BUFFALO, N.Y., April 15, 2019 /PRNewswire/ -- M&T Bank
Corporation ("M&T") (NYSE: MTB) today reported its results of
operations for the quarter ended March 31, 2019.
GAAP Results of Operations. Diluted earnings per common
share measured in accordance with generally accepted accounting
principles ("GAAP") were $3.35 in the
initial 2019 quarter, 50% higher than $2.23 in the year-earlier quarter.
GAAP-basis net income in the recent quarter was $483 million, up from $353
million in the first quarter of 2018. Diluted earnings per
share and GAAP-basis net income were $3.76 and $546
million, respectively, in the fourth quarter of 2018.
GAAP-basis net income for the first quarter of 2019 expressed as an
annualized rate of return on average assets and average common
shareholders' equity was 1.68% and 13.14%, respectively, compared
with 1.22% and 9.15%, respectively, in the corresponding 2018
period and 1.84% and 14.80%, respectively, in the fourth quarter of
2018.
Darren J. King, Executive Vice
President and Chief Financial Officer of M&T, commented on the
recent quarter's results, "M&T's performance during the first
three months of 2019 was strong. We were particularly pleased with
the growth experienced in our commercial loan portfolios, which
rose 3% from the fourth quarter. During the recent quarter, M&T
purchased servicing rights for over $13
billion of residential real estate loans, boosting mortgage
banking revenues by $8 million.
Credit results continued to be solid, with net charge-offs
representing an annualized .10% of average loans. Overall, it was a
good start to 2019."
Earnings
Highlights
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Change 1Q19
vs.
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($ in millions,
except per share data)
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1Q19
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1Q18
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4Q18
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1Q18
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4Q18
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Net income
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$
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483
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$
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353
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$
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546
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37
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%
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-12
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%
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Net income available
to common shareholders ̶ diluted
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$
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462
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$
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333
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$
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525
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39
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%
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-12
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%
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Diluted earnings per
common share
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$
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3.35
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$
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2.23
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$
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3.76
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50
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%
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-11
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%
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Annualized return on
average assets
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1.68
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%
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1.22
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%
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1.84
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%
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Annualized return on
average common equity
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13.14
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%
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9.15
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%
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14.80
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%
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During the first quarter of 2019, M&T increased its reserve
for legal matters by $50 million in
conjunction with matters associated with a subsidiary's role as
trustee of Employee Stock Ownership Plans in its Institutional
Client Services business. That increase, on an after-tax basis,
reduced net income in the recent quarter by $37 million, or $.27 of diluted earnings per common share.
Litigation-related accruals in last year's first quarter reduced
net income by $102 million, or
$.68 of diluted earnings per common
share. Also during the recent quarter, M&T realized
$37 million of distributed income
from Bayview Lending Group LLC ("BLG"), increasing net income in
the quarter by $28 million, or
$.20 of diluted earnings per common
share. Similar income in the year-earlier quarter increased
M&T's net income in that period by $17
million, or $.11 of diluted
earnings per common share.
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
$3.38 in the first quarter of 2019,
compared with $2.26 in the first
quarter of 2018 and $3.79 in the
fourth quarter of 2018. Net operating income for the recent
quarter was $486 million, compared
with $357 million in the year-earlier
period and $550 million in 2018's
fourth 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 1.76% and
19.56%, respectively, compared with 1.28% and 13.51%, respectively,
in the similar 2018 quarter and 1.93% and 22.16%, respectively, in
the final quarter of 2018.
Taxable-equivalent Net Interest Income. Net interest
income expressed on a taxable-equivalent basis totaled $1.06 billion in the initial 2019 quarter, up 8%
from $980 million in the first
quarter of 2018, due to a widening of the net interest margin in
the recent quarter to 4.04% from 3.71% in the first three months of
2018. The favorable impact from that widening was partially offset
by a decline in average earning assets in the recent quarter to
$106.1 billion from $107.2 billion in the year-earlier period,
reflecting reduced holdings of mortgage-backed securities and
residential mortgage loans. Taxable-equivalent net interest income
in the first quarter of 2019 was down one percent from the fourth
quarter of 2018. A 12 basis point widening of the net interest
margin from 3.92% in the final 2018 quarter was offset by a
$2.8 billion decrease in average
interest-bearing deposit balances held at the Federal Reserve Bank
of New York.
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Taxable-equivalent
Net Interest Income
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Change 1Q19
vs.
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($ in
millions)
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1Q19
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1Q18
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4Q18
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1Q18
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4Q18
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Average earning
assets
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$
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106,096
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$
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107,231
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$
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107,785
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-1
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%
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-2
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%
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Net interest
income ̶ taxable-equivalent
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$
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1,056
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$
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980
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$
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1,065
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8
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%
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-1
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%
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Net interest
margin
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4.04
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%
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3.71
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%
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3.92
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%
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Provision for Credit Losses/Asset Quality. The provision
for credit losses was $22 million in
the first quarter of 2019, compared with $43
million in the year-earlier quarter and $38 million in 2018's final quarter. Net loan
charge-offs were $22 million during
the recent quarter, improved from $41
million in the first quarter of 2018 and $38 million in the fourth quarter of 2018.
Expressed as an annualized percentage of average loans outstanding,
net charge-offs were .10% and .19% in the first three months of
2019 and 2018, respectively, and .17% in the fourth quarter of
2018.
Loans classified as nonaccrual totaled $882 million or .99% of total loans outstanding
at March 31, 2019, compared with $865
million or .99% a year earlier and $894 million or 1.01% at December 31, 2018.
Assets taken in foreclosure of defaulted loans were $81 million at March 31, 2019, compared with
$101 million at March 31, 2018
and $78 million at December 31,
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 $1.02 billion
at each of March 31, 2019, March 31, 2018 and
December 31, 2018. As a percentage of loans outstanding, the
allowance was 1.15% at each of March 31, 2019 and
December 31, 2018 and 1.16% at March 31, 2018.
Asset Quality
Metrics
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Change 1Q19
vs.
