Exhibit 99.1

 

INVESTOR CONTACT:		Donald J. MacLeod (716) 842-5138		FOR IMMEDIATE RELEASE: October 19, 2016
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES THIRD QUARTER RESULTS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2016.

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

 

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M&T BANK CORPORATION

 

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

For the first nine months of 2016, diluted earnings per common share were $5.80, up 4% from $5.56 in the corresponding period of 2015. GAAP-basis net income for the nine-month period ended September 30, 2016 aggregated $985 million, 22% higher than $809 million in the year-earlier period. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income for the first nine months of 2016 was 1.06% and 8.17%, respectively, compared with 1.11% and 8.77%, respectively, in the similar 2015 period.

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

 

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M&T BANK CORPORATION

 

income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

Diluted net operating earnings per common share were $2.13 in the third quarter of 2016, up 9% from $1.95 in the year-earlier quarter and up 3% from $2.07 in the second quarter of 2016. Net operating income during the recent quarter was $356 million, compared with $283 million in the third quarter of 2015 and $351 million in 2016’s second quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income was 1.18% and 12.77%, respectively, in the recent quarter, 1.18% and 12.98%, respectively, in the third quarter of 2015 and 1.18% and 12.68%, respectively, in the second quarter of 2016.

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

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $865 million in the third quarter of 2016, up 24% from $699 million in the year-earlier quarter. Contributing to that improvement was a 28% increase in average earning assets, which grew to $112.9 billion

 

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M&T BANK CORPORATION

 

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

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

Loans classified as nonaccrual totaled $837 million, or .93% of total loans outstanding at September 30, 2016 and $849 million or

 

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M&T BANK CORPORATION

 

.96% at June 30, 2016, compared with $787 million or 1.15% at September 30, 2015. The higher level of nonaccrual loans at the two most recent quarter-ends as compared with September 30, 2015 reflects the normal migration of previously performing loans obtained in the acquisition of Hudson City that became past due over 90 days during the first nine months of 2016, and, as such, were not identifiable as purchased impaired as of the acquisition date. Assets taken in foreclosure of defaulted loans totaled $160 million at September 30, 2016, compared with $66 million a year earlier and $172 million at June 30, 2016. The higher level of such assets at the two most recent quarter-ends as compared with September 30, 2015 also resulted from residential real estate properties associated with the Hudson City acquisition.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. As a result of those analyses, the allowance for credit losses totaled $976 million or 1.09% of loans outstanding at September 30, 2016, compared with $970 million or 1.10% at June 30, 2016 and $934 million or 1.36% at September 30, 2015. The lower ratios at June 30 and September 30, 2016 as compared with September 30, 2015 reflect the impact of residential real estate loans acquired in the Hudson City transaction.

Noninterest Income and Expense. Noninterest income totaled $491 million in the recent quarter, up from $440 million in the third quarter of 2015 and $448 million in the second quarter of 2016. Reflected in noninterest income in the recent quarter were $28 million of pre-tax net gains from the sale of investment securities that had been obtained in acquisitions. There were no significant gains or losses on investment securities in the third quarter of 2015 or in the second quarter of 2016. In addition to

 

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M&T BANK CORPORATION

 

the investment securities gains, mortgage banking revenues also contributed to the rise in noninterest income as compared with the two earlier quarters.

Noninterest expense in the third quarter of 2016 totaled $752 million, compared with $750 million in the second quarter of 2016 and $654 million in the third quarter of 2015. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of those expenses, noninterest operating expenses were $743 million in the recent quarter, $726 million in the second quarter of 2016 and $650 million in the third quarter of 2015. Contributing to the higher level of operating expenses in the two most recent quarters as compared with the third quarter of 2015 was the impact of operations obtained in the Hudson City acquisition. As compared with the second quarter of 2016, the higher level of operating expenses in the recent quarter reflects increased FDIC assessments and higher advertising and promotion costs.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio was 55.9% in the recent quarter, 57.1% in the year-earlier quarter and 55.1% in the second quarter of 2016.

