0000036270false00000362702022-10-192022-10-190000036270mtb:SeriesHFixedToFloatingRateNonCumulativePerpetualPreferredStockMember2022-10-192022-10-190000036270us-gaap:CommonStockMember2022-10-192022-10-19

 

 

 

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 19, 2022

 

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
Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series H	MTBPrH	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. ☐

 

 

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Item 2.02. Results of Operations and Financial Condition.

On October 19, 2022, M&T Bank Corporation announced its results of operations for the quarter ended September 30, 2022. 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 under Item 2.02 in this Form 8-K, including Exhibit 99.1 attached hereto, is being furnished 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 19, 2022.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

2

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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 19, 2022		By:		/s/ Darren J. King
				Darren J. King
				Senior Executive Vice President and Chief Financial Officer

 

3

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Exhibit 99.1

 

 

				FOR IMMEDIATE RELEASE:
				October 19, 2022

 

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, 2022.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) were $3.53 in the third quarter of 2022, compared with $3.69 in the year-earlier quarter and $1.08 in the second quarter of 2022. GAAP-basis net income was $647 million in the recent quarter, $495 million in the third quarter of 2021 and $218 million in the second 2022 quarter. GAAP-basis net income expressed as an annualized rate of return on average assets was 1.28% in each of the third quarters of 2022 and 2021, and .42% in the second quarter of 2022. That net income produced a return on average common shareholders' equity of 10.43% in the recent quarter, 12.16% in the similar 2021 period and 3.21% in the second quarter of 2022. The results reflect non-operating merger-related expenses associated with the acquisition of People's United Financial, Inc. ("People's United") of $53 million ($39 million after-tax effect, or $0.22 of diluted earnings per common share) in the recent quarter, compared with $9 million ($7 million after-tax effect, or $.05 of diluted earnings per common share) in the year-earlier quarter and $465 million ($346 million after-tax effect, or $1.94 of diluted earnings per share) in the second quarter of 2022.

Darren J. King, Chief Financial Officer, commenting on M&T’s results noted, "We are pleased with the recent quarter gains in net operating income which are up 21% from the second quarter and 39% year over year. That improvement reflects increases in taxable-equivalent net interest income of 19% and 74%, coupled with low credit losses and well-controlled expenses. We are excited to continue our integration work to build a preeminent commercial bank across the eastern United States and are committed to the success of the consumers, small businesses and communities across our expanded footprint."

 

Earnings Highlights
														Change 3Q22 vs.
($ in millions, except per share data)		3Q22				3Q21				2Q22				3Q21				2Q22
Net income		$	647			$	495			$	218				31	%			197	%
Net income available to common shareholders ̶ diluted		$	621			$	476			$	192				30	%			223	%
Diluted earnings per common share		$	3.53			$	3.69			$	1.08				-4	%			227	%
Annualized return on average assets			1.28	%			1.28	%			.42	%
Annualized return on average common equity			10.43	%			12.16	%			3.21	%

For the first nine months of 2022, diluted earnings per common share were $7.14, compared with $10.43 in the year-earlier period. GAAP-basis net income was $1.23 billion and $1.40 billion in the first three quarters of

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M&T BANK CORPORATION

 

2022 and 2021, respectively. 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, 2022 was .87% and 7.24%, respectively, compared with 1.24% and 11.76%, respectively, in the similar 2021 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 and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be “nonoperating” in nature. The amounts of such “nonoperating” expenses are presented in the tables that accompany this release.

Merger-related expenses generally consist of professional services and other temporary help fees associated with actual or planned conversions of systems and/or integration of operations, costs related to terminations of existing contractual arrangements to purchase various services, severance and travel costs. Reflected in merger-related expenses in the second quarter of 2022 was a provision for credit losses of $242 million. GAAP requires that acquired loans be recorded at estimated fair value, which includes the use of interest rate and expected credit loss assumptions to forecast estimated cash flows. GAAP also provides that an allowance for credit losses on loans acquired, but not classified as purchased credit deteriorated ("PCD") also be recognized. Accordingly, M&T recorded a $242 million provision related to such loans obtained in the People's United acquisition. Given the requirement to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that provision to be a merger-related expense. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.

Diluted net operating earnings per common share were $3.83 in the third quarter of 2022, compared with $3.76 in the year-earlier quarter and $3.10 in the second quarter of 2022. Net operating income aggregated $700 million in the recent quarter, $504 million in the third quarter of 2021 and $578 million in 2022’s second quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the third quarter of 2022 was 1.44% and 17.89%, respectively, 1.34% and 17.54%, respectively, in the similar quarter of 2021 and 1.16% and 14.41%, respectively, in the second quarter of 2022.

Diluted net operating earnings per common share in the first nine months of 2022 totaled $9.78, compared with $10.61 in the similar 2021 period. Net operating income during the first nine months of 2022 was $1.65 billion, up from $1.42 billion in the nine-month period ended September 30, 2021. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.23% and 15.13%, respectively, in the initial nine months of 2022, compared with 1.30% and 17.10%, respectively, in the similar 2021 period.

