M&T Bank Corporation Announces First Quarter Profits
BUFFALO, N.Y., April 19, 2010 /PRNewswire via COMTEX News Network/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2010.
GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2010 rose to $1.15, up 135% from $.49 in the first quarter of 2009 and 11% higher than $1.04 in the final 2009 quarter. GAAP-basis net income in the recently completed quarter totaled $151 million, compared with $64 million in the year-earlier quarter and $137 million in the fourth quarter of 2009. GAAP-basis net income for the initial quarter of 2010 expressed as an annualized rate of return on average assets and average common stockholders' equity was .89% and 7.86%, respectively, improved from .40% and 3.61%, respectively, in the initial quarter of 2009 and from .79% and 7.09%, respectively, in the fourth quarter of 2009.
Commenting on the recent quarter's performance, René F. Jones, Executive Vice President and Chief Financial Officer, noted, "M&T posted strong financial results in the first quarter, led by lower credit costs and further widening of our net interest margin. Average core deposits were up again for this period, rising an annualized 6% from the fourth quarter of last year. Our tangible common equity ratio rose significantly from the 2009 year-end, up 30 basis points to 5.43%. The results illustrate how our fundamental business philosophy of offering banking services to consumers and businesses in our local communities, of prudent underwriting based on local knowledge and of making acquisitions only when and where they make sense has never been more relevant."
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 expenses are considered by management to be "nonoperating" in nature. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results. Reconciliations of GAAP to non-GAAP measures are provided herein.
Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related expenses, increased for the fourth consecutive quarter, aggregating $1.23 in the recent quarter, up from $.59 and $1.16 in the first and fourth quarters of 2009, respectively. Net operating income for the quarter ended March 31, 2010 rose to $161 million, improved from $75 million and $151 million in the quarters ended March 31, 2009 and December 31, 2009, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common stockholders' equity, net operating income was 1.00% and 17.34%, respectively, in the first quarter of 2010, up from .50% and 9.36% in the initial quarter of 2009 and .92% and 16.73% in the final 2009 quarter.
Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $562 million in the first quarter of 2010, compared with $453 million in the year-earlier quarter and $565 million in the final quarter of 2009. The significant improvement from 2009's initial quarter reflects a 59 basis point widening of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, and a higher level of average earning assets, which rose $2.8 billion or 5% to $60.3 billion from $57.5 billion in the first quarter of 2009. The net interest margin was 3.78% in the recent quarter, compared with 3.19% in the first 2009 quarter. The most significant factors for the higher net interest margin were lower interest rates paid on deposits and long-term borrowings. The higher earning asset level in the recent quarter resulted from the impact of assets obtained in the 2009 acquisitions related to Provident Bankshares Corporation ("Provident") and Bradford Bank ("Bradford"), which totaled approximately $5.5 billion at the respective acquisition dates. Net interest margin in the recent quarter improved 7 basis points from 3.71% in last year's fourth quarter.
Provision for Credit Losses/Asset Quality. The provision for credit losses was $105 million in the first quarter of 2010, down from $158 million and $145 million in the year-earlier quarter and in the fourth quarter of 2009, respectively. Net charge-offs of loans during the recent quarter were $95 million, down from $100 million in the initial quarter of 2009 and $135 million in the final 2009 quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .74% and .83% in the first quarters of 2010 and 2009, respectively, and 1.03% in 2009's final quarter.
Reflecting the impact of the poor economic environment on businesses and consumers, loans classified as nonaccrual totaled $1.34 billion, or 2.60% of total loans at March 31, 2010, compared with $1.33 billion or 2.56% at December 31, 2009 and $1.00 billion or 2.05% at March 31, 2009. During the recent quarter, an increase in loans obtained in the Provident and Bradford transactions classified as nonaccrual was largely offset by a decline in nonaccrual loans associated with the legacy M&T portfolio. Assets taken in foreclosure of defaulted loans were $95 million at each of March 31, 2010 and December 31, 2009, compared with $100 million at March 31, 2009.
Loans past due 90 days or more and accruing interest totaled $203 million at the end of the recently completed quarter, including loans guaranteed by government-related entities of $195 million. Such past due loans were $143 million and $208 million at March 31, 2009 and December 31, 2009, respectively, including $127 million and $193 million of government guaranteed loans at those respective dates.