Balance Sheet. M&T had total assets of $126.8 billion at September 30, 2016 and $123.8 billion at June 30, 2016, up from $97.8 billion at September 30, 2015. Loans and leases, net of unearned discount, totaled $89.6 billion at September 30, 2016, $21.1 billion or 31% above $68.5 billion a year earlier and up

 

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M&T BANK CORPORATION

 

an annualized 5% from $88.5 billion at June 30, 2016. During the recent quarter, loans to commercial customers grew $1.8 billion, while residential real estate loans, largely comprised of mortgage loans obtained in the Hudson City acquisition, declined $946 million. Total deposits increased to $98.1 billion at the recent quarter-end from $72.9 billion at September 30, 2015 and $94.7 billion at June 30, 2016.

Total shareholders’ equity rose 26% to $16.3 billion at September 30, 2016 from $12.9 billion a year earlier, representing 12.88% and 13.21%, respectively, of total assets. Common shareholders’ equity was $15.1 billion, or $97.47 per share, at September 30, 2016, compared with $11.7 billion, or $87.67 per share, at September 30, 2015. Tangible equity per common share of $67.42 at September 30, 2016 was up 10% from $61.22 at September 30, 2015. Common shareholders’ equity per share and tangible equity per common share were $96.49 and $66.95, respectively, at June 30, 2016. In the calculation of tangible equity per common share, common shareholders’ equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 10.76% at September 30, 2016.

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

 

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M&T BANK CORPORATION

 

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID #87013497. The conference call will be webcast live through M&T’s website at http://ir.mandtbank.com/events.cfm. A replay of the call will be available through Saturday, October 22, 2016 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #87013497. The event will also be archived and available by 7:00 p.m. today on M&T’s website at http://ir.mandtbank.com/events.cfm.

M&T is a financial holding company headquartered in Buffalo, New York. M&T’s principal banking subsidiary, M&T Bank, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia. Trust-related services are provided by M&T’s Wilmington Trust-affiliated companies and by M&T Bank.

Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T’s business, management’s beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

 

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M&T BANK CORPORATION

 

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries’ future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

 

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M&T BANK CORPORATION

 

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 September 30												Nine months ended September 30
Amounts in thousands, except per share		2016				2015				Change				2016				2015				Change
Performance
Net income		$	349,984				280,401				25	%		$	984,543				808,702				22	%
Net income available to common shareholders			326,998				257,346				27	%			915,686				739,656				24	%
Per common share:
Basic earnings		$	2.10				1.94				8	%		$	5.82				5.59				4	%
Diluted earnings			2.10				1.93				9	%			5.80				5.56				4	%
Cash dividends		$	.70				.70				—			$	2.10				2.10				—
Common shares outstanding:
Average—diluted (1)			156,026				133,376				17	%			157,843				133,089				19	%
Period end (2)			154,987				133,311				16	%			154,987				133,311				16	%
Return on (annualized):
Average total assets			1.12	%			1.13	%							1.06	%			1.11	%
Average common shareholders' equity			8.68	%			8.93	%							8.17	%			8.77	%
Taxable-equivalent net interest income		$	865,065				699,075				24	%		$	2,613,702				2,053,649				27	%
Yield on average earning assets			3.44	%			3.48	%							3.50	%			3.51	%
Cost of interest-bearing liabilities			.59	%			.55	%							.56	%			.55	%
Net interest spread			2.85	%			2.93	%							2.94	%			2.96	%
Contribution of interest-free funds			.20	%			.21	%							.18	%			.20	%
Net interest margin			3.05	%			3.14	%							3.12	%			3.16	%
Net charge-offs to average total net loans (annualized)			.19	%			.24	%							.16	%			.19	%
Net operating results (3)
Net operating income		$	355,929				282,907				26	%		$	1,026,597				819,024				25	%
Diluted net operating earnings per common share			2.13				1.95				9	%			6.07				5.64				8	%
Return on (annualized):
Average tangible assets			1.18	%			1.18	%							1.15	%			1.17	%
Average tangible common equity			12.77	%			12.98	%							12.36	%			12.89	%
Efficiency ratio			55.92	%			57.05	%							55.99	%			58.88	%
		At September 30
Loan quality		2016				2015				Change
Nonaccrual loans		$	837,362				787,098				6	%
Real estate and other foreclosed assets			159,881				66,144				142	%
Total nonperforming assets		$	997,243				853,242				17	%
Accruing loans past due 90 days or more (4)		$	317,282				231,465				37	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	47,130				48,955				-4	%
Accruing loans past due 90 days or more			282,077				193,998				45	%
Renegotiated loans		$	217,559				189,639				15	%
Accruing loans acquired at a discount past due 90 days or more (5)		$	65,182				80,827				-19	%
Purchased impaired loans (6):
Outstanding customer balance		$	981,105				278,979				252	%
Carrying amount			616,991				149,421				313	%
Nonaccrual loans to total net loans			.93	%			1.15	%
Allowance for credit losses to total loans			1.09	%			1.36	%

