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M&T Bank Corporation Announces 2019 Fourth Quarter And Full-Year Results

BUFFALO, N.Y., Jan. 23, 2020 M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2019.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.60 in the fourth quarter of 2019, compared with $3.76 in the year-earlier quarter and $3.47 in the third quarter of 2019. GAAP-basis net income in the recent quarter was $493 million, compared with $546 million in the final quarter of 2018 and $480 million in the third 2019 quarter. GAAP-basis net income for the fourth quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.60% and 12.95%, respectively, compared with 1.84% and 14.80%, respectively, in the similar 2018 quarter and 1.58% and 12.73%, respectively, in the third quarter of 2019.

Earnings Highlights

 
                                         
                           

Change 4Q19 vs.

 

($ in millions, except per share data)

 

4Q19

   

4Q18

   

3Q19

   

4Q18

   

3Q19

 
                                         

Net income

 

$

493

   

$

546

   

$

480

     

-10

%

   

3

%

Net income available to common shareholders  ̶  diluted

 

$

473

   

$

525

   

$

461

     

-10

%

   

3

%

Diluted earnings per common share

 

$

3.60

   

$

3.76

   

$

3.47

     

-4

%

   

4

%

Annualized return on average assets

   

1.60

%

   

1.84

%

   

1.58

%

               

Annualized return on average common equity

   

12.95

%

   

14.80

%

   

12.73

%

               

 

Darren J. King, Executive Vice President and Chief Financial Officer, commented on M&T's performance, "M&T's results reflect a year of strong performance. Earnings per common share for 2019 rose 8%, combined net interest income and other income increased over 4%, and net charge-offs as a percentage of loans remained at a historically low level. Strong growth in income from the mortgage banking and trust businesses led the revenue improvement."

For the year ended December 31, 2019, diluted earnings per common share were $13.75, up 8% from $12.74 in 2018. GAAP-basis net income in 2019 aggregated $1.93 billion, up from $1.92 billion in 2018. Expressed as a rate of return on average assets and average common shareholders' equity, GAAP-basis net income for 2019 was 1.61% and 12.87%, respectively, compared with 1.64% and 12.82%, respectively, in 2018.

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 $3.62 in the fourth quarter of 2019, compared with $3.79 in the final 2018 quarter and $3.50 in the third quarter of 2019.  Net operating income in the recent quarter was $496 million, compared with $550 million in the fourth quarter of 2018 and $484 million in the third 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 fourth quarter of 2019 was 1.67% and 19.08%, respectively, compared with 1.93% and 22.16%, respectively, in the similar 2018 quarter and 1.66% and 18.85%, respectively, in the third quarter of 2019.

Diluted net operating earnings per common share for the year ended December 31, 2019 increased 8% to $13.86 from $12.86 in 2018. Net operating income in each of 2019 and 2018 was $1.94 billion. Expressed as a rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.69% and 19.08%, respectively, during 2019, compared with 1.72% and 19.09%, respectively, in 2018.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $1.01 billion in the fourth quarter of 2019, compared with $1.06 billion in the year-earlier quarter. That decline resulted from a 28 basis point narrowing of the net interest margin, to 3.64% in 2019's fourth quarter from 3.92% in the final quarter of 2018, that was partially offset by the impact of higher average earning assets, which rose from $107.8 billion in the fourth quarter of 2018 to $110.6 billion in the recent quarter. In the third quarter of 2019, taxable-equivalent net interest income was $1.04 billion, the net interest margin was 3.78% and average earning assets totaled $108.6 billion. Taxable-equivalent net interest income for the full year of 2019 increased to $4.15 billion from $4.09 billion in 2018. The net interest margin was 3.84% in 2019 and 3.83% in 2018.

                                         

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 4Q19 vs.

 

($ in millions)

 

4Q19

   

4Q18

   

3Q19

   

4Q18

   

3Q19

 
                                         

Average earning assets

 

$

110,581

   

$

107,785

   

$

108,643

     

3

%

   

2

%

Net interest income  ̶  taxable-equivalent

 

$

1,014

   

$

1,065

   

$

1,035

     

-5

%

   

-2

%

Net interest margin

   

3.64

%

   

3.92

%

   

3.78

%

               

 

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $54 million in the final quarter of 2019, compared with $38 million in the corresponding 2018 quarter and $45 million in the third quarter of 2019. Net loan charge-offs were $41 million during the recent quarter, compared with $38 million in the fourth quarter of 2018 and $36 million in 2019's third quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .18% and .17% in the final quarters of 2019 and 2018, respectively, and .16% in the third quarter of 2019. The provision for credit losses was $176 million for the year ended December 31, 2019, compared with $132 million in 2018. Net loan charge-offs during 2019 and 2018 aggregated $144 million and $130 million, respectively, representing .16% and .15%, respectively, of average loans outstanding.

Loans classified as nonaccrual totaled $963 million or 1.06% of total loans outstanding at December 31, 2019, compared with $894 million or 1.01% a year earlier and $1.01 billion or 1.12% at September 30, 2019. Assets taken in foreclosure of defaulted loans were $86 million at December 31, 2019, compared with $78 million and $80 million at December 31, 2018 and September 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 totaled $1.05 billion or 1.16% of loans outstanding at December 31, 2019, compared with $1.02 billion or 1.15% at December 31, 2018 and $1.04 billion or 1.16% at September 30, 2019.

Asset Quality Metrics

 
                           

Change 4Q19 vs.

