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

BUFFALO, N.Y., July 18, 2018 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for quarter ended June 30, 2018.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2018 were $3.26, up 39% from $2.35 in the corresponding 2017 quarter and 46% higher than $2.23 in the first quarter of 2018.  GAAP-basis net income in the recent quarter was $493 million, up from $381 million in the second quarter of 2017 and $353 million in the initial 2018 quarter. GAAP-basis net income for the second quarter of 2018 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.70% and 13.32%, respectively, improved from 1.27% and 9.67%, respectively, in the year-earlier quarter and 1.22% and 9.15%, respectively, in the first quarter of 2018. During the initial 2018 quarter, M&T increased its reserve for litigation matters by $135 million in anticipation of the settlement of a Wilmington Trust Corporation civil litigation matter that was preliminarily approved by the court in July 2018. That increase, on an after-tax basis, reduced net income in that quarter by $102 million, or $.68 of diluted earnings per common share. As compared with 2017, income tax expense in 2018 reflects the reduction of the corporate Federal income tax rate from 35% to 21%.

Commenting on M&T's results for the second quarter, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "M&T's financial performance in the second quarter was strong, led by a 12 basis point expansion of the net interest margin and higher trust income.  Credit quality continued to be very good with the net charge-off ratio well below our long-term average.  Expenses were in line with our expectations as we continued with our plan to invest savings realized from lower income tax rates in our employees, communities and customer service delivery capabilities. Furthermore, the Federal Reserve did not object to our revised 2018 Capital Plan that includes the repurchase of up to $1.8 billion of common shares and a 25% increase in M&T's quarterly common stock dividend."

Earnings Highlights

 
                                         
                           

Change 2Q18 vs.

 

($ in millions, except per share data)

 

2Q18

   

2Q17

   

1Q18

   

2Q17

   

1Q18

 
                                         

Net income

 

$

493

   

$

381

   

$

353

     

29

%

   

40

%

Net income available to common shareholders - diluted

 

$

473

   

$

361

   

$

333

     

31

%

   

42

%

Diluted earnings per common share

 

$

3.26

   

$

2.35

   

$

2.23

     

39

%

   

46

%

Annualized return on average assets

   

1.70

%

   

1.27

%

   

1.22

%

               

Annualized return on average common equity

   

13.32

%

   

9.67

%

   

9.15

%

               

 

For the six-month period ended June 30, 2018, diluted earnings per common share were $5.48, up 23% from $4.47 in the year-earlier period. GAAP-basis net income for the first six months of 2018 totaled $846 million, 16% higher than $730 million in the corresponding 2017 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, 2018 was 1.46% and 11.21%, respectively, improved from 1.21% and 9.28%, respectively, in the similar 2017 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" expenses 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 $3.29 in the recent quarter, up from $2.38 in the second quarter of 2017 and $2.26 in the initial 2018 quarter.  Net operating income for the second quarter of 2018 was $498 million, compared with $386 million in the year-earlier period and $357 million in the first quarter of 2018. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.79% and 19.91%, respectively, in the recent quarter, improved from 1.33% and 14.18%, respectively, in the second quarter of 2017 and 1.28% and 13.51%, respectively, in the first quarter of 2018.

Diluted net operating earnings per common share in the first six months of 2018 increased 22% to $5.54 from $4.53 in the first half of 2017. Net operating income during the six-month period ended June 30, 2018 was $855 million, up 16% from $740 million in the year-earlier period. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.53% and 16.65%, respectively, in the first half of 2018, compared with 1.27% and 13.61%, respectively, in the first six months of 2017.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $1.01 billion in 2018's second quarter, 7% higher than $947 million in the similar 2017 quarter and 3% higher than $980 million in 2018's initial quarter. That growth resulted from a widening of the net interest margin to 3.83% in the recent quarter from 3.45% in the second quarter of 2017 and 3.71% in the first quarter of 2018. In each quarterly comparison, the impact of the improved margin was partially offset by lower average balances of loans and investment securities.

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 2Q18 vs.

 

($ in millions)

 

2Q18

   

2Q17

   

1Q18

   

2Q17

   

1Q18

 
                                         

Average earning assets

 

$

106,210

   

$

109,987

   

$

107,231

     

-3

%

   

-1

%

Net interest income  ̶  taxable-equivalent

 

$

1,014

   

$

947

   

$

980

     

7

%

   

3

%

Net interest margin

   

3.83

%

   

3.45

%

   

3.71

%

               

 

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $35 million in the second quarter of 2018, compared with $52 million in the year-earlier quarter and $43 million in 2018's first quarter. Net charge-offs of loans were $35 million during the recent quarter, compared with $45 million in the second quarter of 2017 and $41 million in the first quarter of 2018.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .16% and .20% in the second quarters of 2018 and 2017, respectively, and .19% in the first quarter of 2018.

Loans classified as nonaccrual totaled $820 million or .93% of total loans outstanding at June 30, 2018, improved from $872 million or .98% a year earlier and $865 million or .99% at March 31, 2018. Assets taken in foreclosure of defaulted loans were $98 million at June 30, 2018, compared with $105 million at June 30, 2017 and $101 million at March 31, 2018.

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 $1.02 billion or 1.16% of loans outstanding at each of June 30, 2018 and March 31, 2018, compared with $1.01 billion or 1.13% at June 30, 2017.

