Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod				FOR IMMEDIATE RELEASE:
		(716) 842-5138				July 17, 2014
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2014.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the second quarter of 2014 were $1.98, up 23% from $1.61 in the first quarter of 2014. GAAP-basis net income in the recent quarter totaled $284 million, compared with $229 million in the initial 2014 quarter. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income for the recent quarter was 1.27% and 9.79%, respectively, compared with 1.07% and 8.22%, respectively, in the first quarter of 2014.

The recent quarter’s results reflect two noteworthy, but largely offsetting, items. The resolution with tax authorities of previously uncertain tax positions required M&T to reduce its accrual for income taxes and increase net income by $8 million, while an increase to M&T’s litigation reserves of $12 million reduced net income by $7 million after applicable tax effect. Both accrual items were associated with pre-acquisition activities of M&T’s Wilmington Trust entities.

Diluted earnings per common share and net income in last year’s second quarter were $2.55 and $348 million, respectively. Those

 

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2-2-2-2-2

M&T BANK CORPORATION

 

results include after-tax gains from the sale of investment securities of $34 million and the effect of the reversal of an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust that resulted in a reduction of expenses having an after-tax impact of $15 million. Those items increased diluted earnings per common share by $.38 in 2013’s second quarter.

Reflecting on the recent quarter’s performance, René F. Jones, Vice Chairman and Chief Financial Officer, noted, “Results for the second quarter reflected an improvement in revenue from the first quarter in the areas of mortgage banking, trust and deposit services. M&T’s credit quality measures were strong during the quarter. While operating expense levels continue to be elevated, significant progress has been made on several key initiatives related to BSA/AML activities, Compliance, Risk Management and Capital Planning.”

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 items are considered by management to be “nonoperating” in nature. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

 

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3-3-3-3-3

M&T BANK CORPORATION

 

Diluted net operating earnings per common share were $2.02 in the recent quarter, compared with $1.66 and $2.65 in the initial quarter of 2014 and last year’s second quarter, respectively. Net operating income during the second quarter of 2014 was $290 million, compared with $235 million in the first quarter of 2014 and $361 million in the second quarter of 2013. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income was 1.35% and 14.92%, respectively, in the second quarter of 2014. The comparable returns were 1.15% and 12.76% in the first quarter of 2014 and 1.81% and 22.72% in the second quarter of 2013.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis aggregated $675 million in the second quarter of 2014, down slightly from $684 million in the year-earlier period. The effect of growth in average earning assets, predominantly due to a $5.7 billion rise in average investment securities, was offset by a 31 basis point narrowing of the net interest margin to 3.40% in the recent quarter from 3.71% in the second quarter of 2013. The significant increase in investment securities reflects M&T’s continued efforts to meet proposed regulatory liquidity requirements. Taxable-equivalent net interest income in the recent quarter was up 2% from $662 million in the first quarter of 2014. That improvement reflects a $3.3 billion increase in average earning assets, including a $1.7 billion or 18% rise in average investment securities resulting from continued purchases of mortgage-backed securities, partially offset by a 12 basis point decline in the net interest margin. The narrowing of the recent quarter’s net interest margin as compared with the second quarter of 2013 and the initial 2014 quarter reflects continuing downward pressure on loan yields, increased balances of investment securities and higher levels of deposits held at the Federal Reserve Bank of New York.

 

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M&T BANK CORPORATION

 

Provision for Credit Losses/Asset Quality. The provision for credit losses was $30 million in the second quarter of 2014, compared with $57 million and $32 million in the year-earlier quarter and the first quarter of 2014, respectively. Net charge-offs of loans were $29 million during the recent quarter, improved from $57 million in the second quarter of 2013 and $32 million in the first quarter of 2014. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .18% and .35% in the second quarters of 2014 and 2013, respectively, and .20% in the first quarter of 2014.

Loans classified as nonaccrual declined to $880 million, or 1.36% of total loans outstanding at June 30, 2014, compared with $965 million or 1.46% a year earlier and $891 million or 1.39% at March 31, 2014. Assets taken in foreclosure of defaulted loans were $60 million at June 30, 2014, improved from $82 million at June 30, 2013 and comparable to $59 million at March 31, 2014.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. As a result of those analyses, the allowance totaled $918 million or 1.42% of loans outstanding at June 30, 2014, compared with $927 million or 1.41% of loans at June 30, 2013 and $917 million or 1.43% of loans at March 31, 2014.

