M&T Bank Corporation Announces Third Quarter Results
BUFFALO, N.Y., Oct 21, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2008.
GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2008 were $.82. On the same basis, net income in the recent quarter totaled $91 million. GAAP-basis net income for 2008's third quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was .56% and 5.66%, respectively.
As previously disclosed in M&T's Form 8-K filed with the Securities and Exchange Commission on September 12, 2008, a non-cash charge for other-than-temporary impairment of the value of preferred stock holdings of the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") was recognized in the recent quarter. That charge reduced net income and diluted earnings per share by $97 million and $.88, respectively.
Rene F. Jones, Executive Vice President and Chief Financial Officer, commented, "Our third quarter results are just what you would expect from M&T, steady performance during times of economic turmoil. We continued to experience growth in our core deposits, which increased for the fourth consecutive quarter. That growth was particularly strong during September, when markets were significantly disrupted. Our interest margin remained stable as compared with the first two quarters of 2008. Nonperforming loans trended higher during the recent quarter, even though net charge-offs of loans were down slightly. Both remain at manageable levels. Most notable is the continued improvement of our regulatory capital ratios, which reflects the strength of our operating model and allows us to continue to invest and lend in the communities we serve."
In September, M&T resolved certain tax issues related to its activities in various jurisdictions that resulted in a reduction of income tax expense of $40 million in the recent quarter, thereby adding $.36 to diluted earnings per share.
Diluted earnings per share were $1.83 and $1.44 in the third quarter of 2007 and the second quarter of 2008, respectively. Net income for those respective quarters was $199 million and $160 million.
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. Amortization of core deposit and other intangible assets, after tax effect, totaled $10 million ($.09 per diluted share) in each of the quarters ended September 30, 2008, June 30, 2008 and September 30, 2007. There were no merger and integration-related expenses incurred during those quarters.
Diluted net operating earnings per share and net operating income, which exclude amortization of core deposit and other intangible assets and merger-related expenses, were $.91 and $101 million, respectively, in the third quarter of 2008. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, that net operating income was .65% and 13.17%, respectively.
Diluted net operating earnings per share totaled $1.92 in 2007's third quarter and $1.53 in the second quarter of 2008. Net operating income was $209 million and $170 million in those respective quarters.
Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $493 million in the third quarter of 2008, 4% higher than $473 million in the year-earlier period. Growth in average loans and leases, which rose 11% to $48.5 billion in 2008's third quarter from $43.8 billion in the third quarter of 2007, was the most significant contributor to the improvement. Such growth was attributable to increases in average outstanding balances in commercial loans, commercial real estate loans and consumer loans, and includes the impact of loans added in the fourth quarter of 2007 as a result of acquisitions. Also noteworthy was a 7% increase in average deposits, including a 12% rise in core deposits, from the third quarter of 2007 to the recent quarter. The growth in deposits also reflects the impact of the late-2007 acquisitions. The favorable effect of higher loans and deposits on taxable-equivalent net interest income was partially offset by a year-over-year narrowing of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, which declined 26 basis points (hundredths of one percent) to 3.39% in 2008's third quarter from 3.65% in the corresponding period of 2007. Nevertheless, M&T's net interest margin in the recent quarter was unchanged from 2008's second quarter, when taxable-equivalent net interest income was $492 million.
Provision for Credit Losses/Asset Quality. The provision for credit losses was $101 million in the third quarter of 2008 and exceeded net charge-offs by $7 million. That was comparable to the $100 million provision in the second quarter of 2008, but was up from $34 million in the third quarter of 2007. Net charge-offs of loans totaled $94 million during the recent quarter, compared with $99 million in 2008's second quarter and $22 million in the third quarter of 2007. Contributing to the increase in net charge-offs as compared with the year-earlier quarter were $33 million recorded in the recent quarter related to loans to builders and developers of residential real estate. There were $38 million of such loans charged off in the second quarter of 2008, while in 2007's third quarter there were no such loans charged off. Net charge-offs of loans collateralized by first or second liens on residential real estate totaled $23 million during the recent quarter, compared with $21 million and $8 million in the quarters ended June 30, 2008 and September 30, 2007, respectively. Alt-A loans included in those net charge-offs were $15 million in each of the quarters ended September 30, 2008 and June 30, 2008, and $5 million in the quarter ended September 30, 2007. Indirect automobile loan net charge-offs were $13 million in the recent quarter, compared with $11 million and $7 million in the second quarter of 2008 and the third 2007 quarter, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .77%, .81% and .20% in the quarters ended September 30, 2008, June 30, 2008 and September 30, 2007, respectively.