 

(1)	Includes common stock equivalents.

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

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 18.

(4)	Excludes loans acquired at a discount.

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

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

 

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M&T BANK CORPORATION

 

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands, except per share		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Performance
Net income		$	349,984				336,031				298,528				270,965				280,401
Net income available to common shareholders			326,998				312,974				275,748				248,059				257,346
Per common share:
Basic earnings		$	2.10				1.98				1.74				1.65				1.94
Diluted earnings			2.10				1.98				1.73				1.65				1.93
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average—diluted (1)			156,026				158,341				159,181				150,718				133,376
Period end (2)			154,987				157,917				159,156				159,600				133,311
Return on (annualized):
Average total assets			1.12	%			1.09	%			.97	%			.93	%			1.13	%
Average common shareholders' equity			8.68	%			8.38	%			7.44	%			7.22	%			8.93	%
Taxable-equivalent net interest income		$	865,065				870,341				878,296				813,401				699,075
Yield on average earning assets			3.44	%			3.51	%			3.54	%			3.48	%			3.48	%
Cost of interest-bearing liabilities			.59	%			.56	%			.53	%			.54	%			.55	%
Net interest spread			2.85	%			2.95	%			3.01	%			2.94	%			2.93	%
Contribution of interest-free funds			.20	%			.18	%			.17	%			.18	%			.21	%
Net interest margin			3.05	%			3.13	%			3.18	%			3.12	%			3.14	%
Net charge-offs to average total net loans (annualized)			.19	%			.11	%			.19	%			.18	%			.24	%
Net operating results (3)
Net operating income		$	355,929				350,604				320,064				337,613				282,907
Diluted net operating earnings per common share			2.13				2.07				1.87				2.09				1.95
Return on (annualized):
Average tangible assets			1.18	%			1.18	%			1.09	%			1.21	%			1.18	%
Average tangible common equity			12.77	%			12.68	%			11.62	%			13.26	%			12.98	%
Efficiency ratio			55.92	%			55.06	%			57.00	%			55.53	%			57.05	%
Loan quality		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Nonaccrual loans		$	837,362				848,855				876,691				799,409				787,098
Real estate and other foreclosed assets			159,881				172,473				188,004				195,085				66,144
Total nonperforming assets		$	997,243				1,021,328				1,064,695				994,494				853,242
Accruing loans past due 90 days or more (4)		$	317,282				298,449				336,170				317,441				231,465
Government guaranteed loans included in totals above:
Nonaccrual loans		$	47,130				52,486				49,688				47,052				48,955
Accruing loans past due 90 days or more			282,077				269,962				279,340				276,285				193,998
Renegotiated loans		$	217,559				211,159				200,771				182,865				189,639
Accruing loans acquired at a discount past due 90 days or more (5)		$	65,182				68,591				61,767				68,473				80,827
Purchased impaired loans (6):
Outstanding customer balance		$	981,105				1,040,678				1,124,776				1,204,004				278,979
Carrying amount			616,991				662,059				715,874				768,329				149,421
Nonaccrual loans to total net loans			.93	%			.96	%			1.00	%			.91	%			1.15	%
Allowance for credit losses to total loans			1.09	%			1.10	%			1.10	%			1.09	%			1.36	%

 

(1)	Includes common stock equivalents.

