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M&T Bank Corporation Announces First Quarter Results

BUFFALO, N.Y., April 18, 2016 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2016.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the initial quarter of 2016 were $1.73, up 5% from $1.65 in each of the first and fourth quarters of 2015.  GAAP-basis net income in the recent quarter was $299 million, 24% higher than the $242 million earned in the year-earlier quarter and 10% above the $271 million recorded in the final 2015 quarter.  Net income for the initial 2016 quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was .97% and 7.44%, respectively, compared with 1.02% and 7.99%, respectively, in the corresponding 2015 period and .93% and 7.22% in the fourth quarter of 2015.  M&T's first quarter 2016 results reflect a full-quarter impact of its November 1, 2015 acquisition of Hudson City Bancorp, Inc. ("Hudson City"). 

Commenting on M&T's recent quarter performance, René F. Jones, Vice Chairman and Chief Financial Officer, noted, "Results in 2016's initial quarter reflected strong growth in net interest income, solid loan growth, stable credit performance and well-controlled expenses, leading to an 11% rise in diluted net operating earnings per share, to $1.87, over the year-earlier period.  The quarter was highlighted by the full integration of Hudson City's operations through the successful conversion of the deposit system and branch network.  Our entire banking franchise is now operating under the M&T flag, enabling us to extend to our new customers our unwavering commitment to outstanding service."

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 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" expense are presented in the tables that accompany this release.  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 $1.87 in the first three months of 2016, up 11% from $1.68 in the year-earlier period.  Net operating income for the initial quarter of 2016 rose 30% to $320 million from $246 million in the first quarter of 2015.  Diluted net operating earnings per common share and net operating income in the fourth quarter of 2015 were $2.09 and $338 million, respectively. 

Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.09% and 11.62%, respectively, in the first quarter of 2016, compared with 1.08% and 11.90%, respectively, in the year-earlier quarter and 1.21% and 13.26%, respectively, in the fourth quarter of 2015.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income aggregated $878 million in the initial quarter of 2016, up 32% from $665 million in the year-earlier period. That growth resulted predominantly from a 31% rise in average earning assets, which grew to $111.2 billion in the recent quarter from $85.2 billion in the year-earlier quarter.  The improvement reflects the Hudson City acquisition that added approximately $18.1 billion to average loans in the recent quarter plus growth of $2.9 billion in M&T's other loan portfolios.  The net interest margin in the first quarter of 2016 was 3.18%, improved slightly from 3.17% in the initial 2015 quarter.  Taxable-equivalent net interest income in the fourth quarter of 2015 was $813 million.  The $65 million improvement in the recent quarter as compared with the final 2015 quarter was largely due to the full-quarter impact of the Hudson City transaction, growth in commercial loans and commercial real estate loans and a 6 basis point widening of the net interest margin.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $49 million in the first quarter of 2016, compared with $38 million in the year-earlier quarter.  The provision in the final 2015 quarter was $58 million, reflecting a merger-related charge of $21 million associated with loans obtained in the Hudson City acquisition.  Net charge-offs of loans during the recent quarter aggregated $42 million, compared with $36 million in each of the first and fourth quarters of 2015. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% during the first three months of 2016, compared with .22% and .18% in the first and fourth quarters of 2015, respectively. 

Loans classified as nonaccrual totaled $877 million or 1.00% of total loans outstanding at March 31, 2016, compared with $791 million or 1.18% a year earlier and $799 million or .91% at December 31, 2015.  Loans obtained from Hudson City that were over 90 days past due as of the acquisition date are reported as purchased impaired loans and, in accordance with GAAP, interest continues to accrue on those loans despite their delinquency status. Those acquired loans have not been reported as nonaccrual as of either March 31, 2016 or December 31, 2015. The higher level of nonaccrual loans at the recent quarter-end reflects the normal migration of $80 million of previously performing loans obtained in the acquisition of Hudson City that became over 90 days past due during the recent quarter and, as such, were not identifiable as purchased impaired as of the acquisition date.  Assets taken in foreclosure of defaulted loans totaled $188 million at March 31, 2016, compared with $63 million a year earlier and $195 million at December 31, 2015.  The higher level of such assets at the two most recent quarter-ends resulted from residential real estate properties associated with 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 $963 million at March 31, 2016, compared with $921 million a year earlier and $956 million at December 31, 2015.  The allowance expressed as a percentage of outstanding loans was 1.10% at March 31, 2016, compared with 1.37% at March 31, 2015 and 1.09% at December 31, 2015.  The decline in those ratios at the two most recent quarter-ends as compared with March 31, 2015 reflects the impact of residential mortgage loans obtained in the Hudson City acquisition. 

