2014

M&T Bank Corporation Announces First Quarter Results

BUFFALO, N.Y., April 14, 2014 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2014.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2014 were $1.61, compared with $1.98 in the year-earlier quarter and $1.56 in the fourth quarter of 2013.  GAAP-basis net income in the recent quarter was $229 million, compared with $274 million in the initial 2013 quarter and $221 million in the final quarter of 2013.  Net income for the first three months of 2014 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.07% and 8.22%, respectively, compared with 1.36% and 11.10%, respectively, in the similar 2013 period and 1.03% and 7.99%, respectively, in the fourth quarter of 2013. 

Commenting on M&T's results for the recent quarter, Rene F. Jones, Vice Chairman and Chief Financial Officer, noted, "Revenue trends for the quarter were dampened by lower than normal levels of customer activity during the first two months of the period followed by a rebound in March. Overall, however, the recent quarter was a productive one for M&T.  We received a non-objection to our capital plan and proposed capital actions from the Federal Reserve, successfully accessed the debt and preferred equity markets and continued to progress on our infrastructure projects related to BSA/AML compliance, risk management, and capital plan and stress testing efforts.  While these initiatives contributed to operating expenses that were higher than M&T's normal run rate, they position us well for the future."

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.  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 $1.66 in the recent quarter, compared with $2.06 and $1.61 in the first and fourth quarters of 2013, respectively.  Net operating income for the first three months of 2014 totaled $235 million.  Net operating income was $285 million and $228 million in the quarters ended March 31, 2013 and December 31, 2013, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.15% and 12.76%, respectively, in the first quarter of 2014.  The comparable returns were 1.48% and 18.71% in the year-earlier quarter and 1.11% and 12.67% in the fourth quarter of 2013.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $662 million in 2014's initial quarter, nearly unchanged from the year-earlier period.  Growth in average earning assets, led by a $3.5 billion rise in average investment securities, was offset by a 19 basis point narrowing of the net interest margin to 3.52% in the recent quarter from 3.71% in the first quarter of 2013.  The increase in investment securities reflects M&T's significant loan securitization activities in 2013.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $32 million in the first quarter of 2014, improved from $38 million and $42 million in the first and fourth quarters of 2013, respectively.  Net charge-offs of loans during the recent quarter were also $32 million, down from $37 million in the first quarter of 2013 and $42 million in the final 2013 quarter.  Net charge-offs expressed as an annualized percentage of average loans outstanding were .20% during the first three months of 2014, compared with .23% and .26% in the first and fourth quarters of 2013, respectively. 

Loans classified as nonaccrual totaled $891 million or 1.39% of total loans outstanding at March 31, 2014, compared with $1.05 billion or 1.60% a year earlier and $874 million or 1.36% at December 31, 2013. Assets taken in foreclosure of defaulted loans continued to decline and totaled $59 million at March 31, 2014, compared with $96 million and $67 million at March 31, 2013 and December 31, 2013, respectively. 

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of determining the allowance for credit losses.  As a result of those analyses, the allowance totaled $917 million or 1.43% of outstanding loans at each of March 31, 2014 and December 31, 2013, compared with $927 million or 1.41% of loans at March 31, 2013. 

Noninterest Income and Expense.  Noninterest income totaled $420 million in the first quarter of 2014, $433 million a year earlier and $446 million in the fourth quarter of 2013.  Noninterest income trends for the recent quarter reflected a slowdown in customer activity across most income categories during January and February. The largest factor contributing to the decline from 2013's first quarter was a $13 million decrease in mortgage banking revenues, resulting from lower originated loan volumes. 

