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

BUFFALO, N.Y., Oct. 18, 2017  -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2017.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2017 were $2.21, up 5% from $2.10 in the year-earlier period. GAAP-basis net income in the recently completed quarter totaled $356 million, 2% above $350 million in the third quarter of 2016. Diluted earnings per common share and GAAP-basis net income for the second quarter of 2017 were $2.35 and $381 million, respectively. GAAP-basis net income for the third quarter of 2017 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.18% and 8.89%, respectively, compared with 1.12% and 8.68%, respectively, in the year-earlier quarter and 1.27% and 9.67%, respectively, in the second quarter of 2017.

On October 9, 2017, Wilmington Trust Corporation, a wholly owned subsidiary of M&T, reached an agreement with the U.S. Attorney's Office for the District of Delaware related to alleged conduct that took place between 2009 and 2010 prior to the acquisition of Wilmington Trust Corporation by M&T. Under terms of the agreement, Wilmington Trust Corporation was required to pay $60 million and settled the government's claims. The settlement amount included $16 million previously payed to the U.S. Securities and Exchange Commission in a related action. The result was a payment of $44 million that is not deductible for income tax purposes. Wilmington Trust did not admit any liability.

Commenting on M&T's financial results for the recent quarter, Darren J. King, Executive Vice President and Chief Financial Officer, stated, "Once again, M&T has delivered very strong financial results through its core businesses producing solid returns for shareholders. Performance in the third quarter benefited from a widening of the net interest margin, lower credit costs and continued strong fee income and well-controlled expenses. We believe the recently announced agreement between Wilmington Trust Corporation and the U.S. Attorney's Office for the District of Delaware is in the Company's best interest and we are pleased to have that legal proceeding behind us."

 

Earnings Highlights

 
                                         
                           

Change 3Q17 vs.

 

($ in millions, except per share data)

 

3Q17

   

3Q16

   

2Q17

   

3Q16

   

2Q17

 
                                         

Net income

 

$

356

   

$

350

   

$

381

     

2

%

   

-7

%

Net income available to common shareholders - diluted

 

$

336

   

$

327

   

$

361

     

3

%

   

-7

%

Diluted earnings per common share

 

$

2.21

   

$

2.10

   

$

2.35

     

5

%

   

-6

%

Annualized return on average assets

   

1.18

%

   

1.12

%

   

1.27

%

               

Annualized return on average common equity

   

8.89

%

   

8.68

%

   

9.67

%

               

 

For the nine-month period ended September 30, 2017, diluted earnings per common share were $6.69, up 15% from $5.80 in the corresponding 2016 period.  GAAP-basis net income for the first nine months of 2017 totaled $1.09 billion, 10% higher than $985 million in the year-earlier period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the nine-month period ended September 30, 2017 was 1.20% and 9.15%, respectively, compared with 1.06% and 8.17%, respectively, in the similar 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 $2.24 in the recent quarter, compared with $2.13 and $2.38 in 2016's third quarter and the second quarter of 2017, respectively. Net operating income was $361 million in the third quarter of 2017, compared with $356 million in the corresponding quarter of 2016 and $386 million in the second quarter of 2017. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.25% and 13.03%, respectively, in the third quarter of 2017, compared with 1.18% and 12.77%, respectively, in the year-earlier quarter and 1.33% and 14.18%, respectively, in the second quarter of 2017.

Diluted net operating earnings per common share in the first nine months of 2017 increased 12% to $6.78 from $6.07 in the year-earlier period. Net operating income during the nine-month period ended September 30, 2017 was $1.10 billion, up 7% from $1.03 billion in the like-2016 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.26% and 13.42%, respectively, in the first nine months of 2017, compared with 1.15% and 12.36%, respectively, in the nine-month period ended September 30, 2016.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $966 million in the third quarter of 2017, an increase of $101 million, or 12%, from $865 million in the year-earlier quarter.  That improvement resulted predominantly from a widening of the net interest margin to 3.53% in the recent quarter from 3.05% in the third quarter of 2016. Taxable-equivalent net interest income in the recent quarter rose 2% from $947 million in the second quarter of 2017.  That growth was primarily due to an 8 basis point widening of the net interest margin from 3.45% in the second quarter of 2017.

 

                                         

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 3Q17 vs.

 

($ in millions)

 

3Q17

   

3Q16

   

2Q17

   

3Q16

   

2Q17

 
                                         

Average earning assets

 

$

108,642

   

$

112,864

   

$

109,987

     

-4

%

   

-1

%

Net interest income - taxable-equivalent

 

$

966

   

$

865

   

$

947

     

12

%

   

2

%

Net interest margin

   

3.53

%

   

3.05

%

   

3.45

%

               

 

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $30 million in the third quarter of 2017, compared with $47 million in 2016's third quarter and $52 million in the second quarter of 2017.  Net charge-offs of loans were $25 million during the recent quarter, compared with $41 million in the third quarter of 2016 and $45 million in the second quarter of 2017.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .11% and .19% in the third quarter of 2017 and 2016, respectively, and .20% in the second 2017 quarter.

Loans classified as nonaccrual totaled $869 million, or .99% of total loans outstanding at September 30, 2017, compared with $872 million or .98% at June 30, 2017 and $837 million or .93% at September 30, 2016. The higher levels of nonaccrual loans at the two most recent quarter-ends as compared with September 30, 2016 reflect 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 September 30, 2016.  Nonaccrual Hudson City-related residential real estate loans totaled $211 million at each of September 30, 2017 and June 30, 2017, compared with $149 million at September 30, 2016. Assets taken in foreclosure of defaulted loans were $111 million at September 30, 2017, compared with $160 million at September 30, 2016 and $105 million at June 30, 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 each of September 30, 2017 and June 30, 2017, compared with $976 million at September 30, 2016.  The allowance expressed as a percentage of outstanding loans was 1.15% at September 30, 2017, compared with 1.09% at September 30, 2016 and 1.13% at June 30, 2017. 

