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M&T Bank Corporation Announces 2018 Fourth Quarter And Full-Year Results

 

BUFFALO, N.Y., Jan. 17, 2019 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2018.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.76 in the fourth quarter of 2018, 87% higher than $2.01 in the year-earlier quarter and 7% above $3.53 in the third quarter of 2018.  GAAP-basis net income in the recent quarter was $546 million, up from $322 million in the fourth quarter of 2017 and $526 million in the third 2018 quarter. GAAP-basis net income for the fourth quarter of 2018 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.84% and 14.80%, respectively, improved from 1.06% and 8.03%, respectively, in the corresponding 2017 period and 1.80% and 14.08%, respectively, in the third quarter of 2018. In December 2018, M&T received approval from the Internal Revenue Service to change its tax return treatment for certain loan fees retroactive to 2017. Given the reduction of the Federal income tax rate in 2018, that change in treatment resulted in a $15 million reduction of income tax expense in the recent quarter. The impact of that benefit on net income was offset by a $20 million contribution to The M&T Charitable Foundation in the fourth quarter that, after applicable tax effect, reduced net income by $15 million. As compared with 2017, income tax expense in all 2018 periods reflects the reduction of the corporate Federal income tax rate from 35% to 21%. M&T's results in 2017's final quarter were reduced by $98 million, or $.65 of diluted earnings per common share, predominantly reflecting the impact of that lower tax rate on the carrying values of M&T's net deferred tax assets and other items.

Commenting on M&T's financial performance, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "We are extremely pleased with M&T's performance this past quarter and for 2018 as a whole.  Our results reflect a continuation of many positive factors including growth in interest and noninterest revenues, subdued credit costs and well-controlled expenses. Average balances of loans to commercial customers rose in the recent quarter and year-end commercial balances grew $2.2 billion from the end of the third quarter. We believe M&T is well positioned as we enter 2019."

Earnings Highlights

 
                                         
                           

Change 4Q18 vs.

 

($ in millions, except per share data)

 

4Q18

   

4Q17

   

3Q18

   

4Q17

   

3Q18

 
                                         

Net income

 

$

546

   

$

322

   

$

526

     

69

%

   

4

%

Net income available to common shareholders  ̶  diluted

 

$

525

   

$

302

   

$

505

     

74

%

   

4

%

Diluted earnings per common share

 

$

3.76

   

$

2.01

   

$

3.53

     

87

%

   

7

%

Annualized return on average assets

   

1.84

%

   

1.06

%

   

1.80

%

               

Annualized return on average common equity

   

14.80

%

   

8.03

%

   

14.08

%

               
                                         

 

Diluted earnings per common share were $12.74 for the year ended December 31, 2018, 46% higher than $8.70 in 2017. GAAP-basis net income for 2018 aggregated $1.92 billion, up 36% from $1.41 billion in 2017. Expressed as a rate of return on average assets and average common shareholders' equity, GAAP-basis net income for 2018 was 1.64% and 12.82%, respectively, improved from 1.17% and 8.87%, respectively, in 2017.

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 $3.79 in the recent quarter, compared with $2.04 in the fourth quarter of 2017 and $3.56 in the third quarter of 2018.  Net operating income for the fourth quarter of 2018 was $550 million, compared with $327 million in the year-earlier period and $531 million in 2018's third quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.93% and 22.16%, respectively, compared with 1.12% and 11.77%, respectively, in the corresponding 2017 quarter and 1.89% and 21.00%, respectively, in the third quarter of 2018.

For the year ended December 31, 2018, diluted net operating earnings per common share were $12.86, compared with $8.82 in 2017. Net operating income in 2018 increased 36% to $1.94 billion from $1.43 billion in 2017. Net operating income expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.72% and 19.09%, respectively, in 2018, compared with 1.23% and 13.00%, respectively, in 2017.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $1.06 billion in 2018's fourth quarter, improved 9% from $980 million in the year-earlier quarter and 3% above $1.03 billion in the third quarter of 2018. That growth predominantly resulted from a widening of the net interest margin to 3.92% in the recent quarter from 3.56% in the fourth quarter of 2017 and 3.88% in the third quarter of 2018 that reflects generally higher interest rates. Taxable-equivalent net interest income for the full year of 2018 increased 7% to $4.09 billion from $3.82 billion in 2017. The net interest margin was 3.83% in 2018 and 3.47% in 2017.

 

                                         

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 4Q18 vs.

 

($ in millions)

 

4Q18

   

4Q17

   

3Q18

   

4Q17

   

3Q18

 
                                         

Average earning assets

 

$

107,785

   

$

109,412

   

$

105,835

     

-1

%

   

2

%

Net interest income  ̶  taxable-equivalent

 

$

1,065

   

$

980

   

$

1,035

     

9

%

   

3

%

Net interest margin

   

3.92

%

   

3.56

%

   

3.88

%

               

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $38 million in the fourth quarter of 2018, compared with $31 million in the year-earlier quarter and $16 million in 2018's third quarter. Net loan charge-offs were $38 million during the recent quarter, compared with $27 million in the fourth quarter of 2017 and $16 million in the third quarter of 2018. The lower net charge-offs in 2018's third quarter reflected significantly higher recoveries of previously charged-off loans.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .17% and .12% in the final quarters of 2018 and 2017, respectively, and .07% in the third quarter of 2018. The provision for credit losses was $132 million for the year ended December 31, 2018, compared with $168 million in 2017. Net loan charge-offs during 2018 and 2017 aggregated $130 million and $140 million, respectively, or .15% and .16%, respectively, of average loans outstanding.

