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

BUFFALO, N.Y., April 18, 2016 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2016.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the initial quarter of 2016 were $1.73, up 5% from $1.65 in each of the first and fourth quarters of 2015.  GAAP-basis net income in the recent quarter was $299 million, 24% higher than the $242 million earned in the year-earlier quarter and 10% above the $271 million recorded in the final 2015 quarter.  Net income for the initial 2016 quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was .97% and 7.44%, respectively, compared with 1.02% and 7.99%, respectively, in the corresponding 2015 period and .93% and 7.22% in the fourth quarter of 2015.  M&T's first quarter 2016 results reflect a full-quarter impact of its November 1, 2015 acquisition of Hudson City Bancorp, Inc. ("Hudson City"). 

Commenting on M&T's recent quarter performance, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "Results in 2016's initial quarter reflected strong growth in net interest income, solid loan growth, stable credit performance and well-controlled expenses, leading to an 11% rise in diluted net operating earnings per share, to $1.87, over the year-earlier period.  The quarter was highlighted by the full integration of Hudson City's operations through the successful conversion of the deposit system and branch network.  Our entire banking franchise is now operating under the M&T flag, enabling us to extend to our new customers our unwavering commitment to outstanding service."

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such items are considered by management to be "nonoperating" in nature.  The amounts of such "nonoperating" expense are presented in the tables that accompany this release.  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 $1.87 in the first three months of 2016, up 11% from $1.68 in the year-earlier period.  Net operating income for the initial quarter of 2016 rose 30% to $320 million from $246 million in the first quarter of 2015.  Diluted net operating earnings per common share and net operating income in the fourth quarter of 2015 were $2.09 and $338 million, respectively. 

Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.09% and 11.62%, respectively, in the first quarter of 2016, compared with 1.08% and 11.90%, respectively, in the year-earlier quarter and 1.21% and 13.26%, respectively, in the fourth quarter of 2015.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income aggregated $878 million in the initial quarter of 2016, up 32% from $665 million in the year-earlier period. That growth resulted predominantly from a 31% rise in average earning assets, which grew to $111.2 billion in the recent quarter from $85.2 billion in the year-earlier quarter.  The improvement reflects the Hudson City acquisition that added approximately $18.1 billion to average loans in the recent quarter plus growth of $2.9 billion in M&T's other loan portfolios.  The net interest margin in the first quarter of 2016 was 3.18%, improved slightly from 3.17% in the initial 2015 quarter.  Taxable-equivalent net interest income in the fourth quarter of 2015 was $813 million.  The $65 million improvement in the recent quarter as compared with the final 2015 quarter was largely due to the full-quarter impact of the Hudson City transaction, growth in commercial loans and commercial real estate loans and a 6 basis point widening of the net interest margin.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $49 million in the first quarter of 2016, compared with $38 million in the year-earlier quarter.  The provision in the final 2015 quarter was $58 million, reflecting a merger-related charge of $21 million associated with loans obtained in the Hudson City acquisition.  Net charge-offs of loans during the recent quarter aggregated $42 million, compared with $36 million in each of the first and fourth quarters of 2015. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% during the first three months of 2016, compared with .22% and .18% in the first and fourth quarters of 2015, respectively. 

Loans classified as nonaccrual totaled $877 million or 1.00% of total loans outstanding at March 31, 2016, compared with $791 million or 1.18% a year earlier and $799 million or .91% at December 31, 2015.  Loans obtained from Hudson City that were over 90 days past due as of the acquisition date are reported as purchased impaired loans and, in accordance with GAAP, interest continues to accrue on those loans despite their delinquency status. Those acquired loans have not been reported as nonaccrual as of either March 31, 2016 or December 31, 2015. The higher level of nonaccrual loans at the recent quarter-end reflects the normal migration of $80 million of previously performing loans obtained in the acquisition of Hudson City that became over 90 days past due during the recent quarter and, as such, were not identifiable as purchased impaired as of the acquisition date.  Assets taken in foreclosure of defaulted loans totaled $188 million at March 31, 2016, compared with $63 million a year earlier and $195 million at December 31, 2015.  The higher level of such assets at the two most recent quarter-ends resulted from residential real estate properties associated with the Hudson City acquisition. 

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 for credit losses totaled $963 million at March 31, 2016, compared with $921 million a year earlier and $956 million at December 31, 2015.  The allowance expressed as a percentage of outstanding loans was 1.10% at March 31, 2016, compared with 1.37% at March 31, 2015 and 1.09% at December 31, 2015.  The decline in those ratios at the two most recent quarter-ends as compared with March 31, 2015 reflects the impact of residential mortgage loans obtained in the Hudson City acquisition. 

