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M&T Bank Corporation Announces Second Quarter Results

BUFFALO, N.Y., July 20, 2016 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2016.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2016 were $1.98, equal to the year-earlier period and up from $1.73 recorded in the first quarter of 2016.  GAAP-basis net income in the recently completed quarter totaled $336 million, up 17% from $287 million in the second quarter of 2015 and 13% from $299 million in the initial 2016 quarter.  GAAP-basis net income for the second quarter of 2016 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.09% and 8.38%, respectively, compared with 1.18% and 9.37%, respectively, in the year-earlier quarter and .97% and 7.44%, respectively, in the first quarter of 2016.

Commenting on the recent quarter's performance, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "M&T's second quarter performance reflects impressive loan growth in our commercial portfolios, continued strong credit quality and further improved operating efficiency, contributing to an 11% rise in diluted net operating earnings per share.  Average balances of loans to commercial customers grew an annualized 11% from the first quarter, while levels of net charge-offs and nonperforming loans improved.  During the quarter we received a non-objection from the Federal Reserve to our 2016 capital plan and proposed capital actions that include a common stock repurchase program and an increase in the common stock dividend." 

For the six-month period ended June 30, 2016, diluted earnings per common share were $3.71, improved 2% from $3.63 in the year-earlier period.  GAAP-basis net income for the first half of 2016 totaled $635 million, 20% higher than $528 million in the corresponding 2015 period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the six-month period ended June 30, 2016 was 1.03% and 7.91%, respectively, compared with 1.10% and 8.69%, respectively, in the similar 2015 period.

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and 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 $2.07 in the recent quarter, up from $2.01 and $1.87 in the year-earlier quarter and the first quarter of 2016, respectively. Net operating income rose to $351 million in the second quarter of 2016, 21% above $290 million in the second quarter of 2015 and 10% higher than $320 million in the initial 2016 quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.18% and 12.68%, respectively, in the second quarter of 2016, 1.24% and 13.76%, respectively, in the second quarter of 2015 and 1.09% and 11.62%, respectively, in the first quarter of 2016.

Diluted net operating earnings per common share in the first six months of 2016 were $3.94, up 7% from $3.69 in the first half of 2015.  Net operating income during the six-month period ended June 30, 2016 was $671 million, 25% higher than $536 million in the corresponding 2015 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.14% and 12.15%, respectively, in the first half of 2016, compared with 1.16% and 12.85%, respectively, in the first six months of 2015.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $870 million in the recent quarter, up 26% from $689 million in the second quarter of 2015.  That improvement resulted predominantly from a 28% rise in average earning assets, which grew to $111.9 billion in the second quarter of 2016 from $87.3 billion in the year-earlier quarter.  The growth in average earning assets reflects the November 2015 acquisition of Hudson City Bancorp, Inc. ("Hudson City") that added approximately $17.2 billion in average loans in the recent quarter.  The net interest margin in the second quarter of 2016 was 3.13%, compared with 3.17% in the year-earlier quarter.  Taxable-equivalent net interest income and the net interest margin in the initial 2016 quarter were $878 million and 3.18%, respectively.   

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $32 million in the second quarter of 2016, compared with $30 million in the year-earlier quarter and $49 million in the initial 2016 quarter.  Net charge-offs of loans were $24 million during the recent quarter, compared with $21 million in the second quarter of 2015 and $42 million in the first quarter of 2016.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .11% and .13% in the second quarters of 2016 and 2015, respectively, and .19% in the first quarter of 2016.

Loans classified as nonaccrual totaled $849 million, or .96% of total loans outstanding at June 30, 2016, compared with $797 million or 1.17% a year earlier and $877 million or 1.00% at March 31, 2016.  The higher level of nonaccrual loans at the two most recent quarter-ends as compared with June 30, 2015 reflects the normal migration of previously performing loans obtained in the acquisition of Hudson City that became over 90 days past due during the first half of 2016 and, as such, were not identifiable as purchased impaired as of the acquisition date.  Assets taken in foreclosure of defaulted loans were $172 million at June 30, 2016, compared with $64 million at June 30, 2015 and $188 million at March 31, 2016.  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 $970 million at June 30, 2016 and $963 million at March 31, 2016, representing 1.10% of loans outstanding at each of those dates.  The allowance was $930 million or 1.36% of loans at June 30, 2015.  The decline in those ratios at the two most recent quarter-ends as compared with June 30, 2015 reflects the impact of residential mortgage loans obtained in the Hudson City acquisition.   

