Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		July 16, 2015
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2015.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the second quarter of 2015 were $1.98, equal to the year-earlier period and 20% higher than the $1.65 recorded in the first quarter of 2015. GAAP-basis net income in the recently completed quarter totaled $287 million, up from $284 million and $242 million in the second quarter of 2014 and the initial 2015 quarter, respectively. GAAP-basis net income for the second quarter of 2015 expressed as an annualized rate of return on average assets and average common shareholders’ equity was 1.18% and 9.37%, respectively, compared with 1.27% and 9.79%, respectively, in the year-earlier quarter and 1.02% and 7.99%, respectively, in the first quarter of 2015.

The recent quarter’s results reflect two noteworthy items. In early April 2015, M&T sold the trade processing business within the retirement services division of its Institutional Client Services business. That sale resulted in an after-tax gain of approximately $23 million ($45 million pre-tax). Also during the second quarter of 2015, M&T made $40 million of tax-deductible cash contributions to The M&T Charitable Foundation. The after-tax impact of those two items lowered net income and

 

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M&T BANK CORPORATION

diluted earnings per common share during the recent quarter by approximately $1 million and $.01, respectively.

Commenting on the recent quarter’s performance, René F. Jones, Vice Chairman and Chief Financial Officer, noted, “M&T’s results for the second quarter reflect strong activity in our commercial loan portfolios, as we experienced 10% annualized growth in balances and significantly higher loan syndication fees as compared with the first quarter. Charge-offs remained at historically low levels and expenses during the quarter were again well-contained. We were pleased to make a significant contribution to The M&T Charitable Foundation, so that it may continue to support the communities we serve. M&T’s performance in the second quarter was indicative of what we do best – focusing on prudent banking practices that result in internal capital generation while striving to exceed our customers’ needs.”

For the six-month period ended June 30, 2015, diluted earnings per common share were $3.63, up from $3.59 in the year-earlier period. GAAP-basis net income for the first half of 2015 totaled $528 million, 3% higher than $513 million in the corresponding 2014 period. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income in the six-month period ended June 30, 2015 was 1.10% and 8.69%, respectively, compared with 1.17% and 9.02%, respectively, in the similar 2014 period.

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit

 

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M&T BANK CORPORATION

 

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.

Diluted net operating earnings per common share were $2.01 in the recent quarter, compared with $2.02 and $1.68 in the year-earlier quarter and the first quarter of 2015, respectively. Net operating income during each of the second quarters of 2015 and 2014 was $290 million, compared with $246 million in the initial 2015 quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income was 1.24% and 13.76%, respectively, in the second quarter of 2015. The comparable returns were 1.35% and 14.92% in the second quarter of 2014 and 1.08% and 11.90% in the first quarter of 2015.

Diluted net operating earnings per common share in the first six months of 2015 were $3.69, compared with $3.68 in the first half of 2014. Net operating income during the six-month period ended June 30, 2015 was $536 million, 2% higher than $525 million in the similar 2014 period. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.16% and 12.85%, respectively, in the first half of 2015, compared with 1.25% and 13.86%, respectively, in the first six months of 2014.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis aggregated $689 million in

 

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M&T BANK CORPORATION

 

the second quarter of 2015, up 4% from $665 million in the first quarter of 2015. That improvement reflects a $2.1 billion increase in average earning assets, including a $1.1 billion increase in average loans and an $819 million rise in average investment securities resulting from continued purchases of mortgage-backed securities. The net interest margin during each of the first two quarters of 2015 was 3.17%. Taxable-equivalent net interest income in the recent quarter was up 2% from $675 million in the year-earlier period. The effect of growth in average earning assets, predominantly due to increases of $3.2 billion in average investment securities and $3.3 billion in average loans and leases, was partially offset by a 23 basis point narrowing of the net interest margin in the recent quarter from 3.40% in the second quarter of 2014. The increases in investment securities reflect continued progress made in response to regulatory liquidity requirements that will become effective for M&T in January 2016.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $30 million in each of the second quarters of 2015 and 2014, compared with $38 million in the first quarter of 2015. Net charge-offs of loans were $21 million during the recent quarter, improved from $29 million in the second quarter of 2014 and $36 million in the first quarter of 2015. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .13% and .18% in the second quarters of 2015 and 2014, respectively, and .22% in the first quarter of 2015.

