M&T BANK CORPORATION BUFFALO, N.Y., Oct. 19, 2016 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2016.
GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2016 were $2.10, up 9% from $1.93 in the year-earlier quarter. GAAP-basis net income in the recent quarter aggregated $350 million, 25% higher than $280 million in the third quarter of 2015. Diluted earnings per common share and GAAP-basis net income were $1.98 and $336 million, respectively, in 2016's second quarter. GAAP-basis net income for the third quarter of 2016 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.12% and 8.68%, respectively, compared with 1.13% and 8.93%, respectively, in the year-earlier quarter and 1.09% and 8.38%, respectively, in 2016's second quarter. During the recent quarter, M&T sold substantially all of the collateralized debt obligations held in its available-for-sale investment securities portfolio. As a result, net gains on investment securities totaled $17 million after applicable tax effect, or $.11 of diluted earnings per common share.
Commenting on M&T's financial performance, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "Third quarter results posted by M&T were highlighted by a 16% rise in mortgage banking revenues, strong growth in the commercial real estate and commercial loan portfolios and continued solid credit performance. The favorable results were achieved in a period where the low interest rate environment continued to pressure M&T's net interest margin and where we continued to invest for the future. During the recent quarter, M&T successfully divested certain investments that were subject to the 'Volcker Rule'."
For the first nine months of 2016, diluted earnings per common share were $5.80, up 4% from $5.56 in the corresponding period of 2015. GAAP-basis net income for the nine-month period ended September 30, 2016 aggregated $985 million, 22% higher than $809 million in the year-earlier period. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the first nine months of 2016 was 1.06% and 8.17%, respectively, compared with 1.11% and 8.77%, respectively, in the similar 2015 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 expenses associated with merging acquired operations into M&T, since such items are considered by management to be "nonoperating" in nature. The amounts of such "nonoperating" expense are presented in the tables that accompany this release. 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 $2.13 in the third quarter of 2016, up 9% from $1.95 in the year-earlier quarter and up 3% from $2.07 in the second quarter of 2016. Net operating income during the recent quarter was $356 million, compared with $283 million in the third quarter of 2015 and $351 million in 2016's second quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.18% and 12.77%, respectively, in the recent quarter, 1.18% and 12.98%, respectively, in the third quarter of 2015 and 1.18% and 12.68%, respectively, in the second quarter of 2016.
Diluted net operating earnings per common share in the first nine months of 2016 were $6.07, up 8% from $5.64 in the corresponding period of 2015. Net operating income during the nine-month period ended September 30, 2016 was $1.03 billion, compared with $819 million in the similar 2015 period. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.15% and 12.36%, respectively, in the first nine months of 2016, compared with 1.17% and 12.89%, respectively, in the first nine months of 2015.
Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $865 million in the third quarter of 2016, up 24% from $699 million in the year-earlier quarter. Contributing to that improvement was a 28% increase in average earning assets, which grew to $112.9 billion in the recent quarter from $88.4 billion in the third quarter of 2015. That growth reflects the November 2015 acquisition of Hudson City Bancorp, Inc. ("Hudson City") that added approximately $16.2 billion in average loans in the recent quarter. In total, average loans in 2016's third quarter were $88.7 billion, up $20.9 billion, or 31%, from the year-earlier quarter. Partially offsetting the favorable impact of the asset growth was a 9 basis point narrowing of the net interest margin to 3.05% in the recent quarter from 3.14% in the third quarter of 2015. That narrowing reflects the ongoing impact of low interest rates on yields on securities and newly originated loans and higher balances on deposit at the Federal Reserve Bank of New York. As a result of the challenging interest rate environment, taxable-equivalent net interest income in the recent quarter was 1% lower than $870 million in the second quarter of 2016. A $992 million increase in average earning assets as compared with the second 2016 quarter, including a $577 million increase in average loans and leases, was offset by an 8 basis point compression of the net interest margin.
Provision for Credit Losses/Asset Quality. The provision for credit losses was $47 million in the recent quarter, compared with $44 million in the third quarter of 2015 and $32 million in 2016's second quarter. Net charge-offs of loans were $41 million during the third quarter of 2016, compared with $40 million and $24 million in the third quarter of 2015 and second quarter of 2016, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% and .24% in the third quarter of 2016 and 2015, respectively, and .11% in the second quarter of 2016.
