Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5462		October 17, 2012
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES THIRD QUARTER PROFITS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2012.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the third quarter of 2012 rose 64% to $2.17 from $1.32 in the year-earlier quarter and were 27% higher than $1.71 in the second quarter of 2012. GAAP-basis net income in the recent quarter aggregated $293 million, up from $183 million and $233 million in the third quarter of 2011 and the second quarter of 2012, respectively. GAAP-basis net income for the third quarter of 2012 expressed as an annualized rate of return on average assets and average common shareholders’ equity was 1.45% and 12.40%, respectively, compared with .94% and 7.84%, respectively, in the year-earlier quarter and 1.17% and 10.12%, respectively, in the second quarter of 2012.

The recent quarter’s results as compared with each of the third quarter of 2011 and the second quarter of 2012 reflect higher mortgage banking revenues, increases in taxable-equivalent net interest income and a lower provision for credit losses. In addition, expenses in the recent quarter declined $46 million, or 7%, from the year-earlier quarter, predominantly due to the integration of the operations obtained in the May 2011 acquisition of Wilmington Trust Corporation.

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2-2-2-2-2

M&T BANK CORPORATION

 

Commenting on M&T’s financial performance in the third quarter of 2012, René F. Jones, Executive Vice President and Chief Financial Officer, said, “Earnings for the quarter were exceptionally strong. While revenue from mortgage banking activities rose $37 million, or 54%, from the second quarter, loan growth, wider margins, prudent expense management and continuing improvement in credit quality combined for an impressive quarter. Revenue from residential mortgage banking activities rose 76% from the second quarter and net interest income increased due to solid loan growth and a 3 basis point expansion of the net interest margin. Credit metrics continued to improve, as nonaccrual loans declined from June 30, and the ratio of net charge-offs to average loans improved to .26% in the recent quarter, a level not seen since the beginning of the economic recession in late-2007.”

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 gains and expenses associated with merging acquired operations into M&T, since such amounts are considered by management to be “nonoperating” in nature. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results. Reconciliations of GAAP to non-GAAP measures are provided in the financial tables included herein.

 

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3-3-3-3-3

M&T BANK CORPORATION

 

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $2.24 in the recent quarter, up 46% and 23% from $1.53 and $1.82 in the third quarter of 2011 and the second quarter of 2012, respectively. Net operating income during the third quarter of 2012 was $302 million, improved from $210 million in the year-earlier quarter and $247 million in 2012’s second quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income was 1.56% and 21.53%, respectively, in the recent quarter, compared with 1.14% and 16.07%, respectively, in the third quarter of 2011 and 1.30% and 18.54%, respectively, in the second quarter of 2012.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $669 million in the third quarter of 2012, up an annualized 9% from $655 million in the second quarter of 2012. That improvement was due largely to a 3 basis point widening of the net interest margin and a $212 million increase in average earning assets. The net interest margin was 3.77% in the recent quarter, compared with 3.74% in the second quarter of 2012. The higher level of average earning assets in the recent quarter as compared with the second quarter of 2012 was predominantly due to a $1.6 billion increase in average loans and leases, largely offset by declines in average balances of lower yielding money-market assets and investment securities. Taxable-equivalent net interest income in the recent quarter rose $46 million from $623 million in the third quarter of 2011. That improvement reflected a $3.4 billion increase in average earning assets and a 9 basis point widening of the net interest margin.

 

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4-4-4-4-4

M&T BANK CORPORATION

 

Provision for Credit Losses/Asset Quality. The provision for credit losses was $46 million in the recent quarter, improved from $58 million in the third quarter of 2011 and $60 million in 2012’s second quarter. Net charge-offs of loans totaled $42 million during the third quarter of 2012, down from $57 million and $52 million in the quarters ended September 30, 2011 and June 30, 2012, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .26% and .39% in the third quarter of 2012 and 2011, respectively, and .34% in the second quarter of 2012.

Loans classified as nonaccrual declined to $925 million, or 1.44% of total loans outstanding at September 30, 2012, improved from $1.11 billion or 1.91% at September 30, 2011 and $968 million or 1.54% at June 30, 2012.

Assets taken in foreclosure of defaulted loans were $112 million at September 30, 2012, down from $150 million at September 30, 2011 and $116 million at June 30, 2012.

