Table of Contents
SECURITIES AND EXCHANGE COMMISSION
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 16-0968385 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
One M & T Plaza | ||
Buffalo, New York | 14203 | |
(Address of principal | (Zip Code) | |
executive offices) |
(Registrant’s telephone number, including area code)
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
Table of Contents of Information Required in Report | Page | |||||||
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EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
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September 30, | December 31, | |||||||||
Dollars in thousands, except per share | 2010 | 2009 | ||||||||
Assets | ||||||||||
Cash and due from banks | $ | 1,070,625 | 1,226,223 | |||||||
Interest-bearing deposits at banks | 401,624 | 133,335 | ||||||||
Federal funds sold | 18,700 | 20,119 | ||||||||
Agreements to resell securities | 425,000 | — | ||||||||
Trading account | 536,702 | 386,984 | ||||||||
Investment securities (includes pledged securities that can be sold or repledged of $1,807,027 at September 30, 2010; $1,797,701 at December 31, 2009) | ||||||||||
Available for sale (cost: $5,852,314 at September 30, 2010; $6,997,009 at December 31, 2009) | 5,783,496 | 6,704,378 | ||||||||
Held to maturity (fair value: $1,338,044 at September 30, 2010; $416,483 at December 31, 2009) | 1,425,717 | 567,607 | ||||||||
Other (fair value: $453,502 at September 30, 2010; $508,624 at December 31, 2009) | 453,502 | 508,624 | ||||||||
Total investment securities | 7,662,715 | 7,780,609 | ||||||||
Loans and leases | 51,129,133 | 52,306,457 | ||||||||
Unearned discount | (337,575 | ) | (369,771 | ) | ||||||
Allowance for credit losses | (894,720 | ) | (878,022 | ) | ||||||
Loans and leases, net | 49,896,838 | 51,058,664 | ||||||||
Premises and equipment | 421,352 | 435,845 | ||||||||
Goodwill | 3,524,625 | 3,524,625 | ||||||||
Core deposit and other intangible assets | 139,186 | 182,418 | ||||||||
Accrued interest and other assets | 4,149,470 | 4,131,577 | ||||||||
Total assets | $ | 68,246,837 | 68,880,399 | |||||||
Liabilities | ||||||||||
Noninterest-bearing deposits | $ | 14,665,603 | 13,794,636 | |||||||
NOW accounts | 1,251,452 | 1,396,471 | ||||||||
Savings deposits | 25,964,136 | 23,676,798 | ||||||||
Time deposits | 6,119,516 | 7,531,495 | ||||||||
Deposits at foreign office | 653,916 | 1,050,438 | ||||||||
Total deposits | 48,654,623 | 47,449,838 | ||||||||
Federal funds purchased and agreements to repurchase securities | 1,142,103 | 2,211,692 | ||||||||
Other short-term borrowings | 69,580 | 230,890 | ||||||||
Accrued interest and other liabilities | 1,157,250 | 995,056 | ||||||||
Long-term borrowings | 8,991,508 | 10,240,016 | ||||||||
Total liabilities | 60,015,064 | 61,127,492 | ||||||||
Stockholders’ equity | ||||||||||
Preferred stock, $1.00 par, 1,000,000 shares authorized, 778,000 shares issued and oustanding (liquidation preference $1,000 per share) | 737,979 | 730,235 | ||||||||
Common stock, $.50 par, 250,000,000 shares authorized, 120,396,611 shares issued | 60,198 | 60,198 | ||||||||
Common stock issuable, 70,925 shares at September 30, 2010; 75,170 shares at December 31, 2009 | 4,146 | 4,342 | ||||||||
Additional paid-in capital | 2,408,737 | 2,442,947 | ||||||||
Retained earnings | 5,319,198 | 5,076,884 | ||||||||
Accumulated other comprehensive income (loss), net | (192,554 | ) | (335,997 | ) | ||||||
Treasury stock — common, at cost -1,032,949 shares at September 30, 2010; 2,173,916 shares at December 31, 2009 | (105,931 | ) | (225,702 | ) | ||||||
Total stockholders’ equity | 8,231,773 | 7,752,907 | ||||||||
Total liabilities and stockholders’ equity | $ | 68,246,837 | 68,880,399 | |||||||
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
In thousands, except per share | 2010 | 2009 | 2010 | 2009 | ||||||||||||||
Interest income | ||||||||||||||||||
Loans and leases, including fees | $ | 603,199 | 599,859 | $ | 1,788,245 | 1,728,422 | ||||||||||||
Deposits at banks | 34 | 7 | 45 | 20 | ||||||||||||||
Federal funds sold | 9 | 17 | 29 | 56 | ||||||||||||||
Agreements to resell securities | 32 | — | 36 | 62 | ||||||||||||||
Trading account | 94 | 135 | 287 | 450 | ||||||||||||||
Investment securities | ||||||||||||||||||
Fully taxable | 80,043 | 97,963 | 250,922 | 297,563 | ||||||||||||||
Exempt from federal taxes | 2,489 | 2,612 | 7,506 | 5,955 | ||||||||||||||
Total interest income | 685,900 | 700,593 | 2,047,070 | 2,032,528 | ||||||||||||||
Interest expense | ||||||||||||||||||
NOW accounts | 219 | 288 | 638 | 861 | ||||||||||||||
Savings deposits | 21,453 | 22,076 | 63,366 | 90,360 | ||||||||||||||
Time deposits | 23,309 | 50,678 | 79,009 | 166,704 | ||||||||||||||
Deposits at foreign office | 315 | 481 | 1,016 | 2,038 | ||||||||||||||
Short-term borrowings | 760 | 1,764 | 2,373 | 6,127 | ||||||||||||||
Long-term borrowings | 69,976 | 77,651 | 207,239 | 269,409 | ||||||||||||||
Total interest expense | 116,032 | 152,938 | 353,641 | 535,499 | ||||||||||||||
Net interest income | 569,868 | 547,655 | 1,693,429 | 1,497,029 | ||||||||||||||
Provision for credit losses | 93,000 | 154,000 | 283,000 | 459,000 | ||||||||||||||
Net interest income after provision for credit losses | 476,868 | 393,655 | 1,410,429 | 1,038,029 | ||||||||||||||
Other income | ||||||||||||||||||
Mortgage banking revenues | 61,052 | 48,169 | 149,612 | 157,385 | ||||||||||||||
Service charges on deposit accounts | 117,733 | 128,502 | 367,004 | 342,010 | ||||||||||||||
Trust income | 30,485 | 31,586 | 91,582 | 98,908 | ||||||||||||||
Brokerage services income | 12,127 | 14,329 | 38,021 | 43,215 | ||||||||||||||
Trading account and foreign exchange gains | 6,035 | 7,478 | 14,531 | 16,456 | ||||||||||||||
Gain (loss) on bank investment securities | 1,440 | (56 | ) | 1,909 | 811 | |||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (16,486 | ) | (64,232 | ) | (67,052 | ) | (202,737 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (before taxes) | 6,954 | 17,199 | 8,338 | 98,736 | ||||||||||||||
Net OTTI losses recognized in earnings | (9,532 | ) | (47,033 | ) | (58,714 | ) | (104,001 | ) | ||||||||||
Equity in earnings of Bayview Lending Group LLC | (6,460 | ) | (10,912 | ) | (18,353 | ) | (15,263 | ) | ||||||||||
Other revenues from operations | 77,019 | 106,163 | 235,570 | 242,695 | ||||||||||||||
Total other income | 289,899 | 278,226 | 821,162 | 782,216 | ||||||||||||||
Other expense | ||||||||||||||||||
Salaries and employee benefits | 246,389 | 255,449 | 756,296 | 754,793 | ||||||||||||||
Equipment and net occupancy | 54,353 | 58,195 | 165,185 | 157,688 | ||||||||||||||
Printing, postage and supplies | 7,820 | 8,229 | 25,412 | 28,878 | ||||||||||||||
Amortization of core deposit and other intangible assets | 13,526 | 16,924 | 44,834 | 47,525 | ||||||||||||||
FDIC assessments | 18,039 | 21,124 | 60,995 | 76,617 | ||||||||||||||
Other costs of operations | 140,006 | 140,135 | 392,841 | 436,611 | ||||||||||||||
Total other expense | 480,133 | 500,056 | 1,445,563 | 1,502,112 | ||||||||||||||
Income before taxes | 286,634 | 171,825 | 786,028 | 318,133 | ||||||||||||||
Income taxes | 94,619 | 44,161 | 254,309 | 75,060 | ||||||||||||||
Net income | $ | 192,015 | 127,664 | $ | 531,719 | 243,073 | ||||||||||||
Net income available to common equity | $ | 179,306 | 115,143 | $ | 493,735 | 211,429 | ||||||||||||
Net income per common share | ||||||||||||||||||
Basic | $ | 1.49 | .97 | $ | 4.12 | 1.84 | ||||||||||||
Diluted | 1.48 | .97 | 4.10 | 1.84 | ||||||||||||||
Cash dividends per common share | $ | .70 | .70 | $ | 2.10 | 2.10 | ||||||||||||
Average common shares outstanding | ||||||||||||||||||
Basic | 118,320 | 117,370 | 118,048 | 113,701 | ||||||||||||||
Diluted | 119,155 | 117,547 | 118,766 | 113,800 |
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Nine months ended September 30 | ||||||||||
In thousands | 2010 | 2009 | ||||||||
Cash flows from operating activities | ||||||||||
Net income | $ | 531,719 | 243,073 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
Provision for credit losses | 283,000 | 459,000 | ||||||||
Depreciation and amortization of premises and equipment | 51,216 | 43,050 | ||||||||
Amortization of capitalized servicing rights | 42,917 | 46,997 | ||||||||
Amortization of core deposit and other intangible assets | 44,834 | 47,525 | ||||||||
Provision for deferred income taxes | 49,111 | 82,904 | ||||||||
Asset write-downs | 68,430 | 131,822 | ||||||||
Net gain on sales of assets | (3,006 | ) | (249 | ) | ||||||
Net change in accrued interest receivable, payable | 4,764 | (5,154 | ) | |||||||
Net change in other accrued income and expense | 119,728 | 34,206 | ||||||||
Net change in loans originated for sale | 67,172 | 8,144 | ||||||||
Net change in trading account assets and liabilities | (10,482 | ) | (15,797 | ) | ||||||
Net cash provided by operating activities | 1,249,403 | 1,075,521 | ||||||||
Cash flows from investing activities | ||||||||||
Proceeds from sales of investment securities | ||||||||||
Available for sale | 21,220 | 7,159 | ||||||||
Other | 62,331 | 115,336 | ||||||||
Proceeds from maturities of investment securities | ||||||||||
Available for sale | 1,097,531 | 1,803,946 | ||||||||
Held to maturity | 139,555 | 76,084 | ||||||||
Purchases of investment securities | ||||||||||
Available for sale | (414,992 | ) | (68,724 | ) | ||||||
Held to maturity | (993,162 | ) | (25,289 | ) | ||||||
Other | (7,209 | ) | (2,886 | ) | ||||||
Net (increase) decrease in agreements to resell securities | (425,000 | ) | 90,000 | |||||||
Net decrease in loans and leases | 1,087,784 | 513,519 | ||||||||
Net increase in interest-bearing deposits at banks | (268,289 | ) | (21,981 | ) | ||||||
Other investments, net | (41,093 | ) | (23,496 | ) | ||||||
Capital expenditures, net | (39,380 | ) | (27,664 | ) | ||||||
Acquisitions, net of cash acquired | ||||||||||
Banks and bank holding companies | — | 202,993 | ||||||||
Other, net | 34,411 | 40,776 | ||||||||
Net cash provided by investing activities | 253,707 | 2,679,773 | ||||||||
Cash flows from financing activities | ||||||||||
Net increase (decrease) in deposits | 1,217,511 | (1,125,110 | ) | |||||||
Net decrease in short-term borrowings | (1,230,890 | ) | (260,488 | ) | ||||||
Payments on long-term borrowings | (1,399,101 | ) | (2,301,894 | ) | ||||||
Dividends paid — common | (251,125 | ) | (242,551 | ) | ||||||
Dividends paid — preferred | (30,169 | ) | (21,890 | ) | ||||||
Other, net | 33,647 | 2,202 | ||||||||
Net cash used by financing activities | (1,660,127 | ) | (3,949,731 | ) | ||||||
Net decrease in cash and cash equivalents | (157,017 | ) | (194,437 | ) | ||||||
Cash and cash equivalents at beginning of period | 1,246,342 | 1,568,151 | ||||||||
Cash and cash equivalents at end of period | $ | 1,089,325 | 1,373,714 | |||||||
Supplemental disclosure of cash flow information | ||||||||||
Interest received during the period | $ | 2,072,464 | 2,042,092 | |||||||
Interest paid during the period | 360,289 | 525,657 | ||||||||
Income taxes paid (refunded) during the period | 214,903 | (8,157 | ) | |||||||
Supplemental schedule of noncash investing and financing activities | ||||||||||
Real estate acquired in settlement of loans | $ | 165,933 | 69,518 | |||||||
Increase (decrease) from consolidation of securitization trusts: | ||||||||||
Loans | 423,865 | — | ||||||||
Investment securities — available for sale | (360,471 | ) | — | |||||||
Long-term borrowings | 65,419 | — | ||||||||
Accrued interest and other | 2,025 | — | ||||||||
Securitization of residential mortgage loans allocated to: | ||||||||||
Available for sale investment securities | — | 140,942 | ||||||||
