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M&T Bank Corporation Announces Second Quarter Results

BUFFALO, N.Y., July 16, 2015 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2015.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2015 were $1.98, equal to the year-earlier period and 20% higher than the $1.65 recorded in the first quarter of 2015.  GAAP-basis net income in the recently completed quarter totaled $287 million, up from $284 million and $242 million in the second quarter of 2014 and the initial 2015 quarter, respectively.  GAAP-basis net income for the second quarter of 2015 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.18% and 9.37%, respectively, compared with 1.27% and 9.79%, respectively, in the year-earlier quarter and 1.02% and 7.99%, respectively, in the first quarter of 2015.

The recent quarter's results reflect two noteworthy items.  In early April 2015, M&T sold the trade processing business within the retirement services division of its Institutional Client Services business.  That sale resulted in an after-tax gain of approximately $23 million ($45 million pre-tax).  Also during the second quarter of 2015, M&T made $40 million of tax-deductible cash contributions to The M&T Charitable Foundation.  The after-tax impact of those two items lowered net income and diluted earnings per common share during the recent quarter by approximately $1 million and $.01, respectively.

Commenting on the recent quarter's performance, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "M&T's results for the second quarter reflect strong activity in our commercial loan portfolios, as we experienced 10% annualized growth in balances and significantly higher loan syndication fees as compared with the first quarter.  Charge-offs remained at historically low levels and expenses during the quarter were again well-contained.  We were pleased to make a significant contribution to The M&T Charitable Foundation, so that it may continue to support the communities we serve.  M&T's performance in the second quarter was indicative of what we do best - focusing on prudent banking practices that result in internal capital generation while striving to exceed our customers' needs." 

For the six-month period ended June 30, 2015, diluted earnings per common share were $3.63, up from $3.59 in the year-earlier period.  GAAP-basis net income for the first half of 2015 totaled $528 million, 3% higher than $513 million in the corresponding 2014 period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the six-month period ended June 30, 2015 was 1.10% and 8.69%, respectively, compared with 1.17% and 9.02%, respectively, in the similar 2014 period.

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, 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 $2.01 in the recent quarter, compared with $2.02 and $1.68 in the year-earlier quarter and the first quarter of 2015, respectively. Net operating income during each of the second quarters of 2015 and 2014 was $290 million, compared with $246 million in the initial 2015 quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.24% and 13.76%, respectively, in the second quarter of 2015.  The comparable returns were 1.35% and 14.92% in the second quarter of 2014 and 1.08% and 11.90% in the first quarter of 2015.

Diluted net operating earnings per common share in the first six months of 2015 were $3.69, compared with $3.68 in the first half of 2014.  Net operating income during the six-month period ended June 30, 2015 was $536 million, 2% higher than $525 million in the similar 2014 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.16% and 12.85%, respectively, in the first half of 2015, compared with 1.25% and 13.86%, respectively, in the first six months of 2014.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $689 million in the second quarter of 2015, up 4% from $665 million in the first quarter of 2015.  That improvement reflects a $2.1 billion increase in average earning assets, including a $1.1 billion increase in average loans and an $819 million rise in average investment securities resulting from continued purchases of mortgage-backed securities.  The net interest margin during each of the first two quarters of 2015 was 3.17%.  Taxable-equivalent net interest income in the recent quarter was up 2% from $675 million in the year-earlier period.  The effect of growth in average earning assets, predominantly due to increases of $3.2 billion in average investment securities and $3.3 billion in average loans and leases, was partially offset by a 23 basis point narrowing of the net interest margin in the recent quarter from 3.40% in the second quarter of 2014.  The increases in investment securities reflect continued progress made in response to regulatory liquidity requirements that will become effective for M&T in January 2016.   

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $30 million in each of the second quarters of 2015 and 2014, compared with $38 million in the first quarter of 2015.  Net charge-offs of loans were $21 million during the recent quarter, improved from $29 million in the second quarter of 2014 and $36 million in the first quarter of 2015.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .13% and .18% in the second quarters of 2015 and 2014, respectively, and .22% in the first quarter of 2015.

Loans classified as nonaccrual totaled $797 million, or 1.17% of total loans outstanding at June 30, 2015, compared with $880 million or 1.36% a year earlier and $791 million or 1.18% at March 31, 2015.  Assets taken in foreclosure of defaulted loans were $64 million at June 30, 2015, compared with $60 million at June 30, 2014 and $63 million at March 31, 2015.

