M&T Bank Corporation Announces 2015 Fourth Quarter And Full-Year Profits

Jan 19, 2016, 06:39 ET from M&T Bank Corporation

BUFFALO, N.Y., Jan. 19, 2016 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2015.

GAAP Results of Operations.  Reflecting the impact of merger-related expenses associated with its recent acquisition, M&T's diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2015 were $1.65, compared with $1.92 in the year-earlier quarter and $1.93 in the third quarter of 2015.  GAAP-basis net income in the recent quarter was $271 million, compared with $278 million in the final quarter of 2014 and $280 million in 2015's third quarter.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was .93% and 7.22%, respectively, compared with 1.12% and 9.10%, respectively, in the year-earlier quarter and 1.13% and 8.93%, respectively, in the third quarter of 2015.

Commenting on M&T's performance in 2015, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "M&T posted strong financial performance in the fourth quarter, reflecting our recent merger, growth in revenues, controlled expenses and continued solid credit quality, resulting in a 7% increase in diluted net operating earnings per common share from the year-earlier quarter.  We are pleased with all that was accomplished in the quarter.  On November 1, we welcomed our Hudson City colleagues and valued customers into the M&T family.  The full integration of Hudson City's operations will be completed in February after the conversion of the deposit system and branch network.  The merger with Hudson City brings exceptional opportunities for M&T, and we are excited to offer our broad array of products and services to both existing and new customers.  While financial results for the fourth quarter reflect only two months of the operations associated with Hudson City, the acquisition has already had a positive impact on M&T's operating results and capital position, contributing to a 13% rise in tangible book value per share from the 2014 year end."

M&T's fourth quarter results reflect its acquisition of Hudson City Bancorp, Inc. ("Hudson City"), effective November 1, 2015, including the payment of cash consideration of $2.1 billion and the issuance of 25,953,950 common shares.  Results of the operations acquired from Hudson City have been reflected in M&T's results since the acquisition date.  Assets acquired in the transaction totaled approximately $34.6 billion, including $19.0 billion of loans and $7.9 billion of investment securities, while liabilities assumed were $31.5 billion, including $17.9 billion of deposits and $13.2 billion of borrowings.  In early November, M&T restructured its balance sheet by selling $5.8 billion of investment securities obtained in the acquisition and repaying $10.6 billion of borrowings assumed in the transaction.  Merger-related expenses incurred during the final 2015 quarter aggregated $61 million after-tax effect, or $.40 of diluted earnings per common share.

For the full year of 2015, diluted earnings per common share were $7.18, compared with $7.42 for 2014.  Net income totaled $1.08 billion in 2015, up from $1.07 billion in 2014.  Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2015 was 1.06% and 8.32%, respectively, compared with 1.16% and 9.08%, respectively, in 2014. 

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 gains and expenses associated with merging acquired operations into M&T, 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.  Reflected in merger-related expenses in the fourth quarter of 2015 was a provision for credit losses of $21 million.  GAAP requires that acquired loans be recorded at estimated fair value, which includes the use of interest rate and credit loss assumptions to project estimated cash flows.  GAAP also provides that an allowance for credit losses associated with probable incurred losses on loans acquired at a premium also be recognized.  Accordingly, M&T recorded a $21 million provision related to such loans obtained in the Hudson City acquisition.  Given the requirement to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that provision to be a merger-related expense.  Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results. 

Diluted net operating earnings per common share were $2.09 in the fourth quarter of 2015, improved from $1.95 in each of the year-earlier period and the third quarter of 2015.  Net operating income for 2015's final quarter rose to $338 million, up 20% and 19% from $282 million and $283 million in the fourth quarter of 2014 and the third quarter of 2015, respectively.  For the quarter ended December 31, 2015, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.21% and 13.26%, respectively, compared with 1.18% and 13.55%, respectively, in the similar 2014 period and 1.18% and 12.98%, respectively, in the third quarter of 2015.

