Mon Apr 15, 2019 5:37am EST

BUFFALO, N.Y., April 15, 2019 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2019.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.35 in the initial 2019 quarter, 50% higher than $2.23 in the year-earlier quarter.  GAAP-basis net income in the recent quarter was $483 million, up from $353 million in the first quarter of 2018. Diluted earnings per share and GAAP-basis net income were $3.76 and $546 million, respectively, in the fourth quarter of 2018. GAAP-basis net income for the first quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.68% and 13.14%, respectively, compared with 1.22% and 9.15%, respectively, in the corresponding 2018 period and 1.84% and 14.80%, respectively, in the fourth quarter of 2018.

Darren J. King, Executive Vice President and Chief Financial Officer of M&T, commented on the recent quarter's results, "M&T's performance during the first three months of 2019 was strong. We were particularly pleased with the growth experienced in our commercial loan portfolios, which rose 3% from the fourth quarter. During the recent quarter, M&T purchased servicing rights for over $13 billion of residential real estate loans, boosting mortgage banking revenues by $8 million. Credit results continued to be solid, with net charge-offs representing an annualized .10% of average loans. Overall, it was a good start to 2019."

Earnings Highlights


















































Change 1Q19 vs.


($ in millions, except per share data)


1Q19



1Q18



4Q18



1Q18



4Q18























Net income


$

483



$

353



$

546




37

%



-12

%

Net income available to common shareholders  ̶  diluted


$

462



$

333



$

525




39

%



-12

%

Diluted earnings per common share


$

3.35



$

2.23



$

3.76




50

%



-11

%

Annualized return on average assets



1.68

%



1.22

%



1.84

%









Annualized return on average common equity



13.14

%



9.15

%



14.80

%









During the first quarter of 2019, M&T increased its reserve for legal matters by $50 million in conjunction with matters associated with a subsidiary's role as trustee of Employee Stock Ownership Plans in its Institutional Client Services business. That increase, on an after-tax basis, reduced net income in the recent quarter by $37 million, or $.27 of diluted earnings per common share. Litigation-related accruals in last year's first quarter reduced net income by $102 million, or $.68 of diluted earnings per common share. Also during the recent quarter, M&T realized $37 million of distributed income from Bayview Lending Group LLC ("BLG"), increasing net income in the quarter by $28 million, or $.20 of diluted earnings per common share. Similar income in the year-earlier quarter increased M&T's net income in that period by $17 million, or $.11 of diluted earnings per common share.

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" expenses are presented in the tables that accompany this release.  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 $3.38 in the first quarter of 2019, compared with $2.26 in the first quarter of 2018 and $3.79 in the fourth quarter of 2018.  Net operating income for the recent quarter was $486 million, compared with $357 million in the year-earlier period and $550 million in 2018's fourth quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.76% and 19.56%, respectively, compared with 1.28% and 13.51%, respectively, in the similar 2018 quarter and 1.93% and 22.16%, respectively, in the final quarter of 2018.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $1.06 billion in the initial 2019 quarter, up 8% from $980 million in the first quarter of 2018, due to a widening of the net interest margin in the recent quarter to 4.04% from 3.71% in the first three months of 2018. The favorable impact from that widening was partially offset by a decline in average earning assets in the recent quarter to $106.1 billion from $107.2 billion in the year-earlier period, reflecting reduced holdings of mortgage-backed securities and residential mortgage loans. Taxable-equivalent net interest income in the first quarter of 2019 was down one percent from the fourth quarter of 2018. A 12 basis point widening of the net interest margin from 3.92% in the final 2018 quarter was offset by a $2.8 billion decrease in average interest-bearing deposit balances held at the Federal Reserve Bank of New York.






















Taxable-equivalent Net Interest Income





































Change 1Q19 vs.


