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mtb-8k_20190718.htm

UNITED STATES

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

Date of Report (Date of earliest event reported): July 18, 2019

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) 635-4000

(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 Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Common Stock, $.50 par value	MTB	New York Stock Exchange
6.375% Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share	MTBPr	New York Stock Exchange
6.375% Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share	MTBPrC	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.Results of Operations and Financial Condition.

On July 18, 2019, M&T Bank Corporation announced its results of operations for the quarter ended June 30, 2019. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99.1 hereto.

The information in this Form 8-K, including Exhibit 99.1 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.

(d) Exhibits.

Exhibit

No.

Exhibit Description

99.1

News Release dated July 18, 2019.

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: July 18, 2019	By:	/s/ Darren J. King
		Darren J. King
		Executive Vice President and Chief Financial Officer

mtb-ex991_6.htm

Exhibit 99.1

INVESTOR CONTACT:

Donald J. MacLeod

FOR IMMEDIATE RELEASE:

(716) 842-5138

July 18, 2019

MEDIA CONTACT:

C. Michael Zabel

(716) 842-5385

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

BUFFALO, NEW YORK -- M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2019.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) were $3.34 in the second quarter of 2019, up 2% from $3.26 in the year-earlier quarter. GAAP-basis net income in the recent quarter was $473 million, compared with $493 million in the second quarter of 2018. GAAP-basis diluted earnings per common share and net income for the initial 2019 quarter were $3.35 and $483 million, respectively. GAAP-basis net income for the second quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.60% and 12.68%, respectively, compared with 1.70% and 13.32%, respectively, in the similar 2018 quarter and 1.68% and 13.14%, respectively, in the first quarter of 2019.

In July 2019, M&T agreed to sell its interest in an asset manager obtained in the 2011 acquisition of Wilmington Trust Corporation that is accounted for using the equity method of accounting and, as a result, as of June 30, 2019 recorded a $48 million charge (reflected in “other costs of operations”) to reduce the carrying value of the investment to its estimated net realizable value. The after-tax impact of the charge was a reduction in net income of $36 million, or $.27 of diluted earnings per common share.

Commenting on M&T’s second quarter results, Darren J. King, Executive Vice President and Chief Financial Officer, noted, “Financial results for the second quarter reflect healthy growth in mortgage banking revenues and trust income over 2019’s initial quarter. Overall credit quality remains solid, with credit costs in the recent quarter at a level consistent with what we have experienced over the last several years. During the quarter, M&T continued to return capital to our common shareholders through $402 million of stock repurchases and $135 million of dividends while maintaining strong regulatory capital levels.”

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M&T BANK CORPORATION

Earnings Highlights

										Change 2Q19 vs.
($ in millions, except per share data)	2Q19			2Q18			1Q19			2Q18			1Q19

Net income	$	473		$	493		$	483			-4	%		-2	%
Net income available to common shareholders ̶ diluted	$	453		$	473		$	462			-4	%		-2	%
Diluted earnings per common share	$	3.34		$	3.26		$	3.35			2	%		—
Annualized return on average assets		1.60	%		1.70	%		1.68	%
Annualized return on average common equity		12.68	%		13.32	%		13.14	%

For the six-month period ended June 30, 2019, diluted earnings per common share were $6.69, up 22% from $5.48 in the year-earlier period. GAAP-basis net income for the first six months of 2019 totaled $956 million, 13% higher than $846 million in the corresponding 2018 period. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income in the six-month period ended June 30, 2019 was 1.64% and 12.91%, respectively, improved from 1.46% and 11.21%, respectively, in the similar 2018 period.

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

Diluted net operating earnings per common share were $3.37 in the recent quarter, compared with $3.29 in the second quarter of 2018 and $3.38 in the first quarter of 2019. Net operating income for the second quarter of 2019 was $477 million, compared with $498 million in the year-earlier period and $486 million in 2019’s initial quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.68% and 18.83%, respectively, compared with 1.79% and 19.91%, respectively, in the similar 2018 quarter and 1.76% and 19.56%, respectively, in the first quarter of 2019.

Diluted net operating earnings per common share in the first six months of 2019 rose 22% to $6.74 from $5.54 in the first half of 2018. Net operating income during the six-month period ended June 30, 2019 was $963 million, up 13% from $855 million in the year-earlier period. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.72% and 19.19%, respectively, in the first half of 2019, compared with 1.53% and 16.65%, respectively, in the first six months of 2018.

