Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod (716) 842-5138		FOR IMMEDIATE RELEASE: April 15, 2013
MEDIA CONTACT:		C. Michael Zabel (716) 842-5385

M&T BANK CORPORATION ANNOUNCES FIRST QUARTER RESULTS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2013.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the first quarter of 2013 were $1.98, up 32% from $1.50 in the year-earlier quarter. GAAP-basis net income in the recent quarter was $274 million, 33% higher than $206 million in the initial 2012 quarter. GAAP-basis net income for the first three months of 2013 expressed as an annualized rate of return on average assets and average common shareholders’ equity was 1.36% and 11.10%, respectively, compared with 1.06% and 9.04%, respectively, in the corresponding 2012 period. The improved results in the recent quarter as compared with the first quarter of 2012 reflect higher net interest income and noninterest income, led by residential mortgage banking revenues, and lower credit costs.

Commenting on M&T’s results for the recent quarter, René F. Jones, Executive Vice President and Chief Financial Officer, noted, “M&T’s results for the quarter truly reflect the strength of our operating model. Residential mortgage banking revenues continued to be robust and trust income grew nicely from last year’s fourth quarter. Credit costs in the recent quarter were well below our historical trends, with the ratio of net charge-offs to average

 

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M&T BANK CORPORATION

 

loans improving to .23%. Our financial performance has allowed us to make continued investments in our infrastructure while improving our capital ratios, as demonstrated by a 36 basis point increase in our Tier 1 common ratio during the quarter.”

Diluted earnings per common share and GAAP-basis net income in the fourth quarter of 2012 were $2.16 and $296 million, respectively. GAAP-basis net income in that quarter expressed as an annualized rate of return on average assets and average common shareholders’ equity was 1.45% and 12.10%, respectively. Results for the first quarter of 2013 as compared with the final 2012 quarter reflect a decline in residential mortgage banking revenues and seasonally higher stock-based compensation and benefits costs.

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains and expenses associated with merging acquired operations into M&T, since such items are considered by management to be “nonoperating” in nature. 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. Reconciliations of GAAP to non-GAAP measures are provided in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $2.06 in the

 

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M&T BANK CORPORATION

 

recent quarter, compared with $1.59 and $2.23 in the first and fourth quarters of 2012, respectively. Net operating income for the first three months of 2013 totaled $285 million, compared with $218 million and $305 million in the quarters ended March 31, 2012 and December 31, 2012, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income was 1.48% and 18.71%, respectively, in the first quarter of 2013, compared with 1.18% and 16.79% in the year-earlier quarter and 1.56% and 20.46% in the final 2012 quarter.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income rose 6% to $663 million in the recent quarter from $627 million in the year-earlier quarter. That improvement resulted from an increase in average earning assets, fueled by $5.4 billion of growth in average loans and leases. Also contributing to the improvement was a two basis point widening of the net interest margin to 3.71% from 3.69% in the first quarter of 2012. Taxable-equivalent net interest income declined in the first quarter of 2013 from $674 million in the immediately preceding quarter. That decrease reflects two less days in the recent quarter.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $38 million in the first quarter of 2013, improved from $49 million in each of the first and fourth quarters of 2012. Net charge-offs of loans during the recent quarter were $37 million, down from $48 million in the first quarter of 2012 and $44 million in the final 2012 quarter. Net charge-offs expressed as an annualized percentage of average loans outstanding were .23% during the first three months of 2013, improved significantly from .32% and .27% in the first and fourth quarters of 2012, respectively.

 

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M&T BANK CORPORATION

 

Loans classified as nonaccrual totaled $1.05 billion, or 1.60% of total loans outstanding at March 31, 2013, compared with $1.07 billion or 1.75% a year earlier and $1.01 billion or 1.52% at December 31, 2012. A change in the method of identifying nonaccrual home equity loans and lines of credit to reflect the repayment performance of the related senior lien loan that is not owned by M&T contributed to the modest increase in nonaccrual loans from the 2012 year-end to the recent quarter-end.

