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M&T Bank Corporation Announces 2015 Fourth Quarter And Full-Year Profits

BUFFALO, N.Y., Jan. 19, 2016 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for 2015.

GAAP Results of Operations.  Reflecting the impact of merger-related expenses associated with its recent acquisition, M&T's diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter of 2015 were $1.65, compared with $1.92 in the year-earlier quarter and $1.93 in the third quarter of 2015.  GAAP-basis net income in the recent quarter was $271 million, compared with $278 million in the final quarter of 2014 and $280 million in 2015's third quarter.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the recent quarter was .93% and 7.22%, respectively, compared with 1.12% and 9.10%, respectively, in the year-earlier quarter and 1.13% and 8.93%, respectively, in the third quarter of 2015.

Commenting on M&T's performance in 2015, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "M&T posted strong financial performance in the fourth quarter, reflecting our recent merger, growth in revenues, controlled expenses and continued solid credit quality, resulting in a 7% increase in diluted net operating earnings per common share from the year-earlier quarter.  We are pleased with all that was accomplished in the quarter.  On November 1, we welcomed our Hudson City colleagues and valued customers into the M&T family.  The full integration of Hudson City's operations will be completed in February after the conversion of the deposit system and branch network.  The merger with Hudson City brings exceptional opportunities for M&T, and we are excited to offer our broad array of products and services to both existing and new customers.  While financial results for the fourth quarter reflect only two months of the operations associated with Hudson City, the acquisition has already had a positive impact on M&T's operating results and capital position, contributing to a 13% rise in tangible book value per share from the 2014 year end."

M&T's fourth quarter results reflect its acquisition of Hudson City Bancorp, Inc. ("Hudson City"), effective November 1, 2015, including the payment of cash consideration of $2.1 billion and the issuance of 25,953,950 common shares.  Results of the operations acquired from Hudson City have been reflected in M&T's results since the acquisition date.  Assets acquired in the transaction totaled approximately $34.6 billion, including $19.0 billion of loans and $7.9 billion of investment securities, while liabilities assumed were $31.5 billion, including $17.9 billion of deposits and $13.2 billion of borrowings.  In early November, M&T restructured its balance sheet by selling $5.8 billion of investment securities obtained in the acquisition and repaying $10.6 billion of borrowings assumed in the transaction.  Merger-related expenses incurred during the final 2015 quarter aggregated $61 million after-tax effect, or $.40 of diluted earnings per common share.

For the full year of 2015, diluted earnings per common share were $7.18, compared with $7.42 for 2014.  Net income totaled $1.08 billion in 2015, up from $1.07 billion in 2014.  Expressed as a rate of return on average assets and average common shareholders' equity, net income in 2015 was 1.06% and 8.32%, respectively, compared with 1.16% and 9.08%, respectively, in 2014. 

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.  The amounts of such "nonoperating" expenses are presented in the tables that accompany this release.  Reflected in merger-related expenses in the fourth quarter of 2015 was a provision for credit losses of $21 million.  GAAP requires that acquired loans be recorded at estimated fair value, which includes the use of interest rate and credit loss assumptions to project estimated cash flows.  GAAP also provides that an allowance for credit losses associated with probable incurred losses on loans acquired at a premium also be recognized.  Accordingly, M&T recorded a $21 million provision related to such loans obtained in the Hudson City acquisition.  Given the requirement to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that provision to be a merger-related expense.  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 $2.09 in the fourth quarter of 2015, improved from $1.95 in each of the year-earlier period and the third quarter of 2015.  Net operating income for 2015's final quarter rose to $338 million, up 20% and 19% from $282 million and $283 million in the fourth quarter of 2014 and the third quarter of 2015, respectively.  For the quarter ended December 31, 2015, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.21% and 13.26%, respectively, compared with 1.18% and 13.55%, respectively, in the similar 2014 period and 1.18% and 12.98%, respectively, in the third quarter of 2015.

