Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		January 20, 2015
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES 2014 FOURTH QUARTER AND FULL-YEAR PROFITS

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

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the fourth quarter of 2014 were $1.92, up from $1.56 in the year-earlier quarter and $1.91 in the third quarter of 2014. GAAP-basis net income in the recent quarter totaled $278 million, compared with $221 million in the fourth quarter of 2013 and $275 million in 2014’s third 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 1.12% and 9.10%, respectively, compared with 1.03% and 7.99%, respectively, in the year-earlier quarter and 1.17% and 9.18%, respectively, in the third quarter of 2014.

For the full year of 2014, diluted earnings per common share were $7.42, compared with $8.20 for 2013. Net income totaled $1.07 billion in 2014, compared with $1.14 billion in 2013. The 2013 results reflect after-tax gains from investment securities and loan securitization transactions of $67 million ($110 million pre-tax) or $.51 of diluted earnings per common share. Expressed as a rate of return on average assets and average common shareholders’ equity, net income in 2014 was 1.16% and

 

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M&T BANK CORPORATION

 

9.08%, respectively, compared with 1.36% and 10.93%, respectively, in 2013.

Commenting on M&T’s performance in 2014, René F. Jones, Vice Chairman and Chief Financial Officer, noted, “Results for this past year’s final quarter were solid. We had improved revenues, healthy loan growth, stable expense levels and excellent credit experience. Overall, 2014 represented a year of considerable investment in our infrastructure. Significant progress was made on our BSA/AML, compliance, risk management and technology initiatives that will position us well moving forward. In a year of substantial resource commitment, we further strengthened our already formidable balance sheet by raising our capital and liquidity levels.”

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.

Diluted net operating earnings per common share were $1.95 in the final quarter of 2014, compared with $1.61 in the year-earlier period and $1.94 in the third quarter of 2014. Net operating income for the recent quarter was $282 million, compared with

 

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M&T BANK CORPORATION

 

$228 million and $280 million in the fourth quarter of 2013 and the third quarter of 2014, respectively. For the three months ended December 31, 2014, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.18% and 13.55%, respectively, compared with 1.11% and 12.67% in the corresponding 2013 period and 1.24% and 13.80%, respectively, in the third quarter of 2014.

For the year ended December 31, 2014, diluted net operating earnings per common share was $7.57, compared with $8.48 in 2013. Net operating income for 2014 and 2013 totaled $1.09 billion and $1.17 billion, respectively. Net operating income in 2014 expressed as a rate of return on average tangible assets and average tangible common shareholders’ equity was 1.23% and 13.76%, respectively, compared with 1.47% and 17.79%, respectively, in 2013.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis aggregated $688 million in the fourth quarter of 2014, up 2% from $673 million earned in the year-earlier quarter and from $675 million recorded in the third quarter of 2014. As compared with the fourth quarter of 2013, a $12.9 billion rise in average earning assets in the recent quarter, reflecting increases of $6.1 billion in average balances of interest-bearing deposits at banks and $4.6 billion in average investment securities balances, was largely offset by a 46 basis point (hundredths of one percent) decline in the net interest margin to 3.10% in the final 2014 quarter from 3.56% in the year-earlier quarter. The growth in investment securities resulted from progress made in response to new regulatory liquidity requirements that will be effective for M&T in January 2016. The increase in taxable-equivalent net interest income as

 

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M&T BANK CORPORATION

 

compared with the third quarter of 2014 reflects a $5.2 billion rise in average earning assets, due to higher average interest-bearing deposits at banks of $4.0 billion and a $1.0 billion rise in average loans outstanding, largely offset by a 13 basis point decline in the net interest margin, which was attributable to the increased amount of interest-bearing deposits at banks. For the year ended December 31, 2014, net interest income on a taxable-equivalent basis aggregated $2.70 billion, little changed from 2013. A $7.7 billion or 10% increase in average earning assets in 2014 was offset by a 34 basis point narrowing of the net interest margin to 3.31% in 2014 from 3.65% in 2013.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $33 million during the recent quarter, compared with $42 million in the year-earlier quarter and $29 million in the third quarter of 2014. Net charge-offs of loans were $32 million during the fourth quarter of 2014, compared with $42 million and $28 million in the final 2013 quarter and the third quarter of 2014, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .19% and .26% in the fourth quarter of 2014 and 2013, respectively, and .17% in 2014’s third quarter. The provision for credit losses declined 33% to $124 million in 2014 from $185 million in 2013. Net loan charge-offs during 2014 totaled $121 million, or .19% of average loans outstanding, improved from $183 million, or .28% of average loans in 2013.

