M&T BANK CORPORATION ANNOUNCES FIRST QUARTER RESULTS

April 17, 2023 at 6:05 AM EDT

BUFFALO, N.Y., April 17, 2023 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2023.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $4.01 in the first quarter of 2023, compared with $2.62 in the year-earlier quarter and $4.29 in the fourth quarter of 2022. GAAP-basis net income was $702 million in the recent quarter, $362 million in the first quarter of 2022 and $765 million in the final 2022 quarter. GAAP-basis net income expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.40% and 11.74%, respectively, in the first quarter of 2023, compared with .97% and 8.55%, respectively, in the corresponding 2022 period and 1.53% and 12.59%, respectively, in the fourth quarter of 2022. Non-operating merger-related expenses associated with the April 1, 2022 acquisition of People's United Financial, Inc. ("People's United") totaled $17 million ($13 million after-tax effect, or $.10 of diluted earnings per common share) in 2022's first quarter and $45 million ($33 million after-tax effect, or $.20 of diluted earnings per common share) in the fourth quarter of 2022. M&T incurred no merger-related expenses in the first quarter of 2023.

Darren J. King, Chief Financial Officer, commenting on M&T's results noted, "The strength of M&T's diversified community banking model and prudent management have positioned M&T to continue to deliver for our customers. First quarter net income nearly doubled from the year-earlier quarter. These results reflect loan growth, steady credit quality, a strong liquidity position and, as in past years, seasonally higher salaries and employee benefits expense. M&T's estimated Common Equity Tier 1 ratio was 10.15% at March 31, 2023 compared with 10.44% at last year's end."

Earnings Highlights





























Change 1Q23 vs.


($ in millions, except per share data)


1Q23



1Q22



4Q22



1Q22



4Q22


















Net income


$

702



$

362



$

765




94

%



-8

%

Net income available to common shareholders  ̶  diluted


$

676



$

340



$

739




99

%



-9

%

Diluted earnings per common share


$

4.01



$

2.62



$

4.29




53

%



-7

%

Annualized return on average assets



1.40

%



.97

%



1.53

%







Annualized return on average common equity



11.74

%



8.55

%



12.59

%







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 and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature.

Merger-related expenses associated with the People's United acquisition in 2022 generally consisted of professional services, temporary help fees and other costs associated with actual or planned conversions of systems and/or integration of operations and the introduction of M&T to its new customers, costs related to terminations of existing contractual arrangements to purchase various services, severance, travel costs and, in the second quarter of 2022, an initial provision for credit losses of $242 million on loans not deemed to be purchased credit deteriorated ("PCD") on the April 1, 2022 acquisition date of People's United. Given the requirement under GAAP to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that initial provision to be a merger-related expense. 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. The amounts of merger-related expenses in 2022 are presented in the tables that accompany this release. No merger-related expenses were incurred in the first quarter of 2023.

Diluted net operating earnings per common share were $4.09 in the first quarter of 2023, $2.73 in the year-earlier quarter and $4.57 in last year's fourth quarter. Net operating income was $715 million in 2023's initial quarter, compared with $376 million in the first quarter of 2022 and $812 million in the final quarter of 2022. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.49% and 19.00%, respectively, in the first quarter of 2023, compared with 1.04% and 12.44%, respectively, in the corresponding 2022 quarter and 1.70% and 21.29%, respectively, in the fourth quarter of 2022.

Taxable-equivalent Net Interest Income.   Net interest income expressed on a taxable-equivalent basis totaled $1.832 billion in the recent quarter, up 102% from $907 million earned in the first quarter of 2022. That improvement reflected a $45.4 billion or 33% increase in average earning assets, largely attributable to the acquisition of People's United, and a 139 basis point widening of the net interest margin to 4.04% from 2.65% resulting from a rising interest rate environment. In the fourth quarter of 2022, taxable-equivalent net interest income was $1.841 billion, the net interest margin was 4.06% and average earning assets were $179.9 billion. The modestly lower taxable-equivalent net interest income in the recent quarter as compared with 2022's fourth quarter is reflective of two fewer days in the first quarter of 2023 while the impact of the slightly lower net interest margin was offset by a $4.16 billion increase in average earning assets.

















Taxable-equivalent Net Interest Income





























Change 1Q23 vs.


