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M&T Bank Corporation Announces First Quarter Results

BUFFALO, N.Y., April 20, 2015 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2015.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the initial quarter of 2015 were $1.65, up from $1.61 in the first quarter of 2014.  GAAP-basis net income in the recent quarter was $242 million, 6% higher than the $229 million earned in the year-earlier quarter.  Net income for the first three months of 2015 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.02% and 7.99%, respectively, compared with 1.07% and 8.22%, respectively, in the corresponding 2014 period. 

Commenting on M&T's results for the recent quarter, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "Significantly higher mortgage banking revenues in the recent quarter helped M&T record a 6% increase in net income from the first quarter of last year.  Higher origination activity led to improvement in both residential and commercial mortgage banking revenues.  Credit quality remained strong during the quarter with net charge-offs continuing to be well below M&T's historical norm.  We also contained expense growth while making significant investments in our overall risk management infrastructure.  Capital levels continued to strengthen and during the quarter we received a non-objection to our capital plan and proposed capital actions from the Federal Reserve."

Diluted earnings per common share and net income in the fourth quarter of 2014 were $1.92 and $278 million, respectively.  The annualized returns on average assets and average common shareholders' equity in the final 2014 quarter were 1.12% and 9.10%, respectively.

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 $1.68 in the first three months of 2015, compared with $1.66 and $1.95 in the first and fourth quarters of 2014, respectively.  Net operating income for the first quarter of 2015 was $246 million, compared with $235 million and $282 million in the quarters ended March 31 and December 31, 2014, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.08% and 11.90%, respectively, in the first quarter of 2015.  The comparable returns were 1.15% and 12.76% in the year-earlier quarter and 1.18% and 13.55% in the fourth quarter of 2014.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $665 million in the initial quarter of 2015, up from $662 million in the year-earlier period.  Growth in average earning assets, reflecting increases of $4.1 billion in average investment securities, $2.8 billion or 4% in average loan balances and $2.0 billion in average balances of interest-bearing deposits at banks, was largely offset by a 35 basis point (hundredths of one percent) narrowing of the net interest margin to 3.17% in the recent quarter from 3.52% in the first quarter of 2014.  The growth in investment securities resulted from continued progress made in response to regulatory liquidity requirements that will become effective for M&T in January 2016.  The growth in the loan portfolio reflects higher average balances of commercial loans, commercial real estate loans and consumer loans.  The decline in the net interest margin was largely attributable to the higher balances of investment securities and interest-bearing deposits at banks that have substantially lower yields than loans.  Net interest income and the net interest margin in the fourth quarter of 2014 were $688 million and 3.10%, respectively.  The recent quarter's decline in net interest income as compared with the immediately preceding quarter resulted largely from two less days in 2015's initial quarter, lower average balances of interest-bearing deposits at banks and the net impact of actions taken in response to the liquidity requirements that take effect in 2016.  The 7 basis point improvement in net interest margin as compared with the final 2014 quarter was largely due to the lower average balances of interest-bearing deposits at banks, partially offset by higher average balances of investment securities and long-term borrowings.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $38 million in the first quarter of 2015, compared with $32 million and $33 million in the first and fourth quarters of 2014, respectively.  Net charge-offs of loans during the recent quarter aggregated $36 million, compared with $32 million in each of the first and fourth quarters of 2014.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .22% during the first three months of 2015, compared with .20% and .19% in the initial and final quarters of 2014, respectively. 

Loans classified as nonaccrual totaled $791 million or 1.18% of total loans outstanding at March 31, 2015, improved from $891 million or 1.39% a year earlier and $799 million or 1.20% at December 31, 2014. Assets taken in foreclosure of defaulted loans totaled $63 million at March 31, 2015, compared with $59 million and $64 million at March 31, 2014 and December 31, 2014, respectively. 