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M&T BANK CORPORATION

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $1.05 billion in 2019’s second quarter, up 3% from $1.01 billion in the year-earlier quarter. That increase resulted predominantly from a widening of the net interest margin in the recent quarter to 3.91% from 3.83% in the second quarter of 2018. Also contributing to the higher net interest income was growth in average earning assets, which rose to $107.5 billion in the second quarter of 2019 from $106.2 billion in the year-earlier quarter. Taxable-equivalent net interest income in the recent quarter was little changed from $1.06 billion in the first quarter of 2019 when the net interest margin was 4.04% and average earning assets were $106.1 billion.


Taxable-equivalent Net Interest Income

										Change 2Q19 vs.
($ in millions)	2Q19			2Q18			1Q19			2Q18			1Q19

Average earning assets	$	107,511		$	106,210		$	106,096			1	%		1	%
Net interest income ̶ taxable-equivalent	$	1,047		$	1,014		$	1,056			3	%		-1	%
Net interest margin		3.91	%		3.83	%		4.04	%

Provision for Credit Losses/Asset Quality. The provision for credit losses was $55 million in the second quarter of 2019, compared with $35 million in the year-earlier quarter and $22 million in 2019’s first quarter. Net loan charge-offs were $44 million during the recent quarter, compared with $35 million in the second quarter of 2018 and $22 million in the first quarter of 2019. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .16% in the second quarters of 2019 and 2018, respectively, and .10% in the first quarter of 2019.

Loans classified as nonaccrual totaled $865 million or .96% of total loans outstanding at June 30, 2019, compared with $820 million or .93% a year earlier and $882 million or .99% at March 31, 2019. Assets taken in foreclosure of defaulted loans were $73 million at June 30, 2019, compared with $98 million and $81 million at June 30, 2018 and March 31, 2019, respectively.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. As a result of those analyses, the allowance for credit losses totaled $1.03 billion at June 30, 2019, compared with $1.02 billion at each of June 30, 2018 and March 31, 2019. As a percentage of loans outstanding, the allowance was 1.15% at each of June 30, 2019 and March 31, 2019 and 1.16% at June 30, 2018.

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M&T BANK CORPORATION

Asset Quality Metrics

										Change 2Q19 vs.
($ in millions)	2Q19			2Q18			1Q19			2Q18			1Q19

At end of quarter
Nonaccrual loans	$	865		$	820		$	882			6	%		-2	%
Real estate and other foreclosed assets	$	73		$	98		$	81			-26	%		-10	%
Total nonperforming assets	$	938		$	918		$	963			2	%		-3	%
Accruing loans past due 90 days or more (1)	$	349		$	223		$	244			56	%		43	%
Nonaccrual loans as % of loans outstanding		.96	%		.93	%		.99	%

Allowance for credit losses	$	1,030		$	1,019		$	1,019			1	%		1	%
Allowance for credit losses as % of loans outstanding		1.15	%		1.16	%		1.15	%

For the period
Provision for credit losses	$	55		$	35		$	22			57	%		150	%
Net charge-offs	$	44		$	35		$	22			26	%		101	%
Net charge-offs as % of average loans (annualized)		.20	%		.16	%		.10	%

(1)	Excludes loans acquired at a discount. Predominantly residential real estate loans.

Noninterest Income and Expense. Noninterest income totaled $512 million in the recent quarter, up 12% from $457 million in the year-earlier quarter and 2% higher than $501 million in the first quarter of 2019. The recent quarter’s improvement as compared with the second quarter of 2018 and the first quarter of 2019 reflects higher mortgage banking revenues, trading account and foreign exchange gains, and trust income. The initial 2019 quarter included $37 million of income from Bayview Lending Group LLC.

Noninterest Income

							Change 2Q19 vs.
($ in millions)	2Q19		2Q18		1Q19		2Q18			1Q19

Mortgage banking revenues	$	107	$	92	$	95		16	%		13	%
Service charges on deposit accounts		108		107		103		1	%		5	%
Trust income		145		138		133		5	%		9	%
Brokerage services income		12		13		12		-1	%	—
Trading account and foreign exchange gains		18		5		11		251	%		71	%
Gain on bank investment securities		9		2		12		283	%		-25	%
Other revenues from operations		113		100		135		12	%		-16	%
Total	$	512	$	457	$	501		12	%		2	%

Noninterest expense aggregated $873 million in the second quarter of 2019, $777 million in the year-earlier quarter and $894 million in the first quarter of 2019. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $868 million in the recent quarter, $770 million in the second quarter of 2018 and $889 million in the initial 2019 quarter. The most significant factors contributing to the higher level of noninterest expenses in the recent quarter as compared with the second quarter of 2018 were the $48 million charge associated with an equity investment in an asset manager recorded in the recent quarter, increased costs for salaries and employee benefits, and a $9 million valuation allowance associated with the impact of lower interest rates on mortgage

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M&T BANK CORPORATION

servicing rights. The higher noninterest operating expenses in the initial 2019 quarter reflected a $50 million increase in the accrual for legal matters and seasonally higher stock-based compensation and employee benefits expenses, partially offset by recent quarter charges associated with the asset manager investment, professional services and mortgage servicing rights.

