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M&T Bank Corporation Announces Second Quarter Results

BUFFALO, N.Y., July 18, 2019 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2019.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.34 in the second quarter of 2019, up 2% from $3.26 in the year-earlier quarter. GAAP-basis net income in the recent quarter was $473 million, compared with $493 million in the second quarter of 2018. GAAP-basis diluted earnings per common share and net income for the initial 2019 quarter were $3.35 and $483 million, respectively. GAAP-basis net income for the second quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.60% and 12.68%, respectively, compared with 1.70% and 13.32%, respectively, in the similar 2018 quarter and 1.68% and 13.14%, respectively, in the first quarter of 2019.

In July 2019, M&T agreed to sell its interest in an asset manager obtained in the 2011 acquisition of Wilmington Trust Corporation that is accounted for using the equity method of accounting and, as a result, as of June 30, 2019 recorded a $48 million charge (reflected in "other costs of operations") to reduce the carrying value of the investment to its estimated net realizable value. The after-tax impact of the charge was a reduction in net income of $36 million, or $.27 of diluted earnings per common share.

Commenting on M&T's second quarter results, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "Financial results for the second quarter reflect healthy growth in mortgage banking revenues and trust income over 2019's initial quarter. Overall credit quality remains solid, with credit costs in the recent quarter at a level consistent with what we have experienced over the last several years. During the quarter, M&T continued to return capital to our common shareholders through $402 million of stock repurchases and $135 million of dividends while maintaining strong regulatory capital levels."

Earnings Highlights

 
                                         
                           

Change 2Q19 vs.

 

($ in millions, except per share data)

 

2Q19

   

2Q18

   

1Q19

   

2Q18

   

1Q19

 

Net income

 

$

473

   

$

493

   

$

483

     

-4

%

   

-2

%

Net income available to common shareholders  ̶  diluted

 

$

453

   

$

473

   

$

462

     

-4

%

   

-2

%

Diluted earnings per common share

 

$

3.34

   

$

3.26

   

$

3.35

     

2

%

   

 

Annualized return on average assets

   

1.60

%

   

1.70

%

   

1.68

%

               

Annualized return on average common equity

   

12.68

%

   

13.32

%

   

13.14

%

               

For the six-month period ended June 30, 2019, diluted earnings per common share were $6.69, up 22% from $5.48 in the year-earlier period. GAAP-basis net income for the first six months of 2019 totaled $956 million, 13% higher than $846 million in the corresponding 2018 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, 2019 was 1.64% and 12.91%, respectively, improved from 1.46% and 11.21%, respectively, in the similar 2018 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 $3.37 in the recent quarter, compared with $3.29 in the second quarter of 2018 and $3.38 in the first quarter of 2019.  Net operating income for the second quarter of 2019 was $477 million, compared with $498 million in the year-earlier period and $486 million in 2019's initial 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 1.68% and 18.83%, respectively, compared with 1.79% and 19.91%, respectively, in the similar 2018 quarter and 1.76% and 19.56%, respectively, in the first quarter of 2019.

Diluted net operating earnings per common share in the first six months of 2019 rose 22% to $6.74 from $5.54 in the first half of 2018. Net operating income during the six-month period ended June 30, 2019 was $963 million, up 13% from $855 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 1.72% and 19.19%, respectively, in the first half of 2019, compared with 1.53% and 16.65%, respectively, in the first six months of 2018.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $1.05 billion in 2019's second quarter, up 3% from $1.01 billion in the year-earlier quarter. That increase resulted predominantly from a widening of the net interest margin in the recent quarter to 3.91% from 3.83% in the second quarter of 2018. Also contributing to the higher net interest income was growth in average earning assets, which rose to $107.5 billion in the second quarter of 2019 from $106.2 billion in the year-earlier quarter. Taxable-equivalent net interest income in the recent quarter was little changed from $1.06 billion in the first quarter of 2019 when the net interest margin was 4.04% and average earning assets were $106.1 billion.

                                         

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 2Q19 vs.

 

($ in millions)

 

2Q19

   

2Q18

   

1Q19

   

2Q18

   

1Q19

 

Average earning assets

 

$

107,511

   

$

106,210

   

$

106,096

     

1

%

   

1

%

Net interest income  ̶  taxable-equivalent

 

$

1,047

   

$

1,014

   

$

1,056

     

3

%

   

-1

%

Net interest margin

   

3.91

%

   

3.83

%

   

4.04

%

               

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $55 million in the second quarter of 2019, compared with $35 million in the year-earlier quarter and $22 million in 2019's first quarter. Net loan charge-offs were $44 million during the recent quarter, compared with $35 million in the second quarter of 2018 and $22 million in the first quarter of 2019. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .16% in the second quarters of 2019 and 2018, respectively, and .10% in the first quarter of 2019.

Loans classified as nonaccrual totaled $865 million or .96% of total loans outstanding at June 30, 2019, compared with $820 million or .93% a year earlier and $882 million or .99% at March 31, 2019. Assets taken in foreclosure of defaulted loans were $73 million at June 30, 2019, compared with $98 million and $81 million at June 30, 2018 and March 31, 2019, respectively.

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 $1.03 billion at June 30, 2019, compared with $1.02 billion at each of June 30, 2018 and March 31, 2019. As a percentage of loans outstanding, the allowance was 1.15% at each of June 30, 2019 and March 31, 2019 and 1.16% at June 30, 2018.