For the year ended December 31, 2015, diluted net operating earnings per common share were $7.74, up 2% from $7.57 in 2014.  Net operating income in 2015 rose 6% to $1.16 billion from $1.09 billion in 2014.  Net operating income in 2015 expressed as a  rate of return on average tangible assets and average tangible common shareholders' equity was 1.18% and 13.00%, respectively, compared with 1.23% and 13.76%, respectively, in 2014.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $813 million in the fourth quarter of 2015, up 18% from $688 million earned in the year-earlier period and 16% higher than $699 million recorded in the third quarter of 2015.  The growth in such income in the recent quarter resulted from higher earning assets.  Average earning assets rose to $103.6 billion in the recent quarter, 18% above $88.0 billion in the fourth quarter of 2014 and 17% higher than $88.4 billion in 2015's third quarter.  Those increases were predominantly the result of the Hudson City acquisition that added approximately $14.6 billion to average earning assets in the recent quarter.  Also reflective of the Hudson City acquisition, the net interest margin was 3.12% in 2015's fourth quarter, compared with 3.10% in the final quarter of 2014 and 3.14% in the third quarter of 2015.  Net interest income on a taxable-equivalent basis totaled $2.87 billion for the full-year 2015, 6% higher than $2.70 billion in 2014.  That improvement resulted from a $9.5 billion increase in average earning assets, partially offset by a narrowing of the net interest margin to 3.14% in 2015 from 3.31% in 2014.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $58 million during the fourth quarter of 2015, compared with $33 million in the year-earlier quarter and $44 million in the third quarter of 2015.  Net charge-offs of loans were $36 million during the recent quarter, compared with $32 million in the final quarter of 2014 and $40 million in the third quarter of 2015.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .18% and .19% in the fourth quarter of 2015 and 2014, respectively, and .24% in 2015's third quarter.  The provision for credit losses was $170 million for the year ended December 31, 2015, compared with $124 million in 2014.  Net loan charge-offs during 2015 and 2014 totaled $134 million and $121 million, respectively, or .19% of average loans outstanding in each of those years.  As already noted, a $21 million provision was recorded in the fourth quarter of 2015, in accordance with GAAP, related to loans obtained in the Hudson City acquisition that had a fair value in excess of outstanding principal.  GAAP provides that an allowance for credit losses on such loans be recorded beyond the recognition of the fair value of the loans at the acquisition date. 

Loans classified as nonaccrual were $799 million, or .91% of total loans outstanding at December 31, 2015, compared with $799 million or 1.20% a year earlier and $787 million or 1.15% at September 30, 2015.  Assets taken in foreclosure of defaulted loans were $195 million at the end of 2015, compared with $64 million and $66 million at December 31, 2014 and September 30, 2015, respectively.  The higher level of such assets at the 2015 year-end resulted from residential real estate properties obtained in the Hudson City acquisition. 

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 $956 million at December 31, 2015, compared with $920 million a year earlier and $934 million at September 30, 2015.  The allowance expressed as a percentage of outstanding loans was 1.09% at the end of 2015, compared with 1.38% at December 31, 2014 and 1.36% at September 30, 2015.  The decline in that ratio from September 30, 2015 and December 31, 2014 reflects the impact of residential mortgage loans obtained in the Hudson City acquisition. 

Noninterest Income and Expense.  Noninterest income totaled $448 million in the recently completed quarter, compared with $452 million in the fourth quarter of 2014 and $440 million in the third quarter of 2015.  The modest decline as compared with the final 2014 quarter resulted from lower trust income and residential mortgage banking revenues associated with loan servicing activities, partially offset by higher credit-related fees.  The decline in trust income was predominantly the result of the second quarter 2015 sale of M&T's trade processing business within its retirement services division.  Contributing to the recent quarter's increase in noninterest income as compared with the immediately preceding quarter were higher commercial mortgage banking revenues and credit-related fees.    

Noninterest income aggregated $1.83 billion and $1.78 billion during the years ended December 31, 2015 and 2014, respectively.  Reflected in that improvement were higher commercial mortgage banking revenues and a $45 million gain from the sale of M&T's trade processing business that was partially offset by lower trust income associated with that divested business.

Noninterest expense in the final quarter of 2015 totaled $786 million, compared with $666 million in the year-earlier quarter and $654 million in the third quarter of 2015.  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 $701 million in  the fourth quarter of 2015, compared with $659 million in the year-earlier quarter and $650 million in the third quarter of 2015.  The most significant factor for the higher level of operating expenses in the recent quarter was the impact of the operations obtained in the Hudson City acquisition. 

For the year ended December 31, 2015, noninterest expenses totaled $2.82 billion, compared with $2.69 billion in the previous year.  Noninterest operating expenses were $2.72 billion in 2015 and $2.66 billion in 2014.  That increase reflects noninterest operating expenses associated with Hudson City.

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 55.5% in the recent quarter, compared with 57.8% in the year-earlier quarter and 57.1% in the third quarter of 2015.  The efficiency ratio for the full year 2015 was 58.0%, compared with 59.3% in 2014.  

Balance Sheet.  M&T had total assets of $122.8 billion at December 31, 2015, up 27% from $96.7 billion a year earlier.  Investment securities were $15.7 billion at the recent year-end, up $2.7 billion or 20% from December 31, 2014.  Loans and leases, net of unearned discount, rose 31% to $87.5 billion at the 2015 year-end from $66.7 billion at December 31, 2014.     