For the year ended December 31, 2015, diluted net operating earnings per common share were $7.74, up 2% from $7.57 in 2014.  Net operating income in 2015 rose 6% to $1.16 billion from $1.09 billion in 2014.  Net operating income in 2015 expressed as a  rate of return on average tangible assets and average tangible common shareholders' equity was 1.18% and 13.00%, respectively, compared with 1.23% and 13.76%, respectively, in 2014.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis aggregated $813 million in the fourth quarter of 2015, up 18% from $688 million earned in the year-earlier period and 16% higher than $699 million recorded in the third quarter of 2015.  The growth in such income in the recent quarter resulted from higher earning assets.  Average earning assets rose to $103.6 billion in the recent quarter, 18% above $88.0 billion in the fourth quarter of 2014 and 17% higher than $88.4 billion in 2015's third quarter.  Those increases were predominantly the result of the Hudson City acquisition that added approximately $14.6 billion to average earning assets in the recent quarter.  Also reflective of the Hudson City acquisition, the net interest margin was 3.12% in 2015's fourth quarter, compared with 3.10% in the final quarter of 2014 and 3.14% in the third quarter of 2015.  Net interest income on a taxable-equivalent basis totaled $2.87 billion for the full-year 2015, 6% higher than $2.70 billion in 2014.  That improvement resulted from a $9.5 billion increase in average earning assets, partially offset by a narrowing of the net interest margin to 3.14% in 2015 from 3.31% in 2014.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $58 million during the fourth quarter of 2015, compared with $33 million in the year-earlier quarter and $44 million in the third quarter of 2015.  Net charge-offs of loans were $36 million during the recent quarter, compared with $32 million in the final quarter of 2014 and $40 million in the third quarter of 2015.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .18% and .19% in the fourth quarter of 2015 and 2014, respectively, and .24% in 2015's third quarter.  The provision for credit losses was $170 million for the year ended December 31, 2015, compared with $124 million in 2014.  Net loan charge-offs during 2015 and 2014 totaled $134 million and $121 million, respectively, or .19% of average loans outstanding in each of those years.  As already noted, a $21 million provision was recorded in the fourth quarter of 2015, in accordance with GAAP, related to loans obtained in the Hudson City acquisition that had a fair value in excess of outstanding principal.  GAAP provides that an allowance for credit losses on such loans be recorded beyond the recognition of the fair value of the loans at the acquisition date. 

Loans classified as nonaccrual were $799 million, or .91% of total loans outstanding at December 31, 2015, compared with $799 million or 1.20% a year earlier and $787 million or 1.15% at September 30, 2015.  Assets taken in foreclosure of defaulted loans were $195 million at the end of 2015, compared with $64 million and $66 million at December 31, 2014 and September 30, 2015, respectively.  The higher level of such assets at the 2015 year-end resulted from residential real estate properties obtained in the Hudson City acquisition. 

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 for credit losses totaled $956 million at December 31, 2015, compared with $920 million a year earlier and $934 million at September 30, 2015.  The allowance expressed as a percentage of outstanding loans was 1.09% at the end of 2015, compared with 1.38% at December 31, 2014 and 1.36% at September 30, 2015.  The decline in that ratio from September 30, 2015 and December 31, 2014 reflects the impact of residential mortgage loans obtained in the Hudson City acquisition. 

Noninterest Income and Expense.  Noninterest income totaled $448 million in the recently completed quarter, compared with $452 million in the fourth quarter of 2014 and $440 million in the third quarter of 2015.  The modest decline as compared with the final 2014 quarter resulted from lower trust income and residential mortgage banking revenues associated with loan servicing activities, partially offset by higher credit-related fees.  The decline in trust income was predominantly the result of the second quarter 2015 sale of M&T's trade processing business within its retirement services division.  Contributing to the recent quarter's increase in noninterest income as compared with the immediately preceding quarter were higher commercial mortgage banking revenues and credit-related fees.    

Noninterest income aggregated $1.83 billion and $1.78 billion during the years ended December 31, 2015 and 2014, respectively.  Reflected in that improvement were higher commercial mortgage banking revenues and a $45 million gain from the sale of M&T's trade processing business that was partially offset by lower trust income associated with that divested business.

Noninterest expense in the final quarter of 2015 totaled $786 million, compared with $666 million in the year-earlier quarter and $654 million in the third 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 and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $701 million in  the fourth quarter of 2015, compared with $659 million in the year-earlier quarter and $650 million in the third quarter of 2015.  The most significant factor for the higher level of operating expenses in the recent quarter was the impact of the operations obtained in the Hudson City acquisition. 

For the year ended December 31, 2015, noninterest expenses totaled $2.82 billion, compared with $2.69 billion in the previous year.  Noninterest operating expenses were $2.72 billion in 2015 and $2.66 billion in 2014.  That increase reflects noninterest operating expenses associated with Hudson City.

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 55.5% in the recent quarter, compared with 57.8% in the year-earlier quarter and 57.1% in the third quarter of 2015.  The efficiency ratio for the full year 2015 was 58.0%, compared with 59.3% in 2014.  

Balance Sheet.  M&T had total assets of $122.8 billion at December 31, 2015, up 27% from $96.7 billion a year earlier.  Investment securities were $15.7 billion at the recent year-end, up $2.7 billion or 20% from December 31, 2014.  Loans and leases, net of unearned discount, rose 31% to $87.5 billion at the 2015 year-end from $66.7 billion at December 31, 2014.     