Loans classified as nonaccrual totaled $894 million or 1.01% of total loans outstanding at December 31, 2018, compared with $883 million or 1.00% a year earlier and $871 million or 1.00% at September 30, 2018. Assets taken in foreclosure of defaulted loans were $78 million at December 31, 2018, improved from $112 million at December 31, 2017 and $87 million at September 30, 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 at each of December 31, 2018, December 31, 2017 and September 30, 2018. As a percentage of loans outstanding, the allowance was 1.15% and 1.16% at December 31, 2018 and 2017, respectively, and 1.18% at September 30, 2018.

Asset Quality Metrics

 
                                         
                           

Change 4Q18 vs.

 

($ in millions)

 

4Q18

   

4Q17

   

3Q18

   

4Q17

   

3Q18

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

894

   

$

883

   

$

871

     

1

%

   

3

%

Real estate and other foreclosed assets

 

$

78

   

$

112

   

$

87

     

-30

%

   

-10

%

Total nonperforming assets

 

$

972

   

$

995

   

$

958

     

-2

%

   

1

%

Accruing loans past due 90 days or more (1)

 

$

223

   

$

244

   

$

254

     

-9

%

   

-13

%

Nonaccrual loans as % of loans outstanding

   

1.01

%

   

1.00

%

   

1.00

%

               
                                         

Allowance for credit losses

 

$

1,019

   

$

1,017

   

$

1,019

     

     

 

Allowance for credit losses as % of loans outstanding

   

1.15

%

   

1.16

%

   

1.18

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

38

   

$

31

   

$

16

     

23

%

   

138

%

Net charge-offs

 

$

38

   

$

27

   

$

16

     

40

%

   

141

%

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

   

.17

%

   

.12

%

   

.07

%

               
                                           

(1)

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

Noninterest Income and Expense.  Noninterest income totaled $481 million in the recent quarter, little changed from $484 million in the fourth quarter of 2017, but up from $459 million in the third quarter of 2018. As compared with the fourth quarter of 2017, higher credit-related fees, trading account and foreign exchange gains, and trust income in the recent quarter were offset by a decline in residential mortgage banking revenues and lower gains on investment securities. Higher trading account and foreign exchange gains, valuation gains on equity securities and increased commercial mortgage banking revenues in the recent quarter contributed to the improvement from the third quarter of 2018.

 

Noninterest Income

 
                                         
                           

Change 4Q18 vs.

 

($ in millions)

 

4Q18

   

4Q17

   

3Q18

   

4Q17

   

3Q18

 
                                         

Mortgage banking revenues

 

$

92

   

$

96

   

$

88

     

-4

%

   

4

%

Service charges on deposit accounts

   

109

     

108

     

109

     

1

%

   

 

Trust income

   

135

     

130

     

133

     

4

%

   

1

%

Brokerage services income

   

13

     

13

     

12

     

     

4

%

Trading account and foreign exchange gains

   

17

     

10

     

6

     

58

%

   

173

%

Gain (loss) on bank investment securities

   

4

     

21

     

(3)

     

-80

%

   

 

Other revenues from operations

   

111

     

106

     

114

     

5

%

   

-2

%

Total other income

 

$

481

   

$

484

   

$

459

     

-1

%

   

5

%

Noninterest income aggregated $1.86 billion in 2018 and $1.85 billion in 2017. Higher trust income in 2018 was largely offset by the impact of investment securities gains in 2017.

Noninterest expense aggregated $802 million in the fourth quarter of 2018, $796 million in the year-earlier quarter and $776 million in the third 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 $797 million in the recent quarter, $789 million in the fourth quarter of 2017 and $770 million in the third quarter of 2018. Higher salaries and employee benefits expenses in the recent quarter were largely offset by lower charitable contributions and FDIC assessments as compared with the fourth quarter of 2017. The higher level of noninterest expense in the final 2018 quarter as compared with the third quarter of 2018 was attributable to increased charitable contributions and costs for professional services and salaries and employee benefits, that were partially offset by lower FDIC assessments.

 

Noninterest Expense

 
                                         
                           

Change 4Q18 vs.

 

($ in millions)

 

4Q18

   

4Q17

   

3Q18

   

4Q17

   

3Q18

 
                                         

Salaries and employee benefits

 

$

439

   

$

402

   

$

431

     

9

%

   

2

%

Equipment and net occupancy

   

74

     

71

     

77

     

3

%

   

-5

%

Outside data processing and software

   

50

     

50

     

51

     

     

-1

%

FDIC assessments

   

10

     

24

     

19

     

-59

%

   

-48

%

Advertising and marketing

   

26

     

19

     

22

     

34

%

   

19

%

Printing, postage and supplies

   

9

     

9

     

9

     

2

%

   

-1

%

Amortization of core deposit and other intangible assets

   

5

     

7

     

6

     

-24

%

   

-13

%

Other costs of operations

   

189

     

214

     

161

     

-11

%

   

18

%

Total other expense

 

$

802

   

$

796

   

$

776

     

1

%

   

3

%

                                         

For the year ended December 31, 2018, noninterest expense aggregated $3.29 billion, compared with $3.14 billion in 2017. Noninterest operating expenses were $3.26 billion and $3.11 billion in 2018 and 2017, respectively. The higher level of such expenses in 2018 resulted largely from increased costs for salaries and employee benefits, professional services and legal-related matters.

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 51.7% in the fourth quarter of 2018, 54.7% in the corresponding 2017 quarter and 51.4% in the third quarter of 2018. The efficiency ratio for the full year 2018 was 54.8%, improved from 55.1% in 2017.