 

($ in millions)

 

4Q19

   

4Q18

   

3Q19

   

4Q18

   

3Q19

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

963

   

$

894

   

$

1,005

     

8

%

   

-4

%

Real estate and other foreclosed assets

 

$

86

   

$

78

   

$

80

     

9

%

   

7

%

Total nonperforming assets

 

$

1,049

   

$

972

   

$

1,085

     

8

%

   

-3

%

Accruing loans past due 90 days or more (1)

 

$

519

   

$

223

   

$

461

     

133

%

   

12

%

Nonaccrual loans as % of loans outstanding

   

1.06

%

   

1.01

%

   

1.12

%

               
                                         

Allowance for credit losses

 

$

1,051

   

$

1,019

   

$

1,038

     

3

%

   

1

%

Allowance for credit losses as % of loans outstanding

   

1.16

%

   

1.15

%

   

1.16

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

54

   

$

38

   

$

45

     

42

%

   

20

%

Net charge-offs

 

$

41

   

$

38

   

$

36

     

9

%

   

14

%

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

   

.18

%

   

.17

%

   

.16

%

               

_______________

                                       

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

 

Noninterest Income and Expense.  Noninterest income totaled $521 million in the fourth quarter of 2019, 8% higher than $481 million in the year-earlier quarter. That improvement resulted from significantly higher residential mortgage banking revenues and trust income, partially offset by unrealized losses on investment securities. During the third quarter of 2019, noninterest income totaled $528 million. The decline in such income in the recent quarter as compared with 2019's third quarter reflected lower commercial mortgage banking revenues and unrealized losses on investment securities that were partially offset by increases in letter of credit and credit-related fees and trust income.

Noninterest Income

 
                                         
                           

Change 4Q19 vs.

 

($ in millions)

 

4Q19

   

4Q18

   

3Q19

   

4Q18

   

3Q19

 
                                         

Mortgage banking revenues

 

$

118

   

$

92

   

$

137

     

28

%

   

-14

%

Service charges on deposit accounts

   

111

     

109

     

111

     

2

%

   

 

Trust income

   

151

     

135

     

144

     

12

%

   

5

%

Brokerage services income

   

12

     

13

     

12

     

-7

%

   

-2

%

Trading account and foreign exchange gains

   

17

     

17

     

16

     

1

%

   

4

%

Gain (loss) on bank investment securities

   

(6)

     

4

     

4

     

     

 

Other revenues from operations

   

118

     

111

     

104

     

7

%

   

14

%

Total

 

$

521

   

$

481

   

$

528

     

8

%

   

-1

%

 

Noninterest income rose 11% to $2.06 billion in 2019 from $1.86 billion in 2018. Growth was experienced in most major sources of noninterest income, led by mortgage banking revenues and trust income.

Noninterest expense totaled $824 million in 2019's final quarter, $802 million in the corresponding quarter of 2018 and $878 million in the third 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 $819 million in the recent quarter, $797 million in the fourth quarter of 2018 and $873 million in 2019's third quarter. Significant factors contributing to the higher level of noninterest expenses in the recent quarter as compared with year-earlier quarter were increased costs for salaries and employee benefits and outside data processing and software, partially offset by lower contributions to The M&T Charitable Foundation and a reduction of the valuation allowance for capitalized residential mortgage servicing rights. The lower level of noninterest expenses in the final 2019 quarter as compared with the immediately preceding quarter was attributable to reduced costs for professional services and salaries and employee benefits, and changes in the valuation allowance for capitalized residential mortgage servicing rights. That allowance was reduced by $16 million during the recent quarter, compared with an addition to the allowance of $14 million in the third quarter of 2019.

Noninterest Expense

 
                                         
                           

Change 4Q19 vs.

 

($ in millions)

 

4Q19

   

4Q18

   

3Q19

   

4Q18

   

3Q19

 
                                         

Salaries and employee benefits

 

$

469

   

$

439

   

$

477

     

7

%

   

-2

%

Equipment and net occupancy

   

83

     

74

     

83

     

13

%

   

 

Outside data processing and software

   

62

     

50

     

60

     

23

%

   

2

%

FDIC assessments

   

12

     

10

     

10

     

26

%

   

25

%

Advertising and marketing

   

27

     

26

     

22

     

4

%

   

23

%

Printing, postage and supplies

   

10

     

9

     

10

     

8

%

   

-7

%

Amortization of core deposit and other intangible assets

   

4

     

5

     

5

     

-20

%

   

-15

%

Other costs of operations

   

157

     

189

     

211

     

-17

%

   

-26

%

Total

 

$

824

   

$

802

   

$

878

     

3

%

   

-6

%

                                         

 

For the year ended December 31, 2019 noninterest expense aggregated $3.47 billion, compared with $3.29 billion in 2018. Noninterest operating expenses were $3.45 billion and $3.26 billion in 2019 and 2018, respectively. Contributing to the higher level of such expenses in 2019 were increased costs for salaries and employee benefits, equipment and net occupancy, outside data processing and software, and professional services, and a $48 million charge in the second quarter of 2019 associated with the sale of an equity investment in an asset manager. Partially offsetting those factors were lower costs associated with legal-related matters and charitable contributions, and a decline in FDIC assessments.

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 53.1% in the fourth quarter of 2019, 51.7% in the similar 2018 quarter and 55.9% in the third quarter of 2019. The efficiency ratio for the full year 2019 was 55.7%, compared with 54.8% in 2018.