Total deposits were $92.0 billion at the recent year-end, up 25% or $18.4 billion from $73.6 billion at December 31, 2014

Total shareholders' equity rose $3.8 billion or 31% to $16.2 billion at December 31, 2015 from $12.3 billion a year earlier, representing 13.17% and 12.76%, respectively, of total assets.  Common shareholders' equity was $14.9 billion, or $93.60 per share, at December 31, 2015, compared with $11.1 billion, or $83.88 per share, at December 31, 2014.  Tangible equity per common share rose 13% to $64.28 at December 31, 2015 from $57.06 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $87.67 and $61.22, respectively, at September 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 11.06% at the 2015 year-end. 

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full-year financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276.

International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID #25536663.  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 January 22, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #25536663.  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, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia.  Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

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

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

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

 

 

M&T BANK CORPORATION


















Financial Highlights





















Three months ended







Year ended




Amounts in thousands,



December 31







December 31




 except per share



2015


2014


Change





2015


2014


Change




















Performance




































Net income


$

270,965


277,549


-2

%


$

1,079,667


1,066,246


1

%

Net income available to common shareholders



248,059


254,239


-2

%



987,724


978,581


1

%



















Per common share:


















  Basic earnings


$

1.65


1.93


-15

%


$

7.22


7.47


-3

%

  Diluted earnings



1.65


1.92


-14

%



7.18


7.42


-3

%

  Cash dividends


$

.70


.70


-




$

2.80


2.80


-




















Common shares outstanding:


















  Average - diluted (1)



150,718


132,278


14

%



137,533


131,844


4

%

  Period end (2)



159,600


132,354


21

%



159,600


132,354


21

%



















Return on (annualized):


















  Average total assets 



.93

%

1.12

%






1.06

%

1.16

%



  Average common shareholders' equity



7.22

%

9.10

%






8.32

%

9.08

%





















Taxable-equivalent net interest income


$

813,401


687,847


18

%


$

2,867,050


2,700,088


6

%



















Yield on average earning assets



3.48

%

3.44

%






3.50

%

3.65

%



Cost of interest-bearing liabilities



.54

%

.52

%






.55

%

.53

%



Net interest spread



2.94

%

2.92

%






2.95

%

3.12

%



Contribution of interest-free funds



.18

%

.18

%






.19

%

.19

%



Net interest margin



3.12

%

3.10

%






3.14

%

3.31

%





















Net charge-offs to average total 


















  net loans (annualized)



.18

%

.19

%






.19

%

.19

%





















Net operating results (3)




































Net operating income


$

337,613


281,929


20

%


$

1,156,637


1,086,903


6

%

Diluted net operating earnings per common share



2.09


1.95


7

%



7.74


7.57


2

%

Return on (annualized):


















  Average tangible assets



1.21

%

1.18

%






1.18

%

1.23

%



  Average tangible common equity



13.26

%

13.55

%






13.00

%

13.76

%



Efficiency ratio



55.53

%

57.84

%






57.98

%

59.29

%




























































 

At December 31













Loan quality



2015


2014


Change





























Nonaccrual loans


$

799,409


799,151


-











Real estate and other foreclosed assets



195,085


63,635


207

%









  Total nonperforming assets


$

994,494


862,786


15

%



























Accruing loans past due 90 days or more (4)


$

273,086


245,020


11

%



























Government guaranteed loans included in totals


















  above:


















  Nonaccrual loans


$

47,052


69,095


-32

%









  Accruing loans past due 90 days or more



231,930


217,822


6

%



























Renegotiated loans


$

182,865


202,633


-10

%



























Accruing loans acquired at a discount past due 90 days or more (5)

$

68,473


110,367


-38

%



























Purchased impaired loans (6):


















  Outstanding customer balance


$

1,218,711


369,080


230

%









  Carrying amount



783,036


197,737


296

%



























Nonaccrual loans to total net loans



.91

%

1.20

%






























Allowance for credit losses to total loans



1.09

%

1.38

%
















































(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 loans acquired at a discount. 

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

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

 

 

M&T BANK CORPORATION



















Financial Highlights, Five Quarter Trend























Three months ended


Amounts in thousands,




December 31,


September 30,


June 30,


March 31,


December 31,


 except per share




2015


2015


2015


2015


2014





















Performance






































Net income



$

270,965



280,401



286,688



241,613



277,549



Net income available to common shareholders




248,059



257,346



263,481



218,837



254,239






















Per common share:



















  Basic earnings



$

1.65



1.94



1.99



1.66



1.93



  Diluted earnings




1.65



1.93



1.98



1.65



1.92



  Cash dividends



$

.70



.70



.70



.70



.70






















Common shares outstanding:



















  Average - diluted (1)




150,718



133,376



133,116



132,769



132,278



  Period end (2)




159,600



133,311



133,099



132,946



132,354






















Return on (annualized):



