Total deposits were $92.0 billion at the recent year-end, up 25% or $18.4 billion from $73.6 billion at December 31, 2014. 

Total shareholders' equity rose $3.8 billion or 31% to $16.2 billion at December 31, 2015 from $12.3 billion a year earlier, representing 13.17% and 12.76%, respectively, of total assets.  Common shareholders' equity was $14.9 billion, or $93.60 per share, at December 31, 2015, compared with $11.1 billion, or $83.88 per share, at December 31, 2014.  Tangible equity per common share rose 13% to $64.28 at December 31, 2015 from $57.06 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $87.67 and $61.22, respectively, at September 30, 2015.  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 the transitional capital rules that became effective for M&T on January 1, 2015 was approximately 11.06% at the 2015 year-end. 

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 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 #25536663.  The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available through January 22, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #25536663.  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, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia.  Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

Forward-Looking Statements. This news release 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 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.

 

 

M&T BANK CORPORATION

Financial Highlights

Three months ended

Year ended

Amounts in thousands,

December 31

December 31

 except per share

2015

2014

Change

2015

2014

Change

Performance

Net income

$

270,965

277,549

-2

%

$

1,079,667

1,066,246

1

%

Net income available to common shareholders

248,059

254,239

-2

%

987,724

978,581

1

%

Per common share:

  Basic earnings

$

1.65

1.93

-15

%

$

7.22

7.47

-3

%

  Diluted earnings

1.65

1.92

-14

%

7.18

7.42

-3

%

  Cash dividends

$

.70

.70

-

$

2.80

2.80

-

Common shares outstanding:

  Average - diluted (1)

150,718

132,278

14

%

137,533

131,844

4

%

  Period end (2)

159,600

132,354

21

%

159,600

132,354

21

%

Return on (annualized):

  Average total assets 

.93

%

1.12

%

1.06

%

1.16

%

  Average common shareholders' equity

7.22

%

9.10

%

8.32

%

9.08

%

Taxable-equivalent net interest income

$

813,401

687,847

18

%

$

2,867,050

2,700,088

6

%

Yield on average earning assets

3.48

%

3.44

%

3.50

%

3.65

%

Cost of interest-bearing liabilities

.54

%

.52

%

.55

%

.53

%

Net interest spread

2.94

%

2.92

%

2.95

%

3.12

%

Contribution of interest-free funds

.18

%

.18

%

.19

%

.19

%

Net interest margin

3.12

%

3.10

%

3.14

%

3.31

%

Net charge-offs to average total 

  net loans (annualized)

.18

%

.19

%

.19

%

.19

%

Net operating results (3)

Net operating income

$

337,613

281,929

20

%

$

1,156,637

1,086,903

6

%

Diluted net operating earnings per common share

2.09

1.95

7

%

7.74

7.57

2

%

Return on (annualized):

  Average tangible assets

1.21

%

1.18

%

1.18

%

1.23

%

  Average tangible common equity

13.26

%

13.55

%

13.00

%

13.76

%

Efficiency ratio

55.53

%

57.84

%

57.98

%

59.29

%

 

At December 31

Loan quality

2015

2014

Change

Nonaccrual loans

$

799,409

799,151

-

Real estate and other foreclosed assets

195,085

63,635

207

%

  Total nonperforming assets

$

994,494

862,786

15

%

Accruing loans past due 90 days or more (4)

$

273,086

245,020

11

%

Government guaranteed loans included in totals

  above:

  Nonaccrual loans

$

47,052

69,095

-32

%

  Accruing loans past due 90 days or more

231,930

217,822

6

%

Renegotiated loans

$

182,865

202,633

-10

%

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

$

68,473

110,367

-38

%

Purchased impaired loans (6):

  Outstanding customer balance

$

1,218,711

369,080

230

%

  Carrying amount

783,036

197,737

296

%

Nonaccrual loans to total net loans

.91

%

1.20

%

Allowance for credit losses to total loans

1.09

%

1.38

%

(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)  Excludes loans acquired at a discount. 

