UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 12, 2005
Date of Report (Date of earliest event reported):
M&T BANK CORPORATION
(Exact name of registrant as specified in its charter)
New York
(State or other jurisdiction of incorporation)
| 1-9861 | 16-0968385 | |
| (Commission File Number) | (I.R.S. Employer Identification No.) | |
| One M&T Plaza, Buffalo, New York | 14203 | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s telephone number, including area code: | (716) 842-5445 | |
(NOT APPLICABLE)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instructions
A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On October 12, 2005, M&T Bank Corporation announced its results of operations for the fiscal
quarter ended September 30, 2005. The public announcement was made by means of a news release, the
text of which is set forth in Exhibit 99 hereto.
The information in this Form 8-K, including Exhibit 99 attached hereto, is being furnished
under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities
Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section,
nor shall it be deemed incorporated by reference in any filing of M&T Bank Corporation under the
Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in
such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
| Exhibit No. | ||||||||
99 |
News Release dated October 12, 2005. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| M&T BANK CORPORATION | ||||||
Date: October 12, 2005
|
By: | /s/ René F. Jones |
||||
| René F. Jones | ||||||
| Senior Vice President | ||||||
| and Chief Financial Officer | ||||||
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EXHIBIT INDEX
Exhibit No. |
|||||
99
|
News Release dated October 12, 2005. Filed herewith. |
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Exhibit 99
INVESTOR CONTACT:
|
Donald J. MacLeod | FOR IMMEDIATE RELEASE: | ||
| (716) 842-5462 | October 12, 2005 | |||
MEDIA CONTACT:
|
C. Michael Zabel | |||
| (716) 842-2311 |
M&T BANK CORPORATION ANNOUNCES THIRD QUARTER RESULTS
BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of
operations for the quarter ended September 30, 2005.
GAAP Results of Operations. Diluted earnings per share measured in accordance with
generally accepted accounting principles (“GAAP”) for the third quarter of 2005 were $1.64, up 5%
from $1.56 in the year-earlier period. On the same basis, net income in the recent quarter totaled
$191 million, 2% higher than $186 million in the third quarter of 2004. GAAP-basis net income for
2005’s third quarter expressed as an annualized rate of return on average assets and average common
stockholders’ equity was 1.39% and 12.97%, respectively, compared with 1.42% and 13.02%,
respectively, in the year-earlier quarter.
The recent quarter’s results reflect a $29 million non-cash, other-than-temporary impairment
charge related to preferred stock issuances of the Federal National Mortgage Association (“FNMA”) and
the Federal Home Loan Mortgage Corporation (“FHLMC”). The write-down was taken on $133 million of
variable-rate preferred securities that M&T continues to hold. Although the securities are still
rated as investment grade, M&T recognized the impairment charge at this time, in accordance with
GAAP, in light of changing circumstances during the recent quarter that included an announced
further delay in FNMA’s ability to provide restated financial information about its results of
operations until late
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2006 and a
further decline in the market value of certain of FHLMC’s
preferred stock issuances following its release of operating results. However, because the preferred securities have been
held by M&T in its available-for-sale investment securities portfolio, the unrealized losses had
already been recorded as reductions of other comprehensive income and, therefore, no incremental
reductions of investment securities or stockholders’ equity were required. Accordingly, the
accounting treatment for the impairment charge made pursuant to GAAP had no significant effect on
M&T’s consolidated balance sheet. As a result of the impairment charge and the recognition of
available income tax benefits, M&T’s reported net income in the recent quarter was reduced by $18
million, or $.16 of diluted earnings per share.
Results for the third quarter of last year also included certain notable events. M&T
reorganized certain of its subsidiaries in 2004’s third quarter which decreased M&T’s effective
state income tax rate for that quarter. As a result, both M&T’s income tax expense during the
third quarter of 2004 and M&T’s deferred tax liability at September 30, 2004 were reduced by $12
million. In addition, M&T Bank, a wholly owned subsidiary of M&T, made a tax-deductible $25
million cash contribution to The M&T Charitable Foundation, a tax-exempt private charitable
foundation,
which increased “other expense” by the amount of the contribution while reducing income tax expense
by $10 million. The aggregate impact of these events was to decrease net income in the third
quarter of 2004 by $3 million or $.02 of diluted earnings per share.