Loans classified as nonaccrual declined to $799 million, or 1.20% of total loans outstanding at December 31, 2014, improved from $874 million or 1.36% a year earlier and $848 million or 1.29% at September 30, 2014. Assets taken in foreclosure of defaulted loans were $64 million at December 31, 2014, improved

 

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M&T BANK CORPORATION

 

from $67 million and $68 million at December 31, 2013 and September 30, 2014, respectively.

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 $920 million or 1.38% of loans outstanding at December 31, 2014, compared with $917 million or 1.43% a year earlier and $919 million or 1.40% at September 30, 2014.

Noninterest Income and Expense. Noninterest income aggregated $452 million in the recently completed quarter, up from $446 million and $451 million in the fourth quarter of 2013 and the third quarter of 2014, respectively. The improvement as compared with the final 2013 quarter resulted from higher residential mortgage banking revenues associated with loan servicing activities.

Noninterest income totaled $1.78 billion and $1.87 billion during the years ended December 31, 2014 and 2013, respectively. The higher level of noninterest income in 2013 was primarily the result of net gains on investment securities and gains on securitization activities, which aggregated $110 million. Excluding those gains, noninterest income in 2014 was up $24 million from 2013. The major contributors to that improvement were higher residential mortgage banking revenues and trust income, partially offset by declines in service charges on deposit accounts and trading account and foreign exchange gains.

Noninterest expense in the fourth quarter of 2014 totaled $680 million, compared with $743 million in the year-earlier quarter and $679 million in 2014’s third quarter. Included in such

 

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M&T BANK CORPORATION

 

amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets. Exclusive of those expenses, noninterest operating expenses were $673 million in the recent quarter, compared with $733 million and $672 million in the fourth quarter of 2013 and the third quarter of 2014, respectively. The lower noninterest operating expenses in the recent quarter as compared with the year-earlier quarter reflect a decline in professional services costs and a $40 million litigation-related accrual in the final 2013 quarter.

For the year ended December 31, 2014, noninterest expense aggregated $2.74 billion, compared with $2.64 billion in the previous year. Noninterest operating expenses were $2.71 billion in 2014 and $2.58 billion in 2013. The increase in noninterest operating expenses was largely attributable to higher costs for professional services and salaries associated with BSA/AML activities, compliance, capital planning and stress testing, and risk management initiatives, partially offset by lower FDIC assessments.

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 59.1% in the recent quarter, compared with 65.5% in the year-earlier quarter and 59.7% in the third quarter of 2014. The efficiency ratio for the full year 2014 was 60.5%, compared with 57.0% in 2013.

Balance Sheet. M&T had total assets of $96.7 billion at December 31, 2014, up 14% from $85.2 billion a year earlier. Investment securities were $13.0 billion at the recent year-end,

 

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M&T BANK CORPORATION

 

up $4.2 billion or 48% from December 31, 2013. Loans and leases, net of unearned discount, rose 4% to $66.7 billion at the 2014 year-end from $64.1 billion at December 31, 2013. Total deposits were $73.6 billion at the recent year-end, up 10% or $6.5 billion from $67.1 billion at December 31, 2013.

Total shareholders’ equity rose $1.0 billion or 9% to $12.3 billion at December 31, 2014 from $11.3 billion a year earlier, representing 12.76% and 13.28%, respectively, of total assets. Common shareholders’ equity was $11.1 billion, or $83.88 per share, at December 31, 2014, compared with $10.4 billion, or $79.81 per share, at December 31, 2013. Tangible equity per common share rose 9% to $57.06 at December 31, 2014 from $52.45 a year earlier. Common shareholders’ equity per share and tangible equity per share were $83.99 and $57.10, respectively, at September 30, 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, rose to 9.83% at December 31, 2014, improved from 9.22% and 9.76% at December 31, 2013 and September 30, 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 9.59% as of December 31, 2014.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss fourth quarter and full-year financial results today at 10:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276.

