M&T Bank Corporation Announces 2020 Fourth Quarter And Full-Year Results

BUFFALO, N.Y., Jan. 21, 2021 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2020.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.52 in the fourth quarter of 2020, compared with $3.60 in the year-earlier quarter and $2.75 in the third quarter of 2020. GAAP-basis net income was $471 million in the recent quarter, $493 million in the final quarter of 2019 and $372 million in the third 2020 quarter. GAAP-basis net income in the fourth quarter of 2020 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.30% and 12.07%, respectively, compared with 1.60% and 12.95%, respectively, in the corresponding 2019 period and 1.06% and 9.53%, respectively, in the third quarter of 2020. 

Darren J. King, M&T's Executive Vice President and Chief Financial Officer, commented, "In what has been an extremely challenging year, M&T responded quickly and effectively to take on those challenges while continuing to meet the needs of our customers through the extraordinary efforts of our employees.  Although the effects of the pandemic and the low interest rate environment impacted M&T's financial results in 2020, we were pleased with the growth experienced in the mortgage banking and trust businesses, as well as the role we played in providing our customers the opportunity to participate in the Paycheck Protection Program."

Earnings Highlights

 
                                         
                           

Change 4Q20 vs.

 

($ in millions, except per share data)

 

4Q20

   

4Q19

   

3Q20

   

4Q19

   

3Q20

 
                                         

Net income

 

$

471

   

$

493

   

$

372

     

-4

%

   

27

%

Net income available to common shareholders  ̶  diluted

 

$

452

   

$

473

   

$

353

     

-5

%

   

28

%

Diluted earnings per common share

 

$

3.52

   

$

3.60

   

$

2.75

     

-2

%

   

28

%

Annualized return on average assets

   

1.30

%

   

1.60

%

   

1.06

%

               

Annualized return on average common equity

   

12.07

%

   

12.95

%

   

9.53

%

               
 

For the years ended December 31, 2020 and 2019, diluted earnings per common share were $9.94 and $13.75, respectively. GAAP-basis net income in 2020 totaled $1.35 billion, compared with $1.93 billion in 2019. Expressed as a rate of return on average assets and average common shareholders' equity, GAAP-basis net income in 2020 was 1.00% and 8.72%, respectively, and 1.61% and 12.87%, respectively, in 2019.

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 $3.54 in the final quarter of 2020, compared with $3.62 in the fourth quarter of 2019 and $2.77 in the third quarter of 2020.  Net operating income aggregated $473 million in the recent quarter, $496 million in the fourth quarter of 2019 and $375 million in 2020's third quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the fourth quarter of 2020 was 1.35% and 17.53%, respectively, 1.67% and 19.08%, respectively, in the similar quarter of 2019 and 1.10% and 13.94%, respectively, in the third quarter of 2020.

Diluted net operating earnings per common share for the years ended December 31, 2020 and 2019 were $10.02 and $13.86, respectively.  Net operating income in 2020 was $1.36 billion, compared with $1.94 billion in 2019.  Net operating income expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.04% and 12.79%, respectively, in 2020 and 1.69% and 19.08%, respectively, in 2019.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $993 million in the recent quarter, compared with $1.01 billion in the fourth quarter of 2019. That decline resulted from a 64 basis point narrowing of the net interest margin, to 3.00% in the fourth quarter of 2020 from 3.64% in the year-earlier quarter, that was partially offset by the impact of a $21.3 billion or 19% increase in average earning assets to $131.9 billion in the recent quarter from $110.6 billion in the final quarter of 2019.   In the third quarter of 2020, taxable-equivalent net interest income was $947 million, the net interest margin was 2.95% and average earning assets were $127.7 billion.  During the recent quarter, $29 million of interest income was recognized from the accelerated amortization of deferred fees related to payments received on Paycheck Protection Program ("PPP") loans originated by M&T during 2020.  At December 31, 2020 and September 30, 2020, outstanding balances of PPP loans totaled $5.4 billion and $6.5 billion, respectively.  As compared with the final 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 improvement in the net interest margin in the recent quarter as compared with 2020's third quarter reflects a five basis point decline in average rates paid to customers on deposits, while the impacts of accelerated amortization of deferred PPP fees and increased levels of low-yielding balances held at the Federal Reserve Bank of New York were largely offsetting.  Taxable-equivalent net interest income for the full year of 2020 was $3.88 billion and in 2019 was $4.15 billion. The net interest margin was 3.16% in 2020 and 3.84% in 2019.

Taxable-equivalent Net Interest Income

 
                           

Change 4Q20 vs.

 

($ in millions)

 

4Q20

   

4Q19

   

3Q20

   

4Q19

   

3Q20

 
                                         

Average earning assets

 

$

131,916

   

$

110,581

   

$

127,689

     

19

%

   

3

%

Net interest income  ̶  taxable-equivalent

 

$

993

   

$

1,014

   

$

947

     

-2

%

   

5

%

Net interest margin

   

3.00

%

   

3.64

%

   

2.95

%

               
 

Provision for Credit Losses/Asset Quality.  The provision for credit losses totaled $75 million in the fourth quarter of 2020, compared with $54 million in the year-earlier quarter and $150 million in 2020's third quarter. The provision was $800 million for the year ended December 31, 2020, compared with $176 million in 2019.  The significantly higher level of the provision in 2020 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 economic impact of the COVID-19 pandemic. Prior to 2020, the provision for credit losses reflected incurred losses only.  Net loan charge-offs were $97 million during the recent quarter, compared with $41 million in the final quarter of 2019 and $30 million in the third quarter of 2020. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .39% and .18% in the final quarters of 2020 and 2019, respectively, and .12% in the third quarter of 2020. Net loan charge-offs during 2020 and 2019 aggregated $247 million and $144 million, respectively, representing .26% and .16%, respectively, of average loans outstanding.