Capitalized servicing rights | — | 788 | ||||||||
Acquisitions: | ||||||||||
Fair value of: | ||||||||||
Assets acquired (noncash) | — | 6,581,433 | ||||||||
Liabilities assumed | — | 6,318,998 | ||||||||
Preferred stock issued | — | 155,779 | ||||||||
Common stock issued | — | 272,824 | ||||||||
Common stock options | — | 1,367 | ||||||||
Common stock warrants | — | 6,467 |
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Accumulated | ||||||||||||||||||||||||||||||||
other | ||||||||||||||||||||||||||||||||
Common | Additional | comprehensive | ||||||||||||||||||||||||||||||
Preferred | Common | stock | paid-in | Retained | income | Treasury | ||||||||||||||||||||||||||
In thousands, except per share | stock | stock | issuable | capital | earnings | (loss), net | stock | Total | ||||||||||||||||||||||||
2009 | ||||||||||||||||||||||||||||||||
Balance-January 1, 2009 | $ | 567,463 | 60,198 | 4,617 | 2,897,907 | 5,062,754 | (736,881 | ) | (1,071,327 | ) | 6,784,731 | |||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 243,073 | — | — | 243,073 | ||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | ||||||||||||||||||||||||||||||||
Unrealized gains on investment securities | — | — | — | — | — | 309,150 | — | 309,150 | ||||||||||||||||||||||||
Defined benefit plans liability adjustment | — | — | — | — | — | 1,818 | — | 1,818 | ||||||||||||||||||||||||
Unrealized losses on terminated cash flow hedges | — | — | — | — | — | 6,627 | — | 6,627 | ||||||||||||||||||||||||
560,668 | ||||||||||||||||||||||||||||||||
Acquisition of Provident Bankshares Corporation: | ||||||||||||||||||||||||||||||||
Preferred stock issued | 155,779 | — | — | — | — | — | — | 155,779 | ||||||||||||||||||||||||
Common stock issued | — | — | — | (348,080 | ) | — | — | 620,904 | 272,824 | |||||||||||||||||||||||
Common stock options | — | — | — | 1,367 | — | — | — | 1,367 | ||||||||||||||||||||||||
Common stock warrants | — | — | — | 6,467 | — | — | — | 6,467 | ||||||||||||||||||||||||
Issuance of common stock to defined benefit pension plan | — | — | — | (51,417 | ) | — | — | 95,706 | 44,289 | |||||||||||||||||||||||
Preferred stock cash dividends | — | — | — | — | (21,890 | ) | — | — | (21,890 | ) | ||||||||||||||||||||||
Amortization of preferred stock discount | 4,506 | — | — | — | (4,506 | ) | — | — | — | |||||||||||||||||||||||
Repayment of management stock ownership program receivable | 195 | 195 | ||||||||||||||||||||||||||||||
Stock-based compensation plans: | ||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | (31,677 | ) | — | — | 74,642 | 42,965 | |||||||||||||||||||||||
Exercises of stock options | — | — | — | (24,335 | ) | — | — | 31,751 | 7,416 | |||||||||||||||||||||||
Directors’ stock plan | — | — | — | (1,082 | ) | — | — | 2,050 | 968 | |||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | — | (326 | ) | (502 | ) | (152 | ) | — | 1,035 | 55 | |||||||||||||||||||||
Common stock cash dividends — $2.10 per share | — | — | — | — | (243,471 | ) | — | — | (243,471 | ) | ||||||||||||||||||||||
Balance — September 30, 2009 | $ | 727,748 | 60,198 | 4,291 | 2,448,843 | 5,035,808 | (419,286 | ) | (245,239 | ) | 7,612,363 | |||||||||||||||||||||
2010 | ||||||||||||||||||||||||||||||||
Balance-January 1, 2010 | $ | 730,235 | 60,198 | 4,342 | 2,442,947 | 5,076,884 | (335,997 | ) | (225,702 | ) | 7,752,907 | |||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 531,719 | — | — | 531,719 | ||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | ||||||||||||||||||||||||||||||||
Unrealized gains on investment securities | — | — | — | — | — | 140,392 | — | 140,392 | ||||||||||||||||||||||||
Defined benefit plans liability adjustment | — | — | — | — | — | 3,262 | — | 3,262 | ||||||||||||||||||||||||
Unrealized gain on terminated cash flow hedge | — | — | — | — | — | (211 | ) | — | (211 | ) | ||||||||||||||||||||||
675,162 | ||||||||||||||||||||||||||||||||
Preferred stock cash dividends | — | — | — | — | (30,169 | ) | — | — | (30,169 | ) | ||||||||||||||||||||||
Amortization of preferred stock discount | 7,744 | — | — | — | (7,744 | ) | — | — | — | |||||||||||||||||||||||
Repayment of management stock ownership program receivable | — | — | — | 2,686 | — | — | — | 2,686 | ||||||||||||||||||||||||
Stock-based compensation plans: | ||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | (3,545 | ) | — | — | 46,697 | 43,152 | |||||||||||||||||||||||
Exercises of stock options | — | — | — | (25,639 | ) | — | — | 58,892 | 33,253 | |||||||||||||||||||||||
Stock purchase plan | — | — | — | (8,482 | ) | — | — | 17,480 | 8,998 | |||||||||||||||||||||||
Directors’ stock plan | — | — | — | (289 | ) | — | — | 1,116 | 827 | |||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | — | (196 | ) | (295 | ) | (147 | ) | — | 611 | (27 | ) | ||||||||||||||||||||
Other | — | — | — | 1,354 | — | — | (5,025 | ) | (3,671 | ) | ||||||||||||||||||||||
Common stock cash dividends — $2.10 per share | — | — | — | — | (251,345 | ) | — | — | (251,345 | ) | ||||||||||||||||||||||
Balance — September 30, 2010 | $ | 737,979 | 60,198 | 4,146 | 2,408,737 | 5,319,198 | (192,554 | ) | (105,931 | ) | 8,231,773 | |||||||||||||||||||||
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May 23, 2009 | ||||
(in thousands) | ||||
Contractually required principal and interest at acquisition | $ | 5,465,167 | ||
Contractual cash flows not expected to be collected | (832,115 | ) | ||
Expected cash flows at acquisition | 4,633,052 | |||
Interest component of expected cash flows | (595,685 | ) | ||
Basis in acquired loans at acquisition – estimated fair value | $ | 4,037,367 | ||
(in thousands) | ||||
Outstanding principal balance | $ | 3,330,133 | ||
Carrying amount | 3,142,319 |
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Three months ended | Nine months ended | |||||||
September 30, 2009 | September 30, 2009 | |||||||
(in thousands) | ||||||||
Salaries and employee benefits | $ | 870 | 9,649 | |||||
Equipment and net occupancy | 1,845 | 2,430 | ||||||
Printing, postage and supplies | 629 | 3,444 | ||||||
Other costs of operations | 10,666 | 67,370 | ||||||
$ | 14,010 | 82,893 | ||||||
Actual since | ||||||||
acquisition | Pro forma | |||||||
through | Nine months ended | |||||||
September 30, 2009 | September 30, 2009 | |||||||
(in thousands) | ||||||||
Total revenues | $ | 116,016 | 2,864,760 | |||||
Net income | 18,583 | 157,653 |
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Gross | Gross | |||||||||||||||
Amortized | unrealized | unrealized | Estimated | |||||||||||||
cost | gains | losses | fair value | |||||||||||||
(in thousands) | ||||||||||||||||
September 30, 2010 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 73,395 | 2,216 | 46 | $ | 75,565 | ||||||||||
Obligations of states and political subdivisions | 63,528 | 866 | 42 | 64,352 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,391,427 | 183,529 | 58 | 3,574,898 | ||||||||||||
Privately issued residential | 1,769,795 | 12,736 | 259,163 | 1,523,368 | ||||||||||||
Privately issued commercial | 28,116 | — | 4,636 | 23,480 | ||||||||||||
Collateralized debt obligations | 96,130 | 22,972 | 9,760 | 109,342 | ||||||||||||
Other debt securities | 309,095 | 27,325 | 42,456 | 293,964 | ||||||||||||
Equity securities | 120,828 | 5,433 | 7,734 | 118,527 | ||||||||||||
5,852,314 | 255,077 | 323,895 | 5,783,496 | |||||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 204,599 | 6,856 | 33 | 211,422 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 884,445 | 27,531 | — | 911,976 | ||||||||||||
Privately issued | 324,513 | — | 122,027 | 202,486 | ||||||||||||
Other debt securities | 12,160 | — | — | 12,160 | ||||||||||||
1,425,717 | 34,387 | 122,060 | 1,338,044 | |||||||||||||
Other securities | 453,502 | — | — | 453,502 | ||||||||||||
Total | $ | 7,731,533 | 289,464 | 445,955 | $ | 7,575,042 | ||||||||||
December 31, 2009 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 102,755 | 1,988 | 57 | $ | 104,686 | ||||||||||
Obligations of states and political subdivisions | 61,468 | 1,583 | 128 | 62,923 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,777,642 | 131,407 | 6,767 | 3,902,282 | ||||||||||||
Privately issued residential | 2,438,353 | 9,630 | 383,079 | 2,064,904 | ||||||||||||
Privately issued commercial | 33,133 | — | 7,967 | 25,166 | ||||||||||||
Collateralized debt obligations | 103,159 | 23,389 | 11,202 | 115,346 | ||||||||||||
Other debt securities | 309,514 | 16,851 | 58,164 | 268,201 | ||||||||||||
Equity securities | 170,985 | 5,590 | 15,705 | 160,870 | ||||||||||||
6,997,009 | 190,438 | 483,069 | 6,704,378 | |||||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 203,825 | 1,419 | 1,550 | 203,694 | ||||||||||||
Privately issued mortgage-backed securities | 352,195 | — | 150,993 | 201,202 | ||||||||||||
Other debt securities | 11,587 | — | — | 11,587 | ||||||||||||
567,607 | 1,419 | 152,543 | 416,483 | |||||||||||||
Other securities | 508,624 | — | — | 508,624 | ||||||||||||
Total | $ | 8,073,240 | 191,857 | 635,612 | $ | 7,629,485 | ||||||||||
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Three months ended September 30 | ||||||||
2010 | 2009 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 314,263 | 205,918 | |||||
Additions for credit losses not previously recognized | 9,532 | 47,033 | ||||||
Reductions for increases in cash flows | (108 | ) | (254 | ) | ||||
Reductions for realized losses | (11,812 | ) | (425 | ) | ||||
Ending balance | $ | 311,875 | 252,272 | |||||
Nine months ended September 30 | ||||||||
2010 | 2009 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 284,513 | 155,967 | |||||
Additions for credit losses not previously recognized | 46,721 | 104,001 | ||||||
Reductions for increases in cash flows | (450 | ) | (1,201 | ) | ||||
Reductions for realized losses | (18,909 | ) | (6,495 | ) | ||||
Ending balance | $ | 311,875 | 252,272 | |||||
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Amortized | Estimated | |||||||
cost | fair value | |||||||
(in thousands) | ||||||||
Debt securities available for sale: | ||||||||
Due in one year or less | $ | 48,926 | 49,213 | |||||
Due after one year through five years | 55,277 | 57,558 | ||||||
Due after five years through ten years | 27,647 | 30,012 | ||||||
Due after ten years | 410,298 | 406,440 | ||||||
542,148 | 543,223 | |||||||
Mortgage-backed securities available for sale | 5,189,338 | 5,121,746 | ||||||
$ | 5,731,486 | 5,664,969 | ||||||
Debt securities held to maturity: | ||||||||
Due in one year or less | $ | 40,961 | 41,191 | |||||
Due after one year through five years | 10,864 | 11,417 | ||||||
Due after five years through ten years | 130,978 | 136,206 | ||||||
Due after ten years | 33,956 | 34,768 | ||||||
216,759 | 223,582 | |||||||
Mortgage-backed securities held to maturity | 1,208,958 | 1,114,462 | ||||||
$ | 1,425,717 | 1,338,044 | ||||||
Less than 12 months | 12 months or more | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
Fair value | losses | Fair value | losses | |||||||||||||
(in thousands) | ||||||||||||||||
September 30, 2010 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 2,017 | (46 | ) | — | — | ||||||||||
Obligations of states and political subdivisions | 2,057 | (7 | ) | 3,210 | (35 | ) | ||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 4,028 | (34 | ) | 2,581 | (24 | ) | ||||||||||
Privately issued residential | 162,633 | (1,981 | ) | 1,143,110 | (257,182 | ) | ||||||||||
Privately issued commercial | — | — | 23,480 | (4,636 | ) | |||||||||||
Collateralized debt obligations | 19,532 | (9,464 | ) | 3,593 | (296 | ) | ||||||||||
Other debt securities | 924 | (1 | ) | 86,574 | (42,455 | ) | ||||||||||
Equity securities | 5,488 | (3,559 | ) | 1,219 | (4,175 | ) | ||||||||||