 

Asset Quality Metrics

 
                                         
                           

Change 3Q17 vs.

 

($ in millions)

 

3Q17

   

3Q16

   

2Q17

   

3Q16

   

2Q17

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

869

   

$

837

   

$

872

     

4

%

   

 

Real estate and other foreclosed assets

 

$

111

   

$

160

   

$

105

     

-31

%

   

6

%

Total nonperforming assets

 

$

980

   

$

997

   

$

977

     

-2

%

   

 

Accruing loans past due 90 days or more (1)

 

$

261

   

$

317

   

$

265

     

-18

%

   

-2

%

Nonaccrual loans as % of loans outstanding

   

.99

%

   

.93

%

   

.98

%

               
                                         

Allowance for credit losses

 

$

1,013

   

$

976

   

$

1,008

     

4

%

   

1

%

Allowance for credit losses as % of loans outstanding

   

1.15

%

   

1.09

%

   

1.13

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

30

   

$

47

   

$

52

     

-36

%

   

-42

%

Net charge-offs

 

$

25

   

$

41

   

$

45

     

-40

%

   

-45

%

Net charge-offs as % of average loans (annualized)

   

.11

%

   

.19

%

   

.20

%

               

__________

(1)

Excludes loans acquired at a discount.  Predominantly residential real estate loans.

 

Noninterest Income and Expense.  Noninterest income aggregated $459 million in the recent quarter, compared with $491 million in the third quarter of 2016 and $461 million in the second quarter of 2017. The decline in noninterest income in the recent quarter as compared with the corresponding quarter of 2016 was predominantly the result of $28 million of gains on investment securities recognized during that 2016 quarter. Higher trust income in the third quarter of 2017 was offset by lower mortgage banking revenues as compared with the year-earlier period. As compared with 2017's second quarter, a 12% rise in mortgage banking revenues during the recent quarter was offset by a decline in credit-related fees.

 

Noninterest Income

 
                                         
                           

Change 3Q17 vs.

 

($ in millions)

 

3Q17

   

3Q16

   

2Q17

   

3Q16

   

2Q17

 
                                         

Mortgage banking revenues

 

$

97

   

$

104

   

$

86

     

-7

%

   

12

%

Service charges on deposit accounts

   

109

     

108

     

106

     

1

%

   

3

%

Trust income

   

125

     

119

     

127

     

5

%

   

-1

%

Brokerage services income

   

15

     

16

     

17

     

-8

%

   

-12

%

Trading account and foreign exchange gains

   

7

     

13

     

8

     

-45

%

   

-13

%

Gain on bank investment securities

   

     

28

     

     

-100

%

   

 

Other revenues from operations

   

106

     

103

     

117

     

3

%

   

-9

%

Total other income

 

$

459

   

$

491

   

$

461

     

-6

%

   

 

 

Noninterest expense in the third quarter of 2017 totaled $806 million, compared with $752 million in the year-earlier quarter and $751 million in the second 2017 quarter.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $798 million in the recent quarter, compared with $743 million in each of the third quarter of 2016 and the second quarter of 2017. As of September 30, 2017, M&T increased its reserve for legal matters by $50 million. Higher professional services costs also contributed to the rise in operating expenses in the recent quarter as compared with the noted earlier quarters.

 

Noninterest Expense

 
                                         
                           

Change 3Q17 vs.

 

($ in millions)

 

3Q17

   

3Q16

   

2Q17

   

3Q16

   

2Q17

 
                                         

Salaries and employee benefits

 

$

399

   

$

400

   

$

399

     

     

 

Equipment and net occupancy

   

75

     

75

     

74

     

     

2

%

Outside data processing and software

   

46

     

43

     

45

     

7

%

   

3

%

FDIC assessments

   

24

     

28

     

25

     

-16

%

   

-5

%

Advertising and marketing

   

17

     

22

     

16

     

-21

%

   

7

%

Printing, postage and supplies

   

9

     

9

     

9

     

-3

%

   

-3

%

Amortization of core deposit and other intangible assets

   

8

     

10

     

8

     

-20

%

   

-4

%

Other costs of operations

   

228

     

165

     

175

     

38

%

   

30

%

Total other expense

 

$

806

   

$

752

   

$

751

     

7

%

   

7

%

                                         

 

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 56.0%, 55.9% and 52.7% in the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively.

Balance Sheet.  M&T had total assets of $120.4 billion at September 30, 2017, compared with $126.8 billion at September 30, 2016 and $120.9 billion at June 30, 2017. Loans and leases, net of unearned discount, totaled $87.9 billion at the recent quarter-end, compared with $89.6 billion at September 30, 2016 and $89.1 billion at June 30, 2017.  Investment securities were $15.1 billion, $14.7 billion and $15.8 billion at September 30, 2017, September 30, 2016, and June 30, 2017, respectively.  Total deposits were $93.5 billion at each of September 30, 2017 and June 30, 2017, compared with $98.1 billion at September 30, 2016.

