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M&T Bank Corporation Announces Third Quarter Results

Mittwoch, 19.10.2016 12:55 von

PR Newswire

BUFFALO, N.Y., Oct. 19, 2016 /PRNewswire/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2016.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2016 were $2.10, up 9% from $1.93 in the year-earlier quarter.  GAAP-basis net income in the recent quarter aggregated $350 million, 25% higher than $280 million in the third quarter of 2015.  Diluted earnings per common share and GAAP-basis net income were $1.98 and $336 million, respectively, in 2016's second quarter.  GAAP-basis net income for the third quarter of 2016 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.12% and 8.68%, respectively, compared with 1.13% and 8.93%, respectively, in the year-earlier quarter and 1.09% and 8.38%, respectively, in 2016's second quarter.  During the recent quarter, M&T sold substantially all of the collateralized debt obligations held in its available-for-sale investment securities portfolio.  As a result, net gains on investment securities totaled $17 million after applicable tax effect, or $.11 of diluted earnings per common share.

Commenting on M&T's financial performance, Darren J. King, Executive Vice President and Chief Financial Officer, noted, "Third quarter results posted by M&T were highlighted by a 16% rise in mortgage banking revenues, strong growth in the commercial real estate and commercial loan portfolios and continued solid credit performance.  The favorable results were achieved in a period where the low interest rate environment continued to pressure M&T's net interest margin and where we continued to invest for the future.  During the recent quarter, M&T successfully divested certain investments that were subject to the 'Volcker Rule'."

For the first nine months of 2016, diluted earnings per common share were $5.80, up 4% from $5.56 in the corresponding period of 2015.  GAAP-basis net income for the nine-month period ended September 30, 2016 aggregated $985 million, 22% higher than $809 million in the year-earlier period.  Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income for the first nine months of 2016 was 1.06% and 8.17%, respectively, compared with 1.11% and 8.77%, 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 $2.13 in the third quarter of 2016, up 9% from $1.95 in the year-earlier quarter and up 3% from $2.07 in the second quarter of 2016.  Net operating income during the recent quarter was $356 million, compared with $283 million in the third quarter of 2015 and $351 million in 2016's second quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.18% and 12.77%, respectively, in the recent quarter, 1.18% and 12.98%, respectively, in the third quarter of 2015 and 1.18% and 12.68%, respectively, in the second quarter of 2016. 

Diluted net operating earnings per common share in the first nine months of 2016 were $6.07, up 8% from $5.64 in the corresponding period of 2015.  Net operating income during the nine-month period ended September 30, 2016 was $1.03 billion, compared with $819 million in the similar 2015 period.  Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.15% and 12.36%, respectively, in the first nine months of 2016, compared with 1.17% and 12.89%, respectively, in the first nine months of 2015.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $865 million in the third quarter of 2016, up 24% from $699 million in the year-earlier quarter.  Contributing to that improvement was a 28% increase in average earning assets, which grew to $112.9 billion in the recent quarter from $88.4 billion in the third quarter of 2015.  That growth reflects the November 2015 acquisition of Hudson City Bancorp, Inc. ("Hudson City") that added approximately $16.2 billion in average loans in the recent quarter.  In total, average loans in 2016's third quarter were $88.7 billion, up $20.9 billion, or 31%, from the year-earlier quarter.  Partially offsetting the favorable impact of the asset growth was a 9 basis point narrowing of the net interest margin to 3.05% in the recent quarter from 3.14% in the third quarter of 2015.  That narrowing reflects the ongoing impact of low interest rates on yields on securities and newly originated loans and higher balances on deposit at the Federal Reserve Bank of New York.  As a result of the challenging interest rate environment, taxable-equivalent net interest income in the recent quarter was 1% lower than $870 million in the second quarter of 2016.  A $992 million increase in average earning assets as compared with the second 2016 quarter, including a $577 million increase in average loans and leases, was offset by an 8 basis point compression of the net interest margin.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $47 million in the recent quarter, compared with $44 million in the third quarter of 2015 and $32 million in 2016's second quarter. Net charge-offs of loans were $41 million during the third quarter of 2016, compared with $40 million and $24 million in the third quarter of 2015 and second quarter of 2016, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% and .24% in the third quarter of 2016 and 2015, respectively, and .11% in the second quarter of 2016.