Asset Quality Metrics

 
                                         
                           

Change 2Q18 vs.

 

($ in millions)

 

2Q18

   

2Q17

   

1Q18

   

2Q17

   

1Q18

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

820

   

$

872

   

$

865

     

-6

%

   

-5

%

Real estate and other foreclosed assets

 

$

98

   

$

105

   

$

101

     

-6

%

   

-3

%

Total nonperforming assets

 

$

918

   

$

977

   

$

966

     

-6

%

   

-5

%

Accruing loans past due 90 days or more (1)

 

$

223

   

$

265

   

$

235

     

-16

%

   

-5

%

Nonaccrual loans as % of loans outstanding

   

.93

%

   

.98

%

   

.99

%

               
                                         

Allowance for credit losses

 

$

1,019

   

$

1,008

   

$

1,020

     

1

%

   

 

Allowance for credit losses as % of loans outstanding

   

1.16

%

   

1.13

%

   

1.16

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

35

   

$

52

   

$

43

     

-33

%

   

-19

%

Net charge-offs

 

$

35

   

$

45

   

$

41

     

-22

%

   

-13

%

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

   

.16

%

   

.20

%

   

.19

%

               
     

(1) Excludes loans acquired at a discount.  Predominantly residential real estate loans.

Noninterest Income and Expense.  Noninterest income totaled $457 million in the recent quarter, compared with $461 million in the second quarter of 2017 and $459 million in the first quarter of 2018. Improved trust income and mortgage banking revenues in the recent quarter were offset by the impact of higher credit-related fees and income from bank-owned life insurance and brokerage services in the year earlier quarter and $23 million of income in the initial 2018 quarter from M&T's investment in Bayview Lending Group.

Noninterest Income

 
                                         
                           

Change 2Q18 vs.

 

($ in millions)

 

2Q18

   

2Q17

   

1Q18

   

2Q17

   

1Q18

 
                                         

Mortgage banking revenues

 

$

92

   

$

86

   

$

87

     

7

%

   

6

%

Service charges on deposit accounts

   

107

     

106

     

105

     

1

%

   

2

%

Trust income

   

138

     

127

     

131

     

9

%

   

5

%

Brokerage services income

   

13

     

17

     

13

     

-24

%

   

-6

%

Trading account and foreign exchange gains

   

5

     

8

     

5

     

-35

%

   

13

%

Gain (loss) on bank investment securities

   

2

     

     

(9)

     

     

 

Other revenues from operations

   

100

     

117

     

127

     

-14

%

   

-21

%

Total other income

 

$

457

   

$

461

   

$

459

     

-1

%

   

 

Noninterest expense totaled $777 million in the second quarter of 2018, $751 million in the year-earlier quarter and $933 million in the first quarter of 2018.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $770 million in the recent quarter, $743 million in the year-earlier period and $927 million in 2018's first quarter. Higher costs for salaries and employee benefits were the most significant factor associated with the rise in noninterest operating expenses in the recent quarter as compared with the year-earlier quarter. The higher noninterest operating expenses in the first quarter of 2018 reflected a $135 million increase in the reserve for litigation matters and seasonally higher stock-based compensation and employee benefits expenses.

Noninterest Expense

 
                                         
                           

Change 2Q18 vs.

 

($ in millions)

 

2Q18

   

2Q17

   

1Q18

   

2Q17

   

1Q18

 
                                         

Salaries and employee benefits

 

$

419

   

$

398

   

$

463

     

5

%

   

-10

%

Equipment and net occupancy

   

73

     

74

     

75

     

-1

%

   

-2

%

Outside data processing and software

   

49

     

45

     

49

     

12

%

   

3

%

FDIC assessments

   

20

     

25

     

20

     

-23

%

   

-4

%

Advertising and marketing

   

22

     

16

     

16

     

33

%

   

34

%

Printing, postage and supplies

   

9

     

9

     

9

     

-3

%

   

-6

%

Amortization of core deposit and other intangible assets

   

6

     

8

     

7

     

-21

%

   

-4

%

Other costs of operations

   

179

     

176

     

294

     

2

%

   

-39

%

Total other expense

 

$

777

   

$

751

   

$

933

     

3

%

   

-17

%

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 52.4% in the second quarter of 2018, 52.7% in the year-earlier quarter and 64.0% in the first quarter of 2018.

Balance Sheet.  M&T had total assets of $118.4 billion at June 30, 2018, compared with $120.9 billion at June 30, 2017 and $118.6 billion at March 31, 2018. Loans and leases, net of unearned discount, were $87.8 billion at June 30, 2018 and $89.1 billion at June 30, 2017. The decline from June 30, 2017 reflects acquired residential mortgage loan repayments, partially offset by growth in commercial real estate and consumer loans. Total deposits were $89.3 billion at the recent quarter-end, compared with $93.5 billion at June 30, 2017 and $90.9 billion at March 31, 2018. Those declines reflect maturities of time deposits and lower commercial escrow deposits.

