BUFFALO, N.Y., Oct. 17, 2018
/PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:
MTB) today reported its results of operations for the quarter ended
September 30, 2018.
GAAP Results of Operations. Diluted earnings per common
share measured in accordance with generally accepted accounting
principles ("GAAP") for the third quarter of 2018 were $3.53, 60% higher than $2.21 in the year-earlier quarter and 8% above
$3.26 recorded in the second quarter
of 2018. GAAP-basis net income in the recent quarter was
$526 million, up from $356 million in the third quarter of 2017 and
$493 million in the second 2018
quarter. GAAP-basis net income for the third quarter of 2018
expressed as an annualized rate of return on average assets and
average common shareholders' equity was 1.80% and 14.08%,
respectively, improved from 1.18% and 8.89%, respectively, in the
similar 2017 period and 1.70% and 13.32%, respectively, in the
second quarter of 2018. As compared with 2017, income tax expense
in 2018 reflects the reduction of the corporate Federal income tax
rate from 35% to 21%.
Commenting on M&T's results for the recent quarter,
Darren J. King, Executive Vice
President and Chief Financial Officer, noted, "M&T posted
another quarter of strong financial results. Growth in net interest
income, fueled by a wider net interest margin, reduced credit costs
and controlled operating expenses led to an 8% rise in diluted
earnings per common share compared with the second quarter.
Reflecting the consistency of our earnings, we increased the
quarterly common stock dividend by 25% to $1.00 per share."
Earnings
Highlights
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Change 3Q18
vs.
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($ in millions,
except per share data)
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3Q18
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3Q17
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2Q18
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3Q17
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2Q18
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Net income
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$
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526
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$
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356
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$
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493
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48
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%
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7
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%
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Net income available
to common shareholders - diluted
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$
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505
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$
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336
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$
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473
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50
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%
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7
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%
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Diluted earnings per
common share
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$
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3.53
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$
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2.21
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$
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3.26
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60
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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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1.80
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%
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1.18
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%
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1.70
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%
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Annualized return on
average common equity
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14.08
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%
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8.89
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%
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13.32
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%
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For the first nine months of 2018, diluted earnings per common
share were $9.00, up 35% from
$6.69 in the year-earlier period.
GAAP-basis net income for the nine-month period ended
September 30, 2018 totaled $1.37
billion, 26% above $1.09
billion in the corresponding 2017 period. Expressed as an
annualized rate of return on average assets and average common
shareholders' equity, GAAP-basis net income in the first nine
months of 2018 was 1.57% and 12.16%, respectively, improved from
1.20% and 9.15%, respectively, in the year-earlier period.
Supplemental Reporting of Non-GAAP Results of Operations.
M&T consistently provides supplemental reporting of its results
on a "net operating" or "tangible" basis, from which M&T
excludes the after-tax effect of amortization of core deposit and
other intangible assets (and the related goodwill, core deposit
intangible and other intangible asset balances, net of applicable
deferred tax amounts) and expenses associated with merging acquired
operations into M&T, since such items are considered by
management to be "nonoperating" in nature. The amounts of
such "nonoperating" expenses are presented in the tables that
accompany this release. Although "net operating income" as
defined by M&T is not a GAAP measure, M&T's management
believes that this information helps investors understand the
effect of acquisition activity in reported results.
Diluted net operating earnings per common share were
$3.56 in the recent quarter, up from
$2.24 in the third quarter of 2017
and $3.29 in the second quarter of
2018. Net operating income for the third quarter of 2018 was
$531 million, compared with
$361 million in the year-earlier
period and $498 million in 2018's
second quarter. Expressed as an annualized rate of return on
average tangible assets and average tangible common shareholders'
equity, net operating income in the recent quarter was 1.89% and
21.00%, respectively, improved from 1.25% and 13.03%, respectively,
in the similar 2017 quarter and 1.79% and 19.91%, respectively, in
the second quarter of 2018.
Diluted net operating earnings per common share in the first
nine months of 2018 increased to $9.10 from $6.78 in
the corresponding 2017 period. Net operating income during the
nine-month period ended September 30, 2018 was $1.39 billion, up from $1.10 billion in the year-earlier period. Net
operating income expressed as an annualized rate of return on
average tangible assets and average tangible common shareholders'
equity was 1.65% and 18.09%, respectively, in the first nine months
of 2018, compared with 1.26% and 13.42%, respectively, in the
year-earlier period.
Taxable-equivalent Net Interest Income. Net interest
income expressed on a taxable-equivalent basis totaled $1.03 billion in 2018's third quarter, 7% higher
than $966 million in the year-earlier
quarter and 2% above $1.01 billion in
the second quarter of 2018. That growth resulted from a widening of
the net interest margin to 3.88% in the recent quarter from 3.53%
in the third quarter of 2017 and 3.83% in the second quarter of
2018. In each quarterly comparison, the impact of the improved
margin was partially offset by lower average balances of loans and
investment securities.
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Taxable-equivalent
Net Interest Income
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Change 3Q18
vs.
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($ in
millions)
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3Q18
|
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3Q17
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2Q18
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3Q17
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2Q18
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Average earning
assets
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$
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105,835
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$
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108,642
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$
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106,210
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-3
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%
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—
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Net interest
income ̶ taxable-equivalent
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$
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1,035
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$
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966
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$
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1,014
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7
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%
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2
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%
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Net interest
margin
|
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3.88
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%
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3.53
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%
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3.83
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%
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Provision for Credit Losses/Asset Quality. The provision
for credit losses was $16 million in
the third quarter of 2018, compared with $30
million in the year-earlier quarter and $35 million in 2018's second quarter. Reflecting
significantly higher recoveries of previously charged-off loans,
net loan charge-offs were $16 million
during the recent quarter, compared with $25
million in the third quarter of 2017 and $35 million in the second quarter of 2018.
Expressed as an annualized percentage of average loans outstanding,
net charge-offs were .07% and .11% in the third quarters of 2018
and 2017, respectively, and .16% in the second quarter of 2018.
Loans classified as nonaccrual totaled $871 million or 1.00% of total loans outstanding
at September 30, 2018, compared with $869 million or .99% a year earlier and
$820 million or .93% at June 30,
2018. Assets taken in foreclosure of defaulted loans were
$87 million at September 30,
2018, improved from $111 million at
September 30, 2017 and $98
million at June 30, 2018.
Allowance for Credit Losses. M&T regularly performs
detailed analyses of individual borrowers and portfolios for
purposes of assessing the adequacy of the allowance for credit
losses. As a result of those analyses, the allowance for
credit losses totaled $1.02 billion
or 1.18% of loans outstanding at September 30, 2018, compared
with $1.01 billion or 1.15% at
September 30, 2017 and $1.02
billion or 1.16% at June 30, 2018.
Asset Quality
Metrics
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Change 3Q18
vs.
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($ in
millions)
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3Q18
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3Q17
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2Q18
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3Q17
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2Q18
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At end of
quarter
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Nonaccrual
loans
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$
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871
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$
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869
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$
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820
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—
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6
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%
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Real estate and other
foreclosed assets
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$
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87
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$
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111
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$
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98
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-21
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%
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-11
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%
|
Total nonperforming
assets
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$
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958
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$
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980
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$
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918
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-2
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%
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4
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%
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Accruing loans past
due 90 days or more (1)
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$
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254
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$
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261
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$
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223
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-3
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%
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14
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%
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Nonaccrual loans as %
of loans outstanding
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1.00
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%
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|
.99
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%
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|
.93
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%
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Allowance for credit
losses
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$
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1,019
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$
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1,013
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$
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1,019
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1
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%
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—
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Allowance for credit
losses as % of loans outstanding
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1.18
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%
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1.15
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%
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1.16
|
%
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For the
period
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Provision for credit
losses
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$
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16
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$
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30
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$
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35
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-47
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%
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|
-54
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%
|
Net
charge-offs
|
|
$
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16
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$
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25
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$
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35
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-37
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%
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-56
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%
|
Net charge-offs as %
of average loans (annualized)
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.07
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%
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.11
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%
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.16
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%
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_________________________________________
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(1) Excludes loans
acquired at a discount. Predominantly residential real estate
loans.
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Noninterest Income and Expense. Noninterest income totaled
$459 million in each of the third
quarters of 2018 and 2017 and $457
million in the second quarter of 2018. As compared with the
third quarter of 2017, higher trust income and credit-related fees
in the recent quarter were predominantly offset by lower mortgage
banking revenues and valuation losses on equity securities. Higher
credit-related fees in the recent quarter were offset by a decline
in mortgage banking revenues, seasonally lower trust income and
valuation losses on equity securities as compared with the second
quarter of 2018.