Loans classified as nonperforming rose to $710 million, or 1.46% of total loans at September 30, 2008 from $371 million or .83% a year earlier, $447 million or .93% at December 31, 2007 and $587 million or 1.20% at June 30, 2008. Factors contributing to the rise in nonperforming loans from September 30, 2007 to September 30, 2008 were a $156 million increase in residential real estate loans and a $100 million increase in loans to builders and developers of residential real estate. The higher level of nonperforming residential real estate loans reflects a December 2007 change in accounting procedure whereby residential real estate loans previously classified as nonaccrual when payments were 180 days past due now stop accruing interest when payments become 90 days delinquent. The acceleration of the classification of such loans as nonaccrual increased nonperforming loans at September 30, 2008 and December 31, 2007 by $72 million and $84 million, respectively. Contributing to the increase in nonperforming loans from June 30, 2008 were the net additions of $64 million of commercial real estate loans (including $19 million of loans to residential real estate builders and developers) and $42 million of residential real estate loans.
Loans past due 90 days or more and accruing interest were $96 million at the end of the recent quarter, compared with $140 million a year earlier. Included in these past due but accruing amounts were loans guaranteed by government-related entities of $90 million and $70 million at September 30, 2008 and 2007, respectively. Assets taken in foreclosure of defaulted loans were $76 million at September 30, 2008, up from $22 million at September 30, 2007. The rise in such assets resulted from higher residential real estate loan defaults and recent quarter additions from residential real estate development projects.
Allowance for Credit Losses. The allowance for credit losses was $781 million, or 1.60% of total loans, at September 30, 2008, up from $680 million, or 1.52%, a year earlier, and $759 million, or 1.58%, at December 31, 2007. The increase in the allowance as a percentage of loans reflects the impact of lower valuations of residential real estate and higher levels of borrower delinquencies. Reflecting the value of collateral securing M&T's nonperforming loans, the ratio of the allowance for credit losses to nonperforming loans was 110%, 183% and 170% at September 30, 2008, September 30, 2007, and December 31, 2007, respectively.
Noninterest Income and Expense. Noninterest income in the third quarter of 2008 aggregated $114 million, compared with $253 million in the year-earlier quarter. The recent quarter's total reflects the non-cash, other-than-temporary impairment charge of $153 million (pre-tax) related to M&T's holdings of preferred stock of Fannie Mae and Freddie Mac. Excluding that charge, other income in 2008's third quarter was $266 million, or 5% higher than in the year-earlier quarter. That improvement was largely attributable to higher mortgage banking revenues, service charges on deposit accounts and credit-related fees. Reflected in other income during the third quarters of 2008 and 2007 were reductions of $14 million and $11 million, respectively, resulting from M&T's pro-rata portion of the operating results of Bayview Lending Group, LLC ("BLG"), a privately-held commercial mortgage lender in which M&T invested on February 5, 2007. Including expenses associated with M&T's investment in BLG, most notably interest expense, that investment reduced M&T's net income by approximately $11 million (after tax effect) in the third quarter of 2008, while a similar reduction amounted to $9 million in the third quarter of 2007. BLG's operating results reflect losses incurred on sales of loans due to significant disruptions in the commercial mortgage-backed securities market. In response to the illiquidity in the marketplace, BLG has reduced its originations activities, scaled back its workforce and made use of its contingent liquidity sources.
Noninterest expense in the third quarter of 2008 totaled $435 million, compared with $391 million in the third quarter of 2007. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $16 million in each of the third quarters of 2008 and 2007. Exclusive of those nonoperating expenses, noninterest operating expenses were $419 million in the recent quarter, compared with $375 million in the third quarter of 2007. The higher level of operating expenses in the recent quarter as compared with the year-earlier period was due largely to increased expenses for salaries, occupancy, professional services, advertising and promotion, and foreclosed residential real estate properties.
