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M&T Bank Corporation Announces Third Quarter Results

BUFFALO, N.Y., Oct. 17, 2019 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2019.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.47 in the third quarter of 2019, compared with $3.53 in the year-earlier quarter. GAAP-basis net income in the recent quarter was $480 million, compared with $526 million in the third quarter of 2018. GAAP-basis diluted earnings per common share and net income for the second quarter of 2019 were $3.34 and $473 million, respectively. GAAP-basis net income for the third quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.58% and 12.73%, respectively, compared with 1.80% and 14.08%, respectively, in the corresponding 2018 quarter and 1.60% and 12.68%, respectively, in the second quarter of 2019. For the nine-month period ended September 30, 2019, diluted earnings per common share were $10.16, up 13% from $9.00 in the similar 2018 period. GAAP-basis net income for the first nine months of 2019 totaled $1.44 billion, 5% higher than $1.37 billion in the year-earlier period. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the nine-month period ended September 30, 2019 was 1.62% and 12.85%, respectively, improved from 1.57% and 12.16%, respectively, in the corresponding 2018 period.

Commenting on M&T's third quarter results, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "Overall, M&T's results were in line with our expectations given the current interest rate and economic environment. During the recent quarter we realized increased total revenues, highlighted by 28% growth in our mortgage banking businesses. Higher operating expenses reflecting investments in mortgage banking and technology accompanied the revenue growth."

Earnings Highlights

 
                                         
                           

Change 3Q19 vs.

 

($ in millions, except per share data)

 

3Q19

   

3Q18

   

2Q19

   

3Q18

   

2Q19

 
                                         

Net income

 

$

480

   

$

526

   

$

473

     

-9

%

   

1

%

Net income available to common shareholders ̶ diluted

 

$

461

   

$

505

   

$

453

     

-9

%

   

2

%

Diluted earnings per common share

 

$

3.47

   

$

3.53

   

$

3.34

     

-2

%

   

4

%

Annualized return on average assets

   

1.58

%

   

1.80

%

   

1.60

%

               

Annualized return on average common equity

   

12.73

%

   

14.08

%

   

12.68

%

               

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 $3.50 in the third quarter of 2019, compared with $3.56 in the year-earlier quarter and $3.37 in the second quarter of 2019. Net operating income in the recent quarter was $484 million, compared with $531 million in 2018's third quarter and $477 million in the second quarter of 2019. 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 1.66% and 18.85%, respectively, compared with 1.89% and 21.00%, respectively, in the similar 2018 quarter and 1.68% and 18.83%, respectively, in 2019's second quarter.

Diluted net operating earnings per common share in the first nine months of 2019 rose 13% to $10.24 from $9.10 in the corresponding period of 2018. Net operating income during the nine-month period ended September 30, 2019 was $1.45 billion, up 4% from $1.39 billion 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 1.70% and 19.07%, respectively, in the first nine months of 2019, compared with 1.65% and 18.09%, respectively, in the similar period of 2018.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $1.04 billion in the third quarter of 2019, little changed from the year-earlier quarter. The impact of higher average earning assets, which rose to $108.6 billion in the recent quarter from $105.8 billion in the year-earlier period, was offset by a 10 basis point narrowing of the net interest margin, to 3.78% in 2019's third quarter from 3.88% in the third quarter of 2018. Taxable-equivalent net interest income in the recent quarter declined $12 million from $1.05 billion in the second quarter of 2019 due to a 13 basis point narrowing of the net interest margin that was largely offset by higher average earning assets.

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 3Q19 vs.

 

($ in millions)

 

3Q19

   

3Q18

   

2Q19

   

3Q18

   

2Q19

 
                                         

Average earning assets

 

$

108,643

   

$

105,835

   

$

107,511

     

3

%

   

1

%

Net interest income ̶ taxable-equivalent

 

$

1,035

   

$

1,035

   

$

1,047

     

     

-1

%

Net interest margin

   

3.78

%

   

3.88

%

   

3.91

%

               

Provision for Credit Losses/Asset Quality. The provision for credit losses was $45 million in the third quarter of 2019, compared with $16 million in the year-earlier quarter and $55 million in the second quarter of 2019. Net loan charge-offs were $36 million during the recent quarter, compared with $16 million in the third quarter of 2018 and $44 million in 2019's second quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .16% and .07% in the third quarters of 2019 and 2018, respectively, and .20% in the second quarter of 2019.

Loans classified as nonaccrual totaled $1.01 billion or 1.12% of total loans outstanding at September 30, 2019, compared with $871 million or 1.00% a year earlier and $865 million or .96% at June 30, 2019. The higher balance at September 30, 2019 reflects the addition of a commercial loan for $119 million to a wholesale distributor. Assets taken in foreclosure of defaulted loans were $80 million at September 30, 2019, compared with $87 million and $73 million at September 30, 2018 and June 30, 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 increased to $1.04 billion or 1.16% of loans outstanding at September 30, 2019, compared with $1.02 billion or 1.18% at September 30, 2018 and $1.03 billion or 1.15% at June 30, 2019.

Asset Quality Metrics

 
                                         
                           

Change 3Q19 vs.