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 $930 million or 1.36% of loans outstanding at June 30, 2015, compared with $918 million or 1.42% of loans at June 30, 2014 and $921 million or 1.37% of loans at March 31, 2015

Noninterest Income and Expense.  Noninterest income aggregated $497 million in the second quarter of 2015, up from $456 million in the year-earlier quarter and $440 million in the first quarter of 2015.  Reflected in the recent quarter's total was the $45 million pre-tax gain realized from the sale of the trade processing business noted earlier.  Revenues from the divested business, which had been recorded as trust income, aggregated $10 million in the year-ago quarter and $9 million in the first quarter of 2015.  After considering the impact of the recent quarter gain and the revenues recorded in prior quarters related to the sold business, noninterest income in the recent quarter was improved from the second quarter of 2014 and from the initial 2015 quarter.  As compared with the second quarter of 2014, higher mortgage banking revenues and loan syndication fees contributed to that improvement. On that same basis, the rise in noninterest income from the first quarter of 2015 was largely due to higher loan syndication fees, trust income and fees for providing deposit account services.

Noninterest expense in the second quarter of 2015 totaled $697 million, up from $668 million in the year-earlier quarter and $686 million in the first quarter of 2015.  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 $691 million in the recent quarter, compared with $658 million in the second quarter of 2014 and $680 million in 2015's initial quarter.  Reflected in operating expenses in the recent quarter was the aforementioned higher level of contribution to The M&T Charitable Foundation

Without the impact of charitable contributions, noninterest operating expenses in the recent quarter declined from the year-earlier quarter. Higher salaries and employee benefits expenses were more than offset by lower expenses for professional services, FDIC assessments and litigation-related costs.  On that same basis, as compared with the initial 2015 quarter, the recent quarter's lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2015 period.  Also contributing to the decline were reduced costs for professional services that were mitigated by higher legal fees.  The lower operating expense level in the recent quarter was reflective of the noted sale of the trade processing business.

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 58.2% in each of the second quarters of 2015 and 2014, compared with 61.5% in the first quarter of 2015.  Excluding the impact of the two notable items in the recent quarter, the efficiency ratio was 57.0%. 

Balance Sheet.  M&T had total assets of $97.1 billion at June 30, 2015, up 7% from $90.8 billion a year earlier.  Investment securities were $14.8 billion at June 30, 2015, up $2.6 billion or 22% from June 30, 2014.  Loans and leases, net of unearned discount, totaled $68.1 billion at the recent quarter-end, up $3.4 billion or 5% from $64.7 billion at June 30, 2014.  Total deposits rose 4% to $72.6 billion at June 30, 2015 from $69.8 billion a year earlier.

Total shareholders' equity grew 4% to $12.7 billion at June 30, 2015 from $12.2 billion a year earlier, representing 13.05% and 13.40%, respectively, of total assets.  Common shareholders' equity was $11.4 billion, or $85.90 per share, at June 30, 2015, up from $10.9 billion, or $82.86 per share, at June 30, 2014.  Tangible equity per common share rose 6% to $59.39 at the recent quarter-end from $55.89 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $84.95 and $58.29, respectively, at March 31, 2015.  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 9.92%.  M&T's estimated Tier 1 common ratio under previously effective regulatory capital rules would have been 10.11% as of June 30, 2015.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second quarter 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# 78536183. 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 through Monday, July 20, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 78536183.  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







Six months ended




Amounts in thousands,



June 30







June 30




 except per share



2015


2014


Change





2015


2014


Change




















Performance




































Net income


$

286,688


284,336


1

%


$

528,301


513,353


3

%

Net income available to common shareholders



263,481


260,695


1

%



482,313


472,429


2

%



















Per common share:


















  Basic earnings


$

1.99


1.99


-




$

3.65


3.62


1

%

  Diluted earnings



1.98


1.98


-





3.63


3.59


1

%

  Cash dividends


$

.70


.70


-




$

1.40


1.40


-




















Common shares outstanding:


















  Average - diluted (1)



133,116


131,828


1

%



132,944


131,479


1

%

  Period end (2)