Commenting on M&T’s third quarter results, René F. Jones, Senior Vice President and Chief
Financial Officer, stated “Although the recent quarter’s performance was affected by the non-cash
write-down of the preferred stock of certain government-sponsored entities, we are nevertheless pleased with our results.
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Our ability to contain expenses during a period of slow industry-wide revenue growth is in part
attributable to success in our areas of focus initially described in the 2004 Annual Report to
Stockholders. That success is reflected in the year-over-year improvement in our efficiency ratio.
Furthermore, credit quality continued to be very good as reflected in the relatively low levels of
net charge-offs and nonperforming loans.”
For the first three quarters of 2005, GAAP-basis diluted earnings per share increased 13% to
$4.95 from $4.39 in the comparable year-earlier period. On the same basis, net income for the
first nine months of 2005 totaled $577 million, up 9% from the $530 million earned in the similar
2004 period. GAAP-basis net income for the nine-month period ended September 30, 2005 expressed as
an annualized rate of return on average assets and average common stockholders’ equity was 1.43%
and 13.37%, respectively, compared with 1.39% and 12.44%, respectively, in the corresponding 2004
period.
Supplemental Reporting of Non-GAAP Results of Operations. Since 1998, M&T has
consistently provided 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, because 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 $9 million ($.08 per
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diluted share) in the recent
quarter, compared with $11 million ($.09 per diluted share) in
the
third quarter of 2004. Similar amortization charges, after tax effect, for the nine-month periods
ended September 30, 2005 and 2004 were $27 million ($.23 per diluted share) and $36 million ($.30
per diluted share), respectively. There were no merger-related expenses in either 2005 or 2004.
Reflecting the impact of each year’s third quarter events described earlier, diluted net
operating earnings per share, which exclude amortization of core deposit and other intangible
assets, were $1.72 in the third quarter of 2005, up 4% from $1.65 in the year-earlier quarter. Net
operating income totaled $200 million and $198 million in the third quarter of 2005 and 2004,
respectively. Expressed as an annualized rate of return on average tangible assets and average
tangible stockholders’ equity, net operating income was 1.54% and 27.67%, respectively, in 2005’s
third quarter, compared with 1.60% and 29.42% in the year-earlier quarter.
Diluted net operating earnings per share for the nine-month period ended September 30, 2005
rose 10% to $5.18 from $4.69 in the similar period of 2004. For the first nine months of 2005, net
operating income totaled $604 million, 7% higher than $566 million in the year-earlier period.
Expressed as an annualized rate of return on average tangible assets and average tangible equity,
net operating income for the first three quarters of 2005 was 1.59% and 29.04%, respectively,
compared with 1.58% and 28.45% in the first nine months of 2004.
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Reconciliation of GAAP and Non-GAAP Results of Operations. A reconciliation of
diluted earnings per share and net income with diluted net operating earnings per share and net
operating income follows:
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (in thousands, except per share) | ||||||||||||||||
Diluted earnings per share |
$ | 1.64 | 1.56 | 4.95 | 4.39 | |||||||||||
Amortization of core deposit
and other intangible assets(1) |
.08 | .09 | .23 | .30 | ||||||||||||
Diluted net operating earnings
per share |
$ | 1.72 | 1.65 | 5.18 | 4.69 | |||||||||||
Net income |
$ | 191,074 | 186,441 | 577,198 | 530,316 | |||||||||||
Amortization of core deposit
and other intangible assets(1) |
8,503 | 11,381 | 26,929 | 36,087 | ||||||||||||
Net operating income |
$ | 199,577 | 197,822 | 604,127 | 566,403 | |||||||||||
| (1) | After any related tax effect |
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Reconciliation of Total Assets and Equity to Tangible Assets and Equity. A
reconciliation of average assets and equity with average tangible assets and average tangible
equity follows:
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (in millions) | ||||||||||||||||
Average assets |
$ | 54,444 | 52,170 | 53,899 | 51,116 | |||||||||||
Goodwill |
(2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | ||||||||
Core deposit and other
intangible assets |
(128 | ) | (191 | ) | (142 | ) | (210 | ) | ||||||||
Deferred taxes |
49 | — | 55 | — | ||||||||||||
Average tangible assets |
$ | 51,461 | 49,075 | 50,908 | 48,002 | |||||||||||
Average equity |
$ | 5,845 | 5,697 | 5,772 | 5,694 | |||||||||||
Goodwill |
(2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | ||||||||
Core deposit and other
intangible assets |
(128 | ) | (191 | ) | (142 | ) | (210 | ) | ||||||||
Deferred taxes |
49 | 73 | 55 | 80 | ||||||||||||
Average tangible equity |
$ | 2,862 | 2,675 | 2,781 | 2,660 | |||||||||||
Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income
increased to $460 million in the third quarter of 2005 from $444 million in the year-earlier
quarter. Average loans outstanding totaled $39.9 billion in the recent quarter, compared with
$37.6 billion in the third quarter of 2004. Largely offsetting the favorable impact of higher
outstanding loan balances was a narrowing of M&T’s net interest margin, or taxable-equivalent net
interest income expressed as an annualized percentage of average earning assets, to 3.76% in
2005’s third quarter from 3.85% in the corresponding period of 2004.
