Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		January 17, 2014
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES 2013 FOURTH QUARTER

AND FULL–YEAR PROFITS

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

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the fourth quarter of 2013 were $1.74, compared with $2.16 in the year-earlier quarter and $2.11 in the third quarter of 2013. GAAP-basis net income in the recent quarter totaled $246 million, compared with $296 million and $294 million in the fourth quarter of 2012 and the third quarter of 2013, respectively. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income for the recent quarter was 1.14% and 8.93%, respectively, compared with 1.45% and 12.10%, respectively, in the year-earlier quarter and 1.39% and 11.06%, respectively, in the third quarter of 2013.

For the full year of 2013, diluted earnings per common share were $8.38, up 11% from $7.54 for 2012. Net income rose to $1.16 billion in 2013 from $1.03 billion in 2012. Expressed as a rate of return on average assets and average common shareholders’ equity, net income in 2013 was 1.39% and 11.18%, respectively, compared with 1.29% and 10.96%, respectively, in 2012.

 

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M&T BANK CORPORATION

 

Reflecting on M&T’s performance in 2013, René F. Jones, Executive Vice President and Chief Financial Officer, commented, “While expenses were elevated by investments in our infrastructure during 2013, M&T achieved a net operating return on average tangible common shareholders’ equity of 18.17% for the full year. Our core capital position strengthened, as the Tier 1 common ratio grew to 9.25% at the 2013 year-end, up 17 basis points from September 30 and 168 basis points higher than at December 31, 2012. We are also pleased with the continued improvement in credit quality. M&T’s liquidity and risk profile was enhanced during the year through several actions, including replacing less liquid investment securities with Ginnie Mae securities and the securitization of loans held in the loan portfolio. During the final two quarters of 2013 we invested heavily in several key areas, including risk management, capital planning and stress testing, regulatory compliance, and other operational and technology initiatives. Those investments will better position M&T for the future.”

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 and gains associated with merging acquired operations into M&T, since such amounts 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.

 

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M&T BANK CORPORATION

 

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 $1.79 in the recent quarter, compared with $2.23 in the year-earlier period and $2.16 in the third quarter of 2013. Net operating income for the fourth quarter of 2013 was $252 million, compared with $305 million and $301 million in the final quarter of 2012 and the third quarter of 2013, respectively. For the three months ended December 31, 2013, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.22% and 14.12%, respectively, compared with 1.56% and 20.46% in the corresponding 2012 period and 1.48% and 17.64%, respectively, in the third quarter of 2013.

For the year ended December 31, 2013, diluted net operating earnings per common share increased 10% to $8.66 from $7.88 in 2012. Net operating income for 2013 and 2012 totaled $1.20 billion and $1.07 billion, respectively. Net operating income in 2013 expressed as a rate of return on average tangible assets and average tangible common shareholders’ equity was 1.50% and 18.17%, respectively, compared with 1.40% and 19.42%, respectively, in 2012.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income aggregated $673 million in the fourth quarter of 2013, compared with $679 million in the immediately preceding quarter. That decline resulted from a five basis point narrowing of the net interest margin to 3.56% in the recent quarter from 3.61% in 2013’s third quarter, partially offset by an increase in average earning assets. Taxable-equivalent net interest income in the recent quarter was little changed from the $674 million earned in the fourth quarter of 2012. For the

 

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M&T BANK CORPORATION

 

year ended December 31, 2013, net interest income on a taxable-equivalent basis rose 3% to $2.70 billion from $2.62 billion in 2012 as a result of a $3.7 billion or 5% increase in average earning assets, partially offset by an eight basis point narrowing of the net interest margin to 3.65% in 2013 from 3.73% in 2012.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $42 million during the fourth quarter of 2013, down from $49 million in the year-earlier quarter and $48 million in the third quarter of 2013. The provision was equal to net charge-offs in the third and fourth quarters of 2013, and exceeded net charge-offs by $5 million in the fourth quarter of 2012. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .26% and .27% in the final quarter of 2013 and 2012, respectively, and .29% in 2013’s third quarter. The provision for credit losses declined 9% to $185 million for the year ended December 31, 2013 from $204 million in 2012. Net loan charge-offs for 2013 totaled $183 million, or .28% of average loans outstanding, improved from $186 million, or .30% of average loans in 2012.

Loans classified as nonaccrual declined to $871 million, or 1.36% of total loans at December 31, 2013, from $1.01 billion or 1.52% a year earlier and $916 million or 1.44% at September 30, 2013. Assets taken in foreclosure of defaulted loans were $67 million at December 31, 2013, down from $104 million and $89 million at December 31, 2012 and September 30, 2013, respectively.

