M&T Bank Corporation Announces Second Quarter Results

BUFFALO, N.Y., July 21, 2021 -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2021.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.41 in the second quarter of 2021, up from $1.74 in the year-earlier quarter and $3.33 in the first quarter of 2021. GAAP-basis net income was $458 million in the recent quarter, $241 million in the second quarter of 2020 and $447 million in the initial 2021 quarter. GAAP-basis net income for the second 2021 quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.22% and 11.55%, respectively, compared with .71% and 6.13%, respectively, in the corresponding 2020 period and 1.22% and 11.57%, respectively, in the first quarter of 2021. Included in noninterest expenses in the recent quarter were merger-related expenses associated with M&T's proposed acquisition of People's United Financial, Inc. of $4 million ($3 million after tax-effect, or $.02 of diluted earnings per common share), compared with $10 million ($8 million after tax-effect, or $.06 of diluted earnings per common share) in the first quarter of 2021.

Commenting on M&T's results for the second quarter of 2021, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "Reflecting signs of economic recovery, we were encouraged by the increased customer activity experienced during the recent quarter, particularly associated with debit and credit cards.  M&T's trust businesses continued their strong performance, with revenues up seven percent from last year's second quarter.  The year-over-year expense growth largely resulted from increased costs for incentives and other investments that had been curtailed in 2020 due to the pandemic.  M&T's balance sheet remains solid, highlighted by an allowance for credit losses to loans ratio of 1.62% and a Common Equity Tier 1 Capital Ratio of 10.7%, up from 10.4% at March 31, 2021."

Earnings Highlights

 
                                         
                           

Change 2Q21 vs.

 

($ in millions, except per share data)

 

2Q21

   

2Q20

   

1Q21

   

2Q20

   

1Q21

 
                                         

Net income

 

$

458

   

$

241

   

$

447

     

90

%

   

2

%

Net income available to common shareholders  ̶  diluted

 

$

439

   

$

223

   

$

428

     

97

%

   

2

%

Diluted earnings per common share

 

$

3.41

   

$

1.74

   

$

3.33

     

96

%

   

2

%

Annualized return on average assets

   

1.22

%

   

.71

%

   

1.22

%

               

Annualized return on average common equity

   

11.55

%

   

6.13

%

   

11.57

%

               

For the first six-months of 2021, diluted earnings per common share rose 83% to $6.73 from $3.67 in the year-earlier period.  GAAP-basis net income for the first half of 2021 increased to $905 million from $510 million in the corresponding 2020 period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the six-month period ended June 30, 2021 was 1.22% and 11.56%, respectively, improved from .80% and 6.56%, respectively, in the similar 2020 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 increased to $3.45 in the second quarter of 2021 from $1.76 and $3.41 in the year-earlier quarter and the first quarter of 2021, respectively.  Net operating income totaled $463 million in 2021's second quarter, $244 million in the second quarter of 2020 and $457 million in the initial 2021 quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.27% and 16.68%, respectively, .74% and 9.04%, respectively, in the corresponding 2020 quarter and 1.29% and 17.05%, respectively, in the first quarter of 2021.

Diluted net operating earnings per common share in the first six months of 2021 rose to $6.84 from $3.71 in the similar 2020 period.  Net operating income during the first half of 2021 was $920 million, up from $516 million in the six-month period ended June 30, 2020.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.28% and 16.86%, respectively, in the initial six months of 2021, compared with .84% and 9.71% respectively, in the similar 2020 period.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $946 million in the recent quarter, compared with $961 million in the second quarter of 2020 and $985 million in the initial 2021 quarter.  The decrease in the recent quarter as compared with the earlier quarters was due to a narrowing of the net interest margin to 2.77% in the second quarter of 2021 from 3.13% in the year-earlier quarter and 2.97% in the first quarter of 2021.  The decreased net interest margin resulted from lower interest rates earned on loans and higher amounts of low-yielding balances at the Federal Reserve Bank of New York.  Interest income from Paycheck Protection Program ("PPP") loans, including recognition of fees associated with repaid loans, was $51 million in the recent quarter, $29 million in the year-earlier quarter and $70 million in the first quarter of 2021.

                                         

Taxable-equivalent Net Interest Income

 
                                         
                           

Change 2Q21 vs.

 

($ in millions)

 

2Q21

   

2Q20

   

1Q21

   

2Q20

   

1Q21

 
                                         

Average earning assets

 

$

136,951

   

$

123,492

   

$

134,355

     

11

%

   

2

%

Net interest income  ̶  taxable-equivalent

 

$

946

   

$

961

   

$

985

     

-2

%

   

-4

%

Net interest margin

   

2.77

%

   

3.13

%

   

2.97

%

               

Provision for Credit Losses/Asset Quality.  Recaptures of the provision for credit losses of $15 million and $25 million were recorded in the second and first quarters of 2021, respectively.  The provision for credit losses was $325 million in the second quarter of 2020.  The provision in each quarter adjusts the allowance for credit losses to reflect expected losses that are based on economic forecasts as of each quarter-end date. Net loan charge-offs were $46 million during the recent quarter, down from $71 million in the second quarter of 2020 and $75 million in the first quarter of 2021. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% and .29% in the second quarters of 2021 and 2020, respectively, and .31% in the first quarter of 2021.

Nonaccrual loans totaled $2.24 billion or 2.31% of total loans outstanding at June 30, 2021, compared with $1.96 billion or 1.97% of total loans at March 31, 2021 and $1.16 billion or 1.18% at June 30, 2020.  The increase in nonaccrual loans from June 30, 2020 to the two most recent quarter-ends reflects the continuing impact of the pandemic on borrowers' ability to make contractual payments on their loans, most notably loans in the hospitality sector.  Assets taken in foreclosure of defaulted loans were $28 million at June 30, 2021, $67 million a year earlier and $30 million at March 31, 2021.

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 $1.58 billion or 1.62% of loans outstanding at June 30, 2021, compared with $1.64 billion or 1.68% at June 30, 2020 and $1.64 billion or 1.65% at March 31, 2021. The allowance at June 30, 2021, June 30, 2020, and March 31, 2021 represented 1.69%, 1.79%, and 1.75%, respectively, of total loans on those dates, excluding outstanding balances of PPP loans.