Noninterest expense in the first quarter of 2014 totaled $702 million, compared with $636 million and $743 million in the first and fourth quarters of 2013, respectively.  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 $692 million in the recently completed quarter, $618 million in the first quarter of 2013 and $733 million in the final 2013 quarter.  The higher level of operating expenses in the recent quarter as compared with the year-earlier period was predominantly the result of expenses for professional services and salaries associated with BSA/AML compliance, capital planning and stress testing, risk management, and other operational initiatives.  The decline in noninterest operating expenses in 2014's first quarter as compared with the final 2013 quarter was largely due to the impact of a $40 million litigation-related accrual in 2013 and lower professional services costs in 2014 that were partially offset by seasonally higher stock-based compensation and employee benefits expenses. 

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 63.9% in the first quarter of 2014, 55.9% in the year-earlier quarter and 65.5% in the fourth quarter of 2013.

Balance Sheet.  M&T had total assets of $88.5 billion at March 31, 2014, up 7% from $82.8 billion a year earlier.  Investment securities at March 31, 2014 were $10.4 billion, up $4.7 billion or 83% from March 31, 2013.  M&T added investment securities through purchase and loan securitization transactions in order to enhance its liquidity position as a result of changing regulatory requirements.  Loans and leases, net of unearned discount, and deposits totaled $64.1 billion and $68.7 billion, respectively, at the recent quarter-end, compared with $65.9 billion and $65.1 billion, respectively, a year earlier. 

Total shareholders' equity increased 14% to $11.9 billion at March 31, 2014 from $10.4 billion at March 31, 2013, representing 13.43% and 12.59%, respectively, of total assets.  During the recent quarter, M&T issued $350 million of 6.45% preferred stock and redeemed a like amount of 8.50% trust preferred securities.  Common shareholders' equity was $10.6 billion, or $81.05 per share at March 31, 2014, up from $9.5 billion, or $73.99 per share, a year earlier.  Tangible equity per common share rose 17% to $53.92 at March 31, 2014 from $46.11 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $79.81 and $52.45, respectively, at December 31, 2013.  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 estimated Tier 1 common ratio, a regulatory capital measure, was 9.45% at March 31, 2014, compared with 7.93% and 9.22% at March 31, 2013 and December 31, 2013, respectively.  M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the new capital rules approved in July 2013 on a fully phased-in basis was approximately 9.22% as of March 31, 2014.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 10:00 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 #22896274.  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 until Thursday, April 17, 2014 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #22896274.  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






Amounts in thousands,



March 31






 except per share



2014


2013


Change















Performance






















Net income


$

229,017


274,113


-16

%



Net income available to common shareholders



211,731


255,096


-17















Per common share:











  Basic earnings


$

1.63


2.00


-19

%



  Diluted earnings



1.61


1.98


-19




  Cash dividends


$

.70


.70


-















Common shares outstanding:











  Average - diluted (1)



131,126


128,636


2

%



  Period end (2)



131,431


128,999


2















Return on (annualized):











  Average total assets



1.07

%

1.36

%





  Average common shareholders' equity



8.22

%

11.10

%
















Taxable-equivalent net interest income


$

662,378


662,500


-















Yield on average earning assets



3.87

%

4.13

%





Cost of interest-bearing liabilities



.55

%

.64

%





Net interest spread



3.32

%

3.49

%





Contribution of interest-free funds



.20

%

.22

%





Net interest margin 



3.52

%

3.71

%
















Net charge-offs to average total 











  net loans (annualized)



.20

%

.23

%
















Net operating results (3)






















Net operating income


$

235,162


285,136


-18

%



Diluted net operating earnings per common share



1.66


2.06


-19




Return on (annualized):











  Average tangible assets



1.15

%

1.48

%





  Average tangible common equity



12.76

%

18.71

%





Efficiency ratio



63.95

%

55.88

%









































At  March 31






Loan quality



2014


2013


Change















Nonaccrual loans


$

890,893


1,052,794


-15

%



Real estate and other foreclosed assets



59,407


95,680


-38

%



  Total nonperforming assets


$

950,300


1,148,474


-17

%














Accruing loans past due 90 days or more (4)


$

307,017


331,283


-7

%














Government guaranteed loans included in totals











  above:











