false00000362700000036270us-gaap:CommonStockMember2023-01-192023-01-190000036270mtb:SeriesHFixedToFloatingRateNonCumulativePerpetualPreferredStockMember2023-01-192023-01-1900000362702023-01-192023-01-19

 

 

 

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): January 19, 2023

 

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 January 19, 2023, M&T Bank Corporation announced its results of operations for the quarter and year ended December 31, 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 January 19, 2023.
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: January 19, 2023		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:
				January 19, 2023

 

M&T BANK CORPORATION ANNOUNCES FOURTH QUARTER AND FULL-YEAR RESULTS

BUFFALO, NEW YORK -- M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the full year and quarter ended December 31, 2022.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) were $4.29 in the fourth quarter of 2022, up from $3.37 in the year-earlier quarter and $3.53 in the third quarter of 2022. GAAP-basis net income was $765 million in the recent quarter, $458 million in the fourth quarter of 2021 and $647 million in the third 2022 quarter. GAAP-basis net income expressed as an annualized rate of return on average assets was 1.53% in the fourth quarter of 2022, improved from 1.15% in the corresponding 2021 period and 1.28% in the third quarter of 2022. That net income produced a return on average common shareholders' equity of 12.59% in the recent quarter, 10.91% in the similar 2021 period and 10.43% in the third 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 $45 million ($33 million after-tax effect, or $.20 of diluted earnings per common share) in the recent quarter, compared with $21 million ($16 million after-tax effect, or $.12 of diluted earnings per common share) in the year-earlier quarter and $53 million ($39 million after-tax effect, or $.22 of diluted earnings per share) in the third quarter of 2022.

The recent quarter's results reflect two noteworthy items. In the fourth quarter of 2022, M&T sold its retail insurance subsidiary, M&T Insurance Agency, Inc. ("MTIA"), to Arthur J. Gallagher & Co. The sale resulted in a gain of $136 million. Also during the fourth quarter of 2022, M&T made a $135 million tax-deductible contribution to The M&T Charitable Foundation.

Darren J. King, Chief Financial Officer, commenting on M&T’s results noted, "We are extremely pleased with our results, both in the fourth quarter as well as full year 2022. Diluted net operating earnings per share increased in each quarter following our acquisition of People's United, including by 19% in the fourth quarter. The integration of the acquired franchise, expansion of the net interest margin and solid growth in commercial loan balances position M&T to continue its strong performance into 2023."

 

 

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Earnings Highlights
														Change 4Q22 vs.
($ in millions, except per share data)		4Q22				4Q21				3Q22				4Q21				3Q22
Net income		$	765			$	458			$	647				67	%			18	%
Net income available to common shareholders ̶ diluted		$	739			$	434			$	621				70	%			19	%
Diluted earnings per common share		$	4.29			$	3.37			$	3.53				27	%			22	%
Annualized return on average assets			1.53	%			1.15	%			1.28	%
Annualized return on average common equity			12.59	%			10.91	%			10.43	%

For the year ended December 31, 2022, diluted earnings per common share were $11.53, compared with $13.80 in 2021. GAAP-basis net income was $1.99 billion and $1.86 billion in 2022 and 2021, respectively. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income in 2022 was 1.05% and 8.67%, respectively, compared with 1.22% and 11.54%, respectively, in 2021. Merger-related expenses in 2022 were $580 million ($432 million after tax-effect, or $2.63 of diluted earnings per common share), compared with $44 million ($34 million after-tax effect, or $.25 of diluted earnings per common share) in the prior year.

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, temporary help fees and other costs associated with actual or planned conversions of systems and/or integration of operations and the introduction of M&T to its new customers, costs related to terminations of existing contractual arrangements to purchase various services, severance, travel costs and, in the second quarter of 2022, an initial provision for credit losses of $242 million on loans not deemed to be purchased credit deteriorated ("PCD") on the April 1, 2022 acquisition date of People's United. 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 PCD also be recognized. 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 initial 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. The amounts of merger-related expenses in 2022 and 2021 are presented in the tables that accompany this release.

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Diluted net operating earnings per common share were $4.57 in the fourth quarter of 2022, improved from $3.50 in the year-earlier quarter and $3.83 in the third quarter of 2022. Net operating income aggregated $812 million in the recent quarter, $475 million in the fourth quarter of 2021 and $700 million in 2022’s third quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the fourth quarter of 2022 was 1.70% and 21.29%, respectively, 1.23% and 15.98%, respectively, in the similar quarter of 2021 and 1.44% and 17.89%, respectively, in the third quarter of 2022.

Diluted net operating earnings per common share for the year ended December 31, 2022 totaled $14.42, compared with $14.11 in 2021. Net operating income in 2022 was $2.47 billion, up from $1.90 billion in 2021. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.35% and 16.70%, respectively, in 2022, compared with 1.28% and 16.80%, respectively, in 2021.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $1.84 billion in the recent quarter, up from $937 million in the fourth quarter of 2021 and $1.69 billion in the third quarter of 2022. The increase compared with the earlier quarters reflects a higher net interest margin and, additionally, when compared with the 2021's fourth quarter, the impact of earning assets associated with the acquisition of People’s United. Average earning assets totaled $179.9 billion in the recent quarter, compared with $144.4 billion in the fourth quarter of 2021 and $182.4 billion in the third quarter of 2022. Average loans outstanding were $129.4 billion in the fourth quarter of 2022, up from $93.3 billion in the year earlier quarter and $127.5 billion in the third quarter of 2022. Reflecting the impact of rising interest rates, the net interest margin increased to 4.06% in the fourth quarter of 2022 from 2.58% in the corresponding quarter of 2021 and 3.68% in the third quarter of 2022. Taxable-equivalent net interest income rose to $5.86 billion in 2022, compared with $3.84 billion in 2021. Average loans outstanding were $119.3 billion for the year ended December 31, 2022, compared with $96.6 billion in 2021. Taxable-equivalent net interest income and average loans outstanding in 2022 reflect three quarters of additional earning assets, including loans, obtained in the acquisition of People's United. Reflecting actions taken by the Federal Reserve to increase interest rates in the recent year, the net interest margin increased 63 basis points to 3.39% in 2022 from 2.76% in 2021.