Total shareholders' equity was $15.6 billion at June 30, 2018 and $16.3 billion a year earlier, representing 13.15% and 13.47%, respectively, of total assets. Total shareholders' equity was $15.7 billion, or 13.24% of total assets at March 31, 2018. Common shareholders' equity was $14.3 billion, or $99.43 per share, at June 30, 2018, compared with $15.1 billion, or $98.66 per share, a year-earlier and $14.5 billion, or $98.60 per share, at March 31, 2018.  Tangible equity per common share was $67.29 at June 30, 2018, compared with $68.20 at June 30, 2017 and $66.99 at March 31, 2018. 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 10.52% at June 30, 2018.

In accordance with its 2017 capital plan, M&T repurchased 2,608,376 shares of its common stock during the recent quarter at an average cost per share of $182.14, for a total cost of $475 million. In the aggregate, during the first six months of 2018, M&T repurchased 6,391,658 shares of common stock under that plan at a total cost of $1.2 billion.

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 #3553997.  The conference call will be webcast live through M&T's website at http://ir.mtb.com/events.cfm. A replay of the call will be available until Sunday, July 29, by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #3553997.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mtb.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

 

2018

   

2017

   

Change

   

2018

   

2017

   

Change

 

Performance

                                               

Net income

 

$

493,160

     

381,053

     

29

%

 

$

845,770

     

729,980

     

16

%

Net income available to common shareholders

   

472,600

     

360,662

     

31

%

   

805,342

     

689,217

     

17

%

Per common share:

                                               

Basic earnings

 

$

3.26

     

2.36

     

38

%

 

$

5.49

     

4.49

     

22

%

Diluted earnings

   

3.26

     

2.35

     

39

%

   

5.48

     

4.47

     

23

%

Cash dividends

 

$

.80

     

.75

     

7

%

 

$

1.55

     

1.50

     

3

%

Common shares outstanding:

                                               

Average - diluted (1)

   

144,998

     

153,276

     

-5

%

   

146,941

     

154,108

     

-5

%

Period end (2)

   

144,261

     

152,539

     

-5

%

   

144,261

     

152,539

     

-5

%

Return on (annualized):

                                               

Average total assets

   

1.70

%

   

1.27

%

           

1.46

%

   

1.21

%

       

Average common shareholders' equity

   

13.32

%

   

9.67

%

           

11.21

%

   

9.28

%

       

Taxable-equivalent net interest income

 

$

1,014,184

     

946,936

     

7

%

 

$

1,994,510

     

1,869,195

     

7

%

Yield on average earning assets

   

4.28

%

   

3.79

%

           

4.20

%

   

3.73

%

       

Cost of interest-bearing liabilities

   

.71

%

   

.52

%

           

.68

%

   

.52

%

       

Net interest spread

   

3.57

%

   

3.27

%

           

3.52

%

   

3.21

%

       

Contribution of interest-free funds

   

.26

%

   

.18

%

           

.25

%

   

.19

%

       

Net interest margin

   

3.83

%

   

3.45

%

           

3.77

%

   

3.40

%

       

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

   

.16

%

   

.20

%

           

.17

%

   

.20

%

       

Net operating results (3)

                                               

Net operating income

 

$

497,869

     

385,974

     

29

%

 

$

855,367

     

740,009

     

16

%

Diluted net operating earnings per common share

   

3.29

     

2.38

     

38

%

   

5.54

     

4.53

     

22

%

Return on (annualized):

                                               

Average tangible assets

   

1.79

%

   

1.33

%

           

1.53

%

   

1.27

%

       

Average tangible common equity

   

19.91

%

   

14.18

%

           

16.65

%

   

13.61

%

       

Efficiency ratio

   

52.42

%

   

52.74

%

           

58.16

%

   

54.81

%

       
                                                 
   

At June 30

                             

Loan quality

 

2018

   

2017

   

Change

                         

Nonaccrual loans

 

$

819,984

     

872,374

     

-6

%

                       

Real estate and other foreclosed assets

   

98,062

     

104,424

     

-6

%

                       

Total nonperforming assets

 

$

918,046

     

976,798

     

-6

%

                       

Accruing loans past due 90 days or more (4)

 

$

223,026

     

265,461

     

-16

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

34,870

     

39,296

     

-11

%

                       

Accruing loans past due 90 days or more

   

202,394

     

235,227

     

-14

%

                       

Renegotiated loans

 

$

242,528

     

221,892

     

9

%

                       

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

 

$

47,405

     

57,498

     

-18

%

                       

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

$

606,683

     

838,476

     

-28

%

                       

Carrying amount

   

352,465

     

512,393

     

-31

%

                       

Nonaccrual loans to total net loans

   

.93

%

   

.98

%

                               

Allowance for credit losses to total loans

   

1.16

%

   

1.13

%

                               
 

(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

 

2018

   

2018

   

2017

   

2017

   

2017

 

Performance

                                       

Net income

 

$

493,160

     

352,610

     

322,403

     

355,923

     

381,053

 

Net income available to common shareholders

   

472,600

     

332,749

     

302,486

     

335,804

     

360,662

 

Per common share:

                                       

Basic earnings

 

$

3.26

     

2.24

     

2.01

     

2.22

     

2.36

 

Diluted earnings

   

3.26

     

2.23

     

2.01

     

2.21

     

2.35

 

Cash dividends

 

$

.80

     

.75

     

.75

     

.75

     

.75

 

Common shares outstanding:

                                       

Average - diluted (1)

   

144,998

     

148,905

     

150,348

     

151,691

     

153,276

 