Loans classified as nonaccrual totaled $837 million, or .93% of total loans outstanding at September 30, 2016 and $849 million or .96% at June 30, 2016, compared with $787 million or 1.15% at September 30, 2015. The higher level of nonaccrual loans at the two most recent quarter-ends as compared with September 30, 2015 reflects the normal migration of previously performing loans obtained in the acquisition of Hudson City that became past due over 90 days during the first nine months of 2016, and, as such, were not identifiable as purchased impaired as of the acquisition date. Assets taken in foreclosure of defaulted loans totaled $160 million at September 30, 2016, compared with $66 million a year earlier and $172 million at June 30, 2016. The higher level of such assets at the two most recent quarter-ends as compared with September 30, 2015 also resulted from residential real estate properties associated with the Hudson City acquisition.
Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. As a result of those analyses, the allowance for credit losses totaled $976 million or 1.09% of loans outstanding at September 30, 2016, compared with $970 million or 1.10% at June 30, 2016 and $934 million or 1.36% at September 30, 2015. The lower ratios at June 30 and September 30, 2016 as compared with September 30, 2015 reflect the impact of residential real estate loans acquired in the Hudson City transaction.
Noninterest Income and Expense. Noninterest income totaled $491 million in the recent quarter, up from $440 million in the third quarter of 2015 and $448 million in the second quarter of 2016. Reflected in noninterest income in the recent quarter were $28 million of pre-tax gains from the sale of investment securities that had been obtained in acquisitions. There were no significant gains or losses on investment securities in the third quarter of 2015 or in the second quarter of 2016. In addition to the investment securities gains, mortgage banking revenues also contributed to the rise in noninterest income as compared with the two earlier quarters.
Noninterest expense in the third quarter of 2016 totaled $752 million, compared with $750 million in the second quarter of 2016 and $654 million in the third quarter of 2015. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of those expenses, noninterest operating expenses were $743 million in the recent quarter, $726 million in the second quarter of 2016 and $650 million in the third quarter of 2015. Contributing to the higher level of operating expenses in the two most recent quarters as compared with the third quarter of 2015 was the impact of operations obtained in the Hudson City acquisition. As compared with the second quarter of 2016, the higher level of operating expenses in the recent quarter reflects increased FDIC assessments and higher advertising and promotion costs.
The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 55.9% in the recent quarter, 57.1% in the year-earlier quarter and 55.1% in the second quarter of 2016.
Balance Sheet. M&T had total assets of $126.8 billion at September 30, 2016 and $123.8 billion at June 30, 2016, up from $97.8 billion at September 30, 2015. Loans and leases, net of unearned discount, totaled $89.6 billion at September 30, 2016, $21.1 billion or 31% above $68.5 billion a year earlier and up an annualized 5% from $88.5 billion at June 30, 2016. During the recent quarter, loans to commercial customers grew $1.8 billion, while residential real estate loans, largely comprised of mortgage loans obtained in the Hudson City acquisition, declined $946 million. Total deposits increased to $98.1 billion at the recent quarter-end from $72.9 billion at September 30, 2015 and $94.7 billion at June 30, 2016.
Total shareholders' equity rose 26% to $16.3 billion at September 30, 2016 from $12.9 billion a year earlier, representing 12.88% and 13.21%, respectively, of total assets. Common shareholders' equity was $15.1 billion, or $97.47 per share, at September 30, 2016, compared with $11.7 billion, or $87.67 per share, at September 30, 2015. Tangible equity per common share of $67.42 at September 30, 2016 was up 10% from $61.22 at September 30, 2015. Common shareholders' equity per share and tangible equity per common share were $96.49 and $66.95, respectively, at June 30, 2016. 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 regulatory capital rules was approximately 10.76% at September 30, 2016.
In accordance with its 2016 capital plan, M&T repurchased 3,039,563 shares of its common stock during the recent quarter at an average cost per share of $115.15, for a total cost of $350 million. During the first nine months of 2016, M&T repurchased 5,307,595 shares of its common stock at an average cost per share of $113.80, for a total cost of $604 million.
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID #87013497. 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 Saturday, October 22, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #87013497. The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.
M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.
Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.
Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.