Taxable-equivalent Net Interest Income
														Change 4Q22 vs.
($ in millions)		4Q22				4Q21				3Q22				4Q21				3Q22
Average earning assets		$	179,914			$	144,420			$	182,382				25	%			-1	%
Net interest income ̶  taxable-equivalent		$	1,841			$	937			$	1,691				96	%			9	%
Net interest margin			4.06	%			2.58	%			3.68	%

 

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Provision for Credit Losses/Asset Quality. The provision for credit losses was $90 million in the fourth quarter of 2022 and $115 million in the third quarter of 2022, compared with a $15 million recapture of provision in the fourth quarter of 2021. The provision for credit losses was $517 million for the year ended December 31, 2022, compared with a $75 million recapture of provision in 2021. As previously described, included in the second quarter of 2022 was the $242 million provision, recorded in accordance with GAAP, related to loans obtained in the People’s United acquisition that were considered non-PCD. In addition to that merger-related provision, M&T recorded a provision for credit losses of $275 million in 2022. Net loan charge-offs were $40 million in the fourth quarter of 2022, $31 million in the fourth quarter of 2021 and $63 million in 2022’s third quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .12% and .13% in the fourth quarters of 2022 and 2021, respectively, and .20% in the third quarter of 2022. Net loan charge-offs during all of 2022 and 2021 aggregated $160 million and $192 million, respectively, representing .13% and .20%, respectively, of average loans outstanding.

Loans classified as nonaccrual totaled $2.44 billion at December 31, 2022, $2.43 billion at September 30, 2022 and $2.06 billion at December 31, 2021. The balance of nonaccrual loans at the end of the two most recent quarters as compared with December 31, 2021 reflects loans obtained in the acquisition of People’s United. Nonaccrual loans as a percentage of total loans were 1.85% at December 31, 2022, improved from 2.22% a year earlier and 1.89% at September 30, 2022. Assets taken in foreclosure of defaulted loans were $41 million at December 31, 2022, $24 million at December 31, 2021 and $37 million at September 30, 2022.

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 and reflecting the impact of loan growth, the allowance for credit losses totaled $1.93 billion or 1.46% of loans outstanding at December 31, 2022 compared with $1.47 billion or 1.58% of loans outstanding at December 31, 2021 and $1.88 billion or 1.46% at September 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.

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Asset Quality Metrics
														Change 4Q22 vs.
($ in millions)		4Q22				4Q21				3Q22				4Q21				3Q22
At end of quarter
Nonaccrual loans		$	2,439			$	2,060			$	2,429				18	%			—
Real estate and other foreclosed assets		$	41			$	24			$	37				73	%			12	%
Total nonperforming assets		$	2,480			$	2,084			$	2,466				19	%			1	%
Accruing loans past due 90 days or more (1)		$	491			$	963			$	477				-49	%			3	%
Nonaccrual loans as % of loans outstanding			1.85	%			2.22	%			1.89	%
Allowance for credit losses		$	1,925			$	1,469			$	1,876				31	%			3	%
Allowance for credit losses as % of loans outstanding			1.46	%			1.58	%			1.46	%
For the period
Provision for credit losses		$	90			$	(15	)		$	115				—				-22	%
Net charge-offs		$	40			$	31			$	63				31	%			-36	%
Net charge-offs as % of average loans (annualized)			.12	%			.13	%			.20	%

 

Noninterest Income and Expense. Noninterest income totaled $682 million in the fourth quarter of 2022, compared with $579 million in the year-earlier quarter. The increase reflects the impact of acquired operations from People's United (predominantly increases in trust income, credit-related fees and service charges on deposit accounts, net of conversion-related fee waivers) and higher trust income from legacy operations, as well as the $136 million gain recorded on the sale of MTIA. Those increases were partially offset by a decline in mortgage banking revenues resulting from lower volumes of residential and commercial mortgage loans originated for sale, lower income recorded from M&T's investment in Bayview Lending Group, and a planned reduction of insufficient funds fees reflected in service charges on deposit accounts. Noninterest income was $563 million in 2022’s third quarter. The comparative increase in the recent quarter was driven by the $136 million gain recorded on the sale of MTIA and higher trust income, partially offset by lower service charges on deposit accounts, credit-related fees, bank owned life insurance income and MTIA-related insurance revenues.