Loans classified as nonaccrual totaled $797 million, or 1.17% of total loans outstanding at June 30, 2015, compared with $880 million or 1.36% a year earlier and $791 million or 1.18% at March 31, 2015. Assets taken in foreclosure of defaulted loans were $64 million at June 30, 2015, compared with $60 million at June 30, 2014 and $63 million at March 31, 2015.

 

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M&T BANK CORPORATION

 

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 $930 million or 1.36% of loans outstanding at June 30, 2015, compared with $918 million or 1.42% of loans at June 30, 2014 and $921 million or 1.37% of loans at March 31, 2015.

Noninterest Income and Expense. Noninterest income aggregated $497 million in the second quarter of 2015, up from $456 million in the year-earlier quarter and $440 million in the first quarter of 2015. Reflected in the recent quarter’s total was the $45 million pre-tax gain realized from the sale of the trade processing business noted earlier. Revenues from the divested business, which had been recorded as trust income, aggregated $10 million in the year-ago quarter and $9 million in the first quarter of 2015. After considering the impact of the recent quarter gain and the revenues recorded in prior quarters related to the sold business, noninterest income in the recent quarter was improved from the second quarter of 2014 and from the initial 2015 quarter. As compared with the second quarter of 2014, higher mortgage banking revenues and loan syndication fees contributed to that improvement. On that same basis, the rise in noninterest income from the first quarter of 2015 was largely due to higher loan syndication fees, trust income and fees for providing deposit account services.

Noninterest expense in the second quarter of 2015 totaled $697 million, up from $668 million in the year-earlier quarter and $686 million in the first quarter of 2015. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets. Exclusive of those expenses, noninterest operating

 

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M&T BANK CORPORATION

 

expenses were $691 million in the recent quarter, compared with $658 million in the second quarter of 2014 and $680 million in 2015’s initial quarter. Reflected in operating expenses in the recent quarter was the aforementioned higher level of contribution to The M&T Charitable Foundation.

Without the impact of charitable contributions, noninterest operating expenses in the recent quarter declined from the year-earlier quarter. Higher salaries and employee benefits expenses were more than offset by lower expenses for professional services, FDIC assessments and litigation-related costs. On that same basis, as compared with the initial 2015 quarter, the recent quarter’s lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2015 period. Also contributing to the decline were reduced costs for professional services that were mitigated by higher legal fees. The lower operating expense level in the recent quarter was reflective of the noted sale of the trade processing business.

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 58.2% in each of the second quarters of 2015 and 2014, compared with 61.5% in the first quarter of 2015. Excluding the impact of the two notable items in the recent quarter, the efficiency ratio was 57.0%.

Balance Sheet. M&T had total assets of $97.1 billion at June 30, 2015, up 7% from $90.8 billion a year earlier. Investment securities were $14.8 billion at June 30, 2015, up $2.6 billion

 

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M&T BANK CORPORATION

 

or 22% from June 30, 2014. Loans and leases, net of unearned discount, totaled $68.1 billion at the recent quarter-end, up $3.4 billion or 5% from $64.7 billion at June 30, 2014. Total deposits rose 4% to $72.6 billion at June 30, 2015 from $69.8 billion a year earlier.

Total shareholders’ equity grew 4% to $12.7 billion at June 30, 2015 from $12.2 billion a year earlier, representing 13.05% and 13.40%, respectively, of total assets. Common shareholders’ equity was $11.4 billion, or $85.90 per share, at June 30, 2015, up from $10.9 billion, or $82.86 per share, at June 30, 2014. Tangible equity per common share rose 6% to $59.39 at the recent quarter-end from $55.89 a year earlier. Common shareholders’ equity per share and tangible equity per common share were $84.95 and $58.29, respectively, at March 31, 2015. In the calculation of tangible equity per common share, common shareholders’ equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the transitional capital rules that became effective for M&T on January 1, 2015 was approximately 9.92%. M&T’s estimated Tier 1 common ratio under previously effective regulatory capital rules would have been 10.11% as of June 30, 2015.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss second quarter financial results today at 10:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID# 78536183. The conference call will be webcast live through M&T’s website at

 

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M&T BANK CORPORATION

 

http://ir.mandtbank.com/events.cfm. A replay of the call will be available through Monday, July 20, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 78536183. 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.