196,679 | (15,092 | ) | 1,263,767 | (308,803 | ) | |||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 1,741 | (6 | ) | 700 | (27 | ) | ||||||||||
Privately issued mortgage-backed securities | — | — | 202,486 | (122,027 | ) | |||||||||||
1,741 | (6 | ) | 203,186 | (122,054 | ) | |||||||||||
Total | $ | 198,420 | (15,098 | ) | 1,466,953 | (430,857 | ) | |||||||||
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Less than 12 months | 12 months or more | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
Fair value | losses | Fair value | losses | |||||||||||||
(in thousands) | ||||||||||||||||
December 31, 2009 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 6,265 | (53 | ) | 572 | (4 | ) | |||||||||
Obligations of states and political subdivisions | 9,540 | (83 | ) | 3,578 | (45 | ) | ||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 685,319 | (6,460 | ) | 19,379 | (307 | ) | ||||||||||
Privately issued residential | 98,312 | (2,871 | ) | 1,504,020 | (380,208 | ) | ||||||||||
Privately issued commercial | — | — | 25,166 | (7,967 | ) | |||||||||||
Collateralized debt obligations | 13,046 | (10,218 | ) | 3,598 | (984 | ) | ||||||||||
Other debt securities | 5,786 | (174 | ) | 138,705 | (57,990 | ) | ||||||||||
Equity securities | 7,449 | (1,728 | ) | 23,159 | (13,977 | ) | ||||||||||
825,717 | (21,587 | ) | 1,718,177 | (461,482 | ) | |||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 136,032 | (1,492 | ) | 626 | (58 | ) | ||||||||||
Privately issued mortgage-backed securities | — | — | 201,202 | (150,993 | ) | |||||||||||
136,032 | (1,492 | ) | 201,828 | (151,051 | ) | |||||||||||
Total | $ | 961,749 | (23,079 | ) | 1,920,005 | (612,533 | ) | |||||||||
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Three months ended | Nine months ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands) | ||||||||||||||||
Beginning balance | $ | 894,667 | 855,365 | 878,022 | 787,904 | |||||||||||
Provision for credit losses | 93,000 | 154,000 | 283,000 | 459,000 | ||||||||||||
Consolidation of loan securitization trusts | — | — | 2,752 | — | ||||||||||||
Net charge-offs | ||||||||||||||||
Charge-offs | (101,782 | ) | (150,150 | ) | (313,167 | ) | (409,169 | ) | ||||||||
Recoveries | 8,835 | 8,659 | 44,113 | 30,139 | ||||||||||||
Net charge-offs | (92,947 | ) | (141,491 | ) | (269,054 | ) | (379,030 | ) | ||||||||
Ending balance | $ | 894,720 | 867,874 | 894,720 | 867,874 | |||||||||||
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Shares | Carrying | Carrying | ||||||||||
issued and | value | value | ||||||||||
outstanding | September 30, 2010 | December 31, 2009 | ||||||||||
(dollars in thousands) | ||||||||||||
Series A (a) | ||||||||||||
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share, 600,000 shares authorized | 600,000 | $ | 577,082 | 572,580 | ||||||||
Series B (b) | ||||||||||||
Series B Mandatory Convertible Non-cumulative Preferred Stock, $1,000 liquidation preference per share, 26,500 shares authorized | 26,500 | 26,500 | 26,500 | |||||||||
Series C (a)(c) | ||||||||||||
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share, 151,500 shares authorized | 151,500 | 134,397 | 131,155 |
(a) | Shares were issued as part of the Troubled Asset Relief Program — Capital Purchase Program of the U.S. Department of Treasury (“U.S. Treasury”). Cash proceeds were allocated between the preferred stock and a ten-year warrant to purchase M&T common stock (Series A — 1,218,522 common shares at $73.86 per share, Series C — 407,542 common shares at $55.76 per share). Dividends, if declared, will accrue and be paid quarterly at a rate of 5% per year for the first five years following the original 2008 issuance dates and thereafter at a rate of 9% per year. The agreement with the U.S. Treasury contains limitations on certain actions of M&T, including the payment of quarterly cash dividends on M&T’s common stock in excess of $.70 per share, the repurchase of its common stock during the first three years of the agreement, and the amount and nature of compensation arrangements for certain of the Company’s officers. | |
(b) | Shares were assumed in the Provident acquisition and a new Series B Preferred Stock was designated. In the aggregate, the shares of Series B Preferred Stock will automatically convert into 433,148 shares of M&T common stock on April 1, 2011, but shareholders may elect to convert their preferred shares at any time prior to that date. Dividends, if declared, are payable quarterly in arrears at a rate of 10% per year. | |
(c) | Shares were assumed in the Provident acquisition and a new Series C Preferred Stock was designated. |
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Other | ||||||||||||||||
Pension | postretirement | |||||||||||||||
benefits | benefits | |||||||||||||||
Three months ended September 30 | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 4,918 | 4,935 | 101 | 88 | |||||||||||
Interest cost on projected benefit obligation | 12,031 | 11,910 | 782 | 828 | ||||||||||||
Expected return on plan assets | (12,722 | ) | (11,963 | ) | — | — | ||||||||||
Amortization of prior service cost | (1,640 | ) | (1,640 | ) | 44 | 61 | ||||||||||
Amortization of net actuarial loss | 3,388 | 2,424 | (2 | ) | (5 | ) | ||||||||||
Net periodic benefit cost | $ | 5,975 | 5,666 | 925 | 972 | |||||||||||
Other | ||||||||||||||||
Pension | postretirement | |||||||||||||||
benefits | benefits | |||||||||||||||
Nine months ended September 30 | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 14,753 | 14,548 | 303 | 265 | |||||||||||
Interest cost on projected benefit obligation | 36,092 | 34,189 | 2,347 | 2,475 | ||||||||||||
Expected return on plan assets | (38,165 | ) | (35,014 | ) | — | — | ||||||||||
Amortization of prior service cost | (4,919 | ) | (4,919 | ) | 132 | 182 | ||||||||||
Amortization of net actuarial loss | 10,164 | 7,273 | (7 | ) | (15 | ) | ||||||||||
Net periodic benefit cost | $ | 17,925 | 16,077 | 2,775 | 2,907 | |||||||||||
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Three months ended | Nine months ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands, except per share) | ||||||||||||||||
Income available to common stockholders: | ||||||||||||||||
Net income | $ | 192,015 | 127,664 | 531,719 | 243,073 | |||||||||||
Less: Preferred stock dividends(a) | (10,056 | ) | (10,056 | ) | (30,169 | ) | (26,024 | ) | ||||||||
Amortization of preferred stock discount(a) | (2,653 | ) | (2,465 | ) | (7,815 | ) | (5,620 | ) | ||||||||
Net income available to common equity | 179,306 | 115,143 | 493,735 | 211,429 | ||||||||||||
Less: Income attributable to unvested stock-based compensation awards | (2,526 | ) | (1,249 | ) | (6,924 | ) | (2,367 | ) | ||||||||
Net income available to common stockholders | $ | 176,780 | 113,894 | 486,811 | 209,062 | |||||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Common shares outstanding (including common stock issuable) and unvested stock- based compensation awards | 120,010 | 118,663 | 119,705 | 114,843 | ||||||||||||
Less: Unvested stock-based compensation awards | (1,690 | ) | (1,293 | ) | (1,657 | ) | (1,142 | ) | ||||||||
Weighted-average shares outstanding | 118,320 | 117,370 | 118,048 | 113,701 | ||||||||||||
Basic earnings per common share | $ | 1.49 | .97 | 4.12 | 1.84 |
(a) | Including impact of not as yet declared cumulative dividends. |
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Three months ended | Nine months ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands, except per share) | ||||||||||||||||
Net income available to common equity | $ | 179,306 | 115,143 | 493,735 | 211,429 | |||||||||||
Less: Income attributable to unvested stock-based compensation awards | (2,517 | ) | (1,249 | ) | (6,904 | ) | (2,367 | ) | ||||||||
Net income available to common stockholders | $ | 176,789 | 113,894 | 486,831 | 209,062 | |||||||||||
Adjusted weighted-average shares outstanding: | ||||||||||||||||
Common and unvested stock-based compensation awards | 120,010 | 118,663 | 119,705 | 114,843 | ||||||||||||
Less: Unvested stock-based compensation awards | (1,690 | ) | (1,293 | ) | (1,657 | ) | (1,142 | ) | ||||||||
Plus: Incremental shares from assumed conversion of stock- based compensation awards and convertible preferred stock | 835 | 177 | 718 | 99 | ||||||||||||
Adjusted weighted-average shares outstanding | 119,155 | 117,547 | 118,766 | 113,800 | ||||||||||||
Diluted earnings per common share | $ | 1.48 | .97 | 4.10 | 1.84 |
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Nine months ended September 30, 2010 | ||||||||||||
Before-tax | Income | |||||||||||
amount | taxes | Net | ||||||||||
(in thousands) | ||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||
Available for sale (“AFS”) investment securities with other-than-temporary impairment (“OTTI”): | ||||||||||||
Securities with OTTI charges during the period | $ | (67,052 | ) | 26,074 | (40,978 | ) | ||||||
Less: OTTI charges recognized in net income | (58,714 | ) | 22,758 | (35,956 | ) | |||||||
Net unrealized losses on investment securities with OTTI | (8,338 | ) | 3,316 | (5,022 | ) | |||||||
AFS investment securities — all other: | ||||||||||||
Unrealized holding gains during period | 166,122 | (64,944 | ) | 101,178 | ||||||||
Less: Reclassification adjustment for gains recognized in net income | 1,023 | (392 | ) | 631 | ||||||||
Less: Securities with OTTI charges during the period | (67,052 | ) | 26,074 | (40,978 | ) | |||||||
232,151 | (90,626 | ) | 141,525 | |||||||||
Reclassification of unrealized holding losses to income during period on investment securities previously transferred from AFS to held to maturity (“HTM”) | 6,400 | (2,511 | ) | 3,889 | ||||||||
Net unrealized gains on investment securities | 230,213 | (89,821 | ) | 140,392 | ||||||||
Reclassification for amortization of gains on terminated cash flow hedges to income | (336 | ) | 125 | (211 | ) | |||||||
Defined benefit plans liability adjustment | 5,370 | (2,108 | ) | 3,262 | ||||||||
$ | 235,247 | (91,804 | ) | 143,443 | ||||||||
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Nine months ended September 30, 2009 | ||||||||||||
Before-tax | Income | |||||||||||
amount | taxes | Net | ||||||||||
(in thousands) | ||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||
AFS investment securities with OTTI: | ||||||||||||
Securities with OTTI charges during the period | $ | (202,737 | ) | 79,296 | (123,441 | ) | ||||||
Less: OTTI charges recognized in net income | (104,001 | ) | 40,662 | (63,339 | ) | |||||||
Net unrealized losses on investment securities with OTTI | (98,736 | ) | 38,634 | (60,102 | ) | |||||||
AFS investment securities — all other: | ||||||||||||
Unrealized holding gains during period | 389,609 | (149,651 | ) | 239,958 | ||||||||
Less: Reclassification adjustment for losses realized in net income | (135 | ) | 54 | (81 | ) | |||||||
Less: Securities with OTTI charges during the period | (202,737 | ) | 79,296 | (123,441 | ) | |||||||
592,481 | (229,001 | ) | 363,480 | |||||||||
Reclassification of unrealized holding losses to income during period on investment securities previously transferred from AFS to HTM | 7,955 | (2,183 | ) | 5,772 | ||||||||
Net unrealized gains on investment securities | 501,700 | (192,550 | ) | 309,150 | ||||||||
Reclassification for amortization of losses on terminated cash flow hedges to income | 10,873 | (4,246 | ) | 6,627 | ||||||||
Defined benefit plans liability adjustment | 2,521 | (703 | ) | 1,818 | ||||||||
$ | 515,094 | (197,499 | ) | 317,595 | ||||||||
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Cash | Defined | |||||||||||||||||||
Investment securities | flow | benefit | ||||||||||||||||||