 

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M&T BANK CORPORATION

 

International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID #65658552. 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 January 23, 2015 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #65658552. The event will also be archived and available by 7:00 p.m. today on M&T’s website at http://ir.mandtbank.com/events.cfm.

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

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

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

 

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M&T BANK CORPORATION

 

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

 

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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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M&T BANK CORPORATION

Financial Highlights

 

Amounts in thousands, except per share		Three months ended December 31												Year ended December 31
		2014				2013				Change				2014				2013				Change
Performance
Net income		$	277,549				221,422				25	%		$	1,066,246				1,138,480				-6	%
Net income available to common shareholders			254,239				203,451				25	%			978,581				1,062,496				-8	%
Per common share:
Basic earnings		$	1.93				1.57				23	%		$	7.47				8.26				-10	%
Diluted earnings			1.92				1.56				23	%			7.42				8.20				-10	%
Cash dividends		$	.70				.70				—			$	2.80				2.80				—
Common shares outstanding:
Average - diluted (1)			132,278				130,464				1	%			131,844				129,603				2	%
Period end (2)			132,354				130,564				1	%			132,354				130,564				1	%
Return on (annualized):
Average total assets			1.12	%			1.03	%							1.16	%			1.36	%
Average common shareholders’ equity			9.10	%			7.99	%							9.08	%			10.93	%
Taxable-equivalent net interest income		$	687,847				672,683				2	%		$	2,700,088				2,698,200				—
Yield on average earning assets			3.44	%			3.92	%							3.65	%			4.03	%
Cost of interest-bearing liabilities			.52	%			.56	%							.53	%			.60	%
Net interest spread			2.92	%			3.36	%							3.12	%			3.43	%
Contribution of interest-free funds			.18	%			.20	%							.19	%			.22	%
Net interest margin			3.10	%			3.56	%							3.31	%			3.65	%
Net charge-offs to average total net loans (annualized)			.19	%			.26	%							.19	%			.28	%
Net operating results (3)
Net operating income		$	281,929				227,797				24	%		$	1,086,903				1,174,635				-7	%
Diluted net operating earnings per common share			1.95				1.61				21	%			7.57				8.48				-11	%
Return on (annualized):
Average tangible assets			1.18	%			1.11	%							1.23	%			1.47	%
Average tangible common equity			13.55	%			12.67	%							13.76	%			17.79	%
Efficiency ratio			59.06	%			65.48	%							60.48	%			57.05	%
		At December 31
		2014				2013				Change
Loan quality
Nonaccrual loans		$	799,151				874,156				-9	%
Real estate and other foreclosed assets			63,635				66,875				-5	%
Total nonperforming assets		$	862,786				941,031				-8	%
Accruing loans past due 90 days or more (4)		$	245,020				368,510				-34	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	69,095				63,647				9	%
Accruing loans past due 90 days or more			217,822				297,918				-27	%
Renegotiated loans		$	202,633				257,092				-21	%
Acquired accruing loans past due 90 days or more (5)		$	110,367				130,162				-15	%
Purchased impaired loans (6):
Outstanding customer balance		$	369,080				579,975				-36	%
Carrying amount			197,737				330,792				-40	%
Nonaccrual loans to total net loans			1.20	%			1.36	%
Allowance for credit losses to total loans			1.38	%			1.43	%

 

(1)	Includes common stock equivalents.

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

(3)

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

(4)	Excludes acquired loans.

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

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

 