 

($ in millions)

 

3Q19

   

3Q18

   

2Q19

   

3Q18

   

2Q19

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

1,005

   

$

871

   

$

865

     

15

%

   

16

%

Real estate and other foreclosed assets

 

$

80

   

$

87

   

$

73

     

-9

%

   

9

%

Total nonperforming assets

 

$

1,085

   

$

958

   

$

938

     

13

%

   

16

%

Accruing loans past due 90 days or more (1)

 

$

461

   

$

254

   

$

349

     

81

%

   

32

%

Nonaccrual loans as % of loans outstanding

   

1.12

%

   

1.00

%

   

.96

%

               
                                         

Allowance for credit losses

 

$

1,038

   

$

1,019

   

$

1,030

     

2

%

   

1

%

Allowance for credit losses as % of loans outstanding

   

1.16

%

   

1.18

%

   

1.15

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

45

   

$

16

   

$

55

     

181

%

   

-18

%

Net charge-offs

 

$

36

   

$

16

   

$

44

     

131

%

   

-18

%

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

   

.16

%

   

.07

%

   

.20

%

               
 

__________________

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

Noninterest Income and Expense. Noninterest income totaled $528 million in the third quarter of 2019, up 15% from $459 million in the year-earlier quarter and 3% higher than $512 million in the second quarter of 2019. The recent quarter's improvement as compared with the earlier quarters was due to significantly higher residential and commercial mortgage banking revenues.

Noninterest Income

 
                                         
                           

Change 3Q19 vs.

 

($ in millions)

 

3Q19

   

3Q18

   

2Q19

   

3Q18

   

2Q19

 
                                         

Mortgage banking revenues

 

$

137

   

$

88

   

$

107

     

55

%

   

28

%

Service charges on deposit accounts

   

111

     

109

     

108

     

2

%

   

3

%

Trust income

   

144

     

133

     

145

     

8

%

   

 

Brokerage services income

   

12

     

12

     

12

     

-2

%

   

-3

%

Trading account and foreign exchange gains

   

16

     

6

     

18

     

165

%

   

-13

%

Gain (loss) on bank investment securities

   

4

     

(3)

     

9

     

     

-58

%

Other revenues from operations

   

104

     

114

     

113

     

-9

%

   

-8

%

Total

 

$

528

   

$

459

   

$

512

     

15

%

   

3

%

Noninterest expense aggregated $878 million in the recent quarter, $776 million in 2018's third quarter and $873 million in the second 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 $873 million in the recent quarter, $770 million in the third quarter of 2018 and $868 million in the second quarter of 2019. Significant factors contributing to the higher level of noninterest expenses in the recent quarter were increased costs for salaries and employee benefits, professional services, and additions to the valuation allowance for capitalized mortgage servicing rights. Such additions were $14 million in the recent quarter and $9 million in the second quarter of 2019 and reflect the impact of lower interest rates on the valuation of servicing rights. M&T recognized a $48 million charge in the second quarter of 2019 associated with the sale of an equity investment in an asset manager.

Noninterest Expense

 
                                         
                           

Change 3Q19 vs.

 

($ in millions)

 

3Q19

   

3Q18

   

2Q19

   

3Q18

   

2Q19

 
                                         

Salaries and employee benefits

 

$

477

   

$

431

   

$

456

     

11

%

   

5

%

Equipment and net occupancy

   

83

     

77

     

79

     

7

%

   

4

%

Outside data processing and software

   

60

     

51

     

55

     

19

%

   

9

%

FDIC assessments

   

10

     

19

     

10

     

-47

%

   

1

%

Advertising and marketing

   

22

     

22

     

24

     

1

%

   

-8

%

Printing, postage and supplies

   

10

     

9

     

10

     

15

%

   

-1

%

Amortization of core deposit and other intangible assets

   

5

     

6

     

5

     

-17

%

   

 

Other costs of operations

   

211

     

161

     

234

     

31

%

   

-10

%

Total

 

$

878

   

$

776

   

$

873

     

13

%

   

1

%

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 55.9% in the third quarter of 2019, 51.4% in the year-earlier quarter and 56.0% in the second quarter of 2019.

Balance Sheet. M&T had total assets of $125.5 billion at September 30, 2019, compared with $116.8 billion and $121.6 billion at September 30, 2018 and June 30, 2019, respectively. Loans and leases, net of unearned discount, were $89.8 billion at the recent quarter-end, $86.7 billion at September 30, 2018 and $89.9 billion at June 30, 2019. Total deposits were $95.1 billion at September 30, 2019, up from $89.1 billion a year earlier and $91.7 billion at June 30, 2019. The higher level of deposits at the recent quarter-end as compared with the prior dates reflects increased deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $15.8 billion, or 12.6% of total assets at September 30, 2019, compared with $15.4 billion, or 13.21% at September 30, 2018 and $15.7 billion, or 12.91% at June 30, 2019. Common shareholders' equity was $14.5 billion, or $109.84 per share, at September 30, 2019, compared with $14.2 billion, or $100.38 per share, a year-earlier and $14.5 billion, or $107.73 per share, at June 30, 2019. Tangible equity per common share was $74.93 at September 30, 2019, compared with $67.64 at September 30, 2018 and $73.29 at June 30, 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 9.81% at September 30, 2019.