Noninterest Income and Expense.  Noninterest income totaled $448 million in the second quarter of 2016, compared with $497 million in the year-earlier quarter and $421 million in the first quarter of 2016.  Reflected in noninterest income in the second quarter of 2015 was a $45 million pre-tax gain realized from the April 2015 sale of the trade processing business within the retirement services division.  After considering the impact of that gain, total noninterest income in the recent quarter was little changed from the second quarter of 2015.  As compared with the first quarter of 2016, the recent quarter's 6% rise in noninterest income was largely due to higher trust income and mortgage banking revenues.

Noninterest expense in the second quarter of 2016 totaled $750 million, compared with $697 million in the year-earlier quarter and $776 million in the first quarter of 2016.  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 $726 million in the recent quarter, compared with $691 million in the second quarter of 2015 and $741 million in 2016's initial quarter.  The most significant factor for the higher level of operating expenses in the recent quarter as compared with the second quarter of 2015 was the impact of operations obtained in the Hudson City acquisition, which was partially offset by a $40 million cash contribution made to The M&T Charitable Foundation in the second 2015 quarter.  As compared with the first quarter of 2016, the recent quarter's lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2016 period. 

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 improved to 55.1% in the recent quarter from 58.2% in the second quarter of 2015 and 57.0% in the first quarter of 2016. 

Balance Sheet.  M&T had total assets of $123.8 billion at June 30, 2016 and $124.6 billion at March 31, 2016, up from $97.1 billion at June 30, 2015. Loans and leases, net of unearned discount, totaled $88.5 billion at the recent quarter-end, up $20.4 billion or 30% from $68.1 billion at June 30, 2015 and up an annualized 3% from $87.9 billion at March 31, 2016.  During 2016's second quarter, loans to commercial customers grew $1.2 billion, while residential real estate loans, largely comprised of mortgage loans obtained in the Hudson City acquisition, declined $769 million.  As loans grew in the recent quarter, investment securities declined to $15.0 billion at June 30, 2016 from $15.5 billion at March 31, 2016.  Investment securities totaled $14.8 billion at June 30, 2015.  Total deposits rose to $94.7 billion at June 30, 2016 from $72.6 billion a year earlier and $94.2 billion at March 31, 2016.

Reflecting $3.1 billion of common equity issued in the acquisition of Hudson City, total shareholders' equity rose $3.8 billion or 30% to $16.5 billion at June 30, 2016 from $12.7 billion a year earlier, representing 13.30% and 13.05%, respectively, of total assets.  Common shareholders' equity was $15.2 billion, or $96.49 per share, at June 30, 2016, up from $11.4 billion, or $85.90 per share, at June 30, 2015 and $15.1 billion, or $95.00 per share, at March 31, 2016.  Tangible equity per common share rose 13% to $66.95 at the recent quarter-end from $59.39 a year earlier and was up 2% from $65.65 at March 31, 2016.  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 11.01% as of June 30, 2016

In accordance with its 2015 capital plan, M&T repurchased 1,319,487 shares of common stock during the recent quarter at an average cost per share of $116.71, for a total cost of $154 million.  In the aggregate, during the first six months of 2016, M&T repurchased 2,268,032 shares of common stock under that plan at an average cost per share of $111.99, for a total cost of $254 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second 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# 38736794. 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 Saturday, July 23, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 38736794.  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







Six months ended




Amounts in thousands,



June 30







June 30




 except per share



2016


2015


Change





2016


2015


Change




















Performance




































Net income


$

336,031


286,688


17

%


$

634,559


528,301


20

%

Net income available to common shareholders



312,974


263,481


19

%



588,707


482,313


22

%



















Per common share:


















  Basic earnings


$

1.98


1.99


-1

%


$

3.72


3.65


2

%

  Diluted earnings



1.98


1.98


-





3.71


3.63


2

%

  Cash dividends


$

.70


.70


-




$

1.40


1.40


-




















Common shares outstanding:


















  Average - diluted (1)



158,341


133,116


19

%



158,761


132,944


19

%

  Period end (2)



157,917


133,099


19

%



157,917


133,099


19

%



















Return on (annualized):


















