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

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



65,376



65,043



65,080


     Printing, postage and supplies 


10,417



8,272



11,368



11,872



11,399


     Amortization of core deposit and other 
















        intangible assets 


13,865



14,085



15,907



16,774



17,162


     FDIC assessments 


23,398



23,801



24,962



28,949



27,826


     Other costs of operations 


192,572



183,875



186,093



170,959



305,588


          Total other expense 


626,146



616,027



627,392



639,695



739,583


















Income before income taxes 


445,440



446,428



352,241



308,417



202,902


















Applicable income taxes 


149,247



152,966



118,861



101,954



55,162


















Net income

$

296,193



293,462



233,380



206,463



147,740


















 

M&T BANK CORPORATION






Condensed Consolidated Balance Sheet


















December 31




Dollars in thousands



2012


2011


Change











ASSETS


















Cash and due from banks 


$

1,983,615


1,449,547


37

%










Interest-bearing deposits at banks 



129,945


154,960


-16











Federal funds sold and agreements









  to resell securities 



3,000


2,850


5











Trading account assets 



488,966


561,834


-13











Investment securities 



6,074,361


7,673,154


-21











Loans and leases:


















   Commercial, financial, etc 



17,776,953


15,734,436


13


   Real estate - commercial 



25,993,790


24,411,114


6


   Real estate - consumer 



11,240,837


7,923,165


42


   Consumer 



11,559,377


12,027,290


-4


     Total loans and leases, net of unearned discount 



66,570,957


60,096,005


11


        Less: allowance for credit losses 



925,860


908,290


2











  Net loans and leases 



65,645,097


59,187,715


11











Goodwill 



3,524,625


3,524,625


-











Core deposit and other intangible assets 



115,763


176,394


-34











Other assets 



5,043,431


5,193,208


-3











  Total assets 


$

83,008,803


77,924,287


7

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits 


$

24,240,802


20,017,883


21

%










Interest-bearing deposits 



40,325,932


39,020,839


3











Deposits at Cayman Islands office 



1,044,519


355,927


193











  Total deposits 



65,611,253


59,394,649


10











Short-term borrowings 



1,074,482


782,082


37











Accrued interest and other liabilities 



1,512,717


1,790,121


-15











Long-term borrowings



4,607,758


6,686,226


-31











  Total liabilities 



72,806,210


68,653,078


6


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