Noninterest Income and Expense. Noninterest income aggregated $456 million in the second quarter of 2014, compared with $509 million in the year-earlier quarter and $420 million in the first quarter of 2014. Reflected in the second quarter of 2013 were net pre-tax gains of $56 million from the noted sales of investment securities. Excluding those gains, noninterest income in the second quarter of 2014 was up from $452 million in the year-

 

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M&T BANK CORPORATION

 

earlier quarter and was 9% higher than the $420 million in the initial quarter of 2014. Higher mortgage banking revenues and trust income in the recent quarter contributed to those improvements.

Noninterest expense in the second quarter of 2014 totaled $681 million, up from $599 million in the year-earlier quarter, but down from $702 million in the first quarter of 2014. 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 $672 million in the recent quarter, compared with $578 million in the second quarter of 2013 and $692 million in 2014’s initial quarter. The higher level of operating expenses in the recent quarter as compared with the year-earlier period was predominantly the result of costs for professional services and salaries associated with BSA/AML activities, compliance, capital planning and stress testing, risk management, and other operational initiatives. As compared with the first quarter of 2014, the recent quarter’s lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation, which were seasonally higher in the initial 2014 period, partially offset by the noted increase in litigation reserves.

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 59.4% in the second quarter of 2014, compared with 50.9% in the year-earlier quarter and 63.9% in the first quarter of 2014.

 

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6-6-6-6-6

M&T BANK CORPORATION

 

Balance Sheet. M&T had total assets of $90.8 billion at June 30, 2014, up 9% from $83.2 billion a year earlier. Investment securities were $12.1 billion at June 30, 2014, up $6.9 billion or 133% from June 30, 2013. M&T has added investment securities during 2013 and 2014 through purchase and loan securitization transactions in order to enhance its liquidity position in response to proposed regulatory requirements. Loans and leases, net of unearned discount, totaled $64.7 billion at the recent quarter-end, compared with $66.0 billion at June 30, 2013. Total deposits rose 6% to $69.8 billion at June 30, 2014 from $65.7 billion a year earlier.

Total shareholders’ equity rose 14% to $12.2 billion at June 30, 2014 from $10.7 billion a year earlier, representing 13.40% and 12.88%, respectively, of total assets. Common shareholders’ equity was $10.9 billion, or $82.86 per share, at June 30, 2014, up from $9.8 billion, or $75.98 per share, at June 30, 2013. Tangible equity per common share rose 16% to $55.89 at the recent quarter-end from $48.26 a year earlier. Common shareholders’ equity per share and tangible equity per common share were $81.05 and $53.92, respectively, at March 31, 2014. 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 estimated Tier 1 common ratio, a regulatory capital measure, was 9.62% at June 30, 2014, compared with 8.55% and 9.45% at June 30, 2013 and March 31, 2014, respectively. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under the capital rules approved in July 2013 on a fully phased-in basis was approximately 9.35% as of June 30, 2014.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss second quarter financial results

 

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7-7-7-7-7

M&T BANK CORPORATION

 

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# 66984191. 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 Sunday, July 20, 2014 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID# 66984191. The event will also be archived and available by 7:00 p.m. today on M&T’s website at http://ir.mandtbank.com/events.cfm.

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

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

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit

 

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8-8-8-8-8

M&T BANK CORPORATION

 

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 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

 

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M&T BANK CORPORATION

 