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 totaled $917 million at

 

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M&T BANK CORPORATION

 

December 31, 2013, compared with $926 million a year earlier and $916 million at September 30, 2013. The allowance expressed as a percentage of outstanding loans was 1.43% at the recent quarter-end, compared with 1.39% at December 31, 2012 and 1.44% at September 30, 2013.

Noninterest Income and Expense. Noninterest income aggregated $446 million in the recently completed quarter, compared with $453 million and $477 million in the final quarter of 2012 and the third quarter of 2013, respectively. Reflected in noninterest income in the third quarter of 2013 were gains from loan securitization activities of $56 million. Net losses from investment securities of $14 million were reflected in noninterest income in the fourth quarter of 2012, due to other-than-temporary impairment charges. There were no similar gains or losses in 2013’s final quarter.

Excluding gains from securitization activities and losses from investment securities, noninterest income was $446 million in the recent quarter, compared with $468 million in the year-earlier quarter and $421 million in the third quarter of 2013. As compared with the immediately preceding quarter, the recent quarter’s improvement resulted largely from higher mortgage banking revenues, primarily related to increased servicing activities. The decline in noninterest income as compared with the final 2012 quarter was predominantly due to lower mortgage banking revenues, partially offset by higher trust income.

Noninterest income aggregated $1.87 billion and $1.67 billion during the years ended December 31, 2013 and 2012, respectively. That rise was primarily the result of net gains on investment securities and gains on securitization activities, which aggregated $110 million in 2013, compared with net losses on

 

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M&T BANK CORPORATION

 

investment securities of $48 million in 2012, supplemented by higher trust income in 2013.

Noninterest expense in the fourth quarter of 2013 totaled $703 million, up from $626 million in the year-earlier quarter and $659 million in 2013’s third quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets. Exclusive of those expenses, noninterest operating expenses were $693 million in the recent quarter, up from $612 million and $648 million in the fourth quarter of 2012 and the third quarter of 2013, respectively. The higher noninterest operating expenses in the recent quarter reflect increased costs for professional services largely associated with investments in M&T’s infrastructure related to BSA/AML compliance, capital planning and stress testing, risk management, and operational and technology initiatives. Those increases amounted to approximately $40 million when compared to the immediately preceding quarter and $50 million in comparison to the fourth quarter of 2012. The higher level of expenses in the recent quarter as compared with the year-earlier quarter also reflects salaries associated with M&T’s expanded residential mortgage loan sub-servicing activities.

For the year ended December 31, 2013, noninterest expense aggregated $2.60 billion, compared with $2.51 billion in the previous year. Noninterest operating expenses were $2.54 billion in 2013 and $2.44 billion in 2012. That increase was largely attributable to higher costs for professional services and salaries, partially offset by lower FDIC assessments.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and

 

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M&T BANK CORPORATION

 

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 61.9% in the recent quarter, compared with 53.6% in the year-earlier quarter and 56.0% in the third quarter of 2013. The efficiency ratio for the full year of 2013 was unchanged from 2012 at 56.2%.

Balance Sheet. M&T had total assets of $85.1 billion at December 31, 2013, up from $83.0 billion a year earlier. Loans and leases, net of unearned discount, totaled $64.1 billion at the 2013 year-end, compared with $66.6 billion at December 31, 2012. After considering the impact of the loan securitization transactions during 2013 and a $919 million decline in loans held for sale, M&T experienced growth in its loan portfolio from December 31, 2012 to the 2013 year-end. Total deposits were $67.1 billion at the recent year-end, $1.5 billion higher than $65.6 billion at December 31, 2012.

Total shareholders’ equity rose $1.1 billion or 11% to $11.3 billion at December 31, 2013 from $10.2 billion a year earlier, representing 13.31% and 12.29%, respectively, of total assets. Common shareholders’ equity was $10.4 billion, or $80.00 per share, at December 31, 2013, compared with $9.3 billion, or $72.73 per share, at December 31, 2012. Tangible equity per common share rose 18% to $52.64 at December 31, 2013 from $44.61 a year earlier. Common shareholders’ equity per share and tangible equity per share were $77.81 and $50.32, respectively, at September 30, 2013. 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

 

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M&T BANK CORPORATION

 

was 8.42% at December 31, 2013, compared with 7.20% and 8.11% at December 31, 2012 and September 30, 2013, respectively. M&T’s estimated Tier 1 common ratio, a regulatory capital measure, rose to 9.25% at December 31, 2013 from 7.57% and 9.08% at December 31, 2012 and September 30, 2013, respectively. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the new capital rules approved in July 2013 on a fully phased-in basis was approximately 9.01% as of December 31, 2013.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss fourth quarter and full-year 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 #31841565. The conference call will be webcast live on M&T’s website at http://ir.mandtbank.com/events.cfm. A replay of the call will be available until January 20, 2014 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #31841565. 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, 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.

