M&T Bank Corporation Announces Second Quarter Results

Jul 16, 2015, 08:08 ET from M&T Bank Corporation

BUFFALO, N.Y., July 16, 2015 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2015.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2015 were $1.98, equal to the year-earlier period and 20% higher than the $1.65 recorded in the first quarter of 2015.  GAAP-basis net income in the recently completed quarter totaled $287 million, up from $284 million and $242 million in the second quarter of 2014 and the initial 2015 quarter, respectively.  GAAP-basis net income for the second quarter of 2015 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.18% and 9.37%, respectively, compared with 1.27% and 9.79%, respectively, in the year-earlier quarter and 1.02% and 7.99%, respectively, in the first quarter of 2015.

The recent quarter's results reflect two noteworthy items.  In early April 2015, M&T sold the trade processing business within the retirement services division of its Institutional Client Services business.  That sale resulted in an after-tax gain of approximately $23 million ($45 million pre-tax).  Also during the second quarter of 2015, M&T made $40 million of tax-deductible cash contributions to The M&T Charitable Foundation.  The after-tax impact of those two items lowered net income and diluted earnings per common share during the recent quarter by approximately $1 million and $.01, respectively.

Commenting on the recent quarter's performance, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "M&T's results for the second quarter reflect strong activity in our commercial loan portfolios, as we experienced 10% annualized growth in balances and significantly higher loan syndication fees as compared with the first quarter.  Charge-offs remained at historically low levels and expenses during the quarter were again well-contained.  We were pleased to make a significant contribution to The M&T Charitable Foundation, so that it may continue to support the communities we serve.  M&T's performance in the second quarter was indicative of what we do best – focusing on prudent banking practices that result in internal capital generation while striving to exceed our customers' needs." 

For the six-month period ended June 30, 2015, diluted earnings per common share were $3.63, up from $3.59 in the year-earlier period.  GAAP-basis net income for the first half of 2015 totaled $528 million, 3% higher than $513 million in the corresponding 2014 period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the six-month period ended June 30, 2015 was 1.10% and 8.69%, respectively, compared with 1.17% and 9.02%, respectively, in the similar 2014 period.

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, 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 $2.01 in the recent quarter, compared with $2.02 and $1.68 in the year-earlier quarter and the first quarter of 2015, respectively. Net operating income during each of the second quarters of 2015 and 2014 was $290 million, compared with $246 million in the initial 2015 quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.24% and 13.76%, respectively, in the second quarter of 2015.  The comparable returns were 1.35% and 14.92% in the second quarter of 2014 and 1.08% and 11.90% in the first quarter of 2015.

Diluted net operating earnings per common share in the first six months of 2015 were $3.69, compared with $3.68 in the first half of 2014.  Net operating income during the six-month period ended June 30, 2015 was $536 million, 2% higher than $525 million in the similar 2014 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.16% and 12.85%, respectively, in the first half of 2015, compared with 1.25% and 13.86%, respectively, in the first six months of 2014.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $689 million in the second quarter of 2015, up 4% from $665 million in the first quarter of 2015.  That improvement reflects a $2.1 billion increase in average earning assets, including a $1.1 billion increase in average loans and an $819 million rise in average investment securities resulting from continued purchases of mortgage-backed securities.  The net interest margin during each of the first two quarters of 2015 was 3.17%.  Taxable-equivalent net interest income in the recent quarter was up 2% from $675 million in the year-earlier period.  The effect of growth in average earning assets, predominantly due to increases of $3.2 billion in average investment securities and $3.3 billion in average loans and leases, was partially offset by a 23 basis point narrowing of the net interest margin in the recent quarter from 3.40% in the second quarter of 2014.  The increases in investment securities reflect continued progress made in response to regulatory liquidity requirements that will become effective for M&T in January 2016.   

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $30 million in each of the second quarters of 2015 and 2014, compared with $38 million in the first quarter of 2015.  Net charge-offs of loans were $21 million during the recent quarter, improved from $29 million in the second quarter of 2014 and $36 million in the first quarter of 2015.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .13% and .18% in the second quarters of 2015 and 2014, respectively, and .22% in the first quarter of 2015.

