,121

   

103,050

   

98,547

   

102,021

   

96,115

 

          Total other income 

 

440,203

   

451,643

   

451,111

   

456,412

   

420,107

 
                               

Other expense

                             

     Salaries and employee benefits 

 

389,893

   

345,135

   

348,776

   

339,713

   

371,326

 

     Equipment and net occupancy 

 

66,470

   

62,335

   

67,713

   

68,084

   

71,167

 

     Printing, postage and supplies 

 

9,590

   

8,881

   

9,184

   

9,180

   

10,956

 

     Amortization of core deposit and other 

                             

        intangible assets 

 

6,793

   

7,170

   

7,358

   

9,234

   

10,062

 

     FDIC assessments 

 

10,660

   

11,695

   

13,193

   

15,155

   

15,488

 

     Other costs of operations  

 

202,969

   

231,005

   

219,135

   

226,294

   

211,235

 

          Total other expense 

 

686,375

   

666,221

   

665,359

   

667,660

   

690,234

 
                               

Income before income taxes 

 

375,416

   

434,262

   

425,811

   

427,866

   

354,306

 
                               

Applicable income taxes 

 

133,803

   

156,713

   

150,467

   

143,530

   

125,289

 
                               

Net income 

$

241,613

   

277,549

   

275,344

   

284,336

   

229,017

 

 

 

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet

 
                 
     

March 31

     

Dollars in thousands

   

2015

 

2014

 

Change

 
                 

ASSETS

               
                 

Cash and due from banks 

 

$

1,269,816

 

1,671,052

 

-24

%

                 

Interest-bearing deposits at banks 

   

6,291,491

 

3,299,185

 

91

 
                 

Federal funds sold 

   

97,037

 

92,066

 

5

 
                 

Trading account assets 

   

363,085

 

314,807

 

15

 
                 

Investment securities 

   

14,393,270

 

10,364,249

 

39

 
                 

Loans and leases:

               
                 

   Commercial, financial, etc.

   

19,775,494

 

18,896,070

 

5

 

   Real estate - commercial 

   

27,845,710

 

26,104,086

 

7

 

   Real estate - consumer 

   

8,504,119

 

8,774,095

 

-3

 

   Consumer 

   

10,973,719

 

10,360,827

 

6

 

     Total loans and leases, net of unearned discount 

   

67,099,042

 

64,135,078

 

5

 

        Less: allowance for credit losses 

   

921,373

 

916,768

 

1

 
                 

  Net loans and leases 

   

66,177,669

 

63,218,310

 

5

 
                 

Goodwill 

   

3,524,625

 

3,524,625

 

-

 
                 

Core deposit and other intangible assets 

   

28,234

 

58,789

 

-52

 
                 

Other assets 

   

6,232,556

 

5,987,277

 

4

 
                 

  Total assets 

 

$

98,377,783

 

88,530,360

 

11

%

                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits 

 

$

27,181,120

 

25,244,200

 

8

%

                 

Interest-bearing deposits 

   

46,234,455

 

43,207,286

 

7

 
                 

Deposits at Cayman Islands office 

   

178,545

 

247,880

 

-28

 
                 

  Total deposits 

   

73,594,120

 

68,699,366

 

7

 
                 

Short-term borrowings 

   

193,495

 

230,209

 

-16

 
                 

Accrued interest and other liabilities 

   

1,552,724

 

1,462,725

 

6

 
                 

Long-term borrowings 

   

10,509,143

 

6,251,197

 

68

 
                 

  Total liabilities 

   

85,849,482

 

76,643,497

 

12

 
                 

Shareholders' equity:

               
                 

   Preferred 

   

1,231,500

 

1,231,500

 

-

 

   Common (1)  

   

11,296,801

 

10,655,363

 

6

 
                 

     Total shareholders' equity 

   

12,528,301

 

11,886,863

 

5

 
                 

  Total liabilities and shareholders' equity 

 

$

98,377,783

 

88,530,360

 

11

%

                 
                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $152.5 million

       at March 31, 2015 and $25.3 million at March 31, 2014.

