M&T Bank Corporation
M&T BANK CORP (Form: 8-K, Received: 07/19/2017 09:01:58)

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 19, 2017

 

M&T BANK CORPORATION

(Exact name of registrant as specified in its charter)

 

New York

(State or other jurisdiction of incorporation)

 

1-9861

 

16-0968385

(Commission File Number)

 

(I.R.S. Employer Identification No.)

 

 

One M&T Plaza, Buffalo, New York

 

14203

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (716) 635-4000

(NOT APPLICABLE)

(Former name or former address, if changed since last report)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

Item 2.02.

Results of Operations and Financial Condition.

On July 19, 2017, M&T Bank Corporation announced its results of operations for the quarter ended June 30, 2017. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99.1 hereto.

The information in this Form 8-K, including Exhibit 99.1 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of  M&T Bank Corporation under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

 

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

No.

  

Exhibit Description

 

 

 

99.1

  

News Release dated July19, 2017.

 

 

 

2


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

M&T BANK CORPORATION

 

 

Date:  July 19, 2017

 

By:

 

/s/ Darren J. King

 

 

 

 

Darren J. King

 

 

 

 

Executive Vice President and Chief Financial Officer

 

3


 

EXHIBIT INDEX

 

Exhibit

No.

  

Exhibit Description

 

 

 

99.1

  

News Release dated July 19, 2017.  Filed herewith.

 

 

 

4

 

 

Exhibit 99.1

 

INVESTOR CONTACT:

 

Donald J. MacLeod

 

FOR IMMEDIATE RELEASE:

 

 

(716) 842-5138

 

July 19, 2017

 

 

 

 

 

MEDIA CONTACT:

 

C. Michael Zabel

 

 

 

 

(716) 842-5385

 

 

 

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

 

BUFFALO, NEW YORK -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2017.

 

GAAP Results of Operations.   Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2017 were $2.35, up 19% from $1.98 in the year-earlier period and 11% higher than $2.12 in the first quarter of 2017.  GAAP-basis net income in the recently completed quarter totaled $381 million, a 13% rise from $336 million in the corresponding 2016 quarter and 9% above the $349 million recorded in the initial 2017 quarter.  GAAP-basis net income for the second quarter of 2017 expressed as an annualized rate of return on average assets and average common shareholders’ equity was 1.27% and 9.67%, respectively, compared with 1.09% and 8.38%, respectively, in the year-earlier quarter and 1.15% and 8.89%, respectively, in the first quarter of 2017.

 

Commenting on the recent quarter’s performance, Darren J. King, Executive Vice President and Chief Financial Officer, stated, “Financial results for M&T in the second quarter were highlighted by a continued widening of the net interest margin, which rose 11 basis points from the previous quarter to 3.45%.  Also contributing to the strong performance were increased trust income and well-controlled expenses that were in line with our expectations. As has been the case for some time, credit quality continued to be solid as net charge-offs were modest and nonaccrual loans decreased.”

 

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 2Q17 vs.

 

($ in millions, except per share data)

 

2Q17

 

 

2Q16

 

 

1Q17

 

 

2Q16

 

 

1Q17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

381

 

 

$

336

 

 

$

349

 

 

 

13

%

 

 

9

%

Net income available to common shareholders - diluted

 

$

361

 

 

$

313

 

 

$

329

 

 

 

15

%

 

 

10

%

Diluted earnings per common share

 

$

2.35

 

 

$

1.98

 

 

$

2.12

 

 

 

19

%

 

 

11

%

Annualized return on average assets

 

 

1.27

%

 

 

1.09

%

 

 

1.15

%

 

 

 

 

 

 

 

 

Annualized return on average common equity

 

 

9.67

%

 

 

8.38

%

 

 

8.89

%

 

 

 

 

 

 

 

 

    

- more -


2-2-2-2-2

M&T BANK CORPORATION

 