Balance Sheet.  M&T had total assets of $119.9 billion at December 31, 2019, compared with $120.1 billion and $125.5 billion at December 31, 2018 and September 30, 2019, respectively. Loans and leases, net of unearned discount, were $90.9 billion at the recent quarter-end, $88.5 billion at December 31, 2018 and $89.8 billion at September 30, 2019. The increase in outstanding balances of loans and leases from September 30 to December 31, 2019 was predominantly attributable to growth in commercial loans and commercial real estate loans. Total deposits were $94.8 billion at December 31, 2019, compared with $90.2 billion a year earlier and $95.1 billion at September 30, 2019. The higher level of deposits at the end of 2019 as compared with a year earlier reflects increased deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $15.7 billion, or 13.11% of total assets at December 31, 2019, compared with $15.5 billion, or 12.87% at December 31, 2018 and $15.8 billion, or 12.57% at September 30, 2019. Common shareholders' equity was $14.5 billion, or $110.78 per share, at December 31, 2019, compared with $14.2 billion, or $102.69 per share, a year-earlier and $14.5 billion, or $109.84 per share, at September 30, 2019.  Tangible equity per common share was $75.44 at December 31, 2019, compared with $69.28 at December 31, 2018 and $74.93 at September 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 9.72% at December 31, 2019.

In accordance with its capital plan, M&T repurchased 1,724,000 shares of its common stock during the recent quarter at an average cost per share of $163.69 for a total cost of $282 million. In the aggregate, during 2019, M&T repurchased 8,257,000 shares of common stock at a total cost of $1.35 billion.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877) 780-2276.  International participants, using any applicable international calling codes, may dial (973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID #9399388.  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, January 30, 2020 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #9399388.  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

           

Year ended

         
   

December 31

           

December 31

         

Amounts in thousands, except per share

 

2019

   

2018

   

Change

   

2019

   

2018

   

Change

 

Performance

                                               

Net income

 

$

493,066

     

546,219

     

-10

%

 

$

1,929,149

     

1,918,080

     

1

%

Net income available to common shareholders

   

473,372

     

525,328

     

-10

%

   

1,849,511

     

1,836,035

     

1

%

Per common share:

                                               

Basic earnings

 

$

3.60

     

3.76

     

-4

%

 

$

13.76

     

12.75

     

8

%

Diluted earnings

   

3.60

     

3.76

     

-4

%

   

13.75

     

12.74

     

8

%

Cash dividends

 

$

1.10

     

1.00

     

10

%

 

$

4.10

     

3.55

     

15

%

Common shares outstanding:                

                                               

Average - diluted (1)

   

131,549

     

139,838

     

-6

%

   

134,462

     

144,151

     

-7

%

Period end (2)

   

130,589

     

138,534

     

-6

%

   

130,589

     

138,534

     

-6

%

Return on (annualized):

                                               

Average total assets

   

1.60

%

   

1.84

%

           

1.61

%

   

1.64

%

       

Average common shareholders' equity

   

12.95

%

   

14.80

%

           

12.87

%

   

12.82

%

       

Taxable-equivalent net interest income

 

$

1,014,225

     

1,064,918

     

-5

%

 

$

4,153,127

     

4,094,199

     

1

%

Yield on average earning assets

   

4.27

%

   

4.51

%

           

4.53

%

   

4.33

%

       

Cost of interest-bearing liabilities

   

.97

%

   

.94

%

           

1.05

%

   

.78

%

       

Net interest spread

   

3.30

%

   

3.57

%

           

3.48

%

   

3.55

%

       

Contribution of interest-free funds

   

.34

%

   

.35

%

           

.36

%

   

.28

%

       

Net interest margin

   

3.64

%

   

3.92

%

           

3.84

%

   

3.83

%

       

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

   

.18

%

   

.17

%

           

.16

%

   

.15

%

       

Net operating results (3)

                                               

Net operating income

 

$

496,237

     

550,169

     

-10

%

 

$

1,943,508

     

1,936,155

     

 

Diluted net operating earnings per common share

   

3.62

     

3.79

     

-4

%

   

13.86

     

12.86

     

8

%

Return on (annualized):

                                               

Average tangible assets

   

1.67

%

   

1.93

%

           

1.69

%

   

1.72

%

       

Average tangible common equity

   

19.08

%

   

22.16

%

           

19.08

%

   

19.09

%

       

Efficiency ratio

   

53.15

%

   

51.70

%

           

55.66

%

   

54.79

%

       
                                                 
   

At December 31

                                 

Loan quality

 

2019

   

2018

   

Change

                         

Nonaccrual loans

 

$

963,112

     

893,608

     

8

%

                       

Real estate and other foreclosed assets

   

85,646

     

78,375

     

9

%

                       

Total nonperforming assets

 

$

1,048,758

     

971,983

     

8

%

                       

Accruing loans past due 90 days or more (4)

 

$

518,728

     

222,527

     

133

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

50,891

     

34,667

     

47

%

                       

Accruing loans past due 90 days or more

   

479,829

     

192,443

     

149

%

                       

Renegotiated loans

 

$

234,424

     

245,367

     

-4

%

                       

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

 

$

39,632

     

39,750

     

                         

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

$

415,413

     

529,520

     

-22

%

                       

Carrying amount

   

227,545

     

303,305

     

-25

%

                       

Nonaccrual loans to total net loans

   

1.06

%

   

1.01

%

                               

Allowance for credit losses to total loans

   

1.16

%

   

1.15

%

                               

______________

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

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

(4)

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

(5)

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

(6)

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

 

 

Financial Highlights, Five Quarter Trend

 
   

Three months ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Amounts in thousands, except per share

 

2019

   

2019

   

2019

   

2019

   

2018

 

Performance

                                       

Net income

 

$

493,066

     

480,081

     

473,260

     

482,742

     

546,219

 

Net income available to common shareholders

   

473,372

     

461,410

     

452,633

     

462,086

     

525,328

 

Per common share:

                                       

Basic earnings

 

$

3.60

     

3.47

     

3.34

     

3.35

     

3.76

 

Diluted earnings

   

3.60

     

3.47

     

3.34

     

