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Press release from PR Newswire

M&T Bank Corporation Announces 2013 Fourth Quarter And Full-Year Profits

Friday, January 17, 2014

M&T Bank Corporation Announces 2013 Fourth Quarter And Full-Year Profits

08:04 EST Friday, January 17, 2014

BUFFALO, N.Y., Jan. 17, 2014 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2013.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2013 were $1.74, compared with $2.16 in the year-earlier quarter and $2.11 in the third quarter of 2013.  GAAP-basis net income in the recent quarter totaled $246 million, compared with $296 million and $294 million in the fourth quarter of 2012 and the third quarter of 2013, respectively.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was 1.14% and 8.93%, respectively, compared with 1.45% and 12.10%, respectively, in the year-earlier quarter and 1.39% and 11.06%, respectively, in the third quarter of 2013.

For the full year of 2013, diluted earnings per common share were $8.38, up 11% from $7.54 for 2012.  Net income rose to $1.16 billion in 2013 from $1.03 billion in 2012.  Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2013 was 1.39% and 11.18%, respectively, compared with 1.29% and 10.96%, respectively, in 2012.  

Reflecting on M&T's performance in 2013, Rene F. Jones, Executive Vice President and Chief Financial Officer, commented, "While expenses were elevated by investments in our infrastructure during 2013, M&T achieved a net operating return on average tangible common shareholders' equity of 18.17% for the full year.  Our core capital position strengthened, as the Tier 1 common ratio grew to 9.25% at the 2013 year-end, up 17 basis points from September 30 and 168 basis points higher than at December 31, 2012.  We are also pleased with the continued improvement in credit quality.  M&T's liquidity and risk profile was enhanced during the year through several actions, including replacing less liquid investment securities with Ginnie Mae securities and the securitization of loans held in the loan portfolio.  During the final two quarters of 2013 we invested heavily in several key areas, including risk management, capital planning and stress testing, regulatory compliance, and other operational and technology initiatives.  Those investments will better position M&T 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 expenses and gains associated with merging acquired operations into M&T, since such amounts are considered by management to be "nonoperating" in nature.  Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.  Reconciliations of GAAP to non-GAAP measures are provided in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $1.79 in the recent quarter, compared with $2.23 in the year-earlier period and $2.16 in the third quarter of 2013.  Net operating income for the fourth quarter of 2013 was $252 million, compared with $305 million and $301 million in the final quarter of 2012 and the third quarter of 2013, respectively.  For the three months ended December 31, 2013, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.22% and 14.12%, respectively, compared with 1.56% and 20.46% in the corresponding 2012 period and 1.48% and 17.64%, respectively, in the third quarter of 2013.

For the year ended December 31, 2013, diluted net operating earnings per common share increased 10% to $8.66 from $7.88 in 2012.  Net operating income for 2013 and 2012 totaled $1.20 billion and $1.07 billion, respectively.  Net operating income in 2013 expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.50% and 18.17%, respectively, compared with 1.40% and 19.42%, respectively, in 2012.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income aggregated $673 million in the fourth quarter of 2013, compared with $679 million in the immediately preceding quarter.  That decline resulted from a five basis point narrowing of the net interest margin to 3.56% in the recent quarter from 3.61% in 2013's third quarter, partially offset by an increase in average earning assets.  Taxable-equivalent net interest income in the recent quarter was little changed from the $674 million earned in the fourth quarter of 2012.  For the year ended December 31, 2013, net interest income on a taxable-equivalent basis rose 3% to $2.70 billion from $2.62 billion in 2012 as a result of a $3.7 billion or 5% increase in average earning assets, partially offset by an eight basis point narrowing of the net interest margin to 3.65% in 2013 from 3.73% in 2012.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $42 million during the fourth quarter of 2013, down from $49 million in the year-earlier quarter and $48 million in the third quarter of 2013.  The provision was equal to net charge-offs in the third and fourth quarters of 2013, and exceeded net charge-offs by $5 million in the fourth quarter of 2012.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .26% and .27% in the final quarter of 2013 and 2012, respectively, and .29% in 2013's third quarter.  The provision for credit losses declined 9% to $185 million for the year ended December 31, 2013 from $204 million in 2012.  Net loan charge-offs for 2013 totaled $183 million, or .28% of average loans outstanding, improved from $186 million, or .30% of average loans in 2012.

Loans classified as nonaccrual declined to $871 million, or 1.36% of total loans at December 31, 2013, from $1.01 billion or 1.52% a year earlier and $916 million or 1.44% at September 30, 2013.  Assets taken in foreclosure of defaulted loans were $67 million at December 31, 2013, down from $104 million and $89 million at December 31, 2012 and September 30, 2013, respectively.  