Noninterest Income and Expense.  Noninterest income totaled $421 million in the initial 2016 quarter, $440 million in the year-earlier quarter and $448 million in the fourth quarter of 2015.  As compared with the first quarter of 2015, residential mortgage banking revenues declined in the recent quarter, reflecting lower loan origination volumes and loan servicing income, and trust income decreased predominantly from the April 2015 sale of M&T's trade processing business within its retirement services division.  As compared with the final quarter of 2015, noninterest income in the recent quarter reflected lower levels of credit-related fees and commercial mortgage banking revenues. 

Noninterest expense in the first quarter of 2016 aggregated $776 million, compared with $686 million and $786 million in the first and fourth quarters of 2015, respectively.  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 $741 million in the first quarter of 2016, $680 million in the year-earlier quarter and $701 million in the fourth quarter of 2015.  The most significant factor for the higher level of operating expenses in the recent quarter as compared to the initial 2015 quarter was the impact of operations obtained in the Hudson City acquisition.  The rise in operating expenses from 2015's final quarter reflected the full-quarter impact of the Hudson City acquisition, along with seasonally higher stock-based compensation and employee benefits expenses offset, in part, by lower professional services costs.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues.  Notably, M&T's efficiency ratio improved to 57.0% in the first quarter of 2016 from 61.5% in the year-earlier quarter.

Balance Sheet.  M&T had total assets of $124.6 billion at March 31, 2016, up 27% from $98.4 billion a year earlier.  Investment securities at the recent quarter-end were $15.5 billion, up $1.1 billion or 7% from March 31, 2015.  Loans and leases, net of unearned discount, rose 31% to $87.9 billion at March 31, 2016 from $67.1 billion a year earlier.  Total deposits were $94.2 billion at the recent quarter-end, up 28% from $73.6 billion at March 31, 2015

Reflecting $3.1 billion of common equity issued in the acquisition of Hudson City, total shareholders' equity rose $3.8 billion or 31% to $16.4 billion at March 31, 2016 from $12.5 billion at March 31, 2015, representing 13.12% and 12.73%, respectively, of total assets.  Common shareholders' equity was $15.1 billion, or $95.00 per share at March 31, 2016, up from $11.3 billion, or $84.95 per share, a year earlier. Tangible equity per common share rose 13% to $65.65 at March 31, 2016 from $58.29 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $93.60 and $64.28, respectively, at December 31, 2015.  In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 11.06% at March 31, 2016

M&T's Board of Directors authorized the purchase of up to $254 million of shares of common stock through the end of the second quarter of 2016.  During the first quarter, M&T purchased 948,545 shares of common stock under that authorization at an average cost per share of $105.42, for a total cost of $100 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276.  International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID #88263531.  The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available until Thursday, April 21, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #88263531.  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








Amounts in thousands,



March 31








 except per share



2016


2015


Change



















Performance


























Net income


$

298,528


241,613


24

%




Net income available to common shareholders



275,748


218,837


26

%

















Per common share:













  Basic earnings


$

1.74


1.66


5

%




  Diluted earnings



1.73


1.65


5

%




  Cash dividends


$

.70


.70


-



















Common shares outstanding:













  Average - diluted (1)



159,181


132,769


20

%




  Period end (2)



159,156


132,946


20

%

















Return on (annualized):













  Average total assets 



.97

%

1.02

%







  Average common shareholders' equity



7.44

%

7.99

%




















Taxable-equivalent net interest income


$

878,296


665,426


32

%

















Yield on average earning assets



3.54

%

3.54

%







Cost of interest-bearing liabilities



.53

%

.57

%







Net interest spread



3.01

%

2.97

%







Contribution of interest-free funds



.17

%

.20

%







Net interest margin 



3.18

%

3.17

%




















Net charge-offs to average total 













  net loans (annualized)



