BUFFALO, N.Y., Oct. 20, 2021 /PRNewswire/ -- M&T Bank
Corporation ("M&T") (NYSE: MTB) today reported its results of
operations for the quarter ended September 30, 2021.
GAAP Results of Operations. Diluted earnings per common share
measured in accordance with generally accepted accounting
principles ("GAAP") were $3.69 in the
third quarter of 2021, up from $2.75
in the year-earlier quarter and $3.41
in the second quarter of 2021. GAAP-basis net income was
$495 million in the recent quarter,
$372 million in the third quarter of
2020 and $458 million in the second
2021 quarter. GAAP-basis net income for the third quarter of 2021
expressed as an annualized rate of return on average assets and
average common shareholders' equity was 1.28% and 12.16%,
respectively, improved from 1.06% and 9.53%, respectively, in the
similar 2020 period and 1.22% and 11.55%, respectively, in the
second quarter of 2021. Included in noninterest expenses in the
recent quarter were merger-related expenses associated with
M&T's proposed acquisition of People's United Financial, Inc.
of $9 million ($7 million after tax-effect, or $.05 of diluted earnings per common share),
compared with $4 million
($3 million after tax-effect, or
$.02 of diluted earnings per common
share) in the second quarter of 2021. There were no
merger-related expenses in the third quarter of 2020.
Darren J. King, Executive Vice
President and Chief Financial Officer, commented on M&T's third
quarter results, "Results in the recent quarter reflect the
strength of M&T's diversified business model. Fee income
was robust, driven by strong mortgage banking, trust and brokerage,
and other payments revenue relative to the year-earlier and
immediately preceding quarters. Higher expense levels,
notably incentive compensation and other professional services
costs, were largely associated with the increased revenue but also
reflect a reversion to more normal levels. Our balance sheet
remains strong, as evidenced by a Common Equity Tier 1 Capital
Ratio of 11.1% at September 30, 2021,
improved from 10.7% at the end of the second quarter."
Earnings
Highlights
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Change 3Q21
vs.
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($ in millions,
except per share data)
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3Q21
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3Q20
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2Q21
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3Q20
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2Q21
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Net income
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$
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495
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$
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372
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$
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458
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33
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%
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8
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%
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Net income available
to common shareholders ̶ diluted
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$
|
476
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$
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353
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$
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439
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35
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%
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8
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%
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Diluted earnings per
common share
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$
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3.69
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$
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2.75
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$
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3.41
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34
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%
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8
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%
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Annualized return on
average assets
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1.28
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%
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1.06
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%
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1.22
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%
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Annualized return on
average common equity
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12.16
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%
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9.53
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%
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11.55
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%
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For the first nine-months of 2021, diluted earnings per common
share rose 62% to $10.43 from
$6.42 in the year-earlier period.
GAAP-basis net income for the nine-month period ended September 30, 2021 increased to $1.40 billion from $882
million in the corresponding 2020 period. Expressed as
an annualized rate of return on average assets and average common
shareholders' equity, GAAP-basis net income in the nine-month
period ended September 30, 2021 was 1.24% and 11.76%,
respectively, improved from .89% and 7.57%, respectively, in the
corresponding 2020 period. Merger-related expenses for the first
nine months of 2021 were $23 million
($17 million after tax-effect, or
$.13 of diluted earnings per common
share). There were no merger-related expenses in the similar
period of 2020.
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 and core deposit
and other intangible asset balances, net of applicable deferred tax
amounts) and expenses associated with merging acquired operations
into M&T (when incurred), since such items are considered by
management to be "nonoperating" in nature. The amounts of
such "nonoperating" expenses are presented in the tables that
accompany this release. Although "net operating income" as
defined by M&T is not a GAAP measure, M&T's management
believes that this information helps investors understand the
effect of acquisition activity in reported results.
Diluted net operating earnings per common share were
$3.76 in the recent quarter, up from
$2.77 and $3.45 in the third quarter of 2020 and the second
quarter of 2021, respectively. Net operating income totaled
$504 million in 2021's third quarter,
$375 million in the third quarter of
2020 and $463 million in the second
quarter of 2021. Expressed as an annualized rate of return on
average tangible assets and average tangible common shareholders'
equity, net operating income in the recent quarter was 1.34% and
17.54%, respectively, 1.10% and 13.94%, respectively, in the
year-earlier quarter and 1.27% and 16.68%, respectively, in the
second quarter of 2021.
Diluted net operating earnings per common share during the first
nine months of 2021 increased to $10.61 from $6.49
in the similar 2020 period. Net operating income during the
nine-month periods ended September 30,
2021 and 2020 was $1.42
billion and $891 million,
respectively. Net operating income expressed as an annualized rate
of return on average tangible assets and average tangible common
shareholders' equity was 1.30% and 17.10%, respectively, in the
first nine months of 2021 and was .93% and 11.15%, respectively, in
the corresponding 2020 period.
Taxable-equivalent Net Interest Income. Net interest
income expressed on a taxable-equivalent basis totaled $971 million in the recent quarter, up from
$947 million in the third quarter of
2020 and $946 million in the second
2021 quarter. The recent quarter improvement as compared with
the year-earlier quarter was largely due to lower rates paid on
deposit accounts offset, in part, by the impact of lower average
outstanding loan balances. As compared with the second quarter of
2021, the higher net interest income in the recent quarter was
predominantly the result of increased yields on loans, reflecting
fees received from payoffs of Paycheck Protection Program ("PPP")
loans. The net interest margin in the third quarter of 2021,
the third quarter of 2020 and the second quarter of 2021 was 2.74%,
2.95% and 2.77%, respectively. The lower net interest margin in the
two most recent quarters reflects higher amounts of low-yielding
balances at the Federal Reserve Bank of New York. Those balances add to net
interest income, but lower the reported net interest margin.
Interest income from PPP loans, including recognition of fees
associated with repaid loans, was $71
million in the recent quarter, compared with $39 million in the third quarter of 2020 and
$51 million in the second quarter of
2021.
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Taxable-equivalent
Net Interest Income
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Change 3Q21
vs.
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($ in
millions)
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3Q21
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3Q20
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2Q21
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3Q20
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2Q21
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Average earning
assets
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$
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140,420
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$
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127,689
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$
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136,951
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10
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%
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3
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%
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Net interest
income ̶ taxable-equivalent
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$
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971
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$
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947
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$
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946
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3
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%
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3
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%
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Net interest
margin
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2.74
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%
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2.95
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%
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2.77
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%
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Provision for Credit Losses/Asset Quality. Recaptures of
the provision for credit losses of $20
million and $15 million were
recorded in the third and second quarters of 2021,
respectively. The provision for credit losses totaled
$150 million in the third quarter of
2020. The provision in each quarter adjusts the allowance for
credit losses to reflect expected losses that are based on economic
forecasts as of each quarter-end date. Net loan charge-offs were
$40 million during the recent
quarter, compared with $30 million in
the third quarter of 2020 and $46
million in the second quarter of 2021. Expressed as an
annualized percentage of average loans outstanding, net charge-offs
were .17% and .12% in the third quarters of 2021 and 2020,
respectively, and .19% in the second quarter of 2021.
Loans classified as nonaccrual totaled $2.24 billion at each of September 30, 2021
and June 30, 2021, compared with
$1.24 billion at September 30, 2020. As a percentage of loans
outstanding, nonaccrual loans were 2.40%, 2.31% and 1.26% at
September 30, 2021, June 30, 2021 and September 30, 2020, respectively. The increase in
nonaccrual loans from September 30,
2020 to the two most recent quarter-ends reflects the
continuing impact of the pandemic on borrowers' ability to make
contractual payments on their loans, most notably loans in the
hospitality sector. Assets taken in foreclosure of defaulted
loans were $25 million at
September 30, 2021, $50 million
a year earlier and $28 million at
June 30, 2021.
Allowance for Credit Losses. M&T regularly performs
detailed analyses of individual borrowers and portfolios for
purposes of assessing the adequacy of the allowance for credit
losses. As a result of those analyses, the allowance for credit
losses totaled $1.52 billion or 1.62%
of loans outstanding at September 30, 2021, compared with
$1.76 billion or 1.79% at
September 30, 2020 and $1.58
billion or 1.62% at June 30, 2021. The allowance at
September 30, 2021, September 30, 2020, and June 30,
2021 represented 1.66%, 1.91%, and 1.69%, respectively, of total
loans on those dates, excluding outstanding balances of PPP
loans.
Asset Quality
Metrics
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Change 3Q21
vs.