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of determining the allowance for credit losses.  As a result of those analyses, the allowance totaled $921 million or 1.37% of loans outstanding at March 31, 2015, compared with $917 million or 1.43% a year earlier and $920 million or 1.38% at December 31, 2014

Noninterest Income and Expense.  Noninterest income totaled $440 million in the recent quarter, $420 million in the year-earlier quarter and $452 million in the fourth quarter of 2014.  The improvement as compared with the initial 2014 quarter resulted from higher residential and commercial mortgage banking revenues while the decline as compared with the final quarter of 2014 reflects a decrease in loan syndication fees and seasonally lower trust income and service charges on deposit accounts, partially offset by higher residential mortgage banking revenues.

Effective January 1, 2015, M&T adopted amended guidance from the Financial Accounting Standards Board for investments in qualified affordable housing projects under which the initial cost of such investments is amortized to income tax expense in proportion to the tax benefits received.  The adoption of this accounting guidance did not have a significant effect on M&T's financial position or results of operations, but did result in the restatement of the consolidated financial statements for 2014 and earlier years to remove net costs associated with qualified affordable housing projects from noninterest expense and include the amortization of the investments in income tax expense. 

Reflecting the application of the new accounting guidance, noninterest expense in the first quarter of 2015 aggregated $686 million, compared with $690 million and $666 million in the first and fourth quarters of 2014, respectively.  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 $680 million in each of the first quarters of 2015 and 2014 and $659 million in the fourth quarter of 2014.  Operating expenses in the recent quarter as compared with the year-earlier period reflected lower costs for professional services, FDIC assessments and equipment and net occupancy expenses that were offset by higher salaries and employee benefits expenses.  The rise in operating expenses from the fourth quarter of 2014 to the initial 2015 quarter was predominantly the result of seasonally higher stock-based compensation and employee benefits expenses offset, in part, by lower professional services costs.

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 61.5% in the first quarter of 2015, 62.8% in the year-earlier quarter and 57.8% in the fourth quarter of 2014.

Balance Sheet.  M&T had total assets of $98.4 billion at March 31, 2015, up 11% from $88.5 billion a year earlier.  Investment securities at March 31, 2015 were $14.4 billion, up $4.0 billion or 39% from March 31, 2014.  Loans and leases, net of unearned discount, rose 5% to $67.1 billion at March 31, 2015 from $64.1 billion a year earlier.  Total deposits were $73.6 billion at the recent quarter-end, up 7% from $68.7 billion at March 31, 2014

Total shareholders' equity rose 5% to $12.5 billion at March 31, 2015 from $11.9 billion at March 31, 2014, representing 12.73% and 13.43%, respectively, of total assets.  Common shareholders' equity was $11.3 billion, or $84.95 per share at March 31, 2015, up from $10.7 billion, or $81.05 per share, a year earlier.  Tangible equity per common share rose 8% to $58.29 at March 31, 2015 from $53.92 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $83.88 and $57.06, respectively, at December 31, 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 estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the transitional capital rules that became effective for M&T on January 1, 2015 was approximately 9.78% as of March 31, 2015M&T's estimated Tier 1 common ratio under previously effective regulatory capital rules would have been 9.98% at March 31, 2015, compared with 9.45% and 9.83% at March 31, 2014 and December 31, 2014, respectively. 

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276.  International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID #24457680.  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 Thursday, April 23, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #24457680.  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





Amounts in thousands,



March 31





 except per share



2015


2014


Change













Performance




















Net income 


$

241,613


229,017


6

%

Net income available to common shareholders 



218,837


211,731


3

%











Per common share:










  Basic earnings 


$

1.66


1.63


2

%

  Diluted earnings 



1.65


1.61


2

%

  Cash dividends 


$

.70


.70


-













Common shares outstanding:










  Average - diluted (1) 



132,769


131,126


1

%

  Period end (2) 



132,946


131,431


1

%











Return on (annualized):










  Average total assets 



1.02

%

1.07

%




  Average common shareholders' equity 



7.99

%

8.22

%














Taxable-equivalent net interest income 


$

665,426


662,378


-













Yield on average earning assets 



3.54

%

3.87

%




Cost of interest-bearing liabilities 



.57

%

.55

%




Net interest spread 



2.97

%

3.32

%




Contribution of interest-free funds 



.20

%

.20

%




Net interest margin 



3.17

%

3.52

%














Net charge-offs to average total 










  net loans (annualized) 



