M&T Bank Corporation Announces First Quarter Results

April 20, 2020 at 6:37 AM EDT

BUFFALO, N.Y., April 20, 2020 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2020.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $1.93 in the first quarter of 2020, compared with $3.35 in the initial 2019 quarter. GAAP-basis net income in the recent quarter was $269 million, compared with $483 million in the year-earlier quarter. Diluted earnings per share and GAAP-basis net income were $3.60 and $493 million, respectively, in the fourth quarter of 2019. GAAP-basis net income for the first quarter of 2020 expressed as an annualized rate of return on average assets and average common shareholders' equity was .90% and 7.00%, respectively, compared with 1.68% and 13.14%, respectively, in the similar 2019 period and 1.60% and 12.95%, respectively, in the final quarter of 2019.

Darren J. King, Executive Vice President and Chief Financial Officer of M&T, commented, "I am extremely proud of the way the M&T team has responded to the COVID-19 crisis.  From tellers and relationship bankers to operational teams and head office staff, the efforts of our colleagues to ensure that customers are receiving relief and outstanding service when they need it most have been extraordinary. During difficult times M&T has always been a steady and reliable source of strength."

Effective January 1, 2020, M&T adopted amended accounting guidance for the measurement of credit losses on financial instruments.  That guidance requires an allowance for credit losses to be deducted from the amortized cost basis of financial assets to present the net carrying value that is expected to be collected over the contractual term of the assets considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount.  The new accounting guidance replaces the previous incurred loss model for determining the allowance for credit losses.  The adoption of the amended guidance resulted in a $132 million increase in the allowance for credit losses as of January 1, 2020.

M&T's first quarter 2020 results were adversely impacted by the Coronavirus Disease 2019 ("COVID-19") pandemic, as the United States operates under a state of emergency. Economic forecasts of the impact of COVID-19 as of the end of the recent quarter resulted in higher estimates of expected credit losses in M&T's loan portfolio as compared with that estimated as of January 1, 2020. While the full impact of COVID-19 on M&T's future financial results is uncertain and not currently estimable, M&T believes that impact could be material. A provision for credit losses of $250 million was recorded in the first quarter of 2020.

On March 27, 2020, the CARES Act was signed into law.  Among other things, the CARES Act provides relief to borrowers, including the opportunity to defer loan payments while not negatively affecting their credit standing, and also provides funding opportunities for small businesses under the Paycheck Protection Program ("PPP") from approved Small Business Administration ("SBA") lenders, including M&T Bank, which is one of the top ten SBA lenders in the country. For commercial and consumer customers, M&T has provided a host of relief options, including loan maturity extensions, payment deferrals, fee waivers and low interest rate loan products.  On April 6, 2020, M&T provided an online application solution for small business customers and began accepting loan applications under the PPP.

Earnings Highlights





































Change 1Q20 vs.


($ in millions, except per share data)


1Q20



1Q19



4Q19



1Q19



4Q19























Net income


$

269



$

483



$

493




-44

%



-45

%

Net income available to common shareholders  ̶  diluted


$

251



$

462



$

473




-46

%



-47

%

Diluted earnings per common share


$

1.93



$

3.35



$

3.60




-42

%



-46

%

Annualized return on average assets



.90

%



1.68

%



1.60

%









Annualized return on average common equity



7.00

%



13.14

%



12.95

%









Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such items are considered by management to be "nonoperating" in nature.  The amounts of such "nonoperating" expenses are presented in the tables that accompany this release.  Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.