133,099


131,953


1

%



133,099


131,953


1

%



















Return on (annualized):


















  Average total assets



1.18

%

1.27

%






1.10

%

1.17

%



  Average common shareholders' equity



9.37

%

9.79

%






8.69

%

9.02

%





















Taxable-equivalent net interest income


$

689,148


674,963


2

%


$

1,354,574


1,337,341


1

%



















Yield on average earning assets



3.52

%

3.73

%






3.53

%

3.80

%



Cost of interest-bearing liabilities



.55

%

.51

%






.56

%

.53

%



Net interest spread



2.97

%

3.22

%






2.97

%

3.27

%



Contribution of interest-free funds



.20

%

.18

%






.20

%

.19

%



Net interest margin



3.17

%

3.40

%






3.17

%

3.46

%





















Net charge-offs to average total 


















  net loans (annualized)



.13

%

.18

%






.17

%

.19

%





















Net operating results (3)




































Net operating income


$

290,341


289,974


-




$

536,117


525,136


2

%

Diluted net operating earnings per common share



2.01


2.02


-





3.69


3.68


-


Return on (annualized):


















  Average tangible assets



1.24

%

1.35

%






1.16

%

1.25

%



  Average tangible common equity



13.76

%

14.92

%






12.85

%

13.86

%



Efficiency ratio



58.23

%

58.20

%






59.79

%

60.46

%




























































At  June 30













Loan quality



2015


2014


Change





























Nonaccrual loans


$

797,146


880,134


-9

%









Real estate and other foreclosed assets



63,734


59,793


7

%









  Total nonperforming assets


$

860,880


939,927


-8

%



























Accruing loans past due 90 days or more (4)


$

238,568


289,016


-17

%



























Government guaranteed loans included in totals


















  above:


















  Nonaccrual loans


$

58,259


81,817


-29

%









  Accruing loans past due 90 days or more



206,775


275,846


-25

%



























Renegotiated loans


$

197,145


270,223


-27

%



























Acquired accruing loans past due 90 


















  days or more (5)


$

78,591


134,580


-42

%



























Purchased impaired loans (6):


















  Outstanding customer balance


$

294,381


504,584


-42

%









  Carrying amount



169,240


282,517


-40

%



























Nonaccrual loans to total net loans



1.17

%

1.36

%






























Allowance for credit losses to total loans



1.36

%

1.42

%














(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,




June 30,


March 31,


December 31,


September 30,


June 30,

 except per share




2015


2015


2014


2014


2014



















Performance




































Net income



$

286,688



241,613



277,549



275,344



284,336


Net income available to common shareholders




263,481



218,837



254,239



251,917



260,695




















Per common share:


















  Basic earnings



$

1.99



1.66



1.93



1.92



1.99


  Diluted earnings




1.98



1.65



1.92



1.91



1.98


  Cash dividends



$

.70



.70



.70



.70



.70




















Common shares outstanding:


















  Average - diluted (1)




133,116



132,769



132,278



132,128



131,828


  Period end (2)




133,099



132,946



132,354



132,142



131,953




















Return on (annualized):


















  Average total assets




1.18

%


1.02

%


1.12

%


1.17

%


1.27

%

  Average common shareholders' equity




9.37

%


7.99

%


9.10

%


9.18

%


9.79

%



















Taxable-equivalent net interest income



$

689,148



665,426



687,847



674,900



674,963




















Yield on average earning assets




3.52

%


3.54

%


3.44

%


3.59

%


3.73

%

Cost of interest-bearing liabilities




.55

%


.57

%


.52

%


.54

%


.51

%

Net interest spread




2.97

%


2.97

%


2.92

%


3.05

%


3.22

%

Contribution of interest-free funds




.20

%


.20

%


.18

%


.18

%


.18

%

Net interest margin




3.17

%


3.17

%


3.10

%


3.23

%


3.40

%



















Net charge-offs to average total 


















  net loans (annualized)




.13

%


.22

%


.19

%


.17

%


.18

%



















Net operating results (3)




































Net operating income



$

290,341



245,776



281,929



279,838



289,974


Diluted net operating earnings per common share




2.01



1.68



1.95



1.94



2.02


Return on (annualized):


















