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M&T Bank Corporation Announces 2014 Fourth Quarter and Full-Year Profits

BUFFALO, N.Y., Jan. 20, 2015 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for 2014.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2014 were $1.92, up from $1.56 in the year-earlier quarter and $1.91 in the third quarter of 2014.  GAAP-basis net income in the recent quarter totaled $278 million, compared with $221 million in the fourth quarter of 2013 and $275 million in 2014's third quarter.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was 1.12% and 9.10%, respectively, compared with 1.03% and 7.99%, respectively, in the year-earlier quarter and 1.17% and 9.18%, respectively, in the third quarter of 2014.

For the full year of 2014, diluted earnings per common share were $7.42, compared with $8.20 for 2013.  Net income totaled $1.07 billion in 2014, compared with $1.14 billion in 2013.  The 2013 results reflect after-tax gains from investment securities and loan securitization transactions of $67 million ($110 million pre-tax) or $.51 of diluted earnings per common share.  Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2014 was 1.16% and 9.08%, respectively, compared with 1.36% and 10.93%, respectively, in 2013. 

Commenting on M&T's performance in 2014, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "Results for this past year's final quarter were solid.  We had improved revenues, healthy loan growth, stable expense levels and excellent credit experience.  Overall, 2014 represented a year of considerable investment in our infrastructure.  Significant progress was made on our BSA/AML, compliance, risk management and technology initiatives that will position us well moving forward.  In a year of substantial resource commitment, we further strengthened our already formidable balance sheet by raising our capital and liquidity levels."

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

Diluted net operating earnings per common share were $1.95 in the final quarter of 2014, compared with $1.61 in the year-earlier period and $1.94 in the third quarter of 2014.  Net operating income for the recent quarter was $282 million, compared with $228 million and $280 million in the fourth quarter of 2013 and the third quarter of 2014, respectively.  For the three months ended December 31, 2014, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.18% and 13.55%, respectively, compared with 1.11% and 12.67% in the corresponding 2013 period and 1.24% and 13.80%, respectively, in the third quarter of 2014.

For the year ended December 31, 2014, diluted net operating earnings per common share was $7.57, compared with $8.48 in 2013.  Net operating income for 2014 and 2013 totaled $1.09 billion and $1.17 billion, respectively.  Net operating income in 2014 expressed as a rate of return on average tangible assets and average tangible common shareholders' equity was 1.23% and 13.76%, respectively, compared with 1.47% and 17.79%, respectively, in 2013.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $688 million in the fourth quarter of 2014, up 2% from $673 million earned in the year-earlier quarter and from $675 million recorded in the third quarter of 2014.  As compared with the fourth quarter of 2013, a $12.9 billion rise in average earning assets in the recent quarter, reflecting increases of $6.1 billion in average balances of interest-bearing deposits at banks and $4.6 billion in average investment securities balances, was largely offset by a 46 basis point (hundredths of one percent) decline in the net interest margin to 3.10% in the final 2014 quarter from 3.56% in the year-earlier quarter. The growth in investment securities resulted from progress made in response to new regulatory liquidity requirements that will be effective for M&T in January 2016.  The increase in taxable-equivalent net interest income as compared with the third quarter of 2014 reflects a $5.2 billion rise in average earning assets, due to higher average interest-bearing deposits at banks of $4.0 billion and a $1.0 billion rise in average loans outstanding, largely offset by a 13 basis point decline in the net interest margin, which was attributable to the increased amount of interest-bearing deposits at banks.  For the year ended December 31, 2014, net interest income on a taxable-equivalent basis aggregated $2.70 billion, little changed from 2013. A $7.7 billion or 10% increase in average earning assets in 2014 was offset by a 34 basis point narrowing of the net interest margin to 3.31% in 2014 from 3.65% in 2013.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $33 million during the recent quarter, compared with $42 million in the year-earlier quarter and $29 million in the third quarter of 2014.  Net charge-offs of loans were $32 million during the fourth quarter of 2014, compared with $42 million and $28 million in the final 2013 quarter and the third quarter of 2014, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% and .26% in the fourth quarter of 2014 and 2013, respectively, and .17% in 2014's third quarter.  The provision for credit losses declined 33% to $124 million in 2014 from $185 million in 2013.  Net loan charge-offs during 2014 totaled $121 million, or .19% of average loans outstanding, improved from $183 million, or .28% of average loans in 2013.