Loans classified as nonaccrual totaled $797 million, or 1.17% of total loans outstanding at June 30, 2015, compared with $880 million or 1.36% a year earlier and $791 million or 1.18% at March 31, 2015.  Assets taken in foreclosure of defaulted loans were $64 million at June 30, 2015, compared with $60 million at June 30, 2014 and $63 million at March 31, 2015.

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 totaled $930 million or 1.36% of loans outstanding at June 30, 2015, compared with $918 million or 1.42% of loans at June 30, 2014 and $921 million or 1.37% of loans at March 31, 2015. 

Noninterest Income and Expense.  Noninterest income aggregated $497 million in the second quarter of 2015, up from $456 million in the year-earlier quarter and $440 million in the first quarter of 2015.  Reflected in the recent quarter's total was the $45 million pre-tax gain realized from the sale of the trade processing business noted earlier.  Revenues from the divested business, which had been recorded as trust income, aggregated $10 million in the year-ago quarter and $9 million in the first quarter of 2015.  After considering the impact of the recent quarter gain and the revenues recorded in prior quarters related to the sold business, noninterest income in the recent quarter was improved from the second quarter of 2014 and from the initial 2015 quarter.  As compared with the second quarter of 2014, higher mortgage banking revenues and loan syndication fees contributed to that improvement. On that same basis, the rise in noninterest income from the first quarter of 2015 was largely due to higher loan syndication fees, trust income and fees for providing deposit account services.

Noninterest expense in the second quarter of 2015 totaled $697 million, up from $668 million in the year-earlier quarter and $686 million in the first 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.  Exclusive of those expenses, noninterest operating expenses were $691 million in the recent quarter, compared with $658 million in the second quarter of 2014 and $680 million in 2015's initial quarter.  Reflected in operating expenses in the recent quarter was the aforementioned higher level of contribution to The M&T Charitable Foundation. 

Without the impact of charitable contributions, noninterest operating expenses in the recent quarter declined from the year-earlier quarter. Higher salaries and employee benefits expenses were more than offset by lower expenses for professional services, FDIC assessments and litigation-related costs.  On that same basis, as compared with the initial 2015 quarter, the recent quarter's lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2015 period.  Also contributing to the decline were reduced costs for professional services that were mitigated by higher legal fees.  The lower operating expense level in the recent quarter was reflective of the noted sale of the trade processing business.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 58.2% in each of the second quarters of 2015 and 2014, compared with 61.5% in the first quarter of 2015.  Excluding the impact of the two notable items in the recent quarter, the efficiency ratio was 57.0%. 

Balance Sheet.  M&T had total assets of $97.1 billion at June 30, 2015, up 7% from $90.8 billion a year earlier.  Investment securities were $14.8 billion at June 30, 2015, up $2.6 billion or 22% from June 30, 2014.  Loans and leases, net of unearned discount, totaled $68.1 billion at the recent quarter-end, up $3.4 billion or 5% from $64.7 billion at June 30, 2014.  Total deposits rose 4% to $72.6 billion at June 30, 2015 from $69.8 billion a year earlier.

Total shareholders' equity grew 4% to $12.7 billion at June 30, 2015 from $12.2 billion a year earlier, representing 13.05% and 13.40%, respectively, of total assets.  Common shareholders' equity was $11.4 billion, or $85.90 per share, at June 30, 2015, up from $10.9 billion, or $82.86 per share, at June 30, 2014.  Tangible equity per common share rose 6% to $59.39 at the recent quarter-end from $55.89 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $84.95 and $58.29, respectively, at March 31, 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 9.92%.  M&T's estimated Tier 1 common ratio under previously effective regulatory capital rules would have been 10.11% as of June 30, 2015.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second 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# 78536183. 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 Monday, July 20, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 78536183.  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 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

Six months ended

Amounts in thousands,

June 30

June 30

 except per share

2015

2014

Change

2015

2014

Change

Performance

Net income

$

286,688

284,336

1

%

$

528,301

513,353

3

%

Net income available to common shareholders

263,481

260,695

1

%

482,313

472,429

2

%

Per common share:

  Basic earnings

$

1.99

1.99

-

$

3.65

3.62

1

%

  Diluted earnings

1.98

1.98

-

3.63

3.59

1

%

  Cash dividends

$

.70

.70

-

$

1.40

1.40

-

Common shares outstanding:

