BUFFALO, N.Y., July 19, 2017 -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2017.
GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2017 were $2.35, up 19% from $1.98 in the year-earlier period and 11% higher than $2.12 in the first quarter of 2017. GAAP-basis net income in the recently completed quarter totaled $381 million, a 13% rise from $336 million in the corresponding 2016 quarter and 9% above the $349 million recorded in the initial 2017 quarter. GAAP-basis net income for the second quarter of 2017 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.27% and 9.67%, respectively, compared with 1.09% and 8.38%, respectively, in the year-earlier quarter and 1.15% and 8.89%, respectively, in the first quarter of 2017.
Commenting on the recent quarter's performance, Darren J. King, Executive Vice President and Chief Financial Officer, stated, "Financial results for M&T in the second quarter were highlighted by a continued widening of the net interest margin, which rose 11 basis points from the previous quarter to 3.45%. Also contributing to the strong performance were increased trust income and well-controlled expenses that were in line with our expectations. As has been the case for some time, credit quality continued to be solid as net charge-offs were modest and nonaccrual loans decreased."
|
Earnings Highlights |
||||||||||||||||||||
|
Change 2Q17 vs. |
||||||||||||||||||||
|
($ in millions, except per share data) |
2Q17 |
2Q16 |
1Q17 |
2Q16 |
1Q17 |
|||||||||||||||
|
Net income |
$ |
381 |
$ |
336 |
$ |
349 |
13 |
% |
9 |
% |
||||||||||
|
Net income available to common shareholders - diluted |
$ |
361 |
$ |
313 |
$ |
329 |
15 |
% |
10 |
% |
||||||||||
|
Diluted earnings per common share |
$ |
2.35 |
$ |
1.98 |
$ |
2.12 |
19 |
% |
11 |
% |
||||||||||
|
Annualized return on average assets |
1.27 |
% |
1.09 |
% |
1.15 |
% |
||||||||||||||
|
Annualized return on average common equity |
9.67 |
% |
8.38 |
% |
8.89 |
% |
||||||||||||||
For the six-month period ended June 30, 2017, diluted earnings per common share were $4.47, up 20% from $3.71 in the year-earlier period. GAAP-basis net income for the first six months of 2017 totaled $730 million, or 15% higher than $635 million in the similar 2016 period. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the six-month period ended June 30, 2017 was 1.21% and 9.28%, respectively, compared with 1.03% and 7.91%, respectively, in the corresponding 2016 period.
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 $2.38 in the recent quarter, up from $2.07 and $2.15 in the year-earlier quarter and the first quarter of 2017, respectively. Net operating income rose to $386 million in the second quarter of 2017, 10% higher than $351 million in the second quarter of 2016 and 9% above $354 million in the initial 2017 quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.33% and 14.18%, respectively, in the second quarter of 2017, compared with 1.18% and 12.68%, respectively, in the year-earlier quarter and 1.21% and 13.05%, respectively, in the first three months of 2017.
Diluted net operating earnings per common share in the first six months of 2017 increased 15% to $4.53 from $3.94 in the first half of 2016. Net operating income during the six-month period ended June 30, 2017 was $740 million, a rise of 10% from $671 million in the similar 2016 period. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.27% and 13.61%, respectively, in the first half of 2017, compared with 1.14% and 12.15%, respectively, in the first six months of 2016.
Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $947 million in the second quarter of 2017, an increase of $77 million, or 9%, from $870 million in the year-earlier quarter. That improvement resulted predominantly from a widening of the net interest margin to 3.45% in the recent quarter from 3.13% in the second quarter of 2016. Taxable-equivalent net interest income in the recent quarter rose 3% from $922 million in the initial 2017 quarter. That growth was primarily due to an 11 basis point widening of the net interest margin from 3.34% in the first quarter of 2017.
|
Taxable-equivalent Net Interest Income |
||||||||||||||||||||
|
Change 2Q17 vs. |
||||||||||||||||||||
|
($ in millions) |
2Q17 |
2Q16 |
1Q17 |
2Q16 |
1Q17 |
|||||||||||||||
|
Average earning assets |
$ |
109,987 |
$ |
111,872 |
$ |
112,008 |
-2 |
% |
-2 |
% |
||||||||||
|
Net interest income - taxable-equivalent |
$ |
947 |
$ |
870 |
$ |
922 |
9 |
% |
3 |
% |
||||||||||
|
Net interest margin |
3.45 |
% |
3.13 |
% |
3.34 |
% |
||||||||||||||
Provision for Credit Losses/Asset Quality. The provision for credit losses was $52 million in the second quarter of 2017, compared with $32 million in the year-earlier quarter and $55 million in the first quarter of 2017. Net charge-offs of loans were $45 million during the recent quarter, compared with $24 million in the second quarter of 2016 and $43 million in the initial 2017 quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .11% in the second quarters of 2017 and 2016, respectively, and .19% in the first quarter of 2017.
Loans classified as nonaccrual totaled $872 million, or .98% of total loans outstanding at June 30, 2017, compared with $927 million or 1.04% at March 31, 2017 and $849 million or .96% at June 30, 2016. The decline in nonaccrual loans from March 31, 2017 to the recent quarter-end reflects the combined effect of borrower repayment performance and charge-offs of loans in nonaccrual status. The higher level of nonaccrual loans at the two most recent quarter-ends as compared with June 30, 2016 reflects the migration of previously performing loans obtained in the acquisition of Hudson City Bancorp, Inc. ("Hudson City") that became over 90 days past due after June 30, 2016. Nonaccrual Hudson City-related residential real estate loans totaled $211 million, $113 million and $207 million at June 30, 2017, June 30, 2016 and March 31, 2017, respectively. Assets taken in foreclosure of defaulted loans were $105 million at June 30, 2017, compared with $172 million at June 30, 2016 and $119 million at March 31, 2017.
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 $1.01 billion at June 30, 2017, compared with $970 million and $1.00 billion at June 30, 2016 and March 31, 2017, respectively. The allowance expressed as a percentage of outstanding loans was 1.13% at June 30, 2017, compared with 1.10% at June 30, 2016 and 1.12% at March 31, 2017.
|
Asset Quality Metrics |
||||||||||||||||||||
|
Change 2Q17 vs. |
||||||||||||||||||||
|
($ in millions) |
2Q17 |
2Q16 |
1Q17 |
2Q16 |
1Q17 |
|||||||||||||||
|
At end of quarter |
||||||||||||||||||||
|
Nonaccrual loans |
$ |
872 |
$ |
849 |
$ |
927 |
3 |
% |
-6 |
% |
||||||||||
|
Real estate and other foreclosed assets |
$ |
105 |
$ |
172 |
$ |
119 |
-39 |
% |
-12 |
% |
||||||||||
|
Total nonperforming assets |
$ |
977 |
$ |
1,021 |
$ |
1,046 |
-4 |
% |
-7 |
% |
||||||||||
|
Accruing loans past due 90 days or more (1) |
$ |
265 |
$ |
298 |
$ |
280 |
-11 |
% |
-5 |
% |
||||||||||
|
Nonaccrual loans as % of loans outstanding |
.98 |
% |
.96 |
% |
1.04 |
% |
||||||||||||||
|
Allowance for credit losses |
$ |
1,008 |
$ |
970 |
$ |
1,001 |
4 |
% |
1 |
% |
||||||||||
|
Allowance for credit losses as % of loans outstanding |
1.13 |
% |
1.10 |
% |
1.12 |
% |
||||||||||||||
|
For the period |
||||||||||||||||||||
|
Provision for credit losses |
$ |
52 |
$ |
32 |
$ |
55 |
63 |
% |
-5 |
% |
||||||||||
|
Net charge-offs |
$ |
45 |
$ |
24 |
$ |
43 |
86 |
% |
6 |
% |
||||||||||
|
Net charge-offs as % of average loans (annualized) |
.20 |
% |
.11 |
% |
.19 |
% |
||||||||||||||
|
(1) |
Excludes loans acquired at a discount. Predominantly residential real estate loans. |
|||
Noninterest Income and Expense. Noninterest income totaled $461 million in the second quarter of 2017, compared with $448 million in the year-earlier quarter and $447 million in the initial quarter of 2017. The rise in noninterest income in the recent quarter as compared with the earlier quarters reflected higher trust income. An increase in credit-related fees also contributed to the improvement as compared with the year-earlier quarter.
