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M&T Bank Corporation Announces Third Quarter Results

BUFFALO, N.Y., Oct. 22, 2020 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2020.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $2.75 in the third quarter of 2020, compared with $3.47 in the year-earlier quarter and $1.74 in the second quarter of 2020. GAAP-basis net income was $372 million in the recent quarter, $480 million in the third quarter of 2019 and $241 million in the second 2020 quarter. GAAP-basis net income in the third quarter of 2020 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.06% and 9.53%, respectively, compared with 1.58% and 12.73%, respectively, in the similar 2019 period and .71% and 6.13%, respectively, in the second quarter of 2020. 

Darren J. King, Executive Vice President and Chief Financial Officer, commented on M&T's third quarter results, "Our results for the recent quarter reflect an uptick in economic activity across large portions of our customer base that contributed significantly to higher transaction levels and robust mortgage banking revenues. Coupled with well-controlled expenses that were in line with our expectations and prudent loan loss provisioning, M&T remains well-positioned as we enter the final quarter of 2020."

Earnings Highlights

 
                                         
                           

Change 3Q20 vs.

 

($ in millions, except per share data)

 

3Q20

   

3Q19

   

2Q20

   

3Q19

   

2Q20

 
                                         

Net income

 

$

372

   

$

480

   

$

241

     

-22

%

   

54

%

Net income available to common shareholders  ̶  diluted

 

$

353

   

$

461

   

$

223

     

-23

%

   

58

%

Diluted earnings per common share

 

$

2.75

   

$

3.47

   

$

1.74

     

-21

%

   

58

%

Annualized return on average assets

   

1.06

%

   

1.58

%

   

.71

%

               

Annualized return on average common equity

   

9.53

%

   

12.73

%

   

6.13

%

               

For the first nine months of 2020 and 2019, diluted earnings per common share were $6.42 and $10.16, respectively.  GAAP-basis net income for the nine-month period ended September 30, 2020 totaled $882 million, compared with $1.44 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 during the nine-month period ended September 30, 2020 was .89% and 7.57%, respectively, and was 1.62% and 12.85%, respectively, in the similar 2019 period.

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), 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 $2.77 in the third quarter of 2020, $3.50 in the third quarter of 2019 and $1.76 in the second quarter of 2020.  Net operating income in 2020's third quarter was $375 million, compared with $484 million in the third quarter of 2019 and $244 million in the second quarter of 2020.  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 1.10% and 13.94%, respectively, 1.66% and 18.85%, respectively, in the corresponding quarter of 2019 and .74% and 9.04%, respectively, in the second quarter of 2020.

Diluted net operating earnings per common share during the first nine months of 2020 and 2019 were $6.49 and $10.24, respectively.  Net operating income during the nine-month period ended September 30, 2020 was $891 million, compared with $1.45 billion in the similar 2019 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was .93% and 11.15%, respectively, in the initial nine months of 2020 and was 1.70% and 19.07%, respectively, in the year-earlier period.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $947 million in the recent quarter, compared with $1.04 billion in the third quarter of 2019. That decline resulted from an 83 basis point narrowing of the net interest margin, to 2.95% in the third quarter of 2020 from 3.78% in the year-earlier quarter, that was partially offset by the impact of a $19.1 billion or 18% increase in average earning assets to $127.7 billion in the recent quarter from $108.6 billion in the third  quarter of 2019.   In the second quarter of 2020, taxable-equivalent net interest income was $961 million, the net interest margin was 3.13% and average earning assets were $123.5 billion.  Included in average earning assets in the third and second quarters of 2020 were $6.5 billion and $4.8 billion, respectively, of balances associated with the Paycheck Protection Program ("PPP") loans originated by M&T during 2020.  As compared with the third quarter of 2019, the recent quarter's narrowing of the net interest margin resulted largely from lower yields on loans and deposits held at the Federal Reserve Bank of New York, while the rise in average earning assets reflected higher balances of those same asset types.  The narrowing of the net interest margin from the second quarter to the third quarter of 2020 resulted from lower yields on loans and investment securities and the impact of a $4.4 billion rise in average balances of short-term earning assets, which earn a significantly lower yield than loans and investment securities.

                                         

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 3Q20 vs.

 

($ in millions)

 

3Q20

   

3Q19

   

2Q20

   

3Q19

   

2Q20

 
                                         

Average earning assets

 

$

127,689

   

$

108,643

   

$

123,492

     

18

%

   

3

%

Net interest income  ̶  taxable-equivalent

 

$

947

   

$

1,035

   

$

961

     

-9

%

   

-1

%

Net interest margin

   

2.95

%

   

3.78

%

   

3.13

%

               

Provision for Credit Losses/Asset Quality.  The provision for credit losses totaled $150 million in the third quarter of 2020, up from $45 million in the year-earlier quarter, but down from $325 million in 2020's second quarter. The significantly higher level of the provision in the 2020 quarters reflected projections of expected credit losses under the provisions of new accounting guidance that became effective on January 1, 2020. Those projections included estimates of the impact of the COVID-19 pandemic. Prior to 2020, the provision for credit losses reflected incurred losses only.  Net loan charge-offs were $30 million during the recent quarter, compared with $36 million in the similar quarter of 2019 and $71 million in the second quarter of 2020. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .12% and .16% during the three-month periods ended September 30, 2020 and 2019, respectively, and .29% in the second quarter of 2020.  

