[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2004 | ||
or | ||
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 16-0968385 | |
(State of incorporation) | (I.R.S. Employer Identification No.) | |
One M&T Plaza, Buffalo, New York | 14203 | |
(Address of principal executive offices) | (Zip Code) |
Common Stock, $.50 par value | New York Stock Exchange | |
(Title of each class) | (Name of each exchange on which registered) |
(1) | Portions of the Proxy Statement for the 2005 Annual Meeting of Stockholders of M&T Bank Corporation in Parts II and III. |
Form 10-K | |||||||
Page | |||||||
PART I | |||||||
Item 1. Business | 5 | ||||||
Statistical disclosure pursuant to Guide 3 | |||||||
I. | Distribution of assets, liabilities, and stockholders’ equity; interest rates and interest differential | ||||||
A. | Average balance sheets | 37 | |||||
B. | Interest income/expense and resulting yield or rate on average interest-earning assets (including non-accrual loans) and interest-bearing liabilities | 37 | |||||
C. | Rate/volume variances | 24 | |||||
II. | Investment portfolio | ||||||
A. | Year-end balances | 22 | |||||
B. | Maturity schedule and weighted average yield | 63 | |||||
C. | Aggregate carrying value of securities that exceed ten percent of stockholders’ equity | 91 | |||||
III. | Loan portfolio | ||||||
A. | Year-end balances | 22, 94 | |||||
B. | Maturities and sensitivities to changes in interest rates | 61 | |||||
C. | Risk elements | ||||||
Nonaccrual, past due and renegotiated loans | 49 | ||||||
Actual and pro forma interest on certain loans | 94-95 | ||||||
Nonaccrual policy | 85 | ||||||
Loan concentrations | 54 | ||||||
IV. | Summary of loan loss experience | ||||||
A. | Analysis of the allowance for loan losses | 48 | |||||
Factors influencing management’s judgment concerning the adequacy of the allowance and provision | 47-54, 85 | ||||||
B. | Allocation of the allowance for loan losses | 53 | |||||
V. | Deposits | ||||||
A. | Average balances and rates | 37 | |||||
B. | Maturity schedule of domestic time deposits with balances of $100,000 or more | 64 | |||||
VI. | Return on equity and assets | 24, 31, 67 | |||||
VII. | Short-term borrowings | 100-101 | |||||
Item 2. Properties | 25, 97 | ||||||
Item 3. Legal Proceedings | 25 | ||||||
Item 4. Submission of Matters to a Vote of Security Holders | 25 | ||||||
Executive Officers of the Registrant | 25-27 |
-2-
Form 10-K Page | |||||||
PART II | |||||||
Item 5. | Market for Registrant’s Common Equity and Related Stockholder Matters | 27-28 | |||||
A. | Principal market | 27 | |||||
Market prices | 70 | ||||||
B. | Approximate number of holders at year-end | 22 | |||||
C. | Frequency and amount of dividends declared | 23-24, 70, 83 | |||||
D. | Restrictions on dividends | 7, 16, 18, 131-132 | |||||
E. | Repurchases of common stock | 27-28, 67-68 | |||||
Item 6. | Selected Financial Data | 28 | |||||
A. | Selected consolidated year-end balances | 22 | |||||
B. | Consolidated earnings, etc. | 23-24 | |||||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28-75 | |||||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 59-67, 76 | |||||
Item 8. | Financial Statements and Supplementary Data | 76 | |||||
A. | Report on Internal Control Over Financial Reporting | 77 | |||||
B. | Report of Independent Registered Public Accounting Firm | 78-79 | |||||
C. | Consolidated Balance Sheet — December 31, 2004 and 2003 | 80 | |||||
D. | Consolidated Statement of Income — Years ended December 31, 2004, 2003 and 2002 | 81 | |||||
E. | Consolidated Statement of Cash Flows — Years ended December 31, 2004, 2003 and 2002 | 82 | |||||
F. | Consolidated Statement of Changes in Stockholders’ Equity — Years ended December 31, 2004, 2003 and 2002 | 83 | |||||
G. | Notes to Financial Statements | 84-135 | |||||
H. | Quarterly Trends | 70 | |||||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 136 | |||||
Item 9A. | Controls and Procedures | 136 | |||||
A. | Conclusions of principal executive officer and principal financial officer regarding disclosure controls and procedures | 136 | |||||
B. | Management’s annual report on internal control over financial reporting | 136 | |||||
C. | Attestation report of the registered public accounting firm | 136 | |||||
D. | Changes in internal control over financial reporting | 136 | |||||
Item 9B. | Other Information | 136 |
-3-
PART III | ||||||
Item 10. | Directors and Executive Officers of the Registrant | 136 | ||||
Item 11. | Executive Compensation | 137 | ||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 137 | ||||
Item 13. | Certain Relationships and Related Transactions | 137 | ||||
Item 14. | Principal Accountant Fees and Services | 137 | ||||
PART IV | ||||||
Item 15. | Exhibits and Financial Statement Schedules | 137 | ||||
SIGNATURES | 138-140 | |||||
EXHIBIT INDEX | 141-146 |
-4-
Item 1. | Business. |
-5-
• | As long as AIB holds at least 15% of the outstanding shares of M&T common stock, AIB will be entitled to designate four persons on both the M&T and M&T Bank boards of directors and representation on the committees of the M&T board described above. | |
• | If AIB holds at least 10%, but less than 15%, of the outstanding shares of M&T common stock, AIB will be entitled to designate at least two people on both the M&T and M&T Bank boards of directors. | |
• | If AIB’s ownership interest in M&T is at least 5%, but less than 10%, of the outstanding shares of M&T common stock, AIB will be entitled to designate at least one person on both the M&T and M&T Bank boards of directors. | |
• | As long as AIB holds at least 15% of the outstanding shares of M&T common stock, neither M&T’s board of directors nor M&T Bank’s board of directors will consist of more than twenty-eight directors without the consent of the AIB Designees. | |
• | If AIB’s holdings of M&T common stock fall below 15%, but not lower than 12% of the outstanding shares of M&T common stock, AIB will continue to have the same rights that it would have had if it owned 15% of the outstanding shares of M&T common stock, as long as AIB restores its ownership percentage to 15% within one year. Additionally, as described in more detail below, M&T has agreed to repurchase shares of M&T common stock in order to offset dilution to AIB’s ownership interests that may otherwise be caused by issuances of M&T common stock under M&T employee and director benefit or stock purchase plans. Dilution of AIB’s ownership position caused by such issuances will not be counted in determining whether the “Sunset Date” has occurred or whether any of AIB’s other rights under the Reorganization Agreement have terminated. The “Sunset Date” is the date on which AIB no longer holds at least 15% of the M&T common stock, calculated as described in this paragraph. |
-6-
• | Any amendment of M&T’s Certificate of Incorporation or bylaws that would be inconsistent with the rights described herein or that would otherwise have an adverse effect on the board representation, committee representation or other rights of AIB contemplated by the Reorganization Agreement; | |
• | Any activity not permissible for a U.S. bank holding company; | |
• | The adoption of any shareholder rights plan or other measures having the purpose or effect of preventing or materially delaying completion of any transaction involving a change in control of M&T; and | |
• | Any public announcement disclosing M&T’s desire or intention to take any of the foregoing actions. |
• | Any reduction in M&T’s cash dividend policy such that the ratio of cash dividends to net income is less than 15%, or any extraordinary dividends or distributions to holders of M&T common stock; | |
• | Any acquisition of any assets or businesses, (1) if the consideration is in M&T common stock, where the stock consideration paid by M&T exceeds 10% of the aggregate voting power of M&T common stock and (2) if the consideration is cash, M&T stock or other consideration, where the fair market value of the consideration paid by M&T exceeds 10% of the market capitalization of M&T, as determined under the Reorganization Agreement; | |
• | Any sale of any assets or businesses in which the value of the aggregate consideration to be received exceeds 10% of the market capitalization of M&T, as determined under the Reorganization Agreement; | |
• | Any liquidation or dissolution of M&T; | |
• | The appointment or election of the Chairman of the board of directors or the Chief Executive Officer of M&T; and | |
• | Any public announcement disclosing M&T’s desire or intention to take any of the foregoing actions prior to obtaining the requisite committee approval. |
-7-
-8-
-9-
Number of | ||||||||||||
Loans | Deposits | Branches | ||||||||||
(In millions) | ||||||||||||
Keystone Financial, Inc. | $ | 4,847 | 5,183 | 187 | ||||||||
Premier National Bancorp, Inc. | 994 | 1,389 | 34 | |||||||||
Allfirst Financial Inc. | 10,265 | 10,936 | 269 |
-10-
-11-
-12-
-13-
-14-
-15-
-16-
-17-
-18-
-19-
-20-
-21-
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Money-market assets | ||||||||||||||||||||||
Interest-bearing deposits at banks | $ | 10,242 | $ | 13,194 | $ | 7,856 | $ | 4,341 | $ | 3,102 | ||||||||||||
Federal funds sold and resell agreements | 29,176 | 22,288 | 320,359 | 41,086 | 17,261 | |||||||||||||||||
Trading account | 159,946 | 214,833 | 51,628 | 38,929 | 37,431 | |||||||||||||||||
Total money-market assets | 199,364 | 250,315 | 379,843 | 84,356 | 57,794 | |||||||||||||||||
Investment securities | ||||||||||||||||||||||
U.S. Treasury and federal agencies | 3,965,110 | 3,398,547 | 1,209,180 | 1,448,397 | 1,984,347 | |||||||||||||||||
Obligations of states and political subdivisions | 204,792 | 249,193 | 256,023 | 306,768 | 249,425 | |||||||||||||||||
Other | 4,304,717 | 3,611,410 | 2,489,947 | 1,268,972 | 1,076,081 | |||||||||||||||||
Total investment securities | 8,474,619 | 7,259,150 | 3,955,150 | 3,024,137 | 3,309,853 | |||||||||||||||||
Loans and leases | ||||||||||||||||||||||