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3-3-3-3-3

M&T BANK CORPORATION

 

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $1.69 billion in the recent quarter, up from $971 million in the third quarter of 2021 and $1.42 billion in the second quarter of 2022. The increase compared with the earlier quarters reflects a higher net interest margin and, additionally, when compared with the year-earlier quarter, the impact of earning assets obtained in the acquisition of People’s United. Average earning assets totaled $182.4 billion in the recent quarter, compared with $140.4 billion in the third quarter of 2021 and $189.8 billion in the second quarter of 2022. Average loans outstanding were $127.5 billion in the third quarter of 2022, compared with $95.3 billion in the year earlier quarter and $127.6 billion in the second quarter of 2022. The higher average balances of both earnings assets and loans outstanding in the second and third quarters of 2022 compared with the third quarter of 2021 reflect the impact of additional earning assets obtained in the acquisition of People's United. Reflecting the impact of rising interest rates, the net interest margin increased to 3.68% in the third quarter of 2022, up from 2.74% in the corresponding quarter of 2021 and 3.01% in the second quarter of 2022.

Taxable-equivalent Net Interest Income
														Change 3Q22 vs.
($ in millions)		3Q22				3Q21				2Q22				3Q21				2Q22
Average earning assets		$	182,382			$	140,420			$	189,755				30	%			-4	%
Net interest income ̶  taxable-equivalent		$	1,691			$	971			$	1,422				74	%			19	%
Net interest margin			3.68	%			2.74	%			3.01	%

 

Provision for Credit Losses/Asset Quality. The provision for credit losses was $115 million in the third quarter of 2022 and $302 million in the second quarter of 2022, compared with a $20 million recapture of provision in the third quarter of 2021. Included in the second quarter of 2022 was a $242 million provision, recorded in accordance with GAAP, related to loans obtained in the People’s United acquisition that were considered non-PCD. GAAP provides that an allowance for credit losses on such loans be recorded beyond the recognition of the fair value of the loans at the acquisition date. In addition to that merger-related provision, M&T recorded a provision for credit losses of $60 million in the second quarter of 2022. Net loan charge-offs were $63 million in the third quarter of 2022, $40 million in the third quarter of 2021 and $50 million in 2022’s second quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .17% in the third quarters of 2022 and 2021, respectively, and .16% in the second quarter of 2022.

Loans classified as nonaccrual totaled $2.43 billion at September 30, 2022, compared with $2.24 billion at September 30, 2021 and $2.63 billion at June 30, 2022. The balance of nonaccrual loans at the end of the two most recent quarters as compared with September 30, 2021 reflects loans obtained in the acquisition of People’s United. Nonaccrual loans as a percentage of total loans were 1.89% at September 30, 2022, improved from 2.40% a year earlier and 2.05% at June 30, 2022. Assets taken in foreclosure of defaulted loans were $37 million at September 30, 2022, $25 million a year earlier and $29 million at June 30, 2022.

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4-4-4-4-4

M&T BANK CORPORATION

 

Allowance for Credit Losses. M&T regularly performs comprehensive analyses of its loan portfolios and assesses forecasted economic conditions for purposes of determining the adequacy of the allowance for credit losses. As a result of those procedures, the allowance for credit losses totaled $1.88 billion or 1.46% of loans outstanding at September 30, 2022 compared with $1.52 billion or 1.62% of loans outstanding at September 30, 2021 and $1.82 billion or 1.42% at June 30, 2022. The acquisition of People’s United loans and leases resulted in a $341 million increase in the allowance for credit losses as of April 1, 2022, including $99 million related to PCD loans and $242 million related to non-PCD loans. Including the impact of the acquisition, M&T’s allowance for credit losses was $1.81 billion on April 1, 2022, or 1.42% of then outstanding loans. The higher allowance for credit losses as a percentage of outstanding loans at the recent quarter end as compared with June 30, 2022 reflects a modestly less optimistic macroeconomic forecast.

Asset Quality Metrics
														Change 3Q22 vs.
($ in millions)		3Q22				3Q21				2Q22				3Q21				2Q22
At end of quarter
Nonaccrual loans		$	2,429			$	2,242			$	2,633				8	%			-8	%
Real estate and other foreclosed assets		$	37			$	25			$	29				49	%			29	%
Total nonperforming assets		$	2,466			$	2,267			$	2,662				9	%			-7	%
Accruing loans past due 90 days or more (1)		$	477			$	1,026			$	524				-54	%			-9	%
Nonaccrual loans as % of loans outstanding			1.89	%			2.40	%			2.05	%
Allowance for credit losses		$	1,876			$	1,515			$	1,824				24	%			3	%
Allowance for credit losses as % of loans outstanding			1.46	%			1.62	%			1.42	%
For the period
Provision for credit losses		$	115			$	(20	)		$	302				—				-62	%
Net charge-offs (2)		$	63			$	40			$	50				58	%			27	%
Net charge-offs as % of average loans (annualized) (2)			.20	%			.17	%			.16	%

 

Noninterest Income and Expense. Noninterest income totaled $563 million in the third quarter of 2022, compared with $569 million in the year-earlier quarter. Trust income, service charges on deposit accounts and credit-related fees included in other revenues from operations all increased reflecting the acquisition of People's United, but were offset by a decline in mortgage banking revenues resulting from M&T’s decision to retain recently originated mortgage loans in portfolio rather than sell such loans. Noninterest income was $571 million in this year’s second quarter. The comparative decline in the recent quarter was predominantly the result of lower service charges on deposit accounts and trust income, offset by higher credit-related fees.