  Average total assets



1.09

%

1.18

%






1.03

%

1.10

%



  Average common shareholders' equity



8.38

%

9.37

%






7.91

%

8.69

%





















Taxable-equivalent net interest income


$

870,341


689,148


26

%


$

1,748,637


1,354,574


29

%



















Yield on average earning assets



3.51

%

3.52

%






3.53

%

3.53

%



Cost of interest-bearing liabilities



.56

%

.55

%






.55

%

.56

%



Net interest spread



2.95

%

2.97

%






2.98

%

2.97

%



Contribution of interest-free funds



.18

%

.20

%






.17

%

.20

%



Net interest margin



3.13

%

3.17

%






3.15

%

3.17

%





















Net charge-offs to average total 


















  net loans (annualized)



.11

%

.13

%






.15

%

.17

%





















Net operating results (3)




































Net operating income


$

350,604


290,341


21

%


$

670,668


536,117


25

%

Diluted net operating earnings per common share



2.07


2.01


3

%



3.94


3.69


7

%

Return on (annualized):


















  Average tangible assets



1.18

%

1.24

%






1.14

%

1.16

%



  Average tangible common equity



12.68

%

13.76

%






12.15

%

12.85

%



Efficiency ratio



55.06

%

58.23

%






56.03

%

59.79

%




























































At  June 30













Loan quality



2016


2015


Change





























Nonaccrual loans


$

848,855


797,146


6

%









Real estate and other foreclosed assets



172,473


63,734


171

%









  Total nonperforming assets


$

1,021,328


860,880


19

%



























Accruing loans past due 90 days or more (4)


$

298,449


238,568


25

%



























Government guaranteed loans included in totals above:


















  Nonaccrual loans


$

52,486


58,259


-10

%









  Accruing loans past due 90 days or more



269,962


206,775


31

%



























Renegotiated loans


$

211,159


197,145


7

%



























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


$

68,591


78,591


-13

%


























Purchased impaired loans (6):


















  Outstanding customer balance


$

1,040,678


312,507


233

%









  Carrying amount



662,059


169,240


291

%



























Nonaccrual loans to total net loans



.96

%

1.17

%






























Allowance for credit losses to total loans



1.10

%

1.36

%












 

(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,




June 30,


March 31,



December 31,



September 30,


June 30,

 except per share




2016


2016



2015



2015


2015



















Performance




































Net income



$

336,031



298,528



270,965



280,401



286,688


Net income available to common shareholders




312,974



275,748



248,059



257,346



263,481




















Per common share:


















  Basic earnings



$

1.98



1.74



1.65



1.94



1.99


  Diluted earnings




1.98



1.73



1.65



1.93



1.98


  Cash dividends



$

.70



.70



.70



.70



.70




















Common shares outstanding:


















  Average - diluted (1)




158,341



159,181



150,718



133,376



133,116


  Period end (2)




157,917



159,156



159,600



133,311



133,099




















Return on (annualized):


















  Average total assets




1.09

%


.97

%


.93

%


1.13

%


1.18

%

  Average common shareholders' equity




8.38

%


7.44

%


7.22

%


8.93

%


9.37

%



















Taxable-equivalent net interest income



$

870,341



878,296



813,401



699,075



689,148




















Yield on average earning assets




3.51

%


3.54

%


3.48

%


3.48

%


3.52

%

Cost of interest-bearing liabilities




.56

%


.53

%


.54

%


.55

%


.55

%

Net interest spread




2.95

%


3.01

%


2.94

%


2.93

%


2.97

%

Contribution of interest-free funds




.18

%


.17

%


.18

%


.21

%


.20

%

Net interest margin




3.13

%


3.18

%


3.12

%


3.14

%


3.17

%



















Net charge-offs to average total 


















  net loans (annualized)




.11

%


.19

%


.18

%


.24

%


.13

%



















Net operating results (3)




































Net operating income 



$

350,604



320,064



337,613



282,907



290,341


Diluted net operating earnings per common share




2.07



1.87



2.09



1.95



2.01


Return on (annualized):


















  Average tangible assets




1.18

%


1.09

%


1.21

%


1.18

%


1.24

%

  Average tangible common equity




12.68

%


11.62

%


13.26

%


12.98

%


13.76

%

Efficiency ratio




55.06

%


57.00

%


55.53

%


57.05

%


58.23

%

































































June 30,


March 31,


December 31,


September 30,


June 30,

Loan quality




2016


2016


2015


2015


2015



















Nonaccrual loans



$

848,855



876,691



799,409



787,098



797,146


Real estate and other foreclosed assets




172,473



188,004



195,085



66,144



63,734


  Total nonperforming assets



$

1,021,328



1,064,695



994,494



853,242



860,880




















Accruing loans past due 90 days or more (4)