|
Noninterest Income |
||||||||||||||||||||
|
Change 2Q17 vs. |
||||||||||||||||||||
|
($ in millions) |
2Q17 |
2Q16 |
1Q17 |
2Q16 |
1Q17 |
|||||||||||||||
|
Mortgage banking revenues |
$ |
86 |
$ |
89 |
$ |
85 |
-4 |
% |
2 |
% |
||||||||||
|
Service charges on deposit accounts |
106 |
104 |
104 |
2 |
% |
2 |
% |
|||||||||||||
|
Trust income |
127 |
121 |
120 |
5 |
% |
6 |
% |
|||||||||||||
|
Brokerage services income |
17 |
16 |
17 |
2 |
% |
-4 |
% |
|||||||||||||
|
Trading account and foreign exchange gains |
8 |
13 |
10 |
-39 |
% |
-17 |
% |
|||||||||||||
|
Other revenues from operations |
117 |
105 |
111 |
12 |
% |
6 |
% |
|||||||||||||
|
Total other income |
$ |
461 |
$ |
448 |
$ |
447 |
3 |
% |
3 |
% |
||||||||||
Noninterest expense in the second quarter of 2017 totaled $751 million, compared with $750 million in the year-earlier quarter and $788 million in the initial 2017 quarter. 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 $743 million in the recent quarter, $726 million in the second quarter of 2016 and $779 million in the first quarter of 2017. The most significant factors for the higher level of operating expenses in the recent quarter as compared with the second quarter of 2016 were increased legal costs, FDIC assessments, and outside data processing and software expenses. As compared with the first quarter of 2017, the recent quarter's lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2017 period. That decline was partially offset by higher legal and other professional services costs in 2017's second quarter.
|
Noninterest Expense |
||||||||||||||||||||
|
Change 2Q17 vs. |
||||||||||||||||||||
|
($ in millions) |
2Q17 |
2Q16 |
1Q17 |
2Q16 |
1Q17 |
|||||||||||||||
|
Salaries and employee benefits |
$ |
399 |
$ |
399 |
$ |
450 |
— |
-11 |
% |
|||||||||||
|
Equipment and net occupancy |
74 |
76 |
74 |
-3 |
% |
-1 |
% |
|||||||||||||
|
Outside data processing and software |
45 |
43 |
44 |
5 |
% |
1 |
% |
|||||||||||||
|
FDIC assessments |
25 |
22 |
29 |
13 |
% |
-12 |
% |
|||||||||||||
|
Advertising and marketing |
16 |
23 |
16 |
-28 |
% |
1 |
% |
|||||||||||||
|
Printing, postage and supplies |
9 |
10 |
10 |
-10 |
% |
-8 |
% |
|||||||||||||
|
Amortization of core deposit and other intangible assets |
8 |
11 |
9 |
-29 |
% |
-4 |
% |
|||||||||||||
|
Other costs of operations |
175 |
166 |
156 |
5 |
% |
12 |
% |
|||||||||||||
|
Total other expense |
$ |
751 |
$ |
750 |
$ |
788 |
— |
-5 |
% |
|||||||||||
|
Memo: Merger-related expenses included in above |
— |
$ |
13 |
— |
-100 |
% |
— |
|||||||||||||
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 improved to 52.7% in the recent quarter from 55.1% in the second quarter of 2016 and 56.9% in the first quarter of 2017.
Balance Sheet. M&T had total assets of $120.9 billion at June 30, 2017, compared with $123.8 billion at June 30, 2016 and $123.2 billion at March 31, 2017. Loans and leases, net of unearned discount, totaled $89.1 billion at the recent quarter-end, modestly changed from $88.5 billion at June 30, 2016 and $89.3 billion at March 31, 2017. Investment securities were $15.8 billion, $15.0 billion and $16.0 billion at June 30, 2017, June 30, 2016, and March 31, 2017, respectively. Total deposits were $93.5 billion at June 30, 2017, compared with $94.7 billion a year earlier and $97.0 billion at March 31, 2017.
Reflecting the impact of repurchases of M&T's common stock, total shareholders' equity declined to $16.3 billion at June 30, 2017 from $16.5 billion a year earlier, representing 13.47% and 13.30%, respectively, of total assets. Total shareholders' equity was $16.2 billion, or 13.16% of total assets, at March 31, 2017. Common shareholders' equity was $15.1 billion, or $98.66 per share, at June 30, 2017, compared with $15.2 billion, or $96.49 per share, at June 30, 2016 and $15.0 billion, or $97.40 per share, at March 31, 2017. Tangible equity per common share rose to $68.20 at the recent quarter-end from $66.95 a year earlier and $67.16 at March 31, 2017. 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 10.80% as of June 30, 2017.
In accordance with its 2016 capital plan, M&T repurchased 1,409,807 shares of common stock during the recent quarter at an average cost per share of $159.52, for a total cost of $225 million. In the aggregate, during the first six months of 2017, M&T repurchased 4,643,003 shares of common stock under that plan at a total cost of $757 million.
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 10:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID# 40703727. The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm. A replay of the call will be available through Wednesday, July 26, 2017 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 40703727. 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.