Commercial, financial, leasing, etc. | 10,169,695 | 9,406,399 | 5,399,738 | 5,205,834 | 5,171,959 | |||||||||||||||||
Real estate — construction | 1,797,106 | 1,537,880 | 1,001,553 | 1,034,362 | 900,170 | |||||||||||||||||
Real estate — mortgage | 15,538,227 | 13,932,731 | 12,010,464 | 12,929,102 | 11,732,168 | |||||||||||||||||
Consumer | 11,139,594 | 11,160,588 | 7,525,187 | 6,226,170 | 5,166,017 | |||||||||||||||||
Total loans and leases | 38,644,622 | 36,037,598 | 25,936,942 | 25,395,468 | 22,970,314 | |||||||||||||||||
Unearned discount | (246,145 | ) | (265,163 | ) | (209,158 | ) | (207,708 | ) | (227,500 | ) | ||||||||||||
Allowance for credit losses | (626,864 | ) | (614,058 | ) | (436,472 | ) | (425,008 | ) | (374,703 | ) | ||||||||||||
Loans and leases, net | 37,771,613 | 35,158,377 | 25,291,312 | 24,762,752 | 22,368,111 | |||||||||||||||||
Goodwill | 2,904,081 | 2,904,081 | 1,097,553 | 1,097,553 | 1,000,837 | |||||||||||||||||
Core deposit and other intangible assets | 165,507 | 240,830 | 118,790 | 170,273 | 198,570 | |||||||||||||||||
Real estate and other assets owned | 12,504 | 19,629 | 17,380 | 16,387 | 13,619 | |||||||||||||||||
Total assets | 52,938,721 | 49,826,081 | 33,201,181 | 31,469,185 | 28,963,784 | |||||||||||||||||
Noninterest-bearing deposits | 8,417,365 | 8,411,296 | 4,072,085 | 3,704,004 | 3,344,913 | |||||||||||||||||
NOW accounts | 828,999 | 1,738,427 | 1,029,060 | 930,400 | 873,472 | |||||||||||||||||
Savings deposits | 14,721,663 | 14,118,521 | 9,156,678 | 7,980,065 | 6,105,689 | |||||||||||||||||
Time deposits | 7,228,514 | 6,637,249 | 6,246,384 | 8,188,036 | 9,664,088 | |||||||||||||||||
Deposits at foreign office | 4,232,932 | 2,209,451 | 1,160,716 | 777,895 | 244,511 | |||||||||||||||||
Total deposits | 35,429,473 | 33,114,944 | 21,664,923 | 21,580,400 | 20,232,673 | |||||||||||||||||
Short-term borrowings | 4,703,664 | 4,442,246 | 3,429,414 | 3,045,830 | 2,072,824 | |||||||||||||||||
Long-term borrowings | 6,348,559 | 5,535,425 | 4,497,374 | 3,461,769 | 3,414,516 | |||||||||||||||||
Total liabilities | 47,209,107 | 44,108,871 | 29,992,702 | 28,510,745 | 26,248,971 | |||||||||||||||||
Stockholders’ equity | 5,729,614 | 5,717,210 | 3,208,479 | 2,958,440 | 2,714,813 |
Number at Year-End | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||
Stockholders | 10,857 | 11,258 | 11,587 | 12,565 | 11,936 | |||||||||||||||
Employees | 13,371 | 14,000 | 9,197 | 9,291 | 8,736 | |||||||||||||||
Offices | 713 | 735 | 493 | 513 | 488 |
-22-
2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest income | |||||||||||||||||||||
Loans and leases, including fees | $ | 1,974,469 | $ | 1,897,701 | $ | 1,670,412 | $ | 1,892,507 | $ | 1,579,701 | |||||||||||
Money-market assets | |||||||||||||||||||||
Deposits at banks | 65 | 147 | 76 | 116 | 308 | ||||||||||||||||
Federal funds sold and resell agreements | 134 | 1,875 | 4,455 | 2,027 | 12,891 | ||||||||||||||||
Trading account | 375 | 592 | 202 | 348 | 1,009 | ||||||||||||||||
Investment securities | |||||||||||||||||||||
Fully taxable | 309,141 | 210,968 | 148,221 | 182,767 | 165,811 | ||||||||||||||||
Exempt from federal taxes | 14,548 | 15,282 | 18,733 | 24,120 | 13,064 | ||||||||||||||||
Total interest income | 2,298,732 | 2,126,565 | 1,842,099 | 2,101,885 | 1,772,784 | ||||||||||||||||
Interest expense | |||||||||||||||||||||
NOW accounts | 1,802 | 3,613 | 3,900 | 8,548 | 7,487 | ||||||||||||||||
Savings deposits | 92,064 | 102,190 | 107,281 | 134,454 | 132,225 | ||||||||||||||||
Time deposits | 154,722 | 159,700 | 237,001 | 453,940 | 445,666 | ||||||||||||||||
Deposits at foreign office | 43,034 | 14,991 | 8,460 | 11,264 | 14,915 | ||||||||||||||||
Short-term borrowings | 71,172 | 49,064 | 52,723 | 124,810 | 172,466 | ||||||||||||||||
Long-term borrowings | 201,366 | 198,252 | 185,149 | 210,581 | 145,838 | ||||||||||||||||
Total interest expense | 564,160 | 527,810 | 594,514 | 943,597 | 918,597 | ||||||||||||||||
Net interest income | 1,734,572 | 1,598,755 | 1,247,585 | 1,158,288 | 854,187 | ||||||||||||||||
Provision for credit losses | 95,000 | 131,000 | 122,000 | 103,500 | 38,000 | ||||||||||||||||
Net interest income after provision for credit losses | 1,639,572 | 1,467,755 | 1,125,585 | 1,054,788 | 816,187 | ||||||||||||||||
Other income | |||||||||||||||||||||
Mortgage banking revenues | 124,353 | 149,105 | 116,408 | 102,699 | 63,168 | ||||||||||||||||
Service charges on deposit accounts | 366,301 | 309,749 | 167,531 | 144,302 | 92,544 | ||||||||||||||||
Trust income | 136,296 | 114,620 | 60,030 | 64,395 | 45,165 | ||||||||||||||||
Brokerage services income | 53,740 | 51,184 | 43,261 | 39,349 | 32,795 | ||||||||||||||||
Trading account and foreign exchange gains | 19,435 | 15,989 | 2,860 | 4,462 | 2,351 | ||||||||||||||||
Gain (loss) on sales of bank investment securities | 2,874 | 2,487 | (608 | ) | 1,873 | (3,078 | ) | ||||||||||||||
Other revenues from operations | 239,970 | 187,961 | 122,449 | 120,346 | 91,727 | ||||||||||||||||
Total other income | 942,969 | 831,095 | 511,931 | 477,426 | 324,672 | ||||||||||||||||
Other expense | |||||||||||||||||||||
Salaries and employee benefits | 806,552 | 740,324 | 496,990 | 467,194 | 353,312 | ||||||||||||||||
Equipment and net occupancy | 179,595 | 170,623 | 107,822 | 111,403 | 80,960 | ||||||||||||||||
Printing, postage and supplies | 34,476 | 36,985 | 25,378 | 25,512 | 20,138 | ||||||||||||||||
Amortization of goodwill | — | — | — | 61,820 | 35,760 | ||||||||||||||||
Amortization of core deposit and other intangible assets | 75,410 | 78,152 | 51,484 | 59,816 | 33,816 | ||||||||||||||||
Other costs of operations | 419,985 | 422,096 | 279,937 | 254,830 | 194,570 | ||||||||||||||||
Total other expense | 1,516,018 | 1,448,180 | 961,611 | 980,575 | 718,556 | ||||||||||||||||
Income before income taxes | 1,066,523 | 850,670 | 675,905 | 551,639 | 422,303 | ||||||||||||||||
Income taxes | 344,002 | 276,728 | 219,153 | 198,551 | 154,109 | ||||||||||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | $ | 353,088 | $ | 268,194 | |||||||||||
Dividends declared — Common | $ | 187,669 | $ | 135,423 | $ | 96,858 | $ | 95,872 | $ | 51,987 |
-23-
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
Per share | ||||||||||||||||||||||
Net income | ||||||||||||||||||||||
Basic | $ | 6.14 | $ | 5.08 | $ | 4.94 | $ | 3.69 | $ | 3.33 | ||||||||||||
Diluted | 6.00 | 4.95 | 4.78 | 3.58 | 3.24 | |||||||||||||||||
Cash dividends declared | 1.60 | 1.20 | 1.05 | 1.00 | .625 | |||||||||||||||||
Stockholders’ equity at year-end | 49.68 | 47.55 | 34.82 | 31.54 | 29.09 | |||||||||||||||||
Tangible stockholders’ equity at year-end | 23.62 | 21.97 | 22.04 | 18.54 | 16.89 | |||||||||||||||||
Dividend payout ratio | 26.00 | % | 23.62 | % | 21.24 | % | 27.19 | % | 19.40 | % |
2004 Compared with 2003 | 2003 Compared with 2002 | |||||||||||||||||||||||||
Resulting from | Resulting from | |||||||||||||||||||||||||
Changes in: | Changes in: | |||||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||||
Change | Volume | Rate | Change | Volume | Rate | |||||||||||||||||||||
(Increase (decrease) in thousands) | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Loans and leases, including fees | $ | 78,758 | 172,755 | (93,997 | ) | $ | 229,543 | 499,739 | (270,196 | ) | ||||||||||||||||
Money-market assets | ||||||||||||||||||||||||||
Deposits at banks | (82 | ) | (15 | ) | (67 | ) | 71 | 91 | (20 | ) | ||||||||||||||||
Federal funds sold and agreements to resell securities | (1,741 | ) | (2,118 | ) | 377 | (2,580 | ) | (1,764 | ) | (816 | ) | |||||||||||||||
Trading account | (229 | ) | (23 | ) | (206 | ) | 400 | 518 | (118 | ) | ||||||||||||||||
Investment securities | ||||||||||||||||||||||||||
U.S. Treasury and federal agencies | 52,744 | 60,442 | (7,698 | ) | 24,797 | 60,881 | (36,084 | ) | ||||||||||||||||||
Obligations of states and political subdivisions | (810 | ) | (2,230 | ) | 1,420 | (2,001 | ) | (1,727 | ) | (274 | ) | |||||||||||||||
Other | 44,544 | 48,932 | (4,388 | ) | 36,500 | 43,166 | (6,666 | ) | ||||||||||||||||||
Total interest income | $ | 173,184 | $ | 286,730 | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||
NOW accounts | $ | (1,811 | ) | (1,611 | ) | (200 | ) | $ | (287 | ) | 1,123 | (1,410 | ) | |||||||||||||
Savings deposits | (10,126 | ) | 14,311 | (24,437 | ) | (5,091 | ) | 42,013 | (47,104 | ) | ||||||||||||||||
Time deposits | (4,978 | ) | 7,281 | (12,259 | ) | (77,301 | ) | (22,736 | ) | (54,565 | ) | |||||||||||||||
Deposits at foreign office | 28,043 | 22,081 | 5,962 | 6,531 | 9,725 | (3,194 | ) | |||||||||||||||||||
Short-term borrowings | 22,108 | 10,137 | 11,971 | (3,659 | ) | 16,850 | (20,509 | ) | ||||||||||||||||||
Long-term borrowings | 3,114 | (6,268 | ) | 9,382 | 13,103 | 69,234 | (56,131 | ) | ||||||||||||||||||
Total interest expense | $ | 36,350 | $ | (66,704 | ) | |||||||||||||||||||||
(a) | Interest income data are on a taxable-equivalent basis. The apportionment of changes resulting from the combined effect of both volume and rate was based on the separately determined volume and rate changes. |
-24-
Item 2. | Properties. |
Item 3. | Legal Proceedings. |
Item 4. | Submission of Matters to a Vote of Security Holders. |
-25-
-26-
Item 5. | Market for Registrant’s Common Equity and Related Stockholder Matters. |
-27-
Issuer Purchases of Equity Securities | ||||||||||||||||
(d)Maximum | ||||||||||||||||
(c)Total | Number (or | |||||||||||||||
Number of | Approximate | |||||||||||||||
Shares | Dollar Value) | |||||||||||||||
(or Units) | of Shares (or | |||||||||||||||
Purchased | Units) that | |||||||||||||||
(a)Total | as Part of | may yet be | ||||||||||||||
Number | (b)Average | Publicly | Purchased | |||||||||||||
of Shares | Price Paid | Announced | Under the | |||||||||||||
(or Units) | per Share | Plans or | Plans or | |||||||||||||
Period | Purchased(1) | (or Unit) | Programs | Programs(2) | ||||||||||||
October 1 - October 31, 2004 | 437,050 | $ | 98.05 | 408,000 | 907,300 | |||||||||||
November 1 - November 30, 2004 | 510,738 | 104.95 | 510,200 | 397,100 | ||||||||||||