Period end (2)

   

144,261

     

146,799

     

150,112

     

151,291

     

152,539

 

Return on (annualized):

                                       

Average total assets

   

1.70

%

   

1.22

%

   

1.06

%

   

1.18

%

   

1.27

%

Average common shareholders' equity

   

13.32

%

   

9.15

%

   

8.03

%

   

8.89

%

   

9.67

%

Taxable-equivalent net interest income

 

$

1,014,184

     

980,326

     

980,457

     

965,962

     

946,936

 

Yield on average earning assets

   

4.28

%

   

4.11

%

   

3.93

%

   

3.89

%

   

3.79

%

Cost of interest-bearing liabilities

   

.71

%

   

.64

%

   

.59

%

   

.57

%

   

.52

%

Net interest spread

   

3.57

%

   

3.47

%

   

3.34

%

   

3.32

%

   

3.27

%

Contribution of interest-free funds

   

.26

%

   

.24

%

   

.22

%

   

.21

%

   

.18

%

Net interest margin

   

3.83

%

   

3.71

%

   

3.56

%

   

3.53

%

   

3.45

%

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

   

.16

%

   

.19

%

   

.12

%

   

.11

%

   

.20

%

Net operating results (3)

                                       

Net operating income

 

$

497,869

     

357,498

     

326,664

     

360,658

     

385,974

 

Diluted net operating earnings per common share

   

3.29

     

2.26

     

2.04

     

2.24

     

2.38

 

Return on (annualized):

                                       

Average tangible assets

   

1.79

%

   

1.28

%

   

1.12

%

   

1.25

%

   

1.33

%

Average tangible common equity

   

19.91

%

   

13.51

%

   

11.77

%

   

13.03

%

   

14.18

%

Efficiency ratio

   

52.42

%

   

63.98

%

   

54.65

%

   

56.00

%

   

52.74

%

                                         
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Loan quality

 

2018

   

2018

   

2017

   

2017

   

2017

 

Nonaccrual loans

 

$

819,984

     

864,671

     

882,598

     

869,362

     

872,374

 

Real estate and other foreclosed assets

   

98,062

     

101,514

     

111,910

     

110,515

     

104,424

 

Total nonperforming assets

 

$

918,046

     

966,185

     

994,508

     

979,877

     

976,798

 

Accruing loans past due 90 days or more (4)

 

$

223,026

     

235,325

     

244,405

     

261,288

     

265,461

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

34,870

     

36,618

     

35,677

     

34,687

     

39,296

 

Accruing loans past due 90 days or more

   

202,394

     

223,611

     

235,489

     

252,072

     

235,227

 

Renegotiated loans

 

$

242,528

     

226,829

     

221,513

     

226,672

     

221,892

 

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

 

$

47,405

     

49,349

     

47,418

     

56,225

     

57,498

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

$

606,683

     

643,124

     

688,091

     

779,340

     

838,476

 

Carrying amount

   

352,465

     

378,000

     

410,015

     

466,943

     

512,393

 

Nonaccrual loans to total net loans

   

.93

%

   

.99

%

   

1.00

%

   

.99

%

   

.98

%

Allowance for credit losses to total loans

   

1.16

%

   

1.16

%

   

1.16

%

   

1.15

%

   

1.13

%

 

(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

 

2018

   

2017

   

Change

   

2018

   

2017

   

Change

 

Interest income

 

$

1,128,905

     

1,030,413

     

10

%

 

$

2,211,055

     

2,036,446

     

9

%

Interest expense

   

120,118

     

92,213

     

30

     

226,751

     

183,986

     

23

 

Net interest income

   

1,008,787

     

938,200

     

8

     

1,984,304

     

1,852,460

     

7

 

Provision for credit losses

   

35,000

     

52,000

     

-33

     

78,000

     

107,000

     

-27

 

Net interest income after provision for credit losses

   

973,787

     

886,200

     

10

     

1,906,304

     

1,745,460

     

9

 

Other income

                                               

Mortgage banking revenues

   

92,499

     

86,163

     

7

     

179,805

     

170,855

     

5

 

Service charges on deposit accounts

   

106,784

     

106,057

     

1

     

211,899

     

210,233

     

1

 

Trust income

   

137,641

     

126,797

     

9

     

269,016

     

246,812

     

9

 

Brokerage services income

   

12,629

     

16,617

     

-24

     

26,021

     

34,001

     

-23

 

Trading account and foreign exchange gains

   

5,255

     

8,084

     

-35

     

9,892

     

17,775

     

-44

 

Gain (loss) on bank investment securities

   

2,326

     

(17)

     

     

(7,105)

     

(17)

     

 

Other revenues from operations

   

100,280

     

117,115

     

-14

     

226,582

     

228,002

     

-1

 

Total other income

   

457,414

     

460,816

     

-1

     

916,110

     

907,661

     

1

 

Other expense

                                               

Salaries and employee benefits

   

418,537

     

398,054

     

5

     

881,965

     

847,795

     

4

 

Equipment and net occupancy

   

73,031

     

73,797

     

-1

     

147,828

     

148,163

     

 

Outside data processing and software

   

49,712

     

44,575

     

12

     

98,141

     

88,876

     

10

 

FDIC assessments

   

19,560

     

25,353

     

-23

     

39,840

     

54,180

     