Loans classified as nonaccrual totaled $837 million, or .93% of total loans outstanding at September 30, 2016 and $849 million or .96% at June 30, 2016, compared with $787 million or 1.15% at September 30, 2015.  The higher level of nonaccrual loans at the two most recent quarter-ends as compared with September 30, 2015 reflects the normal migration of previously performing loans obtained in the acquisition of Hudson City that became past due over 90 days during the first nine months of 2016, and, as such, were not identifiable as purchased impaired as of the acquisition date.  Assets taken in foreclosure of defaulted loans totaled $160 million at September 30, 2016, compared with $66 million a year earlier and $172 million at June 30, 2016.  The higher level of such assets at the two most recent quarter-ends as compared with September 30, 2015 also 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 $976 million or 1.09% of loans outstanding at September 30, 2016, compared with $970 million or 1.10% at June 30, 2016 and $934 million or 1.36% at September 30, 2015.  The lower ratios at June 30 and September 30, 2016 as compared with September 30, 2015 reflect the impact of residential real estate loans acquired in the Hudson City transaction.

Noninterest Income and Expense.  Noninterest income totaled $491 million in the recent quarter, up  from $440 million in the third quarter of 2015 and $448 million in the second quarter of 2016. Reflected in noninterest income in the recent quarter were $28 million of pre-tax gains from the sale of investment securities that had been obtained in acquisitions.  There were no significant gains or losses on investment securities in the third quarter of 2015 or in the second quarter of 2016.  In addition to the investment securities gains, mortgage banking revenues also contributed to the rise in noninterest income as compared with the two earlier quarters.

Noninterest expense in the third quarter of 2016 totaled $752 million, compared with $750 million in the second quarter of 2016 and $654 million in the third quarter of 2015.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $743 million in the recent quarter, $726 million in the second quarter of 2016 and $650 million in the third quarter of 2015. Contributing to the higher level of operating expenses in the two most recent quarters as compared with the third quarter of 2015 was the impact of operations obtained in the Hudson City acquisition.  As compared with the second quarter of 2016, the higher level of operating expenses in the recent quarter reflects increased FDIC assessments and higher advertising and promotion 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.  M&T's efficiency ratio was 55.9% in the recent quarter, 57.1% in the year-earlier quarter and 55.1% in the second quarter of 2016.

Balance Sheet.  M&T had total assets of $126.8 billion at September 30, 2016 and $123.8 billion at June 30, 2016, up from $97.8 billion at September 30, 2015.  Loans and leases, net of unearned discount, totaled $89.6 billion at September 30, 2016, $21.1 billion or 31% above $68.5 billion a year earlier and up an annualized 5% from $88.5 billion at June 30, 2016.  During the recent quarter, loans to commercial customers grew $1.8 billion, while residential real estate loans, largely comprised of mortgage loans obtained in the Hudson City acquisition, declined $946 million.  Total deposits increased to $98.1 billion at the recent quarter-end from $72.9 billion at September 30, 2015 and $94.7 billion at June 30, 2016. 

Total shareholders' equity rose 26% to $16.3 billion at September 30, 2016 from $12.9 billion a year earlier, representing 12.88% and 13.21%, respectively, of total assets.  Common shareholders' equity was $15.1 billion, or $97.47 per share, at September 30, 2016, compared with $11.7 billion, or $87.67 per share, at September 30, 2015.  Tangible equity per common share of $67.42 at September 30, 2016 was up 10% from $61.22 at September 30, 2015.  Common shareholders' equity per share and tangible equity per common share were $96.49 and $66.95, respectively, at June 30, 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 10.76% at September 30, 2016.

In accordance with its 2016 capital plan, M&T repurchased 3,039,563 shares of its common stock during the recent quarter at an average cost per share of $115.15, for a total cost of $350 million.  During the first nine months of 2016, M&T repurchased 5,307,595 shares of its common stock at an average cost per share of $113.80, for a total cost of $604 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third 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 #87013497.  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, October 22, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #87013497.  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






Nine months ended




Amounts in thousands,


September 30






September 30




 except per share


2016


2015


Change




2016


2015


Change


















Performance
































Net income

$

349,984


280,401


25

%

$

984,543


808,702


22

%

Net income available to common shareholders


326,998


257,346


27

%


915,686


739,656


24

%

















Per common share:
















  Basic earnings

$

2.10


1.94


8

%

$

5.82


5.59


4

%

  Diluted earnings


2.10


1.93


9

%


5.80


5.56


4

%

  Cash dividends

$

.70


.70


-



$

2.10


2.10


-


















Common shares outstanding:
















  Average - diluted (1)