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

 

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M&T BANK CORPORATION

 

as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries’ future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

 

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M&T BANK CORPORATION

Financial Highlights

 

		Three months ended June 30												Six months ended June 30
Amounts in thousands, except per share		2015				2014				Change				2015				2014				Change
Performance
Net income		$	286,688				284,336				1	%		$	528,301				513,353				3	%
Net income available to common shareholders			263,481				260,695				1	%			482,313				472,429				2	%
Per common share:
Basic earnings		$	1.99				1.99				—			$	3.65				3.62				1	%
Diluted earnings			1.98				1.98				—				3.63				3.59				1	%
Cash dividends		$	.70				.70				—			$	1.40				1.40				—
Common shares outstanding:
Average - diluted (1)			133,116				131,828				1	%			132,944				131,479				1	%
Period end (2)			133,099				131,953				1	%			133,099				131,953				1	%
Return on (annualized):
Average total assets			1.18	%			1.27	%							1.10	%			1.17	%
Average common shareholders’ equity			9.37	%			9.79	%							8.69	%			9.02	%
Taxable-equivalent net interest income		$	689,148				674,963				2	%		$	1,354,574				1,337,341				1	%
Yield on average earning assets			3.52	%			3.73	%							3.53	%			3.80	%
Cost of interest-bearing liabilities			.55	%			.51	%							.56	%			.53	%
Net interest spread			2.97	%			3.22	%							2.97	%			3.27	%
Contribution of interest-free funds			.20	%			.18	%							.20	%			.19	%
Net interest margin			3.17	%			3.40	%							3.17	%			3.46	%
Net charge-offs to average total net loans (annualized)			.13	%			.18	%							.17	%			.19	%
Net operating results (3)
Net operating income		$	290,341				289,974				—			$	536,117				525,136				2	%
Diluted net operating earnings per common share			2.01				2.02				—				3.69				3.68				—
Return on (annualized):
Average tangible assets			1.24	%			1.35	%							1.16	%			1.25	%
Average tangible common equity			13.76	%			14.92	%							12.85	%			13.86	%
Efficiency ratio			58.23	%			58.20	%							59.79	%			60.46	%
														At June 30
														2015				2014				Change
Loan quality
Nonaccrual loans														$	797,146				880,134				-9	%
Real estate and other foreclosed assets															63,734				59,793				7	%
Total nonperforming assets														$	860,880				939,927				-8	%
Accruing loans past due 90 days or more (4)														$	238,568				289,016				-17	%
Government guaranteed loans included in totals above:
Nonaccrual loans														$	58,259				81,817				-29	%
Accruing loans past due 90 days or more															206,775				275,846				-25	%
Renegotiated loans														$	197,145				270,223				-27	%
Acquired accruing loans past due 90 days or more (5)														$	78,591				134,580				-42	%
Purchased impaired loans (6):
Outstanding customer balance														$	294,381				504,584				-42	%
Carrying amount															169,240				282,517				-40	%
Nonaccrual loans to total net loans															1.17	%			1.36	%
Allowance for credit losses to total loans															1.36	%			1.42	%

 

(1)	Includes common stock equivalents.

(2)	Includes common stock issuable under deferred compensation plans.

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 17.