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

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 19.

(4)	Excludes loans acquired at a discount.

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

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

 

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M&T BANK CORPORATION

 

Condensed Consolidated Statement of Income

 

		Three months ended September 30												Nine months ended September 30
Dollars in thousands		2016				2015				Change				2016				2015				Change
Interest income		$	969,515				770,026				26	%		$	2,912,970				2,268,467				28	%
Interest expense			111,175				77,199				44				318,847				232,924				37
Net interest income			858,340				692,827				24				2,594,123				2,035,543				27
Provision for credit losses			47,000				44,000				7				128,000				112,000				14
Net interest income after provision for credit losses			811,340				648,827				25				2,466,123				1,923,543				28
Other income
Mortgage banking revenues			103,747				84,035				23				275,193				288,238				-5
Service charges on deposit accounts			107,935				107,259				1				314,212				314,860				—
Trust income			118,654				113,744				4				350,181				356,076				-2
Brokerage services income			15,914				16,902				-6				48,190				49,224				-2
Trading account and foreign exchange gains			12,754				8,362				53				33,434				20,639				62
Gain (loss) on bank investment securities			28,480				—				—				28,748				(108	)			—
Other revenues from operations			103,866				109,397				-5				310,579				348,000				-11
Total other income			491,350				439,699				12				1,360,537				1,376,929				-1
Other expense
Salaries and employee benefits			399,786				363,567				10				1,230,246				1,115,117				10
Equipment and net occupancy			75,263				68,470				10				225,165				201,792				12
Printing, postage and supplies			8,972				8,691				3				30,865				27,586				12
Amortization of core deposit and other intangible assets			9,787				4,090				139				33,524				16,848				99
FDIC assessments			28,459				11,090				157				76,054				32,551				134
Other costs of operations			230,125				197,908				16				682,528				642,925				6
Total other expense			752,392				653,816				15				2,278,382				2,036,819				12
Income before income taxes			550,298				434,710				27				1,548,278				1,263,653				23
Applicable income taxes			200,314				154,309				30				563,735				454,951				24
Net income		$	349,984				280,401				25	%		$	984,543				808,702				22	%

 

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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		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Interest income		$	969,515				970,621				972,834				902,377				770,026
Interest expense			111,175				106,802				100,870				95,333				77,199
Net interest income			858,340				863,819				871,964				807,044				692,827
Provision for credit losses			47,000				32,000				49,000				58,000				44,000
Net interest income after provision for credit losses			811,340				831,819				822,964				749,044				648,827
Other income
Mortgage banking revenues			103,747				89,383				82,063				87,500				84,035
Service charges on deposit accounts			107,935				103,872				102,405				105,748				107,259
Trust income			118,654				120,450				111,077				114,564				113,744
Brokerage services income			15,914				16,272				16,004				15,546				16,902
Trading account and foreign exchange gains			12,754				13,222				7,458				9,938				8,362
Gain (loss) on bank investment securities			28,480				264				4				(22	)			—
Other revenues from operations			103,866				104,791				101,922				114,834				109,397
Total other income			491,350				448,254				420,933				448,108				439,699
Other expense
Salaries and employee benefits			399,786				398,675				431,785				434,413				363,567
Equipment and net occupancy			75,263				75,724				74,178				70,747				68,470
Printing, postage and supplies			8,972				9,907				11,986				10,905				8,691
Amortization of core deposit and other intangible assets			9,787				11,418				12,319				9,576				4,090
FDIC assessments			28,459				22,370				25,225				19,562				11,090
Other costs of operations			230,125				231,801				220,602				240,910				197,908
Total other expense			752,392				749,895				776,095				786,113				653,816
Income before income taxes			550,298				530,178				467,802				411,039				434,710
Applicable income taxes			200,314				194,147				169,274				140,074				154,309
Net income		$	349,984				336,031				298,528				270,965				280,401