 

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M&T BANK CORPORATION

 

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 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

 

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M&T BANK CORPORATION

 

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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11-11-11-11-11

 

M&T BANK CORPORATION

Financial Highlights

 

Amounts in thousands,		Three months ended December 31												Year ended December 31
except per share		2013				2012				Change				2013				2012				Change
Performance
Net income		$	245,722				296,193				-17	%		$	1,162,780				1,029,498				13	%
Net income available to common shareholders			227,449				276,605				-18	%			1,086,481				953,429				14	%
Per common share:
Basic earnings		$	1.76				2.18				-19	%		$	8.44				7.57				11	%
Diluted earnings			1.74				2.16				-19	%			8.38				7.54				11	%
Cash dividends		$	.70				.70				—			$	2.80				2.80				—
Common shares outstanding:
Average - diluted (1)			130,464				127,800				2	%			129,603				126,405				3	%
Period end (2)			130,564				128,234				2	%			130,564				128,234				2	%
Return on (annualized):
Average total assets			1.14	%			1.45	%							1.39	%			1.29	%
Average common shareholders’ equity			8.93	%			12.10	%							11.18	%			10.96	%
Taxable-equivalent net interest income		$	672,683				673,929				—			$	2,698,200				2,624,907				3	%
Yield on average earning assets			3.92	%			4.17	%							4.03	%			4.22	%
Cost of interest-bearing liabilities			.56	%			.67	%							.60	%			.74	%
Net interest spread			3.36	%			3.50	%							3.43	%			3.48	%
Contribution of interest-free funds			.20	%			.24	%							.22	%			.25	%
Net interest margin			3.56	%			3.74	%							3.65	%			3.73	%
Net charge-offs to average total net loans (annualized)			.26	%			.27	%							.28	%			.30	%
Net operating results (3)
Net operating income		$	252,097				304,657				-17	%		$	1,198,935				1,072,510				12	%
Diluted net operating earnings per common share			1.79				2.23				-20	%			8.66				7.88				10	%
Return on (annualized):
Average tangible assets			1.22	%			1.56	%							1.50	%			1.40	%
Average tangible common equity			14.12	%			20.46	%							18.17	%			19.42	%
Efficiency ratio			61.90	%			53.63	%							56.16	%			56.19	%
		At December 31
Loan quality		2013				2012				Change
Nonaccrual loans		$	871,280				1,013,176				-14	%
Real estate and other foreclosed assets			66,875				104,279				-36	%
Total nonperforming assets		$	938,155				1,117,455				-16	%
Accruing loans past due 90 days or more (4)		$	368,510				358,397				3	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	63,647				57,420				11	%
Accruing loans past due 90 days or more			297,918				316,403				-6	%
Renegotiated loans		$	257,092				271,971				-5	%
Acquired accruing loans past due 90 days or more (5)		$	129,782				166,554				-22	%
Purchased impaired loans (6):
Outstanding customer balance		$	579,975				828,571				-30	%
Carrying amount			330,792				447,114				-26	%
Nonaccrual loans to total net loans			1.36	%			1.52	%
Allowance for credit losses to total loans			1.43	%			1.39	%

 

(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 18.

(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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12-12-12-12-12

 