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($ in
millions)
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1Q19
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1Q18
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4Q18
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1Q18
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4Q18
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At end of
quarter
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Nonaccrual
loans
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$
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882
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$
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865
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$
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894
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2
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%
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-1
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%
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Real estate and other
foreclosed assets
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$
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81
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$
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101
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$
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78
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-20
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%
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4
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%
|
Total nonperforming
assets
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$
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963
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$
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966
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$
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972
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—
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-1
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%
|
Accruing loans past
due 90 days or more (1)
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$
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244
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$
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235
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$
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223
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4
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%
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10
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%
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Nonaccrual loans as %
of loans outstanding
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.99
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%
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.99
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%
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1.01
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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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1,020
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$
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1,019
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—
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—
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Allowance for credit
losses as % of loans outstanding
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1.15
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%
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1.16
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%
|
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1.15
|
%
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For the
period
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Provision for credit
losses
|
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$
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22
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$
|
43
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$
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38
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-49
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%
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-42
|
%
|
Net
charge-offs
|
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$
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22
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$
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41
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$
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38
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-45
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%
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-42
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%
|
Net charge-offs as %
of average loans (annualized)
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.10
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%
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.19
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%
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.17
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%
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(1)
|
Excludes loans
acquired at a discount. Predominantly residential real estate
loans.
|
Noninterest Income and Expense. Noninterest income totaled
$501 million in the recent quarter,
up 9% from $459 million in the
year-earlier quarter and 4% higher than $481
million in the fourth quarter of 2018. The increases are
reflective of higher mortgage banking revenues, valuation gains on
equity securities and distributions from BLG.
Noninterest
Income
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|
|
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|
|
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Change 1Q19
vs.
|
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($ in
millions)
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1Q19
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1Q18
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4Q18
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1Q18
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4Q18
|
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|
Mortgage banking
revenues
|
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$
|
95
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$
|
87
|
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$
|
92
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|
|
9
|
%
|
|
|
3
|
%
|
Service charges on
deposit accounts
|
|
|
103
|
|
|
|
105
|
|
|
|
109
|
|
|
|
-2
|
%
|
|
|
-5
|
%
|
Trust
income
|
|
|
133
|
|
|
|
131
|
|
|
|
135
|
|
|
|
1
|
%
|
|
|
-2
|
%
|
Brokerage services
income
|
|
|
12
|
|
|
|
13
|
|
|
|
13
|
|
|
|
-7
|
%
|
|
|
-2
|
%
|
Trading account and
foreign exchange gains
|
|
|
11
|
|
|
|
5
|
|
|
|
17
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|
|
|
133
|
%
|
|
|
-35
|
%
|
Gain (loss) on bank
investment securities
|
|
|
12
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|
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|
(9)
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|
|
4
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|
|
—
|
|
|
|
—
|
|
Other revenues from
operations
|
|
|
135
|
|
|
|
127
|
|
|
|
111
|
|
|
|
6
|
%
|
|
|
21
|
%
|
Total
|
|
$
|
501
|
|
|
$
|
459
|
|
|
$
|
481
|
|
|
|
9
|
%
|
|
|
4
|
%
|
Noninterest expense aggregated $894
million in the first quarter of 2019, $933 million in the year-earlier quarter and
$802 million in the fourth 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 $889 million in the recent quarter, $927 million in the first quarter of 2018 and
$797 million in the final 2018
quarter. The decrease in noninterest expense from the first quarter
of 2018 was largely attributable to lower accruals for legal
matters and FDIC assessments offset, in part, by higher costs for
salaries and employee benefits. The higher noninterest expenses in
the recent quarter as compared with the fourth quarter of 2018
reflected seasonally higher stock-based compensation and employee
benefits expenses and the addition to the reserve for legal matters
that were partially offset by lower charitable contributions.
Noninterest
Expense
|
|
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|
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|
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|
|
|
|
|
|
|
|
|
Change 1Q19
vs.
|
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($ in
millions)
|
|
1Q19
|
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|
1Q18
|
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|
4Q18
|
|
|
1Q18
|
|
|
4Q18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Salaries and employee
benefits
|
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$
|
499
|
|
|
$
|
463
|
|
|
$
|
439
|
|
|
|
8
|
%
|
|
|
14
|
%
|
Equipment and net
occupancy
|
|
|
79
|
|
|
|
75
|
|
|
|
74
|
|
|
|
6
|
%
|
|
|
8
|
%
|
Outside data
processing and software
|
|
|
52
|
|
|
|
49
|
|
|
|
50
|
|
|
|
8
|
%
|
|
|
4
|
%
|
FDIC
assessments
|
|
|
10
|
|
|
|
20
|
|
|
|
10
|
|
|
|
-54
|
%
|
|
|
-4
|
%
|
Advertising and
marketing
|
|
|
20
|
|
|
|
16
|
|
|
|
26
|
|
|
|
25
|
%
|
|
|
-22
|
%
|
Printing, postage and
supplies
|
|
|
10
|
|
|
|
9
|
|
|
|
9
|
|
|
|
6
|
%
|
|
|
12
|
%
|
Amortization of core
deposit and other intangible assets
|
|
|
5
|
|
|
|
7
|
|
|
|
5
|
|
|
|
-24
|
%
|
|
|
-6
|
%
|
Other costs of
operations
|
|
|
219
|
|
|
|
294
|
|
|
|
189
|
|
|
|
-26
|
%
|
|
|
15
|
%
|
Total
|
|
$
|
894
|
|
|
$
|
933
|
|
|
$
|
802
|
|
|
|
-4
|
%
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 57.6% in
the first quarter of 2019, 64.0% in the year-earlier quarter and
51.7% in the final three months of 2018.
Balance Sheet. M&T had total assets of $120.0 billion at March 31, 2019, compared
with $118.6 billion and $120.1 billion at March 31, 2018 and
December 31, 2018, respectively. Loans and leases, net of
unearned discount, were $88.6 billion
at March 31, 2019, $87.7 billion
at March 31, 2018 and $88.5
billion at December 31, 2018. Total deposits were
$90.5 billion at the recent
quarter-end, compared with $90.9
billion at March 31, 2018 and $90.2 billion at December 31, 2018.
Total shareholders' equity was $15.6
billion at March 31, 2019 and $15.7 billion a year earlier, representing 12.99%
and 13.24%, respectively, of total assets. Total shareholders'
equity was $15.5 billion, or 12.87%
of total assets at December 31, 2018. Common shareholders'
equity was $14.4 billion, or
$105.04 per share, at March 31,
2019, compared with $14.5 billion, or
$98.60 per share, a year-earlier and
$14.2 billion, or $102.69 per share, at December 31,
2018. Tangible equity per common share was $71.19 at March 31, 2019, compared with
$66.99 at March 31, 2018 and
$69.28 at December 31, 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 10.05% at March 31, 2019.
In accordance with its capital plan, M&T repurchased
2,150,000 shares of its common stock during the recent quarter at
an average cost per share of $170.06,
for a total cost of $366 million.
