8-K
0000036270false0000036270mtb:SeriesHFixedToFloatingRateNonCumulativePerpetualPreferredStockMember2023-10-182023-10-1800000362702023-10-182023-10-180000036270us-gaap:CommonStockMember2023-10-182023-10-18

 

 

 

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 18, 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.

 

 


 

Item 2.02. Results of Operations and Financial Condition.

On October 18, 2023, M&T Bank Corporation (“M&T”) announced its results of operations for the quarter ended September 30, 2023. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99.1 hereto.

The information in this Form 8-K, including Exhibit 99.1 attached hereto, is being furnished 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 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 18, 2023.

 

104

 

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

2


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

M&T BANK CORPORATION

 

 

Date: October 18, 2023

By:

/s/ Daryl N. Bible

 

 

Daryl N. Bible

 

 

Senior Executive Vice President

and Chief Financial Officer

 

3


EX-99.1

Exhibit 99.1

 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_0.jpg 

 One M&T Plaza, Buffalo, NY 14203

News Release

October 18, 2023

 

 

M&T Bank Corporation (NYSE:MTB) announces third quarter 2023 results

M&T Bank Corporation ("M&T" or "the Company") reports net income of $690 million or $3.98 of diluted earnings per common share.

 

(Dollars in millions, except per share data)

 

3Q23

 

2Q23

 

3Q22

 

 

 Earnings Highlights

 

Net interest income

 

$

1,775

 

 

$

1,799

 

 

$

1,679

 

Taxable-equivalent adjustment

 

 

15

 

 

 

14

 

 

 

12

 

Net interest income - taxable-equivalent

 

 

1,790

 

 

 

1,813

 

 

 

1,691

 

Provision for credit losses

 

 

150

 

 

 

150

 

 

 

115

 

Noninterest income

 

 

560

 

 

 

803

 

 

 

563

 

Noninterest expense

 

 

1,278

 

 

 

1,293

 

 

 

1,279

 

Net income

 

 

690

 

 

 

867

 

 

 

647

 

Net income available to common shareholders - diluted

 

 

664

 

 

 

841

 

 

 

621

 

Diluted earnings per common share

 

 

3.98

 

 

 

5.05

 

 

 

3.53

 

Return on average assets - annualized

 

 

1.33

%

 

 

1.70

%

 

 

1.28

%

Return on average common shareholders' equity - annualized

 

 

10.99

%

 

 

14.27

%

 

 

10.43

%

 

 

 Average Balance Sheet

 

Total assets

 

$

205,791

 

 

$

204,376

 

 

$

201,131

 

Interest-bearing deposits at banks

 

 

26,657

 

 

 

23,617

 

 

 

30,752

 

Investment securities

 

 

27,993

 

 

 

28,623

 

 

 

23,945

 

Loans and leases, net of unearned discount

 

 

132,617

 

 

 

133,545

 

 

 

127,525

 

Deposits

 

 

162,688

 

 

 

159,399

 

 

 

167,271

 

Borrowings

 

 

12,585

 

 

 

15,055

 

 

 

4,194

 

 

 

 Selected Ratios

(Amounts expressed as a percent, except per share data)

 

Net interest margin

 

 

3.79

%

 

 

3.91

%

 

 

3.68

%

Efficiency ratio

 

 

53.7

 

 

 

48.9

 

 

 

53.6

 

Net charge-offs to average total loans - annualized

 

 

.29

 

 

 

.38

 

 

 

.20

 

Allowance for credit losses to total loans

 

 

1.55

 

 

 

1.50

 

 

 

1.46

 

Nonaccrual loans to total loans

 

 

1.77

 

 

 

1.83

 

 

 

1.89

 

Common equity Tier 1 ("CET1") capital ratio (1)

 

 

10.94

 

 

 

10.59

 

 

 

10.75

 

Common shareholders' equity per share

 

$

145.72

 

 

$

143.41

 

 

$

134.45

 

(1) September 30, 2023 CET1 capital ratio is estimated.

 

 Financial Highlights

 

Capital position remains strong with the CET1 capital ratio increasing 35 basis points to an estimated 10.94% at September 30, 2023, compared with 10.59% at June 30, 2023.
Net interest margin of 3.79% in the recent quarter narrowed from 3.91% in the second quarter of 2023 as increases to the rates paid on interest-bearing deposits outpaced the rise in yields on interest-earning assets.
Average loans and leases in the third quarter of 2023 decreased 1% from the previous 2023 quarter reflecting a $714 million decline in average commercial real estate loan balances.
The level of nonaccrual loans improved to 1.77% of loans outstanding at September 30, 2023, compared with 1.83% at June 30, 2023.
Recent quarter net charge-offs of $96 million, or 29 basis points, were below the Company's long-term average net charge-off rate.
Average deposits increased 2% from the second quarter of 2023 reflecting a higher demand for interest-bearing products.

 

 Chief Financial Officer Commentary

"The third quarter results reflect the stability of M&T's diverse banking franchise and the ability to consistently generate capital for our shareholders while continuing to invest in the systems and resources needed to best serve our customers. Our customer deposit balances increased in the recent quarter as we continue to build upon our strong liquidity position. Our credit metrics reflect a decline in nonaccrual loans and net charge-offs that remain below M&T's long-term average. The comparative strength of our financial position in the industry will continue to enable us to improve the communities in which we serve and the lives of our customers. Thank you to our employees for their commitment to delivering for our customers each and every day.”

- Daryl N. Bible, M&T's Chief Financial Officer

Contact:

Investor Relations: Brian Klock 716.842.5138

Media Relations: Frank Lentini 929.651.0447

 

 

 

 

 


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

 Non-GAAP Measures (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions, except per share data)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

$

702

 

 

$

879

 

 

 

-20

%

 

$

700

 

 

 

 

Diluted net operating earnings per common share

 

$

4.05

 

 

$

5.12

 

 

 

-21

%

 

$

3.83

 

 

 

6

%

Annualized return on average tangible assets

 

 

1.41

%

 

 

1.80

%

 

 

 

 

 

1.44

%

 

 

 

Annualized return on average tangible common equity

 

 

17.41

%

 

 

22.73

%

 

 

 

 

 

17.89

%

 

 

 

Efficiency ratio

 

 

53.7

%

 

 

48.9

%

 

 

 

 

 

53.6

%

 

 

 

Tangible equity per common share

 

$

93.99

 

 

$

91.58

 

 

 

3

%

 

$

84.28

 

 

 

12

%

 

(1)
A reconciliation of non-GAAP measures is included in the tables that accompany this release.

 

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.

Merger-related expenses associated with the People's United Financial, Inc. ("People's United") acquisition in 2022 generally consisted 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 and travel costs.
An initial provision for credit losses of $242 million in the second quarter of 2022 on loans not deemed to be purchased credit deteriorated ("PCD") on the April 1, 2022 acquisition date of People's United.

The amounts of merger-related expenses in 2022 are presented in the tables that accompany this release. No merger-related expenses were incurred in the nine months ended September 30, 2023.

 Taxable-equivalent Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

187,403

 

 

$

185,936

 

 

 

1

%

 

$

182,382

 

 

 

3

%

Average interest-bearing liabilities

 

$

121,388

 

 

$

118,274

 

 

 

3

%

 

$

98,604

 

 

 

23

%

Net interest income ̶  taxable-equivalent

 

$

1,790

 

 

$

1,813

 

 

 

-1

%

 

$

1,691

 

 

 

6

%

Yield on average earning assets

 

 

5.62

%

 

 

5.46

%

 

 

 

 

 

3.90

%

 

 

 

Cost of interest-bearing liabilities

 

 

2.83

%

 

 

2.43

%

 

 

 

 

 

0.41

%

 

 

 

Net interest spread

 

 

2.79

%

 

 

3.03

%

 

 

 

 

 

3.49

%

 

 

 

Net interest margin

 

 

3.79

%

 

 

3.91

%

 

 

 

 

 

3.68

%

 

 

 

 

2


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Taxable-equivalent net interest income decreased $23 million, or 1%, from the second quarter of 2023.