Assets taken in foreclosure of defaulted loans continued to decline and totaled $96 million at March 31, 2013, compared with $140 million and $104 million at March 31, 2012 and December 31, 2012, respectively.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of determining the allowance for credit losses. As a result of those analyses, the allowance totaled $927 million at March 31, 2013, compared with $909 million at March 31, 2012 and $926 million at December 31, 2012. The allowance expressed as a percentage of outstanding loans was 1.41% at March 31, 2013, compared with 1.49% and 1.39% at March 31, 2012 and December 31, 2012, respectively.

Noninterest Income and Expense. Noninterest income totaled $433 million in the first quarter of 2013, compared with $377 million and $453 million in the first and fourth quarters of 2012, respectively. Contributing to the improvement from the year-earlier quarter was a $37 million rise in mortgage banking revenues, resulting from increased loan volumes and wider margins, and higher trust income. The higher noninterest income in the final 2012 quarter reflected record mortgage banking revenues that were $23 million higher than in the first quarter of 2013.

 

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M&T BANK CORPORATION

 

Noninterest expense in 2013’s first quarter totaled $636 million, compared with $640 million and $626 million in the first and fourth quarters of 2012, respectively. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of those expenses, noninterest operating expenses were $618 million in the recently completed quarter, $620 million in the first quarter of 2012 and $612 million in the final 2012 quarter. As compared with the fourth quarter of 2012, seasonally higher stock-based compensation and benefits costs were reflected in noninterest operating expenses in the first quarters of 2013 and 2012.

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 first quarter of 2013, compared with 61.1% in the year-earlier quarter and 53.6% in the fourth quarter of 2012.

Balance Sheet. M&T had total assets of $82.8 billion at March 31, 2013, up 5% from $79.2 billion a year earlier. Loans and leases, net of unearned discount, increased $5.0 billion or 8% to $65.9 billion at the recent quarter-end from $60.9 billion at March 31, 2012. Total deposits rose 7% to $65.1 billion at March 31, 2013 from $60.9 billion a year earlier.

Total shareholders’ equity increased 11% to $10.4 billion at March 31, 2013 from $9.4 billion at March 31, 2012, representing 12.59% and 11.91%, respectively, of total assets. Common shareholders’ equity was $9.5 billion, or $73.99 per share at March 31, 2013, up from $8.6 billion, or $67.64 per share, a year earlier.

 

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M&T BANK CORPORATION

 

Tangible equity per common share rose 19% to $46.11 at March 31, 2013 from $38.89 a year earlier. Common shareholders’ equity per share and tangible equity per common share were $72.73 and $44.61, respectively, at December 31, 2012. 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’s tangible common equity to tangible assets ratio was 7.51% at March 31, 2013, improved from 6.51% and 7.20% at March 31, 2012 and December 31, 2012, respectively. M&T’s estimated Tier 1 common ratio, a regulatory capital measure, was 7.93% at March 31, 2013, compared with 7.04% and 7.57% at March 31, 2012 and December 31, 2012, respectively.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss first quarter financial results today at 10:30 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 #34438289. The conference call will be webcast live through M&T’s website at http://ir.mandtbank.com/events.cfm. A replay of the call will be available until Wednesday, April 17, 2013 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #34438289. 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.

 

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M&T BANK CORPORATION

 

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, Pennsylvania, Maryland, Virginia, West Virginia, Delaware 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 other regulatory agencies; increasing price and product/service competition by

 

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M&T BANK CORPORATION

 

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.

