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M&T Bank Corporation Announces Third Quarter Results

BUFFALO, N.Y., Oct. 19, 2015 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2015.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2015 were $1.93, up from $1.91 in the year-earlier quarter.  GAAP-basis net income in the recent quarter aggregated $280 million, improved from $275 million in the third quarter of 2014.  Diluted earnings per common share and GAAP-basis net income were $1.98 and $287 million, respectively, in 2015's second quarter. GAAP-basis net income for the third quarter of 2015 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.13% and 8.93%, respectively, compared with 1.17% and 9.18%, respectively, in the year-earlier quarter and 1.18% and 9.37%, respectively, in 2015's second quarter. 

Commenting on M&T's financial performance for the recent quarter, Rene F. Jones, Vice Chairman and Chief Financial Officer, noted, "Financial results for the third quarter reflected growth in net interest income and several core noninterest income categories as compared with the second quarter dampened by a slowdown in mortgage loan origination activities that depressed both residential and commercial mortgage banking revenues. Significantly, year over year revenues were up and expenses were down, and our credit quality remained strong.  We have quickly resumed working on our merger with Hudson City, and will soon be positioned with our new colleagues to bring the full array of M&T's banking products and services to the communities across New Jersey."

For the first nine months of 2015, diluted earnings per common share were $5.56, improved from $5.50 in the similar period of 2014. GAAP-basis net income for the nine-month period ended September 30, 2015 aggregated $809 million, 3% higher than $789 million in the year-earlier period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the first nine months of 2015 was 1.11% and 8.77%, respectively, compared with 1.17% and 9.07%, respectively, in the corresponding 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 $1.95 in the third quarter of 2015, compared with $1.94 in the year-earlier quarter and $2.01 in the second quarter of 2015.  Net operating income during the recent quarter was $283 million, compared with $280 million in the third quarter of 2014 and $290 million in 2015's second quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.18% and 12.98%, respectively, in the recent quarter, 1.24% and 13.80%, respectively, in the third quarter of 2014 and 1.24% and 13.76%, respectively, in the second quarter of 2015. 

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $699 million in the third quarter of 2015, up 4% from $675 million in the third quarter of 2014. Contributing to that improvement was a $5.7 billion increase in average earning assets, partially offset by a 9 basis point narrowing of the net interest margin.  The growth in earning assets included a $3.1 billion rise in average loans and leases and a $1.7 billion increase in average investment securities.  Taxable-equivalent net interest income in the recent quarter was up an annualized 6% from $689 million in the second 2015 quarter. That improvement reflects a $179 million increase in average loans outstanding, tempered by a 3 basis point narrowing of the net interest margin.  In each quarterly comparison, the decline in the net interest margin includes the effect of increased lower-yielding balances of investment securities and deposits held at the Federal Reserve Bank of New York.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $44 million in the recent quarter, compared with $29 million in the third quarter of 2014 and $30 million in 2015's second quarter. Net charge-offs of loans were $40 million during the third quarter of 2015, compared with $28 million and $21 million in the third quarter of 2014 and second quarter of 2015, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .24% and .17% in the third quarter of 2015 and 2014, respectively, and .13% in the second quarter of 2015.

Loans classified as nonaccrual declined to $787 million, or 1.15% of total loans outstanding at September 30, 2015, improved from $848 million or 1.29% at September 30, 2014 and $797 million or 1.17% at June 30, 2015.  Assets taken in foreclosure of defaulted loans totaled $66 million at September 30, 2015, compared with $68 million a year earlier and $64 million at June 30, 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 $934 million and $930 million at September 30 and June 30, 2015, respectively, or 1.36% of loans outstanding at each of those dates, compared with $919 million or 1.40% at September 30, 2014

Noninterest Income and Expense.  Noninterest income totaled $440 million in the recent quarter, compared with $451 million in the third quarter of 2014 and $497 million in the second quarter of 2015.  The decline from the second 2015 quarter was largely due to a $45 million gain in the second quarter of 2015 from the sale of M&T's trade processing business within its retirement services division and to lower mortgage banking revenues.  As compared with 2014's third quarter, the recent quarter decline reflects lower mortgage banking revenues and trust income.  The lower trust income resulted largely from the trade processing business divestiture in 2015.  