December 1 - December 31, 2004 | 551,029 | 105.71 | 550,000 | 4,847,100 | ||||||||||||
Total | 1,498,817 | $ | 103.22 | 1,468,200 | ||||||||||||
(1) | The total number of shares purchased during the periods indicated includes shares purchased as part of publicly announced programs and 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, as is permitted under M&T’s stock option plans. |
(2) | On February 18, 2004, M&T announced a program to purchase up to 5 million shares of its common stock. This stock purchase program was completed in December 2004. On December 20, 2004, M&T announced another program to purchase up to 5 million additional shares of its common stock. |
Item 6. | Selected Financial Data. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
-28-
(In thousands) | |||||
Assets | |||||
Investment securities | $ | 1,312,301 | |||
Loans and leases, net of unearned discount | 10,265,123 | ||||
Allowance for credit losses | (146,300 | ) | |||
Loans and leases, net | 10,118,823 | ||||
Goodwill | 1,806,528 | ||||
Core deposit and other intangible assets | 199,265 | ||||
Other assets | 3,053,742 | ||||
Total assets | $ | 16,490,659 | |||
Liabilities | |||||
Deposits | $ | 10,935,521 | |||
Short-term borrowings | 1,610,782 | ||||
Long-term borrowings | 1,226,518 | ||||
Other liabilities | 723,882 | ||||
Total liabilities | $ | 14,496,703 | |||
-29-
• | Allowance for credit losses — The allowance for credit losses represents the amount which, in management’s judgment, will be adequate to absorb credit losses inherent in the loan and lease portfolio as of the balance sheet date. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. In estimating losses inherent in the loan and lease portfolio, assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers’ abilities to repay obligations. Historical loss trends are also considered, as are economic conditions, industry trends, portfolio trends and borrower-specific financial data. Changes in the circumstances considered when determining management’s estimates and assumptions could result in changes in those estimates and assumptions, which may result in adjustment of the allowance. A detailed discussion of facts and circumstances considered by management in assessing the adequacy of the allowance for credit losses is included herein under the heading “Provision for Credit Losses.” | |
• | Valuation methodologies — Management of the Company applies various valuation methodologies to assets and liabilities which often involve a significant degree of judgment, particularly when liquid markets do not exist for the particular items being valued. Quoted market prices are referred to when estimating fair values for certain assets, such as trading assets, most investment securities, and residential real estate loans held for sale and related commitments. However, for those items for which an observable liquid market does not exist, management utilizes significant estimates and assumptions to value such items. Examples of these items include capitalized servicing assets, goodwill, core deposit and other intangible assets, pension and other postretirement benefit obligations, value ascribed to stock-based compensation, estimated residual values of property associated with commercial and consumer leases, and certain derivative and other financial instruments. These valuations require the use of various assumptions, including, among others, discount rates, rates of return on assets, repayment rates, cash flows, default rates, costs of servicing and liquidation values. The use of different assumptions could produce significantly different results, which could have material positive or negative effects on the Company’s results of operations. Specific discussion of assumptions and estimates utilized by management are discussed in detail herein in management’s discussion and analysis of financial condition and results of operations and in notes 1, 3, 4, 7, 8, 10, 11, 17, 18 and 19 of Notes to Financial Statements. | |
• | Commitments, contingencies and off-balance sheet arrangements — Information regarding the Company’s commitments and contingencies, including guarantees and contingent liabilities arising from litigation, and their potential effects on the Company’s results of operations is included in note 20 of Notes to Financial Statements. In addition, the Company is routinely subject to examinations from various governmental taxing authorities. Such examinations may result in challenges to the tax return treatment applied by the Company to specific transactions. Management believes that the assumptions and judgment used to record tax-related assets or liabilities have been appropriate. Should tax laws change or the tax authorities determine that management’s assumptions were inappropriate, the result and adjustments required could have a material effect on the |
-30-
Company’s results of operations. Information regarding permanent and temporary income tax differences is presented in note 12 of Notes to Financial Statements. The recognition or de-recognition in the Company’s consolidated financial statements of assets and liabilities held in trusts or other so-called variable interest entities is subject to the interpretation and application of complex accounting pronouncements or interpretations that require management to estimate and assess the probability of financial outcomes in future periods. Information relating to the Company’s involvement in such entities and the accounting treatment afforded each such involvement is included in note 18 of Notes to Financial Statements. |
-31-
-32-
Increase (Decrease)(a) | ||||||||||||||||||||||||||||||||||||||||
Compound | ||||||||||||||||||||||||||||||||||||||||
2003 to 2004 | 2002 to 2003 | Growth Rate | ||||||||||||||||||||||||||||||||||||||
5 Years | ||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 to 2004 | |||||||||||||||||||||||||||||||
$173.2 | 8 | $ | 286.8 | 15 | Interest income(b) | $ | 2,316.1 | 2,142.9 | 1,856.1 | 2,119.4 | 1,783.3 | 9 | % | |||||||||||||||||||||||||||
36.4 | 7 | (66.7 | ) | (11 | ) | Interest expense | 564.2 | 527.8 | 594.5 | 943.6 | 918.6 | (5 | ) | |||||||||||||||||||||||||||
Net interest | ||||||||||||||||||||||||||||||||||||||||
136.8 | 8 | 353.5 | 28 | income(b) | 1,751.9 | 1,615.1 | 1,261.6 | 1,175.8 | 864.7 | 18 | ||||||||||||||||||||||||||||||
Less: provision for | ||||||||||||||||||||||||||||||||||||||||
(36.0 | ) | (27 | ) | 9.0 | 7 | credit losses | 95.0 | 131.0 | 122.0 | 103.5 | 38.0 | 16 | ||||||||||||||||||||||||||||
.4 | — | 3.1 | — | Gain (loss) on sales of bank investment securities | 2.9 | 2.5 | (.6 | ) | 1.9 | (3.1 | ) | — | ||||||||||||||||||||||||||||
111.5 | 13 | 316.1 | 62 | Other income | 940.1 | 828.6 | 512.5 | 475.5 | 327.8 | 27 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
66.2 | 9 | 243.3 | 49 | Salaries and employee benefits | 806.6 | 740.3 | 497.0 | 467.2 | 353.4 | 22 | ||||||||||||||||||||||||||||||
1.6 | — | 243.4 | 52 | Other expense | 709.5 | 708.0 | 464.6 | 513.4 | 365.2 | 19 | ||||||||||||||||||||||||||||||
216.9 | 25 | 177.0 | 26 | Income before income taxes | 1,083.8 | 866.9 | 689.9 | 569.1 | 432.8 | 22 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
1.0 | 6 | 2.3 | 16 | Taxable-equivalent adjustment(b) | 17.3 | 16.3 | 14.0 | 17.5 | 10.5 | 18 | ||||||||||||||||||||||||||||||
67.3 | 24 | 57.6 | 26 | Income taxes | 344.0 | 276.7 | 219.1 | 198.5 | 154.1 | 18 | ||||||||||||||||||||||||||||||
$148.6 | 26 | $ | 117.1 | 26 | Net income | $ | 722.5 | 573.9 | 456.8 | 353.1 | 268.2 | 23 | % | |||||||||||||||||||||||||||
(a) | Changes were calculated from unrounded amounts. |
(b) | Interest income data are on a taxable-equivalent basis. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on a composite income tax rate of approximately 39% for 2004 and 2002, 36% for 2003, 37% for 2001, and 40% for 2000. |
-33-
-34-
2004 | 2003 | 2002 | |||||||||||
Income statement data | |||||||||||||
In thousands, except per share | |||||||||||||
Net income | |||||||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | |||||||
Amortization of core deposit and other intangible assets(a) | 46,097 | 47,826 | 32,491 | ||||||||||
Merger-related expenses(a) | — | 39,163 | — | ||||||||||
Net operating income | $ | 768,618 | $ | 660,931 | $ | 489,243 | |||||||
Earnings per share | |||||||||||||
Diluted earnings per common share | $ | 6.00 | $ | 4.95 | $ | 4.78 | |||||||
Amortization of core deposit and other intangible assets(a) | .38 | .41 | .34 | ||||||||||
Merger-related expenses(a) | — | .34 | — | ||||||||||
Diluted net operating earnings per share | $ | 6.38 | $ | 5.70 | $ | 5.12 | |||||||
Other expense | |||||||||||||
Other expense | $ | 1,516,018 | $ | 1,448,180 | $ | 961,611 | |||||||
Amortization of core deposit and other intangible assets | (75,410 | ) | (78,152 | ) | (51,484 | ) | |||||||
Merger-related expenses | — | (60,387 | ) | — | |||||||||
Noninterest operating expense | $ | 1,440,608 | $ | 1,309,641 | $ | 910,127 | |||||||
Merger-related expenses | |||||||||||||
Salaries and employee benefits | $ | — | $ | 8,542 | $ | — | |||||||
Equipment and net occupancy | — | 2,126 | — | ||||||||||
Printing, postage and supplies | — | 3,216 | — | ||||||||||
Other costs of operations | — | 46,503 | — | ||||||||||
Total | $ | — | $ | 60,387 | $ | — | |||||||
Balance sheet data | |||||||||||||
In millions | |||||||||||||
Average assets | |||||||||||||
Average assets | $ | 51,517 | $ | 45,349 | $ | 31,935 | |||||||
Goodwill | (2,904 | ) | (2,456 | ) | (1,098 | ) | |||||||
Core deposit and other intangible assets | (201 | ) | (233 | ) | (143 | ) | |||||||
Deferred taxes | — | — | 46 | ||||||||||
Average tangible assets | $ | 48,412 | $ | 42,660 | $ | 30,740 | |||||||
Average equity | |||||||||||||
Average equity | $ | 5,701 | $ | 4,941 | $ | 3,026 | |||||||
Goodwill | (2,904 | ) | (2,456 | ) | (1,098 | ) | |||||||
Core deposit and other intangible assets | (201 | ) | (233 | ) | (143 | ) | |||||||
Deferred taxes | 76 | 68 | 46 | ||||||||||