Balance Sheet.  M&T had total assets of $120.1 billion at December 31, 2018, compared with $118.6 billion and $116.8 billion at December 31, 2017 and September 30, 2018, respectively. Loans and leases, net of unearned discount, were $88.5 billion at December 31, 2018, $88.0 billion at December 31, 2017 and $86.7 billion at September 30, 2018. Contributing to the higher outstanding balances of loans and leases at the recent quarter-end as compared with September 30, 2018 were growth in commercial loans and commercial real estate loans that was partially offset by acquired residential mortgage loan repayments. Total deposits were $90.2 billion at the recent year-end, compared with $92.4 billion at December 31, 2017 and $89.1 billion at September 30, 2018.

Total shareholders' equity was $15.5 billion at December 31, 2018 and $16.3 billion a year earlier, representing 12.87% and 13.70%, respectively, of total assets. Total shareholders' equity was $15.4 billion, or 13.21% of total assets at September 30, 2018. Common shareholders' equity was $14.2 billion, or $102.69 per share, at December 31, 2018, compared with $15.0 billion, or $100.03 per share, a year-earlier and $14.2 billion, or $100.38 per share, at September 30, 2018.  Tangible equity per common share was $69.28 at December 31, 2018, compared with $69.08 at December 31, 2017 and $67.64 at September 30, 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 10.13% at December 31, 2018.

In accordance with its 2018 capital plan, M&T repurchased 3,060,000 shares of its common stock during the recent quarter at an average cost per share of $163.34, for a total cost of $500 million. In the aggregate, during the 2018, M&T repurchased 12,295,817 shares of common stock at a total cost of $2.2 billion.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth 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 #8982419.  The conference call will be webcast live through M&T's website at https://ir.mtb.com/events.cfm. A replay of the call will be available through Thursday, January 24, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #8982419.  The event will also be archived and available by 3:00 p.m. today on M&T's website at https://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

           

Year ended

         
   

December 31

           

December 31

         

Amounts in thousands, except per share

 

2018

   

2017

   

Change

   

2018

   

2017

   

Change

 

Performance

                                               

Net income

 

$

546,219

     

322,403

     

69

%

 

$

1,918,080

     

1,408,306

     

36

%

Net income available to common shareholders

   

525,328

     

302,486

     

74

%

   

1,836,035

     

1,327,517

     

38

%

Per common share:

                                               

Basic earnings

 

$

3.76

     

2.01

     

87

%

 

$

12.75

     

8.72

     

46

%

Diluted earnings

   

3.76

     

2.01

     

87

%

   

12.74

     

8.70

     

46

%

Cash dividends

 

$

1.00

     

.75

     

33

%

 

$

3.55

     

3.00

     

18

%

Common shares outstanding:

                                               

Average - diluted (1)

   

139,838

     

150,348

     

-7

%

   

144,151

     

152,551

     

-6

%

Period end (2)

   

138,534

     

150,112

     

-8

%

   

138,534

     

150,112

     

-8

%

Return on (annualized):

                                               

Average total assets

   

1.84

%

   

1.06

%

           

1.64

%

   

1.17

%

       

Average common shareholders' equity

   

14.80

%

   

8.03

%

           

12.82

%

   

8.87

%

       

Taxable-equivalent net interest income

 

$

1,064,918

     

980,457

     

9

%

 

$

4,094,199

     

3,815,614

     

7

%

Yield on average earning assets

   

4.51

%

   

3.93

%

           

4.33

%

   

3.82

%

       

Cost of interest-bearing liabilities

   

.94

%

   

.59

%

           

.78

%

   

.55

%

       

Net interest spread

   

3.57

%

   

3.34

%

           

3.55

%

   

3.27

%

       

Contribution of interest-free funds

   

.35

%

   

.22

%

           

.28

%

   

.20

%

       

Net interest margin

   

3.92

%

   

3.56

%

           

3.83

%

   

3.47

%

       

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

   

.17

%

   

.12

%

           

.15

%

   

.16

%

       

Net operating results (3)

                                               

Net operating income

 

$

550,169

     

326,664

     

68

%

 

$

1,936,155

     

1,427,331

     

36

%

Diluted net operating earnings per common share

   

3.79

     

2.04

     

86

%

   

12.86

     

8.82

     

46

%

Return on (annualized):

                                               

Average tangible assets

   

1.93

%

   

1.12

%

           

1.72

%

   

1.23

%

       

Average tangible common equity

   

22.16

%

   

11.77

%

           

19.09

%

   

13.00

%

       

Efficiency ratio

   

51.70

%

   

54.65

%

           

54.79

%

   

55.07

%

       
                                                 
   

At December 31

                             

Loan quality

 

2018

   

2017

   

Change

                         

Nonaccrual loans

 

$

893,608

     

882,598

     

1

%

                       

Real estate and other foreclosed assets

   

78,375

     

111,910

     

-30

%

                       

Total nonperforming assets

 

$

971,983

     

994,508

     

-2

%

                       

Accruing loans past due 90 days or more (4)

 

$

222,527

     

244,405

     

-9

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

34,667

     

35,677

     

-3

%

                       

Accruing loans past due 90 days or more

   

192,443

     

235,489

     

-18

%

                       

Renegotiated loans

 

$

245,367

     

221,513

     

11

%

                       

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

 

$

39,750

     

47,418

     

-16

%

                       

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

$

529,520

     

688,091

     

-23

%

                       

Carrying amount

   

303,305

     

410,015

     

-26

%

                       

Nonaccrual loans to total net loans

   

1.01

%

   

1.00

%

                               

Allowance for credit losses to total loans

   

1.15

%

   