Loans classified as nonaccrual totaled $1.24 billion or 1.26% of total loans outstanding at September 30, 2020, compared with $1.16 billion or 1.18% of total loans at June 30, 2020.  Nonaccrual loans outstanding at September 30, 2019 were $1.01 billion or 1.12% of total loans. The adoption of the new accounting guidance previously mentioned resulted in an increase in nonaccrual loans on January 1, 2020 of $171 million. Assets taken in foreclosure of defaulted loans were $50 million at September 30, 2020, compared with $80 million and $67 million at September 30, 2019 and June 30, 2020, 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 $1.76 billion or 1.79% of loans outstanding at September 30, 2020, compared with $1.04 billion or 1.16% at September 30, 2019, $1.64 billion or 1.68% at June 30, 2020 and $1.18 billion or 1.30% as of January 1, 2020 following adoption of the current expected credit loss accounting rules. The adoption of the amended accounting guidance resulted in an increase to the allowance of $132 million on January 1, 2020. The allowance at September 30, 2020 and June 30, 2020 represented 1.91% and 1.79%, respectively, of total loans on those dates, excluding outstanding balances of PPP loans.

Asset Quality Metrics

 
                           

Change 3Q20 vs.

 

($ in millions)

 

3Q20

   

3Q19

   

2Q20

   

3Q19

   

2Q20

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

1,240

   

$

1,005

   

$

1,157

     

23

%

   

7

%

Real estate and other foreclosed assets

 

$

50

   

$

80

   

$

67

     

-37

%

   

-25

%

Total nonperforming assets

 

$

1,290

   

$

1,085

   

$

1,224

     

19

%

   

5

%

Accruing loans past due 90 days or more (1)

 

$

527

   

$

461

   

$

536

     

14

%

   

-2

%

Nonaccrual loans as % of loans outstanding

   

1.26

%

   

1.12

%

   

1.18

%

               
                                         

Allowance for credit losses

 

$

1,759

   

$

1,038

   

$

1,638

     

69

%

   

7

%

Allowance for credit losses as % of loans outstanding

   

1.79

%

   

1.16

%

   

1.68

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

150

   

$

45

   

$

325

     

233

%

   

-54

%

Net charge-offs

 

$

30

   

$

36

   

$

71

     

-18

%

   

-58

%

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

   

.12

%

   

.16

%

   

.29

%

               
           
   

(1)

Predominantly residential real estate loans. Prior to 2020, excludes loans acquired at a discount.

Noninterest Income and Expense.  Noninterest income was $521 million in the recent quarter, $528 million in the year-earlier quarter and $487 million in the second quarter of 2020. As compared with the third quarter of 2019, the recent quarter's higher residential mortgage banking revenues and trust income were more than offset by lower service charges on deposit accounts and trading account and foreign exchange gains. The recent quarter's improvement as compared with the second quarter of 2020 predominantly reflects higher service charges on deposit accounts, residential mortgage banking revenues and merchant discount and credit card fees.

Noninterest Income

 
                                         
                           

Change 3Q20 vs.

 

($ in millions)

 

3Q20

   

3Q19

   

2Q20

   

3Q19

   

2Q20

 
                                         

Mortgage banking revenues

 

$

153

   

$

137

   

$

145

     

12

%

   

6

%

Service charges on deposit accounts

   

91

     

111

     

78

     

-18

%

   

18

%

Trust income

   

150

     

144

     

152

     

4

%

   

-1

%

Brokerage services income

   

12

     

12

     

10

     

-4

%

   

11

%

Trading account and foreign exchange gains

   

4

     

16

     

8

     

-75

%

   

-51

%

Gain on bank investment securities

   

3

     

4

     

7

     

-26

%

   

-60

%

Other revenues from operations

   

108

     

104

     

87

     

4

%

   

23

%

Total

 

$

521

   

$

528

   

$

487

     

-1

%

   

7

%

Noninterest expense totaled $827 million in the third quarter of 2020, compared with $878 million in the corresponding quarter of 2019 and $807 million in the second quarter of 2020.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $823 million in the recent quarter, $873 million in the third quarter of 2019 and $803 million in 2020's second quarter. Contributing to the decreased level of noninterest expenses in the recent quarter as compared with the year-earlier quarter were lower costs for professional and outside services, advertising and marketing, and travel and entertainment. Additionally, the third quarter of 2019 included a $14 million addition to the valuation allowance for capitalized mortgage servicing rights, reflecting the impact of lower interest rates at that time on the valuation of such servicing rights. There was no similar increase to the valuation allowance in the recent quarter. As compared with the second 2020 quarter, higher costs for salaries and employee benefits in the recent quarter, reflective of improving business activity and one additional day, were partially offset by the impact of a $10 million addition to the valuation allowance for capitalized mortgage servicing rights recognized in the second quarter of 2020.

Noninterest Expense

 
                                         
                           

Change 3Q20 vs.

 

($ in millions)

 

3Q20

   

3Q19

   

2Q20

   

3Q19

   

2Q20

 
                                         

Salaries and employee benefits

 

$

479

   

$

477

   

$

459

     

     

4

%

Equipment and net occupancy

   

81

     

83

     

77

     

-2

%

   

5

%

Outside data processing and software

   

65

     

60

     

61

     

7

%

   

5

%

FDIC assessments

   

12

     

10

     

14

     

22

%

   

-15

%

Advertising and marketing

   

12

     

22

     

10

     

-46

%

   

20

%

Printing, postage and supplies

   

9

     

10

     

11

     

-8

%

   

-16

%

Amortization of core deposit and other intangible assets

   

4

     

5

     

4

     

-23

%

   

 

Other costs of operations

   

165

     

211

     

171

     

-22

%

   

-3

%

Total

 

$

827

   

$

878

   

$

807

     

-6

%

   

2

%

                                         

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 56.2% in the third quarter of 2020, 56.0% in the year-earlier quarter and 55.7% in the second quarter of 2020.