Noninterest
Income
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Change 3Q18
vs.
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($ in
millions)
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3Q18
|
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3Q17
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2Q18
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3Q17
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2Q18
|
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|
Mortgage banking
revenues
|
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$
|
88
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|
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$
|
97
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$
|
92
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|
|
|
-9
|
%
|
|
|
-4
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%
|
Service charges on
deposit accounts
|
|
|
109
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|
|
|
109
|
|
|
|
107
|
|
|
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-1
|
%
|
|
|
2
|
%
|
Trust
income
|
|
|
133
|
|
|
|
125
|
|
|
|
138
|
|
|
|
7
|
%
|
|
|
-3
|
%
|
Brokerage services
income
|
|
|
12
|
|
|
|
15
|
|
|
|
13
|
|
|
|
-16
|
%
|
|
|
-3
|
%
|
Trading account and
foreign exchange gains
|
|
|
6
|
|
|
|
7
|
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|
|
5
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|
-14
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%
|
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|
16
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%
|
Gain (loss) on bank
investment securities
|
|
|
(3)
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|
|
—
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|
2
|
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|
|
—
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|
|
|
—
|
|
Other revenues from
operations
|
|
|
114
|
|
|
|
106
|
|
|
|
100
|
|
|
|
7
|
%
|
|
|
13
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%
|
Total other
income
|
|
$
|
459
|
|
|
$
|
459
|
|
|
$
|
457
|
|
|
|
—
|
|
|
|
—
|
|
Noninterest expense aggregated $776
million in the third quarter of 2018, $806 million in the year-earlier quarter and
$777 million in the second quarter of
2018. Excluding expenses considered to be nonoperating in
nature, such as amortization of core deposit and other intangible
assets, noninterest operating expenses were $770 million in each of the two most recent
quarters and $798 million in the
third quarter of 2017. The decline in noninterest expense in the
third quarter of 2018 as compared with the year-earlier quarter
reflected a $50 million increase to
the reserve for legal matters in the third quarter of 2017 that was
partially offset by higher salaries and employee benefits expenses
in the recent quarter. As compared with the second quarter of 2018,
lower costs for professional services in the recent quarter were
largely offset by higher salaries and employee benefits
expenses.
Noninterest
Expense
|
|
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|
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|
|
|
|
|
|
|
|
|
Change 3Q18
vs.
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($ in
millions)
|
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3Q18
|
|
|
3Q17
|
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|
2Q18
|
|
|
3Q17
|
|
|
2Q18
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
Salaries and employee
benefits
|
|
$
|
431
|
|
|
$
|
399
|
|
|
$
|
419
|
|
|
|
8
|
%
|
|
|
3
|
%
|
Equipment and net
occupancy
|
|
|
77
|
|
|
|
75
|
|
|
|
73
|
|
|
|
3
|
%
|
|
|
6
|
%
|
Outside data
processing and software
|
|
|
51
|
|
|
|
46
|
|
|
|
49
|
|
|
|
11
|
%
|
|
|
2
|
%
|
FDIC
assessments
|
|
|
19
|
|
|
|
24
|
|
|
|
20
|
|
|
|
-21
|
%
|
|
|
-4
|
%
|
Advertising and
marketing
|
|
|
22
|
|
|
|
17
|
|
|
|
22
|
|
|
|
25
|
%
|
|
|
—
|
|
Printing, postage and
supplies
|
|
|
9
|
|
|
|
9
|
|
|
|
9
|
|
|
|
1
|
%
|
|
|
1
|
%
|
Amortization of core
deposit and other intangible assets
|
|
|
6
|
|
|
|
8
|
|
|
|
6
|
|
|
|
-21
|
%
|
|
|
-4
|
%
|
Other costs of
operations
|
|
|
161
|
|
|
|
228
|
|
|
|
179
|
|
|
|
-30
|
%
|
|
|
-10
|
%
|
Total other
expense
|
|
$
|
776
|
|
|
$
|
806
|
|
|
$
|
777
|
|
|
|
-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 51.4% in
the third quarter of 2018, 56.0% in the corresponding 2017 quarter
and 52.4% in the second quarter of 2018.
Balance Sheet. M&T had total assets of $116.8 billion at September 30, 2018,
compared with $120.4 billion and
$118.4 billion at September 30,
2017 and June 30, 2018, respectively. Loans and leases, net of
unearned discount, were $86.7 billion
at September 30, 2018, $87.9
billion at September 30, 2017 and $87.8 billion at June 30, 2018. The decline
from September 30, 2017 reflects repayments of acquired
residential mortgage loans, partially offset by growth in
commercial real estate loans and consumer loans. The lower
outstanding balances of loans and leases at the recent quarter-end
as compared with June 30, 2018 reflect acquired residential
mortgage loan repayments and a decline in commercial real estate
loans, predominantly loans held for sale. Total deposits were
$89.1 billion at the recent
quarter-end, compared with $93.5
billion at September 30, 2017 and $89.3 billion at June 30, 2018. The decrease
from September 30, 2017 reflects maturities of time deposits,
and lower commercial savings and noninterest-bearing deposits.
Total shareholders' equity was $15.4
billion at September 30, 2018 and $16.3 billion a year earlier, representing 13.21%
and 13.55%, respectively, of total assets. Total shareholders'
equity was $15.6 billion, or 13.15%
of total assets at June 30, 2018. Common shareholders' equity
was $14.2 billion, or $100.38 per share, at September 30, 2018,
compared with $15.1 billion, or
$99.70 per share, a year-earlier and
$14.3 billion, or $99.43 per share, at June 30, 2018.
Tangible equity per common share was $67.64 at September 30, 2018, compared with
$69.02 at September 30, 2017 and
$67.29 at June 30, 2018. In the
calculation of tangible equity per common share, common
shareholders' equity is reduced by the carrying values of goodwill
and core deposit and other intangible assets, net of applicable
deferred tax balances. M&T estimates that the ratio of
Common Equity Tier 1 to risk-weighted assets under regulatory
capital rules was approximately 10.44% at September 30,
2018.
In accordance with its 2018 capital plan, M&T repurchased
2,844,159 shares of its common stock during the recent quarter at
an average cost per share of $175.27,
for a total cost of $498 million. In
the aggregate, during the first nine months of 2018, M&T
repurchased 9,235,817 shares of common stock at a total cost of
$1.7 billion.
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) 780-2276. International participants, using
any applicable international calling codes, may dial (973)
582-2700. Callers should reference M&T Bank Corporation
or the conference ID #1797788. 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 until Wednesday, October
24, by calling (800) 585-8367, or (404) 537-3406 for
international participants, and by making reference to ID
#1797788. The event will also be archived and available by
3:00 p.m. today on M&T's website
at https://ir.mtb.com/events-presentations.
M&T is a financial holding company headquartered in Buffalo,
New York. M&T's principal banking subsidiary, M&T
Bank, operates banking offices in New
York, Maryland,
New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West
Virginia and the District of Columbia. Trust-related
services are provided by M&T's Wilmington Trust-affiliated
companies and by M&T Bank.
Forward-Looking Statements. This news release
contains forward-looking statements that are based on current
expectations, estimates and projections about M&T's business,
management's beliefs and assumptions made by management.
These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions ("Future
Factors") which are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements.
Future Factors include changes in interest rates, spreads on
earning assets and interest-bearing liabilities, and interest rate
sensitivity; prepayment speeds, loan originations, credit losses
and market values on loans, collateral securing loans, and other
assets; sources of liquidity; common shares outstanding; common
stock price volatility; fair value of and number of stock-based
compensation awards to be issued in future periods; the impact of
changes in market values on trust-related revenues; legislation
affecting the financial services industry as a whole, and M&T
and its subsidiaries individually or collectively, including tax
legislation; regulatory supervision and oversight, including
monetary policy and capital requirements; changes in accounting
policies or procedures as may be required by the Financial
Accounting Standards Board or regulatory agencies; increasing price
and product/service competition by competitors, including new
entrants; rapid technological developments and changes; the ability
to continue to introduce competitive new products and services on a
timely, cost-effective basis; the mix of products/services;
containing costs and expenses; governmental and public policy
changes; protection and validity of intellectual property rights;
reliance on large customers; technological, implementation and
cost/financial risks in large, multi-year contracts; the outcome of
pending and future litigation and governmental proceedings,
including tax-related examinations and other matters; continued
availability of financing; financial resources in the amounts, at
the times and on the terms required to support M&T and its
subsidiaries' future businesses; and material differences in the
actual financial results of merger, acquisition and investment
activities compared with M&T's initial expectations, including
the full realization of anticipated cost savings and revenue
enhancements.