Average tangible equity | $ | 2,672 | $ | 2,320 | $ | 1,831 | |||||||
At end of year | |||||||||||||
Total assets | |||||||||||||
Total assets | $ | 52,939 | $ | 49,826 | $ | 33,201 | |||||||
Goodwill | (2,904 | ) | (2,904 | ) | (1,098 | ) | |||||||
Core deposit and other intangible assets | (166 | ) | (241 | ) | (119 | ) | |||||||
Deferred taxes | — | — | 40 | ||||||||||
Total tangible assets | $ | 49,869 | $ | 46,681 | $ | 32,024 | |||||||
Total equity | |||||||||||||
Total equity | $ | 5,730 | $ | 5,717 | $ | 3,208 | |||||||
Goodwill | (2,904 | ) | (2,904 | ) | (1,098 | ) | |||||||
Core deposit and other intangible assets | (166 | ) | (241 | ) | (119 | ) | |||||||
Deferred taxes | 64 | 70 | 40 | ||||||||||
Total tangible equity | $ | 2,724 | $ | 2,642 | $ | 2,031 | |||||||
(a) | After any related tax effect. |
-35-
-36-
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
(Average balance in millions; interest in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases, net of unearned discount(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial, etc. | $ | 9,534 | $ | 410,258 | 4.30 | % | 8,523 | 358,629 | 4.21 | % | 5,146 | 261,867 | 5.09 | % | 5,271 | 372,234 | 7.06 | % | 4,129 | 365,951 | 8.86 | % | ||||||||||||||||||||||||||||||||||||||||
Real estate — commercial | 13,264 | 763,134 | 5.75 | 11,573 | 706,022 | 6.10 | 9,498 | 661,382 | 6.96 | 9,224 | 732,162 | 7.94 | 7,188 | 615,304 | 8.56 | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate — consumer | 3,111 | 184,125 | 5.92 | 3,777 | 232,454 | 6.15 | 4,087 | 285,055 | 6.98 | 4,354 | 328,979 | 7.55 | 3,266 | 249,224 | 7.63 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 11,220 | 626,255 | 5.58 | 10,098 | 607,909 | 6.02 | 6,776 | 467,167 | 6.89 | 5,581 | 464,151 | 8.32 | 3,920 | 352,331 | 8.99 | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases, net | 37,129 | 1,983,772 | 5.34 | 33,971 | 1,905,014 | 5.61 | 25,507 | 1,675,471 | 6.57 | 24,430 | 1,897,526 | 7.77 | 18,503 | 1,582,810 | 8.55 | |||||||||||||||||||||||||||||||||||||||||||||||
Money-market assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits at banks | 13 | 65 | .51 | 14 | 147 | 1.03 | 6 | 76 | 1.32 | 4 | 116 | 3.10 | 6 | 308 | 5.41 | |||||||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and agreements to resell securities | 8 | 134 | 1.60 | 147 | 1,875 | 1.28 | 272 | 4,455 | 1.63 | 63 | 2,027 | 3.22 | 212 | 12,891 | 6.08 | |||||||||||||||||||||||||||||||||||||||||||||||
Trading account | 53 | 418 | .79 | 55 | 647 | 1.18 | 13 | 247 | 1.86 | 13 | 413 | 3.16 | 21 | 1,069 | 5.08 | |||||||||||||||||||||||||||||||||||||||||||||||
Total money- market assets | 74 | 617 | .83 | 216 | 2,669 | 1.24 | 291 | 4,778 | 1.64 | 80 | 2,556 | 3.20 | 239 | 14,268 | 5.97 | |||||||||||||||||||||||||||||||||||||||||||||||
Investment securities(b) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies | 4,169 | 158,953 | 3.81 | 2,599 | 106,209 | 4.09 | 1,292 | 81,412 | 6.30 | 1,709 | 113,908 | 6.67 | 1,603 | 105,104 | 6.56 | |||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 218 | 15,017 | 6.90 | 251 | 15,827 | 6.30 | 279 | 17,828 | 6.40 | 332 | 24,483 | 7.37 | 122 | 8,890 | 7.27 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,610 | 157,703 | 4.37 | 2,494 | 113,159 | 4.54 | 1,552 | 76,659 | 4.94 | 1,267 | 80,925 | 6.39 | 1,033 | 72,259 | 7.00 | |||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | 7,997 | 331,673 | 4.15 | 5,344 | 235,195 | 4.40 | 3,123 | 175,899 | 5.63 | 3,308 | 219,316 | 6.63 | 2,758 | 186,253 | 6.75 | |||||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 45,200 | 2,316,062 | 5.13 | 39,531 | 2,142,878 | 5.42 | 28,921 | 1,856,148 | 6.42 | 27,818 | 2,119,398 | 7.62 | 21,500 | 1,783,331 | 8.30 | |||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (626 | ) | (574 | ) | (438 | ) | (409 | ) | (333 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 1,599 | 1,542 | 732 | 706 | 536 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 5,344 | 4,850 | 2,720 | 2,727 | 1,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 51,517 | 45,349 | 31,935 | 30,842 | 23,670 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 550 | 1,802 | .33 | 1,021 | 3,613 | .35 | 761 | 3,900 | .51 | 722 | 8,548 | 1.18 | 486 | 7,487 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | 15,305 | 92,064 | .60 | 13,278 | 102,190 | .77 | 8,899 | 107,281 | 1.21 | 7,378 | 134,454 | 1.82 | 5,507 | 132,225 | 2.40 | |||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 6,948 | 154,722 | 2.23 | 6,638 | 159,700 | 2.41 | 7,398 | 237,001 | 3.20 | 8,906 | 453,940 | 5.10 | 7,674 | 445,666 | 5.81 | |||||||||||||||||||||||||||||||||||||||||||||||
Deposits at foreign office | 3,136 | 43,034 | 1.37 | 1,445 | 14,991 | 1.04 | 569 | 8,460 | 1.49 | 327 | 11,264 | 3.44 | 250 | 14,915 | 5.95 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest- bearing deposits | 25,939 | 291,622 | 1.12 | 22,382 | 280,494 | 1.25 | 17,627 | 356,642 | 2.02 | 17,333 | 608,206 | 3.51 | 13,917 | 600,293 | 4.31 | |||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 5,142 | 71,172 | 1.38 | 4,331 | 49,064 | 1.13 | 3,125 | 52,723 | 1.69 | 3,280 | 124,810 | 3.81 | 2,715 | 172,466 | 6.35 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term borrowings | 5,832 | 201,366 | 3.45 | 6,018 | 198,252 | 3.29 | 4,162 | 185,149 | 4.45 | 3,538 | 210,581 | 5.95 | 2,086 | 145,838 | 6.99 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest- bearing liabilities | 36,913 | 564,160 | 1.53 | 32,731 | 527,810 | 1.61 | 24,914 | 594,514 | 2.39 | 24,151 | 943,597 | 3.91 | 18,718 | 918,597 | 4.91 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 8,039 | 6,801 | 3,618 | 3,327 | 2,425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 864 | 876 | 377 | 389 | 482 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 45,816 | 40,408 | 28,909 | 27,867 | 21,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 5,701 | 4,941 | 3,026 | 2,975 | 2,045 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 51,517 | 45,349 | 31,935 | 30,842 | 23,670 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 3.60 | 3.81 | 4.03 | 3.71 | 3.39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution of interest-free funds | .28 | .28 | .33 | .52 | .63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin on earning assets | $ | 1,751,902 | 3.88 | % | 1,615,068 | 4.09 | % | 1,261,634 | 4.36 | % | 1,175,801 | 4.23 | % | 864,734 | 4.02 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(a) | Includes nonaccrual loans. |
(b) | Includes available for sale securities at amortized cost. |
-37-
Percent increase | ||||||||||||||
(decrease) from | ||||||||||||||
2004 | 2003 to 2004 | 2002 to 2003 | ||||||||||||
(Dollars in | ||||||||||||||
millions) | ||||||||||||||
Commercial, financial, etc. | $ | 9,534 | 12 | % | 66 | % | ||||||||
Real estate — commercial | 13,264 | 15 | 22 | |||||||||||
Real estate — consumer | 3,111 | (18 | ) | (8 | ) | |||||||||
Consumer | ||||||||||||||
Automobile | 4,444 | 10 | 42 | |||||||||||
Home equity lines | 3,533 | 25 | 57 | |||||||||||
Home equity loans | 1,529 | (6 | ) | 117 | ||||||||||
Other | 1,714 | 7 | 17 | |||||||||||
Total consumer | 11,220 | 11 | 49 | |||||||||||
Total | $ | 37,129 | 9 | % | 33 | % | ||||||||
-38-
Percent of dollars outstanding by loan size | ||||||||||||||||||||||
Outstandings | $0-1 | $1-5 | $5-10 | $10+ | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
New York State | ||||||||||||||||||||||
Secured | $ | 3,703 | 28 | % | 28 | % | 13 | % | 13 | % | ||||||||||||
Unsecured | 733 | 6 | 6 | 2 | 2 | |||||||||||||||||
Leases | 100 | 2 | — | — | — | |||||||||||||||||
Total New York State | 4,536 | 36 | % | 34 | % | 15 | % | 15 | % | |||||||||||||
Pennsylvania | ||||||||||||||||||||||
Secured | 2,103 | 30 | % | 24 | % | 15 | % | 12 | % | |||||||||||||
Unsecured | 427 | 6 | 7 | 2 | 2 | |||||||||||||||||
Leases | 66 | 1 | 1 | — | — | |||||||||||||||||
Total Pennsylvania | 2,596 | 37 | % | 32 | % | 17 | % | 14 | % | |||||||||||||
Maryland | ||||||||||||||||||||||
Secured | 908 | 33 | % | 24 | % | 8 | % | 7 | % | |||||||||||||
Unsecured | 294 | 7 | 10 | 5 | 2 | |||||||||||||||||
Leases | 48 | 2 | 1 | 1 | — | |||||||||||||||||
Total Maryland | 1,250 | 42 | % | 35 | % | 14 | % | 9 | % | |||||||||||||
Other | ||||||||||||||||||||||
Secured | 800 | 12 | % | 17 | % | 13 | % | 8 | % | |||||||||||||
Unsecured | 378 | 10 | 4 | 4 | 6 | |||||||||||||||||
Leases | 420 | 3 | 9 | 6 | 8 | |||||||||||||||||
Total other | 1,598 | 25 | % | 30 | % | 23 | % | 22 | % | |||||||||||||
Total commercial loans and leases | $ | 9,980 | 35 | % | 33 | % | 17 | % | 15 | % | ||||||||||||
-39-
-40-
Percent of dollars outstanding by loan size | ||||||||||||||||||||||
Outstandings | $0-1 | $1-5 | $5-10 | $10+ | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Metropolitan New York City | ||||||||||||||||||||||
Apartments/ Multifamily | $ | 1,903 | 4 | % | 15 | % | 6 | % | 12 | % | ||||||||||||
Office | 672 | 1 | 3 | �� | 2 | 7 | ||||||||||||||||
Retail/ Services | 1,923 | 3 | 12 | 7 | 16 | |||||||||||||||||
Construction | 88 | — | 1 | — | 1 | |||||||||||||||||
Industrial | 98 | — | 1 | 1 | — | |||||||||||||||||
Other | 397 | 1 | 3 | 2 | 2 | |||||||||||||||||
Total Metropolitan New York City | 5,081 | 9 | % | 35 | % | 18 | % | 38 | % | |||||||||||||
Other New York State | ||||||||||||||||||||||
Apartments/ Multifamily | 351 | 3 | % | 5 | % | 1 | % | 1 | % | |||||||||||||
Office | 1,000 | 9 | 13 | 6 | 2 | |||||||||||||||||
Retail/ Services | 811 | 9 | 10 | 4 | 1 | |||||||||||||||||
Construction | 252 | 1 | 3 | 2 | 2 | |||||||||||||||||
Industrial | 257 | 4 | 3 | 1 | — | |||||||||||||||||
Other | 682 | 6 | 6 | 2 | 6 | |||||||||||||||||
Total other New York State | 3,353 | 32 | % | 40 | % | 16 | % | 12 | % | |||||||||||||
Pennsylvania | ||||||||||||||||||||||
Apartments/ Multifamily | 342 | 4 | % | 4 | % | 2 | % | 4 | % | |||||||||||||
Office | 407 | 7 | 6 | 2 | 2 | |||||||||||||||||
Retail/ Services | 534 | 7 | 9 | 4 | 2 | |||||||||||||||||
Construction | 137 | 2 | 1 | 1 | 1 | |||||||||||||||||
