mtb-8k_20191017.htm
false 0000036270 0000036270 2019-10-17 2019-10-17

 

 

 

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): October 17, 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

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 October 17, 2019, M&T Bank Corporation announced its results of operations for the quarter ended September 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 October 17, 2019.

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

2


 

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 17, 2019

 

By:

 

/s/ Darren J. King

 

 

 

 

Darren J. King

 

 

 

 

Executive Vice President and Chief Financial Officer

 

3

mtb-ex991_6.htm

 

 

 

Exhibit 99.1

 

 

 

INVESTOR CONTACT:

 

Donald J. MacLeod

 

FOR IMMEDIATE RELEASE:

 

 

(716) 842-5138

 

October 17, 2019

 

 

 

 

 

MEDIA CONTACT:

 

C. Michael Zabel

 

 

 

 

(716) 842-5385

 

 

 

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, 2019.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) were $3.47 in the third quarter of 2019, compared with $3.53 in the year-earlier quarter. GAAP-basis net income in the recent quarter was $480 million, compared with $526 million in the third quarter of 2018. GAAP-basis diluted earnings per common share and net income for the second quarter of 2019 were $3.34 and $473 million, respectively. GAAP-basis net income for the third quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.58% and 12.73%, respectively, compared with 1.80% and 14.08%, respectively, in the corresponding 2018 quarter and 1.60% and 12.68%, respectively, in the second quarter of 2019. For the nine-month period ended September 30, 2019, diluted earnings per common share were $10.16, up 13% from $9.00 in the similar 2018 period. GAAP-basis net income for the first nine months of 2019 totaled $1.44 billion, 5% higher than $1.37 million in the year-earlier period. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income in the nine-month period ended September 30, 2019 was 1.62% and 12.85%, respectively, improved from 1.57% and 12.16%, respectively, in the corresponding 2018 period.

Commenting on M&T’s third quarter results, Darren J. King, Executive Vice President and Chief Financial Officer, noted, “Overall, M&T’s results were in line with our expectations given the current interest rate and economic environment. During the recent quarter we realized increased total revenues, highlighted by 28% growth in our mortgage banking businesses. Higher operating expenses reflecting investments in mortgage banking and technology accompanied the revenue growth.”


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M&T BANK CORPORATION

 

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q19 vs.

 

($ in millions, except per share data)

 

3Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

480

 

 

$

526

 

 

$

473

 

 

 

-9

%

 

 

1

%

Net income available to common shareholders  ̶  diluted

 

$

461

 

 

$

505

 

 

$

453

 

 

 

-9

%

 

 

2

%

Diluted earnings per common share

 

$

3.47

 

 

$

3.53

 

 

$

3.34

 

 

 

-2

%

 

 

4

%

Annualized return on average assets

 

 

1.58

%

 

 

1.80

%

 

 

1.60

%

 

 

 

 

 

 

 

 

Annualized return on average common equity

 

 

12.73

%

 

 

14.08

%

 

 

12.68

%

 

 

 

 

 

 

 

 

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 $3.50 in the third quarter of 2019, compared with $3.56 in the year-earlier quarter and $3.37 in the second quarter of 2019.  Net operating income in the recent quarter was $484 million, compared with $531 million in 2018’s third quarter and $477 million in the second quarter of 2019. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.66% and 18.85%, respectively, compared with 1.89% and 21.00%, respectively, in the similar 2018 quarter and 1.68% and 18.83%, respectively, in 2019’s second quarter.

Diluted net operating earnings per common share in the first nine months of 2019 rose 13% to $10.24 from $9.10 in the corresponding period of 2018. Net operating income during the nine-month period ended September 30, 2019 was $1.45 billion, up 4% from $1.39 billion 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 1.70% and 19.07%, respectively, in the first nine months of 2019, compared with 1.65% and 18.09%, respectively, in the similar period of 2018.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $1.04 billion in the third quarter of 2019, little changed from the year-earlier quarter. The impact of higher average earning assets, which rose to $108.6 billion in the recent quarter from $105.8 billion in the year-earlier period, was offset by a 10 basis point narrowing of the net interest margin, to 3.78% in 2019’s third quarter from 3.88% in the third quarter of 2018. Taxable-equivalent net interest income in the recent quarter declined $12 million from $1.05 billion in the second quarter of 2019 due to a 13 basis point narrowing of the net interest margin that was largely offset by higher average earning assets.