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. Reflecting those analyses, the allowance totaled $891 million at March 31, 2010, increased from $846 million a year earlier and $878 million at December 31, 2009. Beginning in 2009, GAAP requires that expected credit losses associated with loans obtained in an acquisition be reflected in the estimation of loan fair value as of each respective acquisition date and prohibits any carryover of the acquired entity's allowance for credit losses. Excluding loans obtained in the Provident and Bradford acquisition transactions, the allowance-to-legacy loan ratio increased to 1.86% at March 31, 2010 from 1.73% at March 31, 2009. That same ratio was 1.83% at December 31, 2009.
Noninterest Income and Expense. Noninterest income aggregated $258 million in the first quarter of 2010, compared with $232 million and $266 million in the first and fourth quarters of 2009, respectively. Reflected in those amounts were losses from investment securities of $26 million, $32 million and $34 million, respectively, each predominantly due to other-than-temporary impairment charges related to certain of M&T's privately issued collateralized mortgage obligations held in the available-for-sale investment securities portfolio. Because those investment securities were previously reflected at fair value on the consolidated balance sheet, the impairment charges did not reduce stockholders' equity.
Excluding gains and losses from investment securities, noninterest income of $284 million in the recently completed quarter was up 8% from $264 million in the initial quarter of 2009. Contributing to that rise were service charges on acquisition-related deposit accounts and higher credit-related fees, partially offset by lower mortgage banking revenues. Noninterest income in the fourth quarter of 2009, also excluding gains and losses from investment securities, totaled $300 million. The decline in such income during the recent quarter as compared with the final 2009 quarter was due, in part, to lower service charges on deposit accounts and mortgage banking revenues.
Noninterest expense in the first quarter of 2010 aggregated $489 million, compared with $438 million and $478 million in the first and fourth quarters of 2009, 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 these expenses, noninterest operating expenses were $473 million in the recently completed quarter, $421 million in the first quarter of 2009 and $455 million in the final 2009 quarter. The higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was due largely to the operations obtained in the 2009 acquisitions and higher FDIC assessments. The rise in expenses from the fourth quarter of 2009 was largely the result of seasonally higher costs for stock-based compensation, payroll-related taxes and the Company's contributions for retirement savings plan benefits related to incentive compensation payments.
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 and gains on merger transactions), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 55.9% in the first quarter of 2010, compared with 58.7% in the year-earlier period and 52.7% in the fourth quarter of 2009.
Balance Sheet. M&T had total assets of $68.4 billion at March 31, 2010, up from $64.9 billion a year earlier. Loans and leases, net of unearned discount, were $51.4 billion at the recent quarter-end, up 5% from $48.9 billion at March 31, 2009. Total deposits rose 12% to $47.5 billion at March 31, 2010 from $42.5 billion a year earlier. Deposits at domestic offices increased $6.4 billion, or 16%, to $46.7 billion at the most recent quarter-end from $40.3 billion at March 31, 2009.
Total stockholders' equity increased 15% to $7.9 billion at March 31, 2010 from $6.9 billion at March 31, 2009, representing 11.57% of total assets at the recent quarter-end and 10.64% a year earlier. Common stockholders' equity was $7.2 billion, or $60.40 per share at March 31, 2010, up from $6.3 billion, or $56.95 per share, a year earlier. Tangible equity per common share rose to $29.59 at March 31, 2010 from $26.90 a year earlier. Common stockholders' equity per share and tangible equity per common share were $59.31 and $28.27, respectively, at December 31, 2009. In the calculation of tangible equity per common share, common stockholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances, which aggregated $3.7 billion and $3.3 billion at March 31, 2010 and 2009, respectively. M&T's tangible common equity to tangible assets ratio was 5.43% at March 31, 2010, compared with 4.86% and 5.13% at March 31, 2009 and December 31, 2009, respectively.
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 9:30 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID #68684577. The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Wednesday, April 21, 2010 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to the ID #68684577. The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/conference.cfm.
M&T is a bank holding company whose banking subsidiaries, M&T Bank and M&T Bank, National Association, operate branch offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia.