Industrial | 313 | 5 | 5 | 1 | 2 | |||||||||||||||||
Other | 707 | 14 | 12 | 2 | 1 | |||||||||||||||||
Total Pennsylvania | 2,440 | 39 | % | 37 | % | 12 | % | 12 | % | |||||||||||||
Maryland | ||||||||||||||||||||||
Apartments/ Multifamily | 71 | 2 | % | 1 | % | 1 | % | 1 | % | |||||||||||||
Office | 364 | 10 | 7 | 3 | 6 | |||||||||||||||||
Retail/ Services | 195 | 5 | 4 | 3 | 2 | |||||||||||||||||
Construction | 341 | 1 | 7 | 8 | 8 | |||||||||||||||||
Industrial | 125 | 3 | 4 | 2 | — | |||||||||||||||||
Other | 306 | 9 | 10 | 2 | 1 | |||||||||||||||||
Total Maryland | 1,402 | 30 | % | 33 | % | 19 | % | 18 | % | |||||||||||||
Other | ||||||||||||||||||||||
Apartments/ Multifamily | 211 | 2 | % | 5 | % | 2 | % | 3 | % | |||||||||||||
Office | 166 | 1 | 2 | 1 | 5 | |||||||||||||||||
Retail/ Services | 500 | 2 | 6 | 6 | 14 | |||||||||||||||||
Construction | 544 | 8 | 9 | 8 | 6 | |||||||||||||||||
Industrial | 103 | 1 | 2 | 2 | 1 | |||||||||||||||||
Other | 240 | 2 | 5 | 4 | 3 | |||||||||||||||||
Total other | 1,764 | 16 | % | 29 | % | 23 | % | 32 | % | |||||||||||||
Total commercial real estate loans | $ | 14,040 | 23 | % | 35 | % | 17 | % | 25 | % | ||||||||||||
-41-
-42-
Percent of dollars outstanding | ||||||||||||||||||||||||
New York | ||||||||||||||||||||||||
Outstandings | State | Pennsylvania | Maryland | Other | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||
Residential | $ | 3,261 | 43 | % | 18 | % | 9 | % | 30 | % | ||||||||||||||
Commercial | 14,040 | 60 | (a) | 17 | 10 | 13 | ||||||||||||||||||
Total real estate | 17,301 | 57 | % | 17 | % | 10 | % | 16 | % | |||||||||||||||
Commercial, financial, etc. | 9,346 | 47 | % | 27 | % | 13 | % | 13 | % | |||||||||||||||
Consumer | ||||||||||||||||||||||||
Secured or guaranteed | 10,673 | 41 | % | 31 | % | 12 | % | 16 | % | |||||||||||||||
Unsecured | 239 | 38 | 27 | 30 | 5 | |||||||||||||||||||
Total consumer | 10,912 | 41 | % | 31 | % | 13 | % | 15 | % | |||||||||||||||
Total loans | 37,559 | 50 | % | 24 | % | 11 | % | 15 | % | |||||||||||||||
Leases | ||||||||||||||||||||||||
Commercial | 634 | 16 | % | 10 | % | 8 | % | 66 | % | |||||||||||||||
Consumer | 205 | 23 | 49 | 1 | 27 | |||||||||||||||||||
Total leases | 839 | 18 | % | 20 | % | 6 | % | 56 | % | |||||||||||||||
Total loans and leases | $ | 38,398 | 49 | % | 24 | % | 11 | % | 16 | % | ||||||||||||||
(a) | Includes loans secured by properties located in neighboring states generally considered to be within commuting distance of New York City. |
-43-
Percentage increase | |||||||||||||
(decrease) from | |||||||||||||
2004 | 2003 to 2004 | 2002 to 2003 | |||||||||||
(Dollars in | |||||||||||||
millions) | |||||||||||||
NOW accounts | $ | 550 | (46 | )% | 34 | % | |||||||
Savings deposits | 15,248 | 15 | 49 | ||||||||||
Time deposits under $100,000 | 4,282 | (10 | ) | 9 | |||||||||
Noninterest-bearing deposits | 8,039 | 18 | 88 | ||||||||||
Total | $ | 28,119 | 9 | % | 47 | % | |||||||
-44-
-45-
-46-
Year Ended December 31 | |||||||||||||||||||||||||
2004 | 2003 | 2002 | |||||||||||||||||||||||
Amount | Rate(a) | Amount | Rate(a) | Amount | Rate(a) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Increase (decrease) in: | |||||||||||||||||||||||||
Interest income | $ | — | — | % | $ | — | — | % | $ | (673 | ) | — | % | ||||||||||||
Interest expense | (18,276 | ) | (.05 | ) | (17,327 | ) | (.05 | ) | (9,495 | ) | (.04 | ) | |||||||||||||
Net interest income/margin | $ | 18,276 | .04 | % | $ | 17,327 | .05 | % | $ | 8,822 | .03 | % | |||||||||||||
Average notional amount(b) | $ | 696,284 | $ | 688,603 | $ | 693,910 | |||||||||||||||||||
Rate received(c) | 6.98 | % | 6.06 | % | 3.48 | % | |||||||||||||||||||
Rate paid(c) | 4.35 | % | 3.55 | % | 2.21 | % |
(a) | Computed as a percentage of average earning assets or interest-bearing liabilities. |
(b) | Excludes forward-starting interest rate swap agreements. |
(c) | Weighted-average rate paid or received on interest rate swap agreements in effect during year. |
-47-
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Allowance for credit losses beginning balance | $ | 614,058 | $ | 436,472 | $ | 425,008 | $ | 374,703 | $ | 316,165 | ||||||||||||
Charge-offs during year | ||||||||||||||||||||||
Commercial, financial, agricultural, etc. | 33,340 | 44,782 | 57,401 | 35,555 | 6,943 | |||||||||||||||||
Real estate — construction | — | 2 | 88 | — | — | |||||||||||||||||
Real estate — mortgage | 10,829 | 13,999 | 13,969 | 13,849 | 7,133 | |||||||||||||||||
Consumer | 74,856 | 68,737 | 53,124 | 44,750 | 28,855 | |||||||||||||||||
Total charge-offs | 119,025 | 127,520 | 124,582 | 94,154 | 42,931 | |||||||||||||||||
Recoveries during year | ||||||||||||||||||||||
Commercial, financial, agricultural, etc. | 13,581 | 12,517 | 3,129 | 3,949 | 1,199 | |||||||||||||||||
Real estate — construction | — | 4 | — | — | — | |||||||||||||||||
Real estate — mortgage | 4,051 | 3,436 | 2,333 | 4,027 | 3,551 | |||||||||||||||||
Consumer | 19,700 | 15,047 | 11,370 | 10,871 | 9,201 | |||||||||||||||||
Total recoveries | 37,332 | 31,004 | 16,832 | 18,847 | 13,951 | |||||||||||||||||
Net charge-offs | 81,693 | 96,516 | 107,750 | 75,307 | 28,980 | |||||||||||||||||
Provision for credit losses | 95,000 | 131,000 | 122,000 | 103,500 | 38,000 | |||||||||||||||||
Allowance for credit losses acquired during the year | — | 146,300 | — | 22,112 | 49,518 | |||||||||||||||||
Allowance related to loans sold or securitized | (501 | ) | (3,198 | ) | (2,786 | ) | — | — | ||||||||||||||
Allowance for credit losses ending balance | $ | 626,864 | $ | 614,058 | $ | 436,472 | $ | 425,008 | $ | 374,703 | ||||||||||||
Net charge-offs as a percent of: | ||||||||||||||||||||||
Provision for credit losses | 85.99 | % | 73.68 | % | 88.32 | % | 72.76 | % | 76.26 | % | ||||||||||||
Average loans and leases, net of unearned discount | .22 | % | .28 | % | .42 | % | .31 | % | .16 | % | ||||||||||||
Allowance for credit losses as a percent of loans and leases, net of unearned discount, at year-end | 1.63 | % | 1.72 | % | 1.70 | % | 1.69 | % | 1.65 | % |
-48-
December 31 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Nonaccrual loans | $ | 162,013 | $ | 232,983 | $ | 207,038 | $ | 180,344 | $ | 100,951 | |||||||||||
Renegotiated loans | 10,437 | 7,309 | 8,252 | 10,128 | 9,688 | ||||||||||||||||
Total nonperforming loans | 172,450 | 240,292 | 215,290 | 190,472 | 110,639 | ||||||||||||||||
Real estate and other assets owned | 12,504 | 19,629 | 17,380 | 16,387 | 13,619 | ||||||||||||||||
Total nonperforming assets | $ | 184,954 | $ | 259,921 | $ | 232,670 | $ | 206,859 | $ | 124,258 | |||||||||||
Accruing loans past due 90 days or more(a) | $ | 154,590 | $ | 154,759 | $ | 153,803 | $ | 146,899 | $ | 141,843 | |||||||||||
Government guaranteed loans included in totals above: | |||||||||||||||||||||
Nonperforming loans | $ | 15,273 | $ | 19,355 | $ | 11,885 | $ | 10,196 | $ | 8,625 | |||||||||||
Accruing loans past due 90 days or more | 120,700 | 124,585 | 129,114 | 113,600 | 102,505 | ||||||||||||||||
Nonperforming loans to total loans and leases, net of unearned discount | .45 | % | .67 | % | .84 | % | .76 | % | .49 | % | |||||||||||
Nonperforming assets to total net loans and leases and real estate and other assets owned | .48 | % | .73 | % | .90 | % | .82 | % | .55 | % | |||||||||||
Accruing loans past due 90 days or more to total loans and leases, net of unearned discount | .40 | % | .43 | % | .60 | % | .58 | % | .62 | % |
(a) | Predominately residential mortgage loans. |
-49-
-50-
-51-
-52-
December 31 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial, financial, agricultural, etc. | $ | 147,550 | $ | 186,902 | $ | 120,627 | $ | 130,156 | $ | 125,568 | |||||||||||
Real estate | 166,910 | 170,493 | 152,758 | 139,848 | 122,218 | ||||||||||||||||
Consumer | 148,591 | 152,759 | 113,711 | 94,710 | 76,839 | ||||||||||||||||
Unallocated | 163,813 | 103,904 | 49,376 | 60,294 | 50,078 | ||||||||||||||||
Total | $ | 626,864 | $ | 614,058 | $ | 436,472 | $ | 425,008 | $ | 374,703 | |||||||||||
As a percentage of gross loans | ||||||||||||||||||||
and leases outstanding | ||||||||||||||||||||
Commercial, financial, agricultural, etc. | 1.45 | % | 1.99 | % | 2.23 | % | 2.50 | % | 2.43 | % | ||||||||||
Real estate | .96 | 1.10 | 1.17 | 1.00 | .97 | |||||||||||||||
Consumer | 1.33 | 1.37 | 1.51 | 1.52 | 1.49 |
• | For consumer loans and leases considered smaller balance homogenous loans and evaluated collectively, a 20 basis point increase in loss factors; | |
• | For residential real estate loans and home equity loans and lines of credit, also considered smaller balance homogenous loans and evaluated collectively, a 10 basis point increase in loss factors; and | |
• | For commercial loans and commercial real estate loans, which are not similar in nature, a migration of loans to lower-ranked risk grades resulting in a 30% increase in the balance of classified credits in each risk grade. |
-53-
• | For consumer loans and leases, a 10 basis point decrease in loss factors; | |
• | For residential real estate loans and home equity loans and lines of credit, a 5 basis point decrease in loss factors; and | |
• | For commercial loans and commercial real estate loans, a migration of loans to higher-ranked risk grades resulting in a 5% decrease in the balance of classified credits in each risk grade. |
-54-
-55-
-56-
-57-
-58-
-59-
Standard | |||||||||||||
Moody’s | and Poor’s | Fitch | |||||||||||
M&T Bank Corporation | A3 | A- | A- | ||||||||||
M&T Bank | |||||||||||||
Short-term deposits | Prime-1 | A-1 | F1 | ||||||||||
Long-term deposits | A2 | A | A | ||||||||||
Subordinated debt | A3 | A- | BBB+ |
-60-
2006- | |||||||||||||||||
December 31, 2004 | Demand | 2005 | 2009 | After 2009 | |||||||||||||
(In thousands) | |||||||||||||||||
Commercial, financial, agricultural, etc. | $ | 4,935,128 | $ | 1,382,839 | $ | 2,667,574 | $ | 395,077 | |||||||||
Real estate — construction | 203,576 | 1,027,834 | 478,062 | 83,725 | |||||||||||||
Total | $ | 5,138,704 | $ | 2,410,673 | $ | 3,145,636 | $ | 478,802 | |||||||||