Financial Highlights
|
Three months ended |
Six months ended |
|||||||||||||||||||||||
|
June 30 |
June 30 |
|||||||||||||||||||||||
|
Amounts in thousands, except per share |
2017 |
2016 |
Change |
2017 |
2016 |
Change |
||||||||||||||||||
|
Performance |
||||||||||||||||||||||||
|
Net income |
$ |
381,053 |
336,031 |
13 |
% |
$ |
729,980 |
634,559 |
15 |
% |
||||||||||||||
|
Net income available to common shareholders |
360,662 |
312,974 |
15 |
% |
689,217 |
588,707 |
17 |
% |
||||||||||||||||
|
Per common share: |
||||||||||||||||||||||||
|
Basic earnings |
$ |
2.36 |
1.98 |
19 |
% |
$ |
4.49 |
3.72 |
21 |
% |
||||||||||||||
|
Diluted earnings |
2.35 |
1.98 |
19 |
% |
4.47 |
3.71 |
20 |
% |
||||||||||||||||
|
Cash dividends |
$ |
.75 |
.70 |
7 |
% |
$ |
1.50 |
1.40 |
7 |
% |
||||||||||||||
|
Common shares outstanding: |
||||||||||||||||||||||||
|
Average - diluted (1) |
153,276 |
158,341 |
-3 |
% |
154,108 |
158,761 |
-3 |
% |
||||||||||||||||
|
Period end (2) |
152,539 |
157,917 |
-3 |
% |
152,539 |
157,917 |
-3 |
% |
||||||||||||||||
|
Return on (annualized): |
||||||||||||||||||||||||
|
Average total assets |
1.27 |
% |
1.09 |
% |
1.21 |
% |
1.03 |
% |
||||||||||||||||
|
Average common shareholders' equity |
9.67 |
% |
8.38 |
% |
9.28 |
% |
7.91 |
% |
||||||||||||||||
|
Taxable-equivalent net interest income |
$ |
946,936 |
870,341 |
9 |
% |
$ |
1,869,195 |
1,748,637 |
7 |
% |
||||||||||||||
|
Yield on average earning assets |
3.79 |
% |
3.51 |
% |
3.73 |
% |
3.53 |
% |
||||||||||||||||
|
Cost of interest-bearing liabilities |
.52 |
% |
.56 |
% |
.52 |
% |
.55 |
% |
||||||||||||||||
|
Net interest spread |
3.27 |
% |
2.95 |
% |
3.21 |
% |
2.98 |
% |
||||||||||||||||
|
Contribution of interest-free funds |
.18 |
% |
.18 |
% |
.19 |
% |
.17 |
% |
||||||||||||||||
|
Net interest margin |
3.45 |
% |
3.13 |
% |
3.40 |
% |
3.15 |
% |
||||||||||||||||
|
Net charge-offs to average total net loans (annualized) |
.20 |
% |
.11 |
% |
.20 |
% |
.15 |
% |
||||||||||||||||
|
Net operating results (3) |
||||||||||||||||||||||||
|
Net operating income |
$ |
385,974 |
350,604 |
10 |
% |
$ |
740,009 |
670,668 |
10 |
% |
||||||||||||||
|
Diluted net operating earnings per common share |
2.38 |
2.07 |
15 |
% |
4.53 |
3.94 |
15 |
% |
||||||||||||||||
|
Return on (annualized): |
||||||||||||||||||||||||
|
Average tangible assets |
1.33 |
% |
1.18 |
% |
1.27 |
% |
1.14 |
% |
||||||||||||||||
|
Average tangible common equity |
14.18 |
% |
12.68 |
% |
13.61 |
% |
12.15 |
% |
||||||||||||||||
|
Efficiency ratio |
52.74 |
% |
55.06 |
% |
54.81 |
% |
56.03 |
% |
||||||||||||||||
|
At June 30 |
||||||||||||||||||||||||
|
Loan quality |
2017 |
2016 |
Change |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
872,374 |
848,855 |
3 |
% |
|||||||||||||||||||
|
Real estate and other foreclosed assets |
104,424 |
172,473 |
-39 |
% |
||||||||||||||||||||
|
Total nonperforming assets |
$ |
976,798 |
1,021,328 |
-4 |
% |
|||||||||||||||||||
|
Accruing loans past due 90 days or more (4) |
$ |
265,461 |
298,449 |
-11 |
% |
|||||||||||||||||||
|
Government guaranteed loans included in totals above: |
||||||||||||||||||||||||
|
Nonaccrual loans |
$ |
39,296 |
52,486 |
-25 |
% |
|||||||||||||||||||
|
Accruing loans past due 90 days or more |
235,227 |
269,962 |
-13 |
% |
||||||||||||||||||||
|
Renegotiated loans |
$ |
221,892 |
211,159 |
5 |
% |
|||||||||||||||||||
|
Accruing loans acquired at a discount past due 90 days or |
$ |
57,498 |
68,591 |
-16 |
% |
|||||||||||||||||||
|
Purchased impaired loans (6): |
||||||||||||||||||||||||
|
Outstanding customer balance |
$ |
838,476 |
1,040,678 |
-19 |
% |
|||||||||||||||||||
|
Carrying amount |
512,393 |
662,059 |
-23 |
% |
||||||||||||||||||||
|
Nonaccrual loans to total net loans |
.98 |
% |
.96 |
% |
||||||||||||||||||||
|
Allowance for credit losses to total loans |
1.13 |
% |
1.10 |
% |
||||||||||||||||||||
|
(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 |
|||||||
|
(4) |
Excludes loans acquired at a discount. Predominantly residential real estate loans. |
|||||||
|
(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. |
|||||||
Financial Highlights, Five Quarter Trend
|
Three months ended |
||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
Amounts in thousands, except per share |
2017 |
2017 |
2016 |
2016 |
2016 |
|||||||||||||||
|
Performance |
||||||||||||||||||||
|
Net income |
$ |
381,053 |
348,927 |
330,571 |
349,984 |
336,031 |
||||||||||||||
|
Net income available to common shareholders |
360,662 |
328,567 |
307,797 |
326,998 |
312,974 |
|||||||||||||||
|
Per common share: |
||||||||||||||||||||
|
Basic earnings |
$ |
2.36 |
2.13 |
1.98 |
2.10 |
1.98 |
||||||||||||||
|
Diluted earnings |
2.35 |
2.12 |
1.98 |
2.10 |
1.98 |
|||||||||||||||
|
Cash dividends |
$ |
.75 |
.75 |
.70 |
.70 |
.70 |
||||||||||||||
|
Common shares outstanding: |
||||||||||||||||||||
|
Average - diluted (1) |
153,276 |
154,949 |
155,700 |
156,026 |
158,341 |
|||||||||||||||
|
Period end (2) |
152,539 |
153,781 |
156,213 |
154,987 |
157,917 |
|||||||||||||||
|
Return on (annualized): |
||||||||||||||||||||
|
Average total assets |
1.27 |
% |
1.15 |
% |
1.05 |
% |
1.12 |
% |
1.09 |
% |
||||||||||
|
Average common shareholders' equity |
9.67 |
% |
8.89 |
% |
8.13 |
% |
8.68 |
% |
8.38 |
% |
||||||||||
|
Taxable-equivalent net interest income |
$ |
946,936 |
922,259 |
883,147 |
865,065 |
870,341 |
||||||||||||||
|
Yield on average earning assets |
3.79 |
% |
3.67 |
% |
3.45 |
% |
3.44 |
% |
3.51 |
% |
||||||||||
|
Cost of interest-bearing liabilities |
.52 |
% |
.52 |
% |
.57 |
% |
.59 |
% |
.56 |
% |
||||||||||
|
Net interest spread |