 

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M&T BANK CORPORATION

Financial Highlights

 

		Three months ended March 31								Change
Amounts in thousands, except per share		2013				2012
Performance
Net income		$	274,113				206,463				33	%
Net income available to common shareholders			255,096				188,241				36
Per common share:
Basic earnings		$	2.00				1.50				33	%
Diluted earnings			1.98				1.50				32
Cash dividends		$	.70				.70				—
Common shares outstanding:
Average—diluted (1)			128,636				125,616				2	%
Period end (2)			128,999				126,534				2
Return on (annualized):
Average total assets			1.36	%			1.06	%
Average common shareholders’ equity			11.10	%			9.04	%
Taxable-equivalent net interest income		$	662,500				627,094				6	%
Yield on average earning assets			4.13	%			4.24	%
Cost of interest-bearing liabilities			.64	%			.80	%
Net interest spread			3.49	%			3.44	%
Contribution of interest-free funds			.22	%			.25	%
Net interest margin			3.71	%			3.69	%
Net charge-offs to average total net loans (annualized)			.23	%			.32	%
Net operating results (3)
Net operating income		$	285,136				218,360				31	%
Diluted net operating earnings per common share			2.06				1.59				30
Return on (annualized):
Average tangible assets			1.48	%			1.18	%
Average tangible common equity			18.71	%			16.79	%
Efficiency ratio			55.88	%			61.09	%
		At March 31								Change
		2013				2012
Loan quality
Nonaccrual loans		$	1,052,794				1,065,229				-1	%
Real estate and other foreclosed assets			95,680				140,297				-32	%
Total nonperforming assets		$	1,148,474				1,205,526				-5	%
Accruing loans past due 90 days or more (4)		$	331,283				273,081				21	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	63,385				44,717				42	%
Accruing loans past due 90 days or more			311,579				252,622				23	%
Renegotiated loans		$	272,285				213,024				28	%
Acquired accruing loans past due 90 days or more (5)		$	157,068				165,163				-5	%
Purchased impaired loans (6):
Outstanding customer balance		$	790,048				1,158,829
Carrying amount			425,232				604,779
Nonaccrual loans to total net loans			1.60	%			1.75	%
Allowance for credit losses to total loans			1.41	%			1.49	%

 

(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 gains and 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 on page 16.

(4)	Excludes acquired loans.

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

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

 

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M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands, except per share		March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012
Performance
Net income		$	274,113				296,193				293,462				233,380				206,463
Net income available to common shareholders			255,096				276,605				273,896				214,716				188,241
Per common share:
Basic earnings		$	2.00				2.18				2.18				1.71				1.50
Diluted earnings			1.98				2.16				2.17				1.71				1.50
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average—diluted (1)			128,636				127,800				126,292				125,897				125,616
Period end (2)			128,999				128,234				127,461				126,645				126,534
Return on (annualized):
Average total assets			1.36	%			1.45	%			1.45	%			1.17	%			1.06	%
Average common shareholders’ equity			11.10	%			12.10	%			12.40	%			10.12	%			9.04	%
Taxable-equivalent net interest income		$	662,500				673,929				669,256				654,628				627,094
Yield on average earning assets			4.13	%			4.17	%			4.23	%			4.25	%			4.24	%
Cost of interest-bearing liabilities			.64	%			.67	%			.71	%			.76	%			.80	%
Net interest spread			3.49	%			3.50	%			3.52	%			3.49	%			3.44	%
Contribution of interest-free funds			.22	%			.24	%			.25	%			.25	%			.25	%
Net interest margin			3.71	%			3.74	%			3.77	%			3.74	%			3.69	%
Net charge-offs to average total net loans (annualized)			.23	%			.27	%			.26	%			.34	%			.32	%
Net operating results (3)
Net operating income		$	285,136				304,657				302,060				247,433				218,360
Diluted net operating earnings per common share			2.06				2.23				2.24				1.82				1.59
Return on (annualized):
Average tangible assets			1.48	%			1.56	%			1.56	%			1.30	%			1.18	%
Average tangible common equity			18.71	%			20.46	%			21.53	%			18.54	%			16.79	%
Efficiency ratio			55.88	%			53.63	%			53.73	%			56.86	%			61.09	%
		March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012
Loan quality
Nonaccrual loans		$	1,052,794				1,013,176				925,231				968,328				1,065,229
Real estate and other foreclosed assets			95,680				104,279				112,160				115,580				140,297
Total nonperforming assets		$	1,148,474				1,117,455				1,037,391				1,083,908				1,205,526
Accruing loans past due 90 days or more (4)		$	331,283				358,397				309,420				274,598				273,081
Government guaranteed loans included in totals above:
Nonaccrual loans		$	63,385				57,420				54,583				48,712				44,717
Accruing loans past due 90 days or more			311,579				316,403				280,410				255,495				252,622
Renegotiated loans		$	272,285				271,971				266,526				267,111				213,024
Acquired accruing loans past due 90 days or more (5)		$	157,068				166,554				161,424				162,487				165,163
Purchased impaired loans (6):
Outstanding customer balance		$	790,048				828,571				978,731				1,037,458				1,158,829
Carrying amount			425,232				447,114				528,001				560,700				604,779
Nonaccrual loans to total net loans			1.60	%			1.52	%			1.44	%			1.54	%			1.75	%
Allowance for credit losses to total loans			1.41	%			1.39	%			1.44	%			1.46	%			1.49	%