  Average tangible assets




1.24

%


1.08

%


1.18

%


1.24

%


1.35

%

  Average tangible common equity




13.76

%


11.90

%


13.55

%


13.80

%


14.92

%

Efficiency ratio




58.23

%


61.46

%


57.84

%


58.44

%


58.20

%

































































June 30,


March 31,


December 31,


September 30,


June 30,

Loan quality




2015


2015


2014


2014


2014



















Nonaccrual loans



$

797,146



790,586



799,151



847,784



880,134


Real estate and other foreclosed assets




63,734



62,578



63,635



67,629



59,793


  Total nonperforming assets



$

860,880



853,164



862,786



915,413



939,927




















Accruing loans past due 90 days or more (4)



$

238,568



236,621



245,020



312,990



289,016




















Government guaranteed loans included in totals


















  above:


















  Nonaccrual loans



$

58,259



60,508



69,095



68,586



81,817


  Accruing loans past due 90 days or more




206,775



193,618



217,822



265,333



275,846




















Renegotiated loans



$

197,145



198,911



202,633



209,099



270,223




















Acquired accruing loans past due 90 


















  days or more (5)



$

78,591



80,110



110,367



132,147



134,580




















Purchased impaired loans (6):


















  Outstanding customer balance



$

294,381



335,079



369,080



429,915



504,584


  Carrying amount




169,240



184,018



197,737



236,662



282,517




















Nonaccrual loans to total net loans




1.17

%


1.18

%


1.20

%


1.29

%


1.36

%



















Allowance for credit losses to total loans




1.36

%


1.37

%


1.38

%


1.40

%


1.42

%



(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






Six months ended






June 30






June 30




Dollars in thousands


2015


2014


Change




2015


2014


Change


















Interest income

$

760,354


734,290


4

%


$

1,498,441


1,457,242


3

%

Interest expense


77,226


65,176


18




155,725


131,695


18


















Net interest income


683,128


669,114


2




1,342,716


1,325,547


1


















Provision for credit losses


30,000


30,000


-




68,000


62,000


10


















Net interest income after
















   provision for credit losses


653,128


639,114


2




1,274,716


1,263,547


1


















Other income
















     Mortgage banking revenues


102,602


95,656


7




204,203


175,705


16


     Service charges on deposit accounts


105,257


107,368


-2




207,601


211,566


-2


     Trust income 


118,598


129,893


-9




242,332


251,145


-4


     Brokerage services income


16,861


17,487


-4




32,322


33,987


-5


     Trading account and foreign exchange gains


6,046


8,042


-25




12,277


14,489


-15


     Loss on bank investment securities


(10)


-


-




(108)


-


-


     Equity in earnings of Bayview Lending Group LLC


(3,131)


(4,055)


-




(7,322)


(8,509)


-


     Other revenues from operations


150,804


102,021


48




245,925


198,136


24


          Total other income


497,027


456,412


9




937,230


876,519


7


















Other expense
















     Salaries and employee benefits


361,657


339,713


6




751,550


711,039


6


     Equipment and net occupancy


66,852


68,084


-2




133,322


139,251


-4


     Printing, postage and supplies


9,305


9,180


1




18,895


20,136


-6


     Amortization of core deposit and other 
















        intangible assets


5,965


9,234


-35




12,758


19,296


-34


     FDIC assessments


10,801


15,155


-29




21,461


30,643


-30


     Other costs of operations


242,048


226,294


7




445,017


437,529


2


          Total other expense


696,628


667,660


4




1,383,003


1,357,894


2


















Income before income taxes


453,527


427,866


6




828,943


782,172


6


















Applicable income taxes


166,839


143,530


16




300,642


268,819


12


















Net income

$

286,688


284,336


1

%


$

528,301


513,353


3

%

 

 

M&T BANK CORPORATION
















Condensed Consolidated Statement of Income, Five Quarter Trend
































Three months ended




June 30,


March 31,


December 31,


September 30,


June 30,

Dollars in thousands


2015


2015


2014


2014


2014

















Interest income

$

760,354



738,087



756,612



743,023



734,290


Interest expense


77,226



78,499



74,772



73,964



65,176


















Net interest income


683,128



659,588



681,840



669,059



669,114


















Provision for credit losses


30,000



38,000



33,000



29,000



30,000


















Net interest income after
















   provision for credit losses


653,128



621,588



648,840



640,059



639,114


















Other income
















     Mortgage banking revenues


102,602



101,601



93,675



93,532



95,656


     Service charges on deposit accounts


105,257



102,344



106,319



110,071



107,368


     Trust income


118,598



123,734



128,442



128,671



129,893


     Brokerage services income


16,861



15,461



15,809



17,416



17,487


     Trading account and foreign exchange gains


6,046



6,231



8,397



6,988



8,042


     Loss on bank investment securities


(10)