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses.  As a result of those analyses, the allowance totaled $917 million at December 31, 2013, compared with $926 million a year earlier and $916 million at September 30, 2013.  The allowance expressed as a percentage of outstanding loans was 1.43% at the recent quarter-end, compared with 1.39% at December 31, 2012 and 1.44% at September 30, 2013.  

Noninterest Income and Expense.  Noninterest income aggregated $446 million in the recently completed quarter, compared with $453 million and $477 million in the final quarter of 2012 and the third quarter of 2013, respectively.  Reflected in noninterest income in the third quarter of 2013 were gains from loan securitization activities of $56 million.  Net losses from investment securities of $14 million were reflected in noninterest income in the fourth quarter of 2012, due to other-than-temporary impairment charges.  There were no similar gains or losses in 2013's final quarter. 

Excluding gains from securitization activities and losses from investment securities, noninterest income was $446 million in the recent quarter, compared with $468 million in the year-earlier quarter and $421 million in the third quarter of 2013.  As compared with the immediately preceding quarter, the recent quarter's improvement resulted largely from higher mortgage banking revenues, primarily related to increased servicing activities.  The decline in noninterest income as compared with the final 2012 quarter was predominantly due to lower mortgage banking revenues, partially offset by higher trust income.    

Noninterest income aggregated $1.87 billion and $1.67 billion during the years ended December 31, 2013 and 2012, respectively.  That rise was primarily the result of net gains on investment securities and gains on securitization activities, which aggregated $110 million in 2013, compared with net losses on investment securities of $48 million in 2012, supplemented by higher trust income in 2013.

Noninterest expense in the fourth quarter of 2013 totaled $703 million, up from $626 million in the year-earlier quarter and $659 million in 2013's third quarter.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets.  Exclusive of those expenses, noninterest operating expenses were $693 million in the recent quarter, up from $612 million and $648 million in the fourth quarter of 2012 and the third quarter of 2013, respectively.  The higher noninterest operating expenses in the recent quarter reflect increased costs for professional services largely associated with investments in M&T's infrastructure related to BSA/AML compliance, capital planning and stress testing, risk management, and operational and technology initiatives.  Those increases amounted to approximately $40 million when compared to the immediately preceding quarter and $50 million in comparison to the fourth quarter of 2012.  The higher level of expenses in the recent quarter as compared with the year-earlier quarter also reflects salaries associated with M&T's expanded residential mortgage loan sub-servicing activities.

For the year ended December 31, 2013, noninterest expense aggregated $2.60 billion, compared with $2.51 billion in the previous year.  Noninterest operating expenses were $2.54 billion in 2013 and $2.44 billion in 2012.  That increase was largely attributable to higher costs for professional services and salaries, partially offset by lower FDIC assessments.

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 61.9% in the recent quarter, compared with 53.6% in the year-earlier quarter and 56.0% in the third quarter of 2013.  The efficiency ratio for the full year of 2013 was unchanged from 2012 at 56.2%.   

Balance Sheet.  M&T had total assets of $85.1 billion at December 31, 2013, up from $83.0 billion a year earlier.  Loans and leases, net of unearned discount, totaled $64.1 billion at the 2013 year-end, compared with $66.6 billion at December 31, 2012.  After considering the impact of the loan securitization transactions during 2013 and a $919 million decline in loans held for sale, M&T experienced growth in its loan portfolio from December 31, 2012 to the 2013 year-end.  Total deposits were $67.1 billion at the recent year-end, $1.5 billion higher than $65.6 billion at December 31, 2012. 

Total shareholders' equity rose $1.1 billion or 11% to $11.3 billion at December 31, 2013 from $10.2 billion a year earlier, representing 13.31% and 12.29%, respectively, of total assets.  Common shareholders' equity was $10.4 billion, or $80.00 per share, at December 31, 2013, compared with $9.3 billion, or $72.73 per share, at December 31, 2012.  Tangible equity per common share rose 18% to $52.64 at December 31, 2013 from $44.61 a year earlier.  Common shareholders' equity per share and tangible equity per share were $77.81 and $50.32, respectively, at September 30, 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 tangible common equity to tangible assets ratio was 8.42% at December 31, 2013, compared with 7.20% and 8.11% at December 31, 2012 and September 30, 2013, respectively. M&T's estimated Tier 1 common ratio, a regulatory capital measure, rose to 9.25% at December 31, 2013 from 7.57% and 9.08% at December 31, 2012 and September 30, 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 9.01% as of December 31, 2013.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full-year financial results today at 10:30 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276.  International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID #31841565.  The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will  be available until January 20, 2014 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #31841565.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm. 