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Provision for Credit Losses/Asset Quality. The provision for credit losses totaled
$22 million in the recent quarter, compared with $17 million in the third quarter of 2004.
Expressed as an annualized percentage of average loans outstanding, net charge-offs were .21% in
the third quarter of 2005, compared with .16% in the corresponding 2004 period. In dollar total,
net charge-offs during the third quarter of 2005 and 2004 were $22 million and $15 million,
respectively.
Loans classified as nonperforming totaled $166 million, or .41% of total loans at the recent
quarter-end, improved from $181 million or .48% at September 30, 2004. Loans past due 90 days or
more and accruing interest totaled $131 million at September 30, 2005, compared with $140 million a
year earlier. Included in these loans at September 30, 2005 and
2004 were $107 million and $111
million, respectively, of loans guaranteed by government-related entities.
Allowance for Credit Losses. The allowance for credit losses totaled $638 million, or
1.58% of total loans, at September 30, 2005, compared with $626 million, or 1.65%, a year earlier.
The decline in the allowance as a percentage of loans reflects improvement in various credit
factors and the relatively low levels of net loan charge-offs and nonperforming loans. At December
31, 2004, the allowance for credit losses totaled $627 million, or 1.63% of total loans. The ratio
of M&T’s allowance for credit losses to nonperforming loans was 383%, 346% and 364% at September
30, 2005, September 30, 2004 and December 31, 2004, respectively.
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Noninterest Income and Expense. Noninterest income in the recent quarter totaled $221
million, down 10% from $245 million in the year-earlier quarter. The decrease was the result of
the previously discussed $29 million non-cash accounting charge recognized during the recent
quarter for the other-than-temporary decline in value of the preferred stock of FNMA and FHLMC,
partially offset by increases in mortgage banking and other revenues.
Noninterest expense in the third quarter of 2005 totaled $368 million, down from $407 million
in 2004’s third quarter. Included in such amounts are expenses considered to be nonoperating in
nature consisting of amortization of core deposit and other intangible assets of $14 million in
2005 and $19 million in 2004. Exclusive of those nonoperating expenses, noninterest operating
expenses were $354 million in the recent quarter, down $34 million from $388 million in the third
quarter of 2004. The higher operating expenses in 2004’s third quarter resulted largely from the
previously noted $25 million charitable contribution made in that period. Also contributing to the
lower level of operating expenses in 2005 was a $6 million partial reversal of the valuation
allowance for the impairment of capitalized mortgage servicing rights recorded during the recently
completed quarter. The reduction of the valuation allowance reflects an increase in the value of
capitalized mortgage servicing rights resulting from higher residential mortgage loan interest
rates at September 30, 2005 as compared with a quarter earlier. A $7 million addition to the
valuation allowance for the impairment of capitalized mortgage servicing rights was recorded during
the third quarter of 2004, largely the result of the lower interest rate environment that existed
at the end of that quarter as compared with June 30, 2004.
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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 50.0% in the third quarter of 2005, improved significantly from 56.4% in the
year-earlier period. If the $25 million charitable contribution was excluded from the computation,
M&T’s efficiency ratio during 2004’s third quarter would have been 52.7%.