Diluted net operating earnings per common share were $1.95 in the first quarter of 2020, compared with $3.38 in the year-earlier quarter and $3.62 in the fourth quarter of 2019.  Net operating income in 2020's initial quarter was $272 million, compared with $486 million in the first quarter of 2019 and $496 million in the final quarter of 2019. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was .94% and 10.39%, respectively, compared with 1.76% and 19.56%, respectively, in the corresponding 2019 quarter and 1.67% and 19.08%, respectively, in the fourth quarter of 2019.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $982 million in the recent quarter, compared with $1.06 billion in the first quarter of 2019. That decline resulted from a 39 basis point narrowing of the net interest margin, to 3.65% in the first three months of 2020 from 4.04% in the first quarter of 2019, that was partially offset by the impact of a $2.1 billion or 2% increase in average earning assets. The narrowing of the net interest margin resulted largely from lower yields on loans, while the rise in average earning assets reflected higher balances of loans and deposits at the Federal Reserve Bank of New York, offset, in part, by lower average balances of investment securities.  In the final quarter of 2019, taxable-equivalent net interest income was $1.01 billion, the net interest margin was 3.64% and average earning assets were $110.6 billion.

Taxable-equivalent Net Interest Income





































Change 1Q20 vs.


($ in millions)


1Q20



1Q19



4Q19



1Q19



4Q19























Average earning assets


$

108,226



$

106,096



$

110,581




2

%



-2

%

Net interest income  ̶  taxable-equivalent


$

982



$

1,056



$

1,014




-7

%



-3

%

Net interest margin



3.65

%



4.04

%



3.64

%









Provision for Credit Losses/Asset Quality.  The provision for credit losses was $250 million in the first quarter of 2020, compared with $22 million in the year-earlier quarter and $54 million in 2019's final quarter. As noted earlier, the significant increase in the provision in the recent quarter as compared with the prior quarters follows the adoption of new accounting guidance on January 1, 2020 and reflects updated assumptions and projections as a result of COVID-19. Net loan charge-offs were $49 million during the recent quarter, compared with $22 million in the initial quarter of 2019 and $41 million in the fourth quarter of 2019. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .22% and .10% in the three-month periods ended March 31, 2020 and 2019, respectively, and .18% in the fourth quarter of 2019.

Loans classified as nonaccrual totaled $1.06 billion or 1.13% of total loans outstanding at March 31, 2020, improved from $1.13 billion or 1.25% at January 1, 2020. The adoption of the new accounting guidance previously mentioned resulted in an increase in nonaccrual loans on January 1, 2020 of $171 million. Nonaccrual loans outstanding at December 31, 2019 were $963 million or 1.06% of total loans and at March 31, 2019 were $882 million or .99%. Assets taken in foreclosure of defaulted loans were $84 million at March 31, 2020, compared with $81 million and $86 million at March 31, 2019 and December 31, 2019, 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 for credit losses totaled $1.38 billion or 1.47% of loans outstanding at March 31, 2020, compared with $1.02 billion or 1.15% at March 31, 2019, $1.05 billion or 1.16% at December 31, 2019 and $1.18 billion or 1.30% as of January 1, 2020 following adoption of the current expected credit loss accounting rules. As noted earlier, the adoption of amended accounting guidance resulted in an increase to the allowance of $132 million on January 1, 2020.

Asset Quality Metrics
















Change 1Q20 vs.


($ in millions)


1Q20



1Q19



4Q19



1Q19



4Q19























At end of quarter





















Nonaccrual loans


$

1,062



$

882



$

963




20

%



10

%

Real estate and other foreclosed assets


$

84



$

81



$

86




3

%



-2

%

Total nonperforming assets


$

1,146



$

963



$

1,049




19

%



9

%

Accruing loans past due 90 days or more (1)


$

530



$

244



$

519




117

%



2

%

Nonaccrual loans as % of loans outstanding



1.13

%



.99

%



1.06

%






























Allowance for credit losses


$

1,384



$

1,019



$

1,051




36

%



32

%

Allowance for credit losses as % of loans outstanding



1.47

%



1.15

%



1.16

%






























For the period





















Provision for credit losses


$

250



$

22



$

54




1036

%



363

%

Net charge-offs


$

49



$

22



$

41




122

%



19

%

Net charge-offs as % of average loans (annualized)



.22

%



.10

%



.18

%









______________

(1)         Predominantly residential real estate loans. Prior to 2020, excludes loans acquired at a discount.