3.27 |
% |
3.15 |
% |
2.88 |
% |
2.85 |
% |
2.95 |
% |
||||||||||
|
Contribution of interest-free funds |
.18 |
% |
.19 |
% |
.20 |
% |
.20 |
% |
.18 |
% |
||||||||||
|
Net interest margin |
3.45 |
% |
3.34 |
% |
3.08 |
% |
3.05 |
% |
3.13 |
% |
||||||||||
|
Net charge-offs to average total net loans (annualized) |
.20 |
% |
.19 |
% |
.22 |
% |
.19 |
% |
.11 |
% |
||||||||||
|
Net operating results (3) |
||||||||||||||||||||
|
Net operating income |
$ |
385,974 |
354,035 |
336,095 |
355,929 |
350,604 |
||||||||||||||
|
Diluted net operating earnings per common share |
2.38 |
2.15 |
2.01 |
2.13 |
2.07 |
|||||||||||||||
|
Return on (annualized): |
||||||||||||||||||||
|
Average tangible assets |
1.33 |
% |
1.21 |
% |
1.10 |
% |
1.18 |
% |
1.18 |
% |
||||||||||
|
Average tangible common equity |
14.18 |
% |
13.05 |
% |
11.93 |
% |
12.77 |
% |
12.68 |
% |
||||||||||
|
Efficiency ratio |
52.74 |
% |
56.93 |
% |
56.42 |
% |
55.92 |
% |
55.06 |
% |
||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
Loan quality |
2017 |
2017 |
2016 |
2016 |
2016 |
|||||||||||||||
|
Nonaccrual loans |
$ |
872,374 |
926,675 |
920,015 |
837,362 |
848,855 |
||||||||||||||
|
Real estate and other foreclosed assets |
104,424 |
119,155 |
139,206 |
159,881 |
172,473 |
|||||||||||||||
|
Total nonperforming assets |
$ |
976,798 |
1,045,830 |
1,059,221 |
997,243 |
1,021,328 |
||||||||||||||
|
Accruing loans past due 90 days or more (4) |
$ |
265,461 |
280,019 |
300,659 |
317,282 |
298,449 |
||||||||||||||
|
Government guaranteed loans included in totals above: |
||||||||||||||||||||
|
Nonaccrual loans |
$ |
39,296 |
39,610 |
40,610 |
47,130 |
52,486 |
||||||||||||||
|
Accruing loans past due 90 days or more |
235,227 |
252,552 |
282,659 |
282,077 |
269,962 |
|||||||||||||||
|
Renegotiated loans |
$ |
221,892 |
191,343 |
190,374 |
217,559 |
211,159 |
||||||||||||||
|
Accruing loans acquired at a discount past due 90 days or |
$ |
57,498 |
63,732 |
61,144 |
65,182 |
68,591 |
||||||||||||||
|
Purchased impaired loans (6): |
||||||||||||||||||||
|
Outstanding customer balance |
$ |
838,476 |
890,431 |
927,446 |
981,105 |
1,040,678 |
||||||||||||||
|
Carrying amount |
512,393 |
552,935 |
578,032 |
616,991 |
662,059 |
|||||||||||||||
|
Nonaccrual loans to total net loans |
.98 |
% |
1.04 |
% |
1.01 |
% |
.93 |
% |
.96 |
% |
||||||||||
|
Allowance for credit losses to total loans |
1.13 |
% |
1.12 |
% |
1.09 |
% |
1.09 |
% |
1.10 |
% |
||||||||||
|
(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. Predominantly residential real estate loans. |
|||||
|
(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. |
|||||
Condensed Consolidated Statement of Income
|
Three months ended |
Six months ended |
|||||||||||||||||||||||
|
June 30 |
June 30 |
|||||||||||||||||||||||
|
Dollars in thousands |
2017 |
2016 |
Change |
2017 |
2016 |
Change |
||||||||||||||||||
|
Interest income |
$ |
1,030,413 |
970,621 |
6 |
% |
$ |
2,036,446 |
1,943,455 |
5 |
% |
||||||||||||||
|
Interest expense |
92,213 |
106,802 |
-14 |
183,986 |
207,672 |
-11 |
||||||||||||||||||
|
Net interest income |
938,200 |
863,819 |
9 |
1,852,460 |
1,735,783 |
7 |
||||||||||||||||||
|
Provision for credit losses |
52,000 |
32,000 |
63 |
107,000 |
81,000 |
32 |
||||||||||||||||||
|
Net interest income after provision for credit losses |
886,200 |
831,819 |
7 |
1,745,460 |
1,654,783 |
5 |
||||||||||||||||||
|
Other income |
||||||||||||||||||||||||
|
Mortgage banking revenues |
86,163 |
89,383 |
-4 |
170,855 |
171,446 |
— |
||||||||||||||||||
|
Service charges on deposit accounts |
106,057 |
103,872 |
2 |
210,233 |
206,277 |
2 |
||||||||||||||||||
|
Trust income |
126,797 |
120,450 |
5 |
246,812 |
231,527 |
7 |
||||||||||||||||||
|
Brokerage services income |
16,617 |
16,272 |
2 |
34,001 |
32,276 |
5 |
||||||||||||||||||
|
Trading account and foreign exchange gains |
8,084 |
13,222 |
-39 |
17,775 |
20,680 |
-14 |
||||||||||||||||||
|
Gain (loss) on bank investment securities |
(17) |
264 |
— |
(17) |
268 |
— |
||||||||||||||||||
|
Other revenues from operations |
117,115 |
104,791 |
12 |
228,002 |
206,713 |
10 |
||||||||||||||||||
|
Total other income |
460,816 |
448,254 |
3 |
907,661 |
869,187 |
4 |
||||||||||||||||||
|
Other expense |
||||||||||||||||||||||||
|
Salaries and employee benefits |
398,900 |
398,675 |
— |
848,762 |
830,460 |
2 |
||||||||||||||||||
|
Equipment and net occupancy |
73,797 |
75,724 |
-3 |
148,163 |
149,902 |
-1 |
||||||||||||||||||
|
Outside data processing and software |
44,575 |
42,509 |
5 |
88,876 |
85,524 |
4 |
||||||||||||||||||
|
FDIC assessments |
25,353 |
22,370 |
13 |
54,180 |
47,595 |
14 |
||||||||||||||||||
|
Advertising and marketing |
16,324 |
22,613 |
-28 |
32,434 |
44,067 |
-26 |
||||||||||||||||||
|
Printing, postage and supplies |
8,957 |
9,907 |
-10 |
18,665 |
21,893 |
-15 |
||||||||||||||||||
|
Amortization of core deposit and other |
8,113 |
11,418 |
-29 |
16,533 |
23,737 |
-30 |
||||||||||||||||||
|
Other costs of operations |
174,616 |
166,679 |
5 |
330,874 |
322,812 |
2 |
||||||||||||||||||
|
Total other expense |
750,635 |
749,895 |
— |
1,538,487 |
1,525,990 |
1 |
||||||||||||||||||
|
Income before income taxes |
596,381 |
530,178 |
12 |
1,114,634 |
997,980 |
12 |
||||||||||||||||||
|
Applicable income taxes |
215,328 |
194,147 |
11 |
384,654 |
363,421 |
6 |
||||||||||||||||||
|
Net income |
$ |
381,053 |
336,031 |
13 |
% |
$ |
729,980 |
634,559 |
15 |
% |
||||||||||||||
Condensed Consolidated Statement of Income, Five Quarter Trend
|
Three months ended |
||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
Dollars in thousands |
2017 |
2017 |
2016 |