Noninterest expense in the third quarter of 2015 totaled $654 million, improved from $665 million in the year-earlier quarter and $697 million in the second 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 $650 million in the recent quarter, down from $658 million in the third quarter of 2014 and $691 million in the second quarter of 2015. The decline in operating expenses in the recent quarter as compared with the year-earlier period was predominantly attributable to lower costs for professional services, partially offset by higher salaries and employee benefit expenses.  The lower level of operating expenses as compared with the immediately preceding quarter resulted from $40 million of cash contributions made to The M&T Charitable Foundation during the second quarter of 2015. 

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 57.1% in the recent quarter, 58.4% in the year-earlier quarter and 58.2% in the second quarter of 2015.

Balance Sheet.  M&T had total assets of $97.8 billion at September 30, 2015, up from $97.2 billion a year earlier.  Investment securities were $14.5 billion at the recent quarter-end, up $1.1 billion or 9% from September 30, 2014.  Loans and leases, net of unearned discount, totaled $68.5 billion at September 30, 2015, $3.0 billion or 5% above $65.6 billion a year earlier.  Total deposits declined $1.4 billion or 2% to $72.9 billion at the recent quarter-end from $74.3 billion at September 30, 2014, largely due to lower trust-related deposits. 

Total shareholders' equity rose 5% to $12.9 billion at September 30, 2015 from $12.3 billion a year earlier, representing 13.21% and 12.68%, respectively, of total assets.  Common shareholders' equity was $11.7 billion, or $87.67 per share, at September 30, 2015, compared with $11.1 billion, or $83.99 per share, at September 30, 2014.  Tangible equity per common share rose 7% to $61.22 at September 30, 2015 from $57.10 at September 30, 2014.  Common shareholders' equity per share and tangible equity per common share were $85.90 and $59.39, respectively, at June 30, 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 10.08%. M&T's estimated Tier 1 common ratio under previously effective regulatory capital rules would have been 10.28% as of September 30, 2015.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 9:30 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 #57486342.  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 Thursday, October 22, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #57486342.  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






Nine months ended




Amounts in thousands,


September 30






September 30




 except per share


2015


2014


Change




2015


2014


Change


















Performance
































Net income 

$

280,401


275,344


2

%

$

808,702


788,697


3

%

Net income available to common shareholders 


257,346


251,917


2

%


739,656


724,344


2

%

















Per common share:
















  Basic earnings 

$

1.94


1.92


1

%

$

5.59


5.54


1

%

  Diluted earnings 


1.93


1.91


1

%


5.56


5.50


1

%

  Cash dividends 

$

.70


.70


-



$

2.10


2.10


-


















Common shares outstanding:
















  Average - diluted (1) 


133,376


132,128


1

%


133,089


131,698


1

%

  Period end (2) 


133,311


132,142


1

%


133,311


132,142


1

%

















Return on (annualized):
















  Average total assets 


1.13

%

1.17

%





1.11

%

1.17

%



  Average common shareholders' equity 


8.93

%

9.18

%





8.77

%

9.07

%



















Taxable-equivalent net interest income 

$

699,075


674,900


4

%

$

2,053,649


2,012,241


2

%

















Yield on average earning assets 


3.48

%

3.59

%





3.51

%

3.72

%



Cost of interest-bearing liabilities 


.55

%

.54

%





.55

%

.53

%



Net interest spread 


2.93

%

3.05

%





2.96

%

3.19

%



Contribution of interest-free funds 


.21

%

.18

%





.20

%

.19

%



Net interest margin  


3.14

%

3.23

%





3.16

%

3.38

%



















Net charge-offs to average total 
















  net loans (annualized) 


.24

%

.17

%





.19

%

.19

%



















Net operating results (3)
































Net operating income 

$

282,907


279,838


1

%

$

819,024


804,974


2

%

Diluted net operating earnings per common share 


1.95


1.94


1

%


5.64


5.62


-


Return on (annualized):
