($ in millions)


1Q19



1Q18



4Q18



1Q18



4Q18























Average earning assets


$

106,096



$

107,231



$

107,785




-1

%



-2

%

Net interest income  ̶  taxable-equivalent


$

1,056



$

980



$

1,065




8

%



-1

%

Net interest margin



4.04

%



3.71

%



3.92

%









Provision for Credit Losses/Asset Quality.  The provision for credit losses was $22 million in the first quarter of 2019, compared with $43 million in the year-earlier quarter and $38 million in 2018's final quarter. Net loan charge-offs were $22 million during the recent quarter, improved from $41 million in the first quarter of 2018 and $38 million in the fourth quarter of 2018. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .10% and .19% in the first three months of 2019 and 2018, respectively, and .17% in the fourth quarter of 2018.

Loans classified as nonaccrual totaled $882 million or .99% of total loans outstanding at March 31, 2019, compared with $865 million or .99% a year earlier and $894 million or 1.01% at December 31, 2018. Assets taken in foreclosure of defaulted loans were $81 million at March 31, 2019, compared with $101 million at March 31, 2018 and $78 million at December 31, 2018.

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 $1.02 billion at each of March 31, 2019, March 31, 2018 and December 31, 2018. As a percentage of loans outstanding, the allowance was 1.15% at each of March 31, 2019 and December 31, 2018 and 1.16% at March 31, 2018.

Asset Quality Metrics





































Change 1Q19 vs.


($ in millions)


1Q19



1Q18



4Q18



1Q18



4Q18























At end of quarter





















Nonaccrual loans


$

882



$

865



$

894




2

%



-1

%

Real estate and other foreclosed assets


$

81



$

101



$

78




-20

%



4

%

Total nonperforming assets


$

963



$

966



$

972







-1

%

Accruing loans past due 90 days or more (1)


$

244



$

235



$

223




4

%



10

%

Nonaccrual loans as % of loans outstanding



.99

%



.99

%



1.01

%






























Allowance for credit losses


$

1,019



$

1,020



$

1,019








Allowance for credit losses as % of loans outstanding



1.15

%



1.16

%



1.15

%






























For the period





















Provision for credit losses


$

22



$

43



$

38




-49

%



-42

%

Net charge-offs


$

22



$

41



$

38




-45

%



-42

%

Net charge-offs as % of average loans (annualized)



.10

%



.19

%



.17

%
























(1)

Excludes loans acquired at a discount.  Predominantly residential real estate loans.

Noninterest Income and Expense. Noninterest income totaled $501 million in the recent quarter, up 9% from $459 million in the year-earlier quarter and 4% higher than $481 million in the fourth quarter of 2018. The increases are reflective of higher mortgage banking revenues, valuation gains on equity securities and distributions from BLG.

Noninterest Income





































Change 1Q19 vs.


($ in millions)


1Q19



1Q18



4Q18



1Q18



4Q18























Mortgage banking revenues


$

95



$

87



$

92




9

%



3

%

Service charges on deposit accounts



103




105




109




-2

%



-5

%

Trust income



133




131




135




1

%



-2

%

Brokerage services income



12




13




13




-7

%



-2

%

Trading account and foreign exchange gains



11




5




17




133

%



-35

%

Gain (loss) on bank investment securities



12




(9)




4








Other revenues from operations



135




127




111




6

%



21

%

Total


$

501



$

459



$

481




9

%



4

%

Noninterest expense aggregated $894 million in the first quarter of 2019, $933 million in the year-earlier quarter and $802 million in the fourth quarter of 2018.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $889 million in the recent quarter, $927 million in the first quarter of 2018 and $797 million in the final 2018 quarter. The decrease in noninterest expense from the first quarter of 2018 was largely attributable to lower accruals for legal matters and FDIC assessments offset, in part, by higher costs for salaries and employee benefits. The higher noninterest expenses in the recent quarter as compared with the fourth quarter of 2018 reflected seasonally higher stock-based compensation and employee benefits expenses and the addition to the reserve for legal matters that were partially offset by lower charitable contributions.