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5-5-5-5-5

M&T BANK CORPORATION

 

Noninterest Income
														Change 3Q22 vs.
($ in millions)		3Q22				3Q21				2Q22				3Q21				2Q22
Mortgage banking revenues		$	83			$	160			$	83				-48	%			—
Service charges on deposit accounts			115				105				124				9	%			-7	%
Trust income			187				157				190				19	%			-2	%
Brokerage services income			21				20				24				3	%			-13	%
Trading account and non-hedging derivative gains			5				6				2				-9	%			122	%
Gain (loss) on bank investment securities			(1	)			—				—				—				—
Other revenues from operations			153				121				148				27	%			4	%
Total		$	563			$	569			$	571				-1	%			-1	%

Noninterest expense totaled $1.28 billion in the third quarter of 2022, compared with $899 million in the similar quarter of 2021 and $1.40 billion in the second quarter of 2022. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $1.21 billion in the recent quarter, $888 million in the third quarter of 2021 and $1.16 billion in 2022’s second quarter. The most significant factor for the higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was the impact of operations obtained in the People’s United acquisition. Compared with the second quarter of 2022, the $46 million increase in operating expenses in 2022's third quarter predominantly resulted from a $32 million rise in salaries and benefits expenses attributable to an additional pay day in the third quarter and M&T's continued investment in its talent base through salaries and incentive compensation.

 

Noninterest Expense
														Change 3Q22 vs.
($ in millions)		3Q22				3Q21				2Q22				3Q21				2Q22
Salaries and employee benefits		$	736			$	510			$	776				44	%			-5	%
Equipment and net occupancy			127				81				125				57	%			2	%
Outside data processing and software			95				73				94				31	%			1	%
FDIC assessments			28				19				22				49	%			24	%
Advertising and marketing			21				15				21				41	%			4	%
Printing, postage and supplies			15				8				16				87	%			-5	%
Amortization of core deposit and other intangible assets			18				3				18				571	%			—
Other costs of operations			239				190				331				25	%			-28	%
Total		$	1,279			$	899			$	1,403				42	%			-9	%

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 53.6% in the third quarter of 2022, 57.7% in the year-earlier quarter and 58.3% in the second quarter of 2022.

Balance Sheet. M&T had total assets of $198.0 billion at September 30, 2022, compared with $151.9 billion and $204.0 billion at September 30, 2021 and June 30, 2022, respectively. Loans and leases, net of unearned discount, were $128.2 billion at September 30, 2022, compared with $93.6 billion at September 30, 2021 and

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M&T BANK CORPORATION

 

$128.5 billion at June 30, 2022. The higher level of loans and leases at the recent quarter-end and June 30, 2022 as compared with September 30, 2021 is largely a reflection of balances associated with the acquisition of People’s United. Also reflective of that acquisition, total deposits were $163.8 billion at the recent quarter-end and $170.4 billion at June 30, 2022, compared with $128.7 billion at September 30, 2021.

Total shareholders' equity was $25.3 billion or 12.76% of total assets at September 30, 2022, $17.5 billion or 11.54% at September 30, 2021 and $25.8 billion or 12.64% at June 30, 2022. Common shareholders' equity was $23.2 billion, or $134.45 per share, at September 30, 2022, compared with $15.8 billion, or $122.60 per share, a year-earlier and $23.8 billion, or $135.16 per share, at June 30, 2022. Tangible equity per common share was $84.28 at September 30, 2022, $86.88 at September 30, 2021 and $85.78 at June 30, 2022. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 10.7% at September 30, 2022, compared with 10.9% three months earlier and 11.1% at September 30, 2021.

In accordance with its capital plan, M&T repurchased 3,282,449 shares of its common stock during the recent quarter at an average cost per share of $182.79 resulting in a total cost of $600 million.

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 (800) 225-9448. International participants, using any applicable international calling codes, may dial (203) 518-9708. Callers should reference M&T Bank Corporation or the conference ID #MTBQ322. 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 Wednesday October 26, 2022 by calling (800) 688-7339, or (402) 220-1347 for international participants. No conference ID is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

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

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

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M&T BANK CORPORATION

 

Statements regarding the potential effects of events or factors specific to the Company and/or the financial industry as a whole, as well as national and global events generally, on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. As described further below, statements regarding M&T's expectations or predictions regarding the acquisition of People's United are also forward-looking statements, including statements regarding the expected financial results, prospects, targets, goals and outlook.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("future factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Examples of future factors include: the impact of the People's United acquisition (as described in the next paragraph); economic conditions including inflation and supply chain issues; the impact of international conflicts or other events; the impact of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values 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 and/or regulations affecting the financial services industry or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; containing costs and expenses; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

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M&T BANK CORPORATION

 

In addition, future factors related to the acquisition of People's United include, among others: the outcome of any legal proceedings that may be instituted against M&T or its subsidiaries; the possibility that the anticipated benefits of the transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company does business; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships; the Company's success in executing its business plans and strategies and managing the risks involved in the foregoing; the business, economic and political conditions in the markets in which the Company operates; and other factors that may affect future results of the Company.

Future factors related to the acquisition also include risks, such as, among others: that there could be an adverse effect on the Company's ability to retain customers and retain or hire key personnel and maintain relationships with customers; that integration efforts may be more difficult or time-consuming than anticipated, including in areas such as sales force, cost containment, asset realization, systems integration and other key strategies; that profitability following the combination may be lower than expected including for possible reasons such as lower than expected revenues or higher or unexpected costs, charges or expenses resulting from the transaction; unforeseen risks that may exist; and other factors that may affect future results of the Company.