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; 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 required capital levels; 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 2010 2009 Change
---- ---- ------
Performance
-----------
Net income $150,955 64,221 135%
Net income available to common
equity 138,341 55,322 150
Per common share:
Basic earnings $1.16 .49 137%
Diluted earnings 1.15 .49 135
Cash dividends $.70 .70 -
Common shares outstanding:
Average - diluted (1) 118,256 110,439 7%
Period end (2) 118,823 111,132 7
Return on (annualized):
Average total assets .89% .40%
Average common stockholders' equity 7.86% 3.61%
Taxable-equivalent net interest
income $562,257 452,740 24%
Yield on average earning assets 4.59% 4.65%
Cost of interest-bearing
liabilities 1.04% 1.74%
Net interest spread 3.55% 2.91%
Contribution of interest-free funds .23% .28%
Net interest margin 3.78% 3.19%
Net charge-offs to average total
net loans (annualized) .74% .83%
Net operating results (3)
-------------------------
Net operating income $160,953 75,034 115%
Diluted net operating earnings per
common share 1.23 .59 108
Return on (annualized):
Average tangible assets 1.00% .50%
Average tangible common equity 17.34% 9.36%
Efficiency ratio 55.88% 58.68%
At March 31
-----------
Loan quality 2010 2009 Change
------------ ---- ---- ------
Nonaccrual loans $1,339,992 1,003,987 33%
Real estate and other foreclosed
assets 95,362 100,270 -5%
Total nonperforming assets $1,435,354 1,104,257 30%
========== =========
Accruing loans past due 90 days or
more $203,443 142,842 42%
Renegotiated loans $220,885 130,932 69%
Government guaranteed loans
included in totals
above:
Nonaccrual loans $37,048 38,460 -4%
Accruing loans past due 90 days or
more 194,523 127,237 53%
Purchased impaired loans (4):
Outstanding customer balance $148,686 - -
Carrying amount 73,890 - -
Nonaccrual loans to total net loans 2.60% 2.05%
Allowance for credit losses to:
Legacy loans 1.86% 1.73%
Total loans 1.73% 1.73%
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core
deposit and other intangible assets and merger-related gains and
expenses which, except in the calculation of the efficiency ratio,
are net of applicable income tax effects. Reconciliations of net
income with net operating income appear herein.
(4) 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 September
thousands, March 31, December 31, 30,
except per share 2010 2009 2009
---- ---- ----
Performance
-----------
Net income $150,955 136,818 127,664
Net income
available to
common equity 138,341 124,251 115,143
Per common share:
Basic earnings $1.16 1.05 .97
Diluted earnings 1.15 1.04 .97
Cash dividends $.70 .70 .70
Common shares
outstanding:
Average -diluted
(1) 118,256 117,672 117,547
Period end (2) 118,823 118,298 118,156
Return on
(annualized):
Average total
assets .89% .79% .73%
Average common
stockholders'
equity 7.86% 7.09% 6.72%
Taxable-
equivalent net
interest income $562,257 564,606 553,450
Yield on average
earning assets 4.59% 4.58% 4.60%
Cost of interest-
bearing
liabilities 1.04% 1.13% 1.26%
Net interest
spread 3.55% 3.45% 3.34%
Contribution of
interest-free
funds .23% .26% .27%
Net interest
margin 3.78% 3.71% 3.61%
Net charge-offs
to average total
net loans
(annualized) .74% 1.03% 1.07%
Net operating
results (3)
-------------
Net operating
income $160,953 150,776 128,761
Diluted net
operating
earnings per
common share 1.23 1.16 .98
Return on
(annualized):
Average tangible
assets 1.00% .92% .78%
Average tangible
common equity 17.34% 16.73% 14.87%
Efficiency ratio 55.88% 52.69% 55.21%
September
March 31, December 31, 30,
Loan quality 2010 2009 2009
------------ ---- ---- ----
Nonaccrual loans $1,339,992 1,331,702 1,228,341
Real estate and
other foreclosed
assets 95,362 94,604 84,676
Total
nonperforming
assets $1,435,354 1,426,306 1,313,017
========== ========= =========
Accruing loans
past due 90 days
or more $203,443 208,080 182,750
Renegotiated
loans $220,885 212,548 190,917
Government
guaranteed loans
included in
totals
above:
Nonaccrual loans $37,048 38,579 38,590
Accruing loans
past due 90 days
or more 194,523 193,495 172,701
Purchased
impaired loans
(4):
Outstanding
customer balance $148,686 172,772 209,138
Carrying amount 73,890 88,170 108,058
Nonaccrual loans