Noninterest Expense





































Change 1Q19 vs.


($ in millions)


1Q19



1Q18



4Q18



1Q18



4Q18























Salaries and employee benefits


$

499



$

463



$

439




8

%



14

%

Equipment and net occupancy



79




75




74




6

%



8

%

Outside data processing and software



52




49




50




8

%



4

%

FDIC assessments



10




20




10




-54

%



-4

%

Advertising and marketing



20




16




26




25

%



-22

%

Printing, postage and supplies



10




9




9




6

%



12

%

Amortization of core deposit and other intangible assets



5




7




5




-24

%



-6

%

Other costs of operations



219




294




189




-26

%



15

%

Total


$

894



$

933



$

802




-4

%



11

%






















 

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 57.6% in the first quarter of 2019, 64.0% in the year-earlier quarter and 51.7% in the final three months of 2018.

Balance Sheet.  M&T had total assets of $120.0 billion at March 31, 2019, compared with $118.6 billion and $120.1 billion at March 31, 2018 and December 31, 2018, respectively. Loans and leases, net of unearned discount, were $88.6 billion at March 31, 2019, $87.7 billion at March 31, 2018 and $88.5 billion at December 31, 2018. Total deposits were $90.5 billion at the recent quarter-end, compared with $90.9 billion at March 31, 2018 and $90.2 billion at December 31, 2018.

Total shareholders' equity was $15.6 billion at March 31, 2019 and $15.7 billion a year earlier, representing 12.99% and 13.24%, respectively, of total assets. Total shareholders' equity was $15.5 billion, or 12.87% of total assets at December 31, 2018. Common shareholders' equity was $14.4 billion, or $105.04 per share, at March 31, 2019, compared with $14.5 billion, or $98.60 per share, a year-earlier and $14.2 billion, or $102.69 per share, at December 31, 2018.  Tangible equity per common share was $71.19 at March 31, 2019, compared with $66.99 at March 31, 2018 and $69.28 at December 31, 2018. 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 10.05% at March 31, 2019.

In accordance with its capital plan, M&T repurchased 2,150,000 shares of its common stock during the recent quarter at an average cost per share of $170.06, for a total cost of $366 million.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first 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 #2869493.  The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Monday, April 22, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #2869493.  The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

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. 

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.

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.

 

 

Financial Highlights




Three months ended









March 31







Amounts in thousands, except per share


2019



2018



Change



Performance














Net income


$

482,742




352,610




37

%


Net income available to common shareholders



462,086




332,749




39

%


Per common share:














Basic earnings


$

3.35




2.24




50

%


Diluted earnings



3.35




2.23




50

%


Cash dividends


$

1.00




.75




33

%


Common shares outstanding:














Average - diluted (1)



137,920




148,905




-7

%


Period end (2)



136,637




146,799




-7

%


Return on (annualized):














Average total assets



1.68

%



1.22

%






Average common shareholders' equity



13.14

%



9.15

%






Taxable-equivalent net interest income


$

1,056,027




980,326




8

%


Yield on average earning assets



4.71

%



4.11

%






Cost of interest-bearing liabilities



1.04

%



.64

%






Net interest spread



3.67

%



3.47

%






Contribution of interest-free funds



.37

%



.24

%






Net interest margin



4.04

%



3.71

%






Net charge-offs to average total net loans (annualized)



.10

%



.19

%






Net operating results (3)














Net operating income


$

486,440




357,498




36

%


Diluted net operating earnings per common share



3.38




2.26




50

%


Return on (annualized):














Average tangible assets



1.76

%



1.28

%






Average tangible common equity



19.56

%



13.51

%






Efficiency ratio



57.56

%



63.98

%






















At March 31





Loan quality


2019



2018



Change



Nonaccrual loans


$

881,611




864,671




2

%


Real estate and other foreclosed assets



81,335




101,514




-20

%


Total nonperforming assets


$

962,946




966,185






Accruing loans past due 90 days or more (4)