Noninterest Income and Expense.  Noninterest income totaled $421 million in the initial 2016 quarter, $440 million in the year-earlier quarter and $448 million in the fourth quarter of 2015.  As compared with the first quarter of 2015, residential mortgage banking revenues declined in the recent quarter, reflecting lower loan origination volumes and loan servicing income, and trust income decreased predominantly from the April 2015 sale of M&T's trade processing business within its retirement services division.  As compared with the final quarter of 2015, noninterest income in the recent quarter reflected lower levels of credit-related fees and commercial mortgage banking revenues. 

Noninterest expense in the first quarter of 2016 aggregated $776 million, compared with $686 million and $786 million in the first and fourth quarters of 2015, respectively.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $741 million in the first quarter of 2016, $680 million in the year-earlier quarter and $701 million in the fourth quarter of 2015.  The most significant factor for the higher level of operating expenses in the recent quarter as compared to the initial 2015 quarter was the impact of operations obtained in the Hudson City acquisition.  The rise in operating expenses from 2015's final quarter reflected the full-quarter impact of the Hudson City acquisition, along with 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.  Notably, M&T's efficiency ratio improved to 57.0% in the first quarter of 2016 from 61.5% in the year-earlier quarter.

Balance Sheet.  M&T had total assets of $124.6 billion at March 31, 2016, up 27% from $98.4 billion a year earlier.  Investment securities at the recent quarter-end were $15.5 billion, up $1.1 billion or 7% from March 31, 2015.  Loans and leases, net of unearned discount, rose 31% to $87.9 billion at March 31, 2016 from $67.1 billion a year earlier.  Total deposits were $94.2 billion at the recent quarter-end, up 28% from $73.6 billion at March 31, 2015. 

Reflecting $3.1 billion of common equity issued in the acquisition of Hudson City, total shareholders' equity rose $3.8 billion or 31% to $16.4 billion at March 31, 2016 from $12.5 billion at March 31, 2015, representing 13.12% and 12.73%, respectively, of total assets.  Common shareholders' equity was $15.1 billion, or $95.00 per share at March 31, 2016, up from $11.3 billion, or $84.95 per share, a year earlier. Tangible equity per common share rose 13% to $65.65 at March 31, 2016 from $58.29 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $93.60 and $64.28, respectively, at December 31, 2015.  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 regulatory capital rules was approximately 11.06% at March 31, 2016. 

M&T's Board of Directors authorized the purchase of up to $254 million of shares of common stock through the end of the second quarter of 2016.  During the first quarter, M&T purchased 948,545 shares of common stock under that authorization at an average cost per share of $105.42, for a total cost of $100 million.

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 #88263531.  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 21, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #88263531.  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, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, 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

   

2016

 

2015

 

Change

       
                         
 

Performance

                     
                         
 

Net income

 

$

298,528

 

241,613

 

24

%

   
 

Net income available to common shareholders

   

275,748

 

218,837

 

26

%

   
                         
 

Per common share:

                     
 

  Basic earnings

 

$

1.74

 

1.66

 

5

%

   
 

  Diluted earnings

   

1.73

 

1.65

 

5

%

   
 

  Cash dividends

 

$

.70

 

.70

 

-

       
                         
 

Common shares outstanding:

                     
 

  Average - diluted (1)

   

159,181

 

132,769

 

20

%

   
 

  Period end (2)

   

159,156

 

132,946

 

20

%

   
                         
 

Return on (annualized):

                     
 

  Average total assets 

   

.97

%

1.02

%

         
 

  Average common shareholders' equity

   

7.44

%

7.99

%

         
                         
 

Taxable-equivalent net interest income

 

$

878,296

 

665,426

 

32

%

   
                         
 

Yield on average earning assets

   

3.54

%

3.54

%

         
 

Cost of interest-bearing liabilities

   

.53

%

.57

%

         
 

Net interest spread

   

3.01

%

2.97

%

         
 

Contribution of interest-free funds

   

.17

%

.20

%

         
 

Net interest margin 

   

3.18

%

3.17

%

         
                         
 

Net charge-offs to average total 

                     
 

  net loans (annualized)

   

.19

%

.22

%

         
                         
 

Net operating results (3)

                     
                         
 

Net operating income

 

$

320,064

 

245,776

 

30

%

   
 

Diluted net operating earnings per common share

   

1.87

 

1.68

 

11

%

   
 

Return on (annualized):

                     
 

  Average tangible assets

   

1.09

%

1.08

%

         
 

  Average tangible common equity

   

11.62

%

11.90

%

         
 

Efficiency ratio

   

57.00

%

61.46

%

         
                         
