M&T BANK CORPORATION BUFFALO, N.Y., Jan. 20, 2015 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for 2014.
GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2014 were $1.92, up from $1.56 in the year-earlier quarter and $1.91 in the third quarter of 2014. GAAP-basis net income in the recent quarter totaled $278 million, compared with $221 million in the fourth quarter of 2013 and $275 million in 2014's third quarter. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was 1.12% and 9.10%, respectively, compared with 1.03% and 7.99%, respectively, in the year-earlier quarter and 1.17% and 9.18%, respectively, in the third quarter of 2014.
For the full year of 2014, diluted earnings per common share were $7.42, compared with $8.20 for 2013. Net income totaled $1.07 billion in 2014, compared with $1.14 billion in 2013. The 2013 results reflect after-tax gains from investment securities and loan securitization transactions of $67 million ($110 million pre-tax) or $.51 of diluted earnings per common share. Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2014 was 1.16% and 9.08%, respectively, compared with 1.36% and 10.93%, respectively, in 2013.
Commenting on M&T's performance in 2014, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "Results for this past year's final quarter were solid. We had improved revenues, healthy loan growth, stable expense levels and excellent credit experience. Overall, 2014 represented a year of considerable investment in our infrastructure. Significant progress was made on our BSA/AML, compliance, risk management and technology initiatives that will position us well moving forward. In a year of substantial resource commitment, we further strengthened our already formidable balance sheet by raising our capital and liquidity levels."
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 $1.95 in the final quarter of 2014, compared with $1.61 in the year-earlier period and $1.94 in the third quarter of 2014. Net operating income for the recent quarter was $282 million, compared with $228 million and $280 million in the fourth quarter of 2013 and the third quarter of 2014, respectively. For the three months ended December 31, 2014, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.18% and 13.55%, respectively, compared with 1.11% and 12.67% in the corresponding 2013 period and 1.24% and 13.80%, respectively, in the third quarter of 2014.
For the year ended December 31, 2014, diluted net operating earnings per common share was $7.57, compared with $8.48 in 2013. Net operating income for 2014 and 2013 totaled $1.09 billion and $1.17 billion, respectively. Net operating income in 2014 expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.23% and 13.76%, respectively, compared with 1.47% and 17.79%, respectively, in 2013.
Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis aggregated $688 million in the fourth quarter of 2014, up 2% from $673 million earned in the year-earlier quarter and from $675 million recorded in the third quarter of 2014. As compared with the fourth quarter of 2013, a $12.9 billion rise in average earning assets in the recent quarter, reflecting increases of $6.1 billion in average balances of interest-bearing deposits at banks and $4.6 billion in average investment securities balances, was largely offset by a 46 basis point (hundredths of one percent) decline in the net interest margin to 3.10% in the final 2014 quarter from 3.56% in the year-earlier quarter. The growth in investment securities resulted from progress made in response to new regulatory liquidity requirements that will be effective for M&T in January 2016. The increase in taxable-equivalent net interest income as compared with the third quarter of 2014 reflects a $5.2 billion rise in average earning assets, due to higher average interest-bearing deposits at banks of $4.0 billion and a $1.0 billion rise in average loans outstanding, largely offset by a 13 basis point decline in the net interest margin, which was attributable to the increased amount of interest-bearing deposits at banks. For the year ended December 31, 2014, net interest income on a taxable-equivalent basis aggregated $2.70 billion, little changed from 2013. A $7.7 billion or 10% increase in average earning assets in 2014 was offset by a 34 basis point narrowing of the net interest margin to 3.31% in 2014 from 3.65% in 2013.
Provision for Credit Losses/Asset Quality. The provision for credit losses was $33 million during the recent quarter, compared with $42 million in the year-earlier quarter and $29 million in the third quarter of 2014. Net charge-offs of loans were $32 million during the fourth quarter of 2014, compared with $42 million and $28 million in the final 2013 quarter and the third quarter of 2014, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% and .26% in the fourth quarter of 2014 and 2013, respectively, and .17% in 2014's third quarter. The provision for credit losses declined 33% to $124 million in 2014 from $185 million in 2013. Net loan charge-offs during 2014 totaled $121 million, or .19% of average loans outstanding, improved from $183 million, or .28% of average loans in 2013.