With OTTI | All other | hedges | plans | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance — January 1, 2010 | $ | (76,772 | ) | (142,853 | ) | 674 | (117,046 | ) | (335,997 | ) | ||||||||||
Net gain (loss) during period | (5,022 | ) | 145,414 | (211 | ) | 3,262 | 143,443 | |||||||||||||
Balance — September 30, 2010 | $ | (81,794 | ) | 2,561 | 463 | (113,784 | ) | (192,554 | ) | |||||||||||
Balance — January 1, 2009 | $ | — | (556,668 | ) | (5,883 | ) | (174,330 | ) | (736,881 | ) | ||||||||||
Net gain (loss) during period | (60,102 | ) | 369,252 | 6,627 | 1,818 | 317,595 | ||||||||||||||
Balance — September 30, 2009 | $ | (60,102 | ) | (187,416 | ) | 744 | (172,512 | ) | (419,286 | ) | ||||||||||
Weighted- | ||||||||||||||||
Notional | Average | average rate | ||||||||||||||
amount | maturity | Fixed | Variable | |||||||||||||
(in thousands) | (in years) | |||||||||||||||
September 30, 2010 | ||||||||||||||||
Fair value hedges: | ||||||||||||||||
Fixed rate long-term borrowings (a) | $ | 1,037,241 | 5.7 | 6.33 | % | 2.18 | % | |||||||||
December 31, 2009 | ||||||||||||||||
Fair value hedges: | ||||||||||||||||
Fixed rate time deposits (a) | $ | 25,000 | 3.7 | 5.30 | % | 0.34 | % | |||||||||
Fixed rate long-term borrowings (a) | 1,037,241 | 6.5 | 6.33 | 2.12 | ||||||||||||
$ | 1,062,241 | 6.4 | 6.30 | % | 2.07 | % | ||||||||||
(a) | Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate. |
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Asset derivatives | Liability derivatives | |||||||||||||||
Fair value | Fair value | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands) | ||||||||||||||||
Derivatives designated and qualifying as hedging instruments | ||||||||||||||||
Fair value hedges: | ||||||||||||||||
Interest rate swap agreements (a) | $ | 139,718 | 54,486 | $ | — | — | ||||||||||
Commitments to sell real estate loans (a) | 406 | 6,009 | 2,945 | 171 | ||||||||||||
140,124 | 60,495 | 2,945 | 171 | |||||||||||||
Derivatives not designated and qualifying as hedging instruments | ||||||||||||||||
Mortgage-related commitments to originate real estate loans for sale (a) | 26,554 | 4,428 | 137 | 4,508 | ||||||||||||
Commitments to sell real estate loans (a) | 721 | 13,293 | 8,906 | 1,360 | ||||||||||||
Trading: | ||||||||||||||||
Interest rate contracts (b) | 439,386 | 317,651 | 415,741 | 290,104 | ||||||||||||
Foreign exchange and other option and futures contracts (b) | 8,582 | 11,908 | 9,343 | 12,094 | ||||||||||||
475,243 | 347,280 | 434,127 | 308,066 | |||||||||||||
Total derivatives | $ | 615,367 | 407,775 | $ | 437,072 | 308,237 | ||||||||||
(a) | Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities. | |
(b) | Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities. |
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Amount of unrealized gain (loss) recognized | ||||||||||||||||
Three months ended | Three months ended | |||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||
Derivative | Hedged item | Derivative | Hedged item | |||||||||||||
(in thousands) | ||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||
Interest rate swap agreements: | ||||||||||||||||
Fixed rate time deposits (a) | $ | — | — | $ | (133 | ) | 133 | |||||||||
Fixed rate long-term borrowings (a) | 28,281 | (27,166 | ) | 19,265 | (18,349 | ) | ||||||||||
Total | $ | 28,281 | (27,166 | ) | $ | 19,132 | (18,216 | ) | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Trading: | ||||||||||||||||
Interest rate contracts (b) | $ | 813 | $ | (1,421 | ) | |||||||||||
Foreign exchange and other option and futures contracts (b) | (1,532 | ) | 604 | |||||||||||||
Total | $ | (719 | ) | $ | (817 | ) | ||||||||||
Amount of unrealized gain (loss) recognized | ||||||||||||||||
Nine months ended | Nine months ended | |||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||
Derivative | Hedged item | Derivative | Hedged item | |||||||||||||
(in thousands) | ||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||
Interest rate swap agreements: | ||||||||||||||||
Fixed rate time deposits (a) | $ | (503 | ) | 503 | $ | (1,527 | ) | 1,520 | ||||||||
Fixed rate long-term borrowings (a) | 84,708 | (80,827 | ) | (62,452 | ) | 58,476 | ||||||||||
Total | $ | 84,205 | (80,324 | ) | $ | (63,979 | ) | 59,996 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Trading: | ||||||||||||||||
Interest rate contracts (b) | $ | (305 | ) | $ | (2,778 | ) | ||||||||||
Foreign exchange and other option and futures contracts (b) | (575 | ) | 1,536 | |||||||||||||
Total | $ | (880 | ) | $ | (1,242 | ) | ||||||||||
(a) | Reported as other revenues from operations. | |
(b) | Reported as trading account and foreign exchange gains. |
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• | Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities. | ||
• | Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market. | ||
• | Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability. |
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Fair value | ||||||||||||||||
measurements at | ||||||||||||||||
September 30, | ||||||||||||||||
2010 | Level 1(a) | Level 2(a) | Level 3 | |||||||||||||
(in thousands) | ||||||||||||||||
Trading account assets | $ | 536,702 | 49,528 | 487,174 | — | |||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | 75,565 | — | 75,565 | — | ||||||||||||
Obligations of states and political subdivisions | 64,352 | — | 64,352 | — | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,574,898 | — | 3,574,898 | — | ||||||||||||
Privately issued residential | 1,523,368 | — | — | 1,523,368 | ||||||||||||
Privately issued commercial | 23,480 | — | — | 23,480 | ||||||||||||
Collateralized debt obligations | 109,342 | — | — | 109,342 | ||||||||||||
Other debt securities | 293,964 | — | 293,964 | — | ||||||||||||
Equity securities | 118,527 | 108,373 | 10,154 | — | ||||||||||||
5,783,496 | 108,373 | 4,018,933 | 1,656,190 | |||||||||||||
Real estate loans held for sale | 656,888 | — | 656,888 | — | ||||||||||||
Other assets(b) | 167,399 | — | 140,845 | 26,554 | ||||||||||||
Total assets | $ | 7,144,485 | 157,901 | 5,303,840 | 1,682,744 | |||||||||||
Trading account liabilities | $ | 425,084 | — | 425,084 | — | |||||||||||
Other liabilities(b) | 11,988 | — | 11,851 | 137 | ||||||||||||
Total liabilities | $ | 437,072 | — | 436,935 | 137 | |||||||||||
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Fair value | ||||||||||||||||
measurements at | ||||||||||||||||
December 31, | ||||||||||||||||
2009 | Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | ||||||||||||||||
Trading account assets | $ | 386,984 | 40,836 | 346,148 | — | |||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | 104,686 | — | 104,686 | — | ||||||||||||
Obligations of states and political subdivisions | 62,923 | — | 62,923 | — | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,902,282 | — | 3,902,282 | — | ||||||||||||
Privately issued residential | 2,064,904 | — | — | 2,064,904 | ||||||||||||
Privately issued commercial | 25,166 | — | — | 25,166 | ||||||||||||
Collateralized debt obligations | 115,346 | — | — | 115,346 | ||||||||||||
Other debt securities | 268,201 | — | 267,781 | 420 | ||||||||||||
Equity securities | 160,870 | 145,817 | 15,053 | — | ||||||||||||
6,704,378 | 145,817 | 4,352,725 | 2,205,836 | |||||||||||||
Real estate loans held for sale | 652,761 | — | 652,761 | — | ||||||||||||
Other assets (b) | 78,216 | — | 73,788 | 4,428 | ||||||||||||
Total assets | $ | 7,822,339 | 186,653 | 5,425,422 | 2,210,264 | |||||||||||
Trading account liabilities | $ | 302,198 | 5,577 | 296,621 | — | |||||||||||
Other liabilities (b) | 6,039 | — | 1,531 | 4,508 | ||||||||||||
Total liabilities | $ | 308,237 | 5,577 | 298,152 | 4,508 | |||||||||||
(a) | There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three and nine months ended September 30, 2010. | |
(b) | Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3). |
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Changes in | ||||||||||||||||||||||||||||
unrealized | ||||||||||||||||||||||||||||
gains (losses) | ||||||||||||||||||||||||||||
included in | ||||||||||||||||||||||||||||
Total gains (losses) | earnings | |||||||||||||||||||||||||||
realized/unrealized | related to | |||||||||||||||||||||||||||
Included in | Transfer | assets still | ||||||||||||||||||||||||||
Balance- | other | in and/or | Balance- | held at | ||||||||||||||||||||||||
June 30, | Included | comprehensive | out of | September 30, | September 30, | |||||||||||||||||||||||
2010 | in earnings | income | Settlements | Level 3(c) | 2010 . | 2010 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||
Privately issued residential mortgage-backed securities | $ | 1,598,033 | (6,675 | )(a) | 37,634 | (105,624 | ) | — | 1,523,368 | (6,675 | )(a) | |||||||||||||||||
Privately issued commercial mortgage-backed securities | 26,643 | — | (1,369 | ) | (1,794 | ) | — | 23,480 | — | |||||||||||||||||||
Collateralized debt obligations | 118,040 | (2,857 | )(a) | (5,592 | ) | (249 | ) | — | 109,342 | (2,857 | )(a) | |||||||||||||||||
Other debt securities | — | — | — | — | — | — | — | |||||||||||||||||||||
1,742,716 | (9,532 | ) | 30,673 | (107,667 | ) | — | 1,656,190 | (9,532 | ) | |||||||||||||||||||
Other assets and other liabilities | 20,843 | 38,399 | (b) | — | — | (32,825 | ) | 26,417 | 23,910 | (b) |
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Changes in | ||||||||||||||||||||||||||||
unrealized | ||||||||||||||||||||||||||||
gains (losses) | ||||||||||||||||||||||||||||
included in | ||||||||||||||||||||||||||||
Total gains (losses) | earnings | |||||||||||||||||||||||||||
realized/unrealized | related to | |||||||||||||||||||||||||||
Included in | Purchases, | Transfer | assets still | |||||||||||||||||||||||||
Balance- | other | sales, | in and/or | Balance- | held at | |||||||||||||||||||||||
June 30, | Included | comprehensive | issuances & | out of | September 30, | September 30, | ||||||||||||||||||||||
2009 | in earnings | income | settlements | Level 3(c) | 2009 | 2009 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 12,203 | — | 132 | — | — | 12,335 | — | ||||||||||||||||||||
Privately issued residential mortgage-backed securities | 2,241,758 | (44,278 | )(a) | 161,308 | (174,551 | ) | — | 2,184,237 | (44,278 | )(a) | ||||||||||||||||||
Privately issued commercial mortgage-backed securities | 23,018 | — | 523 | — | — | 23,541 | — | |||||||||||||||||||||
Collateralized debt obligations | 112,372 | (2,502 | )(a) | 19,205 | 2,262 | — | 131,337 | (2,502 | )(a) | |||||||||||||||||||
Other debt securities | 765 | — | 70 | — | (450 | ) | 385 | — | ||||||||||||||||||||
Equity securities | 2,329 | — | 1 | (12 | ) | — | 2,318 | — | ||||||||||||||||||||
2,392,445 | (46,780 | ) | 181,239 | (172,301 | ) | (450 | ) | 2,354,153 | (46,780 | ) | ||||||||||||||||||
Other assets and other liabilities | 9,676 | 16,195 | (b) | — | — | (11,951 | ) | 13,920 | 13,148 | (b) |
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Changes in | ||||||||||||||||||||||||||||
unrealized | ||||||||||||||||||||||||||||
gains (losses) | ||||||||||||||||||||||||||||
included in | ||||||||||||||||||||||||||||
Total gains (losses) | earnings | |||||||||||||||||||||||||||
realized/unrealized | related to | |||||||||||||||||||||||||||
Included in | Transfer | assets still | ||||||||||||||||||||||||||
Balance- | other | in and/or | Balance- | held at | ||||||||||||||||||||||||
January 1, | Included | comprehensive | out of | September 30, | September 30, | |||||||||||||||||||||||
2010 | in earnings | income | Settlements | Level 3(c) | 2010 | 2010 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||
Privately issued residential mortgage-backed securities | $ | 2,064,904 | (41,018 | )(a) | 152,882 | (298,152 | ) | (355,248 | )(d) | 1,523,368 | (41,018 | )(a) | ||||||||||||||||