Loans classified as nonaccrual rose to $1.89 billion or 1.92% of total loans outstanding at December 31, 2020 from $1.24 billion or 1.26% of total loans at September 30, 2020.  That significant increase reflected the continuing impact of the pandemic on borrowers' ability to make contractual payments on their loans, particularly loans collateralized by hotels.  Of the $653 million rise in nonaccrual loans during the fourth quarter of 2020, $530 million were associated with hotels.  Nonaccrual loans outstanding at December 31, 2019 were $963 million or 1.06% 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 $35 million at December 31, 2020, $86 million at December 31, 2019 and $50 million at  September 30, 2020.

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 $1.74 billion or 1.76% of loans outstanding at December 31, 2020, compared with $1.05 billion or 1.16% at December 31, 2019, $1.76 billion or 1.79% at September 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 December 31, 2020 and September 30, 2020 represented 1.86% and 1.91%, respectively, of total loans on those dates, excluding outstanding balances of PPP loans.

Asset Quality Metrics

 
                           

Change 4Q20 vs.

 

($ in millions)

 

4Q20

   

4Q19

   

3Q20

   

4Q19

   

3Q20

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

1,893

   

$

963

   

$

1,240

     

97

%

   

53

%

Real estate and other foreclosed assets

 

$

35

   

$

86

   

$

50

     

-60

%

   

-30

%

Total nonperforming assets

 

$

1,928

   

$

1,049

   

$

1,290

     

84

%

   

49

%

Accruing loans past due 90 days or more (1)

 

$

859

   

$

519

   

$

527

     

66

%

   

63

%

Nonaccrual loans as % of loans outstanding

   

1.92

%

   

1.06

%

   

1.26

%

               
                                         

Allowance for credit losses

 

$

1,736

   

$

1,051

   

$

1,759

     

65

%

   

-1

%

Allowance for credit losses as % of loans outstanding

   

1.76

%

   

1.16

%

   

1.79

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

75

   

$

54

   

$

150

     

39

%

   

-50

%

Net charge-offs

 

$

97

   

$

41

   

$

30

     

135

%

   

227

%

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

   

.39

%

   

.18

%

   

.12

%

               
 
             

(1)

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

 

Noninterest Income and Expense.  Noninterest income was $551 million in the fourth quarter of 2020 and $521 million in each of the year-earlier quarter and the third quarter of 2020. The improvement when compared with the final 2019 quarter resulted largely from a $30 million distribution from Bayview Lending Group LLC and  higher mortgage banking revenues. Partially offsetting those factors were declines in service charges on deposit accounts, loan syndication fees and trading account and foreign exchange gains. The higher income in the recent quarter as compared with the third quarter of 2020 predominantly reflects the distribution from Bayview Lending Group LLC and increased commercial mortgage banking revenues, partially offset by a decline in residential mortgage banking revenues.

Noninterest Income

 
                           

Change 4Q20 vs.

 

($ in millions)

 

4Q20

   

4Q19

   

3Q20

   

4Q19

   

3Q20

 
                                         

Mortgage banking revenues

 

$

140

   

$

118

   

$

153

     

19

%

   

-8

%

Service charges on deposit accounts

   

96

     

111

     

91

     

-14

%

   

5

%

Trust income

   

151

     

151

     

150

     

     

1

%

Brokerage services income

   

12

     

12

     

12

     

3

%

   

5

%

Trading account and foreign exchange gains

   

7

     

17

     

4

     

-57

%

   

79

%

Gain (loss) on bank investment securities

   

2

     

(6)

     

3

     

     

-42

%

Other revenues from operations

   

143

     

118

     

108

     

21

%

   

33

%

Total

 

$

551

   

$

521

   

$

521

     

6

%

   

6

%

 

Noninterest income improved to $2.09 billion in 2020 from $2.06 billion in 2019. A 24% rise in mortgage banking revenues, higher trust income and increased income from Bayview Lending Group LLC were partially offset by declines in service charges on deposit accounts, trading account and foreign exchange gains and loan syndication fees.

Noninterest expense totaled $845 million in the final quarter of 2020, compared with $824 million in the corresponding quarter of 2019 and $827 million in the third 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 $842 million in the recent quarter, $819 million in the fourth quarter of 2019 and $823 million in 2020's third quarter. Significant factors contributing to the higher level of noninterest expenses in the recent quarter as compared with the year-earlier quarter were higher costs for salaries and employee benefits, changes  in the valuation allowance for capitalized residential mortgage servicing rights and $14 million of expenses related to the planned transition of the support for M&T's retail brokerage and advisory business to the platform of LPL Financial, partially offset by lower costs for professional and outside services, advertising and marketing, and travel and entertainment. The valuation allowance for capitalized residential mortgage servicing rights was increased by $3 million in the fourth quarter of 2020, compared with a reduction in the allowance of $16 million in the final 2019 quarter.  When compared with the third quarter of 2020, the recent quarter increase in noninterest expenses largely reflected expenses for the retail brokerage and advisory business support transition and higher costs for advertising and marketing.

Noninterest Expense

 
                           

Change 4Q20 vs.