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M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands, except per share		December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014				December 31, 2013
Performance
Net income		$	277,549				275,344				284,336				229,017				221,422
Net income available to common shareholders			254,239				251,917				260,695				211,731				203,451
Per common share:
Basic earnings		$	1.93				1.92				1.99				1.63				1.57
Diluted earnings			1.92				1.91				1.98				1.61				1.56
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average - diluted (1)			132,278				132,128				131,828				131,126				130,464
Period end (2)			132,354				132,142				131,953				131,431				130,564
Return on (annualized):
Average total assets			1.12	%			1.17	%			1.27	%			1.07	%			1.03	%
Average common shareholders’ equity			9.10	%			9.18	%			9.79	%			8.22	%			7.99	%
Taxable-equivalent net interest income		$	687,847				674,900				674,963				662,378				672,683
Yield on average earning assets			3.44	%			3.59	%			3.73	%			3.87	%			3.92	%
Cost of interest-bearing liabilities			.52	%			.54	%			.51	%			.55	%			.56	%
Net interest spread			2.92	%			3.05	%			3.22	%			3.32	%			3.36	%
Contribution of interest-free funds			.18	%			.18	%			.18	%			.20	%			.20	%
Net interest margin			3.10	%			3.23	%			3.40	%			3.52	%			3.56	%
Net charge-offs to average total net loans (annualized)			.19	%			.17	%			.18	%			.20	%			.26	%
Net operating results (3)
Net operating income		$	281,929				279,838				289,974				235,162				227,797
Diluted net operating earnings per common share			1.95				1.94				2.02				1.66				1.61
Return on (annualized):
Average tangible assets			1.18	%			1.24	%			1.35	%			1.15	%			1.11	%
Average tangible common equity			13.55	%			13.80	%			14.92	%			12.76	%			12.67	%
Efficiency ratio			59.06	%			59.67	%			59.39	%			63.95	%			65.48	%
		December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014				December 31, 2013
Loan quality
Nonaccrual loans		$	799,151				847,784				880,134				890,893				874,156
Real estate and other foreclosed assets			63,635				67,629				59,793				59,407				66,875
Total nonperforming assets		$	862,786				915,413				939,927				950,300				941,031
Accruing loans past due 90 days or more (4)		$	245,020				312,990				289,016				307,017				368,510
Government guaranteed loans included in totals above:
Nonaccrual loans		$	69,095				68,586				81,817				75,959				63,647
Accruing loans past due 90 days or more			217,822				265,333				275,846				291,418				297,918
Renegotiated loans		$	202,633				209,099				270,223				257,889				257,092
Acquired accruing loans past due 90 days or more (5)		$	110,367				132,147				134,580				120,996				130,162
Purchased impaired loans (6):
Outstanding customer balance		$	369,080				429,915				504,584				534,331				579,975
Carrying amount			197,737				236,662				282,517				303,388				330,792
Nonaccrual loans to total net loans			1.20	%			1.29	%			1.36	%			1.39	%			1.36	%
Allowance for credit losses to total loans			1.38	%			1.40	%			1.42	%			1.43	%			1.43	%

 

(1)	Includes common stock equivalents.

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

(3)

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

(4)	Excludes acquired loans.

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

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

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

		Three months ended December 31												Year ended December 31
Dollars in thousands		2014				2013				Change				2014				2013				Change
Interest income		$	756,612				734,466				3	%		$	2,956,877				2,957,334				—	%
Interest expense			74,772				67,982				10				280,431				284,105				-1
Net interest income			681,840				666,484				2				2,676,446				2,673,229				—
Provision for credit losses			33,000				42,000				-21				124,000				185,000				-33
Net interest income after provision for credit losses			648,840				624,484				4				2,552,446				2,488,229				3
Other income
Mortgage banking revenues			93,675				82,169				14				362,912				331,265				10
Service charges on deposit accounts			106,319				110,436				-4				427,956				446,941				-4
Trust income			128,442				125,876				2				508,258				496,008				2
Brokerage services income			15,809				15,807				—				67,212				65,647				2
Trading account and foreign exchange gains			8,397				13,690				-39				29,874				40,828				-27
Gain on bank investment securities			—				—				—				—				56,457				—
Other-than-temporary impairment losses recognized in earnings			—				—				—				—				(9,800	)			—
Equity in earnings of Bayview Lending Group LLC			(4,049	)			(6,136	)			—				(16,672	)			(16,126	)			—
Other revenues from operations			103,050				104,404				-1				399,733				453,985				-12
Total other income			451,643				446,246				1				1,779,273				1,865,205				-5
Other expense
Salaries and employee benefits			345,135				336,159				3				1,404,950				1,355,178				4
Equipment and net occupancy			62,335				68,670				-9				269,299				264,327				2
Printing, postage and supplies			8,881				8,808				1				38,201				39,557				-3
Amortization of core deposit and other intangible assets			7,170				10,439				-31				33,824				46,912				-28
FDIC assessments			11,695				17,574				-33				55,531				69,584				-20
Other costs of operations			244,892				301,422				-19				941,052				860,327				9
Total other expense			680,108				743,072				-8				2,742,857				2,635,885				4
Income before income taxes			420,375				327,658				28				1,588,862				1,717,549				-7
Applicable income taxes			142,826				106,236				34				522,616				579,069				-10
Net income		$	277,549				221,422				25	%		$	1,066,246				1,138,480				-6	%