 

(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 gains and 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 on page 16.

(4)	Excludes acquired loans.

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

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

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

		Three months ended March 31								Change
Dollars in thousands		2013				2012
Interest income		$	729,975				714,095				2	%
Interest expense			73,925				93,706				-21
Net interest income			656,050				620,389				6
Provision for credit losses			38,000				49,000				-22
Net interest income after provision for credit losses			618,050				571,389				8
Other income
Mortgage banking revenues			93,103				56,192				66
Service charges on deposit accounts			110,949				108,889				2
Trust income			121,603				116,953				4
Brokerage services income			15,711				13,901				13
Trading account and foreign exchange gains			8,927				10,571				-16
Gain on bank investment securities			—				45				—
Other-than-temporary impairment losses recognized in earnings			(9,800	)			(11,486	)			—
Equity in earnings of Bayview Lending Group LLC			(3,656	)			(4,752	)			—
Other revenues from operations			96,045				86,410				11
Total other income			432,882				376,723				15
Other expense
Salaries and employee benefits			356,551				346,098				3
Equipment and net occupancy			65,159				65,043				—
Printing, postage and supplies			10,699				11,872				-10
Amortization of core deposit and other intangible assets			13,343				16,774				-20
FDIC assessments			19,438				28,949				-33
Other costs of operations			170,406				170,959				—
Total other expense			635,596				639,695				-1
Income before income taxes			415,336				308,417				35
Applicable income taxes			141,223				101,954				39
Net income		$	274,113				206,463				33	%

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
Dollars in thousands		March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012
Interest income		$	729,975				745,353				744,851				737,386				714,095
Interest expense			73,925				77,931				82,129				89,403				93,706
Net interest income			656,050				667,422				662,722				647,983				620,389
Provision for credit losses			38,000				49,000				46,000				60,000				49,000
Net interest income after provision for credit losses			618,050				618,422				616,722				587,983				571,389
Other income
Mortgage banking revenues			93,103				116,546				106,812				69,514				56,192
Service charges on deposit accounts			110,949				112,364				114,463				110,982				108,889
Trust income			121,603				116,915				115,709				122,275				116,953
Brokerage services income			15,711				14,872				14,114				16,172				13,901
Trading account and foreign exchange gains			8,927				10,356				8,469				6,238				10,571
Gain (loss) on bank investment securities			—				—				372				(408	)			45
Other-than-temporary impairment losses recognized in earnings			(9,800	)			(14,491	)			(5,672	)			(16,173	)			(11,486	)
Equity in earnings of Bayview Lending Group LLC			(3,656	)			(4,941	)			(5,183	)			(6,635	)			(4,752	)
Other revenues from operations			96,045				101,543				96,649				89,685				86,410
Total other income			432,882				453,164				445,733				391,650				376,723
Other expense
Salaries and employee benefits			356,551				323,010				321,746				323,686				346,098
Equipment and net occupancy			65,159				62,884				64,248				65,376				65,043
Printing, postage and supplies			10,699				10,417				8,272				11,368				11,872
Amortization of core deposit and other intangible assets			13,343				13,865				14,085				15,907				16,774
FDIC assessments			19,438				23,398				23,801				24,962				28,949
Other costs of operations			170,406				192,572				183,875				186,093				170,959
Total other expense			635,596				626,146				616,027				627,392				639,695
Income before income taxes			415,336				445,440				446,428				352,241				308,417
Applicable income taxes			141,223				149,247				152,966				118,861				101,954
Net income		$	274,113				296,193				293,462				233,380				206,463