Noninterest Income
														Change 4Q22 vs.
($ in millions)		4Q22				4Q21				3Q22				4Q21				3Q22
Mortgage banking revenues		$	82			$	139			$	83				-41	%			-2	%
Service charges on deposit accounts			106				105				115				—				-8	%
Trust income			195				169				187				15	%			4	%
Brokerage services income			22				19				21				19	%			7	%
Trading account and non-hedging derivative gains			14				6				5				133	%			176	%
Gain (loss) on bank investment securities			(4	)			2				(1	)			—				—
Other revenues from operations			267				139				153				92	%			74	%
Total		$	682			$	579			$	563				18	%			21	%

Noninterest income rose to $2.36 billion in 2022 from $2.17 billion in 2021. Acquired operations associated with the People's United acquisition (predominantly increases reflected in trust income, service charges on deposit accounts and other revenues from operations, including credit-related fees), the $136 million gain on sale of MTIA, and trust income from legacy operations were most impactful to the higher levels of noninterest

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income in 2022. Those increases were partially offset by lower mortgage banking revenues and the planned reduction of fees reflected in service charges on deposit accounts.

In December 2022, Wilmington Trust National Association (a subsidiary of M&T) announced the sale of its Collective Investment Trust business to a private equity firm. That sale is expected to close in the first half of 2023. Trust income associated with this business totaled approximately $165 million and $151 million in 2022 and 2021, respectively. After considering expenses, the results of operations of that business were not material to M&T's net income in either year.

Noninterest expense totaled $1.41 billion in the fourth quarter of 2022, compared with $928 million in the similar quarter of 2021 and $1.28 billion in the third 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 $1.35 billion in the recent quarter, $904 million in the fourth quarter of 2021 and $1.21 billion in 2022’s third quarter. The higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was predominantly due to the impact of operations obtained in the People’s United acquisition and the $135 million contribution to The M&T Charitable Foundation. The charitable contribution was the largest factor contributing to higher operating expenses in 2022's fourth quarter as compared with 2022's third quarter. Higher expenses in the recent quarter as compared with the third quarter of 2022 for equipment and net occupancy, outside data processing and software and a seasonal increase in advertising and promotional spending were offset by a decline in salaries and employee benefits expenses, reflecting lower employee staffing levels following the conversion of People's United's operating systems with those of M&T and one less pay day in the fourth quarter.

 

Noninterest Expense
														Change 4Q22 vs.
($ in millions)		4Q22				4Q21				3Q22				4Q21				3Q22
Salaries and employee benefits		$	697			$	515			$	736				35	%			-5	%
Equipment and net occupancy			137				83				127				65	%			8	%
Outside data processing and software			108				79				95				37	%			13	%
FDIC assessments			24				19				28				27	%			-15	%
Advertising and marketing			32				21				21				54	%			53	%
Printing, postage and supplies			15				8				15				85	%			2	%
Amortization of core deposit and other intangible assets			18				2				18				801	%			-4	%
Other costs of operations			377				201				239				88	%			58	%
Total		$	1,408			$	928			$	1,279				52	%			10	%

For the year ended December 31, 2022, noninterest expense was $5.05 billion compared with $3.61 billion in 2021. Noninterest operating expenses aggregated $4.66 billion in 2022 and $3.56 billion in 2021. The higher level of operating expenses in 2022 was predominantly the result of the acquisition of People's United, as well as higher salaries and employee benefits expense reflecting increased staffing levels, merit increases and incentive compensation, and increased contributions to The M&T Charitable Foundation.

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The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.3% in the fourth quarter of 2022, 59.7% in the year-earlier quarter and 53.6% in the third quarter of 2022. The efficiency ratio for the full-year 2022 was 56.6%, compared with 59.0% in 2021.

Balance Sheet. M&T had total assets of $200.7 billion at December 31, 2022, compared with $155.1 billion and $198.0 billion at December 31, 2021 and September 30, 2022, respectively. Loans and leases, net of unearned discount, were $131.6 billion at December 31, 2022, compared with $92.9 billion at December 31, 2021 and $128.2 billion at September 30, 2022. The higher level of loans and leases at the recent quarter-end and September 30, 2022 as compared with December 31, 2021 is largely a reflection of balances associated with the acquisition of People’s United. Also reflective of that acquisition, total deposits were $163.5 billion at the recent quarter-end and $163.8 billion at September 30, 2022, compared with $131.5 billion at December 31, 2021.

Total shareholders' equity was $25.3 billion or 12.61% of total assets at December 31, 2022, $17.9 billion or 11.54% at December 31, 2021 and $25.3 billion or 12.76% at September 30, 2022. Common shareholders' equity was $23.3 billion, or $137.68 per share, at December 31, 2022, compared with $16.2 billion, or $125.51 per share, a year-earlier and $23.2 billion, or $134.45 per share, at September 30, 2022. Tangible equity per common share was $86.59 at December 31, 2022, $89.80 at December 31, 2021 and $84.28 at September 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 10.4% at December 31, 2022, compared with 10.7% three months earlier and 11.4% at December 31, 2021.

In accordance with its capital plan, M&T repurchased 3,664,887 shares of its common stock during the recent quarter at an average cost per share of $163.72 resulting in a total cost of $600 million compared with 3,282,449 shares at an average cost per share of $182.79 and total cost of $600 million in the previous three months. M&T repurchased a total of 10,453,282 shares at an average cost per share of $172.19 and total cost of $1.8 billion in 2022. No share repurchases occurred in 2021. Common shares issued in conjunction with the acquisition of People's United on April 1, 2022 totaled 50,325,004.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth 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 #MTBQ422. 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 January 26, 2023 by calling (800) 283-8486, or (402) 220-0869 for international

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participants. No conference ID or passcode 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.

M&T was recognized as one of the Best Places to Work for Disability Inclusion for the fourth consecutive year by the American Association of People with Disabilities ("AADP") and Disability:IN, a nonprofit resource for businesspeople with disabilities. M&T earned the top score in the 2022 Disability Equality Index ("DEI"), a benchmarking report developed by the AAPD and Disability:IN to help businesses identify steps they can take to achieve disability inclusion and equality in their workplaces.

