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 (State or other jurisdiction of incorporation or organization) | 16-0968385 (I.R.S. Employer Identification No.) |
One M & T Plaza Buffalo, New York (Address of principal executive offices) | 14203 (Zip code) |
(Registrant’s telephone number, including area code)
Large accelerated filerþ | Accelerated filero | Non-accelerated filero(Do not check if a smaller reporting company) | Smaller reporting companyo |
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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June 30, | December 31, | |||||||
Dollars in thousands, except per share | 2011 | 2010 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 1,297,335 | 908,755 | |||||
Interest-bearing deposits at banks | 2,275,450 | 101,222 | ||||||
Federal funds sold | 35,580 | 25,000 | ||||||
Agreement to resell securities | 380,000 | — | ||||||
Trading account | 502,986 | 523,834 | ||||||
Investment securities (includes pledged securities that can be sold or repledged of $2,040,940 at June 30, 2011; $1,937,817 at December 31, 2010) | ||||||||
Available for sale (cost: $5,026,881 at June 30, 2011; $5,494,377 at December 31, 2010) | 4,890,489 | 5,413,492 | ||||||
Held to maturity (fair value: $1,143,496 at June 30, 2011; $1,225,253 at December 31, 2010) | 1,219,686 | 1,324,339 | ||||||
Other (fair value: $382,090 at June 30, 2011; $412,709 at December 31, 2010) | 382,090 | 412,709 | ||||||
Total investment securities | 6,492,265 | 7,150,540 | ||||||
Loans and leases | 58,844,512 | 52,315,942 | ||||||
Unearned discount | (303,283 | ) | (325,560 | ) | ||||
Loans and leases, net of unearned discount | 58,541,229 | 51,990,382 | ||||||
Allowance for credit losses | (907,589 | ) | (902,941 | ) | ||||
Loans and leases, net | 57,633,640 | 51,087,441 | ||||||
Premises and equipment | 567,107 | 435,837 | ||||||
Goodwill | 3,524,625 | 3,524,625 | ||||||
Core deposit and other intangible assets | 275,057 | 125,917 | ||||||
Accrued interest and other assets | 4,743,109 | 4,138,092 | ||||||
Total assets | $ | 77,727,154 | 68,021,263 | |||||
Liabilities | ||||||||
Noninterest-bearing deposits | $ | 18,598,828 | 14,557,568 | |||||
NOW accounts | 1,687,184 | 1,393,349 | ||||||
Savings deposits | 30,712,851 | 26,431,281 | ||||||
Time deposits | 7,678,799 | 5,817,170 | ||||||
Deposits at Cayman Islands office | 551,553 | 1,605,916 | ||||||
Total deposits | 59,229,215 | 49,805,284 | ||||||
Federal funds purchased and agreements to repurchase securities | 452,091 | 866,555 | ||||||
Other short-term borrowings | 115,053 | 80,877 | ||||||
Accrued interest and other liabilities | 1,557,685 | 1,070,701 | ||||||
Long-term borrowings | 7,128,916 | 7,840,151 | ||||||
Total liabilities | 68,482,960 | 59,663,568 | ||||||
Shareholders’ equity | ||||||||
Preferred stock, $1.00 par, 1,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: 381,500 shares at June 30, 2011 and 778,000 shares at December 31, 2010; Liquidation preference of $10,000 per share: 50,000 shares at June 30, 2011 and none at December 31, 2010 | 860,901 | 740,657 | ||||||
Common stock, $.50 par, 250,000,000 shares authorized, 125,554,637 shares issued at June 30, 2011; 120,396,611 shares issued at December 31, 2010 | 62,777 | 60,198 | ||||||
Common stock issuable, 67,634 shares at June 30, 2011; 71,345 shares at December 31, 2010 | 4,030 | 4,189 | ||||||
Additional paid-in capital | 2,800,002 | 2,398,615 | ||||||
Retained earnings | 5,745,253 | 5,426,701 | ||||||
Accumulated other comprehensive income (loss), net | (228,769 | ) | (205,220 | ) | ||||
Treasury stock — common, at cost — none at June 30, 2011; 693,974 shares at December 31, 2010 | — | (67,445 | ) | |||||
Total shareholders’ equity | 9,244,194 | 8,357,695 | ||||||
Total liabilities and shareholders’ equity | $ | 77,727,154 | 68,021,263 | |||||
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Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||
In thousands, except per share | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Interest income | Loans and leases, including fees | $ | 624,247 | 596,919 | $ | 1,218,279 | 1,185,046 | |||||||||||||
Deposits at banks | 479 | 5 | 515 | 11 | ||||||||||||||||
Federal funds sold | 10 | 9 | 28 | 20 | ||||||||||||||||
Agreements to resell securities | 127 | 2 | 128 | 4 | ||||||||||||||||
Trading account | 282 | 110 | 670 | 193 | ||||||||||||||||
Investment securities | ||||||||||||||||||||
Fully taxable | 60,827 | 85,232 | 131,489 | 170,879 | ||||||||||||||||
Exempt from federal taxes | 2,281 | 2,507 | 4,627 | 5,017 | ||||||||||||||||
Total interest income | 688,253 | 684,784 | 1,355,736 | 1,361,170 | ||||||||||||||||
Interest expense | NOW accounts | 274 | 219 | 476 | 419 | |||||||||||||||
Savings deposits | 20,757 | 21,464 | 39,996 | 41,913 | ||||||||||||||||
Time deposits | 19,310 | 26,254 | 38,381 | 55,700 | ||||||||||||||||
Deposits at Cayman Islands office | 193 | 376 | 587 | 701 | ||||||||||||||||
Short-term borrowings | 147 | 726 | 639 | 1,613 | ||||||||||||||||
Long-term borrowings | 61,370 | 68,518 | 120,651 | 137,263 | ||||||||||||||||
Total interest expense | 102,051 | 117,557 | 200,730 | 237,609 | ||||||||||||||||
Net interest income | 586,202 | 567,227 | 1,155,006 | 1,123,561 | ||||||||||||||||
Provision for credit losses | 63,000 | 85,000 | 138,000 | 190,000 | ||||||||||||||||
Net interest income after provision for credit losses | 523,202 | 482,227 | 1,017,006 | 933,561 | ||||||||||||||||
Other income | Mortgage banking revenues | 42,151 | 47,084 | 87,307 | 88,560 | |||||||||||||||
Service charges on deposit accounts | 119,716 | 128,976 | 229,447 | 249,271 | ||||||||||||||||
Trust income | 75,592 | 30,169 | 104,913 | 61,097 | ||||||||||||||||
Brokerage services income | 14,926 | 12,788 | 29,222 | 25,894 | ||||||||||||||||
Trading account and foreign exchange gains | 6,798 | 3,797 | 15,077 | 8,496 | ||||||||||||||||
Gain on bank investment securities | 110,744 | 10 | 150,097 | 469 | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (33,211 | ) | (21,079 | ) | (42,725 | ) | (50,566 | ) | ||||||||||||
Portion of OTTI losses recognized in other comprehensive income (before taxes) | 6,681 | (1,301 | ) | 154 | 1,384 | |||||||||||||||
Net OTTI losses recognized in earnings | (26,530 | ) | (22,380 | ) | (42,571 | ) | (49,182 | ) | ||||||||||||
Equity in earnings of Bayview Lending Group LLC | (5,223 | ) | (6,179 | ) | (11,901 | ) | (11,893 | ) | ||||||||||||
Other revenues from operations | 163,482 | 79,292 | 254,485 | 158,551 | ||||||||||||||||
Total other income | 501,656 | 273,557 | 816,076 | 531,263 | ||||||||||||||||
Other expense | Salaries and employee benefits | 300,178 | 245,861 | 566,268 | 509,907 | |||||||||||||||
Equipment and net occupancy | 59,670 | 55,431 | 116,333 | 110,832 | ||||||||||||||||
Printing, postage and supplies | 9,723 | 8,549 | 18,925 | 17,592 | ||||||||||||||||
Amortization of core deposit and other intangible assets | 14,740 | 14,833 | 27,054 | 31,308 | ||||||||||||||||
FDIC assessments | 26,609 | 21,608 | 45,703 | 42,956 | ||||||||||||||||
Other costs of operations | 165,975 | 129,786 | 302,183 | 252,835 | ||||||||||||||||
Total other expense | 576,895 | 476,068 | 1,076,466 | 965,430 | ||||||||||||||||
Income before taxes | 447,963 | 279,716 | 756,616 | 499,394 | ||||||||||||||||
Income taxes | 125,605 | 90,967 | 227,985 | 159,690 | ||||||||||||||||
Net income | $ | 322,358 | 188,749 | $ | 528,631 | 339,704 | ||||||||||||||
Net income available to common shareholders | ||||||||||||||||||||
Basic | $ | 297,164 | 173,588 | $ | 487,283 | 310,026 | ||||||||||||||
Diluted | 297,179 | 173,597 | 487,308 | 310,037 | ||||||||||||||||
Net income per common share | ||||||||||||||||||||
Basic | $ | 2.43 | 1.47 | $ | 4.04 | 2.63 | ||||||||||||||
Diluted | 2.42 | 1.46 | 4.02 | 2.61 | ||||||||||||||||
Cash dividends per common share | $ | .70 | .70 | $ | 1.40 | 1.40 | ||||||||||||||
Average common shares outstanding | ||||||||||||||||||||
Basic | 122,181 | 118,054 | 120,699 | 117,910 | ||||||||||||||||
Diluted | 122,796 | 118,878 | 121,332 | 118,569 |
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Six months ended June 30 | ||||||||||||
In thousands | 2011 | 2010 | ||||||||||
Cash flows from operating activities | Net income | $ | 528,631 | 339,704 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
Provision for credit losses | 138,000 | 190,000 | ||||||||||
Depreciation and amortization of premises and equipment | 38,370 | 34,045 | ||||||||||
Amortization of capitalized servicing rights | 26,742 | 28,908 | ||||||||||
Amortization of core deposit and other intangible assets | 27,054 | 31,308 | ||||||||||
Provision for deferred income taxes | (18,201 | ) | (22,923 | ) | ||||||||
Asset write-downs | 48,032 | 51,510 | ||||||||||
Net (gain) loss on sales of assets | (181,318 | ) | 1,420 | |||||||||
Net change in accrued interest receivable, payable | 4,035 | (2,248 | ) | |||||||||
Net change in other accrued income and expense | 23,766 | 155,403 | ||||||||||
Net change in loans originated for sale | 167,857 | 227,734 | ||||||||||
Net change in trading account assets and liabilities | 60,210 | (6,091 | ) | |||||||||
Net cash provided by operating activities | 863,178 | 1,028,770 | ||||||||||
Cash flows from investing activities | Proceeds from sales of investment securities | |||||||||||
Available for sale | 1,909,223 | 14,870 | ||||||||||
Other | 71,729 | 49,463 | ||||||||||
Proceeds from maturities of investment securities | ||||||||||||
Available for sale | 751,314 | 729,562 | ||||||||||
Held to maturity | 114,913 | 77,524 | ||||||||||
Purchases of investment securities | ||||||||||||
Available for sale | (1,609,272 | ) | (401,246 | ) | ||||||||
Held to maturity | (13,151 | ) | (987,993 | ) | ||||||||
Other | (1,249 | ) | (6,781 | ) | ||||||||
Net (increase) decrease in loans and leases | (454,782 | ) | 757,032 | |||||||||
Net decrease in interest-bearing deposits at banks | 432,037 | 15,509 | ||||||||||
Net increase in agreements to resell securities | (365,000 | ) | — | |||||||||
Other investments, net | (10,249 | ) | (21,152 | ) | ||||||||
Additions to capitalized servicing rights | (6,935 | ) | (95 | ) | ||||||||
Capital expenditures, net | (13,976 | ) | (23,403 | ) | ||||||||
Acquisitions, net of cash acquired | ||||||||||||
Banks and bank holding companies | 178,940 | — | ||||||||||
Purchase of Wilmington Trust Corporation preferred stock | (330,000 | ) | — | |||||||||
Other, net | 186,771 | 40,723 | ||||||||||
Net cash provided by investing activities | 840,313 | 244,013 | ||||||||||
Cash flows from financing activities | Net increase in deposits | 566,316 | 82,464 | |||||||||
Net decrease in short-term borrowings | (528,035 | ) | (283,616 | ) | ||||||||
Payments on long-term borrowings | (1,331,316 | ) | (1,106,386 | ) | ||||||||
Proceeds from issuance of preferred stock | 495,000 | — | ||||||||||
Redemption of preferred stock | (370,000 | ) | — | |||||||||
Dividends paid — common | (173,135 | ) | (167,090 | ) | ||||||||
Dividends paid — preferred | (20,046 | ) | (20,113 | ) | ||||||||
Other, net | 56,885 | 31,502 | ||||||||||
Net cash used by financing activities | (1,304,331 | ) | (1,463,239 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 399,160 | (190,456 | ) | |||||||||
Cash and cash equivalents at beginning of period | 933,755 | 1,246,342 | ||||||||||
Cash and cash equivalents at end of period | $ | 1,332,915 | 1,055,886 | |||||||||
Supplemental disclosure of cash flow information | Interest received during the period | $ | 1,366,981 | 1,382,432 | ||||||||
Interest paid during the period | 205,514 | 248,214 | ||||||||||
Income taxes paid during the period | 266,240 | 145,202 | ||||||||||
Supplemental schedule of noncash investing and financing activities | Real estate acquired in settlement of loans Acquisitions: | $ | 45,774 | 141,168 | ||||||||
Fair value of: | ||||||||||||
Assets acquired (noncash) | 10,666,102 | — | ||||||||||
Liabilities assumed | 10,044,555 | — | ||||||||||
Common stock issued | 405,557 | — | ||||||||||
Retirement of Wilmington Trust Corporation preferred stock | 330,000 | — | ||||||||||
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 |
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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 | ||||||||||||||||||||||||
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 | — | — | — | — | 339,704 | — | — | 339,704 | ||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | ||||||||||||||||||||||||||||||||
Unrealized gains on investment securities | — | — | — | — | — | 136,766 | — | 136,766 | ||||||||||||||||||||||||