Loans classified as nonaccrual declined to $799 million, or 1.20% of total loans outstanding at December 31, 2014, improved from $874 million or 1.36% a year earlier and $848 million or 1.29% at September 30, 2014. Assets taken in foreclosure of defaulted loans were $64 million at December 31, 2014, improved from $67 million and $68 million at December 31, 2013 and September 30, 2014, 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 $920 million or 1.38% of loans outstanding at December 31, 2014, compared with $917 million or 1.43% a year earlier and $919 million or 1.40% at September 30, 2014.
Noninterest Income and Expense. Noninterest income aggregated $452 million in the recently completed quarter, up from $446 million and $451 million in the fourth quarter of 2013 and the third quarter of 2014, respectively. The improvement as compared with the final 2013 quarter resulted from higher residential mortgage banking revenues associated with loan servicing activities.
Noninterest income totaled $1.78 billion and $1.87 billion during the years ended December 31, 2014 and 2013, respectively. The higher level of noninterest income in 2013 was primarily the result of net gains on investment securities and gains on securitization activities, which aggregated $110 million. Excluding those gains, noninterest income in 2014 was up $24 million from 2013. The major contributors to that improvement were higher residential mortgage banking revenues and trust income, partially offset by declines in service charges on deposit accounts and trading account and foreign exchange gains.
Noninterest expense in the fourth quarter of 2014 totaled $680 million, compared with $743 million in the year-earlier quarter and $679 million in 2014'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 $673 million in the recent quarter, compared with $733 million and $672 million in the fourth quarter of 2013 and the third quarter of 2014, respectively. The lower noninterest operating expenses in the recent quarter as compared with the year-earlier quarter reflect a decline in professional services costs and a $40 million litigation-related accrual in the final 2013 quarter.
For the year ended December 31, 2014, noninterest expense aggregated $2.74 billion, compared with $2.64 billion in the previous year. Noninterest operating expenses were $2.71 billion in 2014 and $2.58 billion in 2013. The increase in noninterest operating expenses was largely attributable to higher costs for professional services and salaries associated with BSA/AML activities, compliance, capital planning and stress testing, and risk management initiatives, 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 59.1% in the recent quarter, compared with 65.5% in the year-earlier quarter and 59.7% in the third quarter of 2014. The efficiency ratio for the full year 2014 was 60.5%, compared with 57.0% in 2013.
Balance Sheet. M&T had total assets of $96.7 billion at December 31, 2014, up 14% from $85.2 billion a year earlier. Investment securities were $13.0 billion at the recent year-end, up $4.2 billion or 48% from December 31, 2013. Loans and leases, net of unearned discount, rose 4% to $66.7 billion at the 2014 year-end from $64.1 billion at December 31, 2013. Total deposits were $73.6 billion at the recent year-end, up 10% or $6.5 billion from $67.1 billion at December 31, 2013.
Total shareholders' equity rose $1.0 billion or 9% to $12.3 billion at December 31, 2014 from $11.3 billion a year earlier, representing 12.76% and 13.28%, respectively, of total assets. Common shareholders' equity was $11.1 billion, or $83.88 per share, at December 31, 2014, compared with $10.4 billion, or $79.81 per share, at December 31, 2013. Tangible equity per common share rose 9% to $57.06 at December 31, 2014 from $52.45 a year earlier. Common shareholders' equity per share and tangible equity per share were $83.99 and $57.10, respectively, at September 30, 2014. 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, rose to 9.83% at December 31, 2014, improved from 9.22% and 9.76% at December 31, 2013 and September 30, 2014, respectively. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the capital rules approved in July 2013 on a fully phased-in basis was approximately 9.59% as of December 31, 2014.
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 10:00 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 #65658552. 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 January 23, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #65658552. The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.
M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.
Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.
Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.