  Average total assets 




.93

%


1.13

%


1.18

%


1.02

%


1.12

%


  Average common shareholders' equity




7.22

%


8.93

%


9.37

%


7.99

%


9.10

%





















Taxable-equivalent net interest income



$

813,401



699,075



689,148



665,426



687,847






















Yield on average earning assets




3.48

%


3.48

%


3.52

%


3.54

%


3.44

%


Cost of interest-bearing liabilities




.54

%


.55

%


.55

%


.57

%


.52

%


Net interest spread




2.94

%


2.93

%


2.97

%


2.97

%


2.92

%


Contribution of interest-free funds




.18

%


.21

%


.20

%


.20

%


.18

%


Net interest margin 




3.12

%


3.14

%


3.17

%


3.17

%


3.10

%





















Net charge-offs to average total 



















  net loans (annualized)




.18

%


.24

%


.13

%


.22

%


.19

%





















Net operating results (3)






































Net operating income



$

337,613



282,907



290,341



245,776



281,929



Diluted net operating earnings per common share




2.09



1.95



2.01



1.68



1.95



Return on (annualized):



















  Average tangible assets




1.21

%


1.18

%


1.24

%


1.08

%


1.18

%


  Average tangible common equity




13.26

%


12.98

%


13.76

%


11.90

%


13.55

%


Efficiency ratio




55.53

%


57.05

%


58.23

%


61.46

%


57.84

%






































































December 31,


September 30,


June 30,


March 31,


December 31,


Loan quality




2015


2015


2015


2015


2014





















Nonaccrual loans



$

799,409



787,098



797,146



790,586



799,151



Real estate and other foreclosed assets




195,085



66,144



63,734



62,578



63,635



  Total nonperforming assets



$

994,494



853,242



860,880



853,164



862,786






















Accruing loans past due 90 days or more (4)



$

273,086



231,465



238,568



236,621



245,020






















Government guaranteed loans included in totals



















  above:



















  Nonaccrual loans



$

47,052



48,955



58,259



60,508



69,095



  Accruing loans past due 90 days or more




231,930



193,998



206,775



193,618



217,822






















Renegotiated loans



$

182,865



189,639



197,145



198,911



202,633






















Accruing loans acquired at a discount past due 90 days or more (5)


$

68,473



80,827



78,591



80,110



110,367






















Purchased impaired loans (6):



















  Outstanding customer balance



$

1,218,711



278,979



312,507



335,079



369,080



  Carrying amount




783,036



149,421



169,240



184,018



197,737






















Nonaccrual loans to total net loans




.91

%


1.15

%


1.17

%


1.18

%


1.20

%





















Allowance for credit losses to total loans




1.09

%


1.36

%


1.36

%


1.37

%


1.38

%








































(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 loans acquired at a discount. 

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

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

 

 

M&T BANK CORPORATION
















Condensed Consolidated Statement of Income


































Three months ended






Year ended






December 31






December 31




Dollars in thousands


2015


2014


Change




2015


2014


Change


















Interest income

$

902,377


756,612


19

%


$

3,170,844


2,956,877


7

%

Interest expense


95,333


74,772


27




328,257


280,431


17


















Net interest income


807,044


681,840


18




2,842,587


2,676,446


6


















Provision for credit losses


58,000


33,000


76




170,000


124,000


37


















Net interest income after
















   provision for credit losses


749,044


648,840


15




2,672,587


2,552,446


5


















Other income
















     Mortgage banking revenues


87,500


93,675


-7




375,738


362,912


4


     Service charges on deposit accounts


105,748


106,319


-1




420,608


427,956


-2


     Trust income


114,564


128,442


-11




470,640


508,258


-7


     Brokerage services income


15,546


15,809


-2




64,770


67,212


-4


     Trading account and foreign exchange gains


9,938


8,397


18




30,577


29,874


2


     Loss on bank investment securities


(22)


-


-




(130)


-


-


     Equity in earnings of Bayview Lending Group LLC


(3,224)


(4,049)


-




(14,267)


(16,672)


-


     Other revenues from operations


118,058


103,050


15




477,101


399,733


19


          Total other income


448,108


451,643


-1




1,825,037


1,779,273


3


















Other expense
















     Salaries and employee benefits


434,413


345,135


26




1,549,530


1,404,950


10


     Equipment and net occupancy


70,747


62,335


13




272,539


269,299


1


     Printing, postage and supplies


10,905


8,881


23




38,491


38,201


1


     Amortization of core deposit and other 
















        intangible assets


9,576


7,170


34




26,424


33,824


-22


     FDIC assessments


19,562


11,695


67




52,113


55,531


-6


     Other costs of operations


240,910


231,005


4




883,835


887,669


-


          Total other expense


786,113


666,221


18




2,822,932


2,689,474


5


















Income before income taxes


411,039


434,262


-5




1,674,692


1,642,245


2


















Applicable income taxes


140,074


156,713


-11




595,025


575,999


3


















Net income

$

270,965


277,549


-2

%


$

1,079,667


1,066,246


1

%

 

 