3.35

     

3.76

 

Cash dividends

 

$

1.10

     

1.00

     

1.00

     

1.00

     

1.00

 

Common shares outstanding:

                                       

Average - diluted (1)

   

131,549

     

132,999

     

135,464

     

137,920

     

139,838

 

Period end (2)

   

130,589

     

132,277

     

134,200

     

136,637

     

138,534

 

Return on (annualized):

                                       

Average total assets

   

1.60

%

   

1.58

%

   

1.60

%

   

1.68

%

   

1.84

%

Average common shareholders' equity

   

12.95

%

   

12.73

%

   

12.68

%

   

13.14

%

   

14.80

%

Taxable-equivalent net interest income

 

$

1,014,225

     

1,035,469

     

1,047,406

     

1,056,027

     

1,064,918

 

Yield on average earning assets

   

4.27

%

   

4.51

%

   

4.64

%

   

4.71

%

   

4.51

%

Cost of interest-bearing liabilities

   

.97

%

   

1.10

%

   

1.11

%

   

1.04

%

   

.94

%

Net interest spread

   

3.30

%

   

3.41

%

   

3.53

%

   

3.67

%

   

3.57

%

Contribution of interest-free funds

   

.34

%

   

.37

%

   

.38

%

   

.37

%

   

.35

%

Net interest margin

   

3.64

%

   

3.78

%

   

3.91

%

   

4.04

%

   

3.92

%

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

   

.18

%

   

.16

%

   

.20

%

   

.10

%

   

.17

%

Net operating results (3)

                                       

Net operating income

 

$

496,237

     

483,830

     

477,001

     

486,440

     

550,169

 

Diluted net operating earnings per common share

   

3.62

     

3.50

     

3.37

     

3.38

     

3.79

 

Return on (annualized):

                                       

Average tangible assets

   

1.67

%

   

1.66

%

   

1.68

%

   

1.76

%

   

1.93

%

Average tangible common equity

   

19.08

%

   

18.85

%

   

18.83

%

   

19.56

%

   

22.16

%

Efficiency ratio

   

53.15

%

   

55.95

%

   

55.98

%

   

57.56

%

   

51.70

%

                                         
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Loan quality

 

2019

   

2019

   

2019

   

2019

   

2018

 

Nonaccrual loans

 

$

963,112

     

1,005,249

     

865,384

     

881,611

     

893,608

 

Real estate and other foreclosed assets

   

85,646

     

79,735

     

72,907

     

81,335

     

78,375

 

Total nonperforming assets

 

$

1,048,758

     

1,084,984

     

938,291

     

962,946

     

971,983

 

Accruing loans past due 90 days or more (4)

 

$

518,728

     

461,162

     

348,725

     

244,257

     

222,527

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

50,891

     

43,144

     

36,765

     

35,481

     

34,667

 

Accruing loans past due 90 days or more

   

479,829

     

434,132

     

320,305

     

194,510

     

192,443

 

Renegotiated loans

 

$

234,424

     

240,781

     

254,332

     

267,952

     

245,367

 

Accruing loans acquired at a discount past due 90 days or

        more (5)

 

$

39,632

     

40,733

     

43,079

     

43,995

     

39,750

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

$

415,413

     

453,382

     

473,834

     

495,163

     

529,520

 

Carrying amount

   

227,545

     

253,496

     

263,025

     

278,783

     

303,305

 

Nonaccrual loans to total net loans

   

1.06

%

   

1.12

%

   

.96

%

   

.99

%

   

1.01

%

Allowance for credit losses to total loans

   

1.16

%

   

1.16

%

   

1.15

%

   

1.15

%

   

1.15

%

______________

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

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

(4)

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

(5)

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

(6)

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

 

 

Condensed Consolidated Statement of Income

 
   

Three months ended

           

Year ended

         
   

December 31

           

December 31

         

Dollars in thousands

 

2019

   

2018

   

Change

   

2019

   

2018

   

Change

 

Interest income

 

$

1,185,902

     

1,220,281

     

-3

%

 

$

4,879,593

     

4,598,711

     

6

%

Interest expense

   

177,069

     

161,321

     

10

     

749,329

     

526,409

     

42

 

Net interest income

   

1,008,833

     

1,058,960

     

-5

     

4,130,264

     

4,072,302

     

1

 

Provision for credit losses

   

54,000

     

38,000

     

42

     

176,000

     

132,000

     

33

 

Net interest income after provision for credit losses

   

954,833

     

1,020,960

     

-6

     

3,954,264

     

3,940,302

     

 

Other income

                                               

Mortgage banking revenues

   

118,134

     

92,229

     

28

     

457,770

     

360,442

     

27

 

Service charges on deposit accounts

   

110,987

     

108,791

     

2

     

432,978

     

429,337

     

1

 

Trust income

   

151,525

     

135,024

     

12

     

572,608

     

537,585

     

7

 

Brokerage services income

   

11,891

     

12,781

     

-7

     

48,922

     

51,069

     

-4

 

Trading account and foreign exchange gains

   

16,717

     

16,582

     

1

     

62,044

     

32,547

     

91

 

Gain (loss) on bank investment securities

   

(6,452)

     

4,219

     

     

18,037

     

(6,301)

     

 

Other revenues from operations

   

118,238

     

110,970

     

7

     

469,320

     

451,321

     

4

 

Total other income

   

521,040

     

480,596

     

8

     

2,061,679

     

1,856,000

     

11

 

Other expense

                                               

Salaries and employee benefits

   

469,080

     

438,928

     

7

     

1,900,797

     

1,752,264

     

8

 

Equipment and net occupancy

   

82,892

     

73,519

     

13

     

324,079

     

298,828

     