                         
                         
       

 

At  March 31

           
 

Loan quality

   

2016

 

2015

 

Change

       
                         
 

Nonaccrual loans

 

$

876,691

 

790,586

 

11

%

   
 

Real estate and other foreclosed assets

   

188,004

 

62,578

 

200

%

   
 

  Total nonperforming assets

 

$

1,064,695

 

853,164

 

25

%

   
                         
 

Accruing loans past due 90 days or more (4)

 

$

336,170

 

236,621

 

42

%

   
                         
 

Government guaranteed loans included in totals above:

                     
 

  Nonaccrual loans

 

$

49,688

 

60,508

 

-18

%

   
 

  Accruing loans past due 90 days or more

   

279,340

 

193,618

 

44

%

   
                         
 

Renegotiated loans

 

$

200,771

 

198,911

 

1

%

   
                         
 

Accruing loans acquired at a discount past due 90 

                     
 

  days or more (5)

 

$

61,767

 

80,110

 

-23

%

   
                         
 

Purchased impaired loans (6):

                     
 

  Outstanding customer balance

 

$

1,124,776

 

335,079

           
 

  Carrying amount

   

715,874

 

184,018

           
                         
 

Nonaccrual loans to total net loans

   

1.00

%

1.18

%

         
                         
 

Allowance for credit losses to total loans

   

1.10

%

1.37

%

         
                         
                         
 

(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 loans acquired at a discount. 

                     
 

(5)  Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased

 

       impaired loans that are presented separately.

             
 

(6)  Accruing loans acquired at a discount 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

     

2016

 

2015

 

2015

 

2015

 

2015

     
                                         

Performance

                                       
                                         

Net income

   

$

298,528

   

270,965

   

280,401

   

286,688

   

241,613

       

Net income available to common shareholders

     

275,748

   

248,059

   

257,346

   

263,481

   

218,837

       
                                         

Per common share:

                                       

  Basic earnings

   

$

1.74

   

1.65

   

1.94

   

1.99

   

1.66

       

  Diluted earnings

     

1.73

   

1.65

   

1.93

   

1.98

   

1.65

       

  Cash dividends

   

$

.70

   

.70

   

.70

   

.70

   

.70

       
                                         

Common shares outstanding:

                                       

  Average - diluted (1)

     

159,181

   

150,718

   

133,376

   

133,116

   

132,769

       

  Period end (2)

     

159,156

   

159,600

   

133,311

   

133,099

   

132,946

       
                                         

Return on (annualized):

                                       

  Average total assets 

     

.97

%

 

.93

%

 

1.13

%

 

1.18

%

 

1.02

%

     

  Average common shareholders' equity 

     

7.44

%

 

7.22

%

 

8.93

%

 

9.37

%

 

7.99

%

     
                                         

Taxable-equivalent net interest income

   

$

878,296

   

813,401

   

699,075

   

689,148

   

665,426

       
                                         

Yield on average earning assets

     

3.54

%

 

3.48

%

 

3.48

%

 

3.52

%

 

3.54

%

     

Cost of interest-bearing liabilities

     

.53

%

 

.54

%

 

.55

%

 

.55

%

 

.57

%

     

Net interest spread

     

3.01

%

 

2.94

%

 

2.93

%

 

2.97

%

 

2.97

%

     

Contribution of interest-free funds

     

.17

%

 

.18

%

 

.21

%

 

.20

%

 

.20

%

     

Net interest margin 

     

3.18

%

 

3.12

%

 

3.14

%

 

3.17

%

 

3.17

%

     
                                         

Net charge-offs to average total 

                                       

  net loans (annualized)

     

.19

%

 

.18

%

 

.24

%

 

.13

%

 

.22

%

     
                                         

Net operating results (3)

                                       
                                         

Net operating income 

   

$

320,064

   

337,613

   

282,907

   

290,341

   

245,776

       

Diluted net operating earnings per common share

     

1.87

   

2.09

   

1.95

   

2.01

   

1.68

       

Return on (annualized):

                                       

  Average tangible assets

     

1.09

%

 

1.21

%

 

1.18

%

 

1.24

%

 

1.08

%

     

  Average tangible common equity

     

11.62

%

 

13.26

%

 

12.98

%

 

13.76

%

 

11.90

%

     

Efficiency ratio

     

57.00

%

 

55.53

%

 

57.05

%

 

58.23

%

 

61.46

%

     
                                         
                                         
                                         
                   
       

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

     

Loan quality

     

2016

 

2015

 

2015

 

2015

 

2015

     
                                         

Nonaccrual loans

   

$

876,691

   

799,409

   

787,098

   

797,146

   

790,586

       