Average interest-bearing deposits increased $5.6 billion and the rates paid on such deposits rose 52 basis points.
Average short-term borrowings declined $2.2 billion.
The yield on average outstanding loans and leases increased 17 basis points.
Average interest-bearing deposits at banks increased $3.0 billion.

Taxable-equivalent net interest income increased $99 million, or 6%, compared with the year-earlier quarter.

Yields earned on average loans and leases and interest-bearing deposits at banks increased 164 basis points and 317 basis points, respectively.
Average loans and leases increased $5.1 billion.
Rates paid on interest-bearing deposits increased 225 basis points.
Average borrowings increased $8.4 billion.

 

Provision for Credit Losses/Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At end of quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

2,342

 

 

$

2,435

 

 

 

-4

%

 

$

2,429

 

 

 

-4

%

Real estate and other foreclosed assets

 

 

37

 

 

 

43

 

 

 

-13

%

 

 

37

 

 

 

 

Total nonperforming assets

 

$

2,379

 

 

$

2,478

 

 

 

-4

%

 

$

2,466

 

 

 

-4

%

Accruing loans past due 90 days or more (1)

 

$

354

 

 

$

380

 

 

 

-7

%

 

$

477

 

 

 

-26

%

Nonaccrual loans as % of loans outstanding

 

 

1.77

%

 

 

1.83

%

 

 

 

 

 

1.89

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

2,052

 

 

$

1,998

 

 

 

3

%

 

$

1,876

 

 

 

9

%

Allowance for credit losses as % of loans outstanding

 

 

1.55

%

 

 

1.50

%

 

 

 

 

 

1.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

$

150

 

 

$

150

 

 

 

 

 

$

115

 

 

 

30

%

Net charge-offs

 

$

96

 

 

$

127

 

 

 

-24

%

 

$

63

 

 

 

52

%

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

 

 

.29

%

 

 

.38

%

 

 

 

 

 

.20

%

 

 

 

 

(1)
Predominantly government-guaranteed residential real estate loans.

M&T recorded a provision for credit losses of $150 million in each of the third and second quarters of 2023 compared with $115 million in the third quarter of 2022. The comparatively higher provisions for credit losses in the most recent two quarters compared with the third quarter of 2022 reflect a softening of commercial real estate values. Net charge-offs totaled $96 million in 2023's third quarter, compared with $127 million in 2023's second quarter and $63 million in the year-earlier quarter reflective of variability in the timing and amount of commercial real estate charge-offs.

Nonaccrual loans were $2.34 billion at September 30, 2023, $94 million lower than June 30, 2023 and $87 million lower than September 30, 2022. Those declines are reflective of lower levels of hospitality-related commercial real estate nonaccrual loans.

3


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

 Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

Mortgage banking revenues

 

$

105

 

 

$

107

 

 

 

-2

%

 

$

83

 

 

 

26

%

Service charges on deposit accounts

 

 

121

 

 

 

119

 

 

 

2

%

 

 

115

 

 

 

5

%

Trust income

 

 

155

 

 

 

172

 

 

 

-10

%

 

 

187

 

 

 

-17

%

Brokerage services income

 

 

27

 

 

 

25

 

 

 

7

%

 

 

21

 

 

 

28

%

Trading account and non-hedging derivative gains

 

 

9

 

 

 

17

 

 

 

-44

%

 

 

5

 

 

 

85

%

Gain (loss) on bank investment securities

 

 

 

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

Other revenues from operations

 

 

143

 

 

 

362

 

 

 

-61

%

 

 

153

 

 

 

-7

%

Total

 

$

560

 

 

$

803

 

 

 

-30

%

 

$

563

 

 

 

-1

%

Noninterest income in the third quarter of 2023 decreased $244 million, or 30%, as compared with 2023's second quarter.

Other revenues from operations decreased $219 million reflecting a $225 million gain on sale of the Company's Collective Investment Trust ("CIT") business in the second quarter of 2023.
Trust income declined $17 million, predominantly reflective of one month of revenues associated with the CIT business recognized prior to its sale in the second quarter of 2023.
Trading account and non-hedging derivative gains decreased $7 million from the second quarter due to a decline in customer interest rate swap revenues and market conditions.

Noninterest income decreased $3 million, or less than 1%, as compared with the year-earlier third quarter.

Trust income decreased $31 million reflecting lower revenues associated with the CIT business as a result of its sale in April 2023.
Other revenues from operations declined $11 million due to lower insurance income reflecting the sale of M&T Insurance Agency in December 2022.
Mortgage banking revenues increased $21 million due to higher servicing income related to the bulk purchase of residential mortgage loan servicing rights in the first quarter of 2023 and higher gains on sales of residential mortgage loans. The Company returned to originating for sale the majority of its newly originated residential mortgage loans in the first quarter of 2023.

 

 Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

Salaries and employee benefits

 

$

727

 

 

$

738

 

 

 

-1

%

 

$

736

 

 

 

-1

%

Equipment and net occupancy

 

 

131

 

 

 

129

 

 

 

2

%

 

 

127

 

 

 

3

%

Outside data processing and software

 

 

111

 

 

 

106

 

 

 

4

%

 

 

95

 

 

 

16

%

FDIC assessments

 

 

29

 

 

 

28

 

 

 

5

%

 

 

28

 

 

 

4

%

Advertising and marketing

 

 

23

 

 

 

28

 

 

 

-19

%

 

 

21

 

 

 

7

%

Printing, postage and supplies

 

 

14

 

 

 

14

 

 

 

-2

%

 

 

15

 

 

 

-5

%

Amortization of core deposit and other intangible assets

 

 

15

 

 

 

15

 

 

 

 

 

 

18

 

 

 

-19

%

Other costs of operations

 

 

228

 

 

 

235

 

 

 

-3

%

 

 

239

 

 

 

-4

%

Total

 

$

1,278

 

 

$

1,293

 

 

 

-1

%

 

$

1,279

 

 

 

 

 

4


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Noninterest expense aggregated $1.28 billion in the recent quarter, down from $1.29 billion in the second quarter of 2023. Excluding the amortization of core deposit and other intangible assets considered to be nonoperating in nature, noninterest operating expenses decreased $15 million, or 1%, to $1.26 billion in the recent quarter from $1.28 billion in the immediately preceding quarter.

 

Salaries and employee benefits expense decreased $11 million reflecting lower average headcount and lower expenses for contracted resources and overtime.
Other costs of operations decreased $6 million reflecting lower sub-advisory fees as a result of the sale of the CIT business in April 2023 and a decline in legal-related expenses, partially offset by losses associated with certain retail banking activities.

Noninterest expense decreased $2 million from the third quarter of 2022. Noninterest operating expenses aggregated $1.21 billion in the third quarter of 2022 after excluding $53 million of merger-related expenses associated with the People's United acquisition and $18 million of amortization of core deposit and other intangible assets. Noninterest operating expenses increased $55 million, or 5%, from the prior year third quarter inclusive of the following:

 

Other costs of operations increased $23 million resulting from the amortization of the bulk purchase of residential mortgage loan servicing rights purchased in March 2023 and losses associated with certain retail banking activities, partially offset by lower professional and other outside services expenses reflecting lower sub-advisory fees as a result of the sale of the CIT business.
Outside data processing and software costs increased $18 million, or 19%, primarily due to higher software maintenance costs, offshore processing and data processing fees.

 

 Average Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

Interest-bearing deposits at banks

 

$

26,657

 

 

$

23,617

 

 

 

13

%

 

$

30,752

 

 

 

-13

%

Federal funds sold and agreements to resell securities

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

-100

%

Trading account

 

 

136

 

 

 

151

 

 

 

-9

%

 

 

131

 

 

 

4

%

Investment securities

 

 

27,993

 

 

 

28,623

 

 

 

-2

%

 

 

23,945

 

 

 

17

%

Loans and leases, net of unearned discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial, etc.