 

 

Asset Quality Metrics

 

 

 

                           

Change 2Q21 vs.

 

($ in millions)

 

2Q21

   

2Q20

   

1Q21

   

2Q20

   

1Q21

 
                                         

At end of quarter

                                       

Nonaccrual loans

 

$

2,242

   

$

1,157

   

$

1,957

     

94

%

   

15

%

Real estate and other foreclosed assets

 

$

28

   

$

67

   

$

30

     

-58

%

   

-6

%

Total nonperforming assets

 

$

2,270

   

$

1,224

   

$

1,987

     

86

%

   

14

%

Accruing loans past due 90 days or more (1)

 

$

1,077

   

$

536

   

$

1,085

     

101

%

   

-1

%

Nonaccrual loans as % of loans outstanding

   

2.31

%

   

1.18

%

   

1.97

%

               
                                         

Allowance for credit losses

 

$

1,575

   

$

1,638

   

$

1,636

     

-4

%

   

-4

%

Allowance for credit losses as % of loans outstanding

   

1.62

%

   

1.68

%

   

1.65

%

               
                                         

For the period

                                       

Provision for credit losses

 

$

(15)

   

$

325

   

$

(25)

     

     

 

Net charge-offs

 

$

46

   

$

71

   

$

75

     

-35

%

   

-39

%

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

   

.19

%

   

.29

%

   

.31

%

               
                                                 

 

(1) Predominantly government-guaranteed residential real estate loans.

Noninterest Income and Expense.  Noninterest income increased to $514 million in the second quarter of 2021 from $487 million in the year-earlier quarter and $506 million in the first quarter of 2021. The higher level of the recent quarter's noninterest income when compared with the earlier quarters resulted largely from higher service charges on deposit accounts, merchant discount and credit card fees, and trust income.

Noninterest Income

 
                                         
                           

Change 2Q21 vs.

 

($ in millions)

 

2Q21

   

2Q20

   

1Q21

   

2Q20

   

1Q21

 
                                         

Mortgage banking revenues

 

$

133

   

$

145

   

$

139

     

-8

%

   

-4

%

Service charges on deposit accounts

   

99

     

78

     

93

     

27

%

   

6

%

Trust income

   

163

     

152

     

156

     

7

%

   

4

%

Brokerage services income

   

10

     

10

     

13

     

-2

%

   

-22

%

Trading account and foreign exchange gains

   

7

     

8

     

6

     

-22

%

   

3

%

Gain (loss) on bank investment securities

   

(11)

     

7

     

(12)

   

   

 

Other revenues from operations

   

113

     

87

     

111

     

29

%

   

2

%

Total

 

$

514

   

$

487

   

$

506

     

5

%

   

2

%

Noninterest expense totaled $865 million in the second quarter of 2021, compared with $807 million in the corresponding quarter of 2020 and $919 million in the first quarter of 2021.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $859 million in the recent quarter, $803 million in the second quarter of 2020 and $907 million in 2021's initial quarter. Factors contributing to the increase in noninterest operating expenses in the recent quarter as compared with the year-earlier quarter were higher costs for salaries and employee benefits, outside data processing and software, and professional services. As compared with the first quarter of 2021, the lower level of noninterest expenses in the recent quarter was predominantly attributable to a decline in expenses for salaries and employee benefits, reflecting seasonally higher stock-based compensation and employee benefits expenses during the initial 2021 quarter.  Reflecting the impact of lower interest rates on expected prepayments of serviced residential mortgage loans, M&T recorded an $8 million increase in the valuation allowance for capitalized residential mortgage servicing rights in the recent quarter, compared with a decrease in that valuation allowance of $9 million in the initial 2021 quarter.

 

Noninterest Expense

 
                                         
                           

Change 2Q21 vs.

 

($ in millions)

 

2Q21

   

2Q20

   

1Q21

   

2Q20

   

1Q21

 
                                         

Salaries and employee benefits

 

$

479

   

$

459

   

$

541

     

4

%

   

-11

%

Equipment and net occupancy

   

81

     

77

     

82

     

5

%

   

-2

%

Outside data processing and software

   

74

     

61

     

66

     

21

%

   

13

%

FDIC assessments

   

18

     

14

     

14

     

26

%

   

26

%

Advertising and marketing

   

13

     

10

     

15

     

36

%

   

-9

%

Printing, postage and supplies

   

11

     

11

     

9

     

-1

%

   

19

%

Amortization of core deposit and other intangible assets

   

3

     

4

     

3

     

-30

%

 

 

Other costs of operations

   

186

     

171

     

189

     

9

%

   

-2

%

Total

 

$

865

   

$

807

   

$

919

     

7

%

   

-6

%

                                         

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 58.4% in the second quarter of 2021, 55.7% in the year-earlier quarter and 60.3% in the first quarter of 2021.

Balance Sheet.  M&T had total assets of $150.6 billion at June 30, 2021, compared with $139.5 billion and $150.5 billion at June 30, 2020 and March 31, 2021, respectively. Loans and leases, net of unearned discount, were $97.1 billion at June 30, 2021, compared with $97.8 billion at June 30, 2020 and $99.3 billion at March 31, 2021. The lower level of loans and leases at the recent quarter-end as compared with June 30, 2020 reflects a $3.8 billion decline in commercial loans, largely offset by growth in consumer loans and residential real estate loans of $1.7 billion and $1.1 billion, respectively.  The lower commercial loan balances reflect declines in PPP and dealer floor plan loans.  The rise in consumer loans resulted from higher balances of recreational finance and automobile loans, while the increase in residential real estate loans was attributable to purchased government-guaranteed loans.  The decline in total loans and leases at the recent quarter-end as compared with the first quarter of 2021 resulted largely from lower commercial loans of $2.4 billion and residential real estate loans of $645 million, partially offset by a rise in consumer loans of $728 million. The decrease in commercial loans reflects lower balances of PPP loans. Those loans totaled $4.3 billion at June 30, 2021, compared with $6.5 billion at June 30, 2020 and $6.2 billion at March 31, 2021. The consumer loans increase reflects higher balances of recreational finance and automobile loans.  Total deposits were $128.3 billion at the recent quarter-end, compared with $115.0 billion at June 30, 2020 and $128.5 billion at March 31, 2021. The increased levels of deposits at the two most recent quarter-ends as compared with June 30, 2020 reflect higher levels of liquidity being maintained by many commercial and consumer customers.  During the recent quarter, M&T stopped accepting deposits for its Cayman Islands office.