  Average - diluted (1)

133,116

131,828

1

%

132,944

131,479

1

%

  Period end (2)

133,099

131,953

1

%

133,099

131,953

1

%

Return on (annualized):

  Average total assets

1.18

%

1.27

%

1.10

%

1.17

%

  Average common shareholders' equity

9.37

%

9.79

%

8.69

%

9.02

%

Taxable-equivalent net interest income

$

689,148

674,963

2

%

$

1,354,574

1,337,341

1

%

Yield on average earning assets

3.52

%

3.73

%

3.53

%

3.80

%

Cost of interest-bearing liabilities

.55

%

.51

%

.56

%

.53

%

Net interest spread

2.97

%

3.22

%

2.97

%

3.27

%

Contribution of interest-free funds

.20

%

.18

%

.20

%

.19

%

Net interest margin

3.17

%

3.40

%

3.17

%

3.46

%

Net charge-offs to average total 

  net loans (annualized)

.13

%

.18

%

.17

%

.19

%

Net operating results (3)

Net operating income

$

290,341

289,974

-

$

536,117

525,136

2

%

Diluted net operating earnings per common share

2.01

2.02

-

3.69

3.68

-

Return on (annualized):

  Average tangible assets

1.24

%

1.35

%

1.16

%

1.25

%

  Average tangible common equity

13.76

%

14.92

%

12.85

%

13.86

%

Efficiency ratio

58.23

%

58.20

%

59.79

%

60.46

%

At  June 30

Loan quality

2015

2014

Change

Nonaccrual loans

$

797,146

880,134

-9

%

Real estate and other foreclosed assets

63,734

59,793

7

%

  Total nonperforming assets

$

860,880

939,927

-8

%

Accruing loans past due 90 days or more (4)

$

238,568

289,016

-17

%

Government guaranteed loans included in totals

  above:

  Nonaccrual loans

$

58,259

81,817

-29

%

  Accruing loans past due 90 days or more

206,775

275,846

-25

%

Renegotiated loans

$

197,145

270,223

-27

%

Acquired accruing loans past due 90 

  days or more (5)

$

78,591

134,580

-42

%

Purchased impaired loans (6):

  Outstanding customer balance

$

294,381

504,584

-42

%

  Carrying amount

169,240

282,517

-40

%

Nonaccrual loans to total net loans

1.17

%

1.36

%

Allowance for credit losses to total loans

1.36

%

1.42

%

(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,

June 30,

March 31,

December 31,

September 30,

June 30,

 except per share

2015

2015

2014

2014

2014

Performance

Net income

$

286,688

241,613

277,549

275,344

284,336

Net income available to common shareholders

263,481

218,837

254,239

251,917

260,695

Per common share:

  Basic earnings

$

1.99

1.66

1.93

1.92

1.99

  Diluted earnings

1.98

1.65

1.92

1.91

1.98

  Cash dividends

$

.70

.70

.70

.70

.70

Common shares outstanding:

  Average - diluted (1)

133,116

132,769

132,278

132,128

131,828

  Period end (2)

133,099

132,946

132,354

132,142

131,953

Return on (annualized):

  Average total assets

1.18

%

1.02

%

1.12

%

1.17

%

1.27

%

  Average common shareholders' equity

9.37

%

7.99

%

9.10

%

9.18

%

9.79

%

Taxable-equivalent net interest income

$

689,148

665,426

687,847

674,900

674,963

Yield on average earning assets

3.52

%

3.54

%

3.44

%

3.59

%

3.73

%

Cost of interest-bearing liabilities

.55

%

.57

%

.52

%

.54

%

.51

%

Net interest spread

2.97

%

2.97

%

2.92

%

3.05

%

3.22

%

Contribution of interest-free funds

.20

%

.20

%

.18

%

.18

%

.18

%

Net interest margin

3.17

%

3.17

%

3.10

%

3.23

%

3.40

%

Net charge-offs to average total 

  net loans (annualized)

.13

%

.22

%

.19

%

.17

%

.18

%

Net operating results (3)