156,026


133,376


17

%


157,843


133,089


19

%

  Period end (2)


154,987


133,311


16

%


154,987


133,311


16

%

















Return on (annualized):
















  Average total assets


1.12

%

1.13

%





1.06

%

1.11

%



  Average common shareholders' equity


8.68

%

8.93

%





8.17

%

8.77

%



















Taxable-equivalent net interest income

$

865,065


699,075


24

%

$

2,613,702


2,053,649


27

%

















Yield on average earning assets


3.44

%

3.48

%





3.50

%

3.51

%



Cost of interest-bearing liabilities


.59

%

.55

%





.56

%

.55

%



Net interest spread


2.85

%

2.93

%





2.94

%

2.96

%



Contribution of interest-free funds


.20

%

.21

%





.18

%

.20

%



Net interest margin


3.05

%

3.14

%





3.12

%

3.16

%



















Net charge-offs to average total 
















  net loans (annualized)


.19

%

.24

%





.16

%

.19

%



















Net operating results (3)
































Net operating income

$

355,929


282,907


26

%

$

1,026,597


819,024


25

%

Diluted net operating earnings per common share


2.13


1.95


9

%


6.07


5.64


8

%

Return on (annualized):
















  Average tangible assets


1.18

%

1.18

%





1.15

%

1.17

%



  Average tangible common equity


12.77

%

12.98

%





12.36

%

12.89

%



Efficiency ratio


55.92

%

57.05

%





55.99

%

58.88

%





















































 

At September 30












Loan quality


2016


2015


Change


























Nonaccrual loans

$

837,362


787,098


6

%








Real estate and other foreclosed assets


159,881


66,144


142

%








  Total nonperforming assets

$

997,243


853,242


17

%
























Accruing loans past due 90 days or more (4)

$

317,282


231,465


37

%
























Government guaranteed loans included in totals
















  above:
















  Nonaccrual loans

$

47,130


48,955


-4

%








  Accruing loans past due 90 days or more


282,077


193,998


45

%
























Renegotiated loans

$

217,559


189,639


15

%
























Accruing loans acquired at a discount past due 90
















  days or more (5)

$

65,182


80,827


-19

%
























Purchased impaired loans (6):
















  Outstanding customer balance

$

981,105


278,979


252

%








  Carrying amount


616,991


149,421


313

%
























Nonaccrual loans to total net loans


.93

%

1.15

%



























Allowance for credit losses to total loans


1.09

%

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,




September 30,


June 30,


March 31,


December 31,


September 30,




 except per share




2016


2016


2016


2015


2015

























Performance










































Net income



$

349,984



336,031



298,528



270,965



280,401





Net income available to common shareholders




326,998



312,974



275,748



248,059



257,346


























Per common share:





















  Basic earnings



$

2.10



1.98



1.74



1.65



1.94





  Diluted earnings




2.10



1.98



1.73



1.65



1.93





  Cash dividends



$

.70



.70



.70



.70



.70


























Common shares outstanding:





















  Average - diluted (1)




156,026



158,341



159,181



150,718



133,376





  Period end (2)




154,987



157,917



159,156



159,600



133,311


























Return on (annualized):





















  Average total assets




1.12

%


1.09

%


.97

%


.93

%


1.13

%




  Average common shareholders' equity




8.68

%


8.38

%


7.44

%


7.22

%


8.93

%

























Taxable-equivalent net interest income



$

865,065



870,341



878,296



813,401



699,075


























Yield on average earning assets




3.44

%


3.51

%


3.54

%


3.48

%


3.48

%




Cost of interest-bearing liabilities




.59

%


.56

%


.53

%


.54

%


.55

%




Net interest spread




2.85

%


2.95

%


3.01

%


2.94

%


2.93

%




Contribution of interest-free funds




.20

%


.18

%


.17

%


.18

%


.21

%




Net interest margin




3.05

%


3.13

%


3.18

%


3.12

%


3.14

%

























Net charge-offs to average total 





















  net loans (annualized)




.19

%


.11

%


.19

%


.18

%


.24

%

























Net operating results (3)










































Net operating income



$

355,929



350,604



320,064



337,613



282,907





Diluted net operating earnings per common share




2.13



2.07



1.87



2.09



1.95





Return on (annualized):





