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. Reflecting those analyses, the allowance for credit losses was $921 million at September 30, 2012, compared with $909 million at September 30, 2011 and $917 million at June 30, 2012. The allowance expressed as a percentage of outstanding loans was 1.44% at September 30, 2012, down from 1.56% at September 30, 2011 and 1.46% at June 30, 2012.

 

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5-5-5-5-5

M&T BANK CORPORATION

 

Noninterest Income and Expense. Noninterest income totaled $446 million in the recent quarter, compared with $368 million and $392 million in the third quarter of 2011 and the second quarter of 2012, respectively. Reflected in those amounts were net pre-tax losses from investment securities of $5 million, $10 million and $17 million in the recent quarter, the third quarter of 2011, and the second quarter of 2012, respectively. The net securities losses were predominantly due to other-than-temporary impairment charges related to certain of M&T’s holding of privately issued collateralized mortgage obligations.

Excluding losses from investment securities in all periods, noninterest income in the third quarter of 2012 aggregated $451 million, up from $378 million in the third quarter of 2011 and $408 million in 2012’s second quarter. The rise in noninterest income in the recent quarter as compared with the year-earlier quarter and the second quarter of 2012 was predominantly due to higher mortgage banking revenues.

Noninterest expense in the third quarter of 2012 totaled $616 million, compared with $662 million in the year-earlier quarter and $627 million in the second quarter of 2012. 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 $602 million in the recent quarter, down from $619 million in the third quarter of 2011 and $604 million in 2012’s second quarter, due largely to the continued realization of synergies from the integration into M&T of the operations obtained from Wilmington Trust Corporation.

 

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6-6-6-6-6

M&T BANK CORPORATION

 

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 and merger-related gains), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio was 53.7% in the recent quarter, significantly improved from 61.8% and 56.9% in the year-earlier quarter and the second quarter of 2012, respectively.

Balance Sheet. M&T had total assets of $81.1 billion at September 30, 2012, compared with $77.9 billion at September 30, 2011. Loans and leases, net of unearned discount, increased $5.7 billion, or 10%, to $64.1 billion at September 30, 2012 from $58.4 billion a year earlier. Total deposits aggregated $64.0 billion at the recent quarter-end, up 8% from $59.5 billion at September 30, 2011. Total shareholders’ equity rose 6% to $9.9 billion at September 30, 2012 from $9.4 billion a year earlier, representing 12.27% and 12.04%, respectively, of total assets. Common shareholders’ equity was $9.1 billion, or $71.17 per share, at September 30, 2012, compared with $8.5 billion, or $67.70 per share, at September 30, 2011. Tangible equity per common share rose 11% to $42.80 at September 30, 2012 from $38.56 at September 30, 2011.

Common shareholders’ equity per share and tangible equity per common share were $69.15 and $40.52, respectively, at June 30, 2012. In the calculation of tangible equity per common share, common shareholders’ equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T’s tangible common equity to tangible assets ratio was 7.04% at September 30, 2012, compared with 6.53% and 6.65% at September 30, 2011 and June 30,

 

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7-7-7-7-7

M&T BANK CORPORATION

 

2012, respectively. M&T’s estimated Tier 1 common ratio, a regulatory capital measure, rose to 7.47% at September 30, 2012, improved from 6.87% and 7.15% at September 30, 2011 and June 30, 2012, respectively.

Other notable events during the third quarter of 2012 included the announcement that M&T and Hudson City Bancorp, Inc. (“Hudson City”) had entered into a definitive merger agreement whereby M&T would acquire Hudson City. Completing M&T’s exit from the TARP program, the United States Treasury Department (“U.S. Treasury”) sold M&T Series A and Series C Preferred Stock to the public and no longer holds any shares of M&T’s preferred stock. Subject to common shareholder approval, M&T had modified certain of the terms of its Series A and Series C Preferred Stock which had been held by the U.S. Treasury.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss third quarter financial results today at 10:30 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID #38101096. 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 until October 20, 2012 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #38101096. 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.