Real estate and other foreclosed assets

     

188,004

   

195,085

   

66,144

   

63,734

   

62,578

       

  Total nonperforming assets

   

$

1,064,695

   

994,494

   

853,242

   

860,880

   

853,164

       
                                         

Accruing loans past due 90 days or more (4)

   

$

336,170

   

317,441

   

231,465

   

238,568

   

236,621

       
                                         

Government guaranteed loans included in totals

                                       

  above:

                                       

  Nonaccrual loans

   

$

49,688

   

47,052

   

48,955

   

58,259

   

60,508

       

  Accruing loans past due 90 days or more

     

279,340

   

276,285

   

193,998

   

206,775

   

193,618

       
                                         

Renegotiated loans

   

$

200,771

   

182,865

   

189,639

   

197,145

   

198,911

       
                                         

Accruing loans acquired at a discount past due 90 

                                       

  days or more (5)

   

$

61,767

   

68,473

   

80,827

   

78,591

   

80,110

       
                                         

Purchased impaired loans (6):

                                       

  Outstanding customer balance

   

$

1,124,776

   

1,204,004

   

278,979

   

312,507

   

335,079

       

  Carrying amount

     

715,874

   

768,329

   

149,421

   

169,240

   

184,018

       
                                         

Nonaccrual loans to total net loans

     

1.00

%

 

.91

%

 

1.15

%

 

1.17

%

 

1.18

%

     
                                         

Allowance for credit losses to total loans

     

1.10

%

 

1.09

%

 

1.36

%

 

1.36

%

 

1.37

%

     
                                         
                                         

(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 loans acquired at a discount. 

                                       

(5)  Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

 

(6)  Accruing loans acquired at a discount 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

 

2016

 

2015

 

Change

 
               

Interest income

$

972,834

 

738,087

 

32

%

Interest expense

 

100,870

 

78,499

 

28

 
               

Net interest income

 

871,964

 

659,588

 

32

 
               

Provision for credit losses

 

49,000

 

38,000

 

29

 
               

Net interest income after

             

   provision for credit losses

 

822,964

 

621,588

 

32

 
               

Other income

             

     Mortgage banking revenues

 

82,063

 

101,601

 

-19

 

     Service charges on deposit accounts

 

102,405

 

102,344

 

-

 

     Trust income

 

111,077

 

123,734

 

-10

 

     Brokerage services income

 

16,004

 

15,461

 

4

 

     Trading account and foreign exchange gains

 

7,458

 

6,231

 

20

 

     Gain (loss) on bank investment securities

 

4

 

(98)

 

-

 

     Equity in earnings of Bayview Lending Group LLC

 

(3,619)

 

(4,191)

 

-

 

     Other revenues from operations

 

105,541

 

95,121

 

11

 

          Total other income

 

420,933

 

440,203

 

-4

 
               

Other expense

             

     Salaries and employee benefits

 

431,785

 

389,893

 

11

 

     Equipment and net occupancy

 

74,178

 

66,470

 

12

 

     Printing, postage and supplies

 

11,986

 

9,590

 

25

 

     Amortization of core deposit and other 

             

        intangible assets

 

12,319

 

6,793

 

81

 

     FDIC assessments

 

25,225

 

10,660

 

137

 

     Other costs of operations 

 

220,602

 

202,969

 

9

 

          Total other expense

 

776,095

 

686,375

 

13

 
               

Income before income taxes

 

467,802

 

375,416

 

25

 
               

Applicable income taxes

 

169,274

 

133,803

 

27

 
               

Net income

$

298,528

 

241,613

 

24

%

               

 

 

                               
                               

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

 

2016

 

2015

 

2015

 

2015

 

2015

                             

Interest income

$

972,834

   

902,377

   

770,026

   

760,354

 

738,087

 

Interest expense

 

100,870

   

95,333

   

77,199

   

77,226

 

78,499

 
                             

Net interest income

 

871,964

   

807,044

   

692,827

   

683,128

 

659,588

 
                             

Provision for credit losses

 

49,000

   

58,000

   

44,000

   

30,000

 

38,000

 
                             

Net interest income after

                           

   provision for credit losses

 

822,964

   

749,044

   

648,827

   

653,128

 

621,588

 
                             

Other income

                           

     Mortgage banking revenues

 

82,063

   

87,500

   

84,035

   

102,602

 

101,601

 

     Service charges on deposit accounts

 

102,405

   

105,748

   

107,259

   

105,257

 

102,344

 

     Trust income 

 

111,077

   

114,564

   

113,744

   

118,598

 

123,734

 

     Brokerage services income

 

16,004

   

15,546

   

16,902

   

16,861

 

15,461

 