 

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15-15-15-15-15

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet

 

		September 30
Dollars in thousands		2016				2015				Change
ASSETS
Cash and due from banks		$	1,332,202				1,249,704				7	%
Interest-bearing deposits at banks			10,777,636				4,713,266				129
Trading account assets			488,588				340,710				43
Investment securities			14,733,574				14,494,539				2
Loans and leases:
Commercial, financial, etc			21,917,163				20,233,177				8
Real estate—commercial			32,078,762				28,720,537				12
Real estate—consumer			23,584,420				8,211,062				187
Consumer			12,066,147				11,375,472				6
Total loans and leases, net of unearned discount			89,646,492				68,540,248				31
Less: allowance for credit losses			976,121				933,798				5
Net loans and leases			88,670,371				67,606,450				31
Goodwill			4,593,112				3,513,325				31
Core deposit and other intangible assets			106,744				18,179				487
Other assets			6,138,801				5,860,889				5
Total assets		$	126,841,028				97,797,062				30	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits		$	33,127,627				28,189,330				18	%
Interest-bearing deposits			64,786,035				44,549,028				45
Deposits at Cayman Islands office			223,183				206,185				8
Total deposits			98,136,845				72,944,543				35
Short-term borrowings			213,846				173,783				23
Accrued interest and other liabilities			1,938,201				1,582,513				22
Long-term borrowings			10,211,160				10,174,289				—
Total liabilities			110,500,052				84,875,128				30
Shareholders' equity:
Preferred			1,231,500				1,231,500				—
Common (1)			15,109,476				11,690,434				29
Total shareholders' equity			16,340,976				12,921,934				26
Total liabilities and shareholders' equity		$	126,841,028				97,797,062				30	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $114.6 million at September 30, 2016 and $163.5 million at September 30, 2015.

 

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16-16-16-16-16

M&T BANK CORPORATION

 

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

Dollars in thousands		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
ASSETS
Cash and due from banks		$	1,332,202				1,284,442				1,178,175				1,368,040				1,249,704
Interest-bearing deposits at banks			10,777,636				8,474,839				9,545,181				7,594,350				4,713,266
Trading account assets			488,588				506,131				467,987				273,783				340,710
Investment securities			14,733,574				14,963,084				15,467,320				15,656,439				14,494,539
Loans and leases:
Commercial, financial, etc.			21,917,163				21,469,242				21,226,577				20,422,338				20,233,177
Real estate—commercial			32,078,762				30,711,230				29,713,293				29,197,311				28,720,537
Real estate—consumer			23,584,420				24,530,249				25,299,638				26,270,103				8,211,062
Consumer			12,066,147				11,811,277				11,632,958				11,599,747				11,375,472
Total loans and leases, net of unearned discount			89,646,492				88,521,998				87,872,466				87,489,499				68,540,248
Less: allowance for credit losses			976,121				970,496				962,752				955,992				933,798
Net loans and leases			88,670,371				87,551,502				86,909,714				86,533,507				67,606,450
Goodwill			4,593,112				4,593,112				4,593,112				4,593,112				3,513,325
Core deposit and other intangible assets			106,744				116,531				127,949				140,268				18,179
Other assets			6,138,801				6,330,943				6,336,194				6,628,385				5,860,889
Total assets		$	126,841,028				123,820,584				124,625,632				122,787,884				97,797,062
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits		$	33,127,627				30,700,066				29,709,218				29,110,635				28,189,330
Interest-bearing deposits			64,786,035				63,756,514				64,338,571				62,677,036				44,549,028
Deposits at Cayman Islands office			223,183				193,523				166,787				170,170				206,185
Total deposits			98,136,845				94,650,103				94,214,576				91,957,841				72,944,543
Short-term borrowings			213,846				407,123				1,766,826				2,132,182				173,783
Accrued interest and other liabilities			1,938,201				1,963,093				1,948,142				1,870,714				1,582,513
Long-term borrowings			10,211,160				10,328,751				10,341,035				10,653,858				10,174,289
Total liabilities			110,500,052				107,349,070				108,270,579				106,614,595				84,875,128
Shareholders' equity:
Preferred			1,231,500				1,231,500				1,231,500				1,231,500				1,231,500
Common (1)			15,109,476				15,240,014				15,123,553				14,941,789				11,690,434
Total shareholders' equity			16,340,976				16,471,514				16,355,053				16,173,289				12,921,934
Total liabilities and shareholders' equity		$	126,841,028				123,820,584				124,625,632				122,787,884				97,797,062