8

 

Outside data processing and software

   

61,720

     

50,206

     

23

     

229,731

     

199,025

     

15

 

FDIC assessments

   

12,431

     

9,837

     

26

     

41,535

     

68,526

     

-39

 

Advertising and marketing

   

27,063

     

25,910

     

4

     

93,472

     

85,710

     

9

 

Printing, postage and supplies

   

9,513

     

8,777

     

8

     

39,893

     

35,658

     

12

 

Amortization of core deposit and other
 
  intangible assets

   

4,305

     

5,359

     

-20

     

19,490

     

24,522

     

-21

 

Other costs of operations

   

156,679

     

189,626

     

-17

     

819,685

     

823,529

     

 

Total other expense

   

823,683

     

802,162

     

3

     

3,468,682

     

3,288,062

     

5

 

Income before income taxes

   

652,190

     

699,394

     

-7

     

2,547,261

     

2,508,240

     

2

 

Applicable income taxes

   

159,124

     

153,175

     

4

     

618,112

     

590,160

     

5

 

Net income

 

$

493,066

     

546,219

     

-10

%

 

$

1,929,149

     

1,918,080

     

1

%

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 
   

Three months ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Dollars in thousands

 

2019

   

2019

   

2019

   

2019

   

2018

 

Interest income

 

$

1,185,902

     

1,229,469

     

1,237,913

     

1,226,309

     

1,220,281

 

Interest expense

   

177,069

     

199,579

     

196,432

     

176,249

     

161,321

 

Net interest income

   

1,008,833

     

1,029,890

     

1,041,481

     

1,050,060

     

1,058,960

 

Provision for credit losses

   

54,000

     

45,000

     

55,000

     

22,000

     

38,000

 

Net interest income after provision for credit losses

   

954,833

     

984,890

     

986,481

     

1,028,060

     

1,020,960

 

Other income

                                       

Mortgage banking revenues

   

118,134

     

137,004

     

107,321

     

95,311

     

92,229

 

Service charges on deposit accounts

   

110,987

     

111,092

     

107,787

     

103,112

     

108,791

 

Trust income

   

151,525

     

143,915

     

144,382

     

132,786

     

135,024

 

Brokerage services income

   

11,891

     

12,077

     

12,478

     

12,476

     

12,781

 

Trading account and foreign exchange gains

   

16,717

     

16,072

     

18,453

     

10,802

     

16,582

 

Gain (loss) on bank investment securities

   

(6,452)

     

3,737

     

8,911

     

11,841

     

4,219

 

Other revenues from operations

   

118,238

     

103,882

     

112,763

     

134,437

     

110,970

 

Total other income

   

521,040

     

527,779

     

512,095

     

500,765

     

480,596

 

Other expense

                                       

Salaries and employee benefits

   

469,080

     

476,780

     

455,737

     

499,200

     

438,928

 

Equipment and net occupancy

   

82,892

     

82,690

     

79,150

     

79,347

     

73,519

 

Outside data processing and software

   

61,720

     

60,360

     

55,234

     

52,417

     

50,206

 

FDIC assessments

   

12,431

     

9,906

     

9,772

     

9,426

     

9,837

 

Advertising and marketing

   

27,063

     

22,088

     

24,046

     

20,275

     

25,910

 

Printing, postage and supplies

   

9,513

     

10,201

     

10,324

     

9,855

     

8,777

 

Amortization of core deposit and other intangible assets

   

4,305

     

5,088

     

5,077

     

5,020

     

5,359

 

Other costs of operations

   

156,679

     

210,506

     

233,692

     

218,808

     

189,626

 

Total other expense

   

823,683

     

877,619

     

873,032

     

894,348

     

802,162

 

Income before income taxes

   

652,190

     

635,050

     

625,544

     

634,477

     

699,394

 

Applicable income taxes

   

159,124

     

154,969

     

152,284

     

151,735

     

153,175

 

Net income

 

$

493,066

     

480,081

     

473,260

     

482,742

     

546,219

 

 

 

Condensed Consolidated Balance Sheet

 
   
   

December 31

         

Dollars in thousands

 

2019

   

2018

   

Change

 

ASSETS

                       

Cash and due from banks

 

$

1,432,805

     

1,605,439

     

-11

%

Interest-bearing deposits at banks

   

7,190,154

     

8,105,197

     

-11

 

Federal funds sold

   

3,500

     

     

 

Trading account

   

470,129

     

185,584

     

153

 

Investment securities

   

9,497,251

     

12,692,813

     

-25

 

Loans and leases:

                       

Commercial, financial, etc.

   

23,838,168

     

22,977,976

     

4

 

Real estate - commercial

   

35,541,914

     

34,363,556

     

3

 

Real estate - consumer

   

16,156,094

     

17,154,446

     

-6

 

Consumer

   

15,386,693

     

13,970,499

     

10

 

Total loans and leases, net of unearned discount

   

90,922,869

     

88,466,477

     

3

 

Less: allowance for credit losses

   

1,051,071

     

1,019,444

     

3

 

Net loans and leases

   

89,871,798

     

87,447,033

     

3

 

Goodwill

   

4,593,112

     

4,593,112

     

 

Core deposit and other intangible assets

   

29,034

     

47,067

     

-38

 

Other assets

   

6,784,974

     

5,421,158

     

25

 

Total assets

 

$

119,872,757

     

120,097,403

     

%

                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Noninterest-bearing deposits

 

$

32,396,407

     

32,256,668

     

%

Interest-bearing deposits

   

60,689,618

     

57,087,998

     

6

 

Deposits at Cayman Islands office

   

1,684,044

     

811,906

     

107

 

Total deposits

   

94,770,069

     