2016 |
2016 |
|||||||||||||||
|
Interest income |
$ |
1,030,413 |
1,006,033 |
982,901 |
969,515 |
970,621 |
||||||||||||||
|
Interest expense |
92,213 |
91,773 |
107,137 |
111,175 |
106,802 |
|||||||||||||||
|
Net interest income |
938,200 |
914,260 |
875,764 |
858,340 |
863,819 |
|||||||||||||||
|
Provision for credit losses |
52,000 |
55,000 |
62,000 |
47,000 |
32,000 |
|||||||||||||||
|
Net interest income after provision for credit losses |
886,200 |
859,260 |
813,764 |
811,340 |
831,819 |
|||||||||||||||
|
Other income |
||||||||||||||||||||
|
Mortgage banking revenues |
86,163 |
84,692 |
98,504 |
103,747 |
89,383 |
|||||||||||||||
|
Service charges on deposit accounts |
106,057 |
104,176 |
104,890 |
107,935 |
103,872 |
|||||||||||||||
|
Trust income |
126,797 |
120,015 |
122,003 |
118,654 |
120,450 |
|||||||||||||||
|
Brokerage services income |
16,617 |
17,384 |
15,233 |
15,914 |
16,272 |
|||||||||||||||
|
Trading account and foreign exchange gains |
8,084 |
9,691 |
7,692 |
12,754 |
13,222 |
|||||||||||||||
|
Gain (loss) on bank investment securities |
(17) |
— |
1,566 |
28,480 |
264 |
|||||||||||||||
|
Other revenues from operations |
117,115 |
110,887 |
115,571 |
103,866 |
104,791 |
|||||||||||||||
|
Total other income |
460,816 |
446,845 |
465,459 |
491,350 |
448,254 |
|||||||||||||||
|
Other expense |
||||||||||||||||||||
|
Salaries and employee benefits |
398,900 |
449,862 |
393,354 |
399,786 |
398,675 |
|||||||||||||||
|
Equipment and net occupancy |
73,797 |
74,366 |
69,976 |
75,263 |
75,724 |
|||||||||||||||
|
Outside data processing and software |
44,575 |
44,301 |
43,987 |
42,878 |
42,509 |
|||||||||||||||
|
FDIC assessments |
25,353 |
28,827 |
28,991 |
28,459 |
22,370 |
|||||||||||||||
|
Advertising and marketing |
16,324 |
16,110 |
21,074 |
21,996 |
22,613 |
|||||||||||||||
|
Printing, postage and supplies |
8,957 |
9,708 |
8,681 |
8,972 |
9,907 |
|||||||||||||||
|
Amortization of core deposit and other |
8,113 |
8,420 |
9,089 |
9,787 |
11,418 |
|||||||||||||||
|
Other costs of operations |
174,616 |
156,258 |
193,951 |
165,251 |
166,679 |
|||||||||||||||
|
Total other expense |
750,635 |
787,852 |
769,103 |
752,392 |
749,895 |
|||||||||||||||
|
Income before income taxes |
596,381 |
518,253 |
510,120 |
550,298 |
530,178 |
|||||||||||||||
|
Applicable income taxes |
215,328 |
169,326 |
179,549 |
200,314 |
194,147 |
|||||||||||||||
|
Net income |
$ |
381,053 |
348,927 |
330,571 |
349,984 |
336,031 |
||||||||||||||
Condensed Consolidated Balance Sheet
|
June 30 |
|||||||||||||
|
Dollars in thousands |
2017 |
2016 |
Change |
||||||||||
|
ASSETS |
|||||||||||||
|
Cash and due from banks |
$ |
1,344,478 |
1,284,442 |
5 |
% |
||||||||
|
Interest-bearing deposits at banks |
5,023,829 |
8,474,839 |
-41 |
||||||||||
|
Federal funds sold |
1,000 |
— |
— |
||||||||||
|
Trading account |
174,646 |
506,131 |
-65 |
||||||||||
|
Investment securities |
15,816,060 |
14,963,084 |
6 |
||||||||||
|
Loans and leases: |
|||||||||||||
|
Commercial, financial, etc. |
22,191,051 |
21,469,242 |
3 |
||||||||||
|
Real estate - commercial |
33,348,991 |
30,711,230 |
9 |
||||||||||
|
Real estate - consumer |
20,960,171 |
24,530,249 |
-15 |
||||||||||
|
Consumer |
12,580,342 |
11,811,277 |
7 |
||||||||||
|
Total loans and leases, net of unearned discount |
89,080,555 |
88,521,998 |
1 |
||||||||||
|
Less: allowance for credit losses |
1,008,225 |
970,496 |
4 |
||||||||||
|
Net loans and leases |
88,072,330 |
87,551,502 |
1 |
||||||||||
|
Goodwill |
4,593,112 |
4,593,112 |
— |
||||||||||
|
Core deposit and other intangible assets |
86,422 |
116,531 |
-26 |
||||||||||
|
Other assets |
5,784,690 |
6,330,943 |
-9 |
||||||||||
|
Total assets |
$ |
120,896,567 |
123,820,584 |
-2 |
% |
||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
|
Noninterest-bearing deposits |
$ |
32,366,426 |
30,700,066 |
5 |
% |
||||||||
|
Interest-bearing deposits |
60,978,895 |
63,756,514 |
-4 |
||||||||||
|
Deposits at Cayman Islands office |
195,617 |
193,523 |
1 |
||||||||||
|
Total deposits |
93,540,938 |
94,650,103 |
-1 |
||||||||||
|
Short-term borrowings |
1,695,453 |
407,123 |
316 |
||||||||||
|
Accrued interest and other liabilities |
1,727,059 |
1,963,093 |
-12 |
||||||||||
|
Long-term borrowings |
7,649,580 |
10,328,751 |
-26 |
||||||||||
|
Total liabilities |
104,613,030 |
107,349,070 |
-3 |
||||||||||
|
Shareholders' equity: |
|||||||||||||
|
Preferred |
1,231,500 |
1,231,500 |
— |
||||||||||
|
Common (1) |
15,052,037 |
15,240,014 |
-1 |
||||||||||
|
Total shareholders' equity |
16,283,537 |
16,471,514 |
-1 |
||||||||||
|
Total liabilities and shareholders' equity |
$ |
120,896,567 |
123,820,584 |
-2 |
% |
||||||||
|
(1) |
Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $270.1 million at June 30, 2017 and $101.0 million at June 30, 2016. |
||||
Condensed Consolidated Balance Sheet, Five Quarter Trend
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
Dollars in thousands |
2017 |
2017 |
2016 |
2016 |
2016 |
|||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and due from banks |
$ |
1,344,478 |
1,286,962 |
1,320,549 |
1,332,202 |
1,284,442 |
||||||||||||||
|
Interest-bearing deposits at banks |
5,023,829 |
6,945,149 |
5,000,638 |
10,777,636 |
8,474,839 |
|||||||||||||||
|
Federal funds sold |
1,000 |
— |
— |
— |
— |
|||||||||||||||
|
Trading account |
174,646 |
174,854 |
323,867 |
488,588 |
506,131 |
|||||||||||||||
|
Investment securities |
15,816,060 |
15,968,415 |
16,250,468 |
14,733,574 |
14,963,084 |
|||||||||||||||
|
Loans and leases: |
||||||||||||||||||||
|
Commercial, financial, etc. |
22,191,051 |
22,295,376 |
22,610,047 |
21,917,163 |