M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands,		December 31,				September 30,				June 30,				March 31,				December 31,
except per share		2013				2013				2013				2013				2012
Performance
Net income		$	245,722				294,479				348,466				274,113				296,193
Net income available to common shareholders			227,449				275,356				328,557				255,096				276,605
Per common share:
Basic earnings		$	1.76				2.13				2.56				2.00				2.18
Diluted earnings			1.74				2.11				2.55				1.98				2.16
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average - diluted (1)			130,464				130,265				129,017				128,636				127,800
Period end (2)			130,564				130,241				129,464				128,999				128,234
Return on (annualized):
Average total assets			1.14	%			1.39	%			1.68	%			1.36	%			1.45	%
Average common shareholders’ equity			8.93	%			11.06	%			13.78	%			11.10	%			12.10	%
Taxable-equivalent net interest income		$	672,683				679,213				683,804				662,500				673,929
Yield on average earning assets			3.92	%			3.98	%			4.10	%			4.13	%			4.17	%
Cost of interest-bearing liabilities			.56	%			.58	%			.62	%			.64	%			.67	%
Net interest spread			3.36	%			3.40	%			3.48	%			3.49	%			3.50	%
Contribution of interest-free funds			.20	%			.21	%			.23	%			.22	%			.24	%
Net interest margin			3.56	%			3.61	%			3.71	%			3.71	%			3.74	%
Net charge-offs to average total net loans (annualized)			.26	%			.29	%			.35	%			.23	%			.27	%
Net operating results (3)
Net operating income		$	252,097				300,968				360,734				285,136				304,657
Diluted net operating earnings per common share			1.79				2.16				2.65				2.06				2.23
Return on (annualized):
Average tangible assets			1.22	%			1.48	%			1.81	%			1.48	%			1.56	%
Average tangible common equity			14.12	%			17.64	%			22.72	%			18.71	%			20.46	%
Efficiency ratio			61.90	%			56.03	%			50.92	%			55.88	%			53.63	%
Loan quality		December 31, 2013				September 30, 2013				June 30, 2013				March 31, 2013				December 31, 2012
Nonaccrual loans		$	871,280				915,871				964,906				1,052,794				1,013,176
Real estate and other foreclosed assets			66,875				89,203				82,088				95,680				104,279
Total nonperforming assets		$	938,155				1,005,074				1,046,994				1,148,474				1,117,455
Accruing loans past due 90 days or more (4)		$	368,510				339,792				340,467				331,283				358,397
Government guaranteed loans included in totals above:
Nonaccrual loans		$	63,647				68,519				69,508				63,385				57,420
Accruing loans past due 90 days or more			297,918				320,732				315,281				311,579				316,403
Renegotiated loans		$	257,092				259,301				263,351				272,285				271,971
Acquired accruing loans past due 90 days or more (5)		$	129,782				153,585				155,686				157,068				166,554
Purchased impaired loans (6):
Outstanding customer balance		$	579,975				648,118				725,196				790,048				828,571
Carrying amount			330,792				357,337				394,697				425,232				447,114
Nonaccrual loans to total net loans			1.36	%			1.44	%			1.46	%			1.60	%			1.52	%
Allowance for credit losses to total loans			1.43	%			1.44	%			1.41	%			1.41	%			1.39	%

 

(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 19.

(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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13-13-13-13-13

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

		Three months ended												Year ended
		December 31												December 31
Dollars in thousands		2013				2012				Change				2013				2012				Change
Interest income		$	734,466				745,353				-1	%		$	2,957,334				2,941,685				1	%
Interest expense			67,982				77,931				-13				284,105				343,169				-17
Net interest income			666,484				667,422				—				2,673,229				2,598,516				3
Provision for credit losses			42,000				49,000				-14				185,000				204,000				-9
Net interest income after provision for credit losses			624,484				618,422				1				2,488,229				2,394,516				4
Other income
Mortgage banking revenues			82,169				116,546				-29				331,265				349,064				-5
Service charges on deposit accounts			110,436				112,364				-2				446,941				446,698				—
Trust income			125,876				116,915				8				496,008				471,852				5
Brokerage services income			15,807				14,872				6				65,647				59,059				11
Trading account and foreign exchange gains			13,690				10,356				32				40,828				35,634				15
Gain on bank investment securities			—				—				—				56,457				9				—
Other-than-temporary impairment losses recognized in earnings			—				(14,491	)			—				(9,800	)			(47,822	)			—
Equity in earnings of Bayview Lending Group LLC			(6,136	)			(4,941	)			—				(16,126	)			(21,511	)			—
Other revenues from operations			104,404				101,543				3				453,985				374,287				21
Total other income			446,246				453,164				-2				1,865,205				1,667,270				12
Other expense
Salaries and employee benefits			336,159				323,010				4				1,355,178				1,314,540				3
Equipment and net occupancy			68,670				62,884				9				264,327				257,551				3
Printing, postage and supplies			8,808				10,417				-15				39,557				41,929				-6
Amortization of core deposit and other intangible assets			10,439				13,865				-25				46,912				60,631				-23
FDIC assessments			17,574				23,398				-25				69,584				101,110				-31
Other costs of operations			261,422				192,572				36				820,327				733,499				12
Total other expense			703,072				626,146				12				2,595,885				2,509,260				3
Income before income taxes			367,658				445,440				-17				1,757,549				1,552,526				13
Applicable income taxes			121,936				149,247				-18				594,769				523,028				14
Net income		$	245,722				296,193				-17	%		$	1,162,780				1,029,498				13	%