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($ in
millions)
|
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3Q21
|
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3Q20
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2Q21
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3Q20
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2Q21
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At end of
quarter
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Nonaccrual
loans
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$
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2,242
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$
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1,240
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$
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2,242
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|
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81
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%
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|
|
—
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Real estate and other
foreclosed assets
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$
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25
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$
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50
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$
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28
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-50
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%
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-11
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%
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Total nonperforming
assets
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$
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2,267
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$
|
1,290
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$
|
2,270
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|
76
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%
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—
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Accruing loans past
due 90 days or more (1)
|
|
$
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1,026
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$
|
527
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$
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1,077
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|
95
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%
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-5
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%
|
Nonaccrual loans as %
of loans outstanding
|
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2.40
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%
|
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|
1.26
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%
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|
2.31
|
%
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Allowance for credit
losses
|
|
$
|
1,515
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|
|
$
|
1,759
|
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$
|
1,575
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|
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-14
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%
|
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-4
|
%
|
Allowance for credit
losses as % of loans outstanding
|
|
|
1.62
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%
|
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|
1.79
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%
|
|
|
1.62
|
%
|
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|
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|
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|
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For the
period
|
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|
|
|
|
|
|
|
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|
|
|
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|
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|
Provision for credit
losses
|
|
$
|
(20)
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|
$
|
150
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|
$
|
(15)
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|
|
—
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|
|
—
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|
Net
charge-offs
|
|
$
|
40
|
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|
$
|
30
|
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|
$
|
46
|
|
|
|
35
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%
|
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|
-13
|
%
|
Net charge-offs as %
of average loans (annualized)
|
|
|
.17
|
%
|
|
|
.12
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%
|
|
|
.19
|
%
|
|
|
|
|
|
|
|
|
____________
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(1)
|
Predominantly
government-guaranteed residential real estate loans.
|
Noninterest Income and Expense. Noninterest income was
$569 million in the third quarter of
2021, up from $521 million in the
year-earlier quarter and $514 million
in the second quarter of 2021. As compared with the third quarter
of 2020, the higher level of noninterest income in the recent
quarter resulted largely from higher service charges on deposit
accounts, merchant discount and credit card fees, mortgage banking
revenues and income from M&T's trust and brokerage services
businesses. The recent quarter's improvement as compared with the
second quarter of 2021 reflects increases in mortgage banking
revenues, service charges on deposit accounts, brokerage services
income, credit-related fees, and lower unrealized losses on
investment securities. Brokerage services income in the recent
quarter included approximately $10
million of revenues associated with the sale of select
investment products of LPL Financial, an independent financial
services broker. Prior to the transition of M&T's retail
brokerage and certain trust customer business to LPL Financial in
mid-June 2021, those customers were
provided proprietary trust products managed by M&T and revenues
related thereto were reported as trust income.
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change 3Q21
vs.
|
|
($ in
millions)
|
|
3Q21
|
|
|
3Q20
|
|
|
2Q21
|
|
|
3Q20
|
|
|
2Q21
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
$
|
160
|
|
|
$
|
153
|
|
|
$
|
133
|
|
|
|
4
|
%
|
|
|
20
|
%
|
Service charges on
deposit accounts
|
|
|
105
|
|
|
|
91
|
|
|
|
99
|
|
|
|
15
|
%
|
|
|
7
|
%
|
Trust
income
|
|
|
157
|
|
|
|
150
|
|
|
|
163
|
|
|
|
5
|
%
|
|
|
-4
|
%
|
Brokerage services
income
|
|
|
20
|
|
|
|
12
|
|
|
|
10
|
|
|
|
77
|
%
|
|
|
100
|
%
|
Trading account and
foreign exchange gains
|
|
|
6
|
|
|
|
4
|
|
|
|
7
|
|
|
|
38
|
%
|
|
|
-14
|
%
|
Gain (loss) on bank
investment securities
|
|
—
|
|
|
|
3
|
|
|
|
(11)
|
|
|
—
|
|
|
—
|
|
Other revenues from
operations
|
|
|
121
|
|
|
|
108
|
|
|
|
113
|
|
|
|
12
|
%
|
|
|
7
|
%
|
Total
|
|
$
|
569
|
|
|
$
|
521
|
|
|
$
|
514
|
|
|
|
9
|
%
|
|
|
11
|
%
|
Noninterest expense totaled $899
million in the third quarter of 2021, compared with
$827 million in the corresponding
quarter of 2020 and $865 million in
the second quarter of 2021. Excluding expenses considered to
be nonoperating in nature, such as amortization of core deposit and
other intangible assets and merger-related expenses, noninterest
operating expenses were $888 million
in the recent quarter, $823 million
in the third quarter of 2020 and $859
million in 2021's second quarter. Factors contributing to
the increase in noninterest operating expenses in the recent
quarter as compared with the year-earlier quarter were higher costs
for salaries and employee benefits (reflecting increased incentive
compensation expenses), outside data processing and software, and
professional services. As compared with the second quarter of 2021,
the higher level of noninterest operating expenses in the recent
quarter resulted largely from higher incentive compensation.
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change 3Q21
vs.
|
|
($ in
millions)
|
|
3Q21
|
|
|
3Q20
|
|
|
2Q21
|
|
|
3Q20
|
|
|
2Q21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
$
|
510
|
|
|
$
|
479
|
|
|
$
|
479
|
|
|
|
7
|
%
|
|
|
7
|
%
|
Equipment and net
occupancy
|
|
|
81
|
|
|
|
81
|
|
|
|
81
|
|
|
—
|
|
|
—
|
|
Outside data
processing and software
|
|
|
73
|
|
|
|
65
|
|
|
|
74
|
|
|
|
13
|
%
|
|
|
-2
|
%
|
FDIC
assessments
|
|
|
19
|
|
|
|
12
|
|
|
|
18
|
|
|
|
55
|
%
|
|
|
5
|
%
|
Advertising and
marketing
|
|
|
15
|
|
|
|
12
|
|
|
|
13
|
|
|
|
28
|
%
|
|
|
14
|
%
|
Printing, postage and
supplies
|
|
|
8
|
|
|
|
9
|
|
|
|
11
|
|
|
|
-16
|
%
|
|
|
-29
|
%
|
Amortization of core
deposit and other intangible assets
|
|
|
3
|
|
|
|
4
|
|
|
|
3
|
|
|
|
-30
|
%
|
|
—
|
|
Other costs of
operations
|
|
|
190
|
|
|
|
165
|
|
|
|
186
|
|
|
|
16
|
%
|
|
|
3
|
%
|
Total
|
|
$
|
899
|
|
|
$
|
827
|
|
|
$
|
865
|
|
|
|
9
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The efficiency ratio, or noninterest operating expenses divided
by the sum of taxable-equivalent net interest income and
noninterest income (exclusive of gains and losses from bank
investment securities), measures the relationship of operating
expenses to revenues. M&T's efficiency ratio was 57.7% in
the third quarter of 2021, 56.2% in the year-earlier quarter and
58.4% in the second quarter of 2021.
Balance Sheet. M&T had total assets of $151.9 billion at September 30, 2021,
compared with $138.6 billion and
$150.6 billion at September 30,
2020 and June 30, 2021, respectively. Loans and leases, net of
unearned discount, were $93.6 billion
at September 30, 2021, compared with $98.4 billion at September 30, 2020 and
$97.1 billion at June 30, 2021.
The lower level of loans and leases at the recent quarter-end as
compared with September 30, 2020
reflects a $5.4 billion decline in
commercial loans, partially offset by growth in consumer loans of
$1.5 billion. The lower
commercial loan balances reflect declines in PPP and dealer floor
plan loans. The rise in consumer loans resulted from higher
balances of recreational finance and automobile loans. The decline
in total loans and leases at the recent quarter-end as compared
with June 30, 2021 resulted largely from lower commercial
loans of $2.9 billion. The decrease
in commercial loans reflects lower balances of PPP loans. Those
loans totaled $2.2 billion at
September 30, 2021, compared with $6.5
billion at September 30, 2020
and $4.3 billion at June 30, 2021. Total deposits were $128.7 billion at the recent quarter-end,
$115.2 billion at September 30,
2020 and $128.3 billion at
June 30, 2021. The increased levels of deposits at the two
most recent quarter-ends as compared with September 30, 2020
reflect higher levels of liquidity being maintained by many
commercial and consumer customers.
Total shareholders' equity was $17.5
billion, or 11.54% of total assets at September 30,
2021, $16.1 billion, or 11.61% at
September 30, 2020 and $16.7
billion, or 11.10% at June 30, 2021. Common
shareholders' equity was $15.8
billion, or $122.60 per share,
at September 30, 2021, compared with $14.9 billion, or $115.75 per share, a year-earlier and
$15.5 billion, or $120.22 per share, at June 30, 2021.
Tangible equity per common share was $86.88 at September 30, 2021, $79.85 at September 30, 2020 and
$84.47 at June 30, 2021. In the
calculation of tangible equity per common share, common
shareholders' equity is reduced by the carrying values of goodwill
and core deposit and other intangible assets, net of applicable
deferred tax balances. M&T estimates that the ratio of
Common Equity Tier 1 to risk-weighted assets under regulatory
capital rules was approximately 11.1% at September 30, 2021,
up from 10.7% three months earlier.
Conference Call. Investors will have an opportunity to
listen to M&T's conference call to discuss third quarter
financial results today at 11:00 a.m.
Eastern Time. Those wishing to participate in the call
may dial (877) 876-9173. International participants, using
any applicable international calling codes, may dial (785)
424-1667. Callers should reference M&T Bank Corporation
or the conference ID #MTBQ321. The conference call will be
webcast live through M&T's website at
https://ir.mtb.com/events-presentations. A replay of the call will
be available through Wednesday, October 27,
2021 by calling (800) 727-6189, or (402) 220-2671 for
international participants. No conference ID is required. The
event will also be archived and available by 3:00 p.m. today on M&T's website at
https://ir.mtb.com/events-presentations.
About M&T. M&T is a financial holding company
headquartered in Buffalo, New
York. M&T's principal banking subsidiary, M&T Bank,
operates banking offices in New
York, Maryland,
New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West
Virginia and the District of Columbia. Trust-related
services are provided by M&T's Wilmington Trust-affiliated
companies and by M&T Bank.
Who We Are. We are a bank for communities – bringing the
capabilities of a large bank with the care of a locally focused
institution. Our purpose is to make a difference in people's lives
serving all our stakeholders. The keys to our approach are
characterized by responsible lending based on the advantages of
local knowledge and scale, and our long history of being prudent
stewards of our shareholders' capital. For more on our approach as
a bank for communities, please review our latest ESG report
available on M&T's website.