Balance Sheet. M&T had total assets of $54.8 billion at September 30, 2005, up from
$52.9 billion at September 30, 2004. Loans and leases, net of unearned discount, aggregated $40.3
billion at September 30, 2005, compared with $38.0 billion a year earlier. Deposits totaled $37.2
billion at the recent quarter-end, up from $35.0 billion at September 30, 2004. Total
stockholders’ equity was $5.8 billion at September 30, 2005, representing 10.66% of total assets,
compared with $5.7 billion
or 10.80% a year earlier. Common stockholders’ equity per share was $51.81 and $49.11 at September
30, 2005 and 2004, respectively. Tangible equity per common share was $25.42 at September 30,
2005, compared with $23.17 at September 30, 2004. 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 $3.0 billion at
September 30, 2005 and 2004.
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In December 2004, M&T announced that it had been authorized by its Board of Directors to
purchase up to 5,000,000 shares of its common stock. During the recent quarter, 1,449,700 shares
of common stock were repurchased by M&T pursuant to such plan at an average cost per share of
$107.06. Through September 30, 2005, M&T had repurchased 4,093,000 shares of its common stock
pursuant to the plan at an average cost of $103.62 per share.
Conference Call. Investors will have an opportunity to listen to M&T’s
conference call to discuss third quarter financial results today at 9:00 a.m. Eastern Daylight
Saving 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. The
conference call will also 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 13, 2005 by calling 877-519-4471, code 6480553 and 973-341-3080 for international
participants. The event will also be archived and available by 3:00 p.m. today on M&T’s
website at http://ir.mandtbank.com/conference.cfm.
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.
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Future Factors include changes in interest rates, spreads on earning assets and
interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations
and credit losses; 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; regulatory supervision and oversight, including required capital
levels; 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; 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 and acquisition 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.
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Financial Highlights
Financial Highlights
| Three months ended | Nine months ended | |||||||||||||||||||||||
| Amounts in thousands, | September 30 | September 30 | ||||||||||||||||||||||
| except per share | 2005 | 2004 | Change | 2005 | 2004 | Change | ||||||||||||||||||
Performance |
||||||||||||||||||||||||
Net income |
$ | 191,074 | 186,441 | 2 | % | $ | 577,198 | 530,316 | 9 | % | ||||||||||||||
Per common share: |
||||||||||||||||||||||||
Basic
earnings
|
$ | 1.68 | 1.59 | 6 | % | $ | 5.06 | 4.48 | 13 | % | ||||||||||||||
Diluted earnings |
1.64 | 1.56 | 5 | 4.95 | 4.39 | 13 | ||||||||||||||||||
Cash dividends |
$ | .45 | .40 | 13 | $ | 1.30 | 1.20 | 8 | ||||||||||||||||
Common shares outstanding: |
||||||||||||||||||||||||
Average — diluted (1) |
116,200 | 119,665 | -3 | % | 116,598 | 120,874 | -4 | % | ||||||||||||||||
Period end (2) |
112,848 | 116,274 | -3 | 112,848 | 116,274 | -3 | ||||||||||||||||||
Return on (annualized): |
||||||||||||||||||||||||
Average total assets |