Net operating income

$

290,341

245,776

281,929

279,838

289,974

Diluted net operating earnings per common share

2.01

1.68

1.95

1.94

2.02

Return on (annualized):

  Average tangible assets

1.24

%

1.08

%

1.18

%

1.24

%

1.35

%

  Average tangible common equity

13.76

%

11.90

%

13.55

%

13.80

%

14.92

%

Efficiency ratio

58.23

%

61.46

%

57.84

%

58.44

%

58.20

%

June 30,

March 31,

December 31,

September 30,

June 30,

Loan quality

2015

2015

2014

2014

2014

Nonaccrual loans

$

797,146

790,586

799,151

847,784

880,134

Real estate and other foreclosed assets

63,734

62,578

63,635

67,629

59,793

  Total nonperforming assets

$

860,880

853,164

862,786

915,413

939,927

Accruing loans past due 90 days or more (4)

$

238,568

236,621

245,020

312,990

289,016

Government guaranteed loans included in totals

  above:

  Nonaccrual loans

$

58,259

60,508

69,095

68,586

81,817

  Accruing loans past due 90 days or more

206,775

193,618

217,822

265,333

275,846

Renegotiated loans

$

197,145

198,911

202,633

209,099

270,223

Acquired accruing loans past due 90 

  days or more (5)

$

78,591

80,110

110,367

132,147

134,580

Purchased impaired loans (6):

  Outstanding customer balance

$

294,381

335,079

369,080

429,915

504,584

  Carrying amount

169,240

184,018

197,737

236,662

282,517

Nonaccrual loans to total net loans

1.17

%

1.18

%

1.20

%

1.29

%

1.36

%

Allowance for credit losses to total loans

1.36

%

1.37

%

1.38

%

1.40

%

1.42

%

(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

Six months ended

June 30

June 30

Dollars in thousands

2015

2014

Change

2015

2014

Change

Interest income

$

760,354

734,290

4

%

$

1,498,441

1,457,242

3

%

Interest expense

77,226

65,176

18

155,725

131,695

18

Net interest income

683,128

669,114

2

1,342,716

1,325,547

1

Provision for credit losses

30,000

30,000

-

68,000

62,000

10

Net interest income after

   provision for credit losses

653,128

639,114

2

1,274,716

1,263,547

1

Other income

     Mortgage banking revenues

102,602

95,656

7

204,203

175,705

16

     Service charges on deposit accounts

105,257

107,368

-2

207,601

211,566

-2

     Trust income 

118,598

129,893

-9

242,332

251,145

-4

     Brokerage services income

16,861

17,487

-4

32,322

33,987

-5

     Trading account and foreign exchange gains

6,046

8,042

-25

12,277

14,489

-15

     Loss on bank investment securities

(10)

-

-

(108)

-

-

     Equity in earnings of Bayview Lending Group LLC

(3,131)

(4,055)

-

(7,322)

(8,509)

-

     Other revenues from operations

150,804

102,021

48

245,925

198,136

24

          Total other income

497,027

456,412

9

937,230

876,519

7

Other expense

     Salaries and employee benefits

361,657

339,713

6

751,550

711,039

6

     Equipment and net occupancy

66,852

68,084

-2

133,322

139,251

-4

     Printing, postage and supplies

9,305

9,180

1

18,895

20,136

-6

     Amortization of core deposit and other 

        intangible assets

5,965

9,234

-35

12,758

19,296

-34

     FDIC assessments

10,801

15,155

-29

21,461

30,643

-30

     Other costs of operations

242,048

226,294

7

445,017

437,529

2

          Total other expense

696,628

667,660

4

1,383,003

1,357,894

2

Income before income taxes

453,527

427,866

6

828,943

782,172

6

Applicable income taxes

166,839

143,530

16

300,642

268,819

12

Net income

$

286,688

284,336

1

%

$

528,301

513,353

3

%

 