M&T BANK CORPORATION
Financial Highlights
Three months ended Nine months ended
Amounts in thousands, September 30 September 30
------------ ------------
except per share 2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
Performance
-----------
Net income $349,984 280,401 25% $984,543 808,702 22%
Net income available to common shareholders 326,998 257,346 27% 915,686 739,656 24%
Per common share:
Basic earnings $2.10 1.94 8% $5.82 5.59 4%
Diluted earnings 2.10 1.93 9% 5.80 5.56 4%
Cash dividends $.70 .70 - $2.10 2.10 -
Common shares outstanding:
Average - diluted (1) 156,026 133,376 17% 157,843 133,089 19%
Period end (2) 154,987 133,311 16% 154,987 133,311 16%
Return on (annualized):
Average total assets 1.12% 1.13% 1.06% 1.11%
Average common shareholders' equity 8.68% 8.93% 8.17% 8.77%
Taxable-equivalent net interest income $865,065 699,075 24% $2,613,702 2,053,649 27%
Yield on average earning assets 3.44% 3.48% 3.50% 3.51%
Cost of interest-bearing liabilities .59% .55% .56% .55%
Net interest spread 2.85% 2.93% 2.94% 2.96%
Contribution of interest-free funds .20% .21% .18% .20%
Net interest margin 3.05% 3.14% 3.12% 3.16%
Net charge-offs to average total
net loans (annualized) .19% .24% .16% .19%
Net operating results (3)
------------------------
Net operating income $355,929 282,907 26% $1,026,597 819,024 25%
Diluted net operating earnings per common share 2.13 1.95 9% 6.07 5.64 8%
Return on (annualized):
Average tangible assets 1.18% 1.18% 1.15% 1.17%
Average tangible common equity 12.77% 12.98% 12.36% 12.89%
Efficiency ratio 55.92% 57.05% 55.99% 58.88%
At September 30
---------------
Loan quality 2016 2015 Change
------------ ---- ---- ------
Nonaccrual loans $837,362 787,098 6%
Real estate and other foreclosed assets 159,881 66,144 142%
Total nonperforming assets $997,243 853,242 17%
Accruing loans past due 90 days or more (4) $317,282 231,465 37%
Government guaranteed loans included in totals
above:
Nonaccrual loans $47,130 48,955 -4%
Accruing loans past due 90 days or more 282,077 193,998 45%
Renegotiated loans $217,559 189,639 15%
Accruing loans acquired at a discount past due 90
days or more (5) $65,182 80,827 -19%
Purchased impaired loans (6):
Outstanding customer balance $981,105 278,979 252%
Carrying amount 616,991 149,421 313%
Nonaccrual loans to total net loans .93% 1.15%
Allowance for credit losses to total loans 1.09% 1.36%
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the
calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4) Excludes loans acquired at a discount.
(5) Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that
are presented separately.
(6) Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.
M&T BANK CORPORATION
Financial Highlights, Five Quarter Trend
Three months ended
------------------
Amounts in thousands, September 30, June 30, March 31, December 31, September 30,
except per share 2016 2016 2016 2015 2015
---- ---- ---- ---- ----
Performance
-----------
Net income $349,984 336,031 298,528 270,965 280,401
Net income available to common shareholders 326,998 312,974 275,748 248,059 257,346
Per common share:
Basic earnings $2.10 1.98 1.74 1.65 1.94
Diluted earnings 2.10 1.98 1.73 1.65 1.93
Cash dividends $.70 .70 .70 .70 .70
Common shares outstanding:
Average - diluted (1) 156,026 158,341 159,181 150,718 133,376
Period end (2) 154,987 157,917 159,156 159,600 133,311
Return on (annualized):
Average total assets 1.12% 1.09% .97% .93% 1.13%
Average common shareholders' equity 8.68% 8.38% 7.44% 7.22% 8.93%
Taxable-equivalent net interest income $865,065 870,341 878,296 813,401 699,075
Yield on average earning assets 3.44% 3.51% 3.54% 3.48% 3.48%
Cost of interest-bearing liabilities .59% .56% .53% .54% .55%
Net interest spread 2.85% 2.95% 3.01% 2.94% 2.93%
Contribution of interest-free funds .20% .18% .17% .18% .21%
Net interest margin 3.05% 3.13% 3.18% 3.12% 3.14%
Net charge-offs to average total
net loans (annualized) .19% .11% .19% .18% .24%
Net operating results (3)
------------------------
Net operating income $355,929 350,604 320,064 337,613 282,907
Diluted net operating earnings per common share 2.13 2.07 1.87 2.09 1.95
Return on (annualized):
Average tangible assets 1.18% 1.18% 1.09% 1.21% 1.18%
Average tangible common equity 12.77% 12.68% 11.62% 13.26% 12.98%
Efficiency ratio 55.92% 55.06% 57.00% 55.53% 57.05%
September 30, June 30, March 31, December 31, September 30,
Loan quality 2016 2016 2016 2015 2015
------------ ---- ---- ---- ---- ----
Nonaccrual loans $837,362 848,855 876,691 799,409 787,098
Real estate and other foreclosed assets 159,881 172,473 188,004 195,085 66,144
Total nonperforming assets $997,243 1,021,328 1,064,695 994,494 853,242
======== ========= ========= ======= =======
Accruing loans past due 90 days or more (4) $317,282 298,449 336,170 317,441 231,465
Government guaranteed loans included in totals
above:
Nonaccrual loans $47,130 52,486 49,688 47,052 48,955
Accruing loans past due 90 days or more 282,077 269,962 279,340 276,285 193,998
Renegotiated loans $217,559 211,159 200,771 182,865 189,639
Accruing loans acquired at a discount past due 90 days or more (5) $65,182 68,591 61,767 68,473 80,827
Purchased impaired loans (6):
Outstanding customer balance $981,105 1,040,678 1,124,776 1,204,004 278,979
Carrying amount 616,991 662,059 715,874 768,329 149,421
Nonaccrual loans to total net loans .93% .96% 1.00% .91% 1.15%
Allowance for credit losses to total loans 1.09% 1.10% 1.10% 1.09% 1.36%
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the
calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4) Excludes loans acquired at a discount.