(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		June 30, 2015				March 31, 2015				December 31, 2014				September 30, 2014				June 30, 2014
Performance
Net income		$	286,688				241,613				277,549				275,344				284,336
Net income available to common shareholders			263,481				218,837				254,239				251,917				260,695
Per common share:
Basic earnings		$	1.99				1.66				1.93				1.92				1.99
Diluted earnings			1.98				1.65				1.92				1.91				1.98
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average - diluted (1)			133,116				132,769				132,278				132,128				131,828
Period end (2)			133,099				132,946				132,354				132,142				131,953
Return on (annualized):
Average total assets			1.18	%			1.02	%			1.12	%			1.17	%			1.27	%
Average common shareholders’ equity			9.37	%			7.99	%			9.10	%			9.18	%			9.79	%
Taxable-equivalent net interest income		$	689,148				665,426				687,847				674,900				674,963
Yield on average earning assets			3.52	%			3.54	%			3.44	%			3.59	%			3.73	%
Cost of interest-bearing liabilities			.55	%			.57	%			.52	%			.54	%			.51	%
Net interest spread			2.97	%			2.97	%			2.92	%			3.05	%			3.22	%
Contribution of interest-free funds			.20	%			.20	%			.18	%			.18	%			.18	%
Net interest margin			3.17	%			3.17	%			3.10	%			3.23	%			3.40	%
Net charge-offs to average total net loans (annualized)			.13	%			.22	%			.19	%			.17	%			.18	%
Net operating results (3)
Net operating income		$	290,341				245,776				281,929				279,838				289,974
Diluted net operating earnings per common share			2.01				1.68				1.95				1.94				2.02
Return on (annualized):
Average tangible assets			1.24	%			1.08	%			1.18	%			1.24	%			1.35	%
Average tangible common equity			13.76	%			11.90	%			13.55	%			13.80	%			14.92	%
Efficiency ratio			58.23	%			61.46	%			57.84	%			58.44	%			58.20	%
		June 30,				March 31,				December 31,				September 30,				June 30,
		2015				2015				2014				2014				2014
Loan quality
Nonaccrual loans		$	797,146				790,586				799,151				847,784				880,134
Real estate and other foreclosed assets			63,734				62,578				63,635				67,629				59,793
Total nonperforming assets		$	860,880				853,164				862,786				915,413				939,927
Accruing loans past due 90 days or more (4)		$	238,568				236,621				245,020				312,990				289,016
Government guaranteed loans included in totals above:
Nonaccrual loans		$	58,259				60,508				69,095				68,586				81,817
Accruing loans past due 90 days or more			206,775				193,618				217,822				265,333				275,846
Renegotiated loans		$	197,145				198,911				202,633				209,099				270,223
Acquired accruing loans past due 90 days or more (5)		$	78,591				80,110				110,367				132,147				134,580
Purchased impaired loans (6):
Outstanding customer balance		$	294,381				335,079				369,080				429,915				504,584
Carrying amount			169,240				184,018				197,737				236,662				282,517
Nonaccrual loans to total net loans			1.17	%			1.18	%			1.20	%			1.29	%			1.36	%
Allowance for credit losses to total loans			1.36	%			1.37	%			1.38	%			1.40	%			1.42	%

 

(1)	Includes common stock equivalents.

(2)	Includes common stock issuable under deferred compensation plans.

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear 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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M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

		Three months ended June 30												Six months ended June 30
Dollars in thousands		2015				2014				Change				2015				2014				Change
Interest income		$	760,354				734,290				4	%		$	1,498,441				1,457,242				3	%
Interest expense			77,226				65,176				18				155,725				131,695				18
Net interest income			683,128				669,114				2				1,342,716				1,325,547				1
Provision for credit losses			30,000				30,000				—				68,000				62,000				10
Net interest income after provision for credit losses			653,128				639,114				2				1,274,716				1,263,547				1
Other income
Mortgage banking revenues			102,602				95,656				7				204,203				175,705				16
Service charges on deposit accounts			105,257				107,368				-2				207,601				211,566				-2
Trust income			118,598				129,893				-9				242,332				251,145				-4
Brokerage services income			16,861				17,487				-4				32,322				33,987				-5
Trading account and foreign exchange gains			6,046				8,042				-25				12,277				14,489				-15
Loss on bank investment securities			(10	)			—				—				(108	)			—				—
Equity in earnings of Bayview Lending Group LLC			(3,131	)			(4,055	)			—				(7,322	)			(8,509	)			—
Other revenues from operations			150,804				102,021				48				245,925				198,136				24
Total other income			497,027				456,412				9				937,230				876,519				7
Other expense
Salaries and employee benefits			361,657				339,713				6				751,550				711,039				6
Equipment and net occupancy			66,852				68,084				-2				133,322				139,251				-4
Printing, postage and supplies			9,305				9,180				1				18,895				20,136				-6
Amortization of core deposit and other intangible assets			5,965				9,234				-35				12,758				19,296				-34
FDIC assessments			10,801				15,155				-29				21,461				30,643				-30
Other costs of operations			242,048				226,294				7				445,017				437,529				2
Total other expense			696,628				667,660				4				1,383,003				1,357,894				2
Income before income taxes			453,527				427,866				6				828,943				782,172				6
Applicable income taxes			166,839				143,530				16				300,642				268,819				12
Net income		$	286,688				284,336				1	%		$	528,301				513,353				3	%