Total shareholders' equity was $16.7 billion, or 11.10% of total assets at June 30, 2021, $15.9 billion, or 11.43% at June 30, 2020 and $16.4 billion, or 10.93% at March 31, 2021. Common shareholders' equity was $15.5 billion, or $120.22 per share, at June 30, 2021, compared with $14.7 billion, or $114.54 per share, a year-earlier and $15.2 billion, or $118.12 per share, at March 31, 2021. Tangible equity per common share was $84.47 at June 30, 2021, $78.62 at June 30, 2020 and $82.35 at March 31, 2021. 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 10.7% at June 30, 2021, up from 10.4% three months earlier.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second 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 #1338608.  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 Wednesday, July 28, 2021 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to the ID #1338608.  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.

About M&T. 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.

Who We Are.  We are a bank for communities – bringing the capabilities of a large bank with the care of a locally focused institution. Our purpose is to make a difference in people's lives serving all our stakeholders. The keys to our approach are characterized by responsible lending based on the advantages of local knowledge and scale, and our long history of being prudent stewards of our shareholders' capital. For more on our approach as a bank for communities, we committed to communicating our efforts transparently, in our inaugural ESG Report launched this quarter.

We have once again received an "Outstanding" Community Reinvestment Act (CRA) rating from the Federal Reserve Bank of New York – a streak of earning the regulatory agency's highest rating for meeting the credit needs of the bank's communities that dates to 1982. While these acknowledgements might not be the biggest markers of corporate financial success, they are some of the most important to us, because it recognizes our work to improve the quality of lives in all of our communities and for all of our stakeholders.  This, we believe, is the hallmark of building a healthier company.

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.

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 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.

Also as described further below, statements regarding M&T's expectations or predictions regarding the proposed transaction between M&T and People's United Financial, Inc. ("People's United") are forward-looking statements, including statements regarding the expected timing, completion and effects of the proposed transaction as well as M&T's and People's United's expected financial results, prospects, targets, goals and outlook.  

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions.  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 risks, predictions and uncertainties relating to the impact of the COVID-19 pandemic; the impact of the People's United transaction, as described further below; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation or regulations 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.

In addition, Future Factors related to the proposed transaction between M&T and People's United, include, among others: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between M&T and People's United; the outcome of any legal proceedings that may be instituted against M&T or People's United; the possibility that the proposed transaction will not close when expected or at all because required regulatory or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the risk that any announcements relating to the proposed combination could have adverse effects on the market price of the common stock of either or both parties to the combination; the possibility that the anticipated benefits of the transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where M&T and People's United do business; certain restrictions during the pendency of the merger that may impact the parties' ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; M&T's and People's United's success in executing their respective business plans and strategies and managing the risks involved in the foregoing; and other factors that may affect future results of M&T and People's United; the business, economic and political conditions in the markets in which the parties operate; the risk that the proposed combination and its announcement could have an adverse effect on either or both parties' ability to retain customers and retain or hire key personnel and maintain relationships with customers; the risk that the proposed combination may be more difficult or time-consuming than anticipated, including in areas such as sales force, cost containment, asset realization, systems integration and other key strategies; revenues following the proposed combination may be lower than expected, including for possible reasons such as unexpected costs, charges or expenses resulting from the transactions; the unforeseen risks relating to liabilities of M&T or People's United that may exist; and uncertainty as to the extent of the duration, scope, and impacts of the COVID-19 pandemic on People's United, M&T and the proposed combination.

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.

M&T provides further detail regarding these risks and uncertainties in its 2020 Form 10-K, including in the Risk Factors section of such report, as well as in certain other 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

           

Six months ended

         
   

June 30

           

June 30

         

Amounts in thousands, except per share

 

2021

   

2020

   

Change

   

2021

   

2020

   

Change

 

Performance

                                               

Net income

 

$

458,069

     

241,054

     

90

%

 

$

905,318

     

509,876

     

78

%

Net income available to common shareholders

   

438,759

     

223,099

     

97

%

   

866,852

     

473,795

     

83

%

Per common share:

                                               

Basic earnings

 

$

3.41

     

1.74

     

96

%

 

$

6.74

     

3.67

     

84

%

Diluted earnings

   

3.41

     

1.74

     

96

%

   

6.73

     

3.67

     

83

%

Cash dividends

 

$

1.10

     

1.10

     

   

$

2.20

     

2.20

   

 

Common shares outstanding:

                                               

Average - diluted (1)

   

128,842

     

128,333

     

     

128,756

     

129,044

   

 

Period end (2)

   

128,686

     

128,294

   

     

128,686

     

128,294

   

 

Return on (annualized):

                                               

Average total assets

   

1.22

%

   

.71

%

           

1.22

%

   

.80

%

       

Average common shareholders' equity

   

11.55

%

   

6.13

%

           

11.56

%

   

6.56

%

       

Taxable-equivalent net interest income

 

$

946,072

     

961,371

     

-2

%

 

$

1,931,200

     

1,943,239

     

-1

%

Yield on average earning assets

   

2.85

%

   

3.38

%

           

2.97

%

   

3.75

%

       

Cost of interest-bearing liabilities

   

.14

%

   

.40

%

           

.17

%

   

.60

%

       

Net interest spread

   

2.71

%

   

2.98

%

           

2.80

%

   

3.15

%

       

Contribution of interest-free funds

   

.06

%

   

.15

%

           

.07

%

   

.22

%

       

Net interest margin

   

2.77

%

   

3.13

%

           

2.87

%

   

3.37

%

       

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

   

.19

%

   

.29

%

           

.25

%

   

.26

%

       

Net operating results (3)

                                               

Net operating income

 

$

462,959

     

243,958

     

90

%

 

$

920,331

     

515,663

     

78

%

Diluted net operating earnings per common share

   

3.45

     

1.76

     

96

%

   

6.84

     

3.71

     

84

%

Return on (annualized):

                                               

Average tangible assets

   

1.27

%

   

.74

%

           

1.28

%

   

.84

%

       

Average tangible common equity

   

16.68

%

   

9.04

%

           

16.86

%

   

9.71

%

       

Efficiency ratio

   