Defined benefit plans liability adjustment | — | — | — | — | — | 2,175 | — | 2,175 | ||||||||||||||||||||||||
Unrealized gain on terminated cash flow hedge | — | — | — | — | — | (141 | ) | — | (141 | ) | ||||||||||||||||||||||
478,504 | ||||||||||||||||||||||||||||||||
Preferred stock cash dividends | — | — | — | — | (20,113 | ) | — | — | (20,113 | ) | ||||||||||||||||||||||
Amortization of preferred stock discount | 5,115 | — | — | — | (5,115 | ) | — | — | — | |||||||||||||||||||||||
Repayment of management stock ownership program receivable | — | — | — | 1,838 | — | — | — | 1,838 | ||||||||||||||||||||||||
Stock-based compensation plans: | ||||||||||||||||||||||||||||||||
Compensation expense, net | — | — | — | (13,571 | ) | — | — | 40,886 | 27,315 | |||||||||||||||||||||||
Exercises of stock options, net | — | — | — | (21,997 | ) | — | — | 49,400 | 27,403 | |||||||||||||||||||||||
Directors’ stock plan | — | — | — | (232 | ) | — | — | 787 | 555 | |||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | — | (265 | ) | (292 | ) | (96 | ) | — | 604 | (49 | ) | ||||||||||||||||||||
Other | — | — | — | 914 | — | — | — | 914 | ||||||||||||||||||||||||
Common stock cash dividends — $1.40 per share | — | — | — | — | (167,430 | ) | — | — | (167,430 | ) | ||||||||||||||||||||||
Balance — June 30, 2010 | $ | 735,350 | 60,198 | 4,077 | 2,409,607 | 5,223,834 | (197,197 | ) | (134,025 | ) | 8,101,844 | |||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||
Balance — January 1, 2011 | $ | 740,657 | 60,198 | 4,189 | 2,398,615 | 5,426,701 | (205,220 | ) | (67,445 | ) | 8,357,695 | |||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 528,631 | — | — | 528,631 | ||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | ||||||||||||||||||||||||||||||||
Unrealized losses on investment securities | — | — | — | — | — | (27,892 | ) | — | (27,892 | ) | ||||||||||||||||||||||
Defined benefit plans liability adjustment | — | — | — | — | — | 4,288 | — | 4,288 | ||||||||||||||||||||||||
Unrealized gain on terminated cash flow hedge | — | — | — | — | — | (141 | ) | — | (141 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 196 | — | 196 | ||||||||||||||||||||||||
505,082 | ||||||||||||||||||||||||||||||||
Acquisition of Wilmington Trust Corporation - common stock issued | — | 2,348 | — | 403,209 | — | — | — | 405,557 | ||||||||||||||||||||||||
Partial redemption of Series A preferred stock | (370,000 | ) | — | — | — | — | — | — | (370,000 | ) | ||||||||||||||||||||||
Conversion of Series B preferred stock into 433,144 shares of common stock | (26,500 | ) | 192 | — | 21,754 | — | — | 4,554 | — | |||||||||||||||||||||||
Issuance of Series D preferred stock | 500,000 | — | — | (5,000 | ) | — | — | — | 495,000 | |||||||||||||||||||||||
Preferred stock cash dividends | — | — | — | — | (20,046 | ) | — | — | (20,046 | ) | ||||||||||||||||||||||
Amortization of preferred stock discount | 16,744 | — | — | — | (16,744 | ) | — | — | — | |||||||||||||||||||||||
Stock-based compensation plans: | ||||||||||||||||||||||||||||||||
Compensation expense, net | — | 27 | — | (10,382 | ) | — | — | 31,666 | 21,311 | |||||||||||||||||||||||
Exercises of stock options, net | — | 12 | — | (8,948 | ) | — | — | 30,106 | 21,170 | |||||||||||||||||||||||
Directors’ stock plan | — | — | — | (49 | ) | — | — | 612 | 563 | |||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | — | (159 | ) | (219 | ) | (94 | ) | — | 507 | 35 | |||||||||||||||||||||
Other | — | — | — | 1,022 | — | — | — | 1,022 | ||||||||||||||||||||||||
Common stock cash dividends — $1.40 per share | — | — | — | — | (173,195 | ) | — | — | (173,195 | ) | ||||||||||||||||||||||
Balance — June 30, 2011 | $ | 860,901 | 62,777 | 4,030 | 2,800,002 | 5,745,253 | (228,769 | ) | — | 9,244,194 | ||||||||||||||||||||||
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May 16, 2011 | ||||
(in thousands) | ||||
Contractually required principal and interest at acquisition | $ | 8,336,755 | ||
Contractual cash flows not expected to be collected | (1,209,749 | ) | ||
Expected cash flows at acquisition | 7,127,006 | |||
Interest component of expected cash flows | (716, 576 | ) | ||
Basis in acquired loans at acquisition — estimated fair value | $ | 6,410,430 | ||
(in thousands) | ||||
Purchase price: | ||||
Value of: | ||||
Common shares issued (4,694,486 shares) | $ | 405,557 | ||
Preferred stock purchased from U.S. Treasury | 330,000 | |||
Total purchase price | 735,557 | |||
Identifiable assets: | ||||
Cash and due from banks | 178,940 | |||
Interest-bearing deposits at banks | 2,606,265 | |||
Other short-term investments | 57,817 | |||
Investment securities | 510,390 | |||
Loans and leases | 6,410,430 | |||
Core deposit and other intangibles | 176,194 | |||
Other assets | 905,006 | |||
Total identifiable assets | 10,845,042 | |||
Liabilities: | ||||
Deposits | 8,864,161 | |||
Short-term borrowings | 147,752 | |||
Long-term borrowings | 600,830 | |||
Other liabilities | 431,812 | |||
Total liabilities | 10,044,555 | |||
Net gain resulting from acquisition | $ | 64,930 | ||
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Actual since | Pro forma | |||||||||||
acquisition | Six months ended | |||||||||||
through | June 30, | |||||||||||
June 30, 2011 | 2011 | 2010 | ||||||||||
(in thousands) | ||||||||||||
Total revenues (a) | $ | 79,140 | 2,208,188 | 2,002,497 | ||||||||
Net income | 3,068 | 480,948 | 189,246 |
(a) | Represents net interest income plus other income. |
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Three months ended | Six months ended | |||||||
June 30, 2011 | June 30, 2011 | |||||||
(in thousands) | ||||||||
Salaries and employee benefits | $ | 15,305 | $ | 15,312 | ||||
Equipment and net occupancy | 25 | 104 | ||||||
Printing, postage and supplies | 318 | 465 | ||||||
Other costs of operations | 21,348 | 25,410 | ||||||
$ | 36,996 | $ | 41,291 | |||||
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Gross | Gross | |||||||||||||||
Amortized | unrealized | unrealized | Estimated | |||||||||||||
cost | gains | losses | fair value | |||||||||||||
(in thousands) | ||||||||||||||||
June 30, 2011 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 111,836 | 1,119 | 2 | $ | 112,953 | ||||||||||
Obligations of states and political subdivisions | 66,709 | 821 | 39 | 67,491 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 2,965,034 | 60,965 | 2,981 | 3,023,018 | ||||||||||||
Privately issued residential | 1,507,748 | 9,720 | 211,266 | 1,306,202 | ||||||||||||
Privately issued commercial | 21,094 | — | 3,861 | 17,233 | ||||||||||||
Collateralized debt obligations | 44,268 | 18,800 | 1,467 | 61,601 | ||||||||||||
Other debt securities | 217,812 | 5,738 | 28,014 | 195,536 | ||||||||||||
Equity securities | 92,380 | 14,526 | 451 | 106,455 | ||||||||||||
5,026,881 | 111,689 | 248,081 | 4,890,489 | |||||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 184,595 | 4,239 | 149 | 188,685 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 730,785 | 21,978 | — | 752,763 | ||||||||||||
Privately issued | 292,034 | 357 | 102,615 | 189,776 | ||||||||||||
Other debt securities | 12,272 | — | — | 12,272 | ||||||||||||
1,219,686 | 26,574 | 102,764 | 1,143,496 | |||||||||||||
Other securities | 382,090 | — | — | 382,090 | ||||||||||||
Total | $ | 6,628,657 | 138,263 | 350,845 | $ | 6,416,075 | ||||||||||
December 31, 2010 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 61,772 | 1,680 | 18 | $ | 63,434 | ||||||||||
Obligations of states and political subdivisions | 59,921 | 561 | 57 | 60,425 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,146,054 | 161,298 | 1,111 | 3,306,241 | ||||||||||||
Privately issued residential | 1,677,064 | 10,578 | 252,081 | 1,435,561 | ||||||||||||
Privately issued commercial | 25,357 | — | 2,950 | 22,407 | ||||||||||||
Collateralized debt obligations | 95,080 | 24,754 | 9,078 | 110,756 | ||||||||||||
Other debt securities | 310,017 | 26,883 | 38,000 | 298,900 | ||||||||||||
Equity securities | 119,112 | 5,098 | 8,442 | 115,768 | ||||||||||||
5,494,377 | 230,852 | 311,737 | 5,413,492 | |||||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 191,119 | 1,944 | 694 | 192,369 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 808,108 | 14,061 | — | 822,169 | ||||||||||||
Privately issued | 312,537 | — | 114,397 | 198,140 | ||||||||||||
Other debt securities | 12,575 | — | — | 12,575 | ||||||||||||
1,324,339 | 16,005 | 115,091 | 1,225,253 | |||||||||||||
Other securities | 412,709 | — | — | 412,709 | ||||||||||||
Total | $ | 7,231,425 | 246,857 | 426,828 | $ | 7,051,454 | ||||||||||
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Three months ended June 30 | ||||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 322,719 | 308,017 | |||||
Additions for credit losses not previously recognized | 26,530 | 10,387 | ||||||
Reductions for increases in cash flows | (4,881 | ) | (173 | ) | ||||
Reductions for realized losses | (46,227 | ) | (3,968 | ) | ||||
Ending balance | $ | 298,141 | 314,263 | |||||
Six months ended June 30 | ||||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 327,912 | 284,513 | |||||
Additions for credit losses not previously recognized | 42,571 | 37,189 | ||||||
Reductions for increases in cash flows | (5,020 | ) | (342 | ) | ||||
Reductions for realized losses | (67,322 | ) | (7,097 | ) | ||||
Ending balance | $ | 298,141 | 314,263 | |||||
Estimated | ||||||||
Amortized cost | fair value | |||||||
(in thousands) | ||||||||
Debt securities available for sale: | ||||||||
Due in one year or less | $ | 26,403 | 26,521 | |||||
Due after one year through five years | 119,212 | 121,204 | ||||||
Due after five years through ten years | 16,687 | 18,081 | ||||||
Due after ten years | 278,323 | 271,775 | ||||||
440,625 | 437,581 | |||||||
Mortgage-backed securities available for sale | 4,493,876 | 4,346,453 | ||||||
$ | 4,934,501 | 4,784,034 | ||||||
Debt securities held to maturity: | ||||||||
Due in one year or less | $ | 23,428 | 23,607 | |||||
Due after one year through five years | 20,126 | 20,775 | ||||||
Due after five years through ten years | 134,952 | 138,114 | ||||||
Due after ten years | 18,361 | 18,461 | ||||||
196,867 | 200,957 | |||||||
Mortgage-backed securities held to maturity | 1,022,819 | 942,539 | ||||||
$ | 1,219,686 | 1,143,496 | ||||||
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Less than 12 months | 12 months or more | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
Fair value | losses | Fair value | losses | |||||||||||||
(in thousands) | ||||||||||||||||
June 30, 2011 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 1,903 | (2 | ) | — | — | ||||||||||
Obligations of states and political subdivisions | 1,444 | (6 | ) | 2,323 | (33 | ) | ||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 632,513 | (2,937 | ) | 3,010 | (44 | ) | ||||||||||
Privately issued residential | 146,893 | (1,859 | ) | 859,930 | (209,407 | ) | ||||||||||
Privately issued commercial | — | — | 17,233 | (3,861 | ) | |||||||||||
Collateralized debt obligations | 3,039 | (19 | ) | 5,544 | (1,448 | ) | ||||||||||
Other debt securities | 51,652 | (935 | ) | 101,588 | (27,079 | ) | ||||||||||
Equity securities | 3,375 | (451 | ) | — | — | |||||||||||
840,819 | (6,209 | ) | 989,628 | (241,872 | ) | |||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 22,591 | (108 | ) | 451 | (41 | ) | ||||||||||
Privately issued mortgage-backed securities | 322 | (123 | ) | 184,970 | (102,492 | ) | ||||||||||
22,913 | (231 | ) | 185,421 | (102,533 | ) | |||||||||||
Total | $ | 863,732 | (6,440 | ) | 1,175,049 | (344,405 | ) | |||||||||
Less than 12 months | 12 months or more | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
Fair value | losses | Fair value | losses | |||||||||||||
(in thousands) | ||||||||||||||||
December 31, 2010 | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | $ | 27,289 | (18 | ) | — | — | ||||||||||
Obligations of states and political subdivisions | 3,712 | (18 | ) | 2,062 | (39 | ) | ||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 68,507 | (1,079 | ) | 2,965 | (32 | ) | ||||||||||
Privately issued residential | 61,192 | (1,054 | ) | 1,057,315 | (251,027 | ) | ||||||||||
Privately issued commercial | — | — | 22,407 | (2,950 | ) | |||||||||||
Collateralized debt obligations | 12,462 | (6,959 | ) | 6,004 | (2,119 | ) | ||||||||||
Other debt securities | 2,134 | (10 | ) | 88,969 | (37,990 | ) | ||||||||||
Equity securities | 5,326 | (3,721 | ) | 673 | (4,721 | ) | ||||||||||
180,622 | (12,859 | ) | 1,180,395 | (298,878 | ) | |||||||||||
Investment securities held to maturity: | ||||||||||||||||
Obligations of states and political subdivisions | 76,318 | (638 | ) | 467 | (56 | ) | ||||||||||