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

Three months ended

June 30,

March 31,

December 31,

September 30,

June 30,

Dollars in thousands

2015

2015

2014

2014

2014

Interest income

$

760,354

738,087

756,612

743,023

734,290

Interest expense

77,226

78,499

74,772

73,964

65,176

Net interest income

683,128

659,588

681,840

669,059

669,114

Provision for credit losses

30,000

38,000

33,000

29,000

30,000

Net interest income after

   provision for credit losses

653,128

621,588

648,840

640,059

639,114

Other income

     Mortgage banking revenues

102,602

101,601

93,675

93,532

95,656

     Service charges on deposit accounts

105,257

102,344

106,319

110,071

107,368

     Trust income

118,598

123,734

128,442

128,671

129,893

     Brokerage services income

16,861

15,461

15,809

17,416

17,487

     Trading account and foreign exchange gains

6,046

6,231

8,397

6,988

8,042

     Loss on bank investment securities

(10)

(98)

-

-

-

     Equity in earnings of Bayview Lending Group LLC

(3,131)

(4,191)

(4,049)

(4,114)

(4,055)

     Other revenues from operations

150,804

95,121

103,050

98,547

102,021

          Total other income

497,027

440,203

451,643

451,111

456,412

Other expense

     Salaries and employee benefits

361,657

389,893

345,135

348,776

339,713

     Equipment and net occupancy

66,852

66,470

62,335

67,713

68,084

     Printing, postage and supplies

9,305

9,590

8,881

9,184

9,180

     Amortization of core deposit and other 

        intangible assets

5,965

6,793

7,170

7,358

9,234

     FDIC assessments

10,801

10,660

11,695

13,193

15,155

     Other costs of operations

242,048

202,969

231,005

219,135

226,294

          Total other expense

696,628

686,375

666,221

665,359

667,660

Income before income taxes

453,527

375,416

434,262

425,811

427,866

Applicable income taxes

166,839

133,803

156,713

150,467

143,530

Net income

$

286,688

241,613

277,549

275,344

284,336

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

June 30

Dollars in thousands

2015

2014

Change

ASSETS

Cash and due from banks

$

1,347,858

1,827,197

-26

%

Interest-bearing deposits at banks

4,045,852

3,032,530

33

Federal funds sold

3,000

90,239

-97

Trading account assets

277,009

313,325

-12

Investment securities

14,751,637

12,120,195

22

Loans and leases:

   Commercial, financial, etc.

20,111,028

19,105,892

5

   Real estate - commercial

28,442,488

26,374,274

8

   Real estate - consumer

8,444,542

8,656,766

-2

   Consumer

11,133,194

10,610,761

5

     Total loans and leases, net of unearned discount

68,131,252

64,747,693

5

        Less: allowance for credit losses

929,987

917,666

1

  Net loans and leases

67,201,265

63,830,027

5

Goodwill

3,513,325

3,524,625

-

Core deposit and other intangible assets

22,269

49,555

-55

Other assets

5,917,861

6,047,309

-2

  Total assets

$

97,080,076

90,835,002

7

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$

27,674,588

26,088,763

6

%

Interest-bearing deposits

44,787,590

43,502,602

3

Deposits at Cayman Islands office

167,441

237,890

-30

  Total deposits

72,629,619

69,829,255

4

Short-term borrowings

153,299

161,631

-5

Accrued interest and other liabilities

1,453,249

1,283,430

13

Long-term borrowings

10,175,912

7,391,931

38

  Total liabilities

84,412,079

78,666,247

7

Shareholders' equity:

   Preferred

1,231,500

1,231,500

-

   Common (1)

11,436,497

10,937,255

5

     Total shareholders' equity

12,667,997

12,168,755

4

  Total liabilities and shareholders' equity

$

97,080,076

90,835,002

7

%

(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $217.5 million at June 30, 2015

  and accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30, 2014.

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

June 30,

March 31,

December 31,

September 30,

June 30,

Dollars in thousands

2015

2015

2014

2014

2014

ASSETS

Cash and due from banks

$

1,347,858

1,269,816

1,289,965

1,445,877

1,827,197

Interest-bearing deposits at banks

4,045,852

6,291,491

6,470,867

7,676,064

3,032,530

Federal funds sold

3,000

97,037

83,392

77,766

90,239

Trading account assets

277,009

363,085

308,175

296,913

313,325

Investment securities

14,751,637

14,393,270

12,993,542

13,348,368

12,120,195

Loans and leases:

   Commercial, financial, etc.