 

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8-8-8-8-8

M&T BANK CORPORATION

 

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 as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; increasing price and product/service competition by

 

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9-9-9-9-9

M&T BANK CORPORATION

 

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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10-10-10-10-10

 

M&T BANK CORPORATION

Financial Highlights

 

		Three months ended September 30												Nine months ended September 30
Amounts in thousands, except per share		2012				2011				Change				2012				2011				Change
Performance
Net income		$	293,462				183,108				60	%		$	733,305				711,739				3	%
Net income available to common shareholders			273,896				164,671				66	%			676,842				651,966				4	%
Per common share:
Basic earnings		$	2.18				1.32				65	%		$	5.39				5.34				1	%
Diluted earnings			2.17				1.32				64	%			5.37				5.32				1	%
Cash dividends		$	.70				.70				—			$	2.10				2.10				—
Common shares outstanding:
Average - diluted (1)			126,292				124,860				1	%			125,936				122,521				3	%
Period end (2)			127,461				125,678				1	%			127,461				125,678				1	%
Return on (annualized):
Average total assets			1.45	%			.94	%							1.23	%			1.31	%
Average common shareholders’ equity			12.40	%			7.84	%							10.55	%			10.94	%
Taxable-equivalent net interest income		$	669,256				623,265				7	%		$	1,950,978				1,791,066				9	%
Yield on average earning assets			4.23	%			4.29	%							4.24	%			4.42	%
Cost of interest-bearing liabilities			.71	%			.86	%							.76	%			.89	%
Net interest spread			3.52	%			3.43	%							3.48	%			3.53	%
Contribution of interest-free funds			.25	%			.25	%							.25	%			.25	%
Net interest margin			3.77	%			3.68	%							3.73	%			3.78	%
Net charge-offs to average total net loans (annualized)			.26	%			.39	%							.31	%			.46	%
Net operating results (3)
Net operating income		$	302,060				209,996				44	%		$	767,853				715,843				7	%
Diluted net operating earnings per common share			2.24				1.53				46	%			5.64				5.36				5	%
Return on (annualized):
Average tangible assets			1.56	%			1.14	%							1.35	%			1.39	%
Average tangible common equity			21.53	%			16.07	%							19.03	%			20.03	%
Efficiency ratio			53.73	%			61.79	%							57.11	%			57.84	%
		At September 30
Loan quality		2012				2011				Change
Nonaccrual loans		$	925,231				1,113,788				-17	%
Real estate and other foreclosed assets			112,160				149,868				-25	%
Total nonperforming assets		$	1,037,391				1,263,656				-18	%
Accruing loans past due 90 days or more (4)		$	309,420				239,970				29	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	54,583				32,937				66	%
Accruing loans past due 90 days or more			280,410				210,407				33	%
Renegotiated loans		$	266,526				223,233				19	%
Acquired accruing loans past due 90 days or more (5)		$	161,424				211,958				-24	%
Purchased impaired loans (6):
Outstanding customer balance		$	978,731				1,393,777				-30	%
Carrying amount			528,001				703,632				-25	%
Nonaccrual loans to total net loans			1.44	%			1.91	%
Allowance for credit losses to total loans			1.44	%			1.56	%

 

(1)	Includes common stock equivalents.

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

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 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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11-11-11-11-11

 