Noninterest Expense

							Change 2Q19 vs.
($ in millions)	2Q19		2Q18		1Q19		2Q18			1Q19

Salaries and employee benefits	$	456	$	419	$	499		9	%		-9	%
Equipment and net occupancy		79		73		79		8	%		—
Outside data processing and software		55		49		52		11	%		5	%
FDIC assessments		10		20		10		-50	%		4	%
Advertising and marketing		24		22		20		10	%		19	%
Printing, postage and supplies		10		9		10		18	%		5	%
Amortization of core deposit and other intangible assets		5		6		5		-21	%		1	%
Other costs of operations		234		179		219		31	%		7	%
Total	$	873	$	777	$	894		12	%		-2	%

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 56.0% in the second quarter of 2019, 52.4% in the year-earlier quarter and 57.6% in the first quarter of 2019.

Balance Sheet. M&T had total assets of $121.6 billion at June 30, 2019, compared with $118.4 billion and $120.0 billion at June 30, 2018 and March 31, 2019, respectively. Loans and leases, net of unearned discount, were $89.9 billion at the recent quarter-end, $87.8 billion at June 30, 2018 and $88.6 billion at March 31, 2019. Total deposits were $91.7 billion at June 30, 2019, compared with $89.3 billion a year earlier and $90.5 billion at March 31, 2019.

Total shareholders' equity was $15.7 billion at June 30, 2019 and $15.6 billion at June 30, 2018, representing 12.91% and 13.15%, respectively, of total assets. Total shareholders’ equity was $15.6 billion, or 12.99% of total assets at March 31, 2019. Common shareholders' equity was $14.5 billion, or $107.73 per share, at June 30, 2019, compared with $14.3 billion, or $99.43 per share, a year-earlier and $14.4 billion, or $105.04 per share, at March 31, 2019. Tangible equity per common share was $73.29 at June 30, 2019, compared with $67.29 at June 30, 2018 and $71.19 at March 31, 2019. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity
Tier 1 to risk-weighted assets under regulatory capital rules was approximately 9.84% at June 30, 2019.

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M&T BANK CORPORATION

In accordance with its capital plan, M&T repurchased 2,450,000 shares of its common stock during the recent quarter at an average cost per share of $164.08, for a total cost of $402 million. In the aggregate, during the first six months of 2019, M&T repurchased 4,600,000 shares of common stock at a total cost of $768 million.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss second 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 the conference ID #1491035. 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 Thursday, July 25, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #1491035. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

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

Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or 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

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M&T BANK CORPORATION

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.

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M&T BANK CORPORATION

Financial Highlights

	Three months ended									Six months ended
	June 30									June 30
Amounts in thousands, except per share	2019			2018			Change			2019			2018			Change
Performance
Net income	$	473,260			493,160			-4	%	$	956,002			845,770			13	%
Net income available to common shareholders		452,633			472,600			-4	%		914,719			805,342			14	%
Per common share:
Basic earnings	$	3.34			3.26			2	%	$	6.69			5.49			22	%
Diluted earnings		3.34			3.26			2	%		6.69			5.48			22	%
Cash dividends	$	1.00			.80			25	%	$	2.00			1.55			29	%
Common shares outstanding:
Average - diluted (1)		135,464			144,998			-7	%		136,685			146,941			-7	%
Period end (2)		134,200			144,261			-7	%		134,200			144,261			-7	%
Return on (annualized):
Average total assets		1.60	%		1.70	%					1.64	%		1.46	%
Average common shareholders' equity		12.68	%		13.32	%					12.91	%		11.21	%
Taxable-equivalent net interest income	$	1,047,406			1,014,184			3	%	$	2,103,433			1,994,510			5	%
Yield on average earning assets		4.64	%		4.28	%					4.68	%		4.20	%
Cost of interest-bearing liabilities		1.11	%		.71	%					1.08	%		.68	%
Net interest spread		3.53	%		3.57	%					3.60	%		3.52	%
Contribution of interest-free funds		.38	%		.26	%					.37	%		.25	%
Net interest margin		3.91	%		3.83	%					3.97	%		3.77	%
Net charge-offs to average total net loans (annualized)		.20	%		.16	%					.15	%		.17	%
Net operating results (3)
Net operating income	$	477,001			497,869			-4	%	$	963,441			855,367			13	%
Diluted net operating earnings per common share		3.37			3.29			2	%		6.74			5.54			22	%
Return on (annualized):
Average tangible assets		1.68	%		1.79	%					1.72	%		1.53	%
Average tangible common equity		18.83	%		19.91	%					19.19	%		16.65	%
Efficiency ratio		55.98	%		52.42	%					56.77	%		58.16	%