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
Dollars in thousands		June 30, 2015				March 31, 2015				December 31, 2014				September 30, 2014				June 30, 2014
Interest income		$	760,354				738,087				756,612				743,023				734,290
Interest expense			77,226				78,499				74,772				73,964				65,176
Net interest income			683,128				659,588				681,840				669,059				669,114
Provision for credit losses			30,000				38,000				33,000				29,000				30,000
Net interest income after provision for credit losses			653,128				621,588				648,840				640,059				639,114
Other income
Mortgage banking revenues			102,602				101,601				93,675				93,532				95,656
Service charges on deposit accounts			105,257				102,344				106,319				110,071				107,368
Trust income			118,598				123,734				128,442				128,671				129,893
Brokerage services income			16,861				15,461				15,809				17,416				17,487
Trading account and foreign exchange gains			6,046				6,231				8,397				6,988				8,042
Loss on bank investment securities			(10	)			(98	)			—				—				—
Equity in earnings of Bayview Lending Group LLC			(3,131	)			(4,191	)			(4,049	)			(4,114	)			(4,055	)
Other revenues from operations			150,804				95,121				103,050				98,547				102,021
Total other income			497,027				440,203				451,643				451,111				456,412
Other expense
Salaries and employee benefits			361,657				389,893				345,135				348,776				339,713
Equipment and net occupancy			66,852				66,470				62,335				67,713				68,084
Printing, postage and supplies			9,305				9,590				8,881				9,184				9,180
Amortization of core deposit and other intangible assets			5,965				6,793				7,170				7,358				9,234
FDIC assessments			10,801				10,660				11,695				13,193				15,155
Other costs of operations			242,048				202,969				231,005				219,135				226,294
Total other expense			696,628				686,375				666,221				665,359				667,660
Income before income taxes			453,527				375,416				434,262				425,811				427,866
Applicable income taxes			166,839				133,803				156,713				150,467				143,530
Net income		$	286,688				241,613				277,549				275,344				284,336

 

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14–14–14–14–14

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		June 30
Dollars in thousands		2015				2014				Change
ASSETS
Cash and due from banks		$	1,347,858				1,827,197				-26	%
Interest-bearing deposits at banks			4,045,852				3,032,530				33
Federal funds sold			3,000				90,239				-97
Trading account assets			277,009				313,325				-12
Investment securities			14,751,637				12,120,195				22
Loans and leases:
Commercial, financial, etc.			20,111,028				19,105,892				5
Real estate - commercial			28,442,488				26,374,274				8
Real estate - consumer			8,444,542				8,656,766				-2
Consumer			11,133,194				10,610,761				5
Total loans and leases, net of unearned discount			68,131,252				64,747,693				5
Less: allowance for credit losses			929,987				917,666				1
Net loans and leases			67,201,265				63,830,027				5
Goodwill			3,513,325				3,524,625				—
Core deposit and other intangible assets			22,269				49,555				-55
Other assets			5,917,861				6,047,309				-2
Total assets		$	97,080,076				90,835,002				7	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	27,674,588				26,088,763				6	%
Interest-bearing deposits			44,787,590				43,502,602				3
Deposits at Cayman Islands office			167,441				237,890				-30
Total deposits			72,629,619				69,829,255				4
Short-term borrowings			153,299				161,631				-5
Accrued interest and other liabilities			1,453,249				1,283,430				13
Long-term borrowings			10,175,912				7,391,931				38
Total liabilities			84,412,079				78,666,247				7
Shareholders’ equity:
Preferred			1,231,500				1,231,500				—
Common (1)			11,436,497				10,937,255				5
Total shareholders’ equity			12,667,997				12,168,755				4
Total liabilities and shareholders’ equity		$	97,080,076				90,835,002				7	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $217.5 million at June 30, 2015 and accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30, 2014.