M&T is a financial holding company headquartered in Buffalo, New York.  M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia.  Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

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

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

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

 

INVESTOR CONTACT:

Donald J. MacLeod

(716) 842-5138

MEDIA CONTACT:

C. Michael Zabel

(716) 842-5385

 

 

M&T BANK CORPORATION

Financial Highlights

Three months ended

Year ended

Amounts in thousands,

December 31

December 31

 except per share

2013

2012

Change

2013

2012

Change

Performance

Net income 

$

245,722

296,193

-17

%

$

1,162,780

1,029,498

13

%

Net income available to common shareholders 

227,449

276,605

-18

%

1,086,481

953,429

14

%

Per common share:

  Basic earnings 

$

1.76

2.18

-19

%

$

8.44

7.57

11

%

  Diluted earnings 

1.74

2.16

-19

%

8.38

7.54

11

%

  Cash dividends 

$

.70

.70

-

$

2.80

2.80

-

Common shares outstanding:

  Average - diluted (1) 

130,464

127,800

2

%

129,603

126,405

3

%

  Period end (2) 

130,564

128,234

2

%

130,564

128,234

2

%

Return on (annualized):

  Average total assets 

1.14

%

1.45

%

1.39

%

1.29

%

  Average common shareholders' equity 

8.93

%

12.10

%

11.18

%

10.96

%

Taxable-equivalent net interest income 

$

672,683

673,929

-

$

2,698,200

2,624,907

3

%

Yield on average earning assets 

3.92

%

4.17

%

4.03

%

4.22

%

Cost of interest-bearing liabilities 

.56

%

.67

%

.60

%

.74

%

Net interest spread 

3.36

%

3.50

%

3.43

%

3.48

%

Contribution of interest-free funds 

.20

%

.24

%

.22

%

.25

%

Net interest margin 

3.56

%

3.74

%

3.65

%

3.73

%

Net charge-offs to average total 

  net loans (annualized) 

.26

%

.27

%

.28

%

.30

%

Net operating results (3)

Net operating income 

$

252,097

304,657

-17

%

$

1,198,935

1,072,510

12

%

Diluted net operating earnings per common share

1.79

2.23

-20

%

8.66

7.88

10

%

Return on (annualized):

  Average tangible assets 

1.22

%

1.56

%

1.50

%

1.40

%

  Average tangible common equity 

14.12

%

20.46

%

18.17

%

19.42

%

Efficiency ratio 

61.90

%

53.63

%

56.16

%

56.19

%

At December 31

Loan quality

2013

2012

Change

Nonaccrual loans 

$

871,280

1,013,176

-14

%

Real estate and other foreclosed assets 

66,875

104,279

-36

%

  Total nonperforming assets 

$

938,155

1,117,455

-16

%

Accruing loans past due 90 days or more (4) 

$

368,510

358,397

3

%

Government guaranteed loans included in totals

  above:

  Nonaccrual loans 

$

63,647

57,420

11

%

  Accruing loans past due 90 days or more 

297,918

316,403

-6

%

Renegotiated loans 

$

257,092

271,971

-5

%

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

$

129,782

166,554

-22

%

Purchased impaired loans (6):

  Outstanding customer balance 

$

579,975

828,571

-30

%

  Carrying amount 

330,792

447,114

-26

%

Nonaccrual loans to total net loans 

1.36

%

1.52

%

Allowance for credit losses to total loans 

1.43

%

1.39

%

(1)  Includes common stock equivalents.

(2)  Includes common stock issuable under deferred compensation plans.

(3)  Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)  Excludes acquired loans. 

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

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

 

 

M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

Three months ended

Amounts in thousands,

December 31,

September 30,

June 30,

March 31,

December 31,

 except per share

2013

2013

2013

2013

2012

Performance

Net income

$

245,722

294,479

348,466

274,113

296,193

Net income available to common shareholders 

227,449

275,356

328,557

255,096

276,605

Per common share:

  Basic earnings 

$

1.76

2.13

2.56

2.00

2.18

  Diluted earnings 

1.74

2.11

2.55

1.98

2.16

  Cash dividends 

$

.70

.70

.70

.70

.70

Common shares outstanding:

  Average - diluted (1) 

130,464

130,265

129,017

128,636

127,800

  Period end (2)

130,564

130,241

129,464

128,999

128,234

Return on (annualized):