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

(6)  Accruing loans acquired at a discount 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

2015

2015

2015

2015

2014

Performance

Net income

$

270,965

280,401

286,688

241,613

277,549

Net income available to common shareholders

248,059

257,346

263,481

218,837

254,239

Per common share:

  Basic earnings

$

1.65

1.94

1.99

1.66

1.93

  Diluted earnings

1.65

1.93

1.98

1.65

1.92

  Cash dividends

$

.70

.70

.70

.70

.70

Common shares outstanding:

  Average - diluted (1)

150,718

133,376

133,116

132,769

132,278

  Period end (2)

159,600

133,311

133,099

132,946

132,354

Return on (annualized):

  Average total assets 

.93

%

1.13

%

1.18

%

1.02

%

1.12

%

  Average common shareholders' equity

7.22

%

8.93

%

9.37

%

7.99

%

9.10

%

Taxable-equivalent net interest income

$

813,401

699,075

689,148

665,426

687,847

Yield on average earning assets

3.48

%

3.48

%

3.52

%

3.54

%

3.44

%

Cost of interest-bearing liabilities

.54

%

.55

%

.55

%

.57

%

.52

%

Net interest spread

2.94

%

2.93

%

2.97

%

2.97

%

2.92

%

Contribution of interest-free funds

.18

%

.21

%

.20

%

.20

%

.18

%

Net interest margin 

3.12

%

3.14

%

3.17

%

3.17

%

3.10

%

Net charge-offs to average total 

  net loans (annualized)

.18

%

.24

%

.13

%

.22

%

.19

%

Net operating results (3)

Net operating income

$

337,613

282,907

290,341

245,776

281,929

Diluted net operating earnings per common share

2.09

1.95

2.01

1.68

1.95

Return on (annualized):

  Average tangible assets

1.21

%

1.18

%

1.24

%

1.08

%

1.18

%

  Average tangible common equity

13.26

%

12.98

%

13.76

%

11.90

%

13.55

%

Efficiency ratio

55.53

%

57.05

%

58.23

%

61.46

%

57.84

%

December 31,

September 30,

June 30,

March 31,

December 31,

Loan quality

2015

2015

2015

2015

2014

Nonaccrual loans

$

799,409

787,098

797,146

790,586

799,151

Real estate and other foreclosed assets

195,085

66,144

63,734

62,578

63,635

  Total nonperforming assets

$

994,494

853,242

860,880

853,164

862,786

Accruing loans past due 90 days or more (4)

$

273,086

231,465

238,568

236,621

245,020

Government guaranteed loans included in totals

  above:

  Nonaccrual loans

$

47,052

48,955

58,259

60,508

69,095

  Accruing loans past due 90 days or more

231,930

193,998

206,775

193,618

217,822

Renegotiated loans

$

182,865

189,639

197,145

198,911

202,633

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

$

68,473

80,827

78,591

80,110

110,367

Purchased impaired loans (6):

  Outstanding customer balance

$

1,218,711

278,979

312,507

335,079

369,080

  Carrying amount

783,036

149,421

169,240

184,018

197,737

Nonaccrual loans to total net loans

.91

%

1.15

%

1.17

%

1.18

%

1.20

%

Allowance for credit losses to total loans

1.09

%

1.36

%

1.36

%

1.37

%

1.38

%

(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)  Excludes loans acquired at a discount. 

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

(6)  Accruing loans acquired at a discount 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

2015

2014

Change

2015

2014

Change

Interest income

$

902,377

756,612

19

%

$

3,170,844

2,956,877

7

%

Interest expense

95,333

74,772

27

328,257

280,431

17

Net interest income

807,044

681,840

18

2,842,587

2,676,446

6

Provision for credit losses

58,000

33,000

76

170,000

124,000

37

Net interest income after

   provision for credit losses

749,044

648,840

15

2,672,587

2,552,446

5

Other income

     Mortgage banking revenues

87,500

93,675

-7

375,738

362,912

4

     Service charges on deposit accounts

105,748

106,319

-1

420,608

427,956

-2

     Trust income

114,564

128,442

-11

470,640

508,258

-7

     Brokerage services income

15,546

15,809

-2

64,770

67,212

-4

     Trading account and foreign exchange gains

9,938

8,397

18

30,577

29,874

2

     Loss on bank investment securities

(22)

-

-

(130)

-

-

     Equity in earnings of Bayview Lending Group LLC

(3,224)

(4,049)

-

(14,267)

(16,672)

-

     Other revenues from operations

118,058

103,050

15

477,101

399,733

19

          Total other income

448,108

451,643

-1

1,825,037

1,779,273

3

Other expense

     Salaries and employee benefits

434,413

345,135

26

1,549,530

1,404,950

10

     Equipment and net occupancy

70,747

62,335

13

272,539

269,299

1

     Printing, postage and supplies

10,905

8,881

23

38,491

38,201

1

     Amortization of core deposit and other 

        intangible assets

9,576

7,170

34

26,424

33,824

-22

     FDIC assessments

19,562

11,695

67

52,113

55,531

-6

     Other costs of operations

240,910

231,005

4

883,835

887,669

-

          Total other expense

786,113

666,221

18

2,822,932

2,689,474

5

Income before income taxes

411,039

434,262

-5

1,674,692

1,642,245

2

Applicable income taxes

140,074

156,713

-11

595,025

575,999

3

Net income

$

270,965

277,549

-2

%

$

1,079,667

1,066,246

1

%

 