 

($ in millions)

 

4Q20

   

4Q19

   

3Q20

   

4Q19

   

3Q20

 
                                         

Salaries and employee benefits

 

$

476

   

$

469

   

$

479

     

1

%

   

-1

%

Equipment and net occupancy

   

84

     

83

     

81

     

2

%

   

4

%

Outside data processing and software

   

68

     

62

     

65

     

10

%

   

5

%

FDIC assessments

   

15

     

12

     

12

     

22

%

   

25

%

Advertising and marketing

   

18

     

27

     

12

     

-34

%

   

50

%

Printing, postage and supplies

   

9

     

10

     

9

     

-12

%

   

-12

%

Amortization of core deposit and other intangible assets

   

3

     

4

     

4

     

-27

%

   

-20

%

Other costs of operations

   

172

     

157

     

165

     

10

%

   

4

%

Total

 

$

845

   

$

824

   

$

827

     

3

%

   

2

%

 

 

For the year ended December 31, 2020, noninterest expense aggregated $3.39 billion, compared with $3.47 billion in 2019. Noninterest operating expenses were $3.37 billion and $3.45 billion in 2020 and 2019, respectively. Contributing to the lower level of such expenses in 2020 were decreased costs for professional and outside services, legal-related matters, advertising and marketing, travel and entertainment, and a $48 million charge in the second quarter of 2019 associated with the sale of an equity investment in an asset manager. Those factors were partially offset by higher costs for salaries and employee benefits, outside data processing and software, increases to the valuation allowance for capitalized residential mortgage servicing rights and the transition expenses noted earlier.

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 54.6% in the fourth quarter of 2020, 53.1% in the year-earlier quarter and 56.2% in the third quarter of 2020. The efficiency ratio for the full year 2020 was 56.3%, compared with 55.7% in 2019.

Balance Sheet.  M&T had total assets of $142.6 billion at December 31, 2020, compared with $119.9 billion and $138.6 billion at December 31, 2019 and September 30, 2020, respectively. Loans and leases, net of unearned discount, were $98.5 billion at December 31, 2020, up from $90.9 billion at December 31, 2019 and $98.4 billion at September 30, 2020. The increase in total loans and leases at the recent quarter-end as compared with the fourth quarter of 2019 was driven largely by growth in commercial loans of $3.7 billion and commercial real estate loans of $2.1 billion. The commercial loan growth reflects loans originated as part of the PPP, which totaled $5.4 billion at December 31, 2020. Total deposits rose to $119.8 billion at the recent quarter-end, compared with $94.8 billion at December 31, 2019 and $115.2 billion at September 30, 2020. The higher levels of deposits at the two most recent quarter-ends as compared with December 31, 2019 reflect increased commercial and consumer deposits, as well as higher deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $16.2 billion, or 11.35% of total assets at December 31, 2020, $15.7 billion, or 13.11% at December 31, 2019 and $16.1 billion, or 11.61% at September 30, 2020. Common shareholders' equity was $14.9 billion, or $116.39 per share, at December 31, 2020, compared with $14.5 billion, or $110.78 per share, a year-earlier and $14.9 billion, or $115.75 per share, at September 30, 2020. Tangible equity per common share was $80.52 at December 31, 2020, $75.44 at December 31, 2019 and $79.85 at September 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 10.0% at December 31, 2020, up from 9.81% three months earlier and 9.73% at December 31, 2019.

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 #1884289.  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 28, 2021 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to the ID #1884289.  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

           

Year ended

         
   

December 31

           

December 31

         

Amounts in thousands, except per share

 

2020

   

2019

   

Change

   

2020

   

2019

   

Change

 

Performance

                                               

Net income

 

$

471,140

     

493,066

     

-4

%

 

$

1,353,152

     

1,929,149

     

-30

%

Net income available to common shareholders

   

451,869

     

473,372

     

-5

%

   

1,279,068

     

1,849,511

     

-31

%

Per common share:

                                               

Basic earnings

 

$

3.52

     

3.60

     

-2

%

 

$

9.94

     

13.76

     

-28

%

Diluted earnings

   

3.52

     

3.60

     

-2

%

   

9.94

     

13.75

     

-28

%

Cash dividends

 

$

1.10

     

1.10

     

   

$

4.40

     

4.10

     

7

%

Common shares outstanding:

                                               

Average - diluted (1)

   

128,379

     

131,549

     

-2

%

   

128,704

     

134,462

     

-4

%

Period end (2)

   

128,333

     

130,589

     

-2

%

   

128,333

     

130,589

     

-2

%

Return on (annualized):

                                               

Average total assets

   

1.30

%

   

1.60

%

           

1.00

%

   

1.61

%

       

Average common shareholders' equity

   

12.07

%

   

12.95

%

           

8.72

%

   

12.87

%

       

Taxable-equivalent net interest income

 

$

993,252

     

1,014,225

     

-2

%

 

$

3,883,605

     

4,153,127

     

-6

%

Yield on average earning assets

   

3.15

%

   

4.27

%

           

3.43

%

   

4.53

%

       

Cost of interest-bearing liabilities

   

.25

%

   

.97

%

           

.43

%

   

1.05

%

       

Net interest spread

   

2.90

%

   

3.30

%

           

3.00

%

   

3.48

%

       

Contribution of interest-free funds

   

.10

%

   

.34

%

           

.16

%

   

.36

%

       

Net interest margin

   

3.00

%

   

3.64

%

           

3.16

%

   

3.84

%

       

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

   

.39

%

   

.18

%

           

.26

%

   

.16

%

       

Net operating results (3)

                                               

Net operating income

 

$

473,453

     

496,237

     

-5

%

 

$

1,364,145

     

1,943,508

     

-30

%

Diluted net operating earnings per common share

   

3.54

     

3.62

     

-2

%

   

10.02

     

13.86

     

-28

%

Return on (annualized):

                                               

Average tangible assets

   

1.35

%

   

1.67

%

           

1.04

%

   

1.69

%

       

Average tangible common equity

   

17.53

%

   

19.08

%

           

12.79

%

   

19.08

%

       

Efficiency ratio

   

54.6

%

   

53.1

%

           

56.3

%

   

55.7

%

       
                                                 
   

At December 31

                             

Loan quality

 

2020

   

2019

   

Change

                         

Nonaccrual loans

 

$

1,893,299

     