Earlier this month it was announced that M&T Bank again
ranked in the nation's top 10 for U.S. Small Business
Administration lending. For 13 consecutive years, M&T
Bank has remained one of the top 10 SBA lenders in the
country. Additionally in the quarter, M&T Bank continued
to focus on its multicultural customers in its diverse communities
by establishing several multicultural banking centers across its
footprint to enhance local branch experience by offering services
in English and other languages. Customers can also now
complete cash transactions at M&T Bank ATMs in four
languages.
Forward-Looking Statements. This news release
and related conference call may contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 and the rules and regulations of the SEC. Any
statement that does not describe historical or current facts is a
forward-looking statement, including statements based on current
expectations, estimates and projections about M&T's business,
and management's beliefs and assumptions.
Statements regarding the potential effects of the COVID-19
pandemic on M&T's business, financial condition, liquidity and
results of operations may constitute forward-looking statements and
are subject to the risk that the actual effects may differ,
possibly materially, from what is reflected in those
forward-looking statements due to factors and future developments
that are uncertain, unpredictable and in many cases beyond
M&T's control, including the scope and duration of the
pandemic, actions taken by governmental authorities in response to
the pandemic, and the direct and indirect impact of the pandemic on
customers, clients, third parties and M&T.
Also as described further below, statements regarding
M&T's expectations or predictions regarding the proposed
transaction between M&T and People's United Financial, Inc.
("People's United") are forward-looking statements, including
statements regarding the expected timing, completion and effects of
the proposed transaction as well as M&T's and People's United's
expected financial results, prospects, targets, goals and
outlook.
Forward-looking statements are typically identified by words
such as "believe," "expect," "anticipate," "intend," "target,"
"estimate," "continue," or "potential," by future conditional verbs
such as "will," "would," "should," "could," or "may," or by
variations of such words or by similar expressions. 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 risks, predictions and
uncertainties relating to the impact of the People's United
transaction (as described in the next paragraph); the impact of the
COVID-19 pandemic; 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 or
regulations affecting the financial services industry and/or
M&T and its subsidiaries individually or collectively,
including tax policy; 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, regulatory agencies or
legislation; increasing price, product and 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 and 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.
In addition, future factors related to the proposed
transaction between M&T and People's United include, among
others: the occurrence of any event, change or other circumstances
that could give rise to the right of one or both of the parties to
terminate the definitive merger agreement between M&T and
People's United; the outcome of any legal proceedings that may be
instituted against M&T or People's United; the possibility that
the proposed transaction will not close when expected or at all
because required regulatory or other approvals are not received or
other conditions to the closing are not satisfied on a timely basis
or at all, or are obtained subject to conditions that are not
anticipated; the risk that any announcements relating to the
proposed combination could have adverse effects on the market price
of the common stock of either or both parties to the combination;
the possibility that the anticipated benefits of the transaction
will not be realized when expected or at all, including as a result
of the impact of, or problems arising from, the integration of the
two companies or as a result of the strength of the economy and
competitive factors in the areas where M&T and People's United
do business; certain restrictions during the pendency of the merger
that may impact the parties' ability to pursue certain business
opportunities or strategic transactions; the possibility that the
transaction may be more expensive to complete than anticipated,
including as a result of unexpected factors or events; diversion of
management's attention from ongoing business operations and
opportunities; potential adverse reactions or changes to business
or employee relationships, including those resulting from the
announcement or completion of the transaction; M&T's and
People's United's success in executing their respective business
plans and strategies and managing the risks involved in the
foregoing; the business, economic and political conditions in the
markets in which the parties operate; and other factors that may
affect future results of M&T and People's United.
Future factors related to the proposed transaction also
include risks, such as, among others: that the proposed combination
and its announcement could have an adverse effect on either or both
parties' ability to retain customers and retain or hire key
personnel and maintain relationships with customers; that the
proposed combination may be more difficult or time-consuming than
anticipated, including in areas such as sales force, cost
containment, asset realization, systems integration and other key
strategies; and that revenues following the proposed combination
may be lower than expected, including for possible reasons such as
unexpected costs, charges or expenses resulting from the
transactions; as well as the unforeseen risks relating to
liabilities of M&T or People's United that may exist, and
uncertainty as to the extent of the duration, scope, and impacts of
the COVID-19 pandemic on People's United, M&T and the proposed
combination.
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.
M&T provides further detail regarding these risks and
uncertainties in its 2020 Form 10-K, including in the Risk Factors
section of such report, as well as in other SEC filings.
Forward-looking statements speak only as of the date made, and
M&T does not assume any duty and does not undertake to update
forward-looking statements.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
Amounts in thousands,
except per share
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
495,460
|
|
|
|
372,136
|
|
|
|
33
|
%
|
|
$
|
1,400,778
|
|
|
|
882,012
|
|
|
|
59
|
%
|
Net income available
to common shareholders
|
|
|
475,961
|
|
|
|
353,400
|
|
|
|
35
|
%
|
|
|
1,342,812
|
|
|
|
827,204
|
|
|
|
62
|
%
|
Per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
|
$
|
3.70
|
|
|
|
2.75
|
|
|
|
35
|
%
|
|
$
|
10.44
|
|
|
|
6.42
|
|
|
|
63
|
%
|
Diluted
earnings
|
|
|
3.69
|
|
|
|
2.75
|
|
|
|
34
|
%
|
|
|
10.43
|
|
|
|
6.42
|
|
|
|
62
|
%
|
Cash
dividends
|
|
$
|
1.10
|
|
|
|
1.10
|
|
|
|
—
|
|
|
$
|
3.30
|
|
|
|
3.30
|
|
|
—
|
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - diluted
(1)
|
|
|
128,844
|
|
|
|
128,355
|
|
|
|
—
|
|
|
|
128,786
|
|
|
|
128,813
|
|
|
—
|
|
Period end
(2)
|
|
|
128,699
|
|
|
|
128,303
|
|
|
—
|
|
|
|
128,699
|
|
|
|
128,303
|
|
|
—
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
|
1.28
|
%
|
|
|
1.06
|
%
|
|
|
|
|
|
|
1.24
|
%
|
|
|
.89
|
%
|
|
|
|
|
Average common
shareholders' equity
|
|
|
12.16
|
%
|
|
|
9.53
|
%
|
|
|
|
|
|
|
11.76
|
%
|
|
|
7.57
|
%
|
|
|
|
|
Taxable-equivalent
net interest income
|
|
$
|
970,953
|
|
|
|
947,114
|
|
|
|
3
|
%
|
|
$
|
2,902,154
|
|
|
|
2,890,353
|
|
|
—
|
|
Yield on average
earning assets
|
|
|
2.82
|
%
|
|
|
3.13
|
%
|
|
|
|
|
|
|
2.91
|
%
|
|
|
3.53
|
%
|
|
|
|
|
Cost of
interest-bearing liabilities
|
|
|
.14
|
%
|
|
|
.30
|
%
|
|
|
|
|
|
|
.15
|
%
|
|
|
.50
|
%
|
|
|
|
|
Net interest
spread
|
|
|
2.68
|
%
|
|
|
2.83
|
%
|
|
|
|
|
|
|
2.76
|
%
|
|
|
3.03
|
%
|
|
|
|
|
Contribution of
interest-free funds
|
|
|
.06
|
%
|
|
|
.12
|
%
|
|
|
|
|
|
|
.07
|
%
|
|
|
.19
|
%
|
|
|
|
|
Net interest
margin
|
|
|
2.74
|
%
|
|
|
2.95
|
%
|
|
|
|
|
|
|
2.83
|
%
|
|
|
3.22
|
%
|
|
|
|
|
Net charge-offs to
average total net loans (annualized)
|
|
|
.17
|
%
|
|
|
.12
|
%
|
|
|
|
|
|
|
.22
|
%
|
|
|
.21
|
%
|
|
|
|
|
Net operating
results (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
$
|
504,030
|
|
|
|
375,029
|
|
|
|
34
|
%
|
|
$
|
1,424,361
|
|
|
|
890,692
|
|
|
|
60
|
%
|
Diluted net operating
earnings per common share
|
|
|
3.76
|
|
|
|
2.77
|
|
|
|
36
|
%
|
|
|
10.61
|
|
|
|
6.49
|
|
|
|
63
|
%
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
assets
|
|
|
1.34
|
%
|
|
|
1.10
|
%
|
|
|
|
|
|
|
1.30
|
%
|
|
|
.93
|
%
|
|
|
|
|
Average tangible
common equity
|
|
|
17.54
|
%
|
|
|
13.94
|
%
|
|
|
|
|
|
|
17.10
|
%
|
|
|
11.15
|
%
|
|
|
|
|
Efficiency
ratio
|
|
|
57.7
|
%
|
|
|
56.2
|
%
|
|
|
|
|
|
|
58.8
|
%
|
|
|
57.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
quality
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
2,242,263
|
|
|
|
1,239,972
|
|
|
|
81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate and other
foreclosed assets
|
|
|
24,786
|
|
|
|
49,872
|
|
|
|
-50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
2,267,049
|
|
|
|
1,289,844
|
|
|
|
76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more (4)
|
|
$
|
1,026,080
|
|
|
|
527,258
|
|
|
|
95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Government guaranteed
loans included in totals above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
47,358
|
|
|
|
45,975
|
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
|
|
947,091
|
|
|
|
505,446
|
|
|
|
87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Renegotiated
loans
|
|
$
|
242,955
|
|
|
|
242,581
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
total net loans
|
|
|
2.40
|
%
|
|
|
1.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to total loans
|
|
|
1.62
|
%
|
|
|
1.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________
|
(1)
|
Includes common stock
equivalents.