M&T BANK CORPORATION
Financial Highlights
Three months ended Year ended
Amounts in thousands, December 31 December 31
----------- -----------
except per share 2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
Performance
-----------
Net income $277,549 221,422 25% $1,066,246 1,138,480 -6%
Net income available to common shareholders 254,239 203,451 25% 978,581 1,062,496 -8%
Per common share:
Basic earnings $1.93 1.57 23% $7.47 8.26 -10%
Diluted earnings 1.92 1.56 23% 7.42 8.20 -10%
Cash dividends $.70 .70 - $2.80 2.80 -
Common shares outstanding:
Average - diluted (1) 132,278 130,464 1% 131,844 129,603 2%
Period end (2) 132,354 130,564 1% 132,354 130,564 1%
Return on (annualized):
Average total assets 1.12% 1.03% 1.16% 1.36%
Average common shareholders' equity 9.10% 7.99% 9.08% 10.93%
Taxable-equivalent net interest income $687,847 672,683 2% $2,700,088 2,698,200 -
Yield on average earning assets 3.44% 3.92% 3.65% 4.03%
Cost of interest-bearing liabilities .52% .56% .53% .60%
Net interest spread 2.92% 3.36% 3.12% 3.43%
Contribution of interest-free funds .18% .20% .19% .22%
Net interest margin 3.10% 3.56% 3.31% 3.65%
Net charge-offs to average total
net loans (annualized) .19% .26% .19% .28%
Net operating results (3)
------------------------
Net operating income $281,929 227,797 24% $1,086,903 1,174,635 -7%
Diluted net operating earnings per common share 1.95 1.61 21% 7.57 8.48 -11%
Return on (annualized):
Average tangible assets 1.18% 1.11% 1.23% 1.47%
Average tangible common equity 13.55% 12.67% 13.76% 17.79%
Efficiency ratio 59.06% 65.48% 60.48% 57.05%
At December 31
--------------
Loan quality 2014 2013 Change
------------ ---- ---- ------
Nonaccrual loans $799,151 874,156 -9%
Real estate and other foreclosed assets 63,635 66,875 -5%
Total nonperforming assets $862,786 941,031 -8%
======== =======
Accruing loans past due 90 days or more (4) $245,020 368,510 -34%
Government guaranteed loans included in totals
above:
Nonaccrual loans $69,095 63,647 9%
Accruing loans past due 90 days or more 217,822 297,918 -27%
Renegotiated loans $202,633 257,092 -21%
Acquired accruing loans past due 90 days or more (5) $110,367 130,162 -15%
Purchased impaired loans (6):
Outstanding customer balance $369,080 579,975 -36%
Carrying amount 197,737 330,792 -40%
Nonaccrual loans to total net loans 1.20% 1.36%
Allowance for credit losses to total loans 1.38% 1.43%
(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, December 31, September 30, June 30, March 31, December 31,
except per share 2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Performance
-----------
Net income $277,549 275,344 284,336 229,017 221,422
Net income available to common shareholders 254,239 251,917 260,695 211,731 203,451
Per common share:
Basic earnings $1.93 1.92 1.99 1.63 1.57
Diluted earnings 1.92 1.91 1.98 1.61 1.56
Cash dividends $.70 .70 .70 .70 .70
Common shares outstanding:
Average - diluted (1) 132,278 132,128 131,828 131,126 130,464
Period end (2) 132,354 132,142 131,953 131,431 130,564
Return on (annualized):
Average total assets 1.12% 1.17% 1.27% 1.07% 1.03%
Average common shareholders' equity 9.10% 9.18% 9.79% 8.22% 7.99%
Taxable-equivalent net interest income $687,847 674,900 674,963 662,378 672,683
Yield on average earning assets 3.44% 3.59% 3.73% 3.87% 3.92%
Cost of interest-bearing liabilities .52% .54% .51% .55% .56%
Net interest spread 2.92% 3.05% 3.22% 3.32% 3.36%
Contribution of interest-free funds .18% .18% .18% .20% .20%
Net interest margin 3.10% 3.23% 3.40% 3.52% 3.56%
Net charge-offs to average total
net loans (annualized) .19% .17% .18% .20% .26%
Net operating results (3)
------------------------
Net operating income $281,929 279,838 289,974 235,162 227,797
Diluted net operating earnings per common share 1.95 1.94 2.02 1.66 1.61
Return on (annualized):
Average tangible assets 1.18% 1.24% 1.35% 1.15% 1.11%
Average tangible common equity 13.55% 13.80% 14.92% 12.76% 12.67%