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 55.2% in the third quarter of 2008, compared with 51.6% in the year-earlier period.
Balance Sheet. M&T had total assets of $65.2 billion at September 30, 2008, up from $60.0 billion at September 30, 2007. Loans and leases, net of unearned discount, were $48.7 billion at September 30, 2008, compared with $44.8 billion a year earlier. Deposits aggregated $42.5 billion at the recent quarter-end, compared with $38.5 billion at September 30, 2007. Total stockholders' equity was $6.4 billion and $6.2 billion at September 30, 2008 and 2007, representing 9.83% and 10.40%, respectively, of total assets. Common stockholders' equity per share was $58.17 and $58.40 at September 30, 2008 and 2007, respectively. Tangible equity per common share was $27.67 at September 30, 2008, compared with $29.48 at September 30, 2007. In the calculation of tangible equity per common share, 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 $3.4 billion and $3.1 billion at September 30, 2008 and 2007, respectively.
Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 10:00 a.m. Eastern Time. Those wishing to participate in the call may dial 877-780-2276. International participants, using any applicable international calling codes, may dial 973-582-2700. Callers should reference M&T Bank Corporation or conference ID #63006736. The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Thursday, October 23, 2008 by calling 800-642-1687, or 706-645-9291 for international participants, and by making reference to ID #63006736. 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, other assets and collateral securing loans; 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.
M&T BANK CORPORATION
Financial Highlights
Three months ended
September 30
Amounts in thousands, --------------------
except per share 2008 2007 Change
-------- -------- ------
Performance
-----------
Net income $ 91,185 199,187 -54 %
Per common share:
Basic earnings $ .83 1.86 -55 %
Diluted earnings .82 1.83 -55
Cash dividends $ .70 .70 -
Common shares outstanding:
Average - diluted (1) 110,807 108,957 2 %
Period end (2) 110,313 106,807 3
Return on (annualized):
Average total assets .56 % 1.37 %
Average common
stockholders' equity 5.66 % 12.78 %
Taxable-equivalent
net interest income $ 493,499 472,800 4 %
Yield on average earning
assets 5.54 % 6.94 %
Cost of interest-bearing
liabilities 2.50 % 3.88 %
Net interest spread 3.04 % 3.06 %
Contribution of
interest-free funds .35 % .59 %
Net interest margin 3.39 % 3.65 %
Net charge-offs to average
total net loans (annualized) .77 % .20 %
Net operating results (3)
-------------------------
Net operating income $ 100,809 208,749 -52 %
Diluted net operating
earnings per common share .91 1.92 -53
Return on (annualized):
Average tangible assets .65 % 1.51 %
Average tangible common
equity 13.17 % 26.80 %
Efficiency ratio 55.16 % 51.64 %
At September 30
--------------------
Loan quality 2008 2007 Change
------------ -------- -------- ------
Nonaccrual loans $ 688,214 356,438 93 %
Renegotiated loans 21,804 14,953 46
-------- --------
Total nonperforming
loans $ 710,018 371,391 91 %
======== ========
Accruing loans past due 90
days or more $ 96,206 140,313 -31 %
Nonperforming loans to
total net loans 1.46 % .83 %
Allowance for credit losses
to total net loans 1.60 % 1.52 %
Nine months ended
September 30
Amounts in thousands, --------------------
except per share 2008 2007 Change
-------- -------- ------
Performance
-----------
Net income $ 453,646 589,329 -23 %
Per common share:
Basic earnings $ 4.12 5.45 -24 %
Diluted earnings 4.09 5.34 -23
Cash dividends $ 2.10 1.90 11
Common shares outstanding:
Average - diluted (1) 111,000 110,342 1 %
Period end (2) 110,313 106,807 3
Return on (annualized):
Average total assets .93 % 1.37 %
Average common
stockholders' equity 9.37 % 12.69 %
Taxable-equivalent
net interest income $ 1,470,615 1,395,234 5 %
Yield on average earning
assets 5.80 % 6.94 %
Cost of interest-bearing
liabilities 2.80 % 3.88 %
Net interest spread 3.00 % 3.06 %
Contribution of
interest-free funds .38 % .60 %
Net interest margin 3.38 % 3.66 %
Net charge-offs to average
total net loans (annualized) .65 % .19 %
Net operating results (3)
-------------------------
Net operating income $ 486,767 620,101 -22 %
Diluted net operating
earnings per common share 4.39 5.62 -22
Return on (annualized):
Average tangible assets 1.05 % 1.52 %
Average tangible common
equity 21.10 % 26.74 %
Efficiency ratio 53.47 % 52.24 %
----------------------------------------------------------------------
(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.