|
(2)
|
Includes common stock
issuable under deferred compensation plans.
|
(3)
|
Excludes amortization
and balances related to goodwill and core deposit and other
intangible assets and merger-related expenses which, except in the
calculation of the efficiency ratio, are net of applicable income
tax effects. Reconciliations of net income with net operating
income appear herein.
|
(4)
|
Predominantly
residential real estate loans.
|
Financial Highlights,
Five Quarter Trend
|
|
|
|
Three months
ended
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Amounts in thousands,
except per share
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
495,460
|
|
|
|
458,069
|
|
|
|
447,249
|
|
|
|
471,140
|
|
|
|
372,136
|
|
Net income available
to common shareholders
|
|
|
475,961
|
|
|
|
438,759
|
|
|
|
428,093
|
|
|
|
451,869
|
|
|
|
353,400
|
|
Per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
|
$
|
3.70
|
|
|
|
3.41
|
|
|
|
3.33
|
|
|
|
3.52
|
|
|
|
2.75
|
|
Diluted
earnings
|
|
|
3.69
|
|
|
|
3.41
|
|
|
|
3.33
|
|
|
|
3.52
|
|
|
|
2.75
|
|
Cash
dividends
|
|
$
|
1.10
|
|
|
|
1.10
|
|
|
|
1.10
|
|
|
|
1.10
|
|
|
|
1.10
|
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - diluted
(1)
|
|
|
128,844
|
|
|
|
128,842
|
|
|
|
128,669
|
|
|
|
128,379
|
|
|
|
128,355
|
|
Period end
(2)
|
|
|
128,699
|
|
|
|
128,686
|
|
|
|
128,658
|
|
|
|
128,333
|
|
|
|
128,303
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
|
1.28
|
%
|
|
|
1.22
|
%
|
|
|
1.22
|
%
|
|
|
1.30
|
%
|
|
|
1.06
|
%
|
Average common
shareholders' equity
|
|
|
12.16
|
%
|
|
|
11.55
|
%
|
|
|
11.57
|
%
|
|
|
12.07
|
%
|
|
|
9.53
|
%
|
Taxable-equivalent
net interest income
|
|
$
|
970,953
|
|
|
|
946,072
|
|
|
|
985,128
|
|
|
|
993,252
|
|
|
|
947,114
|
|
Yield on average
earning assets
|
|
|
2.82
|
%
|
|
|
2.85
|
%
|
|
|
3.08
|
%
|
|
|
3.15
|
%
|
|
|
3.13
|
%
|
Cost of
interest-bearing liabilities
|
|
|
.14
|
%
|
|
|
.14
|
%
|
|
|
.18
|
%
|
|
|
.25
|
%
|
|
|
.30
|
%
|
Net interest
spread
|
|
|
2.68
|
%
|
|
|
2.71
|
%
|
|
|
2.90
|
%
|
|
|
2.90
|
%
|
|
|
2.83
|
%
|
Contribution of
interest-free funds
|
|
|
.06
|
%
|
|
|
.06
|
%
|
|
|
.07
|
%
|
|
|
.10
|
%
|
|
|
.12
|
%
|
Net interest
margin
|
|
|
2.74
|
%
|
|
|
2.77
|
%
|
|
|
2.97
|
%
|
|
|
3.00
|
%
|
|
|
2.95
|
%
|
Net charge-offs to
average total net loans (annualized)
|
|
|
.17
|
%
|
|
|
.19
|
%
|
|
|
.31
|
%
|
|
|
.39
|
%
|
|
|
.12
|
%
|
Net operating
results (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
$
|
504,030
|
|
|
|
462,959
|
|
|
|
457,372
|
|
|
|
473,453
|
|
|
|
375,029
|
|
Diluted net operating
earnings per common share
|
|
|
3.76
|
|
|
|
3.45
|
|
|
|
3.41
|
|
|
|
3.54
|
|
|
|
2.77
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
assets
|
|
|
1.34
|
%
|
|
|
1.27
|
%
|
|
|
1.29
|
%
|
|
|
1.35
|
%
|
|
|
1.10
|
%
|
Average tangible
common equity
|
|
|
17.54
|
%
|
|
|
16.68
|
%
|
|
|
17.05
|
%
|
|
|
17.53
|
%
|
|
|
13.94
|
%
|
Efficiency
ratio
|
|
|
57.7
|
%
|
|
|
58.4
|
%
|
|
|
60.3
|
%
|
|
|
54.6
|
%
|
|
|
56.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Loan
quality
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
Nonaccrual
loans
|
|
$
|
2,242,263
|
|
|
|
2,242,057
|
|
|
|
1,957,106
|
|
|
|
1,893,299
|
|
|
|
1,239,972
|
|
Real estate and other
foreclosed assets
|
|
|
24,786
|
|
|
|
27,902
|
|
|
|
29,797
|
|
|
|
34,668
|
|
|
|
49,872
|
|
Total nonperforming
assets
|
|
$
|
2,267,049
|
|
|
|
2,269,959
|
|
|
|
1,986,903
|
|
|
|
1,927,967
|
|
|
|
1,289,844
|
|
Accruing loans past
due 90 days or more (4)
|
|
$
|
1,026,080
|
|
|
|
1,077,227
|
|
|
|
1,084,553
|
|
|
|
859,208
|
|
|
|
527,258
|
|
Government guaranteed
loans included in totals above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
47,358
|
|
|
|
49,796
|
|
|
|
51,668
|
|
|
|
48,820
|
|
|
|
45,975
|
|
Accruing loans past
due 90 days or more
|
|
|
947,091
|
|
|
|
1,029,331
|
|
|
|
1,044,599
|
|
|
|
798,121
|
|
|
|
505,446
|
|
Renegotiated
loans
|
|
$
|
242,955
|
|
|
|
236,377
|
|
|
|
242,121
|
|
|
|
238,994
|
|
|
|
242,581
|
|
Nonaccrual loans to
total net loans
|
|
|
2.40
|
%
|
|
|
2.31
|
%
|
|
|
1.97
|
%
|
|
|
1.92
|
%
|
|
|
1.26
|
%
|
Allowance for credit
losses to total loans
|
|
|
1.62
|
%
|
|
|
1.62
|
%
|
|
|
1.65
|
%
|
|
|
1.76
|
%
|
|
|
1.79
|
%
|
______________
|
(1)
|
Includes common stock
equivalents.
|
(2)
|
Includes common stock
issuable under deferred compensation plans.
|
(3)
|
Excludes amortization
and balances related to goodwill and core deposit and other
intangible assets and merger-related expenses which, except in the
calculation of the efficiency ratio, are net of applicable income
tax effects. Reconciliations of net income with net operating
income appear herein.
|
(4)
|
Predominantly
residential real estate loans.