                 

 

 

M&T BANK CORPORATION

                                 

Condensed Consolidated Balance Sheet, Five Quarter Trend

                       
           
     

March 31,

 

December 31,

   

September 30,

   

June 30,

   

March 31,

   

Dollars in thousands

   

2015

 

2014

   

2014

   

2014

   

2014

   
                                   

ASSETS

                                 
                                   

Cash and due from banks 

 

$

1,269,816

   

1,289,965

   

1,445,877

   

1,827,197

   

1,671,052

   
                                   

Interest-bearing deposits at banks 

   

6,291,491

   

6,470,867

   

7,676,064

   

3,032,530

   

3,299,185

   
                                   

Federal funds sold 

   

97,037

   

83,392

   

77,766

   

90,239

   

92,066

   
                                   

Trading account assets 

   

363,085

   

308,175

   

296,913

   

313,325

   

314,807

   
                                   

Investment securities 

   

14,393,270

   

12,993,542

   

13,348,368

   

12,120,195

   

10,364,249

   
                                   

Loans and leases:

                                 
                                   

   Commercial, financial, etc.

   

19,775,494

   

19,461,292

   

19,112,009

   

19,105,892

   

18,896,070

   

   Real estate - commercial 

   

27,845,710

   

27,567,569

   

26,942,847

   

26,374,274

   

26,104,086

   

   Real estate - consumer 

   

8,504,119

   

8,657,301

   

8,663,408

   

8,656,766

   

8,774,095

   

   Consumer 

   

10,973,719

   

10,982,794

   

10,854,095

   

10,610,761

   

10,360,827

   

     Total loans and leases, net of unearned discount 

   

67,099,042

   

66,668,956

   

65,572,359

   

64,747,693

   

64,135,078

   

        Less: allowance for credit losses 

   

921,373

   

919,562

   

918,633

   

917,666

   

916,768

   
                                   

  Net loans and leases 

   

66,177,669

   

65,749,394

   

64,653,726

   

63,830,027

   

63,218,310

   
                                   

Goodwill 

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   

3,524,625

   
                                   

Core deposit and other intangible assets 

   

28,234

   

35,027

   

42,197

   

49,555

   

58,789

   
                                   

Other assets 

   

6,232,556

   

6,230,548

   

6,162,806

   

6,047,309

   

5,987,277

   
                                   

  Total assets 

 

$

98,377,783

   

96,685,535

   

97,228,342

   

90,835,002

   

88,530,360

   
                                   
                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                                 
                                   

Noninterest-bearing deposits 

 

$

27,181,120

   

26,947,880

   

27,440,524

   

26,088,763

   

25,244,200

   
                                   

Interest-bearing deposits 

   

46,234,455

   

46,457,591

   

46,659,442

   

43,502,602

   

43,207,286

   
                                   

Deposits at Cayman Islands office 

   

178,545

   

176,582

   

241,536

   

237,890

   

247,880

   
                                   

  Total deposits 

   

73,594,120

   

73,582,053

   

74,341,502

   

69,829,255

   

68,699,366

   
                                   

Short-term borrowings 

   

193,495

   

192,676

   

164,609

   

161,631

   

230,209

   
                                   

Accrued interest and other liabilities 

   

1,552,724

   

1,567,951

   

1,327,524

   

1,283,430

   

1,462,725

   
                                   

Long-term borrowings 

   

10,509,143

   

9,006,959

   

9,061,391

   

7,391,931

   

6,251,197

   
                                   

  Total liabilities 

   

85,849,482

   

84,349,639

   

84,895,026

   

78,666,247

   

76,643,497

   
                                   

Shareholders' equity:

                                 
                                   

   Preferred 

   

1,231,500

   

1,231,500

   

1,231,500

   

1,231,500

   

1,231,500

   

   Common (1) 

   

11,296,801

   

11,104,396

   

11,101,816

   

10,937,255

   

10,655,363

   
                                   

     Total shareholders' equity 

   

12,528,301

   

12,335,896

   

12,333,316

   

12,168,755

   

11,886,863

   
                                   

  Total liabilities and shareholders' equity 

 

$

98,377,783

   

96,685,535

   

97,228,342

   

90,835,002

   

88,530,360

   
                                   
                                   

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $152.5 million at March 31, 2015, $181.0 million

     

         at December 31, 2014 and $25.3 million at March 31, 2014, and accumulated other comprehensive income, net of applicable income  

   

         tax effect, of $12.5 million at September 30, 2014 and $40.3 million at June 30, 2014.