.22

%

.20

%














Net operating results (3)




















Net operating income 


$

245,776


235,162


5

%

Diluted net operating earnings per common share 



1.68


1.66


1

%

Return on (annualized):










  Average tangible assets 



1.08

%

1.15

%




  Average tangible common equity 



11.90

%

12.76

%




Efficiency ratio 



61.46

%

62.83

%





































At  March 31





Loan quality



2015


2014


Change













Nonaccrual loans 


$

790,586


890,893


-11

%

Real estate and other foreclosed assets 



62,578


59,407


5

%

  Total nonperforming assets 


$

853,164


950,300


-10

%











Accruing loans past due 90 days or more (4) 


$

236,621


307,017


-23

%











Government guaranteed loans included in totals










  above:










  Nonaccrual loans 


$

60,508


75,959


-20

%

  Accruing loans past due 90 days or more 



193,618


291,418


-34

%











Renegotiated loans 


$

198,911


257,889


-23

%











Acquired accruing loans past due 90 










  days or more (5) 


$

80,110


120,996


-34

%











Purchased impaired loans (6):










  Outstanding customer balance 


$

335,079


534,331





  Carrying amount 



184,018


303,388















Nonaccrual loans to total net loans 



1.18

%

1.39

%














Allowance for credit losses to total loans 



1.37

%

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,




March 31,


December 31,



September 30,


June 30,


March 31,



 except per share




2015


2014



2014


2014


2014























Performance








































Net income 



$

241,613



277,549



275,344



284,336



229,017




Net income available to common shareholders 




218,837



254,239



251,917



260,695



211,731
























Per common share:




















  Basic earnings 



$

1.66



1.93



1.92



1.99



1.63




  Diluted earnings 




1.65



1.92



1.91



1.98



1.61




  Cash dividends 



$

.70



.70



.70



.70



.70
























Common shares outstanding:




















  Average - diluted (1) 




132,769



132,278



132,128



131,828



131,126




  Period end (2) 




132,946



132,354



132,142



131,953



131,431
























Return on (annualized):




















  Average total assets 




1.02

%


1.12

%


1.17

%


1.27

%


1.07

%



  Average common shareholders' equity 




7.99

%


9.10

%


9.18

%


9.79

%


8.22

%























Taxable-equivalent net interest income 



$

665,426



687,847



674,900



674,963



662,378
























Yield on average earning assets 




3.54

%


3.44

%


3.59

%


3.73

%


3.87

%



Cost of interest-bearing liabilities 




.57

%


.52

%


.54

%


.51

%


.55

%



Net interest spread 




2.97

%


2.92

%


3.05

%


3.22

%


3.32

%



Contribution of interest-free funds 




.20

%


.18

%


.18

%


.18

%


.20

%



Net interest margin  




3.17

%


3.10

%


3.23

%


3.40

%


3.52

%























Net charge-offs to average total 




















  net loans (annualized) 




.22

%


.19

%


.17

%


.18

%


.20

%























Net operating results (3)








































Net operating income 



$

245,776



281,929



279,838



289,974



235,162




Diluted net operating earnings per common share 




1.68



1.95



1.94



2.02



1.66




Return on (annualized):




















  Average tangible assets 




1.08

%


1.18

%


1.24

%


1.35

%


1.15

%



  Average tangible common equity 




11.90

%


13.55

%


13.80

%


14.92

%


12.76

%



Efficiency ratio 




61.46

%


57.84

%


58.44

%


58.20

%


62.83

%











































































March 31,


December 31,


September 30,


June 30,


March 31,



Loan quality




2015


2014


2014


2014


2014























Nonaccrual loans 



$

790,586



799,151



847,784



880,134



890,893




Real estate and other foreclosed assets 




62,578



63,635



67,629



59,793



59,407




  Total nonperforming assets 



$

853,164



862,786



915,413



939,927



950,300
























Accruing loans past due 90 days or more (4) 