Total shareholders' equity at each of September 30, 2017, September 30, 2016 and June 30, 2017 was $16.3 billion, representing 13.55%, 12.88% and 13.47% of total assets, respectively. Common shareholders' equity was $15.1 billion at each of those dates, or $99.70 per share at September 30, 2017, $97.47 per share at September 30, 2016 and $98.66 per share at June 30, 2017.  Tangible equity per common share rose to $69.02 at the recent quarter-end from $67.42 a year earlier and $68.20 at June 30, 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 10.98% as of September 30, 2017. 

In accordance with its 2017 capital plan, M&T repurchased 1,382,746 shares of common stock during the recent quarter at an average cost per share of $162.52, for a total cost of $225 million.  In the aggregate, during the first nine months of 2017, M&T repurchased 6,025,749 shares of common stock under the 2017 and 2016 capital plans at a total cost of $982 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877) 780-2276.  International participants, using any applicable international calling codes, may dial (973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID# 87313424. 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, October 25, 2017 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID# 87313424.  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

           

Nine months ended

         
   

September 30

           

September 30

         

Amounts in thousands, except per share

 

2017

   

2016

   

Change

   

2017

   

2016

   

Change

 

Performance

                                               

Net income

 

$

355,923

     

349,984

     

2

%

 

$

1,085,903

     

984,543

     

10

%

Net income available to common shareholders

   

335,804

     

326,998

     

3

%

   

1,025,023

     

915,686

     

12

%

Per common share:

                                               

Basic earnings

 

$

2.22

     

2.10

     

6

%

 

$

6.71

     

5.82

     

15

%

Diluted earnings

   

2.21

     

2.10

     

5

%

   

6.69

     

5.80

     

15

%

Cash dividends

 

$

.75

     

.70

     

7

%

 

$

2.25

     

2.10

     

7

%

Common shares outstanding:

                                               

Average - diluted (1)

   

151,691

     

156,026

     

-3

%

   

153,293

     

157,843

     

-3

%

Period end (2)

   

151,291

     

154,987

     

-2

%

   

151,291

     

154,987

     

-2

%

Return on (annualized):

                                               

Average total assets

   

1.18

%

   

1.12

%

           

1.20

%

   

1.06

%

       

Average common shareholders' equity

   

8.89

%

   

8.68

%

           

9.15

%

   

8.17

%

       

Taxable-equivalent net interest income

 

$

965,962

     

865,065

     

12

%

 

$

2,835,157

     

2,613,702

     

8

%

Yield on average earning assets

   

3.89

%

   

3.44

%

           

3.79

%

   

3.50

%

       

Cost of interest-bearing liabilities

   

.57

%

   

.59

%

           

.54

%

   

.56

%

       

Net interest spread

   

3.32

%

   

2.85

%

           

3.25

%

   

2.94

%

       

Contribution of interest-free funds

   

.21

%

   

.20

%

           

.19

%

   

.18

%

       

Net interest margin

   

3.53

%

   

3.05

%

           

3.44

%

   

3.12

%

       

Net charge-offs to average total net loans (annualized)

   

.11

%

   

.19

%

           

.17

%

   

.16

%

       

Net operating results (3)

                                               

Net operating income

 

$

360,658

     

355,929

     

1

%

 

$

1,100,667

     

1,026,597

     

7

%

Diluted net operating earnings per common share

   

2.24

     

2.13

     

5

%

   

6.78

     

6.07

     

12

%

Return on (annualized):

                                               

Average tangible assets

   

1.25

%

   

1.18

%

           

1.26

%

   

1.15

%

       

Average tangible common equity

   

13.03

%

   

12.77

%

           

13.42

%

   

12.36

%

       

Efficiency ratio

   

56.00

%

   

55.92

%

           

55.21

%

   

55.99

%

       
                                                 
   

At September 30

                             

Loan quality

 

2017

   

2016

   

Change

                         

Nonaccrual loans

 

$

869,362

     

837,362

     

4

%

                       

Real estate and other foreclosed assets

   

110,515

     

159,881

     

-31

%

                       

Total nonperforming assets

 

$

979,877

     

997,243

     

-2

%

                       

Accruing loans past due 90 days or more (4)

 

$

261,288

     

317,282

     

-18

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

34,687

     

47,130

     

-26

%

                       

Accruing loans past due 90 days or more

   

252,072

     

282,077

     

-11

%

                       

Renegotiated loans

 

$

226,672

     

217,559

     

4

%

                       

Accruing loans acquired at a discount past due 90 days or more (5)

 

$

56,225

     

65,182

     

-14

%

                       

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

$

779,340

     

981,105

     

-21

%

                       

Carrying amount

   

466,943

     

616,991

     

-24

%

                       

Nonaccrual loans to total net loans

   

.99

%

   

.93

%

                               

Allowance for credit losses to total loans

   

1.15

%

   

1.09

%

                               

__________

(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

   
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Amounts in thousands, except per share

 

2017

   

2017

   

2017

   

2016

   

2016

 

Performance

                                       

Net income

 

$

355,923

     

381,053

     

348,927

     

330,571

     

349,984

 

Net income available to common shareholders

   

335,804

     

360,662

     

328,567

     

307,797

     

326,998

 

Per common share:

                                       

Basic earnings

 

$

2.22

     

2.36

     

2.13

     

1.98

     

2.10

 

Diluted earnings

   

2.21

     

2.35

     

2.12

     

1.98

     

2.10

 

Cash dividends

 

$

.75

     

.75

     

.75

     

.70

     

.70

 

Common shares outstanding:

                                       

Average - diluted (1)

   

151,691

     

153,276

     

154,949

     

155,700

     

156,026

 

Period end (2)

   

151,291

     

152,539

     

153,781

     

156,213

     

154,987

 