20,111,028

19,775,494

19,461,292

19,112,009

19,105,892

   Real estate - commercial

28,442,488

27,845,710

27,567,569

26,942,847

26,374,274

   Real estate - consumer

8,444,542

8,504,119

8,657,301

8,663,408

8,656,766

   Consumer

11,133,194

10,973,719

10,982,794

10,854,095

10,610,761

     Total loans and leases, net of unearned discount

68,131,252

67,099,042

66,668,956

65,572,359

64,747,693

        Less: allowance for credit losses

929,987

921,373

919,562

918,633

917,666

  Net loans and leases

67,201,265

66,177,669

65,749,394

64,653,726

63,830,027

Goodwill

3,513,325

3,524,625

3,524,625

3,524,625

3,524,625

Core deposit and other intangible assets

22,269

28,234

35,027

42,197

49,555

Other assets

5,917,861

6,232,556

6,230,548

6,162,806

6,047,309

  Total assets

$

97,080,076

98,377,783

96,685,535

97,228,342

90,835,002

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$

27,674,588

27,181,120

26,947,880

27,440,524

26,088,763

Interest-bearing deposits

44,787,590

46,234,455

46,457,591

46,659,442

43,502,602

Deposits at Cayman Islands office

167,441

178,545

176,582

241,536

237,890

  Total deposits

72,629,619

73,594,120

73,582,053

74,341,502

69,829,255

Short-term borrowings

153,299

193,495

192,676

164,609

161,631

Accrued interest and other liabilities

1,453,249

1,552,724

1,567,951

1,327,524

1,283,430

Long-term borrowings

10,175,912

10,509,143

9,006,959

9,061,391

7,391,931

  Total liabilities

84,412,079

85,849,482

84,349,639

84,895,026

78,666,247

Shareholders' equity:

   Preferred

1,231,500

1,231,500

1,231,500

1,231,500

1,231,500

   Common (1)

11,436,497

11,296,801

11,104,396

11,101,816

10,937,255

     Total shareholders' equity

12,667,997

12,528,301

12,335,896

12,333,316

12,168,755

  Total liabilities and shareholders' equity

$

97,080,076

98,377,783

96,685,535

97,228,342

90,835,002

(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $217.5 million at June 30, 2015, $152.5 million at

  March 31, 2015 and $181.0 million at December 31, 2014, and accumulated other comprehensive income, net of applicable income tax

  effect, of $12.5 million at September 30, 2014 and $40.3 million at June 30, 2014.

 

 

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

 and Annualized Taxable-equivalent Rates

Three months ended

Change in balance

Six months ended

June 30,

June 30,

March 31,

June 30, 2015 from

June 30

Dollars in millions

2015

2014

2015

June 30,

March 31,

2015

2014

Change in

Balance

Rate

Balance

Rate

Balance

Rate

2014

2015

Balance

Rate

Balance 

Rate

balance

ASSETS

Interest-bearing deposits at banks 

$

5,326

.25

%

4,080

.25

%

5,073

.25

%

31

%

5

%

$

5,200

.25

%

3,587

.25

%

45

%

Federal funds sold

39

.10

90

.07

97

.10

-57

-60

68

.10

95

.07

-28

Trading account assets

103

.92

84

1.25

79

2.87

23

31

91

1.76

78

1.91

17

Investment securities

14,195

2.68

10,959

3.19

13,376

2.67

30

6

13,787

2.67

10,117

3.26

36

Loans and leases, net of unearned discount

  Commercial, financial, etc.