These are representative of the Future Factors that could
affect the outcome of the forward-looking statements. In
addition, such statements could be affected by general industry and
market conditions and growth rates, general economic and political
conditions, either nationally or in the states in which M&T and
its subsidiaries do business, including interest rate and currency
exchange rate fluctuations, changes and trends in the securities
markets, and other Future Factors.
Financial
Highlights
|
|
|
Three months
ended
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
Amounts in thousands,
except per share
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
526,091
|
|
|
|
355,923
|
|
|
|
48
|
%
|
|
$
|
1,371,861
|
|
|
|
1,085,903
|
|
|
|
26
|
%
|
Net income available
to common shareholders
|
|
|
505,365
|
|
|
|
335,804
|
|
|
|
50
|
%
|
|
|
1,310,703
|
|
|
|
1,025,023
|
|
|
|
28
|
%
|
Per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
|
$
|
3.54
|
|
|
|
2.22
|
|
|
|
59
|
%
|
|
$
|
9.01
|
|
|
|
6.71
|
|
|
|
34
|
%
|
Diluted
earnings
|
|
|
3.53
|
|
|
|
2.21
|
|
|
|
60
|
%
|
|
|
9.00
|
|
|
|
6.69
|
|
|
|
35
|
%
|
Cash
dividends
|
|
$
|
1.00
|
|
|
|
.75
|
|
|
|
33
|
%
|
|
$
|
2.55
|
|
|
|
2.25
|
|
|
|
13
|
%
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - diluted
(1)
|
|
|
142,976
|
|
|
|
151,691
|
|
|
|
-6
|
%
|
|
|
145,605
|
|
|
|
153,293
|
|
|
|
-5
|
%
|
Period end
(2)
|
|
|
141,479
|
|
|
|
151,291
|
|
|
|
-6
|
%
|
|
|
141,479
|
|
|
|
151,291
|
|
|
|
-6
|
%
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
|
1.80
|
%
|
|
|
1.18
|
%
|
|
|
|
|
|
|
1.57
|
%
|
|
|
1.20
|
%
|
|
|
|
|
Average common
shareholders' equity
|
|
|
14.08
|
%
|
|
|
8.89
|
%
|
|
|
|
|
|
|
12.16
|
%
|
|
|
9.15
|
%
|
|
|
|
|
Taxable-equivalent
net interest income
|
|
$
|
1,034,771
|
|
|
|
965,962
|
|
|
|
7
|
%
|
|
$
|
3,029,281
|
|
|
|
2,835,157
|
|
|
|
7
|
%
|
Yield on average
earning assets
|
|
|
4.40
|
%
|
|
|
3.89
|
%
|
|
|
|
|
|
|
4.26
|
%
|
|
|
3.79
|
%
|
|
|
|
|
Cost of
interest-bearing liabilities
|
|
|
.82
|
%
|
|
|
.57
|
%
|
|
|
|
|
|
|
.72
|
%
|
|
|
.54
|
%
|
|
|
|
|
Net interest
spread
|
|
|
3.58
|
%
|
|
|
3.32
|
%
|
|
|
|
|
|
|
3.54
|
%
|
|
|
3.25
|
%
|
|
|
|
|
Contribution of
interest-free funds
|
|
|
.30
|
%
|
|
|
.21
|
%
|
|
|
|
|
|
|
.27
|
%
|
|
|
.19
|
%
|
|
|
|
|
Net interest
margin
|
|
|
3.88
|
%
|
|
|
3.53
|
%
|
|
|
|
|
|
|
3.81
|
%
|
|
|
3.44
|
%
|
|
|
|
|
Net charge-offs to
average total net loans (annualized)
|
|
|
.07
|
%
|
|
|
.11
|
%
|
|
|
|
|
|
|
.14
|
%
|
|
|
.17
|
%
|
|
|
|
|
Net operating
results (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
$
|
530,619
|
|
|
|
360,658
|
|
|
|
47
|
%
|
|
$
|
1,385,986
|
|
|
|
1,100,667
|
|
|
|
26
|
%
|
Diluted net operating
earnings per common share
|
|
|
3.56
|
|
|
|
2.24
|
|
|
|
59
|
%
|
|
|
9.10
|
|
|
|
6.78
|
|
|
|
34
|
%
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
assets
|
|
|
1.89
|
%
|
|
|
1.25
|
%
|
|
|
|
|
|
|
1.65
|
%
|
|
|
1.26
|
%
|
|
|
|
|
Average tangible
common equity
|
|
|
21.00
|
%
|
|
|
13.03
|
%
|
|
|
|
|
|
|
18.09
|
%
|
|
|
13.42
|
%
|
|
|
|
|
Efficiency
ratio
|
|
|
51.41
|
%
|
|
|
56.00
|
%
|
|
|
|
|
|
|
55.87
|
%
|
|
|
55.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
quality
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
870,832
|
|
|
|
869,362
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate and other
foreclosed assets
|
|
|
87,333
|
|
|
|
110,515
|
|
|
|
-21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
958,165
|
|
|
|
979,877
|
|
|
|
-2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more (4)
|
|
$
|
254,360
|
|
|
|
261,288
|
|
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Government guaranteed
loans included in totals above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
33,570
|
|
|
|
34,687
|
|
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
|
|
195,450
|
|
|
|
252,072
|
|
|
|
-22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Renegotiated
loans
|
|
$
|
242,892
|
|
|
|
226,672
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans
acquired at a discount past due 90 days or more (5)
|
|
$
|
47,681
|
|
|
|
56,225
|
|
|
|
-15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased impaired
loans (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding customer
balance
|
|
$
|
572,979
|
|
|
|
779,340
|
|
|
|
-26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
amount
|
|
|
325,980
|
|
|
|
466,943
|
|
|
|
-30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
total net loans
|
|
|
1.00
|
%
|
|
|
.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to total loans
|
|
|
1.18
|
%
|
|
|
1.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
|
(1) Includes common
stock equivalents.
|
(2) Includes common
stock issuable under deferred compensation plans.
|
(3) Excludes
amortization and balances related to goodwill and core deposit and
other intangible assets and merger-related expenses which, except
in the
|
calculation of the efficiency ratio, are net of applicable income
tax effects. Reconciliations of net income with net operating
income appear herein.
|
(4) Excludes loans
acquired at a discount. Predominantly residential real estate
loans.
|
(5) Loans acquired at a
discount that were recorded at fair value at acquisition date. This
category does not include purchased impaired loans that are
presented separately.
|
(6) Accruing loans
acquired at a discount that were impaired at acquisition date and
recorded at fair value.