.19

%

.22

%




















Net operating results (3)


























Net operating income


$

320,064


245,776


30

%




Diluted net operating earnings per common share



1.87


1.68


11

%




Return on (annualized):













  Average tangible assets



1.09

%

1.08

%







  Average tangible common equity



11.62

%

11.90

%







Efficiency ratio



57.00

%

61.46

%

















































 

At  March 31








Loan quality



2016


2015


Change



















Nonaccrual loans


$

876,691


790,586


11

%




Real estate and other foreclosed assets



188,004


62,578


200

%




  Total nonperforming assets


$

1,064,695


853,164


25

%

















Accruing loans past due 90 days or more (4)


$

336,170


236,621


42

%

















Government guaranteed loans included in totals above:













  Nonaccrual loans


$

49,688


60,508


-18

%




  Accruing loans past due 90 days or more



279,340


193,618


44

%

















Renegotiated loans


$

200,771


198,911


1

%

















Accruing loans acquired at a discount past due 90 













  days or more (5)


$

61,767


80,110


-23

%

















Purchased impaired loans (6):













  Outstanding customer balance


$

1,124,776


335,079








  Carrying amount



715,874


184,018





















Nonaccrual loans to total net loans



1.00

%

1.18

%




















Allowance for credit losses to total loans



1.10

%

1.37

%

































(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,




March 31,


December 31,


September 30,


June 30,


March 31,




 except per share




2016


2015


2015


2015


2015

























Performance










































Net income



$

298,528



270,965



280,401



286,688



241,613





Net income available to common shareholders




275,748



248,059



257,346



263,481



218,837


























Per common share:





















  Basic earnings



$

1.74



1.65



1.94



1.99



1.66





  Diluted earnings




1.73



1.65



1.93



1.98



1.65





  Cash dividends



$

.70



.70



.70



.70



.70


























Common shares outstanding:





















  Average - diluted (1)




159,181



150,718



133,376



133,116



132,769





  Period end (2)




159,156



159,600



133,311



133,099



132,946


























Return on (annualized):





















  Average total assets 




.97

%


.93

%


1.13

%


1.18

%


1.02

%




  Average common shareholders' equity 




7.44

%


7.22

%


8.93

%


9.37

%


7.99

%

























Taxable-equivalent net interest income



$

878,296



813,401



699,075



689,148



665,426


























Yield on average earning assets




3.54

%


3.48

%


3.48

%


3.52

%


3.54

%




Cost of interest-bearing liabilities




.53

%


.54

%


.55

%


.55

%


.57

%




Net interest spread




3.01

%


2.94

%


2.93

%


2.97

%


2.97

%




Contribution of interest-free funds




.17

%


.18

%


.21

%


.20

%


.20

%




Net interest margin 




3.18

%


3.12

%


3.14

%


3.17

%


3.17

%

























Net charge-offs to average total 





















  net loans (annualized)




.19

%


.18

%


.24

%


.13

%


.22

%

























Net operating results (3)










































Net operating income 



$

320,064



337,613



282,907



290,341



245,776





Diluted net operating earnings per common share




1.87



2.09



1.95



2.01



1.68





Return on (annualized):





















  Average tangible assets




1.09

%


1.21

%


1.18

%


1.24

%


1.08

%




  Average tangible common equity




11.62

%


13.26

%


12.98

%


13.76

%


11.90

%




Efficiency ratio




57.00

%


55.53

%


57.05

%


58.23

%


61.46

%

















































































March 31,


December 31,


September 30,


June 30,


March 31,




Loan quality




2016


2015


2015


2015


2015

























Nonaccrual loans



$

876,691



799,409



787,098



797,146



790,586





Real estate and other foreclosed assets




188,004



195,085



66,144



63,734



62,578





  Total nonperforming assets



$

1,064,695



994,494



853,242



860,880



853,164


























Accruing loans past due 90 days or more (4)



$

336,170



317,441



231,465



238,568



236,621


























Government guaranteed loans included in totals





















  above:





