Return on (annualized):

                                       

Average total assets

   

1.18

%

   

1.27

%

   

1.15

%

   

1.05

%

   

1.12

%

Average common shareholders' equity

   

8.89

%

   

9.67

%

   

8.89

%

   

8.13

%

   

8.68

%

Taxable-equivalent net interest income

 

$

965,962

     

946,936

     

922,259

     

883,147

     

865,065

 

Yield on average earning assets

   

3.89

%

   

3.79

%

   

3.67

%

   

3.45

%

   

3.44

%

Cost of interest-bearing liabilities

   

.57

%

   

.52

%

   

.52

%

   

.57

%

   

.59

%

Net interest spread

   

3.32

%

   

3.27

%

   

3.15

%

   

2.88

%

   

2.85

%

Contribution of interest-free funds

   

.21

%

   

.18

%

   

.19

%

   

.20

%

   

.20

%

Net interest margin

   

3.53

%

   

3.45

%

   

3.34

%

   

3.08

%

   

3.05

%

Net charge-offs to average total net loans (annualized)

   

.11

%

   

.20

%

   

.19

%

   

.22

%

   

.19

%

Net operating results (3)

                                       

Net operating income

 

$

360,658

     

385,974

     

354,035

     

336,095

     

355,929

 

Diluted net operating earnings per common share

   

2.24

     

2.38

     

2.15

     

2.01

     

2.13

 

Return on (annualized):

                                       

Average tangible assets

   

1.25

%

   

1.33

%

   

1.21

%

   

1.10

%

   

1.18

%

Average tangible common equity

   

13.03

%

   

14.18

%

   

13.05

%

   

11.93

%

   

12.77

%

Efficiency ratio

   

56.00

%

   

52.74

%

   

56.93

%

   

56.42

%

   

55.92

%

                                         
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Loan quality

 

2017

   

2017

   

2017

   

2016

   

2016

 

Nonaccrual loans

 

$

869,362

     

872,374

     

926,675

     

920,015

     

837,362

 

Real estate and other foreclosed assets

   

110,515

     

104,424

     

119,155

     

139,206

     

159,881

 

Total nonperforming assets

 

$

979,877

     

976,798

     

1,045,830

     

1,059,221

     

997,243

 

Accruing loans past due 90 days or more (4)

 

$

261,288

     

265,461

     

280,019

     

300,659

     

317,282

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

34,687

     

39,296

     

39,610

     

40,610

     

47,130

 

Accruing loans past due 90 days or more

   

252,072

     

235,227

     

252,552

     

282,659

     

282,077

 

Renegotiated loans

 

$

226,672

     

221,892

     

191,343

     

190,374

     

217,559

 

Accruing loans acquired at a discount past due 90 days or

  more (5)

 

$

56,225

     

57,498

     

63,732

     

61,144

     

65,182

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

$

779,340

     

838,476

     

890,431

     

927,446

     

981,105

 

Carrying amount

   

466,943

     

512,393

     

552,935

     

578,032

     

616,991

 

Nonaccrual loans to total net loans

   

.99

%

   

.98

%

   

1.04

%

   

1.01

%

   

.93

%

Allowance for credit losses to total loans

   

1.15

%

   

1.13

%

   

1.12

%

   

1.09

%

   

1.09

%

                                             

__________

(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

           

Nine months ended

         
   

September 30

           

September 30

         

Dollars in thousands

 

2017

   

2016

   

Change

   

2017

   

2016

   

Change

 

Interest income

 

$

1,057,210

     

969,515

     

9

%

 

$

3,093,656

     

2,912,970

     

6

%

Interest expense

   

100,076

     

111,175

     

-10

     

284,062

     

318,847

     

-11

 

Net interest income

   

957,134

     

858,340

     

12

     

2,809,594

     

2,594,123

     

8

 

Provision for credit losses

   

30,000

     

47,000

     

-36

     

137,000

     

128,000

     

7

 

Net interest income after provision for credit losses

   

927,134

     

811,340

     

14

     

2,672,594

     

2,466,123

     

8

 

Other income

                                               

Mortgage banking revenues

   

96,737

     

103,747

     

-7

     

267,592

     

275,193

     

-3

 

Service charges on deposit accounts

   

109,356

     

107,935

     

1

     

319,589

     

314,212

     

2

 

Trust income

   

124,900

     

118,654

     

5

     

371,712

     

350,181

     

6

 

Brokerage services income

   

14,676

     

15,914

     

-8

     

48,677

     

48,190

     

1

 

Trading account and foreign exchange gains

   

7,058

     

12,754

     

-45

     

24,833

     

33,434

     

-26

 

Gain (loss) on bank investment securities

   

     

28,480

     

-100

     

(17)

     

28,748

     

-100

 

Other revenues from operations

   

106,702

     

103,866

     

3

     

334,704

     

310,579

     

8

 

Total other income

   

459,429

     

491,350

     

-6

     

1,367,090

     

1,360,537

     

 

Other expense

                                               

Salaries and employee benefits

   

399,089

     

399,786

     

     

1,247,851

     

1,230,246

     

1

 

Equipment and net occupancy

   

75,558

     

75,263

     

     

223,721

     

225,165

     

-1

 

Outside data processing and software

   

45,761

     

42,878

     

7

     

134,637

     

128,402

     

5

 

FDIC assessments

   

23,969

     

28,459

     

-16

     

78,149

     

76,054

     

3

 

Advertising and marketing

   

17,403

     

21,996

     

-21

     

49,837

     

66,063

     

-25

 

Printing, postage and supplies

   

8,732

     