     
                                   

 

 

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, 2015 from

 

Dollars in millions

   

2015

 

2014

 

2014

 

March 31,

 

December 31,

 
     

Balance

Rate

 

Balance

Rate

 

Balance

Rate

 

2014

 

2014

 

ASSETS

                                 
                                   

Interest-bearing deposits at banks 

 

$

5,073

.25

%

3,089

.25

%

9,054

.25

%

64

%

 

-44

%

 
                                   

Federal funds sold

   

97

.10

 

100

.07

 

86

.08

 

-2

   

14

   
                                   

Trading account assets 

   

79

2.87

 

71

2.68

 

80

1.76

 

11

   

-1

   
                                   

Investment securities 

   

13,376

2.67

 

9,265

3.34

 

12,978

2.82

 

44

   

3

   
                                   

Loans and leases, net of unearned discount

                                 

  Commercial, financial, etc. 

   

19,457

3.21

 

18,476

3.37

 

19,117

3.25

 

5

   

2

   

  Real estate - commercial 

   

27,596

4.18

 

26,143

4.40

 

27,064

4.24

 

6

   

2

   

  Real estate - consumer

   

8,572

4.15

 

8,844

4.19

 

8,654

4.19

 

-3

   

-1

   

  Consumer 

   

10,962

4.49

 

10,300

4.59

 

10,932

4.49

 

6

   

-

   

     Total loans and leases, net 

   

66,587

3.97

 

63,763

4.14

 

65,767

4.01

 

4

   

1

   
                                   

  Total earning assets 

   

85,212

3.54

 

76,288

3.87

 

87,965

3.44

 

12

   

-3

   
                                   

Goodwill 

   

3,525

   

3,525

   

3,525

   

-

   

-

   
                                   

Core deposit and other intangible assets 

   

31

   

64

   

38

   

-50

   

-18

   
                                   

Other assets 

   

7,124

   

6,788

   

7,116

   

5

   

-

   
                                   

  Total assets 

 

$

95,892

   

86,665

   

98,644

   

11

%

 

-3

%

 
                                   
                                   
                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                                 
                                   

Interest-bearing deposits

                                 

  NOW accounts 

 

$

1,121

.11

 

988

.12

 

1,083

.14

 

14

%

 

4

%

 

  Savings deposits 

   

41,525

.10

 

38,358

.12

 

42,949

.10

 

8

   

-3

   

  Time deposits 

   

3,017

.50

 

3,460

.46

 

3,128

.50

 

-13

   

-4

   

  Deposits at Cayman Islands office 

   

224

.27

 

380

.22

 

265

.22

 

-41

   

-16

   

     Total interest-bearing deposits 

   

45,887

.13

 

43,186

.15

 

47,425

.13

 

6

   

-3

   
                                   

Short-term borrowings 

   

196

.07

 

264

.05

 

195

.05

 

-26

   

1

   

Long-term borrowings 

   

9,835

2.64

 

5,897

3.47

 

8,954

2.62

 

67

   

10

   
                                   

Total interest-bearing liabilities 

   

55,918

.57

 

49,347

.55

 

56,574

.52

 

13

   

-1

   
                                   

Noninterest-bearing deposits 

   

25,811

   

24,141

   

28,090

   

7

   

-8

   
                                   

Other liabilities 

   

1,704

   

1,529

   

1,538

   

11

   

11

   
                                   

  Total liabilities

   

83,433

   

75,017

   

86,202

   

11

   

-3

   
                                   

Shareholders' equity 

   

12,459

   

11,648

   

12,442

   

7

   

-

   
                                   

  Total liabilities and shareholders' equity 

 

$

95,892

   

86,665

   

98,644

   

11

%

 

-3

%

 
                                   
                                   

Net interest spread 

     

2.97

   

3.32

   

2.92

             

Contribution of interest-free funds 

     

.20

   

.20

   

.18

             

Net interest margin  

     

3.17

%

 

3.52

%

 

3.10

%

           
                                   
                                   

 

 

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,

 
       

2015

 

2014

 

2014

 

2014

 

2014

 

Income statement data

                         

In thousands, except per share

                         

Net income

                         

Net income 

   