 

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M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		March 31								Change
Dollars in thousands		2013				2012
ASSETS
Cash and due from banks		$	1,231,091				1,344,092				-8	%
Interest-bearing deposits at banks			1,304,770				1,282,040				2
Federal funds sold and agreements to resell securities			594,976				—				—
Trading account assets			420,144				517,620				-19
Investment securities			5,660,831				7,195,296				-21
Loans and leases:
Commercial, financial, etc			17,469,138				15,938,672				10
Real estate—commercial			25,944,819				24,486,555				6
Real estate—consumer			11,094,577				8,696,594				28
Consumer			11,415,733				11,799,929				-3
Total loans and leases, net of unearned discount			65,924,267				60,921,750				8
Less: allowance for credit losses			927,117				909,006				2
Net loans and leases			64,997,150				60,012,744				8
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			102,420				159,619				-36
Other assets			4,975,950				5,150,851				-3
Total assets		$	82,811,957				79,186,887				5	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	23,603,971				20,648,970				14	%
Interest-bearing deposits			41,219,679				39,868,782				3
Deposits at Cayman Islands office			266,076				395,191				-33
Total deposits			65,089,726				60,912,943				7
Short-term borrowings			374,593				511,981				-27
Accrued interest and other liabilities			1,530,118				1,856,749				-18
Long-term borrowings			5,394,563				6,476,526				-17
Total liabilities			72,389,000				69,758,199				4
Shareholders’ equity:
Preferred			874,627				866,489				1
Common (1)			9,548,330				8,562,199				12
Total shareholders’ equity			10,422,957				9,428,688				11
Total liabilities and shareholders’ equity		$	82,811,957				79,186,887				5	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $226.0 million at March 31, 2013 and $331.3 million at March 31, 2012.

 

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M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

Dollars in thousands		March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012
ASSETS
Cash and due from banks		$	1,231,091				1,983,615				1,622,928				1,421,831				1,344,092
Interest-bearing deposits at banks			1,304,770				129,945				411,994				1,069,717				1,282,040
Federal funds sold and agreements to resell securities			594,976				3,000				—				1,000				—
Trading account assets			420,144				488,966				526,844				544,938				517,620
Investment securities			5,660,831				6,074,361				6,624,004				7,057,300				7,195,296
Loans and leases:
Commercial, financial, etc			17,469,138				17,776,953				16,704,575				16,395,587				15,938,672
Real estate—commercial			25,944,819				25,993,790				24,970,416				24,898,707				24,486,555
Real estate—consumer			11,094,577				11,240,837				10,808,220				9,811,525				8,696,594
Consumer			11,415,733				11,559,377				11,628,744				11,745,453				11,799,929
Total loans and leases, net of unearned discount			65,924,267				66,570,957				64,111,955				62,851,272				60,921,750
Less: allowance for credit losses			927,117				925,860				921,223				917,028				909,006
Net loans and leases			64,997,150				65,645,097				63,190,732				61,934,244				60,012,744
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			102,420				115,763				129,628				143,713				159,619
Other assets			4,975,950				5,043,431				5,054,478				5,110,210				5,150,851
Total assets		$	82,811,957				83,008,803				81,085,233				80,807,578				79,186,887
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	23,603,971				24,240,802				22,968,401				22,854,794				20,648,970
Interest-bearing deposits			41,219,679				40,325,932				39,636,104				39,327,849				39,868,782
Deposits at Cayman Islands office			266,076				1,044,519				1,402,753				366,164				395,191
Total deposits			65,089,726				65,611,253				64,007,258				62,548,807				60,912,943
Short-term borrowings			374,593				1,074,482				592,154				975,575				511,981
Accrued interest and other liabilities			1,530,118				1,512,717				1,570,758				1,965,421				1,856,749
Long-term borrowings			5,394,563				4,607,758				4,969,536				5,687,868				6,476,526
Total liabilities			72,389,000				72,806,210				71,139,706				71,177,671				69,758,199
Shareholders’ equity:
Preferred			874,627				872,500				870,416				868,433				866,489
Common (1)			9,548,330				9,330,093				9,075,111				8,761,474				8,562,199
Total shareholders’ equity			10,422,957				10,202,593				9,945,527				9,629,907				9,428,688
Total liabilities and shareholders’ equity		$	82,811,957				83,008,803				81,085,233				80,807,578				79,186,887