Asset Quality Metrics

 
                                         
                           

Change 2Q19 vs.

 

($ in millions)

 

2Q19

   

2Q18

   

1Q19

   

2Q18

   

1Q19

 

At end of quarter

                                       

Nonaccrual loans

 

$

865

   

$

820

   

$

882

     

6

%

   

-2

%

Real estate and other foreclosed assets

 

$

73

   

$

98

   

$

81

     

-26

%

   

-10

%

Total nonperforming assets

 

$

938

   

$

918

   

$

963

     

2

%

   

-3

%

Accruing loans past due 90 days or more (1)

 

$

349

   

$

223

   

$

244

     

56

%

   

43

%

Nonaccrual loans as % of loans outstanding

   

.96

%

   

.93

%

   

.99

%

               
                                         

Allowance for credit losses

 

$

1,030

   

$

1,019

   

$

1,019

     

1

%

   

1

%

Allowance for credit losses as % of loans outstanding

   

1.15

%

   

1.16

%

   

1.15

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

55

   

$

35

   

$

22

     

57

%

   

150

%

Net charge-offs

 

$

44

   

$

35

   

$

22

     

26

%

   

101

%

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

   

.20

%

   

.16

%

   

.10

%

               

______________

(1)

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

Noninterest Income and Expense.  Noninterest income totaled $512 million in the recent quarter, up 12% from $457 million in the year-earlier quarter and 2% higher than $501 million in the first quarter of 2019. The recent quarter's improvement as compared with the second quarter of 2018 and the first quarter of 2019 reflects higher mortgage banking revenues, trading account and foreign exchange gains, and trust income. The initial 2019 quarter included $37 million of income from Bayview Lending Group LLC.

Noninterest Income

 
                                         
                           

Change 2Q19 vs.

 

($ in millions)

 

2Q19

   

2Q18

   

1Q19

   

2Q18

   

1Q19

 

Mortgage banking revenues

 

$

107

   

$

92

   

$

95

     

16

%

   

13

%

Service charges on deposit accounts

   

108

     

107

     

103

     

1

%

   

5

%

Trust income

   

145

     

138

     

133

     

5

%

   

9

%

Brokerage services income

   

12

     

13

     

12

     

-1

%

 

 

Trading account and foreign exchange gains

   

18

     

5

     

11

     

251

%

   

71

%

Gain on bank investment securities

   

9

     

2

     

12

     

283

%

   

-25

%

Other revenues from operations

   

113

     

100

     

135

     

12

%

   

-16

%

Total

 

$

512

   

$

457

   

$

501

     

12

%

   

2

%

Noninterest expense aggregated $873 million in the second quarter of 2019, $777 million in the year-earlier quarter and $894 million in the first quarter of 2019.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $868 million in the recent quarter, $770 million in the second quarter of 2018 and $889 million in the initial 2019 quarter. The most significant factors contributing to the higher level of noninterest expenses in the recent quarter as compared with the second quarter of 2018 were the $48 million charge associated with an equity investment in an asset manager recorded in the recent quarter, increased costs for salaries and employee benefits, and a $9 million valuation allowance associated with the impact of lower interest rates on mortgage servicing rights.  The higher noninterest operating expenses in the initial 2019 quarter reflected a $50 million increase in the accrual for legal matters and seasonally higher stock-based compensation and employee benefits expenses, partially offset by recent quarter charges associated with the asset manager investment, professional services and mortgage servicing rights.

Noninterest Expense

 
                                         
                           

Change 2Q19 vs.

 

($ in millions)

 

2Q19

   

2Q18

   

1Q19

   

2Q18

   

1Q19

 

Salaries and employee benefits

 

$

456

   

$

419

   

$

499

     

9

%

   

-9

%

Equipment and net occupancy

   

79

     

73

     

79

     

8

%

   

 

Outside data processing and software

   

55

     

49

     

52

     

11

%

   

5

%

FDIC assessments

   

10

     

20

     

10

     

-50

%

   

4

%

Advertising and marketing

   

24

     

22

     

20

     

10

%

   

19

%

Printing, postage and supplies

   

10

     

9

     

10

     

18

%

   

5

%

Amortization of core deposit and other intangible assets

   

5

     

6

     

5

     

-21

%

   

1

%

Other costs of operations

   

234

     

179

     

219

     

31

%

   

7

%

Total

 

$

873

   

$

777

   

$

894

     

12

%

   

-2

%

                                         

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 56.0% in the second quarter of 2019, 52.4% in the year-earlier quarter and 57.6% in the first quarter of 2019.

Balance Sheet.  M&T had total assets of $121.6 billion at June 30, 2019, compared with $118.4 billion and $120.0 billion at June 30, 2018 and March 31, 2019, respectively. Loans and leases, net of unearned discount, were $89.9 billion at the recent quarter-end, $87.8 billion at June 30, 2018 and $88.6 billion at March 31, 2019. Total deposits were $91.7 billion at June 30, 2019, compared with $89.3 billion a year earlier and $90.5 billion at March 31, 2019.

