Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - M&T BANK CORP | d675274d8k.htm |
Exhibit 99.1
| INVESTOR CONTACT: | Donald J. MacLeod | FOR IMMEDIATE RELEASE: | ||
| (716) 842-5138 | February 12, 2014 |
| MEDIA CONTACT: | C. Michael Zabel | |||
| (716) 842-5385 |
M&T BANK CORPORATION ISSUES
REVISED 2013 RESULTS BASED ON LITIGATION SETTLEMENT
BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported that on February 10, 2014 it reached a settlement in the previously disclosed matter of Mennen, et al v. Mennen, Wilmington Trust Company, et al that was scheduled for a trial to commence yesterday in the Delaware Chancery Court. Following that settlement, M&T recognized an increase to its reserve for litigation as of December 31, 2013 of $40 million that reduced net income from that which M&T reported on January 17, 2014 by $24 million. The impact on diluted earnings per common share was $.18 for each of the quarter and the year ended December 31, 2013.
The effect of this increased reserve on M&T’s financial information as of and for the three months and full-year ended December 31, 2013 is included in the accompanying tables.
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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2-2-2-2-2
M&T BANK CORPORATION
Impact on Previously Reported Financial Information
| Three months ended | Year ended | |||||||||||||||
| December 31, 2013 | December 31, 2013 | |||||||||||||||
| Dollars in thousands, except per share | Initially Reported |
As Revised |
Initially Reported |
As Revised |
||||||||||||
| Other costs of operations |
$ | 261,422 | 301,422 | $ | 820,327 | 860,327 | ||||||||||
| Income before income taxes |
367,658 | 327,658 | 1,757,549 | 1,717,549 | ||||||||||||
| Applicable income taxes |
121,936 | 106,236 | 594,769 | 579,069 | ||||||||||||
| Net income |
245,722 | 221,422 | 1,162,780 | 1,138,480 | ||||||||||||
| Net income available to common shareholders |
227,449 | 203,451 | 1,086,481 | 1,062,496 | ||||||||||||
| Diluted earnings per common share |
1.74 | 1.56 | 8.38 | 8.20 | ||||||||||||
| At December 31, 2013 | ||||||||||||||||
| Initially Reported |
As Revised |
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| Other assets |
$ | 5,900,032 | 5,915,732 | |||||||||||||
| Accrued interest and other liabilities |
1,328,922 | 1,368,922 | ||||||||||||||
| Total shareholders’ equity |
11,329,832 | 11,305,532 | ||||||||||||||
| Tangible common equity to tangible assets ratio |
8.42 | % | 8.39 | % | ||||||||||||
| Estimated Tier 1 common ratio |
9.25 | % | 9.22 | % | ||||||||||||
| Estimated Common Equity Tier 1 ratio (Basel III) |
9.01 | % | 8.98 | % | ||||||||||||
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3-3-3-3-3
M&T BANK CORPORATION
Financial Highlights
| Amounts in thousands, | Three months ended December 31 |
Year ended December 31 |
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| except per share | 2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
| Performance |
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| Net income |
$ | 221,422 | 296,193 | -25 | % | $ | 1,138,480 | 1,029,498 | 11 | % | ||||||||||||||
| Net income available to common shareholders |
203,451 | 276,605 | -26 | % | 1,062,496 | 953,429 | 11 | % | ||||||||||||||||
| Per common share: |
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| Basic earnings |
$ | 1.57 | 2.18 | -28 | % | $ | 8.26 | 7.57 | 9 | % | ||||||||||||||
| Diluted earnings |
1.56 | 2.16 | -28 | % | 8.20 | 7.54 | 9 | % | ||||||||||||||||
| Cash dividends |
$ | .70 | .70 | — | $ | 2.80 | 2.80 | — | ||||||||||||||||
| Common shares outstanding: |
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| 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): |
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| Average total assets |
1.03 | % | 1.45 | % | 1.36 | % | 1.29 | % | ||||||||||||||||
| Average common shareholders’ equity |
7.99 | % | 12.10 | % | 10.93 | % | 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) |
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| Net operating income |
$ | 227,797 | 304,657 | -25 | % | $ | 1,174,635 | 1,072,510 | 10 | % | ||||||||||||||
| Diluted net operating earnings per common share |
1.61 | 2.23 | -28 | % | 8.48 | 7.88 | 8 | % | ||||||||||||||||
| Return on (annualized): |
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| Average tangible assets |
1.11 | % | 1.56 | % | 1.47 | % | 1.40 | % | ||||||||||||||||
| Average tangible common equity |
12.67 | % | 20.46 | % | 17.79 | % | 19.42 | % | ||||||||||||||||
| Efficiency ratio |
65.48 | % | 53.63 | % | 57.05 | % | 56.19 | % | ||||||||||||||||
| (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 6. |
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4-4-4-4-4
M&T BANK CORPORATION
Condensed Consolidated Statement of Income
| Three months ended December 31 |
Year ended December 31 |
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| 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 | ||||||||||||||||||
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| 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 | ||||||||||||||||||
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| Net interest income after provision for credit losses |
624,484 | 618,422 | 1 | 2,488,229 | 2,394,516 | 4 | ||||||||||||||||||
| Other income |
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| 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 | ||||||||||||||||||
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| Total other income |
446,246 | 453,164 | -2 | 1,865,205 | 1,667,270 | 12 | ||||||||||||||||||
| Other expense |
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| 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 |
301,422 | 192,572 | 57 | 860,327 | 733,499 | 17 | ||||||||||||||||||
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| Total other expense |
743,072 | 626,146 | 19 | 2,635,885 | 2,509,260 | 5 | ||||||||||||||||||
| Income before income taxes |
327,658 | 445,440 | -26 | 1,717,549 | 1,552,526 | 11 | ||||||||||||||||||
| Applicable income taxes |
106,236 | 149,247 | -29 | 579,069 | 523,028 | 11 | ||||||||||||||||||
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| Net income |