 

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15–15–15–15–15

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

		June 30,				March 31,				December 31,				September 30,				June 30,
Dollars in thousands		2015				2015				2014				2014				2014
ASSETS
Cash and due from banks		$	1,347,858				1,269,816				1,289,965				1,445,877				1,827,197
Interest-bearing deposits at banks			4,045,852				6,291,491				6,470,867				7,676,064				3,032,530
Federal funds sold			3,000				97,037				83,392				77,766				90,239
Trading account assets			277,009				363,085				308,175				296,913				313,325
Investment securities			14,751,637				14,393,270				12,993,542				13,348,368				12,120,195
Loans and leases:
Commercial, financial, etc.			20,111,028				19,775,494				19,461,292				19,112,009				19,105,892
Real estate - commercial			28,442,488				27,845,710				27,567,569				26,942,847				26,374,274
Real estate - consumer			8,444,542				8,504,119				8,657,301				8,663,408				8,656,766
Consumer			11,133,194				10,973,719				10,982,794				10,854,095				10,610,761
Total loans and leases, net of unearned discount			68,131,252				67,099,042				66,668,956				65,572,359				64,747,693
Less: allowance for credit losses			929,987				921,373				919,562				918,633				917,666
Net loans and leases			67,201,265				66,177,669				65,749,394				64,653,726				63,830,027
Goodwill			3,513,325				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			22,269				28,234				35,027				42,197				49,555
Other assets			5,917,861				6,232,556				6,230,548				6,162,806				6,047,309
Total assets		$	97,080,076				98,377,783				96,685,535				97,228,342				90,835,002
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	27,674,588				27,181,120				26,947,880				27,440,524				26,088,763
Interest-bearing deposits			44,787,590				46,234,455				46,457,591				46,659,442				43,502,602
Deposits at Cayman Islands office			167,441				178,545				176,582				241,536				237,890
Total deposits			72,629,619				73,594,120				73,582,053				74,341,502				69,829,255
Short-term borrowings			153,299				193,495				192,676				164,609				161,631
Accrued interest and other liabilities			1,453,249				1,552,724				1,567,951				1,327,524				1,283,430
Long-term borrowings			10,175,912				10,509,143				9,006,959				9,061,391				7,391,931
Total liabilities			84,412,079				85,849,482				84,349,639				84,895,026				78,666,247
Shareholders’ equity:
Preferred			1,231,500				1,231,500				1,231,500				1,231,500				1,231,500
Common (1)			11,436,497				11,296,801				11,104,396				11,101,816				10,937,255
Total shareholders’ equity			12,667,997				12,528,301				12,335,896				12,333,316				12,168,755
Total liabilities and shareholders’ equity		$	97,080,076				98,377,783				96,685,535				97,228,342				90,835,002

 

(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $217.5 million at June 30, 2015, $152.5 million at March 31, 2015 and $181.0 million at December 31, 2014, and accumulated other comprehensive income, net of applicable income tax effect, of $12.5 million at September 30, 2014 and $40.3 million at June 30, 2014.

 

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16–16–16–16–16

 

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

and Annualized Taxable-equivalent Rates

 