Privately issued commercial mortgage-backed securities | 25,166 | — | 4,725 | (6,411 | ) | — | 23,480 | — | ||||||||||||||||||||
Collateralized debt obligations | 115,346 | (5,703 | )(a) | 215 | (516 | ) | — | 109,342 | (5,703 | )(a) | ||||||||||||||||||
Other debt securities | 420 | — | 35 | — | (455 | ) | — | — | ||||||||||||||||||||
2,205,836 | (46,721 | ) | 157,857 | (305,079 | ) | (355,703 | ) | 1,656,190 | (46,721 | ) | ||||||||||||||||||
Other assets and other liabilities | (80 | ) | 86,249 | (b) | — | — | (59,752 | ) | 26,417 | 26,326 | (b) |
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Changes in | ||||||||||||||||||||||||||||
unrealized | ||||||||||||||||||||||||||||
gains (losses) | ||||||||||||||||||||||||||||
included in | ||||||||||||||||||||||||||||
Total gains (losses) | earnings | |||||||||||||||||||||||||||
realized/unrealized | related to | |||||||||||||||||||||||||||
Included in | Purchases, | Transfer | assets still | |||||||||||||||||||||||||
Balance- | other | sales, | in and/or | Balance- | held at | |||||||||||||||||||||||
January 1, | Included | comprehensive | issuances & | out of | September 30, | September 30, | ||||||||||||||||||||||
2009 | in earnings | income | settlements | Level 3(c) | 2009 | 2009 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 5,532 | — | — | — | (5,532 | ) | — | — | |||||||||||||||||||
Obligations of states and political subdivisions | 38 | — | 154 | — | 12,143 | 12,335 | — | |||||||||||||||||||||
Government issued or guaranteed mortgage- backed securities | 84,544 | — | — | — | (84,544 | ) | — | — | ||||||||||||||||||||
Privately issued residential mortgage-backed securities | 2,326,554 | (98,746 | )(a) | 376,435 | (420,006 | ) | — | 2,184,237 | (98,746 | )(a) | ||||||||||||||||||
Privately issued commercial mortgage- backed securities | 41,046 | — | (8,478 | ) | (9,027 | ) | — | 23,541 | — | |||||||||||||||||||
Collateralized debt obligations | 2,496 | (4,055 | )(a) | 32,917 | 99,979 | — | 131,337 | (4,055 | )(a) | |||||||||||||||||||
Other debt securities | — | — | 110 | 725 | (450 | ) | 385 | — | ||||||||||||||||||||
Equity securities | 2,302 | — | 2 | 14 | — | 2,318 | — | |||||||||||||||||||||
2,462,512 | (102,801 | ) | 401,140 | (328,315 | ) | (78,383 | ) | 2,354,153 | (102,801 | ) | ||||||||||||||||||
Other assets and other liabilities | 8,266 | 35,685 | (b) | — | — | (30,031 | ) | 13,920 | 16,444 | (b) |
(a) | Reported as an other-than-temporary impairment loss in the consolidated statement of income or as gain (loss) on bank investment securities. | |
(b) | Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations. | |
(c) | The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer. | |
(d) | As a result of the Company’s adoption of new accounting rules governing the consolidation of variable interest entities, effective January 1, 2010 the Company derecognized $355 million of available-for-sale investment securities previously classified as Level 3 measurements. Further information regarding the Company’s adoption of new accounting requirements is included in note 11. |
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September 30, 2010 | December 31, 2009 | |||||||||||||||
Carrying | Calculated | Carrying | Calculated | |||||||||||||
amount | estimate | amount | estimate | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,089,325 | $ | 1,089,325 | $ | 1,246,342 | $ | 1,246,342 | ||||||||
Interest-bearing deposits at banks | 401,624 | 401,624 | 133,335 | 133,335 | ||||||||||||
Agreements to resell securities | 425,000 | 425,000 | — | — | ||||||||||||
Trading account assets | 536,702 | 536,702 | 386,984 | 386,984 | ||||||||||||
Investment securities | 7,662,715 | 7,575,042 | 7,780,609 | 7,629,485 | ||||||||||||
Loans and leases: | ||||||||||||||||
Commercial loans and leases | 12,788,136 | 12,494,338 | 13,479,447 | 13,090,206 | ||||||||||||
Commercial real estate loans | 20,580,450 | 20,258,451 | 20,949,931 | 20,426,273 | ||||||||||||
Residential real estate loans | 5,754,432 | 5,556,767 | 5,463,463 | 5,058,763 | ||||||||||||
Consumer loans | 11,668,540 | 11,333,568 | 12,043,845 | 11,575,525 | ||||||||||||
Allowance for credit losses | (894,720 | ) | — | (878,022 | ) | — | ||||||||||
Loans and leases, net | 49,896,838 | 49,643,124 | 51,058,664 | 50,150,767 | ||||||||||||
Accrued interest receivable | 224,475 | 224,475 | 214,692 | 214,692 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Noninterest-bearing deposits | $ | (14,665,603 | ) | $ | (14,665,603 | ) | $ | (13,794,636 | ) | $ | (13,794,636 | ) | ||||
Savings deposits and NOW accounts | (27,215,588 | ) | (27,215,588 | ) | (25,073,269 | ) | (25,073,269 | ) | ||||||||
Time deposits | (6,119,516 | ) | (6,171,627 | ) | (7,531,495 | ) | (7,592,214 | ) | ||||||||
Deposits at foreign office | (653,916 | ) | (653,916 | ) | (1,050,438 | ) | (1,050,438 | ) | ||||||||
Short-term borrowings | (1,211,683 | ) | (1,211,683 | ) | (2,442,582 | ) | (2,442,582 | ) | ||||||||
Long-term borrowings | (8,991,508 | ) | (9,118,366 | ) | (10,240,016 | ) | (9,822,153 | ) | ||||||||
Accrued interest payable | (110,013 | ) | (110,013 | ) | (94,838 | ) | (94,838 | ) | ||||||||
Trading account liabilities | (425,084 | ) | (425,084 | ) | (302,198 | ) | (302,198 | ) | ||||||||
Other financial instruments: | ||||||||||||||||
Commitments to originate real estate loans for sale | $ | 26,417 | $ | 26,417 | $ | (80 | ) | $ | (80 | ) | ||||||
Commitments to sell real estate loans | (10,724 | ) | (10,724 | ) | 17,771 | 17,771 | ||||||||||
Other credit-related commitments | (51,515 | ) | (51,515 | ) | (55,954 | ) | (55,954 | ) | ||||||||
Interest rate swap agreements used for interest rate risk management | 139,718 | 139,718 | 54,486 | 54,486 |
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September 30, | December 31, | |||||||
2010 | 2009 | |||||||
(in thousands) | ||||||||
Commitments to extend credit | ||||||||
Home equity lines of credit | $ | 6,346,123 | 6,482,987 | |||||
Commercial real estate loans to be sold | 157,952 | 180,498 | ||||||
Other commercial real estate and construction | 1,501,564 | 1,360,805 | ||||||
Residential real estate loans to be sold | 930,160 | 631,090 | ||||||
Other residential real estate | 217,352 | 127,788 | ||||||
Commercial and other | 7,731,120 | 7,155,188 | ||||||
Standby letters of credit | 3,779,166 | 3,828,586 | ||||||
Commercial letters of credit | 72,191 | 66,377 | ||||||
Financial guarantees and indemnification contracts | 1,521,275 | 1,633,549 | ||||||
Commitments to sell real estate loans | 1,375,705 | 1,239,001 |
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Three months ended September 30 | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Inter- | Net | Inter- | Net | |||||||||||||||||||||
Total | segment | income | Total | segment | income | |||||||||||||||||||
revenues(a) | revenues | (loss) | revenues(a) | revenues | (loss) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Business Banking | $ | 103,475 | 290 | 24,295 | 108,744 | — | 33,707 | |||||||||||||||||
Commercial Banking | 199,139 | 282 | 71,567 | 183,407 | — | 41,158 | ||||||||||||||||||
Commercial Real Estate | 118,666 | 104 | 53,727 | 107,524 | 14 | 42,229 | ||||||||||||||||||
Discretionary Portfolio | 12,493 | (2,733 | ) | (2,759 | ) | 1,346 | (2,894 | ) | (10,496 | ) | ||||||||||||||
Residential Mortgage Banking | 73,744 | 9,419 | 9,408 | 74,336 | 11,170 | 1,209 | ||||||||||||||||||
Retail Banking | 302,656 | 2,632 | 55,572 | 336,049 | 2,902 | 74,043 | ||||||||||||||||||
All Other | 49,594 | (9,994 | ) | (19,795 | ) | 14,475 | (11,192 | ) | (54,186 | ) | ||||||||||||||
Total | $ | 859,767 | — | 192,015 | 825,881 | — | 127,664 | |||||||||||||||||
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Nine months ended September 30 | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Inter- | Net | Inter- | Net | |||||||||||||||||||||
Total | segment | income | Total | segment | income | |||||||||||||||||||
revenues (a) | revenues | (loss) | revenues (a) | revenues | (loss) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Business Banking | $ | 307,881 | 290 | 76,191 | 305,511 | — | 94,518 | |||||||||||||||||
Commercial Banking | 586,120 | 282 | 230,047 | 535,092 | — | 168,315 | ||||||||||||||||||
Commercial Real Estate | 338,566 | 161 | 141,147 | 297,335 | 53 | 108,669 | ||||||||||||||||||
Discretionary Portfolio | 5,840 | (7,980 | ) | (22,994 | ) | 29,077 | (9,671 | ) | (18,864 | ) | ||||||||||||||
Residential Mortgage Banking | 202,627 | 26,492 | 9,536 | 234,363 | 38,041 | (4,168 | ) | |||||||||||||||||
Retail Banking | 925,769 | 8,009 | 181,689 | 933,726 | 8,066 | 180,590 | ||||||||||||||||||
All Other | 147,788 | (27,254 | ) | (83,897 | ) | (55,859 | ) | (36,489 | ) | (285,987 | ) | |||||||||||||
Total | $ | 2,514,591 | — | 531,719 | 2,279,245 | — | 243,073 | |||||||||||||||||
Average total assets | ||||||||||||
Nine months ended | Year ended | |||||||||||
September 30 | December 31 | |||||||||||
2010 | 2009 | 2009 | ||||||||||
(in millions) | ||||||||||||
Business Banking | $ | 4,850 | 4,821 | 4,869 | ||||||||
Commercial Banking | 15,460 | 15,451 | 15,399 | |||||||||
Commercial Real Estate | 13,198 | 12,563 | 12,842 | |||||||||
Discretionary Portfolio | 14,658 | 13,642 | 13,763 | |||||||||
Residential Mortgage Banking | 2,189 | 2,619 | 2,552 | |||||||||
Retail Banking | 12,133 | 11,862 | 12,024 | |||||||||
All Other | 5,851 | 6,026 | 6,023 | |||||||||
Total | $ | 68,339 | 66,984 | 67,472 | ||||||||
(a) | Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $5,865,000 and $5,795,000 for the three-month periods ended September 30, 2010 and 2009, |
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respectively, and $17,893,000 and $15,942,000 for the nine-month periods ended September 30, 2010 and 2009, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues. |
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• | Amends the Electronic Fund Transfer Act (EFTA) to, among other things, give the Federal Reserve the authority to issue rules which are expected to limit debit-card interchange fees; | ||
• | Applies the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies which, among other things, will, after a three-year phase-in period which begins January 1, 2013, remove trust preferred securities as a permitted component of a holding company’s Tier 1 capital; | ||
• | Provides for an increase in the FDIC assessment for depository institutions with assets of $10 billion or more and increases the minimum reserve ratio for the deposit insurance fund from 1.15% to 1.35%; | ||
• | Imposes comprehensive regulation of the over-the-counter derivatives market, which would include certain provisions that would effectively prohibit insured depository institutions from conducting certain derivatives businesses in the institution itself; | ||
• | Repeals the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts; | ||
• | Provides mortgage reform provisions regarding a customer’s ability to repay, restricting variable-rate lending by requiring the ability to repay to be determined for variable-rate loans by using the maximum rate that will apply during the first five years of a variable-rate loan term, and making more loans subject to provisions for higher cost loans, new disclosures, and certain other revisions; and | ||
• | Creates a financial stability oversight council that will recommend to the Federal Reserve increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity. |
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(net of unearned discount)
Dollars in millions
Percent increase | ||||||||||||
(decrease) from | ||||||||||||
3rd Qtr. | 3rd Qtr. | 2nd Qtr. | ||||||||||
2010 | 2009 | 2010 . | ||||||||||