 

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

2015

2015

2015

2015

2014

Interest income

$

902,377

770,026

760,354

738,087

756,612

Interest expense

95,333

77,199

77,226

78,499

74,772

Net interest income

807,044

692,827

683,128

659,588

681,840

Provision for credit losses

58,000

44,000

30,000

38,000

33,000

Net interest income after

   provision for credit losses

749,044

648,827

653,128

621,588

648,840

Other income

     Mortgage banking revenues

87,500

84,035

102,602

101,601

93,675

     Service charges on deposit accounts

105,748

107,259

105,257

102,344

106,319

     Trust income

114,564

113,744

118,598

123,734

128,442

     Brokerage services income

15,546

16,902

16,861

15,461

15,809

     Trading account and foreign exchange gains

9,938

8,362

6,046

6,231

8,397

     Loss on bank investment securities

(22)

-

(10)

(98)

-

     Equity in earnings of Bayview Lending Group LLC

(3,224)

(3,721)

(3,131)

(4,191)

(4,049)

     Other revenues from operations

118,058

113,118

150,804

95,121

103,050

          Total other income

448,108

439,699

497,027

440,203

451,643

Other expense

     Salaries and employee benefits

434,413

363,567

361,657

389,893

345,135

     Equipment and net occupancy

70,747

68,470

66,852

66,470

62,335

     Printing, postage and supplies

10,905

8,691

9,305

9,590

8,881

     Amortization of core deposit and other 

        intangible assets

9,576

4,090

5,965

6,793

7,170

     FDIC assessments

19,562

11,090

10,801

10,660

11,695

     Other costs of operations

240,910

197,908

242,048

202,969

231,005

          Total other expense

786,113

653,816

696,628

686,375

666,221

Income before income taxes

411,039

434,710

453,527

375,416

434,262

Applicable income taxes

140,074

154,309

166,839

133,803

156,713

Net income

$

270,965

280,401

286,688

241,613

277,549

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

December 31

Dollars in thousands

2015

2014

Change

ASSETS

Cash and due from banks

$

1,368,040

1,289,965

6

%

Interest-bearing deposits at banks

7,594,350

6,470,867

17

Federal funds sold

-

83,392

-100

Trading account assets

273,783

308,175

-11

Investment securities

15,656,439

12,993,542

20

Loans and leases:

   Commercial, financial, etc.

20,422,338

19,461,292

5

   Real estate - commercial

29,197,311

27,567,569

6

   Real estate - consumer

26,270,103

8,657,301

203

   Consumer

11,599,747

10,982,794

6

     Total loans and leases, net of unearned discount

87,489,499

66,668,956

31

        Less: allowance for credit losses

955,992

919,562

4

  Net loans and leases

86,533,507

65,749,394

32

Goodwill

4,593,112

3,524,625

30

Core deposit and other intangible assets

140,268

35,027

300

Other assets

6,628,385

6,230,548

6

  Total assets

$

122,787,884

96,685,535

27

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$

29,110,635

26,947,880

8

%

Interest-bearing deposits

62,677,036

46,457,591

35

Deposits at Cayman Islands office

170,170

176,582

-4

  Total deposits

91,957,841

73,582,053

25

Short-term borrowings

2,132,182

192,676

1007

Accrued interest and other liabilities

1,870,714

1,567,951

19

Long-term borrowings

10,653,858

9,006,959

18

  Total liabilities

106,614,595

84,349,639

26

Shareholders' equity:

   Preferred

1,231,500

1,231,500

-

   Common (1)

14,941,789

11,104,396

35

     Total shareholders' equity

16,173,289

12,335,896

31

  Total liabilities and shareholders' equity

$

122,787,884

96,685,535

27

%

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $251.6 million

       at December 31, 2015 and $181.0 million at December 31, 2014.

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

December 31,

September 30,

June 30,

March 31,

December 31,

Dollars in thousands

2015

2015

2015

2015

2014

ASSETS

Cash and due from banks

$

1,368,040

1,249,704

1,347,858

1,269,816

1,289,965

Interest-bearing deposits at banks

7,594,350

4,713,266

4,045,852

6,291,491

6,470,867

Federal funds sold

-

-

3,000

97,037

83,392

Trading account assets

273,783

340,710

277,009

363,085

308,175

Investment securities

15,656,439

14,494,539

14,751,637

14,393,270

12,993,542

Loans and leases:

   Commercial, financial, etc.