  Nonaccrual loans


$

75,959


63,385


20

%



  Accruing loans past due 90 days or more



291,418


311,579


-6

%














Renegotiated loans


$

257,889


272,285


-5

%














Acquired accruing loans past due 90 











  days or more (5)


$

120,996


157,068


-23

%














Purchased impaired loans (6):











  Outstanding customer balance


$

566,100


790,048






  Carrying amount



303,388


425,232

















Nonaccrual loans to total net loans



1.39

%

1.60

%
















Allowance for credit losses to total loans



1.43

%

1.41

%



























(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 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,




March 31,



December 31,



September 30,



June 30,



March 31,





 except per share




2014



2013



2013



2013



2013


























Performance










































Net income



$

229,017



221,422



294,479



348,466



274,113





Net income available to common shareholders




211,731



203,451



275,356



328,557



255,096


























Per common share:





















  Basic earnings



$

1.63



1.57



2.13



2.56



2.00





  Diluted earnings




1.61



1.56



2.11



2.55



1.98





  Cash dividends



$

.70



.70



.70



.70



.70


























Common shares outstanding:





















  Average - diluted (1)




131,126



130,464



130,265



129,017



128,636





  Period end (2)




131,431



130,564



130,241



129,464



128,999


























Return on (annualized):





















  Average total assets




1.07

%


1.03

%


1.39

%


1.68

%


1.36

%




  Average common shareholders' equity




8.22

%


7.99

%


11.06

%


13.78

%


11.10

%

























Taxable-equivalent net interest income



$

662,378



672,683



679,213



683,804



662,500


























Yield on average earning assets




3.87

%


3.92

%


3.98

%


4.10

%


4.13

%




Cost of interest-bearing liabilities




.55

%


.56

%


.58

%


.62

%


.64

%




Net interest spread




3.32

%


3.36

%


3.40

%


3.48

%


3.49

%




Contribution of interest-free funds




.20

%


.20

%


.21

%


.23

%


.22

%




Net interest margin




3.52

%


3.56

%


3.61

%


3.71

%


3.71

%

























Net charge-offs to average total 





















  net loans (annualized)




.20

%


.26

%


.29

%


.35

%


.23

%

























Net operating results (3)










































Net operating income



$

235,162



227,797



300,968



360,734



285,136





Diluted net operating earnings per common share




1.66



1.61



2.16



2.65



2.06





Return on (annualized):





















  Average tangible assets




1.15

%


1.11

%


1.48

%


1.81

%


1.48

%




  Average tangible common equity




12.76

%


12.67

%


17.64

%


22.72

%


18.71

%




Efficiency ratio




63.95

%


65.48

%


56.03

%


50.92

%


55.88

%




























































































March 31,



December 31,



September 30,



June 30,



March 31,





Loan quality




2014



2013



2013



2013



2013


























Nonaccrual loans



$

890,893



874,156



915,871



964,906



1,052,794





Real estate and other foreclosed assets




59,407



66,875



89,203



82,088



95,680





  Total nonperforming assets



$

950,300



941,031



1,005,074



1,046,994



1,148,474


























Accruing loans past due 90 days or more (4)



$

307,017



368,510



339,792



340,467



331,283


























Government guaranteed loans included in totals above:





















  Nonaccrual loans



$

75,959



63,647



68,519



69,508



63,385





  Accruing loans past due 90 days or more




291,418



297,918



320,732



315,281



311,579


























Renegotiated loans



$

257,889



257,092



259,301



263,351



272,285


























Acquired accruing loans past due 90 





















  days or more (5)



$

120,996



130,162



153,585



155,686



157,068


























Purchased impaired loans (6):





















  Outstanding customer balance



$

566,100



579,975



648,118



725,196



790,048





  Carrying amount




303,388



330,792



357,337



394,697



425,232


























Nonaccrual loans to total net loans




1.39

%


1.36

%


1.44

%


1.46

%


1.60

%

























Allowance for credit losses to total loans




1.43

%


1.43

%


1.44

%


1.41

%


1.41

%














































(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 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