|
Condensed
Consolidated Statement of Income
|
|
|
|
Three months ended
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
Dollars in
thousands
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
Interest
income
|
|
$
|
992,946
|
|
|
|
1,001,161
|
|
|
|
-1
|
%
|
|
$
|
2,980,266
|
|
|
|
3,153,822
|
|
|
|
-6
|
%
|
Interest
expense
|
|
|
25,696
|
|
|
|
58,066
|
|
|
|
-56
|
|
|
|
89,281
|
|
|
|
276,785
|
|
|
|
-68
|
|
Net interest
income
|
|
|
967,250
|
|
|
|
943,095
|
|
|
|
3
|
|
|
|
2,890,985
|
|
|
|
2,877,037
|
|
|
—
|
|
Provision for credit
losses
|
|
|
(20,000)
|
|
|
|
150,000
|
|
|
|
—
|
|
|
|
(60,000)
|
|
|
|
725,000
|
|
|
|
—
|
|
Net interest income
after provision for credit losses
|
|
|
987,250
|
|
|
|
793,095
|
|
|
|
24
|
|
|
|
2,950,985
|
|
|
|
2,152,037
|
|
|
|
37
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
|
159,995
|
|
|
|
153,267
|
|
|
|
4
|
|
|
|
432,062
|
|
|
|
426,200
|
|
|
|
1
|
|
Service charges on
deposit accounts
|
|
|
105,426
|
|
|
|
91,355
|
|
|
|
15
|
|
|
|
296,721
|
|
|
|
274,971
|
|
|
|
8
|
|
Trust
income
|
|
|
156,876
|
|
|
|
149,937
|
|
|
|
5
|
|
|
|
475,889
|
|
|
|
450,570
|
|
|
|
6
|
|
Brokerage services
income
|
|
|
20,490
|
|
|
|
11,602
|
|
|
|
77
|
|
|
|
43,868
|
|
|
|
35,194
|
|
|
|
25
|
|
Trading account and
foreign exchange gains
|
|
|
5,563
|
|
|
|
4,026
|
|
|
|
38
|
|
|
|
18,349
|
|
|
|
33,332
|
|
|
|
-45
|
|
Gain (loss) on bank
investment securities
|
|
|
291
|
|
|
|
2,773
|
|
|
—
|
|
|
|
(22,646)
|
|
|
|
(11,040)
|
|
|
|
—
|
|
Other revenues from
operations
|
|
|
120,485
|
|
|
|
107,601
|
|
|
|
12
|
|
|
|
344,114
|
|
|
|
327,967
|
|
|
|
5
|
|
Total other
income
|
|
|
569,126
|
|
|
|
520,561
|
|
|
|
9
|
|
|
|
1,588,357
|
|
|
|
1,537,194
|
|
|
|
3
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
510,422
|
|
|
|
478,897
|
|
|
|
7
|
|
|
|
1,530,634
|
|
|
|
1,474,582
|
|
|
|
4
|
|
Equipment and net
occupancy
|
|
|
80,738
|
|
|
|
81,080
|
|
|
—
|
|
|
|
244,057
|
|
|
|
237,809
|
|
|
|
3
|
|
Outside data
processing and software
|
|
|
72,782
|
|
|
|
64,660
|
|
|
|
13
|
|
|
|
213,025
|
|
|
|
190,446
|
|
|
|
12
|
|
FDIC
assessments
|
|
|
18,810
|
|
|
|
12,121
|
|
|
|
55
|
|
|
|
50,874
|
|
|
|
38,599
|
|
|
|
32
|
|
Advertising and
marketing
|
|
|
15,208
|
|
|
|
11,855
|
|
|
|
28
|
|
|
|
43,200
|
|
|
|
44,072
|
|
|
|
-2
|
|
Printing, postage and
supplies
|
|
|
7,917
|
|
|
|
9,422
|
|
|
|
-16
|
|
|
|
28,367
|
|
|
|
31,534
|
|
|
|
-10
|
|
Amortization of core
deposit and other
intangible assets
|
|
|
2,738
|
|
|
|
3,914
|
|
|
|
-30
|
|
|
|
8,213
|
|
|
|
11,740
|
|
|
|
-30
|
|
Other costs of
operations
|
|
|
190,719
|
|
|
|
164,825
|
|
|
|
16
|
|
|
|
565,753
|
|
|
|
511,450
|
|
|
|
11
|
|
Total other
expense
|
|
|
899,334
|
|
|
|
826,774
|
|
|
|
9
|
|
|
|
2,684,123
|
|
|
|
2,540,232
|
|
|
|
6
|
|
Income before income
taxes
|
|
|
657,042
|
|
|
|
486,882
|
|
|
|
35
|
|
|
|
1,855,219
|
|
|
|
1,148,999
|
|
|
|
61
|
|
Applicable income
taxes
|
|
|
161,582
|
|
|
|
114,746
|
|
|
|
41
|
|
|
|
454,441
|
|
|
|
266,987
|
|
|
|
70
|
|
Net income
|
|
$
|
495,460
|
|
|
|
372,136
|
|
|
|
33
|
%
|
|
$
|
1,400,778
|
|
|
|
882,012
|
|
|
|
59
|
%
|
Condensed
Consolidated Statement of Income, Five Quarter Trend
|
|
|
|
Three months
ended
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Dollars in
thousands
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
Interest
income
|
|
$
|
992,946
|
|
|
|
970,358
|
|
|
|
1,016,962
|
|
|
|
1,038,890
|
|
|
|
1,001,161
|
|
Interest
expense
|
|
|
25,696
|
|
|
|
28,018
|
|
|
|
35,567
|
|
|
|
49,610
|
|
|
|
58,066
|
|
Net interest
income
|
|
|
967,250
|
|
|
|
942,340
|
|
|
|
981,395
|
|
|
|
989,280
|
|
|
|
943,095
|
|
Provision for credit
losses
|
|
|
(20,000)
|
|
|
|
(15,000)
|
|
|
|
(25,000)
|
|
|
|
75,000
|
|
|
|
150,000
|
|
Net interest income
after provision for credit losses
|
|
|
987,250
|
|
|
|
957,340
|
|
|
|
1,006,395
|
|
|
|
914,280
|
|
|
|
793,095
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
|
159,995
|
|
|
|
133,313
|
|
|
|
138,754
|
|
|
|
140,441
|
|
|
|
153,267
|
|
Service charges on
deposit accounts
|
|
|
105,426
|
|
|
|
98,518
|
|
|
|
92,777
|
|
|
|
95,817
|
|
|
|
91,355
|
|
Trust
income
|
|
|
156,876
|
|
|
|
162,991
|
|
|
|
156,022
|
|
|
|
151,314
|
|
|
|
149,937
|
|
Brokerage services
income
|
|
|
20,490
|
|
|
|
10,265
|
|
|
|
13,113
|
|
|
|
12,234
|
|
|
|
11,602
|
|
Trading account and
foreign exchange gains
|
|
|
5,563
|
|
|
|
6,502
|
|
|
|
6,284
|
|
|
|
7,204
|
|
|
|
4,026
|
|
Gain (loss) on bank
investment securities
|
|
|
291
|
|
|
|
(10,655)
|
|
|
|
(12,282)
|
|
|
|
1,619
|
|
|
|
2,773
|
|
Other revenues from
operations
|
|
|
120,485
|
|
|
|
112,699
|
|
|
|
110,930
|
|
|
|
142,621
|
|
|
|
107,601
|
|
Total other
income
|
|
|
569,126
|
|
|
|
513,633
|
|
|
|
505,598
|
|
|
|
551,250
|
|
|
|
520,561
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
510,422
|
|
|
|
479,134
|
|
|
|
541,078
|
|
|
|
476,110
|
|
|
|
478,897
|
|
Equipment and net
occupancy
|
|
|
80,738
|
|
|
|
80,848
|
|
|
|
82,471
|
|
|
|
84,228
|
|
|
|
81,080
|
|
Outside data
processing and software
|
|
|
72,782
|
|
|
|
74,492
|
|
|
|
65,751
|
|
|
|
68,034
|
|
|
|
64,660
|
|
FDIC
assessments
|
|
|
18,810
|
|
|
|
17,876
|
|
|
|
14,188
|
|
|
|
15,204
|
|
|
|
12,121
|
|
Advertising and
marketing
|
|
|
15,208
|
|
|
|
13,364
|
|
|
|
14,628
|
|
|
|
17,832
|
|
|
|
11,855
|
|
Printing, postage and
supplies
|
|
|
7,917
|
|
|
|
11,133
|
|
|
|
9,317
|
|
|
|
8,335
|
|
|
|
9,422
|
|
Amortization of core
deposit and other
intangible assets
|
|
|
2,738
|
|
|
|
2,737
|
|
|
|
2,738
|
|
|
|
3,129
|
|
|
|
3,914
|
|
Other costs of
operations
|
|
|
190,719
|
|
|
|
185,761
|
|
|
|
189,273
|
|
|
|
172,136
|
|
|
|
164,825
|
|
Total other
expense
|
|
|
899,334
|
|
|
|
865,345
|
|
|
|
919,444
|
|
|
|
845,008
|
|
|
|
826,774
|
|
Income before income
taxes
|
|
|
657,042
|
|
|
|
605,628
|
|
|
|
592,549
|
|
|
|
620,522
|
|
|
|
486,882
|
|
Applicable income
taxes
|
|
|
161,582
|
|
|
|
147,559
|
|
|
|
145,300
|
|
|
|
149,382
|
|
|
|
114,746
|
|
Net income
|
|
$
|
495,460
|
|
|
|
458,069
|
|
|
|
447,249
|
|
|
|
471,140
|
|
|
|
372,136
|
|
Condensed
Consolidated Balance Sheet
|
|
|
|
September 30
|
|
|
|
|
|
|
Dollars in
thousands
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,479,712
|
|
|
|
1,489,232
|
|
|
|
-1
|
|
%
|
Interest-bearing
deposits at banks
|
|
|
38,445,788
|
|
|
|
20,197,937
|
|
|
|
90
|
|
|
Trading
account
|
|
|
624,556
|
|
|
|
1,215,573
|
|
|
|
-49
|
|
|
Investment
securities
|
|
|
6,447,622
|
|
|
|
7,723,004
|
|
|
|
-17
|
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
22,514,940
|
|
|
|
27,891,648
|
|
|
|
-19
|
|
|
Real estate -
commercial
|
|
|
37,023,952
|
|
|
|
37,582,084
|
|
|
|
-1
|
|
|
Real estate -
consumer
|
|
|
16,209,354
|
|
|
|
16,663,708
|
|
|
|
-3
|
|
|
Consumer
|
|
|
17,834,648
|
|
|
|
16,309,608
|
|
|
|
9
|
|
|
Total loans and
leases, net of unearned discount
|
|
|
93,582,894
|
|
|
|
98,447,048
|
|
|
|
-5
|
|
|
Less: allowance for
credit losses
|
|
|
1,515,024
|
|
|
|
1,758,505
|
|
|
|
-14
|
|
|
Net loans and
leases
|
|
|
92,067,870
|
|
|
|
96,688,543
|
|
|
|
-5
|
|
|
Goodwill
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
—
|
|
|
Core deposit and
other intangible assets
|
|
|
5,952
|
|
|
|
17,294
|
|
|
|
-66
|
|
|
Other
assets
|
|
|
8,236,582
|
|
|
|
6,702,048
|
|
|
|
23
|
|
|
Total
assets
|
|
$
|
151,901,194
|
|
|
|
138,626,743