M&T BANK CORPORATION
Condensed Consolidated Statement of Income
Three months ended
September 30
-----------------------
Dollars in thousands 2008 2007 Change
----------- --------- ------
Interest income $ 801,354 893,014 -10 %
Interest expense 313,115 425,326 -26
----------- ---------
Net interest income 488,239 467,688 4
Provision for credit losses 101,000 34,000 197
----------- ---------
Net interest income after provision
for credit losses 387,239 433,688 -11
Other income
Mortgage banking revenues 38,002 31,643 20
Service charges on deposit accounts 110,371 104,402 6
Trust income 38,789 38,168 2
Brokerage services income 16,218 14,978 8
Trading account and foreign exchange
gains 4,278 7,279 -41
Gain (loss) on bank investment
securities (152,273) (138) -
Equity in earnings of Bayview Lending
Group, LLC (14,480) (11,294) -
Other revenues from operations 72,812 67,861 7
----------- ---------
Total other income 113,717 252,899 -55
Other expense
Salaries and employee benefits 236,678 220,750 7
Equipment and net occupancy 47,033 42,091 12
Printing, postage and supplies 8,443 7,996 6
Amortization of core deposit and
other intangible assets 15,840 15,702 1
Other costs of operations 126,769 103,989 22
----------- ---------
Total other expense 434,763 390,528 11
Income before income taxes 66,193 296,059 -78
Applicable income taxes (benefit) (24,992) 96,872 -
----------- ---------
Net income $ 91,185 199,187 -54 %
=========== =========
Nine months ended
September 30
-----------------------
Dollars in thousands 2008 2007 Change
----------- ---------- ------
Interest income $ 2,503,090 2,632,239 -5 %
Interest expense 1,049,369 1,252,212 -16
----------- ----------
Net interest income 1,453,721 1,380,027 5
Provision for credit losses 261,000 91,000 187
----------- ----------
Net interest income after provision
for credit losses 1,192,721 1,289,027 -7
Other income
Mortgage banking revenues 116,291 81,062 43
Service charges on deposit accounts 324,165 303,615 7
Trust income 119,519 112,691 6
Brokerage services income 48,902 46,844 4
Trading account and foreign exchange
gains 15,627 20,465 -24
Gain (loss) on bank investment
securities (124,247) 1,185 -
Equity in earnings of Bayview Lending
Group, LLC (28,766) (5,594) -
Other revenues from operations 226,071 212,231 7
----------- ----------
Total other income 697,562 772,499 -10
Other expense
Salaries and employee benefits 724,676 682,204 6
Equipment and net occupancy 141,050 126,036 12
Printing, postage and supplies 27,459 25,886 6
Amortization of core deposit and
other intangible assets 50,938 50,515 1
Other costs of operations 336,054 297,575 13
----------- ----------
Total other expense 1,280,177 1,182,216 8
Income before income taxes 610,106 879,310 -31
Applicable income taxes (benefit) 156,460 289,981 -46
----------- ----------
Net income $453,646 589,329 -23 %
=========== ==========
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
September 30
------------------------
Dollars in thousands 2008 2007 Change
----------- ----------- ------
ASSETS
Cash and due from banks $ 1,368,917 1,295,377 6 %
Interest-bearing deposits at banks 13,604 8,503 60
Federal funds sold and agreements
to resell securities 108,600 399,997 -73
Trading account assets 370,420 180,019 106
Investment securities 8,433,441 8,003,015 5
Loans and leases, net of unearned
discount 48,693,543 44,778,472 9
Less: allowance for credit losses 780,683 680,498 15
----------- -----------