Total shareholders' equity was $15.7 billion at June 30, 2019 and $15.6 billion at June 30, 2018, representing 12.91% and 13.15%, respectively, of total assets. Total shareholders' equity was $15.6 billion, or 12.99% of total assets at March 31, 2019. Common shareholders' equity was $14.5 billion, or $107.73 per share, at June 30, 2019, compared with $14.3 billion, or $99.43 per share, a year-earlier and $14.4 billion, or $105.04 per share, at March 31, 2019.  Tangible equity per common share was $73.29 at June 30, 2019, compared with $67.29 at June 30, 2018 and $71.19 at March 31, 2019. 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 9.84% at June 30, 2019.

In accordance with its capital plan, M&T repurchased 2,450,000 shares of its common stock during the recent quarter at an average cost per share of $164.08, for a total cost of $402 million. In the aggregate, during the first six months of 2019, M&T repurchased 4,600,000 shares of common stock at a total cost of $768 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 10:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877) 780-2276.  International participants, using any applicable international calling codes, may dial (973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID #1491035.  The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday, July 25, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #1491035.  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-presentations.

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

 

2019

   

2018

   

Change

   

2019

   

2018

   

Change

 

Performance

                                               

Net income

 

$

473,260

     

493,160

     

-4

%

 

$

956,002

     

845,770

     

13

%

Net income available to common shareholders

   

452,633

     

472,600

     

-4

%

   

914,719

     

805,342

     

14

%

Per common share:

                                               

Basic earnings

 

$

3.34

     

3.26

     

2

%

 

$

6.69

     

5.49

     

22

%

Diluted earnings

   

3.34

     

3.26

     

2

%

   

6.69

     

5.48

     

22

%

Cash dividends

 

$

1.00

     

.80

     

25

%

 

$

2.00

     

1.55

     

29

%

Common shares outstanding:

                                               

Average - diluted (1)

   

135,464

     

144,998

     

-7

%

   

136,685

     

146,941

     

-7

%

Period end (2)

   

134,200

     

144,261

     

-7

%

   

134,200

     

144,261

     

-7

%

Return on (annualized):

                                               

Average total assets

   

1.60

%

   

1.70

%

           

1.64

%

   

1.46

%

       

Average common shareholders' equity

   

12.68

%

   

13.32

%

           

12.91

%

   

11.21

%

       

Taxable-equivalent net interest income

 

$

1,047,406

     

1,014,184

     

3

%

 

$

2,103,433

     

1,994,510

     

5

%

Yield on average earning assets

   

4.64

%

   

4.28

%

           

4.68

%

   

4.20

%

       

Cost of interest-bearing liabilities

   

1.11

%

   

.71

%

           

1.08

%

   

.68

%

       

Net interest spread

   

3.53

%

   

3.57

%

           

3.60

%

   

3.52

%

       

Contribution of interest-free funds

   

.38

%

   

.26

%

           

.37

%

   

.25

%

       

Net interest margin

   

3.91

%

   

3.83

%

           

3.97

%

   

3.77

%

       

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

   

.20

%

   

.16

%

           

.15

%

   

.17

%

       

Net operating results (3)

                                               

Net operating income

 

$

477,001

     

497,869

     

-4

%

 

$

963,441

     

855,367

     

13

%

Diluted net operating earnings per common share

   

3.37

     

3.29

     

2

%

   

6.74

     

5.54

     

22

%

Return on (annualized):

                                               

Average tangible assets

   

1.68

%

   

1.79

%

           

1.72

%

   

1.53

%

       

Average tangible common equity

   

18.83

%

   

19.91

%

           

19.19

%

   

16.65

%

       

Efficiency ratio

   

55.98

%

   

52.42

%

           

56.77

%

   

58.16

%

       
                                                 
   

At June 30

                             

Loan quality

 

2019

   

2018

   

Change

                         

Nonaccrual loans

 

$

865,384

     

819,984

     

6

%

                       

Real estate and other foreclosed assets

   

72,907

     

98,062

     

-26

%

                       

Total nonperforming assets

 

$

938,291

     

918,046

     

2

%

                       

Accruing loans past due 90 days or more (4)

 

$

348,725

     

223,026

     

56

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

36,765

     

34,870

     

5

%

                       

Accruing loans past due 90 days or more

   

320,305

     

202,394

     

58

%

                       

Renegotiated loans

 

$

254,332

     

242,528

     

5

%

                       

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

 

$

43,079

     

47,405

     

-9

%

                       

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

$

473,834

     

606,683

     

-22

%

                       

Carrying amount

   

263,025

     

352,465

     

-25

%

                       

Nonaccrual loans to total net loans

   

.96

%

   

.93

%

                               

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

 
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Amounts in thousands, except per share

 

2019

   

2019

   

2018

   

2018

   

2018

 

Performance

                                       

Net income

 

$

473,260

     

482,742

     

546,219

     

526,091

     

493,160

 

Net income available to common shareholders

   

452,633

     

462,086

     

525,328

     

505,365

     

472,600

 

Per common share:

                                       

Basic earnings

 

$

3.34

     

3.35

     

3.76

     

3.54

     

3.26

 

Diluted earnings

   

3.34

     

3.35

     

3.76

     

3.53

     

3.26

 

Cash dividends

 

$

1.00

     

1.00

     

1.00

     

1.00

     

.80

 

Common shares outstanding:

                                       

Average - diluted (1)

   

135,464

     

137,920

     

139,838

     

142,976

     

144,998

 

Period end (2)

   

134,200

     

136,637

     

138,534

     

141,479

     

144,261

 

Return on (annualized):

                                       

Average total assets

   

1.60

%

   

1.68

%

   

1.84

%

   