     Trading account and foreign exchange gains

 

7,458

   

9,938

   

8,362

   

6,046

 

6,231

 

     Gain (loss) on bank investment securities

 

4

   

(22)

   

-

   

(10)

 

(98)

 

     Equity in earnings of Bayview Lending Group LLC

 

(3,619)

   

(3,224)

   

(3,721)

   

(3,131)

 

(4,191)

 

     Other revenues from operations

 

105,541

   

118,058

   

113,118

   

150,804

 

95,121

 

          Total other income

 

420,933

   

448,108

   

439,699

   

497,027

 

440,203

 
                             

Other expense

                           

     Salaries and employee benefits

 

431,785

   

434,413

   

363,567

   

361,657

 

389,893

 

     Equipment and net occupancy

 

74,178

   

70,747

   

68,470

   

66,852

 

66,470

 

     Printing, postage and supplies

 

11,986

   

10,905

   

8,691

   

9,305

 

9,590

 

     Amortization of core deposit and other 

                           

        intangible assets

 

12,319

   

9,576

   

4,090

   

5,965

 

6,793

 

     FDIC assessments

 

25,225

   

19,562

   

11,090

   

10,801

 

10,660

 

     Other costs of operations

 

220,602

   

240,910

   

197,908

   

242,048

 

202,969

 

          Total other expense

 

776,095

   

786,113

   

653,816

   

696,628

 

686,375

 
                             

Income before income taxes

 

467,802

   

411,039

   

434,710

   

453,527

 

375,416

 
                             

Applicable income taxes

 

169,274

   

140,074

   

154,309

   

166,839

 

133,803

 
                             

Net income

$

298,528

   

270,965

   

280,401

   

286,688

 

241,613

 
                             

 

 

 

M&T BANK CORPORATION

               

Condensed Consolidated Balance Sheet

               
                 
     

March 31

     

Dollars in thousands

   

2016

 

2015

 

Change

 
                 

ASSETS

               
                 

Cash and due from banks

 

$

1,178,175

 

1,269,816

 

-7

%

                 

Interest-bearing deposits at banks

   

9,545,181

 

6,291,491

 

52

 
                 

Federal funds sold

   

-

 

97,037

 

-100

 
                 

Trading account assets

   

467,987

 

363,085

 

29

 
                 

Investment securities

   

15,467,320

 

14,393,270

 

7

 
                 

Loans and leases:

               
                 

   Commercial, financial, etc. 

   

21,226,577

 

19,775,494

 

7

 

   Real estate - commercial

   

29,713,293

 

27,845,710

 

7

 

   Real estate - consumer

   

25,299,638

 

8,504,119

 

197

 

   Consumer

   

11,632,958

 

10,973,719

 

6

 

     Total loans and leases, net of unearned discount

   

87,872,466

 

67,099,042

 

31

 

        Less: allowance for credit losses

   

962,752

 

921,373

 

4

 
                 

  Net loans and leases

   

86,909,714

 

66,177,669

 

31

 
                 

Goodwill

   

4,593,112

 

3,524,625

 

30

 
                 

Core deposit and other intangible assets

   

127,949

 

28,234

 

353

 
                 

Other assets

   

6,336,194

 

6,232,556

 

2

 
                 

  Total assets

 

$

124,625,632

 

98,377,783

 

27

%

                 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               
                 

Noninterest-bearing deposits

 

$

29,709,218

 

27,181,120

 

9

%

                 

Interest-bearing deposits

   

64,338,571

 

46,234,455

 

39

 
                 

Deposits at Cayman Islands office

   

166,787

 

178,545

 

-7

 
                 

  Total deposits

   

94,214,576

 

73,594,120

 

28

 
                 

Short-term borrowings

   

1,766,826

 

193,495

 

813

 
                 

Accrued interest and other liabilities

   

1,948,142

 

1,552,724

 

25

 
                 

Long-term borrowings

   

10,341,035

 

10,509,143

 

-2

 
                 

  Total liabilities

   

108,270,579

 

85,849,482

 

26

 
                 

Shareholders' equity:

               
                 

   Preferred

   

1,231,500

 

1,231,500

 

-

 

   Common (1) 

   

15,123,553

 

11,296,801

 

34

 
                 

     Total shareholders' equity

   

16,355,053

 

12,528,301

 

31

 
                 

  Total liabilities and shareholders' equity

 

$

124,625,632

 

98,377,783

 

27

%

                 
                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $150.2 million

 

       at March 31, 2016 and $152.5 million at March 31, 2015.