For the six-month period ended June 30, 2017, diluted earnings per common share were $4.47, up 20% from $3.71 in the year-earlier period.  GAAP-basis net income for the first six months of 2017 totaled $730 million, or 15% higher than $635 million in the similar 2016 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, 2017 was 1. 21% and 9.28%, respectively, compared with 1.03% and 7.91%, respectively, in the corresponding 2016 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 $2.38 in the recent quarter, up from $2.07 and $2.15 in the year-earlier quarter and the first quarter of 2017, respectively. Net operating income rose to $386 million in the second quarter of 2017, 10% higher than $351 million in the second quarter of 2016 and 9% above $354 million in the initial 2017 quarter. Expressed as an annualized rate of return on average tangible assets and    

average tangible common shareholders' equity, net operating income was 1.33% and 14.18%, respectively, in the second quarter of 2017, compared with 1.18% and 12.68%, respectively, in the year-earlier quarter and 1.21% and 13.05%, respectively, in the first three months of 2017.

 

Diluted net operating earnings per common share in the first six months of 2017 increased 15% to $4.53 from $3.94 in the first half of 2016.  Net operating income during the six-month period ended June 30, 2017 was $740 million, a rise of 10% from $671 million in the similar 2016 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.27% and 13.61%, respectively, in the first half of 2017, compared with 1.14% and 12.15%, respectively, in the first six months of 2016.

 

Taxable-equivalent Net Interest Income.   Net interest income expressed on a taxable-equivalent basis totaled $947 million in the second quarter of 2017, an increase of $77 million, or 9%, from $870 million in the year-earlier quarter.  That improvement resulted predominantly from a widening of the net interest margin to 3.45% in the recent quarter from 3.13% in the second quarter of 2016. Taxable-equivalent net interest income in the recent quarter rose 3% from

- more -


3-3-3-3-3

M&T BANK CORPORATION

 

$922 million in the initial 2017 quarter.  That growth was primarily due to an 11 basis point widening of the net interest margin from 3.34% in the first quarter of 2017.

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable-equivalent Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 2Q17 vs.

 

($ in millions)

 

2Q17

 

 

2Q16

 

 

1Q17

 

 

2Q16

 

 

1Q17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

109,987

 

 

$

111,872

 

 

$

112,008

 

 

 

-2

%

 

 

-2

%

Net interest income - taxable-equivalent

 

$

947

 

 

$

870

 

 

$

922

 

 

 

9

%

 

 

3

%

Net interest margin

 

 

3.45

%

 

 

3.13

%

 

 

3.34

%

 

 

 

 

 

 

 

 

 

Provision for Credit Losses/Asset Quality.   The provision for credit losses was $52 million in the second quarter of 2017, compared with $32 million in the year-earlier quarter and $55 million in the first quarter of 2017.  Net charge-offs of loans were $45 million during the recent quarter, compared with $24 million in the second quarter of 2016 and $43 million in the initial 2017 quarter.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .11% in the second quarters of 2017 and 2016, respectively, and .19% in the first quarter of 2017.

 

Loans classified as nonaccrual totaled $872 million, or .98% of total loans outstanding at June 30, 2017, compared with $927 million or 1.04% at March 31, 2017 and $849 million or .96% at June 30, 2016. The decline in nonaccrual loans from March 31, 2017 to the recent quarter-end reflects the combined effect of borrower repayment performance and charge-offs of loans in nonaccrual status. The higher level of nonaccrual loans at the two most recent quarter-ends as compared with June 30, 2016 reflects the migration of previously performing loans obtained in the acquisition of Hudson City Bancorp, Inc. (“Hudson City”) that became over 90 days past due after June 30, 2016.  Nonaccrual Hudson City-related residential real estate loans totaled $211 million, $113 million and $207 million at June 30, 2017, June 30, 2016 and March 31, 2017, respectively.  Assets taken in foreclosure of defaulted loans were $105 million at June 30, 2017, compared with $172 million at June 30, 2016 and $119 million at March 31, 2017.