1.80

%

   

1.70

%

Average common shareholders' equity

   

12.68

%

   

13.14

%

   

14.80

%

   

14.08

%

   

13.32

%

Taxable-equivalent net interest income

 

$

1,047,406

     

1,056,027

     

1,064,918

     

1,034,771

     

1,014,184

 

Yield on average earning assets

   

4.64

%

   

4.71

%

   

4.51

%

   

4.40

%

   

4.28

%

Cost of interest-bearing liabilities

   

1.11

%

   

1.04

%

   

.94

%

   

.82

%

   

.71

%

Net interest spread

   

3.53

%

   

3.67

%

   

3.57

%

   

3.58

%

   

3.57

%

Contribution of interest-free funds

   

.38

%

   

.37

%

   

.35

%

   

.30

%

   

.26

%

Net interest margin

   

3.91

%

   

4.04

%

   

3.92

%

   

3.88

%

   

3.83

%

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

   

.20

%

   

.10

%

   

.17

%

   

.07

%

   

.16

%

Net operating results (3)

                                       

Net operating income

 

$

477,001

     

486,440

     

550,169

     

530,619

     

497,869

 

Diluted net operating earnings per common share

   

3.37

     

3.38

     

3.79

     

3.56

     

3.29

 

Return on (annualized):

                                       

Average tangible assets

   

1.68

%

   

1.76

%

   

1.93

%

   

1.89

%

   

1.79

%

Average tangible common equity

   

18.83

%

   

19.56

%

   

22.16

%

   

21.00

%

   

19.91

%

Efficiency ratio

   

55.98

%

   

57.56

%

   

51.70

%

   

51.41

%

   

52.42

%

                                         
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Loan quality

 

2019

   

2019

   

2018

   

2018

   

2018

 

Nonaccrual loans

 

$

865,384

     

881,611

     

893,608

     

870,832

     

819,984

 

Real estate and other foreclosed assets

   

72,907

     

81,335

     

78,375

     

87,333

     

98,062

 

Total nonperforming assets

 

$

938,291

     

962,946

     

971,983

     

958,165

     

918,046

 

Accruing loans past due 90 days or more (4)

 

$

348,725

     

244,257

     

222,527

     

254,360

     

223,026

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

36,765

     

35,481

     

34,667

     

33,570

     

34,870

 

Accruing loans past due 90 days or more

   

320,305

     

194,510

     

192,443

     

195,450

     

202,394

 

Renegotiated loans

 

$

254,332

     

267,952

     

245,367

     

242,892

     

242,528

 

Accruing loans acquired at a discount past due 90 days or

        more (5)

 

$

43,079

     

43,995

     

39,750

     

44,223

     

47,405

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

$

473,834

     

495,163

     

529,520

     

572,979

     

606,683

 

Carrying amount

   

263,025

     

278,783

     

303,305

     

325,980

     

352,465

 

Nonaccrual loans to total net loans

   

.96

%

   

.99

%

   

1.01

%

   

1.00

%

   

.93

%

Allowance for credit losses to total loans

   

1.15

%

   

1.15

%

   

1.15

%

   

1.18

%

   

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

           

Six months ended

         
   

June 30

           

June 30

         

Dollars in thousands

 

2019

   

2018

   

Change

   

2019

   

2018

   

Change

 

Interest income

 

$

1,237,913

     

1,128,905

     

10

%

 

$

2,464,222

     

2,211,055

     

11

%

Interest expense

   

196,432

     

120,118

     

64

     

372,681

     

226,751

     

64

 

Net interest income

   

1,041,481

     

1,008,787

     

3

     

2,091,541

     

1,984,304

     

5

 

Provision for credit losses

   

55,000

     

35,000

     

57

     

77,000

     

78,000

     

-1

 

Net interest income after provision for credit losses

   

986,481

     

973,787

     

1

     

2,014,541

     

1,906,304

     

6

 

Other income

                                               

Mortgage banking revenues

   

107,321

     

92,499

     

16

     

202,632

     

179,805

     

13

 

Service charges on deposit accounts

   

107,787

     

106,784

     

1

     

210,899

     

211,899

     

 

Trust income

   

144,382

     

137,641

     

5

     

277,168

     

269,016

     

3

 

Brokerage services income

   

12,478

     

12,629

     

-1

     

24,954

     

26,021

     

-4

 

Trading account and foreign exchange gains

   

18,453

     

5,255

     

251

     

29,255

     

9,892

     

196

 

Gain (loss) on bank investment securities

   

8,911

     

2,326

     

283

     

20,752

     

(7,105)

     

 

Other revenues from operations

   

112,763

     

100,280

     

12

     

247,200

     

226,582

     

9

 

Total other income

   

512,095

     

457,414

     

12

     

1,012,860

     

916,110

     

11

 

Other expense

                                               

Salaries and employee benefits

   

455,737

     

418,537

     

9

     

954,937

     

881,965

     

8

 

Equipment and net occupancy

   

79,150

     

73,031

     

8

     

158,497

     

147,828

     

7

 

Outside data processing and software

   

55,234

     

49,712

     

11

     

107,651

     

98,141

     

10

 

FDIC assessments

   

9,772

     

19,560

     

-50

     

19,198

     

39,840

     

-52

 

Advertising and marketing

   

24,046

     

21,768

     

10

     

44,321

     

38,016

     

17

 

Printing, postage and supplies

   