 

 

44,625

 

 

 

44,531

 

 

 

 

 

 

38,321

 

 

 

16

%

Real estate - commercial

 

 

44,230

 

 

 

44,944

 

 

 

-2

%

 

 

46,282

 

 

 

-4

%

Real estate - consumer

 

 

23,573

 

 

 

23,781

 

 

 

-1

%

 

 

22,962

 

 

 

3

%

Consumer

 

 

20,189

 

 

 

20,289

 

 

 

 

 

 

19,960

 

 

 

1

%

Total loans and leases, net

 

 

132,617

 

 

 

133,545

 

 

 

-1

%

 

 

127,525

 

 

 

4

%

Total earning assets

 

$

187,403

 

 

$

185,936

 

 

 

1

%

 

$

182,382

 

 

 

3

%

Average earning assets increased $1.5 billion, or 1%, from the second quarter of 2023.

Average interest-bearing deposits at banks increased $3.0 billion due to increased liquidity from a rise in average deposits and a decline in average loan and investment securities balances.
Average loans and leases decreased $928 million primarily reflective of a $714 million decline in average balances of commercial real estate loans.
Average investment securities declined $630 million primarily due to pay downs of fixed rate mortgage-backed securities.

 

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Third Quarter 2023 Results

 

 

 

Average earning assets increased $5.0 billion, or 3%, from the year-earlier third quarter.

Average loans and leases increased $5.1 billion predominantly due to higher average outstanding balances of commercial and industrial loans and leases reflecting lending activities to financial and insurance industry customers and motor vehicle and recreational finance dealers, partially offset by a $2.1 billion decline in average commercial real estate loans.
Average investment securities increased $4.0 billion due to the purchases of additional investment securities in the fourth quarter of 2022 and the first quarter of 2023.
Average interest-bearing deposits at banks decreased $4.1 billion reflecting lower deposits, incremental loan balances and purchases of investment securities, partially offset by higher borrowings.

 

 Average Interest-bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 3Q23 vs.

 

 

 

 

 

Change 3Q23 vs.

 

($ in millions)

 

3Q23

 

 

2Q23

 

 

2Q23

 

 

3Q22

 

 

3Q22

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings and interest-checking deposits

 

$

89,274

 

 

$

87,210

 

 

 

2

%

 

$

89,360

 

 

 

 

Time deposits

 

 

19,528

 

 

 

16,009

 

 

 

22

%

 

 

5,050

 

 

 

287

%

Total interest-bearing deposits

 

 

108,802

 

 

 

103,219

 

 

 

5

%

 

 

94,410

 

 

 

15

%

Short-term borrowings

 

 

5,346

 

 

 

7,539

 

 

 

-29

%

 

 

913

 

 

 

485

%

Long-term borrowings

 

 

7,240

 

 

 

7,516

 

 

 

-4

%

 

 

3,281

 

 

 

121

%

Total interest-bearing liabilities

 

$

121,388

 

 

$

118,274

 

 

 

3

%

 

$

98,604

 

 

 

23

%

Average interest-bearing liabilities increased $3.1 billion, or 3%, from the second quarter of 2023.

Average interest-bearing deposits increased $5.6 billion, including a $3.3 billion increase in average non-brokered deposits.
Average borrowings decreased $2.5 billion predominantly due to lower levels of short-term borrowings from the Federal Home Loan Bank ("FHLB") of New York.

Average interest-bearing liabilities increased $22.8 billion, or 23%, from the third quarter of 2022.

Average interest-bearing deposits increased $14.4 billion, including a $5.3 billion increase in average non-brokered deposits.
Average borrowings increased $8.4 billion predominantly due to issuances of long-term senior notes totaling $3.5 billion in the first quarter of 2023 and increases in short-term borrowings from the FHLB of New York.

 Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

3Q23

 

 

2Q23

 

 

3Q22

 

CET1

 

 

10.94

%

(1)

 

10.59

%

 

 

10.75

%

Tier 1 capital

 

 

12.27

%

(1)

 

11.91

%

 

 

12.13

%

Total capital

 

 

13.99

%

(1)

 

13.71

%

 

 

13.96

%

Tangible capital – common

 

 

7.78

%

 

 

7.63

%

 

 

7.70

%

 

(1)
September 30, 2023 capital ratios are estimated.

 

M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $217 million and $25 million, respectively, for the

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Third Quarter 2023 Results

 

 

 

quarter ended September 30, 2023. M&T did not repurchase any shares of its common stock in the third quarter of 2023.

The CET1 capital ratio for M&T was estimated at 10.94% as of September 30, 2023. M&T's total risk-weighted assets at September 30, 2023 are estimated to be $152 billion.

Capital regulations require buffers in addition to the minimum risk-based capital ratios noted above. M&T is subject to a stress capital buffer requirement that is determined through the Federal Reserve’s supervisory stress tests and M&T’s bank subsidiaries are subject to a 2.5% capital conservation buffer requirement. The buffer requirement must be composed entirely of CET1. In June 2023, the Federal Reserve released the results of its most recent supervisory stress tests. Based on those results, on October 1, 2023, M&T's stress capital buffer of 4.0% became effective.

M&T repurchased 3,282,449 shares of its common stock at an average cost per share of $182.79 resulting in a total cost of $600 million in 2022's third quarter. There were no share repurchases in the second or third quarters of 2023.

 

 Conference Call

Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 10:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ323. 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 25, 2023 by calling (800) 839-5631, or (402) 220-2558 for international 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.

 

 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 M&T and/or the financial industry as a whole, as well as national and global events generally, including economic conditions, on M&T'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 M&T's control.

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Third Quarter 2023 Results

 

 

 

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 certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Examples of Future Factors include: the impact of M&T's acquisition of People's United (as described in the next paragraph); events and developments in the financial services industry, including legislation, regulations and other governmental actions as well as business conditions affecting the industry and/or M&T and its subsidiaries, individually or collectively; economic conditions, including inflation and market volatility; 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; regulatory supervision and oversight, including monetary policy and capital requirements; domestic or international political developments and other geopolitical events, including international conflicts; governmental and public policy changes, including tax policy; 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, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

In addition, Future Factors related to the acquisition of People's United include, among others: the possibility that the anticipated benefits of the transaction will not be realized when expected or at all; potential adverse reactions or changes to business, customer or employee relationships; M&T's success in executing its business plans and strategies and managing the risks involved in the foregoing; the results and costs of integration efforts; the business, economic and political conditions in the markets in which M&T and its subsidiaries operate; the outcome of any legal proceedings that may be instituted against M&T or its subsidiaries; and other factors related to the acquisition that may affect future results of M&T.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, as noted, 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, 2022, 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.

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Third Quarter 2023 Results

 

 

 

Financial Highlights

 

Three months ended

 

 

 

 

 

Nine months ended

 

 

 

 

 

September 30

 

 

 

 

 

September 30

 

 

 

 

Dollars in millions, except per share, shares in thousands

2023

 

 

2022

 

 

Change

 

 

2023

 

 

2022

 

 

Change

 

Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

690

 

 

 

647

 

 

 

7

%

 

$

2,259

 

 

 

1,226

 

 

 

84

%

Net income available to common shareholders

 

664

 

 

 

621

 

 

 

7

%

 

 

2,180

 

 

 

1,152

 

 

 

89

%

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

$

4.00

 

 

 

3.55

 

 

 

13

%

 

$

13.09

 

 

 

7.18

 

 

 

82

%

Diluted earnings

 

3.98

 

 

 

3.53

 

 

 

13

%

 

 

13.05

 

 

 

7.14

 

 

 

83

%

Cash dividends

 

1.30

 

 

 

1.20

 

 

 

8

%

 

 

3.90

 

 

 

3.60

 

 

 

8

%

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average - diluted (1)

 

166,570

 

 

 

175,682

 

 

 

-5

%

 

 

167,093

 

 

 

161,295

 

 

 

4

%

Period end (2)

 

165,970

 

 

 

172,900

 

 

 

-4

%

 

 

165,970

 

 

 

172,900

 

 

 

-4

%

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

1.33

%

 

 

1.28

%

 

 

 

 

 

1.48

%

 

 

.87

%

 

 

 

Average common shareholders' equity

 

10.99

%

 

 

10.43

%

 

 

 

 

 

12.33

%

 

 

7.24

%

 

 

 

Taxable-equivalent net interest income

$

1,790

 

 

 

1,691

 

 

 

6

%

 

$

5,434

 