 

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14-14-14-14-14

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
Dollars in thousands		December 31, 2013				September 30, 2013				June 30, 2013				March 31, 2013				December 31, 2012
Interest income		$	734,466				742,686				750,207				729,975				745,353
Interest expense			67,982				69,578				72,620				73,925				77,931
Net interest income			666,484				673,108				677,587				656,050				667,422
Provision for credit losses			42,000				48,000				57,000				38,000				49,000
Net interest income after provision for credit losses			624,484				625,108				620,587				618,050				618,422
Other income
Mortgage banking revenues			82,169				64,731				91,262				93,103				116,546
Service charges on deposit accounts			110,436				113,839				111,717				110,949				112,364
Trust income			125,876				123,801				124,728				121,603				116,915
Brokerage services income			15,807				16,871				17,258				15,711				14,872
Trading account and foreign exchange gains			13,690				8,987				9,224				8,927				10,356
Gain on bank investment securities			—				—				56,457				—				—
Other-than-temporary impairment losses recognized in earnings			—				—				—				(9,800	)			(14,491	)
Equity in earnings of Bayview Lending Group LLC			(6,136	)			(3,881	)			(2,453	)			(3,656	)			(4,941	)
Other revenues from operations			104,404				153,040				100,496				96,045				101,543
Total other income			446,246				477,388				508,689				432,882				453,164
Other expense
Salaries and employee benefits			336,159				339,332				323,136				356,551				323,010
Equipment and net occupancy			68,670				66,220				64,278				65,159				62,884
Printing, postage and supplies			8,808				9,752				10,298				10,699				10,417
Amortization of core deposit and other intangible assets			10,439				10,628				12,502				13,343				13,865
FDIC assessments			17,574				14,877				17,695				19,438				23,398
Other costs of operations			261,422				217,817				170,682				170,406				192,572
Total other expense			703,072				658,626				598,591				635,596				626,146
Income before income taxes			367,658				443,870				530,685				415,336				445,440
Applicable income taxes			121,936				149,391				182,219				141,223				149,247
Net income		$	245,722				294,479				348,466				274,113				296,193

 

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15-15-15-15-15

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		December 31
Dollars in thousands		2013				2012				Change
ASSETS
Cash and due from banks		$	1,573,361				1,983,615				-21	%
Interest-bearing deposits at banks			1,651,138				129,945				—
Federal funds sold and agreements to resell securities			99,573				3,000				—
Trading account assets			376,131				488,966				-23
Investment securities			8,796,497				6,074,361				45
Loans and leases:
Commercial, financial, etc			18,705,216				17,776,953				5
Real estate - commercial			26,148,208				25,993,790				1
Real estate - consumer			8,928,221				11,240,837				-21
Consumer			10,291,514				11,559,377				-11
Total loans and leases, net of unearned discount			64,073,159				66,570,957				-4
Less: allowance for credit losses			916,676				925,860				-1
Net loans and leases			63,156,483				65,645,097				-4
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			68,851				115,763				-41
Other assets			5,900,032				5,043,431				17
Total assets		$	85,146,691				83,008,803				3	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	24,661,007				24,240,802				2	%
Interest-bearing deposits			42,134,859				40,325,932				4
Deposits at Cayman Islands office			322,746				1,044,519				-69
Total deposits			67,118,612				65,611,253				2
Short-term borrowings			260,455				1,074,482				-76
Accrued interest and other liabilities			1,328,922				1,512,717				-12
Long-term borrowings			5,108,870				4,607,758				11
Total liabilities			73,816,859				72,806,210				1
Shareholders’ equity:
Preferred			881,500				872,500				1
Common (1)			10,448,332				9,330,093				12
Total shareholders’ equity			11,329,832				10,202,593				11
Total liabilities and shareholders’ equity		$	85,146,691				83,008,803				3	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $64.2 million at December 31, 2013 and $240.3 million at December 31, 2012.