  Average total assets 

1.14

%

1.39

%

1.68

%

1.36

%

1.45

%

  Average common shareholders' equity 

8.93

%

11.06

%

13.78

%

11.10

%

12.10

%

Taxable-equivalent net interest income 

$

672,683

679,213

683,804

662,500

673,929

Yield on average earning assets 

3.92

%

3.98

%

4.10

%

4.13

%

4.17

%

Cost of interest-bearing liabilities 

.56

%

.58

%

.62

%

.64

%

.67

%

Net interest spread 

3.36

%

3.40

%

3.48

%

3.49

%

3.50

%

Contribution of interest-free funds 

.20

%

.21

%

.23

%

.22

%

.24

%

Net interest margin 

3.56

%

3.61

%

3.71

%

3.71

%

3.74

%

Net charge-offs to average total 

  net loans (annualized) 

.26

%

.29

%

.35

%

.23

%

.27

%

Net operating results (3)

Net operating income 

$

252,097

300,968

360,734

285,136

304,657

Diluted net operating earnings per common share 

1.79

2.16

2.65

2.06

2.23

Return on (annualized):

  Average tangible assets 

1.22

%

1.48

%

1.81

%

1.48

%

1.56

%

  Average tangible common equity 

14.12

%

17.64

%

22.72

%

18.71

%

20.46

%

Efficiency ratio 

61.90

%

56.03

%

50.92

%

55.88

%

53.63

%

December 31,

September 30,

June 30,

March 31,

December 31,

Loan quality

2013

2013

2013

2013

2012

Nonaccrual loans 

$

871,280

915,871

964,906

1,052,794

1,013,176

Real estate and other foreclosed assets 

66,875

89,203

82,088

95,680

104,279

  Total nonperforming assets 

$

938,155

1,005,074

1,046,994

1,148,474

1,117,455

Accruing loans past due 90 days or more (4) 

$

368,510

339,792

340,467

331,283

358,397

Government guaranteed loans included in totals

  above:

  Nonaccrual loans 

$

63,647

68,519

69,508

63,385

57,420

  Accruing loans past due 90 days or more 

297,918

320,732

315,281

311,579

316,403

Renegotiated loans 

$

257,092

259,301

263,351

272,285

271,971

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

$

129,782

153,585

155,686

157,068

166,554

Purchased impaired loans (6):

  Outstanding customer balance 

$

579,975

648,118

725,196

790,048

828,571

  Carrying amount 

330,792

357,337

394,697

425,232

447,114

Nonaccrual loans to total net loans 

1.36

%

1.44

%

1.46

%

1.60

%

1.52

%

Allowance for credit losses to total loans 

1.43

%

1.44

%

1.41

%

1.41

%

1.39

%

(1)  Includes common stock equivalents.

(2)  Includes common stock issuable under deferred compensation plans.

(3)  Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects.  Reconciliations of net income with net operating income appear herein.

(4)  Excludes acquired loans. 

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

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

 

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

Three months ended

Year ended

December 31

December 31

Dollars in thousands

2013

2012

Change

2013

2012

Change

Interest income 

$

734,466

745,353

-1

%

$

2,957,334

2,941,685

1

%

Interest expense 

67,982

77,931

-13

284,105

343,169

-17

Net interest income 

666,484

667,422

-

2,673,229

2,598,516

3

Provision for credit losses 

42,000

49,000

-14

185,000

204,000

-9

Net interest income after

   provision for credit losses 

624,484

618,422

1

2,488,229

2,394,516

4

Other income

     Mortgage banking revenues 

82,169

116,546

-29

331,265

349,064

-5

     Service charges on deposit accounts 

110,436

112,364

-2

446,941

446,698

-

     Trust income 

125,876

116,915

8

496,008

471,852

5

     Brokerage services income 

15,807

14,872

6

65,647

59,059

11

     Trading account and foreign exchange gains 

13,690

10,356

32

40,828

35,634

15

     Gain on bank investment securities 

-

-

-

56,457

9

-

     Other-than-temporary impairment losses 

        recognized in earnings 

-

(14,491)

-

(9,800)

(47,822)

-

     Equity in earnings of Bayview Lending Group LLC 

(6,136)

(4,941)

-

(16,126)

(21,511)