Net loans and leases 47,912,860 44,097,974 9
Goodwill 3,192,128 2,908,849 10
Core deposit and other intangible
assets 198,554 200,195 -1
Other assets 3,648,691 2,914,194 25
--------- -----------
Total assets $ 65,247,215 60,008,123 9 %
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Noninterest-bearing deposits at
U.S. offices $ 8,332,060 7,565,762 10 %
Other deposits at U.S. offices 28,408,485 24,719,291 15
Deposits at foreign office 5,760,748 6,188,126 -7
---------- -----------
Total deposits 42,501,293 38,473,179 10
Short-term borrowings 2,929,242 4,920,901 -40
Accrued interest and other
liabilities 918,029 859,847 7
Long-term borrowings 12,481,967 9,516,192 31
---------- -----------
Total liabilities 58,830,531 53,770,119 9
Stockholders' equity (1) 6,416,684 6,238,004 3
----------- -----------
Total liabilities and
stockholders' equity $ 65,247,215 60,008,123 9 %
=========== ===========
----------------------------------------------------------------------
(1) Reflects accumulated other comprehensive loss, net of applicable
income tax effect, of $462.1 million at September 30, 2008 and
$86.7 million at September 30, 2007.
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
Three months ended
September 30
------------------------------
Dollars in millions 2008 2007 Change
------------- ------------- in
Balance Rate Balance Rate balance
------- ---- ------- ---- -------
ASSETS
Interest-bearing deposits
at banks $ 9 1.09 % 8 3.27 % 17 %
Federal funds sold and
agreements to resell
securities 102 2.01 248 5.47 -59
Trading account assets 80 1.81 59 .98 35
Investment securities 9,303 5.01 7,260 5.04 28
Loans and leases, net of
unearned discount
Commercial, financial,
etc. 13,882 5.09 12,239 7.25 13
Real estate - commercial 18,557 5.62 15,474 7.54 20
Real estate - consumer 4,964 6.01 5,915 6.47 -16
Consumer 11,074 6.31 10,122 7.51 9
------- -------
Total loans and leases,
net 48,477 5.65 43,750 7.28 11
------- -------
Total earning assets 57,971 5.54 51,325 6.94 13
Goodwill 3,192 2,909 10
Core deposit and other
intangible assets 206 208 -1
Other assets 3,628 3,420 6
------- -------
Total assets $ 64,997 57,862 12 %
======= =======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $ 484 .54 464 .84 4 %
Savings deposits 18,191 1.29 14,908 1.67 22
Time deposits 9,318 3.08 9,880 4.70 -6
Deposits at foreign
office 3,837 1.94 4,324 5.11 -11
------- -------
Total interest-bearing
deposits 31,830 1.88 29,576 3.17 8
------- -------
Short-term borrowings 5,392 2.08 5,228 5.19 3
Long-term borrowings 12,666 4.23 8,661 5.51 46
------- -------
Total interest-bearing
liabilities 49,888 2.50 43,465 3.88 15
Noninterest-bearing
deposits 7,673 7,360 4
Other liabilities 1,021 851 20
------- -------
Total liabilities 58,582 51,676 13
Stockholders' equity 6,415 6,186 4
------- -------
Total liabilities and
stockholders' equity $ 64,997 57,862 12 %
======= =======
Net interest spread 3.04 3.06
Contribution of
interest-free funds .35 .59
Net interest margin 3.39 % 3.65 %
Nine months ended
September 30
------------------------------
Dollars in millions 2008 2007 Change
------------- ------------- in
Balance Rate Balance Rate balance
------- ---- ------- ---- -------
ASSETS
Interest-bearing deposits
at banks $ 9 1.32 % 8 3.31 % 16 %
Federal funds sold and
agreements to resell
securities 110 2.38 333 6.00 -67
Trading account assets 73 1.40 60 1.09 22
Investment securities 9,000 5.10 7,120 5.03 26
Loans and leases, net of
unearned discount