March 31




Dollars in thousands


2014


2013


Change










Interest income

$

722,952


729,975


-1

%

Interest expense


66,519


73,925


-10










Net interest income


656,433


656,050


-










Provision for credit losses


32,000


38,000


-16










Net interest income after








   provision for credit losses


624,433


618,050


1










Other income








     Mortgage banking revenues


80,049


93,103


-14


     Service charges on deposit accounts


104,198


110,949


-6


     Trust income


121,252


121,603


-


     Brokerage services income


16,500


15,711


5


     Trading account and foreign exchange gains


6,447


8,927


-28


     Other-than-temporary impairment losses 








        recognized in earnings


-


(9,800)


-


     Equity in earnings of Bayview Lending Group LLC


(4,454)


(3,656)


-


     Other revenues from operations


96,115


96,045


-


          Total other income


420,107


432,882


-3










Other expense








     Salaries and employee benefits


371,326


356,551


4


     Equipment and net occupancy


71,167


65,159


9


     Printing, postage and supplies


10,956


10,699


2


     Amortization of core deposit and other 








        intangible assets


10,062


13,343


-25


     FDIC assessments


15,488


19,438


-20


     Other costs of operations


223,272


170,406


31


          Total other expense


702,271


635,596


10










Income before income taxes


342,269


415,336


-18










Applicable income taxes


113,252


141,223


-20










Net income

$

229,017


274,113


-16

%









 

M&T BANK CORPORATION













Condensed Consolidated Statement of Income, Five Quarter Trend


























Three months ended



March 31,



December 31,



September 30,



June 30,



March 31,

Dollars in thousands


2014



2013



2013



2013



2013
















Interest income

$

722,952



734,466



742,686



750,207



729,975

Interest expense


66,519



67,982



69,578



72,620



73,925
















Net interest income


656,433



666,484



673,108



677,587



656,050
















Provision for credit losses


32,000



42,000



48,000



57,000



38,000
















Net interest income after















   provision for credit losses


624,433



624,484



625,108



620,587



618,050
















Other income















     Mortgage banking revenues


80,049



82,169



64,731



91,262



93,103

     Service charges on deposit accounts


104,198



110,436



113,839



111,717



110,949

     Trust income 


121,252



125,876



123,801



124,728



121,603

     Brokerage services income


16,500



15,807



16,871



17,258



15,711

     Trading account and foreign exchange gains


6,447



13,690



8,987



9,224



8,927

     Gain on bank investment securities


-



-



-



56,457



-

     Other-than-temporary impairment losses 















        recognized in earnings


-



-



-



-



(9,800)

     Equity in earnings of Bayview Lending Group LLC


(4,454)



(6,136)



(3,881)



(2,453)



(3,656)

     Other revenues from operations


96,115



104,404



153,040



100,496



96,045

          Total other income


420,107



446,246



477,388



508,689



432,882
















Other expense















     Salaries and employee benefits


371,326



336,159



339,332



323,136



356,551

     Equipment and net occupancy


71,167



68,670



66,220



64,278



65,159

     Printing, postage and supplies


10,956



8,808



9,752



10,298



10,699

     Amortization of core deposit and other 















        intangible assets


10,062



10,439



10,628



12,502



13,343

     FDIC assessments


15,488



17,574



14,877



17,695



19,438

     Other costs of operations


223,272



301,422



217,817



170,682



170,406

          Total other expense


702,271



743,072



658,626



598,591



635,596
















Income before income taxes


342,269



327,658



443,870



530,685



415,336
















Applicable income taxes


113,252



106,236



149,391



182,219



141,223
















Net income

$

229,017



221,422



294,479



348,466



274,113
















 