|
Financial Highlights,
Five Quarter Trend
|
|
|
Three months
ended
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Amounts in thousands,
except per share
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
526,091
|
|
|
|
493,160
|
|
|
|
352,610
|
|
|
|
322,403
|
|
|
|
355,923
|
|
Net income available
to common shareholders
|
|
|
505,365
|
|
|
|
472,600
|
|
|
|
332,749
|
|
|
|
302,486
|
|
|
|
335,804
|
|
Per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
|
$
|
3.54
|
|
|
|
3.26
|
|
|
|
2.24
|
|
|
|
2.01
|
|
|
|
2.22
|
|
Diluted
earnings
|
|
|
3.53
|
|
|
|
3.26
|
|
|
|
2.23
|
|
|
|
2.01
|
|
|
|
2.21
|
|
Cash
dividends
|
|
$
|
1.00
|
|
|
|
.80
|
|
|
|
.75
|
|
|
|
.75
|
|
|
|
.75
|
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - diluted
(1)
|
|
|
142,976
|
|
|
|
144,998
|
|
|
|
148,905
|
|
|
|
150,348
|
|
|
|
151,691
|
|
Period end
(2)
|
|
|
141,479
|
|
|
|
144,261
|
|
|
|
146,799
|
|
|
|
150,112
|
|
|
|
151,291
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
|
1.80
|
%
|
|
|
1.70
|
%
|
|
|
1.22
|
%
|
|
|
1.06
|
%
|
|
|
1.18
|
%
|
Average common
shareholders' equity
|
|
|
14.08
|
%
|
|
|
13.32
|
%
|
|
|
9.15
|
%
|
|
|
8.03
|
%
|
|
|
8.89
|
%
|
Taxable-equivalent
net interest income
|
|
$
|
1,034,771
|
|
|
|
1,014,184
|
|
|
|
980,326
|
|
|
|
980,457
|
|
|
|
965,962
|
|
Yield on average
earning assets
|
|
|
4.40
|
%
|
|
|
4.28
|
%
|
|
|
4.11
|
%
|
|
|
3.93
|
%
|
|
|
3.89
|
%
|
Cost of
interest-bearing liabilities
|
|
|
.82
|
%
|
|
|
.71
|
%
|
|
|
.64
|
%
|
|
|
.59
|
%
|
|
|
.57
|
%
|
Net interest
spread
|
|
|
3.58
|
%
|
|
|
3.57
|
%
|
|
|
3.47
|
%
|
|
|
3.34
|
%
|
|
|
3.32
|
%
|
Contribution of
interest-free funds
|
|
|
.30
|
%
|
|
|
.26
|
%
|
|
|
.24
|
%
|
|
|
.22
|
%
|
|
|
.21
|
%
|
Net interest
margin
|
|
|
3.88
|
%
|
|
|
3.83
|
%
|
|
|
3.71
|
%
|
|
|
3.56
|
%
|
|
|
3.53
|
%
|
Net charge-offs to
average total net loans (annualized)
|
|
|
.07
|
%
|
|
|
.16
|
%
|
|
|
.19
|
%
|
|
|
.12
|
%
|
|
|
.11
|
%
|
Net operating
results (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
$
|
530,619
|
|
|
|
497,869
|
|
|
|
357,498
|
|
|
|
326,664
|
|
|
|
360,658
|
|
Diluted net operating
earnings per common share
|
|
|
3.56
|
|
|
|
3.29
|
|
|
|
2.26
|
|
|
|
2.04
|
|
|
|
2.24
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
assets
|
|
|
1.89
|
%
|
|
|
1.79
|
%
|
|
|
1.28
|
%
|
|
|
1.12
|
%
|
|
|
1.25
|
%
|
Average tangible
common equity
|
|
|
21.00
|
%
|
|
|
19.91
|
%
|
|
|
13.51
|
%
|
|
|
11.77
|
%
|
|
|
13.03
|
%
|
Efficiency
ratio
|
|
|
51.41
|
%
|
|
|
52.42
|
%
|
|
|
63.98
|
%
|
|
|
54.65
|
%
|
|
|
56.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Loan
quality
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Nonaccrual
loans
|
|
$
|
870,832
|
|
|
|
819,984
|
|
|
|
864,671
|
|
|
|
882,598
|
|
|
|
869,362
|
|
Real estate and other
foreclosed assets
|
|
|
87,333
|
|
|
|
98,062
|
|
|
|
101,514
|
|
|
|
111,910
|
|
|
|
110,515
|
|
Total nonperforming
assets
|
|
$
|
958,165
|
|
|
|
918,046
|
|
|
|
966,185
|
|
|
|
994,508
|
|
|
|
979,877
|
|
Accruing loans past
due 90 days or more (4)
|
|
$
|
254,360
|
|
|
|
223,026
|
|
|
|
235,325
|
|
|
|
244,405
|
|
|
|
261,288
|
|
Government guaranteed
loans included in totals above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
33,570
|
|
|
|
34,870
|
|
|
|
36,618
|
|
|
|
35,677
|
|
|
|
34,687
|
|
Accruing loans past
due 90 days or more
|
|
|
195,450
|
|
|
|
202,394
|
|
|
|
223,611
|
|
|
|
235,489
|
|
|
|
252,072
|
|
Renegotiated
loans
|
|
$
|
242,892
|
|
|
|
242,528
|
|
|
|
226,829
|
|
|
|
221,513
|
|
|
|
226,672
|
|
Accruing loans
acquired at a discount past due 90 days or
more
(5)
|
|
$
|
47,681
|
|
|
|
47,405
|
|
|
|
49,349
|
|
|
|
47,418
|
|
|
|
56,225
|
|
Purchased impaired
loans (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding customer
balance
|
|
$
|
572,979
|
|
|
|
606,683
|
|
|
|
643,124
|
|
|
|
688,091
|
|
|
|
779,340
|
|
Carrying
amount
|
|
|
325,980
|
|
|
|
352,465
|
|
|
|
378,000
|
|
|
|
410,015
|
|
|
|
466,943
|
|
Nonaccrual loans to
total net loans
|
|
|
1.00
|
%
|
|
|
.93
|
%
|
|
|
.99
|
%
|
|
|
1.00
|
%
|
|
|
.99
|
%
|
Allowance for credit
losses to total loans
|
|
|
1.18
|
%
|
|
|
1.16
|
%
|
|
|
1.16
|
%
|
|
|
1.16
|
%
|
|
|
1.15
|
%
|
|
(1) Includes common
stock equivalents.
|
(2) Includes common
stock issuable under deferred compensation plans.
|
(3) Excludes
amortization and balances related to goodwill and core deposit and
other intangible assets and merger-related expenses which, except
in the
calculation of the efficiency ratio, are net of applicable income
tax effects. Reconciliations of net income with net operating
income appear herein.
|
(4) Excludes loans
acquired at a discount. Predominantly residential real estate
loans.
|
(5) Loans acquired at a
discount that were recorded at fair value at acquisition date. This
category does not include purchased impaired loans that are
presented separately.
|
(6) Accruing loans
acquired at a discount that were impaired at acquisition date and
recorded at fair value.
|
Condensed
Consolidated Statement of Income
|
|
|
Three months ended
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
|
September 30
|
|
|
|
|
|
Dollars in
thousands
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Interest
income
|
|
$
|
1,167,375
|
|
|
|
1,057,210
|
|
|
|
10
|
%
|
|
$
|
3,378,430
|
|
|
|
3,093,656
|
|
|
|
9
|
%
|
Interest
expense
|
|
|
138,337
|
|
|
|
100,076
|
|
|
|
38
|
|
|
|
365,088
|
|
|
|
284,062
|
|
|
|
29
|
|
Net interest
income
|
|
|
1,029,038
|
|
|
|
957,134
|
|
|
|
8
|
|
|
|
3,013,342
|
|
|
|
2,809,594
|
|
|
|
7
|
|
Provision for credit
losses
|
|
|
16,000
|
|
|
|
30,000
|
|
|
|
-47
|
|
|
|
94,000
|
|
|
|
137,000
|
|
|
|
-31
|
|
Net interest income
after provision for credit losses
|
|
|
1,013,038
|
|
|
|
927,134
|
|
|
|
9
|
|
|
|
2,919,342
|
|
|
|
2,672,594
|
|
|
|
9
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
|
88,408
|
|
|
|
96,737
|
|
|
|
-9
|
|
|
|
268,213
|
|
|
|
267,592
|
|
|
|
—
|
|
Service charges on
deposit accounts
|
|
|
108,647
|
|
|
|
109,356
|
|
|
|
-1
|
|
|
|
320,546
|
|
|
|
319,589
|
|
|
|
—
|
|
Trust
income
|
|
|
133,545
|
|
|
|
124,900
|
|
|
|
7
|
|
|
|
402,561
|
|
|