(5) Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.
(6) Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.
M&T BANK CORPORATION
Condensed Consolidated Statement of Income
Three months ended Nine months ended
September 30 September 30
------------ ------------
Dollars in thousands 2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
Interest income $969,515 770,026 26% $2,912,970 2,268,467 28%
Interest expense 111,175 77,199 44 318,847 232,924 37
------- ------ ------- -------
Net interest income 858,340 692,827 24 2,594,123 2,035,543 27
Provision for credit losses 47,000 44,000 7 128,000 112,000 14
------ ------ ------- -------
Net interest income after
provision for credit losses 811,340 648,827 25 2,466,123 1,923,543 28
Other income
Mortgage banking revenues 103,747 84,035 23 275,193 288,238 -5
Service charges on deposit accounts 107,935 107,259 1 314,212 314,860 -
Trust income 118,654 113,744 4 350,181 356,076 -2
Brokerage services income 15,914 16,902 -6 48,190 49,224 -2
Trading account and foreign exchange gains 12,754 8,362 53 33,434 20,639 62
Gain (loss) on bank investment securities 28,480 - - 28,748 (108) -
Other revenues from operations 103,866 109,397 -5 310,579 348,000 -11
------- ------- ------- -------
Total other income 491,350 439,699 12 1,360,537 1,376,929 -1
Other expense
Salaries and employee benefits 399,786 363,567 10 1,230,246 1,115,117 10
Equipment and net occupancy 75,263 68,470 10 225,165 201,792 12
Printing, postage and supplies 8,972 8,691 3 30,865 27,586 12
Amortization of core deposit and other
intangible assets 9,787 4,090 139 33,524 16,848 99
FDIC assessments 28,459 11,090 157 76,054 32,551 134
Other costs of operations 230,125 197,908 16 682,528 642,925 6
------- ------- ------- -------
Total other expense 752,392 653,816 15 2,278,382 2,036,819 12
Income before income taxes 550,298 434,710 27 1,548,278 1,263,653 23
Applicable income taxes 200,314 154,309 30 563,735 454,951 24
------- ------- ------- -------
Net income $349,984 280,401 25% $984,543 808,702 22%
======== ======= ======== =======
M&T BANK CORPORATION
Condensed Consolidated Statement of Income, Five Quarter Trend
Three months ended
------------------
September 30, June 30, March 31, December 31, September 30,
Dollars in thousands 2016 2016 2016 2015 2015
---- ---- ---- ---- ----
Interest income $969,515 970,621 972,834 902,377 770,026
Interest expense 111,175 106,802 100,870 95,333 77,199
------- ------- ------- ------ ------
Net interest income 858,340 863,819 871,964 807,044 692,827
Provision for credit losses 47,000 32,000 49,000 58,000 44,000
------ ------ ------ ------ ------
Net interest income after
provision for credit losses 811,340 831,819 822,964 749,044 648,827
Other income
Mortgage banking revenues 103,747 89,383 82,063 87,500 84,035
Service charges on deposit accounts 107,935 103,872 102,405 105,748 107,259
Trust income 118,654 120,450 111,077 114,564 113,744
Brokerage services income 15,914 16,272 16,004 15,546 16,902
Trading account and foreign exchange gains 12,754 13,222 7,458 9,938 8,362
Gain (loss) on bank investment securities 28,480 264 4 (22) -
Other revenues from operations 103,866 104,791 101,922 114,834 109,397
------- ------- ------- ------- -------
Total other income 491,350 448,254 420,933 448,108 439,699
Other expense
Salaries and employee benefits 399,786 398,675 431,785 434,413 363,567
Equipment and net occupancy 75,263 75,724 74,178 70,747 68,470
Printing, postage and supplies 8,972 9,907 11,986 10,905 8,691
Amortization of core deposit and other
intangible assets 9,787 11,418 12,319 9,576 4,090
FDIC assessments 28,459 22,370 25,225 19,562 11,090
Other costs of operations 230,125 231,801 220,602 240,910 197,908
------- ------- ------- ------- -------
Total other expense 752,392 749,895 776,095 786,113 653,816
Income before income taxes 550,298 530,178 467,802 411,039 434,710