Loans classified as nonaccrual declined to $799 million, or 1.20% of total loans outstanding at December 31, 2014, improved from $874 million or 1.36% a year earlier and $848 million or 1.29% at September 30, 2014.  Assets taken in foreclosure of defaulted loans were $64 million at December 31, 2014, improved from $67 million and $68 million at December 31, 2013 and September 30, 2014, respectively. 

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses.  As a result of those analyses, the allowance totaled $920 million or 1.38% of loans outstanding at December 31, 2014, compared with $917 million or 1.43% a year earlier and $919 million or 1.40% at September 30, 2014

Noninterest Income and Expense.  Noninterest income aggregated $452 million in the recently completed quarter, up from $446 million and $451 million in the fourth quarter of 2013 and the third quarter of 2014, respectively.  The improvement as compared with the final 2013 quarter resulted from higher residential mortgage banking revenues associated with loan servicing activities.  

Noninterest income totaled $1.78 billion and $1.87 billion during the years ended December 31, 2014 and 2013, respectively.  The higher level of noninterest income in 2013 was primarily the result of net gains on investment securities and gains on securitization activities, which aggregated $110 million. Excluding those gains, noninterest income in 2014 was up $24 million from 2013. The major contributors to that improvement were higher residential mortgage banking revenues and trust income, partially offset by declines in service charges on deposit accounts and trading account and foreign exchange gains.

Noninterest expense in the fourth quarter of 2014 totaled $680 million, compared with $743 million in the year-earlier quarter and $679 million in 2014's third quarter.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets.  Exclusive of those expenses, noninterest operating expenses were $673 million in the recent quarter, compared with $733 million and $672 million in the fourth quarter of 2013 and the third quarter of 2014, respectively.  The lower noninterest operating expenses in the recent quarter as compared with the year-earlier quarter reflect a decline in professional services costs and a $40 million litigation-related accrual in the final 2013 quarter.

For the year ended December 31, 2014, noninterest expense aggregated $2.74 billion, compared with $2.64 billion in the previous year.  Noninterest operating expenses were $2.71 billion in 2014 and $2.58 billion in 2013.  The increase in noninterest operating expenses was largely attributable to higher costs for professional services and salaries associated with BSA/AML activities, compliance, capital planning and stress testing, and risk management initiatives, partially offset by lower FDIC assessments.

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 59.1% in the recent quarter, compared with 65.5% in the year-earlier quarter and 59.7% in the third quarter of 2014.  The efficiency ratio for the full year 2014 was 60.5%, compared with 57.0% in 2013. 

Balance Sheet.  M&T had total assets of $96.7 billion at December 31, 2014, up 14% from $85.2 billion a year earlier.  Investment securities were $13.0 billion at the recent year-end, up $4.2 billion or 48% from December 31, 2013.  Loans and leases, net of unearned discount, rose 4% to $66.7 billion at the 2014 year-end from $64.1 billion at December 31, 2013.  Total deposits were $73.6 billion at the recent year-end, up 10% or $6.5 billion from $67.1 billion at December 31, 2013

Total shareholders' equity rose $1.0 billion or 9% to $12.3 billion at December 31, 2014 from $11.3 billion a year earlier, representing 12.76% and 13.28%, respectively, of total assets.  Common shareholders' equity was $11.1 billion, or $83.88 per share, at December 31, 2014, compared with $10.4 billion, or $79.81 per share, at December 31, 2013.  Tangible equity per common share rose 9% to $57.06 at December 31, 2014 from $52.45 a year earlier.  Common shareholders' equity per share and tangible equity per share were $83.99 and $57.10, respectively, at September 30, 2014.  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's estimated Tier 1 common ratio, a regulatory capital measure, rose to 9.83% at December 31, 2014, improved from 9.22% and 9.76% at December 31, 2013 and September 30, 2014, respectively.  M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the capital rules approved in July 2013 on a fully phased-in basis was approximately 9.59% as of December 31, 2014.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full-year financial results today at 10:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID #65658552.  The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available until January 23, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #65658552.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.