Floating or adjustable interest rates | $ | 2,236,490 | $ | 235,037 | |||||||||||||
Fixed or predetermined interest rates | 909,146 | 243,765 | |||||||||||||||
Total | $ | 3,145,636 | $ | 478,802 | |||||||||||||
(a) | The data do not include nonaccrual loans. |
-61-
Less Than One | One to Three | Three to Five | Over Five | ||||||||||||||||||
December 31, 2004 | Year | Years | Years | Years | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Payments due for contractual obligations | |||||||||||||||||||||
Time deposits | $ | 4,628,441 | $ | 2,192,981 | $ | 247,308 | $ | 159,784 | $ | 7,228,514 | |||||||||||
Deposits at foreign office | 4,232,932 | — | — | — | 4,232,932 | ||||||||||||||||
Federal funds purchased and agreements to repurchase securities | 3,924,576 | — | — | — | 3,924,576 | ||||||||||||||||
Other short-term borrowings | 779,088 | — | — | — | 779,088 | ||||||||||||||||
Long-term borrowings | 1,383,167 | 1,150,017 | 1,448,377 | 2,366,998 | 6,348,559 | ||||||||||||||||
Operating leases | 46,887 | 73,374 | 48,778 | 83,333 | 252,372 | ||||||||||||||||
Other | 36,248 | 16,529 | 10,371 | 45,975 | 109,123 | ||||||||||||||||
Total | $ | 15,031,339 | $ | 3,432,901 | $ | 1,754,834 | $ | 2,656,090 | $ | 22,875,164 | |||||||||||
Other commitments | |||||||||||||||||||||
Commitments to extend credit | $ | 6,398,751 | $ | 3,182,347 | $ | 2,694,065 | $ | 1,440,851 | $ | 13,716,014 | |||||||||||
Standby letters of credit | 1,221,698 | 1,138,133 | 620,778 | 182,292 | 3,162,901 | ||||||||||||||||
Commercial letters of credit | 37,616 | 18,219 | 1,620 | — | 57,455 | ||||||||||||||||
Financial guarantees and indemnification contracts | 7,916 | 169,581 | 115,863 | 875,157 | 1,168,517 | ||||||||||||||||
Commitments to sell real estate loans | 931,924 | — | — | — | 931,924 | ||||||||||||||||
Total | $ | 8,597,905 | $ | 4,508,280 | $ | 3,432,326 | $ | 2,498,300 | $ | 19,036,811 | |||||||||||
-62-
One Year | One to | Five to | Over | |||||||||||||||||||
December 31, 2004 | or Less | Five Years | Ten Years | Ten Years | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Investment securities available for sale(a) | ||||||||||||||||||||||
U.S. Treasury and federal agencies | ||||||||||||||||||||||
Carrying value | $ | 2,659 | $ | 318,070 | $ | 11,122 | $ | — | $ | 331,851 | ||||||||||||
Yield | 1.98 | % | 3.52 | % | 3.49 | % | — | % | 3.51 | % | ||||||||||||
Obligations of states and political subdivisions | ||||||||||||||||||||||
Carrying value | 13,570 | 38,552 | 36,563 | 21,087 | 109,772 | |||||||||||||||||
Yield | 7.10 | % | 5.89 | % | 4.88 | % | 8.12 | % | 6.13 | % | ||||||||||||
Mortgage-backed securities(b) | ||||||||||||||||||||||
Government issued or guaranteed | ||||||||||||||||||||||
Carrying value | 193,053 | 827,268 | 1,084,206 | 1,528,732 | 3,633,259 | |||||||||||||||||
Yield | 3.56 | % | 3.58 | % | 3.66 | % | 4.17 | % | 3.85 | % | ||||||||||||
Privately issued | ||||||||||||||||||||||
Carrying value | 141,855 | 536,859 | 380,557 | 2,344,896 | 3,404,167 | |||||||||||||||||
Yield | 3.98 | % | 4.00 | % | 4.91 | % | 4.65 | % | 4.55 | % | ||||||||||||
Other debt securities | ||||||||||||||||||||||
Carrying value | 32,038 | 13,906 | 1,230 | 143,928 | 191,102 | |||||||||||||||||
Yield | 6.21 | % | 3.90 | % | 5.38 | % | 5.03 | % | 5.15 | % | ||||||||||||
Equity securities | ||||||||||||||||||||||
Carrying value | — | — | — | — | 384,566 | |||||||||||||||||
Yield | — | — | — | — | 4.01 | % | ||||||||||||||||
Total investment securities available for sale | ||||||||||||||||||||||
Carrying value | 383,175 | 1,734,655 | 1,513,678 | 4,038,643 | 8,054,717 | |||||||||||||||||
Yield | 4.05 | % | 3.75 | % | 4.00 | % | 4.50 | % | 4.20 | % | ||||||||||||
Investment securities held to maturity | ||||||||||||||||||||||
Obligations of states and political subdivisions | ||||||||||||||||||||||
Carrying value | 73,085 | 7,720 | 7,822 | 6,393 | 95,020 | |||||||||||||||||
Yield | 2.81 | % | 6.35 | % | 7.85 | % | 11.43 | % | 4.09 | % | ||||||||||||
Other debt securities | ||||||||||||||||||||||
Carrying value | — | — | 561 | 2,469 | 3,030 | |||||||||||||||||
Yield | — | — | 8.32 | % | 5.14 | % | 5.73 | % | ||||||||||||||
Total investment securities held to maturity | ||||||||||||||||||||||
Carrying value | 73,085 | 7,720 | 8,383 | 8,862 | 98,050 | |||||||||||||||||
Yield | 2.81 | % | 6.35 | % | 7.88 | % | 9.68 | % | 4.14 | % | ||||||||||||
Other investment securities | — | — | — | — | 321,852 | |||||||||||||||||
Total investment securities | ||||||||||||||||||||||
Carrying value | $ | 456,260 | $ | 1,742,375 | $ | 1,522,061 | $ | 4,047,505 | $ | 8,474,619 | ||||||||||||
Yield | 3.85 | % | 3.76 | % | 4.02 | % | 4.51 | % | 4.04 | % | ||||||||||||
(a) | Investment securities available for sale are presented at estimated fair value. Yields on such securities are based on amortized cost. | |
(b) | Maturities are reflected based upon contractual payments due. Actual maturities are expected to be significantly shorter as a result of loan repayments in the underlying mortgage pools. |
-63-
December 31, 2004 | |||||
(In thousands) | |||||
Under 3 months | $ | 702,233 | |||
3 to 6 months | 439,651 | ||||
6 to 12 months | 1,240,637 | ||||
Over 12 months | 866,853 | ||||
Total | $ | 3,249,374 | |||
-64-
Calculated Increase | ||||||||
(Decrease) in Projected | ||||||||
Net Interest Income | ||||||||
December 31 | ||||||||
2004 | 2003 | |||||||
Changes in interest rates | ||||||||
(Dollars in thousands) | ||||||||
+200 basis points | $ | (20,848 | ) | $ | (4,504 | ) | ||
+100 basis points | (8,228 | ) | (190 | ) | ||||
-100 basis points | 12,386 | (12,945 | ) | |||||
-200 basis points | 4,900 | (13,064 | ) |
-65-
Three Months | Four to | One to | After | ||||||||||||||||||
December 31, 2004 | or Less | Twelve Months | Five Years | Five Years | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Loans and leases, net | $ | 19,112,923 | $ | 3,085,353 | $ | 9,111,099 | $ | 7,089,102 | $ | 38,398,477 | |||||||||||
Money-market assets | 95,800 | 100 | 650 | — | 96,550 | ||||||||||||||||
Investment securities | 2,641,605 | 1,041,063 | 1,516,615 | 3,275,336 | 8,474,619 | ||||||||||||||||
Total earning assets | 21,850,328 | 4,126,516 | 10,628,364 | 10,364,438 | 46,969,646 | ||||||||||||||||
NOW accounts | 828,999 | — | — | — | 828,999 | ||||||||||||||||
Savings deposits | 14,721,663 | — | — | — | 14,721,663 | ||||||||||||||||
Time deposits | 3,293,940 | 1,859,127 | 2,034,091 | 41,356 | 7,228,514 | ||||||||||||||||
Deposits at foreign office | 4,229,351 | 3,581 | — | — | 4,232,932 | ||||||||||||||||
Total interest-bearing deposits | 23,073,953 | 1,862,708 | 2,034,091 | 41,356 | 27,012,108 | ||||||||||||||||
Short-term borrowings | 4,703,664 | — | — | — | 4,703,664 | ||||||||||||||||
Long-term borrowings | 2,708,759 | 133,108 | 1,231,997 | 2,274,695 | 6,348,559 | ||||||||||||||||
Total interest-bearing liabilities | 30,486,376 | 1,995,816 | 3,266,088 | 2,316,051 | 38,064,331 | ||||||||||||||||
Interest rate swaps | (695,000 | ) | 155,000 | 30,000 | 510,000 | — | |||||||||||||||
Periodic gap | $ | (9,331,048 | ) | $ | 2,285,700 | $ | 7,392,276 | $ | 8,558,387 | ||||||||||||
Cumulative gap | (9,331,048 | ) | (7,045,348 | ) | 346,928 | 8,905,315 | |||||||||||||||
Cumulative gap as a % of total earning assets | (19.9 | )% | (15.0 | )% | .7 | % | 19.0 | % |
-66-
-67-
-68-
-69-
2004 Quarters | 2003 Quarters | ||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||
Earnings and dividends | |||||||||||||||||||||||||||||||||
Amounts in thousands, except per share | |||||||||||||||||||||||||||||||||
Interest income (taxable-equivalent basis) | $ | 613,012 | $ | 587,598 | $ | 565,090 | $ | 550,362 | $ | 554,673 | $ | 568,319 | $ | 580,704 | $ | 439,182 | |||||||||||||||||
Interest expense | 166,755 | 143,771 | 126,805 | 126,829 | 129,173 | 133,539 | 145,506 | 119,592 | |||||||||||||||||||||||||
Net interest income | 446,257 | 443,827 | 438,285 | 423,533 | 425,500 | 434,780 | 435,198 | 319,590 | |||||||||||||||||||||||||
Less: provision for credit losses | 28,000 | 17,000 | 30,000 | 20,000 | 28,000 | 34,000 | 36,000 | 33,000 | |||||||||||||||||||||||||
Other income | 237,559 | 244,925 | 232,334 | 228,151 | 233,757 | 231,594 | 232,897 | 132,847 | |||||||||||||||||||||||||
Less: other expense | 361,922 | 406,922 | 357,207 | 389,967 | 378,355 | 396,400 | 431,147 | 242,278 | |||||||||||||||||||||||||
Income before income taxes | 293,894 | 264,830 | 283,412 | 241,717 | 252,902 | 235,974 | 200,948 | 177,159 | |||||||||||||||||||||||||
Applicable income taxes | 97,624 | 73,843 | 94,538 | 77,997 | 81,801 | 75,329 | 62,600 | 56,998 | |||||||||||||||||||||||||
Taxable-equivalent adjustment | 4,065 | 4,546 | 4,489 | 4,230 | 4,200 | 4,182 | 4,308 | 3,623 | |||||||||||||||||||||||||
Net income | $ | 192,205 | $ | 186,441 | $ | 184,385 | $ | 159,490 | $ | 166,901 | $ | 156,463 | $ | 134,040 | $ | 116,538 | |||||||||||||||||
Per common share data | |||||||||||||||||||||||||||||||||
Basic earnings | $ | 1.66 | $ | 1.59 | $ | 1.56 | $ | 1.33 | $ | 1.39 | $ | 1.31 | $ | 1.12 | $ | 1.26 | |||||||||||||||||
Diluted earnings | 1.62 | 1.56 | 1.53 | 1.30 | 1.35 | 1.28 | 1.10 | 1.23 | |||||||||||||||||||||||||
Cash dividends | $ | .40 | $ | .40 | $ | .40 | $ | .40 | $ | .30 | $ | .30 | $ | .30 | $ | .30 | |||||||||||||||||
Average common shares outstanding | |||||||||||||||||||||||||||||||||
Basic | 115,953 | 116,897 | 118,224 | 119,738 | 120,141 | 119,727 | 119,393 | 92,399 | |||||||||||||||||||||||||
Diluted | 119,010 | 119,665 | 120,655 | 122,316 | 123,328 | 122,593 | 122,366 | 95,062 | |||||||||||||||||||||||||
Performance ratios, annualized | |||||||||||||||||||||||||||||||||
Return on | |||||||||||||||||||||||||||||||||
Average assets | 1.45 | % | 1.42 | % | 1.45 | % | 1.29 | % | 1.35 | % | 1.24 | % | 1.10 | % | 1.43 | % | |||||||||||||||||
Average common stockholders’ equity | 13.37 | % | 13.02 | % | 13.12 | % | 11.19 | % | 11.77 | % | 11.37 | % | 10.00 | % | 14.46 | % | |||||||||||||||||