963,112

     

97

%

                       

Real estate and other foreclosed assets

   

34,668

     

85,646

     

-60

%

                       

Total nonperforming assets

 

$

1,927,967

     

1,048,758

     

84

%

                       

Accruing loans past due 90 days or more (4)

 

$

859,208

     

518,728

     

66

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

48,820

     

50,891

     

-4

%

                       

Accruing loans past due 90 days or more

   

798,121

     

479,829

     

66

%

                       

Renegotiated loans

 

$

238,994

     

234,424

     

2

%

                       

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

 

N/A

     

39,632

     

                         

Purchased impaired loans (6):

                                               

Outstanding customer balance

 

N/A

     

415,413

     

                         

Carrying amount

 

N/A

     

227,545

     

                         

Nonaccrual loans to total net loans

   

1.92

%

   

1.06

%

                               

Allowance for credit losses to total loans

   

1.76

%

   

1.16

%

                               
 
             

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

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

(4)

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

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Amounts in thousands, except per share

 

2020

   

2020

   

2020

   

2020

   

2019

 

Performance

                                       

Net income

 

$

471,140

     

372,136

     

241,054

     

268,822

     

493,066

 

Net income available to common shareholders

   

451,869

     

353,400

     

223,099

     

250,701

     

473,372

 

Per common share:

                                       

Basic earnings

 

$

3.52

     

2.75

     

1.74

     

1.93

     

3.60

 

Diluted earnings

   

3.52

     

2.75

     

1.74

     

1.93

     

3.60

 

Cash dividends

 

$

1.10

     

1.10

     

1.10

     

1.10

     

1.10

 

Common shares outstanding:

                                       

Average - diluted (1)

   

128,379

     

128,355

     

128,333

     

129,755

     

131,549

 

Period end (2)

   

128,333

     

128,303

     

128,294

     

128,282

     

130,589

 

Return on (annualized):

                                       

Average total assets

   

1.30

%

   

1.06

%

   

.71

%

   

.90

%

   

1.60

%

Average common shareholders' equity

   

12.07

%

   

9.53

%

   

6.13

%

   

7.00

%

   

12.95

%

Taxable-equivalent net interest income

 

$

993,252

     

947,114

     

961,371

     

981,868

     

1,014,225

 

Yield on average earning assets

   

3.15

%

   

3.13

%

   

3.38

%

   

4.18

%

   

4.27

%

Cost of interest-bearing liabilities

   

.25

%

   

.30

%

   

.40

%

   

.83

%

   

.97

%

Net interest spread

   

2.90

%

   

2.83

%

   

2.98

%

   

3.35

%

   

3.30

%

Contribution of interest-free funds

   

.10

%

   

.12

%

   

.15

%

   

.30

%

   

.34

%

Net interest margin

   

3.00

%

   

2.95

%

   

3.13

%

   

3.65

%

   

3.64

%

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

   

.39

%

   

.12

%

   

.29

%

   

.22

%

   

.18

%

Net operating results (3)

                                       

Net operating income

 

$

473,453

     

375,029

     

243,958

     

271,705

     

496,237

 

Diluted net operating earnings per common share

   

3.54

     

2.77

     

1.76

     

1.95

     

3.62

 

Return on (annualized):

                                       

Average tangible assets

   

1.35

%

   

1.10

%

   

.74

%

   

0.94

%

   

1.67

%

Average tangible common equity

   

17.53

%

   

13.94

%

   

9.04

%

   

10.39

%

   

19.08

%

Efficiency ratio

   

54.6

%

   

56.2

%

   

55.7

%

   

58.9

%

   

53.1

%

                                         
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Loan quality

 

2020

   

2020

   

2020

   

2020

   

2019

 

Nonaccrual loans

 

$

1,893,299

     

1,239,972

     

1,156,650

     

1,061,748

     

963,112

 

Real estate and other foreclosed assets

   

34,668

     

49,872

     

66,763

     

83,605

     

85,646

 

Total nonperforming assets

 

$

1,927,967

     

1,289,844

     

1,223,413

     

1,145,353

     

1,048,758

 

Accruing loans past due 90 days or more (4)

 

$

859,208

     

527,258

     

535,755

     

530,317

     

518,728

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

48,820

     

45,975

     

51,165

     

50,561

     

50,891

 

Accruing loans past due 90 days or more

   

798,121

     

505,446

     

454,269

     

464,243

     

479,829

 

Renegotiated loans

 

$

238,994

     

242,581

     

234,768

     

232,439

     

234,424

 

Accruing loans acquired at a discount past due 90 days or

        more (5)

 

N/A

   

N/A

   

N/A

   

N/A

     

39,632

 

Purchased impaired loans (6):

                                       

Outstanding customer balance

 

N/A

   

N/A

   

N/A

   

N/A

     

415,413

 

Carrying amount

 

N/A

   

N/A

   

N/A

   

N/A

     

227,545

 

Nonaccrual loans to total net loans

   

1.92

%

   

1.26

%

   

1.18

%

   

1.13

%

   

1.06

%

Allowance for credit losses to total loans

   

1.76

%

   

1.79

%

   

1.68

%

   

1.47

%

   

1.16

%

 
             

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

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

(4)

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

           

Year ended

         
   

December 31

           

December 31

         

Dollars in thousands

 

2020

   

2019

   

Change

   

2020

   

2019

   

Change

 

Interest income

 

$

1,038,890

     

1,185,902

     

-12

%

 

$

4,192,712

     

4,879,593

     

-14

%

Interest expense

   

49,610

     

177,069

     

-72

     

326,395

     

749,329

     

-56

 

Net interest income

   

989,280

     

1,008,833

     

-2

     

3,866,317

     

4,130,264

     

-6

 

Provision for credit losses

   