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
Dollars in thousands		December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014				December 31, 2013
Interest income		$	756,612				743,023				734,290				722,952				734,466
Interest expense			74,772				73,964				65,176				66,519				67,982
Net interest income			681,840				669,059				669,114				656,433				666,484
Provision for credit losses			33,000				29,000				30,000				32,000				42,000
Net interest income after provision for credit losses			648,840				640,059				639,114				624,433				624,484
Other income
Mortgage banking revenues			93,675				93,532				95,656				80,049				82,169
Service charges on deposit accounts			106,319				110,071				107,368				104,198				110,436
Trust income			128,442				128,671				129,893				121,252				125,876
Brokerage services income			15,809				17,416				17,487				16,500				15,807
Trading account and foreign exchange gains			8,397				6,988				8,042				6,447				13,690
Equity in earnings of Bayview Lending Group LLC			(4,049	)			(4,114	)			(4,055	)			(4,454	)			(6,136	)
Other revenues from operations			103,050				98,547				102,021				96,115				104,404
Total other income			451,643				451,111				456,412				420,107				446,246
Other expense
Salaries and employee benefits			345,135				348,776				339,713				371,326				336,159
Equipment and net occupancy			62,335				67,713				68,084				71,167				68,670
Printing, postage and supplies			8,881				9,184				9,180				10,956				8,808
Amortization of core deposit and other intangible assets			7,170				7,358				9,234				10,062				10,439
FDIC assessments			11,695				13,193				15,155				15,488				17,574
Other costs of operations			244,892				233,060				239,828				223,272				301,422
Total other expense			680,108				679,284				681,194				702,271				743,072
Income before income taxes			420,375				411,886				414,332				342,269				327,658
Applicable income taxes			142,826				136,542				129,996				113,252				106,236
Net income		$	277,549				275,344				284,336				229,017				221,422

 

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15-15-15-15-15

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		December 31
Dollars in thousands		2014				2013				Change
ASSETS
Cash and due from banks		$	1,289,965				1,573,361				-18	%
Interest-bearing deposits at banks			6,470,867				1,651,138				292
Federal funds sold and agreements to resell securities			83,392				99,573				-16
Trading account assets			308,175				376,131				-18
Investment securities			12,993,542				8,796,497				48
Loans and leases:
Commercial, financial, etc.			19,461,292				18,705,216				4
Real estate - commercial			27,567,569				26,148,208				5
Real estate - consumer			8,657,301				8,928,221				-3
Consumer			10,982,794				10,291,514				7
Total loans and leases, net of unearned discount			66,668,956				64,073,159				4
Less: allowance for credit losses			919,562				916,676				—
Net loans and leases			65,749,394				63,156,483				4
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			35,027				68,851				-49
Other assets			6,230,548				5,915,732				5
Total assets		$	96,685,535				85,162,391				14	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	26,947,880				24,661,007				9	%
Interest-bearing deposits			46,457,591				42,134,859				10
Deposits at Cayman Islands office			176,582				322,746				-45
Total deposits			73,582,053				67,118,612				10
Short-term borrowings			192,676				260,455				-26
Accrued interest and other liabilities			1,567,951				1,368,922				15
Long-term borrowings			9,006,959				5,108,870				76
Total liabilities			84,349,639				73,856,859				14
Shareholders’ equity:
Preferred			1,231,500				881,500				40
Common (1)			11,104,396				10,424,032				7
Total shareholders’ equity			12,335,896				11,305,532				9
Total liabilities and shareholders’ equity		$	96,685,535				85,162,391				14	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $181.0 million at December 31, 2014 and $64.2 million at December 31, 2013.