M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands, except per share		September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011
Performance
Net income		$	293,462				233,380				206,463				147,740				183,108
Net income available to common shareholders			273,896				214,716				188,241				129,804				164,671
Per common share:
Basic earnings		$	2.18				1.71				1.50				1.04				1.32
Diluted earnings			2.17				1.71				1.50				1.04				1.32
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average - diluted (1)			126,292				125,897				125,616				124,736				124,860
Period end (2)			127,461				126,645				126,534				125,752				125,678
Return on (annualized):
Average total assets			1.45	%			1.17	%			1.06	%			.75	%			.94	%
Average common shareholders’ equity			12.40	%			10.12	%			9.04	%			6.12	%			7.84	%
Taxable-equivalent net interest income		$	669,256				654,628				627,094				624,566				623,265
Yield on average earning assets			4.23	%			4.25	%			4.24	%			4.17	%			4.29	%
Cost of interest-bearing liabilities			.71	%			.76	%			.80	%			.82	%			.86	%
Net interest spread			3.52	%			3.49	%			3.44	%			3.35	%			3.43	%
Contribution of interest-free funds			.25	%			.25	%			.25	%			.25	%			.25	%
Net interest margin			3.77	%			3.74	%			3.69	%			3.60	%			3.68	%
Net charge-offs to average total net loans (annualized)			.26	%			.34	%			.32	%			.50	%			.39	%
Net operating results (3)
Net operating income		$	302,060				247,433				218,360				168,410				209,996
Diluted net operating earnings per common share			2.24				1.82				1.59				1.20				1.53
Return on (annualized):
Average tangible assets			1.56	%			1.30	%			1.18	%			.89	%			1.14	%
Average tangible common equity			21.53	%			18.54	%			16.79	%			12.36	%			16.07	%
Efficiency ratio			53.73	%			56.86	%			61.09	%			67.38	%			61.79	%
Loan quality		September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011
Nonaccrual loans		$	925,231				968,328				1,065,229				1,097,581				1,113,788
Real estate and other foreclosed assets			112,160				115,580				140,297				156,592				149,868
Total nonperforming assets		$	1,037,391				1,083,908				1,205,526				1,254,173				1,263,656
Accruing loans past due 90 days or more (4)		$	309,420				274,598				273,081				287,876				239,970
Government guaranteed loans included in totals above:
Nonaccrual loans		$	54,583				48,712				44,717				40,529				32,937
Accruing loans past due 90 days or more			280,410				255,495				252,622				252,503				210,407
Renegotiated loans		$	266,526				267,111				213,024				214,379				223,233
Acquired accruing loans past due 90 days or more (5)		$	161,424				162,487				165,163				163,738				211,958
Purchased impaired loans (6):
Outstanding customer balance		$	978,731				1,037,458				1,158,829				1,267,762				1,393,777
Carrying amount			528,001				560,700				604,779				653,362				703,632
Nonaccrual loans to total net loans			1.44	%			1.54	%			1.75	%			1.83	%			1.91	%
Allowance for credit losses to total loans			1.44	%			1.46	%			1.49	%			1.51	%			1.56	%

 

(1)	Includes common stock equivalents.

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

(3)

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

(4)	Excludes acquired loans.

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

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

 

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12-12-12-12-12

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

		Three months ended September 30												Nine months ended September 30
Dollars in thousands		2012				2011				Change				2012				2011				Change
Interest income		$	744,851				720,351				3	%		$	2,196,332				2,076,087				6	%
Interest expense			82,129				103,632				-21				265,238				304,362				-13
Net interest income			662,722				616,719				7				1,931,094				1,771,725				9
Provision for credit losses			46,000				58,000				-21				155,000				196,000				-21
Net interest income after provision for credit losses			616,722				558,719				10				1,776,094				1,575,725				13
Other income
Mortgage banking revenues			106,812				38,141				180				232,518				125,448				85
Service charges on deposit accounts			114,463				121,577				-6				334,334				351,024				-5
Trust income			115,709				113,652				2				354,937				218,565				62
Brokerage services income			14,114				13,907				1				44,187				43,129				2
Trading account and foreign exchange gains			8,469				4,176				103				25,278				19,253				31
Gain on bank investment securities			372				89				—				9				150,186				—
Other-than-temporary impairment losses recognized in earnings			(5,672	)			(9,642	)			—				(33,331	)			(52,213	)			—
Equity in earnings of Bayview Lending Group LLC			(5,183	)			(6,911	)			—				(16,570	)			(18,812	)			—
Other revenues from operations			96,649				93,393				3				272,744				347,878				-22
Total other income			445,733				368,382				21				1,214,106				1,184,458				3
Other expense
Salaries and employee benefits			321,746				325,197				-1				991,530				891,465				11
Equipment and net occupancy			64,248				68,101				-6				194,667				184,434				6
Printing, postage and supplies			8,272				10,593				-22				31,512				29,518				7
Amortization of core deposit and other intangible assets			14,085				17,401				-19				46,766				44,455				5
FDIC assessments			23,801				26,701				-11				77,712				72,404				7
Other costs of operations			183,875				214,026				-14				540,927				516,209				5
Total other expense			616,027				662,019				-7				1,883,114				1,738,485				8
Income before income taxes			446,428				265,082				68				1,107,086				1,021,698				8
Applicable income taxes			152,966				81,974				87				373,781				309,959				21
Net income		$	293,462				183,108				60	%		$	733,305				711,739				3	%

 

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13-13-13-13-13

 