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

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2021, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date made, and M&T does not assume any duty and does not undertake to update forward-looking statements.

 

 

 

INVESTOR CONTACT:		Brian Klock
		(716) 842-5138
MEDIA CONTACT:		Maya Dillon
		(646) 735-1958

 

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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	2022				2021				Change				2022				2021				Change
Performance
Net income	$	646,596				495,460				31	%		$	1,226,292				1,400,778				-12	%
Net income available to common shareholders		620,554				475,961				30	%			1,152,406				1,342,812				-14	%
Per common share:
Basic earnings	$	3.55				3.70				-4	%		$	7.18				10.44				-31	%
Diluted earnings		3.53				3.69				-4	%			7.14				10.43				-32	%
Cash dividends	$	1.20				1.10				9	%		$	3.60				3.30				9	%
Common shares outstanding:
Average - diluted (1)		175,682				128,844				36	%			161,295				128,786				25	%
Period end (2)		172,900				128,699				34	%			172,900				128,699				34	%
Return on (annualized):
Average total assets		1.28	%			1.28	%							.87	%			1.24	%
Average common shareholders' equity		10.43	%			12.16	%							7.24	%			11.76	%
Taxable-equivalent net interest income	$	1,690,518				970,953				74	%		$	4,020,369				2,902,154				39	%
Yield on average earning assets		3.90	%			2.82	%							3.30	%			2.91	%
Cost of interest-bearing liabilities		.41	%			.14	%							.27	%			.15	%
Net interest spread		3.49	%			2.68	%							3.03	%			2.76	%
Contribution of interest-free funds		.19	%			.06	%							.12	%			.07	%
Net interest margin		3.68	%			2.74	%							3.15	%			2.83	%
Net charge-offs to average total net loans (annualized)		.20	%			.17	%							.14	%			.22	%
Net operating results (3)
Net operating income	$	700,030				504,030				39	%		$	1,653,651				1,424,361				16	%
Diluted net operating earnings per common share		3.83				3.76				2	%			9.78				10.61				-8	%
Return on (annualized):
Average tangible assets		1.44	%			1.34	%							1.23	%			1.30	%
Average tangible common equity		17.89	%			17.54	%							15.13	%			17.10	%
Efficiency ratio		53.6	%			57.7	%							58.1	%			58.8	%
	At September 30
Loan quality	2022				2021				Change
Nonaccrual loans	$	2,429,326				2,242,263				8	%
Real estate and other foreclosed assets		37,031				24,786				49	%
Total nonperforming assets	$	2,466,357				2,267,049				9	%
Accruing loans past due 90 days or more (4)	$	476,503				1,026,080				-54	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	44,797				47,358				-5	%
Accruing loans past due 90 days or more		423,371				947,091				-55	%
Renegotiated loans	$	356,797				242,955				47	%
Nonaccrual loans to total net loans		1.89	%			2.40	%
Allowance for credit losses to total loans		1.46	%			1.62	%

 

(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 16.

(4) Predominantly residential real estate loans.

 

---

10-10-10-10-10

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	2022				2022				2022				2021				2021
Performance
Net income	$	646,596				217,522				362,174				457,968				495,460
Net income available to common shareholders		620,554				192,236				339,590				434,171				475,961
Per common share:
Basic earnings	$	3.55				1.08				2.63				3.37				3.70
Diluted earnings		3.53				1.08				2.62				3.37				3.69
Cash dividends	$	1.20				1.20				1.20				1.20				1.10
Common shares outstanding:
Average - diluted (1)		175,682				178,277				129,416				128,888				128,844
Period end (2)		172,900				175,969				129,080				128,705				128,699
Return on (annualized):
Average total assets		1.28	%			.42	%			.97	%			1.15	%			1.28	%
Average common shareholders' equity		10.43	%			3.21	%			8.55	%			10.91	%			12.16	%
Taxable-equivalent net interest income	$	1,690,518				1,422,443				907,408				937,356				970,953
Yield on average earning assets		3.90	%			3.12	%			2.72	%			2.64	%			2.82	%
Cost of interest-bearing liabilities		.41	%			.20	%			.13	%			.12	%			.14	%
Net interest spread		3.49	%			2.92	%			2.59	%			2.52	%			2.68	%
Contribution of interest-free funds		.19	%			.09	%			.06	%			.06	%			.06	%
Net interest margin		3.68	%			3.01	%			2.65	%			2.58	%			2.74	%
Net charge-offs to average total net loans (annualized)		.20	%			.16	%			.03	%			.13	%			.17	%
Net operating results (3)
Net operating income	$	700,030				577,622				375,999				475,477				504,030
Diluted net operating earnings per common share		3.83				3.10				2.73				3.50				3.76
Return on (annualized):
Average tangible assets		1.44	%			1.16	%			1.04	%			1.23	%			1.34	%
Average tangible common equity		17.89	%			14.41	%			12.44	%			15.98	%			17.54	%
Efficiency ratio		53.6	%			58.3	%			64.9	%			59.7	%			57.7	%
	September 30,				June 30,				March 31,				December 31,				September 30,
Loan quality	2022				2022				2022				2021				2021
Nonaccrual loans	$	2,429,326				2,633,005				2,134,231				2,060,083				2,242,263
Real estate and other foreclosed assets		37,031				28,692				23,524				23,901				24,786
Total nonperforming assets	$	2,466,357				2,661,697				2,157,755				2,083,984				2,267,049
Accruing loans past due 90 days or more (4)	$	476,503				523,662				776,751				963,399				1,026,080
Government guaranteed loans included in totals above:
Nonaccrual loans	$	44,797				46,937				46,151				51,429				47,358
Accruing loans past due 90 days or more		423,371				467,834				689,831				927,788				947,091
Renegotiated loans	$	356,797				276,584				242,108				230,408				242,955
Nonaccrual loans to total net loans		1.89	%			2.05	%			2.32	%			2.22	%			2.40	%
Allowance for credit losses to total loans		1.46	%			1.42	%			1.60	%			1.58	%			1.62	%