 

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 $1.01 billion at June 30, 2017, compared with $970 million and $1.00 billion at June 30, 2016 and March 31, 2017, respectively.  The allowance expressed as a percentage of outstanding loans was 1.13% at June 30, 2017, compared with 1.10% at June 30, 2016 and 1.12% at March 31, 2017.  

 

- more -


4-4-4-4-4

M&T BANK CORPORATION

 

Asset Quality Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 2Q17 vs.

 

($ in millions)

 

2Q17

 

 

2Q16

 

 

1Q17

 

 

2Q16

 

 

1Q17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At end of quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

872

 

 

$

849

 

 

$

927

 

 

 

3

%

 

 

-6

%

Real estate and other foreclosed assets

 

$

105

 

 

$

172

 

 

$

119

 

 

 

-39

%

 

 

-12

%

Total nonperforming assets

 

$

977

 

 

$

1,021

 

 

$

1,046

 

 

 

-4

%

 

 

-7

%

Accruing loans past due 90 days or more (1)

 

$

265

 

 

$

298

 

 

$

280

 

 

 

-11

%

 

 

-5

%

Nonaccrual loans as % of loans outstanding

 

 

.98

%

 

 

.96

%

 

 

1.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

1,008

 

 

$

970

 

 

$

1,001

 

 

 

4

%

 

 

1

%

Allowance for credit losses as % of loans outstanding

 

 

1.13

%

 

 

1.10

%

 

 

1.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

$

52

 

 

$

32

 

 

$

55

 

 

 

63

%

 

 

-5

%

Net charge-offs

 

$

45

 

 

$

24

 

 

$

43

 

 

 

86

%

 

 

6

%

Net charge-offs as % of average loans (annualized)

 

 

.20

%

 

 

.11

%

 

 

.19

%

 

 

 

 

 

 

 

 

 

(1)

Excludes loans acquired at a discount.  Predominantly residential real estate loans.

 

Noninterest Income and Expense.   Noninterest income totaled $461 million in the second quarter of 2017, compared with $448 million in the year-earlier quarter and $447 million in the initial quarter of 2017.  The rise in noninterest income in the recent quarter as compared with the earlier quarters reflected higher trust income. An increase in credit-related fees also contributed to the improvement as compared with the year-earlier quarter.

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 2Q17 vs.

 

($ in millions)

 

2Q17

 

 

2Q16

 

 

1Q17

 

 

2Q16

 

 

1Q17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking revenues

 

$

86

 

 

$

89

 

 

$

85

 

 

 

-4

%

 

 

2

%

Service charges on deposit accounts

 

 

106

 

 

 

104

 

 

 

104

 

 

 

2

%

 

 

2

%

Trust income

 

 

127

 

 

 

121

 

 

 

120

 

 

 

5

%

 

 

6

%

Brokerage services income

 

 

17

 

 

 

16

 

 

 

17

 

 

 

2

%

 

 

-4

%

Trading account and foreign exchange gains

 

 

8

 

 

 

13

 

 

 

10

 

 

 

-39

%

 

 

-17

%

Other revenues from operations

 

 

117

 

 

 

105

 

 

 

111

 

 

 

12

%

 

 

6

%

Total other income

 

$

461

 

 

$

448

 

 

$

447

 

 

 

3

%

 

 

3

%

 

Noninterest expense in the second quarter of 2017 totaled $751 million, compared with $750 million in the year-earlier quarter and $788 million in the initial 2017 quarter.  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 $743 million in the recent quarter, $726 million in the second quarter of 2016 and $779 million in the first quarter of 2017.  The most significant factors for the higher level of operating expenses in the recent quarter as compared with the second quarter of 2016 were increased legal costs, FDIC assessments, and outside data processing and software expenses.  As compared with the first quarter of 2017, the recent quarter's lower level of operating expenses was

- more -


5-5-5-5-5

M&T BANK CORPORATION

 

due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2017 period.  That decline was partially offset by higher legal and other professional services costs in 2017’s second quarter.

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change 2Q17 vs.