-26

 

Advertising and marketing

   

21,768

     

16,324

     

33

     

38,016

     

32,434

     

17

 

Printing, postage and supplies

   

8,719

     

8,957

     

-3

     

18,038

     

18,665

     

-3

 

Amortization of core deposit and other 
     
intangible assets

   

6,388

     

8,113

     

-21

     

13,020

     

16,533

     

-21

 

Other costs of operations

   

178,862

     

175,462

     

2

     

473,073

     

331,841

     

43

 

Total other expense

   

776,577

     

750,635

     

3

     

1,709,921

     

1,538,487

     

11

 

Income before income taxes

   

654,624

     

596,381

     

10

     

1,112,493

     

1,114,634

     

 

Applicable income taxes

   

161,464

     

215,328

     

-25

     

266,723

     

384,654

     

-31

 

Net income

 

$

493,160

     

381,053

     

29

%

 

$

845,770

     

729,980

     

16

%

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 
   

Three months ended

   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

Dollars in thousands

 

2018

   

2018

   

2017

   

2017

   

2017

Interest income

 

$

1,128,905

     

1,082,150

     

1,074,139

     

1,057,210

     

1,030,413

Interest expense

   

120,118

     

106,633

     

102,689

     

100,076

     

92,213

Net interest income

   

1,008,787

     

975,517

     

971,450

     

957,134

     

938,200

Provision for credit losses

   

35,000

     

43,000

     

31,000

     

30,000

     

52,000

Net interest income after provision for credit losses

   

973,787

     

932,517

     

940,450

     

927,134

     

886,200

Other income

                                     

Mortgage banking revenues

   

92,499

     

87,306

     

96,235

     

96,737

     

86,163

Service charges on deposit accounts

   

106,784

     

105,115

     

107,783

     

109,356

     

106,057

Trust income

   

137,641

     

131,375

     

129,669

     

124,900

     

126,797

Brokerage services income

   

12,629

     

13,392

     

12,768

     

14,676

     

16,617

Trading account and foreign exchange gains

   

5,255

     

4,637

     

10,468

     

7,058

     

8,084

Gain (loss) on bank investment securities

   

2,326

     

(9,431)

     

21,296

     

     

(17)

Other revenues from operations

   

100,280

     

126,302

     

105,834

     

106,702

     

117,115

Total other income

   

457,414

     

458,696

     

484,053

     

459,429

     

460,816

Other expense

                                     

Salaries and employee benefits

   

418,537

     

463,428

     

402,394

     

398,605

     

398,054

Equipment and net occupancy

   

73,031

     

74,797

     

71,363

     

75,558

     

73,797

Outside data processing and software

   

49,712

     

48,429

     

50,033

     

45,761

     

44,575

FDIC assessments

   

19,560

     

20,280

     

23,722

     

23,969

     

25,353

Advertising and marketing

   

21,768

     

16,248

     

19,366

     

17,403

     

16,324

Printing, postage and supplies

   

8,719

     

9,319

     

8,563

     

8,732

     

8,957

Amortization of core deposit and other 
     intangible assets

   

6,388

     

6,632

     

7,025

     

7,808

     

8,113

Other costs of operations

   

178,862

     

294,211

     

213,347

     

228,189

     

175,462

Total other expense

   

776,577

     

933,344

     

795,813

     

806,025

     

750,635

Income before income taxes

   

654,624

     

457,869

     

628,690

     

580,538

     

596,381

Applicable income taxes

   

161,464

     

105,259

     

306,287

     

224,615

     

215,328

Net income

 

$

493,160

     

352,610

     

322,403

     

355,923

     

381,053

 

 

Condensed Consolidated Balance Sheet

 
   

June 30

           

Dollars in thousands

 

2018

   

2017

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,367,594

     

1,344,478

     

2

 

%

Interest-bearing deposits at banks

   

6,669,985

     

5,023,829

     

33

   

Federal funds sold

   

1,500

     

1,000

     

50

   

Trading account

   

148,303

     

174,646

     

-15

   

Investment securities

   

13,283,002

     

15,816,060

     

-16

   

Loans and leases:

                         

Commercial, financial, etc.

   

21,894,857

     

22,191,051

     

-1

   

Real estate - commercial

   

34,137,937

     

33,348,991

     

2

   

Real estate - consumer

   

18,310,712

     

20,960,171

     

-13

   

Consumer

   

13,453,944

     

12,580,342

     

7

   

Total loans and leases, net of unearned discount

   

87,797,450

     

89,080,555

     

-1

   

Less: allowance for credit losses

   

1,019,248

     

1,008,225

     

1

   

Net loans and leases

   

86,778,202

     

88,072,330

     

-1

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

58,569

     

86,422

     

-32

   

Other assets

   

5,525,786

     

5,784,690

     

-4

   

Total assets

 

$

118,426,053

     

120,896,567

     

-2

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

32,086,191

     

32,366,426

     

-1

 

%

Interest-bearing deposits

   

56,924,970

     

60,978,895

     

-7

   

Deposits at Cayman Islands office

   

261,427

     

195,617

     

34

   

Total deposits

   

89,272,588

     

93,540,938

     

-5

   

Short-term borrowings

   

3,239,416

     

1,695,453

     

91

   

Accrued interest and other liabilities

   

1,953,848

     