8,972

     

-3

     

27,397

     

30,865

     

-11

 

Amortization of core deposit and other 
  intangible assets

   

7,808

     

9,787

     

-20

     

24,341

     

33,524

     

-27

 

Other costs of operations

   

227,705

     

165,251

     

38

     

558,579

     

488,063

     

14

 

Total other expense

   

806,025

     

752,392

     

7

     

2,344,512

     

2,278,382

     

3

 

Income before income taxes

   

580,538

     

550,298

     

5

     

1,695,172

     

1,548,278

     

9

 

Applicable income taxes

   

224,615

     

200,314

     

12

     

609,269

     

563,735

     

8

 

Net income

 

$

355,923

     

349,984

     

2

%

 

$

1,085,903

     

984,543

     

10

%

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 
   
   

Three months ended

 
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Dollars in thousands

 

2017

   

2017

   

2017

   

2016

   

2016

 

Interest income

 

$

1,057,210

     

1,030,413

     

1,006,033

     

982,901

     

969,515

 

Interest expense

   

100,076

     

92,213

     

91,773

     

107,137

     

111,175

 

Net interest income

   

957,134

     

938,200

     

914,260

     

875,764

     

858,340

 

Provision for credit losses

   

30,000

     

52,000

     

55,000

     

62,000

     

47,000

 

Net interest income after provision for credit losses

   

927,134

     

886,200

     

859,260

     

813,764

     

811,340

 

Other income

                                       

Mortgage banking revenues

   

96,737

     

86,163

     

84,692

     

98,504

     

103,747

 

Service charges on deposit accounts

   

109,356

     

106,057

     

104,176

     

104,890

     

107,935

 

Trust income

   

124,900

     

126,797

     

120,015

     

122,003

     

118,654

 

Brokerage services income

   

14,676

     

16,617

     

17,384

     

15,233

     

15,914

 

Trading account and foreign exchange gains

   

7,058

     

8,084

     

9,691

     

7,692

     

12,754

 

Gain (loss) on bank investment securities

   

     

(17)

     

     

1,566

     

28,480

 

Other revenues from operations

   

106,702

     

117,115

     

110,887

     

115,571

     

103,866

 

Total other income

   

459,429

     

460,816

     

446,845

     

465,459

     

491,350

 

Other expense

                                       

Salaries and employee benefits

   

399,089

     

398,900

     

449,862

     

393,354

     

399,786

 

Equipment and net occupancy

   

75,558

     

73,797

     

74,366

     

69,976

     

75,263

 

Outside data processing and software

   

45,761

     

44,575

     

44,301

     

43,987

     

42,878

 

FDIC assessments

   

23,969

     

25,353

     

28,827

     

28,991

     

28,459

 

Advertising and marketing

   

17,403

     

16,324

     

16,110

     

21,074

     

21,996

 

Printing, postage and supplies

   

8,732

     

8,957

     

9,708

     

8,681

     

8,972

 

Amortization of core deposit and other intangible assets

   

7,808

     

8,113

     

8,420

     

9,089

     

9,787

 

Other costs of operations

   

227,705

     

174,616

     

156,258

     

193,951

     

165,251

 

Total other expense

   

806,025

     

750,635

     

787,852

     

769,103

     

752,392

 

Income before income taxes

   

580,538

     

596,381

     

518,253

     

510,120

     

550,298

 

Applicable income taxes

   

224,615

     

215,328

     

169,326

     

179,549

     

200,314

 

Net income

 

$

355,923

     

381,053

     

348,927

     

330,571

     

349,984

 

 

 

Condensed Consolidated Balance Sheet

           
             
   

September 30

           

Dollars in thousands

 

2017

   

2016

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,368,252

     

1,332,202

     

3

 

%

Interest-bearing deposits at banks

   

6,306,484

     

10,777,636

     

-41

   

Trading account

   

170,516

     

488,588

     

-65

   

Investment securities

   

15,073,926

     

14,733,574

     

2

   

Loans and leases:

                         

Commercial, financial, etc.

   

21,743,251

     

21,917,163

     

-1

   

Real estate - commercial

   

32,914,288

     

32,078,762

     

3

   

Real estate - consumer

   

20,265,162

     

23,584,420

     

-14

   

Consumer

   

13,002,433

     

12,066,147

     

8

   

Total loans and leases, net of unearned discount

   

87,925,134

     

89,646,492

     

-2

   

Less: allowance for credit losses

   

1,013,326

     

976,121

     

4

   

Net loans and leases

   

86,911,808

     

88,670,371

     

-2

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

78,614

     

106,744

     

-26

   

Other assets

   

5,899,092

     

6,138,801

     

-4

   

Total assets

 

$

120,401,804

     

126,841,028

     

-5

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

33,111,246

     

33,127,627

     

 

%

Interest-bearing deposits

   

60,170,133

     

64,786,035

     

-7

   

Deposits at Cayman Islands office

   

232,014

     

223,183

     

4

   

Total deposits

   

93,513,393

     

98,136,845

     

-5

   

Short-term borrowings

   

200,768

     

213,846

     

-6

   

Accrued interest and other liabilities

   

1,791,946

     

1,938,201

     

-8

   

Long-term borrowings

   

8,577,645

     

10,211,160

     

-16

   

Total liabilities

   

104,083,752

     

110,500,052

     

-6

   

Shareholders' equity:

                         

Preferred

   

1,231,500

     

1,231,500

     

   

Common (1)

   

15,086,552

     

15,109,476

     

   

Total shareholders' equity

   

16,318,052

     

16,340,976

     

   

Total liabilities and shareholders' equity

 

$

120,401,804

     

126,841,028

     

-5

 

%

__________

(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $247.9 million at September 30, 2017 and $114.6 million at September 30, 2016.