M&T BANK CORPORATION









Condensed Consolidated Balance Sheet





















March 31




Dollars in thousands



2014


2013


Change











ASSETS


















Cash and due from banks


$

1,671,052


1,231,091


36

%










Interest-bearing deposits at banks



3,299,185


1,304,770


153











Federal funds sold and agreements









  to resell securities



92,066


594,976


-85











Trading account assets



314,807


420,144


-25











Investment securities



10,364,249


5,660,831


83











Loans and leases:


















   Commercial, financial, etc



18,896,070


17,469,138


8


   Real estate - commercial



26,104,086


25,944,819


1


   Real estate - consumer



8,774,095


11,094,577


-21


   Consumer



10,360,827


11,415,733


-9


     Total loans and leases, net of unearned discount



64,135,078


65,924,267


-3


        Less: allowance for credit losses



916,768


927,117


-1











  Net loans and leases



63,218,310


64,997,150


-3











Goodwill



3,524,625


3,524,625


-











Core deposit and other intangible assets



58,789


102,420


-43











Other assets



5,987,277


4,975,950


20











  Total assets


$

88,530,360


82,811,957


7

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits


$

25,244,200


23,603,971


7

%










Interest-bearing deposits



43,207,286


41,219,679


5











Deposits at Cayman Islands office



247,880


266,076


-7











  Total deposits



68,699,366


65,089,726


6











Short-term borrowings



230,209


374,593


-39











Accrued interest and other liabilities



1,462,725


1,530,118


-4











Long-term borrowings



6,251,197


5,394,563


16











  Total liabilities



76,643,497


72,389,000


6











Shareholders' equity:


















   Preferred



1,231,500


874,627


41


   Common (1) 



10,655,363


9,548,330


12











     Total shareholders' equity



11,886,863


10,422,957


14











  Total liabilities and shareholders' equity


$

88,530,360


82,811,957


7

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $25.3 million at March 31, 2014 and $226.0 million at March 31, 2013.










 

M&T BANK CORPORATION













Condensed Consolidated Balance Sheet, Five Quarter Trend

















March 31,


December 31,



September 30,



June 30,



March 31,

Dollars in thousands



2014


2013



2013



2013



2013

















ASSETS
































Cash and due from banks


$

1,671,052



1,573,361



1,941,944



1,350,015



1,231,091

















Interest-bearing deposits at banks



3,299,185



1,651,138



1,925,811



2,555,354



1,304,770

















Federal funds sold and agreements
















  to resell securities



92,066



99,573



117,809



124,487



594,976

















Trading account assets



314,807



376,131



371,370



378,235



420,144

















Investment securities



10,364,249



8,796,497



8,309,773



5,210,526



5,660,831

















Loans and leases:
































   Commercial, financial, etc



18,896,070



18,705,216



17,911,149



18,021,812



17,469,138

   Real estate - commercial



26,104,086



26,148,208



26,345,267



26,116,394



25,944,819

   Real estate - consumer



8,774,095



8,928,221



9,228,003



10,399,749



11,094,577

   Consumer



10,360,827



10,291,514



10,174,623



11,433,911



11,415,733

     Total loans and leases, net of unearned discount



64,135,078



64,073,159



63,659,042



65,971,866



65,924,267

        Less: allowance for credit losses



916,768



916,676



916,370



927,065



927,117

















  Net loans and leases



63,218,310



63,156,483



62,742,672



65,044,801



64,997,150

















Goodwill



3,524,625



3,524,625



3,524,625



3,524,625



3,524,625

















Core deposit and other intangible assets



58,789



68,851



79,290



89,918



102,420

















Other assets



5,987,277



5,915,732



5,414,191



4,951,044



4,975,950

















  Total assets


$

88,530,360



85,162,391



84,427,485



83,229,005



82,811,957

































LIABILITIES AND SHAREHOLDERS' EQUITY
































Noninterest-bearing deposits


$

25,244,200



24,661,007



24,150,771



24,074,815



23,603,971

















Interest-bearing deposits



43,207,286



42,134,859



42,084,860



41,302,212



41,219,679

















Deposits at Cayman Islands office



247,880



322,746



316,510



284,443



266,076

















  Total deposits



68,699,366



67,118,612



66,552,141



65,661,470



65,089,726

















Short-term borrowings



230,209



260,455



246,019



307,740



374,593

















Accrued interest and other liabilities



1,462,725



1,368,922



1,491,797



1,421,067



1,530,118

















Long-term borrowings



6,251,197



5,108,870



5,121,326



5,122,398



5,394,563

















  Total liabilities



76,643,497



73,856,859



73,411,283



72,512,675



72,389,000

















Shareholders' equity:
