Net interest margin on average earning assets (taxable-equivalent basis) | 3.82 | % | 3.85 | % | 3.92 | % | 3.92 | % | 3.96 | % | 4.02 | % | 4.12 | % | 4.32 | % | |||||||||||||||||
Nonperforming loans to total loans and leases, net of unearned discounts | .45 | % | .48 | % | .51 | % | .70 | % | .67 | % | .77 | % | .86 | % | .88 | % | |||||||||||||||||
Efficiency ratio(a) | 52.95 | % | 59.08 | % | 53.27 | % | 60.07 | % | 57.18 | % | 56.60 | % | 59.59 | % | 52.37 | % | |||||||||||||||||
Net operating (tangible) results(b) | |||||||||||||||||||||||||||||||||
Net income (in thousands) | $ | 202,215 | $ | 197,822 | $ | 196,158 | $ | 172,423 | $ | 181,594 | $ | 182,670 | $ | 169,436 | $ | 127,231 | |||||||||||||||||
Diluted net income per common share | 1.70 | 1.65 | 1.63 | 1.41 | 1.47 | 1.49 | 1.38 | 1.34 | |||||||||||||||||||||||||
Annualized return on | |||||||||||||||||||||||||||||||||
Average tangible assets | 1.62 | % | 1.60 | % | 1.64 | % | 1.48 | % | 1.57 | % | 1.55 | % | 1.48 | % | 1.62 | % | |||||||||||||||||
Average tangible common stockholders’ equity | 29.69 | % | 29.42 | % | 30.12 | % | 26.02 | % | 28.33 | % | 30.67 | % | 29.89 | % | 24.68 | % | |||||||||||||||||
Efficiency ratio(a) | 50.56 | % | 56.38 | % | 50.39 | % | 56.81 | % | 53.93 | % | 53.22 | % | 56.20 | % | 49.81 | % | |||||||||||||||||
Balance sheet data | |||||||||||||||||||||||||||||||||
In millions, except per share | |||||||||||||||||||||||||||||||||
Average balances | |||||||||||||||||||||||||||||||||
Total assets(c) | $ | 52,725 | $ | 52,170 | $ | 51,251 | $ | 49,915 | $ | 49,123 | $ | 50,024 | $ | 49,010 | $ | 33,061 | |||||||||||||||||
Total tangible assets(c) | 49,647 | 49,075 | 48,137 | 46,781 | 45,968 | 46,848 | 45,822 | 31,884 | |||||||||||||||||||||||||
Earning assets | 46,535 | 45,874 | 44,923 | 43,444 | 42,672 | 42,885 | 42,386 | 30,004 | |||||||||||||||||||||||||
Investment securities | 8,326 | 8,195 | 7,943 | 7,516 | 6,212 | 5,837 | 5,654 | 3,638 | |||||||||||||||||||||||||
Loans and leases, net of unearned discount | 38,142 | 37,611 | 36,904 | 35,843 | 36,361 | 36,953 | 36,632 | 25,789 | |||||||||||||||||||||||||
Deposits | 34,768 | 34,569 | 33,702 | 32,856 | 32,357 | 31,954 | 31,189 | 21,078 | |||||||||||||||||||||||||
Stockholders’ equity(c) | 5,721 | 5,697 | 5,654 | 5,732 | 5,625 | 5,461 | 5,377 | 3,267 | |||||||||||||||||||||||||
Tangible stockholders’ equity(c) | 2,710 | 2,675 | 2,619 | 2,665 | 2,543 | 2,363 | 2,274 | 2,090 | |||||||||||||||||||||||||
At end of quarter | |||||||||||||||||||||||||||||||||
Total assets(c) | $ | 52,939 | $ | 52,887 | $ | 52,094 | $ | 50,832 | $ | 49,826 | $ | 50,259 | $ | 50,399 | $ | 33,444 | |||||||||||||||||
Total tangible assets(c) | 49,869 | 49,801 | 48,990 | 47,708 | 46,681 | 47,093 | 47,211 | 32,271 | |||||||||||||||||||||||||
Earning assets | 46,970 | 46,454 | 45,757 | 44,335 | 43,134 | 43,257 | 43,038 | 30,396 | |||||||||||||||||||||||||
Investment securities | 8,475 | 8,437 | 8,161 | 7,656 | 7,259 | 5,957 | 5,946 | 4,146 | |||||||||||||||||||||||||
Loans and leases, net of unearned discount | 38,398 | 37,950 | 37,522 | 36,515 | 35,772 | 37,160 | 37,002 | 26,224 | |||||||||||||||||||||||||
Deposits | 35,429 | 34,976 | 34,954 | 33,341 | 33,115 | 32,414 | 32,539 | 21,924 | |||||||||||||||||||||||||
Stockholders’ equity(c) | 5,730 | 5,710 | 5,657 | 5,734 | 5,717 | 5,572 | 5,433 | 3,313 | |||||||||||||||||||||||||
Tangible stockholders’ equity(c) | 2,724 | 2,694 | 2,629 | 2,674 | 2,642 | 2,482 | 2,327 | 2,140 | |||||||||||||||||||||||||
Equity per common share | 49.68 | 49.11 | 48.21 | 48.17 | 47.55 | 46.49 | 45.46 | 35.81 | |||||||||||||||||||||||||
Tangible equity per common share | 23.62 | 23.17 | 22.40 | 22.47 | 21.97 | 20.71 | 19.47 | 23.13 | |||||||||||||||||||||||||
Market price per common share | |||||||||||||||||||||||||||||||||
High | $ | 108.75 | $ | 98.66 | $ | 92.70 | $ | 98.65 | $ | 98.98 | $ | 90.93 | $ | 90.91 | $ | 84.48 | |||||||||||||||||
Low | 95.40 | 86.80 | 82.90 | 88.08 | 87.50 | 83.65 | 79.00 | 74.71 | |||||||||||||||||||||||||
Closing | 107.84 | 95.70 | 87.30 | 89.85 | 98.30 | 87.30 | 84.22 | 78.58 |
(a) | Excludes impact of merger-related expenses and net securities transactions. | |
(b) | Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in Table 22. | |
(c) | The difference between total assets and total tangible assets, and stockholders’ equity and tangible stockholders’ equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in Table 22. |
-70-
2004 Quarters | 2003 Quarters | ||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||
Income statement data | |||||||||||||||||||||||||||||||||
In thousands, except per share | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||
Net income | $ | 192,205 | $ | 186,441 | $ | 184,385 | $ | 159,490 | $ | 166,901 | $ | 156,463 | $ | 134,040 | $ | 116,538 | |||||||||||||||||
Amortization of core deposit and other intangible assets(a) | 10,010 | 11,381 | 11,773 | 12,933 | 13,059 | 13,790 | 13,883 | 7,094 | |||||||||||||||||||||||||
Merger-related expenses(a) | — | — | — | 1,634 | 12,417 | 21,513 | 3,599 | ||||||||||||||||||||||||||
Net operating income | $ | 202,215 | $ | 197,822 | $ | 196,158 | $ | 172,423 | $ | 181,594 | $ | 182,670 | $ | 169,436 | $ | 127,231 | |||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.62 | $ | 1.56 | $ | 1.53 | $ | 1.30 | $ | 1.35 | $ | 1.28 | $ | 1.10 | $ | 1.23 | |||||||||||||||||
Amortization of core deposit and other intangible assets(a) | .08 | .09 | .10 | .11 | .11 | .11 | .11 | .07 | |||||||||||||||||||||||||
Merger-related expenses(a) | — | — | — | — | .01 | .10 | .17 | .04 | |||||||||||||||||||||||||
Diluted net operating earnings per share | $ | 1.70 | $ | 1.65 | $ | 1.63 | $ | 1.41 | $ | 1.47 | $ | 1.49 | $ | 1.38 | 1.34 | ||||||||||||||||||
Other expense | |||||||||||||||||||||||||||||||||
Other expense | $ | 361,922 | $ | 406,922 | $ | 357,207 | $ | 389,967 | $ | 378,355 | $ | 396,400 | $ | 431,147 | $ | 242,278 | |||||||||||||||||
Amortization of core deposit and other intangible assets | (16,393 | ) | (18,619 | ) | (19,250 | ) | (21,148 | ) | (21,345 | ) | (22,538 | ) | (22,671 | ) | (11,598 | ) | |||||||||||||||||
Merger-related expenses | — | — | — | — | (2,533 | ) | (19,251 | ) | (33,158 | ) | (5,445 | ) | |||||||||||||||||||||
Noninterest operating expense | $ | 345,529 | $ | 388,303 | $ | 337,957 | $ | 368,819 | $ | 354,477 | $ | 354,611 | $ | 375,318 | $ | 225,235 | |||||||||||||||||
Merger-related expenses | |||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | — | $ | — | $ | — | $ | — | $ | 426 | $ | 4,278 | $ | 3,553 | $ | 285 | |||||||||||||||||
Equipment and net occupancy | — | — | — | — | 472 | 758 | 800 | 96 | |||||||||||||||||||||||||
Printing, postage and supplies | — | — | — | — | 241 | 614 | 2,319 | 42 | |||||||||||||||||||||||||
Other costs of operations | — | — | — | — | 1,394 | 13,601 | 26,486 | 5,022 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 2,533 | $ | 19,251 | $ | 33,158 | $ | 5,445 | |||||||||||||||||
Balance sheet data | |||||||||||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||||||
Average assets | |||||||||||||||||||||||||||||||||
Average assets | $ | 52,725 | $ | 52,170 | $ | 51,251 | $ | 49,915 | $ | 49,123 | $ | 50,024 | $ | 49,010 | $ | 33,061 | |||||||||||||||||
Goodwill | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,893 | ) | (1,098 | ) | |||||||||||||||||
Core deposit and other intangible assets | (174 | ) | (191 | ) | (210 | ) | (230 | ) | (251 | ) | (272 | ) | (295 | ) | (112 | ) | |||||||||||||||||
Deferred taxes | — | — | — | — | — | — | — | 33 | |||||||||||||||||||||||||
Average tangible assets | $ | 49,647 | $ | 49,075 | $ | 48,137 | $ | 46,781 | $ | 45,968 | $ | 46,848 | $ | 45,822 | $ | 31,884 | |||||||||||||||||
Average equity | |||||||||||||||||||||||||||||||||
Average equity | $ | 5,721 | $ | 5,697 | $ | 5,654 | $ | 5,732 | $ | 5,625 | $ | 5,461 | $ | 5,377 | $ | 3,267 | |||||||||||||||||
Goodwill | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,893 | ) | (1,098 | ) | |||||||||||||||||
Core deposit and other intangible assets | (174 | ) | (191 | ) | (210 | ) | (230 | ) | (251 | ) | (272 | ) | (295 | ) | (112 | ) | |||||||||||||||||
Deferred taxes | 67 | 73 | 79 | 67 | 73 | 78 | 85 | 33 | |||||||||||||||||||||||||
Average tangible equity | $ | 2,710 | $ | 2,675 | $ | 2,619 | $ | 2,665 | $ | 2,543 | $ | 2,363 | $ | 2,274 | $ | 2,090 | |||||||||||||||||
At end of quarter | |||||||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||||||
Total assets | $ | 52,939 | $ | 52,887 | $ | 52,094 | $ | 50,832 | $ | 49,826 | $ | 50,259 | $ | 50,399 | $ | 33,444 | |||||||||||||||||
Goodwill | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (1,098 | ) | |||||||||||||||||
Core deposit and other intangible assets | (166 | ) | (182 | ) | (200 | ) | (220 | ) | (241 | ) | (262 | ) | (284 | ) | (107 | ) | |||||||||||||||||
Deferred taxes | — | — | — | — | — | — | — | 32 | |||||||||||||||||||||||||
Total tangible assets | $ | 49,869 | $ | 49,801 | $ | 48,990 | $ | 47,708 | $ | 46,681 | $ | 47,093 | $ | 47,211 | $ | 32,271 | |||||||||||||||||
Total equity | |||||||||||||||||||||||||||||||||
Total equity | $ | 5,730 | $ | 5,710 | $ | 5,657 | $ | 5,734 | $ | 5,717 | $ | 5,572 | $ | 5,433 | $ | 3,313 | |||||||||||||||||
Goodwill | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (2,904 | ) | (1,098 | ) | |||||||||||||||||
Core deposit and other intangible assets | (166 | ) | (182 | ) | (200 | ) | (220 | ) | (241 | ) | (262 | ) | (284 | ) | (107 | ) | |||||||||||||||||
Deferred taxes | 64 | 70 | 76 | 64 | 70 | 76 | 82 | 32 | |||||||||||||||||||||||||
Total tangible equity | $ | 2,724 | $ | 2,694 | $ | 2,629 | $ | 2,674 | $ | 2,642 | $ | 2,482 | $ | 2,327 | $ | 2,140 | |||||||||||||||||
(a) | After any related tax effect. |
-71-
-72-
-73-
-74-
-75-
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. | |
Incorporated by reference to the discussion contained in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the captions “Liquidity, Market Risk, and Interest Rate Sensitivity” (including Table 19) and “Capital.” | ||