Noninterest Income and Expense.  Noninterest income increased 6% to $529 million in the recent quarter from $501 million in the year-earlier quarter. That improvement resulted from higher residential mortgage banking revenues, trust income and trading account and foreign exchange gains, partially offset by unrealized losses on investment securities and a reduction in distributed income from Bayview Lending Group LLC ("BLG") of $14 million. During the fourth quarter of 2019, noninterest income totaled $521 million. The increase in such income in the recent quarter as compared with 2019's final quarter reflected higher income from BLG of $23 million and increased mortgage banking revenues that were partially offset by unrealized losses on investment securities and a decline in loan syndication and other credit-related fees of $11 million.

Noninterest Income





































Change 1Q20 vs.


($ in millions)


1Q20



1Q19



4Q19



1Q19



4Q19























Mortgage banking revenues


$

128



$

95



$

118




34

%



8

%

Service charges on deposit accounts



106




103




111




3

%



-4

%

Trust income



149




133




151




12

%



-2

%

Brokerage services income



13




12




12




5

%



10

%

Trading account and foreign exchange gains



21




11




17




95

%



26

%

Gain (loss) on bank investment securities



(21)




12




(6)








Other revenues from operations



133




135




118




-1

%



13

%

Total


$

529



$

501



$

521




6

%



2

%

Noninterest expense totaled $906 million in the initial quarter of 2020, $894 million in the corresponding quarter of 2019 and $824 million in the fourth quarter of 2019.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses aggregated $903 million in the recent quarter, $889 million in the first quarter of 2019 and $819 million in 2019's fourth quarter. Factors contributing to the higher level of noninterest expenses in the recent quarter as compared with the year-earlier quarter were increased costs for salaries and employee benefits, outside data processing and software and a $10 million increase to the valuation allowance for capitalized residential mortgage servicing rights, partially offset by lower costs of $60 million for legal-related matters and professional and outside services. As compared with the fourth quarter of 2019, the higher level of noninterest expenses in the first quarter of 2020 was largely attributable to higher costs for salaries and employee benefits, reflecting seasonally higher stock-based compensation and employee benefits expenses during the recent quarter that totaled $67 million, and changes in the valuation allowance for capitalized residential mortgage servicing rights. That allowance was increased by $10 million during the recent quarter, compared with a reduction of $16 million in the fourth quarter of 2019.

Noninterest Expense





































Change 1Q20 vs.


($ in millions)


1Q20



1Q19



4Q19



1Q19



4Q19























Salaries and employee benefits


$

537



$

499



$

469




8

%



14

%

Equipment and net occupancy



80




79




83







-4

%

Outside data processing and software



64




52




62




23

%



4

%

FDIC assessments



12




10




12




30

%



-1

%

Advertising and marketing



22




20




27




10

%



-17

%

Printing, postage and supplies



11




10




10




10

%



14

%

Amortization of core deposit and other intangible assets



4




5




4




-22

%



-9

%

Other costs of operations



176




219




157




-20

%



12

%

Total


$

906



$

894



$

824




1

%



10

%

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 58.9% in the first quarter of 2020, 57.6% in the year-earlier quarter and 53.1% in the final three months of 2019.

Balance Sheet.  M&T had total assets of $124.6 billion at March 31, 2020, up from $120.0 billion and $119.9 billion at March 31, 2019 and December 31, 2019, respectively. Loans and leases, net of unearned discount, were $94.1 billion at March 31, 2020, $88.6 billion at March 31, 2019 and $90.9 billion at December 31, 2019. The increase in total loans and leases at the recent quarter-end as compared with the end of 2019 was driven largely by growth in commercial loans of $2.4 billion and commercial real estate loans of $1.1 billion. Total deposits rose to $100.2 billion at the recent quarter end, compared with $90.5 billion at March 31, 2019 and $94.8 billion at December 31, 2019. The higher level of deposits at the recent quarter-end as compared with the prior dates reflects increased deposits associated with residential mortgage servicing activities, as well as higher levels of commercial and trust demand deposits. Much of the commercial loan and deposit growth occurred in March as commercial customers drew down previously approved lines of credit.