  Nonaccrual loans



$

49,688



47,052



48,955



58,259



60,508





  Accruing loans past due 90 days or more




279,340



276,285



193,998



206,775



193,618


























Renegotiated loans



$

200,771



182,865



189,639



197,145



198,911


























Accruing loans acquired at a discount past due 90 





















  days or more (5)



$

61,767



68,473



80,827



78,591



80,110


























Purchased impaired loans (6):





















  Outstanding customer balance



$

1,124,776



1,204,004



278,979



312,507



335,079





  Carrying amount




715,874



768,329



149,421



169,240



184,018


























Nonaccrual loans to total net loans




1.00

%


.91

%


1.15

%


1.17

%


1.18

%

























Allowance for credit losses to total loans




1.10

%


1.09

%


1.36

%


1.36

%


1.37

%














































(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






March 31




Dollars in thousands


2016


2015


Change










Interest income

$

972,834


738,087


32

%

Interest expense


100,870


78,499


28










Net interest income


871,964


659,588


32










Provision for credit losses


49,000


38,000


29










Net interest income after








   provision for credit losses


822,964


621,588


32










Other income








     Mortgage banking revenues


82,063


101,601


-19


     Service charges on deposit accounts


102,405


102,344


-


     Trust income


111,077


123,734


-10


     Brokerage services income


16,004


15,461


4


     Trading account and foreign exchange gains


7,458


6,231


20


     Gain (loss) on bank investment securities


4


(98)


-


     Equity in earnings of Bayview Lending Group LLC


(3,619)


(4,191)


-


     Other revenues from operations


105,541


95,121


11


          Total other income


420,933


440,203


-4










Other expense








     Salaries and employee benefits


431,785


389,893


11


     Equipment and net occupancy


74,178


66,470


12


     Printing, postage and supplies


11,986


9,590


25


     Amortization of core deposit and other 








        intangible assets


12,319


6,793


81


     FDIC assessments


25,225


10,660


137


     Other costs of operations 


220,602


202,969


9


          Total other expense


776,095


686,375


13










Income before income taxes


467,802


375,416


25










Applicable income taxes


169,274


133,803


27










Net income

$

298,528


241,613


24

%









 

































M&T BANK CORPORATION
















Condensed Consolidated Statement of Income, Five Quarter Trend































Three months ended




March 31,


  December 31,


  September 30,


June 30,


March 31,

Dollars in thousands


2016


2015


2015


2015


2015
















Interest income

$

972,834



902,377



770,026



760,354


738,087


Interest expense


100,870



95,333



77,199



77,226


78,499

















Net interest income


871,964



807,044



692,827



683,128


659,588

















Provision for credit losses


49,000



58,000



44,000



30,000


38,000

















Net interest income after















   provision for credit losses


822,964



749,044



648,827



653,128


621,588

















Other income















     Mortgage banking revenues


82,063



87,500



84,035



102,602


101,601


     Service charges on deposit accounts


102,405



105,748



107,259



105,257


102,344


     Trust income 


111,077



114,564



113,744



118,598


123,734


     Brokerage services income


16,004



15,546



16,902



16,861


15,461


     Trading account and foreign exchange gains


7,458



9,938



8,362



6,046


6,231


     Gain (loss) on bank investment securities


4



(22)



-



(10)


(98)


     Equity in earnings of Bayview Lending Group LLC


(3,619)



(3,224)



(3,721)



(3,131)


(4,191)


     Other revenues from operations


105,541



118,058



113,118



150,804


95,121


          Total other income


420,933



448,108



439,699



497,027


440,203

















Other expense















     Salaries and employee benefits


431,785



434,413



363,567



361,657


389,893


     Equipment and net occupancy


74,178



70,747



68,470



66,852


66,470


     Printing, postage and supplies


11,986



10,905



8,691



9,305


9,590


     Amortization of core deposit and other 















        intangible assets


12,319



9,576



4,090



5,965


6,793


     FDIC assessments


25,225



19,562



11,090



10,801


10,660


     Other costs of operations


220,602



240,910



197,908



242,048


202,969


          Total other expense


776,095



786,113



653,816



696,628


686,375

















Income before income taxes


467,802



411,039



434,710



453,527


375,416

















Applicable income taxes


169,274



140,074



154,309



166,839


133,803

















Net income

$

298,528



270,965



280,401



286,688


241,613

















 

 

 

M&T BANK CORPORATION









Condensed Consolidated Balance Sheet





















March 31




Dollars in thousands



2016


2015


Change











ASSETS


















Cash and due from banks


$

1,178,175


1,269,816


-7

%










Interest-bearing deposits at banks



9,545,181


6,291,491


52











Federal funds sold



-


97,037


-100











Trading account assets



467,987


363,085


29











Investment securities



15,467,320


14,393,270


7











Loans and leases:


















   Commercial, financial, etc. 