$

298,449



336,170



317,441



231,465



238,568




















Government guaranteed loans included in totals above:


















  Nonaccrual loans



$

52,486



49,688



47,052



48,955



58,259


  Accruing loans past due 90 days or more




269,962



279,340



276,285



193,998



206,775




















Renegotiated loans



$

211,159



200,771



182,865



189,639



197,145




















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



$

68,591



61,767



68,473



80,827



78,591




















Purchased impaired loans (6):


















  Outstanding customer balance



$

1,040,678



1,124,776



1,204,004



278,979



312,507


  Carrying amount




662,059



715,874



768,329



149,421



169,240




















Nonaccrual loans to total net loans




.96

%


1.00

%


.91

%


1.15

%


1.17

%



















Allowance for credit losses to total loans




1.10

%


1.10

%


1.09

%


1.36

%


1.36

%

 

(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






Six months ended






June 30






June 30




Dollars in thousands


2016


2015


Change




2016


2015


Change


















Interest income

$

970,621


760,354


28

%


$

1,943,455


1,498,441


30

%

Interest expense


106,802


77,226


38




207,672


155,725


33


















Net interest income


863,819


683,128


26




1,735,783


1,342,716


29


















Provision for credit losses


32,000


30,000


7




81,000


68,000


19


















Net interest income after
















   provision for credit losses


831,819


653,128


27




1,654,783


1,274,716


30


















Other income
















     Mortgage banking revenues


89,383


102,602


-13




171,446


204,203


-16


     Service charges on deposit accounts


103,872


105,257


-1




206,277


207,601


-1


     Trust income


120,450


118,598


2




231,527


242,332


-4


     Brokerage services income


16,272


16,861


-3




32,276


32,322


-


     Trading account and foreign exchange gains


13,222


6,046


119




20,680


12,277


68


     Gain (loss) on bank investment securities


264


(10)


-




268


(108)


-


     Other revenues from operations


104,791


147,673


-29




206,713


238,603


-13


          Total other income


448,254


497,027


-10




869,187


937,230


-7


















Other expense
















     Salaries and employee benefits


398,675


361,657


10




830,460


751,550


10


     Equipment and net occupancy


75,724


66,852


13




149,902


133,322


12


     Printing, postage and supplies


9,907


9,305


6




21,893


18,895


16


     Amortization of core deposit and other 
















        intangible assets


11,418


5,965


91




23,737


12,758


86


     FDIC assessments


22,370


10,801


107




47,595


21,461


122


     Other costs of operations


231,801


242,048


-4




452,403


445,017


2


          Total other expense


749,895


696,628


8




1,525,990


1,383,003


10


















Income before income taxes


530,178


453,527


17




997,980


828,943


20


















Applicable income taxes


194,147


166,839


16




363,421


300,642


21


















Net income

$

336,031


286,688


17

%


$

634,559


528,301


20

%

 

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend



















Three months ended




June 30,


March 31,


December 31,


September 30,


June 30,

Dollars in thousands


2016


2016


2015


2015


2015

















Interest income

$

970,621



972,834



902,377



770,026



760,354


Interest expense


106,802



100,870



95,333



77,199



77,226


















Net interest income


863,819



871,964



807,044



692,827



683,128


















Provision for credit losses


32,000



49,000



58,000



44,000



30,000


















Net interest income after
















   provision for credit losses


831,819



822,964



749,044



648,827



653,128


















Other income
















     Mortgage banking revenues


89,383



82,063



87,500



84,035



102,602


     Service charges on deposit accounts


103,872



102,405



105,748



107,259



105,257


     Trust income


120,450



111,077



114,564



113,744



118,598


     Brokerage services income


16,272



16,004



15,546



16,902



16,861


     Trading account and foreign exchange gains


13,222



7,458



9,938



8,362



6,046


     Gain (loss) on bank investment securities


264



4



(22)



-



(10)