Balance Sheet.  M&T had total assets of $138.6 billion at September 30, 2020, compared with $125.5 billion and $139.5 billion at September 30, 2019 and June 30, 2020, respectively. Loans and leases, net of unearned discount, were $98.4 billion at September 30, 2020, up from $89.8 billion at September 30, 2019 and $97.8 billion at June 30, 2020. The increase in total loans and leases at the recent quarter-end as compared with the third quarter of 2019 was driven largely by growth in commercial loans of $4.7 billion and commercial real estate loans of $2.6 billion. The commercial loan growth reflects loans originated as part of the PPP, which totaled $6.5 billion at September 30, 2020. Total deposits rose to $115.2 billion at the recent quarter-end, compared with $95.1 billion at September 30, 2019 and $115.0 billion at June 30, 2020. The higher levels of deposits at the two most recent quarter-ends as compared with September 30, 2019 reflect both increased commercial and consumer deposits, as well as higher deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $16.1 billion, or 11.61% of total assets at September 30, 2020, compared with $15.8 billion, or 12.57% at September 30, 2019 and $15.9 billion, or 11.43% at June 30, 2020. Common shareholders' equity was $14.9 billion, or $115.75 per share, at September 30, 2020, up from $14.5 billion, or $109.84 per share, a year-earlier and $14.7 billion, or $114.54 per share, at June 30, 2020. Tangible equity per common share was $79.85 at September 30, 2020, $74.93 at September 30, 2019 and $78.62 at June 30, 2020. 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, 2020, up from 9.50% three months earlier.

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 #1169149.  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 29, 2020 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #1169149.  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 and related conference call may contain 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.  Any statement that does not describe historical or current facts is a forward-looking statement, including statements regarding the potential effects of the Coronavirus Disease 2019 ("COVID-19") pandemic on M&T's business, financial condition, liquidity and results of operations. 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; risks and uncertainties relating to the impact of the COVID-19 pandemic; 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 or regulation; 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, regulatory agencies or legislation; 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.

Further, statements about the potential effects of the COVID-19 pandemic on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, clients, third parties and M&T.

M&T provides further detail regarding these risks and uncertainties in its 2019 Form 10-K and subsequent Form 10-Qs, including in the respective Risk Factors sections of such reports, as well as in subsequent SEC filings. Forward-looking statements speak only as of the date made, and M&T does not assume any duty and does not undertake to update forward-looking statements.

 

Financial Highlights

 
   

Three months ended

           

Nine months ended

         
   

September 30

           

September 30

         

Amounts in thousands, except per share

 

2020

   

2019

   

Change

   

2020

   

2019

   

Change

 

Performance

                                               

Net income

 

$

372,136

     

480,081

     

-22

%

 

$

882,012

     

1,436,083

     

-39

%

Net income available to common shareholders

   

353,400

     

461,410

     

-23

%

   

827,204

     

1,376,129

     

-40

%

Per common share:

                                               

Basic earnings

 

$

2.75

     

3.47

     

-21

%

 

$

6.42

     

10.16

     

-37

%

Diluted earnings

   

2.75

     

3.47

     

-21

%

   

6.42

     

10.16

     

-37

%

Cash dividends

 

$

1.10

     

1.00

     

10

%

 

$

3.30

     

3.00

     

10

%

Common shares outstanding:

                                               

Average - diluted (1)

   

128,355

     

132,999

     

-3

%

   

128,813

     

135,443

     

-5

%

Period end (2)

   

128,303

     

132,277

     

-3

%

   

128,303

     

132,277

     

-3

%

Return on (annualized):

                                               

Average total assets

   

1.06

%

   

1.58

%

           

.89

%

   

1.62

%

       

Average common shareholders' equity

   

9.53

%

   

12.73

%

           

7.57

%

   

12.85

%

       

Taxable-equivalent net interest income

 

$

947,114

     

1,035,469

     

-9

%

 

$

2,890,353

     

3,138,902

     

-8

%

Yield on average earning assets

   

3.13

%

   

4.51

%

           

3.53

%

   

4.62

%

       

Cost of interest-bearing liabilities

   

.30

%

   

1.10

%

           

.50

%

   

1.09

%

       

Net interest spread

   

2.83

%

   

3.41

%

           

3.03

%

   

3.53

%

       

Contribution of interest-free funds

   

.12

%

   

.37

%

           

.19

%

   

.38

%

       

Net interest margin

   

2.95

%

   

3.78

%

           

3.22

%

   

3.91

%

       

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

   

.12

%

   

.16

%

           

.21

%

   

.15

%

       

Net operating results (3)

                                               

Net operating income

 

$

375,029

     

483,830

     

-22

%

 

$

890,692

     

1,447,271

     

-38

%

Diluted net operating earnings per common share

   

2.77

     

3.50

     

-21

%

   

6.49

     

10.24

     

-37

%

Return on (annualized):

                                               

Average tangible assets

   

1.10

%

   

1.66

%

           

.93

%

   

1.70

%

       

Average tangible common equity

   

13.94

%

   

18.85

%

           

11.15

%

   

19.07

%

       

Efficiency ratio

   

56.17

%

   

55.95

%

           

56.97

%

   

56.49

%

       
                                                 
   

At September 30

                             

Loan quality

 

2020

   

2019

   

Change

                         

Nonaccrual loans

 

$

1,239,972

     

1,005,249

     

23

%

                       

Real estate and other foreclosed assets

   

49,872

     

79,735

     

-37

%

                       

Total nonperforming assets

 

$

1,289,844

     

1,084,984

     

19

%

                       

Accruing loans past due 90 days or more (4)

 

$

527,258

     

461,162

     

14

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

45,975

     

43,144

     

7

%

                       

Accruing loans past due 90 days or more

   

505,446

     

434,132

     

16

%

                       

Renegotiated loans

 

$

242,581

     

240,781

     

1

%

                       

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

 

N/A

     

40,733

     

                         

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

N/A

     

453,382

     

                         

Carrying amount

 

N/A

     

253,496

     

                         

Nonaccrual loans to total net loans

   

1.26

%

   

1.12

%

                               

Allowance for credit losses to total loans

   

1.79

%

   

1.16

%

                               
           
   

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

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

(4)

Predominantly residential real estate loans. Prior to 2020, excludes loans acquired at a discount.