20,422,338

20,233,177

20,111,028

19,775,494

19,461,292

   Real estate - commercial

29,197,311

28,720,537

28,442,488

27,845,710

27,567,569

   Real estate - consumer

26,270,103

8,211,062

8,444,542

8,504,119

8,657,301

   Consumer

11,599,747

11,375,472

11,133,194

10,973,719

10,982,794

     Total loans and leases, net of unearned discount

87,489,499

68,540,248

68,131,252

67,099,042

66,668,956

        Less: allowance for credit losses

955,992

933,798

929,987

921,373

919,562

  Net loans and leases

86,533,507

67,606,450

67,201,265

66,177,669

65,749,394

Goodwill

4,593,112

3,513,325

3,513,325

3,524,625

3,524,625

Core deposit and other intangible assets

140,268

18,179

22,269

28,234

35,027

Other assets

6,628,385

5,860,889

5,917,861

6,232,556

6,230,548

  Total assets

$

122,787,884

97,797,062

97,080,076

98,377,783

96,685,535

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$

29,110,635

28,189,330

27,674,588

27,181,120

26,947,880

Interest-bearing deposits

62,677,036

44,549,028

44,787,590

46,234,455

46,457,591

Deposits at Cayman Islands office

170,170

206,185

167,441

178,545

176,582

  Total deposits

91,957,841

72,944,543

72,629,619

73,594,120

73,582,053

Short-term borrowings

2,132,182

173,783

153,299

193,495

192,676

Accrued interest and other liabilities

1,870,714

1,582,513

1,453,249

1,552,724

1,567,951

Long-term borrowings

10,653,858

10,174,289

10,175,912

10,509,143

9,006,959

  Total liabilities

106,614,595

84,875,128

84,412,079

85,849,482

84,349,639

Shareholders' equity:

   Preferred

1,231,500

1,231,500

1,231,500

1,231,500

1,231,500

   Common (1)

14,941,789

11,690,434

11,436,497

11,296,801

11,104,396

     Total shareholders' equity

16,173,289

12,921,934

12,667,997

12,528,301

12,335,896

  Total liabilities and shareholders' equity

$

122,787,884

97,797,062

97,080,076

98,377,783

96,685,535

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $251.6 million at December 31, 2015, $163.5 million at 

         September 30, 2015, $217.5 million at June 30, 2015, $152.5 million at March 31, 2015 and $181.0 million at December 31, 2014.

 

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

 and Annualized Taxable-equivalent Rates

Three months ended

Change in balance

Year ended

December 31,

December 31,

September 30,

December 31, 2015 from

December 31,

Dollars in millions

2015

2014

2015

December 31,

September 30,

2015

2014

Change in

Balance

Rate

Balance

Rate

Balance

Rate

2014

2015

Balance

Rate

Balance 

Rate

balance

ASSETS

Interest-bearing deposits at banks

$

6,622

.30

%

9,054

.25

%

6,060

.25

%

-27

%

9

%

$

5,775

.26

%

5,342

.25

%

8

%

Federal funds sold and agreements

  to resell securities

1

.54

86

.08

-

-

-99

-

34

.10

89

.07

-62

Trading account assets

68

1.88

80

1.76

96

.52

-16

-29

86

1.44

76

1.81

13

Investment securities

15,786

2.55

12,978

2.82

14,441

2.60

22

9

14,456

2.62

11,509

3.03

26

Loans and leases, net of unearned discount

  Commercial, financial, etc.