 

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16-16-16-16-16

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

		December 31,				September 30,				June 30,				March 31,				December 31,
Dollars in thousands		2013				2013				2013				2013				2012
ASSETS
Cash and due from banks		$	1,573,361				1,941,944				1,350,015				1,231,091				1,983,615
Interest-bearing deposits at banks			1,651,138				1,925,811				2,555,354				1,304,770				129,945
Federal funds sold and agreements to resell securities			99,573				117,809				124,487				594,976				3,000
Trading account assets			376,131				371,370				378,235				420,144				488,966
Investment securities			8,796,497				8,309,773				5,210,526				5,660,831				6,074,361
Loans and leases:
Commercial, financial, etc			18,705,216				17,911,149				18,021,812				17,469,138				17,776,953
Real estate - commercial			26,148,208				26,345,267				26,116,394				25,944,819				25,993,790
Real estate - consumer			8,928,221				9,228,003				10,399,749				11,094,577				11,240,837
Consumer			10,291,514				10,174,623				11,433,911				11,415,733				11,559,377
Total loans and leases, net of unearned discount			64,073,159				63,659,042				65,971,866				65,924,267				66,570,957
Less: allowance for credit losses			916,676				916,370				927,065				927,117				925,860
Net loans and leases			63,156,483				62,742,672				65,044,801				64,997,150				65,645,097
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			68,851				79,290				89,918				102,420				115,763
Other assets			5,900,032				5,414,191				4,951,044				4,975,950				5,043,431
Total assets		$	85,146,691				84,427,485				83,229,005				82,811,957				83,008,803
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	24,661,007				24,150,771				24,074,815				23,603,971				24,240,802
Interest-bearing deposits			42,134,859				42,084,860				41,302,212				41,219,679				40,325,932
Deposits at Cayman Islands office			322,746				316,510				284,443				266,076				1,044,519
Total deposits			67,118,612				66,552,141				65,661,470				65,089,726				65,611,253
Short-term borrowings			260,455				246,019				307,740				374,593				1,074,482
Accrued interest and other liabilities			1,328,922				1,491,797				1,421,067				1,530,118				1,512,717
Long-term borrowings			5,108,870				5,121,326				5,122,398				5,394,563				4,607,758
Total liabilities			73,816,859				73,411,283				72,512,675				72,389,000				72,806,210
Shareholders’ equity:
Preferred			881,500				879,010				876,796				874,627				872,500
Common (1)			10,448,332				10,137,192				9,839,534				9,548,330				9,330,093
Total shareholders’ equity			11,329,832				11,016,202				10,716,330				10,422,957				10,202,593
Total liabilities and shareholders’ equity		$	85,146,691				84,427,485				83,229,005				82,811,957				83,008,803

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $64.2 million at December 31, 2013, $198.1 million at September 30, 2013, $227.8 million at June 30, 2013, $226.0 million at March 31, 2013 and $240.3 million at December 31, 2012.

 

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17-17-17-17-17

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

and Annualized Taxable-equivalent Rates

 