 

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16-16-16-16-16

 

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

Dollars in thousands		December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014				December 31, 2013
ASSETS
Cash and due from banks		$	1,289,965				1,445,877				1,827,197				1,671,052				1,573,361
Interest-bearing deposits at banks			6,470,867				7,676,064				3,032,530				3,299,185				1,651,138
Federal funds sold and agreements to resell securities			83,392				77,766				90,239				92,066				99,573
Trading account assets			308,175				296,913				313,325				314,807				376,131
Investment securities			12,993,542				13,348,368				12,120,195				10,364,249				8,796,497
Loans and leases:
Commercial, financial, etc.			19,461,292				19,112,009				19,105,892				18,896,070				18,705,216
Real estate - commercial			27,567,569				26,942,847				26,374,274				26,104,086				26,148,208
Real estate - consumer			8,657,301				8,663,408				8,656,766				8,774,095				8,928,221
Consumer			10,982,794				10,854,095				10,610,761				10,360,827				10,291,514
Total loans and leases, net of unearned discount			66,668,956				65,572,359				64,747,693				64,135,078				64,073,159
Less: allowance for credit losses			919,562				918,633				917,666				916,768				916,676
Net loans and leases			65,749,394				64,653,726				63,830,027				63,218,310				63,156,483
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			35,027				42,197				49,555				58,789				68,851
Other assets			6,230,548				6,162,806				6,047,309				5,987,277				5,915,732
Total assets		$	96,685,535				97,228,342				90,835,002				88,530,360				85,162,391
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	26,947,880				27,440,524				26,088,763				25,244,200				24,661,007
Interest-bearing deposits			46,457,591				46,659,442				43,502,602				43,207,286				42,134,859
Deposits at Cayman Islands office			176,582				241,536				237,890				247,880				322,746
Total deposits			73,582,053				74,341,502				69,829,255				68,699,366				67,118,612
Short-term borrowings			192,676				164,609				161,631				230,209				260,455
Accrued interest and other liabilities			1,567,951				1,327,524				1,283,430				1,462,725				1,368,922
Long-term borrowings			9,006,959				9,061,391				7,391,931				6,251,197				5,108,870
Total liabilities			84,349,639				84,895,026				78,666,247				76,643,497				73,856,859
Shareholders’ equity:
Preferred			1,231,500				1,231,500				1,231,500				1,231,500				881,500
Common (1)			11,104,396				11,101,816				10,937,255				10,655,363				10,424,032
Total shareholders’ equity			12,335,896				12,333,316				12,168,755				11,886,863				11,305,532
Total liabilities and shareholders’ equity		$	96,685,535				97,228,342				90,835,002				88,530,360				85,162,391

 

(1)

Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $181.0 million at December 31, 2014, $25.3 million at March 31, 2014 and $64.2 million at December 31, 2013, and accumulated other comprehensive income, net of applicable income tax effect, of $12.5 million at September 30, 2014 and $40.3 million at June 30, 2014.

 

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17-17-17-17-17

 

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

and Annualized Taxable-equivalent Rates

 