$ | 221,422 | 296,193 | -25 | % | $ | 1,138,480 | 1,029,498 | 11 | % | ||||||||||||||
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5-5-5-5-5
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
| December 31 | ||||||||||||
| Dollars in thousands | 2013 | 2012 | Change | |||||||||
| ASSETS |
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| 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: |
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| 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 | |||||||||
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| 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 | |||||||||
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| 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 |
5,915,732 | 5,043,431 | 17 | |||||||||
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| Total assets |
$ | 85,162,391 | 83,008,803 | 3 | % | |||||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| 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 | |||||||||
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| Total deposits |
67,118,612 | 65,611,253 | 2 | |||||||||
| Short-term borrowings |
260,455 | 1,074,482 | -76 | |||||||||
| Accrued interest and other liabilities |
1,368,922 | 1,512,717 | -10 | |||||||||
| Long-term borrowings |
5,108,870 | 4,607,758 | 11 | |||||||||
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| Total liabilities |
73,856,859 | 72,806,210 | 1 | |||||||||
| Shareholders’ equity: |
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| Preferred |
881,500 | 872,500 | 1 | |||||||||
| Common (1) |
10,424,032 | 9,330,093 | 12 | |||||||||
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| Total shareholders’ equity |
11,305,532 | 10,202,593 | 11 | |||||||||
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| Total liabilities and shareholders’ equity |
$ | 85,162,391 | 83,008,803 | 3 | % | |||||||
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| (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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6-6-6-6-6
M&T BANK CORPORATION
Reconciliation of GAAP to Non-GAAP Measures
| Three months ended December 31 |
Year ended December 31 |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Income statement data |
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| In thousands, except per share |
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| Net income |
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| Net income |
$ | 221,422 | 296,193 | $ | 1,138,480 | 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 | ||||||||||||
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| Net operating income |
$ | 227,797 | 304,657 | $ | 1,174,635 | 1,072,510 | ||||||||||
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| Earnings per common share |
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| Diluted earnings per common share |
$ | 1.56 | 2.16 | $ | 8.20 | 7.54 | ||||||||||
| Amortization of core deposit and other intangible assets (1) |
.05 | .07 | .22 | .29 | ||||||||||||
| Merger-related expenses (1) |
— | — | .06 | .05 | ||||||||||||
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| Diluted net operating earnings per common share |
$ | 1.61 | 2.23 | $ | 8.48 | 7.88 | ||||||||||
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| Other expense |
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| Other expense |
$ | 743,072 | 626,146 | $ | 2,635,885 | 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 | ) | ||||||||||
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| Noninterest operating expense |
$ | 732,633 | 612,281 | $ | 2,576,609 | 2,438,750 | ||||||||||
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| Merger-related expenses |
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| 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 | ||||||||||||
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| Total |
$ | — | — | $ | 12,364 | 9,879 | ||||||||||
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| Efficiency ratio |
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| Noninterest operating expense (numerator) |
$ | 732,633 | 612,281 | $ | 2,576,609 | 2,438,750 | ||||||||||
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| 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 | ) | |||||||||
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| Denominator |
$ | 1,118,929 | 1,141,584 | $ | 4,516,748 | 4,339,990 | ||||||||||
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| Efficiency ratio |
65.48 | % | 53.63 | % | 57.05 | % | 56.19 | % | ||||||||
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| Balance sheet data |
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| In millions |
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| At end of quarter |
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| Total assets |
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| Total assets |
$ | 85,162 | 83,009 | |||||||||||||
| Goodwill |
(3,525 | ) | (3,525 | ) | ||||||||||||
| Core deposit and other intangible assets |
(69 | ) | (116 | ) | ||||||||||||
| Deferred taxes |
21 | 34 | ||||||||||||||
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| Total tangible assets |
$ | 81,589 | 79,402 | |||||||||||||
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| Total common equity |
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| Total equity |
$ | 11,306 | 10,203 | |||||||||||||
| Preferred stock |
(882 | ) | (873 | ) | ||||||||||||
| Undeclared dividends - cumulative preferred stock |
(3 | ) | (3 | ) | ||||||||||||
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| Common equity, net of undeclared cumulative preferred dividends |
10,421 | 9,327 | ||||||||||||||
| Goodwill |
(3,525 | ) | (3,525 | ) | ||||||||||||
| Core deposit and other intangible assets |
(69 | ) | (116 | ) | ||||||||||||
| Deferred taxes |
21 | 34 | ||||||||||||||
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| Total tangible common equity |
$ | 6,848 | 5,720 | |||||||||||||
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| (1) | After any related tax effect. |
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