M&T Bank launched a second Multicultural Small Business Innovation Lab in Buffalo, New York following its success in Bridgeport, Connecticut and Harrisburg, Pennsylvania earlier in the year. The seven-week program is designed to help local multicultural business owners thrive, grow and pursue new ideas by providing guidance and skills to expand and operate their businesses. It is part of M&T Bank's mission to build a culturally fluent bank that understands the needs of the communities it serves and provide the resources to address those needs. Similar programs will be launched in New York City and Baltimore, Maryland in the first half of 2023.

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.

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, including economic conditions, 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. 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

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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; economic conditions including inflation and market volatility; 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; 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.

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

 

---

10-10-10-10-10

M&T BANK CORPORATION

 

Financial Highlights

 

	Three months ended												Year ended
	December 31												December 31
Amounts in thousands, except per share	2022				2021				Change				2022				2021				Change
Performance
Net income	$	765,371				457,968				67	%		$	1,991,663				1,858,746				7	%
Net income available to common shareholders		739,126				434,171				70	%			1,891,480				1,776,987				6	%
Per common share:
Basic earnings	$	4.32				3.37				28	%		$	11.59				13.81				-16	%
Diluted earnings		4.29				3.37				27	%			11.53				13.80				-16	%
Cash dividends	$	1.20				1.20				—			$	4.80				4.50				7	%
Common shares outstanding:
Average - diluted (1)		172,149				128,888				34	%			164,030				128,812				27	%
Period end (2)		169,285				128,705				32	%			169,285				128,705				32	%
Return on (annualized):
Average total assets		1.53	%			1.15	%							1.05	%			1.22	%
Average common shareholders' equity		12.59	%			10.91	%							8.67	%			11.54	%
Taxable-equivalent net interest income	$	1,840,759				937,356				96	%		$	5,861,128				3,839,509				53	%
Yield on average earning assets		4.60	%			2.64	%							3.64	%			2.84	%
Cost of interest-bearing liabilities		.98	%			.12	%							.45	%			.14	%
Net interest spread		3.62	%			2.52	%							3.19	%			2.70	%
Contribution of interest-free funds		.44	%			.06	%							.20	%			.06	%
Net interest margin		4.06	%			2.58	%							3.39	%			2.76	%
Net charge-offs to average total net loans (annualized)		.12	%			.13	%							.13	%			.20	%
Net operating results (3)
Net operating income	$	812,359				475,477				71	%		$	2,466,010				1,899,838				30	%
Diluted net operating earnings per common share		4.57				3.50				31	%			14.42				14.11				2	%
Return on (annualized):
Average tangible assets		1.70	%			1.23	%							1.35	%			1.28	%
Average tangible common equity		21.29	%			15.98	%							16.70	%			16.80	%
Efficiency ratio		53.3	%			59.7	%							56.6	%			59.0	%
	At December 31
Loan quality	2022				2021				Change
Nonaccrual loans	$	2,438,435				2,060,083				18	%
Real estate and other foreclosed assets		41,375				23,901				73	%
Total nonperforming assets	$	2,479,810				2,083,984				19	%
Accruing loans past due 90 days or more (4)	$	491,018				963,399				-49	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	43,536				51,429				-15	%
Accruing loans past due 90 days or more		363,409				927,788				-61	%
Renegotiated loans	$	422,186				230,408				83	%
Nonaccrual loans to total net loans		1.85	%			2.22	%
Allowance for credit losses to total loans		1.46	%			1.58	%

 

(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

 

Financial Highlights, Five Quarter Trend

 

	Three months ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Amounts in thousands, except per share	2022				2022				2022				2022				2021
Performance
Net income	$	765,371				646,596				217,522				362,174				457,968
Net income available to common shareholders		739,126				620,554				192,236				339,590				434,171
Per common share:
Basic earnings	$	4.32				3.55				1.08				2.63				3.37
Diluted earnings		4.29				3.53				1.08				2.62				3.37
Cash dividends	$	1.20				1.20				1.20				1.20				1.20
Common shares outstanding:
Average - diluted (1)		172,149				175,682				178,277				129,416				128,888
Period end (2)		169,285				172,900				175,969				129,080				128,705
Return on (annualized):
Average total assets		1.53	%			1.28	%			.42	%			.97	%			1.15	%
Average common shareholders' equity		12.59	%			10.43	%			3.21	%			8.55	%			10.91	%
Taxable-equivalent net interest income	$	1,840,759				1,690,518				1,422,443				907,408				937,356
Yield on average earning assets		4.60	%			3.90	%			3.12	%			2.72	%			2.64	%
Cost of interest-bearing liabilities		.98	%			.41	%			.20	%			.13	%			.12	%
Net interest spread		3.62	%			3.49	%			2.92	%			2.59	%			2.52	%
Contribution of interest-free funds		.44	%			.19	%			.09	%			.06	%			.06	%
Net interest margin		4.06	%			3.68	%			3.01	%			2.65	%			2.58	%
Net charge-offs to average total net loans (annualized)		.12	%			.20	%			.16	%			.03	%			.13	%
Net operating results (3)
Net operating income	$	812,359				700,030				577,622				375,999				475,477
Diluted net operating earnings per common share		4.57				3.83				3.10				2.73				3.50
Return on (annualized):
Average tangible assets		1.70	%			1.44	%			1.16	%			1.04	%			1.23	%
Average tangible common equity		21.29	%			17.89	%			14.41	%			12.44	%			15.98	%
Efficiency ratio		53.3	%			53.6	%			58.3	%			64.9	%			59.7	%
	December 31,				September 30,				June 30,				March 31,				December 31,
Loan quality	2022				2022				2022				2022				2021
Nonaccrual loans	$	2,438,435				2,429,326				2,633,005				2,134,231				2,060,083
Real estate and other foreclosed assets		41,375				37,031				28,692				23,524				23,901
Total nonperforming assets	$	2,479,810				2,466,357				2,661,697				2,157,755				2,083,984
Accruing loans past due 90 days or more (4)	$	491,018				476,503				523,662				776,751				963,399
Government guaranteed loans included in totals above:
Nonaccrual loans	$	43,536				44,797				46,937				46,151				51,429
Accruing loans past due 90 days or more		363,409				423,371				467,834				689,831				927,788
Renegotiated loans	$	422,186				356,797				276,584				242,108				230,408
Nonaccrual loans to total net loans		1.85	%			1.89	%			2.05	%			2.32	%			2.22	%
Allowance for credit losses to total loans		1.46	%			1.46	%			1.42	%			1.60	%			1.58	%