(5)

Prior to 2020, 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)

Prior to 2020, 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

 

2020

   

2020

   

2020

   

2019

   

2019

 

Performance

                                       

Net income

 

$

372,136

     

241,054

     

268,822

     

493,066

     

480,081

 

Net income available to common shareholders

   

353,400

     

223,099

     

250,701

     

473,372

     

461,410

 

Per common share:

                                       

Basic earnings

 

$

2.75

     

1.74

     

1.93

     

3.60

     

3.47

 

Diluted earnings

   

2.75

     

1.74

     

1.93

     

3.60

     

3.47

 

Cash dividends

 

$

1.10

     

1.10

     

1.10

     

1.10

     

1.00

 

Common shares outstanding:

                                       

Average - diluted (1)

   

128,355

     

128,333

     

129,755

     

131,549

     

132,999

 

Period end (2)

   

128,303

     

128,294

     

128,282

     

130,589

     

132,277

 

Return on (annualized):

                                       

Average total assets

   

1.06

%

   

.71

%

   

.90

%

   

1.60

%

   

1.58

%

Average common shareholders' equity

   

9.53

%

   

6.13

%

   

7.00

%

   

12.95

%

   

12.73

%

Taxable-equivalent net interest income

 

$

947,114

     

961,371

     

981,868

     

1,014,225

     

1,035,469

 

Yield on average earning assets

   

3.13

%

   

3.38

%

   

4.18

%

   

4.27

%

   

4.51

%

Cost of interest-bearing liabilities

   

.30

%

   

.40

%

   

.83

%

   

.97

%

   

1.10

%

Net interest spread

   

2.83

%

   

2.98

%

   

3.35

%

   

3.30

%

   

3.41

%

Contribution of interest-free funds

   

.12

%

   

.15

%

   

.30

%

   

.34

%

   

.37

%

Net interest margin

   

2.95

%

   

3.13

%

   

3.65

%

   

3.64

%

   

3.78

%

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

   

.12

%

   

.29

%

   

.22

%

   

.18

%

   

.16

%

Net operating results (3)

                                       

Net operating income

 

$

375,029

     

243,958

     

271,705

     

496,237

     

483,830

 

Diluted net operating earnings per common share

   

2.77

     

1.76

     

1.95

     

3.62

     

3.50

 

Return on (annualized):

                                       

Average tangible assets

   

1.10

%

   

.74

%

   

.94

%

   

1.67

%

   

1.66

%

Average tangible common equity

   

13.94

%

   

9.04

%

   

10.39

%

   

19.08

%

   

18.85

%

Efficiency ratio

   

56.17

%

   

55.71

%

   

58.91

%

   

53.15

%

   

55.95

%

                                         
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Loan quality

 

2020

   

2020

   

2020

   

2019

   

2019

 

Nonaccrual loans

 

$

1,239,972

     

1,156,650

     

1,061,748

     

963,112

     

1,005,249

 

Real estate and other foreclosed assets

   

49,872

     

66,763

     

83,605

     

85,646

     

79,735

 

Total nonperforming assets

 

$

1,289,844

     

1,223,413

     

1,145,353

     

1,048,758

     

1,084,984

 

Accruing loans past due 90 days or more (4)

 

$

527,258

     

535,755

     

530,317

     

518,728

     

461,162

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

45,975

     

51,165

     

50,561

     

50,891

     

43,144

 

Accruing loans past due 90 days or more

   

505,446

     

454,269

     

464,243

     

479,829

     

434,132

 

Renegotiated loans

 

$

242,581

     

234,768

     

232,439

     

234,424

     

240,781

 

Accruing loans acquired at a discount past due 90 days or

        more (5)

 

N/A

   

N/A

   

N/A

     

39,632

     

40,733

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

N/A

   

N/A

   

N/A

     

415,413

     

453,382

 

Carrying amount

 

N/A

   

N/A

   

N/A

     

227,545

     

253,496

 

Nonaccrual loans to total net loans

   

1.26

%

   

1.18

%

   

1.13

%

   

1.06

%

   

1.12

%

Allowance for credit losses to total loans

   

1.79

%

   

1.68

%

   

1.47

%

   

1.16

%

   

1.16

%

           
   

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

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

(4)

Predominantly residential real estate loans. Prior to 2020, excludes loans acquired at a discount.

(5)

Prior to 2020, 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)

Prior to 2020, 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

 

2020

   

2019

   

Change

   

2020

   

2019

   

Change

 

Interest income

 

$

1,001,161

     

1,229,469

     

-19

%

 

$

3,153,822

     

3,693,691

     

-15

%

Interest expense

   

58,066

     

199,579

     

-71

     

276,785

     

572,260

     

-52

 

Net interest income

   

943,095

     

1,029,890

     

-8

     

2,877,037

     

3,121,431

     

-8

 

Provision for credit losses

   

150,000

     

45,000

   

233

     

725,000

     

122,000

     

494

 

Net interest income after provision for credit losses

   

793,095

     

984,890

     

-19

     

2,152,037

     

2,999,431

     

-28

 

Other income

                                               

Mortgage banking revenues

   

153,267

     

137,004

     

12

     

426,200

     

339,636

     

25

 