(98)



-



-



-


     Equity in earnings of Bayview Lending Group LLC


(3,131)



(4,191)



(4,049)



(4,114)



(4,055)


     Other revenues from operations


150,804



95,121



103,050



98,547



102,021


          Total other income


497,027



440,203



451,643



451,111



456,412


















Other expense
















     Salaries and employee benefits


361,657



389,893



345,135



348,776



339,713


     Equipment and net occupancy


66,852



66,470



62,335



67,713



68,084


     Printing, postage and supplies


9,305



9,590



8,881



9,184



9,180


     Amortization of core deposit and other 
















        intangible assets


5,965



6,793



7,170



7,358



9,234


     FDIC assessments


10,801



10,660



11,695



13,193



15,155


     Other costs of operations


242,048



202,969



231,005



219,135



226,294


          Total other expense


696,628



686,375



666,221



665,359



667,660


















Income before income taxes


453,527



375,416



434,262



425,811



427,866


















Applicable income taxes


166,839



133,803



156,713



150,467



143,530


















Net income

$

286,688



241,613



277,549



275,344



284,336


 

 

M&T BANK CORPORATION









Condensed Consolidated Balance Sheet





















June 30




Dollars in thousands



2015


2014


Change











ASSETS


















Cash and due from banks


$

1,347,858


1,827,197


-26

%










Interest-bearing deposits at banks



4,045,852


3,032,530


33











Federal funds sold



3,000


90,239


-97











Trading account assets



277,009


313,325


-12











Investment securities



14,751,637


12,120,195


22











Loans and leases:


















   Commercial, financial, etc.



20,111,028


19,105,892


5


   Real estate - commercial



28,442,488


26,374,274


8


   Real estate - consumer



8,444,542


8,656,766


-2


   Consumer



11,133,194


10,610,761


5


     Total loans and leases, net of unearned discount



68,131,252


64,747,693


5


        Less: allowance for credit losses



929,987


917,666


1











  Net loans and leases



67,201,265


63,830,027


5











Goodwill



3,513,325


3,524,625


-











Core deposit and other intangible assets



22,269


49,555


-55











Other assets



5,917,861


6,047,309


-2











  Total assets


$

97,080,076


90,835,002


7

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits


$

27,674,588


26,088,763


6

%










Interest-bearing deposits



44,787,590


43,502,602


3











Deposits at Cayman Islands office



167,441


237,890


-30











  Total deposits



72,629,619


69,829,255


4











Short-term borrowings



153,299


161,631


-5











Accrued interest and other liabilities



1,453,249


1,283,430


13











Long-term borrowings



10,175,912


7,391,931


38











  Total liabilities



84,412,079


78,666,247


7











Shareholders' equity:


















   Preferred



1,231,500


1,231,500


-


   Common (1)



11,436,497


10,937,255


5











     Total shareholders' equity



12,667,997


12,168,755


4











  Total liabilities and shareholders' equity


$

97,080,076


90,835,002


7

%


(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $217.5 million at June 30, 2015


  and accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30, 2014.

 


 

M&T BANK CORPORATION

















Condensed Consolidated Balance Sheet, Five Quarter Trend























June 30,


March 31,



December 31,



September 30,



June 30,


Dollars in thousands



2015


2015



2014



2014



2014



















ASSETS


































Cash and due from banks


$

1,347,858



1,269,816



1,289,965



1,445,877



1,827,197



















Interest-bearing deposits at banks



4,045,852



6,291,491



6,470,867



7,676,064



3,032,530



















Federal funds sold



3,000



97,037



83,392



77,766



90,239



















Trading account assets



277,009



363,085



308,175



296,913



313,325



















Investment securities



14,751,637



14,393,270



12,993,542



13,348,368



12,120,195



















Loans and leases:


































   Commercial, financial, etc.