Total shareholders' equity was $15.8 billion, or 12.70% of total assets at March 31, 2020, compared with $15.6 billion, or 12.99% at March 31, 2019 and $15.7 billion, or 13.11% at December 31, 2019. Common shareholders' equity was $14.6 billion, or $113.54 per share, at March 31, 2020, compared with $14.4 billion, or $105.04 per share, a year-earlier and $14.5 billion, or $110.78 per share, at December 31, 2019.  Tangible equity per common share was $77.60 at March 31, 2020, compared with $71.19 at March 31, 2019 and $75.44 at December 31, 2019. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances.  M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 9.20% at March 31, 2020.

In accordance with its capital plan, M&T repurchased 2,577,000 shares of its common stock during the recent quarter at a total cost of $374 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877) 780-2276.  International participants, using any applicable international calling codes, may dial (973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID #5263538.  The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Monday, April 27, 2020 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #5263538.  The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

M&T is a financial holding company headquartered in Buffalo, New York.  M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia.  Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

Forward-Looking Statements.  This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management.  Any statement that does not describe historical or current facts is a forward-looking statement, including statements regarding the potential effects of the Coronavirus Disease 2019 ("COVID-19") pandemic on M&T's business, financial condition, liquidity and results of operations. 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; risks and uncertainties relating to the impact of the COVID-19 pandemic; 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, regulatory agencies or legislation; 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.

Further, statements about the potential effects of the COVID-19 pandemic on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, clients, third parties and M&T.

Financial Highlights




Three months ended









March 31







Amounts in thousands, except per share


2020



2019



Change



Performance














Net income


$

268,822




482,742




-44

%


Net income available to common shareholders



250,701




462,086




-46

%


Per common share:














Basic earnings


$

1.93




3.35




-42

%


Diluted earnings



1.93




3.35




-42

%


Cash dividends


$

1.10




1.00




10

%


Common shares outstanding:                 














Average - diluted (1)



129,755




137,920




-6

%


Period end (2)



128,282




136,637




-6

%


Return on (annualized):














Average total assets



.90

%



1.68

%






Average common shareholders' equity



7.00

%



13.14

%






Taxable-equivalent net interest income


$

981,868




1,056,027




-7

%


Yield on average earning assets



4.18

%



4.71

%






Cost of interest-bearing liabilities



.83

%



1.04

%






Net interest spread



3.35

%



3.67

%






Contribution of interest-free funds



.30

%



.37

%






Net interest margin



3.65

%



4.04

%






Net charge-offs to average total net loans (annualized)



.22

%



.10

%






Net operating results (3)














Net operating income


$

271,705




486,440




-44

%


Diluted net operating earnings per common share



1.95




3.38




-42

%


Return on (annualized):














Average tangible assets



.94

%



1.76

%






Average tangible common equity



10.39

%



19.56

%






Efficiency ratio



58.91

%



57.56

%






















At March 31





Loan quality


2020



2019



Change



Nonaccrual loans


$

1,061,748




881,611




20

%


Real estate and other foreclosed assets



83,605




81,335




3

%


Total nonperforming assets


$

1,145,353




962,946




19

%


Accruing loans past due 90 days or more (4)


$

530,317




244,257




117

%


Government guaranteed loans included in totals above:














Nonaccrual loans


$

50,561




35,481




43

%


Accruing loans past due 90 days or more



464,243




194,510




139

%


Renegotiated loans


$

232,439




267,952




-13

%


Accruing loans acquired at a discount past due 90 days or more (5)



N/A




43,995






Purchased impaired loans (6):














Outstanding customer balance



N/A




495,163






Carrying amount


N/A




278,783






Nonaccrual loans to total net loans



1.13

%



.99

%






Allowance for credit losses to total loans



1.47

%



1.15

%






____________

(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)

Predominantly residential real estate loans.  Prior to 2020, excludes loans acquired at a discount.