|
371,712
|
|
|
|
8
|
|
Brokerage services
income
|
|
|
12,267
|
|
|
|
14,676
|
|
|
|
-16
|
|
|
|
38,288
|
|
|
|
48,677
|
|
|
|
-21
|
|
Trading account and
foreign exchange gains
|
|
|
6,073
|
|
|
|
7,058
|
|
|
|
-14
|
|
|
|
15,965
|
|
|
|
24,833
|
|
|
|
-36
|
|
Loss on bank
investment securities
|
|
|
(3,415)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10,520)
|
|
|
|
(17)
|
|
|
|
—
|
|
Other revenues from
operations
|
|
|
113,769
|
|
|
|
106,702
|
|
|
|
7
|
|
|
|
340,351
|
|
|
|
334,704
|
|
|
|
2
|
|
Total other
income
|
|
|
459,294
|
|
|
|
459,429
|
|
|
|
—
|
|
|
|
1,375,404
|
|
|
|
1,367,090
|
|
|
|
1
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
431,371
|
|
|
|
398,605
|
|
|
|
8
|
|
|
|
1,313,336
|
|
|
|
1,246,400
|
|
|
|
5
|
|
Equipment and net
occupancy
|
|
|
77,481
|
|
|
|
75,558
|
|
|
|
3
|
|
|
|
225,309
|
|
|
|
223,721
|
|
|
|
1
|
|
Outside data
processing and software
|
|
|
50,678
|
|
|
|
45,761
|
|
|
|
11
|
|
|
|
148,819
|
|
|
|
134,637
|
|
|
|
11
|
|
FDIC
assessments
|
|
|
18,849
|
|
|
|
23,969
|
|
|
|
-21
|
|
|
|
58,689
|
|
|
|
78,149
|
|
|
|
-25
|
|
Advertising and
marketing
|
|
|
21,784
|
|
|
|
17,403
|
|
|
|
25
|
|
|
|
59,800
|
|
|
|
49,837
|
|
|
|
20
|
|
Printing, postage and
supplies
|
|
|
8,843
|
|
|
|
8,732
|
|
|
|
1
|
|
|
|
26,881
|
|
|
|
27,397
|
|
|
|
-2
|
|
Amortization of core
deposit and other
intangible assets
|
|
|
6,143
|
|
|
|
7,808
|
|
|
|
-21
|
|
|
|
19,163
|
|
|
|
24,341
|
|
|
|
-21
|
|
Other costs of
operations
|
|
|
160,830
|
|
|
|
228,189
|
|
|
|
-30
|
|
|
|
633,903
|
|
|
|
560,030
|
|
|
|
13
|
|
Total other
expense
|
|
|
775,979
|
|
|
|
806,025
|
|
|
|
-4
|
|
|
|
2,485,900
|
|
|
|
2,344,512
|
|
|
|
6
|
|
Income before income
taxes
|
|
|
696,353
|
|
|
|
580,538
|
|
|
|
20
|
|
|
|
1,808,846
|
|
|
|
1,695,172
|
|
|
|
7
|
|
Applicable income
taxes
|
|
|
170,262
|
|
|
|
224,615
|
|
|
|
-24
|
|
|
|
436,985
|
|
|
|
609,269
|
|
|
|
-28
|
|
Net income
|
|
$
|
526,091
|
|
|
|
355,923
|
|
|
|
48
|
%
|
|
$
|
1,371,861
|
|
|
|
1,085,903
|
|
|
|
26
|
%
|
Condensed
Consolidated Statement of Income, Five Quarter Trend
|
|
|
Three months
ended
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Dollars in
thousands
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Interest
income
|
|
$
|
1,167,375
|
|
|
|
1,128,905
|
|
|
|
1,082,150
|
|
|
|
1,074,139
|
|
|
|
1,057,210
|
|
Interest
expense
|
|
|
138,337
|
|
|
|
120,118
|
|
|
|
106,633
|
|
|
|
102,689
|
|
|
|
100,076
|
|
Net interest
income
|
|
|
1,029,038
|
|
|
|
1,008,787
|
|
|
|
975,517
|
|
|
|
971,450
|
|
|
|
957,134
|
|
Provision for credit
losses
|
|
|
16,000
|
|
|
|
35,000
|
|
|
|
43,000
|
|
|
|
31,000
|
|
|
|
30,000
|
|
Net interest income
after provision for credit losses
|
|
|
1,013,038
|
|
|
|
973,787
|
|
|
|
932,517
|
|
|
|
940,450
|
|
|
|
927,134
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
|
88,408
|
|
|
|
92,499
|
|
|
|
87,306
|
|
|
|
96,235
|
|
|
|
96,737
|
|
Service charges on
deposit accounts
|
|
|
108,647
|
|
|
|
106,784
|
|
|
|
105,115
|
|
|
|
107,783
|
|
|
|
109,356
|
|
Trust
income
|
|
|
133,545
|
|
|
|
137,641
|
|
|
|
131,375
|
|
|
|
129,669
|
|
|
|
124,900
|
|
Brokerage services
income
|
|
|
12,267
|
|
|
|
12,629
|
|
|
|
13,392
|
|
|
|
12,768
|
|
|
|
14,676
|
|
Trading account and
foreign exchange gains
|
|
|
6,073
|
|
|
|
5,255
|
|
|
|
4,637
|
|
|
|
10,468
|
|
|
|
7,058
|
|
Gain (loss) on bank
investment securities
|
|
|
(3,415)
|
|
|
|
2,326
|
|
|
|
(9,431)
|
|
|
|
21,296
|
|
|
|
—
|
|
Other revenues from
operations
|
|
|
113,769
|
|
|
|
100,280
|
|
|
|
126,302
|
|
|
|
105,834
|
|
|
|
106,702
|
|
Total other
income
|
|
|
459,294
|
|
|
|
457,414
|
|
|
|
458,696
|
|
|
|
484,053
|
|
|
|
459,429
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
431,371
|
|
|
|
418,537
|
|
|
|
463,428
|
|
|
|
402,394
|
|
|
|
398,605
|
|
Equipment and net
occupancy
|
|
|
77,481
|
|
|
|
73,031
|
|
|
|
74,797
|
|
|
|
71,363
|
|
|
|
75,558
|
|
Outside data
processing and software
|
|
|
50,678
|
|
|
|
49,712
|
|
|
|
48,429
|
|
|
|
50,033
|
|
|
|
45,761
|
|
FDIC
assessments
|
|
|
18,849
|
|
|
|
19,560
|
|
|
|
20,280
|
|
|
|
23,722
|
|
|
|
23,969
|
|
Advertising and
marketing
|
|
|
21,784
|
|
|
|
21,768
|
|
|
|
16,248
|
|
|
|
19,366
|
|
|
|
17,403
|
|
Printing, postage and
supplies
|
|
|
8,843
|
|
|
|
8,719
|
|
|
|
9,319
|
|
|
|
8,563
|
|
|
|
8,732
|
|
Amortization of core
deposit and other
intangible assets
|
|
|
6,143
|
|
|
|
6,388
|
|
|
|
6,632
|
|
|
|
7,025
|
|
|
|
7,808
|
|
Other costs of
operations
|
|
|
160,830
|
|
|
|
178,862
|
|
|
|
294,211
|
|
|
|
213,347
|
|
|
|
228,189
|
|
Total other
expense
|
|
|
775,979
|
|
|
|
776,577
|
|
|
|
933,344
|
|
|
|
795,813
|
|
|
|
806,025
|
|
Income before income
taxes
|
|
|
696,353
|
|
|
|
654,624
|
|
|
|
457,869
|
|
|
|
628,690
|
|
|
|
580,538
|
|
Applicable income
taxes
|
|
|
170,262
|
|
|
|
161,464
|
|
|
|
105,259
|
|
|
|
306,287
|
|
|
|
224,615
|
|
Net income
|
|
$
|
526,091
|
|
|
|
493,160
|
|
|
|
352,610
|
|
|
|
322,403
|
|
|
|
355,923
|
|
Condensed
Consolidated Balance Sheet
|
|
|
September 30
|
|
|
|
|
|
|
Dollars in
thousands
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,311,611
|
|
|
|
1,368,252
|
|
|
|
-4
|
|
%
|
Interest-bearing
deposits at banks
|
|
|
6,523,746
|
|
|
|
6,306,484
|
|
|
|
3
|
|
|
Trading
account
|
|
|
125,038
|
|
|
|
170,516
|
|
|
|
-27
|
|
|
Investment
securities
|
|
|
13,073,881
|
|
|
|
15,073,926
|
|
|
|
-13
|
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
21,635,394
|
|
|
|
21,743,251
|
|
|
|
—
|
|
|
Real estate -
commercial
|
|
|
33,518,375
|
|
|
|
32,914,288
|
|
|
|
2
|
|
|
Real estate -
consumer
|
|
|
17,721,399
|
|
|
|
20,265,162
|
|
|
|
-13
|
|
|
Consumer
|
|
|
13,805,317
|
|
|
|
13,002,433
|
|
|
|
6
|
|
|
Total loans and
leases, net of unearned discount
|
|
|
86,680,485
|
|
|
|
87,925,134
|
|
|
|
-1
|
|
|
Less: allowance for
credit losses
|
|
|
1,019,488
|
|
|
|
1,013,326
|
|
|
|
1
|
|
|
Net loans and
leases
|
|
|
85,660,997
|
|
|
|
86,911,808
|
|
|
|
-1
|
|
|
Goodwill
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
—
|
|
|
Core deposit and
other intangible assets
|
|
|
52,426
|
|
|
|
78,614
|
|
|
|
-33
|
|
|
Other
assets
|
|
|
5,486,826
|