	At June 30
Loan quality	2019			2018			Change
Nonaccrual loans	$	865,384			819,984			6	%
Real estate and other foreclosed assets		72,907			98,062			-26	%
Total nonperforming assets	$	938,291			918,046			2	%
Accruing loans past due 90 days or more (4)	$	348,725			223,026			56	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	36,765			34,870			5	%
Accruing loans past due 90 days or more		320,305			202,394			58	%
Renegotiated loans	$	254,332			242,528			5	%
Accruing loans acquired at a discount past due 90 days or more (5)	$	43,079			47,405			-9	%
Purchased impaired loans (6):
Outstanding customer balance	$	473,834			606,683			-22	%
Carrying amount		263,025			352,465			-25	%
Nonaccrual loans to total net loans		.96	%		.93	%
Allowance for credit losses to total loans		1.15	%		1.16	%

(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 on page 15.

(4)	Excludes loans acquired at a discount. Predominantly residential real estate loans.

(5)	Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6)	Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

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M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

	Three months ended
	June 30,			March 31,			December 31,			September 30,			June 30,
Amounts in thousands, except per share	2019			2019			2018			2018			2018
Performance
Net income	$	473,260			482,742			546,219			526,091			493,160
Net income available to common shareholders		452,633			462,086			525,328			505,365			472,600
Per common share:
Basic earnings	$	3.34			3.35			3.76			3.54			3.26
Diluted earnings		3.34			3.35			3.76			3.53			3.26
Cash dividends	$	1.00			1.00			1.00			1.00			.80
Common shares outstanding:
Average - diluted (1)		135,464			137,920			139,838			142,976			144,998
Period end (2)		134,200			136,637			138,534			141,479			144,261
Return on (annualized):
Average total assets		1.60	%		1.68	%		1.84	%		1.80	%		1.70	%
Average common shareholders' equity		12.68	%		13.14	%		14.80	%		14.08	%		13.32	%
Taxable-equivalent net interest income	$	1,047,406			1,056,027			1,064,918			1,034,771			1,014,184
Yield on average earning assets		4.64	%		4.71	%		4.51	%		4.40	%		4.28	%
Cost of interest-bearing liabilities		1.11	%		1.04	%		.94	%		.82	%		.71	%
Net interest spread		3.53	%		3.67	%		3.57	%		3.58	%		3.57	%
Contribution of interest-free funds		.38	%		.37	%		.35	%		.30	%		.26	%
Net interest margin		3.91	%		4.04	%		3.92	%		3.88	%		3.83	%
Net charge-offs to average total net loans (annualized)		.20	%		.10	%		.17	%		.07	%		.16	%
Net operating results (3)
Net operating income	$	477,001			486,440			550,169			530,619			497,869
Diluted net operating earnings per common share		3.37			3.38			3.79			3.56			3.29
Return on (annualized):
Average tangible assets		1.68	%		1.76	%		1.93	%		1.89	%		1.79	%
Average tangible common equity		18.83	%		19.56	%		22.16	%		21.00	%		19.91	%
Efficiency ratio		55.98	%		57.56	%		51.70	%		51.41	%		52.42	%

	June 30,			March 31,			December 31,			September 30,			June 30,
Loan quality	2019			2019			2018			2018			2018
Nonaccrual loans	$	865,384			881,611			893,608			870,832			819,984
Real estate and other foreclosed assets		72,907			81,335			78,375			87,333			98,062
Total nonperforming assets	$	938,291			962,946			971,983			958,165			918,046
Accruing loans past due 90 days or more (4)	$	348,725			244,257			222,527			254,360			223,026
Government guaranteed loans included in totals above:
Nonaccrual loans	$	36,765			35,481			34,667			33,570			34,870
Accruing loans past due 90 days or more		320,305			194,510			192,443			195,450			202,394
Renegotiated loans	$	254,332			267,952			245,367			242,892			242,528
Accruing loans acquired at a discount past due 90 days or more (5)	$	43,079			43,995			39,750			44,223			47,405
Purchased impaired loans (6):
Outstanding customer balance	$	473,834			495,163			529,520			572,979			606,683
Carrying amount		263,025			278,783			303,305			325,980			352,465
Nonaccrual loans to total net loans		.96	%		.99	%		1.01	%		1.00	%		.93	%
Allowance for credit losses to total loans		1.15	%		1.15	%		1.15	%		1.18	%		1.16	%

(1)	Includes common stock equivalents.