 

(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 18.

(4) Predominantly residential real estate loans.

---

12-12-12-12-12

M&T BANK CORPORATION

 

Condensed Consolidated Statement of Income

 

		Three months ended												Year ended
		December 31												December 31
Dollars in thousands		2022				2021				Change				2022				2021				Change
Interest income		$	2,072,209				958,518				116	%		$	6,247,120				3,938,784				59	%
Interest expense			244,835				24,725				890				425,164				114,006				273
Net interest income			1,827,374				933,793				96				5,821,956				3,824,778				52
Provision for credit losses			90,000				(15,000	)			—				517,000				(75,000	)			—
Net interest income after provision for credit losses			1,737,374				948,793				83				5,304,956				3,899,778				36
Other income
Mortgage banking revenues			81,521				139,267				-41				356,636				571,329				-38
Service charges on deposit accounts			105,714				105,392				—				446,604				402,113				11
Trust income			194,843				168,827				15				740,717				644,716				15
Brokerage services income			22,463				18,923				19				87,877				62,791				40
Trading account and non-hedging      derivative gains			14,043				6,027				133				26,786				24,376				10
Gain (loss) on bank investment securities			(3,773	)			1,426				—				(5,686	)			(21,220	)			—
Other revenues from operations			266,726				138,775				92				703,669				482,889				46
Total other income			681,537				578,637				18				2,356,603				2,166,994				9
Other expense
Salaries and employee benefits			697,276				515,043				35				2,787,351				2,045,677				36
Equipment and net occupancy			136,732				82,641				65				474,316				326,698				45
Outside data processing and software			107,886				78,814				37				376,493				291,839				29
FDIC assessments			24,008				18,830				27				90,274				69,704				30
Advertising and marketing			32,691				21,228				54				90,748				64,428				41
Printing, postage and supplies			15,082				8,140				85				55,570				36,507				52
Amortization of core deposit and other      intangible assets			17,600				1,954				801				55,624				10,167				447
Other costs of operations			377,013				200,850				88				1,120,060				766,603				46
Total other expense			1,408,288				927,500				52				5,050,436				3,611,623				40
Income before income taxes			1,010,623				599,930				68				2,611,123				2,455,149				6
Applicable income taxes			245,252				141,962				73				619,460				596,403				4
Net income		$	765,371				457,968				67	%		$	1,991,663				1,858,746				7	%

 

---

13-13-13-13-13

M&T BANK CORPORATION

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
		December 31,				September 30,				June 30,				March 31,				December 31,
Dollars in thousands		2022				2022				2022				2022				2021
Interest income		$	2,072,209				1,781,513				1,465,142				928,256				958,518
Interest expense			244,835				102,822				53,425				24,082				24,725
Net interest income			1,827,374				1,678,691				1,411,717				904,174				933,793
Provision for credit losses			90,000				115,000				302,000				10,000				(15,000	)
Net interest income after provision for credit losses			1,737,374				1,563,691				1,109,717				894,174				948,793
Other income
Mortgage banking revenues			81,521				83,041				82,926				109,148				139,267
Service charges on deposit accounts			105,714				115,213				124,170				101,507				105,392
Trust income			194,843				186,577				190,084				169,213				168,827
Brokerage services income			22,463				21,086				24,138				20,190				18,923
Trading account and non-hedging      derivative gains			14,043				5,081				2,293				5,369				6,027
Gain (loss) on bank investment securities			(3,773	)			(1,108	)			(62	)			(743	)			1,426
Other revenues from operations			266,726				153,189				147,551				136,203				138,775
Total other income			681,537				563,079				571,100				540,887				578,637
Other expense
Salaries and employee benefits			697,276				736,354				776,201				577,520				515,043
Equipment and net occupancy			136,732				127,117				124,655				85,812				82,641
Outside data processing and software			107,886				95,068				93,820				79,719				78,814
FDIC assessments			24,008				28,105				22,585				15,576				18,830
Advertising and marketing			32,691				21,398				20,635				16,024				21,228
Printing, postage and supplies			15,082				14,768				15,570				10,150				8,140
Amortization of core deposit and other      intangible assets			17,600				18,384				18,384				1,256				1,954
Other costs of operations			377,013				238,059				331,304				173,684				200,850
Total other expense			1,408,288				1,279,253				1,403,154				959,741				927,500
Income before income taxes			1,010,623				847,517				277,663				475,320				599,930
Applicable income taxes			245,252				200,921				60,141				113,146				141,962
Net income		$	765,371				646,596				217,522				362,174				457,968