75,000

     

54,000

   

39

     

800,000

     

176,000

     

355

 

Net interest income after provision for credit losses

   

914,280

     

954,833

     

-4

     

3,066,317

     

3,954,264

     

-22

 

Other income

                                               

Mortgage banking revenues

   

140,441

     

118,134

     

19

     

566,641

     

457,770

     

24

 

Service charges on deposit accounts

   

95,817

     

110,987

     

-14

     

370,788

     

432,978

     

-14

 

Trust income

   

151,314

     

151,525

     

     

601,884

     

572,608

     

5

 

Brokerage services income

   

12,234

     

11,891

     

3

     

47,428

     

48,922

     

-3

 

Trading account and foreign exchange gains

   

7,204

     

16,717

     

-57

     

40,536

     

62,044

     

-35

 

Gain (loss) on bank investment securities

   

1,619

     

(6,452)

     

     

(9,421)

     

18,037

     

 

Other revenues from operations

   

142,621

     

118,238

     

21

     

470,588

     

469,320

     

 

Total other income

   

551,250

     

521,040

     

6

     

2,088,444

     

2,061,679

     

1

 

Other expense

                                               

Salaries and employee benefits

   

476,110

     

469,080

     

1

     

1,950,692

     

1,900,797

     

3

 

Equipment and net occupancy

   

84,228

     

82,892

     

2

     

322,037

     

324,079

     

-1

 

Outside data processing and software

   

68,034

     

61,720

     

10

     

258,480

     

229,731

     

13

 

FDIC assessments

   

15,204

     

12,431

     

22

     

53,803

     

41,535

     

30

 

Advertising and marketing

   

17,832

     

27,063

     

-34

     

61,904

     

93,472

     

-34

 

Printing, postage and supplies

   

8,335

     

9,513

     

-12

     

39,869

     

39,893

     

 

Amortization of core deposit and other

   intangible assets

   

3,129

     

4,305

     

-27

     

14,869

     

19,490

     

-24

 

Other costs of operations

   

172,136

     

156,679

     

10

     

683,586

     

819,685

     

-17

 

Total other expense

   

845,008

     

823,683

     

3

     

3,385,240

     

3,468,682

     

-2

 

Income before income taxes

   

620,522

     

652,190

     

-5

     

1,769,521

     

2,547,261

     

-31

 

Applicable income taxes

   

149,382

     

159,124

     

-6

     

416,369

     

618,112

     

-33

 

Net income

 

$

471,140

     

493,066

     

-4

%

 

$

1,353,152

     

1,929,149

     

-30

%

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 
   

Three months ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

Dollars in thousands

 

2020

   

2020

   

2020

   

2020

   

2019

 

Interest income

 

$

1,038,890

     

1,001,161

     

1,032,242

     

1,120,419

     

1,185,902

 

Interest expense

   

49,610

     

58,066

     

75,105

     

143,614

     

177,069

 

Net interest income

   

989,280

     

943,095

     

957,137

     

976,805

     

1,008,833

 

Provision for credit losses

   

75,000

     

150,000

     

325,000

     

250,000

     

54,000

 

Net interest income after provision for credit losses

   

914,280

     

793,095

     

632,137

     

726,805

     

954,833

 

Other income

                                       

Mortgage banking revenues

   

140,441

     

153,267

     

145,024

     

127,909

     

118,134

 

Service charges on deposit accounts

   

95,817

     

91,355

     

77,455

     

106,161

     

110,987

 

Trust income

   

151,314

     

149,937

     

151,882

     

148,751

     

151,525

 

Brokerage services income

   

12,234

     

11,602

     

10,463

     

13,129

     

11,891

 

Trading account and foreign exchange gains

   

7,204

     

4,026

     

8,290

     

21,016

     

16,717

 

Gain (loss) on bank investment securities

   

1,619

     

2,773

     

6,969

     

(20,782)

     

(6,452)

 

Other revenues from operations

   

142,621

     

107,601

     

87,190

     

133,176

     

118,238

 

Total other income

   

551,250

     

520,561

     

487,273

     

529,360

     

521,040

 

Other expense

                                       

Salaries and employee benefits

   

476,110

     

478,897

     

458,842

     

536,843

     

469,080

 

Equipment and net occupancy

   

84,228

     

81,080

     

77,089

     

79,640

     

82,892

 

Outside data processing and software

   

68,034

     

64,660

     

61,376

     

64,410

     

61,720

 

FDIC assessments

   

15,204

     

12,121

     

14,207

     

12,271

     

12,431

 

Advertising and marketing

   

17,832

     

11,855

     

9,842

     

22,375

     

27,063

 

Printing, postage and supplies

   

8,335

     

9,422

     

11,260

     

10,852

     

9,513

 

Amortization of core deposit and other intangible assets

   

3,129

     

3,914

     

3,913

     

3,913

     

4,305

 

Other costs of operations

   

172,136

     

164,825

     

170,513

     

176,112

     

156,679

 

Total other expense

   

845,008

     

826,774

     

807,042

     

906,416

     

823,683

 

Income before income taxes

   

620,522

     

486,882

     

312,368

     

349,749

     

652,190

 

Applicable income taxes

   

149,382

     

114,746

     

71,314

     

80,927

     

159,124

 

Net income

 

$

471,140

     

372,136

     

241,054

     

268,822

     

493,066

 
 

 

Condensed Consolidated Balance Sheet

 
   

December 31

           

Dollars in thousands

 

2020

   

2019

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,552,743

     

1,432,805

     

8

 

%

Interest-bearing deposits at banks

   

23,663,810

     

7,190,154

     

229

   

Federal funds sold

   

     

3,500

     

   

Trading account

   

1,068,581

     

470,129

     

127

   

Investment securities

   

7,045,697

     

9,497,251

     

-26

   

Loans and leases:

                         

Commercial, financial, etc.