Service charges on deposit accounts

   

91,355

     

111,092

     

-18

     

274,971

     

321,991

     

-15

 

Trust income

   

149,937

     

143,915

     

4

     

450,570

     

421,083

     

7

 

Brokerage services income

   

11,602

     

12,077

     

-4

     

35,194

     

37,031

     

-5

 

Trading account and foreign exchange gains

   

4,026

     

16,072

     

-75

     

33,332

     

45,327

     

-26

 

Gain (loss) on bank investment securities

   

2,773

     

3,737

     

-26

     

(11,040)

     

24,489

     

 

Other revenues from operations

   

107,601

     

103,882

     

4

     

327,967

     

351,082

     

-7

 

Total other income

   

520,561

     

527,779

     

-1

     

1,537,194

     

1,540,639

     

 

Other expense

                                               

Salaries and employee benefits

   

478,897

     

476,780

     

     

1,474,582

     

1,431,717

     

3

 

Equipment and net occupancy

   

81,080

     

82,690

     

-2

     

237,809

     

241,187

     

-1

 

Outside data processing and software

   

64,660

     

60,360

     

7

     

190,446

     

168,011

     

13

 

FDIC assessments

   

12,121

     

9,906

     

22

     

38,599

     

29,104

     

33

 

Advertising and marketing

   

11,855

     

22,088

     

-46

     

44,072

     

66,409

     

-34

 

Printing, postage and supplies

   

9,422

     

10,201

     

-8

     

31,534

     

30,380

     

4

 

Amortization of core deposit and other
   intangible assets

   

3,914

     

5,088

     

-23

     

11,740

     

15,185

     

-23

 

Other costs of operations

   

164,825

     

210,506

     

-22

     

511,450

     

663,006

     

-23

 

Total other expense

   

826,774

     

877,619

     

-6

     

2,540,232

     

2,644,999

     

-4

 

Income before income taxes

   

486,882

     

635,050

     

-23

     

1,148,999

     

1,895,071

     

-39

 

Applicable income taxes

   

114,746

     

154,969

     

-26

     

266,987

     

458,988

     

-42

 

Net income

 

$

372,136

     

480,081

     

-22

%

 

$

882,012

     

1,436,083

     

-39

%

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 
   

Three months ended

 
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Dollars in thousands

 

2020

   

2020

   

2020

   

2019

   

2019

 

Interest income

 

$

1,001,161

     

1,032,242

     

1,120,419

     

1,185,902

     

1,229,469

 

Interest expense

   

58,066

     

75,105

     

143,614

     

177,069

     

199,579

 

Net interest income

   

943,095

     

957,137

     

976,805

     

1,008,833

     

1,029,890

 

Provision for credit losses

   

150,000

     

325,000

     

250,000

     

54,000

     

45,000

 

Net interest income after provision for credit losses

   

793,095

     

632,137

     

726,805

     

954,833

     

984,890

 

Other income

                                       

Mortgage banking revenues

   

153,267

     

145,024

     

127,909

     

118,134

     

137,004

 

Service charges on deposit accounts

   

91,355

     

77,455

     

106,161

     

110,987

     

111,092

 

Trust income

   

149,937

     

151,882

     

148,751

     

151,525

     

143,915

 

Brokerage services income

   

11,602

     

10,463

     

13,129

     

11,891

     

12,077

 

Trading account and foreign exchange gains

   

4,026

     

8,290

     

21,016

     

16,717

     

16,072

 

Gain (loss) on bank investment securities

   

2,773

     

6,969

     

(20,782)

     

(6,452)

     

3,737

 

Other revenues from operations

   

107,601

     

87,190

     

133,176

     

118,238

     

103,882

 

Total other income

   

520,561

     

487,273

     

529,360

     

521,040

     

527,779

 

Other expense

                                       

Salaries and employee benefits

   

478,897

     

458,842

     

536,843

     

469,080

     

476,780

 

Equipment and net occupancy

   

81,080

     

77,089

     

79,640

     

82,892

     

82,690

 

Outside data processing and software

   

64,660

     

61,376

     

64,410

     

61,720

     

60,360

 

FDIC assessments

   

12,121

     

14,207

     

12,271

     

12,431

     

9,906

 

Advertising and marketing

   

11,855

     

9,842

     

22,375

     

27,063

     

22,088

 

Printing, postage and supplies

   

9,422

     

11,260

     

10,852

     

9,513

     

10,201

 

Amortization of core deposit and other
   intangible assets

   

3,914

     

3,913

     

3,913

     

4,305

     

5,088

 

Other costs of operations

   

164,825

     

170,513

     

176,112

     

156,679

     

210,506

 

Total other expense

   

826,774

     

807,042

     

906,416

     

823,683

     

877,619

 

Income before income taxes

   

486,882

     

312,368

     

349,749

     

652,190

     

635,050

 

Applicable income taxes

   

114,746

     

71,314

     

80,927

     

159,124

     

154,969

 

Net income

 

$

372,136

     

241,054

     

268,822

     

493,066

     

480,081

 

 

 

Condensed Consolidated Balance Sheet

 
   

September 30

           

Dollars in thousands

 

2020

   

2019

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,489,232

     

1,818,861

     

-18

 

%

Interest-bearing deposits at banks

   

20,197,937

     

12,495,524

     

62

   

Federal funds sold

   

     

200

     

   

Trading account

   

1,215,573

     

614,256

     

98

   

Investment securities

   

7,723,004

     

10,677,583

     

-28

   

Loans and leases:

                         

Commercial, financial, etc.