     Other revenues from operations


104,791



101,922



114,834



109,397



147,673


          Total other income


448,254



420,933



448,108



439,699



497,027


















Other expense
















     Salaries and employee benefits


398,675



431,785



434,413



363,567



361,657


     Equipment and net occupancy


75,724



74,178



70,747



68,470



66,852


     Printing, postage and supplies


9,907



11,986



10,905



8,691



9,305


     Amortization of core deposit and other 
















        intangible assets


11,418



12,319



9,576



4,090



5,965


     FDIC assessments


22,370



25,225



19,562



11,090



10,801


     Other costs of operations


231,801



220,602



240,910



197,908



242,048


          Total other expense


749,895



776,095



786,113



653,816



696,628


















Income before income taxes


530,178



467,802



411,039



434,710



453,527


















Applicable income taxes


194,147



169,274



140,074



154,309



166,839


















Net income

$

336,031



298,528



270,965



280,401



286,688


 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet













June 30




Dollars in thousands



2016


2015


Change











ASSETS


















Cash and due from banks


$

1,284,442


1,347,858


-5

%










Interest-bearing deposits at banks



8,474,839


4,045,852


109











Federal funds sold



-


3,000


-100











Trading account assets



506,131


277,009


83











Investment securities



14,963,084


14,751,637


1











Loans and leases:


















   Commercial, financial, etc. 



21,469,242


20,111,028


7


   Real estate - commercial



30,711,230


28,442,488


8


   Real estate - consumer



24,530,249


8,444,542


190


   Consumer



11,811,277


11,133,194


6


     Total loans and leases, net of unearned discount



88,521,998


68,131,252


30


        Less: allowance for credit losses



970,496


929,987


4











  Net loans and leases



87,551,502


67,201,265


30











Goodwill



4,593,112


3,513,325


31











Core deposit and other intangible assets



116,531


22,269


423











Other assets



6,330,943


5,917,861


7











  Total assets


$

123,820,584


97,080,076


28

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits


$

30,700,066


27,674,588


11

%










Interest-bearing deposits



63,756,514


44,787,590


42











Deposits at Cayman Islands office



193,523


167,441


16











  Total deposits



94,650,103


72,629,619


30











Short-term borrowings



407,123


153,299


166











Accrued interest and other liabilities



1,963,093


1,453,249


35











Long-term borrowings



10,328,751


10,175,912


2











  Total liabilities



107,349,070


84,412,079


27











Shareholders' equity:


















   Preferred



1,231,500


1,231,500


-


   Common (1) 



15,240,014


11,436,497


33











     Total shareholders' equity



16,471,514


12,667,997


30











  Total liabilities and shareholders' equity


$

123,820,584


97,080,076


28

%

 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $101.0 million at June 30, 2016 and $217.5 million at June 30, 2015.

 

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend









June 30,


March 31,


December 31,


September 30,


June 30,

Dollars in thousands



2016


2016


2015


2015


2015


















ASSETS


































Cash and due from banks


$

1,284,442



1,178,175



1,368,040



1,249,704



1,347,858



















Interest-bearing deposits at banks



8,474,839



9,545,181



7,594,350



4,713,266



4,045,852



















Federal funds sold



-



-



-



-



3,000



















Trading account assets



506,131



467,987



273,783



340,710



277,009



















Investment securities



14,963,084



15,467,320



15,656,439



14,494,539



14,751,637



















Loans and leases:


































   Commercial, financial, etc. 



21,469,242



21,226,577



20,422,338



20,233,177



20,111,028


   Real estate - commercial



30,711,230



29,713,293



29,197,311



28,720,537



28,442,488


   Real estate - consumer



24,530,249



25,299,638



26,270,103



8,211,062



8,444,542


   Consumer



11,811,277



11,632,958



11,599,747



11,375,472



11,133,194


     Total loans and leases, net of unearned discount



88,521,998



87,872,466



87,489,499



68,540,248



68,131,252


        Less: allowance for credit losses



970,496



962,752



955,992



933,798



929,987



















  Net loans and leases



87,551,502



86,909,714



86,533,507



67,606,450



67,201,265



















Goodwill



4,593,112



4,593,112



4,593,112



3,513,325



3,513,325



















Core deposit and other intangible assets



116,531



127,949



140,268



18,179



22,269



















Other assets



6,330,943



6,336,194



6,628,385



5,860,889



5,917,861



















  Total assets


$

123,820,584



124,625,632



122,787,884



97,797,062



97,080,076




































LIABILITIES AND SHAREHOLDERS' EQUITY


































Noninterest-bearing deposits


$

30,700,066



29,709,218



29,110,635



28,189,330



27,674,588



















Interest-bearing deposits



63,756,514



64,338,571



62,677,036



44,549,028



44,787,590



















Deposits at Cayman Islands office



193,523



166,787



170,170



206,185



167,441



















  Total deposits



94,650,103



94,214,576



91,957,841



72,944,543



72,629,619



















Short-term borrowings



407,123



1,766,826



2,132,182



173,783



153,299



















Accrued interest and other liabilities



1,963,093



1,948,142



1,870,714



1,582,513



1,453,249



















Long-term borrowings



10,328,751



10,341,035



10,653,858



10,174,289



10,175,912



















  Total liabilities



107,349,070



108,270,579



106,614,595



84,875,128



84,412,079



















Shareholders' equity:


