 

($ in millions)

 

2Q17

 

 

2Q16

 

 

1Q17

 

 

2Q16

 

 

1Q17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

399

 

 

$

399

 

 

$

450

 

 

 

 

 

 

-11

%

Equipment and net occupancy

 

 

74

 

 

 

76

 

 

 

74

 

 

 

-3

%

 

 

-1

%

Outside data processing and software

 

 

45

 

 

 

43

 

 

 

44

 

 

 

5

%

 

 

1

%

FDIC assessments

 

 

25

 

 

 

22

 

 

 

29

 

 

 

13

%

 

 

-12

%

Advertising and marketing

 

 

16

 

 

 

23

 

 

 

16

 

 

 

-28

%

 

 

1

%

Printing, postage and supplies

 

 

9

 

 

 

10

 

 

 

10

 

 

 

-10

%

 

 

-8

%

Amortization of core deposit and other intangible assets

 

 

8

 

 

 

11

 

 

 

9

 

 

 

-29

%

 

 

-4

%

Other costs of operations

 

 

175

 

 

 

166

 

 

 

156

 

 

 

5

%

 

 

12

%

Total other expense

 

$

751

 

 

$

750

 

 

$

788

 

 

 

 

 

 

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo: Merger-related expenses included in above

 

 

 

 

$

13

 

 

 

 

 

 

-100

%

 

 

 

 

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 52.7% in the recent quarter from 55.1% in the second quarter of 2016 and 56.9% in the first quarter of 2017.

 

Balance Sheet.   M&T had total assets of $120.9 billion at June 30, 2017, compared with $123.8 billion at June 30, 2016 and $123.2 billion at March 31, 2017. Loans and leases, net of unearned discount, totaled $89.1 billion at the recent quarter-end, modestly changed from $88.5 billion at June 30, 2016 and $89.3 billion at March 31, 2017.  Investment securities were $15.8 billion, $15.0 billion and $16.0 billion at June 30, 2017, June 30, 2016, and March 31, 2017, respectively.  Total deposits were $93.5 billion at June 30, 2017, compared with $94.7 billion a year earlier and $97.0 billion at March 31, 2017.

 

Reflecting the impact of repurchases of M&T’s common stock, total shareholders' equity declined to $16.3 billion at June 30, 2017 from $16.5 billion a year earlier, representing 13.47% and 13.30%, respectively, of total assets. Total shareholders’ equity was $16.2 billion, or 13.16% of total assets, at March 31, 2017. Common shareholders' equity was $15.1 billion, or $98.66 per share, at June 30, 2017, compared with $15.2 billion, or $96.49 per share, at June 30, 2016 and $15.0 billion, or $97.40 per share, at March 31, 2017.  Tangible equity per common share rose to $68.20 at the recent quarter-end from $66.95 a year earlier and $67.16 at March 31, 2017.  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.  

- more -


6-6-6-6-6

M&T BANK CORPORATION

 

M&T estimates that the ratio of Common Equity Tier 1 t o risk-weighted assets under regulatory capital rules was approximately 10.80% as of June 30, 2017.  

 

In accordance with its 2016 capital plan, M&T repurchased 1,409,807 shares of common stock during the recent quarter at an average cost per share of $159.52, for a total cost of $225 million.  In the aggregate, during the first six months of 2017, M&T repurchased 4,643,003 shares of common stock under that plan at a total cost of $757 million.

 

Conference Call.   Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 10:00 a.m. Eastern Time.  Those wishing to participate in the call may dial (877)780-2276.  International participants, using any applicable international calling codes, may dial (973)582-2700.  Callers should reference M&T Bank Corporation or the conference ID# 40703727. 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 Wednesday, July 26, 2017 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 40703727.  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

- more -


7-7-7-7-7

M&T BANK CORPORATION

 

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/financ ial 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 realiz ation 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.