(5)

Prior to 2020, loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include

purchased impaired loans that are presented separately.

(6)

Prior to 2020, accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

 

Financial Highlights, Five Quarter Trend




Three months ended




March 31,



December 31,



September 30,



June 30,



March 31,


Amounts in thousands, except per share


2020



2019



2019



2019



2019


Performance





















Net income


$

268,822




493,066




480,081




473,260




482,742


Net income available to common shareholders



250,701




473,372




461,410




452,633




462,086


Per common share:





















Basic earnings


$

1.93




3.60




3.47




3.34




3.35


Diluted earnings



1.93




3.60




3.47




3.34




3.35


Cash dividends


$

1.10




1.10




1.00




1.00




1.00


Common shares outstanding:





















Average - diluted (1)



129,755




131,549




132,999




135,464




137,920


Period end (2)



128,282




130,589




132,277




134,200




136,637


Return on (annualized):





















Average total assets



.90

%



1.60

%



1.58

%



1.60

%



1.68

%

Average common shareholders' equity



7.00

%



12.95

%



12.73

%



12.68

%



13.14

%

Taxable-equivalent net interest income


$

981,868




1,014,225




1,035,469




1,047,406




1,056,027


Yield on average earning assets



4.18

%



4.27

%



4.51

%



4.64

%



4.71

%

Cost of interest-bearing liabilities



.83

%



.97

%



1.10

%



1.11

%



1.04

%

Net interest spread



3.35

%



3.30

%



3.41

%



3.53

%



3.67

%

Contribution of interest-free funds



.30

%



.34

%



.37

%



.38

%



.37

%

Net interest margin



3.65

%



3.64

%



3.78

%



3.91

%



4.04

%

Net charge-offs to average total net loans (annualized)



.22

%



.18

%



.16

%



.20

%



.10

%

Net operating results (3)





















Net operating income


$

271,705




496,237




483,830




477,001




486,440


Diluted net operating earnings per common share



1.95




3.62




3.50




3.37




3.38


Return on (annualized):





















Average tangible assets



.94

%



1.67

%



1.66

%



1.68

%



1.76

%

Average tangible common equity



10.39

%



19.08

%



18.85

%



18.83

%



19.56

%

Efficiency ratio



58.91

%



53.15

%



55.95

%



55.98

%



57.56

%
























March 31,



December 31,



September 30,



June 30,



March 31,


Loan quality


2020



2019



2019



2019



2019


Nonaccrual loans


$

1,061,748




963,112




1,005,249




865,384




881,611


Real estate and other foreclosed assets



83,605




85,646




79,735




72,907




81,335


Total nonperforming assets


$

1,145,353




1,048,758




1,084,984




938,291




962,946


Accruing loans past due 90 days or more (4)


$

530,317




518,728




461,162




348,725




244,257


Government guaranteed loans included in totals above:





















Nonaccrual loans


$

50,561




50,891




43,144




36,765




35,481


Accruing loans past due 90 days or more



464,243




479,829




434,132




320,305




194,510


Renegotiated loans


$

232,439




234,424




240,781




254,332




267,952


Accruing loans acquired at a discount past due 90 days or

        more (5)


N/A




39,632




40,733




43,079




43,995


Purchased impaired loans (6):





















Outstanding customer balance


N/A




415,413




453,382




473,834




495,163


Carrying amount


N/A




227,545




253,496




263,025




278,783


Nonaccrual loans to total net loans



1.13

%



1.06

%



1.12

%



.96

%



.99

%

Allowance for credit losses to total loans



1.47

%



1.16

%



1.16

%



1.15

%



1.15

%

____________

(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)

Predominantly residential real estate loans.  Prior to 2020, excludes loans acquired at a discount.