  Average tangible assets




1.18

%


1.18

%


1.09

%


1.21

%


1.18

%




  Average tangible common equity




12.77

%


12.68

%


11.62

%


13.26

%


12.98

%




Efficiency ratio




55.92

%


55.06

%


57.00

%


55.53

%


57.05

%
















































































September 30,


June 30,


March 31,


December 31,


September 30,




Loan quality




2016


2016


2016


2015


2015

























Nonaccrual loans



$

837,362



848,855



876,691



799,409



787,098





Real estate and other foreclosed assets




159,881



172,473



188,004



195,085



66,144





  Total nonperforming assets



$

997,243



1,021,328



1,064,695



994,494



853,242


























Accruing loans past due 90 days or more (4)



$

317,282



298,449



336,170



317,441



231,465


























Government guaranteed loans included in totals





















  above:





















  Nonaccrual loans



$

47,130



52,486



49,688



47,052



48,955





  Accruing loans past due 90 days or more




282,077



269,962



279,340



276,285



193,998


























Renegotiated loans



$

217,559



211,159



200,771



182,865



189,639


























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



$

65,182



68,591



61,767



68,473



80,827


























Purchased impaired loans (6):





















  Outstanding customer balance



$

981,105



1,040,678



1,124,776



1,204,004



278,979





  Carrying amount




616,991



662,059



715,874



768,329



149,421


























Nonaccrual loans to total net loans




.93

%


.96

%


1.00

%


.91

%


1.15

%

























Allowance for credit losses to total loans




1.09

%


1.10

%


1.10

%


1.09

%


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






Nine months ended






September 30






September 30




Dollars in thousands


2016


2015


Change




2016


2015


Change


















Interest income

$

969,515


770,026


26

%


$

2,912,970


2,268,467


28

%

Interest expense


111,175


77,199


44




318,847


232,924


37


















Net interest income


858,340


692,827


24




2,594,123


2,035,543


27


















Provision for credit losses


47,000


44,000


7




128,000


112,000


14


















Net interest income after
















   provision for credit losses


811,340


648,827


25




2,466,123


1,923,543


28


















Other income
















     Mortgage banking revenues


103,747


84,035


23




275,193


288,238


-5


     Service charges on deposit accounts


107,935


107,259


1




314,212


314,860


-


     Trust income


118,654


113,744


4




350,181


356,076


-2


     Brokerage services income


15,914


16,902


-6




48,190


49,224


-2


     Trading account and foreign exchange gains


12,754


8,362


53




33,434


20,639


62


     Gain (loss) on bank investment securities


28,480


-


-




28,748


(108)


-


     Other revenues from operations


103,866


109,397


-5




310,579


348,000


-11


          Total other income


491,350


439,699


12




1,360,537


1,376,929


-1


















Other expense
















     Salaries and employee benefits


399,786


363,567


10




1,230,246


1,115,117


10


     Equipment and net occupancy


75,263


68,470


10




225,165


201,792


12


     Printing, postage and supplies


8,972


8,691


3




30,865


27,586


12


     Amortization of core deposit and other
















        intangible assets


9,787


4,090


139




33,524


16,848


99


     FDIC assessments


28,459


11,090


157




76,054


32,551


134


     Other costs of operations


230,125


197,908


16




682,528


642,925


6


          Total other expense


752,392


653,816


15




2,278,382


2,036,819


12


















Income before income taxes


550,298


434,710


27




1,548,278


1,263,653


23


















Applicable income taxes


200,314


154,309


30




563,735


454,951


24


















Net income

$

349,984


280,401


25

%


$

984,543


808,702


22

%

































 

 

M&T BANK CORPORATION
















Condensed Consolidated Statement of Income, Five Quarter Trend
































Three months ended




September 30,


June 30,


March 31,


December 31,


September 30,

Dollars in thousands


2016


2016


2016


2015


2015

















Interest income

$

969,515



970,621



972,834



902,377



770,026


Interest expense


111,175



106,802



100,870



95,333



77,199


















Net interest income


858,340



863,819



871,964



807,044



692,827


















Provision for credit losses


47,000



32,000



49,000



58,000



44,000


















Net interest income after
















   provision for credit losses


811,340



831,819



822,964



749,044



648,827


















Other income
















     Mortgage banking revenues


103,747



89,383



82,063



87,500



84,035


     Service charges on deposit accounts


107,935



103,872



102,405



105,748



107,259


     Trust income


118,654



120,450



111,077



114,564



113,744


     Brokerage services income


15,914



16,272



16,004



15,546



16,902


     Trading account and foreign exchange gains


12,754



13,222



7,458



9,938



8,362


     Gain (loss) on bank investment securities


28,480



264



4



(22)