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $114.6 million at September 30, 2016, $101.0 million at June 30, 2016, $150.2 million at March 31, 2016, $251.6 million at December 31, 2015 and $163.5 million at September 30, 2015.

 

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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 September 30, 2016 from								Nine months ended September 30																Change in balance
		September 30,								September 30,								June 30,
Dollars in millions		2016								2015								2016								September 30,				June 30,				2016								2015
		Balance				Rate				Balance				Rate				Balance				Rate				2015				2016				Balance				Rate				Balance				Rate
ASSETS
Interest-bearing deposits at banks		$	9,681				.51	%			6,060				.25	%			8,711				.51	%			60	%			11	%		$	8,864				.51	%			5,490				.25	%			61	%
Federal funds sold			—				—				—				—				—				—				—				—				—				—				45				.10				—
Trading account assets			90				1.52				96				.52				92				1.58				-6				-2				89				1.62				93				1.34				-4
Investment securities			14,361				2.38				14,441				2.60				14,914				2.49				-1				-4				14,873				2.49				14,008				2.65				6
Loans and leases, net of unearned discount
Commercial, financial, etc.			21,480				3.44				19,939				3.22				21,450				3.47				8				—				21,216				3.43				19,791				3.20				7
Real estate—commercial			31,252				4.00				28,309				4.18				30,134				4.09				10				4				30,274				4.08				28,040				4.18				8
Real estate—consumer			24,058				3.92				8,348				4.17				24,858				3.94				188				-3				24,922				3.93				8,455				4.17				195
Consumer			11,942				4.55				11,253				4.46				11,713				4.55				6				2				11,747				4.55				11,087				4.47				6
Total loans and leases, net			88,732				3.93				67,849				3.96				88,155				3.99				31				1				88,159				3.97				67,373				3.96				31
Total earning assets			112,864				3.44				88,446				3.48				111,872				3.51				28				1				111,985				3.50				87,009				3.51				29
Goodwill			4,593								3,513								4,593								31				—				4,593								3,517								31
Core deposit and other intangible assets			112								20								122								453				-8				123								26								380
Other assets			7,156								6,536								7,119								9				1				7,196								6,793								6
Total assets		$	124,725								98,515								123,706								27	%			1	%		$	123,897								97,345								27	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
Interest-checking deposits		$	1,222				.12				1,309				.11				1,332				.12				-7	%			-8	%		$	1,304				.12				1,255				.11				4	%
Savings deposits			51,294				.18				41,197				.11				50,515				.16				25				2				50,266				.16				41,477				.10				21
Time deposits			12,334				.90				2,858				.51				12,755				.85				332				-3				12,694				.83				2,940				.50				332
Deposits at Cayman Islands office			220				.37				206				.29				182				.40				7				20				197				.39				214				.28				-8
Total interest-bearing deposits			65,070				.32				45,570				.13				64,784				.30				43				—				64,461				.29				45,886				.13				40
Short-term borrowings			231				.29				174				.07				1,078				.43				33				-79				1,127				.41				188				.07				498
Long-term borrowings			10,287				2.28				10,114				2.44				10,297				2.27				2				—				10,370				2.25				10,039				2.51				3
Total interest-bearing liabilities			75,588				.59				55,858				.55				76,159				.56				35				-1				75,958				.56				56,113				.55				35
Noninterest-bearing deposits			30,782								28,251								29,249								9				5				29,638								26,947								10
Other liabilities			2,008								1,619								1,921								24				5				1,967								1,656								19
Total liabilities			108,378								85,728								107,329								26				1				107,563								84,716								27
Shareholders' equity			16,347								12,787								16,377								28				—				16,334								12,629								29
Total liabilities and shareholders' equity		$	124,725								98,515								123,706								27	%			1	%		$	123,897								97,345								27	%
Net interest spread							2.85								2.93								2.95																2.94								2.96
Contribution of interest-free funds							.20								.21								.18																.18								.20
Net interest margin							3.05	%							3.14	%							3.13	%															3.12	%							3.16	%