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

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

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit  losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

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

 

M&T BANK CORPORATION


















Financial Highlights





















Three months ended







Year ended




Amounts in thousands,



December 31







December 31




 except per share



2014


2013


Change





2014


2013


Change




















Performance




































Net income 


$

277,549


221,422


25

%


$

1,066,246


1,138,480


-6

%

Net income available to common shareholders 



254,239


203,451


25

%



978,581


1,062,496


-8

%



















Per common share:


















  Basic earnings 


$

1.93


1.57


23

%


$

7.47


8.26


-10

%

  Diluted earnings 



1.92


1.56


23

%



7.42


8.20


-10

%

  Cash dividends 


$

.70


.70


-




$

2.80


2.80


-




















Common shares outstanding:


















  Average - diluted (1) 



132,278


130,464


1

%



131,844


129,603


2

%

  Period end (2) 



132,354


130,564


1

%



132,354


130,564


1

%



















Return on (annualized):


















  Average total assets 



1.12

%

1.03

%






1.16

%

1.36

%



  Average common shareholders' equity 



9.10

%

7.99

%






9.08

%

10.93

%





















Taxable-equivalent net interest income 


$

687,847


672,683


2

%


$

2,700,088


2,698,200


-




















Yield on average earning assets 



3.44

%

3.92

%






3.65

%

4.03

%



Cost of interest-bearing liabilities 



.52

%

.56

%






.53

%

.60

%



Net interest spread 



2.92

%

3.36

%






3.12

%

3.43

%



Contribution of interest-free funds 



.18

%

.20

%






.19

%

.22

%



Net interest margin 



3.10

%

3.56

%






3.31

%

3.65

%





















Net charge-offs to average total 


















  net loans (annualized) 



.19

%

.26

%






.19

%

.28

%





















Net operating results (3)




































Net operating income 


$

281,929


227,797


24

%


$

1,086,903


1,174,635


-7

%

Diluted net operating earnings per common share 



1.95


1.61


21

%



7.57


8.48


-11

%

Return on (annualized):


















  Average tangible assets 



1.18

%

1.11

%






1.23

%

1.47

%



  Average tangible common equity 



13.55

%

12.67

%






13.76

%

17.79

%



Efficiency ratio 



59.06

%

65.48

%






60.48

%

57.05

%




























































At December 31













Loan quality



2014


2013


Change





























Nonaccrual loans 


$

799,151


874,156


-9

%









Real estate and other foreclosed assets 



63,635


66,875


-5

%









  Total nonperforming assets 


$

862,786


941,031


-8

%



























Accruing loans past due 90 days or more (4) 


$

245,020


368,510


-34

%



























Government guaranteed loans included in totals


















  above:


















  Nonaccrual loans 


$

69,095


63,647


9

%









  Accruing loans past due 90 days or more 



217,822


297,918


-27

%



























Renegotiated loans 


$

202,633


257,092


-21

%



























Acquired accruing loans past due 90 days or more (5) 

$

110,367


130,162


-15

%



























Purchased impaired loans (6):


















  Outstanding customer balance 


$

369,080


579,975


-36

%









  Carrying amount 



197,737


330,792


-40

%



























Nonaccrual loans to total net loans  



1.20

%

1.36

%






























Allowance for credit losses to total loans 



1.38

%

1.43

%
















































(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 herein.

(4)  Excludes acquired loans. 

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

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

 

 

 

M&T BANK CORPORATION




















Financial Highlights, Five Quarter Trend
























Three months ended




Amounts in thousands,




December 31,


September 30,


June 30,


March 31,


December 31,



 except per share




2014


2014


2014


2014


2013























Performance








































Net income



$

277,549



275,344



284,336



229,017



221,422




Net income available to common shareholders 




254,239



251,917



260,695



211,731



203,451
























Per common share:




















  Basic earnings 



$

1.93



1.92



1.99



1.63



1.57




  Diluted earnings 




1.92



1.91



1.98



1.61



1.56




  Cash dividends 



$

.70



.70



.70



.70



.70
























Common shares outstanding:




















  Average - diluted (1) 




132,278



132,128



131,828



131,126



130,464




  Period end (2) 




132,354



132,142



131,953



131,431



130,564
























Return on (annualized):




















  Average total assets  




1.12

%


1.17

%


1.27

%


1.07

%


1.03

%



  Average common shareholders' equity 




9.10

%


9.18

%


9.79

%


8.22

%


7.99

%























Taxable-equivalent net interest income 



$

687,847



674,900



674,963



662,378



672,683
























Yield on average earning assets 




3.44

%


3.59

%


3.73

%


3.87

%


3.92

%



Cost of interest-bearing liabilities 




.52

%


.54

%


.51

%


.55

%


.56

%



Net interest spread




2.92

%


3.05

%


3.22

%


3.32

%


3.36

%



Contribution of interest-free funds 




.18

%


.18

%


.18

%


.20

%


.20

%



Net interest margin 




3.10

%


3.23

%


3.40

%


3.52

%


3.56

%























Net charge-offs to average total 




















  net loans (annualized) 




.19

%


.17

%


.18

%


.20

%


.26

%























Net operating results (3)








