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $226.0 million at March 31, 2013, $240.3 million at December 31, 2012, $230.1 million at September 30, 2012, $277.8 million at June 30, 2012 and $331.3 million at March 31, 2012.

 

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M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

 

		Three months ended																								Change in balance March 31, 2013 from
		March 31, 2013								March 31, 2012								December 31, 2012
Dollars in millions																										March 31, 2012				December 31, 2012
		Balance				Rate				Balance				Rate				Balance				Rate
ASSETS
Interest-bearing deposits at banks		$	527				.21	%			301				.28	%			273				.15	%			75	%			93	%
Federal funds sold and agreements to resell securities			81				.13				3				.50				3				.57				—				—
Trading account assets			76				3.60				93				1.57				97				1.45				-19				-22
Investment securities			5,803				3.33				7,507				3.54				6,295				3.31				-23				-8
Loans and leases, net of unearned discount
Commercial, financial, etc			17,328				3.66				15,732				3.71				16,995				3.68				10				2
Real estate—commercial			25,915				4.41				24,559				4.42				25,332				4.50				6				2
Real estate—consumer			11,142				4.09				8,286				4.60				11,087				4.10				34				—
Consumer			11,467				4.66				11,907				4.80				11,597				4.69				-4				-1
Total loans and leases, net			65,852				4.24				60,484				4.35				65,011				4.28				9				1
Total earning assets			72,339				4.13				68,388				4.24				71,679				4.17				6				1
Goodwill			3,525								3,525								3,525								—				—
Core deposit and other intangible assets			109								168								122								-35				-11
Other assets			5,940								5,945								6,040								—				-2
Total assets		$	81,913								78,026								81,366								5	%			1	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	893				.15				827				.14				881				.14				8	%			1	%
Savings deposits			35,394				.16				32,410				.23				34,587				.19				9				2
Time deposits			4,438				.75				5,960				.91				4,727				.79				-26				-6
Deposits at Cayman Islands office			859				.18				496				.17				763				.18				73				13
Total interest-bearing deposits			41,584				.22				39,693				.33				40,958				.26				5				2
Short-term borrowings			637				.15				828				.15				677				.16				-23				-6
Long-term borrowings			4,688				4.39				6,507				3.78				4,510				4.52				-28				4
Total interest-bearing liabilities			46,909				.64				47,028				.80				46,145				.67				—				2
Noninterest-bearing deposits			22,956								19,598								23,311								17				-2
Other liabilities			1,726								2,024								1,805								-15				-4
Total liabilities			71,591								68,650								71,261								4				—
Shareholders’ equity			10,322								9,376								10,105								10				2
Total liabilities and shareholders’ equity		$	81,913								78,026								81,366								5	%			1	%
Net interest spread							3.49								3.44								3.50
Contribution of interest-free funds							.22								.25								.24
Net interest margin							3.71	%							3.69	%							3.74	%