  Average tangible assets 


1.18

%

1.24

%





1.17

%

1.25

%



  Average tangible common equity 


12.98

%

13.80

%





12.89

%

13.84

%



Efficiency ratio 


57.05

%

58.44

%





58.88

%

59.78

%





















































At September 30












Loan quality


2015


2014


Change


























Nonaccrual loans 

$

787,098


847,784


-7

%








Real estate and other foreclosed assets 


66,144


67,629


-2

%








  Total nonperforming assets 

$

853,242


915,413


-7

%
























Accruing loans past due 90 days or more (4) 

$

231,465


312,990


-26

%
























Government guaranteed loans included in totals
















  above:
















  Nonaccrual loans 

$

48,955


68,586


-29

%








  Accruing loans past due 90 days or more 


193,998


265,333


-27

%
























Renegotiated loans 

$

189,639


209,099


-9

%
























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

$

80,827


132,147


-39

%
























Purchased impaired loans (6):
















  Outstanding customer balance 

$

278,979


429,915


-35

%








  Carrying amount 


149,421


236,662


-37

%
























Nonaccrual loans to total net loans 


1.15

%

1.29

%



























Allowance for credit losses to total loans 


1.36

%

1.40

%











































(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,




September 30,


June 30,


March 31,


December 31,


September 30,

 except per share




2015


2015


2015


2014


2014



















Performance




































Net income 



$

280,401



286,688



241,613



277,549



275,344


Net income available to common shareholders 




257,346



263,481



218,837



254,239



251,917




















Per common share:


















  Basic earnings 



$

1.94



1.99



1.66



1.93



1.92


  Diluted earning




1.93



1.98



1.65



1.92



1.91


  Cash dividends



$

.70



.70



.70



.70



.70




















Common shares outstanding:


















  Average - diluted (1) 




133,376



133,116



132,769



132,278



132,128


  Period end (2) 




133,311



133,099



132,946



132,354



132,142




















Return on (annualized):


















  Average total assets 




1.13

%


1.18

%


1.02

%


1.12

%


1.17

%

  Average common shareholders' equity 




8.93

%


9.37

%


7.99

%


9.10

%


9.18

%



















Taxable-equivalent net interest income 



$

699,075



689,148



665,426



687,847



674,900




















Yield on average earning assets 




3.48

%


3.52

%


3.54

%


3.44

%


3.59

%

Cost of interest-bearing liabilities 




.55

%


.55

%


.57

%


.52

%


.54

%

Net interest spread 




2.93

%


2.97

%


2.97

%


2.92

%


3.05

%

Contribution of interest-free funds 




.21

%


.20

%


.20

%


.18

%


.18

%

Net interest margin 




3.14

%


3.17

%


3.17

%


3.10

%


3.23

%



















Net charge-offs to average total 


















  net loans (annualized) 




.24

%


.13

%


.22

%


.19

%


.17

%



















Net operating results (3)




































Net operating income 



$

282,907



290,341



245,776



281,929



279,838


Diluted net operating earnings per common share 




1.95



2.01



1.68



1.95



1.94


Return on (annualized):


















  Average tangible assets 




1.18

%


1.24

%


1.08

%


1.18

%


1.24

%

  Average tangible common equity 




12.98

%


13.76

%


11.90

%


13.55

%


13.80

%

Efficiency ratio 




57.05

%


58.23

%


61.46

%


57.84

%


58.44

%

































































September 30,


June 30,


March 31,


December 31,


September 30,

Loan quality




2015


2015


2015


2014


2014



















Nonaccrual loans 



$

787,098



797,146



790,586



799,151



847,784


Real estate and other foreclosed assets 




66,144



63,734



62,578



63,635



67,629


  Total nonperforming assets 



$

853,242



860,880



853,164



862,786



915,413




















Accruing loans past due 90 days or more (4) 



$

231,465



238,568



236,621



245,020



312,990




















Government guaranteed loans included in totals


















  above:


















  Nonaccrual loans 



$

48,955



58,259



60,508



69,095



68,586


  Accruing loans past due 90 days or more 




193,998



206,775



193,618



217,822



265,333




















Renegotiated loans 



$

189,639



197,145



198,911



202,633



209,099




















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



$

80,827



78,591



80,110



110,367



132,147




















Purchased impaired loans (6):


