     

 

 

                                 
                                 

M&T BANK CORPORATION

                       

Condensed Consolidated Balance Sheet, Five Quarter Trend

                 
           
     

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

   

Dollars in thousands

   

2016

 

2015

   

2015

   

2015

 

2015

   
                                 

ASSETS

                               
                                 

Cash and due from banks

 

$

1,178,175

   

1,368,040

   

1,249,704

   

1,347,858

 

1,269,816

   
                                 

Interest-bearing deposits at banks

   

9,545,181

   

7,594,350

   

4,713,266

   

4,045,852

 

6,291,491

   
                                 

Federal funds sold

   

-

   

-

   

-

   

3,000

 

97,037

   
                                 

Trading account assets

   

467,987

   

273,783

   

340,710

   

277,009

 

363,085

   
                                 

Investment securities

   

15,467,320

   

15,656,439

   

14,494,539

   

14,751,637

 

14,393,270

   
                                 

Loans and leases:

                               
                                 

   Commercial, financial, etc. 

   

21,226,577

   

20,422,338

   

20,233,177

   

20,111,028

 

19,775,494

   

   Real estate - commercial

   

29,713,293

   

29,197,311

   

28,720,537

   

28,442,488

 

27,845,710

   

   Real estate - consumer

   

25,299,638

   

26,270,103

   

8,211,062

   

8,444,542

 

8,504,119

   

   Consumer

   

11,632,958

   

11,599,747

   

11,375,472

   

11,133,194

 

10,973,719

   

     Total loans and leases, net of unearned discount

   

87,872,466

   

87,489,499

   

68,540,248

   

68,131,252

 

67,099,042

   

        Less: allowance for credit losses

   

962,752

   

955,992

   

933,798

   

929,987

 

921,373

   
                                 

  Net loans and leases

   

86,909,714

   

86,533,507

   

67,606,450

   

67,201,265

 

66,177,669

   
                                 

Goodwill

   

4,593,112

   

4,593,112

   

3,513,325

   

3,513,325

 

3,524,625

   
                                 

Core deposit and other intangible assets

   

127,949

   

140,268

   

18,179

   

22,269

 

28,234

   
                                 

Other assets

   

6,336,194

   

6,628,385

   

5,860,889

   

5,917,861

 

6,232,556

   
                                 

  Total assets

 

$

124,625,632

   

122,787,884

   

97,797,062

   

97,080,076

 

98,377,783

   
                                 
                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                               
                                 

Noninterest-bearing deposits

 

$

29,709,218

   

29,110,635

   

28,189,330

   

27,674,588

 

27,181,120

   
                                 

Interest-bearing deposits

   

64,338,571

   

62,677,036

   

44,549,028

   

44,787,590

 

46,234,455

   
                                 

Deposits at Cayman Islands office

   

166,787

   

170,170

   

206,185

   

167,441

 

178,545

   
                                 

  Total deposits

   

94,214,576

   

91,957,841

   

72,944,543

   

72,629,619

 

73,594,120

   
                                 

Short-term borrowings

   

1,766,826

   

2,132,182

   

173,783

   

153,299

 

193,495

   
                                 

Accrued interest and other liabilities

   

1,948,142

   

1,870,714

   

1,582,513

   

1,453,249

 

1,552,724

   
                                 

Long-term borrowings

   

10,341,035

   

10,653,858

   

10,174,289

   

10,175,912

 

10,509,143

   
                                 

  Total liabilities

   

108,270,579

   

106,614,595

   

84,875,128

   

84,412,079

 

85,849,482

   
                                 

Shareholders' equity:

                               
                                 

   Preferred

   

1,231,500

   

1,231,500

   

1,231,500

   

1,231,500

 

1,231,500

   

   Common (1) 

   

15,123,553

   

14,941,789

   

11,690,434

   

11,436,497

 

11,296,801

   
                                 

     Total shareholders' equity

   

16,355,053

   

16,173,289

   

12,921,934

   

12,667,997

 

12,528,301

   
                                 

  Total liabilities and shareholders' equity

 

$

124,625,632

   

122,787,884

   

97,797,062

   

97,080,076

 

98,377,783

   
                                 
                                 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $150.2 million at March 31, 2016, $251.6 million

 

         at December 31, 2015, $163.5 million at September 30, 2015, $217.5 million at June 30, 2015 and $152.5 million at March 31, 2015.