20,221

3.23

19,117

3.25

19,939

3.22

6

1

19,899

3.21

18,867

3.31

5

  Real estate - commercial

28,973

4.11

27,064

4.24

28,309

4.18

7

2

28,276

4.16

26,461

4.26

7

  Real estate - consumer

20,369

4.01

8,654

4.19

8,348

4.17

135

144

11,458

4.09

8,719

4.23

31

  Consumer

11,547

4.44

10,932

4.49

11,253

4.46

6

3

11,203

4.46

10,618

4.53

6

     Total loans and leases, net

81,110

3.92

65,767

4.01

67,849

3.96

23

20

70,836

3.95

64,665

4.05

10

  Total earning assets

103,587

3.48

87,965

3.44

88,446

3.48

18

17

91,187

3.50

81,681

3.65

12

Goodwill

4,218

3,525

3,513

20

20

3,694

3,525

5

Core deposit and other intangible assets

101

38

20

164

403

45

50

-11

Other assets

7,146

7,116

6,536

-

9

6,854

6,887

-

  Total assets

$

115,052

98,644

98,515

17

%

17

%

$

101,780

92,143

10

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

  Interest-checking

$

1,331

.11

1,083

.14

1,309

.11

23

%

2

%

$

1,275

.11

1,034

.14

23

%

  Savings deposits

45,974

.11

42,949

.10

41,197

.11

7

12

42,610

.10

40,474

.11

5

  Time deposits

9,686

.65

3,128

.50

2,858

.51

210

239

4,641

.58

3,290

.47

41

  Deposits at Cayman Islands office

224

.30

265

.22

206

.29

-16

9

216

.28

327

.21

-34

     Total interest-bearing deposits

57,215

.21

47,425

.13

45,570

.13

21

26

48,742

.15

45,125

.14

8

Short-term borrowings

1,615

.39

195

.05

174

.07

729

828

548

.31

215

.05

155

Long-term borrowings

10,748

2.36

8,954

2.62

10,114

2.44

20

6

10,217

2.47

7,492

2.90

36

Total interest-bearing liabilities

69,578

.54

56,574

.52

55,858

.55

23

25

59,507

.55

52,832

.53

13

Noninterest-bearing deposits

28,443

28,090

28,251

1

1

27,324

25,715

6

Other liabilities

2,024

1,538

1,619

32

25

1,721

1,499

15

  Total liabilities

100,045

86,202

85,728

16

17

88,552

80,046

11

Shareholders' equity

15,007

12,442

12,787

21

17

13,228

12,097

9

  Total liabilities and shareholders' equity

$

115,052

98,644

98,515

17

%

17

%

$

101,780

92,143

10

%

Net interest spread

2.94

2.92

2.93

2.95

3.12

Contribution of interest-free funds

.18

.18

.21

.19

.19

Net interest margin 

3.12

%

3.10

%

3.14

%

3.14

%

3.31

%

 

 

M&T BANK CORPORATION

Reconciliation of GAAP to Non-GAAP Measures

Three months ended

Year ended

December 31

December 31

2015

2014

2015

2014

Income statement data

In thousands, except per share

Net income

Net income

$

270,965

277,549

$

1,079,667

1,066,246

Amortization of core deposit and other

  intangible assets (1)

5,828

4,380

16,150

20,657

Merger-related expenses (1)

60,820

-

60,820

-

  Net operating income

$

337,613

281,929

$

1,156,637

1,086,903

Earnings per common share

Diluted earnings per common share

$

1.65

1.92

$

7.18

7.42

Amortization of core deposit and other

  intangible assets (1)

.04

.03

.12

.15

Merger-related expenses (1)

.40

-

.44

-

  Diluted net operating earnings per common share

$

2.09

1.95

$

7.74

7.57

Other expense

Other expense

$

786,113

666,221

$

2,822,932

2,689,474

Amortization of core deposit and other

  intangible assets

(9,576)

(7,170)

(26,424)

(33,824)

Merger-related expenses

(75,976)

-

(75,976)

-

  Noninterest operating expense

$

700,561

659,051

$

2,720,532

2,655,650

Merger-related expenses

Salaries and employee benefits

$

51,287

-

$

51,287

-

Equipment and net occupancy

3

-

3

-

Printing, postage and supplies

504

-

504

-

Other costs of operations

24,182

-

24,182

-

  Other expense

75,976

-

75,976

-

Provision for credit losses

21,000

-

21,000

-

  Total

$

96,976

-

$

96,976

-

Efficiency ratio

Noninterest operating expense (numerator)

$

700,561

659,051

$

2,720,532

2,655,650

Taxable-equivalent net interest income

813,401

687,847

2,867,050

2,700,088

Other income

448,108

451,643

1,825,037

1,779,273

Less:  Loss on bank investment securities

(22)

-

(130)

-

Denominator

$

1,261,531

1,139,490

$

4,692,217

4,479,361

Efficiency ratio

55.53

%

57.84

%

57.98

%

59.29

%

Balance sheet data

In millions

Average assets

Average assets

$

115,052

98,644

$

101,780

92,143

Goodwill

(4,218)

(3,525)

(3,694)

(3,525)

Core deposit and other intangible assets

(101)

(38)

(45)

(50)

Deferred taxes

39

12

16

15

  Average tangible assets

$

110,772

95,093

$

98,057

88,583

Average common equity

Average total equity

$

15,007

12,442

$

13,228

12,097

Preferred stock

(1,232)

(1,231)

(1,232)

(1,192)

  Average common equity

13,775

11,211

11,996

10,905

Goodwill

(4,218)

(3,525)

(3,694)

(3,525)

Core deposit and other intangible assets

(101)

(38)

(45)

(50)

Deferred taxes

39

12

16

15

  Average tangible common equity

$

9,495

7,660

$

8,273

7,345

At end of quarter

Total assets

Total assets

$

122,788

96,686

Goodwill

(4,593)

(3,525)

Core deposit and other intangible assets

(140)

(35)

Deferred taxes

54

11

  Total tangible assets

$

118,109

93,137

Total common equity

Total equity

$

16,173

12,336

Preferred stock

(1,232)

(1,231)

Undeclared dividends - cumulative preferred stock

(2)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends

14,939

11,102

Goodwill

(4,593)

(3,525)

Core deposit and other intangible assets

(140)

(35)

Deferred taxes

54

11

  Total tangible common equity

$

10,260

7,553

(1) After any related tax effect.