		Three months ended																								Change in balance December 31, 2013 from								Year ended December 31,
		December 31, 2013								December 31, 2012								September 30, 2013								December 31,				September 30,				2013								2012								Change in
Dollars in millions		Balance				Rate				Balance				Rate				Balance				Rate				2012				2013				Balance				Rate				Balance				Rate				balance
ASSETS
Interest-bearing deposits at banks		$	2,948				.25	%			273				.15	%			2,646				.25	%			982	%			11	%		$	2,139				.24	%			528				.23	%			305	%
Federal funds sold and agreements to resell securities			115				.07				3				.57				117				.08				—				-2				128				.09				4				.55				—
Trading account assets			82				1.36				97				1.45				67				1.27				-15				23				78				1.91				96				1.45				-19
Investment securities			8,354				3.32				6,295				3.31				6,979				3.31				33				20				6,615				3.32				6,969				3.44				-5
Loans and leases, net of unearned discount
Commercial, financial, etc			18,096				3.41				16,995				3.68				17,798				3.50				6				2				17,736				3.54				16,336				3.71				9
Real estate - commercial			26,231				4.48				25,332				4.50				26,129				4.51				4				—				26,083				4.53				24,907				4.50				5
Real estate - consumer			8,990				4.20				11,087				4.10				9,636				4.17				-19				-7				10,136				4.12				9,727				4.33				4
Consumer			10,233				4.60				11,597				4.69				11,295				4.57				-12				-9				11,098				4.60				11,732				4.77				-5
Total loans and leases, net			63,550				4.17				65,011				4.28				64,858				4.21				-2				-2				65,053				4.24				62,702				4.35				4
Total earning assets			75,049				3.92				71,679				4.17				74,667				3.98				5				1				74,013				4.03				70,299				4.22				5
Goodwill			3,525								3,525								3,525								—				—				3,525								3,525								—
Core deposit and other intangible assets			74								122								84								-40				-13				90								144								-37
Other assets			6,682								6,040								5,735								11				17				6,034								6,015								—
Total assets		$	85,330								81,366								84,011								5	%			2	%		$	83,662								79,983								5	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	933				.13				881				.14				924				.14				6	%			1	%		$	923				.14				856				.16				8	%
Savings deposits			38,079				.14				34,587				.19				36,990				.15				10				3				36,739				.15				33,398				.20				10
Time deposits			3,617				.51				4,727				.79				3,928				.62				-23				-8				4,045				.65				5,347				.86				-24
Deposits at Cayman Islands office			414				.21				763				.18				392				.22				-46				6				496				.21				605				.19				-18
Total interest-bearing deposits			43,043				.17				40,958				.26				42,234				.19				5				2				42,203				.20				40,206				.29				5
Short-term borrowings			287				.06				677				.16				299				.08				-58				-4				390				.11				839				.15				-54
Long-term borrowings			5,009				3.91				4,510				4.52				5,010				3.89				11				—				4,941				4.05				5,527				4.08				-11
Total interest-bearing liabilities			48,339				.56				46,145				.67				47,543				.58				5				2				47,534				.60				46,572				.74				2
Noninterest-bearing deposits			24,169								23,311								23,998								4				1				23,721								21,761								9
Other liabilities			1,713								1,805								1,589								-5				8				1,685								1,947								-13
Total liabilities			74,221								71,261								73,130								4				1				72,940								70,280								4
Shareholders’ equity			11,109								10,105								10,881								10				2				10,722								9,703								10
Total liabilities and shareholders’ equity		$	85,330								81,366								84,011								5	%			2	%		$	83,662								79,983								5	%
Net interest spread							3.36								3.50								3.40																3.43								3.48
Contribution of interest-free funds							.20								.24								.21																.22								.25
Net interest margin							3.56	%							3.74	%							3.61	%															3.65	%							3.73	%

 

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18-18-18-18-18

 

M&T BANK CORPORATION

Reconciliation of GAAP to Non-GAAP Measures

 

		Three months ended December 31								Year ended December 31
		2013				2012				2013				2012
Income statement data
In thousands, except per share
Net income
Net income		$	245,722				296,193			$	1,162,780				1,029,498
Amortization of core deposit and other intangible assets (1)			6,375				8,464				28,644				37,011
Merger-related expenses (1)			—				—				7,511				6,001
Net operating income		$	252,097				304,657			$	1,198,935				1,072,510
Earnings per common share
Diluted earnings per common share		$	1.74				2.16			$	8.38				7.54
Amortization of core deposit and other intangible assets (1)			.05				.07				.22				.29
Merger-related expenses (1)			—				—				.06				.05
Diluted net operating earnings per common share		$	1.79				2.23			$	8.66				7.88
Other expense
Other expense		$	703,072				626,146			$	2,595,885				2,509,260
Amortization of core deposit and other intangible assets			(10,439	)			(13,865	)			(46,912	)			(60,631	)
Merger-related expenses			—				—				(12,364	)			(9,879	)
Noninterest operating expense		$	692,633				612,281			$	2,536,609				2,438,750
Merger-related expenses
Salaries and employee benefits		$	—				—			$	836				4,997
Equipment and net occupancy			—				—				690				15
Printing, postage and supplies			—				—				1,825				—
Other costs of operations			—				—				9,013				4,867
Total		$	—				—			$	12,364				9,879
Efficiency ratio
Noninterest operating expense (numerator)		$	692,633				612,281			$	2,536,609				2,438,750
Taxable-equivalent net interest income			672,683				673,929				2,698,200				2,624,907
Other income			446,246				453,164				1,865,205				1,667,270
Less: Gain on bank investment securities			—				—				56,457				9
Net OTTI losses recognized in earnings			—				(14,491	)			(9,800	)			(47,822	)
Denominator		$	1,118,929				1,141,584			$	4,516,748				4,339,990
Efficiency ratio			61.90	%			53.63	%			56.16	%			56.19	%
Balance sheet data
In millions
Average assets
Average assets		$	85,330				81,366			$	83,662				79,983
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(74	)			(122	)			(90	)			(144	)
Deferred taxes			23				36				27				42
Average tangible assets		$	81,754				77,755			$	80,074				76,356
Average common equity
Average total equity		$	11,109				10,105			$	10,722				9,703
Preferred stock			(881	)			(872	)			(878	)			(869	)
Average common equity			10,228				9,233				9,844				8,834
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(74	)			(122	)			(90	)			(144	)
Deferred taxes			23				36				27				42
Average tangible common equity		$	6,652				5,622			$	6,256				5,207
At end of quarter
Total assets
Total assets		$	85,147				83,009
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(69	)			(116	)
Deferred taxes			21				34
Total tangible assets		$	81,574				79,402
Total common equity
Total equity		$	11,330				10,203
Preferred stock			(882	)			(873	)
Undeclared dividends - cumulative preferred stock			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			10,445				9,327
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(69	)			(116	)
Deferred taxes			21				34
Total tangible common equity		$	6,872				5,720