Applicable income taxes 200,314 194,147 169,274 140,074 154,309
------- ------- ------- ------- -------
Net income $349,984 336,031 298,528 270,965 280,401
======== ======= ======= ======= =======
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
September 30
------------
Dollars in thousands 2016 2015 Change
---- ---- ------
ASSETS
Cash and due from banks $1,332,202 1,249,704 7%
Interest-bearing deposits at banks 10,777,636 4,713,266 129
Trading account assets 488,588 340,710 43
Investment securities 14,733,574 14,494,539 2
Loans and leases:
Commercial, financial, etc. 21,917,163 20,233,177 8
Real estate - commercial 32,078,762 28,720,537 12
Real estate - consumer 23,584,420 8,211,062 187
Consumer 12,066,147 11,375,472 6
---------- ----------
Total loans and leases, net of unearned discount 89,646,492 68,540,248 31
Less: allowance for credit losses 976,121 933,798 5
------- -------
Net loans and leases 88,670,371 67,606,450 31
Goodwill 4,593,112 3,513,325 31
Core deposit and other intangible assets 106,744 18,179 487
Other assets 6,138,801 5,860,889 5
--------- ---------
Total assets $126,841,028 97,797,062 30%
============ ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $33,127,627 28,189,330 18%
Interest-bearing deposits 64,786,035 44,549,028 45
Deposits at Cayman Islands office 223,183 206,185 8
------- -------
Total deposits 98,136,845 72,944,543 35
Short-term borrowings 213,846 173,783 23
Accrued interest and other liabilities 1,938,201 1,582,513 22
Long-term borrowings 10,211,160 10,174,289 -
---------- ----------
Total liabilities 110,500,052 84,875,128 30
Shareholders' equity:
Preferred 1,231,500 1,231,500 -
Common (1) 15,109,476 11,690,434 29
---------- ----------
Total shareholders' equity 16,340,976 12,921,934 26
---------- ----------
Total liabilities and shareholders' equity $126,841,028 97,797,062 30%
============ ==========
(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $114.6 million at September 30,
2016 and $163.5 million at September 30, 2015.
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five Quarter Trend
September 30, June 30, March 31, December 31, September 30,
Dollars in thousands 2016 2016 2016 2015 2015
---- ---- ---- ---- ----
ASSETS
Cash and due from banks $1,332,202 1,284,442 1,178,175 1,368,040 1,249,704
Interest-bearing deposits at banks 10,777,636 8,474,839 9,545,181 7,594,350 4,713,266
Trading account assets 488,588 506,131 467,987 273,783 340,710
Investment securities 14,733,574 14,963,084 15,467,320 15,656,439 14,494,539
Loans and leases:
Commercial, financial, etc. 21,917,163 21,469,242 21,226,577 20,422,338 20,233,177
Real estate - commercial 32,078,762 30,711,230 29,713,293 29,197,311 28,720,537
Real estate - consumer 23,584,420 24,530,249 25,299,638 26,270,103 8,211,062
Consumer 12,066,147 11,811,277 11,632,958 11,599,747 11,375,472
---------- ---------- ---------- ---------- ----------
Total loans and leases, net of unearned discount 89,646,492 88,521,998 87,872,466 87,489,499 68,540,248
Less: allowance for credit losses 976,121 970,496 962,752 955,992 933,798
------- ------- ------- ------- -------
Net loans and leases 88,670,371 87,551,502 86,909,714 86,533,507 67,606,450
Goodwill 4,593,112 4,593,112 4,593,112 4,593,112 3,513,325
Core deposit and other intangible assets 106,744 116,531 127,949 140,268 18,179
Other assets 6,138,801 6,330,943 6,336,194 6,628,385 5,860,889
--------- --------- --------- --------- ---------
Total assets $126,841,028 123,820,584 124,625,632 122,787,884 97,797,062
============ =========== =========== =========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $33,127,627 30,700,066 29,709,218 29,110,635 28,189,330
Interest-bearing deposits 64,786,035 63,756,514 64,338,571 62,677,036 44,549,028
Deposits at Cayman Islands office 223,183 193,523 166,787 170,170 206,185
------- ------- ------- ------- -------