 

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18-18-18-18-18

M&T BANK CORPORATION

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended September 30								Nine months ended September 30
		2016				2015				2016				2015
Income statement data
In thousands, except per share
Net income
Net income		$	349,984				280,401			$	984,543				808,702
Amortization of core deposit and other intangible assets (1)			5,945				2,506				20,369				10,322
Merger-related expenses (1)			—				—				21,685				—
Net operating income		$	355,929				282,907			$	1,026,597				819,024
Earnings per common share
Diluted earnings per common share		$	2.10				1.93			$	5.80				5.56
Amortization of core deposit and other intangible assets (1)			.03				.02				.13				.08
Merger-related expenses (1)			—				—				.14				—
Diluted net operating earnings per common share		$	2.13				1.95			$	6.07				5.64
Other expense
Other expense		$	752,392				653,816			$	2,278,382				2,036,819
Amortization of core deposit and other intangible assets			(9,787	)			(4,090	)			(33,524	)			(16,848	)
Merger-related expenses			—				—				(35,755	)			—
Noninterest operating expense		$	742,605				649,726			$	2,209,103				2,019,971
Merger-related expenses
Salaries and employee benefits			—				—				5,334				—
Equipment and net occupancy			—				—				1,278				—
Printing, postage and supplies			—				—				1,482				—
Other costs of operations			—				—				27,661				—
Total		$	—				—			$	35,755				—
Efficiency ratio
Noninterest operating expense (numerator)		$	742,605				649,726			$	2,209,103				2,019,971
Taxable-equivalent net interest income			865,065				699,075				2,613,702				2,053,649
Other income			491,350				439,699				1,360,537				1,376,929
Less: Gain (loss) on bank investment securities			28,480				—				28,748				(108	)
Denominator		$	1,327,935				1,138,774			$	3,945,491				3,430,686
Efficiency ratio			55.92	%			57.05	%			55.99	%			58.88	%
Balance sheet data
In millions
Average assets
Average assets		$	124,725				98,515			$	123,897				97,345
Goodwill			(4,593	)			(3,513	)			(4,593	)			(3,517	)
Core deposit and other intangible assets			(112	)			(20	)			(123	)			(26	)
Deferred taxes			44				7				48				8
Average tangible assets		$	120,064				94,989			$	119,229				93,810
Average common equity
Average total equity		$	16,347				12,787			$	16,334				12,629
Preferred stock			(1,232	)			(1,232	)			(1,231	)			(1,232	)
Average common equity			15,115				11,555				15,103				11,397
Goodwill			(4,593	)			(3,513	)			(4,593	)			(3,517	)
Core deposit and other intangible assets			(112	)			(20	)			(123	)			(26	)
Deferred taxes			44				7				48				8
Average tangible common equity		$	10,454				8,029			$	10,435				7,862
At end of quarter
Total assets
Total assets		$	126,841				97,797
Goodwill			(4,593	)			(3,513	)
Core deposit and other intangible assets			(107	)			(18	)
Deferred taxes			42				6
Total tangible assets		$	122,183				94,272
Total common equity
Total equity		$	16,341				12,922
Preferred stock			(1,232	)			(1,232	)
Undeclared dividends—cumulative preferred stock			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			15,106				11,687
Goodwill			(4,593	)			(3,513	)
Core deposit and other intangible assets			(107	)			(18	)
Deferred taxes			42				6
Total tangible common equity		$	10,448				8,162

 

(1)	After any related tax effect.