 

(1)	After any related tax effect.

 

 

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19-19-19-19-19

 

M&T BANK CORPORATION

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

 

		Three months ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2013				2013				2013				2013				2012
Income statement data
In thousands, except per share
Net income
Net income		$	245,722				294,479				348,466				274,113				296,193
Amortization of core deposit and other intangible assets (1)			6,375				6,489				7,632				8,148				8,464
Merger-related expenses (1)			—				—				4,636				2,875				—
Net operating income		$	252,097				300,968				360,734				285,136				304,657
Earnings per common share
Diluted earnings per common share		$	1.74				2.11				2.55				1.98				2.16
Amortization of core deposit and other intangible assets (1)			.05				.05				.06				.06				.07
Merger-related expenses (1)			—				—				.04				.02				—
Diluted net operating earnings per common share		$	1.79				2.16				2.65				2.06				2.23
Other expense
Other expense		$	703,072				658,626				598,591				635,596				626,146
Amortization of core deposit and other intangible assets			(10,439	)			(10,628	)			(12,502	)			(13,343	)			(13,865	)
Merger-related expenses			—				—				(7,632	)			(4,732	)			—
Noninterest operating expense		$	692,633				647,998				578,457				617,521				612,281
Merger-related expenses
Salaries and employee benefits		$	—				—				300				536				—
Equipment and net occupancy			—				—				489				201				—
Printing, postage and supplies			—				—				998				827				—
Other costs of operations			—				—				5,845				3,168				—
Total		$	—				—				7,632				4,732				—
Efficiency ratio
Noninterest operating expense (numerator)		$	692,633				647,998				578,457				617,521				612,281
Taxable-equivalent net interest income			672,683				679,213				683,804				662,500				673,929
Other income			446,246				477,388				508,689				432,882				453,164
Less: Gain on bank investment securities			—				—				56,457				—				—
Net OTTI losses recognized in earnings			—				—				—				(9,800	)			(14,491	)
Denominator		$	1,118,929				1,156,601				1,136,036				1,105,182				1,141,584
Efficiency ratio			61.90	%			56.03	%			50.92	%			55.88	%			53.63	%
Balance sheet data
In millions
Average assets
Average assets		$	85,330				84,011				83,352				81,913				81,366
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(74	)			(84	)			(95	)			(109	)			(122	)
Deferred taxes			23				25				28				32				36
Average tangible assets		$	81,754				80,427				79,760				78,311				77,755
Average common equity
Average total equity		$	11,109				10,881				10,563				10,322				10,105
Preferred stock			(881	)			(878	)			(876	)			(874	)			(872	)
Average common equity			10,228				10,003				9,687				9,448				9,233
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(74	)			(84	)			(95	)			(109	)			(122	)
Deferred taxes			23				25				28				32				36
Average tangible common equity		$	6,652				6,419				6,095				5,846				5,622
At end of quarter
Total assets
Total assets		$	85,147				84,427				83,229				82,812				83,009
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(69	)			(79	)			(90	)			(102	)			(116	)
Deferred taxes			21				24				27				30				34
Total tangible assets		$	81,574				80,847				79,641				79,215				79,402
Total common equity
Total equity		$	11,330				11,016				10,716				10,423				10,203
Preferred stock			(882	)			(879	)			(877	)			(875	)			(873	)
Undeclared dividends - cumulative preferred stock			(3	)			(4	)			(3	)			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			10,445				10,133				9,836				9,545				9,327
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(69	)			(79	)			(90	)			(102	)			(116	)
Deferred taxes			21				24				27				30				34
Total tangible common equity		$	6,872				6,553				6,248				5,948				5,720

 

(1)	After any related tax effect.

 

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