M&T Bank Corporation Announces 2012 Fourth Quarter And Full-Year Profits

Jan 16, 2013, 08:09 ET from M&T Bank Corporation

BUFFALO, N.Y., Jan. 16, 2013 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2012.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2012 rose 108% to $2.16 from $1.04 in the year-earlier quarter and were comparable to $2.17 in the third quarter of 2012.  GAAP-basis net income in the recent quarter totaled $296 million, up from $148 million and $293 million in the fourth quarter of 2011 and the third quarter of 2012, respectively.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was 1.45% and 12.10%, respectively, compared with .75% and 6.12%, respectively, in the year-earlier quarter and 1.45% and 12.40%, respectively, in the third quarter of 2012.

For the year ended December 31, 2012, diluted earnings per common share were $7.54, up 19% from $6.35 in 2011.  Net income rose to $1.03 billion in 2012 from $859 million in the previous year.  Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2012 was 1.29% and 10.96%, respectively, compared with 1.16% and 9.67%, respectively, in 2011.  

Commenting on M&T's performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "This was a year of tremendous accomplishment, in which M&T recorded record levels of net income and earnings per share.  Revenues were up in most major categories, led by exceptional growth in mortgage banking.  We continued to extend credit throughout the communities we serve, and as a result, loans rose an impressive $6.5 billion or 11% from the end of 2011, all while improving our capital base and expanding the services we offer our customers.  The fourth quarter was a continuation of those trends, positioning us well for continued success in 2013.  As we await shareholder and regulatory approvals for our proposed acquisition of Hudson City Bancorp, Inc., we are working diligently to prepare to welcome our new employees and customers to M&T."

While there were no unusual items included in M&T's results during the recent quarter, the fourth quarter of 2011 included several items of note:  a $79 million (pre-tax effect) other-than-temporary impairment charge related to M&T's 20% investment in Bayview Lending Group LLC ("BLG"); $55 million of income in full settlement of a lawsuit arising from a 2007 investment in collateralized debt obligations; and a $30 million tax-deductible cash contribution to The M&T Charitable Foundation.  The after-tax impact of those three items reduced the previous year's fourth quarter net income by $33 million, or $.26 of diluted earnings per common share.

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses and gains associated with merging acquired operations into M&T, since such amounts are considered by management to be "nonoperating" in nature.  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.  Reconciliations of GAAP to non-GAAP measures are provided in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $2.23 in the recent quarter, compared with $1.20 in the year-earlier period and $2.24 in the third quarter of 2012.  Net operating income for the fourth quarter of 2012 was $305 million, improved from $168 million in the year-earlier quarter and $302 million in the third quarter of 2012.  For the three months ended December 31, 2012, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.56% and 20.46%, respectively, compared with .89% and 12.36% in the corresponding 2011 period and 1.56% and 21.53%, respectively, in the third quarter of 2012.

Diluted net operating earnings per common share rose 20% to $7.88 in 2012 from $6.55 in 2011.  Net operating income for 2012 and 2011 totaled $1.07 billion and $884 million, respectively.  Net operating income in 2012 expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.40% and 19.42%, respectively, compared with 1.26% and 17.96%, respectively, in 2011.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income aggregated $674 million in the recent quarter, up from $669 million in the third quarter of 2012.  That improvement resulted from an increase in average earning assets, most notably a $1.6 billion rise in average loans and leases, partially offset by a 3 basis point narrowing of the net interest margin to 3.74% in the fourth quarter, compared with 3.77% in the immediately preceding quarter.  Taxable-equivalent net interest income in the recent quarter increased $49 million from $625 million in the fourth quarter of 2011 reflecting a $2.9 billion rise in average earning assets and a 14 basis point widening of the net interest margin.  For the year ended December 31, 2012, net interest income on a taxable-equivalent basis rose 9% to $2.62 billion from $2.42 billion in 2011 as a result of a 12%, or $6.5 billion, increase in average loans and leases.  Significantly, the net interest margin held steady at 3.73% in 2012 as compared with the prior year despite a challenging low interest rate environment.