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
Dollars in thousands		September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011
Interest income		$	744,851				737,386				714,095				716,000				720,351
Interest expense			82,129				89,403				93,706				97,969				103,632
Net interest income			662,722				647,983				620,389				618,031				616,719
Provision for credit losses			46,000				60,000				49,000				74,000				58,000
Net interest income after provision for credit losses			616,722				587,983				571,389				544,031				558,719
Other income
Mortgage banking revenues			106,812				69,514				56,192				40,573				38,141
Service charges on deposit accounts			114,463				110,982				108,889				104,071				121,577
Trust income			115,709				122,275				116,953				113,820				113,652
Brokerage services income			14,114				16,172				13,901				13,341				13,907
Trading account and foreign exchange gains			8,469				6,238				10,571				7,971				4,176
Gain (loss) on bank investment securities			372				(408	)			45				1				89
Other-than-temporary impairment losses recognized in earnings			(5,672	)			(16,173	)			(11,486	)			(24,822	)			(9,642	)
Equity in earnings of Bayview Lending Group LLC			(5,183	)			(6,635	)			(4,752	)			(5,419	)			(6,911	)
Other revenues from operations			96,649				89,685				86,410				148,918				93,393
Total other income			445,733				391,650				376,723				398,454				368,382
Other expense
Salaries and employee benefits			321,746				323,686				346,098				312,528				325,197
Equipment and net occupancy			64,248				65,376				65,043				65,080				68,101
Printing, postage and supplies			8,272				11,368				11,872				11,399				10,593
Amortization of core deposit and other intangible assets			14,085				15,907				16,774				17,162				17,401
FDIC assessments			23,801				24,962				28,949				27,826				26,701
Other costs of operations			183,875				186,093				170,959				305,588				214,026
Total other expense			616,027				627,392				639,695				739,583				662,019
Income before income taxes			446,428				352,241				308,417				202,902				265,082
Applicable income taxes			152,966				118,861				101,954				55,162				81,974
Net income		$	293,462				233,380				206,463				147,740				183,108

 

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14-14-14-14-14

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		September 30
Dollars in thousands		2012				2011				Change
ASSETS
Cash and due from banks		$	1,622,928				1,349,057				20	%
Interest-bearing deposits at banks			411,994				2,226,779				-81
Federal funds sold and agreements to resell securities			—				5,000				—
Trading account assets			526,844				605,557				-13
Investment securities			6,624,004				7,173,797				-8
Loans and leases:
Commercial, financial, etc			16,704,575				15,218,502				10
Real estate - commercial			24,970,416				23,961,306				4
Real estate - consumer			10,808,220				7,065,451				53
Consumer			11,628,744				12,156,005				-4
Total loans and leases, net of unearned discount			64,111,955				58,401,264				10
Less: allowance for credit losses			921,223				908,525				1
Net loans and leases			63,190,732				57,492,739				10
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			129,628				193,556				-33
Other assets			5,054,478				5,292,781				-5
Total assets		$	81,085,233				77,863,891				4	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	22,968,401				19,637,491				17	%
Interest-bearing deposits			39,636,104				39,330,027				1
Deposits at Cayman Islands office			1,402,753				514,871				172
Total deposits			64,007,258				59,482,389				8
Short-term borrowings			592,154				694,398				-15
Accrued interest and other liabilities			1,570,758				1,563,121				—
Long-term borrowings			4,969,536				6,748,857				-26
Total liabilities			71,139,706				68,488,765				4
Shareholders’ equity:
Preferred			870,416				862,717				1
Common (1)			9,075,111				8,512,409				7
Total shareholders’ equity			9,945,527				9,375,126				6
Total liabilities and shareholders’ equity		$	81,085,233				77,863,891				4	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $230.1 million at September 30, 2012 and $192.5 million at September 30, 2011.

 

 