$

244,257




235,325




4

%


Government guaranteed loans included in totals above:














Nonaccrual loans


$

35,481




36,618




-3

%


Accruing loans past due 90 days or more



194,510




223,611




-13

%


Renegotiated loans


$

267,952




226,829




18

%


Accruing loans acquired at a discount past due 90 days or more (5)


$

43,995




49,349




-11

%


Purchased impaired loans (6):














Outstanding customer balance


$

495,163




643,124




-23

%


Carrying amount



278,783




378,000




-26

%


Nonaccrual loans to total net loans



.99

%



.99

%






Allowance for credit losses to total loans



1.15

%



1.16

%








(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 herein.

(4)

  Excludes loans acquired at a discount.  Predominantly residential real estate loans.

(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.

 

 

Financial Highlights, Five Quarter Trend




Three months ended




March 31,



December 31,



September 30,



June 30,



March 31,


Amounts in thousands, except per share


2019



2018



2018



2018



2018


Performance





















Net income


$

482,742




546,219




526,091




493,160




352,610


Net income available to common shareholders



462,086




525,328




505,365




472,600




332,749


Per common share:





















Basic earnings


$

3.35




3.76




3.54




3.26




2.24


Diluted earnings



3.35




3.76




3.53




3.26




2.23


Cash dividends


$

1.00




1.00




1.00




.80




.75


Common shares outstanding:





















Average - diluted (1)



137,920




139,838




142,976




144,998




148,905


Period end (2)



136,637




138,534




141,479




144,261




146,799


Return on (annualized):





















Average total assets



1.68

%



1.84

%



1.80

%



1.70

%



1.22

%

Average common shareholders' equity



13.14

%



14.80

%



14.08

%



13.32

%



9.15

%

Taxable-equivalent net interest income


$

1,056,027




1,064,918




1,034,771




1,014,184




980,326


Yield on average earning assets



4.71

%



4.51

%



4.40

%



4.28

%



4.11

%

Cost of interest-bearing liabilities



1.04

%



.94

%



.82

%



.71

%



.64

%

Net interest spread



3.67

%



3.57

%



3.58

%



3.57

%



3.47

%

Contribution of interest-free funds



.37

%



.35

%



.30

%



.26

%



.24

%

Net interest margin



4.04

%



3.92

%



3.88

%



3.83

%



3.71

%

Net charge-offs to average total net loans (annualized)



.10

%



.17

%



.07

%



.16

%



.19

%

Net operating results (3)





















Net operating income


$

486,440




550,169




530,619




497,869




357,498


Diluted net operating earnings per common share



3.38




3.79




3.56




3.29




2.26


Return on (annualized):





















Average tangible assets



1.76

%



1.93

%



1.89

%



1.79

%



1.28

%

Average tangible common equity



19.56

%



22.16

%



21.00

%



19.91

%



13.51

%

Efficiency ratio



57.56

%



51.70

%



51.41

%



52.42

%



63.98

%
























March 31,



December 31,



September 30,



June 30,



March 31,


Loan quality


2019



2018



2018



2018



2018


Nonaccrual loans


$

881,611




893,608




870,832




819,984




864,671


Real estate and other foreclosed assets



81,335




78,375




87,333




98,062




101,514


Total nonperforming assets


$

962,946




971,983




958,165




918,046




966,185


Accruing loans past due 90 days or more (4)


$

244,257




222,527




254,360




223,026




235,325


Government guaranteed loans included in totals above:





















Nonaccrual loans


$

35,481




34,667




33,570




34,870




36,618


Accruing loans past due 90 days or more



194,510




192,443




195,450




202,394




223,611


Renegotiated loans


$

267,952




245,367




242,892




242,528




226,829


Accruing loans acquired at a discount past due 90 days or
     more (5)


$

43,995




39,750




44,223




47,405




49,349


Purchased impaired loans (6):





















Outstanding customer balance


$

495,163




529,520




572,979




606,683




643,124


Carrying amount



278,783




303,305




325,980




352,465




378,000


Nonaccrual loans to total net loans



.99

%



1.01

%



1.00

%



.93

%



.99

%

Allowance for credit losses to total loans



1.15

%



1.15

%



1.18

%



1.16

%



1.16

%









(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 herein.