-


     Other revenues from operations


103,866



104,791



101,922



114,834



109,397


          Total other income


491,350



448,254



420,933



448,108



439,699


















Other expense
















     Salaries and employee benefits


399,786



398,675



431,785



434,413



363,567


     Equipment and net occupancy


75,263



75,724



74,178



70,747



68,470


     Printing, postage and supplies


8,972



9,907



11,986



10,905



8,691


     Amortization of core deposit and other 
















        intangible assets


9,787



11,418



12,319



9,576



4,090


     FDIC assessments


28,459



22,370



25,225



19,562



11,090


     Other costs of operations


230,125



231,801



220,602



240,910



197,908


          Total other expense


752,392



749,895



776,095



786,113



653,816


















Income before income taxes


550,298



530,178



467,802



411,039



434,710


















Applicable income taxes


200,314



194,147



169,274



140,074



154,309


















Net income

$

349,984



336,031



298,528



270,965



280,401


















































 

 

M&T BANK CORPORATION









Condensed Consolidated Balance Sheet





















September 30




Dollars in thousands



2016


2015


Change











ASSETS


















Cash and due from banks


$

1,332,202


1,249,704


7

%










Interest-bearing deposits at banks



10,777,636


4,713,266


129











Trading account assets



488,588


340,710


43











Investment securities



14,733,574


14,494,539


2











Loans and leases:


















   Commercial, financial, etc. 



21,917,163


20,233,177


8


   Real estate - commercial



32,078,762


28,720,537


12


   Real estate - consumer



23,584,420


8,211,062


187


   Consumer



12,066,147


11,375,472


6


     Total loans and leases, net of unearned discount



89,646,492


68,540,248


31


        Less: allowance for credit losses



976,121


933,798


5











  Net loans and leases



88,670,371


67,606,450


31











Goodwill



4,593,112


3,513,325


31











Core deposit and other intangible assets



106,744


18,179


487











Other assets



6,138,801


5,860,889


5











  Total assets


$

126,841,028


97,797,062


30

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits


$

33,127,627


28,189,330


18

%










Interest-bearing deposits



64,786,035


44,549,028


45











Deposits at Cayman Islands office



223,183


206,185


8











  Total deposits



98,136,845


72,944,543


35











Short-term borrowings



213,846


173,783


23











Accrued interest and other liabilities



1,938,201


1,582,513


22











Long-term borrowings



10,211,160


10,174,289


-











  Total liabilities



110,500,052


84,875,128


30











Shareholders' equity:


















   Preferred



1,231,500


1,231,500


-


   Common (1)



15,109,476


11,690,434


29











     Total shareholders' equity



16,340,976


12,921,934


26











  Total liabilities and shareholders' equity


$

126,841,028


97,797,062


30

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $114.6 million at September 30,

       2016 and $163.5 million at September 30, 2015.


















 

 

M&T BANK CORPORATION


















Condensed Consolidated Balance Sheet, Five Quarter Trend

























September 30,


June 30,


March 31,


December 31,


September 30,


Dollars in thousands



2016


2016


2016


2015


2015




















ASSETS




































Cash and due from banks


$

1,332,202



1,284,442



1,178,175



1,368,040



1,249,704





















Interest-bearing deposits at banks



10,777,636



8,474,839



9,545,181



7,594,350



4,713,266





















Trading account assets



488,588



506,131



467,987



273,783



340,710





















Investment securities



14,733,574



14,963,084



15,467,320



15,656,439



14,494,539





















Loans and leases:




































   Commercial, financial, etc. 