(2)	Includes common stock issuable under deferred compensation plans.

(3)

(4)	Excludes loans acquired at a discount. Predominantly residential real estate loans.

(5)	Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6)	Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

10-10-10-10-10

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

	Three months ended							Six months ended
	June 30							June 30
Dollars in thousands	2019		2018		Change			2019		2018			Change
Interest income	$	1,237,913		1,128,905		10	%	$	2,464,222		2,211,055			11	%
Interest expense		196,432		120,118		64			372,681		226,751			64
Net interest income		1,041,481		1,008,787		3			2,091,541		1,984,304			5
Provision for credit losses		55,000		35,000		57			77,000		78,000			-1
Net interest income after provision for credit losses		986,481		973,787		1			2,014,541		1,906,304			6
Other income
Mortgage banking revenues		107,321		92,499		16			202,632		179,805			13
Service charges on deposit accounts		107,787		106,784		1			210,899		211,899			—
Trust income		144,382		137,641		5			277,168		269,016			3
Brokerage services income		12,478		12,629		-1			24,954		26,021			-4
Trading account and foreign exchange gains		18,453		5,255		251			29,255		9,892			196
Gain (loss) on bank investment securities		8,911		2,326		283			20,752		(7,105	)		—
Other revenues from operations		112,763		100,280		12			247,200		226,582			9
Total other income		512,095		457,414		12			1,012,860		916,110			11
Other expense
Salaries and employee benefits		455,737		418,537		9			954,937		881,965			8
Equipment and net occupancy		79,150		73,031		8			158,497		147,828			7
Outside data processing and software		55,234		49,712		11			107,651		98,141			10
FDIC assessments		9,772		19,560		-50			19,198		39,840			-52
Advertising and marketing		24,046		21,768		10			44,321		38,016			17
Printing, postage and supplies		10,324		8,719		18			20,179		18,038			12
Amortization of core deposit and other intangible assets		5,077		6,388		-21			10,097		13,020			-22
Other costs of operations		233,692		178,862		31			452,500		473,073			-4
Total other expense		873,032		776,577		12			1,767,380		1,709,921			3
Income before income taxes		625,544		654,624		-4			1,260,021		1,112,493			13
Applicable income taxes		152,284		161,464		-6			304,019		266,723			14
Net income	$	473,260		493,160		-4	%	$	956,002		845,770			13	%

11-11-11-11-11

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	June 30,		March 31,		December 31,		September 30,			June 30,
Dollars in thousands	2019		2019		2018		2018			2018
Interest income	$	1,237,913		1,226,309		1,220,281		1,167,375			1,128,905
Interest expense		196,432		176,249		161,321		138,337			120,118
Net interest income		1,041,481		1,050,060		1,058,960		1,029,038			1,008,787
Provision for credit losses		55,000		22,000		38,000		16,000			35,000
Net interest income after provision for credit losses		986,481		1,028,060		1,020,960		1,013,038			973,787
Other income
Mortgage banking revenues		107,321		95,311		92,229		88,408			92,499
Service charges on deposit accounts		107,787		103,112		108,791		108,647			106,784
Trust income		144,382		132,786		135,024		133,545			137,641
Brokerage services income		12,478		12,476		12,781		12,267			12,629
Trading account and foreign exchange gains		18,453		10,802		16,582		6,073			5,255
Gain (loss) on bank investment securities		8,911		11,841		4,219		(3,415	)		2,326
Other revenues from operations		112,763		134,437		110,970		113,769			100,280
Total other income		512,095		500,765		480,596		459,294			457,414
Other expense
Salaries and employee benefits		455,737		499,200		438,928		431,371			418,537
Equipment and net occupancy		79,150		79,347		73,519		77,481			73,031
Outside data processing and software		55,234		52,417		50,206		50,678			49,712
FDIC assessments		9,772		9,426		9,837		18,849			19,560
Advertising and marketing		24,046		20,275		25,910		21,784			21,768
Printing, postage and supplies		10,324		9,855		8,777		8,843			8,719
Amortization of core deposit and other intangible assets		5,077		5,020		5,359		6,143			6,388
Other costs of operations		233,692		218,808		189,626		160,830			178,862
Total other expense		873,032		894,348		802,162		775,979			776,577
Income before income taxes		625,544		634,477		699,394		696,353			654,624
Applicable income taxes		152,284		151,735		153,175		170,262			161,464
Net income	$	473,260		482,742		546,219		526,091			493,160