to total net
loans 2.60% 2.56% 2.35%
Allowance for
credit losses
to:
Legacy loans 1.86% 1.83% 1.81%
Total loans 1.73% 1.69% 1.66%
Three months ended
------------------
Amounts in thousands, June 30, March 31,
except per share 2009 2009
---- ----
Performance
-----------
Net income 51,188 64,221
Net income available to common
equity 40,964 55,322
Per common share:
Basic earnings .36 .49
Diluted earnings .36 .49
Cash dividends .70 .70
Common shares outstanding:
Average - diluted (1) 113,521 110,439
Period end (2) 118,012 111,132
Return on (annualized):
Average total assets .31% .40%
Average common stockholders'
equity 2.53% 3.61%
Taxable-equivalent net interest
income 506,781 452,740
Yield on average earning assets 4.62% 4.65%
Cost of interest-bearing
liabilities 1.47% 1.74%
Net interest spread 3.15% 2.91%
Contribution of interest-free
funds .28% .28%
Net interest margin 3.43% 3.19%
Net charge-offs to average total
net loans (annualized) 1.09% .83%
Net operating results (3)
-------------------------
Net operating income 100,805 75,034
Diluted net operating earnings
per common share .79 .59
Return on (annualized):
Average tangible assets .64% .50%
Average tangible common equity 12.08% 9.36%
Efficiency ratio 60.03% 58.68%
June 30, March 31,
Loan quality 2009 2009
------------ ---- ----
Nonaccrual loans 1,111,423 1,003,987
Real estate and other foreclosed
assets 90,461 100,270
Total nonperforming assets 1,201,884 1,104,257
========= =========
Accruing loans past due 90 days
or more 155,125 142,842
Renegotiated loans 170,950 130,932
Government guaranteed loans
included in totals
above:
Nonaccrual loans 38,075 38,460
Accruing loans past due 90 days
or more 143,886 127,237
Purchased impaired loans (4):
Outstanding customer balance 170,400 -
Carrying amount 97,730 -
Nonaccrual loans to total net
loans 2.11% 2.05%
Allowance for credit losses to:
Legacy loans 1.76% 1.73%
Total loans 1.62% 1.73%
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core
deposit and other intangible assets and merger-related gains and
expenses which, except in the calculation of the efficiency ratio,
are net of applicable income tax effects. Reconciliations of net
income with net operating income appear herein.
(4) 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 2010 2009 Change
---- ---- ------
Interest income $676,386 654,512 3%
Interest expense 120,052 206,705 -42
------- -------
Net interest income 556,334 447,807 24
Provision for credit losses 105,000 158,000 -34
------- -------
Net interest income after
provision for credit losses 451,334 289,807 56
Other income
Mortgage banking revenues 41,476 56,233 -26
Service charges on deposit
accounts 120,295 101,029 19
Trust income 30,928 34,880 -11
Brokerage services income 13,106 15,393 -15
Trading account and foreign
exchange gains 4,699 1,435 227
Gain on bank investment
securities 459 575 -
Other-than-temporary impairment
losses
recognized in earnings (26,802) (32,199) -
Equity in earnings of Bayview
Lending Group LLC (5,714) (4,144) -
Other revenues from operations 79,259 59,139 34
------ ------
Total other income 257,706 232,341 11
Other expense
Salaries and employee benefits 264,046 249,392 6
Equipment and net occupancy 55,401 48,172 15
Printing, postage and supplies 9,043 9,095 -1
Amortization of core deposit and
other
intangible assets 16,475 15,370 7
FDIC assessments 21,348 5,856 265
Other costs of operations 123,049 110,461 11
------- -------
Total other expense 489,362 438,346 12
Income before income taxes 219,678 83,802 162
Applicable income taxes 68,723 19,581 251
------ ------
Net income $150,955 64,221 135%
======== ======
M&T BANK CORPORATION
Condensed Consolidated Statement of Income, Five Quarter Trend
Three months ended
------------------
December September
March 31, 31, 30,
Dollars in thousands 2010 2009 2009
---- ---- ----
Interest income $676,386 692,669 700,593
Interest expense 120,052 133,950 152,938
------- ------- -------
Net interest income 556,334 558,719 547,655
Provision for credit
losses 105,000 145,000 154,000
------- ------- -------
Net interest income
after
provision for credit
losses 451,334 413,719 393,655
Other income
Mortgage banking
revenues 41,476 50,176 48,169
Service charges on
deposit accounts 120,295 127,185 128,502