-

     Other revenues from operations 

104,404

101,543

3

453,985

374,287

21

          Total other income 

446,246

453,164

-2

1,865,205

1,667,270

12

Other expense

     Salaries and employee benefits 

336,159

323,010

4

1,355,178

1,314,540

3

     Equipment and net occupancy 

68,670

62,884

9

264,327

257,551

3

     Printing, postage and supplies 

8,808

10,417

-15

39,557

41,929

-6

     Amortization of core deposit and other 

        intangible assets 

10,439

13,865

-25

46,912

60,631

-23

     FDIC assessments 

17,574

23,398

-25

69,584

101,110

-31

     Other costs of operations  

261,422

192,572

36

820,327

733,499

12

          Total other expense 

703,072

626,146

12

2,595,885

2,509,260

3

Income before income taxes 

367,658

445,440

-17

1,757,549

1,552,526

13

Applicable income taxes 

121,936

149,247

-18

594,769

523,028

14

Net income 

$

245,722

296,193

-17

%

$

1,162,780

1,029,498

13

%

 

 

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

2013

2013

2013

2013

2012

Interest income 

$

734,466

742,686

750,207

729,975

745,353

Interest expense 

67,982

69,578

72,620

73,925

77,931

Net interest income 

666,484

673,108

677,587

656,050

667,422

Provision for credit losses 

42,000

48,000

57,000

38,000

49,000

Net interest income after

   provision for credit losses 

624,484

625,108

620,587

618,050

618,422

Other income

     Mortgage banking revenues 

82,169

64,731

91,262

93,103

116,546

     Service charges on deposit accounts 

110,436

113,839

111,717

110,949

112,364

     Trust income 

125,876

123,801

124,728

121,603

116,915

     Brokerage services income 

15,807

16,871

17,258

15,711

14,872

     Trading account and foreign exchange gains 

13,690

8,987

9,224

8,927

10,356

     Gain on bank investment securities 

-

-

56,457

-

-

     Other-than-temporary impairment losses 

        recognized in earnings 

-

-

-

(9,800)

(14,491)

     Equity in earnings of Bayview Lending Group LLC 

(6,136)

(3,881)

(2,453)

(3,656)

(4,941)

     Other revenues from operations 

104,404

153,040

100,496

96,045

101,543

          Total other income 

446,246

477,388

508,689

432,882

453,164

Other expense

     Salaries and employee benefits 

336,159

339,332

323,136

356,551

323,010

     Equipment and net occupancy 

68,670

66,220

64,278

65,159

62,884

     Printing, postage and supplies 

8,808

9,752

10,298

10,699

10,417

     Amortization of core deposit and other 

        intangible assets 

10,439

10,628

12,502

13,343

13,865

     FDIC assessments 

17,574

14,877

17,695

19,438

23,398

     Other costs of operations  

261,422

217,817

170,682

170,406

192,572

          Total other expense 

703,072

658,626

598,591

635,596

626,146

Income before income taxes 

367,658

443,870

530,685

415,336

445,440

Applicable income taxes 

121,936

149,391

182,219

141,223

149,247

Net income 

$

245,722

294,479

348,466

274,113

296,193

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

December 31

Dollars in thousands

2013

2012

Change

ASSETS

Cash and due from banks 

$

1,573,361

1,983,615

-21

%

Interest-bearing deposits at banks 

1,651,138

129,945

-

Federal funds sold and agreements

  to resell securities 

99,573

3,000

-

Trading account assets 

376,131

488,966

-23

Investment securities 

8,796,497

6,074,361

45

Loans and leases:

   Commercial, financial, etc. 

18,705,216

17,776,953

5

   Real estate - commercial 

26,148,208

25,993,790

1

   Real estate - consumer 

8,928,221

11,240,837

-21

   Consumer 

10,291,514

11,559,377

-11

     Total loans and leases, net of unearned discount 

64,073,159

66,570,957

-4

        Less: allowance for credit losses 

916,676

925,860

-1

  Net loans and leases 

63,156,483

65,645,097

-4

Goodwill 

3,524,625

3,524,625

-

Core deposit and other intangible assets 

68,851

115,763

-41

Other assets 

5,900,032

5,043,431

17

  Total assets 

$

85,146,691

83,008,803

3

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits 

$

24,661,007

24,240,802

2

%

Interest-bearing deposits 

42,134,859

40,325,932

4

Deposits at Cayman Islands office 

322,746

1,044,519

-69

  Total deposits 

67,118,612

65,611,253

2

Short-term borrowings 

260,455

1,074,482

-76

Accrued interest and other liabilities 

1,328,922

1,512,717

-12

Long-term borrowings 

5,108,870

4,607,758

11

  Total liabilities 

73,816,859

72,806,210

1

Shareholders' equity:

   Preferred 

881,500

872,500

1

   Common (1)  

10,448,332

9,330,093

12

     Total shareholders' equity 

11,329,832

10,202,593

11

  Total liabilities and shareholders' equity 

$

85,146,691

83,008,803

3

%

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $64.2 million

       at December 31, 2013 and $240.3 million at December 31, 2012.