58.4

%

   

55.7

%

           

59.4

%

   

57.4

%

       
                                                 
   

 At June 30

                                     

Loan quality

 

2021

   

2020

   

Change

                         

Nonaccrual loans

 

$

2,242,057

     

1,156,650

     

94

%

                       

Real estate and other foreclosed assets

   

27,902

     

66,763

     

-58

%

                       

Total nonperforming assets

 

$

2,269,959

     

1,223,413

     

86

%

                       

Accruing loans past due 90 days or more (4)

 

$

1,077,227

     

535,755

     

101

%

                       

Government guaranteed loans included in totals above:

                                               

Nonaccrual loans

 

$

49,796

     

51,165

     

-3

%

                       

Accruing loans past due 90 days or more

   

1,029,331

     

454,269

     

127

%

                       

Renegotiated loans

 

$

236,377

     

234,768

     

1

%

                       

Nonaccrual loans to total net loans

   

2.31

%

   

1.18

%

                               

Allowance for credit losses to total loans

   

1.62

%

   

1.68

%

                               
                   

(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.

 

 

Financial Highlights, Five Quarter Trend

 
   

Three months ended

 
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Amounts in thousands, except per share

 

2021

   

2021

   

2020

   

2020

   

2020

 

Performance

                                       

Net income

 

$

458,069

     

447,249

     

471,140

     

372,136

     

241,054

 

Net income available to common shareholders

   

438,759

     

428,093

     

451,869

     

353,400

     

223,099

 

Per common share:

                                       

Basic earnings

 

$

3.41

     

3.33

     

3.52

     

2.75

     

1.74

 

Diluted earnings

   

3.41

     

3.33

     

3.52

     

2.75

     

1.74

 

Cash dividends

 

$

1.10

     

1.10

     

1.10

     

1.10

     

1.10

 

Common shares outstanding:

                                       

Average - diluted (1)

   

128,842

     

128,669

     

128,379

     

128,355

     

128,333

 

Period end (2)

   

128,686

     

128,658

     

128,333

     

128,303

     

128,294

 

Return on (annualized):

                                       

Average total assets

   

1.22

%

   

1.22

%

   

1.30

%

   

1.06

%

   

.71

%

Average common shareholders' equity

   

11.55

%

   

11.57

%

   

12.07

%

   

9.53

%

   

6.13

%

Taxable-equivalent net interest income

 

$

946,072

     

985,128

     

993,252

     

947,114

     

961,371

 

Yield on average earning assets

   

2.85

%

   

3.08

%

   

3.15

%

   

3.13

%

   

3.38

%

Cost of interest-bearing liabilities

   

.14

%

   

.18

%

   

.25

%

   

.30

%

   

.40

%

Net interest spread

   

2.71

%

   

2.90

%

   

2.90

%

   

2.83

%

   

2.98

%

Contribution of interest-free funds

   

.06

%

   

.07

%

   

.10

%

   

.12

%

   

.15

%

Net interest margin

   

2.77

%

   

2.97

%

   

3.00

%

   

2.95

%

   

3.13

%

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

   

.19

%

   

.31

%

   

.39

%

   

.12

%

   

.29

%

Net operating results (3)

                                       

Net operating income

 

$

462,959

     

457,372

     

473,453

     

375,029

     

243,958

 

Diluted net operating earnings per common share

   

3.45

     

3.41

     

3.54

     

2.77

     

1.76

 

Return on (annualized):

                                       

Average tangible assets

   

1.27

%

   

1.29

%

   

1.35

%

   

1.10

%

   

.74

%

Average tangible common equity

   

16.68

%

   

17.05

%

   

17.53

%

   

13.94

%

   

9.04

%

Efficiency ratio

   

58.4

%

   

60.3

%

   

54.6

%

   

56.2

%

   

55.7

%

                                         
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Loan quality

 

2021

   

2021

   

2020

   

2020

   

2020

 

Nonaccrual loans

 

$

2,242,057

     

1,957,106

     

1,893,299

     

1,239,972

     

1,156,650

 

Real estate and other foreclosed assets

   

27,902

     

29,797

     

34,668

     

49,872

     

66,763

 

Total nonperforming assets

 

$

2,269,959

     

1,986,903

     

1,927,967

     

1,289,844

     

1,223,413

 

Accruing loans past due 90 days or more (4)

 

$

1,077,227

     

1,084,553

     

859,208

     

527,258

     

535,755

 

Government guaranteed loans included in totals above:

                                       

Nonaccrual loans

 

$

49,796

     

51,668

     

48,820

     

45,975

     

51,165

 

Accruing loans past due 90 days or more

   

1,029,331

     

1,044,599

     

798,121

     

505,446

     

454,269

 

Renegotiated loans

 

$

236,377

     

242,121

     

238,994

     

242,581

     

234,768

 

Nonaccrual loans to total net loans

   

2.31

%

   

1.97

%

   

1.92

%

   

1.26

%

   

1.18

%

 

Allowance for credit losses to total loans

   

1.62

%

   

1.65

%

   

1.76

%

   

1.79

%

   

1.68

%

                       

(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.

 

 

Condensed Consolidated Statement of Income

 
   

Three months ended

           

Six months ended

         
   

June 30

           

June 30

         

Dollars in thousands

 

2021

   

2020

   

Change

   

2021

   

2020

   

Change

 

Interest income

 

$

970,358

     

1,032,242

     

-6

%

 

$

1,987,320

     

2,152,661

     

-8

%

Interest expense

   

28,018

     

75,105

     

-63

     

63,585

     

218,719

     

-71

 

Net interest income

   

942,340

     

957,137

     

-2

     

1,923,735

     

1,933,942

     

-1

 

Provision for credit losses

   

(15,000)

     

325,000

   

     

(40,000)

     

575,000

   

 

Net interest income after provision for credit losses

   

957,340

     

632,137

     

51

     

1,963,735

     

1,358,942

     

45

 

Other income

                                               

Mortgage banking revenues

   

133,313

     

145,024

     

-8

     

272,067

     

272,933

   

 

Service charges on deposit accounts

   

98,518

     

77,455

     

27

     

191,295

     

183,616

     

4

 

Trust income

   

162,991

     

151,882

     

7

     

319,013

     

300,633

     

6

 

Brokerage services income

   

10,265

     