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 June 30												Six months ended June 30
Amounts in thousands, except per share		2014				2013				Change				2014				2013				Change
Performance
Net income		$	284,336				348,466				-18	%		$	513,353				622,579				-18	%
Net income available to common shareholders			260,695				328,557				-21				472,429				583,633				-19
Per common share:
Basic earnings		$	1.99				2.56				-22	%		$	3.62				4.56				-21	%
Diluted earnings			1.98				2.55				-22				3.59				4.53				-21
Cash dividends		$	.70				.70				—			$	1.40				1.40				—
Common shares outstanding:
Average - diluted (1)			131,828				129,017				2	%			131,479				128,828				2	%
Period end (2)			131,953				129,464				2				131,953				129,464				2
Return on (annualized):
Average total assets			1.27	%			1.68	%							1.17	%			1.52	%
Average common shareholders’ equity			9.79	%			13.78	%							9.02	%			12.47	%
Taxable-equivalent net interest income		$	674,963				683,804				-1	%		$	1,337,341				1,346,304				-1	%
Yield on average earning assets			3.73	%			4.10	%							3.80	%			4.12	%
Cost of interest-bearing liabilities			.51	%			.62	%							.53	%			.63	%
Net interest spread			3.22	%			3.48	%							3.27	%			3.49	%
Contribution of interest-free funds			.18	%			.23	%							.19	%			.22	%
Net interest margin			3.40	%			3.71	%							3.46	%			3.71	%
Net charge-offs to average total net loans (annualized)			.18	%			.35	%							.19	%			.29	%
Net operating results (3)
Net operating income		$	289,974				360,734				-20	%		$	525,136				645,870				-19	%
Diluted net operating earnings per common share			2.02				2.65				-24				3.68				4.71				-22
Return on (annualized):
Average tangible assets			1.35	%			1.81	%							1.25	%			1.65	%
Average tangible common equity			14.92	%			22.72	%							13.86	%			20.76	%
Efficiency ratio			59.39	%			50.92	%							61.62	%			53.36	%

 

		At June 30
		2014				2013				Change
Loan quality
Nonaccrual loans		$	880,134				964,906				-9	%
Real estate and other foreclosed assets			59,793				82,088				-27	%
Total nonperforming assets		$	939,927				1,046,994				-10	%
Accruing loans past due 90 days or more (4)		$	289,016				340,467				-15	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	81,817				69,508				18	%
Accruing loans past due 90 days or more			275,846				315,281				-13	%
Renegotiated loans		$	270,223				263,351				3	%
Acquired accruing loans past due 90 days or more (5)		$	124,217				155,686				-20	%
Purchased impaired loans (6):
Outstanding customer balance		$	504,584				725,196				-30	%
Carrying amount			282,517				394,697				-28	%
Nonaccrual loans to total net loans			1.36	%			1.46	%
Allowance for credit losses to total loans			1.42	%			1.41	%

 

(1)	Includes common stock equivalents.

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

(3)

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

(4)	Excludes acquired loans.

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

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

 

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11-11-11-11-11

M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands, except per share		June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013
Performance
Net income		$	284,336				229,017				221,422				294,479				348,466
Net income available to common shareholders			260,695				211,731				203,451				275,356				328,557
Per common share:
Basic earnings		$	1.99				1.63				1.57				2.13				2.56
Diluted earnings			1.98				1.61				1.56				2.11				2.55
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average - diluted (1)			131,828				131,126				130,464				130,265				129,017
Period end (2)			131,953				131,431				130,564				130,241				129,464
Return on (annualized):
Average total assets			1.27	%			1.07	%			1.03	%			1.39	%			1.68	%
Average common shareholders’ equity			9.79	%			8.22	%			7.99	%			11.06	%			13.78	%
Taxable-equivalent net interest income		$	674,963				662,378				672,683				679,213				683,804
Yield on average earning assets			3.73	%			3.87	%			3.92	%			3.98	%			4.10	%
Cost of interest-bearing liabilities			.51	%			.55	%			.56	%			.58	%			.62	%
Net interest spread			3.22	%			3.32	%			3.36	%			3.40	%			3.48	%
Contribution of interest-free funds			.18	%			.20	%			.20	%			.21	%			.23	%
Net interest margin			3.40	%			3.52	%			3.56	%			3.61	%			3.71	%
Net charge-offs to average total net loans (annualized)			.18	%			.20	%			.26	%			.29	%			.35	%
Net operating results (3)
Net operating income		$	289,974				235,162				227,797				300,968				360,734
Diluted net operating earnings per common share			2.02				1.66				1.61				2.16				2.65
Return on (annualized):
Average tangible assets			1.35	%			1.15	%			1.11	%			1.48	%			1.81	%
Average tangible common equity			14.92	%			12.76	%			12.67	%			17.64	%			22.72	%
Efficiency ratio			59.39	%			63.95	%			65.48	%			56.03	%			50.92	%