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

December 31,

September 30,

June 30,

March 31,

December 31,

Dollars in thousands

2013

2013

2013

2013

2012

ASSETS

Cash and due from banks 

$

1,573,361

1,941,944

1,350,015

1,231,091

1,983,615

Interest-bearing deposits at banks 

1,651,138

1,925,811

2,555,354

1,304,770

129,945

Federal funds sold and agreements

  to resell securities 

99,573

117,809

124,487

594,976

3,000

Trading account assets 

376,131

371,370

378,235

420,144

488,966

Investment securities 

8,796,497

8,309,773

5,210,526

5,660,831

6,074,361

Loans and leases:

   Commercial, financial, etc. 

18,705,216

17,911,149

18,021,812

17,469,138

17,776,953

   Real estate - commercial 

26,148,208

26,345,267

26,116,394

25,944,819

25,993,790

   Real estate - consumer 

8,928,221

9,228,003

10,399,749

11,094,577

11,240,837

   Consumer 

10,291,514

10,174,623

11,433,911

11,415,733

11,559,377

     Total loans and leases, net of unearned discount 

64,073,159

63,659,042

65,971,866

65,924,267

66,570,957

        Less: allowance for credit losses 

916,676

916,370

927,065

927,117

925,860

  Net loans and leases 

63,156,483

62,742,672

65,044,801

64,997,150

65,645,097

Goodwill 

3,524,625

3,524,625

3,524,625

3,524,625

3,524,625

Core deposit and other intangible assets 

68,851

79,290

89,918

102,420

115,763

Other assets 

5,900,032

5,414,191

4,951,044

4,975,950

5,043,431

  Total assets 

$

85,146,691

84,427,485

83,229,005

82,811,957

83,008,803

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits 

$

24,661,007

24,150,771

24,074,815

23,603,971

24,240,802

Interest-bearing deposits 

42,134,859

42,084,860

41,302,212

41,219,679

40,325,932

Deposits at Cayman Islands office 

322,746

316,510

284,443

266,076

1,044,519

  Total deposits 

67,118,612

66,552,141

65,661,470

65,089,726

65,611,253

Short-term borrowings

260,455

246,019

307,740

374,593

1,074,482

Accrued interest and other liabilities 

1,328,922

1,491,797

1,421,067

1,530,118

1,512,717

Long-term borrowings 

5,108,870

5,121,326

5,122,398

5,394,563

4,607,758

  Total liabilities 

73,816,859

73,411,283

72,512,675

72,389,000

72,806,210

Shareholders' equity:

   Preferred 

881,500

879,010

876,796

874,627

872,500

   Common (1) 

10,448,332

10,137,192

9,839,534

9,548,330

9,330,093

     Total shareholders' equity 

11,329,832

11,016,202

10,716,330

10,422,957

10,202,593

  Total liabilities and shareholders' equity 

$

85,146,691

84,427,485

83,229,005

82,811,957

83,008,803

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $64.2 million at December 31, 2013, $198.1 million at September 30, 2013, $227.8 million at June 30, 2013, $226.0 million at March 31, 2013 and $240.3 million at December 31, 2012.

 

 

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, 2013 from

December 31,

Dollars in millions

2013

2012

2013

December 31,

September 30,

2013

2012

Change in

Balance

Rate

Balance

Rate

Balance

Rate

2012

2013

Balance

Rate

Balance 

Rate

balance

ASSETS

Interest-bearing deposits at banks 

$

2,948

.25

%

273

.15

%

2,646

.25

%

982

%

11

%

$

2,139

.24

%

528

.23

%

305

%

Federal funds sold and agreements

  to resell securities 

115

.07

3

.57

117

.08

-

-2

128

.09

4

.55

-

Trading account assets 

82

1.36

97

1.45

67

1.27

-15

23

78

1.91

96

1.45

-19

Investment securities 

8,354

3.32

6,295

3.31

6,979

3.31

33

20

6,615

3.32

6,969

3.44

-5

Loans and leases, net of unearned discount

  Commercial, financial, etc. 