$

236,621



245,020



312,990



289,016



307,017
























Government guaranteed loans included in totals




















  above:




















  Nonaccrual loans 



$

60,508



69,095



68,586



81,817



75,959




  Accruing loans past due 90 days or more 




193,618



217,822



265,333



275,846



291,418
























Renegotiated loans 



$

198,911



202,633



209,099



270,223



257,889
























Acquired accruing loans past due 90 




















  days or more (5) 



$

80,110



110,367



132,147



134,580



120,996
























Purchased impaired loans (6):




















  Outstanding customer balance 



$

335,079



369,080



429,915



504,584



534,331




  Carrying amount 




184,018



197,737



236,662



282,517



303,388
























Nonaccrual loans to total net loans 




1.18

%


1.20

%


1.29

%


1.36

%


1.39

%























Allowance for credit losses to total loans 




1.37

%


1.38

%


1.40

%


1.42

%


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







March 31





Dollars in thousands


2015


2014


Change












Interest income 

$

738,087


722,952


2

%


Interest expense 


78,499


66,519


18












Net interest income 


659,588


656,433


-












Provision for credit losses 


38,000


32,000


19












Net interest income after









   provision for credit losses 


621,588


624,433


-












Other income









     Mortgage banking revenues 


101,601


80,049


27



     Service charges on deposit accounts 


102,344


104,198


-2



     Trust income  


123,734


121,252


2



     Brokerage services income 


15,461


16,500


-6



     Trading account and foreign exchange gains 


6,231


6,447


-3



     Loss on bank investment securities 


(98)


-


-



     Equity in earnings of Bayview Lending Group LLC 


(4,191)


(4,454)


-



     Other revenues from operations 


95,121


96,115


-1



          Total other income 


440,203


420,107


5












Other expense









     Salaries and employee benefits 


389,893


371,326


5



     Equipment and net occupancy 


66,470


71,167


-7



     Printing, postage and supplies 


9,590


10,956


-12



     Amortization of core deposit and other 









        intangible assets 


6,793


10,062


-32



     FDIC assessments 


10,660


15,488


-31



     Other costs of operations 


202,969


211,235


-4



          Total other expense 


686,375


690,234


-1












Income before income taxes 


375,416


354,306


6












Applicable income taxes 


133,803


125,289


7












Net income

$

241,613


229,017


6

%











 

M&T BANK CORPORATION
















Condensed Consolidated Statement of Income, Five Quarter Trend



















Three months ended




March 31,


December 31,



September 30,



June 30,



March 31,


Dollars in thousands


2015


2014



2014



2014



2014


















Interest income 

$

738,087



756,612



743,023



734,290



722,952


Interest expense 


78,499



74,772



73,964



65,176



66,519


















Net interest income 


659,588



681,840



669,059



669,114



656,433


















Provision for credit losses 


38,000



33,000



29,000



30,000



32,000


















Net interest income after
















   provision for credit losses 


621,588



648,840



640,059



639,114



624,433


















Other income
















     Mortgage banking revenues 


101,601



93,675



93,532



95,656



80,049


     Service charges on deposit accounts 


102,344



106,319



110,071



107,368



104,198


     Trust income  


123,734



128,442



128,671



129,893



121,252


     Brokerage services income 


15,461



15,809



17,416



17,487



16,500


     Trading account and foreign exchange gains 


6,231



8,397



6,988



8,042



6,447


     Loss on bank investment securities 


(98)



-



-



-



-


     Equity in earnings of Bayview Lending Group LLC 


(4,191)



(4,049)



(4,114)



(4,055)



(4,454)