In accordance with its capital plan, M&T repurchased 1,933,000 shares of its common stock during the recent quarter at an average cost per share of $155.18, for a total cost of $300 million. In the aggregate, during the first nine months of 2019, M&T repurchased 6,533,000 shares of common stock at a total cost of $1.07 billion.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877) 780-2276. International participants, using any applicable international calling codes, may dial (973) 582-2700. Callers should reference M&T Bank Corporation or the conference ID #9382126. 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, October 24, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #9382126. 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

           

Nine months ended

         
   

September 30

           

September 30

         

Amounts in thousands, except per share

 

2019

   

2018

   

Change

   

2019

   

2018

   

Change

 

Performance

                                               

Net income

 

$

480,081

     

526,091

     

-9

%

 

$

1,436,083

     

1,371,861

     

5

%

Net income available to common shareholders

   

461,410

     

505,365

     

-9

%

   

1,376,129

     

1,310,703

     

5

%

Per common share:

                                               

Basic earnings

 

$

3.47

     

3.54

     

-2

%

 

$

10.16

     

9.01

     

13

%

Diluted earnings

   

3.47

     

3.53

     

-2

%

   

10.16

     

9.00

     

13

%

Cash dividends

 

$

1.00

     

1.00

     

   

$

3.00

     

2.55

     

18

%

Common shares outstanding:

                                               

Average - diluted (1)

   

132,999

     

142,976

     

-7

%

   

135,443

     

145,605

     

-7

%

Period end (2)

   

132,277

     

141,479

     

-7

%

   

132,277

     

141,479

     

-7

%

Return on (annualized):

                                               

Average total assets

   

1.58

%

   

1.80

%

           

1.62

%

   

1.57

%

       

Average common shareholders' equity

   

12.73

%

   

14.08

%

           

12.85

%

   

12.16

%

       

Taxable-equivalent net interest income

 

$

1,035,469

     

1,034,771

     

   

$

3,138,902

     

3,029,281

     

4

%

Yield on average earning assets

   

4.51

%

   

4.40

%

           

4.62

%

   

4.26

%

       

Cost of interest-bearing liabilities

   

1.10

%

   

.82

%

           

1.09

%

   

.72

%

       

Net interest spread

   

3.41

%

   

3.58

%

           

3.53

%

   

3.54

%

       

Contribution of interest-free funds

   

.37

%

   

.30

%

           

.38

%

   

.27

%

       

Net interest margin

   

3.78

%

   

3.88

%

           

3.91

%

   

3.81

%

       

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

   

.16

%

   

.07

%

           

.15

%

   

.14

%

       

Net operating results (3)

                                               

Net operating income

 

$

483,830

     

530,619

     

-9

%

 

$

1,447,271

     

1,385,986

     

4

%

Diluted net operating earnings per common share

   

3.50

     

3.56

     

-2

%

   

10.24

     

9.10

     

13

%

Return on (annualized):

                                               

Average tangible assets

   

1.66

%

   

1.89

%

           

1.70

%

   

1.65

%

       

Average tangible common equity

   

18.85

%

   

21.00

%

           

19.07

%

   

18.09

%

       

Efficiency ratio

   

55.95

%

   

51.41

%

           

56.49

%

   

55.87

%

       
                                                 
   

At September 30

                             

Loan quality

 

2019

   

2018

   

Change

                         

Nonaccrual loans

 

$

1,005,249

     

870,832

     

15

%

                       

Real estate and other foreclosed assets

   

79,735

     

87,333

     

-9

%

                       

Total nonperforming assets

 

$

1,084,984

     

958,165

     

13

%

                       

Accruing loans past due 90 days or more (4)

 

$

461,162

     

254,360

     

81

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

43,144

     

33,570

     

29

%

                       

Accruing loans past due 90 days or more

   

434,132

     

195,450

     

122

%

                       

Renegotiated loans

 

$

240,781

     

242,892

     

-1

%

                       

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

 

$

40,733

     

44,223

     

-8

%

                       

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

$

453,382

     

572,979

     

-21

%

                       

Carrying amount

   

253,496

     

325,980

     

-22

%

                       

Nonaccrual loans to total net loans

   

1.12

%

   

1.00

%

                               

Allowance for credit losses to total loans

   

1.16

%

   

1.18

%

                               
                                                 

__________________

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)

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

(5)

Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6)

Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

Financial Highlights, Five Quarter Trend

   

Three months ended

 
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Amounts in thousands, except per share

 

2019

   

2019

   

2019

   

2018

   

2018

 

Performance

                                       

Net income

 

$

480,081

     

473,260

     

482,742

     

546,219

     

526,091

 

Net income available to common shareholders

   

461,410

     

452,633

     

462,086

     

525,328

     

505,365

 

Per common share:

                                       

Basic earnings

 

$

3.47

     

3.34

     

3.35

     

3.76

     

3.54

 

Diluted earnings

   

3.47

     

3.34

     

3.35

     

3.76

     

3.53

 

Cash dividends

 

$

1.00

     

1.00

     

1.00

     

1.00

     

1.00

 

Common shares outstanding:

                                       

Average - diluted (1)

   

132,999

     

135,464

     

137,920

     

139,838

     

142,976

 

Period end (2)

   

132,277

     

134,200

     

136,637

     

138,534

     

141,479

 

Return on (annualized):

                                       

Average total assets

   

1.58

%

   

1.60

%

   

1.68

%

   

1.84

%

   

1.80

%

Average common shareholders' equity

   

12.73

%

   

12.68

%

   

13.14

%

   

14.80

%

   

14.08

%

Taxable-equivalent net interest income

 

$

1,035,469

     

1,047,406

     

1,056,027

     

1,064,918

     

1,034,771

 

Yield on average earning assets

   

4.51

%

   

4.64

%

   

4.71

%

   

4.51

%

   

4.40

%

Cost of interest-bearing liabilities

   