Efficiency ratio 59.06% 59.67% 59.39% 63.95% 65.48%
December 31, September 30, June 30, March 31, December 31,
Loan quality 2014 2014 2014 2014 2013
------------ ---- ---- ---- ---- ----
Nonaccrual loans $799,151 847,784 880,134 890,893 874,156
Real estate and other foreclosed assets 63,635 67,629 59,793 59,407 66,875
Total nonperforming assets $862,786 915,413 939,927 950,300 941,031
======== ======= ======= ======= =======
Accruing loans past due 90 days or more (4) $245,020 312,990 289,016 307,017 368,510
Government guaranteed loans included in totals
above:
Nonaccrual loans $69,095 68,586 81,817 75,959 63,647
Accruing loans past due 90 days or more 217,822 265,333 275,846 291,418 297,918
Renegotiated loans $202,633 209,099 270,223 257,889 257,092
Acquired accruing loans past due 90 days or more (5) $110,367 132,147 134,580 120,996 130,162
Purchased impaired loans (6):
Outstanding customer balance $369,080 429,915 504,584 534,331 579,975
Carrying amount 197,737 236,662 282,517 303,388 330,792
Nonaccrual loans to total net loans 1.20% 1.29% 1.36% 1.39% 1.36%
Allowance for credit losses to total loans 1.38% 1.40% 1.42% 1.43% 1.43%
(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 Year ended
December 31 December 31
----------- -----------
Dollars in thousands 2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
Interest income $756,612 734,466 3% $2,956,877 2,957,334 - %
Interest expense 74,772 67,982 10 280,431 284,105 -1
------ ------ ------- -------
Net interest income 681,840 666,484 2 2,676,446 2,673,229 -
Provision for credit losses 33,000 42,000 -21 124,000 185,000 -33
------ ------ ------- -------
Net interest income after
provision for credit losses 648,840 624,484 4 2,552,446 2,488,229 3
Other income
Mortgage banking revenues 93,675 82,169 14 362,912 331,265 10
Service charges on deposit accounts 106,319 110,436 -4 427,956 446,941 -4
Trust income 128,442 125,876 2 508,258 496,008 2
Brokerage services income 15,809 15,807 - 67,212 65,647 2
Trading account and foreign exchange gains 8,397 13,690 -39 29,874 40,828 -27
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 (4,049) (6,136) - (16,672) (16,126) -
Other revenues from operations 103,050 104,404 -1 399,733 453,985 -12
------- ------- ------- -------
Total other income 451,643 446,246 1 1,779,273 1,865,205 -5
Other expense
Salaries and employee benefits 345,135 336,159 3 1,404,950 1,355,178 4
Equipment and net occupancy 62,335 68,670 -9 269,299 264,327 2
Printing, postage and supplies 8,881 8,808 1 38,201 39,557 -3
Amortization of core deposit and other
intangible assets 7,170 10,439 -31 33,824 46,912 -28
FDIC assessments 11,695 17,574 -33 55,531 69,584 -20
Other costs of operations 244,892 301,422 -19 941,052 860,327 9
------- ------- ------- -------
Total other expense 680,108 743,072 -8 2,742,857 2,635,885 4
Income before income taxes 420,375 327,658 28 1,588,862 1,717,549 -7
Applicable income taxes 142,826 106,236 34 522,616 579,069 -10
------- ------- ------- -------
Net income $277,549 221,422 25% $1,066,246 1,138,480 -6%
======== ======= ========== =========
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 2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Interest income $756,612 743,023 734,290 722,952 734,466
Interest expense 74,772 73,964 65,176 66,519 67,982
------ ------ ------ ------ ------
Net interest income 681,840 669,059 669,114 656,433 666,484
Provision for credit losses 33,000 29,000 30,000 32,000 42,000
------ ------ ------ ------ ------
Net interest income after
provision for credit losses 648,840 640,059 639,114 624,433 624,484
Other income
Mortgage banking revenues 93,675 93,532 95,656 80,049 82,169
Service charges on deposit accounts 106,319 110,071 107,368 104,198 110,436
Trust income 128,442 128,671 129,893 121,252 125,876
Brokerage services income 15,809 17,416 17,487 16,500 15,807