18,096

3.41

16,995

3.68

17,798

3.50

6

2

17,736

3.54

16,336

3.71

9

  Real estate - commercial

26,231

4.48

25,332

4.50

26,129

4.51

4

-

26,083

4.53

24,907

4.50

5

  Real estate - consumer 

8,990

4.20

11,087

4.10

9,636

4.17

-19

-7

10,136

4.12

9,727

4.33

4

  Consumer 

10,233

4.60

11,597

4.69

11,295

4.57

-12

-9

11,098

4.60

11,732

4.77

-5

     Total loans and leases, net 

63,550

4.17

65,011

4.28

64,858

4.21

-2

-2

65,053

4.24

62,702

4.35

4

  Total earning assets 

75,049

3.92

71,679

4.17

74,667

3.98

5

1

74,013

4.03

70,299

4.22

5

Goodwill 

3,525

3,525

3,525

-

-

3,525

3,525

-

Core deposit and other intangible assets 

74

122

84

-40

-13

90

144

-37

Other assets 

6,682

6,040

5,735

11

17

6,034

6,015

-

  Total assets 

$

85,330

81,366

84,011

5

%

2

%

$

83,662

79,983

5

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

  NOW accounts 

$

933

.13

881

.14

924

.14

6

%

1

%

$

923

.14

856

.16

8

%

  Savings deposits 

38,079

.14

34,587

.19

36,990

.15

10

3

36,739

.15

33,398

.20

10

  Time deposits 

3,617

.51

4,727

.79

3,928

.62

-23

-8

4,045

.65

5,347

.86

-24

  Deposits at Cayman Islands office 

414

.21

763

.18

392

.22

-46

6

496

.21

605

.19

-18

     Total interest-bearing deposits 

43,043

.17

40,958

.26

42,234

.19

5

2

42,203

.20

40,206

.29

5

Short-term borrowings 

287

.06

677

.16

299

.08

-58

-4

390

.11

839

.15

-54

Long-term borrowings 

5,009

3.91

4,510

4.52

5,010

3.89

11

-

4,941

4.05

5,527

4.08

-11

Total interest-bearing liabilities 

48,339

.56

46,145

.67

47,543

.58

5

2

47,534

.60

46,572

.74

2

Noninterest-bearing deposits 

24,169

23,311

23,998

4

1

23,721

21,761

9

Other liabilities 

1,713

1,805

1,589

-5

8

1,685

1,947

-13

  Total liabilities 

74,221

71,261

73,130

4

1

72,940

70,280

4

Shareholders' equity 

11,109

10,105

10,881

10

2

10,722

9,703

10

  Total liabilities and shareholders' equity 

$

85,330

81,366

84,011

5

%

2

%

$

83,662

79,983

5

%

Net interest spread 

3.36

3.50

3.40

3.43

3.48

Contribution of interest-free funds 

.20

.24

.21

.22

.25

Net interest margin 

3.56

%

3.74

%

3.61

%

3.65

%

3.73

%

 

 

M&T BANK CORPORATION

Reconciliation of GAAP to Non-GAAP Measures

Three months ended

Year ended

December 31

December 31

2013

2012

2013

2012

Income statement data

In thousands, except per share

Net income

Net income 

$

245,722

296,193

$

1,162,780

1,029,498

Amortization of core deposit and other

  intangible assets (1) 

6,375

8,464

28,644

37,011

Merger-related expenses (1) 

-

-

7,511

6,001

  Net operating income 

$

252,097

304,657

$

1,198,935

1,072,510

Earnings per common share

Diluted earnings per common share 

$

1.74

2.16

$

8.38

7.54

Amortization of core deposit and other

  intangible assets (1) 

.05

.07

.22

.29

Merger-related expenses (1) 

-

-

.06

.05

  Diluted net operating earnings per common share 

$

1.79

2.23

$

8.66

7.88

Other expense

Other expense 

$

703,072

626,146

$

2,595,885

2,509,260

Amortization of core deposit and other

  intangible assets 

(10,439)

(13,865)

(46,912)

(60,631)

Merger-related expenses 

-

-

(12,364)

(9,879)

  Noninterest operating expense 

$

692,633

612,281

$

2,536,609

2,438,750

Merger-related expenses

Salaries and employee benefits 

$

-

-

$

836

4,997

Equipment and net occupancy 

-

-

690

15

Printing, postage and supplies 

-

-

1,825

-

Other costs of operations 

-

-

9,013

4,867

  Total 

$

-

-

$

12,364

9,879

Efficiency ratio

Noninterest operating expense (numerator) 

$

692,633

612,281

$

2,536,609

2,438,750

Taxable-equivalent net interest income 

672,683

673,929

2,698,200

2,624,907

Other income 

446,246

453,164

1,865,205

1,667,270

Less:  Gain on bank investment securities 

-

-

56,457

9

           Net OTTI losses recognized in earnings 

-

(14,491)

(9,800)

(47,822)

Denominator 

$

1,118,929

1,141,584

$

4,516,748

4,339,990

Efficiency ratio 

61.90

%

53.63

%

56.16

%

56.19

%

Balance sheet data

In millions

Average assets

Average assets 

$

85,330

81,366

$

83,662

79,983

Goodwill 

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets 

(74)