1.10

%

   

1.11

%

   

1.04

%

   

.94

%

   

.82

%

Net interest spread

   

3.41

%

   

3.53

%

   

3.67

%

   

3.57

%

   

3.58

%

Contribution of interest-free funds

   

.37

%

   

.38

%

   

.37

%

   

.35

%

   

.30

%

Net interest margin

   

3.78

%

   

3.91

%

   

4.04

%

   

3.92

%

   

3.88

%

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

   

.16

%

   

.20

%

   

.10

%

   

.17

%

   

.07

%

Net operating results (3)

                                       

Net operating income

 

$

483,830

     

477,001

     

486,440

     

550,169

     

530,619

 

Diluted net operating earnings per common share

   

3.50

     

3.37

     

3.38

     

3.79

     

3.56

 

Return on (annualized):

                                       

Average tangible assets

   

1.66

%

   

1.68

%

   

1.76

%

   

1.93

%

   

1.89

%

Average tangible common equity

   

18.85

%

   

18.83

%

   

19.56

%

   

22.16

%

   

21.00

%

Efficiency ratio

   

55.95

%

   

55.98

%

   

57.56

%

   

51.70

%

   

51.41

%

                                         
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Loan quality

 

2019

   

2019

   

2019

   

2018

   

2018

 

Nonaccrual loans

 

$

1,005,249

     

865,384

     

881,611

     

893,608

     

870,832

 

Real estate and other foreclosed assets

   

79,735

     

72,907

     

81,335

     

78,375

     

87,333

 

Total nonperforming assets

 

$

1,084,984

     

938,291

     

962,946

     

971,983

     

958,165

 

Accruing loans past due 90 days or more (4)

 

$

461,162

     

348,725

     

244,257

     

222,527

     

254,360

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

43,144

     

36,765

     

35,481

     

34,667

     

33,570

 

Accruing loans past due 90 days or more

   

434,132

     

320,305

     

194,510

     

192,443

     

195,450

 

Renegotiated loans

 

$

240,781

     

254,332

     

267,952

     

245,367

     

242,892

 

Accruing loans acquired at a discount past due 90 days or

more (5)

 

$

40,733

     

43,079

     

43,995

     

39,750

     

44,223

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

$

453,382

     

473,834

     

495,163

     

529,520

     

572,979

 

Carrying amount

   

253,496

     

263,025

     

278,783

     

303,305

     

325,980

 

Nonaccrual loans to total net loans

   

1.12

%

   

.96

%

   

.99

%

   

1.01

%

   

1.00

%

Allowance for credit losses to total loans

   

1.16

%

   

1.15

%

   

1.15

%

   

1.15

%

   

1.18

%

                                         

______________________

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)

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

(5)

Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6)

Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

Condensed Consolidated Statement of Income

   

Three months ended

           

Nine months ended

         
   

September 30

           

September 30

         

Dollars in thousands

 

2019

   

2018

   

Change

   

2019

   

2018

   

Change

 

Interest income

 

$

1,229,469

     

1,167,375

     

5

%

 

$

3,693,691

     

3,378,430

     

9

%

Interest expense

   

199,579

     

138,337

     

44

     

572,260

     

365,088

     

57

 

Net interest income

   

1,029,890

     

1,029,038

     

     

3,121,431

     

3,013,342

     

4

 

Provision for credit losses

   

45,000

     

16,000

     

181

     

122,000

     

94,000

     

30

 

Net interest income after provision for credit losses

   

984,890

     

1,013,038

     

-3

     

2,999,431

     

2,919,342

     

3

 

Other income

                                               

Mortgage banking revenues

   

137,004

     

88,408

     

55

     

339,636

     

268,213

     

27

 

Service charges on deposit accounts

   

111,092

     

108,647

     

2

     

321,991

     

320,546

     

 

Trust income

   

143,915

     

133,545

     

8

     

421,083

     

402,561

     

5

 

Brokerage services income

   

12,077

     

12,267

     

-2

     

37,031

     

38,288

     

-3

 

Trading account and foreign exchange gains

   

16,072

     

6,073

     

165

     

45,327

     

15,965

     

184

 

Gain (loss) on bank investment securities

   

3,737

     

(3,415)

     

     

24,489

     

(10,520)

     

 

Other revenues from operations

   

103,882

     

113,769

     

-9

     

351,082

     

340,351

     

3

 

Total other income

   

527,779

     

459,294

     

15

     

1,540,639

     

1,375,404

     

12

 

Other expense

                                               

Salaries and employee benefits

   

476,780

     

431,371

     

11

     

1,431,717

     

1,313,336

     

9

 

Equipment and net occupancy

   

82,690

     

77,481

     

7

     

241,187

     

225,309

     

7

 

Outside data processing and software

   

60,360

     

50,678

     

19

     

168,011

     

148,819

     

13

 

FDIC assessments

   

9,906

     

18,849

     

-47

     

29,104

     

58,689

     

-50

 

Advertising and marketing

   

22,088

     

21,784

     

1

     

66,409

     

59,800

     

11

 

Printing, postage and supplies

   

10,201

     

8,843

     

15

     

30,380

     

26,881

     

13

 

Amortization of core deposit and other
intangible assets

   

5,088

     

6,143

     

-17

     

15,185

     

19,163

     

-21

 

Other costs of operations

   

210,506

     

160,830

     

31

     

663,006

     

633,903

     

5

 

Total other expense

   

877,619

     

775,979

     