$

241,613

 

277,549

 

275,344

 

284,336

 

229,017

 

Amortization of core deposit and other

                         

  intangible assets (1) 

     

4,163

 

4,380

 

4,494

 

5,638

 

6,145

 

  Net operating income 

   

$

245,776

 

281,929

 

279,838

 

289,974

 

235,162

 

Earnings per common share

                         

Diluted earnings per common share 

   

$

1.65

 

1.92

 

1.91

 

1.98

 

1.61

 

Amortization of core deposit and other

                         

  intangible assets (1)

     

.03

 

.03

 

.03

 

.04

 

.05

 

  Diluted net operating earnings per common share 

$

1.68

 

1.95

 

1.94

 

2.02

 

1.66

 

Other expense

                         

Other expense 

   

$

686,375

 

666,221

 

665,359

 

667,660

 

690,234

 

Amortization of core deposit and other

                         

  intangible assets 

     

(6,793)

 

(7,170)

 

(7,358)

 

(9,234)

 

(10,062)

 

  Noninterest operating expense 

   

$

679,582

 

659,051

 

658,001

 

658,426

 

680,172

 

Efficiency ratio

                         

Noninterest operating expense (numerator) 

 

$

679,582

 

659,051

 

658,001

 

658,426

 

680,172

 

Taxable-equivalent net interest income 

     

665,426

 

687,847

 

674,900

 

674,963

 

662,378

 

Other income 

     

440,203

 

451,643

 

451,111

 

456,412

 

420,107

 

Less:  Loss on bank investment securities 

   

(98)

 

-

 

-

 

-

 

-

 

Denominator 

   

$

1,105,727

 

1,139,490

 

1,126,011

 

1,131,375

 

1,082,485

 

Efficiency ratio 

     

61.46

%

57.84

%

58.44

%

58.20

%

62.83

%

                           
                           

Balance sheet data

                         

In millions

                         

Average assets

                         

Average assets 

   

$

95,892

 

98,644

 

93,245

 

89,873

 

86,665

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(31)

 

(38)

 

(45)

 

(53)

 

(64)

 

Deferred taxes 

     

10

 

12

 

14

 

16

 

20

 

  Average tangible assets 

   

$

92,346

 

95,093

 

89,689

 

86,311

 

83,096

 

Average common equity

                         

Average total equity 

   

$

12,459

 

12,442

 

12,247

 

12,039

 

11,648

 

Preferred stock 

     

(1,232)

 

(1,231)

 

(1,232)

 

(1,231)

 

(1,072)

 

  Average common equity 

     

11,227

 

11,211

 

11,015

 

10,808

 

10,576

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(31)

 

(38)

 

(45)

 

(53)

 

(64)

 

Deferred taxes 

     

10

 

12

 

14

 

16

 

20

 

  Average tangible common equity 

   

$

7,681

 

7,660

 

7,459

 

7,246

 

7,007

 
                           

At end of quarter

                         

Total assets

                         

Total assets 

   

$

98,378

 

96,686

 

97,228

 

90,835

 

88,530

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(28)

 

(35)

 

(42)

 

(49)

 

(59)

 

Deferred taxes 

     

9

 

11

 

13

 

15

 

19

 

  Total tangible assets 

   

$

94,834

 

93,137

 

93,674

 

87,276

 

84,965

 

Total common equity

                         

Total equity 

   

$

12,528

 

12,336

 

12,333

 

12,169

 

11,887

 

Preferred stock 

     

(1,232)

 

(1,231)

 

(1,232)

 

(1,232)

 

(1,232)

 

Undeclared dividends - cumulative preferred stock 

 

(2)

 

(3)

 

(2)

 

(3)

 

(3)

 

  Common equity, net of undeclared cumulative

                     

    preferred dividends 

     

11,294

 

11,102

 

11,099

 

10,934

 

10,652

 

Goodwill 

     

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

(3,525)

 

Core deposit and other intangible assets 

     

(28)

 

(35)

 

(42)

 

(49)

 

(59)

 

Deferred taxes 

     

9

 

11

 

13

 

15

 

19

 

  Total tangible common equity 

   

$

7,750

 

7,553

 

7,545

 

7,375

 

7,087

 
                           
                           

(1) After any related tax effect.