Trust income 30,928 29,660 31,586
Brokerage services
income 13,106 14,396 14,329
Trading account and
foreign exchange gains 4,699 6,669 7,478
Gain (loss) on bank
investment securities 459 354 (56)
Other-than-temporary
impairment losses
recognized in earnings (26,802) (34,296) (47,033)
Equity in earnings of
Bayview Lending Group
LLC (5,714) (10,635) (10,912)
Other revenues from
operations 79,259 82,381 106,163
------ ------ -------
Total other income 257,706 265,890 278,226
Other expense
Salaries and employee
benefits 264,046 247,080 255,449
Equipment and net
occupancy 55,401 53,703 58,195
Printing, postage and
supplies 9,043 9,338 8,229
Amortization of core
deposit and other
intangible assets 16,475 16,730 16,924
FDIC assessments 21,348 19,902 21,124
Other costs of
operations 123,049 131,698 140,135
------- ------- -------
Total other expense 489,362 478,451 500,056
Income before income
taxes 219,678 201,158 171,825
Applicable income taxes 68,723 64,340 44,161
------ ------ ------
Net income $150,955 136,818 127,664
======== ======= =======
Three months ended
------------------
March
June 30, 31,
Dollars in thousands 2009 2009
---- ----
Interest income 677,423 654,512
Interest expense 175,856 206,705
------- -------
Net interest income 501,567 447,807
Provision for credit losses 147,000 158,000
------- -------
Net interest income after
provision for credit losses 354,567 289,807
Other income
Mortgage banking revenues 52,983 56,233
Service charges on deposit accounts 112,479 101,029
Trust income 32,442 34,880
Brokerage services income 13,493 15,393
Trading account and foreign
exchange gains 7,543 1,435
Gain (loss) on bank investment
securities 292 575
Other-than-temporary impairment
losses
recognized in earnings (24,769) (32,199)
Equity in earnings of Bayview
Lending Group LLC (207) (4,144)
Other revenues from operations 77,393 59,139
------ ------
Total other income 271,649 232,341
Other expense
Salaries and employee benefits 249,952 249,392
Equipment and net occupancy 51,321 48,172
Printing, postage and supplies 11,554 9,095
Amortization of core deposit and
other
intangible assets 15,231 15,370
FDIC assessments 49,637 5,856
Other costs of operations 186,015 110,461
------- -------
Total other expense 563,710 438,346
Income before income taxes 62,506 83,802
Applicable income taxes 11,318 19,581
------ ------
Net income 51,188 64,221
====== ======
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
March 31
--------
Dollars in thousands 2010 2009 Change
---- ---- ------
ASSETS
Cash and due from banks $1,033,269 1,117,845 -8%
Interest-bearing deposits at banks 121,305 27,374 343
Federal funds sold and agreements
to resell securities 10,400 125,800 -92
Trading account assets 403,476 591,802 -32
Investment securities 8,104,646 7,686,845 5
Loans and leases:
Commercial, financial, etc 13,220,181 13,986,663 -5
Real estate - commercial 20,724,118 18,833,865 10
Real estate - consumer 5,664,159 5,171,953 10
Consumer 11,835,583 10,925,659 8
---------- ----------
Total loans and leases, net of
unearned discount 51,444,041 48,918,140 5
Less: allowance for credit losses 891,265 845,971 5
------- -------
Net loans and leases 50,552,776 48,072,169 5
Goodwill 3,524,625 3,192,128 10
Core deposit and other intangible
assets 167,545 168,126 -
Other assets 4,521,180 3,901,106 16
--------- ---------
Total assets $68,439,222 64,883,195 5%
=========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Noninterest-bearing deposits at
U.S. offices $13,622,819 9,544,932 43%
Other deposits at U.S. offices 33,125,761 30,763,204 8
Deposits at foreign office 789,825 2,169,220 -64
------- ---------
Total deposits 47,538,405 42,477,356 12
Short-term borrowings 1,870,763 2,641,811 -29
Accrued interest and other
liabilities 1,048,473 1,326,545 -21
Long-term borrowings 10,065,894 11,535,644 -13
---------- ----------
Total liabilities 60,523,535 57,981,356 4
Stockholders' equity:
Preferred 732,769 568,284 29
Common (1) 7,182,918 6,333,555 13
--------- ---------
Total stockholders' equity 7,915,687 6,901,839 15
--------- ---------
Total liabilities and stockholders'
equity $68,439,222 64,883,195 5%
=========== ==========
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $255.2 million at March 31, 2010 and $622.4
million at March 31, 2009.