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M&T BANK CORPORATION

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable-equivalent Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q19 vs.

 

($ in millions)

 

3Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

108,643

 

 

$

105,835

 

 

$

107,511

 

 

 

3

%

 

 

1

%

Net interest income  ̶  taxable-equivalent

 

$

1,035

 

 

$

1,035

 

 

$

1,047

 

 

 

 

 

 

-1

%

Net interest margin

 

 

3.78

%

 

 

3.88

%

 

 

3.91

%

 

 

 

 

 

 

 

 

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $45 million in the third quarter of 2019, compared with $16 million in the year-earlier quarter and $55 million in the second quarter of 2019. Net loan charge-offs were $36 million during the recent quarter, compared with $16 million in the third quarter of 2018 and $44 million in 2019’s second quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .16% and .07% in the third quarters of 2019 and 2018, respectively, and .20% in the second quarter of 2019.

Loans classified as nonaccrual totaled $1.01 billion or 1.12% of total loans outstanding at September 30, 2019, compared with $871 million or 1.00% a year earlier and $865 million or .96% at June 30, 2019. The higher balance at September 30, 2019 reflects the addition of a commercial loan for $119 million to a wholesale distributor. Assets taken in foreclosure of defaulted loans were $80 million at September 30, 2019, compared with $87 million and $73 million at September 30, 2018 and June 30, 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 increased to $1.04 billion or 1.16% of loans outstanding at September 30, 2019, compared with $1.02 billion or 1.18% at September 30, 2018 and $1.03 billion or 1.15% at June 30, 2019.

Asset Quality Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q19 vs.

 

($ in millions)

 

3Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At end of quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,005

 

 

$

871

 

 

$

865

 

 

 

15

%

 

 

16

%

Real estate and other foreclosed assets

 

$

80

 

 

$

87

 

 

$

73

 

 

 

-9

%

 

 

9

%

Total nonperforming assets

 

$

1,085

 

 

$

958

 

 

$

938

 

 

 

13

%

 

 

16

%

Accruing loans past due 90 days or more (1)

 

$

461

 

 

$

254

 

 

$

349

 

 

 

81

%

 

 

32

%

Nonaccrual loans as % of loans outstanding

 

 

1.12

%

 

 

1.00

%

 

 

.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

1,038

 

 

$

1,019

 

 

$

1,030

 

 

 

2

%

 

 

1

%

Allowance for credit losses as % of loans outstanding

 

 

1.16

%

 

 

1.18

%

 

 

1.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

$

45

 

 

$

16

 

 

$

55

 

 

 

181

%

 

 

-18

%

Net charge-offs

 

$

36

 

 

$

16

 

 

$

44

 

 

 

131

%

 

 

-18

%

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

 

 

.16

%

 

 

.07

%

 

 

.20

%

 

 

 

 

 

 

 

 

 

(1)

Excludes loans acquired at a discount.  Predominantly residential real estate loans.


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M&T BANK CORPORATION

 

Noninterest Income and Expense.  Noninterest income totaled $528 million in the third quarter of 2019, up 15% from $459 million in the year-earlier quarter and 3% higher than $512 million in the second quarter of 2019. The recent quarter’s improvement as compared with the earlier quarters was due to significantly higher residential and commercial mortgage banking revenues.

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q19 vs.

 

($ in millions)

 

3Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking revenues

 

$

137

 

 

$

88

 

 

$

107

 

 

 

55

%

 

 

28

%

Service charges on deposit accounts

 

 

111

 

 

 

109

 

 

 

108

 

 

 

2

%

 

 

3

%

Trust income

 

 

144

 

 

 

133

 

 

 

145

 

 

 

8

%

 

 

 

Brokerage services income

 

 

12

 

 

 

12

 

 

 

12

 

 

 

-2

%

 

 

-3

%

Trading account and foreign exchange gains

 

 

16

 

 

 

6

 

 

 

18

 

 

 

165

%

 

 

-13

%

Gain (loss) on bank investment securities

 

 

4

 

 

 

(3

)

 

 

9

 

 

 

 

 

 

-58

%

Other revenues from operations

 

 

104

 

 

 

114

 

 

 

113

 

 

 

-9

%

 

 

-8

%

Total

 

$

528

 

 

$

459

 

 

$

512

 

 

 

15

%

 

 

3

%

Noninterest expense aggregated $878 million in the recent quarter, $776 million in 2018’s third quarter and $873 million in the second 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 $873 million in the recent quarter, $770 million in the third quarter of 2018 and $868 million in the second quarter of 2019. Significant factors contributing to the higher level of noninterest expenses in the recent quarter were increased costs for salaries and employee benefits, professional services, and additions to the valuation allowance for capitalized mortgage servicing rights. Such additions were $14 million in the recent quarter and $9 million in the second quarter of 2019 and reflect the impact of lower interest rates on the valuation of servicing rights. M&T recognized a $48 million charge in the second quarter of 2019 associated with the sale of an equity investment in an asset manager.