Privately issued mortgage-backed securities | — | — | 198,140 | (114,397 | ) | |||||||||||
76,318 | (638 | ) | 198,607 | (114,453 | ) | |||||||||||
Total | $ | 256,940 | (13,497 | ) | 1,379,002 | (413,331 | ) | |||||||||
- 14 -
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(in thousands) | ||||
Outstanding principal balance | $ | 10,445,425 | ||
Carrying amount | 9,268,721 |
- 15 -
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30-89 Days | 90 Days or more | Purchased | ||||||||||||||||||||||
Current | past due | past due and accruing | impaired | Nonaccrual | Total | |||||||||||||||||||
June 30, 2011 | (in thousands) | |||||||||||||||||||||||
Commercial, financial, leasing, etc. | $ | 14,791,110 | 24,900 | 23,488 | 37,773 | 163,621 | 15,040,892 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 18,900,107 | 104,668 | 85,938 | 226,083 | 234,171 | 19,550,967 | ||||||||||||||||||
Residential builder and developer | 1,047,647 | 39,246 | 28,606 | 366,879 | 359,152 | 1,841,530 | ||||||||||||||||||
Other commercial construction | 2,635,409 | 37,360 | 32,173 | 51,435 | 114,852 | 2,871,229 | ||||||||||||||||||
Residential | 5,737,580 | 211,506 | 199,109 | 64,327 | 187,471 | 6,399,993 | ||||||||||||||||||
Residential Alt-A | 426,437 | 37,050 | — | — | 107,441 | 570,928 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines and loans | 6,740,046 | 37,438 | — | 5,097 | 49,941 | 6,832,522 | ||||||||||||||||||
Automobile | 2,767,206 | 49,518 | — | — | 27,724 | 2,844,448 | ||||||||||||||||||
Other | 2,529,971 | 38,880 | 3,883 | 1,384 | 14,602 | 2,588,720 | ||||||||||||||||||
Total | $ | 55,575,513 | 580,566 | 373,197 | 752,978 | 1,258,975 | 58,541,229 | |||||||||||||||||
30-89 Days | 90 Days or more | Purchased | ||||||||||||||||||||||
Current | past due | past due and accruing | impaired | Nonaccrual | Total | |||||||||||||||||||
December 31, 2010 | (in thousands) | |||||||||||||||||||||||
Commercial, financial, leasing, etc. | $ | 13,088,887 | 96,087 | 16,647 | 2,250 | 186,739 | 13,390,610 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 16,589,240 | 89,906 | 35,338 | 8,275 | 209,031 | 16,931,790 | ||||||||||||||||||
Residential builder and developer | 891,764 | 30,805 | 9,763 | 72,710 | 346,448 | 1,351,490 | ||||||||||||||||||
Other commercial construction | 2,723,399 | 36,420 | 11,323 | 2,098 | 126,641 | 2,899,881 | ||||||||||||||||||
Residential | 4,699,711 | 229,641 | 192,276 | 9,320 | 172,729 | 5,303,677 | ||||||||||||||||||
Residential Alt-A | 475,236 | 42,674 | — | — | 106,469 | 624,379 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines and loans | 6,472,563 | 38,367 | — | 2,366 | 43,055 | 6,556,351 | ||||||||||||||||||
Automobile | 2,608,230 | 44,604 | — | — | 31,892 | 2,684,726 | ||||||||||||||||||
Other | 2,190,353 | 36,689 | 4,246 | — | 16,190 | 2,247,478 | ||||||||||||||||||
Total | $ | 49,739,383 | 645,193 | 269,593 | 97,019 | 1,239,194 | 51,990,382 | |||||||||||||||||
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Commercial, | ||||||||||||||||||||||||
Financial, | Real Estate | |||||||||||||||||||||||
Leasing, etc. | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 215,659 | 391,107 | 87,526 | 137,351 | 72,060 | 903,703 | |||||||||||||||||
Provision for credit losses | 6,870 | 22,735 | 13,654 | 19,852 | (111 | ) | 63,000 | |||||||||||||||||
Net charge-offs | ||||||||||||||||||||||||
Charge-offs | (14,923 | ) | (15,915 | ) | (15,872 | ) | (24,940 | ) | — | (71,650 | ) | |||||||||||||
Recoveries | 2,273 | 3,184 | 2,033 | 5,046 | — | 12,536 | ||||||||||||||||||
Net charge-offs | (12,650 | ) | (12,731 | ) | (13,839 | ) | (19,894 | ) | — | (59,114 | ) | |||||||||||||
Ending balance | $ | 209,879 | 401,111 | 87,341 | 137,309 | 71,949 | 907,589 | |||||||||||||||||
Commercial, | ||||||||||||||||||||||||
Financial, | Real Estate | |||||||||||||||||||||||
Leasing, etc. | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 212,579 | 400,562 | 86,351 | 133,067 | 70,382 | 902,941 | |||||||||||||||||
Provision for credit losses | 21,812 | 37,510 | 29,495 | 47,616 | 1,567 | 138,000 | ||||||||||||||||||
Net charge-offs | ||||||||||||||||||||||||
Charge-offs | (28,950 | ) | (40,494 | ) | (32,039 | ) | (53,261 | ) | — | (154,744 | ) | |||||||||||||
Recoveries | 4,438 | 3,533 | 3,534 | 9,887 | — | 21,392 | ||||||||||||||||||
Net charge-offs | (24,512 | ) | (36,961 | ) | (28,505 | ) | (43,374 | ) | — | (133,352 | ) | |||||||||||||
Ending balance | $ | 209,879 | 401,111 | 87,341 | 137,309 | 71,949 | 907,589 | |||||||||||||||||
Three months ended | Six months ended | |||||||
June 30, 2010 | June 30, 2010 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 891,265 | $ | 878,022 | ||||
Provision for credit losses | 85,000 | 190,000 | ||||||
Consolidation of loan securitization trusts | — | 2,752 | ||||||
Net charge-offs | ||||||||
Charge-offs | (105,346 | ) | (211,385 | ) | ||||
Recoveries | 23,748 | 35,278 | ||||||
Net charge-offs | (81,598 | ) | (176,107 | ) | ||||
Ending balance | $ | 894,667 | $ | 894,667 | ||||
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June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Recorded | Unpaid principal | Related | Recorded | Unpaid principal | Related | |||||||||||||||||||
investment | balance | allowance | investment | balance | allowance | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial, financial, leasing, etc. | $ | 94,843 | 137,532 | 32,827 | 121,744 | 170,888 | 40,909 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 132,723 | 169,915 | 29,670 | 110,975 | 140,015 | 17,393 | ||||||||||||||||||
Residential builder and developer | 178,636 | 224,646 | 79,506 | 263,545 | 295,031 | 78,597 | ||||||||||||||||||
Other commercial construction | 87,407 | 94,610 | 13,073 | 80,934 | 85,432 | 22,067 | ||||||||||||||||||
Residential | 86,574 | 105,454 | 3,044 | 73,006 | 85,279 | 3,375 | ||||||||||||||||||
Residential Alt-A | 165,539 | 176,915 | 32,000 | 180,665 | 191,445 | 36,000 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines and loans | 12,050 | 13,497 | 2,547 | 11,799 | 13,378 | 2,227 | ||||||||||||||||||
Automobile | 57,827 | 57,827 | 12,351 | 58,858 | 58,858 | 12,597 | ||||||||||||||||||
Other | 4,209 | 4,209 | 998 | 2,978 | 2,978 | 768 | ||||||||||||||||||
819,808 | 984,605 | 206,016 | 904,504 | 1,043,304 | 213,933 | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial, financial, leasing, etc. | 75,477 | 100,760 | — | 65,827 | 86,332 | — | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 105,755 | 122,637 | — | 101,939 | 116,316 | — | ||||||||||||||||||
Residential builder and developer | 207,803 | 259,984 | — | 100,799 | 124,383 | — | ||||||||||||||||||
Other commercial construction | 27,989 | 31,712 | — | 46,656 | 50,496 | — | ||||||||||||||||||
Residential | 15,483 | 21,383 | — | 5,035 | 7,723 | — | ||||||||||||||||||
Residential Alt-A | 30,607 | 52,986 | — | 28,967 | 47,879 | — | ||||||||||||||||||
463,114 | 589,462 | — | 349,223 | 433,129 | — | |||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial, financial, leasing, etc. | 170,320 | 238,292 | 32,827 | 187,571 | 257,220 | 40,909 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 238,478 | 292,552 | 29,670 | 212,914 | 256,331 | 17,393 | ||||||||||||||||||
Residential builder and developer | 386,439 | 484,630 | 79,506 | 364,344 | 419,414 | 78,597 | ||||||||||||||||||
Other commercial construction | 115,396 | 126,322 | 13,073 | 127,590 | 135,928 | 22,067 | ||||||||||||||||||
Residential | 102,057 | 126,837 | 3,044 | 78,041 | 93,002 | 3,375 | ||||||||||||||||||
Residential Alt-A | 196,146 | 229,901 | 32,000 | 209,632 | 239,324 | 36,000 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines and loans | 12,050 | 13,497 | 2,547 | 11,799 | 13,378 | 2,227 | ||||||||||||||||||
Automobile | 57,827 | 57,827 | 12,351 | 58,858 | 58,858 | 12,597 | ||||||||||||||||||
Other | 4,209 | 4,209 | 998 | 2,978 | 2,978 | 768 | ||||||||||||||||||
Total | $ | 1,282,922 | 1,574,067 | 206,016 | 1,253,727 | 1,476,433 | 213,933 | |||||||||||||||||
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Three months ended | Three months ended | |||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
Interest income | Interest income | |||||||||||||||||||||||
recognized | recognized | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
recorded | Cash | recorded | Cash | |||||||||||||||||||||
investment | Total | basis | investment | Total | basis | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Commercial, financial, leasing, etc. | $ | 180,000 | 767 | 754 | 297,364 | 775 | 765 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 233,931 | 513 | 483 | 237,121 | 139 | 121 | ||||||||||||||||||
Residential builder and developer | 358,421 | 312 | 110 | 307,857 | 671 | 406 | ||||||||||||||||||
Other commercial construction | 107,494 | 142 | 105 | 49,894 | 17 | 17 | ||||||||||||||||||
Residential | 97,317 | 1,035 | 551 | 60,593 | 681 | 432 | ||||||||||||||||||
Residential Alt-A | 199,056 | 1,991 | 409 | 223,430 | 2,144 | 447 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines and loans | 12,069 | 190 | 24 | 11,993 | 167 | 25 | ||||||||||||||||||
Automobile | 58,650 | 984 | 293 | 53,497 | 910 | 318 | ||||||||||||||||||
Other | 3,544 | 55 | 10 | 3,221 | 63 | 15 | ||||||||||||||||||
Total | $ | 1,250,482 | 5,989 | 2,739 | 1,244,970 | 5,567 | 2,546 | |||||||||||||||||
Six months ended | Six months ended | |||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
Interest income | Interest income | |||||||||||||||||||||||
recognized | recognized | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
recorded | Cash | recorded | Cash | |||||||||||||||||||||
investment | Total | basis | investment | Total | basis | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Commercial, financial, leasing, etc. | $ | 183,482 | 1,774 | 1,755 | 307,404 | 1,230 | 1,220 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 227,019 | 897 | 825 | 251,607 | 510 | 492 | ||||||||||||||||||
Residential builder and developer | 360,429 | 839 | 240 | 309,642 | 715 | 450 | ||||||||||||||||||
Other commercial construction | 117,669 | 652 | 426 | 51,970 | 401 | 401 | ||||||||||||||||||
Residential | 90,813 | 2,069 | 1,147 | 52,932 | 1,213 | 781 | ||||||||||||||||||
Residential Alt-A | 202,339 | 3,986 | 960 | 225,391 | 4,327 | 885 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines and loans | 12,098 | 351 | 50 | 12,268 | 359 | 63 | ||||||||||||||||||
Automobile | 58,655 | 1,968 | 589 | 51,732 | 1,771 | 666 | ||||||||||||||||||
Other | 3,304 | 112 | 16 | 3,232 | 129 | 31 | ||||||||||||||||||
Total | $ | 1,255,808 | 12,648 | 6,008 | 1,266,178 | 10,655 | 4,989 | |||||||||||||||||
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Real Estate | ||||||||||||||||
Commercial, | Residential | Other | ||||||||||||||
Financial, | Builder and | Commercial | ||||||||||||||
Leasing, etc. | Commercial | Developer | Construction | |||||||||||||
(in thousands) | ||||||||||||||||
June 30, 2011 | ||||||||||||||||
Pass | $ | 14,154,538 | 18,403,985 | 1,255,712 | 2,329,099 | |||||||||||
Criticized accrual | 722,733 | 912,811 | 226,666 | 427,278 | ||||||||||||
Criticized nonaccrual | 163,621 | 234,171 | 359,152 | 114,852 | ||||||||||||
Total | $ | 15,040,892 | 19,550,967 | 1,841,530 | 2,871,229 | |||||||||||
December 31, 2010 | ||||||||||||||||
Pass | $ | 12,371,138 | 15,831,104 | 693,110 | 2,253,589 | |||||||||||
Criticized accrual | 832,733 | 891,655 | 311,932 | 519,651 | ||||||||||||
Criticized nonaccrual | 186,739 | 209,031 | 346,448 | 126,641 | ||||||||||||
Total | $ | 13,390,610 | 16,931,790 | 1,351,490 | 2,899,881 | |||||||||||
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Commercial, | ||||||||||||||||||||
Financial, | Real Estate | |||||||||||||||||||
Leasing, etc. | Commercial | Residential | Consumer | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
June 30, 2011 | ||||||||||||||||||||
Individually evaluated for impairment | $ | 32,656 | 118,545 | 34,000 | 15,473 | $ | 200,674 | |||||||||||||
Collectively evaluated for impairment | 177,052 | 278,862 | 52,297 | 121,413 | 629,624 | |||||||||||||||
Purchased impaired | 171 | 3,704 | 1,044 | 423 | 5,342 | |||||||||||||||
Allocated | $ | 209,879 | 401,111 | 87,341 | 137,309 | 835,640 | ||||||||||||||
Unallocated | 71,949 | |||||||||||||||||||
Total | $ | 907,589 | ||||||||||||||||||
December 31, 2010 | ||||||||||||||||||||
Individually evaluated for impairment | $ | 40,459 | 114,082 | 39,000 | 15,492 | $ | 209,033 | |||||||||||||
Collectively evaluated for impairment | 171,670 | 282,505 | 46,976 | 117,475 | 618,626 | |||||||||||||||
Purchased impaired | 450 | 3,975 | 375 | 100 | 4,900 | |||||||||||||||
Allocated | $ | 212,579 | 400,562 | 86,351 | 133,067 | 832,559 | ||||||||||||||