     Other revenues from operations 


95,121



103,050



98,547



102,021



96,115


          Total other income 


440,203



451,643



451,111



456,412



420,107


















Other expense
















     Salaries and employee benefits 


389,893



345,135



348,776



339,713



371,326


     Equipment and net occupancy 


66,470



62,335



67,713



68,084



71,167


     Printing, postage and supplies 


9,590



8,881



9,184



9,180



10,956


     Amortization of core deposit and other 
















        intangible assets 


6,793



7,170



7,358



9,234



10,062


     FDIC assessments 


10,660



11,695



13,193



15,155



15,488


     Other costs of operations  


202,969



231,005



219,135



226,294



211,235


          Total other expense 


686,375



666,221



665,359



667,660



690,234


















Income before income taxes 


375,416



434,262



425,811



427,866



354,306


















Applicable income taxes 


133,803



156,713



150,467



143,530



125,289


















Net income 

$

241,613



277,549



275,344



284,336



229,017


 

M&T BANK CORPORATION


Condensed Consolidated Balance Sheet














March 31




Dollars in thousands



2015


2014


Change











ASSETS


















Cash and due from banks 


$

1,269,816


1,671,052


-24

%










Interest-bearing deposits at banks 



6,291,491


3,299,185


91











Federal funds sold 



97,037


92,066


5











Trading account assets 



363,085


314,807


15











Investment securities 



14,393,270


10,364,249


39











Loans and leases:


















   Commercial, financial, etc.



19,775,494


18,896,070


5


   Real estate - commercial 



27,845,710


26,104,086


7


   Real estate - consumer 



8,504,119


8,774,095


-3


   Consumer 



10,973,719


10,360,827


6


     Total loans and leases, net of unearned discount 



67,099,042


64,135,078


5


        Less: allowance for credit losses 



921,373


916,768


1











  Net loans and leases 



66,177,669


63,218,310


5











Goodwill 



3,524,625


3,524,625


-











Core deposit and other intangible assets 



28,234


58,789


-52











Other assets 



6,232,556


5,987,277


4











  Total assets 


$

98,377,783


88,530,360


11

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits 


$

27,181,120


25,244,200


8

%










Interest-bearing deposits 



46,234,455


43,207,286


7











Deposits at Cayman Islands office 



178,545


247,880


-28











  Total deposits 



73,594,120


68,699,366


7











Short-term borrowings 



193,495


230,209


-16











Accrued interest and other liabilities 



1,552,724


1,462,725


6











Long-term borrowings 



10,509,143


6,251,197


68











  Total liabilities 



85,849,482


76,643,497


12











Shareholders' equity:


















   Preferred 



1,231,500


1,231,500


-


   Common (1)  



11,296,801


10,655,363


6











     Total shareholders' equity 



12,528,301


11,886,863


5











  Total liabilities and shareholders' equity 


$

98,377,783


88,530,360


11

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $152.5 million

       at March 31, 2015 and $25.3 million at March 31, 2014.










 

M&T BANK CORPORATION


















Condensed Consolidated Balance Sheet, Five Quarter Trend






















March 31,


December 31,



September 30,



June 30,



March 31,



Dollars in thousands



2015


2014



2014



2014



2014





















ASSETS




































Cash and due from banks 


$

1,269,816



1,289,965



1,445,877



1,827,197



1,671,052





















Interest-bearing deposits at banks 



6,291,491



6,470,867



7,676,064



3,032,530



3,299,185





















Federal funds sold 



97,037



83,392



77,766



90,239



92,066





















Trading account assets 



363,085



308,175



296,913



313,325



314,807





















Investment securities 



14,393,270



12,993,542



13,348,368



12,120,195



10,364,249





















Loans and leases:




































   Commercial, financial, etc.