Provision for Credit Losses/Asset Quality.  Credit quality remained strong. The provision for credit losses was $49 million during the fourth quarter of 2012, compared with $74 million in the year-earlier quarter and $46 million in the third quarter of 2012.  Net charge-offs of loans were $44 million in the recent quarter, representing an annualized .27% of average loans outstanding, compared with $74 million or .50% in the final quarter of 2011 and $42 million or .26% in 2012's third quarter.  The provision for credit losses declined 24% to $204 million for the year ended December 31, 2012 from $270 million in 2011.  Net loan charge-offs for the year totaled $186 million, or .30% of average loans outstanding, compared with $265 million, or .47% of average loans in 2011.

Loans classified as nonaccrual totaled $1.01 billion, or 1.52% of total loans at December 31, 2012, compared with $1.10 billion or 1.83% a year earlier and $925 million or 1.44% at September 30, 2012.  The increase in nonaccrual loans from September 30, 2012 resulted largely from the addition of $64 million of loans to a single borrower that are fully secured by residential real estate.

Assets taken in foreclosure of defaulted loans were $104 million at December 31, 2012, down from $157 million and $112 million at December 31, 2011 and September 30, 2012, respectively. 

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses.  Reflecting those analyses, the allowance for credit losses was $926 million at December 31, 2012, compared with $908 million a year earlier and $921 million at September 30, 2012.  The allowance expressed as a percentage of outstanding loans was 1.39% at the recent quarter-end, compared with 1.51% at December 31, 2011 and 1.44% at September 30, 2012. 

Noninterest Income and Expense.  Noninterest income totaled $453 million in the recently completed quarter, compared with $398 million and $446 million in the final quarter of 2011 and the third quarter of 2012, respectively.  Reflected in those amounts were net losses from investment securities of $14 million, $25 million and $5 million, each predominantly due to other-than-temporary impairment charges.  Also included in noninterest income in the fourth quarter of 2011 was the $55 million favorable litigation settlement related to M&T's 2007 investment in certain collateralized debt obligations, as previously noted. 

Excluding the specific items referred to in the preceding paragraph, noninterest income was $468 million in the recent quarter, increasing from $368 million in the year-earlier quarter and $451 million in the third quarter of 2012.  The rise in noninterest income in the recent quarter as compared with those earlier quarters was predominantly due to higher mortgage banking revenues. 

Noninterest income aggregated $1.67 billion and $1.58 billion during the years ended December 31, 2012 and 2011, respectively. The most significant contributors to the rise in noninterest income in 2012 as compared with 2011 were higher mortgage banking revenues and trust income, the latter reflecting the full-year impact of the acquisition of Wilmington Trust Corporation ("Wilmington Trust").  Partially offsetting those factors were net gains from investment securities, the previously noted litigation settlement and merger-related gains, all reflected in M&T's 2011 results. 

Noninterest expense in the fourth quarter of 2012 totaled $626 million, compared with $740 million in the year-earlier quarter and $616 million in 2012's third quarter.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $612 million in the recent quarter, compared with $706 million and $602 million in the fourth quarter of 2011 and the third quarter of 2012, respectively.  Reflected in noninterest expense in the fourth quarter of 2011 was the aforementioned $79 million impairment charge related to BLG and the $30 million charitable contribution.

For the year ended December 31, 2012, noninterest expense aggregated $2.51 billion, compared with $2.48 billion in the previous year.  Excluding those previously noted expenses considered to be nonoperating in nature, noninterest operating expenses were $2.44 billion in 2012 and $2.33 billion in 2011.  That increase was largely attributable to the full-year impact of the operations obtained in the Wilmington Trust acquisition.

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 and merger-related gains), measures the relationship of operating expenses to revenues.  As a result of revenue growth that has outpaced increases in operating expenses, M&T's efficiency ratio improved to 53.6% in the recent quarter from 67.4% in the year-earlier quarter and 53.7% in the third quarter of 2012.  The efficiency ratio for the year ended December 31, 2012 was 56.2%, also improved, from 60.4% in 2011.  The improved efficiency ratio reflects the significant progress made in the integration of the operations obtained in the May 2011 acquisition of Wilmington Trust.   