21,469,242 |
|||||||||||||||
|
Real estate - commercial |
33,348,991 |
33,071,654 |
33,506,394 |
32,078,762 |
30,711,230 |
|||||||||||||||
|
Real estate - consumer |
20,960,171 |
21,724,491 |
22,590,912 |
23,584,420 |
24,530,249 |
|||||||||||||||
|
Consumer |
12,580,342 |
12,221,481 |
12,146,063 |
12,066,147 |
11,811,277 |
|||||||||||||||
|
Total loans and leases, net of unearned |
89,080,555 |
89,313,002 |
90,853,416 |
89,646,492 |
88,521,998 |
|||||||||||||||
|
Less: allowance for credit losses |
1,008,225 |
1,001,430 |
988,997 |
976,121 |
970,496 |
|||||||||||||||
|
Net loans and leases |
88,072,330 |
88,311,572 |
89,864,419 |
88,670,371 |
87,551,502 |
|||||||||||||||
|
Goodwill |
4,593,112 |
4,593,112 |
4,593,112 |
4,593,112 |
4,593,112 |
|||||||||||||||
|
Core deposit and other intangible assets |
86,422 |
94,535 |
97,655 |
106,744 |
116,531 |
|||||||||||||||
|
Other assets |
5,784,690 |
5,848,652 |
5,998,498 |
6,138,801 |
6,330,943 |
|||||||||||||||
|
Total assets |
$ |
120,896,567 |
123,223,251 |
123,449,206 |
126,841,028 |
123,820,584 |
||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Noninterest-bearing deposits |
$ |
32,366,426 |
34,279,591 |
32,813,896 |
33,127,627 |
30,700,066 |
||||||||||||||
|
Interest-bearing deposits |
60,978,895 |
62,570,167 |
62,478,053 |
64,786,035 |
63,756,514 |
|||||||||||||||
|
Deposits at Cayman Islands office |
195,617 |
192,763 |
201,927 |
223,183 |
193,523 |
|||||||||||||||
|
Total deposits |
93,540,938 |
97,042,521 |
95,493,876 |
98,136,845 |
94,650,103 |
|||||||||||||||
|
Short-term borrowings |
1,695,453 |
185,102 |
163,442 |
213,846 |
407,123 |
|||||||||||||||
|
Accrued interest and other liabilities |
1,727,059 |
1,694,905 |
1,811,431 |
1,938,201 |
1,963,093 |
|||||||||||||||
|
Long-term borrowings |
7,649,580 |
8,087,619 |
9,493,835 |
10,211,160 |
10,328,751 |
|||||||||||||||
|
Total liabilities |
104,613,030 |
107,010,147 |
106,962,584 |
110,500,052 |
107,349,070 |
|||||||||||||||
|
Shareholders' equity: |
||||||||||||||||||||
|
Preferred |
1,231,500 |
1,231,500 |
1,231,500 |
1,231,500 |
1,231,500 |
|||||||||||||||
|
Common (1) |
15,052,037 |
14,981,604 |
15,255,122 |
15,109,476 |
15,240,014 |
|||||||||||||||
|
Total shareholders' equity |
16,283,537 |
16,213,104 |
16,486,622 |
16,340,976 |
16,471,514 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
120,896,567 |
123,223,251 |
123,449,206 |
126,841,028 |
123,820,584 |
||||||||||||||
|
(1) |
Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $270.1 million at June 30, 2017, $291.6 |
||||||
Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates
|
Three months ended |
Change in balance |
Six months ended |
|||||||||||||||||||||||||||||||||||
|
June 30, |
June 30, |
March 31, |
June 30, 2017 from |
June 30 |
Change |
||||||||||||||||||||||||||||||||
|
Dollars in millions |
2017 |
2016 |
2017 |
June 30, |
March 31, |
2017 |
2016 |
in |
|||||||||||||||||||||||||||||
|
Balance |
Rate |
Balance |
Rate |
Balance |
Rate |
2016 |
2017 |
Balance |
Rate |
Balance |
Rate |
balance |
|||||||||||||||||||||||||
|
ASSETS |
|||||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits at banks |
$ |
4,741 |
1.03 |
% |
8,711 |
.51 |
% |
6,152 |
.80 |
% |
-46 |
% |
-23 |
% |
$ |
5,443 |
.90 |
% |
8,452 |
.51 |
% |
-36 |
% |
||||||||||||||
|
Federal funds sold |
1 |
1.44 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||
|
Trading account |
64 |
1.50 |
92 |
1.58 |
60 |
2.20 |
-31 |
7 |
62 |
1.84 |
88 |
1.68 |
-30 |
||||||||||||||||||||||||
|
Investment securities |
15,913 |
2.36 |
14,914 |
2.49 |
15,999 |
2.43 |
7 |
-1 |
15,956 |
2.40 |
15,131 |
2.55 |
5 |
||||||||||||||||||||||||
|
Loans and leases, net of unearned |
|||||||||||||||||||||||||||||||||||||
|
Commercial, financial, etc. |
22,350 |
3.84 |
21,450 |
3.47 |
22,290 |
3.66 |
4 |
— |
22,320 |
3.75 |
21,083 |
3.43 |
6 |
||||||||||||||||||||||||
|
Real estate - commercial |
33,214 |
4.30 |
30,134 |
4.09 |
33,175 |
4.18 |
10 |
— |
33,195 |
4.24 |
29,780 |
4.12 |
11 |
||||||||||||||||||||||||
|
Real estate - consumer |
21,318 |
3.94 |
24,858 |
3.94 |
22,179 |
3.92 |
-14 |
-4 |
21,746 |
3.93 |
25,359 |
3.94 |
-14 |
||||||||||||||||||||||||
|
Consumer |
12,386 |
4.78 |
11,713 |
4.55 |
12,153 |
4.68 |
6 |
2 |
12,270 |
4.73 |
11,648 |
4.55 |
5 |
||||||||||||||||||||||||
|
Total loans and leases, net |
89,268 |
4.19 |
88,155 |
3.99 |
89,797 |
4.09 |
1 |
-1 |
89,531 |
4.14 |
87,870 |
3.99 |
2 |
||||||||||||||||||||||||
|
Total earning assets |
109,987 |
3.79 |
111,872 |
3.51 |
112,008 |
3.67 |
-2 |
-2 |
110,992 |
3.73 |
111,541 |
3.53 |
— |
||||||||||||||||||||||||
|
Goodwill |
4,593 |
4,593 |
4,593 |
— |
— |
4,593 |
4,593 |
— |
|||||||||||||||||||||||||||||
|
Core deposit and other intangible assets |
90 |
122 |
98 |
-26 |
-8 |
94 |
128 |
-26 |
|||||||||||||||||||||||||||||
|
Other assets |
6,095 |
7,119 |
6,279 |
-14 |
-3 |
6,186 |
7,217 |
-14 |
|||||||||||||||||||||||||||||
|
Total assets |
$ |
120,765 |
123,706 |
122,978 |
-2 |
% |
-2 |
% |
$ |
121,865 |
123,479 |
-1 |
% |
||||||||||||||||||||||||
|
LIABILITIES AND |
|||||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
|||||||||||||||||||||||||||||||||||||
|
Savings and interest-checking |
$ |
53,611 |
.23 |
51,847 |
.16 |
53,260 |
.20 |
3 |
% |
1 |
% |
$ |
53,437 |
.21 |
51,091 |
.15 |
5 |
% |
|||||||||||||||||||
|
Time deposits |
8,559 |
.76 |
12,755 |
.85 |
9,561 |
.81 |
-33 |
-10 |
9,057 |
.79 |
12,877 |
.80 |
-30 |
||||||||||||||||||||||||
|
Deposits at Cayman Islands office |
163 |
.69 |
182 |
.40 |
192 |
.56 |
-11 |
-15 |
177 |
.62 |
185 |
.41 |
-4 |
||||||||||||||||||||||||
|
Total interest-bearing deposits |
62,333 |
.30 |
64,784 |
