M&T BANK CORPORATION 
By 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