   Preferred



1,231,500



1,231,500



1,231,500



1,231,500



1,231,500


   Common (1) 



15,240,014



15,123,553



14,941,789



11,690,434



11,436,497



















     Total shareholders' equity



16,471,514



16,355,053



16,173,289



12,921,934



12,667,997



















  Total liabilities and shareholders' equity


$

123,820,584



124,625,632



122,787,884



97,797,062



97,080,076


 

(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $101.0 million at June 30, 2016, $150.2 million at March 31, 2016, $251.6 million at December 31, 2015, $163.5 million at September 30, 2015 and $217.5 million at June 30, 2015.

 

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

 and Annualized Taxable-equivalent Rates































Three months ended


Change in balance



Six months ended







June 30,


June 30,


March 31,


June 30, 2016 from



June 30




Dollars in millions



2016


2015


2016


June 30,


March 31,



2016


2015


Change in





Balance

Rate


Balance

Rate


Balance

Rate


2015


2016



Balance

Rate


Balance 

Rate


balance


ASSETS






















































Interest-bearing deposits at banks


$

8,711

.51

%

5,326

.25

%

8,193

.51

%

64

%


6

%


$

8,452

.51

%

5,200

.25

%

63

%




























Federal funds sold



-

-


39

.10


1

.77


-100



-100




-

-


68

.10


-100





























Trading account assets



92

1.58


103

.92


85

1.78


-11



8




88

1.68


91

1.76


-3





























Investment securities



14,914

2.49


14,195

2.68


15,348

2.60


5



-3




15,131

2.55


13,787

2.67


10





























Loans and leases, net of unearned discount



























  Commercial, financial, etc. 