		Three months ended																								Change in balance December 31, 2014 from								Year ended December 31,																Change in balance
Dollars in millions		December 31, 2014								December 31, 2013								September 30, 2014																2014								2013
		Balance				Rate				Balance				Rate				Balance				Rate				December 31, 2013				September 30, 2014				Balance				Rate				Balance				Rate
ASSETS
Interest-bearing deposits at banks		$	9,054				.25	%			2,948				.25	%			5,083				.25	%			207	%			78	%		$	5,342				.25	%			2,139				.24	%			150	%
Federal funds sold and agreements to resell securities			86				.08				115				.07				80				.07				-26				7				89				.07				128				.09				-31
Trading account assets			80				1.76				82				1.36				70				1.65				-3				15				76				1.81				78				1.91				-2
Investment securities			12,978				2.82				8,354				3.32				12,780				2.89				55				2				11,509				3.03				6,615				3.32				74
Loans and leases, net of unearned discount
Commercial, financial, etc.			19,117				3.25				18,096				3.41				18,889				3.29				6				1				18,867				3.31				17,736				3.54				6
Real estate - commercial			27,064				4.24				26,231				4.48				26,487				4.19				3				2				26,461				4.26				26,083				4.53				1
Real estate - consumer			8,654				4.19				8,990				4.20				8,634				4.17				-4				—				8,719				4.23				10,136				4.12				-14
Consumer			10,932				4.49				10,233				4.60				10,753				4.52				7				2				10,618				4.53				11,098				4.60				-4
Total loans and leases, net			65,767				4.01				63,550				4.17				64,763				4.00				3				2				64,665				4.05				65,053				4.24				-1
Total earning assets			87,965				3.44				75,049				3.92				82,776				3.59				17				6				81,681				3.65				74,013				4.03				10
Goodwill			3,525								3,525								3,525								—				—				3,525								3,525								—
Core deposit and other intangible assets			38								74								45								-48				-16				50								90								-44
Other assets			7,116								6,682								6,899								6				3				6,887								6,034								14
Total assets		$	98,644								85,330								93,245								16	%			6	%		$	92,143								83,662								10	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	1,083				.14				933				.13				1,037				.15				16	%			4	%		$	1,034				.14				923				.14				12	%
Savings deposits			42,949				.10				38,079				.14				41,056				.11				13				5				40,474				.11				36,739				.15				10
Time deposits			3,128				.50				3,617				.51				3,227				.47				-14				-3				3,290				.47				4,045				.65				-19
Deposits at Cayman Islands office			265				.22				414				.21				325				.20				-36				-18				327				.21				496				.21				-34
Total interest-bearing deposits			47,425				.13				43,043				.17				45,645				.14				10				4				45,125				.14				42,203				.20				7
Short-term borrowings			195				.05				287				.06				181				.04				-32				7				215				.05				390				.11				-45
Long-term borrowings			8,954				2.62				5,009				3.91				8,547				2.69				79				5				7,492				2.90				4,941				4.05				52
Total interest-bearing liabilities			56,574				.52				48,339				.56				54,373				.54				17				4				52,832				.53				47,534				.60				11
Noninterest-bearing deposits			28,090								24,169								25,127								16				12				25,715								23,721								8
Other liabilities			1,538								1,713								1,498								-10				3				1,499								1,685								-11
Total liabilities			86,202								74,221								80,998								16				6				80,046								72,940								10
Shareholders’ equity			12,442								11,109								12,247								12				2				12,097								10,722								13
Total liabilities and shareholders’ equity		$	98,644								85,330								93,245								16	%			6	%		$	92,143								83,662								10	%
Net interest spread							2.92								3.36								3.05																3.12								3.43
Contribution of interest-free funds							.18								.20								.18																.19								.22
Net interest margin							3.10	%							3.56	%							3.23	%															3.31	%							3.65	%

 

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18-18-18-18-18

 

M&T BANK CORPORATION

Reconciliation of GAAP to Non-GAAP Measures

 

		Three months ended December 31								Year ended December 31
		2014				2013				2014				2013
Income statement data
In thousands, except per share
Net income
Net income		$	277,549				221,422			$	1,066,246				1,138,480
Amortization of core deposit and other intangible assets (1)			4,380				6,375				20,657				28,644
Merger-related expenses (1)			—				—				—				7,511
Net operating income		$	281,929				227,797			$	1,086,903				1,174,635
Earnings per common share
Diluted earnings per common share		$	1.92				1.56			$	7.42				8.20
Amortization of core deposit and other intangible assets (1)			.03				.05				.15				.22
Merger-related expenses (1)			—				—				—				.06
Diluted net operating earnings per common share		$	1.95				1.61			$	7.57				8.48
Other expense
Other expense		$	680,108				743,072			$	2,742,857				2,635,885
Amortization of core deposit and other intangible assets			(7,170	)			(10,439	)			(33,824	)			(46,912	)
Merger-related expenses			—				—				—				(12,364	)
Noninterest operating expense		$	672,938				732,633			$	2,709,033				2,576,609
Merger-related expenses
Salaries and employee benefits		$	—				—			$	—				836
Equipment and net occupancy			—				—				—				690
Printing, postage and supplies			—				—				—				1,825
Other costs of operations			—				—				—				9,013
Total		$	—				—			$	—				12,364
Efficiency ratio
Noninterest operating expense (numerator)		$	672,938				732,633			$	2,709,033				2,576,609
Taxable-equivalent net interest income			687,847				672,683				2,700,088				2,698,200
Other income			451,643				446,246				1,779,273				1,865,205
Less: Gain on bank investment securities			—				—				—				56,457
Net OTTI losses recognized in earnings			—				—				—				(9,800	)
Denominator		$	1,139,490				1,118,929			$	4,479,361				4,516,748
Efficiency ratio			59.06	%			65.48	%			60.48	%			57.05	%
Balance sheet data
In millions
Average assets
Average assets		$	98,644				85,330			$	92,143				83,662
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(38	)			(74	)			(50	)			(90	)
Deferred taxes			12				23				15				27
Average tangible assets		$	95,093				81,754			$	88,583				80,074
Average common equity
Average total equity		$	12,442				11,109			$	12,097				10,722
Preferred stock			(1,231	)			(881	)			(1,192	)			(878	)
Average common equity			11,211				10,228				10,905				9,844
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(38	)			(74	)			(50	)			(90	)
Deferred taxes			12				23				15				27
Average tangible common equity		$	7,660				6,652			$	7,345				6,256
At end of quarter
Total assets
Total assets		$	96,686				85,162
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(35	)			(69	)
Deferred taxes			11				21
Total tangible assets		$	93,137				81,589
Total common equity
Total equity		$	12,336				11,306
Preferred stock			(1,231	)			(882	)
Undeclared dividends - cumulative preferred stock			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			11,102				10,421
Goodwill			(3,525	)			(3,525	)
Core deposit and other intangible assets			(35	)			(69	)
Deferred taxes			11				21
Total tangible common equity		$	7,553				6,848