Total deposits 98,136,845 94,650,103 94,214,576 91,957,841 72,944,543
Short-term borrowings 213,846 407,123 1,766,826 2,132,182 173,783
Accrued interest and other liabilities 1,938,201 1,963,093 1,948,142 1,870,714 1,582,513
Long-term borrowings 10,211,160 10,328,751 10,341,035 10,653,858 10,174,289
---------- ---------- ---------- ---------- ----------
Total liabilities 110,500,052 107,349,070 108,270,579 106,614,595 84,875,128
Shareholders' equity:
Preferred 1,231,500 1,231,500 1,231,500 1,231,500 1,231,500
Common (1) 15,109,476 15,240,014 15,123,553 14,941,789 11,690,434
---------- ---------- ---------- ---------- ----------
Total shareholders' equity 16,340,976 16,471,514 16,355,053 16,173,289 12,921,934
---------- ---------- ---------- ---------- ----------
Total liabilities and shareholders' equity $126,841,028 123,820,584 124,625,632 122,787,884 97,797,062
============ =========== =========== =========== ==========
(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $114.6 million at September 30, 2016, $101.0 million at June 30,
2016, $150.2 million at March 31, 2016, $251.6 million at December 31, 2015 and $163.5 million at September 30, 2015.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended Change in balance
Nine months ended
September 30, September 30, June 30, September 30, 2016 from
September 30
Dollars in millions 2016 2015 2016 September 30, June 30, 2016 2015 Change in
---- ---- ---- ---- ----
Balance Rate Balance Rate Balance Rate 2015 2016 Balance Rate Balance Rate balance
------- ---- ------- ---- ------- ---- ---- ---- ------- ---- ------- ---- -------
ASSETS
Interest-bearing deposits at banks $9,681 .51% 6,060 .25% 8,711 .51% 60% 11% $8,864 .51% 5,490 .25% 61%
Federal funds sold - - - - - - - - - - 45 .10 -
Trading account assets 90 1.52 96 .52 92 1.58 -6 -2 89 1.62 93 1.34 -4
Investment securities 14,361 2.38 14,441 2.60 14,914 2.49 -1 -4 14,873 2.49 14,008 2.65 6
Loans and leases, net of unearned discount
Commercial, financial, etc. 21,480 3.44 19,939 3.22 21,450 3.47 8 - 21,216 3.43 19,791 3.20 7
Real estate - commercial 31,252 4.00 28,309 4.18 30,134 4.09 10 4 30,274 4.08 28,040 4.18 8
Real estate - consumer 24,058 3.92 8,348 4.17 24,858 3.94 188 -3 24,922 3.93 8,455 4.17 195
Consumer 11,942 4.55 11,253 4.46 11,713 4.55 6 2 11,747 4.55 11,087 4.47 6
Total loans and leases, net 88,732 3.93 67,849 3.96 88,155 3.99 31 1 88,159 3.97 67,373 3.96 31
------ ------ ------ ------ ------
Total earning assets 112,864 3.44 88,446 3.48 111,872 3.51 28 1 111,985 3.50 87,009 3.51 29
Goodwill 4,593 3,513 4,593 31 - 4,593 3,517 31
Core deposit and other intangible assets 112 20 122 453 -8 123 26 380
Other assets 7,156 6,536 7,119 9 1 7,196 6,793 6
----- ----- ----- ----- -----
Total assets $124,725 98,515 123,706 27% 1% $123,897 97,345 27%
======== ====== ======= ======== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Interest-checking deposits $1,222 .12 1,309 .11 1,332 .12 -7% -8% $1,304 .12 1,255 .11 4%
Savings deposits 51,294 .18 41,197 .11 50,515 .16 25 2 50,266 .16 41,477 .10 21
Time deposits 12,334 .90 2,858 .51 12,755 .85 332 -3 12,694 .83 2,940 .50 332
Deposits at Cayman Islands office 220 .37 206 .29 182 .40 7 20 197 .39 214 .28 -8
--- ---
Total interest-bearing deposits 65,070 .32 45,570 .13 64,784 .30 43 - 64,461 .29 45,886 .13 40
------ ------ ------ ------ ------
Short-term borrowings 231 .29 174 .07 1,078 .43 33 -79 1,127 .41 188 .07 498
Long-term borrowings 10,287 2.28 10,114 2.44 10,297 2.27 2 - 10,370 2.25 10,039 2.51 3
------ ------ ------ ------ ------
Total interest-bearing liabilities 75,588 .59 55,858 .55 76,159 .56 35 -1 75,958 .56 56,113 .55 35
Noninterest-bearing deposits 30,782 28,251 29,249 9 5 29,638 26,947 10
Other liabilities 2,008 1,619 1,921 24 5 1,967 1,656 19
----- ----- ----- ----- -----
Total liabilities 108,378 85,728 107,329 26 1 107,563 84,716 27