1.16

%

                               
                                                   

(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

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Amounts in thousands, except per share

 

2018

   

2018

   

2018

   

2018

   

2017

 

Performance

                                       

Net income

 

$

546,219

     

526,091

     

493,160

     

352,610

     

322,403

 

Net income available to common shareholders

   

525,328

     

505,365

     

472,600

     

332,749

     

302,486

 

Per common share:

                                       

Basic earnings

 

$

3.76

     

3.54

     

3.26

     

2.24

     

2.01

 

Diluted earnings

   

3.76

     

3.53

     

3.26

     

2.23

     

2.01

 

Cash dividends

 

$

1.00

     

1.00

     

.80

     

.75

     

.75

 

Common shares outstanding:

                                       

Average - diluted (1)

   

139,838

     

142,976

     

144,998

     

148,905

     

150,348

 

Period end (2)

   

138,534

     

141,479

     

144,261

     

146,799

     

150,112

 

Return on (annualized):

                                       

Average total assets

   

1.84

%

   

1.80

%

   

1.70

%

   

1.22

%

   

1.06

%

Average common shareholders' equity

   

14.80

%

   

14.08

%

   

13.32

%

   

9.15

%

   

8.03

%

Taxable-equivalent net interest income

 

$

1,064,918

     

1,034,771

     

1,014,184

     

980,326

     

980,457

 

Yield on average earning assets

   

4.51

%

   

4.40

%

   

4.28

%

   

4.11

%

   

3.93

%

Cost of interest-bearing liabilities

   

.94

%

   

.82

%

   

.71

%

   

.64

%

   

.59

%

Net interest spread

   

3.57

%

   

3.58

%

   

3.57

%

   

3.47

%

   

3.34

%

Contribution of interest-free funds

   

.35

%

   

.30

%

   

.26

%

   

.24

%

   

.22

%

Net interest margin

   

3.92

%

   

3.88

%

   

3.83

%

   

3.71

%

   

3.56

%

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

   

.17

%

   

.07

%

   

.16

%

   

.19

%

   

.12

%

Net operating results (3)

                                       

Net operating income

 

$

550,169

     

530,619

     

497,869

     

357,498

     

326,664

 

Diluted net operating earnings per common share

   

3.79

     

3.56

     

3.29

     

2.26

     

2.04

 

Return on (annualized):

                                       

Average tangible assets

   

1.93

%

   

1.89

%

   

1.79

%

   

1.28

%

   

1.12

%

Average tangible common equity

   

22.16

%

   

21.00

%

   

19.91

%

   

13.51

%

   

11.77

%

Efficiency ratio

   

51.70

%

   

51.41

%

   

52.42

%

   

63.98

%

   

54.65

%

                                         
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Loan quality

 

2018

   

2018

   

2018

   

2018

   

2017

 

Nonaccrual loans

 

$

893,608

     

870,832

     

819,984

     

864,671

     

882,598

 

Real estate and other foreclosed assets

   

78,375

     

87,333

     

98,062

     

101,514

     

111,910

 

Total nonperforming assets

 

$

971,983

     

958,165

     

918,046

     

966,185

     

994,508

 

Accruing loans past due 90 days or more (4)

 

$

222,527

     

254,360

     

223,026

     

235,325

     

244,405

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

34,667

     

33,570

     

34,870

     

36,618

     

35,677

 

Accruing loans past due 90 days or more

   

192,443

     

195,450

     

202,394

     

223,611

     

235,489

 

Renegotiated loans

 

$

245,367

     

242,892

     

242,528

     

226,829

     

221,513

 

Accruing loans acquired at a discount past due 90 days or

        more (5)

 

$

39,750

     

44,223

     

47,405

     

49,349

     

47,418

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

$

529,520

     

572,979

     

606,683

     

643,124

     

688,091

 

Carrying amount

   

303,305

     

325,980

     

352,465

     

378,000

     

410,015

 

Nonaccrual loans to total net loans

   

1.01

%

   

1.00

%

   

.93

%

   

.99

%

   

1.00

%

Allowance for credit losses to total loans

   

1.15

%

   

1.18

%

   

1.16

%

   

1.16

%

   

1.16

%

                                           

(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

           

Year ended

         
   

December 31

           

December 31

         

Dollars in thousands

 

2018

   

2017

   

Change

   

2018

   

2017

   

Change

 

Interest income

 

$

1,220,281

     

1,074,139

     

14

%

 

$

4,598,711

     

4,167,795

     

10

%

Interest expense

   

161,321

     

102,689

     

57

     

526,409

     

386,751

     

36

 

Net interest income

   

1,058,960

     

971,450

     

9

     

4,072,302

     

3,781,044

     

8

 

Provision for credit losses

   

38,000

     

31,000

     

23

     

132,000

     

168,000

     

-21

 

Net interest income after provision for credit losses

   

1,020,960

     

940,450

     

9

     

3,940,302

     

3,613,044

     

9

 

Other income

                                               

Mortgage banking revenues

   

92,229

     

96,235

     

-4

     

360,442

     

363,827

     

-1

 

Service charges on deposit accounts

   

108,791

     

107,783

     

1

     

429,337

     

427,372

     

 

Trust income

   

135,024

     

129,669

     

4

     

537,585

     

501,381

     

7

 

Brokerage services income

   

12,781

     

12,768

     

     

51,069

     

61,445

     

-17

 

Trading account and foreign exchange gains

   

16,582

     

10,468

     

58

     

32,547

     

35,301

     

-8

 

Gain (loss) on bank investment securities

   

4,219

     

21,296

     

-80

     

(6,301)