20,111,028



19,775,494



19,461,292



19,112,009



19,105,892


   Real estate - commercial



28,442,488



27,845,710



27,567,569



26,942,847



26,374,274


   Real estate - consumer



8,444,542



8,504,119



8,657,301



8,663,408



8,656,766


   Consumer



11,133,194



10,973,719



10,982,794



10,854,095



10,610,761


     Total loans and leases, net of unearned discount



68,131,252



67,099,042



66,668,956



65,572,359



64,747,693


        Less: allowance for credit losses



929,987



921,373



919,562



918,633



917,666



















  Net loans and leases



67,201,265



66,177,669



65,749,394



64,653,726



63,830,027



















Goodwill



3,513,325



3,524,625



3,524,625



3,524,625



3,524,625



















Core deposit and other intangible assets



22,269



28,234



35,027



42,197



49,555



















Other assets



5,917,861



6,232,556



6,230,548



6,162,806



6,047,309



















  Total assets


$

97,080,076



98,377,783



96,685,535



97,228,342



90,835,002




































LIABILITIES AND SHAREHOLDERS' EQUITY


































Noninterest-bearing deposits


$

27,674,588



27,181,120



26,947,880



27,440,524



26,088,763



















Interest-bearing deposits



44,787,590



46,234,455



46,457,591



46,659,442



43,502,602



















Deposits at Cayman Islands office



167,441



178,545



176,582



241,536



237,890



















  Total deposits



72,629,619



73,594,120



73,582,053



74,341,502



69,829,255



















Short-term borrowings



153,299



193,495



192,676



164,609



161,631



















Accrued interest and other liabilities



1,453,249



1,552,724



1,567,951



1,327,524



1,283,430



















Long-term borrowings



10,175,912



10,509,143



9,006,959



9,061,391



7,391,931



















  Total liabilities



84,412,079



85,849,482



84,349,639



84,895,026



78,666,247



















Shareholders' equity:


































   Preferred



1,231,500



1,231,500



1,231,500



1,231,500



1,231,500


   Common (1)



11,436,497



11,296,801



11,104,396



11,101,816



10,937,255



















     Total shareholders' equity



12,667,997



12,528,301



12,335,896



12,333,316



12,168,755



















  Total liabilities and shareholders' equity


$

97,080,076



98,377,783



96,685,535



97,228,342



90,835,002




(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $217.5 million at June 30, 2015, $152.5 million at


  March 31, 2015 and $181.0 million at December 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



Six months ended







June 30,


June 30,


March 31,


June 30, 2015 from



June 30




Dollars in millions



2015


2014


2015


June 30,


March 31,



2015


2014


Change in





Balance

Rate


Balance

Rate


Balance

Rate


2014


2015



Balance

Rate


Balance 

Rate


balance


ASSETS






















































Interest-bearing deposits at banks 


$

5,326

.25

%

4,080

.25

%

5,073

.25

%

31

%


5

%


$

5,200

.25

%

3,587

.25

%

45

%




























Federal funds sold



39

.10


90

.07


97

.10


-57



-60




68

.10


95

.07


-28





























Trading account assets



103

.92


84

1.25


79

2.87


23



31




91

1.76


78

1.91


17





























Investment securities



14,195

2.68


10,959

3.19


13,376

2.67


30



6




13,787

2.67


10,117

3.26


36





























Loans and leases, net of unearned discount



























  Commercial, financial, etc.