 

 

4,020

 

 

 

35

%

Yield on average earning assets

 

5.62

%

 

 

3.90

%

 

 

 

 

 

5.41

%

 

 

3.30

%

 

 

 

Cost of interest-bearing liabilities

 

2.83

%

 

 

.41

%

 

 

 

 

 

2.39

%

 

 

.27

%

 

 

 

Net interest spread

 

2.79

%

 

 

3.49

%

 

 

 

 

 

3.02

%

 

 

3.03

%

 

 

 

Contribution of interest-free funds

 

1.00

%

 

 

.19

%

 

 

 

 

 

.89

%

 

 

.12

%

 

 

 

Net interest margin

 

3.79

%

 

 

3.68

%

 

 

 

 

 

3.91

%

 

 

3.15

%

 

 

 

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

 

.29

%

 

 

.20

%

 

 

 

 

 

.30

%

 

 

.14

%

 

 

 

Net operating results (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

$

702

 

 

 

700

 

 

 

 

 

$

2,295

 

 

 

1,654

 

 

 

39

%

Diluted net operating earnings per common share

 

4.05

 

 

 

3.83

 

 

 

6

%

 

 

13.26

 

 

 

9.78

 

 

 

36

%

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible assets

 

1.41

%

 

 

1.44

%

 

 

 

 

 

1.57

%

 

 

1.23

%

 

 

 

Average tangible common equity

 

17.41

%

 

 

17.89

%

 

 

 

 

 

19.70

%

 

 

15.13

%

 

 

 

Efficiency ratio

 

53.7

%

 

 

53.6

%

 

 

 

 

 

52.6

%

 

 

58.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30

 

 

 

 

 

 

 

 

 

 

 

Loan quality

2023

 

 

2022

 

 

Change

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

2,342

 

 

 

2,429

 

 

 

-4

%

 

 

 

 

 

 

 

 

 

Real estate and other foreclosed assets

 

37

 

 

 

37

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

$

2,379

 

 

 

2,466

 

 

 

-4

%

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more (4)

$

354

 

 

 

477

 

 

 

-26

%

 

 

 

 

 

 

 

 

 

Government guaranteed loans included in totals above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

40

 

 

 

45

 

 

 

-11

%

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more

 

269

 

 

 

423

 

 

 

-37

%

 

 

 

 

 

 

 

 

 

Nonaccrual loans to total net loans

 

1.77

%

 

 

1.89

%

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

1.55

%

 

 

1.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

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Third Quarter 2023 Results

 

 

 

Financial Highlights, Five Quarter Trend

 

Three months ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Dollars in millions, except per share, shares in thousands

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

690

 

 

 

867

 

 

 

702

 

 

 

765

 

 

 

647

 

Net income available to common shareholders

 

664

 

 

 

841

 

 

 

676

 

 

 

739

 

 

 

621

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

$

4.00

 

 

 

5.07

 

 

 

4.03

 

 

 

4.32

 

 

 

3.55

 

Diluted earnings

 

3.98

 

 

 

5.05

 

 

 

4.01

 

 

 

4.29

 

 

 

3.53

 

Cash dividends

 

1.30

 

 

 

1.30

 

 

 

1.30

 

 

 

1.20

 

 

 

1.20

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average - diluted (1)

 

166,570

 

 

 

166,320

 

 

 

168,410

 

 

 

172,149

 

 

 

175,682

 

Period end (2)

 

165,970

 

 

 

165,894

 

 

 

165,865

 

 

 

169,285

 

 

 

172,900

 

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

1.33

%

 

 

1.70

%

 

 

1.40

%

 

 

1.53

%

 

 

1.28

%

Average common shareholders' equity

 

10.99

%

 

 

14.27

%

 

 

11.74

%

 

 

12.59

%

 

 

10.43

%

Taxable-equivalent net interest income

$

1,790

 

 

 

1,813

 

 

 

1,832

 

 

 

1,841

 

 

 

1,691

 

Yield on average earning assets

 

5.62

%

 

 

5.46

%

 

 

5.16

%

 

 

4.60

%

 

 

3.90

%

Cost of interest-bearing liabilities

 

2.83

%

 

 

2.43

%

 

 

1.86

%

 

 

.98

%

 

 

.41

%

Net interest spread

 

2.79

%

 

 

3.03

%

 

 

3.30

%

 

 

3.62

%

 

 

3.49

%

Contribution of interest-free funds

 

1.00

%

 

 

.88

%

 

 

.74

%

 

 

.44

%

 

 

.19

%

Net interest margin

 

3.79

%

 

 

3.91

%

 

 

4.04

%

 

 

4.06

%

 

 

3.68

%

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

 

.29

%

 

 

.38

%

 

 

.22

%

 

 

.12

%

 

 

.20

%

Net operating results (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

$

702

 

 

 

879

 

 

 

715

 

 

 

812

 

 

 

700

 

Diluted net operating earnings per common share

 

4.05

 

 

 

5.12

 

 

 

4.09

 

 

 

4.57

 

 

 

3.83

 

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible assets

 

1.41

%

 

 

1.80

%

 

 

1.49

%

 

 

1.70

%

 

 

1.44

%

Average tangible common equity

 

17.41

%

 

 

22.73

%

 

 

19.00

%

 

 

21.29

%

 

 

17.89

%

Efficiency ratio

 

53.7

%

 

 

48.9

%

 

 

55.5

%

 

 

53.3

%

 

 

53.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Loan quality

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Nonaccrual loans

$

2,342

 

 

 

2,435

 

 

 

2,557

 

 

 

2,439

 

 

 

2,429

 

Real estate and other foreclosed assets

 

37

 

 

 

43

 

 

 

44

 

 

 

41

 

 

 

37

 

Total nonperforming assets

$

2,379

 

 

 

2,478

 

 

 

2,601

 

 

 

2,480

 

 

 

2,466

 

Accruing loans past due 90 days or more (4)

$

354

 

 

 

380

 

 

 

407

 

 

 

491

 

 

 

477

 

Government guaranteed loans included in totals above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

40

 

 

 

40

 

 

 

42

 

 

 

44

 

 

 

45

 

Accruing loans past due 90 days or more

 

269

 

 

 

294

 

 

 

306

 

 

 

363

 

 

 

423

 

Nonaccrual loans to total net loans

 

1.77

%

 

 

1.83

%

 

 

1.92

%

 

 

1.85

%

 

 

1.89

%

Allowance for credit losses to total loans

 

1.55

%

 

 

1.50

%

 

 

1.49

%

 

 

1.46

%

 

 

1.46

%

 

(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.

10


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Condensed Consolidated Statement of Income

 

 

Three months ended

 

 

 

 

 

Nine months ended

 

 

 

 

 

 

September 30

 

 

 

 

 

September 30

 

 

 

 

Dollars in millions

 

2023

 

 

2022

 

 

Change

 

 

2023

 

 

2022

 

 

Change

 

Interest income

 

$

2,641

 

 

 

1,782

 

 

 

48

%

 

$

7,484

 

 

 

4,175

 

 

 

79

%

Interest expense

 

 

866

 

 

 

103

 

 

 

742

 

 

 

2,091

 

 

 

180

 

 

 

 

Net interest income

 

 

1,775

 

 

 

1,679

 

 

 

6

 

 

 

5,393

 

 

 

3,995

 

 

 

35

 

Provision for credit losses

 

 

150

 

 

 

115

 

 

 

30

 

 

 

420

 

 

 

427

 

 

 

-2

 

Net interest income after provision for credit losses

 

 

1,625

 

 

 

1,564

 

 

 

4

 

 

 

4,973

 

 

 

3,568

 

 

 

39

 

Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking revenues

 

 

105

 

 

 

83

 

 

 

26

 

 

 

297

 

 

 

275

 

 

 

8

 

Service charges on deposit accounts

 

 

121

 

 

 

115

 

 

 

5

 

 

 

354

 

 

 

341

 

 

 

4

 

Trust income

 

 

155

 

 

 

187

 

 

 

-17

 

 

 

521

 

 

 

546

 

 

 

-4

 

Brokerage services income

 

 

27

 

 

 