   

27,574,564

     

23,838,168

     

16

   

Real estate - commercial

   

37,637,889

     

35,541,914

     

6

   

Real estate - consumer

   

16,752,993

     

16,156,094

     

4

   

Consumer

   

16,570,421

     

15,386,693

     

8

   

Total loans and leases, net of unearned discount

   

98,535,867

     

90,922,869

     

8

   

Less: allowance for credit losses

   

1,736,387

     

1,051,071

     

65

   

Net loans and leases

   

96,799,480

     

89,871,798

     

8

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

14,165

     

29,034

     

-51

   

Other assets

   

7,863,517

     

6,784,974

     

16

   

Total assets

 

$

142,601,105

     

119,872,757

     

19

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

47,572,884

     

32,396,407

     

47

 

%

Interest-bearing deposits

   

71,580,750

     

60,689,618

     

18

   

Deposits at Cayman Islands office

   

652,104

     

1,684,044

     

-61

   

Total deposits

   

119,805,738

     

94,770,069

     

26

   

Short-term borrowings

   

59,482

     

62,363

     

-5

   

Accrued interest and other liabilities

   

2,166,409

     

2,337,490

     

-7

   

Long-term borrowings

   

4,382,193

     

6,986,186

     

-37

   

Total liabilities

   

126,413,822

     

104,156,108

     

21

   

Shareholders' equity:

                         

Preferred

   

1,250,000

     

1,250,000

     

   

Common

   

14,937,283

     

14,466,649

     

3

   

Total shareholders' equity

   

16,187,283

     

15,716,649

     

3

   

Total liabilities and shareholders' equity

 

$

142,601,105

     

119,872,757

     

19

 

%

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

     
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

Dollars in thousands

 

2020

   

2020

   

2020

   

2020

   

2019

ASSETS

                                     

Cash and due from banks

 

$

1,552,743

     

1,489,232

     

1,354,815

     

1,298,192

     

1,432,805

Interest-bearing deposits at banks

   

23,663,810

     

20,197,937

     

20,888,341

     

8,896,307

     

7,190,154

Federal funds sold

   

     

     

     

     

3,500

Trading account

   

1,068,581

     

1,215,573

     

1,293,534

     

1,224,291

     

470,129

Investment securities

   

7,045,697

     

7,723,004

     

8,454,344

     

8,956,590

     

9,497,251

Loans and leases:

                                     

Commercial, financial, etc.

   

27,574,564

     

27,891,648

     

29,203,862

     

26,243,648

     

23,838,168

Real estate - commercial

   

37,637,889

     

37,582,084

     

37,159,451

     

36,684,106

     

35,541,914

Real estate - consumer

   

16,752,993

     

16,663,708

     

15,611,462

     

15,643,014

     

16,156,094

Consumer

   

16,570,421

     

16,309,608

     

15,782,773

     

15,571,507

     

15,386,693

Total loans and leases, net of unearned discount

   

98,535,867

     

98,447,048

     

97,757,548

     

94,142,275

     

90,922,869

Less: allowance for credit losses

   

1,736,387

     

1,758,505

     

1,638,236

     

1,384,366

     

1,051,071

Net loans and leases

   

96,799,480

     

96,688,543

     

96,119,312

     

92,757,909

     

89,871,798

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

Core deposit and other intangible assets

   

14,165

     

17,294

     

21,208

     

25,121

     

29,034

Other assets

   

7,863,517

     

6,702,048

     

6,812,303

     

6,826,311

     

6,784,974

Total assets

 

$

142,601,105

     

138,626,743

     

139,536,969

     

124,577,833

     

119,872,757

                                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                                     

Noninterest-bearing deposits

 

$

47,572,884

     

44,201,670

     

45,397,843

     

35,554,715

     

32,396,407

Interest-bearing deposits

   

71,580,750

     

70,061,680

     

68,701,832

     

63,410,672

     

60,689,618

Deposits at Cayman Islands office

   

652,104

     

899,989

     

868,284

     

1,217,921

     

1,684,044

Total deposits

   

119,805,738

     

115,163,339

     

114,967,959

     

100,183,308

     

94,770,069

Short-term borrowings

   

59,482

     

46,123

     

52,298

     

59,180

     

62,363

Accrued interest and other liabilities

   

2,166,409

     

1,857,383

     

2,250,316

     

2,198,116

     

2,337,490

Long-term borrowings

   

4,382,193

     

5,458,885

     

6,321,291

     

6,321,435

     

6,986,186

Total liabilities

   

126,413,822

     

122,525,730

     

123,591,864

     

108,762,039

     

104,156,108

Shareholders' equity:

                                     

Preferred

   

1,250,000

     

1,250,000

     

1,250,000

     

1,250,000

     

1,250,000

Common

   

14,937,283

     

14,851,013

     

14,695,105

     

14,565,794

     

14,466,649

Total shareholders' equity

   

16,187,283

     

16,101,013

     

15,945,105

     

15,815,794

     

15,716,649

Total liabilities and shareholders' equity

 

$

142,601,105

     

138,626,743

     

139,536,969

     

124,577,833

     

119,872,757

 

 

 

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, 2020 from

   

December 31,

   

Change

 

Dollars in millions

 

2020

   

2019

   

2020

   

December 31,

   

September 30,

   

2020

   

2019

   

in

 
   

Balance

 

Rate

   

Balance

 

Rate

   

Balance

 

Rate

   

2019

   

2020

   

Balance

 

Rate

   

Balance

 

Rate

   

balance

 

ASSETS

                                                                       

Interest-bearing deposits at banks

 

$

22,206

 

.10

%

 

8,944

 

1.65

%

 

16,440

 

.10

%

 

148

%

 

35

%

 

$

15,329

 

.21

%

 

6,783

 

2.08

%

 

126

%

Federal funds sold and agreements

                                                                       

to resell securities

   

3,799

 

.12

   

1,279

 

1.68

   

5,113

 

.13

   

197

   

-26

     

2,717

 

.26

   

327

 

1.68

   

 

Trading account

   

50

 

1.97

   

70

 

4.36

   

50

 

1.62

   

-30

   

     

53

 

2.10

   

68

 

2.72

   

-22

 

Investment securities

   

7,195

 

2.25

   

10,044

 

2.51

   

7,876

 

1.95

   

-28

   

-9

     

8,165

 

2.16

   

11,550

 

2.50

   

-29

 

Loans and leases, net of unearned

                                                                       

discount

                                                                       

Commercial, financial, etc.