M&T BANK CORPORATION
















Condensed Consolidated Statement of Income, Five Quarter Trend


































Three months ended





December 31,


September 30,


June 30,


March 31,


December 31,

Dollars in thousands



2015


2015


2015


2015


2014


















Interest income


$

902,377



770,026



760,354



738,087



756,612


Interest expense



95,333



77,199



77,226



78,499



74,772



















Net interest income



807,044



692,827



683,128



659,588



681,840



















Provision for credit losses



58,000



44,000



30,000



38,000



33,000



















Net interest income after

















   provision for credit losses



749,044



648,827



653,128



621,588



648,840



















Other income

















     Mortgage banking revenues



87,500



84,035



102,602



101,601



93,675


     Service charges on deposit accounts



105,748



107,259



105,257



102,344



106,319


     Trust income



114,564



113,744



118,598



123,734



128,442


     Brokerage services income



15,546



16,902



16,861



15,461



15,809


     Trading account and foreign exchange gains



9,938



8,362



6,046



6,231



8,397


     Loss on bank investment securities



(22)



-



(10)



(98)



-


     Equity in earnings of Bayview Lending Group LLC



(3,224)



(3,721)



(3,131)



(4,191)



(4,049)


     Other revenues from operations



118,058



113,118



150,804



95,121



103,050


          Total other income



448,108



439,699



497,027



440,203



451,643



















Other expense

















     Salaries and employee benefits



434,413



363,567



361,657



389,893



345,135


     Equipment and net occupancy



70,747



68,470



66,852



66,470



62,335


     Printing, postage and supplies



10,905



8,691



9,305



9,590



8,881


     Amortization of core deposit and other 

















        intangible assets



9,576



4,090



5,965



6,793



7,170


     FDIC assessments



19,562



11,090



10,801



10,660



11,695


     Other costs of operations



240,910



197,908



242,048



202,969



231,005


          Total other expense



786,113



653,816



696,628



686,375



666,221



















Income before income taxes



411,039



434,710



453,527



375,416



434,262



















Applicable income taxes



140,074



154,309



166,839



133,803



156,713



















Net income


$

270,965



280,401



286,688



241,613



277,549


 

 

M&T BANK CORPORATION









Condensed Consolidated Balance Sheet





















December 31




Dollars in thousands



2015


2014


Change











ASSETS


















Cash and due from banks


$

1,368,040


1,289,965


6

%










Interest-bearing deposits at banks



7,594,350


6,470,867


17











Federal funds sold



-


83,392


-100











Trading account assets



273,783


308,175


-11











Investment securities



15,656,439


12,993,542


20











Loans and leases:


















   Commercial, financial, etc.



20,422,338


19,461,292


5


   Real estate - commercial



29,197,311


27,567,569


6


   Real estate - consumer



26,270,103


8,657,301


203


   Consumer



11,599,747


10,982,794


6


     Total loans and leases, net of unearned discount



87,489,499


66,668,956


31


        Less: allowance for credit losses



955,992


919,562


4











  Net loans and leases



86,533,507


65,749,394


32











Goodwill



4,593,112


3,524,625


30











Core deposit and other intangible assets



140,268


35,027


300











Other assets



6,628,385


6,230,548


6











  Total assets


$

122,787,884


96,685,535


27

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits


$

29,110,635


26,947,880


8

%










Interest-bearing deposits



62,677,036


46,457,591


35











Deposits at Cayman Islands office



170,170


176,582


-4











  Total deposits



91,957,841


73,582,053


25











Short-term borrowings



2,132,182


192,676


1007











Accrued interest and other liabilities



1,870,714


1,567,951


19











Long-term borrowings



10,653,858


9,006,959


18











  Total liabilities



106,614,595


84,349,639


26











Shareholders' equity:


















   Preferred



1,231,500


1,231,500


-


   Common (1)



14,941,789


11,104,396


35











     Total shareholders' equity



16,173,289


12,335,896


31











  Total liabilities and shareholders' equity


$

122,787,884


96,685,535


27

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $251.6 million

       at December 31, 2015 and $181.0 million at December 31, 2014.

 

 

M&T BANK CORPORATION
















Condensed Consolidated Balance Sheet, Five Quarter Trend





















December 31,


September 30,



June 30,



March 31,



December 31,

Dollars in thousands



2015


2015



2015



2015



2014

















ASSETS
































Cash and due from banks


$

1,368,040



1,249,704



1,347,858



1,269,816



1,289,965

















Interest-bearing deposits at banks



7,594,350



4,713,266



4,045,852



6,291,491



6,470,867

















Federal funds sold



-



-



3,000



97,037



83,392

















Trading account assets



273,783



340,710



277,009



363,085



308,175

















Investment securities



15,656,439



14,494,539



14,751,637



14,393,270



12,993,542

















Loans and leases:
































   Commercial, financial, etc.