21,226,577


19,775,494


7


   Real estate - commercial



29,713,293


27,845,710


7


   Real estate - consumer



25,299,638


8,504,119


197


   Consumer



11,632,958


10,973,719


6


     Total loans and leases, net of unearned discount



87,872,466


67,099,042


31


        Less: allowance for credit losses



962,752


921,373


4











  Net loans and leases



86,909,714


66,177,669


31











Goodwill



4,593,112


3,524,625


30











Core deposit and other intangible assets



127,949


28,234


353











Other assets



6,336,194


6,232,556


2











  Total assets


$

124,625,632


98,377,783


27

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits


$

29,709,218


27,181,120


9

%










Interest-bearing deposits



64,338,571


46,234,455


39











Deposits at Cayman Islands office



166,787


178,545


-7











  Total deposits



94,214,576


73,594,120


28











Short-term borrowings



1,766,826


193,495


813











Accrued interest and other liabilities



1,948,142


1,552,724


25











Long-term borrowings



10,341,035


10,509,143


-2











  Total liabilities



108,270,579


85,849,482


26











Shareholders' equity:


















   Preferred



1,231,500


1,231,500


-


   Common (1) 



15,123,553


11,296,801


34











     Total shareholders' equity



16,355,053


12,528,301


31











  Total liabilities and shareholders' equity


$

124,625,632


98,377,783


27

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $150.2 million


       at March 31, 2016 and $152.5 million at March 31, 2015.




 



































M&T BANK CORPORATION













Condensed Consolidated Balance Sheet, Five Quarter Trend



















March 31,


December 31,


September 30,


June 30,


March 31,



Dollars in thousands



2016


2015



2015



2015


2015




















ASSETS


































Cash and due from banks


$

1,178,175



1,368,040



1,249,704



1,347,858


1,269,816




















Interest-bearing deposits at banks



9,545,181



7,594,350



4,713,266



4,045,852


6,291,491




















Federal funds sold



-



-



-



3,000


97,037




















Trading account assets



467,987



273,783



340,710



277,009


363,085




















Investment securities



15,467,320



15,656,439



14,494,539



14,751,637


14,393,270




















Loans and leases:


































   Commercial, financial, etc. 



21,226,577



20,422,338



20,233,177



20,111,028


19,775,494



   Real estate - commercial



29,713,293



29,197,311



28,720,537



28,442,488


27,845,710



   Real estate - consumer



25,299,638



26,270,103



8,211,062



8,444,542


8,504,119



   Consumer



11,632,958



11,599,747



11,375,472



11,133,194


10,973,719



     Total loans and leases, net of unearned discount



87,872,466



87,489,499



68,540,248



68,131,252


67,099,042



        Less: allowance for credit losses



962,752



955,992



933,798



929,987


921,373




















  Net loans and leases



86,909,714



86,533,507



67,606,450



67,201,265


66,177,669




















Goodwill



4,593,112



4,593,112



3,513,325



3,513,325


3,524,625




















Core deposit and other intangible assets



127,949



140,268



18,179



22,269


28,234




















Other assets



6,336,194



6,628,385



5,860,889



5,917,861


6,232,556




















  Total assets


$

124,625,632



122,787,884



97,797,062



97,080,076


98,377,783





































LIABILITIES AND SHAREHOLDERS' EQUITY


































Noninterest-bearing deposits


$

29,709,218



29,110,635



28,189,330



27,674,588


27,181,120




















Interest-bearing deposits



64,338,571



62,677,036



44,549,028



44,787,590


46,234,455




















Deposits at Cayman Islands office



166,787



170,170



206,185



167,441


178,545




















  Total deposits



94,214,576



91,957,841



72,944,543



72,629,619


73,594,120




















Short-term borrowings



1,766,826



2,132,182



173,783



153,299


193,495




















Accrued interest and other liabilities



1,948,142



1,870,714



1,582,513



1,453,249


1,552,724




















Long-term borrowings



10,341,035



10,653,858



10,174,289



10,175,912


10,509,143




















  Total liabilities



108,270,579



106,614,595



84,875,128



84,412,079


85,849,482




















Shareholders' equity:


