12-12-12-12-12

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

	June 30
Dollars in thousands	2019		2018		Change
ASSETS
Cash and due from banks	$	1,271,611		1,367,594		-7	%
Interest-bearing deposits at banks		8,791,753		6,669,985		32
Federal funds sold		—		1,500		—
Trading account		479,403		148,303		223
Investment securities		11,580,249		13,283,002		-13
Loans and leases:
Commercial, financial, etc.		23,431,408		21,894,857		7
Real estate - commercial		35,194,375		34,137,937		3
Real estate - consumer		16,693,737		18,310,712		-9
Consumer		14,558,538		13,453,944		8
Total loans and leases, net of unearned discount		89,878,058		87,797,450		2
Less: allowance for credit losses		1,029,867		1,019,248		1
Net loans and leases		88,848,191		86,778,202		2
Goodwill		4,593,112		4,593,112		—
Core deposit and other intangible assets		38,428		58,569		-34
Other assets		5,952,148		5,525,786		8
Total assets	$	121,554,895		118,426,053		3	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	30,747,946		32,086,191		-4	%
Interest-bearing deposits		59,568,223		56,924,970		5
Deposits at Cayman Islands office		1,364,855		261,427		422
Total deposits		91,681,024		89,272,588		3
Short-term borrowings		4,611,390		3,239,416		42
Accrued interest and other liabilities		1,915,147		1,953,848		-2
Long-term borrowings		7,655,507		8,382,316		-9
Total liabilities		105,863,068		102,848,168		3
Shareholders' equity:
Preferred		1,231,500		1,231,500		—
Common		14,460,327		14,346,385		1
Total shareholders' equity		15,691,827		15,577,885		1
Total liabilities and shareholders' equity	$	121,554,895		118,426,053		3	%

13-13-13-13-13

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend


	June 30,		March 31,		December 31,		September 30,		June 30,
Dollars in thousands	2019		2019		2018		2018		2018
ASSETS
Cash and due from banks	$	1,271,611		1,267,260		1,605,439		1,311,611		1,367,594
Interest-bearing deposits at banks		8,791,753		7,602,897		8,105,197		6,523,746		6,669,985
Federal funds sold		—		—		—		—		1,500
Trading account		479,403		276,322		185,584		125,038		148,303
Investment securities		11,580,249		12,536,840		12,692,813		13,073,881		13,283,002
Loans and leases:
Commercial, financial, etc.		23,431,408		23,090,204		22,977,976		21,635,394		21,894,857
Real estate - commercial		35,194,375		34,690,930		34,363,556		33,518,375		34,137,937
Real estate - consumer		16,693,737		16,769,933		17,154,446		17,721,399		18,310,712
Consumer		14,558,538		14,088,816		13,970,499		13,805,317		13,453,944
Total loans and leases, net of unearned discount		89,878,058		88,639,883		88,466,477		86,680,485		87,797,450
Less: allowance for credit losses		1,029,867		1,019,337		1,019,444		1,019,488		1,019,248
Net loans and leases		88,848,191		87,620,546		87,447,033		85,660,997		86,778,202
Goodwill		4,593,112		4,593,112		4,593,112		4,593,112		4,593,112
Core deposit and other intangible assets		38,428		43,947		47,067		52,426		58,569
Other assets		5,952,148		6,084,281		5,421,158		5,486,826		5,525,786
Total assets	$	121,554,895		120,025,205		120,097,403		116,827,637		118,426,053

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	30,747,946		29,966,753		32,256,668		31,773,560		32,086,191
Interest-bearing deposits		59,568,223		59,433,806		57,087,998		56,919,549		56,924,970
Deposits at Cayman Islands office		1,364,855		1,069,191		811,906		447,287		261,427
Total deposits		91,681,024		90,469,750		90,156,572		89,140,396		89,272,588
Short-term borrowings		4,611,390		3,602,566		4,398,378		1,310,110		3,239,416
Accrued interest and other liabilities		1,915,147		1,889,336		1,637,348		1,800,778		1,953,848
Long-term borrowings		7,655,507		8,476,024		8,444,914		9,140,268		8,382,316
Total liabilities		105,863,068		104,437,676		104,637,212		101,391,552		102,848,168
Shareholders' equity:
Preferred		1,231,500		1,231,500		1,231,500		1,231,500		1,231,500
Common		14,460,327		14,356,029		14,228,691		14,204,585		14,346,385
Total shareholders' equity		15,691,827		15,587,529		15,460,191		15,436,085		15,577,885
Total liabilities and shareholders' equity	$	121,554,895		120,025,205		120,097,403		116,827,637		118,426,053