21

 

 

 

28

 

 

 

76

 

 

 

65

 

 

 

16

 

Trading account and non-hedging
     derivative gains

 

 

9

 

 

 

5

 

 

 

85

 

 

 

38

 

 

 

13

 

 

 

197

 

Gain (loss) on bank investment securities

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(2

)

 

 

 

Other revenues from operations

 

 

143

 

 

 

153

 

 

 

-7

 

 

 

664

 

 

 

437

 

 

 

52

 

Total other income

 

 

560

 

 

 

563

 

 

 

-1

 

 

 

1,950

 

 

 

1,675

 

 

 

16

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

727

 

 

 

736

 

 

 

-1

 

 

 

2,273

 

 

 

2,090

 

 

 

9

 

Equipment and net occupancy

 

 

131

 

 

 

127

 

 

 

3

 

 

 

387

 

 

 

338

 

 

 

14

 

Outside data processing and software

 

 

111

 

 

 

95

 

 

 

16

 

 

 

323

 

 

 

269

 

 

 

20

 

FDIC assessments

 

 

29

 

 

 

28

 

 

 

4

 

 

 

87

 

 

 

66

 

 

 

31

 

Advertising and marketing

 

 

23

 

 

 

21

 

 

 

7

 

 

 

82

 

 

 

58

 

 

 

42

 

Printing, postage and supplies

 

 

14

 

 

 

15

 

 

 

-5

 

 

 

42

 

 

 

40

 

 

 

5

 

Amortization of core deposit and other
     intangible assets

 

 

15

 

 

 

18

 

 

 

-19

 

 

 

47

 

 

 

38

 

 

 

24

 

Other costs of operations

 

 

228

 

 

 

239

 

 

 

-4

 

 

 

689

 

 

 

743

 

 

 

-7

 

Total other expense

 

 

1,278

 

 

 

1,279

 

 

 

 

 

 

3,930

 

 

 

3,642

 

 

 

8

 

Income before income taxes

 

 

907

 

 

 

848

 

 

 

7

 

 

 

2,993

 

 

 

1,601

 

 

 

87

 

Applicable income taxes

 

 

217

 

 

 

201

 

 

 

8

 

 

 

734

 

 

 

375

 

 

 

96

 

Net income

 

$

690

 

 

 

647

 

 

 

7

%

 

$

2,259

 

 

 

1,226

 

 

 

84

%

 

11


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Condensed Consolidated Statement of Income, Five Quarter Trend

 

 

Three months ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Dollars in millions

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Interest income

 

$

2,641

 

 

 

2,516

 

 

 

2,327

 

 

 

2,072

 

 

 

1,782

 

Interest expense

 

 

866

 

 

 

717

 

 

 

509

 

 

 

245

 

 

 

103

 

Net interest income

 

 

1,775

 

 

 

1,799

 

 

 

1,818

 

 

 

1,827

 

 

 

1,679

 

Provision for credit losses

 

 

150

 

 

 

150

 

 

 

120

 

 

 

90

 

 

 

115

 

Net interest income after provision for credit losses

 

 

1,625

 

 

 

1,649

 

 

 

1,698

 

 

 

1,737

 

 

 

1,564

 

Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking revenues

 

 

105

 

 

 

107

 

 

 

85

 

 

 

82

 

 

 

83

 

Service charges on deposit accounts

 

 

121

 

 

 

119

 

 

 

113

 

 

 

106

 

 

 

115

 

Trust income

 

 

155

 

 

 

172

 

 

 

194

 

 

 

195

 

 

 

187

 

Brokerage services income

 

 

27

 

 

 

25

 

 

 

24

 

 

 

22

 

 

 

21

 

Trading account and non-hedging
     derivative gains

 

 

9

 

 

 

17

 

 

 

12

 

 

 

14

 

 

 

5

 

Gain (loss) on bank investment securities

 

 

 

 

 

1

 

 

 

 

 

 

(3

)

 

 

(1

)

Other revenues from operations

 

 

143

 

 

 

362

 

 

 

159

 

 

 

266

 

 

 

153

 

Total other income

 

 

560

 

 

 

803

 

 

 

587

 

 

 

682

 

 

 

563

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

727

 

 

 

738

 

 

 

808

 

 

 

697

 

 

 

736

 

Equipment and net occupancy

 

 

131

 

 

 

129

 

 

 

127

 

 

 

137

 

 

 

127

 

Outside data processing and software

 

 

111

 

 

 

106

 

 

 

106

 

 

 

108

 

 

 

95

 

FDIC assessments

 

 

29

 

 

 

28

 

 

 

30

 

 

 

24

 

 

 

28

 

Advertising and marketing

 

 

23

 

 

 

28

 

 

 

31

 

 

 

32

 

 

 

21

 

Printing, postage and supplies

 

 

14

 

 

 

14

 

 

 

14

 

 

 

15

 

 

 

15

 

Amortization of core deposit and other
     intangible assets

 

 

15

 

 

 

15

 

 

 

17

 

 

 

18

 

 

 

18

 

Other costs of operations

 

 

228

 

 

 

235

 

 

 

226

 

 

 

377

 

 

 

239

 

Total other expense

 

 

1,278

 

 

 

1,293

 

 

 

1,359

 

 

 

1,408

 

 

 

1,279

 

Income before income taxes

 

 

907

 

 

 

1,159

 

 

 

926

 

 

 

1,011

 

 

 

848

 

Applicable income taxes

 

 

217

 

 

 

292

 

 

 

224

 

 

 

246

 

 

 

201

 

Net income

 

$

690

 

 

 

867

 

 

 

702

 

 

 

765

 

 

 

647

 

 

12


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Condensed Consolidated Balance Sheet

 

 

September 30

 

 

 

 

 

Dollars in millions

 

2023

 

 

2022

 

 

Change

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

1,769

 

 

 

2,256

 

 

 

-22

 

%

Interest-bearing deposits at banks

 

30,114

 

 

 

25,392

 

 

 

19

 

 

Trading account

 

137

 

 

 

130

 

 

 

6

 

 

Investment securities

 

27,336

 

 

 

24,604

 

 

 

11

 

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

Commercial, financial, etc.

 

 

45,058

 

 

 

38,808

 

 

 

16

 

 

Real estate - commercial

 

 

43,574

 

 

 

46,139

 

 

 

-6

 

 

Real estate - consumer

 

 

23,448

 

 

 

23,074

 

 

 

2

 

 

Consumer

 

 

20,275

 

 

 

20,205

 

 

 

 

 

Total loans and leases, net of unearned discount

 

132,355

 

 

 

128,226

 

 

 

3

 

 

Less: allowance for credit losses

 

2,052

 

 

 

1,876

 

 

 

9

 

 

Net loans and leases

 

130,303

 

 

 

126,350

 

 

 

3

 

 

Goodwill

 

8,465

 

 

 

8,501

 

 

 

 

 

Core deposit and other intangible assets

 

162

 

 

 

227

 

 

 

-29

 

 

Other assets

 

10,838

 

 

 

10,495

 

 

 

3

 

 

Total assets

$

209,124

 

 

 

197,955

 

 

 

6

 

%

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

53,787

 

 

 

73,023

 

 

 

-26

 

%

Interest-bearing deposits

 

110,341

 

 

 

90,822

 

 

 

21

 

 

Total deposits

 

164,128

 

 

 

163,845

 

 

 

 

 

Short-term borrowings

 

6,731

 

 

 

918

 

 

 

633

 

 

Accrued interest and other liabilities

 

4,946

 

 

 

4,477

 

 

 

10

 

 

Long-term borrowings

 

7,123

 

 

 

3,459

 

 

 

106

 

 

Total liabilities

 

182,928

 

 

 

172,699

 

 

 

6

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Preferred

 

 

2,011

 

 

 

2,011

 

 

 

 

 

Common

 

 

24,185

 

 

 

23,245

 

 

 

4

 

 

Total shareholders' equity

 

 

26,196

 

 

 

25,256

 

 

 

4

 

 

Total liabilities and shareholders' equity

$

209,124

 

 

 

197,955

 

 

 

6

 

%

 

13


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Dollars in millions

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

1,769

 

 

 

1,848

 

 

 

1,818

 

 

 

1,517

 

 

 

2,256

 

Interest-bearing deposits at banks

 

30,114

 

 

 

27,107

 

 

 

22,306

 

 

 

24,959

 

 

 

25,392

 

Federal funds sold and agreements to resell
     securities

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

Trading account

 

137

 

 

 

137

 

 

 

165

 

 

 

118

 

 

 

130

 

Investment securities

 

27,336

 

 

 

27,917

 

 

 

28,443

 

 

 

25,211

 

 

 

24,604

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial, etc.