 

(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 17.

(4) Predominantly residential real estate loans.

---

11-11-11-11-11

M&T BANK CORPORATION

 

Condensed Consolidated Statement of Income

 

		Three months ended												Nine months ended
		September 30												September 30
Dollars in thousands		2022				2021				Change				2022				2021				Change
Interest income		$	1,781,513				992,946				79	%		$	4,174,911				2,980,266				40	%
Interest expense			102,822				25,696				300				180,329				89,281				102
Net interest income			1,678,691				967,250				74				3,994,582				2,890,985				38
Provision for credit losses			115,000				(20,000	)			—				427,000				(60,000	)			—
Net interest income after provision for credit losses			1,563,691				987,250				58				3,567,582				2,950,985				21
Other income
Mortgage banking revenues			83,041				159,995				-48				275,115				432,062				-36
Service charges on deposit accounts			115,213				105,426				9				340,890				296,721				15
Trust income			186,577				156,876				19				545,874				475,889				15
Brokerage services income			21,086				20,490				3				65,414				43,868				49
Trading account and non-hedging derivative gains			5,081				5,563				-9				12,743				18,349				-31
Gain (loss) on bank investment securities			(1,108	)			291				—				(1,913	)			(22,646	)			—
Other revenues from operations			153,189				120,485				27				436,943				344,114				27
Total other income			563,079				569,126				-1				1,675,066				1,588,357				5
Other expense
Salaries and employee benefits			736,354				510,422				44				2,090,075				1,530,634				37
Equipment and net occupancy			127,117				80,738				57				337,584				244,057				38
Outside data processing and software			95,068				72,782				31				268,607				213,025				26
FDIC assessments			28,105				18,810				49				66,266				50,874				30
Advertising and marketing			21,398				15,208				41				58,057				43,200				34
Printing, postage and supplies			14,768				7,917				87				40,488				28,367				43
Amortization of core deposit and other      intangible assets			18,384				2,738				571				38,024				8,213				363
Other costs of operations			238,059				190,719				25				743,047				565,753				31
Total other expense			1,279,253				899,334				42				3,642,148				2,684,123				36
Income before income taxes			847,517				657,042				29				1,600,500				1,855,219				-14
Applicable income taxes			200,921				161,582				24				374,208				454,441				-18
Net income		$	646,596				495,460				31	%		$	1,226,292				1,400,778				-12	%

 

---

12-12-12-12-12

M&T BANK CORPORATION

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
		September 30,				June 30,				March 31,				December 31,				September 30,
Dollars in thousands		2022				2022				2022				2021				2021
Interest income		$	1,781,513				1,465,142				928,256				958,518				992,946
Interest expense			102,822				53,425				24,082				24,725				25,696
Net interest income			1,678,691				1,411,717				904,174				933,793				967,250
Provision for credit losses			115,000				302,000				10,000				(15,000	)			(20,000	)
Net interest income after provision for credit losses			1,563,691				1,109,717				894,174				948,793				987,250
Other income
Mortgage banking revenues			83,041				82,926				109,148				139,267				159,995
Service charges on deposit accounts			115,213				124,170				101,507				105,392				105,426
Trust income			186,577				190,084				169,213				168,827				156,876
Brokerage services income			21,086				24,138				20,190				18,923				20,490
Trading account and non-hedging derivative gains			5,081				2,293				5,369				6,027				5,563
Gain (loss) on bank investment securities			(1,108	)			(62	)			(743	)			1,426				291
Other revenues from operations			153,189				147,551				136,203				138,775				120,485
Total other income			563,079				571,100				540,887				578,637				569,126
Other expense
Salaries and employee benefits			736,354				776,201				577,520				515,043				510,422
Equipment and net occupancy			127,117				124,655				85,812				82,641				80,738
Outside data processing and software			95,068				93,820				79,719				78,814				72,782
FDIC assessments			28,105				22,585				15,576				18,830				18,810
Advertising and marketing			21,398				20,635				16,024				21,228				15,208
Printing, postage and supplies			14,768				15,570				10,150				8,140				7,917
Amortization of core deposit and other      intangible assets			18,384				18,384				1,256				1,954				2,738
Other costs of operations			238,059				331,304				173,684				200,850				190,719
Total other expense			1,279,253				1,403,154				959,741				927,500				899,334
Income before income taxes			847,517				277,663				475,320				599,930				657,042
Applicable income taxes			200,921				60,141				113,146				141,962				161,582
Net income		$	646,596				217,522				362,174				457,968				495,460

 

---

13-13-13-13-13

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet

 