.30 |
63,013 |
.29 |
-4 |
-1 |
62,671 |
.30 |
64,153 |
.28 |
-2 |
||||||||||||||||||||||||
|
Short-term borrowings |
212 |
.71 |
1,078 |
.43 |
184 |
.48 |
-80 |
15 |
199 |
.60 |
1,579 |
.42 |
-87 |
||||||||||||||||||||||||
|
Long-term borrowings |
8,292 |
2.16 |
10,297 |
2.27 |
8,423 |
2.25 |
-19 |
-2 |
8,357 |
2.20 |
10,413 |
2.24 |
-20 |
||||||||||||||||||||||||
|
Total interest-bearing liabilities |
70,837 |
.52 |
76,159 |
.56 |
71,620 |
.52 |
-7 |
-1 |
71,227 |
.52 |
76,145 |
.55 |
-6 |
||||||||||||||||||||||||
|
Noninterest-bearing deposits |
31,868 |
29,249 |
33,287 |
9 |
-4 |
32,574 |
29,059 |
12 |
|||||||||||||||||||||||||||||
|
Other liabilities |
1,775 |
1,921 |
1,748 |
-8 |
2 |
1,760 |
1,947 |
-10 |
|||||||||||||||||||||||||||||
|
Total liabilities |
104,480 |
107,329 |
106,655 |
-3 |
-2 |
105,561 |
107,151 |
-1 |
|||||||||||||||||||||||||||||
|
Shareholders' equity |
16,285 |
16,377 |
16,323 |
-1 |
— |
16,304 |
16,328 |
— |
|||||||||||||||||||||||||||||
|
Total liabilities and shareholders' |
$ |
120,765 |
123,706 |
122,978 |
-2 |
% |
-2 |
% |
$ |
121,865 |
123,479 |
-1 |
% |
||||||||||||||||||||||||
|
Net interest spread |
3.27 |
2.95 |
3.15 |
3.21 |
2.98 |
||||||||||||||||||||||||||||||||
|
Contribution of interest-free funds |
.18 |
.18 |
.19 |
.19 |
.17 |
||||||||||||||||||||||||||||||||
|
Net interest margin |
3.45 |
% |
3.13 |
% |
3.34 |
% |
3.40 |
% |
3.15 |
% |
|||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
Three months ended |
Six months ended |
|||||||||||||||
|
June 30 |
June 30 |
|||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
|||||||||||||
|
Income statement data |
||||||||||||||||
|
In thousands, except per share |
||||||||||||||||
|
Net income |
||||||||||||||||
|
Net income |
$ |
381,053 |
336,031 |
729,980 |
634,559 |
|||||||||||
|
Amortization of core deposit and other intangible assets (1) |
4,921 |
6,936 |
10,029 |
14,424 |
||||||||||||
|
Merger-related expenses (1) |
— |
7,637 |
— |
21,685 |
||||||||||||
|
Net operating income |
$ |
385,974 |
350,604 |
740,009 |
670,668 |
|||||||||||
|
Earnings per common share |
||||||||||||||||
|
Diluted earnings per common share |
$ |
2.35 |
1.98 |
4.47 |
3.71 |
|||||||||||
|
Amortization of core deposit and other intangible assets (1) |
.03 |
.04 |
.06 |
.09 |
||||||||||||
|
Merger-related expenses (1) |
— |
.05 |
— |
.14 |
||||||||||||
|
Diluted net operating earnings per common share |
$ |
2.38 |
2.07 |
4.53 |
3.94 |
|||||||||||
|
Other expense |
||||||||||||||||
|
Other expense |
$ |
750,635 |
749,895 |
1,538,487 |
1,525,990 |
|||||||||||
|
Amortization of core deposit and other intangible assets |
(8,113) |
(11,418) |
(16,533) |
(23,737) |
||||||||||||
|
Merger-related expenses |
— |
(12,593) |
— |
(35,755) |
||||||||||||
|
Noninterest operating expense |
$ |
742,522 |
725,884 |
1,521,954 |
1,466,498 |
|||||||||||
|
Merger-related expenses |
||||||||||||||||
|
Salaries and employee benefits |
$ |
— |
60 |
— |
5,334 |
|||||||||||
|
Equipment and net occupancy |
— |
339 |
— |
1,278 |
||||||||||||
|
Outside data processing and software |
— |
352 |
— |
1,067 |
||||||||||||
|
Advertising and marketing |
— |
6,327 |
— |
10,522 |
||||||||||||
|
Printing, postage and supplies |
— |
545 |
— |
1,482 |
||||||||||||
|
Other costs of operations |
— |
4,970 |
— |
16,072 |
||||||||||||
|
Total |
$ |
— |
12,593 |
— |
35,755 |
|||||||||||
|
Efficiency ratio |
||||||||||||||||
|
Noninterest operating expense (numerator) |
$ |
742,522 |
725,884 |
1,521,954 |
1,466,498 |
|||||||||||
|
Taxable-equivalent net interest income |
946,936 |
870,341 |
1,869,195 |
1,748,637 |
||||||||||||
|
Other income |
460,816 |
448,254 |
907,661 |
869,187 |
||||||||||||
|
Less: Gain (loss) on bank investment securities |
(17) |
264 |
(17) |
268 |
||||||||||||
|
Denominator |
$ |
1,407,769 |
1,318,331 |
2,776,873 |
2,617,556 |
|||||||||||
|
Efficiency ratio |
52.74 |
% |
55.06 |
% |
54.81 |
% |
56.03 |
% |
||||||||
|
Balance sheet data |
||||||||||||||||
|
In millions |
||||||||||||||||
|
Average assets |
||||||||||||||||
|
Average assets |
$ |
120,765 |
123,706 |
121,865 |
123,479 |
|||||||||||
|
Goodwill |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
||||||||||||
|
Core deposit and other intangible assets |
(90) |
(122) |
(94) |
(128) |
||||||||||||
|
Deferred taxes |
35 |
48 |
37 |
50 |
||||||||||||
|
Average tangible assets |
$ |
116,117 |
119,039 |
117,215 |
118,808 |
|||||||||||
|
Average common equity |
||||||||||||||||
|
Average total equity |
$ |
16,285 |
16,377 |
16,304 |
16,328 |
|||||||||||
|
Preferred stock |
(1,232) |
(1,232) |
(1,232) |
(1,232) |
||||||||||||
|
Average common equity |
15,053 |
15,145 |
15,072 |
15,096 |
||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
||||||||||||
|
Core deposit and other intangible assets |
(90) |
(122) |
(94) |
(128) |
||||||||||||
|
Deferred taxes |
35 |
48 |
37 |
50 |
||||||||||||
|
Average tangible common equity |
$ |
10,405 |
10,478 |
10,422 |
10,425 |
|||||||||||
|
At end of quarter |
||||||||||||||||
|
Total assets |
||||||||||||||||
|
Total assets |
$ |
120,897 |
123,821 |
|||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
||||||||||||||
|
Core deposit and other intangible assets |
(86) |
(117) |
||||||||||||||
|
Deferred taxes |
33 |
46 |
||||||||||||||
|
Total tangible assets |
$ |
116,251 |
119,157 |
|||||||||||||
|
Total common equity |
||||||||||||||||
|
Total equity |
$ |
16,284 |
16,472 |
|||||||||||||
|
Preferred stock |
(1,232) |
(1,232) |
||||||||||||||
|
Undeclared dividends - cumulative preferred stock |
(3) |
(3) |
||||||||||||||
|
Common equity, net of undeclared cumulative preferred dividends |