 

45,058

 

 

 

44,684

 

 

 

43,758

 

 

 

41,850

 

 

 

38,808

 

Real estate - commercial

 

43,574

 

 

 

44,649

 

 

 

45,073

 

 

 

45,365

 

 

 

46,139

 

Real estate - consumer

 

23,448

 

 

 

23,762

 

 

 

23,790

 

 

 

23,756

 

 

 

23,074

 

Consumer

 

20,275

 

 

 

20,249

 

 

 

20,317

 

 

 

20,593

 

 

 

20,205

 

Total loans and leases, net of unearned discount

 

132,355

 

 

 

133,344

 

 

 

132,938

 

 

 

131,564

 

 

 

128,226

 

Less: allowance for credit losses

 

2,052

 

 

 

1,998

 

 

 

1,975

 

 

 

1,925

 

 

 

1,876

 

Net loans and leases

 

130,303

 

 

 

131,346

 

 

 

130,963

 

 

 

129,639

 

 

 

126,350

 

Goodwill

 

8,465

 

 

 

8,465

 

 

 

8,490

 

 

 

8,490

 

 

 

8,501

 

Core deposit and other intangible assets

 

162

 

 

 

177

 

 

 

192

 

 

 

209

 

 

 

227

 

Other assets

 

10,838

 

 

 

10,675

 

 

 

10,579

 

 

 

10,584

 

 

 

10,495

 

Total assets

$

209,124

 

 

 

207,672

 

 

 

202,956

 

 

 

200,730

 

 

 

197,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

53,787

 

 

 

54,938

 

 

 

59,955

 

 

 

65,502

 

 

 

73,023

 

Interest-bearing deposits

 

110,341

 

 

 

107,120

 

 

 

99,120

 

 

 

98,013

 

 

 

90,822

 

Total deposits

 

164,128

 

 

 

162,058

 

 

 

159,075

 

 

 

163,515

 

 

 

163,845

 

Short-term borrowings

 

6,731

 

 

 

7,908

 

 

 

6,995

 

 

 

3,555

 

 

 

918

 

Accrued interest and other liabilities

 

4,946

 

 

 

4,488

 

 

 

4,046

 

 

 

4,377

 

 

 

4,477

 

Long-term borrowings

 

7,123

 

 

 

7,417

 

 

 

7,463

 

 

 

3,965

 

 

 

3,459

 

Total liabilities

 

182,928

 

 

 

181,871

 

 

 

177,579

 

 

 

175,412

 

 

 

172,699

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred

 

2,011

 

 

 

2,011

 

 

 

2,011

 

 

 

2,011

 

 

 

2,011

 

Common

 

24,185

 

 

 

23,790

 

 

 

23,366

 

 

 

23,307

 

 

 

23,245

 

Total shareholders' equity

 

26,196

 

 

 

25,801

 

 

 

25,377

 

 

 

25,318

 

 

 

25,256

 

Total liabilities and shareholders' equity

$

209,124

 

 

 

207,672

 

 

 

202,956

 

 

 

200,730

 

 

 

197,955

 

 

14


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 

 

Three months ended

 

 

Change in balance

 

 

Nine months ended

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30, 2023 from

 

 

September 30

 

 

Change

 

 

Dollars in millions

 

2023

 

 

2023

 

 

2022

 

 

June 30,

 

 

September 30,

 

 

2023

 

 

2022

 

 

in

 

 

 

 

Balance

 

 

Rate

 

 

Balance

 

 

Rate

 

 

Balance

 

 

Rate

 

 

2023

 

 

2022

 

 

Balance

 

 

Rate

 

 

Balance

 

 

Rate

 

 

balance

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits at banks

 

$

26,657

 

 

 

5.40

 

%

 

23,617

 

 

 

5.14

 

%

 

30,752

 

 

 

2.23

 

%

 

13

 

%

 

-13

 

%

$

24,871

 

 

 

5.07

 

%

 

36,248

 

 

 

1.00

 

%

 

-31

 

%

Federal funds sold and agreements to
     resell securities

 

 

 

 

 

5.79

 

 

 

 

 

 

5.53

 

 

 

29

 

 

 

.55

 

 

 

-99

 

 

 

-100

 

 

 

 

 

 

5.34

 

 

 

93

 

 

 

.42

 

 

 

-100

 

 

Trading account

 

 

136

 

 

 

4.05

 

 

 

151

 

 

 

2.66

 

 

 

131

 

 

 

1.78

 

 

 

-9

 

 

 

4

 

 

 

136

 

 

 

3.02

 

 

 

105

 

 

 

1.24

 

 

 

29

 

 

Investment securities

 

 

27,993

 

 

 

3.14

 

 

 

28,623

 

 

 

3.09

 

 

 

23,945

 

 

 

2.62

 

 

 

-2

 

 

 

17

 

 

 

28,081

 

 

 

3.08

 

 

 

18,077

 

 

 

2.51

 

 

 

55

 

 

Loans and leases, net of unearned discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial, etc.

 

 

44,625

 

 

 

7.01

 

 

 

44,531

 

 

 

6.79

 

 

 

38,321

 

 

 

4.87

 

 

 

 

 

 

16

 

 

 

43,870

 

 

 

6.76

 

 

 

33,203

 

 

 

4.24

 

 

 

32

 

 

Real estate - commercial

 

 

44,230

 

 

 

6.41

 

 

 

44,944

 

 

 

6.25

 

 

 

46,282

 

 

 

4.49

 

 

 

-2

 

 

 

-4

 

 

 

44,830

 

 

 

6.16

 

 

 

42,864

 

 

 

4.09

 

 

 

5

 

 

Real estate - consumer

 

 

23,573

 

 

 

4.14

 

 

 

23,781

 

 

 

4.10

 

 

 

22,962

 

 

 

3.84

 

 

 

-1

 

 

 

3

 

 

 

23,707

 

 

 

4.06

 

 

 

20,557

 

 

 

3.69

 

 

 

15

 

 

Consumer

 

 

20,189

 

 

 

6.16

 

 

 

20,289

 

 

 

5.88

 

 

 

19,960

 

 

 

4.76

 

 

 

 

 

 

1

 

 

 

20,320

 

 

 

5.90

 

 

 

19,267

 

 

 

4.43

 

 

 

5

 

 

Total loans and leases, net

 

 

132,617

 

 

 

6.19

 

 

 

133,545

 

 

 

6.02

 

 

 

127,525

 

 

 

4.55

 

 

 

-1

 

 

 

4

 

 

 

132,727

 

 

 

5.98

 

 

 

115,891

 

 

 

4.14

 

 

 

15

 

 

Total earning assets

 

 

187,403

 

 

 

5.62

 

 

 

185,936

 

 

 

5.46

 

 

 

182,382

 

 

 

3.90

 

 

 

1

 

 

 

3

 

 

 

185,815

 

 

 

5.41

 

 

 

170,414

 

 

 

3.30

 

 

 

9

 

 

Goodwill

 

 

8,465

 

 

 

 

 

 

8,473

 

 

 

 

 

 

8,501

 

 

 

 

 

 

 

 

 

 

 

 

8,476

 

 

 

 

 

 

7,214

 

 

 

 

 

 

17

 

 

Core deposit and other intangible assets

 

 

170

 

 

 

 

 

 

185

 

 

 

 

 

 

236

 

 

 

 

 

 

-8

 

 

 

-28

 

 

 

185

 

 

 

 

 

 

165

 

 

 

 

 

 

12

 

 

Other assets

 

 

9,753

 

 

 

 

 

 

9,782

 

 