		September 30
Dollars in thousands		2022				2021				Change
ASSETS
Cash and due from banks		$	2,255,810				1,479,712				52		%
Interest-bearing deposits at banks			25,391,528				38,445,788				-34
Trading account			129,672				50,920				155
Investment securities			24,603,765				6,447,622				282
Loans and leases:
Commercial, financial, etc.			38,807,949				22,514,940				72
Real estate - commercial			46,138,665				37,023,952				25
Real estate - consumer			23,074,280				16,209,354				42
Consumer			20,204,693				17,834,648				13
Total loans and leases, net of unearned discount			128,225,587				93,582,894				37
Less: allowance for credit losses			1,875,591				1,515,024				24
Net loans and leases			126,349,996				92,067,870				37
Goodwill			8,501,357				4,593,112				85
Core deposit and other intangible assets			226,974				5,952				—
Other assets			10,496,377				8,810,218				19
Total assets		$	197,955,479				151,901,194				30		%
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits		$	73,023,271				56,542,309				29		%
Interest-bearing deposits			90,822,117				72,158,987				26
Total deposits			163,845,388				128,701,296				27
Short-term borrowings			917,806				103,548				786
Accrued interest and other liabilities			4,476,456				2,067,188				117
Long-term borrowings			3,459,336				3,500,391				-1
Total liabilities			172,698,986				134,372,423				29
Shareholders' equity:
Preferred			2,010,600				1,750,000				15
Common			23,245,893				15,778,771				47
Total shareholders' equity			25,256,493				17,528,771				44
Total liabilities and shareholders' equity		$	197,955,479				151,901,194				30		%

 

 

---

14-14-14-14-14

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

	September 30,				June 30,				March 31,				December 31,				September 30,
Dollars in thousands	2022				2022				2022				2021				2021
ASSETS
Cash and due from banks	$	2,255,810				1,688,274				1,411,460				1,337,577				1,479,712
Interest-bearing deposits at banks		25,391,528				33,437,454				36,025,382				41,872,304				38,445,788
Federal funds sold and agreements to resell      securities		—				250,250				—				—				—
Trading account		129,672				133,855				46,854				49,745				50,920
Investment securities		24,603,765				22,801,717				9,356,832				7,155,860				6,447,622
Loans and leases:
Commercial, financial, etc.		38,807,949				39,108,676				23,496,017				23,473,324				22,514,940
Real estate - commercial		46,138,665				46,795,139				34,553,558				35,389,730				37,023,952
Real estate - consumer		23,074,280				22,767,107				15,595,879				16,074,445				16,209,354
Consumer		20,204,693				19,815,198				18,162,938				17,974,953				17,834,648
Total loans and leases, net of unearned discount		128,225,587				128,486,120				91,808,392				92,912,452				93,582,894
Less: allowance for credit losses		1,875,591				1,823,790				1,472,359				1,469,226				1,515,024
Net loans and leases		126,349,996				126,662,330				90,336,033				91,443,226				92,067,870
Goodwill		8,501,357				8,501,357				4,593,112				4,593,112				4,593,112
Core deposit and other intangible assets		226,974				245,358				2,742				3,998				5,952
Other assets		10,496,377				10,312,294				8,091,137				8,651,338				8,810,218
Total assets	$	197,955,479				204,032,889				149,863,552				155,107,160				151,901,194
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	73,023,271				72,375,515				58,520,366				60,131,480				56,542,309
Interest-bearing deposits		90,822,117				97,982,881				67,798,347				71,411,929				72,158,987
Total deposits		163,845,388				170,358,396				126,318,713				131,543,409				128,701,296
Short-term borrowings		917,806				1,119,321				50,307				47,046				103,548
Accrued interest and other liabilities		4,476,456				3,743,278				2,174,925				2,127,931				2,067,188
Long-term borrowings		3,459,336				3,017,363				3,443,587				3,485,369				3,500,391
Total liabilities		172,698,986				178,238,358				131,987,532				137,203,755				134,372,423
Shareholders' equity:
Preferred		2,010,600				2,010,600				1,750,000				1,750,000				1,750,000
Common		23,245,893				23,783,931				16,126,020				16,153,405				15,778,771
Total shareholders' equity		25,256,493				25,794,531				17,876,020				17,903,405				17,528,771
Total liabilities and shareholders' equity	$	197,955,479				204,032,889				149,863,552				155,107,160				151,901,194

 

---

15-15-15-15-15

M&T BANK CORPORATION

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 

 