($ in millions)


1Q23



1Q22



4Q22



1Q22



4Q22


















Average earning assets


$

184,069



$

138,624



$

179,914




33

%



2

%

Net interest income  ̶  taxable-equivalent


$

1,832



$

907



$

1,841




102

%




Net interest margin



4.04

%



2.65

%



4.06

%







Provision for Credit Losses/Asset Quality.  M&T recorded a provision for credit losses of $120 million in the first quarter of 2023, up from $10 million in the year-earlier quarter and $90 million in the fourth quarter of 2022. The higher levels of provision in the two most recent quarters as compared with 2022's first quarter reflect the impact of weaker forecasted economic conditions on several loan categories and higher outstanding loan balances on which to estimate credit losses. Charge-offs of loans, net of recoveries of previously charged-off loans, were $70 million in the first quarter of 2023, $7 million in the first quarter of 2022 and $40 million in 2022's fourth quarter. Net charge-offs expressed as an annualized percentage of average loans outstanding were .22% and .03% in the first quarters of 2023 and 2022, respectively, and .12% in the fourth quarter of 2022.

Nonaccrual loans were $2.56 billion or 1.92% of loans outstanding at March 31, 2023 compared with $2.44 billion or 1.85% at December 31, 2022 and $2.13 billion or 2.32% at March 31, 2022. The balance of nonaccrual loans at the end of the two most recent quarters as compared with March 31, 2022 reflects loans obtained in the acquisition of People's United that totaled $605 million and $572 million at March 31, 2023 and December 31, 2022, respectively. Assets taken in foreclosure of defaulted loans were $44 million at March 31, 2023, $24 million at March 31, 2022 and $41 million at December 31, 2022.

Allowance for Credit Losses.  For purposes of determining the adequacy of the allowance for credit losses M&T regularly performs comprehensive analyses of its loan portfolios and assesses forecasted economic conditions. As a result of those procedures and reflecting the impact of loan growth, the allowance for credit losses totaled $1.98 billion or 1.49% of loans outstanding at March 31, 2023 compared with $1.47 billion or 1.60% of loans outstanding at March 31, 2022 and $1.93 billion or 1.46% at December 31, 2022. The acquisition of People's United loans and leases resulted in a $341 million increase in the allowance for credit losses as of April 1, 2022, including $99 million related to PCD loans and $242 million related to non-PCD loans. Including the impact of the acquisition, M&T's allowance for credit losses was $1.81 billion on April 1, 2022, or 1.42% of then outstanding loans.

Asset Quality Metrics













Change 1Q23 vs.


($ in millions)


1Q23



1Q22



4Q22



1Q22



4Q22


















At end of quarter
















Nonaccrual loans


$

2,557



$

2,134



$

2,439




20

%



5

%

Real estate and other foreclosed assets


$

44



$

24



$

41




89

%



8

%

Total nonperforming assets


$

2,601



$

2,158



$

2,480




21

%



5

%

Accruing loans past due 90 days or more (1)


$

407



$

777



$

491




-48

%



-17

%

Nonaccrual loans as % of loans outstanding



1.92

%



2.32

%



1.85

%























Allowance for credit losses


$

1,975



$

1,472



$

1,925




34

%



3

%

Allowance for credit losses as % of loans outstanding



1.49

%



1.60

%



1.46

%























For the period
















Provision for credit losses


$

120



$

10



$

90







33

%

Net charge-offs


$

70



$

7



$

40







74

%

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



.22

%



.03

%



.12

%









(1)

Predominantly government-guaranteed residential real estate loans.

Noninterest Income and Expense.  Noninterest income totaled $587 million in the first quarter of 2023, compared with $541 million in the year-earlier quarter. The increase reflects the impact from People's United (predominantly service charges on deposit accounts, credit-related fees and trust income), offset, in part, by a decline in mortgage banking revenues resulting from lower gains on sales of residential mortgage loans originated for sale and a decrease in residential mortgage servicing income, lower insurance revenues reflecting the sale of M&T Insurance Agency ("MTIA") in last year's fourth quarter and a reduced distribution from Bayview Lending Group LLC ("BLG") as compared with the year-earlier quarter. Noninterest income was $682 million in 2022's fourth quarter. The comparative decrease in the recent quarter was driven by the $136 million gain recorded on the sale of MTIA in the fourth quarter of 2022, partially offset by a $20 million distribution from BLG received in the first quarter of 2023.

Noninterest Income





























Change 1Q23 vs.