10,463

     

-2

     

23,378

     

23,592

     

-1

 

Trading account and foreign exchange gains

   

6,502

     

8,290

     

-22

     

12,786

     

29,306

     

-56

 

Gain (loss) on bank investment securities

   

(10,655)

     

6,969

   

     

(22,937)

     

(13,813)

     

 

Other revenues from operations

   

112,699

     

87,190

     

29

     

223,629

     

220,366

     

1

 

Total other income

   

513,633

     

487,273

     

5

     

1,019,231

     

1,016,633

     

 

Other expense

                                               

Salaries and employee benefits

   

479,134

     

458,842

     

4

     

1,020,212

     

995,685

     

2

 

Equipment and net occupancy

   

80,848

     

77,089

     

5

     

163,319

     

156,729

     

4

 

Outside data processing and software

   

74,492

     

61,376

     

21

     

140,243

     

125,786

     

11

 

FDIC assessments

   

17,876

     

14,207

     

26

     

32,064

     

26,478

     

21

 

Advertising and marketing

   

13,364

     

9,842

     

36

     

27,992

     

32,217

     

-13

 

Printing, postage and supplies

   

11,133

     

11,260

     

-1

     

20,450

     

22,112

     

-8

 

Amortization of core deposit and other

   intangible assets

   

2,737

     

3,913

     

-30

     

5,475

     

7,826

     

-30

 

Other costs of operations

   

185,761

     

170,513

     

9

     

375,034

     

346,625

     

8

 

Total other expense

   

865,345

     

807,042

     

7

     

1,784,789

     

1,713,458

     

4

 

Income before income taxes

   

605,628

     

312,368

     

94

     

1,198,177

     

662,117

     

81

 

Applicable income taxes

   

147,559

     

71,314

     

107

     

292,859

     

152,241

     

92

 

Net income

 

$

458,069

     

241,054

     

90

%

 

$

905,318

     

509,876

     

78

%

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 
   

Three months ended

 
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Dollars in thousands

 

2021

   

2021

   

2020

   

2020

   

2020

 

Interest income

 

$

970,358

     

1,016,962

     

1,038,890

     

1,001,161

     

1,032,242

 

Interest expense

   

28,018

     

35,567

     

49,610

     

58,066

     

75,105

 

Net interest income

   

942,340

     

981,395

     

989,280

     

943,095

     

957,137

 

Provision for credit losses

   

(15,000)

     

(25,000)

     

75,000

     

150,000

     

325,000

 

Net interest income after provision for credit losses

   

957,340

     

1,006,395

     

914,280

     

793,095

     

632,137

 

Other income

                                       

Mortgage banking revenues

   

133,313

     

138,754

     

140,441

     

153,267

     

145,024

 

Service charges on deposit accounts

   

98,518

     

92,777

     

95,817

     

91,355

     

77,455

 

Trust income

   

162,991

     

156,022

     

151,314

     

149,937

     

151,882

 

Brokerage services income

   

10,265

     

13,113

     

12,234

     

11,602

     

10,463

 

Trading account and foreign exchange gains

   

6,502

     

6,284

     

7,204

     

4,026

     

8,290

 

Gain (loss) on bank investment securities

   

(10,655)

     

(12,282)

     

1,619

     

2,773

     

6,969

 

Other revenues from operations

   

112,699

     

110,930

     

142,621

     

107,601

     

87,190

 

Total other income

   

513,633

     

505,598

     

551,250

     

520,561

     

487,273

 

Other expense

                                       

Salaries and employee benefits

   

479,134

     

541,078

     

476,110

     

478,897

     

458,842

 

Equipment and net occupancy

   

80,848

     

82,471

     

84,228

     

81,080

     

77,089

 

Outside data processing and software

   

74,492

     

65,751

     

68,034

     

64,660

     

61,376

 

FDIC assessments

   

17,876

     

14,188

     

15,204

     

12,121

     

14,207

 

Advertising and marketing

   

13,364

     

14,628

     

17,832

     

11,855

     

9,842

 

Printing, postage and supplies

   

11,133

     

9,317

     

8,335

     

9,422

     

11,260

 

Amortization of core deposit and other intangible assets

   

2,737

     

2,738

     

3,129

     

3,914

     

3,913

 

Other costs of operations

   

185,761

     

189,273

     

172,136

     

164,825

     

170,513

 

Total other expense

   

865,345

     

919,444

     

845,008

     

826,774

     

807,042

 

Income before income taxes

   

605,628

     

592,549

     

620,522

     

486,882

     

312,368

 

Applicable income taxes

   

147,559

     

145,300

     

149,382

     

114,746

     

71,314

 

Net income

 

$

458,069

     

447,249

     

471,140

     

372,136

     

241,054

 

 

 

Condensed Consolidated Balance Sheet

 
   

June 30

           

Dollars in thousands

 

2021

   

2020

   

Change

   

ASSETS

                         

Cash and due from banks

 

$

1,410,468

     

1,354,815

     

4

 

%

Interest-bearing deposits at banks

   

33,864,824

     

20,888,341

     

62

   

Trading account

   

712,558

     

1,293,534

     

-45

   

Investment securities

   

6,143,177

     

8,454,344

     

-27

   

Loans and leases:

                         

Commercial, financial, etc.

   

25,409,291

     

29,203,862

     

-13

   

Real estate - commercial

   

37,558,775

     

37,159,451

     

1

   

Real estate - consumer

   

16,704,951

     

15,611,462

     

7

   

Consumer

   

17,440,415

     

15,782,773

     

11

   

Total loans and leases, net of unearned discount

   

97,113,432

     

97,757,548

     

-1

   

Less: allowance for credit losses

   

1,575,128

     

1,638,236

     

-4

   

Net loans and leases

   

95,538,304

     

96,119,312

     

-1

   

Goodwill

   

4,593,112

     

4,593,112

     

   

Core deposit and other intangible assets

   

8,690

     

21,208

     

-59

   

Other assets

   

8,351,574

     

6,812,303

     

23

   

Total assets

 

$

150,622,707

     

139,536,969

     

8

 

%

                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Noninterest-bearing deposits

 

$

55,621,230

     

45,397,843

     

23

 

%

Interest-bearing deposits

   

72,647,542

     

68,701,832

     

6

   

Deposits at Cayman Islands office

   