|
|
|
5,899,092
|
|
|
|
-7
|
|
|
Total
assets
|
|
$
|
116,827,637
|
|
|
|
120,401,804
|
|
|
|
-3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
31,773,560
|
|
|
|
33,111,246
|
|
|
|
-4
|
|
%
|
Interest-bearing
deposits
|
|
|
56,919,549
|
|
|
|
60,170,133
|
|
|
|
-5
|
|
|
Deposits at Cayman
Islands office
|
|
|
447,287
|
|
|
|
232,014
|
|
|
|
93
|
|
|
Total
deposits
|
|
|
89,140,396
|
|
|
|
93,513,393
|
|
|
|
-5
|
|
|
Short-term
borrowings
|
|
|
1,310,110
|
|
|
|
200,768
|
|
|
|
553
|
|
|
Accrued interest and
other liabilities
|
|
|
1,800,778
|
|
|
|
1,791,946
|
|
|
|
—
|
|
|
Long-term
borrowings
|
|
|
9,140,268
|
|
|
|
8,577,645
|
|
|
|
7
|
|
|
Total
liabilities
|
|
|
101,391,552
|
|
|
|
104,083,752
|
|
|
|
-3
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
—
|
|
|
Common
|
|
|
14,204,585
|
|
|
|
15,086,552
|
|
|
|
-6
|
|
|
Total shareholders'
equity
|
|
|
15,436,085
|
|
|
|
16,318,052
|
|
|
|
-5
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
116,827,637
|
|
|
|
120,401,804
|
|
|
|
-3
|
|
%
|
Condensed
Consolidated Balance Sheet, Five Quarter Trend
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
Dollars in
thousands
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,311,611
|
|
|
|
1,367,594
|
|
|
|
1,291,664
|
|
|
|
1,420,888
|
|
|
|
1,368,252
|
|
Interest-bearing
deposits at banks
|
|
|
6,523,746
|
|
|
|
6,669,985
|
|
|
|
6,135,434
|
|
|
|
5,078,903
|
|
|
|
6,306,484
|
|
Federal funds
sold
|
|
|
—
|
|
|
|
1,500
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
—
|
|
Trading
account
|
|
|
125,038
|
|
|
|
148,303
|
|
|
|
141,134
|
|
|
|
132,909
|
|
|
|
170,516
|
|
Investment
securities
|
|
|
13,073,881
|
|
|
|
13,283,002
|
|
|
|
14,066,564
|
|
|
|
14,664,525
|
|
|
|
15,073,926
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
21,635,394
|
|
|
|
21,894,857
|
|
|
|
21,697,522
|
|
|
|
21,742,651
|
|
|
|
21,743,251
|
|
Real estate -
commercial
|
|
|
33,518,375
|
|
|
|
34,137,937
|
|
|
|
33,753,506
|
|
|
|
33,366,373
|
|
|
|
32,914,288
|
|
Real estate -
consumer
|
|
|
17,721,399
|
|
|
|
18,310,712
|
|
|
|
18,960,946
|
|
|
|
19,613,344
|
|
|
|
20,265,162
|
|
Consumer
|
|
|
13,805,317
|
|
|
|
13,453,944
|
|
|
|
13,298,775
|
|
|
|
13,266,615
|
|
|
|
13,002,433
|
|
Total loans and leases, net of unearned discount
|
|
|
86,680,485
|
|
|
|
87,797,450
|
|
|
|
87,710,749
|
|
|
|
87,988,983
|
|
|
|
87,925,134
|
|
Less: allowance for
credit losses
|
|
|
1,019,488
|
|
|
|
1,019,248
|
|
|
|
1,019,671
|
|
|
|
1,017,198
|
|
|
|
1,013,326
|
|
Net loans and
leases
|
|
|
85,660,997
|
|
|
|
86,778,202
|
|
|
|
86,691,078
|
|
|
|
86,971,785
|
|
|
|
86,911,808
|
|
Goodwill
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
Core deposit and
other intangible assets
|
|
|
52,426
|
|
|
|
58,569
|
|
|
|
64,957
|
|
|
|
71,589
|
|
|
|
78,614
|
|
Other
assets
|
|
|
5,486,826
|
|
|
|
5,525,786
|
|
|
|
5,637,881
|
|
|
|
5,659,776
|
|
|
|
5,899,092
|
|
Total
assets
|
|
$
|
116,827,637
|
|
|
|
118,426,053
|
|
|
|
118,622,824
|
|
|
|
118,593,487
|
|
|
|
120,401,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
31,773,560
|
|
|
|
32,086,191
|
|
|
|
31,817,516
|
|
|
|
33,975,180
|
|
|
|
33,111,246
|
|
Interest-bearing
deposits
|
|
|
56,919,549
|
|
|
|
56,924,970
|
|
|
|
58,851,050
|
|
|
|
58,278,970
|
|
|
|
60,170,133
|
|
Deposits at Cayman
Islands office
|
|
|
447,287
|
|
|
|
261,427
|
|
|
|
278,064
|
|
|
|
177,996
|
|
|
|
232,014
|
|
Total
deposits
|
|
|
89,140,396
|
|
|
|
89,272,588
|
|
|
|
90,946,630
|
|
|
|
92,432,146
|
|
|
|
93,513,393
|
|
Short-term
borrowings
|
|
|
1,310,110
|
|
|
|
3,239,416
|
|
|
|
1,626,129
|
|
|
|
175,099
|
|
|
|
200,768
|
|
Accrued interest and
other liabilities
|
|
|
1,800,778
|
|
|
|
1,953,848
|
|
|
|
1,749,320
|
|
|
|
1,593,993
|
|
|
|
1,791,946
|
|
Long-term
borrowings
|
|
|
9,140,268
|
|
|
|
8,382,316
|
|
|
|
8,591,051
|
|
|
|
8,141,430
|
|
|
|
8,577,645
|
|
Total
liabilities
|
|
|
101,391,552
|
|
|
|
102,848,168
|
|
|
|
102,913,130
|
|
|
|
102,342,668
|
|
|
|
104,083,752
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
Common
|
|
|
14,204,585
|
|
|
|
14,346,385
|
|
|
|
14,478,194
|
|
|
|
15,019,319
|
|
|
|
15,086,552
|
|
Total shareholders'
equity
|
|
|
15,436,085
|
|
|
|
15,577,885
|
|
|
|
15,709,694
|
|
|
|
16,250,819
|
|
|
|
16,318,052
|
|
Total liabilities and
shareholders' equity
|
|
$
|
116,827,637
|
|
|
|
118,426,053
|
|
|
|
118,622,824
|
|
|
|
118,593,487
|
|
|
|
120,401,804
|
|
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,
2018 from
|
|
|
|
September 30,
|
|
|
Change
|
|
|
Dollars in
millions
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
September 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
in
|
|
|
|
|
Balance
|
|
|
Rate
|
|
|
Balance
|
|
|
Rate
|
|
|
Balance
|
|
|
Rate
|
|
|
2017
|
|
|
2018
|
|
|
|
Balance
|
|
|
Rate
|
|
|
Balance
|
|
|
Rate
|
|
|
balance
|
|
|
|
ASSETS
|
|
Interest-bearing
deposits at banks
|
|
$
|
5,207
|
|
|
|
1.98
|
%
|
|
|
4,740
|
|
|
|
1.25
|
%
|
|
|
4,890
|
|
|
|
1.79
|
%
|
|
|
10
|
%
|
|
|
6
|
%
|
|
|
$
|
5,014
|
|
|
|
1.77
|
%
|
|
|
5,206
|
|
|
|
1.01
|
%
|
|
|
-4
|
%
|
|
Federal funds
sold
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
2.23
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
1.92
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Trading
account
|
|
|
65
|
|
|
|
1.78
|
|
|
|
73
|
|
|
|
1.92
|
|
|
|
57
|
|
|
|
2.92
|
|
|
|
-11
|
|
|
|
14
|
|
|
|
|
59
|
|
|
|
2.52
|
|
|
|
66
|
|
|
|
1.87
|
|
|
|
-10
|
|
|
Investment
securities
|
|
|
13,431
|
|
|
|
2.37
|
|
|
|
15,443
|
|
|
|
2.28
|
|
|
|
13,856
|
|
|
|
2.38
|
|
|
|
-13
|
|
|
|
-3
|
|
|
|
|
13,917
|
|
|
|
2.36
|
|
|
|
15,783
|
|
|
|
2.36
|
|
|
|
-12
|
|
|
Loans and leases, net
of unearned discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
21,689
|
|
|
|
4.68
|
|
|
|
21,734
|
|
|
|
3.98
|
|
|
|
21,709
|
|
|
|
4.49
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
21,649
|
|
|
|
4.48
|
|
|
|
22,122
|
|
|
|
3.83
|
|
|
|
-2
|
|
|
Real estate -
commercial
|
|
|
33,800
|
|
|
|
5.10
|
|
|
|
33,257
|
|
|
|
4.50
|
|
|
|
33,687
|
|
|
|
4.95
|
|
|
|
2
|
|
|
|
—
|
|
|
|
|
33,713
|
|
|
|
4.93
|
|
|
|
33,216
|
|
|
|
4.33
|
|
|
|
1
|
|
|
Real estate -
consumer
|
|