(4)

    Excludes loans acquired at a discount.  Predominantly residential real estate loans.

(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. 

 

 

Condensed Consolidated Statement of Income




Three months ended









March 31







Dollars in thousands


2019



2018



Change



Interest income


$

1,226,309




1,082,150




13

%


Interest expense



176,249




106,633




65



Net interest income



1,050,060




975,517




8



Provision for credit losses



22,000




43,000




-49



Net interest income after provision for credit losses



1,028,060




932,517




10



Other income














Mortgage banking revenues



95,311




87,306




9



Service charges on deposit accounts



103,112




105,115




-2



Trust income



132,786




131,375




1



Brokerage services income



12,476




13,392




-7



Trading account and foreign exchange gains



10,802




4,637




133



Gain (loss) on bank investment securities



11,841




(9,431)






Other revenues from operations



134,437




126,302




6



Total other income



500,765




458,696




9



Other expense














Salaries and employee benefits



499,200




463,428




8



Equipment and net occupancy



79,347




74,797




6



Outside data processing and software



52,417




48,429




8



FDIC assessments



9,426




20,280




-54



Advertising and marketing



20,275




16,248




25



Printing, postage and supplies



9,855




9,319




6



Amortization of core deposit and other 
     intangible assets



5,020




6,632




-24



Other costs of operations



218,808




294,211




-26



Total other expense



894,348




933,344




-4



Income before income taxes



634,477




457,869




39



Applicable income taxes



151,735




105,259




44



Net income


$

482,742




352,610




37

%


 

 

Condensed Consolidated Statement of Income, Five Quarter Trend




Three months ended




March 31,



December 31,



September 30,



June 30,



March 31,


Dollars in thousands


2019



2018



2018



2018



2018


Interest income


$

1,226,309




1,220,281




1,167,375




1,128,905




1,082,150


Interest expense



176,249




161,321




138,337




120,118




106,633


Net interest income



1,050,060




1,058,960




1,029,038




1,008,787




975,517


Provision for credit losses



22,000




38,000




16,000




35,000




43,000


Net interest income after provision for credit losses



1,028,060




1,020,960




1,013,038




973,787




932,517


Other income





















Mortgage banking revenues



95,311




92,229




88,408




92,499




87,306


Service charges on deposit accounts



103,112




108,791




108,647




106,784




105,115


Trust income



132,786




135,024




133,545




137,641




131,375


Brokerage services income



12,476




12,781




12,267




12,629




13,392


Trading account and foreign exchange gains



10,802




16,582




6,073




5,255




4,637


Gain (loss) on bank investment securities



11,841




4,219




(3,415)




2,326




(9,431)


Other revenues from operations



134,437




110,970




113,769




100,280




126,302


Total other income



500,765




480,596




459,294




457,414




458,696


Other expense





















Salaries and employee benefits



499,200




438,928




431,371




418,537




463,428


Equipment and net occupancy



79,347




73,519




77,481




73,031




74,797


Outside data processing and software



52,417




50,206




50,678




49,712




48,429


FDIC assessments



9,426




9,837




18,849




19,560




20,280


Advertising and marketing



20,275




25,910




21,784




21,768




16,248


Printing, postage and supplies



9,855




8,777




8,843




8,719




9,319


Amortization of core deposit and other
     intangible assets



5,020




5,359




6,143




6,388




6,632


Other costs of operations



218,808




189,626




160,830




178,862




294,211


Total other expense



894,348




802,162




775,979




776,577




933,344


Income before income taxes



634,477




699,394




696,353




654,624




457,869


Applicable income taxes



151,735




153,175




170,262




161,464




105,259


Net income


$

482,742




546,219




526,091




493,160




352,610


 