 

 

 

 

10,012

 

 

 

 

 

 

 

 

 

-3

 

 

 

9,790

 

 

 

 

 

 

9,602

 

 

 

 

 

 

2

 

 

Total assets

 

$

205,791

 

 

 

 

 

 

204,376

 

 

 

 

 

 

201,131

 

 

 

 

 

 

1

 

%

 

2

 

%

$

204,266

 

 

 

 

 

 

187,395

 

 

 

 

 

 

9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings and interest-checking deposits

 

$

89,274

 

 

 

2.20

 

 

 

87,210

 

 

 

1.69

 

 

 

89,360

 

 

 

.31

 

 

 

2

 

%

 

 

%

$

88,184

 

 

 

1.73

 

 

 

84,006

 

 

 

.16

 

 

 

5

 

%

Time deposits

 

 

19,528

 

 

 

4.09

 

 

 

16,009

 

 

 

3.77

 

 

 

5,050

 

 

 

.09

 

 

 

22

 

 

 

287

 

 

 

15,751

 

 

 

3.74

 

 

 

4,401

 

 

 

.11

 

 

 

258

 

 

Total interest-bearing deposits

 

 

108,802

 

 

 

2.54

 

 

 

103,219

 

 

 

2.02

 

 

 

94,410

 

 

 

.29

 

 

 

5

 

 

 

15

 

 

 

103,935

 

 

 

2.03

 

 

 

88,407

 

 

 

.16

 

 

 

18

 

 

Short-term borrowings

 

 

5,346

 

 

 

5.16

 

 

 

7,539

 

 

 

5.11

 

 

 

913

 

 

 

1.16

 

 

 

-29

 

 

 

485

 

 

 

5,961

 

 

 

5.01

 

 

 

701

 

 

 

1.16

 

 

 

750

 

 

Long-term borrowings

 

 

7,240

 

 

 

5.52

 

 

 

7,516

 

 

 

5.43

 

 

 

3,281

 

 

 

3.67

 

 

 

-4

 

 

 

121

 

 

 

7,092

 

 

 

5.42

 

 

 

3,335

 

 

 

2.69

 

 

 

113

 

 

Total interest-bearing liabilities

 

 

121,388

 

 

 

2.83

 

 

 

118,274

 

 

 

2.43

 

 

 

98,604

 

 

 

.41

 

 

 

3

 

 

 

23

 

 

 

116,988

 

 

 

2.39

 

 

 

92,443

 

 

 

.27

 

 

 

27

 

 

Noninterest-bearing deposits

 

 

53,886

 

 

 

 

 

 

56,180

 

 

 

 

 

 

72,861

 

 

 

 

 

 

-4

 

 

 

-26

 

 

 

57,277

 

 

 

 

 

 

68,406

 

 

 

 

 

 

-16

 

 

Other liabilities

 

 

4,497

 

 

 

 

 

 

4,237

 

 

 

 

 

 

4,001

 

 

 

 

 

 

6

 

 

 

12

 

 

 

4,305

 

 

 

 

 

 

3,301

 

 

 

 

 

 

30

 

 

Total liabilities

 

 

179,771

 

 

 

 

 

 

178,691

 

 

 

 

 

 

175,466

 

 

 

 

 

 

1

 

 

 

2

 

 

 

178,570

 

 

 

 

 

 

164,150

 

 

 

 

 

 

9

 

 

Shareholders' equity

 

 

26,020

 

 

 

 

 

 

25,685

 

 

 

 

 

 

25,665

 

 

 

 

 

 

1

 

 

 

1

 

 

 

25,696

 

 

 

 

 

 

23,245

 

 

 

 

 

 

11

 

 

Total liabilities and shareholders' equity

 

$

205,791

 

 

 

 

 

 

204,376

 

 

 

 

 

 

201,131

 

 

 

 

 

 

1

 

%

 

2

 

%

$

204,266

 

 

 

 

 

 

187,395

 

 

 

 

 

 

9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

2.79

 

 

 

 

 

 

3.03

 

 

 

 

 

 

3.49

 

 

 

 

 

 

 

 

 

 

 

 

3.02

 

 

 

 

 

 

3.03

 

 

 

 

 

Contribution of interest-free funds

 

 

 

 

 

1.00

 

 

 

 

 

 

.88

 

 

 

 

 

 

.19

 

 

 

 

 

 

 

 

 

 

 

 

.89

 

 

 

 

 

 

.12

 

 

 

 

 

Net interest margin

 

 

 

 

 

3.79

 

%

 

 

 

 

3.91

 

%

 

 

 

 

3.68

 

%

 

 

 

 

 

 

 

 

 

 

3.91

 

%

 

 

 

 

3.15

 

%

 

 

 

 

15


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30

 

 

September 30

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Income statement data

 

 

 

 

 

 

 

 

 

 

 

 

In millions, except per share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

690

 

 

 

647

 

 

$

2,259

 

 

 

1,226

 

Amortization of core deposit and other intangible assets (1)

 

12

 

 

 

14

 

 

 

36

 

 

 

29

 

Merger-related expenses (1)

 

 

 

 

39

 

 

 

 

 

 

399

 

Net operating income

 

$

702

 

 

 

700

 

 

 

2,295

 

 

 

1,654

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

3.98

 

 

 

3.53

 

 

$

13.05

 

 

 

7.14

 

Amortization of core deposit and other intangible assets (1)

 

.07

 

 

 

.08

 

 

 

.21

 

 

 

.18

 

Merger-related expenses (1)

 

 

 

 

.22

 

 

 

 

 

 

2.46

 

Diluted net operating earnings per common share

 

$

4.05

 

 

 

3.83

 

 

 

13.26

 

 

 

9.78

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

Other expense

 

$

1,278

 

 

 

1,279

 

 

$

3,929

 

 

 

3,642

 

Amortization of core deposit and other intangible assets

 

 

(15

)

 

 

(18

)

 

 

(47

)

 

 

(38

)

Merger-related expenses

 

 

 

 

 

(53

)

 

 

 

 

 

(293

)

Noninterest operating expense

 

$

1,263

 

 

 

1,208

 

 

$

3,882

 

 

 

3,311

 

Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

 

 

 

13

 

 

$

 

 

 

99

 

Equipment and net occupancy

 

 

 

 

 

2

 

 

 

 

 

 

4

 

Outside data processing and software

 

 

 

 

 

2

 

 

 

 

 

 

3

 

Advertising and marketing

 

 

 

 

 

2

 

 

 

 

 

 

4

 

Printing, postage and supplies

 

 

 

 

 

1

 

 

 

 

 

 

4

 

Other costs of operations

 

 

 

 

 

33

 

 

 

 

 

 

179

 

Other expense

 

 

 

 

 

53

 

 

 

 

 

 

293

 

Provision for credit losses

 

 

 

 

 

 

 

 

 

 

 

242

 

Total

 

$

 

 

 

53

 

 

$

 

 

 

535

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

Noninterest operating expense (numerator)

 

$

1,263

 

 

 

1,208

 

 

$

3,882

 

 

 

3,311

 

Taxable-equivalent net interest income

$

1,790

 

 

 

1,691

 

 

$

5,434

 

 

 

4,020

 

Other income

 

560

 

 

 

563

 

 

 

1,950

 

 

 

1,675

 

Less: Gain (loss) on bank investment securities

 

 

 

 

(1

)

 

 

 

 

 

(2

)

Denominator

 

$

2,350

 

 

 

2,255

 

 

$

7,384

 

 

 

5,697

 

Efficiency ratio

 

 

53.7

%

 

 

53.6

%

 

 

52.6

%

 

 

58.1

%

Balance sheet data

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

205,791

 

 

 

201,131

 

 

$

204,266

 

 

 

187,395

 

Goodwill

 

(8,465

)

 

 

(8,501

)

 

 

(8,476

)

 

 

(7,214

)

Core deposit and other intangible assets

 

(170

)

 

 

(236

)

 

 

(185

)

 

 

(165

)

Deferred taxes

 

43

 

 

 

56

 

 

 

46

 

 

 

38

 

Average tangible assets

 

$

197,199

 

 

 

192,450

 