     

21,279

     

-130

 

Other revenues from operations

   

110,970

     

105,834

     

5

     

451,321

     

440,538

     

2

 

Total other income

   

480,596

     

484,053

     

-1

     

1,856,000

     

1,851,143

     

 

Other expense

                                               

Salaries and employee benefits

   

438,928

     

402,394

     

9

     

1,752,264

     

1,648,794

     

6

 

Equipment and net occupancy

   

73,519

     

71,363

     

3

     

298,828

     

295,084

     

1

 

Outside data processing and software

   

50,206

     

50,033

     

     

199,025

     

184,670

     

8

 

FDIC assessments

   

9,837

     

23,722

     

-59

     

68,526

     

101,871

     

-33

 

Advertising and marketing

   

25,910

     

19,366

     

34

     

85,710

     

69,203

     

24

 

Printing, postage and supplies

   

8,777

     

8,563

     

2

     

35,658

     

35,960

     

-1

 

Amortization of core deposit and other
   intangible assets

   

5,359

     

7,025

     

-24

     

24,522

     

31,366

     

-22

 

Other costs of operations

   

189,626

     

213,347

     

-11

     

823,529

     

773,377

     

6

 

Total other expense

   

802,162

     

795,813

     

1

     

3,288,062

     

3,140,325

     

5

 

Income before income taxes

   

699,394

     

628,690

     

11

     

2,508,240

     

2,323,862

     

8

 

Applicable income taxes

   

153,175

     

306,287

     

-50

     

590,160

     

915,556

     

-36

 

Net income

 

$

546,219

     

322,403

     

69

%

 

$

1,918,080

     

1,408,306

     

36

%

 

Condensed Consolidated Statement of Income, Five Quarter Trend

       
   

Three months ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Dollars in thousands

 

2018

   

2018

   

2018

   

2018

   

2017

 

Interest income

 

$

1,220,281

     

1,167,375

     

1,128,905

     

1,082,150

     

1,074,139

 

Interest expense

   

161,321

     

138,337

     

120,118

     

106,633

     

102,689

 

Net interest income

   

1,058,960

     

1,029,038

     

1,008,787

     

975,517

     

971,450

 

Provision for credit losses

   

38,000

     

16,000

     

35,000

     

43,000

     

31,000

 

Net interest income after provision for credit losses

   

1,020,960

     

1,013,038

     

973,787

     

932,517

     

940,450

 

Other income

                                       

Mortgage banking revenues

   

92,229

     

88,408

     

92,499

     

87,306

     

96,235

 

Service charges on deposit accounts

   

108,791

     

108,647

     

106,784

     

105,115

     

107,783

 

Trust income

   

135,024

     

133,545

     

137,641

     

131,375

     

129,669

 

Brokerage services income

   

12,781

     

12,267

     

12,629

     

13,392

     

12,768

 

Trading account and foreign exchange gains

   

16,582

     

6,073

     

5,255

     

4,637

     

10,468

 

Gain (loss) on bank investment securities

   

4,219

     

(3,415)

     

2,326

     

(9,431)

     

21,296

 

Other revenues from operations

   

110,970

     

113,769

     

100,280

     

126,302

     

105,834

 

Total other income

   

480,596

     

459,294

     

457,414

     

458,696

     

484,053

 

Other expense

                                       

Salaries and employee benefits

   

438,928

     

431,371

     

418,537

     

463,428

     

402,394

 

Equipment and net occupancy

   

73,519

     

77,481

     

73,031

     

74,797

     

71,363

 

Outside data processing and software

   

50,206

     

50,678

     

49,712

     

48,429

     

50,033

 

FDIC assessments

   

9,837

     

18,849

     

19,560

     

20,280

     

23,722

 

Advertising and marketing

   

25,910

     

21,784

     

21,768

     

16,248

     

19,366

 

Printing, postage and supplies

   

8,777

     

8,843

     

8,719

     

9,319

     

8,563

 

Amortization of core deposit and other
      intangible assets

   

5,359

     

6,143

     

6,388

     

6,632

     

7,025

 

Other costs of operations

   

189,626

     

160,830

     

178,862

     

294,211

     

213,347

 

Total other expense

   

802,162

     

775,979

     

776,577

     

933,344

     

795,813

 

Income before income taxes

   

699,394

     

696,353

     

654,624

     

457,869

     

628,690

 

Applicable income taxes

   

153,175

     

170,262

     

161,464

     

105,259

     

306,287

 

Net income

 

$

546,219

     

526,091

     

493,160

     

352,610

     

322,403

 

 

 

Condensed Consolidated Balance Sheet

                 
   

December 31

           

Dollars in thousands

 

2018

   

2017

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,605,439

     

1,420,888

     

13

 

%

Interest-bearing deposits at banks

   

8,105,197

     

5,078,903

     

60

   

Trading account

   

185,584

     

132,909

     

40

   

Investment securities

   

12,692,813

     

14,664,525

     

-13

   

Loans and leases:

                         

Commercial, financial, etc.