19,775,494



19,461,292



19,112,009



19,105,892



18,896,070



   Real estate - commercial 



27,845,710



27,567,569



26,942,847



26,374,274



26,104,086



   Real estate - consumer 



8,504,119



8,657,301



8,663,408



8,656,766



8,774,095



   Consumer 



10,973,719



10,982,794



10,854,095



10,610,761



10,360,827



     Total loans and leases, net of unearned discount 



67,099,042



66,668,956



65,572,359



64,747,693



64,135,078



        Less: allowance for credit losses 



921,373



919,562



918,633



917,666



916,768





















  Net loans and leases 



66,177,669



65,749,394



64,653,726



63,830,027



63,218,310





















Goodwill 



3,524,625



3,524,625



3,524,625



3,524,625



3,524,625





















Core deposit and other intangible assets 



28,234



35,027



42,197



49,555



58,789





















Other assets 



6,232,556



6,230,548



6,162,806



6,047,309



5,987,277





















  Total assets 


$

98,377,783



96,685,535



97,228,342



90,835,002



88,530,360







































LIABILITIES AND SHAREHOLDERS' EQUITY




































Noninterest-bearing deposits 


$

27,181,120



26,947,880



27,440,524



26,088,763



25,244,200





















Interest-bearing deposits 



46,234,455



46,457,591



46,659,442



43,502,602



43,207,286





















Deposits at Cayman Islands office 



178,545



176,582



241,536



237,890



247,880





















  Total deposits 



73,594,120



73,582,053



74,341,502



69,829,255



68,699,366





















Short-term borrowings 



193,495



192,676



164,609



161,631



230,209





















Accrued interest and other liabilities 



1,552,724



1,567,951



1,327,524



1,283,430



1,462,725





















Long-term borrowings 



10,509,143



9,006,959



9,061,391



7,391,931



6,251,197





















  Total liabilities 



85,849,482



84,349,639



84,895,026



78,666,247



76,643,497





















Shareholders' equity:




































   Preferred 



1,231,500



1,231,500



1,231,500



1,231,500



1,231,500



   Common (1) 



11,296,801



11,104,396



11,101,816



10,937,255



10,655,363





















     Total shareholders' equity 



12,528,301



12,335,896



12,333,316



12,168,755



11,886,863





















  Total liabilities and shareholders' equity 


$

98,377,783



96,685,535



97,228,342



90,835,002



88,530,360







































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $152.5 million at March 31, 2015, $181.0 million




         at December 31, 2014 and $25.3 million at March 31, 2014, 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





March 31,


March 31,


December 31,


March 31, 2015 from


Dollars in millions



2015


2014


2014


March 31,


December 31,





Balance

Rate


Balance

Rate


Balance

Rate


2014


2014


ASSETS




































Interest-bearing deposits at banks 


$

5,073

.25

%

3,089

.25

%

9,054

.25

%

64

%


-44

%




















Federal funds sold



97

.10


100

.07


86

.08


-2



14





















Trading account assets 



79

2.87


71

2.68


80

1.76


11



-1





















Investment securities 



13,376

2.67


9,265

3.34


12,978

2.82


44



3





















Loans and leases, net of unearned discount


















  Commercial, financial, etc. 