   

27,891,648

     

23,201,372

     

20

   

Real estate - commercial

   

37,582,084

     

34,945,231

     

8

   

Real estate - consumer

   

16,663,708

     

16,500,955

     

1

   

Consumer

   

16,309,608

     

15,175,635

     

7

   

Total loans and leases, net of unearned discount

   

98,447,048

     

89,823,193

     

10

   

Less: allowance for credit losses

   

1,758,505

     

1,038,437

     

69

   

Net loans and leases

   

96,688,543

     

88,784,756

     

9

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

17,294

     

33,339

     

-48

   

Other assets

   

6,702,048

     

6,483,295

     

3

   

Total assets

 

$

138,626,743

     

125,500,926

     

10

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

44,201,670

     

31,766,724

     

39

 

%

Interest-bearing deposits

   

70,061,680

     

61,785,212

     

13

   

Deposits at Cayman Islands office

   

899,989

     

1,561,997

     

-42

   

Total deposits

   

115,163,339

     

95,113,933

     

21

   

Short-term borrowings

   

46,123

     

5,513,896

     

-99

   

Accrued interest and other liabilities

   

1,857,383

     

2,090,762

     

-11

   

Long-term borrowings

   

5,458,885

     

7,002,524

     

-22

   

Total liabilities

   

122,525,730

     

109,721,115

     

12

   

Shareholders' equity:

                         

Preferred

   

1,250,000

     

1,250,000

     

   

Common

   

14,851,013

     

14,529,811

     

2

   

Total shareholders' equity

   

16,101,013

     

15,779,811

     

2

   

Total liabilities and shareholders' equity

 

$

138,626,743

     

125,500,926

     

10

 

%

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

       
   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

September 30,

 

Dollars in thousands

 

2020

   

2020

   

2020

   

2019

   

2019

 

ASSETS

                                       

Cash and due from banks

 

$

1,489,232

     

1,354,815

     

1,298,192

     

1,432,805

     

1,818,861

 

Interest-bearing deposits at banks

   

20,197,937

     

20,888,341

     

8,896,307

     

7,190,154

     

12,495,524

 

Federal funds sold

   

     

     

     

3,500

     

200

 

Trading account

   

1,215,573

     

1,293,534

     

1,224,291

     

470,129

     

614,256

 

Investment securities

   

7,723,004

     

8,454,344

     

8,956,590

     

9,497,251

     

10,677,583

 

Loans and leases:

                                       

Commercial, financial, etc.

   

27,891,648

     

29,203,862

     

26,243,648

     

23,838,168

     

23,201,372

 

Real estate - commercial

   

37,582,084

     

37,159,451

     

36,684,106

     

35,541,914

     

34,945,231

 

Real estate - consumer

   

16,663,708

     

15,611,462

     

15,643,014

     

16,156,094

     

16,500,955

 

Consumer

   

16,309,608

     

15,782,773

     

15,571,507

     

15,386,693

     

15,175,635

 

Total loans and leases, net of unearned discount

   

98,447,048

     

97,757,548

     

94,142,275

     

90,922,869

     

89,823,193

 

Less: allowance for credit losses

   

1,758,505

     

1,638,236

     

1,384,366

     

1,051,071

     

1,038,437

 

Net loans and leases

   

96,688,543

     

96,119,312

     

92,757,909

     

89,871,798

     

88,784,756

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

17,294

     

21,208

     

25,121

     

29,034

     

33,339

 

Other assets

   

6,702,048

     

6,812,303

     

6,826,311

     

6,784,974

     

6,483,295

 

Total assets

 

$

138,626,743

     

139,536,969

     

124,577,833

     

119,872,757

     

125,500,926

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

44,201,670

     

45,397,843

     

35,554,715

     

32,396,407

     

31,766,724

 

Interest-bearing deposits

   

70,061,680

     

68,701,832

     

63,410,672

     

60,689,618

     

61,785,212

 

Deposits at Cayman Islands office

   

899,989

     

868,284

     

1,217,921

     

1,684,044

     

1,561,997

 

Total deposits

   

115,163,339

     

114,967,959

     

100,183,308

     

94,770,069

     

95,113,933

 

Short-term borrowings

   

46,123

     

52,298

     

59,180

     

62,363

     

5,513,896

 

Accrued interest and other liabilities

   

1,857,383

     

2,250,316

     

2,198,116

     

2,337,490

     

2,090,762

 

Long-term borrowings

   

5,458,885

     

6,321,291

     

6,321,435

     

6,986,186

     

7,002,524

 

Total liabilities

   

122,525,730

     

123,591,864

     

108,762,039

     

104,156,108

     

109,721,115

 

Shareholders' equity:

                                       

Preferred

   

1,250,000

     

1,250,000

     

1,250,000

     

1,250,000

     

1,250,000

 

Common

   

14,851,013

     

14,695,105

     

14,565,794

     

14,466,649

     

14,529,811

 

Total shareholders' equity

   

16,101,013

     

15,945,105

     

15,815,794

     

15,716,649

     

15,779,811

 

Total liabilities and shareholders' equity

 

$

138,626,743

     

139,536,969

     

124,577,833

     

119,872,757

     

125,500,926

 

 

 

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, 2020 from

     

September 30,

 

Change

 

Dollars in millions

 

2020

 

2019

 

2020

 

September 30,

 

June 30,

   

2020

 

2019

 

in

 
   

Balance

   

Rate

 

Balance

   

Rate

 

Balance

   

Rate

 

2019

 

2020

   

Balance

 

Rate

 

Balance

   

Rate

 

balance

 

ASSETS

                                                                                 

Interest-bearing deposits at banks

 

$

16,440

   

.10

%

 

7,405

   

2.16

%

 

16,454

   

.10

%

 

122

%

 

%

   

$

13,021

 

.28

%

 

6,054

   

2.30

%

 

115

%

Federal funds sold and agreements

                                                                                 

to resell securities

   

5,113

   

.13

   

18

   

2.01

   

692

   

.11

   

   

639

       

2,353

 

.33

   

6

   

2.06

   

 

Trading account

   

50

   

1.62

   

67

   

.89

   

49

   

2.04

   

-26

   

2

       

54

 

2.15

   

67

   

2.15

   

-19

 

Investment securities

   

7,876

   

1.95

   

11,075

   

2.48

   

8,500

   

2.24

   

-29

   

-7

       

8,490

 

2.14

   

12,058

   

2.50

   

-30

 

Loans and leases, net of unearned

                                                                                 

discount

                                                                                 

Commercial, financial, etc.