Net operating income 



$

281,929



279,838



289,974



235,162



227,797




Diluted net operating earnings per common share 




1.95



1.94



2.02



1.66



1.61




Return on (annualized):




















  Average tangible assets 




1.18

%


1.24

%


1.35

%


1.15

%


1.11

%



  Average tangible common equity 




13.55

%


13.80

%


14.92

%


12.76

%


12.67

%



Efficiency ratio 




59.06

%


59.67

%


59.39

%


63.95

%


65.48

%











































































December 31,


September 30,


June 30,


March 31,


December 31,



Loan quality




2014


2014


2014


2014


2013























Nonaccrual loans 



$

799,151



847,784



880,134



890,893



874,156




Real estate and other foreclosed assets 




63,635



67,629



59,793



59,407



66,875




  Total nonperforming assets 



$

862,786



915,413



939,927



950,300



941,031
























Accruing loans past due 90 days or more (4) 



$

245,020



312,990



289,016



307,017



368,510
























Government guaranteed loans included in totals




















  above:




















  Nonaccrual loans 



$

69,095



68,586



81,817



75,959



63,647




  Accruing loans past due 90 days or more 




217,822



265,333



275,846



291,418



297,918
























Renegotiated loans 



$

202,633



209,099



270,223



257,889



257,092
























Acquired accruing loans past due 90 days or more (5) 


$

110,367



132,147



134,580



120,996



130,162
























Purchased impaired loans (6):




















  Outstanding customer balance 



$

369,080



429,915



504,584



534,331



579,975




  Carrying amount 




197,737



236,662



282,517



303,388



330,792
























Nonaccrual loans to total net loans 




1.20

%


1.29

%


1.36

%


1.39

%


1.36

%























Allowance for credit losses to total loans 




1.38

%


1.40

%


1.42

%


1.43

%


1.43

%







(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 herein.            


(4)  Excludes acquired loans. 


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


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


 

 

M&T BANK CORPORATION
















Condensed Consolidated Statement of Income


































Three months ended






Year ended






December 31






December 31




Dollars in thousands


2014


2013


Change




2014


2013


Change


















Interest income 

$

756,612


734,466


3

%


$

2,956,877


2,957,334


-

%

Interest expense 


74,772


67,982


10




280,431


284,105


-1


















Net interest income 


681,840


666,484


2




2,676,446


2,673,229


-


















Provision for credit losses 


33,000


42,000


-21




124,000


185,000


-33


















Net interest income after
















   provision for credit losses 


648,840


624,484


4




2,552,446


2,488,229


3


















Other income
















     Mortgage banking revenues 


93,675


82,169


14




362,912


331,265


10


     Service charges on deposit accounts 


106,319


110,436


-4




427,956


446,941


-4


     Trust income 


128,442


125,876


2




508,258


496,008


2


     Brokerage services income 


15,809


15,807


-




67,212


65,647


2


     Trading account and foreign exchange gains 


8,397


13,690


-39




29,874


40,828


-27


     Gain on bank investment securities 


-


-


-




-


56,457


-


     Other-than-temporary impairment losses 
















        recognized in earnings 


-


-


-




-


(9,800)


-


     Equity in earnings of Bayview Lending Group LLC 


(4,049)


(6,136)


-




(16,672)


(16,126)


-


     Other revenues from operations 


103,050


104,404


-1




399,733


453,985


-12


          Total other income 


451,643


446,246


1




1,779,273


1,865,205


-5


















Other expense
















     Salaries and employee benefits 


345,135


336,159


3




1,404,950


1,355,178


4


     Equipment and net occupancy


62,335


68,670


-9




269,299


264,327


2


     Printing, postage and supplies 


8,881


8,808


1




38,201


39,557


-3


     Amortization of core deposit and other 
















        intangible assets 


7,170


10,439


-31




33,824


46,912


-28


     FDIC assessments 


11,695


17,574


-33




55,531


69,584


-20


     Other costs of operations 


244,892


301,422


-19




941,052


860,327


9


          Total other expense 


680,108


743,072


-8




2,742,857


2,635,885


4


















Income before income taxes 


420,375


327,658


28




1,588,862


1,717,549


-7


















Applicable income taxes 


142,826


106,236


34




522,616


579,069


-10


















Net income 

$

277,549


221,422


25

%


$

1,066,246


1,138,480


-6

%

















 