Conference Call. Investors will have an opportunity to
listen to M&T's conference call to discuss first 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 #2869493. 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 Monday, April 22,
2019 by calling (800) 585-8367, or (404) 537-3406 for
international participants, and by making reference to ID
#2869493. 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
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
|
|
|
Amounts in thousands,
except per share
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
482,742
|
|
|
|
352,610
|
|
|
|
37
|
%
|
|
Net income available
to common shareholders
|
|
|
462,086
|
|
|
|
332,749
|
|
|
|
39
|
%
|
|
Per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
|
$
|
3.35
|
|
|
|
2.24
|
|
|
|
50
|
%
|
|
Diluted
earnings
|
|
|
3.35
|
|
|
|
2.23
|
|
|
|
50
|
%
|
|
Cash
dividends
|
|
$
|
1.00
|
|
|
|
.75
|
|
|
|
33
|
%
|
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - diluted
(1)
|
|
|
137,920
|
|
|
|
148,905
|
|
|
|
-7
|
%
|
|
Period end
(2)
|
|
|
136,637
|
|
|
|
146,799
|
|
|
|
-7
|
%
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
|
1.68
|
%
|
|
|
1.22
|
%
|
|
|
|
|
|
Average common
shareholders' equity
|
|
|
13.14
|
%
|
|
|
9.15
|
%
|
|
|
|
|
|
Taxable-equivalent
net interest income
|
|
$
|
1,056,027
|
|
|
|
980,326
|
|
|
|
8
|
%
|
|
Yield on average
earning assets
|
|
|
4.71
|
%
|
|
|
4.11
|
%
|
|
|
|
|
|
Cost of
interest-bearing liabilities
|
|
|
1.04
|
%
|
|
|
.64
|
%
|
|
|
|
|
|
Net interest
spread
|
|
|
3.67
|
%
|
|
|
3.47
|
%
|
|
|
|
|
|
Contribution of
interest-free funds
|
|
|
.37
|
%
|
|
|
.24
|
%
|
|
|
|
|
|
Net interest
margin
|
|
|
4.04
|
%
|
|
|
3.71
|
%
|
|
|
|
|
|
Net charge-offs to
average total net loans (annualized)
|
|
|
.10
|
%
|
|
|
.19
|
%
|
|
|
|
|
|
Net operating
results (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
$
|
486,440
|
|
|
|
357,498
|
|
|
|
36
|
%
|
|
Diluted net operating
earnings per common share
|
|
|
3.38
|
|
|
|
2.26
|
|
|
|
50
|
%
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
assets
|
|
|
1.76
|
%
|
|
|
1.28
|
%
|
|
|
|
|
|
Average tangible
common equity
|
|
|
19.56
|
%
|
|
|
13.51
|
%
|
|
|
|
|
|
Efficiency
ratio
|
|
|
57.56
|
%
|
|
|
63.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
March 31
|
|
|
|
|
Loan
quality
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
Nonaccrual
loans
|
|
$
|
881,611
|
|
|
|
864,671
|
|
|
|
2
|
%
|
|
Real estate and other
foreclosed assets
|
|
|
81,335
|
|
|
|
101,514
|
|
|
|
-20
|
%
|
|
Total nonperforming
assets
|
|
$
|
962,946
|
|
|
|
966,185
|
|
|
|
—
|
|
|
Accruing loans past
due 90 days or more (4)
|
|
$
|
244,257
|
|
|
|
235,325
|
|
|
|
4
|
%
|
|
Government guaranteed
loans included in totals above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
35,481
|
|
|
|
36,618
|
|
|
|
-3
|
%
|
|
Accruing loans past
due 90 days or more
|
|
|
194,510
|
|
|
|
223,611
|
|
|
|
-13
|
%
|
|
Renegotiated
loans
|
|
$
|
267,952
|
|
|
|
226,829
|
|
|
|
18
|
%
|
|
Accruing loans
acquired at a discount past due 90 days or more (5)
|
|
$
|
43,995
|
|
|
|
49,349
|
|
|
|
-11
|
%
|
|
Purchased impaired
loans (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding customer
balance
|
|
$
|
495,163
|
|
|
|
643,124
|
|
|
|
-23
|
%
|
|
Carrying
amount
|
|
|
278,783
|
|
|
|
378,000
|
|
|
|
-26
|
%
|
|
Nonaccrual loans to
total net loans
|
|
|
.99
|
%
|
|
|
.99
|
%
|
|
|
|
|
|
Allowance for credit
losses to total loans
|
|
|
1.15
|
%
|
|
|
1.16
|
%
|
|
|
|
|
|
|
|
(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
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
Amounts in thousands,
except per share
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
482,742
|
|
|
|
546,219
|
|
|
|
526,091
|
|
|
|
493,160
|
|
|
|
352,610
|
|
Net income available
to common shareholders
|
|
|
462,086
|
|
|
|
525,328
|
|
|
|
505,365
|
|
|
|
472,600
|
|
|
|
332,749
|
|
Per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
|
$
|
3.35
|
|
|
|
3.76
|
|
|
|
3.54
|
|
|
|
3.26
|
|
|
|
2.24
|
|
Diluted
earnings
|
|
|
3.35
|
|
|
|
3.76
|
|
|
|
3.53
|
|
|
|
3.26
|
|
|
|
2.23
|
|
Cash
dividends
|
|
$
|
1.00
|
|
|
|
1.00
|
|
|
|
1.00
|
|
|
|
.80
|
|
|
|
.75
|
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average - diluted
(1)
|
|
|
137,920
|
|
|
|
139,838
|
|
|
|
142,976
|
|
|
|
144,998
|
|
|
|
148,905
|
|
Period end
(2)
|
|
|
136,637
|
|
|
|
138,534
|
|
|
|
141,479
|
|
|
|
144,261
|
|
|
|
146,799
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
|
1.68
|
%
|
|
|
1.84
|
%
|
|
|
1.80
|
%
|
|
|
1.70
|
%
|
|
|
1.22
|
%
|
Average common
shareholders' equity
|
|
|
13.14
|
%
|
|
|
14.80
|
%
|
|
|
14.08
|
%
|
|
|
13.32
|
%
|
|
|
9.15
|
%
|
Taxable-equivalent
net interest income
|
|
$
|
1,056,027
|
|
|
|
1,064,918
|
|
|
|
1,034,771
|
|
|
|
1,014,184
|
|
|
|
980,326
|
|
Yield on average
earning assets
|
|
|
4.71