		Three months ended																								Change in balance								Six months ended
		June 30,								June 30,								March 31,								June 30, 2015 from								June 30
		2015								2014								2015								June 30, 2014				March 31, 2015				2015								2014								Change in balance
Dollars in millions		Balance				Rate				Balance				Rate				Balance				Rate												Balance				Rate				Balance				Rate
ASSETS
Interest-bearing deposits at banks		$	5,326				.25	%			4,080				.25	%			5,073				.25	%			31	%			5	%		$	5,200				.25	%			3,587				.25	%			45	%
Federal funds sold			39				.10				90				.07				97				.10				-57				-60				68				.10				95				.07				-28
Trading account assets			103				.92				84				1.25				79				2.87				23				31				91				1.76				78				1.91				17
Investment securities			14,195				2.68				10,959				3.19				13,376				2.67				30				6				13,787				2.67				10,117				3.26				36
Loans and leases, net of unearned discount
Commercial, financial, etc.			19,973				3.18				18,978				3.34				19,457				3.21				5				3				19,717				3.19				18,728				3.35				5
Real estate - commercial			28,208				4.19				26,140				4.22				27,596				4.18				8				2				27,904				4.18				26,141				4.31				7
Real estate - consumer			8,447				4.19				8,746				4.36				8,572				4.15				-3				-1				8,509				4.17				8,795				4.27				-3
Consumer			11,042				4.46				10,479				4.52				10,962				4.49				5				1				11,002				4.48				10,390				4.56				6
Total loans and leases, net			67,670				3.96				64,343				4.05				66,587				3.97				5				2				67,132				3.97				64,054				4.09				5
Total earning assets			87,333				3.52				79,556				3.73				85,212				3.54				10				2				86,278				3.53				77,931				3.80				11
Goodwill			3,514								3,525								3,525								—				—				3,520								3,525								—
Core deposit and other intangible assets			25								53								31								-54				-21				28								59								-52
Other assets			6,726								6,739								7,124								—				-6				6,924								6,763								2
Total assets		$	97,598								89,873								95,892								9	%			2	%		$	96,750								88,278								10	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	1,333				.11				1,026				.13				1,121				.11				30	%			19	%		$	1,228				.11				1,007				.13				22	%
Savings deposits			41,712				.10				39,478				.11				41,525				.10				6				—				41,619				.10				38,921				.12				7
Time deposits			2,948				.50				3,350				.46				3,017				.50				-12				-2				2,982				.50				3,404				.46				-12
Deposits at Cayman Islands office			212				.28				339				.21				224				.27				-38				-5				218				.27				360				.22				-39
Total interest-bearing deposits			46,205				.13				44,193				.14				45,887				.13				5				1				46,047				.13				43,692				.15				5
Short-term borrowings			195				.07				220				.05				196				.07				-11				-1				196				.07				242				.05				-19
Long-term borrowings			10,164				2.47				6,525				3.05				9,835				2.64				56				3				10,000				2.55				6,213				3.25				61
Total interest-bearing liabilities			56,564				.55				50,938				.51				55,918				.57				11				1				56,243				.56				50,147				.53				12
Noninterest-bearing deposits			26,753								25,466								25,811								5				4				26,285								24,807								6
Other liabilities			1,645								1,430								1,704								15				-3				1,674								1,479								13
Total liabilities			84,962								77,834								83,433								9				2				84,202								76,433								10
Shareholders’ equity			12,636								12,039								12,459								5				1				12,548								11,845								6
Total liabilities and shareholders’ equity		$	97,598								89,873								95,892								9	%			2	%		$	96,750								88,278								10	%
Net interest spread							2.97								3.22								2.97																2.97								3.27
Contribution of interest-free funds							.20								.18								.20																.20								.19
Net interest margin							3.17	%							3.40	%							3.17	%															3.17	%							3.46	%

 

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17–17–17–17–17

 

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended June 30								Six months ended June 30
		2015				2014				2015				2014
Income statement data
In thousands, except per share
Net income
Net income		$	286,688				284,336			$	528,301				513,353
Amortization of core deposit and other intangible assets (1)			3,653				5,638				7,816				11,783
Net operating income		$	290,341				289,974			$	536,117				525,136
Earnings per common share
Diluted earnings per common share		$	1.98				1.98			$	3.63				3.59
Amortization of core deposit and other intangible assets (1)			.03				.04				.06				.09
Diluted net operating earnings per common share		$	2.01				2.02			$	3.69				3.68
Other expense
Other expense		$	696,628				667,660			$	1,383,003				1,357,894
Amortization of core deposit and other intangible assets			(5,965	)			(9,234	)			(12,758	)			(19,296	)
Noninterest operating expense		$	690,663				658,426			$	1,370,245				1,338,598
Efficiency ratio
Noninterest operating expense (numerator)		$	690,663				658,426			$	1,370,245				1,338,598
Taxable-equivalent net interest income			689,148				674,963				1,354,574				1,337,341
Other income			497,027				456,412				937,230				876,519
Less: Loss on bank investment securities			(10	)			—				(108	)			—
Denominator		$	1,186,185				1,131,375			$	2,291,912				2,213,860
Efficiency ratio			58.23	%			58.20	%			59.79	%			60.46	%
Balance sheet data
In millions
Average assets
Average assets		$	97,598				89,873			$	96,750				88,278
Goodwill			(3,514	)			(3,525	)			(3,520	)			(3,525	)
Core deposit and other intangible assets			(25	)			(53	)			(28	)			(59	)
Deferred taxes			8				16				9				18
Average tangible assets		$	94,067				86,311			$	93,211				84,712
Average common equity
Average total equity		$	12,636				12,039			$	12,548				11,845
Preferred stock			(1,232	)			(1,231	)			(1,232	)			(1,152	)
Average common equity			11,404				10,808				11,316				10,693
Goodwill			(3,514	)			(3,525	)			(3,520	)			(3,525	)
Core deposit and other intangible assets			(25	)			(53	)			(28	)			(59	)
Deferred taxes			8				16				9				18
Average tangible common equity		$	7,873				7,246			$	7,777				7,127
At end of quarter
Total assets
Total assets		$	97,080				90,835
Goodwill			(3,513	)			(3,525	)
Core deposit and other intangible assets			(22	)			(49	)
Deferred taxes			7				15
Total tangible assets		$	93,552				87,276
Total common equity
Total equity		$	12,668				12,169
Preferred stock			(1,232	)			(1,232	)
Undeclared dividends - cumulative preferred stock			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			11,433				10,934
Goodwill			(3,513	)			(3,525	)
Core deposit and other intangible assets			(22	)			(49	)
Deferred taxes			7				15
Total tangible common equity		$	7,905				7,375