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15-15-15-15-15

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

		September 30,				June 30,				March 31,				December 31,				September 30,
Dollars in thousands		2012				2012				2012				2011				2011
ASSETS
Cash and due from banks		$	1,622,928				1,421,831				1,344,092				1,449,547				1,349,057
Interest-bearing deposits at banks			411,994				1,069,717				1,282,040				154,960				2,226,779
Federal funds sold and agreements to resell securities			—				1,000				—				2,850				5,000
Trading account assets			526,844				544,938				517,620				561,834				605,557
Investment securities			6,624,004				7,057,300				7,195,296				7,673,154				7,173,797
Loans and leases:
Commercial, financial, etc			16,704,575				16,395,587				15,938,672				15,734,436				15,218,502
Real estate - commercial			24,970,416				24,898,707				24,486,555				24,411,114				23,961,306
Real estate - consumer			10,808,220				9,811,525				8,696,594				7,923,165				7,065,451
Consumer			11,628,744				11,745,453				11,799,929				12,027,290				12,156,005
Total loans and leases, net of unearned discount			64,111,955				62,851,272				60,921,750				60,096,005				58,401,264
Less: allowance for credit losses			921,223				917,028				909,006				908,290				908,525
Net loans and leases			63,190,732				61,934,244				60,012,744				59,187,715				57,492,739
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			129,628				143,713				159,619				176,394				193,556
Other assets			5,054,478				5,110,210				5,150,851				5,193,208				5,292,781
Total assets		$	81,085,233				80,807,578				79,186,887				77,924,287				77,863,891
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	22,968,401				22,854,794				20,648,970				20,017,883				19,637,491
Interest-bearing deposits			39,636,104				39,327,849				39,868,782				39,020,839				39,330,027
Deposits at Cayman Islands office			1,402,753				366,164				395,191				355,927				514,871
Total deposits			64,007,258				62,548,807				60,912,943				59,394,649				59,482,389
Short-term borrowings			592,154				975,575				511,981				782,082				694,398
Accrued interest and other liabilities			1,570,758				1,965,421				1,856,749				1,790,121				1,563,121
Long-term borrowings			4,969,536				5,687,868				6,476,526				6,686,226				6,748,857
Total liabilities			71,139,706				71,177,671				69,758,199				68,653,078				68,488,765
Shareholders’ equity:
Preferred			870,416				868,433				866,489				864,585				862,717
Common (1)			9,075,111				8,761,474				8,562,199				8,406,624				8,512,409
Total shareholders’ equity			9,945,527				9,629,907				9,428,688				9,271,209				9,375,126
Total liabilities and shareholders’ equity		$	81,085,233				80,807,578				79,186,887				77,924,287				77,863,891

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $230.1 million at September 30, 2012, $277.8 million at June 30, 2012, $331.3 million at March 31, 2012, $356.4 million at December 31, 2011 and $192.5 million at September 30, 2011.

 

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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								Nine months ended																Change in balance
		September 30,								September 30,								June 30,								September 30, 2012 from								September 30
Dollars in millions		2012								2011								2012								September 30,				June 30,				2012								2011
		Balance				Rate				Balance				Rate				Balance				Rate				2011				2012				Balance				Rate				Balance				Rate
ASSETS
Interest-bearing deposits at banks		$	298				.18	%			1,861				.25	%			1,247				.25	%			-84	%			-76	%		$	614				.24	%			933				.24	%			-34	%
Federal funds sold and agreements to resell securities			4				.55				76				.14				6				.56				-94				-25				4				.55				238				.10				-98
Trading account assets			94				1.13				85				1.75				100				1.64				11				-6				96				1.45				98				1.55				-2
Investment securities			6,811				3.39				7,005				3.65				7,271				3.47				-3				-6				7,195				3.47				6,872				3.95				5
Loans and leases, net of unearned discount
Commercial, financial, etc			16,504				3.73				15,007				3.82				16,104				3.72				10				2				16,115				3.72				14,406				3.88				12
Real estate - commercial			24,995				4.61				23,979				4.62				24,737				4.65				4				1				24,764				4.56				22,495				4.64				10
Real estate - consumer			10,296				4.29				7,002				4.95				9,216				4.43				47				12				9,270				4.43				6,542				5.00				42
Consumer			11,660				4.76				12,200				4.95				11,769				4.82				-4				-1				11,778				4.79				11,787				5.03				—
Total loans and leases, net			63,455				4.34				58,188				4.51				61,826				4.42				9				3				61,927				4.37				55,230				4.57				12
Total earning assets			70,662				4.23				67,215				4.29				70,450				4.25				5				—				69,836				4.24				63,371				4.42				10
Goodwill			3,525								3,525								3,525								—				—				3,525								3,525								—
Core deposit and other intangible assets			136								202								151								-32				-10				152								162								-7
Other assets			6,109								5,966								5,961								2				2				6,005								5,431								11
Total assets		$	80,432								76,908								80,087								5	%			—	%		$	79,518								72,489								10	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	875				.15				814				.17				841				.20				8	%			4	%		$	848				.16				729				.15				16	%
Savings deposits			33,298				.20				31,654				.28				33,286				.20				5				—				32,999				.21				29,804				.28				11
Time deposits			5,164				.84				7,169				.98				5,545				.90				-28				-7				5,555				.88				6,514				1.15				-15
Deposits at Cayman Islands office			702				.19				614				.12				457				.20				14				54				552				.19				869				.12				-37
Total interest-bearing deposits			40,039				.28				40,251				.40				40,129				.30				-1				—				39,954				.30				37,916				.42				5
Short-term borrowings			976				.15				592				.15				875				.16				65				12				893				.15				878				.13				2
Long-term borrowings			5,006				4.27				6,829				3.63				6,102				3.90				-27				-18				5,869				3.96				7,089				3.45				-17
Total interest-bearing liabilities			46,021				.71				47,672				.86				47,106				.76				-3				-2				46,716				.76				45,883				.89				2
Noninterest-bearing deposits			22,704								18,222								21,401								25				6				21,240								16,320								30
Other liabilities			1,918								1,690								2,044								13				-6				1,994								1,420								40
Total liabilities			70,643								67,584								70,551								5				—				69,950								63,623								10
Shareholders’ equity			9,789								9,324								9,536								5				3				9,568								8,866								8
Total liabilities and shareholders’ equity		$	80,432								76,908								80,087								5	%			—	%		$	79,518								72,489								10	%
Net interest spread							3.52								3.43								3.49																3.48								3.53
Contribution of interest-free funds							.25								.25								.25																.25								.25
Net interest margin							3.77	%							3.68	%							3.74	%															3.73	%							3.78	%