|
%
|
|
|
4.51
|
%
|
|
|
4.40
|
%
|
|
|
4.28
|
%
|
|
|
4.11
|
%
|
Cost of
interest-bearing liabilities
|
|
|
1.04
|
%
|
|
|
.94
|
%
|
|
|
.82
|
%
|
|
|
.71
|
%
|
|
|
.64
|
%
|
Net interest
spread
|
|
|
3.67
|
%
|
|
|
3.57
|
%
|
|
|
3.58
|
%
|
|
|
3.57
|
%
|
|
|
3.47
|
%
|
Contribution of
interest-free funds
|
|
|
.37
|
%
|
|
|
.35
|
%
|
|
|
.30
|
%
|
|
|
.26
|
%
|
|
|
.24
|
%
|
Net interest
margin
|
|
|
4.04
|
%
|
|
|
3.92
|
%
|
|
|
3.88
|
%
|
|
|
3.83
|
%
|
|
|
3.71
|
%
|
Net charge-offs to
average total net loans (annualized)
|
|
|
.10
|
%
|
|
|
.17
|
%
|
|
|
.07
|
%
|
|
|
.16
|
%
|
|
|
.19
|
%
|
Net operating
results (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
$
|
486,440
|
|
|
|
550,169
|
|
|
|
530,619
|
|
|
|
497,869
|
|
|
|
357,498
|
|
Diluted net operating
earnings per common share
|
|
|
3.38
|
|
|
|
3.79
|
|
|
|
3.56
|
|
|
|
3.29
|
|
|
|
2.26
|
|
Return on
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
assets
|
|
|
1.76
|
%
|
|
|
1.93
|
%
|
|
|
1.89
|
%
|
|
|
1.79
|
%
|
|
|
1.28
|
%
|
Average tangible
common equity
|
|
|
19.56
|
%
|
|
|
22.16
|
%
|
|
|
21.00
|
%
|
|
|
19.91
|
%
|
|
|
13.51
|
%
|
Efficiency
ratio
|
|
|
57.56
|
%
|
|
|
51.70
|
%
|
|
|
51.41
|
%
|
|
|
52.42
|
%
|
|
|
63.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
Loan
quality
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Nonaccrual
loans
|
|
$
|
881,611
|
|
|
|
893,608
|
|
|
|
870,832
|
|
|
|
819,984
|
|
|
|
864,671
|
|
Real estate and other
foreclosed assets
|
|
|
81,335
|
|
|
|
78,375
|
|
|
|
87,333
|
|
|
|
98,062
|
|
|
|
101,514
|
|
Total nonperforming
assets
|
|
$
|
962,946
|
|
|
|
971,983
|
|
|
|
958,165
|
|
|
|
918,046
|
|
|
|
966,185
|
|
Accruing loans past
due 90 days or more (4)
|
|
$
|
244,257
|
|
|
|
222,527
|
|
|
|
254,360
|
|
|
|
223,026
|
|
|
|
235,325
|
|
Government guaranteed
loans included in totals above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
35,481
|
|
|
|
34,667
|
|
|
|
33,570
|
|
|
|
34,870
|
|
|
|
36,618
|
|
Accruing loans past
due 90 days or more
|
|
|
194,510
|
|
|
|
192,443
|
|
|
|
195,450
|
|
|
|
202,394
|
|
|
|
223,611
|
|
Renegotiated
loans
|
|
$
|
267,952
|
|
|
|
245,367
|
|
|
|
242,892
|
|
|
|
242,528
|
|
|
|
226,829
|
|
Accruing loans
acquired at a discount past due 90 days or
more (5)
|
|
$
|
43,995
|
|
|
|
39,750
|
|
|
|
44,223
|
|
|
|
47,405
|
|
|
|
49,349
|
|
Purchased impaired
loans (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding customer
balance
|
|
$
|
495,163
|
|
|
|
529,520
|
|
|
|
572,979
|
|
|
|
606,683
|
|
|
|
643,124
|
|
Carrying
amount
|
|
|
278,783
|
|
|
|
303,305
|
|
|
|
325,980
|
|
|
|
352,465
|
|
|
|
378,000
|
|
Nonaccrual loans to
total net loans
|
|
|
.99
|
%
|
|
|
1.01
|
%
|
|
|
1.00
|
%
|
|
|
.93
|
%
|
|
|
.99
|
%
|
Allowance for credit
losses to total loans
|
|
|
1.15
|
%
|
|
|
1.15
|
%
|
|
|
1.18
|
%
|
|
|
1.16
|
%
|
|
|
1.16
|
%
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
|
|
|
Dollars in
thousands
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
Interest
income
|
|
$
|
1,226,309
|
|
|
|
1,082,150
|
|
|
|
13
|
%
|
|
Interest
expense
|
|
|
176,249
|
|
|
|
106,633
|
|
|
|
65
|
|
|
Net interest
income
|
|
|
1,050,060
|
|
|
|
975,517
|
|
|
|
8
|
|
|
Provision for credit
losses
|
|
|
22,000
|
|
|
|
43,000
|
|
|
|
-49
|
|
|
Net interest income
after provision for credit losses
|
|
|
1,028,060
|
|
|
|
932,517
|
|
|
|
10
|
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
|
95,311
|
|
|
|
87,306
|
|
|
|
9
|
|
|
Service charges on
deposit accounts
|
|
|
103,112
|
|
|
|
105,115
|
|
|
|
-2
|
|
|
Trust
income
|
|
|
132,786
|
|
|
|
131,375
|
|
|
|
1
|
|
|
Brokerage services
income
|
|
|
12,476
|
|
|
|
13,392
|
|
|
|
-7
|
|
|
Trading account and
foreign exchange gains
|
|
|
10,802
|
|
|
|
4,637
|
|
|
|
133
|
|
|
Gain (loss) on bank
investment securities
|
|
|
11,841
|
|
|
|
(9,431)
|
|
|
|
—
|
|
|
Other revenues from
operations
|
|
|
134,437
|
|
|
|
126,302
|
|
|
|
6
|
|
|
Total other
income
|
|
|
500,765
|
|
|
|
458,696
|
|
|
|
9
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
499,200
|
|
|
|
463,428
|
|
|
|
8
|
|
|
Equipment and net
occupancy
|
|
|
79,347
|
|
|
|
74,797
|
|
|
|
6
|
|
|
Outside data
processing and software
|
|
|
52,417
|
|
|
|
48,429
|
|
|
|
8
|
|
|
FDIC
assessments
|
|
|
9,426
|
|
|
|
20,280
|
|
|
|
-54
|
|
|
Advertising and
marketing
|
|
|
20,275
|
|
|
|
16,248
|
|
|
|
25
|
|
|
Printing, postage and
supplies
|
|
|
9,855
|
|
|
|
9,319
|
|
|
|
6
|
|
|
Amortization of core
deposit and other
intangible assets
|
|
|
5,020
|
|
|
|
6,632
|
|
|
|
-24
|
|
|
Other costs of
operations
|
|
|
218,808
|
|
|
|
294,211
|
|
|
|
-26
|
|
|
Total other
expense
|
|
|
894,348
|
|
|
|
933,344
|
|
|
|
-4
|
|
|
Income before income
taxes
|
|
|
634,477
|
|
|
|
457,869
|
|
|
|
39
|
|
|
Applicable income
taxes
|
|
|
151,735
|
|
|
|
105,259
|
|
|
|
44
|
|
|
Net income
|
|
$
|
482,742
|
|
|