 

(1)	After any related tax effect.

 

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19-19-19-19-19

 

M&T BANK CORPORATION

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

 

		Three months ended
		December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014				December 31, 2013
Income statement data
In thousands, except per share
Net income
Net income		$	277,549				275,344				284,336				229,017				221,422
Amortization of core deposit and other intangible assets (1)			4,380				4,494				5,638				6,145				6,375
Net operating income		$	281,929				279,838				289,974				235,162				227,797
Earnings per common share
Diluted earnings per common share		$	1.92				1.91				1.98				1.61				1.56
Amortization of core deposit and other intangible assets (1)			.03				.03				.04				.05				.05
Diluted net operating earnings per common share		$	1.95				1.94				2.02				1.66				1.61
Other expense
Other expense		$	680,108				679,284				681,194				702,271				743,072
Amortization of core deposit and other intangible assets			(7,170	)			(7,358	)			(9,234	)			(10,062	)			(10,439	)
Noninterest operating expense		$	672,938				671,926				671,960				692,209				732,633
Efficiency ratio
Noninterest operating expense (numerator)		$	672,938				671,926				671,960				692,209				732,633
Taxable-equivalent net interest income			687,847				674,900				674,963				662,378				672,683
Other income			451,643				451,111				456,412				420,107				446,246
Denominator		$	1,139,490				1,126,011				1,131,375				1,082,485				1,118,929
Efficiency ratio			59.06	%			59.67	%			59.39	%			63.95	%			65.48	%
Balance sheet data
In millions
Average assets
Average assets		$	98,644				93,245				89,873				86,665				85,330
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(38	)			(45	)			(53	)			(64	)			(74	)
Deferred taxes			12				14				16				20				23
Average tangible assets		$	95,093				89,689				86,311				83,096				81,754
Average common equity
Average total equity		$	12,442				12,247				12,039				11,648				11,109
Preferred stock			(1,231	)			(1,232	)			(1,231	)			(1,072	)			(881	)
Average common equity			11,211				11,015				10,808				10,576				10,228
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(38	)			(45	)			(53	)			(64	)			(74	)
Deferred taxes			12				14				16				20				23
Average tangible common equity		$	7,660				7,459				7,246				7,007				6,652
At end of quarter
Total assets
Total assets		$	96,686				97,228				90,835				88,530				85,162
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(35	)			(42	)			(49	)			(59	)			(69	)
Deferred taxes			11				13				15				19				21
Total tangible assets		$	93,137				93,674				87,276				84,965				81,589
Total common equity
Total equity		$	12,336				12,333				12,169				11,887				11,306
Preferred stock			(1,231	)			(1,232	)			(1,232	)			(1,232	)			(882	)
Undeclared dividends - cumulative preferred stock			(3	)			(2	)			(3	)			(3	)			(3	)
Common equity, net of undeclared cumulative preferred dividends			11,102				11,099				10,934				10,652				10,421
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(35	)			(42	)			(49	)			(59	)			(69	)
Deferred taxes			11				13				15				19				21
Total tangible common equity		$	7,553				7,545				7,375				7,087				6,848

 

(1)	After any related tax effect.

###