Unallocated | 70,382 | |||||||||||||||||||
Total | $ | 902,941 | ||||||||||||||||||
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Commercial, | ||||||||||||||||||||
Financial, | Real Estate | |||||||||||||||||||
Leasing, etc. | Commercial | Residential | Consumer | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
June 30, 2011 | ||||||||||||||||||||
Individually evaluated for impairment | $ | 169,797 | 717,317 | 293,257 | 72,042 | $ | 1,252,413 | |||||||||||||
Collectively evaluated for impairment | 14,833,322 | 22,902,012 | 6,613,337 | 12,187,167 | 56,535,838 | |||||||||||||||
Purchased impaired | 37,773 | 644,397 | 64,327 | 6,481 | 752,978 | |||||||||||||||
Total | $ | 15,040,892 | 24,263,726 | 6,970,921 | 12,265,690 | $ | 58,541,229 | |||||||||||||
December 31, 2010 | ||||||||||||||||||||
Individually evaluated for impairment | $ | 186,739 | 682,120 | 286,612 | 72,082 | $ | 1,227,553 | |||||||||||||
Collectively evaluated for impairment | 13,201,621 | 20,417,958 | 5,632,124 | 11,414,107 | 50,665,810 | |||||||||||||||
Purchased impaired | 2,250 | 83,083 | 9,320 | 2,366 | 97,019 | |||||||||||||||
Total | $ | 13,390,610 | 21,183,161 | 5,928,056 | 11,488,555 | $ | 51,990,382 | |||||||||||||
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Carrying | Carrying | |||||||
value | value | |||||||
June 30, 2011 | December 31, 2010 | |||||||
(dollars in thousands) | ||||||||
Series A (a)(d) | ||||||||
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share, 230,000 shares issued and outstanding at June 30, 2011; 600,000 shares issued and outstanding at December 31, 2010 | $ | 223,037 | $ | 578,630 | ||||
Series B (b) | ||||||||
Series B Mandatory Convertible Non-cumulative Preferred Stock, $1,000 liquidation preference per share, 26,500 shares issued and outstanding at December 31, 2010 | — | 26,500 | ||||||
Series C (a)(c) | ||||||||
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share, 151,500 shares issued and outstanding at June 30, 2011 and December 31, 2010 | 137,864 | 135,527 | ||||||
Series D (e) | ||||||||
Fixed Rate Non-cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share, 50,000 shares issued and outstanding at June 30, 2011 | 500,000 | — |
(a) | Shares were issued as part of the Troubled Asset Relief Program — Capital Purchase Program of the 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 an acquisition and a new Series B Preferred Stock was designated. Pursuant to their terms, the shares of Series B Preferred Stock were converted into 433,144 shares of M&T common stock on April 1, 2011. The preferred stock had a stated dividend rate of 10% per year. |
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(c) | Shares were assumed in an acquisition and a new Series C Preferred Stock was designated. |
(d) | On May 18, 2011, M&T redeemed and retired 370,000 shares of the Series A Preferred Stock. Accelerated amortization of preferred stock discount associated with the redemption was $11.2 million. |
(e) | Shares were issued on May 31, 2011. Dividends, if declared, will be paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 Capital, M&T may redeem all of the shares within 90 days following that occurrence. |
Other | ||||||||||||||||
Pension | postretirement | |||||||||||||||
benefits | benefits | |||||||||||||||
Three months ended June 30 | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 6,413 | 4,960 | 115 | 102 | |||||||||||
Interest cost on projected benefit obligation | 14,086 | 12,032 | 909 | 785 | ||||||||||||
Expected return on plan assets | (14,563 | ) | (12,655 | ) | — | — | ||||||||||
Amortization of prior service cost | (1,629 | ) | (1,629 | ) | 29 | 63 | ||||||||||
Amortization of net actuarial loss | 5,165 | 3,455 | 18 | (5 | ) | |||||||||||
Net periodic benefit cost | $ | 9,472 | 6,163 | 1,071 | 945 | |||||||||||
Other | ||||||||||||||||
Pension | postretirement | |||||||||||||||
benefits | benefits | |||||||||||||||
Six months ended June 30 | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 11,713 | 9,835 | 240 | 202 | |||||||||||
Interest cost on projected benefit obligation | 26,236 | 24,061 | 1,684 | 1,565 | ||||||||||||
Expected return on plan assets | (27,263 | ) | (25,443 | ) | — | — | ||||||||||
Amortization of prior service cost | (3,279 | ) | (3,279 | ) | 54 | 88 | ||||||||||
Amortization of net actuarial loss | 10,265 | 6,776 | 18 | (5 | ) | |||||||||||
Net periodic benefit cost | $ | 17,672 | 11,950 | 1,996 | 1,850 | |||||||||||
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Three months ended | Six months ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands, except per share) | ||||||||||||||||
Income available to common shareholders: | ||||||||||||||||
Net income | $ | 322,358 | 188,749 | 528,631 | 339,704 | |||||||||||
Less: Preferred stock dividends (a) | (7,184 | ) | (10,056 | ) | (17,682 | ) | (20,113 | ) | ||||||||
Amortization of preferred stock discount (a) | (13,531 | ) | (2,605 | ) | (16,284 | ) | (5,162 | ) | ||||||||
Net income available to common equity | 301,643 | 176,088 | 494,665 | 314,429 | ||||||||||||
Less: Income attributable to unvested stock-based compensation awards | (4,479 | ) | (2,500 | ) | (7,382 | ) | (4,403 | ) | ||||||||
Net income available to common shareholders | $ | 297,164 | 173,588 | 487,283 | 310,026 | |||||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards | 124,035 | 119,756 | 122,522 | 119,550 | ||||||||||||
Less: Unvested stock-based compensation awards | (1,854 | ) | (1,702 | ) | (1,823 | ) | (1,640 | ) | ||||||||
Weighted-average shares outstanding | 122,181 | 118,054 | 120,699 | 117,910 | ||||||||||||
Basic earnings per common share | $ | 2.43 | 1.47 | 4.04 | 2.63 |
(a) | Including impact of not as yet declared cumulative dividends. |
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Three months ended | Six months ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands, except per share) | ||||||||||||||||
Net income available to common equity | $ | 301,643 | 176,088 | 494,665 | 314,429 | |||||||||||
Less: Income attributable to unvested stock-based compensation awards | (4,464 | ) | (2,491 | ) | (7,357 | ) | (4,392 | ) | ||||||||
Net income available to common shareholders | $ | 297,179 | 173,597 | 487,308 | 310,037 | |||||||||||
Adjusted weighted-average shares outstanding: | ||||||||||||||||
Common and unvested stock-based compensation awards | 124,035 | 119,756 | 122,522 | 119,550 | ||||||||||||
Less: Unvested stock-based compensation awards | (1,854 | ) | (1,702 | ) | (1,823 | ) | (1,640 | ) | ||||||||
Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock | 615 | 824 | 633 | 659 | ||||||||||||
Adjusted weighted-average shares outstanding | 122,796 | 118,878 | 121,332 | 118,569 | ||||||||||||
Diluted earnings per common share | $ | 2.42 | 1.46 | 4.02 | 2.61 |
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Six months ended June 30, 2011 | ||||||||||||
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”): | ||||||||||||
Unrealized holding losses, net | $ | (11,227 | ) | 4,501 | (6,726 | ) | ||||||
Less: reclassification adjustment for gains realized in net income | 3,814 | (1,497 | ) | 2,317 | ||||||||
Less: OTTI charges recognized in net income | (32,071 | ) | 12,587 | (19,484 | ) | |||||||
Net change for AFS investment securities with OTTI | 17,030 | (6,589 | ) | 10,441 | ||||||||
AFS investment securities — all other: | ||||||||||||
Unrealized holding gains, net | 77,869 | (30,368 | ) | 47,501 | ||||||||
Less: reclassification adjustment for gains realized in net income | 146,115 | (57,257 | ) | 88,858 | ||||||||
Net change for AFS investment securities — all other | (68,246 | ) | 26,889 | (41,357 | ) | |||||||
Held-to-maturity (“HTM”) investment securities with OTTI: | ||||||||||||
Unrealized holding losses, net | (8,500 | ) | 3,336 | (5,164 | ) | |||||||
Less: reclassification to income of unrealized holding losses | (12 | ) | 5 | (7 | ) | |||||||
Less: OTTI charges recognized in net income | (10,500 | ) | 4,121 | (6,379 | ) | |||||||
Net change for HTM investment securities with OTTI | 2,012 | (790 | ) | 1,222 | ||||||||
Reclassification to income of unrealized holding losses on investment securities previously transferred from AFS to HTM | 2,967 | (1,165 | ) | 1,802 | ||||||||
Net unrealized losses on investment securities | (46,237 | ) | 18,345 | (27,892 | ) | |||||||
Reclassification to income for amortization of gains on terminated cash flow hedges | (224 | ) | 83 | (141 | ) | |||||||
Foreign currency translation adjustment | 313 | (117 | ) | 196 | ||||||||
Defined benefit plans liability adjustment | 7,058 | (2,770 | ) | 4,288 | ||||||||
$ | (39,090 | ) | 15,541 | (23,549 | ) | |||||||
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Six months ended June 30, 2010 | ||||||||||||
Before-tax | Income | |||||||||||
amount | taxes | Net | ||||||||||
(in thousands) | ||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||
AFS investment securities with OTTI: | ||||||||||||
Unrealized holding losses, net | $ | (50,566 | ) | 19,603 | (30,963 | ) | ||||||
Less: OTTI charges recognized in net income | (49,182 | ) | 19,017 | (30,165 | ) | |||||||
Net change for AFS investment securities with OTTI | (1,384 | ) | 586 | (798 | ) | |||||||
AFS investment securities — all other: | ||||||||||||
Unrealized holding gains, net | 221,196 | (86,386 | ) | 134,810 | ||||||||
Less: reclassification adjustment for losses recognized in net income | (135 | ) | 39 | (96 | ) | |||||||
Net change for AFS investment securities — all other | 221,331 | (86,425 | ) | 134,906 | ||||||||
Reclassification to income of unrealized holding losses on investment securities previously transferred from AFS to HTM | 4,374 | (1,716 | ) | 2,658 | ||||||||
Net unrealized gains on investment securities | 224,321 | (87,555 | ) | 136,766 | ||||||||
Reclassification to income for amortization of gains on terminated cash flow hedges | (224 | ) | 83 | (141 | ) | |||||||
Defined benefit plans liability adjustment | 3,580 | (1,405 | ) | 2,175 | ||||||||
$ | 227,677 | (88,877 | ) | 138,800 | ||||||||
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Foreign | ||||||||||||||||||||||||
Cash | currency | Defined | ||||||||||||||||||||||
Investment securities | flow | translation | benefit | |||||||||||||||||||||
With OTTI | All other | hedges | adjustment | plans | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance — January 1, 2011 | $ | (87,053 | ) | 2,332 | 393 | — | (120,892 | ) | (205,220 | ) | ||||||||||||||
Net gain (loss) during period | 11,663 | (39,555 | ) | (141 | ) | 196 | 4,288 | (23,549 | ) | |||||||||||||||
Balance — June 30, 2011 | $ | (75,390 | ) | (37,223 | ) | 252 | 196 | (116,604 | ) | (228,769 | ) | |||||||||||||
Balance — January 1, 2010 | $ | (76,772 | ) | (142,853 | ) | 674 | — | (117,046 | ) | (335,997 | ) | |||||||||||||
Net gain (loss) during period | (798 | ) | 137,564 | (141 | ) | — | 2,175 | 138,800 | ||||||||||||||||
Balance — June 30, 2010 | $ | (77,570 | ) | (5,289 | ) | 533 | — | (114,871 | ) | (197,197 | ) | |||||||||||||
Weighted- | ||||||||||||||||
Notional | Average | average rate | ||||||||||||||
amount | maturity | Fixed | Variable | |||||||||||||
(in thousands) | (in years) | |||||||||||||||
June 30, 2011 | ||||||||||||||||
Fair value hedges: | ||||||||||||||||
Fixed rate long-term borrowings (a) | $ | 900,000 | 5.9 | 6.07 | % | 1.79 | % | |||||||||
December 31, 2010 | ||||||||||||||||
Fair value hedges: | ||||||||||||||||
Fixed rate long-term borrowings (a) | $ | 900,000 | 6.4 | 6.07 | % | 1.84 | % | |||||||||
(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 | |||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands) | ||||||||||||||||
Derivatives designated and qualifying as hedging instruments | ||||||||||||||||
Fair value hedges: | ||||||||||||||||
Interest rate swap agreements (a) | $ | 106,177 | 96,637 | $ | — | — | ||||||||||
Commitments to sell real estate loans (a) | 912 | 4,880 | 1,270 | 1,062 | ||||||||||||
107,089 | 101,517 | 1,270 | 1,062 | |||||||||||||
Derivatives not designated and qualifying as hedging instruments | ||||||||||||||||
Mortgage-related commitments to originate real estate loans for sale (a) | 13,558 | 2,827 | 387 | 583 | ||||||||||||
Commitments to sell real estate loans (a) | 1,583 | 10,322 | 5,364 | 1,962 | ||||||||||||
Trading: | ||||||||||||||||
Interest rate contracts (b) | 364,064 | 345,632 | 339,440 | 321,461 | ||||||||||||
Foreign exchange and other option and futures contracts (b) | 26,920 | 11,267 | 27,043 | 11,761 | ||||||||||||
406,125 | 370,048 | 372,234 | 335,767 | |||||||||||||
Total derivatives | $ | 513,214 | 471,565 | $ | 373,504 | 336,829 | ||||||||||