 

		June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013
Loan quality
Nonaccrual loans		$	880,134				890,893				874,156				915,871				964,906
Real estate and other foreclosed assets			59,793				59,407				66,875				89,203				82,088
Total nonperforming assets		$	939,927				950,300				941,031				1,005,074				1,046,994
Accruing loans past due 90 days or more (4)		$	289,016				307,017				368,510				339,792				340,467
Government guaranteed loans included in totals above:
Nonaccrual loans		$	81,817				75,959				63,647				68,519				69,508
Accruing loans past due 90 days or more			275,846				291,418				297,918				320,732				315,281
Renegotiated loans		$	270,223				257,889				257,092				259,301				263,351
Acquired accruing loans past due 90 days or more (5)		$	124,217				120,996				130,162				153,585				155,686
Purchased impaired loans (6):
Outstanding customer balance		$	504,584				534,331				579,975				648,118				725,196
Carrying amount			282,517				303,388				330,792				357,337				394,697
Nonaccrual loans to total net loans			1.36	%			1.39	%			1.36	%			1.44	%			1.46	%
Allowance for credit losses to total loans			1.42	%			1.43	%			1.43	%			1.44	%			1.41	%

 

(1)	Includes common stock equivalents.

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

(3)

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

(4)	Excludes acquired loans.

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

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

 

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12-12-12-12-12

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

		Three months ended June 30												Six months ended June 30
Dollars in thousands		2014				2013				Change				2014				2013				Change
Interest income		$	734,290				750,207				-2	%		$	1,457,242				1,480,182				-2	%
Interest expense			65,176				72,620				-10				131,695				146,545				-10
Net interest income			669,114				677,587				-1				1,325,547				1,333,637				-1
Provision for credit losses			30,000				57,000				-47				62,000				95,000				-35
Net interest income after provision for credit losses			639,114				620,587				3				1,263,547				1,238,637				2
Other income
Mortgage banking revenues			95,656				91,262				5				175,705				184,365				-5
Service charges on deposit accounts			107,368				111,717				-4				211,566				222,666				-5
Trust income			129,893				124,728				4				251,145				246,331				2
Brokerage services income			17,487				17,258				1				33,987				32,969				3
Trading account and foreign exchange gains			8,042				9,224				-13				14,489				18,151				-20
Gain on bank investment securities			—				56,457				—				—				56,457				—
Other-than-temporary impairment losses recognized in earnings			—				—				—				—				(9,800	)			—
Equity in earnings of Bayview Lending Group LLC			(4,055	)			(2,453	)			—				(8,509	)			(6,109	)			—
Other revenues from operations			102,021				100,496				2				198,136				196,541				1
Total other income			456,412				508,689				-10				876,519				941,571				-7
Other expense
Salaries and employee benefits			339,713				323,136				5				711,039				679,687				5
Equipment and net occupancy			68,084				64,278				6				139,251				129,437				8
Printing, postage and supplies			9,180				10,298				-11				20,136				20,997				-4
Amortization of core deposit and other intangible assets			9,234				12,502				-26				19,296				25,845				-25
FDIC assessments			15,155				17,695				-14				30,643				37,133				-17
Other costs of operations			239,828				170,682				41				463,100				341,088				36
Total other expense			681,194				598,591				14				1,383,465				1,234,187				12
Income before income taxes			414,332				530,685				-22				756,601				946,021				-20
Applicable income taxes			129,996				182,219				-29				243,248				323,442				-25
Net income		$	284,336				348,466				-18	%		$	513,353				622,579				-18	%

 