 

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M&T BANK CORPORATION

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

 

		Three months ended
		March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012
Income statement data
In thousands, except per share
Net income
Net income		$	274,113				296,193				293,462				233,380				206,463
Amortization of core deposit and other intangible assets (1)			8,148				8,464				8,598				9,709				10,240
Merger-related expenses (1)			2,875				—				—				4,344				1,657
Net operating income		$	285,136				304,657				302,060				247,433				218,360
Earnings per common share
Diluted earnings per common share		$	1.98				2.16				2.17				1.71				1.50
Amortization of core deposit and other intangible assets (1)			.06				.07				.07				.08				.08
Merger-related expenses (1)			.02				—				—				.03				.01
Diluted net operating earnings per common share		$	2.06				2.23				2.24				1.82				1.59
Other expense
Other expense		$	635,596				626,146				616,027				627,392				639,695
Amortization of core deposit and other intangible assets			(13,343	)			(13,865	)			(14,085	)			(15,907	)			(16,774	)
Merger-related expenses			(4,732	)			—				—				(7,151	)			(2,728	)
Noninterest operating expense		$	617,521				612,281				601,942				604,334				620,193
Merger-related expenses
Salaries and employee benefits		$	536				—				—				3,024				1,973
Equipment and net occupancy			201				—				—				—				15
Printing, postage and supplies			827				—				—				—				—
Other costs of operations			3,168				—				—				4,127				740
Total		$	4,732				—				—				7,151				2,728
Efficiency ratio
Noninterest operating expense (numerator)		$	617,521				612,281				601,942				604,334				620,193
Taxable-equivalent net interest income			662,500				673,929				669,256				654,628				627,094
Other income			432,882				453,164				445,733				391,650				376,723
Less: Gain (loss) on bank investment securities			—				—				372				(408	)			45
Net OTTI losses recognized in earnings			(9,800	)			(14,491	)			(5,672	)			(16,173	)			(11,486	)
Denominator		$	1,105,182				1,141,584				1,120,289				1,062,859				1,015,258
Efficiency ratio			55.88	%			53.63	%			53.73	%			56.86	%			61.09	%
Balance sheet data
In millions
Average assets
Average assets		$	81,913				81,366				80,432				80,087				78,026
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(109	)			(122	)			(136	)			(151	)			(168	)
Deferred taxes			32				36				39				44				48
Average tangible assets		$	78,311				77,755				76,810				76,455				74,381
Average common equity
Average total equity		$	10,322				10,105				9,789				9,536				9,376
Preferred stock			(874	)			(872	)			(870	)			(868	)			(866	)
Average common equity			9,448				9,233				8,919				8,668				8,510
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(109	)			(122	)			(136	)			(151	)			(168	)
Deferred taxes			32				36				39				44				48
Average tangible common equity		$	5,846				5,622				5,297				5,036				4,865
At end of quarter
Total assets
Total assets		$	82,812				83,009				81,085				80,808				79,187
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(102	)			(116	)			(129	)			(143	)			(160	)
Deferred taxes			30				34				38				41				46
Total tangible assets		$	79,215				79,402				77,469				77,181				75,548
Total common equity
Total equity		$	10,423				10,203				9,945				9,630				9,429
Preferred stock			(875	)			(873	)			(870	)			(868	)			(867	)
Undeclared dividends—cumulative preferred stock			(3	)			(3	)			(4	)			(4	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			9,545				9,327				9,071				8,758				8,559
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(102	)			(116	)			(129	)			(143	)			(160	)
Deferred taxes			30				34				38				41				46
Total tangible common equity		$	5,948				5,720				5,455				5,131				4,920

 

(1)	After any related tax effect.

 

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