 

(1)	After any related tax effect.

 

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18–18–18–18–18

 

M&T BANK CORPORATION

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

 

		Three months ended
		June 30, 2015				March 31, 2015				December 31, 2014				September 30, 2014				June 30, 2014
Income statement data
In thousands, except per share
Net income
Net income		$	286,688				241,613				277,549				275,344				284,336
Amortization of core deposit and other intangible assets (1)			3,653				4,163				4,380				4,494				5,638
Net operating income		$	290,341				245,776				281,929				279,838				289,974
Earnings per common share
Diluted earnings per common share		$	1.98				1.65				1.92				1.91				1.98
Amortization of core deposit and other intangible assets (1)			.03				.03				.03				.03				.04
Diluted net operating earnings per common share		$	2.01				1.68				1.95				1.94				2.02
Other expense
Other expense		$	696,628				686,375				666,221				665,359				667,660
Amortization of core deposit and other intangible assets			(5,965	)			(6,793	)			(7,170	)			(7,358	)			(9,234	)
Noninterest operating expense		$	690,663				679,582				659,051				658,001				658,426
Efficiency ratio
Noninterest operating expense (numerator)		$	690,663				679,582				659,051				658,001				658,426
Taxable-equivalent net interest income			689,148				665,426				687,847				674,900				674,963
Other income			497,027				440,203				451,643				451,111				456,412
Less: Loss on bank investment securities			(10	)			(98	)			—				—				—
Denominator		$	1,186,185				1,105,727				1,139,490				1,126,011				1,131,375
Efficiency ratio			58.23	%			61.46	%			57.84	%			58.44	%			58.20	%
Balance sheet data
In millions
Average assets
Average assets		$	97,598				95,892				98,644				93,245				89,873
Goodwill			(3,514	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(25	)			(31	)			(38	)			(45	)			(53	)
Deferred taxes			8				10				12				14				16
Average tangible assets		$	94,067				92,346				95,093				89,689				86,311
Average common equity
Average total equity		$	12,636				12,459				12,442				12,247				12,039
Preferred stock			(1,232	)			(1,232	)			(1,231	)			(1,232	)			(1,231	)
Average common equity			11,404				11,227				11,211				11,015				10,808
Goodwill			(3,514	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(25	)			(31	)			(38	)			(45	)			(53	)
Deferred taxes			8				10				12				14				16
Average tangible common equity		$	7,873				7,681				7,660				7,459				7,246
At end of quarter
Total assets
Total assets		$	97,080				98,378				96,686				97,228				90,835
Goodwill			(3,513	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(22	)			(28	)			(35	)			(42	)			(49	)
Deferred taxes			7				9				11				13				15
Total tangible assets		$	93,552				94,834				93,137				93,674				87,276
Total common equity
Total equity		$	12,668				12,528				12,336				12,333				12,169
Preferred stock			(1,232	)			(1,232	)			(1,231	)			(1,232	)			(1,232	)
Undeclared dividends - cumulative preferred stock			(3	)			(2	)			(3	)			(2	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			11,433				11,294				11,102				11,099				10,934
Goodwill			(3,513	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(22	)			(28	)			(35	)			(42	)			(49	)
Deferred taxes			7				9				11				13				15
Total tangible common equity		$	7,905				7,750				7,553				7,545				7,375

 

(1)	After any related tax effect.

 

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