  Outstanding customer balance 



$

278,979



312,507



335,079



369,080



429,915


  Carrying amount 




149,421



169,240



184,018



197,737



236,662




















Nonaccrual loans to total net loans 




1.15

%


1.17

%


1.18

%


1.20

%


1.29

%



















Allowance for credit losses to total loans 




1.36

%


1.36

%


1.37

%


1.38

%


1.40

%



















(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






Nine months ended







September 30






September 30





Dollars in thousands


2015


2014


Change




2015


2014


Change




















Interest income 

$

770,026


743,023


4

%


$

2,268,467


2,200,265


3

%


Interest expense 


77,199


73,964


4




232,924


205,659


13




















Net interest income 


692,827


669,059


4




2,035,543


1,994,606


2




















Provision for credit losses 


44,000


29,000


52




112,000


91,000


23




















Net interest income after

















   provision for credit losses 


648,827


640,059


1




1,923,543


1,903,606


1




















Other income

















     Mortgage banking revenues 


84,035


93,532


-10




288,238


269,237


7



     Service charges on deposit accounts 


107,259


110,071


-3




314,860


321,637


-2



     Trust income  


113,744


128,671


-12




356,076


379,816


-6



     Brokerage services income 


16,902


17,416


-3




49,224


51,403


-4



     Trading account and foreign exchange gains 


8,362


6,988


20




20,639


21,477


-4



     Loss on bank investment securities 


-


-


-




(108)


-


-



     Equity in earnings of Bayview Lending Group LLC 


(3,721)


(4,114)


-




(11,043)


(12,623)


-



     Other revenues from operations 


113,118


98,547


15




359,043


296,683


21



          Total other income 


439,699


451,111


-3




1,376,929


1,327,630


4




















Other expense

















     Salaries and employee benefits 


363,567


348,776


4




1,115,117


1,059,815


5



     Equipment and net occupancy 


68,470


67,713


1




201,792


206,964


-2



     Printing, postage and supplies 


8,691


9,184


-5




27,586


29,320


-6



     Amortization of core deposit and other 

















        intangible assets 


4,090


7,358


-44




16,848


26,654


-37



     FDIC assessments 


11,090


13,193


-16




32,551


43,836


-26



     Other costs of operations 


197,908


219,135


-10




642,925


656,664


-2



          Total other expense 


653,816


665,359


-2




2,036,819


2,023,253


1




















Income before income taxes 


434,710


425,811


2




1,263,653


1,207,983


5




















Applicable income taxes 


154,309


150,467


3




454,951


419,286


9




















Net income 

$

280,401


275,344


2

%


$

808,702


788,697


3

%


 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend



















Three months ended




September 30,


June 30,


March 31,


December 31,


September 30,

Dollars in thousands


2015


2015


2015


2014


2014

















Interest income 

$

770,026



760,354



738,087



756,612



743,023


Interest expense 


77,199



77,226



78,499



74,772



73,964


















Net interest income 


692,827



683,128



659,588



681,840



669,059


















Provision for credit losses 


44,000



30,000



38,000



33,000



29,000


















Net interest income after
















   provision for credit losses 


648,827



653,128



621,588



648,840



640,059


















Other income
















     Mortgage banking revenues 


84,035



102,602



101,601



93,675



93,532


     Service charges on deposit accounts 


107,259



105,257



102,344



106,319



110,071


     Trust income 


113,744



118,598



123,734



128,442



128,671


     Brokerage services income 


16,902



16,861



15,461



15,809



17,416


     Trading account and foreign exchange gains 


8,362



6,046



6,231



8,397



6,988


     Loss on bank investment securities 


-



(10)



(98)



-



-


     Equity in earnings of Bayview Lending Group LLC 


(3,721)



(3,131)



(4,191)



(4,049)



(4,114)