10,324

     

8,719

     

18

     

20,179

     

18,038

     

12

 

Amortization of core deposit and other
 
 intangible assets

   

5,077

     

6,388

     

-21

     

10,097

     

13,020

     

-22

 

Other costs of operations

   

233,692

     

178,862

     

31

     

452,500

     

473,073

     

-4

 

Total other expense

   

873,032

     

776,577

     

12

     

1,767,380

     

1,709,921

     

3

 

Income before income taxes

   

625,544

     

654,624

     

-4

     

1,260,021

     

1,112,493

     

13

 

Applicable income taxes

   

152,284

     

161,464

     

-6

     

304,019

     

266,723

     

14

 

Net income

 

$

473,260

     

493,160

     

-4

%

 

$

956,002

     

845,770

     

13

%

 

Condensed Consolidated Statement of Income, Five Quarter Trend

   

Three months ended

 
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Dollars in thousands

 

2019

   

2019

   

2018

   

2018

   

2018

 

Interest income

 

$

1,237,913

     

1,226,309

     

1,220,281

     

1,167,375

     

1,128,905

 

Interest expense

   

196,432

     

176,249

     

161,321

     

138,337

     

120,118

 

Net interest income

   

1,041,481

     

1,050,060

     

1,058,960

     

1,029,038

     

1,008,787

 

Provision for credit losses

   

55,000

     

22,000

     

38,000

     

16,000

     

35,000

 

Net interest income after provision for credit losses

   

986,481

     

1,028,060

     

1,020,960

     

1,013,038

     

973,787

 

Other income

                                       

Mortgage banking revenues

   

107,321

     

95,311

     

92,229

     

88,408

     

92,499

 

Service charges on deposit accounts

   

107,787

     

103,112

     

108,791

     

108,647

     

106,784

 

Trust income

   

144,382

     

132,786

     

135,024

     

133,545

     

137,641

 

Brokerage services income

   

12,478

     

12,476

     

12,781

     

12,267

     

12,629

 

Trading account and foreign exchange gains

   

18,453

     

10,802

     

16,582

     

6,073

     

5,255

 

Gain (loss) on bank investment securities

   

8,911

     

11,841

     

4,219

     

(3,415)

     

2,326

 

Other revenues from operations

   

112,763

     

134,437

     

110,970

     

113,769

     

100,280

 

Total other income

   

512,095

     

500,765

     

480,596

     

459,294

     

457,414

 

Other expense

                                       

Salaries and employee benefits

   

455,737

     

499,200

     

438,928

     

431,371

     

418,537

 

Equipment and net occupancy

   

79,150

     

79,347

     

73,519

     

77,481

     

73,031

 

Outside data processing and software

   

55,234

     

52,417

     

50,206

     

50,678

     

49,712

 

FDIC assessments

   

9,772

     

9,426

     

9,837

     

18,849

     

19,560

 

Advertising and marketing

   

24,046

     

20,275

     

25,910

     

21,784

     

21,768

 

Printing, postage and supplies

   

10,324

     

9,855

     

8,777

     

8,843

     

8,719

 

Amortization of core deposit and other intangible assets

   

5,077

     

5,020

     

5,359

     

6,143

     

6,388

 

Other costs of operations

   

233,692

     

218,808

     

189,626

     

160,830

     

178,862

 

Total other expense

   

873,032

     

894,348

     

802,162

     

775,979

     

776,577

 

Income before income taxes

   

625,544

     

634,477

     

699,394

     

696,353

     

654,624

 

Applicable income taxes

   

152,284

     

151,735

     

153,175

     

170,262

     

161,464

 

Net income

 

$

473,260

     

482,742

     

546,219

     

526,091

     

493,160

 

 

Condensed Consolidated Balance Sheet

   

June 30

           

Dollars in thousands

 

2019

   

2018

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,271,611

     

1,367,594

     

-7

 

%

Interest-bearing deposits at banks

   

8,791,753

     

6,669,985

     

32

   

Federal funds sold

   

     

1,500

     

   

Trading account

   

479,403

     

148,303

     

223

   

Investment securities

   

11,580,249

     

13,283,002

     

-13

   

Loans and leases:

                         

Commercial, financial, etc.

   

23,431,408

     

21,894,857

     

7

   

Real estate - commercial

   

35,194,375

     

34,137,937

     

3

   

Real estate - consumer

   

16,693,737

     

18,310,712

     

-9

   

Consumer

   

14,558,538

     

13,453,944

     

8

   

Total loans and leases, net of unearned discount

   

89,878,058

     

87,797,450

     

2

   

Less: allowance for credit losses

   

1,029,867

     

1,019,248

     

1

   

Net loans and leases

   

88,848,191

     

86,778,202

     

2

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

38,428

     

58,569

     

-34

   

Other assets

   

5,952,148

     

5,525,786

     

8

   

Total assets

 

$

121,554,895

     

118,426,053

     

3

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

30,747,946

     

32,086,191

     

-4

 

%

Interest-bearing deposits

   

59,568,223

     

56,924,970

     

5

   

Deposits at Cayman Islands office

   

1,364,855

     

261,427

     

422

   

Total deposits

   

91,681,024

     

89,272,588

     

3

   

Short-term borrowings

   

4,611,390

     

3,239,416

     

42

   

Accrued interest and other liabilities

   

1,915,147

     

1,953,848

     

-2

   