|
352,610
|
|
|
|
37
|
%
|
|
Condensed
Consolidated Statement of Income, Five Quarter Trend
|
|
|
|
Three months
ended
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
Dollars in
thousands
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Interest
income
|
|
$
|
1,226,309
|
|
|
|
1,220,281
|
|
|
|
1,167,375
|
|
|
|
1,128,905
|
|
|
|
1,082,150
|
|
Interest
expense
|
|
|
176,249
|
|
|
|
161,321
|
|
|
|
138,337
|
|
|
|
120,118
|
|
|
|
106,633
|
|
Net interest
income
|
|
|
1,050,060
|
|
|
|
1,058,960
|
|
|
|
1,029,038
|
|
|
|
1,008,787
|
|
|
|
975,517
|
|
Provision for credit
losses
|
|
|
22,000
|
|
|
|
38,000
|
|
|
|
16,000
|
|
|
|
35,000
|
|
|
|
43,000
|
|
Net interest income
after provision for credit losses
|
|
|
1,028,060
|
|
|
|
1,020,960
|
|
|
|
1,013,038
|
|
|
|
973,787
|
|
|
|
932,517
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
revenues
|
|
|
95,311
|
|
|
|
92,229
|
|
|
|
88,408
|
|
|
|
92,499
|
|
|
|
87,306
|
|
Service charges on
deposit accounts
|
|
|
103,112
|
|
|
|
108,791
|
|
|
|
108,647
|
|
|
|
106,784
|
|
|
|
105,115
|
|
Trust
income
|
|
|
132,786
|
|
|
|
135,024
|
|
|
|
133,545
|
|
|
|
137,641
|
|
|
|
131,375
|
|
Brokerage services
income
|
|
|
12,476
|
|
|
|
12,781
|
|
|
|
12,267
|
|
|
|
12,629
|
|
|
|
13,392
|
|
Trading account and
foreign exchange gains
|
|
|
10,802
|
|
|
|
16,582
|
|
|
|
6,073
|
|
|
|
5,255
|
|
|
|
4,637
|
|
Gain (loss) on bank
investment securities
|
|
|
11,841
|
|
|
|
4,219
|
|
|
|
(3,415)
|
|
|
|
2,326
|
|
|
|
(9,431)
|
|
Other revenues from
operations
|
|
|
134,437
|
|
|
|
110,970
|
|
|
|
113,769
|
|
|
|
100,280
|
|
|
|
126,302
|
|
Total other
income
|
|
|
500,765
|
|
|
|
480,596
|
|
|
|
459,294
|
|
|
|
457,414
|
|
|
|
458,696
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
499,200
|
|
|
|
438,928
|
|
|
|
431,371
|
|
|
|
418,537
|
|
|
|
463,428
|
|
Equipment and net
occupancy
|
|
|
79,347
|
|
|
|
73,519
|
|
|
|
77,481
|
|
|
|
73,031
|
|
|
|
74,797
|
|
Outside data
processing and software
|
|
|
52,417
|
|
|
|
50,206
|
|
|
|
50,678
|
|
|
|
49,712
|
|
|
|
48,429
|
|
FDIC
assessments
|
|
|
9,426
|
|
|
|
9,837
|
|
|
|
18,849
|
|
|
|
19,560
|
|
|
|
20,280
|
|
Advertising and
marketing
|
|
|
20,275
|
|
|
|
25,910
|
|
|
|
21,784
|
|
|
|
21,768
|
|
|
|
16,248
|
|
Printing, postage and
supplies
|
|
|
9,855
|
|
|
|
8,777
|
|
|
|
8,843
|
|
|
|
8,719
|
|
|
|
9,319
|
|
Amortization of core
deposit and other
intangible assets
|
|
|
5,020
|
|
|
|
5,359
|
|
|
|
6,143
|
|
|
|
6,388
|
|
|
|
6,632
|
|
Other costs of
operations
|
|
|
218,808
|
|
|
|
189,626
|
|
|
|
160,830
|
|
|
|
178,862
|
|
|
|
294,211
|
|
Total other
expense
|
|
|
894,348
|
|
|
|
802,162
|
|
|
|
775,979
|
|
|
|
776,577
|
|
|
|
933,344
|
|
Income before income
taxes
|
|
|
634,477
|
|
|
|
699,394
|
|
|
|
696,353
|
|
|
|
654,624
|
|
|
|
457,869
|
|
Applicable income
taxes
|
|
|
151,735
|
|
|
|
153,175
|
|
|
|
170,262
|
|
|
|
161,464
|
|
|
|
105,259
|
|
Net income
|
|
$
|
482,742
|
|
|
|
546,219
|
|
|
|
526,091
|
|
|
|
493,160
|
|
|
|
352,610
|
|
Condensed
Consolidated Balance Sheet
|
|
|
|
March 31
|
|
|
|
|
|
|
Dollars in
thousands
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,267,260
|
|
|
|
1,291,664
|
|
|
|
-2
|
%
|
|
Interest-bearing
deposits at banks
|
|
|
7,602,897
|
|
|
|
6,135,434
|
|
|
|
24
|
|
|
Federal funds
sold
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
Trading
account
|
|
|
276,322
|
|
|
|
141,134
|
|
|
|
96
|
|
|
Investment
securities
|
|
|
12,536,840
|
|
|
|
14,066,564
|
|
|
|
-11
|
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
23,090,204
|
|
|
|
21,697,522
|
|
|
|
6
|
|
|
Real estate -
commercial
|
|
|
34,690,930
|
|
|
|
33,753,506
|
|
|
|
3
|
|
|
Real estate -
consumer
|
|
|
16,769,933
|
|
|
|
18,960,946
|
|
|
|
-12
|
|
|
Consumer
|
|
|
14,088,816
|
|
|
|
13,298,775
|
|
|
|
6
|
|
|
Total loans and
leases, net of unearned discount
|
|
|
88,639,883
|
|
|
|
87,710,749
|
|
|
|
1
|
|
|
Less: allowance for
credit losses
|
|
|
1,019,337
|
|
|
|
1,019,671
|
|
|
|
—
|
|
|
Net loans and
leases
|
|
|
87,620,546
|
|
|
|
86,691,078
|
|
|
|
1
|
|
|
Goodwill
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
—
|
|
|
Core deposit and
other intangible assets
|
|
|
43,947
|
|
|
|
64,957
|
|
|
|
-32
|
|
|
Other
assets
|
|
|
6,084,281
|
|
|
|
5,637,881
|
|
|
|
8
|
|
|
Total
assets
|
|
$
|
120,025,205
|
|
|
|
118,622,824
|
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
29,966,753
|
|
|
|
31,817,516
|
|
|
|
-6
|
%
|
|
Interest-bearing
deposits
|
|
|
59,433,806
|
|
|
|
58,851,050
|
|
|
|
1
|
|
|
Deposits at Cayman
Islands office
|
|
|
1,069,191
|
|
|
|
278,064
|
|
|
|
285
|
|
|
Total
deposits
|
|
|
90,469,750
|
|
|
|
90,946,630
|
|
|
|
-1
|
|
|
Short-term
borrowings
|
|
|
3,602,566
|
|
|
|
1,626,129
|
|
|
|
122
|
|
|
Accrued interest and
other liabilities
|
|
|
1,889,336
|
|
|
|
1,749,320
|
|
|
|
8
|
|
|
Long-term
borrowings
|
|
|
8,476,024