(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 | |||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||
Derivative | Hedged item | Derivative | Hedged item | |||||||||||||
(in thousands) | ||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||
Interest rate swap agreements: | ||||||||||||||||
Fixed rate time deposits (a) | $ | — | — | $ | (304 | ) | 304 | |||||||||
Fixed rate long-term borrowings (a) | 21,945 | (21,145 | ) | 43,957 | (41,680 | ) | ||||||||||
Total | $ | 21,945 | (21,145 | ) | $ | 43,653 | (41,376 | ) | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Trading: | ||||||||||||||||
Interest rate contracts (b) | $ | 1,001 | $ | (504 | ) | |||||||||||
Foreign exchange and other option and futures contracts (b) | (743 | ) | 615 | |||||||||||||
Total | $ | 258 | $ | 111 | ||||||||||||
Amount of unrealized gain (loss) recognized | ||||||||||||||||
Six months ended | Six months ended | |||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||
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 | |||||||||
Fixed rate long-term borrowings (a) | 9,540 | (9,097 | ) | 56,427 | (53,661 | ) | ||||||||||
Total | $ | 9,540 | (9,097 | ) | $ | 55,924 | (53,158 | ) | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Trading: | ||||||||||||||||
Interest rate contracts (b) | $ | 1,476 | $ | (1,118 | ) | |||||||||||
Foreign exchange and other option and futures contracts (b) | (1,291 | ) | 957 | |||||||||||||
Total | $ | 185 | $ | (161 | ) | |||||||||||
(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 | ||||||||||||||||
June 30, | ||||||||||||||||
2011 | Level 1 (a) | Level 2 (a) | Level 3 | |||||||||||||
(in thousands) | ||||||||||||||||
Trading account assets | $ | 502,986 | 57,523 | 445,463 | — | |||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | 112,953 | — | 112,953 | — | ||||||||||||
Obligations of states and political subdivisions | 67,491 | — | 67,491 | — | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,023,018 | — | 3,023,018 | — | ||||||||||||
Privately issued residential | 1,306,202 | — | — | 1,306,202 | ||||||||||||
Privately issued commercial | 17,233 | — | — | 17,233 | ||||||||||||
Collateralized debt obligations | 61,601 | — | — | 61,601 | ||||||||||||
Other debt securities | 195,536 | — | 195,536 | — | ||||||||||||
Equity securities | 106,455 | 84,676 | 21,779 | — | ||||||||||||
4,890,489 | 84,676 | 3,420,777 | 1,385,036 | |||||||||||||
Real estate loans held for sale | 414,643 | — | 414,643 | — | ||||||||||||
Other assets (b) | 122,230 | — | 108,672 | 13,558 | ||||||||||||
Total assets | $ | 5,930,348 | 142,199 | 4,389,555 | 1,398,594 | |||||||||||
Trading account liabilities | $ | 366,483 | — | 366,483 | — | |||||||||||
Other liabilities (b) | 7,021 | — | 6,634 | 387 | ||||||||||||
Total liabilities | $ | 373,504 | — | 373,117 | 387 | |||||||||||
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Fair value | ||||||||||||||||
measurements at | ||||||||||||||||
December 31, | ||||||||||||||||
2010 | Level 1 (a) | Level 2 (a) | Level 3 | |||||||||||||
(in thousands) | ||||||||||||||||
Trading account assets | $ | 523,834 | 53,032 | 470,802 | — | |||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury and federal agencies | 63,434 | — | 63,434 | — | ||||||||||||
Obligations of states and political subdivisions | 60,425 | — | 60,425 | — | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government issued or guaranteed | 3,306,241 | — | 3,306,241 | — | ||||||||||||
Privately issued residential | 1,435,561 | — | — | 1,435,561 | ||||||||||||
Privately issued commercial | 22,407 | — | — | 22,407 | ||||||||||||
Collateralized debt obligations | 110,756 | — | — | 110,756 | ||||||||||||
Other debt securities | 298,900 | — | 298,900 | — | ||||||||||||
Equity securities | 115,768 | 106,872 | 8,896 | — | ||||||||||||
5,413,492 | 106,872 | 3,737,896 | 1,568,724 | |||||||||||||
Real estate loans held for sale | 544,567 | — | 544,567 | — | ||||||||||||
Other assets (b) | 114,666 | — | 111,839 | 2,827 | ||||||||||||
Total assets | $ | 6,596,559 | 159,904 | 4,865,104 | 1,571,551 | |||||||||||
Trading account liabilities | $ | 333,222 | — | 333,222 | — | |||||||||||
Other liabilities (b) | 3,607 | — | 3,024 | 583 | ||||||||||||
Total liabilities | $ | 336,829 | — | 336,246 | 583 | |||||||||||
(a) | There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months and six months ended June 30, 2011 and 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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Investment securities available for sale | ||||||||||||||||
Privately issued | Privately issued | |||||||||||||||
residential | commercial | Collateralized | Other assets | |||||||||||||
mortgage-backed | mortgage-backed | debt | and other | |||||||||||||
securities | securities | obligations | liabilities | |||||||||||||
(in thousands) | ||||||||||||||||
Balance — March 31, 2011 | $ | 1,391,878 | $ | 20,467 | $ | 114,265 | $ | 16,147 | ||||||||
Total gains (losses) realized/unrealized: | ||||||||||||||||
Included in earnings | (24,530 | )(a) | — | — | 22,800 | (b) | ||||||||||
Included in other comprehensive income | 38,471 | (1,400 | ) | 3,372 | — | |||||||||||
Purchases | — | — | 50,790 | — | ||||||||||||
Sales | — | — | (105,643 | ) | — | |||||||||||
Settlements | (99,617 | ) | (1,834 | ) | (1,183 | ) | — | |||||||||
Transfers in and/or out of Level 3 (c) | — | — | — | (25,776 | ) | |||||||||||
Balance — June 30, 2011 | $ | 1,306,202 | $ | 17,233 | $ | 61,601 | $ | 13,171 | ||||||||
Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2011 | $ | (24,530 | )(a) | $ | — | $ | — | $ | 10,252 | (b) | ||||||
Investment securities available for sale | ||||||||||||||||||||
Privately issued | Privately issued | |||||||||||||||||||
residential | commercial | Collateralized | Other | Other assets | ||||||||||||||||
mortgage-backed | mortgage-backed | debt | debt | and other | ||||||||||||||||
securities | securities | obligations | securities | liabilities | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance — March 31, 2010 | $ | 1,664,341 | $ | 25,125 | $ | 125,755 | $ | 455 | $ | 8,171 | ||||||||||
Total gains (losses) realized/unrealized: | ||||||||||||||||||||
Included in earnings | (7,896 | )(a) | — | (2,491 | )(a) | — | 29,828 | (b) | ||||||||||||
Included in other comprehensive income | 40,794 | 4,021 | (5,088 | ) | — | — | ||||||||||||||
Settlements | (99,206 | ) | (2,503 | ) | (136 | ) | — | — | ||||||||||||
Transfers in and/or out of Level 3 (c) | — | — | — | (455 | ) | (17,156 | ) | |||||||||||||
Balance — June 30, 2010 | $ | 1,598,033 | $ | 26,643 | $ | 118,040 | $ | — | $ | 20,843 | ||||||||||
Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2010 | $ | (7,896 | )(a) | $ | — | $ | (2,491 | )(a) | $ | — | $ | 20,097 | (b) | |||||||
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Investment securities available for sale | ||||||||||||||||
Privately issued | Privately issued | |||||||||||||||
residential | commercial | Collateralized | Other assets | |||||||||||||
mortgage-backed | mortgage-backed | debt | and other | |||||||||||||
securities | securities | obligations | liabilities | |||||||||||||
(in thousands) | ||||||||||||||||
Balance — January 1, 2011 | $ | 1,435,561 | $ | 22,407 | $ | 110,756 | $ | 2,244 | ||||||||
Total gains (losses) realized/unrealized: | ||||||||||||||||
Included in earnings | (32,071 | )(a) | — | — | 43,244 | (b) | ||||||||||
Included in other comprehensive income | 99,556 | (1,482 | ) | 7,206 | — | |||||||||||
Purchases | — | — | 50,790 | — | ||||||||||||
Sales | — | — | (105,643 | ) | — | |||||||||||
Settlements | (196,844 | ) | (3,692 | ) | (1,508 | ) | — | |||||||||
Transfers in and/or out of Level 3 (c) | — | — | — | (32,317 | ) | |||||||||||
Balance — June 30, 2011 | $ | 1,306,202 | $ | 17,233 | $ | 61,601 | $ | 13,171 | ||||||||
Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2011 | $ | (32,071 | )(a) | $ | — | $ | — | $ | 13,139 | (b) | ||||||
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Investment securities available for sale | ||||||||||||||||||||
Privately issued | Privately issued | |||||||||||||||||||
residential | commercial | Collateralized | Other assets | |||||||||||||||||
mortgage-backed | mortgage-backed | debt | Other | and other | ||||||||||||||||
securities | securities | obligations | debt securities | liabilities | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance – January 1, 2010 | $ | 2,064,904 | $ | 25,166 | $ | 115,346 | $ | 420 | $ | (80 | ) | |||||||||
Total gains (losses) realized/unrealized: | ||||||||||||||||||||
Included in earnings | (34,343 | )(a) | — | (2,846 | )(a) | — | 47,850 | (b) | ||||||||||||
Included in other comprehensive income | 115,248 | 6,094 | 5,807 | 35 | — | |||||||||||||||
Settlements | (192,528 | ) | (4,617 | ) | (267 | ) | — | — | ||||||||||||
Transfers in and/or out of Level 3 (c) | (355,248 | )(d) | — | — | (455 | ) | (26,927 | ) | ||||||||||||
Balance – June 30, 2010 | $ | 1,598,033 | $ | 26,643 | $ | 118,040 | $ | — | $ | 20,843 | ||||||||||
Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2010 | $ | (34,343 | )(a) | $ | — | $ | (2,846 | )(a) | $ | — | $ | 20,598 | (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. |
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June 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying | Calculated | Carrying | Calculated | |||||||||||||
amount | estimate | amount | estimate | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,332,915 | $ | 1,332,915 | $ | 933,755 | $ | 933,755 | ||||||||
Interest-bearing deposits at banks | 2,275,450 | 2,275,450 | 101,222 | 101,222 | ||||||||||||
Trading account assets | 502,986 | 502,986 | 523,834 | 523,834 | ||||||||||||
Agreements to resell securities | 380,000 | 380,000 | — | — | ||||||||||||
Investment securities | 6,492,265 | 6,416,075 | 7,150,540 | 7,051,454 | ||||||||||||
Loans and leases: | ||||||||||||||||
Commercial loans and leases | 15,040,892 | 14,827,062 | 13,390,610 | 13,135,569 | ||||||||||||
Commercial real estate loans | 24,263,726 | 23,979,139 | 21,183,161 | 20,840,346 | ||||||||||||
Residential real estate loans | 6,970,921 | 6,809,347 | 5,928,056 | 5,699,028 | ||||||||||||
Consumer loans | 12,265,690 | 11,962,056 | 11,488,555 | 11,178,583 | ||||||||||||
Allowance for credit losses | (907,589 | ) | — | (902,941 | ) | — | ||||||||||
Loans and leases, net | 57,633,640 | 57,577,604 | 51,087,441 | 50,853,526 | ||||||||||||
Accrued interest receivable | 212,357 | 212,357 | 202,182 | 202,182 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Noninterest-bearing deposits | $ | (18,598,828 | ) | $ | (18,598,828 | ) | $ | (14,557,568 | ) | $ | (14,557,568 | ) | ||||
Savings deposits and NOW accounts | (32,400,035 | ) | (32,400,035 | ) | (27,824,630 | ) | (27,824,630 | ) | ||||||||
Time deposits | (7,678,799 | ) | (7,713,421 | ) | (5,817,170 | ) | (5,865,779 | ) | ||||||||
Deposits at Cayman Islands office | (551,553 | ) | (551,553 | ) | (1,605,916 | ) | (1,605,916 | ) | ||||||||
Short-term borrowings | (567,144 | ) | (567,144 | ) | (947,432 | ) | (947,432 | ) | ||||||||
Long-term borrowings | (7,128,916 | ) | (7,280,296 | ) | (7,840,151 | ) | (7,937,397 | ) | ||||||||
Accrued interest payable | (89,182 | ) | (89,182 | ) | (71,954 | ) | (71,954 | ) | ||||||||
Trading account liabilities | (366,483 | ) | (366,483 | ) | (333,222 | ) | (333,222 | ) | ||||||||
Other financial instruments: | ||||||||||||||||
Commitments to originate real estate loans for sale | $ | 13,171 | $ | 13,171 | $ | 2,244 | $ | 2,244 | ||||||||
Commitments to sell real estate loans | (4,139 | ) | (4,139 | ) | 12,178 | 12,178 | ||||||||||
Other credit-related commitments | (99,959 | ) | (99,959 | ) | (74,426 | ) | (74,426 | ) | ||||||||
Interest rate swap agreements used for interest rate risk management | 106,177 | 106,177 | 96,637 | 96,637 |
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June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Commitments to extend credit | ||||||||
Home equity lines of credit | $ | 6,534,722 | 6,281,366 | |||||
Commercial real estate loans to be sold | 181,180 | 72,930 | ||||||
Other commercial real estate and construction | 2,746,493 | 1,672,006 | ||||||
Residential real estate loans to be sold | 482,774 | 161,583 | ||||||
Other residential real estate | 113,738 | 151,111 | ||||||
Commercial and other | 10,787,826 | 8,332,199 | ||||||
Standby letters of credit | 3,963,575 | 3,917,318 | ||||||
Commercial letters of credit | 65,766 | 76,962 | ||||||
Financial guarantees and indemnification contracts | 1,790,502 | 1,609,944 | ||||||
Commitments to sell real estate loans | 903,582 | 734,696 |