     

868,284

     

-100

   

Total deposits

   

128,268,772

     

114,967,959

     

12

   

Short-term borrowings

   

91,235

     

52,298

     

74

   

Accrued interest and other liabilities

   

2,042,948

     

2,250,316

     

-9

   

Long-term borrowings

   

3,499,448

     

6,321,291

     

-45

   

Total liabilities

   

133,902,403

     

123,591,864

     

8

   

Shareholders' equity:

                         

Preferred

   

1,250,000

     

1,250,000

     

   

Common

   

15,470,304

     

14,695,105

     

5

   

Total shareholders' equity

   

16,720,304

     

15,945,105

     

5

   

Total liabilities and shareholders' equity

 

$

150,622,707

     

139,536,969

     

8

 

%

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 

Dollars in thousands

 

2021

   

2021

   

2020

   

2020

   

2020

 

ASSETS

                                       

Cash and due from banks

 

$

1,410,468

     

1,258,989

     

1,552,743

     

1,489,232

     

1,354,815

 

Interest-bearing deposits at banks

   

33,864,824

     

31,407,227

     

23,663,810

     

20,197,937

     

20,888,341

 

Federal funds sold

   

     

1,000

     

     

     

 

Trading account

   

712,558

     

687,359

     

1,068,581

     

1,215,573

     

1,293,534

 

Investment securities

   

6,143,177

     

6,610,667

     

7,045,697

     

7,723,004

     

8,454,344

 

Loans and leases:

                                       

Commercial, financial, etc.

   

25,409,291

     

27,811,190

     

27,574,564

     

27,891,648

     

29,203,862

 

Real estate - commercial

   

37,558,775

     

37,425,974

     

37,637,889

     

37,582,084

     

37,159,451

 

Real estate - consumer

   

16,704,951

     

17,349,683

     

16,752,993

     

16,663,708

     

15,611,462

 

Consumer

   

17,440,415

     

16,712,233

     

16,570,421

     

16,309,608

     

15,782,773

 

Total loans and leases, net of unearned discount

   

97,113,432

     

99,299,080

     

98,535,867

     

98,447,048

     

97,757,548

 

Less: allowance for credit losses

   

1,575,128

     

1,636,206

     

1,736,387

     

1,758,505

     

1,638,236

 

Net loans and leases

   

95,538,304

     

97,662,874

     

96,799,480

     

96,688,543

     

96,119,312

 

Goodwill

   

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

     

4,593,112

 

Core deposit and other intangible assets

   

8,690

     

11,427

     

14,165

     

17,294

     

21,208

 

Other assets

   

8,351,574

     

8,248,405

     

7,863,517

     

6,702,048

     

6,812,303

 

Total assets

 

$

150,622,707

     

150,481,060

     

142,601,105

     

138,626,743

     

139,536,969

 
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                       

Noninterest-bearing deposits

 

$

55,621,230

     

53,641,419

     

47,572,884

     

44,201,670

     

45,397,843

 

Interest-bearing deposits

   

72,647,542

     

74,193,255

     

71,580,750

     

70,061,680

     

68,701,832

 

Deposits at Cayman Islands office

   

     

641,691

     

652,104

     

899,989

     

868,284

 

Total deposits

   

128,268,772

     

128,476,365

     

119,805,738

     

115,163,339

     

114,967,959

 

Short-term borrowings

   

91,235

     

58,957

     

59,482

     

46,123

     

52,298

 

Accrued interest and other liabilities

   

2,042,948

     

2,000,727

     

2,166,409

     

1,857,383

     

2,250,316

 

Long-term borrowings

   

3,499,448

     

3,498,503

     

4,382,193

     

5,458,885

     

6,321,291

 

Total liabilities

   

133,902,403

     

134,034,552

     

126,413,822

     

122,525,730

     

123,591,864

 

Shareholders' equity:

                                       

Preferred

   

1,250,000

     

1,250,000

     

1,250,000

     

1,250,000

     

1,250,000

 

Common

   

15,470,304

     

15,196,508

     

14,937,283

     

14,851,013

     

14,695,105

 

Total shareholders' equity

   

16,720,304

     

16,446,508

     

16,187,283

     

16,101,013

     

15,945,105

 

Total liabilities and shareholders' equity

 

$

150,622,707

     

150,481,060

     

142,601,105

     

138,626,743

     

139,536,969

 

 

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 
     

Three months ended

 

Change in balance
June 30, 2021 from

 

Six months ended
June 30,

     
     

June 30,
2021

 

June 30,
2020

 

March 31,
2021

   

2021

 

2020

 

 

Change
in
balance

     

Balance

 

Rate

 

Balance

 

Rate

 

Balance

 

Rate

 

June 30,
2020

 

March 31,
2021

 

Balance

 

Rate

 

Balance

 

Rate

 

ASSETS

                                                                   

Interest-bearing deposits at banks

 

$

32,081

 

.11

%

 

16,454

 

.10

%

 

27,666

 

.10

%

 

95

%

 

16

%

 

$

29,886

 

.11

%

 

11,292

 

.41

%

 

165

%

Federal funds sold and agreements to resell securities

   

 

.48

   

692

 

.11

   

678

 

.12

   

-100

   

-100

     

337

 

.12

   

958

 

.90

   

 

Trading account

   

49

 

1.76

   

49

 

2.04

   

50

 

1.44

   

1

   

     

49

 

1.60

   

56

 

2.38

   

-12

 

Investment securities

   

6,211

 

2.23

   

8,500

 

2.24

   

6,605

 

2.28

   

-27

   

-6

     

6,407

 

2.25

   

8,801

 

2.23

   

-27

 

Loans and leases, net of unearned discount

                                                                       

Commercial, financial, etc.