 

Condensed Consolidated Balance Sheet




March 31







Dollars in thousands


2019



2018



Change



ASSETS














Cash and due from banks


$

1,267,260




1,291,664




-2

%


Interest-bearing deposits at banks



7,602,897




6,135,434




24



Federal funds sold






1,000






Trading account



276,322




141,134




96



Investment securities



12,536,840




14,066,564




-11



Loans and leases:














Commercial, financial, etc.



23,090,204




21,697,522




6



Real estate - commercial



34,690,930




33,753,506




3



Real estate - consumer



16,769,933




18,960,946




-12



Consumer



14,088,816




13,298,775




6



Total loans and leases, net of unearned discount



88,639,883




87,710,749




1



Less: allowance for credit losses



1,019,337




1,019,671






Net loans and leases



87,620,546




86,691,078




1



Goodwill



4,593,112




4,593,112






Core deposit and other intangible assets



43,947




64,957




-32



Other assets



6,084,281




5,637,881




8



Total assets


$

120,025,205




118,622,824




1

%
















LIABILITIES AND SHAREHOLDERS' EQUITY














Noninterest-bearing deposits


$

29,966,753




31,817,516




-6

%


Interest-bearing deposits



59,433,806




58,851,050




1



Deposits at Cayman Islands office



1,069,191




278,064




285



Total deposits



90,469,750




90,946,630




-1



Short-term borrowings



3,602,566




1,626,129




122



Accrued interest and other liabilities



1,889,336




1,749,320




8



Long-term borrowings



8,476,024




8,591,051




-1



Total liabilities



104,437,676




102,913,130




1



Shareholders' equity:














Preferred



1,231,500




1,231,500






Common



14,356,029




14,478,194




-1



Total shareholders' equity



15,587,529




15,709,694




-1



Total liabilities and shareholders' equity


$

120,025,205




118,622,824




1

%


 

 

Condensed Consolidated Balance Sheet, Five Quarter Trend







March 31,



December 31,



September 30,



June 30,



March 31,


Dollars in thousands


2019



2018



2018



2018



2018


ASSETS





















Cash and due from banks


$

1,267,260




1,605,439




1,311,611




1,367,594




1,291,664


Interest-bearing deposits at banks



7,602,897




8,105,197




6,523,746




6,669,985




6,135,434


Federal funds sold












1,500




1,000


Trading account



276,322




185,584




125,038




148,303




141,134


Investment securities



12,536,840




12,692,813




13,073,881




13,283,002




14,066,564


Loans and leases:





















Commercial, financial, etc.