|
|
|
|
10
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
56,542,309
|
|
|
|
44,201,670
|
|
|
|
28
|
|
%
|
Interest-bearing
deposits
|
|
|
72,158,987
|
|
|
|
70,061,680
|
|
|
|
3
|
|
|
Deposits at Cayman
Islands office
|
|
|
—
|
|
|
|
899,989
|
|
|
|
-100
|
|
|
Total
deposits
|
|
|
128,701,296
|
|
|
|
115,163,339
|
|
|
|
12
|
|
|
Short-term
borrowings
|
|
|
103,548
|
|
|
|
46,123
|
|
|
|
125
|
|
|
Accrued interest and
other liabilities
|
|
|
2,067,188
|
|
|
|
1,857,383
|
|
|
|
11
|
|
|
Long-term
borrowings
|
|
|
3,500,391
|
|
|
|
5,458,885
|
|
|
|
-36
|
|
|
Total
liabilities
|
|
|
134,372,423
|
|
|
|
122,525,730
|
|
|
|
10
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
|
1,750,000
|
|
|
|
1,250,000
|
|
|
|
40
|
|
|
Common
|
|
|
15,778,771
|
|
|
|
14,851,013
|
|
|
|
6
|
|
|
Total shareholders'
equity
|
|
|
17,528,771
|
|
|
|
16,101,013
|
|
|
|
9
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
151,901,194
|
|
|
|
138,626,743
|
|
|
|
10
|
|
%
|
Condensed
Consolidated Balance Sheet, Five Quarter Trend
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Dollars in
thousands
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,479,712
|
|
|
|
1,410,468
|
|
|
|
1,258,989
|
|
|
|
1,552,743
|
|
|
|
1,489,232
|
|
Interest-bearing
deposits at banks
|
|
|
38,445,788
|
|
|
|
33,864,824
|
|
|
|
31,407,227
|
|
|
|
23,663,810
|
|
|
|
20,197,937
|
|
Federal funds
sold
|
|
|
—
|
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
—
|
|
Trading
account
|
|
|
624,556
|
|
|
|
712,558
|
|
|
|
687,359
|
|
|
|
1,068,581
|
|
|
|
1,215,573
|
|
Investment
securities
|
|
|
6,447,622
|
|
|
|
6,143,177
|
|
|
|
6,610,667
|
|
|
|
7,045,697
|
|
|
|
7,723,004
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
22,514,940
|
|
|
|
25,409,291
|
|
|
|
27,811,190
|
|
|
|
27,574,564
|
|
|
|
27,891,648
|
|
Real estate -
commercial
|
|
|
37,023,952
|
|
|
|
37,558,775
|
|
|
|
37,425,974
|
|
|
|
37,637,889
|
|
|
|
37,582,084
|
|
Real estate -
consumer
|
|
|
16,209,354
|
|
|
|
16,704,951
|
|
|
|
17,349,683
|
|
|
|
16,752,993
|
|
|
|
16,663,708
|
|
Consumer
|
|
|
17,834,648
|
|
|
|
17,440,415
|
|
|
|
16,712,233
|
|
|
|
16,570,421
|
|
|
|
16,309,608
|
|
Total loans and leases, net of unearned discount
|
|
|
93,582,894
|
|
|
|
97,113,432
|
|
|
|
99,299,080
|
|
|
|
98,535,867
|
|
|
|
98,447,048
|
|
Less: allowance for
credit losses
|
|
|
1,515,024
|
|
|
|
1,575,128
|
|
|
|
1,636,206
|
|
|
|
1,736,387
|
|
|
|
1,758,505
|
|
Net loans and
leases
|
|
|
92,067,870
|
|
|
|
95,538,304
|
|
|
|
97,662,874
|
|
|
|
96,799,480
|
|
|
|
96,688,543
|
|
Goodwill
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
Core deposit and
other intangible assets
|
|
|
5,952
|
|
|
|
8,690
|
|
|
|
11,427
|
|
|
|
14,165
|
|
|
|
17,294
|
|
Other
assets
|
|
|
8,236,582
|
|
|
|
8,351,574
|
|
|
|
8,248,405
|
|
|
|
7,863,517
|
|
|
|
6,702,048
|
|
Total
assets
|
|
$
|
151,901,194
|
|
|
|
150,622,707
|
|
|
|
150,481,060
|
|
|
|
142,601,105
|
|
|
|
138,626,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
56,542,309
|
|
|
|
55,621,230
|
|
|
|
53,641,419
|
|
|
|
47,572,884
|
|
|
|
44,201,670
|
|
Interest-bearing
deposits
|
|
|
72,158,987
|
|
|
|
72,647,542
|
|
|
|
74,193,255
|
|
|
|
71,580,750
|
|
|
|
70,061,680
|
|
Deposits at Cayman
Islands office
|
|
|
—
|
|
|
|
—
|
|
|
|
641,691
|
|
|
|
652,104
|
|
|
|
899,989
|
|
Total
deposits
|
|
|
128,701,296
|
|
|
|
128,268,772
|
|
|
|
128,476,365
|
|
|
|
119,805,738
|
|
|
|
115,163,339
|
|
Short-term
borrowings
|
|
|
103,548
|
|
|
|
91,235
|
|
|
|
58,957
|
|
|
|
59,482
|
|
|
|
46,123
|
|
Accrued interest and
other liabilities
|
|
|
2,067,188
|
|
|
|
2,042,948
|
|
|
|
2,000,727
|
|
|
|
2,166,409
|
|
|
|
1,857,383
|
|
Long-term
borrowings
|
|
|
3,500,391
|
|
|
|
3,499,448
|
|
|
|
3,498,503
|
|
|
|
4,382,193
|
|
|
|
5,458,885
|
|
Total
liabilities
|
|
|
134,372,423
|
|
|
|
133,902,403
|
|
|
|
134,034,552
|
|
|
|
126,413,822
|
|
|
|
122,525,730
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
|
1,750,000
|
|
|
|
1,250,000
|
|
|
|
1,250,000
|
|
|
|
1,250,000
|
|
|
|
1,250,000
|
|
Common
|
|
|
15,778,771
|
|
|
|
15,470,304
|
|
|
|
15,196,508
|
|
|
|
14,937,283
|
|
|
|
14,851,013
|
|
Total shareholders'
equity
|
|
|
17,528,771
|
|
|
|
16,720,304
|
|
|
|
16,446,508
|
|
|
|
16,187,283
|
|
|
|
16,101,013
|
|
Total liabilities and
shareholders' equity
|
|
$
|
151,901,194
|
|
|
|
150,622,707
|
|
|
|
150,481,060
|
|
|
|
142,601,105
|
|
|
|
138,626,743
|
|
Condensed
Consolidated Average Balance Sheet and Annualized
Taxable-equivalent Rates
|
|
|
|
Three months
ended
|
|
Change in
balance
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
June 30,
|
|
September 30,
2021 from
|
|
|
|
September 30,
|
|
Change
|
|
Dollars in
millions
|
|
2021
|
|
2020
|
|
2021
|
|
September 30,
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
|
in
|
|
|
|
Balance
|
|
|
Rate
|
|
Balance
|
|
|
Rate
|
|
Balance
|
|
|
Rate
|
|
2020
|
|
2021
|
|
|
|
Balance
|
|
|
Rate
|
|
Balance
|
|
|
Rate
|
|
balance
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits at banks
|
|
$
|
39,036
|
|
|
|
.15
|
%
|
|
16,440
|
|
|
|
.10
|
%
|
|
32,081
|
|
|
|
.11
|
%
|
|
137
|
%
|
|
22
|
%
|
|
|
$
|
32,969
|
|
|
|
.12
|
%
|
|
13,021
|
|
|
|
.28
|
%
|
|
153
|
%
|
Federal funds sold
and agreements to
resell securities
|
|
|
—
|
|
|
|
.47
|
|
|
5,113
|
|
|
|
.13
|
|
|
—
|
|
|
|
.48
|
|
|
-100
|
|
|
40
|
|
|
|
|
223
|
|
|
|
.12
|
|
|
2,353
|
|
|
|
.33
|
|
|
—
|
|
Trading
account
|
|
|
51
|
|
|
|
2.71
|
|
|
50
|
|
|
|
1.62
|
|
|
49
|
|
|
|
1.76
|
|
|
2
|
|
|
3
|
|
|
|
|
50
|
|
|
|
1.97
|
|
|
54
|
|
|
|
2.15
|
|
|
-7
|
|
Investment
securities
|
|
|
6,019
|
|
|
|
2.19
|
|
|
7,876
|
|
|
|
1.95
|
|
|
6,211
|
|
|
|
2.23
|
|
|
-24
|
|
|
-3
|
|
|
|
|
6,276
|
|
|
|
2.23
|
|
|
8,490
|
|
|
|
2.14
|
|
|
-26
|
|
Loans and leases, net
of unearned
discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
23,730
|
|
|
|
3.96
|
|
|
28,333
|
|
|
|
3.05
|
|
|
27,055
|
|
|
|
3.26
|
|
|
-16
|
|
|
-12
|
|
|
|
|
26,155
|
|
|
|
3.57
|
|
|
27,455
|
|
|
|
3.37
|
|
|
-5
|
|
Real estate -
commercial
|
|
|
37,547
|
|
|
|
3.87
|
|
|
37,243
|
|
|
|
4.19
|
|
|
37,419
|
|
|
|
3.92
|
|
|
1
|
|
|
—
|
|
|
|
|
37,525
|
|
|
|
3.98
|
|
|
36,743
|
|
|
|
4.47
|
|
|
2
|
|
Real estate -
consumer
|
|
|
16,379
|
|
|
|
3.59
|
|
|
16,558
|
|
|
|
3.69
|
|
|
17,022
|
|
|
|
3.54
|
|
|
-1
|
|
|
-4
|
|
|
|
|
16,932
|
|
|
|
3.56
|
|
|
16,032
|
|
|
|
3.90
|
|
|
6
|
|
Consumer
|
|
|
17,658
|
|
|
|
4.34
|
|
|
16,076
|
|
|
|
4.76
|
|
|
17,114
|
|
|
|
4.44
|
|
|
10
|
|
|
3
|
|
|
|
|
17,134
|
|
|
|
4.47
|
|
|
15,683
|
|
|
|
4.96
|
|
|
9
|
|
Total loans and
leases, net
|
|
|
95,314
|
|
|
|
3.95
|
|
|
98,210
|
|
|
|
3.89
|
|
|
98,610
|
|
|
|
3.79
|
|
|
-3
|
|
|
-3
|
|
|
|
|
97,746
|
|
|
|
3.91
|
|
|
95,913
|
|
|
|
4.17
|
|
|
2
|
|
Total earning
assets
|
|
|
140,420
|
|
|
|
2.82
|
|
|
127,689
|
|
|
|
3.13
|
|
|
136,951
|
|
|
|
2.85
|
|
|
10
|
|
|
3
|
|
|
|
|
137,264
|
|
|
|
2.91
|
|
|
119,831
|
|
|
|
3.53
|
|
|
15
|
|
Goodwill
|
|
|
4,593
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
4,593
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
—
|
|
Core deposit and other intangible
assets
|
|
|
7
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
-62
|
|
|
-27
|
|
|
|
|
10
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
-57
|
|
Other
assets
|
|
|
9,017
|
|
|
|
|
|
|
7,880
|
|
|
|
|
|
|
9,087
|
|
|
|
|