|
|
|
|
8,591,051
|
|
|
|
-1
|
|
|
Total
liabilities
|
|
|
104,437,676
|
|
|
|
102,913,130
|
|
|
|
1
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
—
|
|
|
Common
|
|
|
14,356,029
|
|
|
|
14,478,194
|
|
|
|
-1
|
|
|
Total shareholders'
equity
|
|
|
15,587,529
|
|
|
|
15,709,694
|
|
|
|
-1
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
120,025,205
|
|
|
|
118,622,824
|
|
|
|
1
|
%
|
|
Condensed
Consolidated Balance Sheet, Five Quarter Trend
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
Dollars in
thousands
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,267,260
|
|
|
|
1,605,439
|
|
|
|
1,311,611
|
|
|
|
1,367,594
|
|
|
|
1,291,664
|
|
Interest-bearing
deposits at banks
|
|
|
7,602,897
|
|
|
|
8,105,197
|
|
|
|
6,523,746
|
|
|
|
6,669,985
|
|
|
|
6,135,434
|
|
Federal funds
sold
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,500
|
|
|
|
1,000
|
|
Trading
account
|
|
|
276,322
|
|
|
|
185,584
|
|
|
|
125,038
|
|
|
|
148,303
|
|
|
|
141,134
|
|
Investment
securities
|
|
|
12,536,840
|
|
|
|
12,692,813
|
|
|
|
13,073,881
|
|
|
|
13,283,002
|
|
|
|
14,066,564
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
23,090,204
|
|
|
|
22,977,976
|
|
|
|
21,635,394
|
|
|
|
21,894,857
|
|
|
|
21,697,522
|
|
Real estate -
commercial
|
|
|
34,690,930
|
|
|
|
34,363,556
|
|
|
|
33,518,375
|
|
|
|
34,137,937
|
|
|
|
33,753,506
|
|
Real estate -
consumer
|
|
|
16,769,933
|
|
|
|
17,154,446
|
|
|
|
17,721,399
|
|
|
|
18,310,712
|
|
|
|
18,960,946
|
|
Consumer
|
|
|
14,088,816
|
|
|
|
13,970,499
|
|
|
|
13,805,317
|
|
|
|
13,453,944
|
|
|
|
13,298,775
|
|
Total loans and leases, net of unearned discount
|
|
|
88,639,883
|
|
|
|
88,466,477
|
|
|
|
86,680,485
|
|
|
|
87,797,450
|
|
|
|
87,710,749
|
|
Less: allowance for
credit losses
|
|
|
1,019,337
|
|
|
|
1,019,444
|
|
|
|
1,019,488
|
|
|
|
1,019,248
|
|
|
|
1,019,671
|
|
Net loans and
leases
|
|
|
87,620,546
|
|
|
|
87,447,033
|
|
|
|
85,660,997
|
|
|
|
86,778,202
|
|
|
|
86,691,078
|
|
Goodwill
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
|
|
4,593,112
|
|
Core deposit and
other intangible assets
|
|
|
43,947
|
|
|
|
47,067
|
|
|
|
52,426
|
|
|
|
58,569
|
|
|
|
64,957
|
|
Other
assets
|
|
|
6,084,281
|
|
|
|
5,421,158
|
|
|
|
5,486,826
|
|
|
|
5,525,786
|
|
|
|
5,637,881
|
|
Total
assets
|
|
$
|
120,025,205
|
|
|
|
120,097,403
|
|
|
|
116,827,637
|
|
|
|
118,426,053
|
|
|
|
118,622,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
29,966,753
|
|
|
|
32,256,668
|
|
|
|
31,773,560
|
|
|
|
32,086,191
|
|
|
|
31,817,516
|
|
Interest-bearing
deposits
|
|
|
59,433,806
|
|
|
|
57,087,998
|
|
|
|
56,919,549
|
|
|
|
56,924,970
|
|
|
|
58,851,050
|
|
Deposits at Cayman
Islands office
|
|
|
1,069,191
|
|
|
|
811,906
|
|
|
|
447,287
|
|
|
|
261,427
|
|
|
|
278,064
|
|
Total
deposits
|
|
|
90,469,750
|
|
|
|
90,156,572
|
|
|
|
89,140,396
|
|
|
|
89,272,588
|
|
|
|
90,946,630
|
|
Short-term
borrowings
|
|
|
3,602,566
|
|
|
|
4,398,378
|
|
|
|
1,310,110
|
|
|
|
3,239,416
|
|
|
|
1,626,129
|
|
Accrued interest and
other liabilities
|
|
|
1,889,336
|
|
|
|
1,637,348
|
|
|
|
1,800,778
|
|
|
|
1,953,848
|
|
|
|
1,749,320
|
|
Long-term
borrowings
|
|
|
8,476,024
|
|
|
|
8,444,914
|
|
|
|
9,140,268
|
|
|
|
8,382,316
|
|
|
|
8,591,051
|
|
Total
liabilities
|
|
|
104,437,676
|
|
|
|
104,637,212
|
|
|
|
101,391,552
|
|
|
|
102,848,168
|
|
|
|
102,913,130
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
|
|
1,231,500
|
|
Common
|
|
|
14,356,029
|
|
|
|
14,228,691
|
|
|
|
14,204,585
|
|
|
|
14,346,385
|
|
|
|
14,478,194
|
|
Total shareholders'
equity
|
|
|
15,587,529
|
|
|
|
15,460,191
|
|
|
|
15,436,085
|
|
|
|
15,577,885
|
|
|
|
15,709,694
|
|
Total liabilities and
shareholders' equity
|
|
$
|
120,025,205
|
|
|
|
120,097,403
|
|
|
|
116,827,637
|
|
|
|
118,426,053
|
|
|
|
118,622,824
|
|
Condensed
Consolidated Average Balance Sheet and Annualized
Taxable-equivalent Rates
|
|
|
|
Three months
ended
|
|
|
Change in
balance
|
|
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31, 2019
from
|
|
|
|
Dollars in
millions
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
|
Balance
|
|
|
Rate
|
|
|
Balance
|
|
|
Rate
|
|
|
Balance
|
|
|
Rate
|
|
|
2018
|
|
|
2018
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits at banks
|
|
$
|
4,605
|
|
|
|
2.41
|
%
|
|
|
4,941
|
|
|
|
1.53
|
%
|
|
|
7,394
|
|
|
|
2.23
|
%
|
|
|
-7
|
%
|
|
|
-38
|
%
|
|
|
Federal funds
sold
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
1.85
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Trading
account
|
|
|
65
|
|
|
|
3.40
|
|
|
|
54
|
|
|
|
3.00
|
|
|
|
56
|
|
|
|
2.65
|
|
|
|
21
|
|
|
|
17
|
|
|
|
Investment
securities
|
|
|
12,949
|
|
|
|
2.52
|
|
|
|
14,467
|
|
|
|
2.33
|
|
|
|
13,034
|
|
|
|
2.41
|
|
|
|
-10
|
|
|
|
-1
|
|
|
|
Loans and leases, net
of unearned discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
etc.