   

27,713

 

3.56

   

23,548

 

4.36

   

28,333

 

3.05

   

18

   

-2

     

27,520

 

3.42

   

23,306

 

4.80

   

18

 

Real estate - commercial

   

37,707

 

4.15

   

35,039

 

5.06

   

37,243

 

4.19

   

8

   

1

     

36,986

 

4.39

   

34,885

 

5.21

   

6

 

Real estate - consumer

   

16,761

 

3.56

   

16,330

 

4.15

   

16,558

 

3.69

   

3

   

1

     

16,215

 

3.82

   

16,665

 

4.25

   

-3

 

Consumer

   

16,485

 

4.78

   

15,327

 

5.26

   

16,076

 

4.76

   

8

   

3

     

15,884

 

4.92

   

14,638

 

5.43

   

9

 

Total loans and leases, net

   

98,666

 

4.01

   

90,244

 

4.77

   

98,210

 

3.89

   

9

   

     

96,605

 

4.13

   

89,494

 

4.99

   

8

 

Total earning assets

   

131,916

 

3.15

   

110,581

 

4.27

   

127,689

 

3.13

   

19

   

3

     

122,869

 

3.43

   

108,222

 

4.53

   

14

 

Goodwill

   

4,593

       

4,593

       

4,593

       

   

     

4,593

       

4,593

       

 

Core deposit and other intangible

                                                                       

assets

   

16

       

31

       

19

       

-50

   

-19

     

21

       

38

       

-44

 

Other assets

   

8,038

       

7,349

       

7,880

       

9

   

2

     

7,997

       

6,731

       

19

 

Total assets

 

$

144,563

       

122,554

       

140,181

       

18

%

 

3

%

 

$

135,480

       

119,584

       

13

%

                                                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                       

Interest-bearing deposits

                                                                       

Savings and interest-checking

                                                                       

deposits

 

$

69,133

 

.11

   

57,103

 

.66

   

65,848

 

.14

   

21

%

 

5

%

 

$

63,590

 

.23

   

54,610

 

.67

   

16

%

Time deposits

   

4,113

 

.97

   

6,015

 

1.58

   

4,715

 

1.22

   

-32

   

-13

     

4,960

 

1.34

   

6,309

 

1.51

   

-21

 

Deposits at Cayman Islands

                                                                       

office

   

826

 

.11

   

1,716

 

1.14

   

957

 

.10

   

-52

   

-14

     

1,117

 

.36

   

1,367

 

1.60

   

-18

 

Total interest-bearing

                                                                       

deposits

   

74,072

 

.16

   

64,834

 

.76

   

71,520

 

.21

   

14

   

4

     

69,667

 

.31

   

62,286

 

.78

   

12

 

Short-term borrowings

   

64

 

.01

   

675

 

1.86

   

62

 

.01

   

-91

   

3

     

62

 

.05

   

1,059

 

2.34

   

-94

 

Long-term borrowings

   

5,294

 

1.47

   

6,941

 

2.83

   

5,499

 

1.51

   

-24

   

-4

     

5,803

 

1.88

   

7,703

 

3.11

   

-25

 

Total interest-bearing liabilities

   

79,430

 

.25

   

72,450

 

.97

   

77,081

 

.30

   

10

   

3

     

75,532

 

.43

   

71,048

 

1.05

   

6

 

Noninterest-bearing deposits

   

46,904

       

32,069

       

44,786

       

46

   

5

     

41,683

       

30,763

       

35

 

Other liabilities

   

2,016

       

2,203

       

2,241

       

-8

   

-10

     

2,274

       

2,055

       

11

 

Total liabilities

   

128,350

       

106,722

       

124,108

       

20

   

3

     

119,489

       

103,866

       

15

 

Shareholders' equity

   

16,213

       

15,832

       

16,073

       

2

   

1

     

15,991

       

15,718

       

2

 

Total liabilities and

                                                                       

shareholders' equity

 

$

144,563

       

122,554

       

140,181

       

18

%

 

3

%

 

$

135,480

       

119,584

       

13

%

                                                                         

Net interest spread

       

2.90

       

3.30

       

2.83

                     

3.00

       

3.48

       

Contribution of interest-free funds

       

.10

       

.34

       

.12

                     

.16

       

.36

       

Net interest margin

       

3.00

%

     

3.64

%

     

2.95

%

                   

3.16

%

     

3.84

%

     
 

 

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 
   

Three months ended

   

Year ended

 
   

December 31

   

December 31

 
   

2020

   

2019

   

2020

   

2019

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

471,140

     

493,066

     

1,353,152

     

1,929,149

 

Amortization of core deposit and other intangible assets (1)

   

2,313

     

3,171

     

10,993

     

14,359

 

Net operating income

 

$

473,453

     

496,237

     

1,364,145

     

1,943,508

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.52

     

3.60

     

9.94

     

13.75

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.02

     

.08

     

.11

 

Diluted net operating earnings per common share

 