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


2014


2014


2014


2014


2013

















Interest income 

$

756,612



743,023



734,290



722,952



734,466


Interest expense 


74,772



73,964



65,176



66,519



67,982


















Net interest income 


681,840



669,059



669,114



656,433



666,484


















Provision for credit losses 


33,000



29,000



30,000



32,000



42,000


















Net interest income after
















   provision for credit losses 


648,840



640,059



639,114



624,433



624,484


















Other income
















     Mortgage banking revenues 


93,675



93,532



95,656



80,049



82,169


     Service charges on deposit accounts 


106,319



110,071



107,368



104,198



110,436


     Trust income  


128,442



128,671



129,893



121,252



125,876


     Brokerage services income 


15,809



17,416



17,487



16,500



15,807


     Trading account and foreign exchange gains 


8,397



6,988



8,042



6,447



13,690


     Equity in earnings of Bayview Lending Group LLC 


(4,049)



(4,114)



(4,055)



(4,454)



(6,136)


     Other revenues from operations 


103,050



98,547



102,021



96,115



104,404


          Total other income 


451,643



451,111



456,412



420,107



446,246


















Other expense
















     Salaries and employee benefits 


345,135



348,776



339,713



371,326



336,159


     Equipment and net occupancy 


62,335



67,713



68,084



71,167



68,670


     Printing, postage and supplies 


8,881



9,184



9,180



10,956



8,808


     Amortization of core deposit and other 
















        intangible assets 


7,170



7,358



9,234



10,062



10,439


     FDIC assessments 


11,695



13,193



15,155



15,488



17,574


     Other costs of operations 


244,892



233,060



239,828



223,272



301,422


          Total other expense 


680,108



679,284



681,194



702,271



743,072


















Income before income taxes 


420,375



411,886



414,332



342,269



327,658


















Applicable income taxes 


142,826



136,542



129,996



113,252



106,236


















Net income 

$

277,549



275,344



284,336



229,017



221,422


















 

M&T BANK CORPORATION









Condensed Consolidated Balance Sheet





















December 31




Dollars in thousands



2014


2013


Change











ASSETS


















Cash and due from banks 


$

1,289,965


1,573,361


-18

%










Interest-bearing deposits at banks 



6,470,867


1,651,138


292











Federal funds sold and agreements









  to resell securities 



83,392


99,573


-16











Trading account assets 



308,175


376,131


-18











Investment securities 



12,993,542


8,796,497


48











Loans and leases:


















   Commercial, financial, etc.



19,461,292


18,705,216


4


   Real estate - commercial 



27,567,569


26,148,208


5


   Real estate - consumer 



8,657,301


8,928,221


-3


   Consumer 



10,982,794


10,291,514


7


     Total loans and leases, net of unearned discount 



66,668,956


64,073,159


4


        Less: allowance for credit losses



919,562


916,676


-











  Net loans and leases 



65,749,394


63,156,483


4











Goodwill 



3,524,625


3,524,625


-











Core deposit and other intangible assets 



35,027


68,851


-49











Other assets 



6,230,548


5,915,732


5











  Total assets 


$

96,685,535


85,162,391


14

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits 


$

26,947,880


24,661,007


9

%










Interest-bearing deposits 



46,457,591


42,134,859


10











Deposits at Cayman Islands office 



176,582


322,746


-45











  Total deposits 



73,582,053


67,118,612


10











Short-term borrowings 



192,676


260,455


-26











Accrued interest and other liabilities 



1,567,951


1,368,922


15











Long-term borrowings 



9,006,959


5,108,870


76











  Total liabilities 



84,349,639


73,856,859


14











Shareholders' equity:


















   Preferred 



1,231,500


881,500


40


   Common (1) 



11,104,396


10,424,032


7











     Total shareholders' equity 



12,335,896


11,305,532


9











  Total liabilities and shareholders' equity 


$

96,685,535


85,162,391


14

%










(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $181.0 million

       at December 31, 2014 and $64.2 million at December 31, 2013.

 

M&T BANK CORPORATION

















Condensed Consolidated Balance Sheet, Five Quarter Trend






















December 31,


September 30,



June 30,



March 31,



December 31,


Dollars in thousands



2014


2014



2014



2014



2013



















ASSETS


































Cash and due from banks 


$

1,289,965



1,445,877



1,827,197



1,671,052



1,573,361



















Interest-bearing deposits at banks 



6,470,867



7,676,064



3,032,530



3,299,185



1,651,138



















Federal funds sold and agreements

















  to resell securities 



83,392



77,766



90,239



92,066



99,573



















Trading account assets 



308,175



296,913



313,325



314,807



376,131



















Investment securities 



12,993,542



13,348,368



12,120,195



10,364,249



8,796,497



















Loans and leases:


































   Commercial, financial, etc.