|
|
|
23,010
|
|
|
|
5.07
|
|
|
|
21,547
|
|
|
|
4.28
|
|
|
|
22,376
|
|
|
|
4.92
|
|
|
|
7
|
|
|
|
3
|
|
|
|
Real estate -
commercial
|
|
|
34,524
|
|
|
|
5.34
|
|
|
|
33,652
|
|
|
|
4.73
|
|
|
|
33,586
|
|
|
|
5.27
|
|
|
|
3
|
|
|
|
3
|
|
|
|
Real estate -
consumer
|
|
|
16,939
|
|
|
|
4.37
|
|
|
|
19,274
|
|
|
|
4.06
|
|
|
|
17,421
|
|
|
|
4.31
|
|
|
|
-12
|
|
|
|
-3
|
|
|
|
Consumer
|
|
|
14,004
|
|
|
|
5.51
|
|
|
|
13,293
|
|
|
|
5.00
|
|
|
|
13,918
|
|
|
|
5.35
|
|
|
|
5
|
|
|
|
1
|
|
|
|
Total loans and
leases, net
|
|
|
88,477
|
|
|
|
5.15
|
|
|
|
87,766
|
|
|
|
4.55
|
|
|
|
87,301
|
|
|
|
5.02
|
|
|
|
1
|
|
|
|
1
|
|
|
|
Total earning
assets
|
|
|
106,096
|
|
|
|
4.71
|
|
|
|
107,231
|
|
|
|
4.11
|
|
|
|
107,785
|
|
|
|
4.51
|
|
|
|
-1
|
|
|
|
-2
|
|
|
|
Goodwill
|
|
|
4,593
|
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
|
4,593
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Core deposit and other intangible
assets
|
|
|
45
|
|
|
|
|
|
|
|
68
|
|
|
|
|
|
|
|
50
|
|
|
|
|
|
|
|
-34
|
|
|
|
-9
|
|
|
|
Other
assets
|
|
|
6,105
|
|
|
|
|
|
|
|
5,792
|
|
|
|
|
|
|
|
5,371
|
|
|
|
|
|
|
|
5
|
|
|
|
14
|
|
|
|
Total
assets
|
|
$
|
116,839
|
|
|
|
|
|
|
|
117,684
|
|
|
|
|
|
|
|
117,799
|
|
|
|
|
|
|
|
-1
|
%
|
|
|
-1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and
interest-checking deposits
|
|
$
|
52,095
|
|
|
|
.59
|
|
|
|
52,504
|
|
|
|
.31
|
|
|
|
51,820
|
|
|
|
.54
|
|
|
|
-1
|
%
|
|
|
1
|
%
|
|
|
Time
deposits
|
|
|
6,351
|
|
|
|
1.35
|
|
|
|
6,320
|
|
|
|
.70
|
|
|
|
5,960
|
|
|
|
1.07
|
|
|
|
—
|
|
|
|
7
|
|
|
|
Deposits at Cayman Islands
office
|
|
|
972
|
|
|
|
1.98
|
|
|
|
248
|
|
|
|
.62
|
|
|
|
693
|
|
|
|
1.81
|
|
|
|
293
|
|
|
|
40
|
|
|
|
Total interest-bearing deposits
|
|
|
59,418
|
|
|
|
.70
|
|
|
|
59,072
|
|
|
|
.36
|
|
|
|
58,473
|
|
|
|
.61
|
|
|
|
1
|
|
|
|
2
|
|
|
|
Short-term
borrowings
|
|
|
1,091
|
|
|
|
2.49
|
|
|
|
280
|
|
|
|
1.28
|
|
|
|
315
|
|
|
|
1.91
|
|
|
|
290
|
|
|
|
247
|
|
|
|
Long-term
borrowings
|
|
|
8,494
|
|
|
|
3.23
|
|
|
|
8,606
|
|
|
|
2.54
|
|
|
|
9,239
|
|
|
|
3.03
|
|
|
|
-1
|
|
|
|
-8
|
|
|
|
Total
interest-bearing liabilities
|
|
|
69,003
|
|
|
|
1.04
|
|
|
|
67,958
|
|
|
|
.64
|
|
|
|
68,027
|
|
|
|
.94
|
|
|
|
2
|
|
|
|
1
|
|
|
|
Noninterest-bearing
deposits
|
|
|
30,315
|
|
|
|
|
|
|
|
32,047
|
|
|
|
|
|
|
|
32,631
|
|
|
|
|
|
|
|
-5
|
|
|
|
-7
|
|
|
|
Other
liabilities
|
|
|
1,952
|
|
|
|
|
|
|
|
1,620
|
|
|
|
|
|
|
|
1,752
|
|
|
|
|
|
|
|
20
|
|
|
|
11
|
|
|
|
Total
liabilities
|
|
|
101,270
|
|
|
|
|
|
|
|
101,625
|
|
|
|
|
|
|
|
102,410
|
|
|
|
|
|
|
|
—
|
|
|
|
-1
|
|
|
|
Shareholders'
equity
|
|
|
15,569
|
|
|
|
|
|
|
|
16,059
|
|
|
|
|
|
|
|
15,389
|
|
|
|
|
|
|
|
-3
|
|
|
|
1
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
116,839
|
|
|
|
|
|
|
|
117,684
|
|
|
|
|
|
|
|
117,799
|
|
|
|
|
|
|
|
-1
|
%
|
|
|
-1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
|
|
3.67
|
|
|
|
|
|
|
|
3.47
|
|
|
|
|
|
|
|
3.57
|
|
|
|
|
|
|
|
|
|
|
|
Contribution of
interest-free funds
|
|
|
|
|
|
|
.37
|
|
|
|
|
|
|
|
.24
|
|
|
|
|
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
4.04
|
%
|
|
|
|
|
|
|
3.71
|
%
|
|
|
|
|
|
|
3.92
|
%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
|
|
|
|
Three months
ended
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Income statement
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
482,742
|
|
|
|
546,219
|
|
|
|
526,091
|
|
|
|
493,160
|
|
|
|
352,610
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
3,698
|
|
|
|
3,950
|
|
|
|
4,528
|
|
|
|
4,709
|
|
|
|
4,888
|
|
Net operating
income
|
|
$
|
486,440
|
|
|
|
550,169
|
|
|
|
530,619
|
|
|
|
497,869
|
|
|
|
357,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
3.35
|
|
|
|
3.76
|
|
|
|
3.53
|
|
|
|
3.26
|
|