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five Quarter Trend
March 31, December 31, September 30,
Dollars in
thousands 2010 2009 2009
---- ---- ----
ASSETS
Cash and due from
banks $1,033,269 1,226,223 1,356,508
Interest-bearing
deposits at banks 121,305 133,335 54,443
Federal funds sold
and agreements
to resell
securities 10,400 20,119 17,206
Trading account
assets 403,476 386,984 497,064
Investment
securities 8,104,646 7,780,609 7,634,262
Loans and leases:
Commercial,
financial, etc 13,220,181 13,479,447 13,517,538
Real estate -
commercial 20,724,118 20,949,931 21,007,376
Real estate -
consumer 5,664,159 5,463,463 5,427,260
Consumer 11,835,583 12,043,845 12,251,598
---------- ---------- ----------
Total loans and
leases, net of
unearned discount 51,444,041 51,936,686 52,203,772
Less: allowance
for credit losses 891,265 878,022 867,874
------- ------- -------
Net loans and
leases 50,552,776 51,058,664 51,335,898
Goodwill 3,524,625 3,524,625 3,524,625
Core deposit and
other intangible
assets 167,545 182,418 199,148
Other assets 4,521,180 4,567,422 4,378,296
--------- --------- ---------
Total assets $68,439,222 68,880,399 68,997,450
=========== ========== ==========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Noninterest-
bearing deposits
at U.S. offices $13,622,819 13,794,636 12,730,083
Other deposits at
U.S. offices 33,125,761 32,604,764 32,813,698
Deposits at
foreign office 789,825 1,050,438 1,318,070
------- --------- ---------
Total deposits 47,538,405 47,449,838 46,861,851
Short-term
borrowings 1,870,763 2,442,582 2,927,268
Accrued interest
and other
liabilities 1,048,473 995,056 1,241,576
Long-term
borrowings 10,065,894 10,240,016 10,354,392
---------- ---------- ----------
Total liabilities 60,523,535 61,127,492 61,385,087
Stockholders'
equity:
Preferred 732,769 730,235 727,748
Common (1) 7,182,918 7,022,672 6,884,615
--------- --------- ---------
Total
stockholders'
equity 7,915,687 7,752,907 7,612,363
--------- --------- ---------
Total liabilities
and stockholders'
equity $68,439,222 68,880,399 68,997,450
=========== ========== ==========
June 30, March 31,
Dollars in thousands 2009 2009
---- ----
ASSETS
Cash and due from banks 1,148,428 1,117,845
Interest-bearing deposits at banks 59,950 27,374
Federal funds sold and agreements
to resell securities 2,300 125,800
Trading account assets 495,324 591,802
Investment securities 8,155,434 7,686,845
Loans and leases:
Commercial, financial, etc 14,180,609 13,986,663
Real estate - commercial 20,787,198 18,833,865
Real estate - consumer 5,471,775 5,171,953
Consumer 12,275,062 10,925,659
---------- ----------
Total loans and leases, net of
unearned discount 52,714,644 48,918,140
Less: allowance for credit losses 855,365 845,971
------- -------
Net loans and leases 51,859,279 48,072,169
Goodwill 3,524,625 3,192,128
Core deposit and other intangible
assets 216,072 168,126
Other assets 4,451,805 3,901,106
--------- ---------
Total assets 69,913,217 64,883,195
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits at U.S.