14-14-14-14-14

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

	Three months ended															Change in balance						Six months ended
	June 30,					June 30,					March 31,					June 30, 2019 from						June 30,										Change
Dollars in millions	2019					2018					2019					June 30,			March 31,			2019					2018					in
	Balance		Rate			Balance		Rate			Balance		Rate			2018			2019			Balance		Rate			Balance		Rate			balance
ASSETS
Interest-bearing deposits at banks	$	6,122		2.38	%		4,890		1.79	%		4,605	2.41		%		25	%		33	%	$	5,368		2.39	%		4,916		1.66	%		9	%
Federal funds sold		1		2.83			1		2.23			—		—			—			—			1		2.83			2		1.91			-69
Trading account		68		2.20			57		2.92			65	3.40				19			4			66		2.79			55		2.96			20
Investment securities		12,170		2.49			13,856		2.38			12,949	2.52				-12			-6			12,557		2.51			14,164		2.35			-11
Loans and leases, net of unearned discount
Commercial, financial, etc.		23,335		4.97			21,709		4.49			23,010	5.07				7			1			23,173		5.02			21,628		4.39			7
Real estate - commercial		34,768		5.30			33,687		4.95			34,524	5.34				3			1			34,647		5.32			33,670		4.84			3
Real estate - consumer		16,723		4.29			18,644		4.15			16,939	4.37				-10			-1			16,830		4.33			18,957		4.11			-11
Consumer		14,324		5.53			13,366		5.14			14,004	5.51				7			2			14,165		5.52			13,330		5.07			6
Total loans and leases, net		89,150		5.09			87,406		4.73			88,477	5.15				2			1			88,815		5.12			87,585		4.64			1
Total earning assets		107,511		4.64			106,210		4.28			106,096	4.71				1			1			106,807		4.68			106,722		4.20			—
Goodwill		4,593					4,593					4,593					—			—			4,593					4,593					—
Core deposit and other intangible assets		41					62					45					-33			-8			43					65					-34
Other assets		6,342					5,548					6,105					14			4			6,224					5,641					10
Total assets	$	118,487					116,413					116,839					2	%		1	%	$	117,667					117,021					1	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking deposits	$	53,495		.69			52,547		.37			52,095		.59			2	%		3	%	$	52,799		.64			52,526		.34			1	%
Time deposits		6,530		1.53			5,997		.76			6,351		1.35			9			3			6,441		1.44			6,158		.73			5
Deposits at Cayman Islands office		1,247		1.94			225		.97			972		1.98			454			28			1,110		1.96			236		.79			370
Total interest-bearing deposits		61,272		.80			58,769		.41			59,418		.70			4			3			60,350		.75			58,920		.38			2
Short-term borrowings		1,263		2.51			353		1.57			1,091		2.49			257			16			1,177		2.50			317		1.44			272
Long-term borrowings		8,278		3.20			8,480		2.75			8,494		3.23			-2			-3			8,386		3.21			8,543		2.64			-2
Total interest-bearing liabilities		70,813		1.11			67,602		.71			69,003		1.04			5			3			69,913		1.08			67,780		.68			3
Noninterest-bearing deposits		30,099					31,426					30,315					-4			-1			30,207					31,734					-5
Other liabilities		1,945					1,852					1,952					5			—			1,948					1,713					14
Total liabilities		102,857					100,880					101,270					2			2			102,068					101,227					1
Shareholders' equity		15,630					15,533					15,569					1			—			15,599					15,794					-1
Total liabilities and shareholders' equity	$	118,487					116,413					116,839					2	%		1	%	$	117,667					117,021					1	%

Net interest spread				3.53					3.57					3.67											3.60					3.52
Contribution of interest-free funds				.38					.26					.37											.37					.25
Net interest margin				3.91	%				3.83	%				4.04	%										3.97	%				3.77	%

15-15-15-15-15

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

	Three months ended						Six months ended
	June 30						June 30
	2019			2018			2019			2018
Income statement data
In thousands, except per share
Net income
Net income	$	473,260			493,160			956,002			845,770
Amortization of core deposit and other intangible assets (1)		3,741			4,709			7,439			9,597
Net operating income	$	477,001			497,869			963,441			855,367

Earnings per common share
Diluted earnings per common share	$	3.34			3.26			6.69			5.48
Amortization of core deposit and other intangible assets (1)		.03			.03			.05			.06
Diluted net operating earnings per common share	$	3.37			3.29			6.74			5.54