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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		June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013
Interest income		$	734,290				722,952				734,466				742,686				750,207
Interest expense			65,176				66,519				67,982				69,578				72,620
Net interest income			669,114				656,433				666,484				673,108				677,587
Provision for credit losses			30,000				32,000				42,000				48,000				57,000
Net interest income after provision for credit losses			639,114				624,433				624,484				625,108				620,587
Other income
Mortgage banking revenues			95,656				80,049				82,169				64,731				91,262
Service charges on deposit accounts			107,368				104,198				110,436				113,839				111,717
Trust income			129,893				121,252				125,876				123,801				124,728
Brokerage services income			17,487				16,500				15,807				16,871				17,258
Trading account and foreign exchange gains			8,042				6,447				13,690				8,987				9,224
Gain on bank investment securities			—				—				—				—				56,457
Equity in earnings of Bayview Lending Group LLC			(4,055	)			(4,454	)			(6,136	)			(3,881	)			(2,453	)
Other revenues from operations			102,021				96,115				104,404				153,040				100,496
Total other income			456,412				420,107				446,246				477,388				508,689
Other expense
Salaries and employee benefits			339,713				371,326				336,159				339,332				323,136
Equipment and net occupancy			68,084				71,167				68,670				66,220				64,278
Printing, postage and supplies			9,180				10,956				8,808				9,752				10,298
Amortization of core deposit and other intangible assets			9,234				10,062				10,439				10,628				12,502
FDIC assessments			15,155				15,488				17,574				14,877				17,695
Other costs of operations			239,828				223,272				301,422				217,817				170,682
Total other expense			681,194				702,271				743,072				658,626				598,591
Income before income taxes			414,332				342,269				327,658				443,870				530,685
Applicable income taxes			129,996				113,252				106,236				149,391				182,219
Net income		$	284,336				229,017				221,422				294,479				348,466

 

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14-14-14-14-14

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		June 30
Dollars in thousands		2014				2013				Change
ASSETS
Cash and due from banks		$	1,827,197				1,350,015				35	%
Interest-bearing deposits at banks			3,032,530				2,555,354				19
Federal funds sold and agreements to resell securities			90,239				124,487				-28
Trading account assets			313,325				378,235				-17
Investment securities			12,120,195				5,210,526				133
Loans and leases:
Commercial, financial, etc.			19,105,892				18,021,812				6
Real estate - commercial			26,374,274				26,116,394				1
Real estate - consumer			8,656,766				10,399,749				-17
Consumer			10,610,761				11,433,911				-7
Total loans and leases, net of unearned discount			64,747,693				65,971,866				-2
Less: allowance for credit losses			917,666				927,065				-1
Net loans and leases			63,830,027				65,044,801				-2
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			49,555				89,918				-45
Other assets			6,047,309				4,951,044				22
Total assets		$	90,835,002				83,229,005				9	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	26,088,763				24,074,815				8	%
Interest-bearing deposits			43,502,602				41,302,212				5
Deposits at Cayman Islands office			237,890				284,443				-16
Total deposits			69,829,255				65,661,470				6
Short-term borrowings			161,631				307,740				-47
Accrued interest and other liabilities			1,283,430				1,421,067				-10
Long-term borrowings			7,391,931				5,122,398				44
Total liabilities			78,666,247				72,512,675				8
Shareholders’ equity:
Preferred			1,231,500				876,796				40
Common (1)			10,937,255				9,839,534				11
Total shareholders’ equity			12,168,755				10,716,330				14
Total liabilities and shareholders’ equity		$	90,835,002				83,229,005				9	%

 

(1)	Reflects accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30, 2014 and accumulated other comprehensive loss, net of applicable income tax effect, of $227.8 million at June 30, 2013.

 