1.39 | % | 1.42 | % | 1.43 | % | 1.39 | % | ||||||||||||||||
Average common stockholders’ equity |
12.97 | % | 13.02 | % | 13.37 | % | 12.44 | % | ||||||||||||||||
Taxable-equivalent net interest income |
$ | 459,553 | 443,827 | 4 | % | $ | 1,357,493 | 1,305,645 | 4 | % | ||||||||||||||
Yield on average earning assets |
5.94 | % | 5.10 | % | 5.72 | % | 5.08 | % | ||||||||||||||||
Cost of interest-bearing liabilities |
2.64 | % | 1.53 | % | 2.35 | % | 1.45 | % | ||||||||||||||||
Net interest spread |
3.30 | % | 3.57 | % | 3.37 | % | 3.63 | % | ||||||||||||||||
Contribution of interest-free funds |
.46 | % | .28 | % | .42 | % | .27 | % | ||||||||||||||||
Net interest margin |
3.76 | % | 3.85 | % | 3.79 | % | 3.90 | % | ||||||||||||||||
Net charge-offs to average total
net loans (annualized) |
.21 | % | .16 | % | .18 | % | .20 | % | ||||||||||||||||
Net
operating results (3) |
||||||||||||||||||||||||
Net operating income |
$ | 199,577 | 197,822 | 1 | % | $ | 604,127 | 566,403 | 7 | % | ||||||||||||||
Diluted net operating earnings per common share |
1.72 | 1.65 | 4 | 5.18 | 4.69 | 10 | ||||||||||||||||||
Return on (annualized): |
||||||||||||||||||||||||
Average tangible assets |
1.54 | % | 1.60 | % | 1.59 | % | 1.58 | % | ||||||||||||||||
Average tangible common equity |
27.67 | % | 29.42 | % | 29.04 | % | 28.45 | % | ||||||||||||||||
Efficiency ratio |
49.97 | % | 56.38 | % | 51.38 | % | 54.52 | % | ||||||||||||||||
| At September 30 | ||||||||||||
| 2005 | 2004 | Change | ||||||||||
Loan
quality |
||||||||||||
Nonaccrual loans |
$ | 154,768 | 171,807 | -10 | % | |||||||
Renegotiated loans |
11,697 | 9,051 | 29 | |||||||||
Total nonperforming loans |
$ | 166,465 | 180,858 | -8 | % | |||||||
Accruing loans past due 90 days or more |
$ | 130,944 | 139,541 | -6 | % | |||||||
Nonperforming loans to total net loans |
.41 | % | .48 | % | ||||||||
Allowance for credit losses to total net loans |
1.58 | % | 1.65 | % | ||||||||
| (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. A reconciliation of net income and net operating income appears on page 5. |
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Condensed Consolidated Statement of Income
Condensed Consolidated Statement of Income
| Three months ended | Nine months ended | |||||||||||||||||||||||
| September 30 | September 30 | |||||||||||||||||||||||
| Dollars in thousands | 2005 | 2004 | Change | 2005 | 2004 | Change | ||||||||||||||||||
Interest income |
$ | 720,754 | 583,052 | 24 | % | $ | 2,035,593 | 1,689,785 | 20 | % | ||||||||||||||
Interest expense |
265,576 | 143,771 | 85 | 690,858 | 397,405 | 74 | ||||||||||||||||||
Net interest income |
455,178 | 439,281 | 4 | 1,344,735 | 1,292,380 | 4 | ||||||||||||||||||
Provision for credit losses |
22,000 | 17,000 | 29 | 65,000 | 67,000 | -3 | ||||||||||||||||||
Net interest income after
provision for credit losses |
433,178 | 422,281 | 3 | 1,279,735 | 1,225,380 | 4 | ||||||||||||||||||
Other income |
||||||||||||||||||||||||
Mortgage banking revenues |
35,345 | 32,064 | 10 | 100,045 | 90,456 | 11 | ||||||||||||||||||
Service charges on deposit accounts |
94,878 | 93,849 | 1 | 276,200 | 273,278 | 1 | ||||||||||||||||||
Trust income |
33,748 | 33,713 | — | 100,016 | 101,875 | -2 | ||||||||||||||||||
Brokerage services income |
13,685 | 13,360 | 2 | 42,045 | 40,458 | 4 | ||||||||||||||||||
Trading account and foreign exchange gains |
6,326 | 3,325 | 90 | 17,152 | 12,292 | 40 | ||||||||||||||||||