($ in millions)


1Q23



1Q22



4Q22



1Q22



4Q22


















Mortgage banking revenues


$

85



$

109



$

82




-22

%



4

%

Service charges on deposit accounts



113




102




106




12

%



7

%

Trust income



194




169




195




15

%



-1

%

Brokerage services income



24




20




22




19

%



7

%

Trading account and non-hedging derivative gains



12




5




14




117

%



-17

%

Gain (loss) on bank investment securities






(1)




(4)








Other revenues from operations



159




137




267




17

%



-40

%

Total


$

587



$

541



$

682




9

%



-14

%

Trust income associated with M&T's Collective Investment Trust business that is expected to be sold in the current quarter totaled approximately $45 million in the first quarter of 2023, compared with $42 million in each of the first and fourth quarters of 2022. After considering expenses, the results of operations of that business were not material to M&T's net income in each of those periods. In addition to expenses associated with those operations, professional services expense associated with the pending sale was $5 million in the recent quarter.

Noninterest expense totaled $1.359 billion in the first quarter of 2023, compared with $960 million in the similar quarter of 2022 and $1.408 billion in the fourth quarter of 2022. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $1.342 billion in the recent quarter, $941 million in the first quarter of 2022 and $1.346 billion in 2022's fourth quarter. The higher level of operating expenses in the recent quarter as compared with the year-earlier quarter reflects the impact of operations obtained in the People's United acquisition, higher salaries and employee benefits expense, including incentive compensation, a rise in outside data processing and software costs, advertising and marketing expenses, FDIC assessments and professional services. The decline of operating expenses in the recent quarter as compared with the fourth quarter of 2022 reflects a $135 million contribution to The M&T Charitable Foundation recorded in the 2022 quarter, partially offset by higher salaries and employee benefits expense, including approximately $99 million of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense. Those seasonal expenses totaled $74 million in the first quarter of 2022.

 

Noninterest Expense





























Change 1Q23 vs.


($ in millions)


1Q23



1Q22



4Q22



1Q22



4Q22


















Salaries and employee benefits


$

808



$

578



$

697




40

%



16

%

Equipment and net occupancy



127




86




137




48

%



-7

%

Outside data processing and software



106




80




108




33

%



-2

%

FDIC assessments



30




16




24




91

%



24

%

Advertising and marketing



31




16




32




94

%



-5

%

Printing, postage and supplies



14




10




15




40

%



-6

%

Amortization of core deposit and other intangible assets



17




1




18







-2

%

Other costs of operations



226




173




377




30

%



-40

%

Total


$

1,359



$

960



$

1,408




42

%



-3

%

















The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 55.5% in the first quarter of 2023, 64.9% in the year-earlier quarter and 53.3% in the fourth quarter of 2022.

Balance Sheet.  M&T had total assets of $203.0 billion at March 31, 2023, compared with $149.9 billion and $200.7 billion at March 31, 2022 and December 31, 2022, respectively. Loans and leases, net of unearned discount, were $132.9 billion at March 31, 2023, compared with $91.8 billion at March 31, 2022 and $131.6 billion at December 31, 2022. The higher level of loans and leases at the recent quarter-end and December 31, 2022 as compared with March 31, 2022 is largely a reflection of balances associated with the acquisition of People's United. Also reflective of that acquisition, total deposits were $159.1 billion at the recent quarter-end and $163.5 billion at December 31, 2022, compared with $126.3 billion at March 31, 2022. The three percent decline in total deposits since December 31, 2022 includes the impact of seasonal decreases and customer use of off-balance sheet investment products.

Total shareholders' equity was $25.4 billion or 12.50% of total assets at March 31, 2023, $17.9 billion or 11.93% at March 31, 2022 and $25.3 billion or 12.61% at December 31, 2022. Common shareholders' equity was $23.4 billion, or $140.88 per share, at March 31, 2023, compared with $16.1 billion, or $124.93 per share, a year earlier and $23.3 billion, or $137.68 per share, at December 31, 2022. Tangible equity per common share was $88.81 at March 31, 2023, $89.33 at March 31, 2022 and $86.59 at December 31, 2022. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 10.15% at March 31, 2023, compared with 10.44% three months earlier.

M&T repurchased 3,838,157 shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $154.76 resulting in a total cost, including the share repurchase excise tax, of $600 million, compared with 3,664,887 shares at an average cost per share of $163.72 and total cost of $600 million in the fourth quarter of 2022. No share repurchases occurred in the first quarter of 2022.