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15-15-15-15-15

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

Dollars in thousands		June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013
ASSETS
Cash and due from banks		$	1,827,197				1,671,052				1,573,361				1,941,944				1,350,015
Interest-bearing deposits at banks			3,032,530				3,299,185				1,651,138				1,925,811				2,555,354
Federal funds sold and agreements to resell securities			90,239				92,066				99,573				117,809				124,487
Trading account assets			313,325				314,807				376,131				371,370				378,235
Investment securities			12,120,195				10,364,249				8,796,497				8,309,773				5,210,526
Loans and leases:
Commercial, financial, etc.			19,105,892				18,896,070				18,705,216				17,911,149				18,021,812
Real estate - commercial			26,374,274				26,104,086				26,148,208				26,345,267				26,116,394
Real estate - consumer			8,656,766				8,774,095				8,928,221				9,228,003				10,399,749
Consumer			10,610,761				10,360,827				10,291,514				10,174,623				11,433,911
Total loans and leases, net of unearned discount			64,747,693				64,135,078				64,073,159				63,659,042				65,971,866
Less: allowance for credit losses			917,666				916,768				916,676				916,370				927,065
Net loans and leases			63,830,027				63,218,310				63,156,483				62,742,672				65,044,801
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			49,555				58,789				68,851				79,290				89,918
Other assets			6,047,309				5,987,277				5,915,732				5,414,191				4,951,044
Total assets		$	90,835,002				88,530,360				85,162,391				84,427,485				83,229,005
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	26,088,763				25,244,200				24,661,007				24,150,771				24,074,815
Interest-bearing deposits			43,502,602				43,207,286				42,134,859				42,084,860				41,302,212
Deposits at Cayman Islands office			237,890				247,880				322,746				316,510				284,443
Total deposits			69,829,255				68,699,366				67,118,612				66,552,141				65,661,470
Short-term borrowings			161,631				230,209				260,455				246,019				307,740
Accrued interest and other liabilities			1,283,430				1,462,725				1,368,922				1,491,797				1,421,067
Long-term borrowings			7,391,931				6,251,197				5,108,870				5,121,326				5,122,398
Total liabilities			78,666,247				76,643,497				73,856,859				73,411,283				72,512,675
Shareholders’ equity:
Preferred			1,231,500				1,231,500				881,500				879,010				876,796
Common (1)			10,937,255				10,655,363				10,424,032				10,137,192				9,839,534
Total shareholders’ equity			12,168,755				11,886,863				11,305,532				11,016,202				10,716,330
Total liabilities and shareholders’ equity		$	90,835,002				88,530,360				85,162,391				84,427,485				83,229,005

 

(1)

Reflects accumulated other comprehensive income, net of applicable income tax effect, of $40.3 million at June 30, 2014, and accumulated other comprehensive loss, net of applicable income tax effect, of $25.3 million at March 31, 2014, $64.2 million at December 31, 2013, $198.1 million at September 30, 2013 and $227.8 million at June 30, 2013.

 

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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 June 30, 2014 from								Six months ended June 30
		June 30, 2014								June 30, 2013								March 31, 2014
Dollars in millions																										June 30,				March 31,				2014								2013								Change in balance
		Balance				Rate				Balance				Rate				Balance				Rate				2013				2014				Balance				Rate				Balance				Rate
ASSETS
Interest-bearing deposits at banks		$	4,080				.25	%			2,403				.24	%			3,089				.25	%			70	%			32	%		$	3,587				.25	%			1,470				.24	%			144	%
Federal funds sold and agreements to resell securities			90				.07				199				.09				100				.07				-55				-9				95				.07				141				.10				-32
Trading account assets			84				1.25				86				1.43				71				2.68				-2				18				78				1.91				81				2.45				-4
Investment securities			10,959				3.19				5,293				3.34				9,265				3.34				107				18				10,117				3.26				5,546				3.33				82
Loans and leases, net of unearned discount
Commercial, financial, etc.			18,978				3.34				17,713				3.61				18,476				3.37				7				3				18,728				3.35				17,522				3.64				7
Real estate - commercial			26,140				4.22				26,051				4.72				26,143				4.40				—				—				26,141				4.31				25,983				4.57				1
Real estate - consumer			8,746				4.36				10,806				4.05				8,844				4.19				-19				-1				8,795				4.27				10,973				4.07				-20
Consumer			10,479				4.52				11,409				4.58				10,300				4.59				-8				2				10,390				4.56				11,438				4.62				-9
Total loans and leases, net			64,343				4.05				65,979				4.32				63,763				4.14				-2				1				64,054				4.09				65,916				4.28				-3
Total earning assets			79,556				3.73				73,960				4.10				76,288				3.87				8				4				77,931				3.80				73,154				4.12				7
Goodwill			3,525								3,525								3,525								—				—				3,525								3,525								—
Core deposit and other intangible assets			53								95								64								-44				-15				59								102								-43
Other assets			6,739								5,772								6,788								17				-1				6,763								5,856								15
Total assets		$	89,873								83,352								86,665								8	%			4	%		$	88,278								82,637								7	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	1,026				.13				941				.14				988				.12				9	%			4	%		$	1,007				.13				917				.14				10	%
Savings deposits			39,478				.11				36,459				.15				38,358				.12				8				3				38,921				.12				35,930				.16				8
Time deposits			3,350				.46				4,210				.71				3,460				.46				-20				-3				3,404				.46				4,323				.73				-21
Deposits at Cayman Islands office			339				.21				326				.25				380				.22				4				-11				360				.22				591				.20				-39
Total interest-bearing deposits			44,193				.14				41,936				.21				43,186				.15				5				2				43,692				.15				41,761				.22				5
Short-term borrowings			220				.05				343				.11				264				.05				-36				-17				242				.05				489				.13				-51
Long-term borrowings			6,525				3.05				5,051				4.03				5,897				3.47				29				11				6,213				3.25				4,871				4.20				28
Total interest-bearing liabilities			50,938				.51				47,330				.62				49,347				.55				8				3				50,147				.53				47,121				.63				6
Noninterest-bearing deposits			25,466								23,744								24,141								7				5				24,807								23,352								6
Other liabilities			1,430								1,715								1,529								-17				-6				1,479								1,720								-14
Total liabilities			77,834								72,789								75,017								7				4				76,433								72,193								6
Shareholders’ equity			12,039								10,563								11,648								14				3				11,845								10,444								13
Total liabilities and shareholders’ equity		$	89,873								83,352								86,665								8	%			4	%		$	88,278								82,637								7	%
Net interest spread							3.22								3.48								3.32																3.27								3.49
Contribution of interest-free funds							.18								.23								.20																.19								.22
Net interest margin							3.40	%							3.71	%							3.52	%															3.46	%							3.71	%