   Preferred



1,231,500



881,500



879,010



876,796



874,627

   Common (1) 



10,655,363



10,424,032



10,137,192



9,839,534



9,548,330

















     Total shareholders' equity



11,886,863



11,305,532



11,016,202



10,716,330



10,422,957

















  Total liabilities and shareholders' equity


$

88,530,360



85,162,391



84,427,485



83,229,005



82,811,957

































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $25.3 million at March 31, 2014, $64.2 million at December 31, 2013, $198.1 million at September 30, 2013, $227.8 million at June 30, 2013 and $226.0 million at March 31, 2013.

 

M&T BANK CORPORATION













Condensed Consolidated Average Balance Sheet











 and Annualized Taxable-equivalent Rates
































Three months ended


Change in balance




March 31,


March 31,


December 31,


March 31, 2014 from

Dollars in millions



2014


2013


2013


March 31,


December 31,




Balance

Rate


Balance

Rate


Balance

Rate


2013


2013

ASSETS


































Interest-bearing deposits at banks


$

3,089

.25

%

527

.21

%

2,948

.25

%

486

%


5

%


















Federal funds sold and agreements

















  to resell securities



100

.07


81

.13


115

.07


22



-14



















Trading account assets



71

2.68


76

3.60


82

1.36


-6



-13



















Investment securities



9,265

3.34


5,803

3.33


8,354

3.32


60



11



















Loans and leases, net of unearned discount

















  Commercial, financial, etc



18,476

3.37


17,328

3.66


18,096

3.41


7



2


  Real estate - commercial



26,143

4.40


25,915

4.41


26,231

4.48


1



-


  Real estate - consumer



8,844

4.19


11,142

4.09


8,990

4.20


-21



-2


  Consumer



10,300

4.59


11,467

4.66


10,233

4.60


-10



1


     Total loans and leases, net



63,763

4.14


65,852

4.24


63,550

4.17


-3



-



















  Total earning assets



76,288

3.87


72,339

4.13


75,049

3.92


5



2



















Goodwill



3,525



3,525



3,525



-



-



















Core deposit and other intangible assets



64



109



74



-42



-14



















Other assets



6,788



5,940



6,682



14



2



















  Total assets


$

86,665



81,913



85,330



6

%


2

%




















































LIABILITIES AND SHAREHOLDERS' EQUITY


































Interest-bearing deposits

















  NOW accounts


$

988

.12


893

.15


933

.13


11

%


6

%

  Savings deposits



38,358

.12


35,394

.16


38,079

.14


8



1


  Time deposits



3,460

.46


4,438

.75


3,617

.51


-22



-4


  Deposits at Cayman Islands office



380

.22


859

.18


414

.21


-56



-8


     Total interest-bearing deposits



43,186

.15


41,584

.22


43,043

.17


4



-



















Short-term borrowings



264

.05


637

.15


287

.06


-59



-8


Long-term borrowings



5,897

3.47


4,688

4.39


5,009

3.91


26



18



















Total interest-bearing liabilities



49,347

.55


46,909

.64


48,339

.56


5



2



















Noninterest-bearing deposits



24,141



22,956



24,169



5



-



















Other liabilities



1,529



1,726



1,713



-11



-11



















  Total liabilities



75,017



71,591



74,221



5



1



















Shareholders' equity



11,648



10,322



11,109



13



5



















  Total liabilities and shareholders' equity


$

86,665



81,913



85,330



6

%


2

%



































Net interest spread




3.32



3.49



3.36







Contribution of interest-free funds




.20



.22



.20







Net interest margin




3.52

%


3.71

%


3.56

%























 