   Preferred



1,231,500



1,231,500



1,231,500



1,231,500


1,231,500



   Common (1) 



15,123,553



14,941,789



11,690,434



11,436,497


11,296,801




















     Total shareholders' equity



16,355,053



16,173,289



12,921,934



12,667,997


12,528,301




















  Total liabilities and shareholders' equity


$

124,625,632



122,787,884



97,797,062



97,080,076


98,377,783





































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $150.2 million at March 31, 2016, $251.6 million


         at December 31, 2015, $163.5 million at September 30, 2015, $217.5 million at June 30, 2015 and $152.5 million at March 31, 2015.











































































M&T BANK CORPORATION

















Condensed Consolidated Average Balance Sheet















 and Annualized Taxable-equivalent Rates





































Three months ended


Change in balance





March 31,


March 31,


December 31,


March 31, 2016 from


Dollars in millions



2016


2015


2015


March 31,


December 31,





Balance

Rate


Balance

Rate


Balance

Rate


2015


2015


ASSETS


































Interest-bearing deposits at banks


$

8,193

.51

%

5,073

.25

%

6,622

.30

%

62

%

24

%



















Federal funds sold



1

.77


97

.10


1

.54


-100


-




















Trading account assets



85

1.78


79

2.87


68

1.88


8


26




















Investment securities



15,348

2.60


13,376

2.67


15,786

2.55


15


-3




















Loans and leases, net of unearned discount

















  Commercial, financial, etc. 



20,717

3.39


19,457

3.21


20,221

3.23


6


2



  Real estate - commercial



29,426

4.16


27,596

4.18


28,973

4.11


7


2



  Real estate - consumer



25,859

3.93


8,572

4.15


20,369

4.01


202


27



  Consumer



11,582

4.55


10,962

4.49


11,547

4.44


6


-



     Total loans and leases, net



87,584

3.99


66,587

3.97


81,110

3.92


32


8




















  Total earning assets



111,211

3.54


85,212

3.54


103,587

3.48


31


7




















Goodwill



4,593



3,525



4,218



30


9




















Core deposit and other intangible assets



134



31



101



326


32




















Other assets



7,314



7,124



7,146



3


2




















  Total assets


$

123,252



95,892



115,052



29

%

7

%





















































LIABILITIES AND SHAREHOLDERS' EQUITY

































Interest-bearing deposits

















  Interest-checking deposits


$

1,359

.12


1,121

.11


1,331

.11


21

%

2

%


  Savings deposits



48,976

.13


41,525

.10


45,974

.11


18


7



  Time deposits



12,999

.75


3,017

.50


9,686

.65


331


34



  Deposits at Cayman Islands office



187

.42


224

.27


224

.30


-16


-16



     Total interest-bearing deposits



63,521

.26


45,887

.13


57,215

.21


38


11




















Short-term borrowings



2,082

.42


196

.07


1,615

.39


961


29



Long-term borrowings



10,528

2.21


9,835

2.64


10,748

2.36


7


-2




















Total interest-bearing liabilities



76,131

.53


55,918

.57


69,578

.54


36


9




















Noninterest-bearing deposits



28,870



25,811



28,443



12


2




















Other liabilities



1,972



1,704



2,024



16


-3




















  Total liabilities



106,973



83,433



100,045



28


7




















Shareholders' equity



16,279



12,459



15,007



31


8




















  Total liabilities and shareholders' equity


$

123,252



95,892



115,052



29

%

7

%




































Net interest spread




3.01



2.97



2.94







Contribution of interest-free funds




.17



.20



.18







Net interest margin 




3.18

%


3.17

%


3.12

%























 