 

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17-17-17-17-17

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended June 30								Six months ended June 30
		2014				2013				2014				2013
Income statement data
In thousands, except per share
Net income
Net income		$	284,336				348,466			$	513,353				622,579
Amortization of core deposit and other intangible assets (1)			5,638				7,632				11,783				15,780
Merger-related expenses (1)			—				4,636				—				7,511
Net operating income		$	289,974				360,734			$	525,136				645,870
Earnings per common share
Diluted earnings per common share		$	1.98				2.55			$	3.59				4.53
Amortization of core deposit and other intangible assets (1)			.04				.06				.09				.12
Merger-related expenses (1)			—				.04				—				.06
Diluted net operating earnings per common share		$	2.02				2.65			$	3.68				4.71
Other expense
Other expense		$	681,194				598,591			$	1,383,465				1,234,187
Amortization of core deposit and other intangible assets			(9,234	)			(12,502	)			(19,296	)			(25,845	)
Merger-related expenses			—				(7,632	)			—				(12,364	)
Noninterest operating expense		$	671,960				578,457			$	1,364,169				1,195,978
Merger-related expenses
Salaries and employee benefits		$	—				300			$	—				836
Equipment and net occupancy			—				489				—				690
Printing, postage and supplies			—				998				—				1,825
Other costs of operations			—				5,845				—				9,013
Total		$	—				7,632			$	—				12,364
Efficiency ratio
Noninterest operating expense (numerator)		$	671,960				578,457			$	1,364,169				1,195,978
Taxable-equivalent net interest income			674,963				683,804				1,337,341				1,346,304
Other income			456,412				508,689				876,519				941,571
Less: Gain on bank investment securities			—				56,457				—				56,457
Net OTTI losses recognized in earnings			—				—				—				(9,800	)
Denominator		$	1,131,375				1,136,036			$	2,213,860				2,241,218
Efficiency ratio			59.39	%			50.92	%			61.62	%			53.36	%
Balance sheet data
In millions
Average assets
Average assets		$	89,873				83,352			$	88,278				82,637
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(53	)			(95	)			(59	)			(102	)
Deferred taxes			16				28				18				30
Average tangible assets		$	86,311				79,760			$	84,712				79,040
Average common equity
Average total equity		$	12,039				10,563			$	11,845				10,444
Preferred stock			(1,231	)			(876	)			(1,152	)			(876	)
Average common equity			10,808				9,687				10,693				9,568
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(53	)			(95	)			(59	)			(102	)
Deferred taxes			16				28				18				30
Average tangible common equity		$	7,246				6,095			$	7,127				5,971
At end of quarter
Total assets
Total assets		$	90,835				83,229
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(49	)			(90	)
Deferred taxes			15				27
Total tangible assets		$	87,276				79,641
Total common equity
Total equity		$	12,169				10,716
Preferred stock			(1,232	)			(877	)
Undeclared dividends - cumulative preferred stock			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			10,934				9,836
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(49	)			(90	)
Deferred taxes			15				27
Total tangible common equity		$	7,375				6,248