19,457

3.21


18,476

3.37


19,117

3.25


5



2



  Real estate - commercial 



27,596

4.18


26,143

4.40


27,064

4.24


6



2



  Real estate - consumer



8,572

4.15


8,844

4.19


8,654

4.19


-3



-1



  Consumer 



10,962

4.49


10,300

4.59


10,932

4.49


6



-



     Total loans and leases, net 



66,587

3.97


63,763

4.14


65,767

4.01


4



1





















  Total earning assets 



85,212

3.54


76,288

3.87


87,965

3.44


12



-3





















Goodwill 



3,525



3,525



3,525



-



-





















Core deposit and other intangible assets 



31



64



38



-50



-18





















Other assets 



7,124



6,788



7,116



5



-





















  Total assets 


$

95,892



86,665



98,644



11

%


-3

%
























































LIABILITIES AND SHAREHOLDERS' EQUITY




































Interest-bearing deposits


















  NOW accounts 


$

1,121

.11


988

.12


1,083

.14


14

%


4

%


  Savings deposits 



41,525

.10


38,358

.12


42,949

.10


8



-3



  Time deposits 



3,017

.50


3,460

.46


3,128

.50


-13



-4



  Deposits at Cayman Islands office 



224

.27


380

.22


265

.22


-41



-16



     Total interest-bearing deposits 



45,887

.13


43,186

.15


47,425

.13


6



-3





















Short-term borrowings 



196

.07


264

.05


195

.05


-26



1



Long-term borrowings 



9,835

2.64


5,897

3.47


8,954

2.62


67



10





















Total interest-bearing liabilities 



55,918

.57


49,347

.55


56,574

.52


13



-1





















Noninterest-bearing deposits 



25,811



24,141



28,090



7



-8





















Other liabilities 



1,704



1,529



1,538



11



11





















  Total liabilities



83,433



75,017



86,202



11



-3





















Shareholders' equity 



12,459



11,648



12,442



7



-





















  Total liabilities and shareholders' equity 


$

95,892



86,665



98,644



11

%


-3

%






































Net interest spread 




2.97



3.32



2.92








Contribution of interest-free funds 




.20



.20



.18








Net interest margin  




3.17

%


3.52

%


3.10

%











































 

M&T BANK CORPORATION











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





















































Three months ended






March 31,


December 31,


September 30,


June 30,


March 31,






2015


2014


2014


2014


2014


Income statement data














In thousands, except per share














Net income














Net income 



$

241,613


277,549


275,344


284,336


229,017


Amortization of core deposit and other














  intangible assets (1) 




4,163


4,380


4,494


5,638


6,145


  Net operating income 



$

245,776


281,929


279,838


289,974


235,162


Earnings per common share














Diluted earnings per common share 



$

1.65


1.92


1.91


1.98


1.61


Amortization of core deposit and other














  intangible assets (1)




.03


.03


.03


.04


.05


  Diluted net operating earnings per common share 

$

1.68


1.95


1.94


2.02


1.66


Other expense














Other expense 



$

686,375


666,221


665,359


667,660


690,234


Amortization of core deposit and other














  intangible assets 




(6,793)


(7,170)


(7,358)


(9,234)


(10,062)


  Noninterest operating expense 



$

679,582


659,051


658,001


658,426


680,172


Efficiency ratio














Noninterest operating expense (numerator) 


$

679,582


659,051


658,001


658,426


680,172


Taxable-equivalent net interest income 




665,426


687,847


674,900


674,963


662,378


Other income 




440,203


451,643


451,111


456,412


420,107


Less:  Loss on bank investment securities 



(98)


-


-


-


-


Denominator 



$

1,105,727


1,139,490


1,126,011


1,131,375


1,082,485


Efficiency ratio 




61.46

%

57.84

%

58.44

%

58.20

%

62.83

%





























Balance sheet data














In millions














Average assets














Average assets 



$

95,892


98,644


93,245


89,873


86,665


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(31)


(38)


(45)


(53)


(64)


Deferred taxes 




10


12


14


16


20


  Average tangible assets 



$

92,346


95,093


89,689


86,311


83,096


Average common equity














Average total equity 



$

12,459


12,442


12,247


12,039


11,648


Preferred stock 




(1,232)


(1,231)


(1,232)


(1,231)


(1,072)


  Average common equity 




11,227


11,211


11,015


10,808


10,576


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(31)


(38)


(45)


(53)


(64)


Deferred taxes 




10


12


14


16


20


  Average tangible common equity 



$

7,681


7,660


7,459


7,246


7,007
















At end of quarter














Total assets














Total assets 



$

98,378


96,686


97,228


90,835


88,530


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(28)


(35)


(42)


(49)


(59)


Deferred taxes 




9


11


13


15


19


  Total tangible assets 



$

94,834


93,137


93,674


87,276


84,965


Total common equity














Total equity 



$

12,528


12,336


12,333


12,169


11,887


Preferred stock 




(1,232)


(1,231)


(1,232)


(1,232)


(1,232)


Undeclared dividends - cumulative preferred stock 


(2)


(3)


(2)


(3)


(3)


  Common equity, net of undeclared cumulative












    preferred dividends 




11,294


11,102


11,099


10,934


10,652


Goodwill 




(3,525)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(28)


(35)


(42)


(49)


(59)


Deferred taxes 




9


11


13


15


19


  Total tangible common equity 



$

7,750


7,553


7,545


7,375


7,087






























(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-first-quarter-results-300068371.html

SOURCE M&T Bank Corporation

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