     Other revenues from operations 


113,118



150,804



95,121



103,050



98,547


          Total other income   


439,699



497,027



440,203



451,643



451,111


















Other expense
















     Salaries and employee benefits 


363,567



361,657



389,893



345,135



348,776


     Equipment and net occupancy 


68,470



66,852



66,470



62,335



67,713


     Printing, postage and supplies 


8,691



9,305



9,590



8,881



9,184


     Amortization of core deposit and other 
















        intangible assets 


4,090



5,965



6,793



7,170



7,358


     FDIC assessments 


11,090



10,801



10,660



11,695



13,193


     Other costs of operations 


197,908



242,048



202,969



231,005



219,135


          Total other expense 


653,816



696,628



686,375



666,221



665,359


















Income before income taxes 


434,710



453,527



375,416



434,262



425,811


















Applicable income taxes 


154,309



166,839



133,803



156,713



150,467


















Net income 

$

280,401



286,688



241,613



277,549



275,344


 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet













September 30




Dollars in thousands



2015


2014


Change











ASSETS


















Cash and due from banks 


$

1,249,704


1,445,877


-14

%










Interest-bearing deposits at banks 



4,713,266


7,676,064


-39











Federal funds sold 



-


77,766


-100











Trading account assets 



340,710


296,913


15











Investment securities 



14,494,539


13,348,368


9











Loans and leases:


















   Commercial, financial, etc. 



20,233,177


19,112,009


6


   Real estate - commercial 



28,720,537


26,942,847


7


   Real estate - consumer 



8,211,062


8,663,408


-5


   Consumer 



11,375,472


10,854,095


5


     Total loans and leases, net of unearned discount 



68,540,248


65,572,359


5


        Less: allowance for credit losses 



933,798


918,633


2











  Net loans and leases 



67,606,450


64,653,726


5











Goodwill 



3,513,325


3,524,625


-











Core deposit and other intangible assets 



18,179


42,197


-57











Other assets 



5,860,889


6,162,806


-5











  Total assets 


$

97,797,062


97,228,342


1

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits 


$

28,189,330


27,440,524


3

%










Interest-bearing deposits 



44,549,028


46,659,442


-5











Deposits at Cayman Islands office 



206,185


241,536


-15











  Total deposits 



72,944,543


74,341,502


-2











Short-term borrowings 



173,783


164,609


6











Accrued interest and other liabilities 



1,582,513


1,327,524


19











Long-term borrowings 



10,174,289


9,061,391


12











  Total liabilities 



84,875,128


84,895,026


-











Shareholders' equity:


















   Preferred 



1,231,500


1,231,500


-


   Common (1)  



11,690,434


11,101,816


5











     Total shareholders' equity 



12,921,934


12,333,316


5











  Total liabilities and shareholders' equity 


$

97,797,062


97,228,342


1

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $163.5 million at September 30,

       2015 and accumulated other comprehensive income, net of applicable income tax effect, of $12.5 million at 

       September 30, 2014.

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend








September 30,


June 30,



March 31,



December 31,



September 30,

Dollars in thousands



2015


2015



2015



2014



2014

















ASSETS
































Cash and due from banks 


$

1,249,704



1,347,858



1,269,816



1,289,965



1,445,877

















Interest-bearing deposits at banks 



4,713,266



4,045,852



6,291,491



6,470,867



7,676,064

















Federal funds sold 



-



3,000



97,037



83,392



77,766

















Trading account assets 



340,710



277,009



363,085



308,175



296,913

















Investment securities 



14,494,539



14,751,637



14,393,270



12,993,542



13,348,368

















Loans and leases:
































   Commercial, financial, etc. 