Balance Sheet.  M&T had total assets of $83.0 billion at December 31, 2012, up from $77.9 billion a year earlier.  Loans and leases, net of unearned discount, totaled $66.6 billion at the 2012 year-end, $6.5 billion or 11% higher than $60.1 billion at December 31, 2011.  The pace of growth in outstanding loans and leases during 2012's final quarter remained robust, increasing $2.5 billion, or 4%, from $64.1 billion at September 30, 2012.  That growth reflects increases in commercial loans, commercial real estate loans and residential real estate loans.  Total deposits were $65.6 billion at December 31, 2012, $6.2 billion or 10% higher than $59.4 billion a year earlier and $1.6 billion or 3% above $64.0 billion at September 30, 2012. 

Total shareholders' equity rose 10% to $10.2 billion at December 31, 2012 from $9.3 billion a year earlier, representing 12.29% and 11.90% respectively, of total assets.  Common shareholders' equity was $9.3 billion, or $72.73 per share at December 31, 2012, compared with $8.4 billion, or $66.82 per share, a year earlier.  Tangible equity per common share rose 18% to $44.61 at December 31, 2012 from $37.79 a year earlier.  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's tangible common equity to tangible assets ratio was 7.20% at December 31, 2012, compared with 6.40% and 7.04% at December 31, 2011 and September 30, 2012, respectively. M&T's estimated Tier 1 common ratio was 7.57% at December 31, 2012, compared with 6.86% and 7.46% at December 31, 2011 and September 30, 2012, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full-year financial results today at 10:30 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 #86834125.  The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will  be available until January 19, 2013 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #86834125.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.

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, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia.  Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

Forward-Looking Statements.  This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management.  These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements.  In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

INVESTOR CONTACT:

Donald J. MacLeod

(716) 842-5138

MEDIA CONTACT:

C. Michael Zabel

(716) 842-5385

 

M&T BANK CORPORATION

Financial Highlights

Three months ended

Year ended

Amounts in thousands,

December 31

December 31

 except per share

2012

2011

Change

2012

2011

Change

Performance

Net income

$

296,193

147,740

100

%

$

1,029,498

859,479

20

%

Net income available to common shareholders

276,605

129,804

113

953,429

781,765

22

Per common share:

  Basic earnings 

$

2.18

1.04

110

%

$

7.57

6.37

19

%

  Diluted earnings 

2.16

1.04

108

7.54

6.35

19

  Cash dividends 

$

.70

.70

-

$

2.80

2.80

-

Common shares outstanding:

  Average - diluted (1) 

127,800

124,736

2

%

126,405

123,079

3

%

  Period end (2) 

128,234

125,752

2

128,234

125,752

2

Return on (annualized):

  Average total assets 

1.45

%

.75

%

1.29

%

1.16

%

  Average common shareholders' equity 

12.10

%

6.12

%

10.96

%

9.67

%

Taxable-equivalent net interest income 

$

673,929

624,566

8

%

$

2,624,907

2,415,632

9

%

Yield on average earning assets 

4.17

%

4.17

%

4.22

%

4.35

%

Cost of interest-bearing liabilities 

.67

%

.82

%

.74

%

.87

%

Net interest spread 

3.50

%

3.35

%

3.48

%

3.48

%

Contribution of interest-free funds 

.24

%

.25

%

.25

%

.25

%

Net interest margin 

3.74

%

3.60

%

3.73

%

3.73

%

Net charge-offs to average total 

  net loans (annualized) 

.27

%

.50

%

.30

%

.47

%

Net operating results (3)

Net operating income 

$

304,657

168,410

81

%

$

1,072,510

884,253

21

%

Diluted net operating earnings per common share 

2.23

1.20

86

7.88

6.55

20

Return on (annualized):

  Average tangible assets 

1.56

%

.89

%

1.40

%

1.26

%

  Average tangible common equity 

20.46

%

12.36

%

19.42

%

17.96

%

Efficiency ratio 

53.63

%

67.38

%

56.19

%

60.43

%

At December 31

Loan quality

2012

2011

Change

Nonaccrual loans 

$

1,013,176

1,097,581

-8

%

Real estate and other foreclosed assets 

104,279

156,592

-33

%

  Total nonperforming assets 

$

1,117,455

1,254,173

-11

%

Accruing loans past due 90 days or more (4) 

$

358,397

287,876

24

%

Government guaranteed loans included in totals

  above:

  Nonaccrual loans 

$

57,420

40,529

42

%

  Accruing loans past due 90 days or more 

316,403

252,503

25

%

Renegotiated loans 

$

271,971

214,379

27

%

Acquired accruing loans past due 90 days or more (5) 

$

166,554

163,738

2

%

Purchased impaired loans (6):

  Outstanding customer balance 

$

828,571

1,267,762

-35

%

  Carrying amount 

447,114

653,362

-32

%

Nonaccrual loans to total net loans 

1.52

%

1.83

%

Allowance for credit losses to total loans 

1.39

%

1.51

%

(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 gains and expenses which, except in

          the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)  Excludes acquired loans. 

(5)  Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6)  Accruing loans that were impaired at acquisition date and recorded at fair value.

 

M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

Three months ended

Amounts in thousands,

December 31,

September 30,

June 30,

March 31,

December 31,

 except per share

2012

2012

2012

2012

2011

Performance

Net income

$

296,193

293,462

233,380

206,463

147,740

Net income available to common shareholders 

276,605

273,896

214,716

188,241

129,804

Per common share:

  Basic earnings 

$

2.18

2.18

1.71

1.50

1.04

  Diluted earnings 

2.16

2.17

1.71

1.50

1.04

  Cash dividends 

$

.70

.70

.70

.70

.70

Common shares outstanding:

  Average - diluted (1) 

127,800

126,292

125,897

125,616

124,736

  Period end (2) 

128,234

127,461

126,645

126,534

125,752

Return on (annualized):

  Average total assets 

1.45

%

1.45

%

1.17

%

1.06

%

.75

%

  Average common shareholders' equity 

12.10

%

12.40

%

10.12

%

9.04

%

6.12

%

Taxable-equivalent net interest income 

$

673,929

669,256

654,628

627,094

624,566

Yield on average earning assets 

4.17

%

4.23

%

4.25

%

4.24

%

4.17

%

Cost of interest-bearing liabilities 

.67

%

.71

%

.76

%

.80

%

.82

%

Net interest spread 

3.50

%

3.52

%

3.49

%

3.44

%

3.35

%

Contribution of interest-free funds 

.24

%

.25

%

.25

%

.25

%

.25

%

Net interest margin  

3.74

%

3.77

%

3.74

%

3.69

%

3.60

%

Net charge-offs to average total 

  net loans (annualized) 

.27

%

.26

%

.34

%

.32

%

.50

%

Net operating results (3)

Net operating income  

$

304,657

302,060

247,433

218,360

168,410

Diluted net operating earnings per common share 

2.23

2.24

1.82

1.59

1.20

Return on (annualized):

  Average tangible assets 

1.56

%

1.56

%

1.30

%

1.18

%

.89

%

  Average tangible common equity 

20.46

%

21.53

%

18.54

%

16.79

%

12.36

%

Efficiency ratio 

53.63

%

53.73

%

56.86

%

61.09

%

67.38

%

December 31,

September 30,

June 30,

March 31,

December 31,

Loan quality

2012

2012

2012

2012

2011

Nonaccrual loans 

$

1,013,176

925,231

968,328

1,065,229

1,097,581

Real estate and other foreclosed assets 

104,279

112,160

115,580

140,297

156,592

  Total nonperforming assets 

$

1,117,455

1,037,391

1,083,908

1,205,526

1,254,173

Accruing loans past due 90 days or more (4)

$

358,397

309,420

274,598

273,081

287,876

Government guaranteed loans included in totals

  above:

  Nonaccrual loans 

$

57,420

54,583

48,712

44,717

40,529

  Accruing loans past due 90 days or more 

316,403

280,410

255,495

252,622

252,503

Renegotiated loans 

$

271,971

266,526

267,111

213,024

214,379

Acquired accruing loans past due 90 days or more (5) 

$

166,554

161,424

162,487

165,163

163,738

Purchased impaired loans (6):

  Outstanding customer balance 

$

828,571

978,731

1,037,458

1,158,829

1,267,762

  Carrying amount 

447,114

528,001

560,700

604,779

653,362

Nonaccrual loans to total net loans 

1.52

%

1.44

%

1.54

%

1.75

%

1.83

%

Allowance for credit losses to total loans 

1.39

%

1.44

%

1.46

%

1.49

%

1.51

%

(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 gains and expenses which, except

          in the calculation of the efficiency ratio, are net of applicable income tax effects.  Reconciliations of net income with net operating income appear herein.