15,049 |
15,237 |
||||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
||||||||||||||
|
Core deposit and other intangible assets |
(86) |
(117) |
||||||||||||||
|
Deferred taxes |
33 |
46 |
||||||||||||||
|
Total tangible common equity |
$ |
10,403 |
10,573 |
|||||||||||||
|
(1) After any related tax effect. |
|||
Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
|
Three months ended |
||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
2017 |
2017 |
2016 |
2016 |
2016 |
||||||||||||||||
|
Income statement data |
||||||||||||||||||||
|
In thousands, except per share |
||||||||||||||||||||
|
Net income |
||||||||||||||||||||
|
Net income |
$ |
381,053 |
348,927 |
330,571 |
349,984 |
336,031 |
||||||||||||||
|
Amortization of core deposit and other intangible assets (1) |
4,921 |
5,108 |
5,524 |
5,945 |
6,936 |
|||||||||||||||
|
Merger-related expenses (1) |
— |
— |
— |
— |
7,637 |
|||||||||||||||
|
Net operating income |
$ |
385,974 |
354,035 |
336,095 |
355,929 |
350,604 |
||||||||||||||
|
Earnings per common share |
||||||||||||||||||||
|
Diluted earnings per common share |
$ |
2.35 |
2.12 |
1.98 |
2.10 |
1.98 |
||||||||||||||
|
Amortization of core deposit and other intangible assets (1) |
.03 |
.03 |
.03 |
.03 |
.04 |
|||||||||||||||
|
Merger-related expenses (1) |
— |
— |
— |
— |
.05 |
|||||||||||||||
|
Diluted net operating earnings per common share |
$ |
2.38 |
2.15 |
2.01 |
2.13 |
2.07 |
||||||||||||||
|
Other expense |
||||||||||||||||||||
|
Other expense |
$ |
750,635 |
787,852 |
769,103 |
752,392 |
749,895 |
||||||||||||||
|
Amortization of core deposit and other intangible assets |
(8,113) |
(8,420) |
(9,089) |
(9,787) |
(11,418) |
|||||||||||||||
|
Merger-related expenses |
— |
— |
— |
— |
(12,593) |
|||||||||||||||
|
Noninterest operating expense |
$ |
742,522 |
779,432 |
760,014 |
742,605 |
725,884 |
||||||||||||||
|
Merger-related expenses |
||||||||||||||||||||
|
Salaries and employee benefits |
$ |
— |
— |
— |
— |
60 |
||||||||||||||
|
Equipment and net occupancy |
— |
— |
— |
— |
339 |
|||||||||||||||
|
Outside data processing and software |
— |
— |
— |
— |
352 |
|||||||||||||||
|
Advertising and marketing |
— |
— |
— |
— |
6,327 |
|||||||||||||||
|
Printing, postage and supplies |
— |
— |
— |
— |
545 |
|||||||||||||||
|
Other costs of operations |
— |
— |
— |
— |
4,970 |
|||||||||||||||
|
Total |
$ |
— |
— |
— |
— |
12,593 |
||||||||||||||
|
Efficiency ratio |
||||||||||||||||||||
|
Noninterest operating expense (numerator) |
$ |
742,522 |
779,432 |
760,014 |
742,605 |
725,884 |
||||||||||||||
|
Taxable-equivalent net interest income |
946,936 |
922,259 |
883,147 |
865,065 |
870,341 |
|||||||||||||||
|
Other income |
460,816 |
446,845 |
465,459 |
491,350 |
448,254 |
|||||||||||||||
|
Less: Gain (loss) on bank investment securities |
(17) |
— |
1,566 |
28,480 |
264 |
|||||||||||||||
|
Denominator |
$ |
1,407,769 |
1,369,104 |
1,347,040 |
1,327,935 |
1,318,331 |
||||||||||||||
|
Efficiency ratio |
52.74 |
% |
56.93 |
% |
56.42 |
% |
55.92 |
% |
55.06 |
% |
||||||||||
|
Balance sheet data |
||||||||||||||||||||
|
In millions |
||||||||||||||||||||
|
Average assets |
||||||||||||||||||||
|
Average assets |
$ |
120,765 |
122,978 |
125,734 |
124,725 |
123,706 |
||||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
|||||||||||||||
|
Core deposit and other intangible assets |
(90) |
(98) |
(102) |
(112) |
(122) |
|||||||||||||||
|
Deferred taxes |
35 |
39 |
40 |
44 |
48 |
|||||||||||||||
|
Average tangible assets |
$ |
116,117 |
118,326 |
121,079 |
120,064 |
119,039 |
||||||||||||||
|
Average common equity |
||||||||||||||||||||
|
Average total equity |
$ |
16,285 |
16,323 |
16,673 |
16,347 |
16,377 |
||||||||||||||
|
Preferred stock |
(1,232) |
(1,232) |
(1,492) |
(1,232) |
(1,232) |
|||||||||||||||
|
Average common equity |
15,053 |
15,091 |
15,181 |
15,115 |
15,145 |
|||||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
|||||||||||||||
|
Core deposit and other intangible assets |
(90) |
(98) |
(102) |
(112) |
(122) |
|||||||||||||||
|
Deferred taxes |
35 |
39 |
40 |
44 |
48 |
|||||||||||||||
|
Average tangible common equity |
$ |
10,405 |
10,439 |
10,526 |
10,454 |
10,478 |
||||||||||||||
|
At end of quarter |
||||||||||||||||||||
|
Total assets |
||||||||||||||||||||
|
Total assets |
$ |
120,897 |
123,223 |
123,449 |
126,841 |
123,821 |
||||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
|||||||||||||||
|
Core deposit and other intangible assets |
(86) |
(95) |
(98) |
(107) |
(117) |
|||||||||||||||
|
Deferred taxes |
33 |
38 |
39 |
42 |
46 |
|||||||||||||||
|
Total tangible assets |
$ |
116,251 |
118,573 |
118,797 |
122,183 |
119,157 |
||||||||||||||
|
Total common equity |
||||||||||||||||||||
|
Total equity |
$ |
16,284 |
16,213 |
16,487 |
16,341 |
16,472 |
||||||||||||||
|
Preferred stock |
(1,232) |
(1,232) |
(1,232) |
(1,232) |
(1,232) |
|||||||||||||||
|
Undeclared dividends - cumulative preferred stock |
(3) |
(3) |
(3) |
(3) |
(3) |
|||||||||||||||
|
Common equity, net of undeclared cumulative preferred dividends |
15,049 |
14,978 |
15,252 |
15,106 |
15,237 |
|||||||||||||||
|
Goodwill |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
(4,593) |
|||||||||||||||
|
Core deposit and other intangible assets |
(86) |
(95) |
(98) |
(107) |
(117) |
|||||||||||||||
|
Deferred taxes |
33 |
38 |
39 |
42 |
46 |
|||||||||||||||
|
Total tangible common equity |
$ |
10,403 |
10,328 |
10,600 |
10,448 |
10,573 |
||||||||||||||
|
(1) After any related tax effect. |
|||
View original content:http://www.prnewswire.com/news-releases/mt-bank-corporation-announces-second-quarter-results-300490641.html