Gain (loss) on bank investment securities |
(27,995 | ) | — | — | (27,749 | ) | 2,512 | — | ||||||||||||||||
Other revenues from operations |
65,507 | 68,614 | -5 | 193,405 | 184,539 | 5 | ||||||||||||||||||
Total other income |
221,494 | 244,925 | -10 | 701,114 | 705,410 | -1 | ||||||||||||||||||
Other expense |
||||||||||||||||||||||||
Salaries and employee benefits |
207,705 | 205,003 | 1 | 618,922 | 608,400 | 2 | ||||||||||||||||||
Equipment and net occupancy |
43,033 | 42,686 | 1 | 129,647 | 134,869 | -4 | ||||||||||||||||||
Printing, postage and supplies |
8,684 | 8,103 | 7 | 25,926 | 26,489 | -2 | ||||||||||||||||||
Amortization of core deposit and other
intangible assets |
13,926 | 18,619 | -25 | 44,102 | 59,017 | -25 | ||||||||||||||||||
Other costs of operations |
94,902 | 132,511 | -28 | 297,431 | 325,321 | -9 | ||||||||||||||||||
Total other expense |
368,250 | 406,922 | -10 | 1,116,028 | 1,154,096 | -3 | ||||||||||||||||||
Income before income taxes |
286,422 | 260,284 | 10 | 864,821 | 776,694 | 11 | ||||||||||||||||||
Applicable income taxes |
95,348 | 73,843 | 29 | 287,623 | 246,378 | 17 | ||||||||||||||||||
Net income |
$ | 191,074 | 186,441 | 2 | % | $ | 577,198 | 530,316 | 9 | % | ||||||||||||||
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14-14-14-14-14
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
| September 30 | ||||||||||||
| Dollars in thousands | 2005 | 2004 | Change | |||||||||
ASSETS |
||||||||||||
Cash and due from banks |
$ | 1,401,790 | 1,754,040 | -20 | % | |||||||
Money-market assets |
217,925 | 173,235 | 26 | |||||||||
Investment securities |
8,230,447 | 8,437,288 | -2 | |||||||||
Loans and leases, net of unearned discount |
40,334,607 | 37,950,316 | 6 | |||||||||
Less: allowance for credit losses |
637,819 | 626,344 | 2 | |||||||||
Net loans and leases |
39,696,788 | 37,323,972 | 6 | |||||||||
Goodwill |
2,904,081 | 2,904,081 | — | |||||||||
Core deposit and other intangible assets |
121,405 | 181,814 | -33 | |||||||||
Other assets |
2,268,913 | 2,112,470 | 7 | |||||||||
Total assets |
$ | 54,841,349 | 52,886,900 | 4 | % | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Noninterest-bearing deposits at U.S. offices |
$ | 8,067,788 | 8,416,476 | -4 | % | |||||||
Other deposits at U.S. offices |
24,948,861 | 22,774,156 | 10 | |||||||||
Deposits at foreign office |
4,182,366 | 3,785,067 | 10 | |||||||||
Total deposits |
37,199,015 | 34,975,699 | 6 | |||||||||
Short-term borrowings |
4,198,206 | 5,650,533 | -26 | |||||||||
Accrued interest and other liabilities |
742,442 | 834,860 | -11 | |||||||||
Long-term borrowings |
6,854,663 | 5,715,508 | 20 | |||||||||
Total liabilities |
48,994,326 | 47,176,600 | 4 | |||||||||
Stockholders’ equity (1) |
5,847,023 | 5,710,300 | 2 | |||||||||
Total liabilities and stockholders’ equity |
$ | 54,841,349 | 52,886,900 | 4 | % | |||||||
| (1) | Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $45.3 million at September 30, 2005 and accumulated other comprehensive income, net of applicable income tax effect, of $85 thousand at September 30, 2004. |
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15-15-15-15-15
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
| Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
| September 30 | September 30 | |||||||||||||||||||||||||||||||||||||||
| Dollars in millions | 2005 | 2004 | Change in | 2005 | 2004 | Change in | ||||||||||||||||||||||||||||||||||