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 
       
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Dollars in thousands

 

2017

   

2017

   

2017

   

2016

   

2016

 

ASSETS

                                       

Cash and due from banks

 

$

1,368,252

     

1,344,478

     

1,286,962

     

1,320,549

     

1,332,202

 

Interest-bearing deposits at banks

   

6,306,484

     

5,023,829

     

6,945,149

     

5,000,638

     

10,777,636

 

Federal funds sold

   

     

1,000

     

     

     

 

Trading account

   

170,516

     

174,646

     

174,854

     

323,867

     

488,588

 

Investment securities

   

15,073,926

     

15,816,060

     

15,968,415

     

16,250,468

     

14,733,574

 

Loans and leases:

                                       

Commercial, financial, etc.

   

21,743,251

     

22,191,051

     

22,295,376

     

22,610,047

     

21,917,163

 

Real estate - commercial

   

32,914,288

     

33,348,991

     

33,071,654

     

33,506,394

     

32,078,762

 

Real estate - consumer

   

20,265,162

     

20,960,171

     

21,724,491

     

22,590,912

     

23,584,420

 

Consumer

   

13,002,433

     

12,580,342

     

12,221,481

     

12,146,063

     

12,066,147

 

Total loans and leases, net of unearned discount

   

87,925,134

     

89,080,555

     

89,313,002

     

90,853,416

     

89,646,492

 

Less: allowance for credit losses

   

1,013,326

     

1,008,225

     

1,001,430

     

988,997

     

976,121

 

Net loans and leases

   

86,911,808

     

88,072,330

     

88,311,572

     

89,864,419

     

88,670,371

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

78,614

     

86,422

     

94,535

     

97,655

     

106,744

 

Other assets

   

5,899,092

     

5,784,690

     

5,848,652

     

5,998,498

     

6,138,801

 

Total assets

 

$

120,401,804

     

120,896,567

     

123,223,251

     

123,449,206

     

126,841,028

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

33,111,246

     

32,366,426

     

34,279,591

     

32,813,896

     

33,127,627

 

Interest-bearing deposits

   

60,170,133

     

60,978,895

     

62,570,167

     

62,478,053

     

64,786,035

 

Deposits at Cayman Islands office

   

232,014

     

195,617

     

192,763

     

201,927

     

223,183

 

Total deposits

   

93,513,393

     

93,540,938

     

97,042,521

     

95,493,876

     

98,136,845

 

Short-term borrowings

   

200,768

     

1,695,453

     

185,102

     

163,442

     

213,846

 

Accrued interest and other liabilities

   

1,791,946

     

1,727,059

     

1,694,905

     

1,811,431

     

1,938,201

 

Long-term borrowings

   

8,577,645

     

7,649,580

     

8,087,619

     

9,493,835

     

10,211,160

 

Total liabilities

   

104,083,752

     

104,613,030

     

107,010,147

     

106,962,584

     

110,500,052

 

Shareholders' equity:

                                       

Preferred

   

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

 

Common (1)

   

15,086,552

     

15,052,037

     

14,981,604

     

15,255,122

     

15,109,476

 

Total shareholders' equity

   

16,318,052

     

16,283,537

     

16,213,104

     

16,486,622

     

16,340,976

 

Total liabilities and shareholders' equity

 

$

120,401,804

     

120,896,567

     

123,223,251

     

123,449,206

     

126,841,028

 

___________

(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $247.9 million at September 30, 2017,  $270.1 million at June 30, 2017, $291.6 million at March 31, 2017, $294.6 million at December 31, 2016 and $114.6 million at September 30, 2016.

 

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 
   

Three months ended

     

Change in balance

     

Nine months ended

         
   

September 30,

     

September 30,

     

June 30,

     

September 30, 2017 from

     

September 30

     

Change

   

Dollars in millions

 

2017

     

2016

     

2017

     

September 30,

     

June 30,

     

2017

     

2016

     

in

   
     

Balance

     

Rate

     

Balance

     

Rate

     

Balance

     

Rate

     

2016

     

2017

       

Balance

     

Rate

     

Balance

     

Rate

     

balance

   

ASSETS

                                                                                                           

Interest-bearing deposits at banks

 

$

4,740

     

1.25

 

%

 

9,681

     

.51

 

%

 

4,741

     

1.03

 

%

 

-51

 

%

 

 

%

 

$

5,206

     

1.01

 

%

 

8,864

     

.51

 

%

 

-41

 

%

Federal funds sold

   

     

     

     

     

1

     

1.44

     

     

       

     

     

     

     

   

Trading account

   

73

     

1.92

     

90

     

1.52

     

64

     

1.50

     

-19

     

15

       

66

     

1.87

     

89

     

1.62

     

-26

   

Investment securities

   

15,443

     

2.28

     

14,361

     

2.38

     

15,913

     

2.36

     

8

     

-3

       

15,783

     

2.36

     

14,873

     

2.49

     

6

   

Loans and leases, net of unearned discount

                                                                                                           

Commercial, financial, etc.