20,233,177



20,111,028



19,775,494



19,461,292



19,112,009

   Real estate - commercial 



28,720,537



28,442,488



27,845,710



27,567,569



26,942,847

   Real estate - consumer 



8,211,062



8,444,542



8,504,119



8,657,301



8,663,408

   Consumer 



11,375,472



11,133,194



10,973,719



10,982,794



10,854,095

     Total loans and leases, net of unearned discount



68,540,248



68,131,252



67,099,042



66,668,956



65,572,359

        Less: allowance for credit losses 



933,798



929,987



921,373



919,562



918,633

















  Net loans and leases 



67,606,450



67,201,265



66,177,669



65,749,394



64,653,726

















Goodwill 



3,513,325



3,513,325



3,524,625



3,524,625



3,524,625

















Core deposit and other intangible assets 



18,179



22,269



28,234



35,027



42,197

















Other assets 



5,860,889



5,917,861



6,232,556



6,230,548



6,162,806

















  Total assets 


$

97,797,062



97,080,076



98,377,783



96,685,535



97,228,342

































LIABILITIES AND SHAREHOLDERS' EQUITY
































Noninterest-bearing deposits 


$

28,189,330



27,674,588



27,181,120



26,947,880



27,440,524

















Interest-bearing deposits 



44,549,028



44,787,590



46,234,455



46,457,591



46,659,442

















Deposits at Cayman Islands office 



206,185



167,441



178,545



176,582



241,536

















  Total deposits 



72,944,543



72,629,619



73,594,120



73,582,053



74,341,502

















Short-term borrowings 



173,783



153,299



193,495



192,676



164,609

















Accrued interest and other liabilities 



1,582,513



1,453,249



1,552,724



1,567,951



1,327,524

















Long-term borrowings 



10,174,289



10,175,912



10,509,143



9,006,959



9,061,391

















  Total liabilities 



84,875,128



84,412,079



85,849,482



84,349,639



84,895,026

















Shareholders' equity:
































   Preferred 



1,231,500



1,231,500



1,231,500



1,231,500



1,231,500

   Common (1)  



11,690,434



11,436,497



11,296,801



11,104,396



11,101,816

















     Total shareholders' equity 



12,921,934



12,667,997



12,528,301



12,335,896



12,333,316

















  Total liabilities and shareholders' equity 


$

97,797,062



97,080,076



98,377,783



96,685,535



97,228,342

































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $163.5 million at September 30, 2015, $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.

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

 and Annualized Taxable-equivalent Rates



























Three months ended


Change in balance


Nine months ended






September 30,


September 30,


June 30,


September 30, 2015 from


September 30



Dollars in millions



2015


2014


2015


September 30,


June 30,



2015


2014


Change in





Balance


Rate


Balance


Rate


Balance


Rate


2014


2015



Balance


Rate


Balance 


Rate


balance


ASSETS
































































Interest-bearing deposits at banks 


$

6,060


.25

%

5,083


.25

%

5,326


.25

%

19

%


14

%


$

5,490


.25

%

4,091


.25

%

34

%

































Federal funds sold



-


-


80


.07


39


.10


-100



-100




45


.10


90


.07


-50


































Trading account assets 



96


.52


70


1.65


103


.92


37



-8




93


1.34


75


1.83


24


































Investment securities 



14,441


2.60


12,780


2.89


14,195


2.68


13



2




14,008


2.65


11,015


3.11


27


































Loans and leases, net of unearned discount
































  Commercial, financial, etc. 