21,917,163



21,469,242



21,226,577



20,422,338



20,233,177



   Real estate - commercial



32,078,762



30,711,230



29,713,293



29,197,311



28,720,537



   Real estate - consumer



23,584,420



24,530,249



25,299,638



26,270,103



8,211,062



   Consumer



12,066,147



11,811,277



11,632,958



11,599,747



11,375,472



     Total loans and leases, net of unearned discount



89,646,492



88,521,998



87,872,466



87,489,499



68,540,248



        Less: allowance for credit losses



976,121



970,496



962,752



955,992



933,798





















  Net loans and leases



88,670,371



87,551,502



86,909,714



86,533,507



67,606,450





















Goodwill



4,593,112



4,593,112



4,593,112



4,593,112



3,513,325





















Core deposit and other intangible assets



106,744



116,531



127,949



140,268



18,179





















Other assets



6,138,801



6,330,943



6,336,194



6,628,385



5,860,889





















  Total assets


$

126,841,028



123,820,584



124,625,632



122,787,884



97,797,062







































LIABILITIES AND SHAREHOLDERS' EQUITY




































Noninterest-bearing deposits


$

33,127,627



30,700,066



29,709,218



29,110,635



28,189,330





















Interest-bearing deposits



64,786,035



63,756,514



64,338,571



62,677,036



44,549,028





















Deposits at Cayman Islands office



223,183



193,523



166,787



170,170



206,185





















  Total deposits



98,136,845



94,650,103



94,214,576



91,957,841



72,944,543





















Short-term borrowings



213,846



407,123



1,766,826



2,132,182



173,783





















Accrued interest and other liabilities



1,938,201



1,963,093



1,948,142



1,870,714



1,582,513





















Long-term borrowings



10,211,160



10,328,751



10,341,035



10,653,858



10,174,289





















  Total liabilities



110,500,052



107,349,070



108,270,579



106,614,595



84,875,128





















Shareholders' equity:




































   Preferred



1,231,500



1,231,500



1,231,500



1,231,500



1,231,500



   Common (1)



15,109,476



15,240,014



15,123,553



14,941,789



11,690,434





















     Total shareholders' equity



16,340,976



16,471,514



16,355,053



16,173,289



12,921,934





















  Total liabilities and shareholders' equity


$

126,841,028



123,820,584



124,625,632



122,787,884



97,797,062







































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $114.6 million at September 30, 2016, $101.0 million at June 30,



        2016, $150.2 million at March 31, 2016, $251.6 million at December 31, 2015 and $163.5 million at September 30, 2015.










































 

 

M&T BANK CORPORATION
































Condensed Consolidated Average Balance Sheet






























 and Annualized Taxable-equivalent Rates



































































Three months ended


Change in balance



Nine months ended







September 30,


September 30,


June 30,


September 30, 2016 from



September 30




Dollars in millions



2016


2015


2016


September 30,


June 30,



2016


2015


Change in





Balance


Rate


Balance


Rate


Balance


Rate


2015


2016



Balance


Rate


Balance 


Rate


balance


ASSETS
































































Interest-bearing deposits at banks


$

9,681


.51

%

6,060


.25

%

8,711


.51

%

60

%


11

%


$

8,864


.51

%

5,490


.25

%

61

%

































Federal funds sold



-


-


-


-


-


-


-



-




-


-


45


.10


-


































Trading account assets



90


1.52


96


.52


92


1.58


-6



-2




89


1.62


93


1.34


-4


































Investment securities



14,361


2.38


14,441


2.60


14,914


2.49


-1



-4




14,873


2.49


14,008


2.65


6


































Loans and leases, net of unearned discount
































  Commercial, financial, etc.



