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

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 
     more (5)

 

$

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
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.

 

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 
     more (5)

 

$

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 
     intangible assets

   

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 
     intangible assets

   

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
discount

   

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
million at March 31, 2017, $294.6 million at December 31, 2016, $114.6 million at September 30, 2016 and $101.0 million at
June 30, 2016.

 

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
discount

                                                                         

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
SHAREHOLDERS' EQUITY

                                                                         

Interest-bearing deposits

                                                                         

Savings and interest-checking 
     deposits

 

$

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' 
     equity

 

$

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.

 

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