Shareholders' equity 16,347 12,787 16,377 28 - 16,334 12,629 29
------ ------ ------ ------ ------
Total liabilities and shareholders' equity $124,725 98,515 123,706 27% 1% $123,897 97,345 27%
======== ====== ======= ======== ======
Net interest spread 2.85 2.93 2.95 2.94 2.96
Contribution of interest-free funds .20 .21 .18 .18 .20
Net interest margin 3.05% 3.14% 3.13% 3.12% 3.16%
M&T BANK CORPORATION
Reconciliation of Quarterly GAAP to Non-GAAP Measures
Three months ended Nine months ended
September 30 September 30
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Income statement data
---------------------
In thousands, except per share
Net income
Net income $349,984 280,401 $984,543 808,702
Amortization of core deposit and other
intangible assets (1) 5,945 2,506 20,369 10,322
Merger-related expenses (1) - - 21,685 -
Net operating income $355,929 282,907 $1,026,597 819,024
======== ======= ========== =======
Earnings per common share
Diluted earnings per common share $2.10 1.93 $5.80 5.56
Amortization of core deposit and other
intangible assets (1) .03 .02 .13 .08
Merger-related expenses (1) - - .14 -
Diluted net operating earnings per common share $2.13 1.95 $6.07 5.64
===== ==== ===== ====
Other expense
Other expense $752,392 653,816 $2,278,382 2,036,819
Amortization of core deposit and other
intangible assets (9,787) (4,090) (33,524) (16,848)
Merger-related expenses - - (35,755) -
Noninterest operating expense $742,605 649,726 $2,209,103 2,019,971
======== ======= ========== =========
Merger-related expenses
Salaries and employee benefits - - 5,334 -
Equipment and net occupancy - - 1,278 -
Printing, postage and supplies - - 1,482 -
Other costs of operations - - 27,661 -
Total $ - - $35,755 -
=== === ======= ===
Efficiency ratio
Noninterest operating expense (numerator) $742,605 649,726 $2,209,103 2,019,971
======== ======= ========== =========
Taxable-equivalent net interest income 865,065 699,075 2,613,702 2,053,649
Other income 491,350 439,699 1,360,537 1,376,929
Less: Gain (loss) on bank investment securities 28,480 - 28,748 (108)
Denominator $1,327,935 1,138,774 $3,945,491 3,430,686
========== ========= ========== =========
Efficiency ratio 55.92% 57.05% 55.99% 58.88%
===== ===== ===== =====
Balance sheet data
------------------
In millions
Average assets
Average assets $124,725 98,515 $123,897 97,345
Goodwill (4,593) (3,513) (4,593) (3,517)
Core deposit and other intangible assets (112) (20) (123) (26)
Deferred taxes 44 7 48 8
--- --- --- ---
Average tangible assets $120,064 94,989 $119,229 93,810
======== ====== ======== ======
Average common equity
Average total equity $16,347 12,787 $16,334 12,629
Preferred stock (1,232) (1,232) (1,231) (1,232)
Average common equity 15,115 11,555 15,103 11,397
Goodwill (4,593) (3,513) (4,593) (3,517)
Core deposit and other intangible assets (112) (20) (123) (26)
Deferred taxes 44 7 48 8
--- --- --- ---
Average tangible common equity $10,454 8,029 $10,435 7,862
======= ===== ======= =====
At end of quarter
Total assets
Total assets $126,841 97,797
Goodwill (4,593) (3,513)
Core deposit and other intangible assets (107) (18)
Deferred taxes 42 6
Total tangible assets $122,183 94,272
======== ======
Total common equity
Total equity $16,341 12,922
Preferred stock (1,232) (1,232)
Undeclared dividends - cumulative preferred stock (3) (3)
Common equity, net of undeclared cumulative
preferred dividends 15,106 11,687
Goodwill (4,593) (3,513)
Core deposit and other intangible assets (107) (18)
Deferred taxes 42 6
Total tangible common equity $10,448 8,162
======= =====
(1) After any related tax effect
M&T BANK CORPORATION
Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
Three months ended
------------------
September 30, June 30, March 31, December 31, September 30,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
Income statement data