Trading account and foreign exchange gains 8,397 6,988 8,042 6,447 13,690
Equity in earnings of Bayview Lending Group LLC (4,049) (4,114) (4,055) (4,454) (6,136)
Other revenues from operations 103,050 98,547 102,021 96,115 104,404
------- ------ ------- ------ -------
Total other income 451,643 451,111 456,412 420,107 446,246
Other expense
Salaries and employee benefits 345,135 348,776 339,713 371,326 336,159
Equipment and net occupancy 62,335 67,713 68,084 71,167 68,670
Printing, postage and supplies 8,881 9,184 9,180 10,956 8,808
Amortization of core deposit and other
intangible assets 7,170 7,358 9,234 10,062 10,439
FDIC assessments 11,695 13,193 15,155 15,488 17,574
Other costs of operations 244,892 233,060 239,828 223,272 301,422
------- ------- ------- ------- -------
Total other expense 680,108 679,284 681,194 702,271 743,072
Income before income taxes 420,375 411,886 414,332 342,269 327,658
Applicable income taxes 142,826 136,542 129,996 113,252 106,236
------- ------- ------- ------- -------
Net income $277,549 275,344 284,336 229,017 221,422
======== ======= ======= ======= =======
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
December 31
-----------
Dollars in thousands 2014 2013 Change
---- ---- ------
ASSETS
Cash and due from banks $1,289,965 1,573,361 -18%
Interest-bearing deposits at banks 6,470,867 1,651,138 292
Federal funds sold and agreements
to resell securities 83,392 99,573 -16
Trading account assets 308,175 376,131 -18
Investment securities 12,993,542 8,796,497 48
Loans and leases:
Commercial, financial, etc. 19,461,292 18,705,216 4
Real estate - commercial 27,567,569 26,148,208 5
Real estate - consumer 8,657,301 8,928,221 -3
Consumer 10,982,794 10,291,514 7
---------- ----------
Total loans and leases, net of unearned discount 66,668,956 64,073,159 4
Less: allowance for credit losses 919,562 916,676 -
------- -------
Net loans and leases 65,749,394 63,156,483 4
Goodwill 3,524,625 3,524,625 -
Core deposit and other intangible assets 35,027 68,851 -49
Other assets 6,230,548 5,915,732 5
--------- ---------
Total assets $96,685,535 85,162,391 14%
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $26,947,880 24,661,007 9%
Interest-bearing deposits 46,457,591 42,134,859 10
Deposits at Cayman Islands office 176,582 322,746 -45
------- -------
Total deposits 73,582,053 67,118,612 10
Short-term borrowings 192,676 260,455 -26
Accrued interest and other liabilities 1,567,951 1,368,922 15
Long-term borrowings 9,006,959 5,108,870 76
--------- ---------
Total liabilities 84,349,639 73,856,859 14
Shareholders' equity:
Preferred 1,231,500 881,500 40
Common (1) 11,104,396 10,424,032 7
---------- ----------
Total shareholders' equity 12,335,896 11,305,532 9
---------- ----------
Total liabilities and shareholders' equity $96,685,535 85,162,391 14%
=========== ==========
(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $181.0 million
at December 31, 2014 and $64.2 million at December 31, 2013.
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five Quarter Trend
December 31, September 30, June 30, March 31, December 31,
Dollars in thousands 2014 2014 2014 2014 2013
---- ---- ---- ---- ----
ASSETS
Cash and due from banks $1,289,965 1,445,877 1,827,197 1,671,052 1,573,361
Interest-bearing deposits at banks 6,470,867 7,676,064 3,032,530 3,299,185 1,651,138
Federal funds sold and agreements
to resell securities 83,392 77,766 90,239 92,066 99,573
Trading account assets 308,175 296,913 313,325 314,807 376,131
Investment securities 12,993,542 13,348,368 12,120,195 10,364,249 8,796,497
Loans and leases:
Commercial, financial, etc. 19,461,292 19,112,009 19,105,892 18,896,070 18,705,216
Real estate - commercial 27,567,569 26,942,847 26,374,274 26,104,086 26,148,208
Real estate - consumer 8,657,301 8,663,408 8,656,766 8,774,095 8,928,221
Consumer 10,982,794 10,854,095 10,610,761 10,360,827 10,291,514
---------- ---------- ---------- ---------- ----------