1,727,059

     

13

   

Long-term borrowings

   

8,382,316

     

7,649,580

     

10

   

Total liabilities

   

102,848,168

     

104,613,030

     

-2

   

Shareholders' equity:

                         

Preferred

   

1,231,500

     

1,231,500

     

   

Common

   

14,346,385

     

15,052,037

     

-5

   

Total shareholders' equity

   

15,577,885

     

16,283,537

     

-4

   

Total liabilities and shareholders' equity

 

$

118,426,053

     

120,896,567

     

-2

 

%

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

     
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

Dollars in thousands

 

2018

   

2018

   

2017

   

2017

   

2017

ASSETS

                                     

Cash and due from banks

 

$

1,367,594

     

1,291,664

     

1,420,888

     

1,368,252

     

1,344,478

Interest-bearing deposits at banks

   

6,669,985

     

6,135,434

     

5,078,903

     

6,306,484

     

5,023,829

Federal funds sold

   

1,500

     

1,000

     

     

     

1,000

Trading account

   

148,303

     

141,134

     

132,909

     

170,516

     

174,646

Investment securities

   

13,283,002

     

14,066,564

     

14,664,525

     

15,073,926

     

15,816,060

Loans and leases:

                                     

Commercial, financial, etc.

   

21,894,857

     

21,697,522

     

21,742,651

     

21,743,251

     

22,191,051

Real estate - commercial

   

34,137,937

     

33,753,506

     

33,366,373

     

32,914,288

     

33,348,991

Real estate - consumer

   

18,310,712

     

18,960,946

     

19,613,344

     

20,265,162

     

20,960,171

Consumer

   

13,453,944

     

13,298,775

     

13,266,615

     

13,002,433

     

12,580,342

Total loans and leases, net of unearned discount

   

87,797,450

     

87,710,749

     

87,988,983

     

87,925,134

     

89,080,555

Less: allowance for credit losses

   

1,019,248

     

1,019,671

     

1,017,198

     

1,013,326

     

1,008,225

Net loans and leases

   

86,778,202

     

86,691,078

     

86,971,785

     

86,911,808

     

88,072,330

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

Core deposit and other intangible assets

   

58,569

     

64,957

     

71,589

     

78,614

     

86,422

Other assets

   

5,525,786

     

5,637,881

     

5,659,776

     

5,899,092

     

5,784,690

Total assets

 

$

118,426,053

     

118,622,824

     

118,593,487

     

120,401,804

     

120,896,567

                                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                                     

Noninterest-bearing deposits

 

$

32,086,191

     

31,817,516

     

33,975,180

     

33,111,246

     

32,366,426

Interest-bearing deposits

   

56,924,970

     

58,851,050

     

58,278,970

     

60,170,133

     

60,978,895

Deposits at Cayman Islands office

   

261,427

     

278,064

     

177,996

     

232,014

     

195,617

Total deposits

   

89,272,588

     

90,946,630

     

92,432,146

     

93,513,393

     

93,540,938

Short-term borrowings

   

3,239,416

     

1,626,129

     

175,099

     

200,768

     

1,695,453

Accrued interest and other liabilities

   

1,953,848

     

1,749,320

     

1,593,993

     

1,791,946

     

1,727,059

Long-term borrowings

   

8,382,316

     

8,591,051

     

8,141,430

     

8,577,645

     

7,649,580

Total liabilities

   

102,848,168

     

102,913,130

     

102,342,668

     

104,083,752

     

104,613,030

Shareholders' equity:

                                     

Preferred

   

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

Common

   

14,346,385

     

14,478,194

     

15,019,319

     

15,086,552

     

15,052,037

Total shareholders' equity

   

15,577,885

     

15,709,694

     

16,250,819

     

16,318,052

     

16,283,537

Total liabilities and shareholders' equity

 

$

118,426,053

     

118,622,824

     

118,593,487

     

120,401,804

     

120,896,567

 

 

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, 2018 from

       

June 30,

     

Change

 

Dollars in millions

   

2018

     

2017

     

2018

     

June 30,

     

March 31,

       

2018

     

2017

     

in

 
     

Balance

   

Rate

     

Balance

   

Rate

     

Balance

   

Rate

     

2017

     

2018

       

Balance

   

Rate

     

Balance

   

Rate

     

balance

 
                                                                                                 

ASSETS

                                                                                               

Interest-bearing deposits at banks

 

$

4,890

   

1.79

%

   

4,741

   

1.03

%

   

4,941

   

1.53

%

   

3

%

   

-1

%

   

$

4,916

   

1.66

%

   

5,443

   

.90

%

   

-10

%

Federal funds sold

   

1

   

2.23

     

1

   

1.44

     

3

   

1.85

     

     

       

2

   

1.91

     

   

     

 

Trading account

   

57

   

2.92

     

64

   

1.50

     

54

   

3.00

     

-11

     

6

       

55

   

2.96

     

62

   

1.84

     

-10

 

Investment securities

   

13,856

   

2.38

     

15,913

   

2.36

     

14,467

   

2.33

     

-13

     

-4

       

14,164

   

2.35

     

15,956

   

2.40

     

-11

 

Loans and leases, net of unearned discount

                                                                                               

Commercial, financial, etc.