   

21,734

     

3.98

     

21,480

     

3.44

     

22,350

     

3.84

     

1

     

-3

       

22,122

     

3.83

     

21,216

     

3.43

     

4

   

Real estate - commercial

   

33,257

     

4.50

     

31,252

     

4.00

     

33,214

     

4.30

     

6

     

       

33,216

     

4.33

     

30,274

     

4.08

     

10

   

Real estate - consumer

   

20,609

     

3.96

     

24,058

     

3.92

     

21,318

     

3.94

     

-14

     

-3

       

21,363

     

3.94

     

24,922

     

3.93

     

-14

   

Consumer

   

12,786

     

4.89

     

11,942

     

4.55

     

12,386

     

4.78

     

7

     

3

       

12,444

     

4.79

     

11,747

     

4.55

     

6

   

Total loans and leases, net

   

88,386

     

4.32

     

88,732

     

3.93

     

89,268

     

4.19

     

     

-1

       

89,145

     

4.20

     

88,159

     

3.97

     

1

   

Total earning assets

   

108,642

     

3.89

     

112,864

     

3.44

     

109,987

     

3.79

     

-4

     

-1

       

110,200

     

3.79

     

111,985

     

3.50

     

-2

   

Goodwill

   

4,593

             

4,593

             

4,593

             

     

       

4,593

             

4,593

             

   

Core deposit and other intangible assets

   

82

             

112

             

90

             

-26

     

-9

       

90

             

123

             

-26

   

Other assets

   

6,198

             

7,156

             

6,095

             

-13

     

2

       

6,190

             

7,196

             

-14

   

Total assets

 

$

119,515

             

124,725

             

120,765

             

-4

 

%

 

-1

 

%

 

$

121,073

             

123,897

             

-2

 

%

                                                                                                             

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                                                           

Interest-bearing deposits

                                                                                                           

Savings and interest-checking deposits

 

$

53,287

     

.28

     

52,516

     

.18

     

53,611

     

.23

     

1

 

%

 

-1

 

%

 

$

53,386

     

.24

     

51,570

     

.16

     

4

 

%

Time deposits

   

7,673

     

.72

     

12,334

     

.90

     

8,559

     

.76

     

-38

     

-10

       

8,591

     

.77

     

12,694

     

.83

     

-32

   

Deposits at Cayman Islands office

   

169

     

.73

     

220

     

.37

     

163

     

.69

     

-23

     

4

       

175

     

.66

     

197

     

.39

     

-11

   

Total interest-bearing deposits

   

61,129

     

.34

     

65,070

     

.32

     

62,333

     

.30

     

-6

     

-2

       

62,152

     

.31

     

64,461

     

.29

     

-4

   

Short-term borrowings

   

244

     

.90

     

231

     

.29

     

212

     

.71

     

6

     

15

       

213

     

.72

     

1,127

     

.41

     

-81

   

Long-term borrowings

   

8,033

     

2.35

     

10,287

     

2.28

     

8,292

     

2.16

     

-22

     

-3

       

8,248

     

2.25

     

10,370

     

2.25

     

-20

   

Total interest-bearing liabilities

   

69,406

     

.57

     

75,588

     

.59

     

70,837

     

.52

     

-8

     

-2

       

70,613

     

.54

     

75,958

     

.56

     

-7

   

Noninterest-bearing deposits

   

32,005

             

30,782

             

31,868

             

4

     

       

32,382

             

29,638

             

9

   

Other liabilities

   

1,803

             

2,008

             

1,775

             

-10

     

2

       

1,775

             

1,967

             

-10

   

Total liabilities

   

103,214

             

108,378

             

104,480

             

-5

     

-1

       

104,770

             

107,563

             

-3

   

Shareholders' equity

   

16,301

             

16,347

             

16,285

             

     

       

16,303

             

16,334

             

   

Total liabilities and shareholders' equity

 

$

119,515

             

124,725

             

120,765

             

-4

 

%

 

-1

 

%

 

$

121,073

             

123,897

             

-2

 

%

                                                                                                             

Net interest spread

           

3.32

             

2.85

             

3.27

                               

3.25

             

2.94

           

Contribution of interest-free funds

           

.21

             

.20

             

.18

                               

.19

             

.18

           

Net interest margin

           

3.53

 

%

         

3.05

 

%

         

3.45

 

%

                           

3.44

 

%

         

3.12

 

%

       

 

 

Reconciliation of GAAP to Non-GAAP Measures

           
             
   

Three months ended

   

Nine months ended

 
   

September 30

   

September 30

 
   

2017

   

2016

   

2017

   

2016

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

355,923

     

349,984

     

1,085,903

     

984,543

 

Amortization of core deposit and other intangible assets (1)

   

4,735

     

5,945

     

14,764

     

20,369

 

Merger-related expenses (1)

   

     

     

     

21,685

 

Net operating income

 

$

360,658

     

355,929

     

1,100,667

     

1,026,597

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

2.21

     

2.10

     

6.69

     

5.80

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.09

     

.13

 

Merger-related expenses (1)

   

     

     

     

.14

 

Diluted net operating earnings per common share

 

$

2.24

     

2.13

     

6.78

     

6.07

 
                                 

Other expense

                               

Other expense

 

$

806,025

     

752,392

     

2,344,512

     

2,278,382

 

Amortization of core deposit and other intangible assets

   

(7,808)

     

(9,787)

     

(24,341)

     

(33,524)

 

Merger-related expenses

   

     

     

     

(35,755)

 

Noninterest operating expense

 

$

798,217

     

742,605

     

2,320,171

     

2,209,103

 
                                 

Merger-related expenses

                               

Salaries and employee benefits

 

$

     

     

     

5,334

 

Equipment and net occupancy

   

     

     

     

1,278

 

Outside data processing and software

   

     

     

     

1,067

 

Advertising and marketing

   

     

     

     

10,522

 

Printing, postage and supplies

   

     

     

     