- more -


8-8-8-8-8

M&T BANK CORPORATION

 

Financial Highlights

 

 

 

Three months ended

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

June 30

 

 

 

 

 

 

June 30

 

 

 

 

 

Amounts in thousands, except per share

 

2017

 

 

2016

 

 

Change

 

 

2017

 

 

2016

 

 

Change

 

Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

381,053

 

 

 

336,031

 

 

 

13

%

 

$

729,980

 

 

 

634,559

 

 

 

15

%

Net income available to common shareholders

 

 

360,662

 

 

 

312,974

 

 

 

15

%

 

 

689,217

 

 

 

588,707

 

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

2.36

 

 

 

1.98

 

 

 

19

%

 

$

4.49

 

 

 

3.72

 

 

 

21

%

Diluted earnings

 

 

2.35

 

 

 

1.98

 

 

 

19

%

 

 

4.47

 

 

 

3.71

 

 

 

20

%

Cash dividends

 

$

.75

 

 

 

.70

 

 

 

7

%

 

$

1.50

 

 

 

1.40

 

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average - diluted (1)

 

 

153,276

 

 

 

158,341

 

 

 

-3

%

 

 

154,108

 

 

 

158,761

 

 

 

-3

%

Period end (2)

 

 

152,539

 

 

 

157,917

 

 

 

-3

%

 

 

152,539

 

 

 

157,917

 

 

 

-3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

1.27

%

 

 

1.09

%

 

 

 

 

 

 

1.21

%

 

 

1.03

%

 

 

 

 

Average common shareholders' equity

 

 

9.67

%

 

 

8.38

%

 

 

 

 

 

 

9.28

%

 

 

7.91

%

 

 

 

 

Taxable-equivalent net interest income

 

$

946,936

 

 

 

870,341

 

 

 

9

%

 

$

1,869,195

 

 

 

1,748,637

 

 

 

7

%

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

$

-

 

 

 

 

 

Yield on average earning assets

 

 

3.79

%

 

 

3.51

%

 

 

 

 

 

 

3.73

%

 

 

3.53

%

 

 

 

 

Cost of interest-bearing liabilities

 

 

.52

%

 

 

.56

%

 

 

 

 

 

 

.52

%

 

 

.55

%

 

 

 

 

Net interest spread

 

 

3.27

%

 

 

2.95

%

 

 

 

 

 

 

3.21

%

 

 

2.98

%

 

 

 

 

Contribution of interest-free funds

 

 

.18

%

 

 

.18

%

 

 

 

 

 

 

.19

%

 

 

.17

%

 

 

 

 

Net interest margin

 

 

3.45

%

 

 

3.13

%

 

 

 

 

 

 

3.40

%

 

 

3.15

%

 

 

 

 

Net charge-offs to average total net loans (annualized)

 

 

.20

%

 

 

.11

%

 

 

 

 

 

 

.20

%

 

 

.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating results (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

$

385,974

 

 

 

350,604

 

 

 

10

%

 

$

740,009

 

 

 

670,668

 

 

 

10

%

Diluted net operating earnings per common share

 

 

2.38

 

 

 

2.07

 

 

 

15

%

 

 

4.53

 

 

 

3.94

 

 

 

15

%

Return on (annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible assets

 

 

1.33

%

 

 

1.18

%

 

 

 

 

 

 

1.27

%

 

 

1.14

%

 

 

 

 

Average tangible common equity

 

 

14.18

%

 

 

12.68

%

 

 

 

 

 

 

13.61

%

 

 

12.15

%

 

 

 

 

Efficiency ratio

 

 

52.74

%

 

 

55.06

%

 

 

 

 

 

 

54.81

%

 

 

56.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At June 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality

 

2017

 

 

2016

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

872,374

 

 

 

848,855

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

Real estate and other foreclosed assets

 

 

104,424

 

 

 

172,473

 

 

 

-39

%

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

976,798

 

 

 

1,021,328

 

 

 

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more (4)

 

$

265,461

 

 

 

298,449

 

 

 

-11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government guaranteed loans included in totals above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

39,296

 

 

 

52,486

 

 

 

-25

%

 

 

 

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more

 

 

235,227

 

 

 

269,962

 

 

 

-13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renegotiated loans

 

$

221,892

 

 

 

211,159

 

 

 

5

%