20,422,338



20,233,177



20,111,028



19,775,494



19,461,292

   Real estate - commercial



29,197,311



28,720,537



28,442,488



27,845,710



27,567,569

   Real estate - consumer



26,270,103



8,211,062



8,444,542



8,504,119



8,657,301

   Consumer



11,599,747



11,375,472



11,133,194



10,973,719



10,982,794

     Total loans and leases, net of unearned discount



87,489,499



68,540,248



68,131,252



67,099,042



66,668,956

        Less: allowance for credit losses



955,992



933,798



929,987



921,373



919,562

















  Net loans and leases



86,533,507



67,606,450



67,201,265



66,177,669



65,749,394

















Goodwill



4,593,112



3,513,325



3,513,325



3,524,625



3,524,625

















Core deposit and other intangible assets



140,268



18,179



22,269



28,234



35,027

















Other assets



6,628,385



5,860,889



5,917,861



6,232,556



6,230,548

















  Total assets


$

122,787,884



97,797,062



97,080,076



98,377,783



96,685,535

































LIABILITIES AND SHAREHOLDERS' EQUITY
































Noninterest-bearing deposits


$

29,110,635



28,189,330



27,674,588



27,181,120



26,947,880

















Interest-bearing deposits



62,677,036



44,549,028



44,787,590



46,234,455



46,457,591

















Deposits at Cayman Islands office



170,170



206,185



167,441



178,545



176,582

















  Total deposits



91,957,841



72,944,543



72,629,619



73,594,120



73,582,053

















Short-term borrowings



2,132,182



173,783



153,299



193,495



192,676

















Accrued interest and other liabilities



1,870,714



1,582,513



1,453,249



1,552,724



1,567,951

















Long-term borrowings



10,653,858



10,174,289



10,175,912



10,509,143



9,006,959

















  Total liabilities



106,614,595



84,875,128



84,412,079



85,849,482



84,349,639

















Shareholders' equity:
































   Preferred



1,231,500



1,231,500



1,231,500



1,231,500



1,231,500

   Common (1)



14,941,789



11,690,434



11,436,497



11,296,801



11,104,396

















     Total shareholders' equity



16,173,289



12,921,934



12,667,997



12,528,301



12,335,896

















  Total liabilities and shareholders' equity


$

122,787,884



97,797,062



97,080,076



98,377,783



96,685,535

































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $251.6 million at December 31, 2015, $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.

 

 

M&T BANK CORPORATION
































Condensed Consolidated Average Balance Sheet






























 and Annualized Taxable-equivalent Rates



































































Three months ended


Change in balance



Year ended







December 31,


December 31,


September 30,


December 31, 2015 from



December 31,




Dollars in millions



2015


2014


2015


December 31,


September 30,



2015


2014


Change in





Balance


Rate


Balance


Rate


Balance


Rate


2014


2015



Balance


Rate


Balance 


Rate


balance


ASSETS
































































Interest-bearing deposits at banks


$

6,622


.30

%

9,054


.25

%

6,060


.25

%

-27

%


9

%


$

5,775


.26

%

5,342


.25

%

8

%

































Federal funds sold and agreements
































  to resell securities



1


.54


86


.08


-


-


-99



-




34


.10


89


.07


-62


































Trading account assets



68


1.88


80


1.76


96


.52


-16



-29




86


1.44


76


1.81


13


































Investment securities



15,786


2.55


12,978


2.82


14,441


2.60


22



9




14,456


2.62


11,509


3.03


26


































Loans and leases, net of unearned discount
































  Commercial, financial, etc.