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Three months ended June 30 | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Total | Inter- segment | Net | Total | Inter- segment | Net | |||||||||||||||||||
revenues(a) | revenues | income (loss) | revenues(a) | revenues | income (loss) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Business Banking | $ | 104,012 | 971 | 26,584 | 102,610 | — | 26,552 | |||||||||||||||||
Commercial Banking | 228,564 | 1,190 | 95,111 | 194,575 | — | 81,612 | ||||||||||||||||||
Commercial Real Estate | 134,066 | 448 | 65,058 | 109,487 | 39 | 43,667 | ||||||||||||||||||
Discretionary Portfolio | 112,383 | (4,419 | ) | 58,362 | 5,580 | (2,500 | ) | (4,073 | ) | |||||||||||||||
Residential Mortgage Banking | 58,305 | 8,699 | 5,966 | 65,766 | 8,876 | (467 | ) | |||||||||||||||||
Retail Banking | 311,484 | 2,967 | 54,645 | 315,638 | 2,690 | 67,080 | ||||||||||||||||||
All Other | 139,044 | (9,856 | ) | 16,632 | 47,128 | (9,105 | ) | (25,622 | ) | |||||||||||||||
Total | $ | 1,087,858 | — | 322,358 | 840,784 | — | 188,749 | |||||||||||||||||
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Six months ended June 30 | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Total | Inter- segment | Net | Total | Inter- segment | Net | |||||||||||||||||||
revenues | (a) | revenues | income (loss) | revenues | (a) | revenues | income (loss) | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Business Banking | $ | 203,789 | 1,933 | 52,884 | 204,406 | — | 51,896 | |||||||||||||||||
Commercial Banking | 442,176 | 2,356 | 183,442 | 386,981 | — | 158,480 | ||||||||||||||||||
Commercial Real Estate | 259,372 | 804 | 114,068 | 219,900 | 57 | 87,420 | ||||||||||||||||||
Discretionary Portfolio | 154,866 | (12,206 | ) | 74,489 | (6,653 | ) | (5,247 | ) | (20,235 | ) | ||||||||||||||
Residential Mortgage Banking | 116,153 | 19,006 | 10,751 | 128,883 | 17,073 | 128 | ||||||||||||||||||
Retail Banking | 606,532 | 5,954 | 107,371 | 623,113 | 5,377 | 126,117 | ||||||||||||||||||
All Other | 188,194 | (17,847 | ) | (14,374 | ) | 98,194 | (17,260 | ) | (64,102 | ) | ||||||||||||||
Total | $ | 1,971,082 | — | 528,631 | 1,654,824 | — | 339,704 | |||||||||||||||||
Average total assets | ||||||||||||
Six months ended | Year ended | |||||||||||
June 30 | December 31 | |||||||||||
2011 | 2010 | 2010 | ||||||||||
(in millions) | ||||||||||||
Business Banking | $ | 4,861 | 4,884 | 4,843 | ||||||||
Commercial Banking | 16,856 | 15,504 | 15,461 | |||||||||
Commercial Real Estate | 14,227 | 13,255 | 13,194 | |||||||||
Discretionary Portfolio | 14,012 | 14,699 | 14,690 | |||||||||
Residential Mortgage Banking | 1,940 | 2,188 | 2,217 | |||||||||
Retail Banking | 11,776 | 12,191 | 12,079 | |||||||||
All Other | 6,590 | 5,886 | 5,896 | |||||||||
Total | $ | 70,262 | 68,607 | 68,380 | ||||||||
(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 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 $6,468,000 and |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
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• | Redeemed $370 million of its Series A Preferred Stock issued pursuant to the Troubled Asset Relief Program — Capital Purchase Program of the U.S. Treasury; and | ||
• | Issued $500 million of perpetual 6.875% non-cumulative preferred stock in order to supplement Tier 1 Capital. |
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• | Weakens the federal preemption rules that have been applicable for national banks and gives state attorneys general the ability to enforce federal consumer protection laws; | ||
• | Amends the Electronic Fund Transfer Act (“EFTA”) which has resulted in, among other things, the Federal Reserve Board issuing rules aimed at limiting 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 the Financial Stability Oversight Council, which will recommend to the Federal Reserve Board increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity. |
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AVERAGE LOANS AND LEASES | ||||||||||||
(net of unearned discount) | ||||||||||||
Dollars in millions | Percent increase | |||||||||||
( decrease) from | ||||||||||||
2nd Qtr. | 2nd Qtr. | 1st Qtr. | ||||||||||
2011 | 2010 | 2011 | ||||||||||
Commercial, financial, etc. | $ | 14,623 | 12 | % | 8 | % | ||||||
Real estate — commercial | 22,471 | 8 | 7 | |||||||||
Real estate — consumer | 6,559 | 16 | 8 | |||||||||
Consumer | ||||||||||||
Automobile | 2,730 | (3 | ) | 3 | ||||||||
Home equity lines | 5,902 | 1 | 3 | |||||||||
Home equity loans | 732 | (19 | ) | — | ||||||||
Other | 2,444 | 11 | 10 | |||||||||
Total consumer | 11,808 | — | 4 | |||||||||
Total | $ | 55,461 | 8 | % | 7 | % | ||||||
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AVERAGE CORE DEPOSITS | ||||||||||||
Dollars in millions | Percent increase from | |||||||||||
2nd Qtr. | 2nd Qtr. | 1st Qtr. | ||||||||||
2011 | 2010 | 2011 | ||||||||||
NOW accounts | $ | 712 | 19 | % | 19 | % | ||||||
Savings deposits | 28,641 | 16 | 9 | |||||||||
Time deposits (a) | 4,971 | 13 | 6 | |||||||||
Noninterest-bearing deposits | 16,195 | 19 | 12 | |||||||||
Total | $ | 50,519 | 16 | % | 9 | % | ||||||
(a) | Average time deposits considered core deposits in the first and second quarters of 2011 represented time deposits of $250,000 or less. In the second quarter of 2010, average time deposits considered core deposits were those with balances less than $100,000. |
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INTEREST RATE SWAP AGREEMENTS | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Three months ended June 30 | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Amount | Rate(a) | Amount | Rate(a) | |||||||||||||
Increase (decrease) in: | ||||||||||||||||
Interest income | $ | — | — | % | $ | — | — | % | ||||||||
Interest expense | (9,491 | ) | (.08 | ) | (10,967 | ) | (.10 | ) | ||||||||
Net interest income/margin | $ | 9,491 | .06 | % | $ | 10,967 | .07 | % | ||||||||
Average notional amount | $ | 900,000 | $ | 1,053,175 | ||||||||||||
Rate received(b) | 6.09 | % | 6.37 | % | ||||||||||||
Rate paid(b) | 1.86 | % | 2.19 | % | ||||||||||||
Six months ended June 30 | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Amount | Rate(a) | Amount | Rate(a) | |||||||||||||
Increase (decrease) in: | ||||||||||||||||
Interest income | $ | — | — | % | $ | — | — | % | ||||||||
Interest expense | (19,005 | ) | (.09 | ) | (22,219 | ) | (.10 | ) | ||||||||
Net interest income/margin | $ | 19,005 | .06 | % | $ | 22,219 | .07 | % | ||||||||
Average notional amount | $ | 900,000 | $ | 1,057,683 | ||||||||||||
Rate received(b) | 6.12 | % | 6.38 | % | ||||||||||||
Rate paid(b) | 1.86 | % | 2.15 | % | ||||||||||||
(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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SENSITIVITY OF NET INTEREST INCOME | ||||||||
TO CHANGES IN INTEREST RATES Dollars in thousands | ||||||||
Calculated increase (decrease) | ||||||||
in projected net interest income | ||||||||
Changes in interest rates | June 30, 2011 | December 31, 2010 | ||||||
+200 basis points | $ | 127,468 | 67,255 | |||||
+100 basis points | 67,999 | 35,594 | ||||||
-100 basis points | (50,197 | ) | (40,760 | ) | ||||
-200 basis points | (72,360 | ) | (61,720 | ) |
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BY LOAN/LEASE TYPE
2011 | ||||||||||||
Year | ||||||||||||
1st Qtr. | 2nd Qtr. | to-date | ||||||||||
Commercial, financial, etc. | $11,862 | 12,650 | 24,512 | |||||||||
Real estate: | ||||||||||||
Commercial | 24,230 | 12,731 | 36,961 | |||||||||
Residential | 14,666 | 13,839 | 28,505 | |||||||||
Consumer | 23,480 | 19,894 | 43,374 | |||||||||
$ | 74,238 | 59,114 | 133,352 | |||||||||
2010 | ||||||||||||
Year | ||||||||||||
1st Qtr. | 2nd Qtr. | to-date | ||||||||||
Commercial, financial, etc. | $ | 17,994 | 9,166 | 27,160 | ||||||||
Real estate: | ||||||||||||
Commercial | 30,226 | 35,449 | 65,675 | |||||||||
Residential | 15,280 | 13,182 | 28,462 | |||||||||
Consumer | 31,009 | 23,801 | 54,810 | |||||||||
$ | 94,509 | 81,598 | 176,107 | |||||||||
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Quarter ended | ||||||||||||||||||||
June 30, 2011 | June 30, 2011 | |||||||||||||||||||
Net charge-offs | ||||||||||||||||||||
Nonaccrual | (recoveries) | |||||||||||||||||||
Annualized | ||||||||||||||||||||
percent of | ||||||||||||||||||||
Percent of | average | |||||||||||||||||||
Outstanding | outstanding | outstanding | ||||||||||||||||||
balances(a) | Balances | balances | Balances | balances | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
New York | $ | 261,283 | $ | 27,117 | 10.38 | % | $ | 766 | 1.19 | % | ||||||||||
Pennsylvania | 363,097 | 90,529 | 24.93 | 231 | .30 | |||||||||||||||
Mid-Atlantic | 1,182,063 | 225,229 | 19.05 | 3,750 | 1.67 | |||||||||||||||
Other | 206,665 | 36,245 | 17.54 | 979 | 1.92 | |||||||||||||||
Total | $ | 2,013,108 | $ | 379,120 | 18.83 | % | $ | 5,726 | 1.37 | % | ||||||||||
(a) | Includes approximately $172 million of loans not secured by real estate, of which approximately $20 million are in nonaccrual status. |
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Quarter ended | ||||||||||||||||||||
June 30, 2011 | June 30, 2011 | |||||||||||||||||||
Net charge-offs | ||||||||||||||||||||
Nonaccrual | (recoveries) | |||||||||||||||||||
Annualized | ||||||||||||||||||||
percent of | ||||||||||||||||||||
Percent of | average | |||||||||||||||||||
Outstanding | outstanding | outstanding | ||||||||||||||||||
balances | Balances | balances | Balances | balances | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Residential mortgages: | ||||||||||||||||||||
New York | $ | 2,612,474 | $ | 51,984 | 1.99 | % | $ | 727 | 0.12 | % | ||||||||||
Pennsylvania | 908,800 | 18,731 | 2.06 | 494 | 0.23 | |||||||||||||||
Mid-Atlantic | 1,573,116 | 45,769 | 2.91 | 1,137 | 0.34 | |||||||||||||||
Other | 1,249,354 | 63,090 | 5.05 | 2,973 | 1.01 | |||||||||||||||
Total | $ | 6,343,744 | $ | 179,574 | 2.83 | % | $ | 5,331 | 0.36 | % | ||||||||||
Residential construction loans: | ||||||||||||||||||||
New York | $ | 9,423 | $ | 882 | 9.36 | % | $ | — | — | % | ||||||||||
Pennsylvania | 3,020 | 414 | 13.71 | (31 | ) | (3.87 | ) | |||||||||||||
Mid-Atlantic | 15,689 | 2,982 | 19.01 | 20 | 0.48 | |||||||||||||||
Other | 28,117 | 3,619 | 12.87 | 394 | 5.24 | |||||||||||||||
Total | $ | 56,249 | $ | 7,897 | 14.04 | % | $ | 383 | 2.59 | % | ||||||||||
Alt-A first mortgages: | ||||||||||||||||||||
New York | $ | 87,536 | $ | 17,095 | 19.53 | % | $ | 1,022 | 4.59 | % | ||||||||||
Pennsylvania | 20,223 | 2,801 | 13.85 | 400 | 7.67 | |||||||||||||||
Mid-Atlantic | 105,862 | 17,718 | 16.74 | 1,718 | 6.38 | |||||||||||||||
Other | 357,307 | 69,827 | 19.54 | 4,985 | 5.47 | |||||||||||||||
Total | $ | 570,928 | $ | 107,441 | 18.82 | % | $ | 8,125 | 5.58 | % | ||||||||||
Alt-A junior lien: | ||||||||||||||||||||
New York | $ | 2,858 | $ | 288 | 10.08 | % | $ | 49 | 6.82 | % | ||||||||||
Pennsylvania | 640 | 33 | 5.16 | — | — | |||||||||||||||
Mid-Atlantic | 4,174 | 164 | 3.93 | 204 | 19.40 | |||||||||||||||
Other | 14,162 | 547 | 3.86 | 637 | 17.73 | |||||||||||||||
Total | $ | 21,834 | $ | 1,032 | 4.73 | % | $ | 890 | 16.09 | % | ||||||||||
First lien home equity loans: | ||||||||||||||||||||
New York | $ | 30,414 | $ | 576 | 1.89 | % | $ | 45 | 0.58 | % | ||||||||||
Pennsylvania | 170,328 | 2,979 | 1.75 | 34 | 0.08 | |||||||||||||||
Mid-Atlantic | 173,302 | 2,772 | 1.60 | 44 | 0.11 | |||||||||||||||
Other | 4,916 | 194 | 3.95 | — | — | |||||||||||||||
Total | $ | 378,960 | $ | 6,521 | 1.72 | % | $ | 123 | 0.13 | % | ||||||||||
First lien home equity lines: | ||||||||||||||||||||
New York | $ | 873,329 | $ | 2,675 | 0.31 | % | $ | 74 | 0.03 | % | ||||||||||
Pennsylvania | 593,468 | 1,084 | 0.18 | (50 | ) | (0.04 | ) | |||||||||||||
Mid-Atlantic | 639,584 | 1,211 | 0.19 | 80 | 0.05 | |||||||||||||||
Other | 40,161 | 517 | 1.29 | — | — | |||||||||||||||
Total | $ | 2,146,542 | $ | 5,487 | 0.26 | % | $ | 104 | 0.02 | % | ||||||||||
Junior lien home equity loans: | ||||||||||||||||||||
New York | $ | 72,903 | $ | 1,245 | 1.71 | % | $ | (3 | ) | (0.01 | )% | |||||||||
Pennsylvania | 84,364 | 2,386 | 2.83 | 70 | 0.33 | |||||||||||||||
Mid-Atlantic | 180,539 | 2,927 | 1.62 | 219 | 0.53 | |||||||||||||||
Other | 16,242 | 634 | 3.90 | 34 | 0.84 | |||||||||||||||
Total | $ | 354,048 | $ | 7,192 | 2.03 | % | $ | 320 | 0.38 | % | ||||||||||
Junior lien home equity lines: | ||||||||||||||||||||
New York | $ | 1,629,613 | $ | 17,907 | 1.10 | % | $ | 4,075 | 1.01 | % | ||||||||||
Pennsylvania | 608,020 | 1,954 | 0.32 | 396 | 0.28 | |||||||||||||||
Mid-Atlantic | 1,594,795 | 6,612 | 0.41 | 1,372 | 0.36 | |||||||||||||||