   

22,977,976

     

21,742,651

     

6

   

Real estate - commercial

   

34,363,556

     

33,366,373

     

3

   

Real estate - consumer

   

17,154,446

     

19,613,344

     

-13

   

Consumer

   

13,970,499

     

13,266,615

     

5

   

Total loans and leases, net of unearned discount

   

88,466,477

     

87,988,983

     

1

   

Less: allowance for credit losses

   

1,019,444

     

1,017,198

     

   

Net loans and leases

   

87,447,033

     

86,971,785

     

1

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

47,067

     

71,589

     

-34

   

Other assets

   

5,421,158

     

5,659,776

     

-4

   

Total assets

 

$

120,097,403

     

118,593,487

     

1

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

32,256,668

     

33,975,180

     

-5

 

%

Interest-bearing deposits

   

57,087,998

     

58,278,970

     

-2

   

Deposits at Cayman Islands office

   

811,906

     

177,996

     

356

   

Total deposits

   

90,156,572

     

92,432,146

     

-2

   

Short-term borrowings

   

4,398,378

     

175,099

     

   

Accrued interest and other liabilities

   

1,637,348

     

1,593,993

     

3

   

Long-term borrowings

   

8,444,914

     

8,141,430

     

4

   

Total liabilities

   

104,637,212

     

102,342,668

     

2

   

Shareholders' equity:

                         

Preferred

   

1,231,500

     

1,231,500

     

   

Common

   

14,228,691

     

15,019,319

     

-5

   

Total shareholders' equity

   

15,460,191

     

16,250,819

     

-5

   

Total liabilities and shareholders' equity

 

$

120,097,403

     

118,593,487

     

1

 

%

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

       
       
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Dollars in thousands

 

2018

   

2018

   

2018

   

2018

   

2017

 

ASSETS

                                       

Cash and due from banks

 

$

1,605,439

     

1,311,611

     

1,367,594

     

1,291,664

     

1,420,888

 

Interest-bearing deposits at banks

   

8,105,197

     

6,523,746

     

6,669,985

     

6,135,434

     

5,078,903

 

Federal funds sold

   

     

     

1,500

     

1,000

     

 

Trading account

   

185,584

     

125,038

     

148,303

     

141,134

     

132,909

 

Investment securities

   

12,692,813

     

13,073,881

     

13,283,002

     

14,066,564

     

14,664,525

 

Loans and leases:

                                       

Commercial, financial, etc.

   

22,977,976

     

21,635,394

     

21,894,857

     

21,697,522

     

21,742,651

 

Real estate - commercial

   

34,363,556

     

33,518,375

     

34,137,937

     

33,753,506

     

33,366,373

 

Real estate - consumer

   

17,154,446

     

17,721,399

     

18,310,712

     

18,960,946

     

19,613,344

 

Consumer

   

13,970,499

     

13,805,317

     

13,453,944

     

13,298,775

     

13,266,615

 

Total loans and leases, net of unearned discount

   

88,466,477

     

86,680,485

     

87,797,450

     

87,710,749

     

87,988,983

 

Less: allowance for credit losses

   

1,019,444

     

1,019,488

     

1,019,248

     

1,019,671

     

1,017,198

 

Net loans and leases

   

87,447,033

     

85,660,997

     

86,778,202

     

86,691,078

     

86,971,785

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

47,067

     

52,426

     

58,569

     

64,957

     

71,589

 

Other assets

   

5,421,158

     

5,486,826

     

5,525,786

     

5,637,881

     

5,659,776

 

Total assets

 

$

120,097,403

     

116,827,637

     

118,426,053

     

118,622,824

     

118,593,487

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

32,256,668

     

31,773,560

     

32,086,191

     

31,817,516

     

33,975,180

 

Interest-bearing deposits

   

57,087,998

     

56,919,549

     

56,924,970

     

58,851,050

     

58,278,970

 

Deposits at Cayman Islands office

   

811,906

     

447,287

     

261,427

     

278,064

     

177,996

 

Total deposits

   

90,156,572

     

89,140,396

     

89,272,588

     

90,946,630

     

92,432,146

 

Short-term borrowings

   

4,398,378

     

1,310,110

     

3,239,416

     

1,626,129

     

175,099

 

Accrued interest and other liabilities

   

1,637,348

     

1,800,778

     

1,953,848

     

1,749,320

     

1,593,993

 

Long-term borrowings

   

8,444,914

     

9,140,268

     

8,382,316

     

8,591,051

     

8,141,430

 

Total liabilities

   

104,637,212

     

101,391,552

     

102,848,168

     

102,913,130

     

102,342,668

 

Shareholders' equity:

                                       

Preferred

   

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

 

Common

   

14,228,691

     

14,204,585

     

14,346,385

     

14,478,194

     

15,019,319

 

Total shareholders' equity

   

15,460,191

     

15,436,085

     

15,577,885

     

15,709,694

     

16,250,819

 

Total liabilities and shareholders' equity

 

$

120,097,403

     

116,827,637

     

118,426,053

     

118,622,824

     

118,593,487

 

 

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 
 
   

Three months ended

   

Change in balance

     

Year ended

       
   

December 31,

 

December 31,

   

September 30,

   

December 31, 2018 from

     

December 31,

   

Change

Dollars in millions

 

2018

 

2017

   

2018

   

December 31,

   

September 30,

     

2018

   

2017

   

in

   

Balance

   

Rate

 

Balance

   

Rate

   

Balance

   

Rate

   

2017

   

2018

     

Balance

   

Rate

   

Balance

   

Rate

   

balance

ASSETS

                                                                                             

Interest-bearing deposits at banks

 

$

7,394

   

2.23

%

 

6,680

   

1.31

%

   

5,207

   

1.98

%

   

11

%

   

42

%

   

$

5,614

   

1.93

%

   

5,578

   

1.10

%

   

1

%

Federal funds sold

   

   

   

   

     

   

     

     

       

1

   

1.95

     

   

     

 

Trading account

   

56

   

2.65

   

87

   

1.31

     

65

   

1.78

     

-35

     

-14

       

58

   

2.55

     

71

   

1.70

     

-18

 

Investment securities

   

13,034

   

2.41

   

14,808

   

2.30

     

13,431

   

2.37

     

-12

     

-3

       

13,694

   

2.37

     

15,538

   

2.34

     

-12

 

Loans and leases, net of unearned

    discount

                                                                                             

Commercial, financial, etc.