19,939


3.22


18,889


3.29


19,973


3.18


6



-




19,791


3.20


18,783


3.33


5


  Real estate - commercial 



28,309


4.18


26,487


4.19


28,208


4.19


7



-




28,040


4.18


26,258


4.27


7


  Real estate - consumer 



8,348


4.17


8,634


4.17


8,447


4.19


-3



-1




8,455


4.17


8,740


4.24


-3


  Consumer 



11,253


4.46


10,753


4.52


11,042


4.46


5



2




11,087


4.47


10,512


4.54


5


     Total loans and leases, net 



67,849


3.96


64,763


4.00


67,670


3.96


5



-




67,373


3.96


64,293


4.06


5


































  Total earning assets 



88,446


3.48


82,776


3.59


87,333


3.52


7



1




87,009


3.51


79,564


3.72


9


































Goodwill 



3,513




3,525




3,514




-



-




3,517




3,525




-


































Core deposit and other intangible assets 



20




45




25




-56



-19




26




54




-53


































Other assets 



6,536




6,899




6,726




-5



-3




6,793




6,809




-


































  Total assets 


$

98,515




93,245




97,598




6

%


1

%


$

97,345




89,952




8

%

































































































LIABILITIES AND SHAREHOLDERS' EQUITY
































































Interest-bearing deposits
































  NOW accounts 


$

1,309


.11


1,037


.15


1,333


.11


26

%


-2

%


$

1,255


.11


1,017


.13


23

%

  Savings deposits



41,197


.11


41,056


.11


41,712


.10


-



-1




41,477


.10


39,640


.12


5


  Time deposits 



2,858


.51


3,227


.47


2,948


.50


-11



-3




2,940


.50


3,345


.46


-12


  Deposits at Cayman Islands office 



206


.29


325


.20


212


.28


-37



-3




214


.28


348


.21


-39


     Total interest-bearing deposits 



45,570


.13


45,645


.14


46,205


.13


-



-1




45,886


.13


44,350


.14


3


































Short-term borrowings 



174


.07


181


.04


195


.07


-4



-11




188


.07


222


.05


-15


Long-term borrowings 



10,114


2.44


8,547


2.69


10,164


2.47


18



-




10,039


2.51


6,999


3.02


43


































Total interest-bearing liabilities 



55,858


.55


54,373


.54


56,564


.55


3



-1




56,113


.55


51,571


.53


9


































Noninterest-bearing deposits 



28,251




25,127




26,753




12



6




26,947




24,915




8


































Other liabilities



1,619




1,498




1,645




8



-2




1,656




1,486




11


































  Total liabilities 



85,728




80,998




84,962




6



1




84,716




77,972




9


































Shareholders' equity



12,787




12,247




12,636




4



1




12,629




11,980




5


































  Total liabilities and shareholders' equity 


$

98,515




93,245




97,598




6

%


1

%


$

97,345




89,952




8

%

































































Net interest spread 





2.93




3.05




2.97











2.96




3.19




Contribution of interest-free funds 





.21




.18




.20











.20




.19




Net interest margin  





3.14

%



3.23

%



3.17

%










3.16

%



3.38

%


 

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures































Three months ended



Nine months ended






September 30



September 30






2015


2014



2015


2014


Income statement data











In thousands, except per share











Net income











Net income 

$

280,401


275,344


$

808,702


788,697


Amortization of core deposit and other











  intangible assets (1) 


2,506


4,494



10,322


16,277


  Net operating income 

$

282,907


279,838


$

819,024


804,974


Earnings per common share











Diluted earnings per common share 

$

1.93


1.91


$

5.56


5.50


Amortization of core deposit and other











  intangible assets (1) 


.02


.03



.08


.12


  Diluted net operating earnings per common share 

$

1.95


1.94


$

5.64


5.62


Other expense











Other expense 

$

653,816


665,359


$

2,036,819


2,023,253


Amortization of core deposit and other











  intangible assets 


(4,090)


(7,358)



(16,848)


(26,654)


  Noninterest operating expense 

$

649,726


658,001


$

2,019,971


1,996,599


Efficiency ratio











Noninterest operating expense (numerator) 

$

649,726


658,001


$

2,019,971


1,996,599


Taxable-equivalent net interest income 


699,075


674,900



2,053,649


2,012,241


Other income 


439,699


451,111



1,376,929


1,327,630


Less:  Loss on bank investment securities 


-


-



(108)


-


Denominator 

$

1,138,774


1,126,011


$

3,430,686


3,339,871


Efficiency ratio 


57.05

%

58.44

%


58.88

%

59.78

%



























Balance sheet data











In millions











Average assets











Average assets 

$

98,515


93,245


$

97,345


89,952


Goodwill 


(3,513)


(3,525)



(3,517)


(3,525)


Core deposit and other intangible assets 


(20)


(45)



(26)


(54)


Deferred taxes 


7


14



8


17


  Average tangible assets 

$

94,989


89,689


$

93,810


86,390


Average common equity











Average total equity 

$

12,787


12,247


$

12,629


11,980


Preferred stock 


(1,232)


(1,232)



(1,232)


(1,179)


  Average common equity 


11,555


11,015



11,397


10,801


Goodwill 


(3,513)


(3,525)



(3,517)


(3,525)


Core deposit and other intangible assets 


(20)


(45)



(26)


(54)


Deferred taxes 


7


14



8


17


  Average tangible common equity 

$

8,029


7,459


$

7,862


7,239















At end of quarter











Total assets











Total assets 

$

97,797


97,228







Goodwill 


(3,513)


(3,525)







Core deposit and other intangible assets 


(18)


(42)







Deferred taxes 


6


13







  Total tangible assets 

$

94,272


93,674







Total common equity











Total equity 

$

12,922


12,333







Preferred stock 


(1,232)


(1,232)







Undeclared dividends - cumulative preferred stock 


(3)


(2)







  Common equity, net of undeclared cumulative











    preferred dividends 


11,687


11,099







Goodwill 


(3,513)


(3,525)







Core deposit and other intangible assets 


(18)


(42)







Deferred taxes 


6


13







  Total tangible common equity 

$

8,162


7,545

































(1) After any related tax effect.