 

(1)	After any related tax effect.

 

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18-18-18-18-18

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

		Three months ended
		June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013
Income statement data
In thousands, except per share
Net income
Net income		$	284,336				229,017				221,422				294,479				348,466
Amortization of core deposit and other intangible assets (1)			5,638				6,145				6,375				6,489				7,632
Merger-related expenses (1)			—				—				—				—				4,636
Net operating income		$	289,974				235,162				227,797				300,968				360,734
Earnings per common share
Diluted earnings per common share		$	1.98				1.61				1.56				2.11				2.55
Amortization of core deposit and other intangible assets (1)			.04				.05				.05				.05				.06
Merger-related expenses (1)			—				—				—				—				.04
Diluted net operating earnings per common share		$	2.02				1.66				1.61				2.16				2.65
Other expense
Other expense		$	681,194				702,271				743,072				658,626				598,591
Amortization of core deposit and other intangible assets			(9,234	)			(10,062	)			(10,439	)			(10,628	)			(12,502	)
Merger-related expenses			—				—				—				—				(7,632	)
Noninterest operating expense		$	671,960				692,209				732,633				647,998				578,457
Merger-related expenses
Salaries and employee benefits		$	—				—				—				—				300
Equipment and net occupancy			—				—				—				—				489
Printing, postage and supplies			—				—				—				—				998
Other costs of operations			—				—				—				—				5,845
Total		$	—				—				—				—				7,632
Efficiency ratio
Noninterest operating expense (numerator)		$	671,960				692,209				732,633				647,998				578,457
Taxable-equivalent net interest income			674,963				662,378				672,683				679,213				683,804
Other income			456,412				420,107				446,246				477,388				508,689
Less: Gain on bank investment securities			—				—				—				—				56,457
Net OTTI losses recognized in earnings			—				—				—				—				—
Denominator		$	1,131,375				1,082,485				1,118,929				1,156,601				1,136,036
Efficiency ratio			59.39	%			63.95	%			65.48	%			56.03	%			50.92	%
Balance sheet data
In millions
Average assets
Average assets		$	89,873				86,665				85,330				84,011				83,352
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(53	)			(64	)			(74	)			(84	)			(95	)
Deferred taxes			16				20				23				25				28
Average tangible assets		$	86,311				83,096				81,754				80,427				79,760
Average common equity
Average total equity		$	12,039				11,648				11,109				10,881				10,563
Preferred stock			(1,231	)			(1,072	)			(881	)			(878	)			(876	)
Average common equity			10,808				10,576				10,228				10,003				9,687
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(53	)			(64	)			(74	)			(84	)			(95	)
Deferred taxes			16				20				23				25				28
Average tangible common equity		$	7,246				7,007				6,652				6,419				6,095
At end of quarter
Total assets
Total assets		$	90,835				88,530				85,162				84,427				83,229
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(49	)			(59	)			(69	)			(79	)			(90	)
Deferred taxes			15				19				21				24				27
Total tangible assets		$	87,276				84,965				81,589				80,847				79,641
Total common equity
Total equity		$	12,169				11,887				11,306				11,016				10,716
Preferred stock			(1,232	)			(1,232	)			(882	)			(879	)			(877	)
Undeclared dividends - cumulative preferred stock			(3	)			(3	)			(3	)			(4	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			10,934				10,652				10,421				10,133				9,836
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(49	)			(59	)			(69	)			(79	)			(90	)
Deferred taxes			15				19				21				24				27
Total tangible common equity		$	7,375				7,087				6,848				6,553				6,248

 

(1)	After any related tax effect.

 

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