21,480


3.44


19,939


3.22


21,450


3.47


8



-




21,216


3.43


19,791


3.20


7


  Real estate - commercial



31,252


4.00


28,309


4.18


30,134


4.09


10



4




30,274


4.08


28,040


4.18


8


  Real estate - consumer



24,058


3.92


8,348


4.17


24,858


3.94


188



-3




24,922


3.93


8,455


4.17


195


  Consumer



11,942


4.55


11,253


4.46


11,713


4.55


6



2




11,747


4.55


11,087


4.47


6


     Total loans and leases, net



88,732


3.93


67,849


3.96


88,155


3.99


31



1




88,159


3.97


67,373


3.96


31


































  Total earning assets



112,864


3.44


88,446


3.48


111,872


3.51


28



1




111,985


3.50


87,009


3.51


29


































Goodwill



4,593




3,513




4,593




31



-




4,593




3,517




31


































Core deposit and other intangible assets



112




20




122




453



-8




123




26




380


































Other assets



7,156




6,536




7,119




9



1




7,196




6,793




6


































  Total assets


$

124,725




98,515




123,706




27

%


1

%


$

123,897




97,345




27

%

































































































LIABILITIES AND SHAREHOLDERS' EQUITY
































































Interest-bearing deposits
































  Interest-checking deposits


$

1,222


.12


1,309


.11


1,332


.12


-7

%


-8

%


$

1,304


.12


1,255


.11


4

%

  Savings deposits



51,294


.18


41,197


.11


50,515


.16


25



2




50,266


.16


41,477


.10


21


  Time deposits



12,334


.90


2,858


.51


12,755


.85


332



-3




12,694


.83


2,940


.50


332


  Deposits at Cayman Islands office



220


.37


206


.29


182


.40


7



20




197


.39


214


.28


-8


     Total interest-bearing deposits



65,070


.32


45,570


.13


64,784


.30


43



-




64,461


.29


45,886


.13


40


































Short-term borrowings



231


.29


174


.07


1,078


.43


33



-79




1,127


.41


188


.07


498


Long-term borrowings



10,287


2.28


10,114


2.44


10,297


2.27


2



-




10,370


2.25


10,039


2.51


3


































Total interest-bearing liabilities



75,588


.59


55,858


.55


76,159


.56


35



-1




75,958


.56


56,113


.55


35


































Noninterest-bearing deposits



30,782




28,251




29,249




9



5




29,638




26,947




10


































Other liabilities



2,008




1,619




1,921




24



5




1,967




1,656




19


































  Total liabilities



108,378




85,728




107,329




26



1




107,563




84,716




27


































Shareholders' equity



16,347




12,787




16,377




28



-




16,334




12,629




29


































  Total liabilities and shareholders' equity


$

124,725




98,515




123,706




27

%


1

%


$

123,897




97,345




27

%

































































Net interest spread





2.85




2.93




2.95











2.94




2.96




Contribution of interest-free funds





.20




.21




.18











.18




.20




Net interest margin





3.05

%



3.14

%



3.13

%










3.12

%



3.16

%


































 

M&T BANK CORPORATION













Reconciliation of Quarterly GAAP to Non-GAAP Measures







































Three months ended



Nine months ended






September 30



September 30






2016


2015



2016


2015


Income statement data













In thousands, except per share













Net income













Net income



$

349,984


280,401


$

984,543


808,702


Amortization of core deposit and other












  intangible assets (1)




5,945


2,506



20,369


10,322


Merger-related expenses (1)




-


-



21,685


-


  Net operating income



$

355,929


282,907


$

1,026,597


819,024


Earnings per common share













Diluted earnings per common share


$

2.10


1.93


$

5.80


5.56


Amortization of core deposit and other












  intangible assets (1)




.03


.02



.13


.08


Merger-related expenses (1)




-


-



.14


-


  Diluted net operating earnings per common share

$

2.13


1.95


$

6.07


5.64


Other expense













Other expense



$

752,392


653,816


$

2,278,382


2,036,819


Amortization of core deposit and other













  intangible assets




(9,787)


(4,090)



(33,524)


(16,848)


Merger-related expenses




-


-



(35,755)


-


  Noninterest operating expense



$

742,605


649,726


$

2,209,103


2,019,971


Merger-related expenses













Salaries and employee benefits




-


-



5,334


-


Equipment and net occupancy




-


-



1,278


-


Printing, postage and supplies




-


-



1,482


-


Other costs of operations




-


-



27,661


-


  Total



$

-


-


$

35,755


-


Efficiency ratio













Noninterest operating expense (numerator)


$

742,605


649,726


$

2,209,103


2,019,971


Taxable-equivalent net interest income



865,065


699,075



2,613,702


2,053,649


Other income




491,350


439,699



1,360,537


1,376,929


Less:  Gain (loss) on bank investment securities


28,480


-



28,748


(108)


Denominator



$

1,327,935


1,138,774


$

3,945,491


3,430,686


Efficiency ratio




55.92%


57.05%



55.99%


58.88%




























Balance sheet data













In millions













Average assets













Average assets



$

124,725


98,515


$

123,897


97,345


Goodwill




(4,593)


(3,513)



(4,593)


(3,517)


Core deposit and other intangible assets



(112)


(20)



(123)


(26)


Deferred taxes




44


7



48


8


  Average tangible assets



$

120,064


94,989


$

119,229


93,810


Average common equity













Average total equity



$

16,347


12,787


$

16,334


12,629


Preferred stock




(1,232)


(1,232)



(1,231)


(1,232)


  Average common equity




15,115


11,555



15,103


11,397


Goodwill




(4,593)


(3,513)



(4,593)


(3,517)


Core deposit and other intangible assets



(112)


(20)



(123)


(26)


Deferred taxes




44


7



48


8


  Average tangible common equity



$

10,454


8,029


$

10,435


7,862















At end of quarter













Total assets













Total assets



$

126,841


97,797







Goodwill




(4,593)


(3,513)







Core deposit and other intangible assets



(107)


(18)