19,973

3.18


18,978

3.34


19,457

3.21


5



3




19,717

3.19


18,728

3.35


5


  Real estate - commercial



28,208

4.19


26,140

4.22


27,596

4.18


8



2




27,904

4.18


26,141

4.31


7


  Real estate - consumer



8,447

4.19


8,746

4.36


8,572

4.15


-3



-1




8,509

4.17


8,795

4.27


-3


  Consumer



11,042

4.46


10,479

4.52


10,962

4.49


5



1




11,002

4.48


10,390

4.56


6


     Total loans and leases, net



67,670

3.96


64,343

4.05


66,587

3.97


5



2




67,132

3.97


64,054

4.09


5





























  Total earning assets



87,333

3.52


79,556

3.73


85,212

3.54


10



2




86,278

3.53


77,931

3.80


11





























Goodwill



3,514



3,525



3,525








3,520



3,525































Core deposit and other intangible assets



25



53



31



-54



-21




28



59



-52





























Other assets



6,726



6,739



7,124





-6




6,924



6,763



2





























  Total assets


$

97,598



89,873



95,892



9

%


2

%


$

96,750



88,278



10

%


















































































LIABILITIES AND SHAREHOLDERS' EQUITY






















































Interest-bearing deposits



























  NOW accounts


$

1,333

.11


1,026

.13


1,121

.11


30

%


19

%


$

1,228

.11


1,007

.13


22

%

  Savings deposits



41,712

.10


39,478

.11


41,525

.10


6






41,619

.10


38,921

.12


7


  Time deposits



2,948

.50


3,350

.46


3,017

.50


-12



-2




2,982

.50


3,404

.46


-12


  Deposits at Cayman Islands office



212

.28


339

.21


224

.27


-38



-5




218

.27


360

.22


-39


     Total interest-bearing deposits



46,205

.13


44,193

.14


45,887

.13


5



1




46,047

.13


43,692

.15


5





























Short-term borrowings



195

.07


220

.05


196

.07


-11



-1




196

.07


242

.05


-19


Long-term borrowings



10,164

2.47


6,525

3.05


9,835

2.64


56



3




10,000

2.55


6,213

3.25


61





























Total interest-bearing liabilities



56,564

.55


50,938

.51


55,918

.57


11



1




56,243

.56


50,147

.53


12





























Noninterest-bearing deposits



26,753



25,466



25,811



5



4




26,285



24,807



6





























Other liabilities



1,645



1,430



1,704



15



-3




1,674



1,479



13





























  Total liabilities



84,962



77,834



83,433



9



2




84,202



76,433



10





























Shareholders' equity



12,636



12,039



12,459



5



1




12,548



11,845



6





























  Total liabilities and shareholders' equity


$

97,598



89,873



95,892



9

%


2

%


$

96,750



88,278



10

%























































Net interest spread




2.97



3.22



2.97










2.97



3.27




Contribution of interest-free funds




.20



.18



.20










.20



.19




Net interest margin 




3.17

%


3.40

%


3.17

%









3.17

%


3.46

%


 

 

 

M&T BANK CORPORATION













Reconciliation of Quarterly GAAP to Non-GAAP Measures








































Three months ended



Six months ended






June 30



June 30






2015


2014



2015


2014


Income statement data













In thousands, except per share













Net income













Net income



$

286,688


284,336


$

528,301


513,353


Amortization of core deposit and other













  intangible assets (1)




3,653


5,638



7,816


11,783


  Net operating income



$

290,341


289,974


$

536,117


525,136


Earnings per common share













Diluted earnings per common share



$

1.98


1.98


$

3.63


3.59


Amortization of core deposit and other













  intangible assets (1)




.03


.04



.06


.09


  Diluted net operating earnings per common share

$

2.01


2.02


$

3.69


3.68


Other expense













Other expense



$

696,628


667,660


$

1,383,003


1,357,894


Amortization of core deposit and other













  intangible assets




(5,965)


(9,234)



(12,758)


(19,296)


  Noninterest operating expense



$

690,663


658,426


$

1,370,245


1,338,598


Efficiency ratio













Noninterest operating expense (numerator)


$

690,663


658,426


$

1,370,245


1,338,598


Taxable-equivalent net interest income




689,148


674,963



1,354,574


1,337,341


Other income




497,027


456,412



937,230


876,519


Less:  Loss on bank investment securities



(10)


-



(108)


-


Denominator



$

1,186,185


1,131,375


$

2,291,912


2,213,860


Efficiency ratio




58.23

%

58.20

%


59.79

%

60.46

%



























Balance sheet data













In millions













Average assets













Average assets



$

97,598


89,873


$

96,750


88,278


Goodwill




(3,514)


(3,525)



(3,520)


(3,525)


Core deposit and other intangible assets




(25)


(53)



(28)


(59)


Deferred taxes




8


16



9


18


  Average tangible assets



$

94,067


86,311


$

93,211


84,712


Average common equity













Average total equity



$

12,636


12,039


$

12,548


11,845


Preferred stock




(1,232)


(1,231)



(1,232)


(1,152)


  Average common equity




11,404


10,808



11,316


10,693


Goodwill




(3,514)


(3,525)