90,156,572

     

5

 

Short-term borrowings

   

62,363

     

4,398,378

     

-99

 

Accrued interest and other liabilities

   

2,337,490

     

1,637,348

     

43

 

Long-term borrowings

   

6,986,186

     

8,444,914

     

-17

 

Total liabilities

   

104,156,108

     

104,637,212

     

 

Shareholders' equity:

                       

Preferred

   

1,250,000

     

1,231,500

     

2

 

Common

   

14,466,649

     

14,228,691

     

2

 

Total shareholders' equity

   

15,716,649

     

15,460,191

     

2

 

Total liabilities and shareholders' equity

 

$

119,872,757

     

120,097,403

     

%

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 
       
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Dollars in thousands

 

2019

   

2019

   

2019

   

2019

   

2018

 

ASSETS

                                       

Cash and due from banks

 

$

1,432,805

     

1,818,861

     

1,271,611

     

1,267,260

     

1,605,439

 

Interest-bearing deposits at banks

   

7,190,154

     

12,495,524

     

8,791,753

     

7,602,897

     

8,105,197

 

Federal funds sold

   

3,500

     

200

     

     

     

 

Trading account

   

470,129

     

614,256

     

479,403

     

276,322

     

185,584

 

Investment securities

   

9,497,251

     

10,677,583

     

11,580,249

     

12,536,840

     

12,692,813

 

Loans and leases:

                                       

Commercial, financial, etc.

   

23,838,168

     

23,201,372

     

23,431,408

     

23,090,204

     

22,977,976

 

Real estate - commercial

   

35,541,914

     

34,945,231

     

35,194,375

     

34,690,930

     

34,363,556

 

Real estate - consumer

   

16,156,094

     

16,500,955

     

16,693,737

     

16,769,933

     

17,154,446

 

Consumer

   

15,386,693

     

15,175,635

     

14,558,538

     

14,088,816

     

13,970,499

 

Total loans and leases, net of unearned discount

   

90,922,869

     

89,823,193

     

89,878,058

     

88,639,883

     

88,466,477

 

Less: allowance for credit losses

   

1,051,071

     

1,038,437

     

1,029,867

     

1,019,337

     

1,019,444

 

Net loans and leases

   

89,871,798

     

88,784,756

     

88,848,191

     

87,620,546

     

87,447,033

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

29,034

     

33,339

     

38,428

     

43,947

     

47,067

 

Other assets

   

6,784,974

     

6,483,295

     

5,952,148

     

6,084,281

     

5,421,158

 

Total assets

 

$

119,872,757

     

125,500,926

     

121,554,895

     

120,025,205

     

120,097,403

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

32,396,407

     

31,766,724

     

30,747,946

     

29,966,753

     

32,256,668

 

Interest-bearing deposits

   

60,689,618

     

61,785,212

     

59,568,223

     

59,433,806

     

57,087,998

 

Deposits at Cayman Islands office

   

1,684,044

     

1,561,997

     

1,364,855

     

1,069,191

     

811,906

 

Total deposits

   

94,770,069

     

95,113,933

     

91,681,024

     

90,469,750

     

90,156,572

 

Short-term borrowings

   

62,363

     

5,513,896

     

4,611,390

     

3,602,566

     

4,398,378

 

Accrued interest and other liabilities

   

2,337,490

     

2,090,762

     

1,915,147

     

1,889,336

     

1,637,348

 

Long-term borrowings

   

6,986,186

     

7,002,524

     

7,655,507

     

8,476,024

     

8,444,914

 

Total liabilities

   

104,156,108

     

109,721,115

     

105,863,068

     

104,437,676

     

104,637,212

 

Shareholders' equity:

                                       

Preferred

   

1,250,000

     

1,250,000

     

1,231,500

     

1,231,500

     

1,231,500

 

Common

   

14,466,649

     

14,529,811

     

14,460,327

     

14,356,029

     

14,228,691

 

Total shareholders' equity

   

15,716,649

     

15,779,811

     

15,691,827

     

15,587,529

     

15,460,191

 

Total liabilities and shareholders' equity

 

$

119,872,757

     

125,500,926

     

121,554,895

     

120,025,205

     

120,097,403

 

 

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 
   

Three months ended

   

Change in balance

     

Year ended

           
   

December 31,

   

December 31,

   

September 30,

   

December 31, 2019 from

     

December 31,

   

Change

   

Dollars in millions

 

2019

   

2018

   

2019

   

December 31,

   

September 30,

     

2019

   

2018

   

in

   
   

Balance

   

Rate

   

Balance

   

Rate

   

Balance

   

Rate

   

2018

   

2019

     

Balance

   

Rate

   

Balance

   

Rate

   

balance

   

ASSETS

                                                                                                           

Interest-bearing deposits at banks

 

$

8,944

     

1.65

%

   

7,394

     

2.23

%

   

7,405

     

2.16

%

   

21

%

   

21

%

   

$

6,783

     

2.08

%

   

5,614

     

1.93

%

   

21

%

 

Federal funds sold and agreements

                                                                                                           

to resell securities

   

1,279

     

1.68

     

     

     

18

     

2.01

     

     

       

327

     

1.68

     

1

     

1.95

     

   

Trading account

   

70

     

4.36

     

56

     

2.65

     

67

     

.89

     

26

     

4

       

68

     

2.72

     

58

     

2.55

     

17

   

Investment securities

   

10,044

     

2.51

     

13,034

     

2.41

     

11,075

     

2.48

     

-23

     

-9

       

11,550

     

2.50

     

13,694

     

2.37

     

-16

   

Loans and leases, net of unearned

                                                                                                           

discount

                                                                                                           

Commercial, financial, etc.