   

22,376

   

4.92

   

21,562

   

4.06

     

21,689

   

4.68

     

4

     

3

       

21,832

   

4.60

     

21,981

   

3.88

     

-1

 

Real estate - commercial

   

33,586

   

5.27

   

33,138

   

4.61

     

33,800

   

5.10

     

1

     

-1

       

33,682

   

5.01

     

33,196

   

4.40

     

1

 

Real estate - consumer

   

17,421

   

4.31

   

19,974

   

4.03

     

18,006

   

4.21

     

-13

     

-3

       

18,330

   

4.18

     

21,013

   

3.96

     

-13

 

Consumer

   

13,918

   

5.35

   

13,163

   

4.91

     

13,637

   

5.26

     

6

     

2

       

13,555

   

5.19

     

12,625

   

4.82

     

7

 

Total loans and leases, net

   

87,301

   

5.02

   

87,837

   

4.40

     

87,132

   

4.86

     

-1

     

       

87,399

   

4.79

     

88,815

   

4.25

     

-2

 

Total earning assets

   

107,785

   

4.51

   

109,412

   

3.93

     

105,835

   

4.40

     

-1

     

2

       

106,766

   

4.33

     

110,002

   

3.82

     

-3

 

Goodwill

   

4,593

         

4,593

           

4,593

           

     

       

4,593

           

4,593

           

 

Core deposit and other intangible

    assets

   

50

         

75

           

55

           

-34

     

-11

       

59

           

86

           

-32

 

Other assets

   

5,371

         

6,146

           

5,514

           

-13

     

-3

       

5,541

           

6,179

           

-10

 

Total assets

 

$

117,799

         

120,226

           

115,997

           

-2

%

   

2

%

   

$

116,959

           

120,860

           

-3

%

                                                                                               

LIABILITIES AND
SHAREHOLDERS' EQUITY

                                                                                             

Interest-bearing deposits

                                                                                             

Savings and interest-checking
     
deposits

 

$

51,820

   

.54

   

53,436

   

.29

     

51,552

   

.43

     

-3

%

   

1

%

   

$

52,102

   

.41

     

53,399

   

.25

     

-2

%

Time deposits

   

5,960

   

1.07

   

6,888

   

.70

     

5,826

   

.88

     

-13

     

2

       

6,025

   

.85

     

8,161

   

.75

     

-26

 

Deposits at Cayman Islands
     
office

   

693

   

1.81

   

215

   

.61

     

407

   

1.52

     

223

     

70

       

394

   

1.43

     

185

   

.64

     

114

 

Total interest-bearing
     deposits

   

58,473

   

.61

   

60,539

   

.34

     

57,785

   

.49

     

-3

     

1

       

58,521

   

.47

     

61,745

   

.32

     

-5

 

Short-term borrowings

   

315

   

1.91

   

178

   

.81

     

374

   

1.70

     

77

     

-16

       

331

   

1.63

     

205

   

.74

     

62

 

Long-term borrowings

   

9,239

   

3.03

   

8,464

   

2.37

     

9,047

   

2.90

     

9

     

2

       

8,845

   

2.81

     

8,302

   

2.28

     

7

 

Total interest-bearing liabilities

   

68,027

   

.94

   

69,181

   

.59

     

67,206

   

.82

     

-2

     

1

       

67,697

   

.78

     

70,252

   

.55

     

-4

 

Noninterest-bearing deposits

   

32,631

         

32,930

           

31,467

           

-1

     

4

       

31,893

           

32,520

           

-2

 

Other liabilities

   

1,752

         

1,844

           

1,775

           

-5

     

-1

       

1,739

           

1,793

           

-3

 

Total liabilities

   

102,410

         

103,955

           

100,448

           

-1

     

2

       

101,329

           

104,565

           

-3

 

Shareholders' equity

   

15,389

         

16,271

           

15,549

           

-5

     

-1

       

15,630

           

16,295

           

-4

 

Total liabilities and

    shareholders' equity

 

$

117,799

         

120,226

           

115,997

           

-2

%

   

2

%

   

$

116,959

           

120,860

           

-3

%

                                                                                               

Net interest spread

         

3.57

         

3.34

           

3.58

                             

3.55

           

3.27

         

Contribution of interest-free funds

         

.35

         

.22

           

.30

                             

.28

           

.20

         

Net interest margin

         

3.92

%

       

3.56

%

         

3.88

%

                           

3.83

%

         

3.47

%

       

 

 

 

 

Reconciliation of GAAP to Non-GAAP Measures

 

 

 

 
             
   

Three months ended

   

Year ended

 
   

December 31

   

December 31

 
   

2018

   

2017

   

2018

   

2017

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

546,219

     

322,403

     

1,918,080

     

1,408,306

 

Amortization of core deposit and other intangible assets (1)

   

3,950

     

4,261

     

18,075

     

19,025

 

Net operating income

 

$

550,169

     

326,664

     

1,936,155

     

1,427,331

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.76

     

2.01

     

12.74

     

8.70

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.12

     

.12

 

Diluted net operating earnings per common share

 

$

3.79

     

2.04

     

12.86

     

8.82

 
                                 

Other expense

                               

Other expense

 

$

802,162

     

795,813

     

3,288,062

     

3,140,325

 

Amortization of core deposit and other intangible assets

   

(5,359)

     

(7,025)

     

(24,522)

     

(31,366)