   

28,333

   

3.05

   

23,326

   

4.82

   

29,733

   

3.10

   

21

   

-5

       

27,455

 

3.37

   

23,225

   

4.95

   

18

 

Real estate - commercial

   

37,243

   

4.19

   

35,200

   

5.14

   

36,947

   

4.42

   

6

   

1

       

36,743

 

4.47

   

34,833

   

5.26

   

5

 

Real estate - consumer

   

16,558

   

3.69

   

16,673

   

4.20

   

15,599

   

4.00

   

-1

   

6

       

16,032

 

3.90

   

16,778

   

4.29

   

-4

 

Consumer

   

16,076

   

4.76

   

14,879

   

5.44

   

15,518

   

4.85

   

8

   

4

       

15,683

 

4.96

   

14,405

   

5.49

   

9

 

Total loans and leases, net

   

98,210

   

3.89

   

90,078

   

4.96

   

97,797

   

4.05

   

9

   

       

95,913

 

4.17

   

89,241

   

5.06

   

7

 

Total earning assets

   

127,689

   

3.13

   

108,643

   

4.51

   

123,492

   

3.38

   

18

   

3

       

119,831

 

3.53

   

107,426

   

4.62

   

12

 

Goodwill

   

4,593

         

4,593

         

4,593

         

   

       

4,593

       

4,593

         

 

Core deposit and other intangible

                                                                                 

assets

   

19

         

36

         

23

         

-46

   

-17

       

23

       

41

         

-43

 

Other assets

   

7,880

         

7,116

         

8,338

         

11

   

-5

       

7,983

       

6,524

         

22

 

Total assets

 

$

140,181

         

120,388

         

136,446

         

16

%

 

3

%

   

$

132,430

       

118,584

         

12

%

                                                                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                                 

Interest-bearing deposits

                                                                                 

Savings and interest-checking

                                                                                 

deposits

 

$

65,848

   

.14

   

55,680

   

.75

   

62,927

   

.17

   

18

%

 

5

%

   

$

61,729

 

.27

   

53,770

   

.68

   

15

%

Time deposits

   

4,715

   

1.22

   

6,343

   

1.59

   

5,354

   

1.49

   

-26

   

-12

       

5,245

 

1.43

   

6,408

   

1.49

   

-18

 

Deposits at Cayman Islands

                                                                                 

office

   

957

   

.10

   

1,522

   

1.62

   

1,017

   

.06

   

-37

   

-6

       

1,214

 

.42

   

1,249

   

1.82

   

-3

 

Total interest-bearing

                                                                                 

deposits

   

71,520

   

.21

   

63,545

   

.85

   

69,298

   

.27

   

13

   

3

       

68,188

 

.37

   

61,427

   

.79

   

11

 

Short-term borrowings

   

62

   

.01

   

1,212

   

2.28

   

63

   

.01

   

-95

   

-1

       

61

 

.06

   

1,189

   

2.43

   

-95

 

Long-term borrowings

   

5,499

   

1.51

   

7,121

   

3.13

   

6,189

   

1.86

   

-23

   

-11

       

5,974

 

2.01

   

7,959

   

3.19

   

-25

 

Total interest-bearing liabilities

   

77,081

   

.30

   

71,878

   

1.10

   

75,550

   

.40

   

7

   

2

       

74,223

 

.50

   

70,575

   

1.09

   

5

 

Noninterest-bearing deposits

   

44,786

         

30,550

         

42,497

         

47

   

5

       

39,931

       

30,323

         

32

 

Other liabilities

   

2,241

         

2,123

         

2,446

         

6

   

-8

       

2,360

       

2,007

         

18

 

Total liabilities

   

124,108

         

104,551

         

120,493

         

19

   

3

       

116,514

       

102,905

         

13

 

Shareholders' equity

   

16,073

         

15,837

         

15,953

         

1

   

1

       

15,916

       

15,679

         

2

 

Total liabilities and

                                                                                 

shareholders' equity

 

$

140,181

         

120,388

         

136,446

         

16

%

 

3

%

   

$

132,430

       

118,584

         

12

%

                                                                                   

Net interest spread

         

2.83

         

3.41

         

2.98

                       

3.03

         

3.53

       

Contribution of interest-free funds

         

.12

         

.37

         

.15

                       

.19

         

.38

       

Net interest margin

         

2.95

%

       

3.78

%

       

3.13

%

                     

3.22

%

       

3.91

%

     

 

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 
   

Three months ended

   

Nine months ended

 
   

September 30

   

September 30

 
   

2020

   

2019

   

2020

   

2019

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

372,136

     

480,081

     

882,012

     

1,436,083

 

Amortization of core deposit and other intangible assets (1)

   

2,893

     

3,749

     

8,680

     

11,188

 

Net operating income

 

$

375,029

     

483,830

     

890,692

     

1,447,271

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

2.75

     

3.47

     

6.42

     

10.16

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.03

     

.07

     

.08

 

Diluted net operating earnings per common share

 

$

2.77

     

3.50

     

6.49

     