Total loans and leases, net of unearned discount 66,668,956 65,572,359 64,747,693 64,135,078 64,073,159
Less: allowance for credit losses 919,562 918,633 917,666 916,768 916,676
------- ------- ------- ------- -------
Net loans and leases 65,749,394 64,653,726 63,830,027 63,218,310 63,156,483
Goodwill 3,524,625 3,524,625 3,524,625 3,524,625 3,524,625
Core deposit and other intangible assets 35,027 42,197 49,555 58,789 68,851
Other assets 6,230,548 6,162,806 6,047,309 5,987,277 5,915,732
--------- --------- --------- --------- ---------
Total assets $96,685,535 97,228,342 90,835,002 88,530,360 85,162,391
=========== ========== ========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $26,947,880 27,440,524 26,088,763 25,244,200 24,661,007
Interest-bearing deposits 46,457,591 46,659,442 43,502,602 43,207,286 42,134,859
Deposits at Cayman Islands office 176,582 241,536 237,890 247,880 322,746
------- ------- ------- ------- -------
Total deposits 73,582,053 74,341,502 69,829,255 68,699,366 67,118,612
Short-term borrowings 192,676 164,609 161,631 230,209 260,455
Accrued interest and other liabilities 1,567,951 1,327,524 1,283,430 1,462,725 1,368,922
Long-term borrowings 9,006,959 9,061,391 7,391,931 6,251,197 5,108,870
--------- --------- --------- --------- ---------
Total liabilities 84,349,639 84,895,026 78,666,247 76,643,497 73,856,859
Shareholders' equity:
Preferred 1,231,500 1,231,500 1,231,500 1,231,500 881,500
Common (1) 11,104,396 11,101,816 10,937,255 10,655,363 10,424,032
---------- ---------- ---------- ---------- ----------
Total shareholders' equity 12,335,896 12,333,316 12,168,755 11,886,863 11,305,532
---------- ---------- ---------- ---------- ----------
Total liabilities and shareholders' equity $96,685,535 97,228,342 90,835,002 88,530,360 85,162,391
=========== ========== ========== ========== ==========
(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $181.0 million at December 31, 2014, $25.3 million
at March 31, 2014 and $64.2 million at December 31, 2013, and accumulated other comprehensive income, net of applicable income tax
effect, of $12.5 million at September 30, 2014 and $40.3 million at June 30, 2014.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended Change in balance
Year ended
December 31, December 31, September 30, December 31, 2014 from
December 31,
Dollars in millions 2014 2013 2014 December 31, September 30, 2014 2013 Change in
---- ---- ---- ---- ----
Balance Rate Balance Rate Balance Rate 2013 2014 Balance Rate Balance Rate balance
------- ---- ------- ---- ------- ---- ---- ---- ------- ---- ------- ---- -------
ASSETS
Interest-bearing deposits at banks $9,054 .25% 2,948 .25% 5,083 .25% 207% 78% $5,342 .25% 2,139 .24% 150%
Federal funds sold and agreements
to resell securities 86 .08 115 .07 80 .07 -26 7 89 .07 128 .09 -31
Trading account assets 80 1.76 82 1.36 70 1.65 -3 15 76 1.81 78 1.91 -2
Investment securities 12,978 2.82 8,354 3.32 12,780 2.89 55 2 11,509 3.03 6,615 3.32 74
Loans and leases, net of unearned discount
Commercial, financial, etc. 19,117 3.25 18,096 3.41 18,889 3.29 6 1 18,867 3.31 17,736 3.54 6
Real estate - commercial 27,064 4.24 26,231 4.48 26,487 4.19 3 2 26,461 4.26 26,083 4.53 1
Real estate - consumer 8,654 4.19 8,990 4.20 8,634 4.17 -4 - 8,719 4.23 10,136 4.12 -14
Consumer 10,932 4.49 10,233 4.60 10,753 4.52 7 2 10,618 4.53 11,098 4.60 -4
Total loans and leases, net 65,767 4.01 63,550 4.17 64,763 4.00 3 2 64,665 4.05 65,053 4.24 -1
------ ------ ------ ------ ------
Total earning assets 87,965 3.44 75,049 3.92 82,776 3.59 17 6 81,681 3.65 74,013 4.03 10
Goodwill 3,525 3,525 3,525 - - 3,525 3,525 -
Core deposit and other intangible assets 38 74 45 -48 -16 50 90 -44
Other assets 7,116 6,682 6,899 6 3 6,887 6,034 14
----- ----- ----- ----- -----
Total assets $98,644 85,330 93,245 16% 6% $92,143 83,662 10%