Commercial, financial,
etc. 13,664 5.42 12,051 7.25 13
Real estate - commercial 18,348 5.91 15,509 7.43 18
Real estate - consumer 5,653 6.08 5,909 6.48 -4
Consumer 11,192 6.54 10,012 7.47 12
------- -------
Total loans and leases,
net 48,857 5.94 43,481 7.27 12
------- -------
Total earning assets 58,049 5.80 51,002 6.94 14
Goodwill 3,193 2,909 10
Core deposit and other
intangible assets 222 224 -1
Other assets 3,734 3,398 10
------- -------
Total assets $ 65,198 57,533 13 %
======= =======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing deposits
NOW accounts $ 493 .62 452 .94 9 %
Savings deposits 17,710 1.40 14,890 1.66 19
Time deposits 9,649 3.57 10,680 4.73 -10
Deposits at foreign
office 4,322 2.45 3,918 5.16 10
------- -------
Total interest-bearing
deposits 32,174 2.18 29,940 3.20 7
------- -------
Short-term borrowings 6,468 2.73 5,213 5.27 24
Long-term borrowings 11,452 4.57 7,963 5.54 44
------- -------
Total interest-bearing
liabilities 50,094 2.80 43,116 3.88 16
Noninterest-bearing
deposits 7,562 7,373 3
Other liabilities 1,077 835 29
------- -------
Total liabilities 58,733 51,324 14
Stockholders' equity 6,465 6,209 4
------- -------
Total liabilities and
stockholders' equity $ 65,198 57,533 13 %
======= =======
Net interest spread 3.00 3.06
Contribution of
interest-free funds .38 .60
Net interest margin 3.38 % 3.66 %
M&T BANK CORPORATION
Reconciliation of Quarterly GAAP to Non-GAAP Measures
Three months ended Nine months ended
-------------------------- -----------------
September 30 June 30 September 30
2008 2007 2008 2008 2007
-------- ------- ------- ------- -------
Income statement data
---------------------
Amounts in thousands, except
per share
Net income
Net income $ 91,185 199,187 160,265 453,646 589,329
Amortization of core deposit
and other intangible
assets (1) 9,624 9,562 10,096 30,961 30,772
Merger-related expenses (1) - - - 2,160 -
-------- ------- ------- ------- -------
Net operating income $100,809 208,749 170,361 486,767 620,101
======== ======= ======= ======= =======
Earnings per share
Diluted earnings per common
share $ .82 1.83 1.44 4.09 5.34
Amortization of core deposit
and other intangible
assets (1) .09 .09 .09 .28 .28
Merger-related expenses (1) - - - .02 -
-------- ------- ------- ------- -------
Diluted net operating
earnings per share $ .91 1.92 1.53 4.39 5.62
======== ======= ======= ======= =======
Balance sheet data
------------------
Dollars in millions
Average assets
Average assets $64,997 57,862 65,584 65,198 57,533
Goodwill (3,192) (2,909) (3,192) (3,193) (2,909)
Core deposit and other
intangible assets (206) (208) (222) (222) (224)
Deferred taxes 28 21 31 31 24
-------- ------- ------- ------- -------
Average tangible assets $61,627 54,766 62,201 61,814 54,424
======== ======= ======= ======= =======
Average equity
Average equity $ 6,415 6,186 6,469 6,465 6,209
Goodwill (3,192) (2,909) (3,192) (3,193) (2,909)
Core deposit and other
intangible assets (206) (208) (222) (222) (224)
Deferred taxes 28 21 31 31 24
-------- ------- ------- ------- -------
Average tangible equity $ 3,045 3,090 3,086 3,081 3,100
======== ======= ======= ======= =======
-------------------------------------------------------------------------
(1) After any related tax effect.
INVESTOR CONTACT: Donald J. MacLeod
(716) 842-5138
MEDIA CONTACT: C. Michael Zabel
(716) 842-5385
SOURCE M&T Bank Corporation
http://ir.mandtbank.com/conference.cfm
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