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Press release from PR Newswire

M&T Bank Corporation Announces First Quarter Results

Monday, April 14, 2014

M&T Bank Corporation Announces First Quarter Results

08:00 EDT Monday, April 14, 2014

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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