1,482

 

Other costs of operations

   

     

     

     

16,072

 

Total

 

$

     

     

     

35,755

 
                                 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

798,217

     

742,605

     

2,320,171

     

2,209,103

 

Taxable-equivalent net interest income

   

965,962

     

865,065

     

2,835,157

     

2,613,702

 

Other income

   

459,429

     

491,350

     

1,367,090

     

1,360,537

 

Less:  Gain (loss) on bank investment securities

   

     

28,480

     

(17)

     

28,748

 

Denominator

 

$

1,425,391

     

1,327,935

     

4,202,264

     

3,945,491

 

Efficiency ratio

   

56.00

%

   

55.92

%

   

55.21

%

   

55.99

%

                                 

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

119,515

     

124,725

     

121,073

     

123,897

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(82)

     

(112)

     

(90)

     

(123)

 

Deferred taxes

   

32

     

44

     

35

     

48

 

Average tangible assets

 

$

114,872

     

120,064

     

116,425

     

119,229

 

Average common equity

                               

Average total equity

 

$

16,301

     

16,347

     

16,303

     

16,334

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,231)

 

Average common equity

   

15,069

     

15,115

     

15,071

     

15,103

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(82)

     

(112)

     

(90)

     

(123)

 

Deferred taxes

   

32

     

44

     

35

     

48

 

Average tangible common equity

 

$

10,426

     

10,454

     

10,423

     

10,435

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

120,402

     

126,841

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(79)

     

(107)

                 

Deferred taxes

   

31

     

42

                 

Total tangible assets

 

$

115,761

     

122,183

                 

Total common equity

                               

Total equity

 

$

16,318

     

16,341

                 

Preferred stock

   

(1,232)

     

(1,232)

                 

Undeclared dividends - cumulative preferred stock

   

(3)

     

(3)

                 

Common equity, net of undeclared cumulative preferred dividends

   

15,083

     

15,106

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(79)

     

(107)

                 

Deferred taxes

   

31

     

42

                 

Total tangible common equity

 

$

10,442

     

10,448

                 

___________

(1)  After any related tax effect.

 

 

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

 
   

Three months ended

 
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 
   

2017

   

2017

   

2017

   

2016

   

2016

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

355,923

     

381,053

     

348,927

     

330,571

     

349,984

 

Amortization of core deposit and other intangible assets (1)

   

4,735

     

4,921

     

5,108

     

5,524

     

5,945

 

Net operating income

 

$

360,658

     

385,974

     

354,035

     

336,095

     

355,929

 

Earnings per common share

                                       

Diluted earnings per common share

 

$

2.21

     

2.35

     

2.12

     

1.98

     

2.10

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.03

     

.03

     

.03

 

Diluted net operating earnings per common share

 

$

2.24

     

2.38

     

2.15

     

2.01

     

2.13

 
                                         

Other expense

                                       

Other expense

 

$

806,025

     

750,635

     

787,852

     

769,103

     

752,392

 

Amortization of core deposit and other intangible assets

   

(7,808)

     

(8,113)

     

(8,420)

     

(9,089)

     

(9,787)

 

Noninterest operating expense

 

$

798,217

     

742,522

     

779,432

     

760,014

     

742,605

 
                                         

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

798,217

     

742,522

     

779,432

     

760,014

     

742,605

 

Taxable-equivalent net interest income

   

965,962

     

946,936

     

922,259

     

883,147

     

865,065

 

Other income

   

459,429

     

460,816

     

446,845

     

465,459

     

491,350

 

Less:  Gain (loss) on bank investment securities

   

     

(17)

     

     

1,566

     

28,480

 

Denominator

 

$

1,425,391

     

1,407,769

     

1,369,104

     

1,347,040

     

1,327,935

 

Efficiency ratio

   

56.00

%

   

52.74

%

   

56.93

%

   

56.42

%

   

55.92

%

                                         

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

119,515

     

120,765

     

122,978

     

125,734

     

124,725

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(82)

     

(90)

     

(98)

     

(102)

     

(112)

 

Deferred taxes

   

32

     

35

     

39

     

40

     

44

 

Average tangible assets

 

$

114,872

     

116,117

     

118,326

     

121,079

     

120,064

 
                                         

Average common equity

                                       

Average total equity

 

$

16,301

     

16,285

     

16,323

     

16,673

     

16,347

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,492)

     

(1,232)

 

Average common equity

   

15,069

     

15,053

     

15,091

     

15,181

     

15,115

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(82)

     

(90)

     

(98)

     

(102)

     

(112)

 

Deferred taxes

   

32

     

35

     

39

     

40

     

44

 

Average tangible common equity

 

$

10,426

     

10,405

     

10,439

     

10,526

     

10,454

 
                                         

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

120,402

     

120,897

     

123,223

     

123,449

     

126,841

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(79)

     

(86)

     

(95)

     

(98)

     

(107)

 

Deferred taxes

   

31

     

33

     

38

     

39

     

42

 

Total tangible assets

 

$

115,761

     

116,251

     

118,573

     

118,797

     

122,183

 
                                         

Total common equity

                                       

Total equity

 

$

16,318

     

16,284

     

16,213

     

16,487

     

16,341

 

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

   

15,083

     

15,049

     

14,978

     

15,252

     

15,106

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(79)

     

(86)

     

(95)

     

(98)

     

(107)

 

Deferred taxes

   

31

     

33

     

38

     

39

     

42

 

Total tangible common equity

 

$

10,442

     

10,403

     

10,328

     

10,600

     

10,448

 

__________

(1)   After any related tax effect.

 

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