M&T BANK CORPORATION














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
























































Three months ended






March 31,


December 31,


September 30,


June 30,


March 31,






2014


2013


2013


2013


2013


Income statement data














In thousands, except per share














Net income














Net income



$

229,017


221,422


294,479


348,466


274,113


Amortization of core deposit and other














  intangible assets (1)




6,145


6,375


6,489


7,632


8,148


Merger-related expenses (1)




-


-


-


4,636


2,875


  Net operating income



$

235,162


227,797


300,968


360,734


285,136


Earnings per common share














Diluted earnings per common share



$

1.61


1.56


2.11


2.55


1.98


Amortization of core deposit and other














  intangible assets (1)




.05


.05


.05


.06


.06


Merger-related expenses (1)




-


-


-


.04


.02


  Diluted net operating earnings per common share



$

1.66


1.61


2.16


2.65


2.06


Other expense














Other expense



$

702,271


743,072


658,626


598,591


635,596


Amortization of core deposit and other














  intangible assets




(10,062)


(10,439)


(10,628)


(12,502)


(13,343)


Merger-related expenses




-


-


-


(7,632)


(4,732)


  Noninterest operating expense



$

692,209


732,633


647,998


578,457


617,521


Merger-related expenses














Salaries and employee benefits



$

-


-


-


300


536


Equipment and net occupancy




-


-


-


489


201


Printing, postage and supplies




-


-


-


998


827


Other costs of operations




-


-


-


5,845


3,168


  Total



$

-


-


-


7,632


4,732


Efficiency ratio














Noninterest operating expense (numerator)



$

692,209


732,633


647,998


578,457


617,521


Taxable-equivalent net interest income




662,378


672,683


679,213


683,804


662,500


Other income




420,107


446,246


477,388


508,689


432,882


Less:  Gain on bank investment securities




-


-


-


56,457


-


           Net OTTI losses recognized in earnings




-


-


-


-


(9,800)


Denominator



$

1,082,485


1,118,929


1,156,601


1,136,036


1,105,182


Efficiency ratio




63.95

%

65.48

%

56.03

%

50.92

%

55.88

%





























Balance sheet data














In millions














Average assets














Average assets



$

86,665


85,330


84,011


83,352


81,913


Goodwill




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(64)


(74)


(84)


(95)


(109)


Deferred taxes




20


23


25


28


32


  Average tangible assets



$

83,096


81,754


80,427


79,760


78,311


Average common equity














Average total equity



$

11,648


11,109


10,881


10,563


10,322


Preferred stock




(1,072)


(881)


(878)


(876)


(874)


  Average common equity




10,576


10,228


10,003


9,687


9,448


Goodwill




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(64)


(74)


(84)


(95)


(109)


Deferred taxes




20


23


25


28


32


  Average tangible common equity



$

7,007


6,652


6,419


6,095


5,846
















At end of quarter














Total assets














Total assets



$

88,530


85,162


84,427


83,229


82,812


Goodwill




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(59)


(69)


(79)


(90)


(102)


Deferred taxes




19


21


24


27


30


  Total tangible assets



$

84,965


81,589


80,847


79,641


79,215


Total common equity














Total equity



$

11,887


11,306


11,016


10,716


10,423


Preferred stock




(1,232)


(882)


(879)


(877)


(875)


Undeclared dividends - cumulative preferred stock




(3)


(3)


(4)


(3)


(3)


  Common equity, net of undeclared cumulative














    preferred dividends




10,652


10,421


10,133


9,836


9,545


Goodwill




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(59)


(69)


(79)


(90)


(102)


Deferred taxes




19


21


24


27


30


  Total tangible common equity



$

7,087


6,848


6,553


6,248


5,948






























(1) After any related tax effect.



























SOURCE M&T Bank Corporation



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