20,221


3.23


19,117


3.25


19,939


3.22


6



1




19,899


3.21


18,867


3.31


5


  Real estate - commercial



28,973


4.11


27,064


4.24


28,309


4.18


7



2




28,276


4.16


26,461


4.26


7


  Real estate - consumer



20,369


4.01


8,654


4.19


8,348


4.17


135



144




11,458


4.09


8,719


4.23


31


  Consumer



11,547


4.44


10,932


4.49


11,253


4.46


6



3




11,203


4.46


10,618


4.53


6


     Total loans and leases, net



81,110


3.92


65,767


4.01


67,849


3.96


23



20




70,836


3.95


64,665


4.05


10


































  Total earning assets



103,587


3.48


87,965


3.44


88,446


3.48


18



17




91,187


3.50


81,681


3.65


12


































Goodwill



4,218




3,525




3,513




20



20




3,694




3,525




5


































Core deposit and other intangible assets



101




38




20




164



403




45




50




-11


































Other assets



7,146




7,116




6,536




-



9




6,854




6,887




-


































  Total assets


$

115,052




98,644




98,515




17

%


17

%


$

101,780




92,143




10

%

































































































LIABILITIES AND SHAREHOLDERS' EQUITY
































































Interest-bearing deposits
































  Interest-checking


$

1,331


.11


1,083


.14


1,309


.11


23

%


2

%


$

1,275


.11


1,034


.14


23

%

  Savings deposits



45,974


.11


42,949


.10


41,197


.11


7



12




42,610


.10


40,474


.11


5


  Time deposits



9,686


.65


3,128


.50


2,858


.51


210



239




4,641


.58


3,290


.47


41


  Deposits at Cayman Islands office



224


.30


265


.22


206


.29


-16



9




216


.28


327


.21


-34


     Total interest-bearing deposits



57,215


.21


47,425


.13


45,570


.13


21



26




48,742


.15


45,125


.14


8


































Short-term borrowings



1,615


.39


195


.05


174


.07


729



828




548


.31


215


.05


155


Long-term borrowings



10,748


2.36


8,954


2.62


10,114


2.44


20



6




10,217


2.47


7,492


2.90


36


































Total interest-bearing liabilities



69,578


.54


56,574


.52


55,858


.55


23



25




59,507


.55


52,832


.53


13


































Noninterest-bearing deposits



28,443




28,090




28,251




1



1




27,324




25,715




6


































Other liabilities



2,024




1,538




1,619




32



25




1,721




1,499




15


































  Total liabilities



100,045




86,202




85,728




16



17




88,552




80,046




11


































Shareholders' equity



15,007




12,442




12,787




21



17




13,228




12,097




9


































  Total liabilities and shareholders' equity


$

115,052




98,644




98,515




17

%


17

%


$

101,780




92,143




10

%

































































Net interest spread





2.94




2.92




2.93











2.95




3.12




Contribution of interest-free funds





.18




.18




.21











.19




.19




Net interest margin 





3.12

%



3.10

%



3.14

%










3.14

%



3.31

%


 

 


M&T BANK CORPORATION














Reconciliation of GAAP to Non-GAAP Measures












































Three months ended



Year ended







December 31



December 31







2015


2014



2015


2014



Income statement data














In thousands, except per share














Net income














Net income



$

270,965


277,549


$

1,079,667


1,066,246



Amortization of core deposit and other














  intangible assets (1)




5,828


4,380



16,150


20,657



Merger-related expenses (1)




60,820


-



60,820


-



  Net operating income



$

337,613


281,929


$

1,156,637


1,086,903



Earnings per common share














Diluted earnings per common share



$

1.65


1.92


$

7.18


7.42



Amortization of core deposit and other














  intangible assets (1)




.04


.03



.12


.15



Merger-related expenses (1)




.40


-



.44


-



  Diluted net operating earnings per common share

$

2.09


1.95


$

7.74


7.57



Other expense














Other expense



$

786,113


666,221


$

2,822,932


2,689,474



Amortization of core deposit and other














  intangible assets




(9,576)


(7,170)



(26,424)


(33,824)



Merger-related expenses




(75,976)


-



(75,976)


-



  Noninterest operating expense



$

700,561


659,051


$

2,720,532


2,655,650



Merger-related expenses














Salaries and employee benefits



$

51,287


-


$

51,287


-



Equipment and net occupancy




3


-



3


-



Printing, postage and supplies




504


-



504


-



Other costs of operations




24,182


-



24,182


-



  Other expense




75,976


-



75,976


-



Provision for credit losses




21,000


-



21,000


-



  Total



$

96,976


-


$

96,976


-



Efficiency ratio














Noninterest operating expense (numerator)


$

700,561


659,051


$

2,720,532


2,655,650



Taxable-equivalent net interest income




813,401


687,847



2,867,050


2,700,088



Other income




448,108


451,643



1,825,037


1,779,273



Less:  Loss on bank investment securities



(22)


-



(130)


-



Denominator



$

1,261,531


1,139,490


$

4,692,217


4,479,361



Efficiency ratio




55.53

%

57.84

%


57.98

%

59.29

%






























Balance sheet data














In millions














Average assets














Average assets



$

115,052


98,644


$

101,780


92,143



Goodwill




(4,218)


(3,525)



(3,694)


(3,525)



Core deposit and other intangible assets




(101)


(38)



(45)


(50)



Deferred taxes




39


12



16


15



  Average tangible assets



$

110,772


95,093


$

98,057


88,583



Average common equity














Average total equity



$

15,007


12,442


$

13,228


12,097



Preferred stock




(1,232)


(1,231)



(1,232)


(1,192)



  Average common equity




13,775


11,211



11,996


10,905



Goodwill




(4,218)


(3,525)



(3,694)


(3,525)



Core deposit and other intangible assets




(101)


(38)



(45)


(50)



Deferred taxes




39


12



16


15



  Average tangible common equity



$

9,495


7,660


$

8,273


7,345

















At end of quarter














Total assets














Total assets



$

122,788


96,686








Goodwill




(4,593)


(3,525)








Core deposit and other intangible assets




(140)


(35)








Deferred taxes




54


11








  Total tangible assets



$

118,109


93,137








Total common equity














Total equity



$

16,173


12,336








Preferred stock




(1,232)


(1,231)








Undeclared dividends - cumulative preferred stock


(2)


(3)








  Common equity, net of undeclared cumulative












    preferred dividends




14,939


11,102








Goodwill




(4,593)


(3,525)








Core deposit and other intangible assets




(140)


(35)








Deferred taxes




54


11








  Total tangible common equity



$

10,260


7,553




































(1) After any related tax effect.