Commercial, financial, etc. | $ | 12,856 | (7 | )% | (2 | )% | ||||||
Real estate — commercial | 20,612 | (1 | ) | (1 | ) | |||||||
Real estate — consumer | 5,680 | 5 | — | |||||||||
Consumer | ||||||||||||
Automobile | 2,761 | (12 | ) | (2 | ) | |||||||
Home equity lines | 5,850 | 2 | — | |||||||||
Home equity loans | 846 | (21 | ) | (6 | ) | |||||||
Other | 2,230 | (3 | ) | 1 | ||||||||
Total consumer | 11,687 | (5 | ) | (1 | ) | |||||||
Total | $ | 50,835 | (3 | )% | (1 | )% | ||||||
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Dollars in millions
Percent increase | ||||||||||||
(decrease) from | ||||||||||||
3rd Qtr. | 3rd Qtr. | 2nd Qtr. | ||||||||||
2010 | 2009 | 2010 | ||||||||||
NOW accounts | $ | 564 | 6 | % | (6 | )% | ||||||
Savings deposits | 24,748 | 9 | — | |||||||||
Time deposits less than $100,000 | 4,139 | (26 | ) | (6 | ) | |||||||
Noninterest-bearing deposits | 13,647 | 13 | — | |||||||||
Total | $ | 43,098 | 5 | % | (1 | )% | ||||||
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Dollars in thousands
Three months ended September 30 | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Amount | Rate (a) | Amount | Rate (a) | |||||||||||||
Increase (decrease) in: | ||||||||||||||||
Interest income | $ | — | — | % | $ | — | — | % | ||||||||
Interest expense | (10,229 | ) | (.09 | ) | (10,296 | ) | (.08 | ) | ||||||||
Net interest income/margin | $ | 10,229 | .07 | % | $ | 10,296 | .07 | % | ||||||||
Average notional amount | $ | 1,037,241 | $ | 1,062,241 | ||||||||||||
Rate received(b) | 6.27 | % | 6.26 | % | ||||||||||||
Rate paid(b) | 2.36 | % | 2.41 | % | ||||||||||||
Nine months ended September 30 | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Amount | Rate (a) | Amount | Rate (a) | |||||||||||||
Increase (decrease) in: | ||||||||||||||||
Interest income | $ | — | — | % | $ | — | — | % | ||||||||
Interest expense | (32,448 | ) | (.10 | ) | (27,230 | ) | (.08 | ) | ||||||||
Net interest income/margin | $ | 32,448 | .07 | % | $ | 27,230 | .06 | % | ||||||||
Average notional amount | $ | 1,050,794 | $ | 1,085,483 | ||||||||||||
Rate received(b) | 6.35 | % | 6.34 | % | ||||||||||||
Rate paid(b) | 2.22 | % | 2.99 | % | ||||||||||||
(a) | Computed as an annualized percentage of average earning assets or interest-bearing liabilities. | |
(b) | Weighted-average rate paid or received on interest rate swap agreements in effect during the period. |
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TO CHANGES IN INTEREST RATES
Dollars in thousands
Calculated increase (decrease) | ||||||||
in projected net interest income | ||||||||
Changes in interest rates | September 30, 2010 | December 31, 2009 | ||||||
+200 basis points | $ | 72,075 | 33,974 | |||||
+100 basis points | 38,698 | 19,989 | ||||||
-100 basis points | (35,838 | ) | (37,775 | ) | ||||
-200 basis points | (56,257 | ) | (61,729 | ) |
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BY LOAN/LEASE TYPE
In thousands
2010 | ||||||||||||||||
Year | ||||||||||||||||
1st Qtr. | 2nd Qtr. | 3rd Qtr. | to-date | |||||||||||||
Commercial, financial, etc. | $ | 17,994 | 9,166 | 33,147 | 60,307 | |||||||||||
Real estate: | ||||||||||||||||
Commercial | 30,226 | 35,449 | 17,837 | 83,512 | ||||||||||||
Residential | 15,280 | 13,182 | 17,480 | 45,942 | ||||||||||||
Consumer | 31,009 | 23,801 | 24,483 | 79,293 | ||||||||||||
$ | 94,509 | 81,598 | 92,947 | 269,054 | ||||||||||||
2009 | ||||||||||||||||
Year | ||||||||||||||||
1st Qtr. | 2nd Qtr. | 3rd Qtr. | to-date | |||||||||||||
Commercial, financial, etc. | $ | 22,301 | 48,025 | 70,803 | 141,129 | |||||||||||
Real estate: | ||||||||||||||||
Commercial | 22,399 | 27,511 | 20,645 | 70,555 | ||||||||||||
Residential | �� | 19,702 | 31,460 | 19,839 | 71,001 | |||||||||||
Consumer | 35,531 | 30,610 | 30,204 | 96,345 | ||||||||||||
$ | 99,933 | 137,606 | 141,491 | 379,030 | ||||||||||||
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Quarter ended | ||||||||||||||||||||
September 30, 2010 | September 30, 2010 | |||||||||||||||||||
Nonaccrual | Net charge-offs | |||||||||||||||||||
Annualized | ||||||||||||||||||||
percent of | ||||||||||||||||||||
Percent of | average | |||||||||||||||||||
Outstanding | outstanding | outstanding | ||||||||||||||||||
balances | Balances | balances | Balances | balances | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
New York | $ | 300,026 | $ | 31,428 | 10.48 | % | $ | — | — | % | ||||||||||
Pennsylvania | 228,835 | 24,189 | 10.57 | — | — | |||||||||||||||
Mid-Atlantic | 697,038 | 182,707 | 26.21 | 9,728 | 5.28 | |||||||||||||||
Other | 225,207 | 64,597 | 28.68 | 979 | 1.75 | |||||||||||||||
Total | $ | 1,451,106 | $ | 302,921 | 20.88 | % | $ | 10,707 | 2.85 | % | ||||||||||
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Quarter ended | ||||||||||||||||||||
September 30, 2010 | September 30, 2010 | |||||||||||||||||||
Nonaccrual | Net charge-offs | |||||||||||||||||||
Annualized | ||||||||||||||||||||
percent of | ||||||||||||||||||||
Percent of | average | |||||||||||||||||||
Outstanding | outstanding | outstanding | ||||||||||||||||||
balances | Balances | balances | Balances | balances | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Residential mortgages: | ||||||||||||||||||||
New York | $ | 2,088,995 | $ | 42,623 | 2.04 | % | $ | 1,053 | 0.20 | % | ||||||||||
Pennsylvania | 723,182 | 14,643 | 2.02 | 6 | — | |||||||||||||||
Mid-Atlantic | 1,058,342 | 38,475 | 3.64 | 2,665 | 1.01 | |||||||||||||||
Other | 1,168,155 | 64,381 | 5.51 | 3,018 | 1.06 | |||||||||||||||
Total | $ | 5,038,674 | $ | 160,122 | 3.18 | % | $ | 6,742 | 0.54 | % | ||||||||||
Residential construction loans: | ||||||||||||||||||||
New York | $ | 10,859 | $ | 827 | 7.62 | % | $ | — | — | % | ||||||||||
Pennsylvania | 4,217 | 1,049 | 24.88 | 41 | 3.48 | |||||||||||||||
Mid-Atlantic | 2,316 | 275 | 11.87 | 456 | 53.89 | |||||||||||||||
Other | 40,397 | 4,419 | 10.94 | 1,068 | 10.03 | |||||||||||||||
Total | $ | 57,789 | $ | 6,570 | 11.37 | % | $ | 1,565 | 10.32 | % | ||||||||||
Alt-A first mortgages: | ||||||||||||||||||||
New York | $ | 97,558 | $ | 13,963 | 14.31 | % | $ | 401 | 1.60 | % | ||||||||||
Pennsylvania | 25,268 | 3,579 | 14.16 | 156 | 2.35 | |||||||||||||||
Mid-Atlantic | 120,953 | 16,672 | 13.78 | 571 | 1.83 | |||||||||||||||
Other | 414,190 | 72,755 | 17.57 | 8,045 | 7.49 | |||||||||||||||
Total | $ | 657,969 | $ | 106,969 | 16.26 | % | $ | 9,173 | 5.39 | % | ||||||||||
Alt-A junior lien: | ||||||||||||||||||||
New York | $ | 2,982 | $ | 421 | 14.12 | % | $ | — | — | % | ||||||||||
Pennsylvania | 724 | 51 | 7.04 | 258 | 118.73 | |||||||||||||||
Mid-Atlantic | 4,806 | 186 | 3.87 | (3 | ) | (0.27 | ) | |||||||||||||
Other | 16,317 | 1,252 | 7.67 | 981 | 22.71 | |||||||||||||||
Total | $ | 24,829 | $ | 1,910 | 7.69 | % | $ | 1,236 | 18.91 | % | ||||||||||
First lien home equity loans: | ||||||||||||||||||||
New York | $ | 37,472 | $ | 299 | 0.80 | % | $ | — | — | % | ||||||||||
Pennsylvania | 213,169 | 1,913 | 0.90 | 33 | 0.06 | |||||||||||||||
Mid-Atlantic | 160,423 | 2,173 | 1.35 | 14 | 0.03 | |||||||||||||||
Other | 1,000 | 159 | 15.90 | — | — | |||||||||||||||
Total | $ | 412,064 | $ | 4,544 | 1.10 | % | $ | 47 | 0.04 | % | ||||||||||
First lien home equity lines: | ||||||||||||||||||||
New York | $ | 851,727 | $ | 2,173 | 0.26 | % | $ | 96 | 0.05 | % | ||||||||||
Pennsylvania | 557,546 | 801 | 0.14 | 61 | 0.05 | |||||||||||||||
Mid-Atlantic | 533,873 | 954 | 0.18 | 178 | 0.14 | |||||||||||||||
Other | 14,001 | 347 | 2.48 | — | — | |||||||||||||||
Total | $ | 1,957,147 | $ | 4,275 | 0.22 | % | $ | 335 | 0.07 | % | ||||||||||
Junior lien home equity loans: | ||||||||||||||||||||
New York | $ | 95,035 | $ | 1,138 | 1.20 | % | $ | 256 | 1.04 | % | ||||||||||
Pennsylvania | 101,274 | 1,030 | 1.02 | 37 | 0.14 | |||||||||||||||
Mid-Atlantic | 165,294 | 2,969 | 1.80 | (32 | ) | (0.07 | ) | |||||||||||||
Other | 18,113 | 1,210 | 6.68 | 182 | 3.94 | |||||||||||||||
Total | $ | 379,716 | $ | 6,347 | 1.67 | % | $ | 443 | 0.45 | % | ||||||||||
Junior lien home equity lines: | ||||||||||||||||||||
New York | $ | 1,706,875 | $ | 14,159 | 0.83 | % | $ | 2,524 | 0.56 | % | ||||||||||
Pennsylvania | 575,635 | 1,965 | 0.34 | 375 | 0.24 | |||||||||||||||
Mid-Atlantic | 1,539,361 | 6,085 | 0.40 | 1,671 | 0.42 | |||||||||||||||
Other | 77,853 | 2,234 | 2.87 | 671 | 3.42 | |||||||||||||||
Total | $ | 3,899,724 | $ | 24,443 | 0.63 | % | $ | 5,241 | 0.51 | % | ||||||||||
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2010 Quarters | 2009 Quarters | |||||||||||||||||||
Third | Second | First | Fourth | Third | ||||||||||||||||
Nonaccrual loans | $ | 1,099,560 | 1,090,135 | 1,339,992 | 1,331,702 | 1,228,341 | ||||||||||||||
Real estate and other foreclosed assets | 192,600 | 192,631 | 95,362 | 94,604 | 84,676 | |||||||||||||||
Total nonperforming assets | $ | 1,292,160 | 1,282,766 | 1,435,354 | 1,426,306 | 1,313,017 | ||||||||||||||
Accruing loans past due 90 days or more(a) | $ | 214,769 | 203,081 | 203,443 | 208,080 | 182,750 | ||||||||||||||
Renegotiated loans | $ | 233,671 | 228,847 | 220,885 | 212,548 | 190,917 | ||||||||||||||
Government guaranteed loans included in totals above: | ||||||||||||||||||||
Nonaccrual loans | $ | 38,232 | 40,271 | 37,048 | 38,579 | 38,590 | ||||||||||||||
Accruing loans past due 90 days or more | 194,223 | 187,682 | 194,523 | 193,495 | 172,701 | |||||||||||||||
Purchased impaired loans(b): | ||||||||||||||||||||
Outstanding customer balance | $ | 113,964 | 130,808 | 148,686 | 172,772 | 209,138 | ||||||||||||||
Carrying amount | 52,728 | 61,524 | 73,890 | 88,170 | 108,058 | |||||||||||||||
Nonaccrual loans to total loans and leases, net of unearned discount | 2.16 | % | 2.13 | % | 2.60 | % | 2.56 | % | 2.35 | % | ||||||||||
Nonperforming assets to total net loans and leases and real estate and other foreclosed assets | 2.53 | % | 2.50 | % | 2.78 | % | 2.74 | % | 2.51 | % | ||||||||||
Accruing loans past due 90 days or more to total loans and leases, net of unearned discount | . 42 | % | . 40 | % | . 40 | % | . 40 | % | . 35 | % | ||||||||||
(a) | Predominately residential mortgage loans. | |
(b) | Accruing loans that were impaired at acquisition date and recorded at fair value. |
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As a percentage of | ||||||||||||||||||||||||||||
carrying value | ||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||
Amortized | Fair | unrealized | AAA | Investment | Senior | |||||||||||||||||||||||
Collateral type | cost | value | gains(losses) | rated | grade | tranche | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||||||
Prime — Fixed | $ | 111,479 | 118,447 | 6,968 | 69 | % | 71 | % | 98 | % | ||||||||||||||||||
Prime — Hybrid ARMs | 1,461,848 | 1,273,900 | (187,948 | ) | 12 | 54 | 95 | |||||||||||||||||||||
Prime — Other | 1,885 | 1,697 | (188 | ) | — | — | 100 | |||||||||||||||||||||
Alt-A — Fixed | 8,450 | 9,863 | 1,413 | 13 | 13 | 97 | ||||||||||||||||||||||
Alt-A — Hybrid ARMs | 180,554 | 116,237 | (64,317 | ) | — | 48 | 81 | |||||||||||||||||||||
Alt-A — Option ARMs | 347 | 165 | (182 | ) | — | — | — | |||||||||||||||||||||
Other | 5,232 | 3,059 | (2,173 | ) | — | — | 8 | |||||||||||||||||||||
Subtotal | 1,769,795 | 1,523,368 | (246,427 | ) | 15 | 55 | 94 | |||||||||||||||||||||
Commercial mortgage loans | 28,116 | 23,480 | (4,636 | ) | 15 | 100 | 100 | |||||||||||||||||||||
Total | $ | 1,797,911 | 1,546,848 | (251,063 | ) | 15 | % | 55 | % | 94 | % | |||||||||||||||||
(a) | All information is as of September 30, 2010. |
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September 30, 2010
M&T | M&T | M&T | ||||||||||
(Consolidated) | Bank | Bank, N.A. | ||||||||||
Tier 1 capital | 9.45 | % | 8.70% | 24.26 | % | |||||||
Total capital | 13.11 | % | 12.40% | 24.96 | % | |||||||