 

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17-17-17-17-17

 

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended September 30								Nine months ended September 30
		2012				2011				2012				2011
Income statement data
In thousands, except per share
Net income
Net income		$	293,462				183,108			$	733,305				711,739
Amortization of core deposit and other intangible assets (1)			8,598				10,622				28,547				27,074
Merger-related gain (1)			—				—				—				(64,930	)
Merger-related expenses (1)			—				16,266				6,001				41,960
Net operating income		$	302,060				209,996			$	767,853				715,843
Earnings per common share
Diluted earnings per common share		$	2.17				1.32			$	5.37				5.32
Amortization of core deposit and other intangible assets (1)			.07				.08				.22				.22
Merger-related gain (1)			—				—				—				(.52	)
Merger-related expenses (1)			—				.13				.05				.34
Diluted net operating earnings per common share		$	2.24				1.53			$	5.64				5.36
Other expense
Other expense		$	616,027				662,019			$	1,883,114				1,738,485
Amortization of core deposit and other intangible assets			(14,085	)			(17,401	)			(46,766	)			(44,455	)
Merger-related expenses			—				(26,003	)			(9,879	)			(67,294	)
Noninterest operating expense		$	601,942				618,615			$	1,826,469				1,626,736
Merger-related expenses
Salaries and employee benefits		$	—				285			$	4,997				15,597
Equipment and net occupancy			—				119				15				223
Printing, postage and supplies			—				723				—				1,188
Other costs of operations			—				24,876				4,867				50,286
Total		$	—				26,003			$	9,879				67,294
Efficiency ratio
Noninterest operating expense (numerator)		$	601,942				618,615			$	1,826,469				1,626,736
Taxable-equivalent net interest income			669,256				623,265				1,950,978				1,791,066
Other income			445,733				368,382				1,214,106				1,184,458
Less: Gain (loss) on bank investment securities			372				89				9				150,186
Net OTTI losses recognized in earnings			(5,672	)			(9,642	)			(33,331	)			(52,213	)
Merger-related gain			—				—				—				64,930
Denominator		$	1,120,289				1,001,200			$	3,198,406				2,812,621
Efficiency ratio			53.73	%			61.79	%			57.11	%			57.84	%
Balance sheet data
In millions
Average assets
Average assets		$	80,432				76,908			$	79,518				72,489
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(136	)			(202	)			(152	)			(162	)
Deferred taxes			39				58				44				40
Average tangible assets		$	76,810				73,239			$	75,885				68,842
Average common equity
Average total equity		$	9,789				9,324			$	9,568				8,866
Preferred stock			(870	)			(862	)			(868	)			(774	)
Average common equity			8,919				8,462				8,700				8,092
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(136	)			(202	)			(152	)			(162	)
Deferred taxes			39				58				44				40
Average tangible common equity		$	5,297				4,793			$	5,067				4,445
At end of quarter
Total assets
Total assets		$	81,085				77,864
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(129	)			(193	)
Deferred taxes			38				55
Total tangible assets		$	77,469				74,201
Total common equity
Total equity		$	9,945				9,375
Preferred stock			(870	)			(863	)
Undeclared dividends - cumulative preferred stock			(4	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			9,071				8,509
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(129	)			(193	)
Deferred taxes			38				55
Total tangible common equity		$	5,455				4,846