13

     

2,644,999

     

2,485,900

     

6

 

Income before income taxes

   

635,050

     

696,353

     

-9

     

1,895,071

     

1,808,846

     

5

 

Applicable income taxes

   

154,969

     

170,262

     

-9

     

458,988

     

436,985

     

5

 

Net income

 

$

480,081

     

526,091

     

-9

%

 

$

1,436,083

     

1,371,861

     

5

%

Condensed Consolidated Statement of Income, Five Quarter Trend

   

Three months ended

 
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Dollars in thousands

 

2019

   

2019

   

2019

   

2018

   

2018

 

Interest income

 

$

1,229,469

     

1,237,913

     

1,226,309

     

1,220,281

     

1,167,375

 

Interest expense

   

199,579

     

196,432

     

176,249

     

161,321

     

138,337

 

Net interest income

   

1,029,890

     

1,041,481

     

1,050,060

     

1,058,960

     

1,029,038

 

Provision for credit losses

   

45,000

     

55,000

     

22,000

     

38,000

     

16,000

 

Net interest income after provision for credit losses

   

984,890

     

986,481

     

1,028,060

     

1,020,960

     

1,013,038

 

Other income

                                       

Mortgage banking revenues

   

137,004

     

107,321

     

95,311

     

92,229

     

88,408

 

Service charges on deposit accounts

   

111,092

     

107,787

     

103,112

     

108,791

     

108,647

 

Trust income

   

143,915

     

144,382

     

132,786

     

135,024

     

133,545

 

Brokerage services income

   

12,077

     

12,478

     

12,476

     

12,781

     

12,267

 

Trading account and foreign exchange gains

   

16,072

     

18,453

     

10,802

     

16,582

     

6,073

 

Gain (loss) on bank investment securities

   

3,737

     

8,911

     

11,841

     

4,219

     

(3,415)

 

Other revenues from operations

   

103,882

     

112,763

     

134,437

     

110,970

     

113,769

 

Total other income

   

527,779

     

512,095

     

500,765

     

480,596

     

459,294

 

Other expense

                                       

Salaries and employee benefits

   

476,780

     

455,737

     

499,200

     

438,928

     

431,371

 

Equipment and net occupancy

   

82,690

     

79,150

     

79,347

     

73,519

     

77,481

 

Outside data processing and software

   

60,360

     

55,234

     

52,417

     

50,206

     

50,678

 

FDIC assessments

   

9,906

     

9,772

     

9,426

     

9,837

     

18,849

 

Advertising and marketing

   

22,088

     

24,046

     

20,275

     

25,910

     

21,784

 

Printing, postage and supplies

   

10,201

     

10,324

     

9,855

     

8,777

     

8,843

 

Amortization of core deposit and other
intangible assets

   

5,088

     

5,077

     

5,020

     

5,359

     

6,143

 

Other costs of operations

   

210,506

     

233,692

     

218,808

     

189,626

     

160,830

 

Total other expense

   

877,619

     

873,032

     

894,348

     

802,162

     

775,979

 

Income before income taxes

   

635,050

     

625,544

     

634,477

     

699,394

     

696,353

 

Applicable income taxes

   

154,969

     

152,284

     

151,735

     

153,175

     

170,262

 

Net income

 

$

480,081

     

473,260

     

482,742

     

546,219

     

526,091

 

Condensed Consolidated Balance Sheet

   

September 30

           

Dollars in thousands

 

2019

   

2018

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,818,861

     

1,311,611

     

39

 

%

Interest-bearing deposits at banks

   

12,495,524

     

6,523,746

     

92

   

Federal funds sold

   

200

     

     

   

Trading account

   

614,256

     

125,038

     

391

   

Investment securities

   

10,677,583

     

13,073,881

     

-18

   

Loans and leases:

                         

Commercial, financial, etc.

   

23,201,372

     

21,635,394

     

7

   

Real estate - commercial

   

34,945,231

     

33,518,375

     

4

   

Real estate - consumer

   

16,500,955

     

17,721,399

     

-7

   

Consumer

   

15,175,635

     

13,805,317

     

10

   

Total loans and leases, net of unearned discount

   

89,823,193

     

86,680,485

     

4

   

Less: allowance for credit losses

   

1,038,437

     

1,019,488

     

2

   

Net loans and leases

   

88,784,756

     

85,660,997

     

4

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

33,339

     

52,426

     

-36

   

Other assets

   

6,483,295

     

5,486,826

     

18

   

Total assets

 

$

125,500,926

     

116,827,637

     

7

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

31,766,724

     

31,773,560

     

 

%

Interest-bearing deposits

   

61,785,212

     

56,919,549

     

9

   

Deposits at Cayman Islands office

   

1,561,997

     

447,287

     

249

   

Total deposits

   

95,113,933

     

89,140,396

     

7

   

Short-term borrowings

   

5,513,896

     

1,310,110

     

321

   

Accrued interest and other liabilities

   

2,090,762

     

1,800,778

     

16

   

Long-term borrowings

   

7,002,524

     

9,140,268

     

-23

   

Total liabilities

   

109,721,115

     

101,391,552

     

8

   

Shareholders' equity:

                         

Preferred

   

1,250,000

     

1,231,500

     

2

   

Common

   

14,529,811

     

14,204,585

     

2

   

Total shareholders' equity

   

15,779,811

     

15,436,085

     

2

   

Total liabilities and shareholders' equity

 

$

125,500,926

     