 

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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
		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Income statement data
In thousands, except per share
Net income
Net income		$	349,984				336,031				298,528				270,965				280,401
Amortization of core deposit and other intangible assets (1)			5,945				6,936				7,488				5,828				2,506
Merger-related expenses (1)			—				7,637				14,048				60,820				—
Net operating income		$	355,929				350,604				320,064				337,613				282,907
Earnings per common share
Diluted earnings per common share		$	2.10				1.98				1.73				1.65				1.93
Amortization of core deposit and other intangible assets (1)			.03				.04				.05				.04				.02
Merger-related expenses (1)			—				.05				.09				.40				—
Diluted net operating earnings per common share		$	2.13				2.07				1.87				2.09				1.95
Other expense
Other expense		$	752,392				749,895				776,095				786,113				653,816
Amortization of core deposit and other intangible assets			(9,787	)			(11,418	)			(12,319	)			(9,576	)			(4,090	)
Merger-related expenses			—				(12,593	)			(23,162	)			(75,976	)			—
Noninterest operating expense		$	742,605				725,884				740,614				700,561				649,726
Merger-related expenses
Salaries and employee benefits		$	—				60				5,274				51,287				—
Equipment and net occupancy			—				339				939				3				—
Printing, postage and supplies			—				545				937				504				—
Other costs of operations			—				11,649				16,012				24,182				—
Other expense			—				12,593				23,162				75,976				—
Provision for credit losses			—				—				—				21,000				—
Total		$	—				12,593				23,162				96,976				—
Efficiency ratio
Noninterest operating expense (numerator)		$	742,605				725,884				740,614				700,561				649,726
Taxable-equivalent net interest income			865,065				870,341				878,296				813,401				699,075
Other income			491,350				448,254				420,933				448,108				439,699
Less: Gain (loss) on bank investment securities			28,480				264				4				(22	)			—
Denominator		$	1,327,935				1,318,331				1,299,225				1,261,531				1,138,774
Efficiency ratio			55.92	%			55.06	%			57.00	%			55.53	%			57.05	%
Balance sheet data
In millions
Average assets
Average assets		$	124,725				123,706				123,252				115,052				98,515
Goodwill			(4,593	)			(4,593	)			(4,593	)			(4,218	)			(3,513	)
Core deposit and other intangible assets			(112	)			(122	)			(134	)			(101	)			(20	)
Deferred taxes			44				48				52				39				7
Average tangible assets		$	120,064				119,039				118,577				110,772				94,989
Average common equity
Average total equity		$	16,347				16,377				16,279				15,007				12,787
Preferred stock			(1,232	)			(1,232	)			(1,232	)			(1,232	)			(1,232	)
Average common equity			15,115				15,145				15,047				13,775				11,555
Goodwill			(4,593	)			(4,593	)			(4,593	)			(4,218	)			(3,513	)
Core deposit and other intangible assets			(112	)			(122	)			(134	)			(101	)			(20	)
Deferred taxes			44				48				52				39				7
Average tangible common equity		$	10,454				10,478				10,372				9,495				8,029
At end of quarter
Total assets
Total assets		$	126,841				123,821				124,626				122,788				97,797
Goodwill			(4,593	)			(4,593	)			(4,593	)			(4,593	)			(3,513	)
Core deposit and other intangible assets			(107	)			(117	)			(128	)			(140	)			(18	)
Deferred taxes			42				46				50				54				6
Total tangible assets		$	122,183				119,157				119,955				118,109				94,272
Total common equity
Total equity		$	16,341				16,472				16,355				16,173				12,922
Preferred stock			(1,232	)			(1,232	)			(1,232	)			(1,232	)			(1,232	)
Undeclared dividends—cumulative preferred stock			(3	)			(3	)			(3	)			(2	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			15,106				15,237				15,120				14,939				11,687
Goodwill			(4,593	)			(4,593	)			(4,593	)			(4,593	)			(3,513	)
Core deposit and other intangible assets			(107	)			(117	)			(128	)			(140	)			(18	)
Deferred taxes			42				46				50				54				6
Total tangible common equity		$	10,448				10,573				10,449				10,260				8,162

 

(1)	After any related tax effect.

 

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