 
                                 
                                 
                                 
                                 
         

 

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, 2016 from

 

Dollars in millions

   

2016

 

2015

 

2015

 

March 31,

 

December 31,

 
     

Balance

Rate

 

Balance

Rate

 

Balance

Rate

 

2015

 

2015

 

ASSETS

                               
                                 

Interest-bearing deposits at banks

 

$

8,193

.51

%

5,073

.25

%

6,622

.30

%

62

%

24

%

 
                                 

Federal funds sold

   

1

.77

 

97

.10

 

1

.54

 

-100

 

-

   
                                 

Trading account assets

   

85

1.78

 

79

2.87

 

68

1.88

 

8

 

26

   
                                 

Investment securities

   

15,348

2.60

 

13,376

2.67

 

15,786

2.55

 

15

 

-3

   
                                 

Loans and leases, net of unearned discount

                               

  Commercial, financial, etc. 

   

20,717

3.39

 

19,457

3.21

 

20,221

3.23

 

6

 

2

   

  Real estate - commercial

   

29,426

4.16

 

27,596

4.18

 

28,973

4.11

 

7

 

2

   

  Real estate - consumer

   

25,859

3.93

 

8,572

4.15

 

20,369

4.01

 

202

 

27

   

  Consumer

   

11,582

4.55

 

10,962

4.49

 

11,547

4.44

 

6

 

-

   

     Total loans and leases, net

   

87,584

3.99

 

66,587

3.97

 

81,110

3.92

 

32

 

8

   
                                 

  Total earning assets

   

111,211

3.54

 

85,212

3.54

 

103,587

3.48

 

31

 

7

   
                                 

Goodwill

   

4,593

   

3,525

   

4,218

   

30

 

9

   
                                 

Core deposit and other intangible assets

   

134

   

31

   

101

   

326

 

32

   
                                 

Other assets

   

7,314

   

7,124

   

7,146

   

3

 

2

   
                                 

  Total assets

 

$

123,252

   

95,892

   

115,052

   

29

%

7

%

 
                                 
                                 
                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                             
                                 

Interest-bearing deposits

                               

  Interest-checking deposits

 

$

1,359

.12

 

1,121

.11

 

1,331

.11

 

21

%

2

%

 

  Savings deposits

   

48,976

.13

 

41,525

.10

 

45,974

.11

 

18

 

7

   

  Time deposits

   

12,999

.75

 

3,017

.50

 

9,686

.65

 

331

 

34

   

  Deposits at Cayman Islands office

   

187

.42

 

224

.27

 

224

.30

 

-16

 

-16

   

     Total interest-bearing deposits

   

63,521

.26

 

45,887

.13

 

57,215

.21

 

38

 

11

   
                                 

Short-term borrowings

   

2,082

.42

 

196

.07

 

1,615

.39

 

961

 

29

   

Long-term borrowings

   

10,528

2.21

 

9,835

2.64

 

10,748

2.36

 

7

 

-2

   
                                 

Total interest-bearing liabilities

   

76,131

.53

 

55,918

.57

 

69,578

.54

 

36

 

9

   
                                 

Noninterest-bearing deposits

   

28,870

   

25,811

   

28,443

   

12

 

2

   
                                 

Other liabilities

   

1,972

   

1,704

   

2,024

   

16

 

-3

   
                                 

  Total liabilities

   

106,973

   

83,433

   

100,045

   

28

 

7

   
                                 

Shareholders' equity

   

16,279

   

12,459

   

15,007

   

31

 

8

   
                                 

  Total liabilities and shareholders' equity

 

$

123,252

   

95,892

   

115,052

   

29

%

7

%

 
                                 
                                 

Net interest spread

     

3.01

   

2.97

   

2.94

           

Contribution of interest-free funds

     

.17

   

.20

   

.18

           

Net interest margin 

     

3.18

%

 

3.17

%

 

3.12

%

         
                                 

 

 

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,

 
       

2016

 

2015

 

2015

 

2015

 

2015

 

Income statement data

                         

In thousands, except per share

                         

Net income

                         

Net income

   

$

298,528

 

270,965

 

280,401

 

286,688

 

241,613

 

Amortization of core deposit and other

                         

  intangible assets (1)

     

7,488

 

5,828

 

2,506

 

3,653

 

4,163

 

Merger-related expenses (1)

     

14,048

 

60,820

 

-

 

-

 

-

 

  Net operating income

   

$

320,064

 

337,613

 

282,907

 

290,341

 

245,776

 

Earnings per common share

                         

Diluted earnings per common share

   

$

1.73

 

1.65

 

1.93

 

1.98

 

1.65

 

Amortization of core deposit and other

                         

  intangible assets (1)

     

.05

 

.04

 

.02

 

.03

 

.03

 

Merger-related expenses (1)

     

.09

 

.40

 

-

 

-

 

-

 

  Diluted net operating earnings per common share

$

1.87

 

2.09

 

1.95

 

2.01

 

1.68

 

Other expense

                         

Other expense

   

$

776,095

 

786,113

 

653,816

 