19,461,292



19,112,009



19,105,892



18,896,070



18,705,216


   Real estate - commercial 



27,567,569



26,942,847



26,374,274



26,104,086



26,148,208


   Real estate - consumer 



8,657,301



8,663,408



8,656,766



8,774,095



8,928,221


   Consumer 



10,982,794



10,854,095



10,610,761



10,360,827



10,291,514


     Total loans and leases, net of unearned discount 



66,668,956



65,572,359



64,747,693



64,135,078



64,073,159


        Less: allowance for credit losses



919,562



918,633



917,666



916,768



916,676



















  Net loans and leases 



65,749,394



64,653,726



63,830,027



63,218,310



63,156,483



















Goodwill 



3,524,625



3,524,625



3,524,625



3,524,625



3,524,625



















Core deposit and other intangible assets 



35,027



42,197



49,555



58,789



68,851



















Other assets 



6,230,548



6,162,806



6,047,309



5,987,277



5,915,732



















  Total assets 


$

96,685,535



97,228,342



90,835,002



88,530,360



85,162,391




































LIABILITIES AND SHAREHOLDERS' EQUITY


































Noninterest-bearing deposits 


$

26,947,880



27,440,524



26,088,763



25,244,200



24,661,007



















Interest-bearing deposits 



46,457,591



46,659,442



43,502,602



43,207,286



42,134,859



















Deposits at Cayman Islands office 



176,582



241,536



237,890



247,880



322,746



















  Total deposits 



73,582,053



74,341,502



69,829,255



68,699,366



67,118,612



















Short-term borrowings 



192,676



164,609



161,631



230,209



260,455



















Accrued interest and other liabilities 



1,567,951



1,327,524



1,283,430



1,462,725



1,368,922



















Long-term borrowings 



9,006,959



9,061,391



7,391,931



6,251,197



5,108,870



















  Total liabilities 



84,349,639



84,895,026



78,666,247



76,643,497



73,856,859



















Shareholders' equity:


































   Preferred 



1,231,500



1,231,500



1,231,500



1,231,500



881,500


   Common (1) 



11,104,396



11,101,816



10,937,255



10,655,363



10,424,032



















     Total shareholders' equity 



12,335,896



12,333,316



12,168,755



11,886,863



11,305,532



















  Total liabilities and shareholders' equity 


$

96,685,535



97,228,342



90,835,002



88,530,360



85,162,391




































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $181.0 million at December 31, 2014, $25.3 million


         at March 31, 2014 and $64.2 million at December 31, 2013, and accumulated other comprehensive income, net of applicable income tax  


         effect, of $12.5 million at September 30, 2014 and $40.3 million at June 30, 2014.


 

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, 2014 from



December 31,




Dollars in millions



2014


2013


2014


December 31,


September 30,



2014


2013


Change in





Balance


Rate


Balance


Rate


Balance


Rate


2013


2014



Balance


Rate


Balance 


Rate


balance


ASSETS
































































Interest-bearing deposits at banks 


$

9,054


.25

%

2,948


.25

%

5,083


.25

%

207

%


78

%


$

5,342


.25

%

2,139


.24

%

150

%

































Federal funds sold and agreements
































  to resell securities 



86


.08


115


.07


80


.07


-26



7




89


.07


128


.09


-31


































Trading account assets 



80


1.76


82


1.36


70


1.65


-3



15




76


1.81


78


1.91


-2


































Investment securities 



12,978


2.82


8,354


3.32


12,780


2.89


55



2




11,509


3.03


6,615


3.32


74


































Loans and leases, net of unearned discount
































  Commercial, financial, etc.