---------------------
In thousands, except per share
Net income
Net income $349,984 336,031 298,528 270,965 280,401
Amortization of core deposit and other
intangible assets (1) 5,945 6,936 7,488 5,828 2,506
Merger-related expenses (1) - 7,637 14,048 60,820 -
Net operating income $355,929 350,604 320,064 337,613 282,907
======== ======= ======= ======= =======
Earnings per common share
Diluted earnings per common share $2.10 1.98 1.73 1.65 1.93
Amortization of core deposit and other
intangible assets (1) .03 .04 .05 .04 .02
Merger-related expenses (1) - .05 .09 .40 -
Diluted net operating earnings per common share $2.13 2.07 1.87 2.09 1.95
===== ==== ==== ==== ====
Other expense
Other expense $752,392 749,895 776,095 786,113 653,816
Amortization of core deposit and other
intangible assets (9,787) (11,418) (12,319) (9,576) (4,090)
Merger-related expenses - (12,593) (23,162) (75,976) -
Noninterest operating expense $742,605 725,884 740,614 700,561 649,726
======== ======= ======= ======= =======
Merger-related expenses
Salaries and employee benefits $ - 60 5,274 51,287 -
Equipment and net occupancy - 339 939 3 -
Printing, postage and supplies - 545 937 504 -
Other costs of operations - 11,649 16,012 24,182 -
--- ------ ------ ------ ---
Other expense - 12,593 23,162 75,976 -
Provision for credit losses - - - 21,000 -
--- --- --- ------ ---
Total $ - 12,593 23,162 96,976 -
=== ====== ====== ====== ===
Efficiency ratio
Noninterest operating expense (numerator) $742,605 725,884 740,614 700,561 649,726
======== ======= ======= ======= =======
Taxable-equivalent net interest income 865,065 870,341 878,296 813,401 699,075
Other income 491,350 448,254 420,933 448,108 439,699
Less: Gain (loss) on bank investment securities 28,480 264 4 (22) -
Denominator $1,327,935 1,318,331 1,299,225 1,261,531 1,138,774
========== ========= ========= ========= =========
Efficiency ratio 55.92% 55.06% 57.00% 55.53% 57.05%
===== ===== ===== ===== =====
Balance sheet data
------------------
In millions
Average assets
Average assets $124,725 123,706 123,252 115,052 98,515
Goodwill (4,593) (4,593) (4,593) (4,218) (3,513)
Core deposit and other intangible assets (112) (122) (134) (101) (20)
Deferred taxes 44 48 52 39 7
--- --- --- --- ---
Average tangible assets $120,064 119,039 118,577 110,772 94,989
======== ======= ======= ======= ======
Average common equity
Average total equity $16,347 16,377 16,279 15,007 12,787
Preferred stock (1,232) (1,232) (1,232) (1,232) (1,232)
Average common equity 15,115 15,145 15,047 13,775 11,555
Goodwill (4,593) (4,593) (4,593) (4,218) (3,513)
Core deposit and other intangible assets (112) (122) (134) (101) (20)
Deferred taxes 44 48 52 39 7
--- --- --- --- ---
Average tangible common equity $10,454 10,478 10,372 9,495 8,029
======= ====== ====== ===== =====
At end of quarter
Total assets
Total assets $126,841 123,821 124,626 122,788 97,797
Goodwill (4,593) (4,593) (4,593) (4,593) (3,513)
Core deposit and other intangible assets (107) (117) (128) (140) (18)
Deferred taxes 42 46 50 54 6
Total tangible assets $122,183 119,157 119,955 118,109 94,272
======== ======= ======= ======= ======
Total common equity
Total equity $16,341 16,472 16,355 16,173 12,922
Preferred stock (1,232) (1,232) (1,232) (1,232) (1,232)
Undeclared dividends - cumulative preferred stock (3) (3) (3) (2) (3)
--- ---
Common equity, net of undeclared cumulative
preferred dividends 15,106 15,237 15,120 14,939 11,687
Goodwill (4,593) (4,593) (4,593) (4,593) (3,513)
Core deposit and other intangible assets (107) (117) (128) (140) (18)
Deferred taxes 42 46 50 54 6
Total tangible common equity $10,448 10,573 10,449 10,260 8,162
======= ====== ====== ====== =====
(1) After any related tax effect.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mt-bank-corporation-announces-third-quarter-results-300347468.html
SOURCE M&T Bank Corporation