|
|
2.23
|
|
Amortization of core
deposit and other intangible assets (1)
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.03
|
|
|
|
.03
|
|
Diluted net operating
earnings per common share
|
|
$
|
3.38
|
|
|
|
3.79
|
|
|
|
3.56
|
|
|
|
3.29
|
|
|
|
2.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
$
|
894,348
|
|
|
|
802,162
|
|
|
|
775,979
|
|
|
|
776,577
|
|
|
|
933,344
|
|
Amortization of core
deposit and other intangible assets
|
|
|
(5,020)
|
|
|
|
(5,359)
|
|
|
|
(6,143)
|
|
|
|
(6,388)
|
|
|
|
(6,632)
|
|
Noninterest operating
expense
|
|
$
|
889,328
|
|
|
|
796,803
|
|
|
|
769,836
|
|
|
|
770,189
|
|
|
|
926,712
|
|
Efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest operating
expense (numerator)
|
|
$
|
889,328
|
|
|
|
796,803
|
|
|
|
769,836
|
|
|
|
770,189
|
|
|
|
926,712
|
|
Taxable-equivalent
net interest income
|
|
|
1,056,027
|
|
|
|
1,064,918
|
|
|
|
1,034,771
|
|
|
|
1,014,184
|
|
|
|
980,326
|
|
Other
income
|
|
|
500,765
|
|
|
|
480,596
|
|
|
|
459,294
|
|
|
|
457,414
|
|
|
|
458,696
|
|
Less: Gain
(loss) on bank investment securities
|
|
|
11,841
|
|
|
|
4,219
|
|
|
|
(3,415)
|
|
|
|
2,326
|
|
|
|
(9,431)
|
|
Denominator
|
|
$
|
1,544,951
|
|
|
|
1,541,295
|
|
|
|
1,497,480
|
|
|
|
1,469,272
|
|
|
|
1,448,453
|
|
Efficiency
ratio
|
|
|
57.56
|
%
|
|
|
51.70
|
%
|
|
|
51.41
|
%
|
|
|
52.42
|
%
|
|
|
63.98
|
%
|
Balance sheet
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
116,839
|
|
|
|
117,799
|
|
|
|
115,997
|
|
|
|
116,413
|
|
|
|
117,684
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(45)
|
|
|
|
(50)
|
|
|
|
(55)
|
|
|
|
(62)
|
|
|
|
(68)
|
|
Deferred
taxes
|
|
|
12
|
|
|
|
13
|
|
|
|
14
|
|
|
|
17
|
|
|
|
18
|
|
Average tangible
assets
|
|
$
|
112,213
|
|
|
|
113,169
|
|
|
|
111,363
|
|
|
|
111,775
|
|
|
|
113,041
|
|
Average common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
equity
|
|
$
|
15,569
|
|
|
|
15,389
|
|
|
|
15,549
|
|
|
|
15,533
|
|
|
|
16,059
|
|
Preferred
stock
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
|
|
(1,232)
|
|
Average common
equity
|
|
|
14,337
|
|
|
|
14,157
|
|
|
|
14,317
|
|
|
|
14,301
|
|
|
|
14,827
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(45)
|
|
|
|
(50)
|
|
|
|
(55)
|
|
|
|
(62)
|
|
|
|
(68)
|
|
Deferred
taxes
|
|
|
12
|
|
|
|
13
|
|
|
|
14
|
|
|
|
17
|
|
|
|
18
|
|
Average tangible
common equity
|
|
$
|
9,711
|
|
|
|
9,527
|
|
|
|
9,683
|
|
|
|
9,663
|
|
|
|
10,184
|
|
At end of
quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
120,025
|
|
|
|
120,097
|
|
|
|
116,828
|
|
|
|
118,426
|
|
|
|
118,623
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(44)
|
|
|
|
(47)
|
|
|
|
(52)
|
|
|
|
(59)
|
|
|
|
(65)
|
|
Deferred
taxes
|
|
|
12
|
|
|
|
13
|
|
|
|
14
|
|
|
|
16
|
|
|
|
17
|
|
Total tangible
assets
|
|
$
|
115,400
|
|
|
|
115,470
|
|
|
|
112,197
|
|
|
|
113,790
|
|
|
|
113,982
|
|
Total common
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
|
15,588
|
|
|
|
15,460
|
|
|
|
15,436
|
|
|
|
15,578
|
|
|
|
15,710
|
|
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
|
|
|
14,353
|
|
|
|
14,225
|
|
|
|
14,201
|
|
|
|
14,343
|
|
|
|
14,475
|
|
Goodwill
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
|
|
(4,593)
|
|
Core deposit and
other intangible assets
|
|
|
(44)
|
|
|
|
(47)
|
|
|
|
(52)
|
|
|
|
(59)
|
|
|
|
(65)
|
|
Deferred
taxes
|
|
|
12
|
|
|
|
13
|
|
|
|
14
|
|
|
|
16
|
|
|
|
17
|
|
Total tangible common
equity
|
|
$
|
9,728
|
|
|
|
9,598
|
|
|
|
9,570
|
|
|
|
9,707
|
|
|
|
9,834
|
|
|
|
|
|
|
(1)
|
After any related tax
effect.
|
INVESTOR
CONTACT:
|
Donald J.
MacLeod
|
|
(716)
842-5138
|
MEDIA
CONTACT:
|
C. Michael
Zabel
|
|
(716)
842-5385
|
View original content to download
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SOURCE M&T Bank Corporation