 

 

M&T BANK CORPORATION














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






















































Three months ended






December 31,


September 30,


June 30,


March 31,


December 31,






2015


2015


2015


2015


2014


Income statement data














In thousands, except per share














Net income














Net income



$

270,965


280,401


286,688


241,613


277,549


Amortization of core deposit and other














  intangible assets (1)




5,828


2,506


3,653


4,163


4,380


Merger-related expenses (1)




60,820


-


-


-


-


  Net operating income



$

337,613


282,907


290,341


245,776


281,929


Earnings per common share














Diluted earnings per common share



$

1.65


1.93


1.98


1.65


1.92


Amortization of core deposit and other














  intangible assets (1)




.04


.02


.03


.03


.03


Merger-related expenses (1)




.40


-


-


-


-


  Diluted net operating earnings per common share

$

2.09


1.95


2.01


1.68


1.95


Other expense














Other expense



$

786,113


653,816


696,628


686,375


666,221


Amortization of core deposit and other














  intangible assets




(9,576)


(4,090)


(5,965)


(6,793)


(7,170)


Merger-related expenses




(75,976)


-


-


-


-


  Noninterest operating expense



$

700,561


649,726


690,663


679,582


659,051


Merger-related expenses














Salaries and employee benefits



$

51,287


-


-


-


-


Equipment and net occupancy




3


-


-


-


-


Printing, postage and supplies




504


-


-


-


-


Other costs of operations




24,182


-


-


-


-


  Other expense




75,976


-


-


-


-


Provision for credit losses




21,000


-


-


-


-


  Total



$

96,976


-


-


-


-


Efficiency ratio














Noninterest operating expense (numerator)


$

700,561


649,726


690,663


679,582


659,051


Taxable-equivalent net interest income




813,401


699,075


689,148


665,426


687,847


Other income




448,108


439,699


497,027


440,203


451,643


Less:  Loss on bank investment securities



(22)


-


(10)


(98)


-


Denominator



$

1,261,531


1,138,774


1,186,185


1,105,727


1,139,490


Efficiency ratio




55.53

%

57.05

%

58.23

%

61.46

%

57.84

%





























Balance sheet data














In millions














Average assets














Average assets



$

115,052


98,515


97,598


95,892


98,644


Goodwill




(4,218)


(3,513)


(3,514)


(3,525)


(3,525)


Core deposit and other intangible assets




(101)


(20)


(25)


(31)


(38)


Deferred taxes




39


7


8


10


12


  Average tangible assets



$

110,772


94,989


94,067


92,346


95,093


Average common equity














Average total equity



$

15,007


12,787


12,636


12,459


12,442


Preferred stock




(1,232)


(1,232)


(1,232)


(1,232)


(1,231)


  Average common equity




13,775


11,555


11,404


11,227


11,211


Goodwill




(4,218)


(3,513)


(3,514)


(3,525)


(3,525)


Core deposit and other intangible assets




(101)


(20)


(25)


(31)


(38)


Deferred taxes




39


7


8


10


12


  Average tangible common equity



$

9,495


8,029


7,873


7,681


7,660
















At end of quarter














Total assets














Total assets



$

122,788


97,797


97,080


98,378


96,686


Goodwill




(4,593)


(3,513)


(3,513)


(3,525)


(3,525)


Core deposit and other intangible assets




(140)


(18)


(22)


(28)


(35)


Deferred taxes




54


6


7


9


11


  Total tangible assets



$

118,109


94,272


93,552


94,834


93,137


Total common equity














Total equity



$

16,173


12,922


12,668


12,528


12,336


Preferred stock




(1,232)


(1,232)


(1,232)


(1,232)


(1,231)


Undeclared dividends - cumulative preferred stock


(2)


(3)


(3)


(2)


(3)


  Common equity, net of undeclared cumulative












    preferred dividends




14,939


11,687


11,433


11,294


11,102


Goodwill




(4,593)


(3,513)


(3,513)


(3,525)


(3,525)


Core deposit and other intangible assets




(140)


(18)


(22)


(28)


(35)


Deferred taxes




54


6


7


9


11


  Total tangible common equity



$

10,260


8,162


7,905


7,750


7,553






























(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-2015-fourth-quarter-and-full-year-profits-300206129.html

SOURCE M&T Bank Corporation

News Provided by Acquire Media

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