   

27,055

 

3.26

   

29,733

 

3.10

   

27,723

 

3.53

   

-9

   

-2

     

27,387

 

3.39

   

27,011

 

3.55

   

1

 

Real estate - commercial

   

37,419

 

3.92

   

36,947

 

4.42

   

37,609

 

4.16

   

1

   

-1

     

37,513

 

4.04

   

36,491

 

4.62

   

3

 

Real estate - consumer

   

17,022

 

3.54

   

15,599

 

4.00

   

17,404

 

3.54

   

9

   

-2

     

17,212

 

3.54

   

15,765

 

4.02

   

9

 

Consumer

   

17,114

 

4.44

   

15,518

 

4.85

   

16,620

 

4.64

   

10

   

3

     

16,869

 

4.53

   

15,484

 

5.07

   

9

 

Total loans and leases, net

   

98,610

 

3.79

   

97,797

 

4.05

   

99,356

 

3.99

   

1

   

-1

     

98,981

 

3.89

   

94,751

 

4.32

   

4

 

Total earning assets

   

136,951

 

2.85

   

123,492

 

3.38

   

134,355

 

3.08

   

11

   

2

     

135,660

 

2.97

   

115,858

 

3.75

   

17

 

Goodwill

   

4,593

       

4,593

       

4,593

       

   

     

4,593

       

4,593

       

 

Core deposit and other intangible assets

   

10

       

23

       

13

       

-57

   

-21

     

11

       

25

       

-55

 

Other assets

   

9,087

       

8,338

       

9,196

       

9

   

-1

     

9,142

       

8,037

       

14

 

Total assets

 

$

150,641

       

136,446

       

148,157

       

10

%

 

2

%

 

$

149,406

       

128,513

       

16

%

                                                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                       

Interest-bearing deposits

                                                                       

Savings and interest-checking deposits

 

$

71,561

 

.05

   

62,927

 

.17

   

70,458

 

.07

   

14

%

 

2

%

 

$

71,013

 

.06

   

59,646

 

.35

   

19

%

Time deposits

   

3,358

 

.61

   

5,354

 

1.49

   

3,732

 

.76

   

-37

   

-10

     

3,544

 

.69

   

5,513

 

1.52

   

-36

 

Deposits at Cayman Islands office

   

50

 

.12

   

1,017

 

.06

   

683

 

.11

   

-95

   

-93

     

365

 

.11

   

1,344

 

.54

   

-73

 

Total interest-bearing deposits

   

74,969

 

.07

   

69,298

 

.27

   

74,873

 

.10

   

8

   

     

74,922

 

.09

   

66,503

 

.45

   

13

 

Short-term borrowings

   

61

 

.01

   

63

 

.01

   

62

 

.01

   

-3

   

-1

     

61

 

.01

   

60

 

.08

   

2

 

Long-term borrowings

   

3,429

 

1.74

   

6,189

 

1.86

   

3,851

 

1.78

   

-45

   

-11

     

3,639

 

1.76

   

6,215

 

2.23

   

-41

 

Total interest-bearing liabilities

   

78,459

 

.14

   

75,550

 

.40

   

78,786

 

.18

   

4

   

     

78,622

 

.17

   

72,778

 

.60

   

8

 

Noninterest-bearing deposits

   

53,444

       

42,497

       

50,860

       

26

   

5

     

52,159

       

37,477

       

39

 

Other liabilities

   

2,167

       

2,446

       

2,184

       

-11

   

-1

     

2,175

       

2,422

       

-10

 

Total liabilities

   

134,070

       

120,493

       

131,830

       

11

   

2

     

132,956

       

112,677

       

18

 

Shareholders' equity

   

16,571

       

15,953

       

16,327

       

4

   

1

     

16,450

       

15,836

       

4

 

Total liabilities and shareholders' equity

 

$

150,641

       

136,446

       

148,157

       

10

%

 

2

%

 

$

149,406

       

128,513

       

16

%

                                                                         

Net interest spread

       

2.71

       

2.98

       

2.90

                     

2.80

       

3.15

       

Contribution of interest-free funds

       

.06

       

.15

       

.07

                     

.07

       

.22

       

Net interest margin

       

2.77

%

     

3.13

%

     

2.97

%

                   

2.87

%

     

3.37

%

     

 

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 
   

Three months ended

   

Six months ended

 
   

June 30

   

June 30

 
   

2021

   

2020

   

2021

   

2020

 

Income statement data

                               

In thousands, except per share

                               

Net income

                               

Net income

 

$

458,069

     

241,054

     

905,318

     

509,876

 

Amortization of core deposit and other intangible assets (1)

   

2,023

     

2,904

     

4,057

     

5,787

 

Merger-related expenses (1)

   

2,867

     

     

10,956

     

 

Net operating income

 

$

462,959

     

243,958

     

920,331

     

515,663

 
                                 

Earnings per common share

                               

Diluted earnings per common share

 

$

3.41

     

1.74

     

6.73

     

3.67

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.02

     

.03

     

.04

 

Merger-related expenses (1)

   

.02

     

     

.08

     

 

Diluted net operating earnings per common share

 

$

3.45

     

1.76

     

6.84

     

3.71

 
                                 

Other expense

                               

Other expense

 

$

865,345

     

807,042

     

1,784,789

     

1,713,458

 

Amortization of core deposit and other intangible assets

   

(2,737)

     

(3,913)

     

(5,475)

     

(7,826)

 

Merger-related expenses

   

(3,893)

     

     

(13,844)

     

 

Noninterest operating expense

 

$

858,715

     

803,129

     

1,765,470

     

1,705,632

 

Merger-related expenses

                               

Salaries and employee benefits

 

$

4

     

     

4

     

 

Outside data processing and software

   

244

     

     

244

     

 

Advertising and marketing

   

24

     

     

24

     

 

Printing, postage and supplies

   

2,049

     

     

2,049

     

 

Other costs of operations

   

1,572

     

     

11,523

     

 

Other expense

 

$

3,893

     

     

13,844

     

 

Efficiency ratio

                               

Noninterest operating expense (numerator)

 

$

858,715

     

803,129

     

1,765,470

     

1,705,632

 

Taxable-equivalent net interest income

 

$

946,072

     

961,371

     

1,931,200

     

1,943,239

 

Other income

   

513,633

     

487,273

     

1,019,231

     

1,016,633

 

Less:  Gain (loss) on bank investment securities

   

(10,655)

     

6,969

     

(22,937)

     

(13,813)

 

Denominator

 

$

1,470,360

     

1,441,675

     

2,973,368

     

2,973,685

 

Efficiency ratio

   

58.4

%

   

55.7

%

   

59.4

%

   

57.4

%

Balance sheet data

                               

In millions

                               

Average assets

                               

Average assets

 

$

150,641

     

136,446

     

149,406

     

128,513

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(10)

     

(23)