 

---

14-14-14-14-14

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet

 

		December 31
Dollars in thousands		2022				2021				Change
ASSETS
Cash and due from banks		$	1,517,244				1,337,577				13		%
Interest-bearing deposits at banks			24,958,719				41,872,304				-40
Federal funds sold and agreements to resell securities			3,000				—				—
Trading account			117,847				49,745				137
Investment securities			25,210,871				7,155,860				252
Loans and leases:
Commercial, financial, etc.			41,850,566				23,473,324				78
Real estate - commercial			45,364,571				35,389,730				28
Real estate - consumer			23,755,947				16,074,445				48
Consumer			20,593,079				17,974,953				15
Total loans and leases, net of unearned discount			131,564,163				92,912,452				42
Less: allowance for credit losses			1,925,331				1,469,226				31
Net loans and leases			129,638,832				91,443,226				42
Goodwill			8,490,089				4,593,112				85
Core deposit and other intangible assets			209,374				3,998				—
Other assets			10,583,865				8,651,338				22
Total assets		$	200,729,841				155,107,160				29		%
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits		$	65,501,860				60,131,480				9		%
Interest-bearing deposits			98,013,008				71,411,929				37
Total deposits			163,514,868				131,543,409				24
Short-term borrowings			3,554,951				47,046				—
Accrued interest and other liabilities			4,377,495				2,127,931				106
Long-term borrowings			3,964,537				3,485,369				14
Total liabilities			175,411,851				137,203,755				28
Shareholders' equity:
Preferred			2,010,600				1,750,000				15
Common			23,307,390				16,153,405				44
Total shareholders' equity			25,317,990				17,903,405				41
Total liabilities and shareholders' equity		$	200,729,841				155,107,160				29		%

 

 

---

15-15-15-15-15

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

	December 31,				September 30,				June 30,				March 31,				December 31,
Dollars in thousands	2022				2022				2022				2022				2021
ASSETS
Cash and due from banks	$	1,517,244				2,255,810				1,688,274				1,411,460				1,337,577
Interest-bearing deposits at banks		24,958,719				25,391,528				33,437,454				36,025,382				41,872,304
Federal funds sold and agreements to resell      securities		3,000				—				250,250				—				—
Trading account		117,847				129,672				133,855				46,854				49,745
Investment securities		25,210,871				24,603,765				22,801,717				9,356,832				7,155,860
Loans and leases:
Commercial, financial, etc.		41,850,566				38,807,949				39,108,676				23,496,017				23,473,324
Real estate - commercial		45,364,571				46,138,665				46,795,139				34,553,558				35,389,730
Real estate - consumer		23,755,947				23,074,280				22,767,107				15,595,879				16,074,445
Consumer		20,593,079				20,204,693				19,815,198				18,162,938				17,974,953
Total loans and leases, net of unearned discount		131,564,163				128,225,587				128,486,120				91,808,392				92,912,452
Less: allowance for credit losses		1,925,331				1,875,591				1,823,790				1,472,359				1,469,226
Net loans and leases		129,638,832				126,349,996				126,662,330				90,336,033				91,443,226
Goodwill		8,490,089				8,501,357				8,501,357				4,593,112				4,593,112
Core deposit and other intangible assets		209,374				226,974				245,358				2,742				3,998
Other assets		10,583,865				10,496,377				10,312,294				8,091,137				8,651,338
Total assets	$	200,729,841				197,955,479				204,032,889				149,863,552				155,107,160
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	65,501,860				73,023,271				72,375,515				58,520,366				60,131,480
Interest-bearing deposits		98,013,008				90,822,117				97,982,881				67,798,347				71,411,929
Total deposits		163,514,868				163,845,388				170,358,396				126,318,713				131,543,409
Short-term borrowings		3,554,951				917,806				1,119,321				50,307				47,046
Accrued interest and other liabilities		4,377,495				4,476,456				3,743,278				2,174,925				2,127,931
Long-term borrowings		3,964,537				3,459,336				3,017,363				3,443,587				3,485,369
Total liabilities		175,411,851				172,698,986				178,238,358				131,987,532				137,203,755
Shareholders' equity:
Preferred		2,010,600				2,010,600				2,010,600				1,750,000				1,750,000
Common		23,307,390				23,245,893				23,783,931				16,126,020				16,153,405
Total shareholders' equity		25,317,990				25,256,493				25,794,531				17,876,020				17,903,405
Total liabilities and shareholders' equity	$	200,729,841				197,955,479				204,032,889				149,863,552				155,107,160

 

---

16-16-16-16-16

M&T BANK CORPORATION

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 

 