   

23,548

     

4.36

     

22,376

     

4.92

     

23,326

     

4.82

     

5

     

1

       

23,306

     

4.80

     

21,832

     

4.60

     

7

   

Real estate - commercial

   

35,039

     

5.06

     

33,586

     

5.27

     

35,200

     

5.14

     

4

     

       

34,885

     

5.21

     

33,682

     

5.01

     

4

   

Real estate - consumer

   

16,330

     

4.15

     

17,421

     

4.31

     

16,673

     

4.20

     

-6

     

-2

       

16,665

     

4.25

     

18,330

     

4.18

     

-9

   

Consumer

   

15,327

     

5.26

     

13,918

     

5.35

     

14,879

     

5.44

     

10

     

3

       

14,638

     

5.43

     

13,555

     

5.19

     

8

   

Total loans and leases, net

   

90,244

     

4.77

     

87,301

     

5.02

     

90,078

     

4.96

     

3

     

       

89,494

     

4.99

     

87,399

     

4.79

     

2

   

Total earning assets

   

110,581

     

4.27

     

107,785

     

4.51

     

108,643

     

4.51

     

3

     

2

       

108,222

     

4.53

     

106,766

     

4.33

     

1

   

Goodwill

   

4,593

             

4,593

             

4,593

             

     

       

4,593

             

4,593

             

   

Core deposit and other intangible

                                                                                                           

assets

   

31

             

50

             

36

             

-37

     

-13

       

38

             

59

             

-35

   

Other assets

   

7,349

             

5,371

             

7,116

             

37

     

3

       

6,731

             

5,541

             

21

   

Total assets

 

$

122,554

             

117,799

             

120,388

             

4

%

   

2

%

   

$

119,584

             

116,959

             

2

%

 
                                                                                                             

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                                                           

Interest-bearing deposits

                                                                                                           

Savings and interest-checking

                                                                                                           

deposits

 

$

57,103

     

.66

     

51,820

     

.54

     

55,680

     

.75

     

10

%

   

3

%

   

$

54,610

     

.67

     

52,102

     

.41

     

5

%

 

Time deposits

   

6,015

     

1.58

     

5,960

     

1.07

     

6,343

     

1.59

     

1

     

-5

       

6,309

     

1.51

     

6,025

     

.85

     

5

   

Deposits at Cayman Islands

                                                                                                           

office

   

1,716

     

1.14

     

693

     

1.81

     

1,522

     

1.62

     

148

     

13

       

1,367

     

1.60

     

394

     

1.43

     

247

   

Total interest-bearing

                                                                                                           

deposits

   

64,834

     

.76

     

58,473

     

.61

     

63,545

     

.85

     

11

     

2

       

62,286

     

.78

     

58,521

     

.47

     

6

   

Short-term borrowings

   

675

     

1.86

     

315

     

1.91

     

1,212

     

2.28

     

114

     

-44

       

1,059

     

2.34

     

331

     

1.63

     

220

   

Long-term borrowings

   

6,941

     

2.83

     

9,239

     

3.03

     

7,121

     

3.13

     

-25

     

-3

       

7,703

     

3.11

     

8,845

     

2.81

     

-13

   

Total interest-bearing liabilities

   

72,450

     

.97

     

68,027

     

.94

     

71,878

     

1.10

     

7

     

1

       

71,048

     

1.05

     

67,697

     

.78

     

5

   

Noninterest-bearing deposits

   

32,069

             

32,631

             

30,550

             

-2

     

5

       

30,763

             

31,893

             

-4

   

Other liabilities

   

2,203

             

1,752

             

2,123

             

26

     

4

       

2,055

             

1,739

             

18

   

Total liabilities

   

106,722

             

102,410

             

104,551

             

4

     

2

       

103,866

             

101,329

             

3

   

Shareholders' equity

   

15,832

             

15,389

             

15,837

             

3

     

       

15,718

             

15,630

             

1

   

Total liabilities and

                                                                                                           

shareholders' equity

 

$

122,554

             

117,799

             

120,388

             

4

%

   

2

%

   

$

119,584

             

116,959

             

2

%

 
                                                                                                             

Net interest spread

           

3.30

             

3.57

             

3.41

                               

3.48

             

3.55

           

Contribution of interest-free funds

           

.34

             

.35

             

.37

                               

.36

             

.28

           

Net interest margin

           

3.64

%

           

3.92

%

           

3.78

%

                             

3.84

%

           

3.83

%

         

 

 

 

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 
   

Three months ended

   

Year ended

 
   

December 31

   

December 31

 
   

2019

   

2018

   

2019

   

2018

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

493,066

     

546,219

     

1,929,149

     

1,918,080

 

Amortization of core deposit and other intangible assets (1)

   

3,171

     

3,950

     

14,359

     

18,075

 

Net operating income

 

$

496,237

     

550,169

     

1,943,508

     

1,936,155

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.60

     

3.76

     

13.75

     

12.74

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.03

     

.11

     

.12

 

Diluted net operating earnings per common share

 

$

3.62

     

3.79

     

13.86

     

12.86

 
                                 

Other expense

                               

Other expense

 

$

823,683

     

802,162

     

3,468,682

     

3,288,062

 

Amortization of core deposit and other intangible assets

   

(4,305)

     

(5,359)

     

(19,490)

     

(24,522)

 

Noninterest operating expense

 

$

819,378

     

796,803

     

3,449,192

     

3,263,540

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

819,378

     

796,803

     

3,449,192

     

3,263,540

 

Taxable-equivalent net interest income

   

1,014,225

     

1,064,918

     

4,153,127

     

4,094,199

 

Other income

   

521,040

     

480,596

     

2,061,679

     