 

M&T BANK CORPORATION

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















































Three months ended






September 30,


June 30,


March 31,


December 31,


September 30,






2015


2015


2015


2014


2014


Income statement data












In thousands, except per share












Net income












Net income 

$

280,401


286,688


241,613


277,549


275,344


Amortization of core deposit and other












  intangible assets (1) 


2,506


3,653


4,163


4,380


4,494


  Net operating income 

$

282,907


290,341


245,776


281,929


279,838


Earnings per common share












Diluted earnings per common share 

$

1.93


1.98


1.65


1.92


1.91


Amortization of core deposit and other












  intangible assets (1) 


.02


.03


.03


.03


.03


  Diluted net operating earnings per common share 

$

1.95


2.01


1.68


1.95


1.94


Other expense












Other expense 

$

653,816


696,628


686,375


666,221


665,359


Amortization of core deposit and other












  intangible assets  


(4,090)


(5,965)


(6,793)


(7,170)


(7,358)


  Noninterest operating expense 

$

649,726


690,663


679,582


659,051


658,001


Efficiency ratio












Noninterest operating expense (numerator) 

$

649,726


690,663


679,582


659,051


658,001


Taxable-equivalent net interest income 


699,075


689,148


665,426


687,847


674,900


Other income 


439,699


497,027


440,203


451,643


451,111


Less:  Loss on bank investment securities 


-


(10)


(98)


-


-


Denominator 

$

1,138,774


1,186,185


1,105,727


1,139,490


1,126,011


Efficiency ratio 


57.05

%

58.23

%

61.46

%

57.84

%

58.44

%





























Balance sheet data












In millions












Average assets












Average assets 

$

98,515


97,598


95,892


98,644


93,245


Goodwill 


(3,513)


(3,514)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 


(20)


(25)


(31)


(38)


(45)


Deferred taxes 


7


8


10


12


14


  Average tangible assets 

$

94,989


94,067


92,346


95,093


89,689


Average common equity












Average total equity 

$

12,787


12,636


12,459


12,442


12,247


Preferred stock 


(1,232)


(1,232)


(1,232)


(1,231)


(1,232)


  Average common equity 


11,555


11,404


11,227


11,211


11,015


Goodwill 


(3,513)


(3,514)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 


(20)


(25)


(31)


(38)


(45)


Deferred taxes 


7


8


10


12


14


  Average tangible common equity 

$

8,029


7,873


7,681


7,660


7,459
















At end of quarter












Total assets












Total assets 

$

97,797


97,080


98,378


96,686


97,228


Goodwill 


(3,513)


(3,513)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 


(18)


(22)


(28)


(35)


(42)


Deferred taxes 


6


7


9


11


13


  Total tangible assets 

$

94,272


93,552


94,834


93,137


93,674


Total common equity












Total equity 

$

12,922


12,668


12,528


12,336


12,333


Preferred stock 


(1,232)


(1,232)


(1,232)


(1,231)


(1,232)


Undeclared dividends - cumulative preferred stock 


(3)


(3)


(2)


(3)


(2)


  Common equity, net of undeclared cumulative












    preferred dividends 


11,687


11,433


11,294


11,102


11,099


Goodwill 


(3,513)


(3,513)


(3,525)


(3,525)


(3,525)


Core deposit and other intangible assets 


(18)


(22)


(28)


(35)


(42)


Deferred taxes 


6


7


9


11


13


  Total tangible common equity 

$

8,162


7,905


7,750


7,553


7,545






























(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-third-quarter-results-300161774.html

SOURCE M&T Bank Corporation

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