		Three months ended																								Change in balance								Year ended
		December 31,								December 31,								September 30,								December 31, 2022 from								December 31,																Change
Dollars in millions		2022								2021								2022								December 31,				September 30,				2022								2021								in
		Balance				Rate				Balance				Rate				Balance				Rate				2021				2022				Balance				Rate				Balance				Rate				balance
ASSETS
Interest-bearing deposits at banks		$	25,089				3.75		%		44,316				.15		%		30,752				2.23		%		-43		%		-18		%	$	33,435				1.52		%		35,829				.13		%		-7		%
Federal funds sold and agreements to resell       securities			—				4.32				—				.47				29				.55				—				-99				70				.43				167				.12				-58
Trading account			122				2.13				50				1.62				131				1.78				144				-7				109				1.49				50				1.89				119
Investment securities			25,297				2.77				6,804				2.12				23,945				2.62				272				6				19,897				2.59				6,409				2.20				210
Loans and leases, net of unearned discount
Commercial, financial, etc.			40,038				5.76				22,330				3.65				38,321				4.87				79				4				34,926				4.68				25,191				3.58				39
Real estate - commercial			45,690				5.06				36,717				3.89				46,282				4.49				24				-1				43,576				4.35				37,321				3.96				17
Real estate - consumer			23,334				3.92				16,290				3.53				22,962				3.84				43				2				21,257				3.75				16,770				3.55				27
Consumer			20,344				5.28				17,913				4.31				19,960				4.76				14				2				19,538				4.65				17,331				4.43				13
Total loans and leases, net			129,406				5.12				93,250				3.87				127,525				4.55				39				1				119,297				4.41				96,613				3.90				23
Total earning assets			179,914				4.60				144,420				2.64				182,382				3.90				25				-1				172,808				3.64				139,068				2.84				24
Goodwill			8,494								4,593								8,501								85				—				7,537								4,593								64
Core deposit and other intangible assets			218								5								236								—				-8				179								8								—
Other assets			9,966								8,704								10,012								14				—				9,728								9,000								8
Total assets		$	198,592								157,722								201,131								26		%		-1		%	$	190,252								152,669								25		%
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking deposits		$	87,068				.76				70,518				.04				89,360				.31				23		%		-3		%	$	84,753				.32				70,879				.05				20		%
Time deposits			6,182				1.29				2,914				.40				5,050				.09				112				22				4,850				.49				3,263				.57				49
Deposits at Cayman Islands office			—				—				—				—				—				—				—				—				—				—				181				.11				-100
Total interest-bearing deposits			93,250				.80				73,432				.05				94,410				.29				27				-1				89,603				.33				74,323				.07				21
Short-term borrowings			1,632				3.24				58				.01				913				1.16				—				79				936				2.08				68				.01				—
Long-term borrowings			3,753				4.65				3,441				1.77				3,281				3.67				9				14				3,440				3.23				3,537				1.76				-3
Total interest-bearing liabilities			98,635				.98				76,931				.12				98,604				.41				28				—				93,979				.45				77,928				.14				21
Noninterest-bearing deposits			70,218								61,012								72,861								15				-4				68,888								55,666								24
Other liabilities			4,393								2,166								4,001								103				10				3,575								2,166								65
Total liabilities			173,246								140,109								175,466								24				-1				166,442								135,760								23
Shareholders' equity			25,346								17,613								25,665								44				-1				23,810								16,909								41
Total liabilities and shareholders' equity		$	198,592								157,722								201,131								26		%		-1		%	$	190,252								152,669								25		%
Net interest spread							3.62								2.52								3.49																3.19								2.70
Contribution of interest-free funds							.44								.06								.19																.20								.06
Net interest margin							4.06		%						2.58		%						3.68		%														3.39		%						2.76		%

 

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17-17-17-17-17

M&T BANK CORPORATION

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended								Year ended
		December 31								December 31
		2022				2021				2022				2021
Income statement data
In thousands, except per share
Net income
Net income		$	765,371				457,968				1,991,663				1,858,746
Amortization of core deposit and other intangible assets (1)			13,559				1,447				42,771				7,532
Merger-related expenses (1)			33,429				16,062				431,576				33,560
Net operating income		$	812,359				475,477				2,466,010				1,899,838
Earnings per common share
Diluted earnings per common share		$	4.29				3.37				11.53				13.80
Amortization of core deposit and other intangible assets (1)			.08				.01				.26				.06
Merger-related expenses (1)			.20				.12				2.63				.25
Diluted net operating earnings per common share		$	4.57				3.50				14.42				14.11
Other expense
Other expense		$	1,408,288				927,500				5,050,436				3,611,623
Amortization of core deposit and other intangible assets			(17,600	)			(1,954	)			(55,624	)			(10,167	)
Merger-related expenses			(45,113	)			(21,190	)			(338,321	)			(43,860	)
Noninterest operating expense		$	1,345,575				904,356				4,656,491				3,557,596
Merger-related expenses
Salaries and employee benefits		$	3,670				112				102,150				176
Equipment and net occupancy			2,294				340				6,709				341
Outside data processing and software			2,193				250				5,438				1,119
Advertising and marketing			5,258				337				9,262				866
Printing, postage and supplies			2,953				186				6,786				2,965
Other costs of operations			28,745				19,965				207,976				38,393
Other expense			45,113				21,190				338,321				43,860
Provision for credit losses			—				—				242,000				—
Total		$	45,113				21,190				580,321				43,860
Efficiency ratio
Noninterest operating expense (numerator)		$	1,345,575				904,356				4,656,491				3,557,596
Taxable-equivalent net interest income		$	1,840,759				937,356				5,861,128				3,839,509
Other income			681,537				578,637				2,356,603				2,166,994
Less: Gain (loss) on bank investment securities			(3,773	)			1,426				(5,686	)			(21,220	)
Denominator		$	2,526,069				1,514,567				8,223,417				6,027,723
Efficiency ratio			53.3	%			59.7	%			56.6	%			59.0	%
Balance sheet data
In millions
Average assets
Average assets		$	198,592				157,722				190,252				152,669
Goodwill			(8,494	)			(4,593	)			(7,537	)			(4,593	)
Core deposit and other intangible assets			(218	)			(5	)			(179	)			(8	)
Deferred taxes			54				1				43				2
Average tangible assets		$	189,934				153,125				182,579				148,070
Average common equity
Average total equity		$	25,346				17,613				23,810				16,909
Preferred stock			(2,011	)			(1,750	)			(1,946	)			(1,438	)
Average common equity			23,335				15,863				21,864				15,471
Goodwill			(8,494	)			(4,593	)			(7,537	)			(4,593	)
Core deposit and other intangible assets			(218	)			(5	)			(179	)			(8	)
Deferred taxes			54				1				43				2
Average tangible common equity		$	14,677				11,266				14,191				10,872
At end of quarter
Total assets
Total assets		$	200,730				155,107
Goodwill			(8,490	)			(4,593	)
Core deposit and other intangible assets			(209	)			(4	)
Deferred taxes			51				1
Total tangible assets		$	192,082				150,511
Total common equity
Total equity		$	25,318				17,903
Preferred stock			(2,011	)			(1,750	)
Common equity			23,307				16,153
Goodwill			(8,490	)			(4,593	)
Core deposit and other intangible assets			(209	)			(4	)
Deferred taxes			51				1
Total tangible common equity		$	14,659				11,557