     

(11)

     

(25)

 

Deferred taxes

   

3

     

6

     

3

     

7

 

Average tangible assets

 

$

146,041

     

131,836

     

144,805

     

123,902

 

Average common equity

                               

Average total equity

 

$

16,571

     

15,953

     

16,450

     

15,836

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

 

Average common equity

   

15,321

     

14,703

     

15,200

     

14,586

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(10)

     

(23)

     

(11)

     

(25)

 

Deferred taxes

   

3

     

6

     

3

     

7

 

Average tangible common equity

 

$

10,721

     

10,093

     

10,599

     

9,975

 

At end of quarter

                               

Total assets

                               

Total assets

 

$

150,623

     

139,537

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(9)

     

(21)

                 

Deferred taxes

   

2

     

5

                 

Total tangible assets

 

$

146,023

     

134,928

                 

Total common equity

                               

Total equity

 

$

16,720

     

15,945

                 

Preferred stock

   

(1,250)

     

(1,250)

                 

Common equity

   

15,470

     

14,695

                 

Goodwill

   

(4,593)

     

(4,593)

                 

Core deposit and other intangible assets

   

(9)

     

(21)

                 

Deferred taxes

   

2

     

5

                 

Total tangible common equity

 

$

10,870

     

10,086

                 

 

                                                 

(1) After any related tax effect.

 

 

 

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

 
   

Three months ended

 
   

June 30,

   

March 31,

   

December 31,

   

September 30,

   

June 30,

 
   

2021

   

2021

   

2020

   

2020

   

2020

 

Income statement data

                                       

In thousands, except per share

                                       

Net income

                                       

Net income

 

$

458,069

     

447,249

     

471,140

     

372,136

     

241,054

 

Amortization of core deposit and other intangible assets (1)

   

2,023

     

2,034

     

2,313

     

2,893

     

2,904

 

Merger-related expenses (1)

   

2,867

     

8,089

     

     

     

 

Net operating income

 

$

462,959

     

457,372

     

473,453

     

375,029

     

243,958

 
                                         

Earnings per common share

                                       

Diluted earnings per common share

 

$

3.41

     

3.33

     

3.52

     

2.75

     

1.74

 

Amortization of core deposit and other intangible assets (1)

   

.02

     

.02

     

.02

     

.02

     

.02

 

Merger-related expenses (1)

   

.02

     

.06

     

     

     

 

Diluted net operating earnings per common share

 

$

3.45

     

3.41

     

3.54

     

2.77

     

1.76

 
                                         

Other expense

                                       

Other expense

 

$

865,345

     

919,444

     

845,008

     

826,774

     

807,042

 

Amortization of core deposit and other intangible assets

   

(2,737)

     

(2,738)

     

(3,129)

     

(3,914)

     

(3,913)

 

Merger-related expenses

   

(3,893)

     

(9,951)

     

     

     

 

Noninterest operating expense

 

$

858,715

     

906,755

     

841,879

     

822,860

     

803,129

 

Merger-related expenses

                                       

Salaries and employee benefits

 

$

4

     

     

     

     

 

Outside data processing and software

   

244

     

     

     

     

 

Advertising and marketing

   

24

     

     

     

     

 

Printing, postage and supplies

   

2,049

     

     

     

     

 

Other costs of operations

   

1,572

     

9,951

     

     

     

 

Other expense

 

$

3,893

     

9,951

     

     

     

 

Efficiency ratio

                                       

Noninterest operating expense (numerator)

 

$

858,715

     

906,755

     

841,879

     

822,860

     

803,129

 

Taxable-equivalent net interest income

 

$

946,072

     

985,128

     

993,252

     

947,114

     

961,371

 

Other income

   

513,633

     

505,598

     

551,250

     

520,561

     

487,273

 

Less:  Gain (loss) on bank investment securities

   

(10,655)

     

(12,282)

     

1,619

     

2,773

     

6,969

 

Denominator

 

$

1,470,360

     

1,503,008

     

1,542,883

     

1,464,902

     

1,441,675

 

Efficiency ratio

   

58.4

%

   

60.3

%

   

54.6

%

   

56.2

%

   

55.7

%

Balance sheet data

                                       

In millions

                                       

Average assets

                                       

Average assets

 

$

150,641

     

148,157

     

144,563

     

140,181

     

136,446

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(10)

     

(13)

     

(16)

     

(19)

     

(23)

 

Deferred taxes

   

3

     

3

     

4

     

5

     

6

 

Average tangible assets

 

$

146,041

     

143,554

     

139,958

     

135,574

     

131,836

 

Average common equity

                                       

Average total equity

 

$

16,571

     

16,327

     

16,213

     

16,073

     

15,953

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

 

Average common equity

   

15,321

     

15,077

     

14,963

     

14,823

     

14,703

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(10)

     

(13)

     

(16)

     

(19)

     

(23)

 

Deferred taxes

   

3

     

3

     

4

     

5

     

6

 

Average tangible common equity

 

$

10,721

     

10,474

     

10,358

     

10,216

     

10,093

 

At end of quarter

                                       

Total assets

                                       

Total assets

 

$

150,623

     

150,481

     

142,601

     

138,627

     

139,537

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(9)

     

(12)

     

(14)

     

(17)

     

(21)

 

Deferred taxes

   

2

     

3

     

4

     

4

     

5

 

Total tangible assets

 

$

146,023

     

145,879

     

137,998

     

134,021

     

134,928

 

Total common equity

                                       

Total equity

 

$

16,720

     

16,447

     

16,187

     

16,101

     

15,945

 

Preferred stock

   

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

     

(1,250)

 

Common equity

   

15,470

     

15,197

     

14,937

     

14,851

     

14,695

 

Goodwill

   

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

     

(4,593)

 

Core deposit and other intangible assets

   

(9)

     

(12)

     

(14)

     

(17)

     

(21)

 

Deferred taxes

   

2

     

3

     

4

     

4

     

5

 

Total tangible common equity

 

$

10,870

     

10,595

     

10,334

     

10,245

     

10,086

 
                                                 

(1)       After any related tax effect.

 

 

INVESTOR CONTACT:

Donald J. MacLeod

 

(716) 842-5138

   

MEDIA CONTACT:

Maya Dillon

 

(212) 415-0557

 

M&T Bank Corporation