 

$

195,651

 

 

 

180,054

 

Average common equity

 

 

 

 

 

 

 

 

 

 

 

 

Average total equity

 

$

26,020

 

 

 

25,665

 

 

$

25,696

 

 

 

23,245

 

Preferred stock

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

 

 

(1,925

)

Average common equity

 

 

24,009

 

 

 

23,654

 

 

 

23,685

 

 

 

21,320

 

Goodwill

 

(8,465

)

 

 

(8,501

)

 

 

(8,476

)

 

 

(7,214

)

Core deposit and other intangible assets

 

(170

)

 

 

(236

)

 

 

(185

)

 

 

(165

)

Deferred taxes

 

43

 

 

 

56

 

 

 

46

 

 

 

38

 

Average tangible common equity

 

$

15,417

 

 

 

14,973

 

 

$

15,070

 

 

 

13,979

 

At end of quarter

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

209,124

 

 

 

197,955

 

 

 

 

 

 

 

Goodwill

 

 

(8,465

)

 

 

(8,501

)

 

 

 

 

 

 

Core deposit and other intangible assets

 

 

(162

)

 

 

(227

)

 

 

 

 

 

 

Deferred taxes

 

 

41

 

 

 

54

 

 

 

 

 

 

 

Total tangible assets

 

$

200,538

 

 

 

189,281

 

 

 

 

 

 

 

Total common equity

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

26,197

 

 

 

25,256

 

 

 

 

 

 

 

Preferred stock

 

 

(2,011

)

 

 

(2,011

)

 

 

 

 

 

 

Common equity

 

 

24,186

 

 

 

23,245

 

 

 

 

 

 

 

Goodwill

 

 

(8,465

)

 

 

(8,501

)

 

 

 

 

 

 

Core deposit and other intangible assets

 

 

(162

)

 

 

(227

)

 

 

 

 

 

 

Deferred taxes

 

 

41

 

 

 

54

 

 

 

 

 

 

 

Total tangible common equity

 

$

15,600

 

 

 

14,571

 

 

 

 

 

 

 

 

(1) After any related tax effect.

 

 

16


 

 

 

https://cdn.kscope.io/afb3d505a6b46fd168200118728fd3cb-img190562026_1.jpg 

Third Quarter 2023 Results

 

 

 

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

 

 

Three months ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Income statement data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions, except per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

690

 

 

 

867

 

 

 

702

 

 

 

765

 

 

 

647

 

Amortization of core deposit and other intangible assets (1)

 

 

12

 

 

 

12

 

 

 

13

 

 

 

14

 

 

 

14

 

Merger-related expenses (1)

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

39

 

Net operating income

 

$

702

 

 

 

879

 

 

 

715

 

 

 

812

 

 

 

700

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

3.98

 

 

 

5.05

 

 

 

4.01

 

 

 

4.29

 

 

 

3.53

 

Amortization of core deposit and other intangible assets (1)

 

 

.07

 

 

 

.07

 

 

 

.08

 

 

 

.08

 

 

 

.08

 

Merger-related expenses (1)

 

 

 

 

 

 

 

 

 

 

 

.20

 

 

 

.22

 

Diluted net operating earnings per common share

 

$

4.05

 

 

 

5.12

 

 

 

4.09

 

 

 

4.57

 

 

 

3.83

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense

 

$

1,278

 

 

 

1,293

 

 

 

1,359

 

 

 

1,408

 

 

 

1,279

 

Amortization of core deposit and other intangible assets

 

 

(15

)

 

 

(15

)

 

 

(17

)

 

 

(18

)

 

 

(18

)

Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

(45

)

 

 

(53

)

Noninterest operating expense

 

$

1,263

 

 

 

1,278

 

 

 

1,342

 

 

 

1,345

 

 

 

1,208

 

Merger-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

 

 

 

 

 

 

 

 

 

4

 

 

 

13

 

Equipment and net occupancy

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Outside data processing and software

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Advertising and marketing

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

2

 

Printing, postage and supplies

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

1

 

Other costs of operations

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

33

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

45

 

 

 

53

 

Provision for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

 

 

 

 

 

 

 

 

 

45

 

 

 

53

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest operating expense (numerator)

 

$

1,263

 

 

 

1,278

 

 

 

1,342

 

 

 

1,345

 

 

 

1,208

 

Taxable-equivalent net interest income

 

$

1,790

 

 

 

1,813

 

 

 

1,832

 

 

 

1,841

 

 

 

1,691

 

Other income

 

 

560

 

 

 

803

 

 

 

587

 

 

 

682

 

 

 

563

 

Less: Gain (loss) on bank investment securities

 

 

 

 

 

1

 

 

 

 

 

 

(3

)

 

 

(1

)

Denominator

 

$

2,350

 

 

 

2,615

 

 

 

2,419

 

 

 

2,526

 

 

 

2,255

 

Efficiency ratio

 

 

53.7

%

 

 

48.9

%

 

 

55.5

%

 

 

53.3

%

 

 

53.6

%

Balance sheet data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

205,791

 

 

 

204,376

 

 

 

202,599

 

 

 

198,592

 

 

 

201,131

 

Goodwill

 

 

(8,465

)

 

 

(8,473

)

 

 

(8,490

)

 

 

(8,494

)

 

 

(8,501

)

Core deposit and other intangible assets

 

 

(170

)

 

 

(185

)

 

 

(201

)

 

 

(218

)

 

 

(236

)

Deferred taxes

 

 

43

 

 

 

46

 

 

 

49

 

 

 

54

 

 

 

56

 

Average tangible assets

 

$

197,199

 

 

 

195,764

 

 

 

193,957

 

 

 

189,934

 

 

 

192,450

 

Average common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total equity

 

$

26,020

 

 

 

25,685

 

 

 

25,377

 

 

 

25,346

 

 

 

25,665

 

Preferred stock

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

Average common equity

 

 

24,009

 

 

 

23,674

 

 

 

23,366

 

 

 

23,335

 

 

 

23,654

 

Goodwill

 

 

(8,465

)

 

 

(8,473

)

 

 

(8,490

)

 

 

(8,494

)

 

 

(8,501

)

Core deposit and other intangible assets

 

 

(170

)

 

 

(185

)

 

 

(201

)

 

 

(218

)

 

 

(236

)

Deferred taxes

 

 

43

 

 

 

46

 

 

 

49

 

 

 

54

 

 

 

56

 

Average tangible common equity

 

$

15,417

 

 

 

15,062

 

 

 

14,724

 

 

 

14,677

 

 

 

14,973

 

At end of quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

209,124

 

 

 

207,672

 

 

 

202,956

 

 

 

200,730

 

 

 

197,955

 

Goodwill

 

 

(8,465

)

 

 

(8,465

)

 

 

(8,490

)

 

 

(8,490

)

 

 

(8,501

)

Core deposit and other intangible assets

 

 

(162

)

 

 

(177

)

 

 

(192

)

 

 

(209

)

 

 

(227

)

Deferred taxes

 

 

41

 

 

 

44

 

 

 

47

 

 

 

51

 

 

 

54

 

Total tangible assets

 

$

200,538

 

 

 

199,074

 

 

 

194,321

 

 

 

192,082

 

 

 

189,281

 

Total common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

26,197

 

 

 

25,801

 

 

 

25,377

 

 

 

25,318

 

 

 

25,256

 

Preferred stock

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

 

 

(2,011

)

Common equity

 

 

24,186

 

 

 

23,790

 

 

 

23,366

 

 

 

23,307

 

 

 

23,245

 

Goodwill

 

 

(8,465

)

 

 

(8,465

)

 

 

(8,490

)

 

 

(8,490

)

 

 

(8,501

)

Core deposit and other intangible assets

 

 

(162

)

 

 

(177

)

 

 

(192

)

 

 

(209

)

 

 

(227

)

Deferred taxes

 

 

41

 

 

 

44

 

 

 

47

 

 

 

51

 

 

 

54

 

Total tangible common equity

 

$

15,600

 

 

 

15,192

 

 

 

14,731

 

 

 

14,659

 

 

 

14,571

 

 

(1) After any related tax effect.

 

17