| Balance | Rate | Balance | Rate | balance | Balance | Rate | Balance | Rate | balance | |||||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||||||
Money-market assets |
$ | 129 | 2.42 | % | 68 | .72 | % | 89 | % | $ | 108 | 2.00 | % | 76 | .82 | % | 42 | % | ||||||||||||||||||||||
Investment securities |
8,439 | 4.41 | 8,195 | 4.16 | 3 | 8,535 | 4.37 | 7,886 | 4.14 | 8 | ||||||||||||||||||||||||||||||
Loans and leases, net of unearned discount |
||||||||||||||||||||||||||||||||||||||||
Commercial, financial, etc. |
10,497 | 5.71 | 9,648 | 4.29 | 9 | 10,360 | 5.43 | 9,405 | 4.22 | 10 | ||||||||||||||||||||||||||||||
Real estate — commercial |
14,351 | 6.86 | 13,669 | 5.77 | 5 | 14,315 | 6.44 | 13,053 | 5.69 | 10 | ||||||||||||||||||||||||||||||
Real estate — consumer |
4,268 | 5.99 | 2,980 | 5.95 | 43 | 3,672 | 5.98 | 3,093 | 5.93 | 19 | ||||||||||||||||||||||||||||||
Consumer |
10,763 | 6.25 | 11,314 | 5.50 | -5 | 10,887 | 6.03 | 11,238 | 5.54 | -3 | ||||||||||||||||||||||||||||||
Total loans and leases, net |
39,879 | 6.27 | 37,611 | 5.31 | 6 | 39,234 | 6.02 | 36,789 | 5.30 | 7 | ||||||||||||||||||||||||||||||
Total earning assets |
48,447 | 5.94 | 45,874 | 5.10 | 6 | 47,877 | 5.72 | 44,751 | 5.08 | 7 | ||||||||||||||||||||||||||||||
Goodwill |
2,904 | 2,904 | — | 2,904 | 2,904 | — | ||||||||||||||||||||||||||||||||||
Core deposit and other intangible assets |
128 | 191 | -33 | 142 | 210 | -32 | ||||||||||||||||||||||||||||||||||
Other assets |
2,965 | 3,201 | -7 | 2,976 | 3,251 | -8 | ||||||||||||||||||||||||||||||||||
Total assets |
$ | 54,444 | 52,170 | 4 | % | $ | 53,899 | 51,116 | 5 | % | ||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits |
||||||||||||||||||||||||||||||||||||||||
NOW accounts |
$ | 400 | .60 | 349 | .28 | 15 | % | $ | 393 | .50 | 609 | .33 | -36 | % | ||||||||||||||||||||||||||
Savings deposits |
14,822 | 1.00 | 15,432 | .57 | -4 | 15,021 | .88 | 15,286 | .59 | -2 | ||||||||||||||||||||||||||||||
Time deposits |
9,540 | 3.30 | 7,265 | 2.20 | 31 | 8,531 | 3.01 | 6,901 | 2.18 | 24 | ||||||||||||||||||||||||||||||
Deposits at foreign office |
4,005 | 3.42 | 3,334 | 1.42 | 20 | 4,018 | 2.93 | 3,000 | 1.15 | 34 | ||||||||||||||||||||||||||||||
Total interest-bearing deposits |
28,767 | 2.09 | 26,380 | 1.12 | 9 | 27,963 | 1.82 | 25,796 | 1.07 | 8 | ||||||||||||||||||||||||||||||
Short-term borrowings |
4,779 | 3.50 | 5,281 | 1.46 | -9 | 4,979 | 2.98 | 5,065 | 1.17 | -2 | ||||||||||||||||||||||||||||||
Long-term borrowings |
6,373 | 4.46 | 5,789 | 3.44 | 10 | 6,346 | 4.21 | 5,741 | 3.39 | 11 | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities |
39,919 | 2.64 | 37,450 | 1.53 | 7 | 39,288 | 2.35 | 36,602 | 1.45 | 7 | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits |
7,941 | 8,189 | -3 | 8,121 | 7,917 | 3 | ||||||||||||||||||||||||||||||||||
Other liabilities |
739 | 834 | -11 | 718 | 903 | -20 | ||||||||||||||||||||||||||||||||||
Total liabilities |
48,599 | 46,473 | 5 | 48,127 | 45,422 | 6 | ||||||||||||||||||||||||||||||||||
Stockholders’ equity |
5,845 | 5,697 | 3 | 5,772 | 5,694 | 1 | ||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 54,444 | 52,170 | 4 | % | $ | 53,899 | 51,116 | 5 | % | ||||||||||||||||||||||||||||||
Net interest spread |
3.30 | 3.57 | 3.37 | 3.63 | ||||||||||||||||||||||||||||||||||||
Contribution of interest-free funds |
.46 | .28 | .42 | .27 | ||||||||||||||||||||||||||||||||||||
Net interest margin |
3.76 | % | 3.85 | % | 3.79 | % | 3.90 | % | ||||||||||||||||||||||||||||||||
###