   

21,709

   

4.49

     

22,350

   

3.84

     

21,547

   

4.28

     

-3

     

1

       

21,628

   

4.39

     

22,320

   

3.75

     

-3

 

Real estate - commercial

   

33,687

   

4.95

     

33,214

   

4.30

     

33,652

   

4.73

     

1

     

       

33,670

   

4.84

     

33,195

   

4.24

     

1

 

Real estate - consumer

   

18,644

   

4.15

     

21,318

   

3.94

     

19,274

   

4.06

     

-13

     

-3

       

18,957

   

4.11

     

21,746

   

3.93

     

-13

 

Consumer

   

13,366

   

5.14

     

12,386

   

4.78

     

13,293

   

5.00

     

8

     

1

       

13,330

   

5.07

     

12,270

   

4.73

     

9

 

Total loans and leases, net

   

87,406

   

4.73

     

89,268

   

4.19

     

87,766

   

4.55

     

-2

     

       

87,585

   

4.64

     

89,531

   

4.14

     

-2

 

Total earning assets

   

106,210

   

4.28

     

109,987

   

3.79

     

107,231

   

4.11

     

-3

     

-1

       

106,722

   

4.20

     

110,992

   

3.73

     

-4

 

Goodwill

   

4,593

           

4,593

           

4,593

           

     

       

4,593

           

4,593

           

 

Core deposit and other intangible assets

   

62

           

90

           

68

           

-32

     

-10

       

65

           

94

           

-31

 

Other assets

   

5,548

           

6,095

           

5,792

           

-9

     

-4

       

5,641

           

6,186

           

-9

 

Total assets

 

$

116,413

           

120,765

           

117,684

           

-4

%

   

-1

%

   

$

117,021

           

121,865

           

-4

%

                                                                                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                                               

Interest-bearing deposits

                                                                                               

Savings and interest-checking deposits

 

$

52,547

   

.37

     

53,611

   

.23

     

52,504

   

.31

     

-2

%

   

%

   

$

52,526

   

.34

     

53,437

   

.21

     

-2

%

Time deposits

   

5,997

   

.76

     

8,559

   

.76

     

6,320

   

.70

     

-30

     

-5

       

6,158

   

.73

     

9,057

   

.79

     

-32

 

Deposits at Cayman Islands office

   

225

   

.97

     

163

   

.69

     

248

   

.62

     

38

     

-9

       

236

   

.79

     

177

   

.62

     

33

 

Total interest-bearing deposits

   

58,769

   

.41

     

62,333

   

.30

     

59,072

   

.36

     

-6

     

-1

       

58,920

   

.38

     

62,671

   

.30

     

-6

 

Short-term borrowings

   

353

   

1.57

     

212

   

.71

     

280

   

1.28

     

66

     

26

       

317

   

1.44

     

199

   

.60

     

60

 

Long-term borrowings

   

8,480

   

2.75

     

8,292

   

2.16

     

8,606

   

2.54

     

2

     

-1

       

8,543

   

2.64

     

8,357

   

2.20

     

2

 

Total interest-bearing liabilities

   

67,602

   

.71

     

70,837

   

.52

     

67,958

   

.64

     

-5

     

-1

       

67,780

   

.68

     

71,227

   

.52

     

-5

 

Noninterest-bearing deposits

   

31,426

           

31,868

           

32,047

           

-1

     

-2

       

31,734

           

32,574

           

-3

 

Other liabilities

   

1,852

           

1,775

           

1,620

           

4

     

14

       

1,713

           

1,760

           

-3

 

Total liabilities

   

100,880

           

104,480

           

101,625

           

-3

     

-1

       

101,227

           

105,561

           

-4

 

Shareholders' equity

   

15,533

           

16,285

           

16,059

           

-5

     

-3

       

15,794

           

16,304

           

-3

 

Total liabilities and shareholders' equity

 

$

116,413

           

120,765

           

117,684

           

-4

%

   

-1

%

   

$

117,021

           

121,865

           

-4

%

                                                                                                 

Net interest spread

         

3.57

           

3.27

           

3.47

                             

3.52

           

3.21

         

Contribution of interest-free funds

         

.26

           

.18

           

.24

                             

.25

           

.19

         

Net interest margin

         

3.83

%

         

3.45

%

         

3.71

%

                           

3.77

%

         

3.40

%

       

 

 

Reconciliation of GAAP to Non-GAAP Measures

 
   

Three months ended

   

Six months ended

 
   

June 30

   

June 30

 
   

2018

   

2017

   

2018

   

2017

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

493,160

     

381,053

     

845,770

     

729,980

 

Amortization of core deposit and other intangible assets (1)

   

4,709

     

4,921

     

9,597

     

10,029

 

Net operating income

 

$

497,869

     

385,974

     

855,367

     

740,009

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.26

     

2.35

     

5.48

     

4.47

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.06

     

.06

 

Diluted net operating earnings per common share

 

$

3.29

     

2.38

     

5.54

     

4.53

 
                                 

Other expense

                               

Other expense

 

$

776,577

     

750,635

     

1,709,921

     

1,538,487

 

Amortization of core deposit and other intangible assets

   

(6,388)

     

(8,113)

     

(13,020)

     

(16,533)

 

Noninterest operating expense

 

$

770,189

     

742,522

     

1,696,901

     

1,521,954

 
                                 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

770,189

     