Long-term borrowings

   

7,655,507

     

8,382,316

     

-9

   

Total liabilities

   

105,863,068

     

102,848,168

     

3

   

Shareholders' equity:

                         

Preferred

   

1,231,500

     

1,231,500

     

   

Common

   

14,460,327

     

14,346,385

     

1

   

Total shareholders' equity

   

15,691,827

     

15,577,885

     

1

   

Total liabilities and shareholders' equity

 

$

121,554,895

     

118,426,053

     

3

 

%

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

       
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Dollars in thousands

 

2019

   

2019

   

2018

   

2018

   

2018

 

ASSETS

                                       

Cash and due from banks

 

$

1,271,611

     

1,267,260

     

1,605,439

     

1,311,611

     

1,367,594

 

Interest-bearing deposits at banks

   

8,791,753

     

7,602,897

     

8,105,197

     

6,523,746

     

6,669,985

 

Federal funds sold

   

     

     

     

     

1,500

 

Trading account

   

479,403

     

276,322

     

185,584

     

125,038

     

148,303

 

Investment securities

   

11,580,249

     

12,536,840

     

12,692,813

     

13,073,881

     

13,283,002

 

Loans and leases:

                                       

Commercial, financial, etc.

   

23,431,408

     

23,090,204

     

22,977,976

     

21,635,394

     

21,894,857

 

Real estate - commercial

   

35,194,375

     

34,690,930

     

34,363,556

     

33,518,375

     

34,137,937

 

Real estate - consumer

   

16,693,737

     

16,769,933

     

17,154,446

     

17,721,399

     

18,310,712

 

Consumer

   

14,558,538

     

14,088,816

     

13,970,499

     

13,805,317

     

13,453,944

 

Total loans and leases, net of unearned discount

   

89,878,058

     

88,639,883

     

88,466,477

     

86,680,485

     

87,797,450

 

Less: allowance for credit losses

   

1,029,867

     

1,019,337

     

1,019,444

     

1,019,488

     

1,019,248

 

Net loans and leases

   

88,848,191

     

87,620,546

     

87,447,033

     

85,660,997

     

86,778,202

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

38,428

     

43,947

     

47,067

     

52,426

     

58,569

 

Other assets

   

5,952,148

     

6,084,281

     

5,421,158

     

5,486,826

     

5,525,786

 

Total assets

 

$

121,554,895

     

120,025,205

     

120,097,403

     

116,827,637

     

118,426,053

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

30,747,946

     

29,966,753

     

32,256,668

     

31,773,560

     

32,086,191

 

Interest-bearing deposits

   

59,568,223

     

59,433,806

     

57,087,998

     

56,919,549

     

56,924,970

 

Deposits at Cayman Islands office

   

1,364,855

     

1,069,191

     

811,906

     

447,287

     

261,427

 

Total deposits

   

91,681,024

     

90,469,750

     

90,156,572

     

89,140,396

     

89,272,588

 

Short-term borrowings

   

4,611,390

     

3,602,566

     

4,398,378

     

1,310,110

     

3,239,416

 

Accrued interest and other liabilities

   

1,915,147

     

1,889,336

     

1,637,348

     

1,800,778

     

1,953,848

 

Long-term borrowings

   

7,655,507

     

8,476,024

     

8,444,914

     

9,140,268

     

8,382,316

 

Total liabilities

   

105,863,068

     

104,437,676

     

104,637,212

     

101,391,552

     

102,848,168

 

Shareholders' equity:

                                       

Preferred

   

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

 

Common

   

14,460,327

     

14,356,029

     

14,228,691

     

14,204,585

     

14,346,385

 

Total shareholders' equity

   

15,691,827

     

15,587,529

     

15,460,191

     

15,436,085

     

15,577,885

 

Total liabilities and shareholders' equity

 

$

121,554,895

     

120,025,205

     

120,097,403

     

116,827,637

     

118,426,053

 

 

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, 2019 from

   

 

June 30,

 

 

Change

 

Dollars in millions

 

 

2019

   

2018

   

 

2019

   

June 30,

 

 

March 31,

   

2019

 

2018

 

in

 
   

Balance

 

 

Rate

   

 

Balance

 

Rate

   

 

Balance

 

 

Rate

   

 

2018

 

 

2019

   

Balance

 

 

Rate

 

 

Balance

 

 

Rate

 

balance

 

ASSETS

                                                                 

Interest-bearing deposits at banks

 

$

6,122

 

2.38

 

%

 

4,890

 

1.79

 

%

 

4,605

 

2.41

 

%

 

25

%

33

%

 

$

5,368

 

2.39

 

%

4,916

 

 

1.66

 

%

 

9

 

%

Federal funds sold

   

1

 

2.83

   

1

 

2.23

   

 

   

 

     

1

 

2.83

 

 

2

 

 

1.91

 

 

-69

 

Trading account

   

68

 

2.20

   

57

 

2.92

   

65

 

3.40

   

19

 

4

     

66

 

2.79

 

 

55

 

 

2.96

 

 

20

 

Investment securities

   

12,170

 

2.49

   

13,856

 

2.38

   

12,949

 

2.52

   

-12

 

-6

     

12,557

 

2.51

 

 

14,164

 

 

2.35

 

 

-11

 

Loans and leases, net of unearned discount

                                                                 

Commercial, financial, etc.