|
|
14
|
|
|
-1
|
|
|
|
|
9,100
|
|
|
|
|
|
|
7,983
|
|
|
|
|
|
|
14
|
|
Total
assets
|
|
$
|
154,037
|
|
|
|
|
|
|
140,181
|
|
|
|
|
|
|
150,641
|
|
|
|
|
|
|
10
|
%
|
|
2
|
%
|
|
|
$
|
150,967
|
|
|
|
|
|
|
132,430
|
|
|
|
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
interest-checking
deposits
|
|
$
|
70,976
|
|
|
|
.04
|
|
|
65,848
|
|
|
|
.14
|
|
|
71,561
|
|
|
|
.05
|
|
|
8
|
%
|
|
-1
|
%
|
|
|
$
|
71,000
|
|
|
|
.05
|
|
|
61,729
|
|
|
|
.27
|
|
|
15
|
%
|
Time
deposits
|
|
|
3,061
|
|
|
|
.46
|
|
|
4,715
|
|
|
|
1.22
|
|
|
3,358
|
|
|
|
.61
|
|
|
-35
|
|
|
-9
|
|
|
|
|
3,381
|
|
|
|
.62
|
|
|
5,245
|
|
|
|
1.43
|
|
|
-36
|
|
Deposits at Cayman Islands
office
|
|
|
—
|
|
|
|
—
|
|
|
957
|
|
|
|
.10
|
|
|
50
|
|
|
|
.12
|
|
|
-100
|
|
|
-100
|
|
|
|
|
242
|
|
|
|
.11
|
|
|
1,214
|
|
|
|
.42
|
|
|
-80
|
|
Total interest-bearing
deposits
|
|
|
74,037
|
|
|
|
.06
|
|
|
71,520
|
|
|
|
.21
|
|
|
74,969
|
|
|
|
.07
|
|
|
4
|
|
|
-1
|
|
|
|
|
74,623
|
|
|
|
.08
|
|
|
68,188
|
|
|
|
.37
|
|
|
9
|
|
Short-term
borrowings
|
|
|
91
|
|
|
|
.01
|
|
|
62
|
|
|
|
.01
|
|
|
61
|
|
|
|
.01
|
|
|
48
|
|
|
50
|
|
|
|
|
72
|
|
|
|
.01
|
|
|
61
|
|
|
|
.06
|
|
|
18
|
|
Long-term
borrowings
|
|
|
3,431
|
|
|
|
1.75
|
|
|
5,499
|
|
|
|
1.51
|
|
|
3,429
|
|
|
|
1.74
|
|
|
-38
|
|
|
—
|
|
|
|
|
3,569
|
|
|
|
1.76
|
|
|
5,974
|
|
|
|
2.01
|
|
|
-40
|
|
Total
interest-bearing liabilities
|
|
|
77,559
|
|
|
|
.14
|
|
|
77,081
|
|
|
|
.30
|
|
|
78,459
|
|
|
|
.14
|
|
|
1
|
|
|
-1
|
|
|
|
|
78,264
|
|
|
|
.15
|
|
|
74,223
|
|
|
|
.50
|
|
|
5
|
|
Noninterest-bearing
deposits
|
|
|
57,218
|
|
|
|
|
|
|
44,786
|
|
|
|
|
|
|
53,444
|
|
|
|
|
|
|
28
|
|
|
7
|
|
|
|
|
53,864
|
|
|
|
|
|
|
39,931
|
|
|
|
|
|
|
35
|
|
Other
liabilities
|
|
|
2,151
|
|
|
|
|
|
|
2,241
|
|
|
|
|
|
|
2,167
|
|
|
|
|
|
|
-4
|
|
|
-1
|
|
|
|
|
2,167
|
|
|
|
|
|
|
2,360
|
|
|
|
|
|
|
-8
|
|
Total
liabilities
|
|
|
136,928
|
|
|
|
|
|
|
124,108
|
|
|
|
|
|
|
134,070
|
|
|
|
|
|
|
10
|
|
|
2
|
|
|
|
|
134,295
|
|
|
|
|
|
|
116,514
|
|
|
|
|
|
|
15
|
|
Shareholders'
equity
|
|
|
17,109
|
|
|
|
|
|
|
16,073
|
|
|
|
|
|
|
16,571
|
|
|
|
|
|
|
6
|
|
|
3
|
|
|
|
|
16,672
|
|
|
|
|
|
|
15,916
|
|
|
|
|
|
|
5
|
|
Total liabilities and
shareholders'
equity
|
|
$
|
154,037
|
|
|
|
|
|
|
140,181
|
|
|
|
|
|
|
150,641
|
|
|
|
|
|
|
10
|
%
|
|
2
|
%
|
|
|
$
|
150,967
|
|
|
|
|
|
|
132,430
|
|
|
|
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
|
|
2.68
|
|
|
|
|
|
|
2.83
|
|
|
|
|
|
|
2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.76
|
|
|
|
|
|
|
3.03
|
|
|
|
|
Contribution of
interest-free funds
|
|
|
|
|
|
|
.06
|
|
|
|
|
|
|
.12
|
|
|
|
|
|
|
.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
.07
|
|
|
|
|
|
|
.19
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
2.74
|
%
|
|
|
|
|
|
2.95
|
%
|
|
|
|
|
|
2.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.83
|
%
|
|
|
|
|
|
3.22
|
%
|
|
|
|
Reconciliation of
Quarterly GAAP to Non-GAAP Measures
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
|
September 30
|
|
|
September 30
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Income statement
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
495,460
|
|
|
|
372,136
|
|
|
|
1,400,778
|
|
|
|
882,012
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
2,028
|
|
|
|
2,893
|
|
|
|
6,085
|
|
|
|
8,680
|
|
Merger-related
expenses (1)
|
|
|
6,542
|
|
|
|
—
|
|
|
|
17,498
|
|
|
|
—
|
|
Net operating
income
|
|
$
|
504,030
|
|
|
|
375,029
|
|
|
|
1,424,361
|
|
|
|
890,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
3.69
|
|
|
|
2.75
|
|
|
|
10.43
|
|
|
|
6.42
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
.02
|
|
|
|
.02
|
|
|
|
.05
|
|
|
|
.07
|
|
Merger-related
expenses (1)
|
|
|
.05
|
|
|
|
—
|
|
|
|
.13
|
|
|
|
—
|
|
Diluted net operating
earnings per common share
|
|
$
|
3.76
|
|
|
|
2.77
|
|
|
|
10.61
|
|
|
|
6.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
$
|
899,334
|
|
|
|
826,774
|
|
|
|
2,684,123
|
|
|
|
2,540,232
|
|
Amortization of core
deposit and other intangible assets
|
|
|
(2,738)
|
|
|
|
(3,914)
|
|
|
|
(8,213)
|
|
|
|
(11,740)
|
|
Merger-related
expenses
|
|
|
(8,826)
|
|
|
|
—
|
|
|
|
(22,670)
|
|
|
|
—
|
|
Noninterest operating
expense
|
|
$
|
887,770
|
|
|
|
822,860
|
|
|
|
2,653,240
|
|
|
|
2,528,492
|
|
Merger-related
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
$
|
60
|
|
|
|
—
|
|
|
|
64
|
|
|
|
—
|
|
Equipment and net
occupancy
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
Outside data
processing and software
|
|
|
625
|
|
|
|
—
|
|
|
|
869
|
|
|
|
—
|
|
Advertising and
marketing
|
|
|
505
|
|
|
|
—
|
|
|
|
529
|
|
|
|
—
|
|
Printing, postage and
supplies
|
|
|
730
|
|
|
|
—
|
|
|
|
2,779
|
|
|
|
—
|
|
Other costs of
operations
|
|
|
6,905
|
|
|
|
—
|
|
|
|
18,428
|
|
|
|
—
|
|
Other
expense
|
|
$
|
8,826
|
|
|
|
—
|
|
|
|
22,670
|
|
|
|
—
|
|
Efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest operating
expense (numerator)
|
|
$
|
887,770
|
|
|
|
822,860
|
|
|
|
2,653,240
|
|
|
|
2,528,492
|
|
Taxable-equivalent
net interest income
|
|
$
|
970,953
|
|
|
|
947,114
|
|
|
|
2,902,154
|
|
|
|
2,890,353
|
|
Other
income
|
|
|
569,126
|
|
|
|
520,561
|
|
|
|
1,588,357
|
|
|
|
1,537,194
|
|
Less: Gain
(loss) on bank investment securities
|
|
|
291
|
|
|
|
2,773
|
|
|
|
(22,646)
|
|
|
|
(11,040)
|
|
Denominator
|
|
$
|
1,539,788
|
|
|
|
1,464,902
|
|
|
|
4,513,157
|
|
|
|
4,438,587
|
|
Efficiency
ratio
|
|
|
57.7
|
%
|
|
|
56.2
|
%
|
|
|
58.8
|
%
|
|
|
57.0
|
%
|
Balance sheet
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
154,037
|
|
|
|
140,181
|
|
|
|
150,967
|
|
|
|
132,430
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(7)
|
|
|
|
(19)
|
|
|
|
(10)
|
|
|
|
(23)
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
5
|
|
|
|
2
|
|
|
|
6
|
|
Average tangible
assets
|
|
$
|
149,439
|
|
|
|
135,574
|
|
|
|
146,366
|
|
|
|
127,820
|
|
Average common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
equity
|
|
$
|
17,109
|
|
|
|
16,073
|
|
|
|
16,672
|
|
|
|
15,916
|
|
Preferred
stock
|
|
|
(1,495)
|
|
|
|
(1,250)
|
|
|
|
(1,332)
|
|
|
|
(1,250)
|
|
Average common
equity
|
|
|
15,614
|
|
|
|
14,823
|
|
|
|
15,340
|
|
|
|
14,666
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(7)
|
|
|
|
(19)
|
|
|
|
(10)
|
|
|
|
(23)
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
5
|
|
|
|
2
|
|
|
|
6
|
|
Average tangible
common equity
|
|
$
|
11,016
|
|
|
|
10,216
|
|
|
|
10,739
|
|
|
|
10,056
|
|
At end of
quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
151,901
|
|
|
|
138,627
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
|
|
|
|
|
|
Core deposit and
other intangible assets
|
|
|
(6)
|
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
Total tangible
assets
|
|
$
|
147,304
|
|
|
|
134,021
|
|
|
|
|
|
|
|
|
|
Total common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
|
17,529
|
|
|
|
16,101
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
(1,750)
|
|
|
|
(1,250)
|
|
|
|
|
|
|
|
|
|
Common
equity
|
|
|
15,779
|
|
|
|
14,851
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
|
|
|
|
|
|
Core deposit and
other intangible assets
|
|
|
(6)
|
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
Total tangible common
equity
|
|
$
|
11,182
|
|
|
|
10,245
|
|
|
|
|
|
|
|
|
|
__________________
|
(1)
|
After any related tax
effect.