1,856,000

 

Less:  Gain (loss) on bank investment securities

   

(6,452)

     

4,219

     

18,037

     

(6,301)

 

Denominator

 

$

1,541,717

     

1,541,295

     

6,196,769

     

5,956,500

 

Efficiency ratio

   

53.15

%

   

51.70

%

   

55.66

%

   

54.79

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

122,554

     

117,799

     

119,584

     

116,959

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(31)

     

(50)

     

(38)

     

(59)

 

Deferred taxes

   

8

     

13

     

10

     

16

 

Average tangible assets

 

$

117,938

     

113,169

     

114,963

     

112,323

 

Average common equity

                               

Average total equity

 

$

15,832

     

15,389

     

15,718

     

15,630

 

Preferred stock

   

(1,250)

     

(1,232)

     

(1,272)

     

(1,232)

 

Average common equity

   

14,582

     

14,157

     

14,446

     

14,398

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(31)

     

(50)

     

(38)

     

(59)

 

Deferred taxes

   

8

     

13

     

10

     

16

 

Average tangible common equity

 

$

9,966

     

9,527

     

9,825

     

9,762

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

119,873

     

120,097

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(29)

     

(47)

                 

Deferred taxes

   

7

     

13

                 

Total tangible assets

 

$

115,258

     

115,470

                 

Total common equity

                               

Total equity

 

$

15,717

     

15,460

                 

Preferred stock

   

(1,250)

     

(1,232)

                 

Undeclared dividends - cumulative preferred stock

   

     

(3)

                 

Common equity, net of undeclared cumulative preferred dividends

   

14,467

     

14,225

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(29)

     

(47)

                 

Deferred taxes

   

7

     

13

                 

Total tangible common equity

 

$

9,852

     

9,598

                 

__________________

(1)

After any related tax effect.

 

 

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

 
   

Three months ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 
   

2019

   

2019

   

2019

   

2019

   

2018

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

493,066

     

480,081

     

473,260

     

482,742

     

546,219

 

Amortization of core deposit and other intangible assets (1)

   

3,171

     

3,749

     

3,741

     

3,698

     

3,950

 

Net operating income

 

$

496,237

     

483,830

     

477,001

     

486,440

     

550,169

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.60

     

3.47

     

3.34

     

3.35

     

3.76

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.03

     

.03

     

.03

     

.03

 

Diluted net operating earnings per common share

 

$

3.62

     

3.50

     

3.37

     

3.38

     

3.79

 
                                         

Other expense

                                       

Other expense

 

$

823,683

     

877,619

     

873,032

     

894,348

     

802,162

 

Amortization of core deposit and other intangible assets

   

(4,305)

     

(5,088)

     

(5,077)

     

(5,020)

     

(5,359)

 

Noninterest operating expense

 

$

819,378

     

872,531

     

867,955

     

889,328

     

796,803

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

819,378

     

872,531

     

867,955

     

889,328

     

796,803

 

Taxable-equivalent net interest income

   

1,014,225

     

1,035,469

     

1,047,406

     

1,056,027

     

1,064,918

 

Other income

   

521,040

     

527,779

     

512,095

     

500,765

     

480,596

 

Less:  Gain (loss) on bank investment securities

   

(6,452)

     

3,737

     

8,911

     

11,841

     

4,219

 

Denominator

 

$

1,541,717

     

1,559,511

     

1,550,590

     

1,544,951

     

1,541,295

 

Efficiency ratio

   

53.15

%

   

55.95

%

   

55.98

%

   

57.56

%

   

51.70

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

122,554

     

120,388

     

118,487

     

116,839

     

117,799

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(31)

     

(36)

     

(41)

     

(45)

     

(50)

 

Deferred taxes

   

8

     

10

     

11

     

12

     

13

 

Average tangible assets

 

$

117,938

     

115,769

     

113,864

     

112,213

     

113,169

 

Average common equity

                                       

Average total equity

 

$

15,832

     

15,837

     

15,630

     

15,569

     

15,389

 

Preferred stock

   

(1,250)

     

(1,373)

     

(1,232)

     

(1,232)

     

(1,232)

 

Average common equity

   

14,582

     

14,464

     

14,398

     

14,337

     

14,157

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(31)

     

(36)

     

(41)

     

(45)

     

(50)

 

Deferred taxes

   

8

     

10

     

11

     

12

     

13

 

Average tangible common equity

 

$

9,966

     

9,845

     

9,775

     

9,711

     

9,527

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

119,873

     

125,501

     

121,555

     

120,025

     

120,097

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(29)

     

(33)

     

(38)

     

(44)

     

(47)

 

Deferred taxes

   

7

     

8

     

10

     

12

     

13

 

Total tangible assets

 

$

115,258

     

120,883

     

116,934

     

115,400

     

115,470

 

Total common equity

                                       

Total equity

 

$

15,717

     

15,780

     

15,692

     

15,588

     

15,460

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,232)

     

(1,232)

     

(1,232)

 

Undeclared dividends - cumulative preferred stock

   

     

     

(3)

     

(3)

     

(3)

 

Common equity, net of undeclared cumulative preferred
       dividends

   

14,467

     

14,530

     

14,457

     

14,353

     

14,225

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(29)

     

(33)

     

(38)

     

(44)

     

(47)

 

Deferred taxes

   

7

     

8

     

10

     

12

     

13

 

Total tangible common equity

 

$

9,852

     

9,912

     

9,836

     

9,728

     

9,598

 

________________

(1)

After any related tax effect.

 

INVESTOR CONTACT:

Donald J. MacLeod

 

(716) 842-5138

   

MEDIA CONTACT:

C. Michael Zabel

 

(716) 842-5385

   

 

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