   

23,335

 

4.97

   

21,709

 

4.49

   

23,010

 

5.07

   

7

 

1

     

23,173

 

5.02

 

 

21,628

 

 

4.39

 

 

7

 

Real estate - commercial

   

34,768

 

5.30

   

33,687

 

4.95

   

34,524

 

5.34

   

3

 

1

     

34,647

 

5.32

 

 

33,670

 

 

4.84

 

 

3

 

Real estate - consumer

   

16,723

 

4.29

   

18,644

 

4.15

   

16,939

 

4.37

   

-10

 

-1

     

16,830

 

4.33

 

 

18,957

 

 

4.11

 

 

-11

 

Consumer

   

14,324

 

5.53

   

13,366

 

5.14

   

14,004

 

5.51

   

7

 

2

     

14,165

 

5.52

 

 

13,330

 

 

5.07

 

 

6

 

Total loans and leases, net

   

89,150

 

5.09

   

87,406

 

4.73

   

88,477

 

5.15

   

2

 

1

     

88,815

 

5.12

 

 

87,585

 

 

4.64

 

 

1

 

Total earning assets

   

107,511

 

4.64

   

106,210

 

4.28

   

106,096

 

4.71

   

1

 

1

     

106,807

 

4.68

 

 

106,722

 

 

4.20

 

 

 

Goodwill

   

4,593

       

4,593

       

4,593

       

 

     

4,593

     

 

4,593

     

 

 

Core deposit and other intangible assets

   

41

       

62

       

45

       

-33

 

-8

     

43

     

 

65

     

 

-34

 

Other assets

   

6,342

       

5,548

       

6,105

       

14

 

4

     

6,224

     

 

5,641

     

 

10

 

Total assets

 

$

118,487

       

116,413

       

116,839

       

2

%

1

%

 

$

117,667

     

 

117,021

     

 

1

 

%

                                                                   

LIABILITIES AND SHAREHOLDERS'
EQUITY

                                                                 

Interest-bearing deposits

                                                                 

Savings and interest-checking deposits

 

$

53,495

 

.69

   

52,547

 

.37

   

52,095

 

.59

   

2

%

3

%

 

$

52,799

 

.64

 

 

52,526

 

 

.34

 

 

1

 

%

Time deposits

   

6,530

 

1.53

   

5,997

 

.76

   

6,351

 

1.35

   

9

 

3

     

6,441

 

1.44

 

 

6,158

 

 

.73

 

 

5

 

Deposits at Cayman Islands office

   

1,247

 

1.94

   

225

 

.97

   

972

 

1.98

   

454

 

28

     

1,110

 

1.96

 

 

236

 

 

.79

 

 

370

 

Total interest-bearing deposits

   

61,272

 

.80

   

58,769

 

.41

   

59,418

 

.70

   

4

 

3

     

60,350

 

.75

 

 

58,920

 

 

.38

 

 

2

 

Short-term borrowings

   

1,263

 

2.51

   

353

 

1.57

   

1,091

 

2.49

   

257

 

16

     

1,177

 

2.50

 

 

317

 

 

1.44

 

 

272

 

Long-term borrowings

   

8,278

 

3.20

   

8,480

 

2.75

   

8,494

 

3.23

   

-2

 

-3

     

8,386

 

3.21

 

 

8,543

 

 

2.64

 

 

-2

 

Total interest-bearing liabilities

   

70,813

 

1.11

   

67,602

 

.71

   

69,003

 

1.04

   

5

 

3

     

69,913

 

1.08

 

 

67,780

 

 

.68

 

 

3

 

Noninterest-bearing deposits

   

30,099

       

31,426

       

30,315

       

-4

 

-1

     

30,207

     

 

31,734

     

 

-5

 

Other liabilities

   

1,945

       

1,852

       

1,952

       

5

 

     

1,948

     

 

1,713

     

 

14

 

Total liabilities

   

102,857

       

100,880

       

101,270

       

2

 

2

     

102,068

     

 

101,227

     

 

1

 

Shareholders' equity

   

15,630

       

15,533

       

15,569

       

1

 

     

15,599

     

 

15,794

     

 

-1

 

Total liabilities and shareholders' equity

 

$

118,487

       

116,413

       

116,839

       

2

%

1

%

 

$

117,667

     

 

117,021

     

1

 

%

                                                                   

Net interest spread

       

3.53

       

3.57

       

3.67

                   

3.60

     

 

3.52

     

Contribution of interest-free funds

       

.38

       

.26

       

.37

                   

.37

     

 

.25

     

Net interest margin

       

3.91

 

%

     

3.83

 

%

     

4.04

 

%

                 

3.97

 

%

   

 

3.77

 

%

   

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

   

Three months ended

   

Six months ended

 
   

June 30

   

June 30

 
   

2019

   

2018

   

2019

   

2018

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

473,260

     

493,160

     

956,002

     

845,770

 

Amortization of core deposit and other intangible assets (1)

   

3,741

     

4,709

     

7,439

     

9,597

 

Net operating income

 

$

477,001

     

497,869

     

963,441

     

855,367

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.34

     

3.26

     

6.69

     

5.48

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.05

     

.06

 

Diluted net operating earnings per common share

 

$

3.37

     

3.29

     

6.74

     

5.54

 
                                 

Other expense

                               

Other expense

 

$

873,032

     

776,577

     

1,767,380

     

1,709,921

 

Amortization of core deposit and other intangible assets

   