		Three months ended																								Change in balance								Nine months ended
		September 30,								September 30,								June 30,								September 30, 2022 from								September 30,																Change
Dollars in millions		2022								2021								2022								September 30,				June 30,				2022								2021								in
		Balance				Rate				Balance				Rate				Balance				Rate				2021				2022				Balance				Rate				Balance				Rate				balance
ASSETS
Interest-bearing deposits at banks		$	30,752				2.23		%		39,036				.15		%		39,386				.82		%		-21		%		-22		%	$	36,248				1.00		%		32,969				.12		%		10		%
Federal funds sold and agreements to resell       securities			29				.55				—				.47				250				.41				100				-88				93				.42				223				.12				-58
Trading account			131				1.78				51				2.71				136				.59				157				-4				105				1.24				50				1.97				111
Investment securities			23,945				2.62				6,019				2.19				22,384				2.55				298				7				18,077				2.51				6,276				2.23				188
Loans and leases, net of unearned discount
Commercial, financial, etc.			38,321				4.87				23,730				3.96				37,818				3.96				61				1				33,203				4.24				26,155				3.57				27
Real estate - commercial			46,282				4.49				37,547				3.87				47,227				3.87				23				-2				42,864				4.09				37,525				3.98				14
Real estate - consumer			22,962				3.84				16,379				3.59				22,761				3.64				40				1				20,557				3.69				16,932				3.56				21
Consumer			19,960				4.76				17,658				4.34				19,793				4.26				13				1				19,267				4.43				17,134				4.47				12
Total loans and leases, net			127,525				4.55				95,314				3.95				127,599				3.94				34				—				115,891				4.14				97,746				3.91				19
Total earning assets			182,382				3.90				140,420				2.82				189,755				3.12				30				-4				170,414				3.30				137,264				2.91				24
Goodwill			8,501								4,593								8,501								85				—				7,214								4,593								57
Core deposit and other intangible assets			236								7								254								—				-7				165								10								—
Other assets			10,012								9,017								10,355								11				-3				9,602								9,100								6
Total assets		$	201,131								154,037								208,865								31		%		-4		%	$	187,395								150,967								24		%
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking deposits		$	89,360				.31				70,976				.04				95,149				.12				26		%		-6		%	$	84,006				.16				71,000				.05				18		%
Time deposits			5,050				.09				3,061				.46				5,480				.09				65				-8				4,401				.11				3,381				.62				30
Deposits at Cayman Islands office			—				—				—				—				—				—				—				—				—				—				242				.11				-100
Total interest-bearing deposits			94,410				.29				74,037				.06				100,629				.12				28				-6				88,407				.16				74,623				.08				18
Short-term borrowings			913				1.16				91				.01				1,126				1.22				—				-19				701				1.16				72				.01				—
Long-term borrowings			3,281				3.67				3,431				1.75				3,282				2.55				-4				—				3,335				2.69				3,569				1.76				-7
Total interest-bearing liabilities			98,604				.41				77,559				.14				105,037				.20				27				-6				92,443				.27				78,264				.15				18
Noninterest-bearing deposits			72,861								57,218								74,054								27				-2				68,406								53,864								27
Other liabilities			4,001								2,151								3,684								86				9				3,301								2,167								52
Total liabilities			175,466								136,928								182,775								28				-4				164,150								134,295								22
Shareholders' equity			25,665								17,109								26,090								50				-2				23,245								16,672								39
Total liabilities and shareholders' equity		$	201,131								154,037								208,865								31		%		-4		%	$	187,395								150,967								24		%
Net interest spread							3.49								2.68								2.92																3.03								2.76
Contribution of interest-free funds							.19								.06								.09																.12								.07
Net interest margin							3.68		%						2.74		%						3.01		%														3.15		%						2.83		%

 

 

---

16-16-16-16-16

M&T BANK CORPORATION

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended								Nine months ended
		September 30								September 30
		2022				2021				2022				2021
Income statement data
In thousands, except per share
Net income
Net income		$	646,596				495,460				1,226,292				1,400,778
Amortization of core deposit and other intangible assets (1)			14,141				2,028				29,212				6,085
Merger-related expenses (1)			39,293				6,542				398,147				17,498
Net operating income		$	700,030				504,030				1,653,651				1,424,361
Earnings per common share
Diluted earnings per common share		$	3.53				3.69				7.14				10.43
Amortization of core deposit and other intangible assets (1)			.08				.02				.18				.05
Merger-related expenses (1)			.22				.05				2.46				.13
Diluted net operating earnings per common share		$	3.83				3.76				9.78				10.61
Other expense
Other expense		$	1,279,253				899,334				3,642,148				2,684,123
Amortization of core deposit and other intangible assets			(18,384	)			(2,738	)			(38,024	)			(8,213	)
Merger-related expenses			(53,027	)			(8,826	)			(293,208	)			(22,670	)
Noninterest operating expense		$	1,207,842				887,770				3,310,916				2,653,240
Merger-related expenses
Salaries and employee benefits		$	13,094				60				98,480				64
Equipment and net occupancy			2,106				1				4,415				1
Outside data processing and software			2,277				625				3,245				869
Advertising and marketing			2,177				505				4,004				529
Printing, postage and supplies			651				730				3,833				2,779
Other costs of operations			32,722				6,905				179,231				18,428
Other expense			53,027				8,826				293,208				22,670
Provision for credit losses			—				—				242,000				—
Total		$	53,027			$	8,826			$	535,208			$	22,670
Efficiency ratio
Noninterest operating expense (numerator)		$	1,207,842				887,770				3,310,916				2,653,240
Taxable-equivalent net interest income		$	1,690,518				970,953				4,020,369				2,902,154
Other income			563,079				569,126				1,675,066				1,588,357
Less: Gain (loss) on bank investment securities			(1,108	)			291				(1,913	)			(22,646	)
Denominator		$	2,254,705				1,539,788				5,697,348				4,513,157
Efficiency ratio			53.6	%			57.7	%			58.1	%			58.8	%
Balance sheet data
In millions
Average assets
Average assets		$	201,131				154,037				187,395				150,967
Goodwill			(8,501	)			(4,593	)			(7,214	)			(4,593	)
Core deposit and other intangible assets			(236	)			(7	)			(165	)			(10	)
Deferred taxes			56				2				38				2
Average tangible assets		$	192,450				149,439				180,054				146,366
Average common equity
Average total equity		$	25,665				17,109				23,245				16,672
Preferred stock			(2,011	)			(1,495	)			(1,925	)			(1,332	)
Average common equity			23,654				15,614				21,320				15,340
Goodwill			(8,501	)			(4,593	)			(7,214	)			(4,593	)
Core deposit and other intangible assets			(236	)			(7	)			(165	)			(10	)
Deferred taxes			56				2				38				2
Average tangible common equity		$	14,973				11,016				13,979				10,739
At end of quarter
Total assets
Total assets		$	197,955				151,901
Goodwill			(8,501	)			(4,593	)
Core deposit and other intangible assets			(227	)			(6	)
Deferred taxes			54				2
Total tangible assets		$	189,281				147,304
Total common equity
Total equity		$	25,256				17,529
Preferred stock			(2,011	)			(1,750	)
Common equity			23,245				15,779
Goodwill			(8,501	)			(4,593	)
Core deposit and other intangible assets			(227	)			(6	)
Deferred taxes			54				2
Total tangible common equity		$	14,571				11,182