23,090,204




22,977,976




21,635,394




21,894,857




21,697,522


Real estate - commercial



34,690,930




34,363,556




33,518,375




34,137,937




33,753,506


Real estate - consumer



16,769,933




17,154,446




17,721,399




18,310,712




18,960,946


Consumer



14,088,816




13,970,499




13,805,317




13,453,944




13,298,775


Total loans and leases, net of unearned discount



88,639,883




88,466,477




86,680,485




87,797,450




87,710,749


Less: allowance for credit losses



1,019,337




1,019,444




1,019,488




1,019,248




1,019,671


Net loans and leases



87,620,546




87,447,033




85,660,997




86,778,202




86,691,078


Goodwill



4,593,112




4,593,112




4,593,112




4,593,112




4,593,112


Core deposit and other intangible assets



43,947




47,067




52,426




58,569




64,957


Other assets



6,084,281




5,421,158




5,486,826




5,525,786




5,637,881


Total assets


$

120,025,205




120,097,403




116,827,637




118,426,053




118,622,824























LIABILITIES AND SHAREHOLDERS' EQUITY





















Noninterest-bearing deposits


$

29,966,753




32,256,668




31,773,560




32,086,191




31,817,516


Interest-bearing deposits



59,433,806




57,087,998




56,919,549




56,924,970




58,851,050


Deposits at Cayman Islands office



1,069,191




811,906




447,287




261,427




278,064


Total deposits



90,469,750




90,156,572




89,140,396




89,272,588




90,946,630


Short-term borrowings



3,602,566




4,398,378




1,310,110




3,239,416




1,626,129


Accrued interest and other liabilities



1,889,336




1,637,348




1,800,778




1,953,848




1,749,320


Long-term borrowings



8,476,024




8,444,914




9,140,268




8,382,316




8,591,051


Total liabilities



104,437,676




104,637,212




101,391,552




102,848,168




102,913,130


Shareholders' equity:





















Preferred



1,231,500




1,231,500




1,231,500




1,231,500




1,231,500


Common



14,356,029




14,228,691




14,204,585




14,346,385




14,478,194


Total shareholders' equity



15,587,529




15,460,191




15,436,085




15,577,885




15,709,694


Total liabilities and shareholders' equity


$

120,025,205




120,097,403




116,827,637




118,426,053




118,622,824


 

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates




Three months ended



Change in balance






March 31,



March 31,



December 31,



March 31, 2019 from




Dollars in millions


2019



2018



2018



March 31,



December 31,






Balance



Rate



Balance



Rate



Balance



Rate



2018



2018




ASSETS



































Interest-bearing deposits at banks


$

4,605




2.41

%



4,941




1.53

%



7,394




2.23

%



-7

%



-38

%



Federal funds sold









3




1.85
















Trading account



65




3.40




54




3.00




56




2.65




21




17




Investment securities



12,949




2.52




14,467




2.33




13,034




2.41




-10




-1




Loans and leases, net of unearned discount



































Commercial, financial, etc.



23,010




5.07




21,547




4.28




22,376




4.92




7




3




Real estate - commercial



34,524




5.34




33,652




4.73




33,586




5.27




3




3




Real estate - consumer



16,939




4.37




19,274




4.06




17,421




4.31




-12




-3




Consumer



14,004




5.51




13,293




5.00




13,918




5.35




5




1




Total loans and leases, net



88,477




5.15




87,766




4.55




87,301




5.02




1




1




Total earning assets



106,096




4.71




107,231




4.11




107,785




4.51




-1




-2




Goodwill



4,593








4,593








4,593














Core deposit and other intangible assets



45








68








50








-34




-9




Other assets



6,105








5,792








5,371








5




14




Total assets


$

116,839








117,684








117,799








-1

%



-1

%






































LIABILITIES AND SHAREHOLDERS' EQUITY



































Interest-bearing deposits



































Savings and interest-checking deposits


$

52,095




.59




52,504




.31




51,820




.54




-1

%



1

%



Time deposits



6,351




1.35




6,320




.70




5,960




1.07







7




Deposits at Cayman Islands office



972




1.98




248




.62




693




1.81




293




40




Total interest-bearing deposits



59,418




.70




59,072




.36




58,473




.61




1




2




Short-term borrowings



1,091




2.49




280




1.28




315




1.91




290




247




Long-term borrowings



8,494




3.23




8,606




2.54




9,239




3.03




-1




-8




Total interest-bearing liabilities



69,003




1.04




67,958




.64




68,027




.94




2




1




Noninterest-bearing deposits



30,315








32,047








32,631








-5




-7




Other liabilities



1,952








1,620








1,752








20




11




Total liabilities



101,270








101,625








102,410











-1




Shareholders' equity



15,569








16,059








15,389








-3




1




Total liabilities and shareholders' equity


$

116,839








117,684








117,799








-1

%



-1

%






































Net interest spread







3.67








3.47








3.57












Contribution of interest-free funds







.37








.24








.35












Net interest margin







4.04

%







3.71

%







3.92

%











 