 

(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
		September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011
Income statement data
In thousands, except per share
Net income
Net income		$	293,462				233,380				206,463				147,740				183,108
Amortization of core deposit and other intangible assets (1)			8,598				9,709				10,240				10,476				10,622
Merger-related expenses (1)			—				4,344				1,657				10,194				16,266
Net operating income		$	302,060				247,433				218,360				168,410				209,996
Earnings per common share
Diluted earnings per common share		$	2.17				1.71				1.50				1.04				1.32
Amortization of core deposit and other intangible assets (1)			.07				.08				.08				.08				.08
Merger-related expenses (1)			—				.03				.01				.08				.13
Diluted net operating earnings per common share		$	2.24				1.82				1.59				1.20				1.53
Other expense
Other expense		$	616,027				627,392				639,695				739,583				662,019
Amortization of core deposit and other intangible assets			(14,085	)			(15,907	)			(16,774	)			(17,162	)			(17,401	)
Merger-related expenses			—				(7,151	)			(2,728	)			(16,393	)			(26,003	)
Noninterest operating expense		$	601,942				604,334				620,193				706,028				618,615
Merger-related expenses
Salaries and employee benefits		$	—				3,024				1,973				534				285
Equipment and net occupancy			—				—				15				189				119
Printing, postage and supplies			—				—				—				1,475				723
Other costs of operations			—				4,127				740				14,195				24,876
Total		$	—				7,151				2,728				16,393				26,003
Efficiency ratio
Noninterest operating expense (numerator)		$	601,942				604,334				620,193				706,028				618,615
Taxable-equivalent net interest income			669,256				654,628				627,094				624,566				623,265
Other income			445,733				391,650				376,723				398,454				368,382
Less: Gain (loss) on bank investment securities			372				(408	)			45				1				89
Net OTTI losses recognized in earnings			(5,672	)			(16,173	)			(11,486	)			(24,822	)			(9,642	)
Denominator		$	1,120,289				1,062,859				1,015,258				1,047,841				1,001,200
Efficiency ratio			53.73	%			56.86	%			61.09	%			67.38	%			61.79	%
Balance sheet data
In millions
Average assets
Average assets		$	80,432				80,087				78,026				78,393				76,908
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(136	)			(151	)			(168	)			(185	)			(202	)
Deferred taxes			39				44				48				54				58
Average tangible assets		$	76,810				76,455				74,381				74,737				73,239
Average common equity
Average total equity		$	9,789				9,536				9,376				9,413				9,324
Preferred stock			(870	)			(868	)			(866	)			(864	)			(862	)
Average common equity			8,919				8,668				8,510				8,549				8,462
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(136	)			(151	)			(168	)			(185	)			(202	)
Deferred taxes			39				44				48				54				58
Average tangible common equity		$	5,297				5,036				4,865				4,893				4,793
At end of quarter
Total assets
Total assets		$	81,085				80,808				79,187				77,924				77,864
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(129	)			(143	)			(160	)			(176	)			(193	)
Deferred taxes			38				41				46				51				55
Total tangible assets		$	77,469				77,181				75,548				74,274				74,201
Total common equity
Total equity		$	9,945				9,630				9,429				9,271				9,375
Preferred stock			(870	)			(868	)			(867	)			(865	)			(863	)
Undeclared dividends - cumulative preferred stock			(4	)			(4	)			(3	)			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			9,071				8,758				8,559				8,403				8,509
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(129	)			(143	)			(160	)			(176	)			(193	)
Deferred taxes			38				41				46				51				55
Total tangible common equity		$	5,455				5,131				4,920				4,753				4,846

 

(1)	After any related tax effect.

 

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