(3,520)


(3,525)


Core deposit and other intangible assets




(25)


(53)



(28)


(59)


Deferred taxes




8


16



9


18


  Average tangible common equity



$

7,873


7,246


$

7,777


7,127















At end of quarter













Total assets













Total assets



$

97,080


90,835







Goodwill




(3,513)


(3,525)







Core deposit and other intangible assets




(22)


(49)







Deferred taxes




7


15







  Total tangible assets



$

93,552


87,276







Total common equity













Total equity



$

12,668


12,169







Preferred stock




(1,232)


(1,232)







Undeclared dividends - cumulative preferred stock


(3)


(3)







  Common equity, net of undeclared cumulative











    preferred dividends




11,433


10,934







Goodwill




(3,513)


(3,525)







Core deposit and other intangible assets




(22)


(49)







Deferred taxes




7


15







  Total tangible common equity



$

7,905


7,375










(1) After any related tax effect.


 

 

 

M&T BANK CORPORATION














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






















































Three months ended






June 30,


March 31,


December 31,


September 30,


June 30,






2015


2015


2014


2014


2014


Income statement data














In thousands, except per share














Net income














Net income



$

286,688


241,613


277,549


275,344


284,336


Amortization of core deposit and other














  intangible assets (1)




3,653


4,163


4,380


4,494


5,638


  Net operating income



$

290,341


245,776


281,929


279,838


289,974


Earnings per common share














Diluted earnings per common share



$

1.98


1.65


1.92


1.91


1.98


Amortization of core deposit and other














  intangible assets (1)




.03


.03


.03


.03


.04


  Diluted net operating earnings per common share

$

2.01


1.68


1.95


1.94


2.02


Other expense














Other expense



$

696,628


686,375


666,221


665,359


667,660


Amortization of core deposit and other














  intangible assets




(5,965)


(6,793)


(7,170)


(7,358)


(9,234)


  Noninterest operating expense



$

690,663


679,582


659,051


658,001


658,426


Efficiency ratio














Noninterest operating expense (numerator)


$

690,663


679,582


659,051


658,001


658,426


Taxable-equivalent net interest income




689,148


665,426


687,847


674,900


674,963


Other income




497,027


440,203


451,643


451,111


456,412


Less:  Loss on bank investment securities



(10)


(98)


-


-


-


Denominator



$

1,186,185


1,105,727


1,139,490


1,126,011


1,131,375


Efficiency ratio




58.23

%

61.46

%

57.84

%

58.44

%

58.20

%





























Balance sheet data














In millions














Average assets














Average assets



$

97,598


95,892


98,644


93,245


89,873


Goodwill




(3,514)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 




(25)


(31)


(38)


(45)


(53)


Deferred taxes




8


10


12


14


16


  Average tangible assets



$

94,067


92,346


95,093


89,689


86,311


Average common equity














Average total equity



$

12,636


12,459


12,442


12,247


12,039


Preferred stock




(1,232)


(1,232)


(1,231)


(1,232)


(1,231)


  Average common equity




11,404


11,227


11,211


11,015


10,808


Goodwill




(3,514)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(25)


(31)


(38)


(45)


(53)


Deferred taxes




8


10


12


14


16


  Average tangible common equity



$

7,873


7,681


7,660


7,459


7,246
















At end of quarter














Total assets














Total assets



$

97,080


98,378


96,686


97,228


90,835


Goodwill




(3,513)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(22)


(28)


(35)


(42)


(49)


Deferred taxes




7


9


11


13


15


  Total tangible assets



$

93,552


94,834


93,137


93,674


87,276


Total common equity














Total equity



$

12,668


12,528


12,336


12,333


12,169


Preferred stock




(1,232)


(1,232)


(1,231)


(1,232)


(1,232)


Undeclared dividends - cumulative preferred stock 


(3)


(2)


(3)


(2)


(3)


  Common equity, net of undeclared cumulative












    preferred dividends




11,433


11,294


11,102


11,099


10,934


Goodwill




(3,513)


(3,525)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets




(22)


(28)


(35)


(42)


(49)


Deferred taxes




7


9


11


13


15


  Total tangible common equity



$

7,905


7,750


7,553


7,545


7,375





(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-second-quarter-results-300114286.html

SOURCE M&T Bank Corporation

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