|
Reconciliation of
Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
|
|
|
|
|
|
Three months
ended
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
Income statement
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
495,460
|
|
|
|
458,069
|
|
|
|
447,249
|
|
|
|
471,140
|
|
|
|
372,136
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
2,028
|
|
|
|
2,023
|
|
|
|
2,034
|
|
|
|
2,313
|
|
|
|
2,893
|
|
Merger-related
expenses (1)
|
|
|
6,542
|
|
|
|
2,867
|
|
|
|
8,089
|
|
|
|
—
|
|
|
|
—
|
|
Net operating
income
|
|
$
|
504,030
|
|
|
|
462,959
|
|
|
|
457,372
|
|
|
|
473,453
|
|
|
|
375,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
3.69
|
|
|
|
3.41
|
|
|
|
3.33
|
|
|
|
3.52
|
|
|
|
2.75
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
.02
|
|
|
|
.02
|
|
|
|
.02
|
|
|
|
.02
|
|
|
|
.02
|
|
Merger-related
expenses (1)
|
|
|
.05
|
|
|
|
.02
|
|
|
|
.06
|
|
|
|
—
|
|
|
|
—
|
|
Diluted net operating
earnings per common share
|
|
$
|
3.76
|
|
|
|
3.45
|
|
|
|
3.41
|
|
|
|
3.54
|
|
|
|
2.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
$
|
899,334
|
|
|
|
865,345
|
|
|
|
919,444
|
|
|
|
845,008
|
|
|
|
826,774
|
|
Amortization of core
deposit and other intangible assets
|
|
|
(2,738)
|
|
|
|
(2,737)
|
|
|
|
(2,738)
|
|
|
|
(3,129)
|
|
|
|
(3,914)
|
|
Merger-related
expenses
|
|
|
(8,826)
|
|
|
|
(3,893)
|
|
|
|
(9,951)
|
|
|
|
—
|
|
|
|
—
|
|
Noninterest operating
expense
|
|
$
|
887,770
|
|
|
|
858,715
|
|
|
|
906,755
|
|
|
|
841,879
|
|
|
|
822,860
|
|
Merger-related
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
$
|
60
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Equipment and net
occupancy
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Outside data
processing and software
|
|
|
625
|
|
|
|
244
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Advertising and
marketing
|
|
|
505
|
|
|
|
24
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Printing, postage and
supplies
|
|
|
730
|
|
|
|
2,049
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other costs of
operations
|
|
|
6,905
|
|
|
|
1,572
|
|
|
|
9,951
|
|
|
|
—
|
|
|
|
—
|
|
Other
expense
|
|
$
|
8,826
|
|
|
|
3,893
|
|
|
|
9,951
|
|
|
|
—
|
|
|
|
—
|
|
Efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest operating
expense (numerator)
|
|
$
|
887,770
|
|
|
|
858,715
|
|
|
|
906,755
|
|
|
|
841,879
|
|
|
|
822,860
|
|
Taxable-equivalent
net interest income
|
|
$
|
970,953
|
|
|
|
946,072
|
|
|
|
985,128
|
|
|
|
993,252
|
|
|
|
947,114
|
|
Other
income
|
|
|
569,126
|
|
|
|
513,633
|
|
|
|
505,598
|
|
|
|
551,250
|
|
|
|
520,561
|
|
Less: Gain
(loss) on bank investment securities
|
|
|
291
|
|
|
|
(10,655)
|
|
|
|
(12,282)
|
|
|
|
1,619
|
|
|
|
2,773
|
|
Denominator
|
|
$
|
1,539,788
|
|
|
|
1,470,360
|
|
|
|
1,503,008
|
|
|
|
1,542,883
|
|
|
|
1,464,902
|
|
Efficiency
ratio
|
|
|
57.7
|
%
|
|
|
58.4
|
%
|
|
|
60.3
|
%
|
|
|
54.6
|
%
|
|
|
56.2
|
%
|
Balance sheet
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
154,037
|
|
|
|
150,641
|
|
|
|
148,157
|
|
|
|
144,563
|
|
|
|
140,181
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(7)
|
|
|
|
(10)
|
|
|
|
(13)
|
|
|
|
(16)
|
|
|
|
(19)
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
|
|
4
|
|
|
|
5
|
|
Average tangible
assets
|
|
$
|
149,439
|
|
|
|
146,041
|
|
|
|
143,554
|
|
|
|
139,958
|
|
|
|
135,574
|
|
Average common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
equity
|
|
$
|
17,109
|
|
|
|
16,571
|
|
|
|
16,327
|
|
|
|
16,213
|
|
|
|
16,073
|
|
Preferred
stock
|
|
|
(1,495)
|
|
|
|
(1,250)
|
|
|
|
(1,250)
|
|
|
|
(1,250)
|
|
|
|
(1,250)
|
|
Average common
equity
|
|
|
15,614
|
|
|
|
15,321
|
|
|
|
15,077
|
|
|
|
14,963
|
|
|
|
14,823
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(7)
|
|
|
|
(10)
|
|
|
|
(13)
|
|
|
|
(16)
|
|
|
|
(19)
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
|
|
4
|
|
|
|
5
|
|
Average tangible
common equity
|
|
$
|
11,016
|
|
|
|
10,721
|
|
|
|
10,474
|
|
|
|
10,358
|
|
|
|
10,216
|
|
At end of
quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
151,901
|
|
|
|
150,623
|
|
|
|
150,481
|
|
|
|
142,601
|
|
|
|
138,627
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(6)
|
|
|
|
(9)
|
|
|
|
(12)
|
|
|
|
(14)
|
|
|
|
(17)
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
2
|
|
|
|
3
|
|
|
|
4
|
|
|
|
4
|
|
Total tangible
assets
|
|
$
|
147,304
|
|
|
|
146,023
|
|
|
|
145,879
|
|
|
|
137,998
|
|
|
|
134,021
|
|
Total common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
|
17,529
|
|
|
|
16,720
|
|
|
|
16,447
|
|
|
|
16,187
|
|
|
|
16,101
|
|
Preferred
stock
|
|
|
(1,750)
|
|
|
|
(1,250)
|
|
|
|
(1,250)
|
|
|
|
(1,250)
|
|
|
|
(1,250)
|
|
Common
equity
|
|
|
15,779
|
|
|
|
15,470
|
|
|
|
15,197
|
|
|
|
14,937
|
|
|
|
14,851
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(6)
|
|
|
|
(9)
|
|
|
|
(12)
|
|
|
|
(14)
|
|
|
|
(17)
|
|
Deferred
taxes
|
|
|
2
|
|
|
|
2
|
|
|
|
3
|
|
|
|
4
|
|
|
|
4
|
|
Total tangible common
equity
|
|
$
|
11,182
|
|
|
|
10,870
|
|
|
|
10,595
|
|
|
|
10,334
|
|
|
|
10,245
|
|
__________________
|
(1)
|
After any related tax
effect.
|
INVESTOR
CONTACT:
|
|
Donald J.
MacLeod
|
|
|
(716)
842-5138
|
|
|
|
MEDIA
CONTACT:
|
|
Maya
Dillon
|
|
|
(212)
415-0557
|
View original content to download
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SOURCE M&T Bank Corporation