$

3.54

     

3.62

     

10.02

     

13.86

 
                                 

Other expense

                               

Other expense

 

$

845,008

     

823,683

     

3,385,240

     

3,468,682

 

Amortization of core deposit and other intangible assets

   

(3,129)

     

(4,305)

     

(14,869)

     

(19,490)

 

Noninterest operating expense

 

$

841,879

     

819,378

     

3,370,371

     

3,449,192

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

841,879

     

819,378

     

3,370,371

     

3,449,192

 

Taxable-equivalent net interest income

   

993,252

     

1,014,225

     

3,883,605

     

4,153,127

 

Other income

   

551,250

     

521,040

     

2,088,444

     

2,061,679

 

Less:  Gain (loss) on bank investment securities

   

1,619

     

(6,452)

     

(9,421)

     

18,037

 

Denominator

 

$

1,542,883

     

1,541,717

     

5,981,470

     

6,196,769

 

Efficiency ratio

   

54.6

%

   

53.1

%

   

56.3

%

   

55.7

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

144,563

     

122,554

     

135,480

     

119,584

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(16)

     

(31)

     

(21)

     

(38)

 

Deferred taxes

   

4

     

8

     

5

     

10

 

Average tangible assets

 

$

139,958

     

117,938

     

130,871

     

114,963

 

Average common equity

                               

Average total equity

 

$

16,213

     

15,832

     

15,991

     

15,718

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,272)

 

Average common equity

   

14,963

     

14,582

     

14,741

     

14,446

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(16)

     

(31)

     

(21)

     

(38)

 

Deferred taxes

   

4

     

8

     

5

     

10

 

Average tangible common equity

 

$

10,358

     

9,966

     

10,132

     

9,825

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

142,601

     

119,873

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(14)

     

(29)

                 

Deferred taxes

   

4

     

7

                 

Total tangible assets

 

$

137,998

     

115,258

                 

Total common equity

                               

Total equity

 

$

16,187

     

15,717

                 

Preferred stock

   

(1,250)

     

(1,250)

                 

Common equity

   

14,937

     

14,467

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(14)

     

(29)

                 

Deferred taxes

   

4

     

7

                 

Total tangible common equity

 

$

10,334

     

9,852

                 
 
     

(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,

 
   

2020

   

2020

   

2020

   

2020

   

2019

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

471,140

     

372,136

     

241,054

     

268,822

     

493,066

 

Amortization of core deposit and other intangible assets (1)

   

2,313

     

2,893

     

2,904

     

2,883

     

3,171

 

Net operating income

 

$

473,453

     

375,029

     

243,958

     

271,705

     

496,237

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.52

     

2.75

     

1.74

     

1.93

     

3.60

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.02

     

.02

     

.02

     

.02

 

Diluted net operating earnings per common share

 

$

3.54

     

2.77

     

1.76

     

1.95

     

3.62

 
                                         

Other expense

                                       

Other expense

 

$

845,008

     

826,774

     

807,042

     

906,416

     

823,683

 

Amortization of core deposit and other intangible assets

   

(3,129)

     

(3,914)

     

(3,913)

     

(3,913)

     

(4,305)

 

Noninterest operating expense

 

$

841,879

     

822,860

     

803,129

     

902,503

     

819,378

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

841,879

     

822,860

     

803,129

     

902,503

     

819,378

 

Taxable-equivalent net interest income

   

993,252

     

947,114

     

961,371

     

981,868

     

1,014,225

 

Other income

   

551,250

     

520,561

     

487,273

     

529,360

     

521,040

 

Less:  Gain (loss) on bank investment securities

   

1,619

     

2,773

     

6,969

     

(20,782)

     

(6,452)

 

Denominator

 

$

1,542,883

     

1,464,902

     

1,441,675

     

1,532,010

     

1,541,717

 

Efficiency ratio

   

54.6

%

   

56.2

%

   

55.7

%

   

58.9

%

   

53.1

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

144,563

     

140,181

     

136,446

     

120,585

     

122,554

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(16)

     

(19)

     

(23)

     

(27)

     

(31)

 

Deferred taxes

   

4

     

5

     

6

     

7

     

8

 

Average tangible assets

 

$

139,958

     

135,574

     

131,836

     

115,972

     

117,938

 

Average common equity

                                       

Average total equity

 

$

16,213

     

16,073

     

15,953

     

15,720

     

15,832

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

 

Average common equity

   

14,963

     

14,823

     

14,703

     

14,470

     

14,582

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(16)

     

(19)

     

(23)

     

(27)

     

(31)

 

Deferred taxes

   

4

     

5

     

6

     

7

     

8

 

Average tangible common equity

 

$

10,358

     

10,216

     

10,093

     

9,857

     

9,966

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

142,601

     

138,627

     

139,537

     

124,578

     

119,873

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(14)

     

(17)

     

(21)

     

(25)

     

(29)

 

Deferred taxes

   

4

     

4

     

5

     

6

     

7

 

Total tangible assets

 

$

137,998

     

134,021

     

134,928

     

119,966

     

115,258

 

Total common equity

                                       

Total equity

 

$

16,187

     

16,101

     

15,945

     

15,816

     

15,717

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

 

Common equity

   

14,937

     

14,851

     

14,695

     

14,566

     

14,467

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(14)

     

(17)

     

(21)

     

(25)

     

(29)

 

Deferred taxes

   

4

     

4

     

5

     

6

     

7

 

Total tangible common equity

 

$

10,334

     

10,245

     

10,086

     

9,954

     

9,852

 
 
     

(1)

After any related tax effect.

 

 

INVESTOR CONTACT:

 

Donald J. MacLeod

   

(716) 842-5138

     

MEDIA CONTACT:

 

C. Michael Zabel

   

(716) 842-5385