(4)  Excludes acquired loans. 

(5)  Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6)  Accruing loans that were impaired at acquisition date and recorded at fair value.

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

Three months ended

Year ended

December 31

December 31

Dollars in thousands

2012

2011

Change

2012

2011

Change

Interest income 

$

745,353

716,000

4

%

$

2,941,685

2,792,087

5

%

Interest expense 

77,931

97,969

-20

343,169

402,331

-15

Net interest income 

667,422

618,031

8

2,598,516

2,389,756

9

Provision for credit losses 

49,000

74,000

-34

204,000

270,000

-24

Net interest income after

   provision for credit losses 

618,422

544,031

14

2,394,516

2,119,756

13

Other income

     Mortgage banking revenues 

116,546

40,573

187

349,064

166,021

110

     Service charges on deposit accounts 

112,364

104,071

8

446,698

455,095

-2

     Trust income 

116,915

113,820

3

471,852

332,385

42

     Brokerage services income 

14,872

13,341

11

59,059

56,470

5

     Trading account and foreign exchange gains 

10,356

7,971

30

35,634

27,224

31

     Gain on bank investment securities 

-

1

-

9

150,187

-

     Other-than-temporary impairment losses 

        recognized in earnings 

(14,491)

(24,822)

-

(47,822)

(77,035)

-

     Equity in earnings of Bayview Lending Group LLC 

(4,941)

(5,419)

-

(21,511)

(24,231)

-

     Other revenues from operations 

101,543

148,918

-32

374,287

496,796

-25

          Total other income 

453,164

398,454

14

1,667,270

1,582,912

5

Other expense

     Salaries and employee benefits 

323,010

312,528

3

1,314,540

1,203,993

9

     Equipment and net occupancy 

62,884

65,080

-3

257,551

249,514

3

     Printing, postage and supplies 

10,417

11,399

-9

41,929

40,917

2

     Amortization of core deposit and other 

        intangible assets 

13,865

17,162

-19

60,631

61,617

-2

     FDIC assessments 

23,398

27,826

-16

101,110

100,230

1

     Other costs of operations 

192,572

305,588

-37

733,499

821,797

-11

          Total other expense 

626,146

739,583

-15

2,509,260

2,478,068

1

Income before income taxes 

445,440

202,902

120

1,552,526

1,224,600

27

Applicable income taxes 

149,247

55,162

171

523,028

365,121

43

Net income 

$

296,193

147,740

100

%

$

1,029,498

859,479

20

%

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

Dollars in thousands

2012

2012

2012

2012

2011

Interest income 

$

745,353

744,851

737,386

714,095

716,000

Interest expense 

77,931

82,129

89,403

93,706

97,969

Net interest income 

667,422

662,722

647,983

620,389

618,031

Provision for credit losses 

49,000

46,000

60,000

49,000

74,000

Net interest income after

   provision for credit losses

618,422

616,722

587,983

571,389

544,031

Other income

     Mortgage banking revenues 

116,546

106,812

69,514

56,192

40,573

     Service charges on deposit accounts 

112,364

114,463

110,982

108,889

104,071

     Trust income  

116,915

115,709

122,275

116,953

113,820

     Brokerage services income 

14,872

14,114

16,172

13,901

13,341

     Trading account and foreign exchange gains 

10,356

8,469

6,238

10,571

7,971

     Gain (loss) on bank investment securities 

-

372

(408)

45

1

     Other-than-temporary impairment losses 

        recognized in earnings 

(14,491)

(5,672)

(16,173)

(11,486)

(24,822)

     Equity in earnings of Bayview Lending Group LLC 

(4,941)

(5,183)

(6,635)

(4,752)

(5,419)

     Other revenues from operations 

101,543

96,649

89,685

86,410

148,918

          Total other income 

453,164

445,733

391,650

376,723

398,454

Other expense

     Salaries and employee benefits 

323,010

321,746

323,686

346,098

312,528

     Equipment and net occupancy 

62,884

64,248