19,973

3.18

18,978

3.34

19,457

3.21

5

3

19,717

3.19

18,728

3.35

5

  Real estate - commercial

28,208

4.19

26,140

4.22

27,596

4.18

8

2

27,904

4.18

26,141

4.31

7

  Real estate - consumer

8,447

4.19

8,746

4.36

8,572

4.15

-3

-1

8,509

4.17

8,795

4.27

-3

  Consumer

11,042

4.46

10,479

4.52

10,962

4.49

5

1

11,002

4.48

10,390

4.56

6

     Total loans and leases, net

67,670

3.96

64,343

4.05

66,587

3.97

5

2

67,132

3.97

64,054

4.09

5

  Total earning assets

87,333

3.52

79,556

3.73

85,212

3.54

10

2

86,278

3.53

77,931

3.80

11

Goodwill

3,514

3,525

3,525

3,520

3,525

Core deposit and other intangible assets

25

53

31

-54

-21

28

59

-52

Other assets

6,726

6,739

7,124

-6

6,924

6,763

2

  Total assets

$

97,598

89,873

95,892

9

%

2

%

$

96,750

88,278

10

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

  NOW accounts

$

1,333

.11

1,026

.13

1,121

.11

30

%

19

%

$

1,228

.11

1,007

.13

22

%

  Savings deposits

41,712

.10

39,478

.11

41,525

.10

6

41,619

.10

38,921

.12

7

  Time deposits

2,948

.50

3,350

.46

3,017

.50

-12

-2

2,982

.50

3,404

.46

-12

  Deposits at Cayman Islands office

212

.28

339

.21

224

.27

-38

-5

218

.27

360

.22

-39

     Total interest-bearing deposits

46,205

.13

44,193

.14

45,887

.13

5

1

46,047

.13

43,692

.15

5

Short-term borrowings

195

.07

220

.05

196

.07

-11

-1

196

.07

242

.05

-19

Long-term borrowings

10,164

2.47

6,525

3.05

9,835

2.64

56

3

10,000

2.55

6,213

3.25

61

Total interest-bearing liabilities

56,564

.55

50,938

.51

55,918

.57

11

1

56,243

.56

50,147

.53

12

Noninterest-bearing deposits

26,753

25,466

25,811

5

4

26,285

24,807

6

Other liabilities

1,645

1,430

1,704

15

-3

1,674

1,479

13

  Total liabilities

84,962

77,834

83,433

9

2

84,202

76,433

10

Shareholders' equity

12,636

12,039

12,459

5

1

12,548

11,845

6

  Total liabilities and shareholders' equity

$

97,598

89,873

95,892

9

%

2

%

$

96,750

88,278

10

%

Net interest spread

2.97

3.22

2.97

2.97

3.27

Contribution of interest-free funds

.20

.18

.20

.20

.19

Net interest margin 

3.17

%

3.40

%

3.17

%

3.17

%

3.46

%

 

 

 

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

Three months ended

Six months ended

June 30

June 30

2015

2014

2015

2014

Income statement data

In thousands, except per share

Net income

Net income

$

286,688

284,336

$

528,301

513,353

Amortization of core deposit and other

  intangible assets (1)

3,653

5,638

7,816

11,783

  Net operating income

$

290,341

289,974

$

536,117

525,136

Earnings per common share

Diluted earnings per common share

$

1.98

1.98

$

3.63

3.59

Amortization of core deposit and other

  intangible assets (1)

.03

.04

.06

.09

  Diluted net operating earnings per common share

$

2.01

2.02

$

3.69

3.68

Other expense

Other expense

$

696,628

667,660

$

1,383,003

1,357,894

Amortization of core deposit and other

  intangible assets

(5,965)

(9,234)

(12,758)

(19,296)

  Noninterest operating expense

$

690,663

658,426

$

1,370,245

1,338,598

Efficiency ratio

Noninterest operating expense (numerator)

$

690,663

658,426

$

1,370,245

1,338,598

Taxable-equivalent net interest income

689,148

674,963

1,354,574

1,337,341

Other income

497,027

456,412

937,230

876,519

Less:  Loss on bank investment securities

(10)

-

(108)

-

Denominator

$

1,186,185

1,131,375

$

2,291,912

2,213,860

Efficiency ratio

58.23

%

58.20

%

59.79

%

60.46

%

Balance sheet data

In millions

Average assets

Average assets

$

97,598

89,873

$

96,750

88,278

Goodwill

(3,514)

(3,525)

(3,520)

(3,525)

Core deposit and other intangible assets

(25)

(53)

(28)

(59)

Deferred taxes

8

16

9

18

  Average tangible assets

$

94,067

86,311

$

93,211

84,712

Average common equity

Average total equity

$

12,636

12,039

$

12,548

11,845

Preferred stock

(1,232)

(1,231)

(1,232)

(1,152)

  Average common equity

11,404

10,808

11,316

10,693

Goodwill

(3,514)