 

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




Three months ended




March 31,



December 31,



September 30,



June 30,



March 31,




2019



2018



2018



2018



2018


Income statement data





















In thousands, except per share





















Net income





















Net income


$

482,742




546,219




526,091




493,160




352,610


Amortization of core deposit and other intangible assets (1)



3,698




3,950




4,528




4,709




4,888


Net operating income


$

486,440




550,169




530,619




497,869




357,498























Earnings per common share





















Diluted earnings per common share


$

3.35




3.76




3.53




3.26




2.23


Amortization of core deposit and other intangible assets (1)



.03




.03




.03




.03




.03


Diluted net operating earnings per common share


$

3.38




3.79




3.56




3.29




2.26























Other expense





















Other expense


$

894,348




802,162




775,979




776,577




933,344


Amortization of core deposit and other intangible assets



(5,020)




(5,359)




(6,143)




(6,388)




(6,632)


Noninterest operating expense


$

889,328




796,803




769,836




770,189




926,712


Efficiency ratio





















Noninterest operating expense (numerator)


$

889,328




796,803




769,836




770,189




926,712


Taxable-equivalent net interest income



1,056,027




1,064,918




1,034,771




1,014,184




980,326


Other income



500,765




480,596




459,294




457,414




458,696


Less:  Gain (loss) on bank investment securities



11,841




4,219




(3,415)




2,326




(9,431)


Denominator


$

1,544,951




1,541,295




1,497,480




1,469,272




1,448,453


Efficiency ratio



57.56

%



51.70

%



51.41

%



52.42

%



63.98

%

Balance sheet data





















In millions





















Average assets





















Average assets


$

116,839




117,799




115,997




116,413




117,684


Goodwill



(4,593)




(4,593)




(4,593)




(4,593)




(4,593)


Core deposit and other intangible assets



(45)




(50)




(55)




(62)




(68)


Deferred taxes



12




13




14




17




18


Average tangible assets


$

112,213




113,169




111,363




111,775




113,041


Average common equity





















Average total equity


$

15,569




15,389




15,549




15,533




16,059


Preferred stock



(1,232)




(1,232)




(1,232)




(1,232)




(1,232)


Average common equity



14,337




14,157




14,317




14,301




14,827


Goodwill



(4,593)




(4,593)




(4,593)




(4,593)




(4,593)


Core deposit and other intangible assets



(45)




(50)




(55)




(62)




(68)


Deferred taxes



12




13




14




17




18


Average tangible common equity


$

9,711




9,527




9,683




9,663




10,184


At end of quarter





















Total assets





















Total assets


$

120,025




120,097




116,828




118,426




118,623


Goodwill



(4,593)




(4,593)




(4,593)




(4,593)




(4,593)


Core deposit and other intangible assets



(44)




(47)




(52)




(59)




(65)


Deferred taxes



12




13




14




16




17


Total tangible assets


$

115,400




115,470




112,197




113,790




113,982


Total common equity





















Total equity


$

15,588




15,460




15,436




15,578




15,710


Preferred stock



(1,232)




(1,232)




(1,232)




(1,232)




(1,232)


Undeclared dividends - cumulative preferred stock



(3)




(3)




(3)




(3)




(3)


Common equity, net of undeclared cumulative preferred 
     
dividends



14,353




14,225




14,201




14,343




14,475


Goodwill



(4,593)




(4,593)




(4,593)




(4,593)




(4,593)


Core deposit and other intangible assets



(44)




(47)




(52)




(59)




(65)


Deferred taxes



12




13




14




16




17


Total tangible common equity


$

9,728




9,598




9,570




9,707




9,834







(1)

      After any related tax effect.

 

INVESTOR CONTACT:  

Donald J. MacLeod 


(716) 842-5138

MEDIA CONTACT:  

C. Michael Zabel


(716) 842-5385

 

 

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SOURCE M&T Bank Corporation



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