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q19 vs.

 

($ in millions)

 

3Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

477

 

 

$

431

 

 

$

456

 

 

 

11

%

 

 

5

%

Equipment and net occupancy

 

 

83

 

 

 

77

 

 

 

79

 

 

 

7

%

 

 

4

%

Outside data processing and software

 

 

60

 

 

 

51

 

 

 

55

 

 

 

19

%

 

 

9

%

FDIC assessments

 

 

10

 

 

 

19

 

 

 

10

 

 

 

-47

%

 

 

1

%

Advertising and marketing

 

 

22

 

 

 

22

 

 

 

24

 

 

 

1

%

 

 

-8

%

Printing, postage and supplies

 

 

10

 

 

 

9

 

 

 

10

 

 

 

15

%

 

 

-1

%

Amortization of core deposit and other intangible assets

 

 

5

 

 

 

6

 

 

 

5

 

 

 

-17

%

 

 

 

Other costs of operations

 

 

211

 

 

 

161

 

 

 

234

 

 

 

31

%

 

 

-10

%

Total

 

$

878

 

 

$

776

 

 

$

873

 

 

 

13

%

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


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M&T BANK CORPORATION

 

relationship of operating expenses to revenues.  M&T's efficiency ratio was 55.9% in the third quarter of 2019, 51.4% in the year-earlier quarter and 56.0% in the second quarter of 2019.

Balance Sheet.  M&T had total assets of $125.5 billion at September 30, 2019, compared with $116.8 billion and $121.6 billion at September 30, 2018 and June 30, 2019, respectively. Loans and leases, net of unearned discount, were $89.8 billion at the recent quarter-end, $86.7 billion at September 30, 2018 and $89.9 billion at June 30, 2019. Total deposits were $95.1 billion at September 30, 2019, up from $89.1 billion a year earlier and $91.7 billion at June 30, 2019. The higher level of deposits at the recent quarter-end as compared with the prior dates reflects increased deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $15.8 billion, or 12.6% of total assets at September 30, 2019, compared with $15.4 billion, or 13.21% at September 30, 2018 and $15.7 billion, or 12.91% at June 30, 2019. Common shareholders' equity was $14.5 billion, or $109.84 per share, at September 30, 2019, compared with $14.2 billion, or $100.38 per share, a year-earlier and $14.5 billion, or $107.73 per share, at June 30, 2019.  Tangible equity per common share was $74.93 at September 30, 2019, compared with $67.64 at September 30, 2018 and $73.29 at June 30, 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 9.81% at September 30, 2019.

In accordance with its capital plan, M&T repurchased 1,933,000 shares of its common stock during the recent quarter at an average cost per share of $155.18, for a total cost of $300 million. In the aggregate, during the first nine months of 2019, M&T repurchased 6,533,000 shares of common stock at a total cost of $1.07 billion.

 

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial

(877) 780-2276.  International participants, using any applicable international calling codes, may dial

(973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID #9382126.  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, October 24, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #9382126.  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.

 


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M&T BANK CORPORATION

 

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 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

 

 

 

 

 

 

Nine months ended

 

 

 

 

 

 

 

September 30

 

 

 

 

 

 

September 30

 

 

 

 

 

Amounts in thousands, except per share

 

2019

 

 

2018

 

 

Change

 

 

2019

 

 

2018

 

 

Change

 

Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

480,081

 

 

 

526,091

 

 

 

-9

%

 

$

1,436,083

 

 

 

1,371,861

 

 

 

5

%

Net income available to common shareholders

 

 

461,410

 

 

 

505,365

 

 

 

-9

%

 

 

1,376,129

 

 

 

1,310,703

 

 

 

5

%

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

3.47

 

 

 

3.54

 

 

 

-2

%

 