742,522

     

1,696,901

     

1,521,954

 

Taxable-equivalent net interest income

   

1,014,184

     

946,936

     

1,994,510

     

1,869,195

 

Other income

   

457,414

     

460,816

     

916,110

     

907,661

 

Less:  Gain (loss) on bank investment securities

   

2,326

     

(17)

     

(7,105)

     

(17)

 

Denominator

 

$

1,469,272

     

1,407,769

     

2,917,725

     

2,776,873

 

Efficiency ratio

   

52.42

%

   

52.74

%

   

58.16

%

   

54.81

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

116,413

     

120,765

     

117,021

     

121,865

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(62)

     

(90)

     

(65)

     

(94)

 

Deferred taxes

   

17

     

35

     

17

     

37

 

Average tangible assets

 

$

111,775

     

116,117

     

112,380

     

117,215

 

Average common equity

                               

Average total equity

 

$

15,533

     

16,285

     

15,794

     

16,304

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,301

     

15,053

     

14,562

     

15,072

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(62)

     

(90)

     

(65)

     

(94)

 

Deferred taxes

   

17

     

35

     

17

     

37

 

Average tangible common equity

 

$

9,663

     

10,405

     

9,921

     

10,442

 
                                 

At end of quarter

                               

Total assets

                               

Total assets

 

$

118,426

     

120,897

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(59)

     

(86)

                 

Deferred taxes

   

16

     

33

                 

Total tangible assets

 

$

113,790

     

116,251

                 

Total common equity

                               

Total equity

 

$

15,578

     

16,284

                 

Preferred stock

   

(1,232)

     

(1,232)

                 

Undeclared dividends - cumulative preferred stock

   

(3)

     

(3)

                 

Common equity, net of undeclared cumulative preferred dividends

   

14,343

     

15,049

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(59)

     

(86)

                 

Deferred taxes

   

16

     

33

                 

Total tangible common equity

 

$

9,707

     

10,403

                 
 

(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,

 
   

2018

   

2018

   

2017

   

2017

   

2017

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

493,160

     

352,610

     

322,403

     

355,923

     

381,053

 

Amortization of core deposit and other intangible assets (1)

   

4,709

     

4,888

     

4,261

     

4,735

     

4,921

 

Net operating income

 

$

497,869

     

357,498

     

326,664

     

360,658

     

385,974

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.26

     

2.23

     

2.01

     

2.21

     

2.35

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.03

     

.03

     

.03

 

Diluted net operating earnings per common share

 

$

3.29

     

2.26

     

2.04

     

2.24

     

2.38

 
                                         

Other expense

                                       

Other expense

 

$

776,577

     

933,344

     

795,813

     

806,025

     

750,635

 

Amortization of core deposit and other intangible assets

   

(6,388)

     

(6,632)

     

(7,025)

     

(7,808)

     

(8,113)

 

Noninterest operating expense

 

$

770,189

     

926,712

     

788,788

     

798,217

     

742,522

 
                                         

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

770,189

     

926,712

     

788,788

     

798,217

     

742,522

 

Taxable-equivalent net interest income

   

1,014,184

     

980,326

     

980,457

     

965,962

     

946,936

 

Other income

   

457,414

     

458,696

     

484,053

     

459,429

     

460,816

 

Less:  Gain (loss) on bank investment securities

   

2,326

     

(9,431)

     

21,296

     

     

(17)

 

Denominator

 

$

1,469,272

     

1,448,453

     

1,443,214

     

1,425,391

     

1,407,769

 

Efficiency ratio

   

52.42

%

   

63.98

%

   

54.65

%

   

56.00

%

   

52.74

%

                                         

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

116,413

     

117,684

     

120,226

     

119,515

     

120,765

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(62)

     

(68)

     

(75)

     

(82)

     

(90)

 

Deferred taxes

   

17

     

18

     

26

     

32

     

35

 

Average tangible assets

 

$

111,775

     

113,041

     

115,584

     

114,872

     

116,117

 
                                         

Average common equity

                                       

Average total equity

 

$

15,533

     

16,059

     

16,271

     

16,301

     

16,285

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,301

     

14,827

     

15,039

     

15,069

     

15,053

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(62)

     

(68)

     

(75)

     

(82)

     

(90)

 

Deferred taxes

   

17

     

18

     

26

     

32

     

35

 

Average tangible common equity

 

$

9,663

     

10,184

     

10,397

     

10,426

     

10,405

 
                                         

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

118,426

     

118,623

     

118,593

     

120,402

     

120,897

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(59)

     

(65)

     

(72)

     

(79)

     

(86)

 

Deferred taxes

   

16

     

17

     

19

     

31

     

33

 

Total tangible assets

 

$

113,790

     

113,982

     

113,947

     

115,761

     

116,251

 
                                         

Total common equity

                                       

Total equity

 

$

15,578

     

15,710

     

16,251

     

16,318

     

16,284

 

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

   

14,343

     

14,475

     

15,016

     

15,083

     

15,049

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(59)

     

(65)

     

(72)

     

(79)

     

(86)

 

Deferred taxes

   

16

     

17

     

19

     

31

     

33

 

Total tangible common equity

 

$

9,707

     

9,834

     

10,370

     

10,442

     

10,403

 
 

(1)       After any related tax effect.

 

 

 

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