Deferred taxes




42


6







  Total tangible assets



$

122,183


94,272







Total common equity













Total equity



$

16,341


12,922







Preferred stock




(1,232)


(1,232)







Undeclared dividends - cumulative preferred stock


(3)


(3)







  Common equity, net of undeclared cumulative











    preferred dividends




15,106


11,687







Goodwill




(4,593)


(3,513)







Core deposit and other intangible assets



(107)


(18)







Deferred taxes




42


6







  Total tangible common equity



$

10,448


8,162

































(1) After any related tax effect


























 

 

M&T BANK CORPORATION














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






















































Three months ended






September 30,


June 30,


March 31,


December 31,


September 30,






2016


2016


2016


2015


2015


Income statement data














In thousands, except per share














Net income














Net income



$

349,984


336,031


298,528


270,965


280,401


Amortization of core deposit and other














  intangible assets (1)




5,945


6,936


7,488


5,828


2,506


Merger-related expenses (1)




-


7,637


14,048


60,820


-


  Net operating income



$

355,929


350,604


320,064


337,613


282,907


Earnings per common share














Diluted earnings per common share



$

2.10


1.98


1.73


1.65


1.93


Amortization of core deposit and other














  intangible assets (1)




.03


.04


.05


.04


.02


Merger-related expenses (1)




-


.05


.09


.40


-


  Diluted net operating earnings per common share

$

2.13


2.07


1.87


2.09


1.95


Other expense














Other expense



$

752,392


749,895


776,095


786,113


653,816


Amortization of core deposit and other














  intangible assets




(9,787)


(11,418)


(12,319)


(9,576)


(4,090)


Merger-related expenses




-


(12,593)


(23,162)


(75,976)


-


  Noninterest operating expense



$

742,605


725,884


740,614


700,561


649,726


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)


$

742,605


725,884


740,614


700,561


649,726


Taxable-equivalent net interest income




865,065


870,341


878,296


813,401


699,075


Other income




491,350


448,254


420,933


448,108


439,699


Less:  Gain (loss) on bank investment securities


28,480


264


4


(22)


-


Denominator



$

1,327,935


1,318,331


1,299,225


1,261,531


1,138,774


Efficiency ratio




55.92

%

55.06

%

57.00

%

55.53

%

57.05

%





























Balance sheet data














In millions














Average assets














Average assets



$

124,725


123,706


123,252


115,052


98,515


Goodwill




(4,593)


(4,593)


(4,593)


(4,218)


(3,513)


Core deposit and other intangible assets




(112)


(122)


(134)


(101)


(20)


Deferred taxes




44


48


52


39


7


  Average tangible assets



$

120,064


119,039


118,577


110,772


94,989


Average common equity














Average total equity



$

16,347


16,377


16,279


15,007


12,787


Preferred stock




(1,232)


(1,232)


(1,232)


(1,232)


(1,232)


  Average common equity




15,115


15,145


15,047


13,775


11,555


Goodwill




(4,593)


(4,593)


(4,593)


(4,218)


(3,513)


Core deposit and other intangible assets




(112)


(122)


(134)


(101)


(20)


Deferred taxes




44


48


52


39


7


  Average tangible common equity



$

10,454


10,478


10,372


9,495


8,029
















At end of quarter














Total assets














Total assets



$

126,841


123,821


124,626


122,788


97,797


Goodwill




(4,593)


(4,593)


(4,593)


(4,593)


(3,513)


Core deposit and other intangible assets




(107)


(117)


(128)


(140)


(18)


Deferred taxes




42


46


50


54


6


  Total tangible assets



$

122,183


119,157


119,955


118,109


94,272


Total common equity














Total equity



$

16,341


16,472


16,355


16,173


12,922


Preferred stock




(1,232)


(1,232)


(1,232)


(1,232)


(1,232)


Undeclared dividends - cumulative preferred stock


(3)


(3)


(3)


(2)


(3)


  Common equity, net of undeclared cumulative












    preferred dividends




15,106


15,237


15,120


14,939


11,687


Goodwill




(4,593)


(4,593)


(4,593)


(4,593)


(3,513)


Core deposit and other intangible assets




(107)


(117)


(128)


(140)


(18)


Deferred taxes




42


46


50


54


6


  Total tangible common equity



$

10,448


10,573


10,449


10,260


8,162






























(1) After any related tax effect.




























 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mt-bank-corporation-announces-third-quarter-results-300347468.html

SOURCE M&T Bank Corporation