 

Noninterest operating expense

 

$

796,803

     

788,788

     

3,263,540

     

3,108,959

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

796,803

     

788,788

     

3,263,540

     

3,108,959

 

Taxable-equivalent net interest income

   

1,064,918

     

980,457

     

4,094,199

     

3,815,614

 

Other income

   

480,596

     

484,053

     

1,856,000

     

1,851,143

 

Less:  Gain (loss) on bank investment securities

   

4,219

     

21,296

     

(6,301)

     

21,279

 

Denominator

 

$

1,541,295

     

1,443,214

     

5,956,500

     

5,645,478

 

Efficiency ratio

   

51.70

%

   

54.65

%

   

54.79

%

   

55.07

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

117,799

     

120,226

     

116,959

     

120,860

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(50)

     

(75)

     

(59)

     

(86)

 

Deferred taxes

   

13

     

26

     

16

     

33

 

Average tangible assets

 

$

113,169

     

115,584

     

112,323

     

116,214

 

Average common equity

                               

Average total equity

 

$

15,389

     

16,271

     

15,630

     

16,295

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,157

     

15,039

     

14,398

     

15,063

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(50)

     

(75)

     

(59)

     

(86)

 

Deferred taxes

   

13

     

26

     

16

     

33

 

Average tangible common equity

 

$

9,527

     

10,397

     

9,762

     

10,417

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

120,097

     

118,593

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(47)

     

(72)

                 

Deferred taxes

   

13

     

19

                 

Total tangible assets

 

$

115,470

     

113,947

                 

Total common equity

                               

Total equity

 

$

15,460

     

16,251

                 

Preferred stock

   

(1,232)

     

(1,232)

                 

Undeclared dividends - cumulative preferred stock

   

(3)

     

(3)

                 

Common equity, net of undeclared cumulative preferred dividends

   

14,225

     

15,016

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(47)

     

(72)

                 

Deferred taxes

   

13

     

19

                 

Total tangible common equity

 

$

9,598

     

10,370

                 

 

(1)

     After any related tax effect.

 

 

 

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

 

 

 

       
   

Three months ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 
   

2018

   

2018

   

2018

   

2018

   

2017

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

546,219

     

526,091

     

493,160

     

352,610

     

322,403

 

Amortization of core deposit and other intangible assets (1)

   

3,950

     

4,528

     

4,709

     

4,888

     

4,261

 

Net operating income

 

$

550,169

     

530,619

     

497,869

     

357,498

     

326,664

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.76

     

3.53

     

3.26

     

2.23

     

2.01

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.03

     

.03

     

.03

 

Diluted net operating earnings per common share

 

$

3.79

     

3.56

     

3.29

     

2.26

     

2.04

 
                                         

Other expense

                                       

Other expense

 

$

802,162

     

775,979

     

776,577

     

933,344

     

795,813

 

Amortization of core deposit and other intangible assets

   

(5,359)

     

(6,143)

     

(6,388)

     

(6,632)

     

(7,025)

 

Noninterest operating expense

 

$

796,803

     

769,836

     

770,189

     

926,712

     

788,788

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

796,803

     

769,836

     

770,189

     

926,712

     

788,788

 

Taxable-equivalent net interest income

   

1,064,918

     

1,034,771

     

1,014,184

     

980,326

     

980,457

 

Other income

   

480,596

     

459,294

     

457,414

     

458,696

     

484,053

 

Less:  Gain (loss) on bank investment securities

   

4,219

     

(3,415)

     

2,326

     

(9,431)

     

21,296

 

Denominator

 

$

1,541,295

     

1,497,480

     

1,469,272

     

1,448,453

     

1,443,214

 

Efficiency ratio

   

51.70

%

   

51.41

%

   

52.42

%

   

63.98

%

   

54.65

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

117,799

     

115,997

     

116,413

     

117,684

     

120,226

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(50)

     

(55)

     

(62)

     

(68)

     

(75)

 

Deferred taxes

   

13

     

14

     

17

     

18

     

26

 

Average tangible assets

 

$

113,169

     

111,363

     

111,775

     

113,041

     

115,584

 

Average common equity

                                       

Average total equity

 

$

15,389

     

15,549

     

15,533

     

16,059

     

16,271

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,157

     

14,317

     

14,301

     

14,827

     

15,039

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(50)

     

(55)

     

(62)

     

(68)

     

(75)

 

Deferred taxes

   

13

     

14

     

17

     

18

     

26

 

Average tangible common equity

 

$

9,527

     

9,683

     

9,663

     

10,184

     

10,397

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

120,097

     

116,828

     

118,426

     

118,623

     

118,593

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(47)

     

(52)

     

(59)

     

(65)

     

(72)

 

Deferred taxes

   

13

     

14

     

16

     

17

     

19

 

Total tangible assets

 

$

115,470

     

112,197

     

113,790

     

113,982

     

113,947

 

Total common equity

                                       

Total equity

 

$

15,460

     

15,436

     

15,578

     

15,710

     

16,251

 

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

   

14,225

     

14,201

     

14,343

     

14,475

     

15,016

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(47)

     

(52)

     

(59)

     

(65)

     

(72)

 

Deferred taxes

   

13

     

14

     

16

     

17

     

19

 

Total tangible common equity

 

$

9,598

     

9,570

     

9,707

     

9,834

     

10,370

 

 

 

(1)

After any related tax effect.

 

 

 

INVESTOR CONTACT:

Donald J. MacLeod

 

(716) 842-5138

   

MEDIA CONTACT:

C. Michael Zabel

 

(716) 842-5385

 

 

M&T Bank Corporation