Other | 98,710 | 3,236 | 3.28 | 273 | 1.27 | |||||||||||||||
Total | $ | 3,931,138 | $ | 29,709 | 0.76 | % | $ | 6,116 | 0.64 | % | ||||||||||
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Dollars in thousands
2011 Quarters | 2010 Quarters | |||||||||||||||||||
Second | First | Fourth | Third | Second | ||||||||||||||||
Nonaccrual loans | $ | 1,258,975 | 1,211,111 | 1,239,194 | 1,099,560 | 1,090,135 | ||||||||||||||
Real estate and other foreclosed assets | 158,873 | 218,203 | 220,049 | 192,600 | 192,631 | |||||||||||||||
Total nonperforming assets | $ | 1,417,848 | 1,429,314 | 1,459,243 | 1,292,160 | 1,282,766 | ||||||||||||||
Accruing loans past due 90 days or more(a) | $ | 373,197 | 264,480 | 269,593 | 214,769 | 203,081 | ||||||||||||||
Renegotiated loans | $ | 234,726 | 241,190 | 233,342 | 233,671 | 228,847 | ||||||||||||||
Government guaranteed loans included in totals above: | ||||||||||||||||||||
Nonaccrual loans | $ | 78,732 | 69,353 | 56,787 | 38,232 | 40,271 | ||||||||||||||
Accruing loans past due 90 days or more | 207,135 | 214,505 | 214,111 | 194,223 | 187,682 | |||||||||||||||
Purchased impaired loans(b): | ||||||||||||||||||||
Outstanding customer balance | $ | 1,473,237 | 206,253 | 219,477 | 113,964 | 130,808 | ||||||||||||||
Carrying amount | 752,978 | 88,589 | 97,019 | 52,728 | 61,524 | |||||||||||||||
Nonaccrual loans to total loans and leases, net of unearned discount | 2.15 | % | 2.32 | % | 2.38 | % | 2.16 | % | 2.13 | % | ||||||||||
Nonperforming assets to total net loans and leases and real estate and other foreclosed assets | 2.42 | % | 2.73 | % | 2.79 | % | 2.53 | % | 2.50 | % | ||||||||||
Accruing loans past due 90 days or more to total loans and leases, net of unearned discount | .64 | % | .51 | % | .52 | % | .42 | % | .40 | % | ||||||||||
(a) | Predominately residential mortgage loans. | |
(b) | Accruing loans that were impaired at acquisition date and recorded at fair value. |
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real estate loans that the Company could have been required to repurchase, the Company has regularly reduced residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges varies based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. Residential mortgage banking revenues during the three-month periods ended June 30, 2011, June 30, 2010 and March 31, 2011 were reduced by $9 million, $6 million and $3 million, respectively, related to actual and anticipated settlements of repurchase obligations. |
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As a percentage of carrying value | ||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||
unrealized | Current | |||||||||||||||||||||||||||||||
Amortized | Fair | gains | AAA | Investment | Senior | Credit | payment | |||||||||||||||||||||||||
Collateral type | cost | value | (losses) | rated | grade | tranche | enhancement (b) | status(c) | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||||||
Prime — Fixed | $ | 73,680 | 78,232 | 4,552 | 45 | % | 65 | % | 99 | % | 5 | % | 100 | % | ||||||||||||||||||
Prime — Hybrid ARMs | 1,268,212 | 1,112,600 | (155,612 | ) | 2 | 44 | 95 | 7 | 85 | |||||||||||||||||||||||
Alt-A — Hybrid ARMs | 151,671 | 101,827 | (49,844 | ) | — | 13 | 85 | 9 | 88 | |||||||||||||||||||||||
Other | 14,184 | 13,543 | (641 | ) | 7 | 7 | 74 | 14 | 88 | |||||||||||||||||||||||
1,507,747 | 1,306,202 | (201,545 | ) | 4 | 42 | 94 | 8 | 86 | ||||||||||||||||||||||||
Commercial mortgage loans | 21,095 | 17,233 | (3,862 | ) | 25 | 100 | 100 | 100 | 100 | |||||||||||||||||||||||
1,528,842 | 1,323,435 | (205,407 | ) | 4 | % | 42 | % | 94 | % | 9 | % | 86 | % | |||||||||||||||||||
Investment securities held to maturity: | ||||||||||||||||||||||||||||||||
Residential and commercial mortgage loans | 292,034 | 189,776 | (102,258 | ) | 38 | % | 38 | % | 87 | % | 23 | % | 100 | % | ||||||||||||||||||
$ | 1,820,876 | 1,513,211 | (307,665 | ) | 9 | % | 42 | % | 93 | % | 12 | % | 88 | % | ||||||||||||||||||
(a) | All information is as of June 30, 2011. |
(b) | Weighted-average credit enhancement is calculated by dividing the remaining unpaid principal balance of bonds subordinate to the bonds owned by the Company plus any overcollateralization remaining in the securitization structure by the remaining unpaid principal balance of all bonds in the securitization structure. | |
(c) | Represents percentage of amortized cost related to bonds for which the full amount of all contractually required principal and interest payments expected at acquisition continue to be received. |
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1st Qtr. | 2nd Qtr. | Year-to-date | ||||||||||
(in thousands) | ||||||||||||
Series A — 2011 | $ | 7,500 | 7,654 | 15,154 | ||||||||
Series A — 2010 | 7,500 | 7,500 | 15,000 | |||||||||
Series B — 2011 | 1,104 | — | 1,104 | |||||||||
Series B — 2010 | 662 | 663 | 1,325 | |||||||||
Series C — 2011 | 1,894 | 1,894 | 3,788 | |||||||||
Series C — 2010 | 1,894 | 1,894 | 3,788 | |||||||||
Totals — 2011 | $ | 10,498 | 9,548 | 20,046 | ||||||||
Totals — 2010 | $ | 10,056 | 10,057 | 20,113 | ||||||||
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June 30, 2011
M&T | M&T | M&T | ||||||||||
(Consolidated) | Bank | Bank, N.A. | ||||||||||
Tier 1 capital | 9.52 | % | 8.12 | % | 33.03 | % | ||||||
Total capital | 13.20 | % | 11.41 | % | 34.10 | % | ||||||
Tier 1 leverage | 9.80 | % | 8.35 | % | 23.79 | % |
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2011 Quarters | 2010 Quarters | |||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | |||||||||||||||||||
Earnings and dividends | ||||||||||||||||||||||||
Amounts in thousands, except per share | ||||||||||||||||||||||||
Interest income (taxable—equivalent basis) | $ | 694,721 | 673,810 | 688,855 | 691,765 | 690,889 | 682,309 | |||||||||||||||||
Interest expense | 102,051 | 98,679 | 108,628 | 116,032 | 117,557 | 120,052 | ||||||||||||||||||
Net interest income | 592,670 | 575,131 | 580,227 | 575,733 | 573,332 | 562,257 | ||||||||||||||||||
Less: provision for credit losses | 63,000 | 75,000 | 85,000 | 93,000 | 85,000 | 105,000 | ||||||||||||||||||
Other income | 501,656 | 314,420 | 286,938 | 289,899 | 273,557 | 257,706 | ||||||||||||||||||
Less: other expense | 576,895 | 499,571 | 469,274 | 480,133 | 476,068 | 489,362 | ||||||||||||||||||
Income before income taxes | 454,431 | 314,980 | 312,891 | 292,499 | 285,821 | 225,601 | ||||||||||||||||||
Applicable income taxes | 125,605 | 102,380 | 102,319 | 94,619 | 90,967 | 68,723 | ||||||||||||||||||
Taxable—equivalent adjustment | 6,468 | 6,327 | 6,130 | 5,865 | 6,105 | 5,923 | ||||||||||||||||||
Net income | $ | 322,358 | 206,273 | 204,442 | 192,015 | 188,749 | 150,955 | |||||||||||||||||
Net income available to common shareholders—diluted | $ | 297,179 | 190,121 | 189,678 | 176,789 | 173,597 | 136,431 | |||||||||||||||||
Per common share data | ||||||||||||||||||||||||
Basic earnings | $ | 2.43 | 1.59 | 1.59 | 1.49 | 1.47 | 1.16 | |||||||||||||||||
Diluted earnings | 2.42 | 1.59 | 1.59 | 1.48 | 1.46 | 1.15 | ||||||||||||||||||
Cash dividends | $ | .70 | .70 | .70 | .70 | .70 | .70 | |||||||||||||||||
Average common shares outstanding | ||||||||||||||||||||||||
Basic | 122,181 | 119,201 | 118,613 | 118,320 | 118,054 | 117,765 | ||||||||||||||||||
Diluted | 122,796 | 119,852 | 119,503 | 119,155 | 118,878 | 118,256 | ||||||||||||||||||
Performance ratios, annualized | ||||||||||||||||||||||||
Return on | ||||||||||||||||||||||||
Average assets | 1.78 | % | 1.23 | % | 1.18 | % | 1.12 | % | 1.11 | % | .89 | % | ||||||||||||
Average common shareholders’ equity | 14.94 | % | 10.16 | % | 10.03 | % | 9.56 | % | 9.67 | % | 7.86 | % | ||||||||||||
Net interest margin on average earning assets (taxable—equivalent basis) | 3.75 | % | 3.92 | % | 3.85 | % | 3.87 | % | 3.84 | % | 3.78 | % | ||||||||||||
Nonaccrual loans to total loans and leases, net of unearned discount | 2.15 | % | 2.32 | % | 2.38 | % | 2.16 | % | 2.13 | % | 2.60 | % | ||||||||||||
Efficiency ratio (a) | 57.12 | % | 57.18 | % | 54.08 | % | 54.95 | % | 54.77 | % | 57.82 | % | ||||||||||||
Net operating (tangible) results (b) | ||||||||||||||||||||||||
Net operating income (in thousands) | $ | 289,487 | 216,360 | 196,235 | 200,225 | 197,752 | 160,953 | |||||||||||||||||
Diluted net operating income per common share | 2.16 | 1.67 | 1.52 | 1.55 | 1.53 | 1.23 | ||||||||||||||||||
Annualized return on | ||||||||||||||||||||||||
Average tangible assets | 1.69 | % | 1.36 | % | 1.20 | % | 1.24 | % | 1.23 | % | 1.00 | % | ||||||||||||
Average tangible common shareholders’ equity | 24.40 | % | 20.16 | % | 18.43 | % | 19.58 | % | 20.36 | % | 17.34 | % | ||||||||||||
Efficiency ratio (a) | 55.56 | % | 55.75 | % | 52.55 | % | 53.40 | % | 53.06 | % | 55.88 | % | ||||||||||||
Balance sheet data | ||||||||||||||||||||||||
In millions, except per share | ||||||||||||||||||||||||
Average balances | ||||||||||||||||||||||||
Total assets (c) | $ | 72,454 | 68,045 | 68,502 | 67,811 | 68,334 | 68,883 | |||||||||||||||||
Total tangible assets (c) | 68,777 | 64,423 | 64,869 | 64,167 | 64,679 | 65,216 | ||||||||||||||||||
Earning assets | 63,382 | 59,431 | 59,737 | 59,066 | 59,811 | 60,331 | ||||||||||||||||||
Investment securities | 6,394 | 7,219 | 7,541 | 7,993 | 8,376 | 8,172 | ||||||||||||||||||
Loans and leases, net of unearned discount | 55,461 | 51,972 | 51,141 | 50,835 | 51,278 | 51,948 | ||||||||||||||||||
Deposits | 54,457 | 49,680 | 49,271 | 47,530 | 47,932 | 47,394 | ||||||||||||||||||
Common shareholders’ equity (c) | 8,096 | 7,708 | 7,582 | 7,444 | 7,302 | 7,136 | ||||||||||||||||||
Tangible common shareholders’ equity (c) | 4,419 | 4,086 | 3,949 | 3,800 | 3,647 | 3,469 | ||||||||||||||||||
At end of quarter | ||||||||||||||||||||||||
Total assets (c) | $ | 77,727 | 67,881 | 68,021 | 68,247 | 68,154 | 68,439 | |||||||||||||||||
Total tangible assets (c) | 73,995 | 64,263 | 64,393 | 64,609 | 64,505 | 64,778 | ||||||||||||||||||
Earning assets | 67,837 | 58,822 | 59,434 | 59,388 | 59,368 | 59,741 | ||||||||||||||||||
Investment securities | 6,492 | 6,507 | 7,151 | 7,663 | 8,098 | 8,105 | ||||||||||||||||||
Loans and leases, net of unearned discount | 58,541 | 52,119 | 51,990 | 50,792 | 51,061 | 51,444 | ||||||||||||||||||
Deposits | 59,229 | 50,548 | 49,805 | 48,655 | 47,523 | 47,538 | ||||||||||||||||||
Common shareholders’ equity, net of undeclared cumulative preferred dividends (c) | 8,380 | 7,758 | 7,611 | 7,488 | 7,360 | 7,177 | ||||||||||||||||||
Tangible common shareholders’ equity (c) | 4,648 | 4,140 | 3,983 | 3,850 | 3,711 | 3,516 | ||||||||||||||||||
Equity per common share | 66.71 | 64.43 | 63.54 | 62.69 | 61.77 | 60.40 | ||||||||||||||||||
Tangible equity per common share | 37.00 | 34.38 | 33.26 | 32.23 | 31.15 | 29.59 | ||||||||||||||||||
Market price per common share | ||||||||||||||||||||||||
High | $ | 90.76 | 91.05 | 87.87 | 95.00 | 96.15 | 85.00 | |||||||||||||||||
Low | 83.31 | 84.63 | 72.03 | 81.08 | 74.11 | 66.32 | ||||||||||||||||||
Closing | 87.95 | 88.47 | 87.05 | 81.81 | 84.95 | 79.38 | ||||||||||||||||||
(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 shareholders’ equity and tangible common shareholders’ 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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2011 Quarters | 2010 Quarters | |||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | |||||||||||||||||||
Income statement data | ||||||||||||||||||||||||
In thousands, except per share | ||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||
Net income | $ | 322,358 | 206,273 | 204,442 | 192,015 | 188,749 | 150,955 | |||||||||||||||||
Amortization of core deposit and other intangible assets (a) | 8,974 | 7,478 | 8,054 | 8,210 | 9,003 | 9,998 | ||||||||||||||||||
Merger—related gain (a) | (64,930 | ) | — | (16,730 | ) | — | — | — | ||||||||||||||||
Merger—related expenses (a) | 23,085 | 2,609 | 469 | — | — | — | ||||||||||||||||||
Net operating income | $ | 289,487 | 216,360 | 196,235 | 200,225 | 197,752 | 160,953 | |||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 2.42 | 1.59 | 1.59 | 1.48 | 1.46 | 1.15 | |||||||||||||||||
Amortization of core deposit and other intangible assets (a) | .07 | .06 | .07 | .07 | .07 | .08 | ||||||||||||||||||
Merger—related gain (a) | (.52 | ) | — | (.14 | ) | — | — | — | ||||||||||||||||
Merger—related expenses (a) | .19 | .02 | — | — | — | — | ||||||||||||||||||
Diluted net operating earnings per common share | $ | 2.16 | 1.67 | 1.52 | 1.55 | 1.53 | 1.23 | |||||||||||||||||
Other expense | ||||||||||||||||||||||||
Other expense | $ | 576,895 | 499,571 | 469,274 | 480,133 | 476,068 | 489,362 | |||||||||||||||||