|
18,006
|
|
|
|
4.21
|
|
|
|
20,609
|
|
|
|
3.96
|
|
|
|
18,644
|
|
|
|
4.15
|
|
|
|
-13
|
|
|
|
-3
|
|
|
|
|
18,637
|
|
|
|
4.14
|
|
|
|
21,363
|
|
|
|
3.94
|
|
|
|
-13
|
|
|
Consumer
|
|
|
13,637
|
|
|
|
5.26
|
|
|
|
12,786
|
|
|
|
4.89
|
|
|
|
13,366
|
|
|
|
5.14
|
|
|
|
7
|
|
|
|
2
|
|
|
|
|
13,433
|
|
|
|
5.14
|
|
|
|
12,444
|
|
|
|
4.79
|
|
|
|
8
|
|
|
Total loans and
leases, net
|
|
|
87,132
|
|
|
|
4.86
|
|
|
|
88,386
|
|
|
|
4.32
|
|
|
|
87,406
|
|
|
|
4.73
|
|
|
|
-1
|
|
|
|
—
|
|
|
|
|
87,432
|
|
|
|
4.71
|
|
|
|
89,145
|
|
|
|
4.20
|
|
|
|
-2
|
|
|
Total earning
assets
|
|
|
105,835
|
|
|
|
4.40
|
|
|
|
108,642
|
|
|
|
3.89
|
|
|
|
106,210
|
|
|
|
4.28
|
|
|
|
-3
|
|
|
|
—
|
|
|
|
|
106,423
|
|
|
|
4.26
|
|
|
|
110,200
|
|
|
|
3.79
|
|
|
|
-3
|
|
|
Goodwill
|
|
|
4,593
|
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
4,593
|
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
|
—
|
|
|
Core deposit and other intangible
assets
|
|
|
55
|
|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
62
|
|
|
|
|
|
|
|
-33
|
|
|
|
-10
|
|
|
|
|
62
|
|
|
|
|
|
|
|
90
|
|
|
|
|
|
|
|
-32
|
|
|
Other
assets
|
|
|
5,514
|
|
|
|
|
|
|
|
6,198
|
|
|
|
|
|
|
|
5,548
|
|
|
|
|
|
|
|
-11
|
|
|
|
-1
|
|
|
|
|
5,598
|
|
|
|
|
|
|
|
6,190
|
|
|
|
|
|
|
|
-10
|
|
|
Total
assets
|
|
$
|
115,997
|
|
|
|
|
|
|
|
119,515
|
|
|
|
|
|
|
|
116,413
|
|
|
|
|
|
|
|
-3
|
%
|
|
|
—
|
%
|
|
|
$
|
116,676
|
|
|
|
|
|
|
|
121,073
|
|
|
|
|
|
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
interest-checking deposits
|
|
$
|
51,552
|
|
|
|
.43
|
|
|
|
53,287
|
|
|
|
.28
|
|
|
|
52,547
|
|
|
|
.37
|
|
|
|
-3
|
%
|
|
|
-2
|
%
|
|
|
$
|
52,198
|
|
|
|
.37
|
|
|
|
53,386
|
|
|
|
.24
|
|
|
|
-2
|
%
|
|
Time
deposits
|
|
|
5,826
|
|
|
|
.88
|
|
|
|
7,673
|
|
|
|
.72
|
|
|
|
5,997
|
|
|
|
.76
|
|
|
|
-24
|
|
|
|
-3
|
|
|
|
|
6,046
|
|
|
|
.78
|
|
|
|
8,591
|
|
|
|
.77
|
|
|
|
-30
|
|
|
Deposits at Cayman Islands
office
|
|
|
407
|
|
|
|
1.52
|
|
|
|
169
|
|
|
|
.73
|
|
|
|
225
|
|
|
|
.97
|
|
|
|
140
|
|
|
|
81
|
|
|
|
|
294
|
|
|
|
1.13
|
|
|
|
175
|
|
|
|
.66
|
|
|
|
68
|
|
|
Total interest-bearing deposits
|
|
|
57,785
|
|
|
|
.49
|
|
|
|
61,129
|
|
|
|
.34
|
|
|
|
58,769
|
|
|
|
.41
|
|
|
|
-5
|
|
|
|
-2
|
|
|
|
|
58,538
|
|
|
|
.42
|
|
|
|
62,152
|
|
|
|
.31
|
|
|
|
-6
|
|
|
Short-term
borrowings
|
|
|
374
|
|
|
|
1.70
|
|
|
|
244
|
|
|
|
.90
|
|
|
|
353
|
|
|
|
1.57
|
|
|
|
53
|
|
|
|
6
|
|
|
|
|
336
|
|
|
|
1.54
|
|
|
|
213
|
|
|
|
.72
|
|
|
|
57
|
|
|
Long-term
borrowings
|
|
|
9,047
|
|
|
|
2.90
|
|
|
|
8,033
|
|
|
|
2.35
|
|
|
|
8,480
|
|
|
|
2.75
|
|
|
|
13
|
|
|
|
7
|
|
|
|
|
8,712
|
|
|
|
2.73
|
|
|
|
8,248
|
|
|
|
2.25
|
|
|
|
6
|
|
|
Total
interest-bearing liabilities
|
|
|
67,206
|
|
|
|
.82
|
|
|
|
69,406
|
|
|
|
.57
|
|
|
|
67,602
|
|
|
|
.71
|
|
|
|
-3
|
|
|
|
-1
|
|
|
|
|
67,586
|
|
|
|
.72
|
|
|
|
70,613
|
|
|
|
.54
|
|
|
|
-4
|
|
|
Noninterest-bearing
deposits
|
|
|
31,467
|
|
|
|
|
|
|
|
32,005
|
|
|
|
|
|
|
|
31,426
|
|
|
|
|
|
|
|
-2
|
|
|
|
—
|
|
|
|
|
31,644
|
|
|
|
|
|
|
|
32,382
|
|
|
|
|
|
|
|
-2
|
|
|
Other
liabilities
|
|
|
1,775
|
|
|
|
|
|
|
|
1,803
|
|
|
|
|
|
|
|
1,852
|
|
|
|
|
|
|
|
-2
|
|
|
|
-4
|
|
|
|
|
1,734
|
|
|
|
|
|
|
|
1,775
|
|
|
|
|
|
|
|
-2
|
|
|
Total
liabilities
|
|
|
100,448
|
|
|
|
|
|
|
|
103,214
|
|
|
|
|
|
|
|
100,880
|
|
|
|
|
|
|
|
-3
|
|
|
|
—
|
|
|
|
|
100,964
|
|
|
|
|
|
|
|
104,770
|
|
|
|
|
|
|
|
-4
|
|
|
Shareholders'
equity
|
|
|
15,549
|
|
|
|
|
|
|
|
16,301
|
|
|
|
|
|
|
|
15,533
|
|
|
|
|
|
|
|
-5
|
|
|
|
—
|
|
|
|
|
15,712
|
|
|
|
|
|
|
|
16,303
|
|
|
|
|
|
|
|
-4
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
115,997
|
|
|
|
|
|
|
|
119,515
|
|
|
|
|
|
|
|
116,413
|
|
|
|
|
|
|
|
-3
|
%
|
|
|
—
|
%
|
|
|
$
|
116,676
|
|
|
|
|
|
|
|
121,073
|
|
|
|
|
|
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
|
|
3.58
|
|
|
|
|
|
|
|
3.32
|
|
|
|
|
|
|
|
3.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.54
|
|
|
|
|
|
|
|
3.25
|
|
|
|
|
|
|
Contribution of
interest-free funds
|
|
|
|
|
|
|
.30
|
|
|
|
|
|
|
|
.21
|
|
|
|
|
|
|
|
.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
.27
|
|
|
|
|
|
|
|
.19
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
3.88
|
%
|
|
|
|
|
|
|
3.53
|
%
|
|
|
|
|
|
|
3.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.81
|
%
|
|
|
|
|
|
|
3.44
|
%
|
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
|
September 30
|
|
|
September 30
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Income statement
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
526,091
|
|
|
|
355,923
|
|
|
|
1,371,861
|
|
|
|
1,085,903
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
4,528
|
|
|
|
4,735
|
|
|
|
14,125
|
|
|
|
14,764
|
|
Net operating
income
|
|
$
|
530,619
|
|
|
|
360,658
|
|
|
|
1,385,986
|
|
|
|
1,100,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
3.53
|
|
|
|
2.21
|
|
|
|
9.00
|
|
|
|
6.69
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.10
|
|
|
|
.09
|
|
Diluted net operating
earnings per common share
|
|
$
|
3.56
|
|
|
|
2.24
|
|
|
|
9.10
|
|
|
|
6.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
$
|
775,979
|
|
|
|
806,025
|
|
|
|
2,485,900
|
|
|
|
2,344,512
|
|
Amortization of core
deposit and other intangible assets
|
|
|
(6,143)
|
|
|
|
(7,808)
|
|
|
|
(19,163)
|
|
|
|
(24,341)
|
|
Noninterest operating
expense
|
|
$
|
769,836
|
|
|
|
798,217
|
|
|
|
2,466,737
|
|
|
|
2,320,171
|
|
Efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest operating
expense (numerator)
|
|
$
|
769,836
|
|
|
|
798,217
|
|
|
|
2,466,737
|
|
|
|
2,320,171
|
|
Taxable-equivalent
net interest income
|
|
|
1,034,771
|
|
|
|
965,962
|
|
|
|
3,029,281
|
|
|
|
2,835,157
|
|
Other
income
|
|
|
459,294
|
|
|
|
459,429
|
|
|
|
1,375,404
|
|
|
|
1,367,090
|
|
Less: Loss on
bank investment securities
|
|
|
(3,415)
|
|
|
|
—
|
|
|
|
(10,520)
|
|
|
|
(17)
|
|
Denominator
|
|
$
|
1,497,480
|
|
|
|
1,425,391
|
|
|
|
4,415,205
|
|
|
|
4,202,264
|
|
Efficiency
ratio
|
|
|
51.41
|
%
|
|
|
56.00
|
%
|
|
|
55.87
|
%
|
|
|
55.21
|
%
|
Balance sheet
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
115,997
|
|
|
|
119,515
|
|
|
|
116,676
|
|
|
|