 

 

M&T BANK CORPORATION

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

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Income statement data

In thousands, except per share

Net income

Net income

$

270,965

280,401

286,688

241,613

277,549

Amortization of core deposit and other

  intangible assets (1)

5,828

2,506

3,653

4,163

4,380

Merger-related expenses (1)

60,820

-

-

-

-

  Net operating income

$

337,613

282,907

290,341

245,776

281,929

Earnings per common share

Diluted earnings per common share

$

1.65

1.93

1.98

1.65

1.92

Amortization of core deposit and other

  intangible assets (1)

.04

.02

.03

.03

.03

Merger-related expenses (1)

.40

-

-

-

-

  Diluted net operating earnings per common share

$

2.09

1.95

2.01

1.68

1.95

Other expense

Other expense

$

786,113

653,816

696,628

686,375

666,221

Amortization of core deposit and other

  intangible assets

(9,576)

(4,090)

(5,965)

(6,793)

(7,170)

Merger-related expenses

(75,976)

-

-

-

-

  Noninterest operating expense

$

700,561

649,726

690,663

679,582

659,051

Merger-related expenses

Salaries and employee benefits

$

51,287

-

-

-

-

Equipment and net occupancy

3

-

-

-

-

Printing, postage and supplies

504

-

-

-

-

Other costs of operations

24,182

-

-

-

-

  Other expense

75,976

-

-

-

-

Provision for credit losses

21,000

-

-

-

-

  Total

$

96,976

-

-

-

-

Efficiency ratio

Noninterest operating expense (numerator)

$

700,561

649,726

690,663

679,582

659,051

Taxable-equivalent net interest income

813,401

699,075

689,148

665,426

687,847

Other income

448,108

439,699

497,027

440,203

451,643

Less:  Loss on bank investment securities

(22)

-

(10)

(98)

-

Denominator

$

1,261,531

1,138,774

1,186,185

1,105,727

1,139,490

Efficiency ratio

55.53

%

57.05

%

58.23

%

61.46

%

57.84

%

Balance sheet data

In millions

Average assets

Average assets

$

115,052

98,515

97,598

95,892

98,644

Goodwill

(4,218)

(3,513)

(3,514)

(3,525)

(3,525)

Core deposit and other intangible assets

(101)

(20)

(25)

(31)

(38)

Deferred taxes

39

7

8

10

12

  Average tangible assets

$

110,772

94,989

94,067

92,346

95,093

Average common equity

Average total equity

$

15,007

12,787

12,636

12,459

12,442

Preferred stock

(1,232)

(1,232)

(1,232)

(1,232)

(1,231)

  Average common equity

13,775

11,555

11,404

11,227

11,211

Goodwill

(4,218)

(3,513)

(3,514)

(3,525)

(3,525)

Core deposit and other intangible assets

(101)

(20)

(25)

(31)

(38)

Deferred taxes

39

7

8

10

12

  Average tangible common equity

$

9,495

8,029

7,873

7,681

7,660

At end of quarter

Total assets

Total assets

$

122,788

97,797

97,080

98,378

96,686

Goodwill

(4,593)

(3,513)

(3,513)

(3,525)

(3,525)

Core deposit and other intangible assets

(140)

(18)

(22)

(28)

(35)

Deferred taxes

54

6

7

9

11

  Total tangible assets

$

118,109

94,272

93,552

94,834

93,137

Total common equity

Total equity

$

16,173

12,922

12,668

12,528

12,336

Preferred stock

(1,232)

(1,232)

(1,232)

(1,232)

(1,231)

Undeclared dividends - cumulative preferred stock

(2)

(3)

(3)

(2)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends

14,939

11,687

11,433

11,294

11,102

Goodwill

(4,593)

(3,513)

(3,513)

(3,525)

(3,525)

Core deposit and other intangible assets

(140)

(18)

(22)

(28)

(35)

Deferred taxes

54

6

7

9

11

  Total tangible common equity

$

10,260

8,162

7,905

7,750

7,553

(1) After any related tax effect.

 

 

SOURCE M&T Bank Corporation



RELATED LINKS

http://www.mandtbank.com