offices 12,403,999 9,544,932
Other deposits at U.S. offices 33,265,704 30,763,204
Deposits at foreign office 1,085,004 2,169,220
--------- ---------
Total deposits 46,754,707 42,477,356
Short-term borrowings 2,951,149 2,641,811
Accrued interest and other
liabilities 1,238,959 1,326,545
Long-term borrowings 11,568,238 11,535,644
---------- ----------
Total liabilities 62,513,053 57,981,356
Stockholders' equity:
Preferred 725,472 568,284
Common (1) 6,674,692 6,333,555
--------- ---------
Total stockholders' equity 7,400,164 6,901,839
--------- ---------
Total liabilities and stockholders'
equity 69,913,217 64,883,195
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $255.2 million at March 31, 2010, $336.0
million at December 31, 2009, $419.3 million at September 30, 2009,
$580.8 million at June 30, 2009 and $622.4 million at March 31,
2009.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended
------------------
March 31, March 31, December 31,
Dollars in millions 2010 2009 2009
---- ---- ----
Balance Rate Balance Rate Balance Rate
------- ---- ------- ---- ------- ----
ASSETS
Interest-bearing
deposits at banks $127 .02% 20 .16% 74 .08%
Federal funds sold
and agreements
to resell securities 24 .22 102 .23 23 .19
Trading account
assets 60 .80 73 .67 70 .66
Investment securities 8,172 4.44 8,490 4.81 8,197 4.63
Loans and leases, net
of unearned discount
Commercial,
financial, etc. 13,408 3.88 14,031 3.74 13,527 3.87
Real estate -
commercial 20,867 4.48 18,795 4.40 20,950 4.48
Real estate -
consumer 5,742 5.31 5,033 5.59 5,457 5.37
Consumer 11,931 5.26 10,965 5.62 12,153 5.32
Total loans and
leases, net 51,948 4.63 48,824 4.64 52,087 4.59
------ ------ ------
Total earning assets 60,331 4.59 57,509 4.65 60,451 4.58
Goodwill 3,525 3,192 3,525
Core deposit and
other intangible
assets 176 176 191
Other assets 4,851 3,889 4,752
----- ----- -----
Total assets $68,883 64,766 68,919
======= ====== ======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing
deposits
NOW accounts $585 .14 536 .25 579 .18
Savings deposits 25,068 .33 21,203 .80 24,237 .36
Time deposits 7,210 1.66 8,720 2.81 8,304 1.89
Deposits at foreign
office 1,237 .11 2,473 .16 1,300 .11
Total interest-
bearing deposits 34,100 .60 32,932 1.28 34,420 .72
------ ------ ------
Short-term borrowings 2,367 .15 3,477 .27 2,308 .17
Long-term borrowings 10,160 2.74 11,643 3.51 10,253 2.73
------ ------ ------
Total interest-
bearing liabilities 46,627 1.04 48,052 1.74 46,981 1.13
Noninterest-bearing
deposits 13,294 8,555 12,945
Other liabilities 1,094 1,379 1,307
----- ----- -----
Total liabilities 61,015 57,986 61,233
Stockholders' equity 7,868 6,780 7,686
----- ----- -----
Total liabilities and
stockholders' equity $68,883 64,766 68,919
======= ====== ======
Net interest spread 3.55 2.91 3.45
Contribution of
interest-free funds .23 .28 .26
Net interest margin 3.78% 3.19% 3.71%
Change in balance
March 31, 2010 from
-------------------
March December
Dollars in millions 31, 31,
2009 2009
---- ----
ASSETS
Interest-bearing deposits at
banks 535% 73%
Federal funds sold and
agreements
to resell securities -76 4
Trading account assets -18 -14
Investment securities -4 -
Loans and leases, net of
unearned discount
Commercial, financial, etc. -4 -1
Real estate - commercial 11 -
Real estate - consumer 14 5
Consumer 9 -2
Total loans and leases, net 6 -
Total earning assets 5 -
Goodwill 10 -
Core deposit and other
intangible assets - -8
Other assets 25 2
Total assets 6% - %
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing deposits
NOW accounts 9% 1%
Savings deposits 18 3
Time deposits -17 -13
Deposits at foreign office -50 -5
Total interest-bearing
deposits 4 -1
Short-term borrowings -32 3
Long-term borrowings -13 -1
Total interest-bearing
liabilities -3 -1
Noninterest-bearing deposits 55 3
Other liabilities -21 -16
Total liabilities 5 -
Stockholders' equity 16 2
Total liabilities and
stockholders' equity 6% - %
Net interest spread
Contribution of interest-free
funds
Net interest margin
M&T BANK CORPORATION
Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
Three months ended
------------------
December September
March 31, 31, 30,
2010 2009 2009
---- ---- ----
Income statement data
---------------------
In thousands, except per share
Net income
Net income $150,955 136,818 127,664
Amortization of core deposit and
other
intangible assets (1) 9,998 10,152 10,270
Merger-related gain (1) - - (17,684)
Merger-related expenses (1) - 3,806 8,511
--- ----- -----
Net operating income $160,953 150,776 128,761