M&T BANK CORPORATION



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

















































Three months ended






March 31,


December 31,


September 30,


June 30,


March 31,






2016


2015


2015


2015


2015


Income statement data














In thousands, except per share














Net income














Net income



$

298,528


270,965


280,401


286,688


241,613


Amortization of core deposit and other














  intangible assets (1)




7,488


5,828


2,506


3,653


4,163


Merger-related expenses (1)




14,048


60,820


-


-


-


  Net operating income



$

320,064


337,613


282,907


290,341


245,776


Earnings per common share














Diluted earnings per common share



$

1.73


1.65


1.93


1.98


1.65


Amortization of core deposit and other














  intangible assets (1)




.05


.04


.02


.03


.03


Merger-related expenses (1)




.09


.40


-


-


-


  Diluted net operating earnings per common share

$

1.87


2.09


1.95


2.01


1.68


Other expense














Other expense



$

776,095


786,113


653,816


696,628


686,375


Amortization of core deposit and other














  intangible assets




(12,319)


(9,576)


(4,090)


(5,965)


(6,793)


Merger-related expenses




(23,162)


(75,976)


-


-


-


  Noninterest operating expense



$

740,614


700,561


649,726


690,663


679,582


Merger-related expenses














Salaries and employee benefits



$

5,274


51,287


-


-


-


Equipment and net occupancy




939


3


-


-


-


Printing, postage and supplies




937


504


-


-


-


Other costs of operations




16,012


24,182


-


-


-


  Other expense




23,162


75,976


-


-


-


Provision for credit losses




-


21,000


-


-


-


  Total



$

23,162


96,976


-


-


-


Efficiency ratio














Noninterest operating expense (numerator)


$

740,614


700,561


649,726


690,663


679,582


Taxable-equivalent net interest income




878,296


813,401


699,075


689,148


665,426


Other income




420,933


448,108


439,699


497,027


440,203


Less:  Gain (loss) on bank investment securities


4


(22)


-


(10)


(98)


Denominator



$

1,299,225


1,261,531


1,138,774


1,186,185


1,105,727


Efficiency ratio




57.00

%

55.53

%

57.05

%

58.23

%

61.46

%





























Balance sheet data














In millions














Average assets














Average assets



$

123,252


115,052


98,515


97,598


95,892


Goodwill




(4,593)


(4,218)


(3,513)


(3,514)


(3,525)


Core deposit and other intangible assets




(134)


(101)


(20)


(25)


(31)


Deferred taxes




52


39


7


8


10


  Average tangible assets



$

118,577


110,772


94,989


94,067


92,346


Average common equity














Average total equity



$

16,279


15,007


12,787


12,636


12,459


Preferred stock




(1,232)


(1,232)


(1,232)


(1,232)


(1,232)


  Average common equity




15,047


13,775


11,555


11,404


11,227


Goodwill




(4,593)


(4,218)


(3,513)


(3,514)


(3,525)


Core deposit and other intangible assets




(134)


(101)


(20)


(25)


(31)


Deferred taxes




52


39


7


8


10


  Average tangible common equity



$

10,372


9,495


8,029


7,873


7,681
















At end of quarter














Total assets














Total assets



$

124,626


122,788


97,797


97,080


98,378


Goodwill




(4,593)


(4,593)


(3,513)


(3,513)


(3,525)


Core deposit and other intangible assets




(128)


(140)


(18)


(22)


(28)


Deferred taxes




50


54


6


7


9


  Total tangible assets



$

119,955


118,109


94,272


93,552


94,834


Total common equity














Total equity



$

16,355


16,173


12,922


12,668


12,528


Preferred stock




(1,232)


(1,232)


(1,232)


(1,232)


(1,232)


Undeclared dividends - cumulative preferred stock


(3)


(2)


(3)


(3)


(2)


  Common equity, net of undeclared cumulative












    preferred dividends




15,120


14,939


11,687


11,433


11,294


Goodwill




(4,593)


(4,593)


(3,513)


(3,513)


(3,525)


Core deposit and other intangible assets




(128)


(140)


(18)


(22)


(28)


Deferred taxes




50


54


6


7


9


  Total tangible common equity



$

10,449


10,260


8,162


7,905


7,750






























(1) After any related tax effect.














 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mt-bank-corporation-announces-first-quarter-results-300252780.html

SOURCE M&T Bank Corporation

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