Tier 1 leverage | 9.18 | % | 8.40% | 21.77 | % |
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2010 Quarters | 2009 Quarters | |||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||
Earnings and dividends | ||||||||||||||||||||||||||||
Amounts in thousands, except per share | ||||||||||||||||||||||||||||
Interest income (taxable-equivalent basis) | $ | 691,765 | 690,889 | 682,309 | 698,556 | 706,388 | 682,637 | 659,445 | ||||||||||||||||||||
Interest expense | 116,032 | 117,557 | 120,052 | 133,950 | 152,938 | 175,856 | 206,705 | |||||||||||||||||||||
Net interest income | 575,733 | 573,332 | 562,257 | 564,606 | 553,450 | 506,781 | 452,740 | |||||||||||||||||||||
Less: provision for credit losses | 93,000 | 85,000 | 105,000 | 145,000 | 154,000 | 147,000 | 158,000 | |||||||||||||||||||||
Other income | 289,899 | 273,557 | 257,706 | 265,890 | 278,226 | 271,649 | 232,341 | |||||||||||||||||||||
Less: other expense | 480,133 | 476,068 | 489,362 | 478,451 | 500,056 | 563,710 | 438,346 | |||||||||||||||||||||
Income before income taxes | 292,499 | 285,821 | 225,601 | 207,045 | 177,620 | 67,720 | 88,735 | |||||||||||||||||||||
Applicable income taxes | 94,619 | 90,967 | 68,723 | 64,340 | 44,161 | 11,318 | 19,581 | |||||||||||||||||||||
Taxable-equivalent adjustment | 5,865 | 6,105 | 5,923 | 5,887 | 5,795 | 5,214 | 4,933 | |||||||||||||||||||||
Net income | $ | 192,015 | 188,749 | 150,955 | 136,818 | 127,664 | 51,188 | 64,221 | ||||||||||||||||||||
Net income available to common equity | $ | 179,306 | 176,088 | 138,341 | 124,251 | 115,143 | 40,964 | 55,322 | ||||||||||||||||||||
Per common share data | ||||||||||||||||||||||||||||
Basic earnings | $ | 1.49 | 1.47 | 1.16 | 1.05 | .97 | .36 | .49 | ||||||||||||||||||||
Diluted earnings | 1.48 | 1.46 | 1.15 | 1.04 | .97 | .36 | .49 | |||||||||||||||||||||
Cash dividends | $ | .70 | .70 | .70 | .70 | .70 | .70 | .70 | ||||||||||||||||||||
Average common shares outstanding | ||||||||||||||||||||||||||||
Basic | 118,320 | 118,054 | 117,765 | 117,506 | 117,370 | 113,218 | 110,439 | |||||||||||||||||||||
Diluted | 119,155 | 118,878 | 118,256 | 117,672 | 117,547 | 113,521 | 110,439 | |||||||||||||||||||||
Performance ratios, annualized | ||||||||||||||||||||||||||||
Return on | ||||||||||||||||||||||||||||
Average assets | 1.12 | % | 1.11 | % | .89 | % | .79 | % | .73 | % | .31 | % | .40 | % | ||||||||||||||
Average common stockholders’ equity | 9.56 | % | 9.67 | % | 7.86 | % | 7.09 | % | 6.72 | % | 2.53 | % | 3.61 | % | ||||||||||||||
Net interest margin on average earning assets (taxable-equivalent basis) | 3.87 | % | 3.84 | % | 3.78 | % | 3.71 | % | 3.61 | % | 3.43 | % | 3.19 | % | ||||||||||||||
Nonaccrual loans to total loans and leases, net of unearned discount | 2.16 | % | 2.13 | % | 2.60 | % | 2.56 | % | 2.35 | % | 2.11 | % | 2.05 | % | ||||||||||||||
Efficiency ratio (a) | 54.95 | % | 54.77 | % | 57.82 | % | 54.62 | % | 57.21 | % | 61.93 | % | 60.82 | % | ||||||||||||||
Net operating (tangible) results (b) | ||||||||||||||||||||||||||||
Net operating income (in thousands) | $ | 200,225 | 197,752 | 160,953 | 150,776 | 128,761 | 100,805 | 75,034 | ||||||||||||||||||||
Diluted net operating income per common share | 1.55 | 1.53 | 1.23 | 1.16 | .98 | .79 | .59 | |||||||||||||||||||||
Annualized return on | ||||||||||||||||||||||||||||
Average tangible assets | 1.24 | % | 1.23 | % | 1.00 | % | .92 | % | .78 | % | .64 | % | .50 | % | ||||||||||||||
Average tangible common equity | 19.58 | % | 20.36 | % | 17.34 | % | 16.73 | % | 14.87 | % | 12.08 | % | 9.36 | % | ||||||||||||||
Efficiency ratio (a) | 53.40 | % | 53.06 | % | 55.88 | % | 52.69 | % | 55.21 | % | 60.03 | % | 58.68 | % | ||||||||||||||
Balance sheet data | ||||||||||||||||||||||||||||
In millions, except per share | ||||||||||||||||||||||||||||
Average balances | ||||||||||||||||||||||||||||
Total assets (c) | $ | 67,811 | 68,334 | 68,883 | 68,919 | 69,154 | 66,984 | 64,766 | ||||||||||||||||||||
Total tangible assets (c) | 64,167 | 64,679 | 65,216 | 65,240 | 65,462 | 63,500 | 61,420 | |||||||||||||||||||||
Earning assets | 59,066 | 59,811 | 60,331 | 60,451 | 60,900 | 59,297 | 57,509 | |||||||||||||||||||||
Investment securities | 7,993 | 8,376 | 8,172 | 8,197 | 8,420 | 8,508 | 8,490 | |||||||||||||||||||||
Loans and leases, net of unearned discount | 50,835 | 51,278 | 51,948 | 52,087 | 52,320 | 50,554 | 48,824 | |||||||||||||||||||||
Deposits | 47,530 | 47,932 | 47,394 | 47,365 | 46,720 | 43,846 | 41,487 | |||||||||||||||||||||
Common equity (c) | 7,444 | 7,302 | 7,136 | 6,957 | 6,794 | 6,491 | 6,212 | |||||||||||||||||||||
Tangible common equity (c) | 3,800 | 3,647 | 3,469 | 3,278 | 3,102 | 3,007 | 2,866 | |||||||||||||||||||||
At end of quarter | ||||||||||||||||||||||||||||
Total assets (c) | $ | 68,247 | 68,154 | 68,439 | 68,880 | 68,997 | 69,913 | 64,883 | ||||||||||||||||||||
Total tangible assets (c) | 64,609 | 64,505 | 64,778 | 65,208 | 65,312 | 66,215 | 61,544 | |||||||||||||||||||||
Earning assets | 59,388 | 59,368 | 59,741 | 59,928 | 59,993 | 61,044 | 56,823 | |||||||||||||||||||||
Investment securities | 7,663 | 8,098 | 8,105 | 7,781 | 7,634 | 8,155 | 7,687 | |||||||||||||||||||||
Loans and leases, net of unearned discount | 50,792 | 51,061 | 51,444 | 51,937 | 52,204 | 52,715 | 48,918 | |||||||||||||||||||||
Deposits | 48,655 | 47,523 | 47,538 | 47,450 | 46,862 | 46,755 | 42,477 | |||||||||||||||||||||
Common equity, net of undeclared preferred dividends (c) | 7,488 | 7,360 | 7,177 | 7,017 | 6,879 | 6,669 | 6,329 | |||||||||||||||||||||
Tangible common equity (c) | 3,850 | 3,711 | 3,516 | 3,345 | 3,194 | 2,971 | 2,990 | |||||||||||||||||||||
Equity per common share | 62.69 | 61.77 | 60.40 | 59.31 | 58.22 | 56.51 | 56.95 | |||||||||||||||||||||
Tangible equity per common share | 32.23 | 31.15 | 29.59 | 28.27 | 27.03 | 25.17 | 26.90 | |||||||||||||||||||||
Market price per common share | ||||||||||||||||||||||||||||
High | $ | 95.00 | 96.15 | 85.00 | 69.89 | 67.46 | 61.87 | 59.08 | ||||||||||||||||||||
Low | 81.08 | 74.11 | 66.32 | 59.09 | 50.33 | 43.50 | 29.11 | |||||||||||||||||||||
Closing | 81.81 | 84.95 | 79.38 | 66.89 | 62.32 | 50.93 | 45.24 | |||||||||||||||||||||
(a) | Excludes impact of merger-related gains and expenses and net securities transactions. | |
(b) | Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in table 2. | |
(c) | The difference between total assets and total tangible assets, and common equity and tangible common equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in table 2. |
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2010 Quarters | 2009 Quarters | |||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||
Income statement data | ||||||||||||||||||||||||||||
In thousands, except per share | ||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||
Net income | $ | 192,015 | 188,749 | 150,955 | 136,818 | 127,664 | 51,188 | 64,221 | ||||||||||||||||||||
Amortization of core deposit and other intangible assets (a) | 8,210 | 9,003 | 9,998 | 10,152 | 10,270 | 9,247 | 9,337 | |||||||||||||||||||||
Merger-related gain (a) | — | — | — | — | (17,684 | ) | — | — | ||||||||||||||||||||
Merger-related expenses (a) | — | — | — | 3,806 | 8,511 | 40,370 | 1,476 | |||||||||||||||||||||
Net operating income | $ | 200,225 | 197,752 | 160,953 | 150,776 | 128,761 | 100,805 | 75,034 | ||||||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.48 | 1.46 | 1.15 | 1.04 | .97 | .36 | .49 | ||||||||||||||||||||
Amortization of core deposit and other intangible assets (a) | .07 | .07 | .08 | .09 | .09 | .08 | .09 | |||||||||||||||||||||
Merger-related gain (a) | — | — | — | — | (.15 | ) | — | — | ||||||||||||||||||||
Merger-related expenses (a) | — | — | — | .03 | .07 | .35 | .01 | |||||||||||||||||||||
Diluted net operating earnings per common share | $ | 1.55 | 1.53 | 1.23 | 1.16 | .98 | .79 | .59 | ||||||||||||||||||||
Other expense | ||||||||||||||||||||||||||||
Other expense | $ | 480,133 | 476,068 | 489,362 | 478,451 | 500,056 | 563,710 | 438,346 | ||||||||||||||||||||
Amortization of core deposit and other intangible assets | (13,526 | ) | (14,833 | ) | (16,475 | ) | (16,730 | ) | (16,924 | ) | (15,231 | ) | (15,370 | ) | ||||||||||||||
Merger-related expenses | — | — | — | (6,264 | ) | (14,010 | ) | (66,457 | ) | (2,426 | ) | |||||||||||||||||
Noninterest operating expense | $ | 466,607 | 461,235 | 472,887 | 455,457 | 469,122 | 482,022 | 420,550 | ||||||||||||||||||||
Merger-related expenses | ||||||||||||||||||||||||||||
Salaries and employee benefits | $ | — | — | — | 381 | 870 | 8,768 | 11 | ||||||||||||||||||||
Equipment and net occupancy | — | — | — | 545 | 1,845 | 581 | 4 | |||||||||||||||||||||
Printing, postage and supplies | — | — | — | 233 | 629 | 2,514 | 301 | |||||||||||||||||||||
Other costs of operations | — | — | — | 5,105 | 10,666 | 54,594 | 2,110 | |||||||||||||||||||||
Total | $ | — | — | — | 6,264 | 14,010 | 66,457 | 2,426 | ||||||||||||||||||||
Balance sheet data | ||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||
Average assets | ||||||||||||||||||||||||||||
Average assets | $ | 67,811 | 68,334 | 68,883 | 68,919 | 69,154 | 66,984 | 64,766 | ||||||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,326 | ) | (3,192 | ) | ||||||||||||||
Core deposit and other intangible assets | (146 | ) | (160 | ) | (176 | ) | (191 | ) | (208 | ) | (188 | ) | (176 | ) | ||||||||||||||
Deferred taxes | 27 | 30 | 34 | 37 | 41 | 30 | 22 | |||||||||||||||||||||
Average tangible assets | $ | 64,167 | 64,679 | 65,216 | 65,240 | 65,462 | 63,500 | 61,420 | ||||||||||||||||||||
Average common equity | ||||||||||||||||||||||||||||
Average total equity | $ | 8,181 | 8,036 | 7,868 | 7,686 | 7,521 | 7,127 | 6,780 | ||||||||||||||||||||
Preferred stock | (737 | ) | (734 | ) | (732 | ) | (729 | ) | (727 | ) | (636 | ) | (568 | ) | ||||||||||||||
Average common equity | 7,444 | 7,302 | 7,136 | 6,957 | 6,794 | 6,491 | 6,212 | |||||||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,326 | ) | (3,192 | ) | ||||||||||||||
Core deposit and other intangible assets | (146 | ) | (160 | ) | (176 | ) | (191 | ) | (208 | ) | (188 | ) | (176 | ) | ||||||||||||||
Deferred taxes | 27 | 30 | 34 | 37 | 41 | 30 | 22 | |||||||||||||||||||||
Average tangible common equity | $ | 3,800 | 3,647 | 3,469 | 3,278 | 3,102 | 3,007 | 2,866 | ||||||||||||||||||||
At end of quarter | ||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||
Total assets | $ | 68,247 | 68,154 | 68,439 | 68,880 | 68,997 | 69,913 | 64,883 | ||||||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,192 | ) | ||||||||||||||
Core deposit and other intangible assets | (139 | ) | (152 | ) | (167 | ) | (182 | ) | (199 | ) | (216 | ) | (168 | ) | ||||||||||||||
Deferred taxes | 26 | 28 | 31 | 35 | 39 | 43 | 21 | |||||||||||||||||||||
Total tangible assets | $ | 64,609 | 64,505 | 64,778 | 65,208 | 65,312 | 66,215 | 61,544 | ||||||||||||||||||||
Total common equity | ||||||||||||||||||||||||||||
Total equity | $ | 8,232 | 8,102 | 7,916 | 7,753 | 7,612 | 7,400 | 6,902 | ||||||||||||||||||||
Preferred stock | (738 | ) | (735 | ) | (733 | ) | (730 | ) | (728 | ) | (725 | ) | (568 | ) | ||||||||||||||
Undeclared dividends - preferred stock | (6 | ) | (7 | ) | (6 | ) | (6 | ) | (5 | ) | (6 | ) | (5 | ) | ||||||||||||||
Common equity, net of undeclared preferred dividends | 7,488 | 7,360 | 7,177 | 7,017 | 6,879 | 6,669 | 6,329 | |||||||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,192 | ) | ||||||||||||||
Core deposit and other intangible assets | (139 | ) | (152 | ) | (167 | ) | (182 | ) | (199 | ) | (216 | ) | (168 | ) | ||||||||||||||
Deferred taxes | 26 | 28 | 31 | 35 | 39 | 43 | 21 | |||||||||||||||||||||