======= ====== ====== ======= ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $1,083 .14 933 .13 1,037 .15 16% 4% $1,034 .14 923 .14 12%
Savings deposits 42,949 .10 38,079 .14 41,056 .11 13 5 40,474 .11 36,739 .15 10
Time deposits 3,128 .50 3,617 .51 3,227 .47 -14 -3 3,290 .47 4,045 .65 -19
Deposits at Cayman Islands office 265 .22 414 .21 325 .20 -36 -18 327 .21 496 .21 -34
--- --- ---
Total interest-bearing deposits 47,425 .13 43,043 .17 45,645 .14 10 4 45,125 .14 42,203 .20 7
------ ------ ------ ------ ------
Short-term borrowings 195 .05 287 .06 181 .04 -32 7 215 .05 390 .11 -45
Long-term borrowings 8,954 2.62 5,009 3.91 8,547 2.69 79 5 7,492 2.90 4,941 4.05 52
----- ----- ----- ----- -----
Total interest-bearing liabilities 56,574 .52 48,339 .56 54,373 .54 17 4 52,832 .53 47,534 .60 11
Noninterest-bearing deposits 28,090 24,169 25,127 16 12 25,715 23,721 8
Other liabilities 1,538 1,713 1,498 -10 3 1,499 1,685 -11
----- ----- ----- ----- -----
Total liabilities 86,202 74,221 80,998 16 6 80,046 72,940 10
Shareholders' equity 12,442 11,109 12,247 12 2 12,097 10,722 13
------ ------ ------ ------ ------
Total liabilities and shareholders' equity $98,644 85,330 93,245 16% 6% $92,143 83,662 10%
======= ====== ====== ======= ======
Net interest spread 2.92 3.36 3.05 3.12 3.43
Contribution of interest-free funds .18 .20 .18 .19 .22
Net interest margin 3.10% 3.56% 3.23% 3.31% 3.65%
M&T BANK CORPORATION
Reconciliation of GAAP to Non-GAAP Measures
Three months ended Year ended
December 31 December 31
----------- -----------
2014 2013 2014 2013
---- ---- ---- ----
Income statement data
---------------------
In thousands, except per share
Net income
Net income $277,549 221,422 $1,066,246 1,138,480
Amortization of core deposit and other
intangible assets (1) 4,380 6,375 20,657 28,644
Merger-related expenses (1) - - - 7,511
Net operating income $281,929 227,797 $1,086,903 1,174,635
======== ======= ========== =========
Earnings per common share
Diluted earnings per common share $1.92 1.56 $7.42 8.20
Amortization of core deposit and other
intangible assets (1) .03 .05 .15 .22
Merger-related expenses (1) - - - .06
Diluted net operating earnings per common share $1.95 1.61 $7.57 8.48
===== ==== ===== ====
Other expense
Other expense $680,108 743,072 $2,742,857 2,635,885
Amortization of core deposit and other
intangible assets (7,170) (10,439) (33,824) (46,912)
Merger-related expenses - - - (12,364)
Noninterest operating expense $672,938 732,633 $2,709,033 2,576,609
======== ======= ========== =========
Merger-related expenses
Salaries and employee benefits $ - - $ - 836
Equipment and net occupancy - - - 690
Printing, postage and supplies - - - 1,825
Other costs of operations - - - 9,013
Total $ - - $ - 12,364
=== === === ======
Efficiency ratio
Noninterest operating expense (numerator) $672,938 732,633 $2,709,033 2,576,609
======== ======= ========== =========
Taxable-equivalent net interest income 687,847 672,683 2,700,088 2,698,200
Other income 451,643 446,246 1,779,273 1,865,205
Less: Gain on bank investment securities - - - 56,457
Net OTTI losses recognized in earnings - - - (9,800)
Denominator $1,139,490 1,118,929 $4,479,361 4,516,748
========== ========= ========== =========
Efficiency ratio 59.06% 65.48% 60.48% 57.05%
===== ===== ===== =====
Balance sheet data
------------------
In millions
Average assets
Average assets $98,644 85,330 $92,143 83,662
Goodwill (3,525) (3,525) (3,525) (3,525)
Core deposit and other intangible assets (38) (74) (50) (90)
Deferred taxes 12 23 15 27
--- --- --- ---
Average tangible assets $95,093 81,754 $88,583 80,074
======= ====== ======= ======
Average common equity
Average total equity $12,442 11,109 $12,097 10,722
Preferred stock (1,231) (881) (1,192) (878)
Average common equity 11,211 10,228 10,905 9,844
Goodwill (3,525) (3,525) (3,525) (3,525)
Core deposit and other intangible assets (38) (74) (50) (90)
Deferred taxes 12 23 15 27
--- --- --- ---