10.24

 
                                 

Other expense

                               

Other expense

 

$

826,774

     

877,619

     

2,540,232

     

2,644,999

 

Amortization of core deposit and other intangible assets

   

(3,914)

     

(5,088)

     

(11,740)

     

(15,185)

 

Noninterest operating expense

 

$

822,860

     

872,531

     

2,528,492

     

2,629,814

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

822,860

     

872,531

     

2,528,492

     

2,629,814

 

Taxable-equivalent net interest income

   

947,114

     

1,035,469

     

2,890,353

     

3,138,902

 

Other income

   

520,561

     

527,779

     

1,537,194

     

1,540,639

 

Less:  Gain (loss) on bank investment securities

   

2,773

     

3,737

     

(11,040)

     

24,489

 

Denominator

 

$

1,464,902

     

1,559,511

     

4,438,587

     

4,655,052

 

Efficiency ratio

   

56.17

%

   

55.95

%

   

56.97

%

   

56.49

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

140,181

     

120,388

     

132,430

     

118,584

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(19)

     

(36)

     

(23)

     

(41)

 

Deferred taxes

   

5

     

10

     

6

     

11

 

Average tangible assets

 

$

135,574

     

115,769

     

127,820

     

113,961

 

Average common equity

                               

Average total equity

 

$

16,073

     

15,837

     

15,916

     

15,679

 

Preferred stock

   

(1,250)

     

(1,373)

     

(1,250)

     

(1,279)

 

Average common equity

   

14,823

     

14,464

     

14,666

     

14,400

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(19)

     

(36)

     

(23)

     

(41)

 

Deferred taxes

   

5

     

10

     

6

     

11

 

Average tangible common equity

 

$

10,216

     

9,845

     

10,056

     

9,777

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

138,627

     

125,501

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(17)

     

(33)

                 

Deferred taxes

   

4

     

8

                 

Total tangible assets

 

$

134,021

     

120,883

                 

Total common equity

                               

Total equity

 

$

16,101

     

15,780

                 

Preferred stock

   

(1,250)

     

(1,250)

                 

Common equity, net of undeclared cumulative preferred dividends

   

14,851

     

14,530

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(17)

     

(33)

                 

Deferred taxes

   

4

     

8

                 

Total tangible common equity

 

$

10,245

   

$

9,912

                 
   
   

(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,

 
   

2020

   

2020

   

2020

   

2019

   

2019

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

372,136

     

241,054

     

268,822

     

493,066

     

480,081

 

Amortization of core deposit and other intangible assets (1)

   

2,893

     

2,904

     

2,883

     

3,171

     

3,749

 

Net operating income

 

$

375,029

     

243,958

     

271,705

     

496,237

     

483,830

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

2.75

     

1.74

     

1.93

     

3.60

     

3.47

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.02

     

.02

     

.02

     

.03

 

Diluted net operating earnings per common share

 

$

2.77

     

1.76

     

1.95

     

3.62

     

3.50

 
                                         

Other expense

                                       

Other expense

 

$

826,774

     

807,042

     

906,416

     

823,683

     

877,619

 

Amortization of core deposit and other intangible assets

   

(3,914)

     

(3,913)

     

(3,913)

     

(4,305)

     

(5,088)

 

Noninterest operating expense

 

$

822,860

     

803,129

     

902,503

     

819,378

     

872,531

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

822,860

     

803,129

     

902,503

     

819,378

     

872,531

 

Taxable-equivalent net interest income

   

947,114

     

961,371

     

981,868

     

1,014,225

     

1,035,469

 

Other income

   

520,561

     

487,273

     

529,360

     

521,040

     

527,779

 

Less:  Gain (loss) on bank investment securities

   

2,773

     

6,969

     

(20,782)

     

(6,452)

     

3,737

 

Denominator

 

$

1,464,902

     

1,441,675

     

1,532,010

     

1,541,717

     

1,559,511

 

Efficiency ratio

   

56.17

%

   

55.71

%

   

58.91

%

   

53.15

%

   

55.95

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

140,181

     

136,446

     

120,585

     

122,554

     

120,388

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(19)

     

(23)

     

(27)

     

(31)

     

(36)

 

Deferred taxes

   

5

     

6

     

7

     

8

     

10

 

Average tangible assets

 

$

135,574

     

131,836

     

115,972

     

117,938

     

115,769

 

Average common equity

                                       

Average total equity

 

$

16,073

     

15,953

     

15,720

     

15,832

     

15,837

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

     

(1,373)

 

Average common equity

   

14,823

     

14,703

     

14,470

     

14,582

     

14,464

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(19)

     

(23)

     

(27)

     

(31)

     

(36)

 

Deferred taxes

   

5

     

6

     

7

     

8

     

10

 

Average tangible common equity

 

$

10,216

     

10,093

     

9,857

     

9,966

     

9,845

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

138,627

     

139,537

     

124,578

     

119,873

     

125,501

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(17)

     

(21)

     

(25)

     

(29)

     

(33)

 

Deferred taxes

   

4

     

5

     

6

     

7

     

8

 

Total tangible assets

 

$

134,021

     

134,928

     

119,966

     

115,258

     

120,883

 

Total common equity

                                       

Total equity

 

$

16,101

     

15,945

     

15,816

     

15,717

     

15,780

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

 

Common equity, net of undeclared cumulative preferred
  
dividends

   

14,851

     

14,695

     

14,566

     

14,467

     

14,530

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(17)

     

(21)

     

(25)

     

(29)

     

(33)

 

Deferred taxes

   

4

     

5

     

6

     

7

     

8

 

Total tangible common equity

 

$

10,245

     

10,086

     

9,954

     

9,852

     

9,912

 
   
   

(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