21,450

3.47


19,973

3.18


20,717

3.39


7



4




21,083

3.43


19,717

3.19


7


  Real estate - commercial



30,134

4.09


28,208

4.19


29,426

4.16


7



2




29,780

4.12


27,904

4.18


7


  Real estate - consumer



24,858

3.94


8,447

4.19


25,859

3.93


194



-4




25,359

3.94


8,509

4.17


198


  Consumer



11,713

4.55


11,042

4.46


11,582

4.55


6



1




11,648

4.55


11,002

4.48


6


     Total loans and leases, net



88,155

3.99


67,670

3.96


87,584

3.99


30



1




87,870

3.99


67,132

3.97


31





























  Total earning assets



111,872

3.51


87,333

3.52


111,211

3.54


28



1




111,541

3.53


86,278

3.53


29





























Goodwill



4,593



3,514



4,593



31






4,593



3,520



31





























Core deposit and other intangible assets



122



25



134



388



-9




128



28



354





























Other assets



7,119



6,726



7,314



6



-3




7,217



6,924



4





























  Total assets


$

123,706



97,598



123,252



27

%


%


$

123,479



96,750



28

%


















































































LIABILITIES AND SHAREHOLDERS' EQUITY






















































Interest-bearing deposits



























  Interest-checking deposits


$

1,332

.12


1,333

.11


1,359

.12


%


-2

%


$

1,345

.12


1,228

.11


10

%

  Savings deposits



50,515

.16


41,712

.10


48,976

.13


21



3




49,746

.15


41,619

.10


20


  Time deposits



12,755

.85


2,948

.50


12,999

.75


333



-2




12,877

.80


2,982

.50


332


  Deposits at Cayman Islands office



182

.40


212

.28


187

.42


-14



-3




185

.41


218

.27


-15


     Total interest-bearing deposits



64,784

.30


46,205

.13


63,521

.26


40



2




64,153

.28


46,047

.13


39





























Short-term borrowings



1,078

.43


195

.07


2,082

.42


452



-48




1,579

.42


196

.07


707


Long-term borrowings



10,297

2.27


10,164

2.47


10,528

2.21


1



-2




10,413

2.24


10,000

2.55


4





























Total interest-bearing liabilities



76,159

.56


56,564

.55


76,131

.53


35






76,145

.55


56,243

.56


35





























Noninterest-bearing deposits



29,249



26,753



28,870



9



1




29,059



26,285



11





























Other liabilities



1,921



1,645



1,972



17



-3




1,947



1,674



16





























  Total liabilities



107,329



84,962



106,973



26






107,151



84,202



27





























Shareholders' equity



16,377



12,636



16,279



30



1




16,328



12,548



30





























  Total liabilities and shareholders' equity


$

123,706



97,598



123,252



27

%


%


$

123,479



96,750



28

%























































Net interest spread




2.95



2.97



3.01










2.98



2.97




Contribution of interest-free funds




.18



.20



.17










.17



.20




Net interest margin 




3.13

%


3.17

%


3.18

%









3.15

%


3.17

%


 

 

M&T BANK CORPORATION


Reconciliation of Quarterly GAAP to Non-GAAP Measures
































Three months ended



Six months ended






June 30



June 30






2016


2015



2016


2015


Income statement data













In thousands, except per share













Net income













Net income



$

336,031


286,688


$

634,559


528,301


Amortization of core deposit and other













  intangible assets (1)




6,936


3,653



14,424


7,816


Merger-related expenses (1)




7,637


-



21,685


-


  Net operating income



$

350,604


290,341


$

670,668


536,117


Earnings per common share













Diluted earnings per common share



$

1.98


1.98


$

3.71


3.63


Amortization of core deposit and other













  intangible assets (1)




.04


.03



.09


.06


Merger-related expenses (1)




.05


-



.14


-


  Diluted net operating earnings per common share

$

2.07


2.01


$

3.94


3.69


Other expense













Other expense



$

749,895


696,628


$

1,525,990


1,383,003


Amortization of core deposit and other













  intangible assets




(11,418)


(5,965)



(23,737)


(12,758)


Merger-related expenses




(12,593)


-



(35,755)


-


  Noninterest operating expense



$

725,884


690,663


$

1,466,498


1,370,245


Merger-related expenses













Salaries and employee benefits



$

60


-


$

5,334


-


Equipment and net occupancy




339


-



1,278


-


Printing, postage and supplies




545


-



1,482


-


Other costs of operations




11,649


-



27,661


-


  Total



$

12,593


-


$

35,755


-


Efficiency ratio













Noninterest operating expense (numerator)



$

725,884


690,663


$

1,466,498


1,370,245


Taxable-equivalent net interest income




870,341


689,148



1,748,637


1,354,574


Other income




448,254


497,027



869,187


937,230


Less:  Gain (loss) on bank investment securities


264


(10)



268


(108)


Denominator



$

1,318,331


1,186,185


$

2,617,556


2,291,912


Efficiency ratio




55.06

%

58.23

%


56.03

%

59.79

%



























Balance sheet data













In millions













Average assets













Average assets



$

123,706


97,598


$

123,479


96,750


Goodwill




(4,593)


(3,514)



(4,593)


(3,520)


Core deposit and other intangible assets




(122)


(25)



(128)


(28)


Deferred taxes




48


8



50


9


  Average tangible assets



$

119,039


94,067


$

118,808


93,211


Average common equity













Average total equity



$

16,377


12,636


$

16,328


12,548


Preferred stock




(1,232)


(1,232)



(1,232)


(1,232)


  Average common equity




15,145


11,404



15,096


11,316


Goodwill




(4,593)


(3,514)



(4,593)


(3,520)


Core deposit and other intangible assets




(122)


(25)



(128)


(28)


Deferred taxes




48


8



50


9


  Average tangible common equity



$

10,478


7,873


$

10,425


7,777















At end of quarter













Total assets













Total assets



$

123,821


97,080







Goodwill




(4,593)


(3,513)







Core deposit and other intangible assets




(117)


(22)







Deferred taxes




46


7







  Total tangible assets



$

119,157


93,552







Total common equity













Total equity



$

16,472


12,668







Preferred stock




(1,232)


(1,232)







Undeclared dividends - cumulative preferred stock



(3)


(3)







  Common equity, net of undeclared cumulative













    preferred dividends




15,237


11,433







Goodwill




(4,593)


(3,513)







Core deposit and other intangible assets




(117)


(22)







Deferred taxes




46


7







  Total tangible common equity



$

10,573


7,905







 

(1) After any related tax effect.