116,827,637

     

7

 

%

Condensed Consolidated Balance Sheet, Five Quarter Trend

   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Dollars in thousands

 

2019

   

2019

   

2019

   

2018

   

2018

 

ASSETS

                                       

Cash and due from banks

 

$

1,818,861

     

1,271,611

     

1,267,260

     

1,605,439

     

1,311,611

 

Interest-bearing deposits at banks

   

12,495,524

     

8,791,753

     

7,602,897

     

8,105,197

     

6,523,746

 

Federal funds sold

   

200

     

     

     

     

 

Trading account

   

614,256

     

479,403

     

276,322

     

185,584

     

125,038

 

Investment securities

   

10,677,583

     

11,580,249

     

12,536,840

     

12,692,813

     

13,073,881

 

Loans and leases:

                                       

Commercial, financial, etc.

   

23,201,372

     

23,431,408

     

23,090,204

     

22,977,976

     

21,635,394

 

Real estate - commercial

   

34,945,231

     

35,194,375

     

34,690,930

     

34,363,556

     

33,518,375

 

Real estate - consumer

   

16,500,955

     

16,693,737

     

16,769,933

     

17,154,446

     

17,721,399

 

Consumer

   

15,175,635

     

14,558,538

     

14,088,816

     

13,970,499

     

13,805,317

 

Total loans and leases, net of unearned discount

   

89,823,193

     

89,878,058

     

88,639,883

     

88,466,477

     

86,680,485

 

Less: allowance for credit losses

   

1,038,437

     

1,029,867

     

1,019,337

     

1,019,444

     

1,019,488

 

Net loans and leases

   

88,784,756

     

88,848,191

     

87,620,546

     

87,447,033

     

85,660,997

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

33,339

     

38,428

     

43,947

     

47,067

     

52,426

 

Other assets

   

6,483,295

     

5,952,148

     

6,084,281

     

5,421,158

     

5,486,826

 

Total assets

 

$

125,500,926

     

121,554,895

     

120,025,205

     

120,097,403

     

116,827,637

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

31,766,724

     

30,747,946

     

29,966,753

     

32,256,668

     

31,773,560

 

Interest-bearing deposits

   

61,785,212

     

59,568,223

     

59,433,806

     

57,087,998

     

56,919,549

 

Deposits at Cayman Islands office

   

1,561,997

     

1,364,855

     

1,069,191

     

811,906

     

447,287

 

Total deposits

   

95,113,933

     

91,681,024

     

90,469,750

     

90,156,572

     

89,140,396

 

Short-term borrowings

   

5,513,896

     

4,611,390

     

3,602,566

     

4,398,378

     

1,310,110

 

Accrued interest and other liabilities

   

2,090,762

     

1,915,147

     

1,889,336

     

1,637,348

     

1,800,778

 

Long-term borrowings

   

7,002,524

     

7,655,507

     

8,476,024

     

8,444,914

     

9,140,268

 

Total liabilities

   

109,721,115

     

105,863,068

     

104,437,676

     

104,637,212

     

101,391,552

 

Shareholders' equity:

                                       

Preferred

   

1,250,000

     

1,231,500

     

1,231,500

     

1,231,500

     

1,231,500

 

Common

   

14,529,811

     

14,460,327

     

14,356,029

     

14,228,691

     

14,204,585

 

Total shareholders' equity

   

15,779,811

     

15,691,827

     

15,587,529

     

15,460,191

     

15,436,085

 

Total liabilities and shareholders' equity

 

$

125,500,926

     

121,554,895

     

120,025,205

     

120,097,403

     

116,827,637

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

   

Three months ended

   

Change in balance

   

Nine months ended

       
   

September 30,

   

September 30,

   

June 30,

   

September 30, 2019 from

   

September 30,

   

Change

 
   

2019

   

2018

   

2019

   

September 30,

   

June 30,

   

2019

   

2018

   

in

 

Dollars in millions

 

Balance

 

Rate

   

Balance

 

Rate

   

Balance

 

Rate

   

2018

   

2019

   

Balance

 

Rate

   

Balance

 

Rate

   

balance

 

ASSETS

                                                                                 

Interest-bearing deposits at banks

 

$

7,405

   

2.16

%

 

5,207

   

1.98

%

 

6,122

   

2.38

%

 

42

%

 

21

%

 

$

6,054

   

2.30

%

 

5,014

   

1.77

%

 

21

%

Federal funds sold and agreements to

                                                                                 

resell securities

   

18

   

2.01

   

   

   

1

   

2.83

   

   

   

$

6

   

2.06

   

1

   

1.92

   

341

 

Trading account

   

67

   

.89

   

65

   

1.78

   

68

   

2.20

   

4

   

   

$

67

   

2.15

   

59

   

2.52

   

14

 

Investment securities

   

11,075

   

2.48

   

13,431

   

2.37

   

12,170

   

2.49

   

-18

   

-9

   

$

12,058

   

2.50

   

13,917

   

2.36

   

-13

 

Loans and leases, net of unearned

                                                                                 

discount

                                                                                 

Commercial, financial, etc.