Total tangible common equity | $ | 3,850 | 3,711 | 3,516 | 3,345 | 3,194 | 2,971 | 2,990 | ||||||||||||||||||||
(a) | After any related tax effect. |
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2010 Third Quarter | 2010 Second Quarter | 2010 First Quarter | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Average balance in millions; interest in thousands | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||||||
Loans and leases, net of unearned discount* | ||||||||||||||||||||||||||||||||||||
Commercial, financial, etc. | $ | 12,856 | $ | 128,578 | 3.97 | % | 13,096 | 131,460 | 4.03 | % | 13,408 | 128,147 | 3.88 | % | ||||||||||||||||||||||
Real estate — commercial | 20,612 | 250,038 | 4.85 | 20,759 | 240,728 | 4.64 | 20,867 | 233,561 | 4.48 | |||||||||||||||||||||||||||
Real estate — consumer | 5,680 | 75,312 | 5.30 | 5,653 | 75,643 | 5.35 | 5,742 | 76,283 | 5.31 | |||||||||||||||||||||||||||
Consumer | 11,687 | 153,763 | 5.22 | 11,770 | 153,728 | 5.24 | 11,931 | 154,688 | 5.26 | |||||||||||||||||||||||||||
Total loans and leases, net | 50,835 | 607,691 | 4.74 | 51,278 | 601,559 | 4.71 | 51,948 | 592,679 | 4.63 | |||||||||||||||||||||||||||
Interest-bearing deposits at banks | 92 | 34 | .15 | 81 | 5 | .02 | 127 | 6 | .02 | |||||||||||||||||||||||||||
Federal funds sold and agreements to resell securities | 64 | 41 | .26 | 10 | 11 | .41 | 24 | 13 | .22 | |||||||||||||||||||||||||||
Trading account | 82 | 134 | .65 | 66 | 159 | .96 | 60 | 121 | .80 | |||||||||||||||||||||||||||
Investment securities** | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | 4,541 | 48,018 | 4.20 | 4,758 | 51,282 | 4.32 | 4,396 | 49,131 | 4.53 | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | 271 | 3,740 | 5.48 | 272 | 3,963 | 5.85 | 268 | 3,741 | 5.66 | |||||||||||||||||||||||||||
Other | 3,181 | 32,107 | 4.00 | 3,346 | 33,910 | 4.07 | 3,508 | 36,618 | 4.23 | |||||||||||||||||||||||||||
Total investment securities | 7,993 | 83,865 | 4.16 | 8,376 | 89,155 | 4.27 | 8,172 | 89,490 | 4.44 | |||||||||||||||||||||||||||
Total earning assets | 59,066 | 691,765 | 4.65 | 59,811 | 690,889 | 4.63 | 60,331 | 682,309 | 4.59 | |||||||||||||||||||||||||||
Allowance for credit losses | (908 | ) | (905 | ) | (900 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 1,081 | 1,068 | 1,136 | |||||||||||||||||||||||||||||||||
Other assets | 8,572 | 8,360 | 8,316 | |||||||||||||||||||||||||||||||||
Total assets | $ | 67,811 | 68,334 | 68,883 | ||||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 592 | 219 | .15 | 619 | 219 | .14 | 585 | 200 | .14 | ||||||||||||||||||||||||||
Savings deposits | 26,177 | 21,453 | .33 | 25,942 | 21,464 | .33 | 25,068 | 20,449 | .33 | |||||||||||||||||||||||||||
Time deposits | 6,312 | 23,309 | 1.46 | 6,789 | 26,254 | 1.55 | 7,210 | 29,446 | 1.66 | |||||||||||||||||||||||||||
Deposits at foreign office | 802 | 315 | .16 | 972 | 376 | .16 | 1,237 | 325 | .11 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 33,883 | 45,296 | .53 | 34,322 | 48,313 | .56 | 34,100 | 50,420 | .60 | |||||||||||||||||||||||||||
Short-term borrowings | 1,858 | 760 | .16 | 1,763 | 726 | .17 | 2,367 | 887 | .15 | |||||||||||||||||||||||||||
Long-term borrowings | 8,948 | 69,976 | 3.10 | 9,454 | 68,518 | 2.91 | 10,160 | 68,745 | 2.74 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 44,689 | 116,032 | 1.03 | 45,539 | 117,557 | 1.04 | 46,627 | 120,052 | 1.04 | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 13,647 | 13,610 | 13,294 | |||||||||||||||||||||||||||||||||
Other liabilities | 1,294 | 1,149 | 1,094 | |||||||||||||||||||||||||||||||||
Total liabilities | 59,630 | 60,298 | 61,015 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 8,181 | 8,036 | 7,868 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 67,811 | 68,334 | 68,883 | ||||||||||||||||||||||||||||||||
Net interest spread | 3.62 | 3.59 | 3.55 | |||||||||||||||||||||||||||||||||
Contribution of interest-free funds | .25 | .25 | .23 | |||||||||||||||||||||||||||||||||
Net interest income/margin on earning assets | $ | 575,733 | 3.87 | % | 573,332 | 3.84 | % | 562,257 | 3.78 | % | ||||||||||||||||||||||||||
* | Includes nonaccrual loans. (continued) | |
** | Includes available for sale securities at amortized cost. |
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2009 Fourth Quarter | 2009 Third Quarter | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Average balance in millions; interest in thousands | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||
Loans and leases, net of unearned discount* | ||||||||||||||||||||||||
Commercial, financial, etc. | $ | 13,527 | $ | 132,068 | 3.87 | % | 13,801 | 131,433 | 3.78 | % | ||||||||||||||
Real estate — commercial | 20,950 | 234,541 | 4.48 | 20,843 | 233,370 | 4.48 | ||||||||||||||||||
Real estate — consumer | 5,457 | 73,290 | 5.37 | 5,429 | 73,752 | 5.43 | ||||||||||||||||||
Consumer | 12,153 | 162,832 | 5.32 | 12,247 | 165,665 | 5.37 | ||||||||||||||||||
Total loans and leases, net | 52,087 | 602,731 | 4.59 | 52,320 | 604,220 | 4.58 | ||||||||||||||||||
Interest-bearing deposits at banks | 74 | 14 | .08 | 66 | 7 | .04 | ||||||||||||||||||
Federal funds sold and agreements to resell securities | 23 | 11 | .19 | 11 | 17 | .58 | ||||||||||||||||||
Trading account | 70 | 117 | .66 | 83 | 169 | .82 | ||||||||||||||||||
Investment securities** | ||||||||||||||||||||||||
U.S. Treasury and federal agencies | 3,880 | 44,984 | 4.60 | 3,803 | 45,216 | 4.72 | ||||||||||||||||||
Obligations of states and political subdivisions | 270 | 4,084 | 5.99 | 278 | 3,965 | 5.66 | ||||||||||||||||||
Other | 4,047 | 46,615 | 4.57 | 4,339 | 52,794 | 4.83 | ||||||||||||||||||
Total investment securities | 8,197 | 95,683 | 4.63 | 8,420 | 101,975 | 4.81 | ||||||||||||||||||
Total earning assets | 60,451 | 698,556 | 4.58 | 60,900 | 706,388 | 4.60 | ||||||||||||||||||
Allowance for credit losses | (890 | ) | (882 | ) | ||||||||||||||||||||
Cash and due from banks | 1,184 | 1,135 | ||||||||||||||||||||||
Other assets | 8,174 | 8,001 | ||||||||||||||||||||||
Total assets | $ | 68,919 | 69,154 | |||||||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||
NOW accounts | $ | 579 | 261 | .18 | 541 | 288 | .21 | |||||||||||||||||
Savings deposits | 24,237 | 22,190 | .36 | 23,367 | 22,076 | .37 | ||||||||||||||||||
Time deposits | 8,304 | 39,516 | 1.89 | 9,246 | 50,678 | 2.17 | ||||||||||||||||||
Deposits at foreign office | 1,300 | 353 | .11 | 1,444 | 481 | .13 | ||||||||||||||||||
Total interest-bearing deposits | 34,420 | 62,320 | .72 | 34,598 | 73,523 | .84 | ||||||||||||||||||
Short-term borrowings | 2,308 | 1,002 | .17 | 2,663 | 1,764 | .26 | ||||||||||||||||||
Long-term borrowings | 10,253 | 70,628 | 2.73 | 11,008 | 77,651 | 2.80 | ||||||||||||||||||
Total interest-bearing liabilities | 46,981 | 133,950 | 1.13 | 48,269 | 152,938 | 1.26 | ||||||||||||||||||
Noninterest-bearing deposits | 12,945 | 12,122 | ||||||||||||||||||||||
Other liabilities | 1,307 | 1,242 | ||||||||||||||||||||||
Total liabilities | 61,233 | 61,633 | ||||||||||||||||||||||
Stockholders’ equity | 7,686 | 7,521 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 68,919 | 69,154 | |||||||||||||||||||||
Net interest spread | 3.45 | 3.34 | ||||||||||||||||||||||
Contribution of interest-free funds | .26 | .27 | ||||||||||||||||||||||
Net interest income/margin on earning assets | $ | 564,606 | 3.71 | % | 553,450 | 3.61 | % | |||||||||||||||||
* | Includes nonaccrual loans. | |
** | Includes available for sale securities at amortized cost. |
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• | Legislative actions taken now or in the future may have a significant adverse effect on M&T’s operations. A number of regulatory initiatives directed at the financial services industry have been proposed in recent months. One of those initiatives, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act represents a comprehensive overhaul of the financial services industry within the United States and will require the newly created Bureau of Consumer Financial Protection and other federal agencies to implement many new rules. At this time, it is difficult to predict the extent to which the Dodd-Frank Act or the forthcoming rules and regulations will impact M&T’s business. It is expected, however, that at a minimum they will result in increased costs and therefore may adversely impact M&T’s business, results of operations, financial condition and liquidity. | ||
Another such initiative relates to the restricted ability of financial institutions to impose overdraft charges on certain customer transactions. Beginning on July 1, 2010 for new customers and August 15, 2010 for existing customers, federal rules prohibit a financial institution from assessing a fee to complete an ATM withdrawal or one- time debit card transaction which will cause an overdraft unless the customer consents in advance. Such rules have resulted in a decline in |
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service charges on deposit accounts as discussed in more detail under the caption “Other Income” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” |
Issuer Purchases of Equity Securities | ||||||||||||||||
(d)Maximum | ||||||||||||||||
(c)Total | Number (or | |||||||||||||||
Number of | Approximate | |||||||||||||||
Shares | Dollar Value) | |||||||||||||||
(or Units) | of Shares | |||||||||||||||
Purchased | (or Units) | |||||||||||||||
(a)Total | as Part of | that may yet | ||||||||||||||
Number | (b)Average | Publicly | be Purchased | |||||||||||||
of Shares | Price Paid | Announced | Under the | |||||||||||||
(or Units) | per Share | Plans or | Plans or | |||||||||||||
Period | Purchased(1) | (or Unit) | Programs | Programs (2) | ||||||||||||
July 1 - July 31, 2010 | 1,549 | $ | 86.97 | — | 2,181,500 | |||||||||||
August 1 - August 31, 2010 | 221 | 89.31 | — | 2,181,500 | ||||||||||||
September 1 - September 30, 2010 | 86 | 88.36 | — | 2,181,500 | ||||||||||||
Total | 1,856 | $ | 87.31 | — | ||||||||||||
(1) | The total number of shares purchased during the periods indicated includes shares deemed to have been received from employees who exercised stock options by attesting to previously acquired common shares in satisfaction of the exercise price or shares received from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations, as is permitted under M&T’s stock-based compensation plans. | |
(2) | On February 22, 2007, M&T announced a program to purchase up to 5,000,000 shares of its common stock. No shares were purchased under such program during the periods indicated. |
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Exhibit | ||
No. | ||
31.1 | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
31.2 | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
32.1 | Certification of Chief Executive Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
32.2 | Certification of Chief Financial Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase. | |
101.DEF* | XBRL Taxonomy Definition Linkbase. |
* | As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
M&T BANK CORPORATION | ||||
Date: November 5, 2010 | By: | /s/ René F. Jones | ||
René F. Jones | ||||
Executive Vice President and Chief Financial Officer |
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Exhibit | ||
No. | ||
31.1 | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
31.2 | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
32.1 | Certification of Chief Executive Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
32.2 | Certification of Chief Financial Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase. | |
101.DEF* | XBRL Taxonomy Definition Linkbase. |
* | As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
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