 

 

M&T BANK CORPORATION


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












































Three months ended





June 30,


March 31,


December 31,


September 30,


June 30,





2016


2016


2015


2015


2015


Income statement data













In thousands, except per share













Net income













Net income


$

336,031


298,528


270,965


280,401


286,688


Amortization of core deposit and other













  intangible assets (1)



6,936


7,488


5,828


2,506


3,653


Merger-related expenses (1)



7,637


14,048


60,820


-


-


  Net operating income


$

350,604


320,064


337,613


282,907


290,341


Earnings per common share













Diluted earnings per common share


$

1.98


1.73


1.65


1.93


1.98


Amortization of core deposit and other













  intangible assets (1)



.04


.05


.04


.02


.03


Merger-related expenses (1)



.05


.09


.40


-


-


  Diluted net operating earnings per common share

$

2.07


1.87


2.09


1.95


2.01


Other expense













Other expense


$

749,895


776,095


786,113


653,816


696,628


Amortization of core deposit and other













  intangible assets



(11,418)


(12,319)


(9,576)


(4,090)


(5,965)


Merger-related expenses



(12,593)


(23,162)


(75,976)


-


-


  Noninterest operating expense


$

725,884


740,614


700,561


649,726


690,663


Merger-related expenses













Salaries and employee benefits


$

60


5,274


51,287


-


-


Equipment and net occupancy



339


939


3


-


-


Printing, postage and supplies



545


937


504


-


-


Other costs of operations



11,649


16,012


24,182


-


-


  Other expense



12,593


23,162


75,976


-


-


Provision for credit losses



-


-


21,000


-


-


  Total


$

12,593


23,162


96,976


-


-


Efficiency ratio













Noninterest operating expense (numerator)


$

725,884


740,614


700,561


649,726


690,663


Taxable-equivalent net interest income



870,341


878,296


813,401


699,075


689,148


Other income



448,254


420,933


448,108


439,699


497,027


Less:  Gain (loss) on bank investment securities



264


4


(22)


-


(10)


Denominator


$

1,318,331


1,299,225


1,261,531


1,138,774


1,186,185


Efficiency ratio



55.06

%

57.00

%

55.53

%

57.05

%

58.23

%



























Balance sheet data













In millions













Average assets













Average assets


$

123,706


123,252


115,052


98,515


97,598


Goodwill



(4,593)


(4,593)


(4,218)


(3,513)


(3,514)


Core deposit and other intangible assets



(122)


(134)


(101)


(20)


(25)


Deferred taxes



48


52


39


7


8


  Average tangible assets


$

119,039


118,577


110,772


94,989


94,067


Average common equity













Average total equity


$

16,377


16,279


15,007


12,787


12,636


Preferred stock



(1,232)


(1,232)


(1,232)


(1,232)


(1,232)


  Average common equity



15,145


15,047


13,775


11,555


11,404


Goodwill



(4,593)


(4,593)


(4,218)


(3,513)


(3,514)


Core deposit and other intangible assets



(122)


(134)


(101)


(20)


(25)


Deferred taxes



48


52


39


7


8


  Average tangible common equity


$

10,478


10,372


9,495


8,029


7,873















At end of quarter













Total assets













Total assets


$

123,821


124,626


122,788


97,797


97,080


Goodwill



(4,593)


(4,593)


(4,593)


(3,513)


(3,513)


Core deposit and other intangible assets



(117)


(128)


(140)


(18)


(22)


Deferred taxes



46


50


54


6


7


  Total tangible assets


$

119,157


119,955


118,109


94,272


93,552


Total common equity













Total equity


$

16,472


16,355


16,173


12,922


12,668


Preferred stock



(1,232)


(1,232)


(1,232)


(1,232)


(1,232)


Undeclared dividends - cumulative preferred stock



(3)


(3)


(2)


(3)


(3)


  Common equity, net of undeclared cumulative













    preferred dividends



15,237


15,120


14,939


11,687


11,433


Goodwill



(4,593)


(4,593)


(4,593)


(3,513)


(3,513)


Core deposit and other intangible assets



(117)


(128)


(140)


(18)


(22)


Deferred taxes



46


50


54


6


7


  Total tangible common equity


$

10,573


10,449


10,260


8,162


7,905


 

(1) After any related tax effect.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mt-bank-corporation-announces-second-quarter-results-300301281.html

SOURCE M&T Bank Corporation

News Provided by Acquire Media

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