$

10.16

 

 

 

9.01

 

 

 

13

%

Diluted earnings

 

 

3.47

 

 

 

3.53

 

 

 

-2

%

 

 

10.16

 

 

 

9.00

 

 

 

13

%

Cash dividends

 

$

1.00

 

 

 

1.00

 

 

 

 

 

$

3.00

 

 

 

2.55

 

 

 

18

%

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average - diluted (1)

 

 

132,999

 

 

 

142,976

 

 

 

-7

%

 

 

135,443

 

 

 

145,605

 

 

 

-7

%

Period end (2)

 

 

132,277

 

 

 

141,479

 

 

 

-7

%

 

 

132,277

 

 

 

141,479

 

 

 

-7

%

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

1.58

%

 

 

1.80

%

 

 

 

 

 

 

1.62

%

 

 

1.57

%

 

 

 

 

Average common shareholders' equity

 

 

12.73

%

 

 

14.08

%

 

 

 

 

 

 

12.85

%

 

 

12.16

%

 

 

 

 

Taxable-equivalent net interest income

 

$

1,035,469

 

 

 

1,034,771

 

 

 

 

 

$

3,138,902

 

 

 

3,029,281

 

 

 

4

%

Yield on average earning assets

 

 

4.51

%

 

 

4.40

%

 

 

 

 

 

 

4.62

%

 

 

4.26

%

 

 

 

 

Cost of interest-bearing liabilities

 

 

1.10

%

 

 

.82

%

 

 

 

 

 

 

1.09

%

 

 

.72

%

 

 

 

 

Net interest spread

 

 

3.41

%

 

 

3.58

%

 

 

 

 

 

 

3.53

%

 

 

3.54

%

 

 

 

 

Contribution of interest-free funds

 

 

.37

%

 

 

.30

%

 

 

 

 

 

 

.38

%

 

 

.27

%

 

 

 

 

Net interest margin

 

 

3.78

%

 

 

3.88

%

 

 

 

 

 

 

3.91

%

 

 

3.81

%

 

 

 

 

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

 

 

.16

%

 

 

.07

%

 

 

 

 

 

 

.15

%

 

 

.14

%

 

 

 

 

Net operating results (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

$

483,830

 

 

 

530,619

 

 

 

-9

%

 

$

1,447,271

 

 

 

1,385,986

 

 

 

4

%

Diluted net operating earnings per common share

 

 

3.50

 

 

 

3.56

 

 

 

-2

%

 

 

10.24

 

 

 

9.10

 

 

 

13

%

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible assets

 

 

1.66

%

 

 

1.89

%

 

 

 

 

 

 

1.70

%

 

 

1.65

%

 

 

 

 

Average tangible common equity

 

 

18.85

%

 

 

21.00

%

 

 

 

 

 

 

19.07

%

 

 

18.09

%

 

 

 

 

Efficiency ratio

 

 

55.95

%

 

 

51.41

%

 

 

 

 

 

 

56.49

%

 

 

55.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality

 

2019

 

 

2018

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,005,249

 

 

 

870,832

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

Real estate and other foreclosed assets

 

 

79,735

 

 

 

87,333

 

 

 

-9

%

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

1,084,984

 

 

 

958,165

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more (4)

 

$

461,162

 

 

 

254,360

 

 

 

81

%

 

 

 

 

 

 

 

 

 

 

 

 

Government guaranteed loans included in totals above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

43,144

 

 

 

33,570

 

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more

 

 

434,132

 

 

 

195,450

 

 

 

122

%

 

 

 

 

 

 

 

 

 

 

 

 

Renegotiated loans

 

$

240,781

 

 

 

242,892

 

 

 

-1

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

40,733

 

 

 

44,223

 

 

 

-8

%

 

 

 

 

 

 

 

 

 

 

 

 

Purchased impaired loans (6):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding customer balance

 

$

453,382

 

 

 

572,979

 

 

 

-21

%

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amount

 

 

253,496

 

 

 

325,980

 

 

 

-22

%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans to total net loans

 

 

1.12

%

 

 

1.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

 

1.16

%

 

 

1.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 14.

(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.


8-8-8-8-8

M&T BANK CORPORATION

 

Financial Highlights, Five Quarter Trend

 

 

Three months ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Amounts in thousands, except per share

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

480,081

 

 

 

473,260

 

 

 

482,742

 

 

 

546,219