(5)

Prior to 2020, loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented

separately.

(6)

Prior to 2020, accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value. 

 

Condensed Consolidated Statement of Income




Three months ended








March 31






Dollars in thousands


2020



2019



Change


Interest income


$

1,120,419




1,226,309




-9

%

Interest expense



143,614




176,249




-19


Net interest income



976,805




1,050,060




-7


Provision for credit losses



250,000




22,000



1036


Net interest income after provision for credit losses



726,805




1,028,060




-29


Other income













Mortgage banking revenues



127,909




95,311




34


Service charges on deposit accounts



106,161




103,112




3


Trust income



148,751




132,786




12


Brokerage services income



13,129




12,476




5


Trading account and foreign exchange gains



21,016




10,802




95


Gain (loss) on bank investment securities



(20,782)




11,841





Other revenues from operations



133,176




134,437




-1


Total other income



529,360




500,765




6


Other expense













Salaries and employee benefits



536,843




499,200




8


Equipment and net occupancy



79,640




79,347





Outside data processing and software



64,410




52,417




23


FDIC assessments



12,271




9,426




30


Advertising and marketing



22,375




20,275




10


Printing, postage and supplies



10,852




9,855




10


Amortization of core deposit and other
   intangible assets



3,913




5,020




-22


Other costs of operations



176,112




218,808




-20


Total other expense



906,416




894,348




1


Income before income taxes



349,749




634,477




-45


Applicable income taxes



80,927




151,735




-47


Net income


$

268,822




482,742




-44

%

 

Condensed Consolidated Statement of Income, Five Quarter Trend




Three months ended




March 31,



December 31,



September 30,



June 30,



March 31,


Dollars in thousands


2020



2019



2019



2019



2019


Interest income


$

1,120,419




1,185,902




1,229,469




1,237,913




1,226,309


Interest expense



143,614




177,069




199,579




196,432




176,249


Net interest income



976,805




1,008,833




1,029,890




1,041,481




1,050,060


Provision for credit losses



250,000




54,000




45,000




55,000




22,000


Net interest income after provision for credit losses



726,805




954,833




984,890




986,481




1,028,060


Other income





















Mortgage banking revenues



127,909




118,134




137,004




107,321




95,311


Service charges on deposit accounts



106,161




110,987




111,092




107,787




103,112


Trust income



148,751




151,525




143,915




144,382




132,786


Brokerage services income



13,129




11,891




12,077




12,478




12,476


Trading account and foreign exchange gains



21,016




16,717




16,072




18,453




10,802


Gain (loss) on bank investment securities



(20,782)




(6,452)




3,737




8,911




11,841


Other revenues from operations



133,176




118,238




103,882




112,763




134,437


Total other income



529,360




521,040




527,779




512,095




500,765


Other expense





















Salaries and employee benefits



536,843




469,080




476,780




455,737




499,200


Equipment and net occupancy



79,640




82,892




82,690




79,150




79,347


Outside data processing and software



64,410




61,720




60,360




55,234




52,417


FDIC assessments



12,271




12,431




9,906




9,772




9,426


Advertising and marketing



22,375




27,063




22,088




24,046




20,275


Printing, postage and supplies



10,852




9,513




10,201




10,324




9,855


Amortization of core deposit and other
   intangible assets



3,913




4,305




5,088




5,077




5,020


Other costs of operations



176,112




156,679




210,506




233,692




218,808


Total other expense



906,416




823,683




877,619




873,032




894,348


Income before income taxes



349,749




652,190




635,050




625,544




634,477


Applicable income taxes



80,927




159,124




154,969




152,284




151,735


Net income


$

268,822




493,066




480,081




473,260




482,742


 

Condensed Consolidated Balance Sheet