Other expense
Other expense	$	873,032			776,577			1,767,380			1,709,921
Amortization of core deposit and other intangible assets		(5,077	)		(6,388	)		(10,097	)		(13,020	)
Noninterest operating expense	$	867,955			770,189			1,757,283			1,696,901
Efficiency ratio
Noninterest operating expense (numerator)	$	867,955			770,189			1,757,283			1,696,901
Taxable-equivalent net interest income		1,047,406			1,014,184			2,103,433			1,994,510
Other income		512,095			457,414			1,012,860			916,110
Less: Gain (loss) on bank investment securities		8,911			2,326			20,752			(7,105	)
Denominator	$	1,550,590			1,469,272			3,095,541			2,917,725
Efficiency ratio		55.98	%		52.42	%		56.77	%		58.16	%
Balance sheet data
In millions
Average assets
Average assets	$	118,487			116,413			117,667			117,021
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(41	)		(62	)		(43	)		(65	)
Deferred taxes		11			17			11			17
Average tangible assets	$	113,864			111,775			113,042			112,380
Average common equity
Average total equity	$	15,630			15,533			15,599			15,794
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,232	)
Average common equity		14,398			14,301			14,367			14,562
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(41	)		(62	)		(43	)		(65	)
Deferred taxes		11			17			11			17
Average tangible common equity	$	9,775			9,663			9,742			9,921
At end of quarter
Total assets
Total assets	$	121,555			118,426
Goodwill		(4,593	)		(4,593	)
Core deposit and other intangible assets		(38	)		(59	)
Deferred taxes		10			16
Total tangible assets	$	116,934			113,790
Total common equity
Total equity	$	15,692			15,578
Preferred stock		(1,232	)		(1,232	)
Undeclared dividends - cumulative preferred stock		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		14,457			14,343
Goodwill		(4,593	)		(4,593	)
Core deposit and other intangible assets		(38	)		(59	)
Deferred taxes		10			16
Total tangible common equity	$	9,836			9,707

(1)	After any related tax effect.

16-16-16-16-16

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

	Three months ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2019			2019			2018			2018			2018
Income statement data
In thousands, except per share
Net income
Net income	$	473,260			482,742			546,219			526,091			493,160
Amortization of core deposit and other intangible assets (1)		3,741			3,698			3,950			4,528			4,709
Net operating income	$	477,001			486,440			550,169			530,619			497,869

Earnings per common share
Diluted earnings per common share	$	3.34			3.35			3.76			3.53			3.26
Amortization of core deposit and other intangible assets (1)		.03			.03			.03			.03			.03
Diluted net operating earnings per common share	$	3.37			3.38			3.79			3.56			3.29

Other expense
Other expense	$	873,032			894,348			802,162			775,979			776,577
Amortization of core deposit and other intangible assets		(5,077	)		(5,020	)		(5,359	)		(6,143	)		(6,388	)
Noninterest operating expense	$	867,955			889,328			796,803			769,836			770,189
Efficiency ratio
Noninterest operating expense (numerator)	$	867,955			889,328			796,803			769,836			770,189
Taxable-equivalent net interest income		1,047,406			1,056,027			1,064,918			1,034,771			1,014,184
Other income		512,095			500,765			480,596			459,294			457,414
Less: Gain (loss) on bank investment securities		8,911			11,841			4,219			(3,415	)		2,326
Denominator	$	1,550,590			1,544,951			1,541,295			1,497,480			1,469,272
Efficiency ratio		55.98	%		57.56	%		51.70	%		51.41	%		52.42	%
Balance sheet data
In millions
Average assets
Average assets	$	118,487			116,839			117,799			115,997			116,413
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(41	)		(45	)		(50	)		(55	)		(62	)
Deferred taxes		11			12			13			14			17
Average tangible assets	$	113,864			112,213			113,169			111,363			111,775
Average common equity
Average total equity	$	15,630			15,569			15,389			15,549			15,533
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)
Average common equity		14,398			14,337			14,157			14,317			14,301
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(41	)		(45	)		(50	)		(55	)		(62	)
Deferred taxes		11			12			13			14			17
Average tangible common equity	$	9,775			9,711			9,527			9,683			9,663
At end of quarter
Total assets
Total assets	$	121,555			120,025			120,097			116,828			118,426
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(38	)		(44	)		(47	)		(52	)		(59	)
Deferred taxes		10			12			13			14			16
Total tangible assets	$	116,934			115,400			115,470			112,197			113,790
Total common equity
Total equity	$	15,692			15,588			15,460			15,436			15,578
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)
Undeclared dividends - cumulative preferred stock		(3	)		(3	)		(3	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		14,457			14,353			14,225			14,201			14,343
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(38	)		(44	)		(47	)		(52	)		(59	)
Deferred taxes		10			12			13			14			16
Total tangible common equity	$	9,836			9,728			9,598			9,570			9,707

(1)	After any related tax effect.