   

23,326

   

4.82

   

21,689

   

4.68

   

23,335

   

4.97

   

8

   

     

23,225

   

4.95

   

21,649

   

4.48

   

7

 

Real estate - commercial

   

35,200

   

5.14

   

33,800

   

5.10

   

34,768

   

5.30

   

4

   

1

     

34,833

   

5.26

   

33,713

   

4.93

   

3

 

Real estate - consumer

   

16,673

   

4.20

   

18,006

   

4.21

   

16,723

   

4.29

   

-7

   

     

16,778

   

4.29

   

18,637

   

4.14

   

-10

 

Consumer

   

14,879

   

5.44

   

13,637

   

5.26

   

14,324

   

5.53

   

9

   

4

     

14,405

   

5.49

   

13,433

   

5.14

   

7

 

Total loans and leases, net

   

90,078

   

4.96

   

87,132

   

4.86

   

89,150

   

5.09

   

3

   

1

     

89,241

   

5.06

   

87,432

   

4.71

   

2

 

Total earning assets

   

108,643

   

4.51

   

105,835

   

4.40

   

107,511

   

4.64

   

3

   

1

     

107,426

   

4.62

   

106,423

   

4.26

   

1

 

Goodwill

   

4,593

         

4,593

         

4,593

         

   

     

4,593

         

4,593

         

 

Core deposit and other intangible assets

   

36

         

55

         

41

         

-35

   

-13

     

41

         

62

         

-34

 

Other assets

   

7,116

         

5,514

         

6,342

         

29

   

12

     

6,524

         

5,598

         

17

 

Total assets

 

$

120,388

         

115,997

         

118,487

         

4

%

 

2

%

 

$

118,584

         

116,676

         

2

%

                                                                                   

LIABILITIES AND SHAREHOLDERS'
EQUITY

                                                                                 

Interest-bearing deposits

                                                                                 

Savings and interest-checking

                                                                                 

deposits

 

$

55,680

   

.75

   

51,552

   

.43

   

53,495

   

.69

   

8

%

 

4

%

 

$

53,770

   

.68

   

52,198

   

.37

   

3

%

Time deposits

   

6,343

   

1.59

   

5,826

   

.88

   

6,530

   

1.53

   

9

   

-3

     

6,408

   

1.49

   

6,046

   

.78

   

6

 

Deposits at Cayman Islands office

   

1,522

   

1.62

   

407

   

1.52

   

1,247

   

1.94

   

274

   

22

     

1,249

   

1.82

   

294

   

1.13

   

325

 

Total interest-bearing deposits

   

63,545

   

.85

   

57,785

   

.49

   

61,272

   

.80

   

10

   

4

     

61,427

   

.79

   

58,538

   

.42

   

5

 

Short-term borrowings

   

1,212

   

2.28

   

374

   

1.70

   

1,263

   

2.51

   

224

   

-4

     

1,189

   

2.43

   

336

   

1.54

   

254

 

Long-term borrowings

   

7,121

   

3.13

   

9,047

   

2.90

   

8,278

   

3.20

   

-21

   

-14

     

7,959

   

3.19

   

8,712

   

2.73

   

-9

 

Total interest-bearing liabilities

   

71,878

   

1.10

   

67,206

   

.82

   

70,813

   

1.11

   

7

   

2

     

70,575

   

1.09

   

67,586

   

.72

   

4

 

Noninterest-bearing deposits

   

30,550

         

31,467

         

30,099

         

-3

   

1

     

30,323

         

31,644

         

-4

 

Other liabilities

   

2,123

         

1,775

         

1,945

         

20

   

9

     

2,007

         

1,734

         

16

 

Total liabilities

   

104,551

         

100,448

         

102,857

         

4

   

2

     

102,905

         

100,964

         

2

 

Shareholders' equity

   

15,837

         

15,549

         

15,630

         

2

   

1

     

15,679

         

15,712

         

 

Total liabilities and shareholders'

                                                                                 

equity

 

$

120,388

         

115,997

         

118,487

         

4

%

 

2

%

 

$

118,584

         

116,676

         

2

%

                                                                                   

Net interest spread

         

3.41

         

3.58

         

3.53

                       

3.53

         

3.54

       

Contribution of interest-free funds

         

.37

         

.30

         

.38

                       

.38

         

.27

       

Net interest margin

         

3.78

%

       

3.88

%

       

3.91

%

                     

3.91

%

       

3.81

%

     

Reconciliation of Quarterly GAAP to Non-GAAP Measures

   

Three months ended

   

Nine months ended

 
   

September 30

   

September 30

 
   

2019

   

2018

   

2019

   

2018

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

480,081

     

526,091

     

1,436,083

     

1,371,861

 

Amortization of core deposit and other intangible assets (1)

   

3,749

     

4,528

     

11,188

     

14,125

 

Net operating income

 

$

483,830

     

530,619

     

1,447,271

     

1,385,986

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.47

     

3.53

     

10.16

     

9.00

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.08

     

.10

 

Diluted net operating earnings per common share

 

$

3.50

     

3.56

     

10.24

     

9.10

 
                                 

Other expense

                               

Other expense

 

$

877,619

     

775,979

     

2,644,999

     

2,485,900

 

Amortization of core deposit and other intangible assets

   

(5,088)

     

(6,143)

     

(15,185)

     

(19,163)

 

Noninterest operating expense

 

$

872,531

     

769,836

     

2,629,814

     

2,466,737

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

872,531

     

769,836

     

2,629,814

     

2,466,737

 

Taxable-equivalent net interest income

   

1,035,469

     

1,034,771

     

3,138,902

     

3,029,281

 

Other income

   

527,779

     

459,294

     

1,540,639

     

1,375,404

 

Less: Gain (loss) on bank investment securities

   

3,737

     