696,628

 

686,375

 

Amortization of core deposit and other

                         

  intangible assets

     

(12,319)

 

(9,576)

 

(4,090)

 

(5,965)

 

(6,793)

 

Merger-related expenses

     

(23,162)

 

(75,976)

 

-

 

-

 

-

 

  Noninterest operating expense

   

$

740,614

 

700,561

 

649,726

 

690,663

 

679,582

 

Merger-related expenses

                         

Salaries and employee benefits

   

$

5,274

 

51,287

 

-

 

-

 

-

 

Equipment and net occupancy

     

939

 

3

 

-

 

-

 

-

 

Printing, postage and supplies

     

937

 

504

 

-

 

-

 

-

 

Other costs of operations

     

16,012

 

24,182

 

-

 

-

 

-

 

  Other expense

     

23,162

 

75,976

 

-

 

-

 

-

 

Provision for credit losses

     

-

 

21,000

 

-

 

-

 

-

 

  Total

   

$

23,162

 

96,976

 

-

 

-

 

-

 

Efficiency ratio

                         

Noninterest operating expense (numerator)

 

$

740,614

 

700,561

 

649,726

 

690,663

 

679,582

 

Taxable-equivalent net interest income

     

878,296

 

813,401

 

699,075

 

689,148

 

665,426

 

Other income

     

420,933

 

448,108

 

439,699

 

497,027

 

440,203

 

Less:  Gain (loss) on bank investment securities

 

4

 

(22)

 

-

 

(10)

 

(98)

 

Denominator

   

$

1,299,225

 

1,261,531

 

1,138,774

 

1,186,185

 

1,105,727

 

Efficiency ratio

     

57.00

%

55.53

%

57.05

%

58.23

%

61.46

%

                           
                           

Balance sheet data

                         

In millions

                         

Average assets

                         

Average assets

   

$

123,252

 

115,052

 

98,515

 

97,598

 

95,892

 

Goodwill

     

(4,593)

 

(4,218)

 

(3,513)

 

(3,514)

 

(3,525)

 

Core deposit and other intangible assets

     

(134)

 

(101)

 

(20)

 

(25)

 

(31)

 

Deferred taxes

     

52

 

39

 

7

 

8

 

10

 

  Average tangible assets

   

$

118,577

 

110,772

 

94,989

 

94,067

 

92,346

 

Average common equity

                         

Average total equity

   

$

16,279

 

15,007

 

12,787

 

12,636

 

12,459

 

Preferred stock

     

(1,232)

 

(1,232)

 

(1,232)

 

(1,232)

 

(1,232)

 

  Average common equity

     

15,047

 

13,775

 

11,555

 

11,404

 

11,227

 

Goodwill

     

(4,593)

 

(4,218)

 

(3,513)

 

(3,514)

 

(3,525)

 

Core deposit and other intangible assets

     

(134)

 

(101)

 

(20)

 

(25)

 

(31)

 

Deferred taxes

     

52

 

39

 

7

 

8

 

10

 

  Average tangible common equity

   

$

10,372

 

9,495

 

8,029

 

7,873

 

7,681

 
                           

At end of quarter

                         

Total assets

                         

Total assets

   

$

124,626

 

122,788

 

97,797

 

97,080

 

98,378

 

Goodwill

     

(4,593)

 

(4,593)

 

(3,513)

 

(3,513)

 

(3,525)

 

Core deposit and other intangible assets

     

(128)

 

(140)

 

(18)

 

(22)

 

(28)

 

Deferred taxes

     

50

 

54

 

6

 

7

 

9

 

  Total tangible assets

   

$

119,955

 

118,109

 

94,272

 

93,552

 

94,834

 

Total common equity

                         

Total equity

   

$

16,355

 

16,173

 

12,922

 

12,668

 

12,528

 

Preferred stock

     

(1,232)

 

(1,232)

 

(1,232)

 

(1,232)

 

(1,232)

 

Undeclared dividends - cumulative preferred stock

 

(3)

 

(2)

 

(3)

 

(3)

 

(2)

 

  Common equity, net of undeclared cumulative

                     

    preferred dividends

     

15,120

 

14,939

 

11,687

 

11,433

 

11,294

 

Goodwill

     

(4,593)

 

(4,593)

 

(3,513)

 

(3,513)

 

(3,525)

 

Core deposit and other intangible assets

     

(128)

 

(140)

 

(18)

 

(22)

 

(28)

 

Deferred taxes

     

50

 

54

 

6

 

7

 

9

 

  Total tangible common equity

   

$

10,449

 

10,260

 

8,162

 

7,905

 

7,750

 
                           
                           

(1) After any related tax effect.