 

(1) After any related tax effect.

 

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18-18-18-18-18

M&T BANK CORPORATION

 

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

 

		Three months ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2022				2022				2022				2022				2021
Income statement data
In thousands, except per share
Net income
Net income		$	765,371				646,596				217,522				362,174				457,968
Amortization of core deposit and other intangible assets (1)			13,559				14,141				14,138				933				1,447
Merger-related expenses (1)			33,429				39,293				345,962				12,892				16,062
Net operating income		$	812,359				700,030				577,622				375,999				475,477
Earnings per common share
Diluted earnings per common share		$	4.29				3.53				1.08				2.62				3.37
Amortization of core deposit and other intangible assets (1)			.08				.08				.08				.01				.01
Merger-related expenses (1)			.20				.22				1.94				.10				.12
Diluted net operating earnings per common share		$	4.57				3.83				3.10				2.73				3.50
Other expense
Other expense		$	1,408,288				1,279,253				1,403,154				959,741				927,500
Amortization of core deposit and other intangible assets			(17,600	)			(18,384	)			(18,384	)			(1,256	)			(1,954	)
Merger-related expenses			(45,113	)			(53,027	)			(222,809	)			(17,372	)			(21,190	)
Noninterest operating expense		$	1,345,575				1,207,842				1,161,961				941,113				904,356
Merger-related expenses
Salaries and employee benefits		$	3,670				13,094				85,299				87				112
Equipment and net occupancy			2,294				2,106				502				1,807				340
Outside data processing and software			2,193				2,277				716				252				250
Advertising and marketing			5,258				2,177				1,199				628				337
Printing, postage and supplies			2,953				651				2,460				722				186
Other costs of operations			28,745				32,722				132,633				13,876				19,965
Other expense			45,113				53,027				222,809				17,372				21,190
Provision for credit losses			—				—				242,000				—				—
Total		$	45,113				53,027				464,809				17,372				21,190
Efficiency ratio
Noninterest operating expense (numerator)		$	1,345,575				1,207,842				1,161,961				941,113				904,356
Taxable-equivalent net interest income		$	1,840,759				1,690,518				1,422,443				907,408				937,356
Other income			681,537				563,079				571,100				540,887				578,637
Less: Gain (loss) on bank investment securities			(3,773	)			(1,108	)			(62	)			(743	)			1,426
Denominator		$	2,526,069				2,254,705				1,993,605				1,449,038				1,514,567
Efficiency ratio			53.3	%			53.6	%			58.3	%			64.9	%			59.7	%
Balance sheet data
In millions
Average assets
Average assets		$	198,592				201,131				208,865				151,648				157,722
Goodwill			(8,494	)			(8,501	)			(8,501	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(218	)			(236	)			(254	)			(3	)			(5	)
Deferred taxes			54				56				60				1				1
Average tangible assets		$	189,934				192,450				200,170				147,053				153,125
Average common equity
Average total equity		$	25,346				25,665				26,090				17,894				17,613
Preferred stock			(2,011	)			(2,011	)			(2,011	)			(1,750	)			(1,750	)
Average common equity			23,335				23,654				24,079				16,144				15,863
Goodwill			(8,494	)			(8,501	)			(8,501	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(218	)			(236	)			(254	)			(3	)			(5	)
Deferred taxes			54				56				60				1				1
Average tangible common equity		$	14,677				14,973				15,384				11,549				11,266
At end of quarter
Total assets
Total assets		$	200,730				197,955				204,033				149,864				155,107
Goodwill			(8,490	)			(8,501	)			(8,501	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(209	)			(227	)			(245	)			(3	)			(4	)
Deferred taxes			51				54				57				1				1
Total tangible assets		$	192,082				189,281				195,344				145,269				150,511
Total common equity
Total equity		$	25,318				25,256				25,795				17,876				17,903
Preferred stock			(2,011	)			(2,011	)			(2,011	)			(1,750	)			(1,750	)
Common equity			23,307				23,245				23,784				16,126				16,153
Goodwill			(8,490	)			(8,501	)			(8,501	)			(4,593	)			(4,593	)
Core deposit and other intangible assets			(209	)			(227	)			(245	)			(3	)			(4	)
Deferred taxes			51				54				57				1				1
Total tangible common equity		$	14,659				14,571				15,095				11,531				11,557

 

(1) After any related tax effect.

 

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