19,117


3.25


18,096


3.41


18,889


3.29


6



1




18,867


3.31


17,736


3.54


6


  Real estate - commercial 



27,064


4.24


26,231


4.48


26,487


4.19


3



2




26,461


4.26


26,083


4.53


1


  Real estate - consumer 



8,654


4.19


8,990


4.20


8,634


4.17


-4



-




8,719


4.23


10,136


4.12


-14


  Consumer 



10,932


4.49


10,233


4.60


10,753


4.52


7



2




10,618


4.53


11,098


4.60


-4


     Total loans and leases, net 



65,767


4.01


63,550


4.17


64,763


4.00


3



2




64,665


4.05


65,053


4.24


-1


































  Total earning assets 



87,965


3.44


75,049


3.92


82,776


3.59


17



6




81,681


3.65


74,013


4.03


10


































Goodwill 



3,525




3,525




3,525




-



-




3,525




3,525




-


































Core deposit and other intangible assets 



38




74




45




-48



-16




50




90




-44


































Other assets 



7,116




6,682




6,899




6



3




6,887




6,034




14


































  Total assets 


$

98,644




85,330




93,245




16

%


6

%


$

92,143




83,662




10

%

































































































LIABILITIES AND SHAREHOLDERS' EQUITY
































































Interest-bearing deposits
































  NOW accounts 


$

1,083


.14


933


.13


1,037


.15


16

%


4

%


$

1,034


.14


923


.14


12

%

  Savings deposits 



42,949


.10


38,079


.14


41,056


.11


13



5




40,474


.11


36,739


.15


10


  Time deposits 



3,128


.50


3,617


.51


3,227


.47


-14



-3




3,290


.47


4,045


.65


-19


  Deposits at Cayman Islands office 



265


.22


414


.21


325


.20


-36



-18




327


.21


496


.21


-34


     Total interest-bearing deposits 



47,425


.13


43,043


.17


45,645


.14


10



4




45,125


.14


42,203


.20


7


































Short-term borrowings 



195


.05


287


.06


181


.04


-32



7




215


.05


390


.11


-45


Long-term borrowings 



8,954


2.62


5,009


3.91


8,547


2.69


79



5




7,492


2.90


4,941


4.05


52


































Total interest-bearing liabilities 



56,574


.52


48,339


.56


54,373


.54


17



4




52,832


.53


47,534


.60


11


































Noninterest-bearing deposits 



28,090




24,169




25,127




16



12




25,715




23,721




8


































Other liabilities 



1,538




1,713




1,498




-10



3




1,499




1,685




-11


































  Total liabilities 



86,202




74,221




80,998




16



6




80,046




72,940




10


































Shareholders' equity 



12,442




11,109




12,247




12



2




12,097




10,722




13


































  Total liabilities and shareholders' equity 


$

98,644




85,330




93,245




16

%


6

%


$

92,143




83,662




10

%

































































Net interest spread 





2.92




3.36




3.05











3.12




3.43




Contribution of interest-free funds 





.18




.20




.18











.19




.22




Net interest margin 





3.10

%



3.56

%



3.23

%










3.31

%



3.65

%


































































 

M&T BANK CORPORATION













Reconciliation of GAAP to Non-GAAP Measures









































Three months ended



Year ended






December 31



December 31






2014


2013



2014


2013


Income statement data













In thousands, except per share













Net income













Net income 



$

277,549


221,422


$

1,066,246


1,138,480


Amortization of core deposit and other













  intangible assets (1) 




4,380


6,375



20,657


28,644


Merger-related expenses (1) 




-


-



-


7,511


  Net operating income 



$

281,929


227,797


$

1,086,903


1,174,635


Earnings per common share













Diluted earnings per common share 



$

1.92


1.56


$

7.42


8.20


Amortization of core deposit and other













  intangible assets (1) 




.03


.05



.15


.22


Merger-related expenses (1) 




-


-



-


.06


  Diluted net operating earnings per common share 

$

1.95


1.61


$

7.57


8.48


Other expense













Other expense 



$

680,108


743,072


$

2,742,857


2,635,885


Amortization of core deposit and other













  intangible assets  




(7,170)


(10,439)



(33,824)


(46,912)


Merger-related expenses  




-


-



-


(12,364)


  Noninterest operating expense 



$

672,938


732,633


$

2,709,033


2,576,609


Merger-related expenses













Salaries and employee benefits 



$

-


-


$

-


836


Equipment and net occupancy 




-


-



-


690


Printing, postage and supplies 




-


-



-


1,825


Other costs of operations 




-


-



-


9,013


  Total 



$

-


-


$

-


12,364


Efficiency ratio













Noninterest operating expense (numerator) 


$

672,938


732,633


$

2,709,033


2,576,609


Taxable-equivalent net interest income 




687,847


672,683



2,700,088


2,698,200


Other income 




451,643


446,246



1,779,273


1,865,205


Less:  Gain on bank investment securities 



-


-



-


56,457


           Net OTTI losses recognized in earnings 


-


-



-


(9,800)


Denominator 



$

1,139,490


1,118,929


$

4,479,361


4,516,748


Efficiency ratio 




59.06

%

65.48

%


60.48

%

57.05

%



























Balance sheet data













In millions













Average assets













Average assets 



$

98,644


85,330


$

92,143


83,662


Goodwill 




(3,525)


(3,525)



(3,525)


(3,525)


Core deposit and other intangible assets 




(38)


(74)



(50)


(90)