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 (800) 225-9448. International participants, using any applicable international calling codes, may dial (203) 518-9708. Callers should reference M&T Bank Corporation or the conference ID #MTBQ123. 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 24, 2023 by calling (800) 753-6121, or (402) 220-2676 for international participants. No conference ID or passcode is required. 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.

About M&T. M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services in 12 states across the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com.

Forward-Looking Statements.  This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.

Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, including economic conditions, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements 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 M&T's control. Statements regarding M&T's expectations, including statements regarding expected financial results, prospects, targets, goals and outlook, are also forward-looking statements.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. 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.

Examples of future factors include: the impact of the People's United transaction (as described in the next paragraph); economic conditions including inflation and market volatility; international conflicts, domestic or international political developments and other geopolitical events; the impact of the COVID-19 pandemic; 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 of 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 and/or regulations affecting the financial services industry, and/or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and 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 and services; containing costs and expenses; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; 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, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

In addition, future factors related to the acquisition of People's United include, among others: the possibility that the anticipated benefits of the transaction will not be realized when expected or at all; potential adverse reactions or changes to business, customer or employee relationships; M&T's success in executing its business plans and strategies and managing the risks involved in the foregoing; the results and costs of integration efforts; the business, economic and political conditions in the markets in which M&T and its subsidiaries operate; the outcome of any legal proceedings that may be instituted against M&T or its subsidiaries; and other factors related to the acquisition that may affect future results of M&T.

These are representative of the future factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other future factors.

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2022, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date made and M&T does not assume any duty and does not undertake to update forward-looking statements.

 

INVESTOR CONTACT:


Brian Klock





(716) 842-5138








MEDIA CONTACT:


Maya Dillon





(646) 735-1958



 

Financial Highlights



Three months ended







March 31






Amounts in thousands, except per share

2023



2022



Change



Performance










Net income

$

701,624




362,174




94

%


Net income available to common shareholders


675,511




339,590




99

%


Per common share:










Basic earnings

$

4.03




2.63




53

%


Diluted earnings


4.01




2.62




53

%


Cash dividends

$

1.30




1.20




8

%


Common shares outstanding:










Average - diluted (1)


168,410




129,416




30

%


Period end (2)


165,865




129,080




28

%


Return on (annualized):










Average total assets


1.40

%



.97

%





Average common shareholders' equity


11.74

%



8.55

%





Taxable-equivalent net interest income

$

1,831,726




907,408




102

%


Yield on average earning assets


5.16

%



2.72

%





Cost of interest-bearing liabilities


1.86

%



.13

%





Net interest spread


3.30

%



2.59

%





Contribution of interest-free funds


.74

%



.06

%





Net interest margin


4.04

%



2.65

%





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


.22

%



.03

%





Net operating results (3)










Net operating income

$

714,935




375,999




90

%


Diluted net operating earnings per common share


4.09




2.73




50

%


Return on (annualized):










Average tangible assets


1.49

%



1.04

%





Average tangible common equity


19.00

%



12.44

%





Efficiency ratio


55.5

%



64.9

%
















At March 31




Loan quality

2023



2022



Change



Nonaccrual loans

$

2,556,799




2,134,231




20

%


Real estate and other foreclosed assets


44,567




23,524




89

%


Total nonperforming assets

$

2,601,366




2,157,755




21

%


Accruing loans past due 90 days or more (4)

$

407,457




776,751




-48

%


Government guaranteed loans included in totals above:










Nonaccrual loans

$

42,102




46,151




-9

%


Accruing loans past due 90 days or more


306,049




689,831




-56

%


Nonaccrual loans to total net loans


1.92

%



2.32

%





Allowance for credit losses to total loans


1.49

%



1.60

%







(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.

 

Financial Highlights, Five Quarter Trend



Three months ended



March 31,



December 31,



September 30,



June 30,



March 31,


Amounts in thousands, except per share

2023



2022



2022



2022



2022


Performance















Net income

$

701,624




765,371




646,596




217,522




362,174


Net income available to common shareholders


675,511




739,126




620,554




192,236




339,590


Per common share:















Basic earnings

$

4.03




4.32




3.55




1.08




2.63


Diluted earnings


4.01




4.29




3.53




1.08




2.62


Cash dividends

$

1.30




1.20




1.20




1.20




1.20


Common shares outstanding:















Average - diluted (1)


168,410




172,149




175,682




178,277




129,416


Period end (2)


165,865




169,285




172,900




175,969




129,080


Return on (annualized):