(3,525)

(3,520)

(3,525)

Core deposit and other intangible assets

(25)

(53)

(28)

(59)

Deferred taxes

8

16

9

18

  Average tangible common equity

$

7,873

7,246

$

7,777

7,127

At end of quarter

Total assets

Total assets

$

97,080

90,835

Goodwill

(3,513)

(3,525)

Core deposit and other intangible assets

(22)

(49)

Deferred taxes

7

15

  Total tangible assets

$

93,552

87,276

Total common equity

Total equity

$

12,668

12,169

Preferred stock

(1,232)

(1,232)

Undeclared dividends - cumulative preferred stock

(3)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends

11,433

10,934

Goodwill

(3,513)

(3,525)

Core deposit and other intangible assets

(22)

(49)

Deferred taxes

7

15

  Total tangible common equity

$

7,905

7,375

(1) After any related tax effect.

 

 

 

M&T BANK CORPORATION

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

Three months ended

June 30,

March 31,

December 31,

September 30,

June 30,

2015

2015

2014

2014

2014

Income statement data

In thousands, except per share

Net income

Net income

$

286,688

241,613

277,549

275,344

284,336

Amortization of core deposit and other

  intangible assets (1)

3,653

4,163

4,380

4,494

5,638

  Net operating income

$

290,341

245,776

281,929

279,838

289,974

Earnings per common share

Diluted earnings per common share

$

1.98

1.65

1.92

1.91

1.98

Amortization of core deposit and other

  intangible assets (1)

.03

.03

.03

.03

.04

  Diluted net operating earnings per common share

$

2.01

1.68

1.95

1.94

2.02

Other expense

Other expense

$

696,628

686,375

666,221

665,359

667,660

Amortization of core deposit and other

  intangible assets

(5,965)

(6,793)

(7,170)

(7,358)

(9,234)

  Noninterest operating expense

$

690,663

679,582

659,051

658,001

658,426

Efficiency ratio

Noninterest operating expense (numerator)

$

690,663

679,582

659,051

658,001

658,426

Taxable-equivalent net interest income

689,148

665,426

687,847

674,900

674,963

Other income

497,027

440,203

451,643

451,111

456,412

Less:  Loss on bank investment securities

(10)

(98)

-

-

-

Denominator

$

1,186,185

1,105,727

1,139,490

1,126,011

1,131,375

Efficiency ratio

58.23

%

61.46

%

57.84

%

58.44

%

58.20

%

Balance sheet data

In millions

Average assets

Average assets

$

97,598

95,892

98,644

93,245

89,873

Goodwill

(3,514)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets 

(25)

(31)

(38)

(45)

(53)

Deferred taxes

8

10

12

14

16

  Average tangible assets

$

94,067

92,346

95,093

89,689

86,311

Average common equity

Average total equity

$

12,636

12,459

12,442

12,247

12,039

Preferred stock

(1,232)

(1,232)

(1,231)

(1,232)

(1,231)

  Average common equity

11,404

11,227

11,211

11,015

10,808

Goodwill

(3,514)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(25)

(31)

(38)

(45)

(53)

Deferred taxes

8

10

12

14

16

  Average tangible common equity

$

7,873

7,681

7,660

7,459

7,246

At end of quarter

Total assets

Total assets

$

97,080

98,378

96,686

97,228

90,835

Goodwill

(3,513)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(22)

(28)

(35)

(42)

(49)

Deferred taxes

7

9

11

13

15

  Total tangible assets

$

93,552

94,834

93,137

93,674

87,276

Total common equity

Total equity

$

12,668

12,528

12,336

12,333

12,169

Preferred stock

(1,232)

(1,232)

(1,231)

(1,232)

(1,232)

Undeclared dividends - cumulative preferred stock 

(3)

(2)

(3)

(2)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends

11,433

11,294

11,102

11,099

10,934

Goodwill

(3,513)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(22)

(28)

(35)

(42)

(49)

Deferred taxes

7

9

11

13

15

  Total tangible common equity

$

7,905

7,750

7,553

7,545

7,375

(1) After any related tax effect.

 

 

SOURCE M&T Bank Corporation



RELATED LINKS

http://www.mandtbank.com