======== ======= =======
Earnings per common share
Diluted earnings per common share $1.15 1.04 .97
Amortization of core deposit and
other
intangible assets (1) .08 .09 .09
Merger-related gain (1) - - (.15)
Merger-related expenses (1) - .03 .07
--- --- ---
Diluted net operating earnings per
common share $1.23 1.16 .98
===== ==== ===
Other expense
Other expense $489,362 478,451 500,056
Amortization of core deposit and
other
intangible assets (16,475) (16,730) (16,924)
Merger-related expenses - (6,264) (14,010)
--- ------ -------
Noninterest operating expense $472,887 455,457 469,122
======== ======= =======
Merger-related expenses
Salaries and employee benefits $ - 381 870
Equipment and net occupancy - 545 1,845
Printing, postage and supplies - 233 629
Other costs of operations - 5,105 10,666
--- ----- ------
Total $ - 6,264 14,010
=== ===== ======
Balance sheet data
------------------
In millions
Average assets
Average assets $68,883 68,919 69,154
Goodwill (3,525) (3,525) (3,525)
Core deposit and other intangible
assets (176) (191) (208)
Deferred taxes 34 37 41
--- --- ---
Average tangible assets $65,216 65,240 65,462
======= ====== ======
Average common equity
Average total equity $7,868 7,686 7,521
Preferred stock (732) (729) (727)
---- ---- ----
Average common equity 7,136 6,957 6,794
Goodwill (3,525) (3,525) (3,525)
Core deposit and other intangible
assets (176) (191) (208)
Deferred taxes 34 37 41
--- --- ---
Average tangible common equity $3,469 3,278 3,102
====== ===== =====
At end of quarter
Total assets
Total assets $68,439 68,880 68,997
Goodwill (3,525) (3,525) (3,525)
Core deposit and other intangible
assets (167) (182) (199)
Deferred taxes 31 35 39
--- --- ---
Total tangible assets $64,778 65,208 65,312
======= ====== ======
Total common equity
Total equity $7,916 7,753 7,612
Preferred stock (733) (730) (728)
Undeclared dividends -preferred
stock (6) (6) (5)
--- --- ---
Common equity, net of undeclared
preferred dividends 7,177 7,017 6,879
Goodwill (3,525) (3,525) (3,525)
Core deposit and other intangible
assets (167) (182) (199)
Deferred taxes 31 35 39
--- --- ---
Total tangible common equity $3,516 3,345 3,194
Three months ended
------------------
June 30, March 31,
2009 2009
---- ----
Income statement data
---------------------
In thousands, except per share
Net income
Net income 51,188 64,221
Amortization of core deposit and
other
intangible assets (1) 9,247 9,337
Merger-related gain (1) - -
Merger-related expenses (1) 40,370 1,476
------ -----
Net operating income 100,805 75,034
======= ======
Earnings per common share
Diluted earnings per common share .36 .49
Amortization of core deposit and
other
intangible assets (1) .08 .09
Merger-related gain (1) - -
Merger-related expenses (1) .35 .01
--- ---
Diluted net operating earnings per
common share .79 .59
=== ===
Other expense
Other expense 563,710 438,346
Amortization of core deposit and
other
intangible assets (15,231) (15,370)
Merger-related expenses (66,457) (2,426)
------- ------
Noninterest operating expense 482,022 420,550
======= =======
Merger-related expenses
Salaries and employee benefits 8,768 11
Equipment and net occupancy 581 4
Printing, postage and supplies 2,514 301
Other costs of operations 54,594 2,110
------ -----
Total 66,457 2,426
====== =====
Balance sheet data
------------------
In millions
Average assets
Average assets 66,984 64,766
Goodwill (3,326) (3,192)
Core deposit and other intangible
assets (188) (176)
Deferred taxes 30 22
--- ---
Average tangible assets 63,500 61,420
====== ======
Average common equity
Average total equity 7,127 6,780
Preferred stock (636) (568)
---- ----
Average common equity 6,491 6,212
Goodwill (3,326) (3,192)
Core deposit and other intangible
assets (188) (176)
Deferred taxes 30 22
--- ---
Average tangible common equity 3,007 2,866
===== =====
At end of quarter
Total assets
Total assets 69,913 64,883
Goodwill (3,525) (3,192)
Core deposit and other intangible
assets (216) (168)
Deferred taxes 43 21
--- ---
Total tangible assets 66,215 61,544
====== ======
Total common equity
Total equity 7,400 6,902
Preferred stock (725) (568)
Undeclared dividends -preferred
stock (6) (5)
--- ---
Common equity, net of undeclared
preferred dividends 6,669 6,329
Goodwill (3,525) (3,192)
Core deposit and other intangible
assets (216) (168)
Deferred taxes 43 21
--- ---
Total tangible common equity 2,971 2,990
(1) After any related tax effect.
SOURCE M&T Bank Corporation
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