Deferred taxes 




12


23



15


27


  Average tangible assets 



$

95,093


81,754


$

88,583


80,074


Average common equity













Average total equity 



$

12,442


11,109


$

12,097


10,722


Preferred stock 




(1,231)


(881)



(1,192)


(878)


  Average common equity 




11,211


10,228



10,905


9,844


Goodwill 




(3,525)


(3,525)



(3,525)


(3,525)


Core deposit and other intangible assets 




(38)


(74)



(50)


(90)


Deferred taxes 




12


23



15


27


  Average tangible common equity 



$

7,660


6,652


$

7,345


6,256















At end of quarter













Total assets













Total assets 



$

96,686


85,162







Goodwill 




(3,525)


(3,525)







Core deposit and other intangible assets 




(35)


(69)







Deferred taxes 




11


21







  Total tangible assets 



$

93,137


81,589







Total common equity













Total equity 



$

12,336


11,306







Preferred stock 




(1,231)


(882)







Undeclared dividends - cumulative preferred stock 


(3)


(3)







  Common equity, net of undeclared cumulative











    preferred dividends 




11,102


10,421







Goodwill 




(3,525)


(3,525)







Core deposit and other intangible assets 




(35)


(69)







Deferred taxes 




11


21







  Total tangible common equity 



$

7,553


6,848

































(1) After any related tax effect.













 

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,






2014


2014


2014


2014


2013


Income statement data














In thousands, except per share














Net income














Net income 



$

277,549


275,344


284,336


229,017


221,422


Amortization of core deposit and other














  intangible assets (1) 




4,380


4,494


5,638


6,145


6,375


  Net operating income 



$

281,929


279,838


289,974


235,162


227,797


Earnings per common share














Diluted earnings per common share 



$

1.92


1.91


1.98


1.61


1.56


Amortization of core deposit and other














  intangible assets (1) 




.03


.03


.04


.05


.05


  Diluted net operating earnings per common share 

$

1.95


1.94


2.02


1.66


1.61


Other expense














Other expense 



$

680,108


679,284


681,194


702,271


743,072


Amortization of core deposit and other














  intangible assets  




(7,170)


(7,358)


(9,234)


(10,062)


(10,439)


  Noninterest operating expense 



$

672,938


671,926


671,960


692,209


732,633


Efficiency ratio














Noninterest operating expense (numerator) 


$

672,938


671,926


671,960


692,209


732,633


Taxable-equivalent net interest income 




687,847


674,900


674,963


662,378


672,683


Other income 




451,643


451,111


456,412


420,107


446,246


Denominator 



$

1,139,490


1,126,011


1,131,375


1,082,485


1,118,929


Efficiency ratio 




59.06

%

59.67

%

59.39

%

63.95

%

65.48

%





























Balance sheet data














In millions














Average assets














Average assets 



$

98,644


93,245


89,873


86,665


85,330


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(38)


(45)


(53)


(64)


(74)


Deferred taxes 




12


14


16


20


23


  Average tangible assets 



$

95,093


89,689


86,311


83,096


81,754


Average common equity














Average total equity 



$

12,442


12,247


12,039


11,648


11,109


Preferred stock 




(1,231)


(1,232)


(1,231)


(1,072)


(881)


  Average common equity 




11,211


11,015


10,808


10,576


10,228


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(38)


(45)


(53)


(64)


(74)


Deferred taxes 




12


14


16


20


23


  Average tangible common equity 



$

7,660


7,459


7,246


7,007


6,652
















At end of quarter














Total assets














Total assets 



$

96,686


97,228


90,835


88,530


85,162


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(35)


(42)


(49)


(59)


(69)


Deferred taxes 




11


13


15


19


21


  Total tangible assets 



$

93,137


93,674


87,276


84,965


81,589


Total common equity














Total equity 



$

12,336


12,333


12,169


11,887


11,306


Preferred stock 




(1,231)


(1,232)


(1,232)


(1,232)


(882)


Undeclared dividends - cumulative preferred stock 


(3)


(2)


(3)


(3)


(3)


  Common equity, net of undeclared cumulative












    preferred dividends 




11,102


11,099


10,934


10,652


10,421


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(35)


(42)


(49)


(59)


(69)


Deferred taxes 




11


13


15


19


21


  Total tangible common equity 



$

7,553


7,545


7,375


7,087


6,848






























(1) After any related tax effect.




























 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mt-bank-corporation-announces-2014-fourth-quarter-and-full-year-profits-300022773.html

SOURCE M&T Bank Corporation

News Provided by Acquire Media

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