(5,077)

     

(6,388)

     

(10,097)

     

(13,020)

 

Noninterest operating expense

 

$

867,955

     

770,189

     

1,757,283

     

1,696,901

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

867,955

     

770,189

     

1,757,283

     

1,696,901

 

Taxable-equivalent net interest income

   

1,047,406

     

1,014,184

     

2,103,433

     

1,994,510

 

Other income

   

512,095

     

457,414

     

1,012,860

     

916,110

 

Less:  Gain (loss) on bank investment securities

   

8,911

     

2,326

     

20,752

     

(7,105)

 

Denominator

 

$

1,550,590

     

1,469,272

     

3,095,541

     

2,917,725

 

Efficiency ratio

   

55.98

%

   

52.42

%

   

56.77

%

   

58.16

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

118,487

     

116,413

     

117,667

     

117,021

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(41)

     

(62)

     

(43)

     

(65)

 

Deferred taxes

   

11

     

17

     

11

     

17

 

Average tangible assets

 

$

113,864

     

111,775

     

113,042

     

112,380

 

Average common equity

                               

Average total equity

 

$

15,630

     

15,533

     

15,599

     

15,794

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,398

     

14,301

     

14,367

     

14,562

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(41)

     

(62)

     

(43)

     

(65)

 

Deferred taxes

   

11

     

17

     

11

     

17

 

Average tangible common equity

 

$

9,775

     

9,663

     

9,742

     

9,921

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

121,555

     

118,426

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(38)

     

(59)

                 

Deferred taxes

   

10

     

16

                 

Total tangible assets

 

$

116,934

     

113,790

                 

Total common equity

                               

Total equity

 

$

15,692

     

15,578

                 

Preferred stock

   

(1,232)

     

(1,232)

                 

Undeclared dividends - cumulative preferred stock

   

(3)

     

(3)

                 

Common equity, net of undeclared cumulative preferred dividends

   

14,457

     

14,343

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(38)

     

(59)

                 

Deferred taxes

   

10

     

16

                 

Total tangible common equity

 

$

9,836

     

9,707

                 

____________________

(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,

 
   

2019

   

2019

   

2018

   

2018

   

2018

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

473,260

     

482,742

     

546,219

     

526,091

     

493,160

 

Amortization of core deposit and other intangible assets (1)

   

3,741

     

3,698

     

3,950

     

4,528

     

4,709

 

Net operating income

 

$

477,001

     

486,440

     

550,169

     

530,619

     

497,869

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.34

     

3.35

     

3.76

     

3.53

     

3.26

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.03

     

.03

     

.03

 

Diluted net operating earnings per common share

 

$

3.37

     

3.38

     

3.79

     

3.56

     

3.29

 
                                         

Other expense

                                       

Other expense

 

$

873,032

     

894,348

     

802,162

     

775,979

     

776,577

 

Amortization of core deposit and other intangible assets

   

(5,077)

     

(5,020)

     

(5,359)

     

(6,143)

     

(6,388)

 

Noninterest operating expense

 

$

867,955

     

889,328

     

796,803

     

769,836

     

770,189

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

867,955

     

889,328

     

796,803

     

769,836

     

770,189

 

Taxable-equivalent net interest income

   

1,047,406

     

1,056,027

     

1,064,918

     

1,034,771

     

1,014,184

 

Other income

   

512,095

     

500,765

     

480,596

     

459,294

     

457,414

 

Less:  Gain (loss) on bank investment securities

   

8,911

     

11,841

     

4,219

     

(3,415)

     

2,326

 

Denominator

 

$

1,550,590

     

1,544,951

     

1,541,295

     

1,497,480

     

1,469,272

 

Efficiency ratio

   

55.98

%

   

57.56

%

   

51.70

%

   

51.41

%

   

52.42

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

118,487

     

116,839

     

117,799

     

115,997

     

116,413

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(41)

     

(45)

     

(50)

     

(55)

     

(62)

 

Deferred taxes

   

11

     

12

     

13

     

14

     

17

 

Average tangible assets

 

$

113,864

     

112,213

     

113,169

     

111,363

     

111,775

 

Average common equity

                                       

Average total equity

 

$

15,630

     

15,569

     

15,389

     

15,549

     

15,533

 

Preferred stock

   

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,398

     

14,337

     

14,157

     

14,317

     

14,301

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(41)

     

(45)

     

(50)

     

(55)

     

(62)

 

Deferred taxes

   

11

     

12

     

13

     

14

     

17

 

Average tangible common equity

 

$

9,775

     

9,711

     

9,527

     

9,683

     

9,663

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

121,555

     

120,025

     

120,097

     

116,828

     

118,426

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(38)

     

(44)

     

(47)

     

(52)

     

(59)

 

Deferred taxes

   

10

     

12

     

13

     

14

     

16

 

Total tangible assets

 

$

116,934

     

115,400

     

115,470

     

112,197

     

113,790

 

Total common equity

                                       

Total equity

 

$

15,692

     

15,588

     

15,460

     

15,436

     

15,578

 

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

   

14,457

     

14,353

     

14,225

     

14,201

     

14,343

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(38)

     

(44)

     

(47)

     

(52)

     

(59)

 

Deferred taxes

   

10

     

12

     

13

     

14

     

16

 

Total tangible common equity

 

$

9,836

     

9,728

     

9,598

     

9,570

     

9,707

 

________________

(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