Average tangible common equity $7,660 6,652 $7,345 6,256
====== ===== ====== =====
At end of quarter
Total assets
Total assets $96,686 85,162
Goodwill (3,525) (3,525)
Core deposit and other intangible assets (35) (69)
Deferred taxes 11 21
Total tangible assets $93,137 81,589
======= ======
Total common equity
Total equity $12,336 11,306
Preferred stock (1,231) (882)
Undeclared dividends - cumulative preferred stock (3) (3)
Common equity, net of undeclared cumulative
preferred dividends 11,102 10,421
Goodwill (3,525) (3,525)
Core deposit and other intangible assets (35) (69)
Deferred taxes 11 21
Total tangible common equity $7,553 6,848
====== =====
(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,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Income statement data
---------------------
In thousands, except per share
Net income
Net income $277,549 275,344 284,336 229,017 221,422
Amortization of core deposit and other
intangible assets (1) 4,380 4,494 5,638 6,145 6,375
Net operating income $281,929 279,838 289,974 235,162 227,797
======== ======= ======= ======= =======
Earnings per common share
Diluted earnings per common share $1.92 1.91 1.98 1.61 1.56
Amortization of core deposit and other
intangible assets (1) .03 .03 .04 .05 .05
Diluted net operating earnings per common share $1.95 1.94 2.02 1.66 1.61
===== ==== ==== ==== ====
Other expense
Other expense $680,108 679,284 681,194 702,271 743,072
Amortization of core deposit and other
intangible assets (7,170) (7,358) (9,234) (10,062) (10,439)
Noninterest operating expense $672,938 671,926 671,960 692,209 732,633
======== ======= ======= ======= =======
Efficiency ratio
Noninterest operating expense (numerator) $672,938 671,926 671,960 692,209 732,633
======== ======= ======= ======= =======
Taxable-equivalent net interest income 687,847 674,900 674,963 662,378 672,683
Other income 451,643 451,111 456,412 420,107 446,246
Denominator $1,139,490 1,126,011 1,131,375 1,082,485 1,118,929
========== ========= ========= ========= =========
Efficiency ratio 59.06% 59.67% 59.39% 63.95% 65.48%
===== ===== ===== ===== =====
Balance sheet data
------------------
In millions
Average assets
Average assets $98,644 93,245 89,873 86,665 85,330
Goodwill (3,525) (3,525) (3,525) (3,525) (3,525)
Core deposit and other intangible assets (38) (45) (53) (64) (74)
Deferred taxes 12 14 16 20 23
--- --- --- --- ---
Average tangible assets $95,093 89,689 86,311 83,096 81,754
======= ====== ====== ====== ======
Average common equity
Average total equity $12,442 12,247 12,039 11,648 11,109
Preferred stock (1,231) (1,232) (1,231) (1,072) (881)
Average common equity 11,211 11,015 10,808 10,576 10,228
Goodwill (3,525) (3,525) (3,525) (3,525) (3,525)
Core deposit and other intangible assets (38) (45) (53) (64) (74)
Deferred taxes 12 14 16 20 23
--- --- --- ---
Average tangible common equity $7,660 7,459 7,246 7,007 6,652
====== ===== ===== ===== =====
At end of quarter
Total assets
Total assets $96,686 97,228 90,835 88,530 85,162
Goodwill (3,525) (3,525) (3,525) (3,525) (3,525)
Core deposit and other intangible assets (35) (42) (49) (59) (69)
Deferred taxes 11 13 15 19 21
Total tangible assets $93,137 93,674 87,276 84,965 81,589
======= ====== ====== ====== ======
Total common equity
Total equity $12,336 12,333 12,169 11,887 11,306
Preferred stock (1,231) (1,232) (1,232) (1,232) (882)
Undeclared dividends - cumulative preferred stock (3) (2) (3) (3) (3)
---
Common equity, net of undeclared cumulative
preferred dividends 11,102 11,099 10,934 10,652 10,421
Goodwill (3,525) (3,525) (3,525) (3,525) (3,525)
Core deposit and other intangible assets (35) (42) (49) (59) (69)
Deferred taxes 11 13 15 19 21
Total tangible common equity $7,553 7,545 7,375 7,087 6,848
====== ===== ===== ===== =====
(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-2014-fourth-quarter-and-full-year-profits-300022773.html
SOURCE M&T Bank Corporation