Amortization of core deposit and other intangible assets | (14,740 | ) | (12,314 | ) | (13,269 | ) | (13,526 | ) | (14,833 | ) | (16,475 | ) | ||||||||||||
Merger—related expenses | (36,996 | ) | (4,295 | ) | (771 | ) | — | — | — | |||||||||||||||
Noninterest operating expense | $ | 525,159 | 482,962 | 455,234 | 466,607 | 461,235 | 472,887 | |||||||||||||||||
Merger—related expenses | ||||||||||||||||||||||||
Salaries and employee benefits | $ | 15,305 | 7 | 7 | — | — | — | |||||||||||||||||
Equipment and net occupancy | 25 | 79 | 44 | — | — | — | ||||||||||||||||||
Printing, postage and supplies | 318 | 147 | 74 | — | — | — | ||||||||||||||||||
Other costs of operations | 21,348 | 4,062 | 646 | — | — | — | ||||||||||||||||||
Total | $ | 36,996 | 4,295 | 771 | — | — | — | |||||||||||||||||
Balance sheet data | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||
Average assets | ||||||||||||||||||||||||
Average assets | $ | 72,454 | 68,045 | 68,502 | 67,811 | 68,334 | 68,883 | |||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | ||||||||||||
Core deposit and other intangible assets | (198 | ) | (119 | ) | (132 | ) | (146 | ) | (160 | ) | (176 | ) | ||||||||||||
Deferred taxes | 46 | 22 | 24 | 27 | 30 | 34 | ||||||||||||||||||
Average tangible assets | $ | 68,777 | 64,423 | 64,869 | 64,167 | 64,679 | 65,216 | |||||||||||||||||
Average common equity | ||||||||||||||||||||||||
Average total equity | $ | 8,812 | 8,451 | 8,322 | 8,181 | 8,036 | 7,868 | |||||||||||||||||
Preferred stock | (716 | ) | (743 | ) | (740 | ) | (737 | ) | (734 | ) | (732 | ) | ||||||||||||
Average common equity | 8,096 | 7,708 | 7,582 | 7,444 | 7,302 | 7,136 | ||||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | ||||||||||||
Core deposit and other intangible assets | (198 | ) | (119 | ) | (132 | ) | (146 | ) | (160 | ) | (176 | ) | ||||||||||||
Deferred taxes | 46 | 22 | 24 | 27 | 30 | 34 | ||||||||||||||||||
Average tangible common equity | $ | 4,419 | 4,086 | 3,949 | 3,800 | 3,647 | 3,469 | |||||||||||||||||
At end of quarter | ||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||
Total assets | $ | 77,727 | 67,881 | 68,021 | 68,247 | 68,154 | 68,439 | |||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | ||||||||||||
Core deposit and other intangible assets | (275 | ) | (113 | ) | (126 | ) | (139 | ) | (152 | ) | (167 | ) | ||||||||||||
Deferred taxes | 68 | 20 | 23 | 26 | 28 | 31 | ||||||||||||||||||
Total tangible assets | $ | 73,995 | 64,263 | 64,393 | 64,609 | 64,505 | 64,778 | |||||||||||||||||
Total common equity | ||||||||||||||||||||||||
Total equity | $ | 9,244 | 8,508 | 8,358 | 8,232 | 8,102 | 7,916 | |||||||||||||||||
Preferred stock | (861 | ) | (743 | ) | (741 | ) | (738 | ) | (735 | ) | (733 | ) | ||||||||||||
Undeclared dividends — cumulative preferred stock | (3 | ) | (7 | ) | (6 | ) | (6 | ) | (7 | ) | (6 | ) | ||||||||||||
Common equity, net of undeclared cumulative preferred dividends | 8,380 | 7,758 | 7,611 | 7,488 | 7,360 | 7,177 | ||||||||||||||||||
Goodwill | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | (3,525 | ) | ||||||||||||
Core deposit and other intangible assets | (275 | ) | (113 | ) | (126 | ) | (139 | ) | (152 | ) | (167 | ) | ||||||||||||
Deferred taxes | 68 | 20 | 23 | 26 | 28 | 31 | ||||||||||||||||||
Total tangible common equity | $ | 4,648 | 4,140 | 3,983 | 3,850 | 3,711 | 3,516 | |||||||||||||||||
(a) | After any related tax effect. |
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2011 Second Quarter | 2011 First Quarter | 2010 Fourth 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. | $ | 14,623 | $ | 141,723 | 3.89 | % | 13,573 | 131,619 | 3.93 | % | 13,013 | 133,562 | 4.07 | % | ||||||||||||||||||||||
Real estate — commercial | 22,471 | 257,787 | 4.59 | 21,003 | 247,276 | 4.71 | 20,624 | 249,720 | 4.84 | |||||||||||||||||||||||||||
Real estate — consumer | 6,559 | 81,943 | 5.00 | 6,054 | 76,642 | 5.06 | 5,910 | 76,024 | 5.15 | |||||||||||||||||||||||||||
Consumer | 11,808 | 148,028 | 5.03 | 11,342 | 143,519 | 5.13 | 11,594 | 151,300 | 5.18 | |||||||||||||||||||||||||||
Total loans and leases, net | 55,461 | 629,481 | 4.55 | 51,972 | 599,056 | 4.67 | 51,141 | 610,606 | 4.74 | |||||||||||||||||||||||||||
Interest-bearing deposits at banks | 804 | 479 | .24 | 115 | 36 | .13 | 110 | 43 | .15 | |||||||||||||||||||||||||||
Federal funds sold and agreements to resell securities | 622 | 137 | .09 | 15 | 19 | .53 | 780 | 381 | .19 | |||||||||||||||||||||||||||
Trading account | 101 | 331 | 1.32 | 110 | 442 | 1.61 | 165 | 375 | .91 | |||||||||||||||||||||||||||
Investment securities** | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | 3,436 | 33,227 | 3.88 | 4,089 | 42,078 | 4.17 | 4,237 | 43,246 | 4.05 | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | 250 | 3,439 | 5.51 | 250 | 3,479 | 5.64 | 256 | 3,663 | 5.69 | |||||||||||||||||||||||||||
Other | 2,708 | 27,627 | 4.09 | 2,880 | 28,700 | 4.04 | 3,048 | 30,541 | 3.98 | |||||||||||||||||||||||||||
Total investment securities | 6,394 | 64,293 | 4.03 | 7,219 | 74,257 | 4.17 | 7,541 | 77,450 | 4.07 | |||||||||||||||||||||||||||
Total earning assets | 63,382 | 694,721 | 4.40 | 59,431 | 673,810 | 4.60 | 59,737 | 688,855 | 4.58 | |||||||||||||||||||||||||||
Allowance for credit losses | (913 | ) | (914 | ) | (910 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 1,116 | 1,091 | 1,111 | |||||||||||||||||||||||||||||||||
Other assets | 8,869 | 8,437 | 8,564 | |||||||||||||||||||||||||||||||||
Total assets | $ | 72,454 | 68,045 | 68,502 | ||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 742 | 274 | .15 | 628 | 202 | .13 | 608 | 212 | .14 | ||||||||||||||||||||||||||
Savings deposits | 30,043 | 20,757 | .28 | 27,669 | 19,239 | .28 | 27,545 | 21,860 | .31 | |||||||||||||||||||||||||||
Time deposits | 6,657 | 19,310 | 1.16 | 5,700 | 19,071 | 1.36 | 6,034 | 21,232 | 1.40 | |||||||||||||||||||||||||||
Deposits at Cayman Islands office | 820 | 193 | .09 | 1,182 | 394 | .14 | 809 | 352 | .17 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 38,262 | 40,534 | .42 | 35,179 | 38,906 | .45 | 34,996 | 43,656 | .49 | |||||||||||||||||||||||||||
Short-term borrowings | 707 | 147 | .08 | 1,344 | 492 | .15 | 1,439 | 633 | .17 | |||||||||||||||||||||||||||
Long-term borrowings | 7,076 | 61,370 | 3.48 | 7,368 | 59,281 | 3.26 | 8,141 | 64,339 | 3.14 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 46,045 | 102,051 | .89 | 43,891 | 98,679 | .91 | 44,576 | 108,628 | .97 | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 16,195 | 14,501 | 14,275 | |||||||||||||||||||||||||||||||||
Other liabilities | 1,402 | 1,202 | 1,329 | |||||||||||||||||||||||||||||||||
Total liabilities | 63,642 | 59,594 | 60,180 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 8,812 | 8,451 | 8,322 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 72,454 | 68,045 | 68,502 | ||||||||||||||||||||||||||||||||
Net interest spread | 3.51 | 3.69 | 3.61 | |||||||||||||||||||||||||||||||||
Contribution of interest-free funds | .24 | .23 | .24 | |||||||||||||||||||||||||||||||||
Net interest income/margin on earning assets | $ | 592,670 | 3.75 | % | 575,131 | 3.92 | % | 580,227 | 3.85 | % | ||||||||||||||||||||||||||
* | Includes nonaccrual loans. | |
** | Includes available for sale securities at amortized cost. |
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2010 Third Quarter | 2010 Second 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. | $ | 12,856 | $ | 128,578 | 3.97 | % | 13,096 | 131,460 | 4.03 | % | ||||||||||||||
Real estate — commercial | 20,612 | 250,038 | 4.85 | 20,759 | 240,728 | 4.64 | ||||||||||||||||||
Real estate — consumer | 5,680 | 75,312 | 5.30 | 5,653 | 75,643 | 5.35 | ||||||||||||||||||
Consumer | 11,687 | 153,763 | 5.22 | 11,770 | 153,728 | 5.24 | ||||||||||||||||||
Total loans and leases, net | 50,835 | 607,691 | 4.74 | 51,278 | 601,559 | 4.71 | ||||||||||||||||||
Interest—bearing deposits at banks | 92 | 34 | .15 | 81 | 5 | .02 | ||||||||||||||||||
Federal funds sold and agreements to resell securities | 64 | 41 | .26 | 10 | 11 | .41 | ||||||||||||||||||
Trading account | 82 | 134 | .65 | 66 | 159 | .96 | ||||||||||||||||||
Investment securities** | ||||||||||||||||||||||||
U.S. Treasury and federal agencies | 4,541 | 48,018 | 4.20 | 4,758 | 51,282 | 4.32 | ||||||||||||||||||
Obligations of states and political subdivisions | 271 | 3,740 | 5.48 | 272 | 3,963 | 5.85 | ||||||||||||||||||
Other | 3,181 | 32,107 | 4.00 | 3,346 | 33,910 | 4.07 | ||||||||||||||||||
Total investment securities | 7,993 | 83,865 | 4.16 | 8,376 | 89,155 | 4.27 | ||||||||||||||||||
Total earning assets | 59,066 | 691,765 | 4.65 | 59,811 | 690,889 | 4.63 | ||||||||||||||||||
Allowance for credit losses | (908 | ) | (905 | ) | ||||||||||||||||||||
Cash and due from banks | 1,081 | 1,068 | ||||||||||||||||||||||
Other assets | 8,572 | 8,360 | ||||||||||||||||||||||
Total assets | $ | 67,811 | 68,334 | |||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||
Interest—bearing liabilities | ||||||||||||||||||||||||
Interest—bearing deposits | ||||||||||||||||||||||||
NOW accounts | $ | 592 | 219 | .15 | 619 | 219 | .14 | |||||||||||||||||
Savings deposits | 26,177 | 21,453 | .33 | 25,942 | 21,464 | .33 | ||||||||||||||||||
Time deposits | 6,312 | 23,309 | 1.46 | 6,789 | 26,254 | 1.55 | ||||||||||||||||||
Deposits at Cayman Islands office | 802 | 315 | .16 | 972 | 376 | .16 | ||||||||||||||||||
Total interest—bearing deposits | 33,883 | 45,296 | .53 | 34,322 | 48,313 | .56 | ||||||||||||||||||
Short—term borrowings | 1,858 | 760 | .16 | 1,763 | 726 | .17 | ||||||||||||||||||
Long—term borrowings | 8,948 | 69,976 | 3.10 | 9,454 | 68,518 | 2.91 | ||||||||||||||||||
Total interest—bearing liabilities | 44,689 | 116,032 | 1.03 | 45,539 | 117,557 | 1.04 | ||||||||||||||||||
Noninterest—bearing deposits | 13,647 | 13,610 | ||||||||||||||||||||||
Other liabilities | 1,294 | 1,149 | ||||||||||||||||||||||
Total liabilities | 59,630 | 60,298 | ||||||||||||||||||||||
Shareholders’ equity | 8,181 | 8,036 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 67,811 | 68,334 | |||||||||||||||||||||
Net interest spread | 3.62 | 3.59 | ||||||||||||||||||||||
Contribution of interest—free funds | .25 | .25 | ||||||||||||||||||||||
Net interest income/margin on earning assets | $ | 575,733 | 3.87 | % | 573,332 | 3.84 | % | |||||||||||||||||
* | Includes nonaccrual loans. | |
** | Includes available for sale securities at amortized cost. |
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(a) — (b) Not applicable. |
(c) |
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) | ||||||||||||
April 1 — April 30, 2011 | 1,214 | $ | 88.37 | — | 2,181,500 | |||||||||||
May 1 — May 31, 2011 | 1,031 | 87.62 | — | 2,181,500 | ||||||||||||
June 1 — June 30, 2011 | 698 | 88.09 | — | 2,181,500 | ||||||||||||
Total | 2,943 | $ | 88.04 | — | ||||||||||||
(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. |
Item 3. | Defaults Upon Senior Securities. (Not applicable.) |
Item 4. | (Removed and Reserved). |
Item 5. | Other Information. (None.) |
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Exhibit | ||
No. | ||
3.1 | Certificate of Amendment to Certificate of Incorporation with respect to Perpetual 6.875% Non-Cumulative Preferred Stock, Series D, dated May 26, 2011 (incorporated by reference to Exhibit 99.2 of M&T Bank Corporation’s Form 8-K dated May 26, 2011). | |
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. | |
99.2 | Amendment to Replacement Capital Covenant of M&T Bank Corporation, dated as of May 27, 2011, amending the Replacement Capital Covenant, dated as of January 31, 2008 (incorporated by reference to Exhibit 99.2 of M&T Bank Corporation’s Form 8-K dated May 26, 2011). | |
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: August 9, 2011 | By: | /s/ René F. Jones | ||
René F. Jones | ||||
Executive Vice President and Chief Financial Officer |
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Exhibit | ||
No. | ||
3.1 | Certificate of Amendment to Certificate of Incorporation with respect to Perpetual 6.875% Non-Cumulative Preferred Stock, Series D, dated May 26, 2011 (incorporated by reference to Exhibit 99.2 of M&T Bank Corporation’s Form 8-K dated May 26, 2011). | |
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. | |
99.2 | Amendment to Replacement Capital Covenant of M&T Bank Corporation, dated as of May 27, 2011, amending the Replacement Capital Covenant, dated as of January 31, 2008 (incorporated by reference to Exhibit 99.2 of M&T Bank Corporation’s Form 8-K dated May 26, 2011). | |
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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