 

(1) After any related tax effect.

 

 

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17-17-17-17-17

M&T BANK CORPORATION

 

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

 

		Three months ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Income statement data
In thousands, except per share
Net income
Net income		$	646,596				217,522				362,174				457,968				495,460
Amortization of core deposit and other intangible assets (1)			14,141				14,138				933				1,447				2,028
Merger-related expenses (1)			39,293				345,962				12,892				16,062				6,542
Net operating income		$	700,030				577,622				375,999				475,477				504,030
Earnings per common share
Diluted earnings per common share		$	3.53				1.08				2.62				3.37				3.69
Amortization of core deposit and other intangible assets (1)			.08				.08				.01				.01				.02
Merger-related expenses (1)			.22				1.94				.10				.12				.05
Diluted net operating earnings per common share		$	3.83				3.10				2.73				3.50				3.76
Other expense
Other expense		$	1,279,253				1,403,154				959,741				927,500				899,334
Amortization of core deposit and other intangible assets			(18,384	)			(18,384	)			(1,256	)			(1,954	)			(2,738	)
Merger-related expenses			(53,027	)			(222,809	)			(17,372	)			(21,190	)			(8,826	)
Noninterest operating expense		$	1,207,842				1,161,961				941,113				904,356				887,770
Merger-related expenses
Salaries and employee benefits		$	13,094				85,299				87				112				60
Equipment and net occupancy			2,106				502				1,807				340				1
Outside data processing and software			2,277				716				252				250				625
Advertising and marketing			2,177				1,199				628				337				505
Printing, postage and supplies			651				2,460				722				186				730
Other costs of operations			32,722				132,633				13,876				19,965				6,905
Other expense			53,027				222,809				17,372				21,190				8,826
Provision for credit losses			—				242,000				—				—				—
Total		$	53,027				464,809				17,372				21,190				8,826
Efficiency ratio
Noninterest operating expense (numerator)		$	1,207,842				1,161,961				941,113				904,356				887,770
Taxable-equivalent net interest income		$	1,690,518				1,422,443				907,408				937,356				970,953
Other income			563,079				571,100				540,887				578,637				569,126
Less: Gain (loss) on bank investment securities			(1,108	)			(62	)			(743	)			1,426				291
Denominator		$	2,254,705				1,993,605				1,449,038				1,514,567				1,539,788
Efficiency ratio			53.6	%			58.3	%			64.9	%			59.7	%			57.7	%
Balance sheet data
In millions
Average assets
Average assets		$	201,131				208,865				151,648				157,722				154,037
Goodwill			(8,501	)			(8,501	)			(4,593	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(236	)			(254	)			(3	)			(5	)			(7	)
Deferred taxes			56				60				1				1				2
Average tangible assets		$	192,450				200,170				147,053				153,125				149,439
Average common equity
Average total equity		$	25,665				26,090				17,894				17,613				17,109
Preferred stock			(2,011	)			(2,011	)			(1,750	)			(1,750	)			(1,495	)
Average common equity			23,654				24,079				16,144				15,863				15,614
Goodwill			(8,501	)			(8,501	)			(4,593	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(236	)			(254	)			(3	)			(5	)			(7	)
Deferred taxes			56				60				1				1				2
Average tangible common equity		$	14,973				15,384				11,549				11,266				11,016
At end of quarter
Total assets
Total assets		$	197,955				204,033				149,864				155,107				151,901
Goodwill			(8,501	)			(8,501	)			(4,593	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(227	)			(245	)			(3	)			(4	)			(6	)
Deferred taxes			54				57				1				1				2
Total tangible assets		$	189,281				195,344				145,269				150,511				147,304
Total common equity
Total equity		$	25,256				25,795				17,876				17,903				17,529
Preferred stock			(2,011	)			(2,011	)			(1,750	)			(1,750	)			(1,750	)
Common equity			23,245				23,784				16,126				16,153				15,779
Goodwill			(8,501	)			(8,501	)			(4,593	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(227	)			(245	)			(3	)			(4	)			(6	)
Deferred taxes			54				57				1				1				2
Total tangible common equity		$	14,571				15,095				11,531				11,557				11,182

 

(1) After any related tax effect.

 

 

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