121,073
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(55)
|
|
|
|
(82)
|
|
|
|
(62)
|
|
|
|
(90)
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
32
|
|
|
|
16
|
|
|
|
35
|
|
Average tangible
assets
|
|
$
|
111,363
|
|
|
|
114,872
|
|
|
|
112,037
|
|
|
|
116,425
|
|
Average common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
equity
|
|
$
|
15,549
|
|
|
|
16,301
|
|
|
|
15,712
|
|
|
|
16,303
|
|
Preferred
stock
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
Average common
equity
|
|
|
14,317
|
|
|
|
15,069
|
|
|
|
14,480
|
|
|
|
15,071
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(55)
|
|
|
|
(82)
|
|
|
|
(62)
|
|
|
|
(90)
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
32
|
|
|
|
16
|
|
|
|
35
|
|
Average tangible
common equity
|
|
$
|
9,683
|
|
|
|
10,426
|
|
|
|
9,841
|
|
|
|
10,423
|
|
At end of
quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
116,828
|
|
|
|
120,402
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
|
|
|
|
|
|
Core deposit and
other intangible assets
|
|
|
(52)
|
|
|
|
(79)
|
|
|
|
|
|
|
|
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
Total tangible
assets
|
|
$
|
112,197
|
|
|
|
115,761
|
|
|
|
|
|
|
|
|
|
Total common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
|
15,436
|
|
|
|
16,318
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
|
|
|
|
|
|
Undeclared dividends
- cumulative preferred stock
|
|
|
(3)
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
Common equity, net of
undeclared cumulative preferred dividends
|
|
|
14,201
|
|
|
|
15,083
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
|
|
|
|
|
|
Core deposit and
other intangible assets
|
|
|
(52)
|
|
|
|
(79)
|
|
|
|
|
|
|
|
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
Total tangible common
equity
|
|
$
|
9,570
|
|
|
|
10,442
|
|
|
|
|
|
|
|
|
|
________________________
|
(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,
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Income statement
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
526,091
|
|
|
|
493,160
|
|
|
|
352,610
|
|
|
|
322,403
|
|
|
|
355,923
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
4,528
|
|
|
|
4,709
|
|
|
|
4,888
|
|
|
|
4,261
|
|
|
|
4,735
|
|
Net operating
income
|
|
$
|
530,619
|
|
|
|
497,869
|
|
|
|
357,498
|
|
|
|
326,664
|
|
|
|
360,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
3.53
|
|
|
|
3.26
|
|
|
|
2.23
|
|
|
|
2.01
|
|
|
|
2.21
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.03
|
|
Diluted net operating
earnings per common share
|
|
$
|
3.56
|
|
|
|
3.29
|
|
|
|
2.26
|
|
|
|
2.04
|
|
|
|
2.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
$
|
775,979
|
|
|
|
776,577
|
|
|
|
933,344
|
|
|
|
795,813
|
|
|
|
806,025
|
|
Amortization of core
deposit and other intangible assets
|
|
|
(6,143)
|
|
|
|
(6,388)
|
|
|
|
(6,632)
|
|
|
|
(7,025)
|
|
|
|
(7,808)
|
|
Noninterest operating
expense
|
|
$
|
769,836
|
|
|
|
770,189
|
|
|
|
926,712
|
|
|
|
788,788
|
|
|
|
798,217
|
|
Efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest operating
expense (numerator)
|
|
$
|
769,836
|
|
|
|
770,189
|
|
|
|
926,712
|
|
|
|
788,788
|
|
|
|
798,217
|
|
Taxable-equivalent
net interest income
|
|
|
1,034,771
|
|
|
|
1,014,184
|
|
|
|
980,326
|
|
|
|
980,457
|
|
|
|
965,962
|
|
Other
income
|
|
|
459,294
|
|
|
|
457,414
|
|
|
|
458,696
|
|
|
|
484,053
|
|
|
|
459,429
|
|
Less: Gain
(loss) on bank investment securities
|
|
|
(3,415)
|
|
|
|
2,326
|
|
|
|
(9,431)
|
|
|
|
21,296
|
|
|
|
—
|
|
Denominator
|
|
$
|
1,497,480
|
|
|
|
1,469,272
|
|
|
|
1,448,453
|
|
|
|
1,443,214
|
|
|
|
1,425,391
|
|
Efficiency
ratio
|
|
|
51.41
|
%
|
|
|
52.42
|
%
|
|
|
63.98
|
%
|
|
|
54.65
|
%
|
|
|
56.00
|
%
|
Balance sheet
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
115,997
|
|
|
|
116,413
|
|
|
|
117,684
|
|
|
|
120,226
|
|
|
|
119,515
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(55)
|
|
|
|
(62)
|
|
|
|
(68)
|
|
|
|
(75)
|
|
|
|
(82)
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
17
|
|
|
|
18
|
|
|
|
26
|
|
|
|
32
|
|
Average tangible
assets
|
|
$
|
111,363
|
|
|
|
111,775
|
|
|
|
113,041
|
|
|
|
115,584
|
|
|
|
114,872
|
|
Average common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
equity
|
|
$
|
15,549
|
|
|
|
15,533
|
|
|
|
16,059
|
|
|
|
16,271
|
|
|
|
16,301
|
|
Preferred
stock
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
Average common
equity
|
|
|
14,317
|
|
|
|
14,301
|
|
|
|
14,827
|
|
|
|
15,039
|
|
|
|
15,069
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(55)
|
|
|
|
(62)
|
|
|
|
(68)
|
|
|
|
(75)
|
|
|
|
(82)
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
17
|
|
|
|
18
|
|
|
|
26
|
|
|
|
32
|
|
Average tangible
common equity
|
|
$
|
9,683
|
|
|
|
9,663
|
|
|
|
10,184
|
|
|
|
10,397
|
|
|
|
10,426
|
|
At end of
quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
116,828
|
|
|
|
118,426
|
|
|
|
118,623
|
|
|
|
118,593
|
|
|
|
120,402
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(52)
|
|
|
|
(59)
|
|
|
|
(65)
|
|
|
|
(72)
|
|
|
|
(79)
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
16
|
|
|
|
17
|
|
|
|
19
|
|
|
|
31
|
|
Total tangible
assets
|
|
$
|
112,197
|
|
|
|
113,790
|
|
|
|
113,982
|
|
|
|
113,947
|
|
|
|
115,761
|
|
Total common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
|
15,436
|
|
|
|
15,578
|
|
|
|
15,710
|
|
|
|
16,251
|
|
|
|
16,318
|
|
Preferred
stock
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
Undeclared dividends
- cumulative preferred stock
|
|
|
(3)
|
|
|
|
(3)
|
|
|
|
(3)
|
|
|
|
(3)
|
|
|
|
(3)
|
|
Common equity, net of
undeclared cumulative preferred
dividends
|
|
|
14,201
|
|
|
|
14,343
|
|
|
|
14,475
|
|
|
|
15,016
|
|
|
|
15,083
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(52)
|
|
|
|
(59)
|
|
|
|
(65)
|
|
|
|
(72)
|
|
|
|
(79)
|
|
Deferred
taxes
|
|
|
14
|
|
|
|
16
|
|
|
|
17
|
|
|
|
19
|
|
|
|
31
|
|
Total tangible common
equity
|
|
$
|
9,570
|
|
|
|
9,707
|
|
|
|
9,834
|
|
|
|
10,370
|
|
|
|
10,442
|
|
__________________________
|
(1) After any
related tax effect.
|
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SOURCE M&T Bank Corporation