(3,415)

     

24,489

     

(10,520)

 

Denominator

 

$

1,559,511

     

1,497,480

     

4,655,052

     

4,415,205

 

Efficiency ratio

   

55.95

%

   

51.41

%

   

56.49

%

   

55.87

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

120,388

     

115,997

     

118,584

     

116,676

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(36)

     

(55)

     

(41)

     

(62)

 

Deferred taxes

   

10

     

14

     

11

     

16

 

Average tangible assets

 

$

115,769

     

111,363

     

113,961

     

112,037

 

Average common equity

                               

Average total equity

 

$

15,837

     

15,549

     

15,679

     

15,712

 

Preferred stock

   

(1,373)

     

(1,232)

     

(1,279)

     

(1,232)

 

Average common equity

   

14,464

     

14,317

     

14,400

     

14,480

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(36)

     

(55)

     

(41)

     

(62)

 

Deferred taxes

   

10

     

14

     

11

     

16

 

Average tangible common equity

 

$

9,845

     

9,683

     

9,777

     

9,841

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

125,501

     

116,828

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(33)

     

(52)

                 

Deferred taxes

   

8

     

14

                 

Total tangible assets

 

$

120,883

     

112,197

                 

Total common equity

                               

Total equity

 

$

15,780

     

15,436

                 

Preferred stock

   

(1,250)

     

(1,232)

                 

Undeclared dividends - cumulative preferred stock

   

     

(3)

                 

Common equity, net of undeclared cumulative preferred dividends

   

14,530

     

14,201

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(33)

     

(52)

                 

Deferred taxes

   

8

     

14

                 

Total tangible common equity

 

$

9,912

     

9,570

                 
 

____________________

(1) After any related tax effect.

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

   

Three months ended

 
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 
   

2019

   

2019

   

2019

   

2018

   

2018

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

480,081

     

473,260

     

482,742

     

546,219

     

526,091

 

Amortization of core deposit and other intangible assets (1)

   

3,749

     

3,741

     

3,698

     

3,950

     

4,528

 

Net operating income

 

$

483,830

     

477,001

     

486,440

     

550,169

     

530,619

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.47

     

3.34

     

3.35

     

3.76

     

3.53

 

Amortization of core deposit and other intangible assets (1)

   

.03

     

.03

     

.03

     

.03

     

.03

 

Diluted net operating earnings per common share

 

$

3.50

     

3.37

     

3.38

     

3.79

     

3.56

 
                                         

Other expense

                                       

Other expense

 

$

877,619

     

873,032

     

894,348

     

802,162

     

775,979

 

Amortization of core deposit and other intangible assets

   

(5,088)

     

(5,077)

     

(5,020)

     

(5,359)

     

(6,143)

 

Noninterest operating expense

 

$

872,531

     

867,955

     

889,328

     

796,803

     

769,836

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

872,531

     

867,955

     

889,328

     

796,803

     

769,836

 

Taxable-equivalent net interest income

   

1,035,469

     

1,047,406

     

1,056,027

     

1,064,918

     

1,034,771

 

Other income

   

527,779

     

512,095

     

500,765

     

480,596

     

459,294

 

Less: Gain (loss) on bank investment securities

   

3,737

     

8,911

     

11,841

     

4,219

     

(3,415)

 

Denominator

 

$

1,559,511

     

1,550,590

     

1,544,951

     

1,541,295

     

1,497,480

 

Efficiency ratio

   

55.95

%

   

55.98

%

   

57.56

%

   

51.70

%

   

51.41

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

120,388

     

118,487

     

116,839

     

117,799

     

115,997

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(36)

     

(41)

     

(45)

     

(50)

     

(55)

 

Deferred taxes

   

10

     

11

     

12

     

13

     

14

 

Average tangible assets

 

$

115,769

     

113,864

     

112,213

     

113,169

     

111,363

 

Average common equity

                                       

Average total equity

 

$

15,837

     

15,630

     

15,569

     

15,389

     

15,549

 

Preferred stock

   

(1,373)

     

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,464

     

14,398

     

14,337

     

14,157

     

14,317

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(36)

     

(41)

     

(45)

     

(50)

     

(55)

 

Deferred taxes

   

10

     

11

     

12

     

13

     

14

 

Average tangible common equity

 

$

9,845

     

9,775

     

9,711

     

9,527

     

9,683

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

125,501

     

121,555

     

120,025

     

120,097

     

116,828

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(33)

     

(38)

     

(44)

     

(47)

     

(52)

 

Deferred taxes

   

8

     

10

     

12

     

13

     

14

 

Total tangible assets

 

$

120,883

     

116,934

     

115,400

     

115,470

     

112,197

 

Total common equity

                                       

Total equity

 

$

15,780

     

15,692

     

15,588

     

15,460

     

15,436

 

Preferred stock

   

(1,250)

     

(1,232)

     

(1,232)

     

(1,232)

     

(1,232)

 

Undeclared dividends - cumulative preferred stock

   

     

(3)

     

(3)

     

(3)

     

(3)

 

Common equity, net of undeclared cumulative preferred
dividends

   

14,530

     

14,457

     

14,353

     

14,225

     

14,201

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(33)

     

(38)

     

(44)

     

(47)

     

(52)

 

Deferred taxes

   

8

     

10

     

12

     

13

     

14

 

Total tangible common equity

 

$

9,912

     

9,836

     

9,728

     

9,598

     

9,570

 
 

____________________

(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