(122)

(90)

(144)

Deferred taxes 

23

36

27

42

  Average tangible assets 

$

81,754

77,755

$

80,074

76,356

Average common equity

Average total equity 

$

11,109

10,105

$

10,722

9,703

Preferred stock 

(881)

(872)

(878)

(869)

  Average common equity

10,228

9,233

9,844

8,834

Goodwill 

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets 

(74)

(122)

(90)

(144)

Deferred taxes 

23

36

27

42

  Average tangible common equity 

$

6,652

5,622

$

6,256

5,207

At end of quarter

Total assets

Total assets 

$

85,147

83,009

Goodwill 

(3,525)

(3,525)

Core deposit and other intangible assets 

(69)

(116)

Deferred taxes 

21

34

  Total tangible assets 

$

81,574

79,402

Total common equity

Total equity 

$

11,330

10,203

Preferred stock

(882)

(873)

Undeclared dividends - cumulative preferred stock 

(3)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends 

10,445

9,327

Goodwill 

(3,525)

(3,525)

Core deposit and other intangible assets 

(69)

(116)

Deferred taxes 

21

34

  Total tangible common equity 

$

6,872

5,720

(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,

2013

2013

2013

2013

2012

Income statement data

In thousands, except per share

Net income

Net income

$

245,722

294,479

348,466

274,113

296,193

Amortization of core deposit and other

  intangible assets (1)

6,375

6,489

7,632

8,148

8,464

Merger-related expenses (1)

-

-

4,636

2,875

-

  Net operating income

$

252,097

300,968

360,734

285,136

304,657

Earnings per common share

Diluted earnings per common share

$

1.74

2.11

2.55

1.98

2.16

Amortization of core deposit and other

  intangible assets (1)

.05

.05

.06

.06

.07

Merger-related expenses (1)

-

-

.04

.02

-

  Diluted net operating earnings per common share

$

1.79

2.16

2.65

2.06

2.23

Other expense

Other expense

$

703,072

658,626

598,591

635,596

626,146

Amortization of core deposit and other

  intangible assets

(10,439)

(10,628)

(12,502)

(13,343)

(13,865)

Merger-related expenses

-

-

(7,632)

(4,732)

-

  Noninterest operating expense

$

692,633

647,998

578,457

617,521

612,281

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)

$

692,633

647,998

578,457

617,521

612,281

Taxable-equivalent net interest income

672,683

679,213

683,804

662,500

673,929

Other income

446,246

477,388

508,689

432,882

453,164

Less:  Gain on bank investment securities

-

-

56,457

-

-

           Net OTTI losses recognized in earnings

-

-

-

(9,800)

(14,491)

Denominator

$

1,118,929

1,156,601

1,136,036

1,105,182

1,141,584

Efficiency ratio

61.90

%

56.03

%

50.92

%

55.88

%

53.63

%

Balance sheet data

In millions

Average assets

Average assets

$

85,330

84,011

83,352

81,913

81,366

Goodwill

(3,525)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(74)

(84)

(95)

(109)

(122)

Deferred taxes

23

25

28

32

36

  Average tangible assets

$

81,754

80,427

79,760

78,311

77,755

Average common equity

Average total equity

$

11,109

10,881

10,563

10,322

10,105

Preferred stock

(881)

(878)

(876)

(874)

(872)

  Average common equity

10,228

10,003

9,687

9,448

9,233

Goodwill

(3,525)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(74)

(84)

(95)

(109)

(122)

Deferred taxes

23

25

28

32

36

  Average tangible common equity

$

6,652

6,419

6,095

5,846

5,622

At end of quarter

Total assets

Total assets

$

85,147

84,427

83,229

82,812

83,009

Goodwill

(3,525)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(69)

(79)

(90)

(102)

(116)

Deferred taxes

21

24

27

30

34

  Total tangible assets

$

81,574

80,847

79,641

79,215

79,402

Total common equity

Total equity

$

11,330

11,016

10,716

10,423

10,203

Preferred stock

(882)

(879)

(877)

(875)

(873)

Undeclared dividends - cumulative preferred stock

(3)

(4)

(3)

(3)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends

10,445

10,133

9,836

9,545

9,327

Goodwill

(3,525)

(3,525)

(3,525)

(3,525)

(3,525)

Core deposit and other intangible assets

(69)

(79)

(90)

(102)

(116)

Deferred taxes

21

24

27

30

34

  Total tangible common equity

$

6,872

6,553

6,248

5,948

5,720

(1) After any related tax effect.

 

 

SOURCE M&T Bank Corporation

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