Average total assets


1.40

%



1.53

%



1.28

%



.42

%



.97

%

Average common shareholders' equity


11.74

%



12.59

%



10.43

%



3.21

%



8.55

%

Taxable-equivalent net interest income

$

1,831,726




1,840,759




1,690,518




1,422,443




907,408


Yield on average earning assets


5.16

%



4.60

%



3.90

%



3.12

%



2.72

%

Cost of interest-bearing liabilities


1.86

%



.98

%



.41

%



.20

%



.13

%

Net interest spread


3.30

%



3.62

%



3.49

%



2.92

%



2.59

%

Contribution of interest-free funds


.74

%



.44

%



.19

%



.09

%



.06

%

Net interest margin


4.04

%



4.06

%



3.68

%



3.01

%



2.65

%

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


.22

%



.12

%



.20

%



.16

%



.03

%

Net operating results (3)















Net operating income

$

714,935




812,359




700,030




577,622




375,999


Diluted net operating earnings per common share


4.09




4.57




3.83




3.10




2.73


Return on (annualized):















Average tangible assets


1.49

%



1.70

%



1.44

%



1.16

%



1.04

%

Average tangible common equity


19.00

%



21.29

%



17.89

%



14.41

%



12.44

%

Efficiency ratio


55.5

%



53.3

%



53.6

%



58.3

%



64.9

%

















March 31,



December 31,



September 30,



June 30,



March 31,


Loan quality

2023



2022



2022



2022



2022


Nonaccrual loans

$

2,556,799




2,438,435




2,429,326




2,633,005




2,134,231


Real estate and other foreclosed assets


44,567




41,375




37,031




28,692




23,524


Total nonperforming assets

$

2,601,366




2,479,810




2,466,357




2,661,697




2,157,755


Accruing loans past due 90 days or more (4)

$

407,457




491,018




476,503




523,662




776,751


Government guaranteed loans included in totals above:















Nonaccrual loans

$

42,102




43,536




44,797




46,937




46,151


Accruing loans past due 90 days or more


306,049




363,409




423,371




467,834




689,831


Nonaccrual loans to total net loans


1.92

%



1.85

%



1.89

%



2.05

%



2.32

%

Allowance for credit losses to total loans


1.49

%



1.46

%



1.46

%



1.42

%



1.60

%



(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.

 

Condensed Consolidated Statement of Income




Three months ended








March 31






Dollars in thousands


2023



2022



Change



Interest income


$

2,326,985




928,256




151

%


Interest expense



508,721




24,082






Net interest income



1,818,264




904,174




101



Provision for credit losses



120,000




10,000






Net interest income after provision for credit losses



1,698,264




894,174




90



Other income











Mortgage banking revenues



84,985




109,148




-22



Service charges on deposit accounts



113,546




101,507




12



Trust income



193,802




169,213




15



Brokerage services income



24,041




20,190




19



Trading account and non-hedging
     derivative gains



11,675




5,369




117



Gain (loss) on bank investment securities



(416)




(743)






Other revenues from operations



159,500




136,203




17



Total other income



587,133




540,887




9



Other expense











Salaries and employee benefits



807,942




577,520




40



Equipment and net occupancy



126,904




85,812




48



Outside data processing and software



105,780




79,719




33



FDIC assessments



29,758




15,576




91



Advertising and marketing



31,063




16,024




94



Printing, postage and supplies



14,183




10,150




40



Amortization of core deposit and other
     intangible assets



17,208




1,256






Other costs of operations



226,392




173,684




30



Total other expense



1,359,230




959,741




42



Income before income taxes



926,167




475,320




95



Applicable income taxes



224,543




113,146




98



Net income


$

701,624




362,174




94

%


 

Condensed Consolidated Statement of Income, Five Quarter Trend




Three months ended




March 31,



December 31,



September 30,



June 30,



March 31,


Dollars in thousands


2023



2022



2022



2022



2022


Interest income


$

2,326,985




2,072,209




1,781,513




1,465,142




928,256


Interest expense



508,721




244,835




102,822




53,425




24,082


Net interest income



1,818,264




1,827,374




1,678,691




1,411,717




904,174


Provision for credit losses



120,000




90,000




115,000




302,000




10,000


Net interest income after provision for credit losses



1,698,264




1,737,374




1,563,691




1,109,717




894,174


Other income
















Mortgage banking revenues



84,985




81,521




83,041




82,926




109,148


Service charges on deposit accounts