Item 8. | Financial Statements and Supplementary Data. | |
Financial Statements and Supplementary Data consist of the financial statements as indexed and presented below and Table 21 “Quarterly Trends” presented in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” | ||
Index to Financial Statements and Financial Statement Schedules | ||
Report on Internal Control Over Financial Reporting | 77 | |
Report of Independent Registered Public Accounting Firm | 78 | |
Consolidated Balance Sheet — December 31, 2004 and 2003 | 80 | |
Consolidated Statement of Income — Years ended December 31, 2004, 2003 and 2002 | 81 | |
Consolidated Statement of Cash Flows — Years ended December 31, 2004, 2003 and 2002 | 82 | |
Consolidated Statement of Changes in Stockholders’ Equity — Years ended December 31, 2004, 2003 and 2002 | 83 | |
Notes to Financial Statements | 84 |
-76-
M&T BANK CORPORATION | |
/s/Robert G. Wilmers | |
Robert G. Wilmers | |
Chairman of the Board, President and | |
Chief Executive Officer | |
/s/Michael P. Pinto | |
Michael P. Pinto | |
Executive Vice President and Chief Financial Officer |
-77-
-78-
-79-
December 31 | ||||||||||
2004 | 2003 | |||||||||
(In thousands) | ||||||||||
Assets | ||||||||||
Cash and due from banks | $ | 1,334,628 | $ | 1,877,494 | ||||||
Money-market assets | ||||||||||
Interest-bearing deposits at banks | 10,242 | 13,194 | ||||||||
Federal funds sold and agreements to resell securities | 29,176 | 22,288 | ||||||||
Trading account | 159,946 | 214,833 | ||||||||
Total money-market assets | 199,364 | 250,315 | ||||||||
Investment securities | ||||||||||
Available for sale (cost: $8,047,681 in 2004; $6,800,341 in 2003) | 8,054,717 | 6,862,937 | ||||||||
Held to maturity (market value: $100,275 in 2004; $108,053 in 2003) | 98,050 | 104,872 | ||||||||
Other (market value: $321,852 in 2004; $291,341 in 2003) | 321,852 | 291,341 | ||||||||
Total investment securities | 8,474,619 | 7,259,150 | ||||||||
Loans and leases | 38,644,622 | 36,037,598 | ||||||||
Unearned discount | (246,145 | ) | (265,163 | ) | ||||||
Allowance for credit losses | (626,864 | ) | (614,058 | ) | ||||||
Loans and leases, net | 37,771,613 | 35,158,377 | ||||||||
Premises and equipment | 367,204 | 398,971 | ||||||||
Goodwill | 2,904,081 | 2,904,081 | ||||||||
Core deposit and other intangible assets | 165,507 | 240,830 | ||||||||
Accrued interest and other assets | 1,721,705 | 1,736,863 | ||||||||
Total assets | $ | 52,938,721 | $ | 49,826,081 | ||||||
Liabilities | ||||||||||
Noninterest-bearing deposits | $ | 8,417,365 | $ | 8,411,296 | ||||||
NOW accounts | 828,999 | 1,738,427 | ||||||||
Savings deposits | 14,721,663 | 14,118,521 | ||||||||
Time deposits | 7,228,514 | 6,637,249 | ||||||||
Deposits at foreign office | 4,232,932 | 2,209,451 | ||||||||
Total deposits | 35,429,473 | 33,114,944 | ||||||||
Federal funds purchased and agreements to repurchase securities | 3,924,576 | 3,832,182 | ||||||||
Other short-term borrowings | 779,088 | 610,064 | ||||||||
Accrued interest and other liabilities | 727,411 | 1,016,256 | ||||||||
Long-term borrowings | 6,348,559 | 5,535,425 | ||||||||
Total liabilities | 47,209,107 | 44,108,871 | ||||||||
Stockholders’ equity | ||||||||||
Preferred stock, $1 par, 1,000,000 shares authorized, none outstanding | — | — | ||||||||
Common stock, $.50 par, 250,000,000 shares authorized, 120,396,611 shares issued in 2004; 120,106,490 shares issued in 2003 | 60,198 | 60,053 | ||||||||
Common stock issuable, 107,517 shares in 2004; 124,303 shares in 2003 | 5,779 | 6,326 | ||||||||
Additional paid-in capital | 2,897,912 | 2,888,963 | ||||||||
Retained earnings | 3,270,887 | 2,736,215 | ||||||||
Accumulated other comprehensive income (loss), net | (17,209 | ) | 25,653 | |||||||
Treasury stock — common, at cost — 5,168,896 shares in 2004; none in 2003 | (487,953 | ) | — | |||||||
Total stockholders’ equity | 5,729,614 | 5,717,210 | ||||||||
Total liabilities and stockholders’ equity | $ | 52,938,721 | $ | 49,826,081 | ||||||
-80-
Year Ended December 31 | |||||||||||||||
2004 | 2003 | 2002 | |||||||||||||
(In thousands, except per share) | |||||||||||||||
Interest income | |||||||||||||||
Loans and leases, including fees | $ | 1,974,469 | $ | 1,897,701 | $ | 1,670,412 | |||||||||
Money-market assets | |||||||||||||||
Deposits at banks | 65 | 147 | 76 | ||||||||||||
Federal funds sold and agreements to resell securities | 134 | 1,875 | 4,455 | ||||||||||||
Trading account | 375 | 592 | 202 | ||||||||||||
Investment securities | |||||||||||||||
Fully taxable | 309,141 | 210,968 | 148,221 | ||||||||||||
Exempt from federal taxes | 14,548 | 15,282 | 18,733 | ||||||||||||
Total interest income | 2,298,732 | 2,126,565 | 1,842,099 | ||||||||||||
Interest expense | |||||||||||||||
NOW accounts | 1,802 | 3,613 | 3,900 | ||||||||||||
Savings deposits | 92,064 | 102,190 | 107,281 | ||||||||||||
Time deposits | 154,722 | 159,700 | 237,001 | ||||||||||||
Deposits at foreign office | 43,034 | 14,991 | 8,460 | ||||||||||||
Short-term borrowings | 71,172 | 49,064 | 52,723 | ||||||||||||
Long-term borrowings | 201,366 | 198,252 | 185,149 | ||||||||||||
Total interest expense | 564,160 | 527,810 | 594,514 | ||||||||||||
Net interest income | 1,734,572 | 1,598,755 | 1,247,585 | ||||||||||||
Provision for credit losses | 95,000 | 131,000 | 122,000 | ||||||||||||
Net interest income after provision for credit losses | 1,639,572 | 1,467,755 | 1,125,585 | ||||||||||||
Other income | |||||||||||||||
Mortgage banking revenues | 124,353 | 149,105 | 116,408 | ||||||||||||
Service charges on deposit accounts | 366,301 | 309,749 | 167,531 | ||||||||||||
Trust income | 136,296 | 114,620 | 60,030 | ||||||||||||
Brokerage services income | 53,740 | 51,184 | 43,261 | ||||||||||||
Trading account and foreign exchange gains | 19,435 | 15,989 | 2,860 | ||||||||||||
Gain (loss) on sales of bank investment securities | 2,874 | 2,487 | (608 | ) | |||||||||||
Other revenues from operations | 239,970 | 187,961 | 122,449 | ||||||||||||
Total other income | 942,969 | 831,095 | 511,931 | ||||||||||||
Other expense | |||||||||||||||
Salaries and employee benefits | 806,552 | 740,324 | 496,990 | ||||||||||||
Equipment and net occupancy | 179,595 | 170,623 | 107,822 | ||||||||||||
Printing, postage and supplies | 34,476 | 36,985 | 25,378 | ||||||||||||
Amortization of core deposit and other intangible assets | 75,410 | 78,152 | 51,484 | ||||||||||||
Other costs of operations | 419,985 | 422,096 | 279,937 | ||||||||||||
Total other expense | 1,516,018 | 1,448,180 | 961,611 | ||||||||||||
Income before taxes | 1,066,523 | 850,670 | 675,905 | ||||||||||||
Income taxes | 344,002 | 276,728 | 219,153 | ||||||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | |||||||||
Net income per common share | |||||||||||||||
Basic | $ | 6.14 | $ | 5.08 | $ | 4.94 | |||||||||
Diluted | 6.00 | 4.95 | 4.78 |
-81-
Year Ended December 31 | |||||||||||||||
2004 | 2003 | 2002 | |||||||||||||
(In thousands) | |||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||
Provision for credit losses | 95,000 | 131,000 | 122,000 | ||||||||||||
Depreciation and amortization of premises and equipment | 62,779 | 62,603 | 38,497 | ||||||||||||
Amortization of capitalized servicing rights | 57,885 | 50,907 | 39,806 | ||||||||||||
Amortization of core deposit and other intangible assets | 75,410 | 78,152 | 51,484 | ||||||||||||
Provision for deferred income taxes | (137,596 | ) | (60,906 | ) | (36,499 | ) | |||||||||
Asset write-downs | 737 | 565 | 1,235 | ||||||||||||
Net gain on sales of assets | (7,127 | ) | (4,443 | ) | (7,514 | ) | |||||||||
Net change in accrued interest receivable, payable | (26,438 | ) | (5,709 | ) | (33,470 | ) | |||||||||
Net change in other accrued income and expense | 4,528 | 30,629 | 19,511 | ||||||||||||
Net change in loans held for sale | (133,925 | ) | 356,754 | (22,279 | ) | ||||||||||
Net change in trading account assets and liabilities | 10,596 | 2,121 | (3,723 | ) | |||||||||||
Net cash provided by operating activities | 724,370 | 1,215,615 | 625,800 | ||||||||||||
Cash flows from investing activities | |||||||||||||||
Proceeds from sales of investment securities | |||||||||||||||
Available for sale | 727,229 | 78,978 | 47,525 | ||||||||||||
Other | 20,510 | 180,325 | 55,546 | ||||||||||||
Proceeds from maturities of investment securities | |||||||||||||||
Available for sale | 2,902,255 | 2,467,366 | 2,117,278 | ||||||||||||
Held to maturity | 142,799 | 128,524 | 115,038 | ||||||||||||
Purchases of investment securities | |||||||||||||||
Available for sale | (4,874,927 | ) | (3,445,106 | ) | (2,073,617 | ) | |||||||||
Held to maturity | (136,018 | ) | (140,664 | ) | (80,072 | ) | |||||||||
Other | (51,021 | ) | (149,934 | ) | (85,719 | ) | |||||||||
Additions to capitalized servicing rights | (57,778 | ) | (61,973 | ) | (68,187 | ) | |||||||||
Net increase in loans and leases | (2,583,862 | ) | (1,427,209 | ) | (1,595,888 | ) | |||||||||
Capital expenditures, net | (31,785 | ) | (31,631 | ) | (16,835 | ) | |||||||||
Acquisitions, net of cash acquired: | |||||||||||||||
Banks and bank holding companies | — | 2,134,822 | (2,650 | ) | |||||||||||
Other, net | (15,404 | ) | (12,025 | ) | 4,367 | ||||||||||
Net cash used by investing activities | (3,958,002 | ) | (278,527 | ) | (1,583,214 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||
Net increase in deposits | 2,329,792 | 537,552 | 88,109 | ||||||||||||
Net increase (decrease) in short-term borrowings | 261,454 | (597,930 | ) | 383,591 | |||||||||||
Proceeds from long-term borrowings | 1,400,660 | 1,299,568 | 1,401,197 | ||||||||||||
Payments on long-term borrowings | (575,779 | ) | (1,498,842 | ) | (370,682 | ) | |||||||||
Purchases of treasury stock | (610,261 | ) | — | (240,314 | ) | ||||||||||
Dividends paid — common | (187,669 | ) | (135,423 | ) | (96,858 | ) | |||||||||
Other, net | 79,457 | 73,638 | 69,752 | ||||||||||||
Net cash provided (used) by financing activities | 2,697,654 | (321,437 | ) | 1,234,795 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (535,978 | ) | 615,651 | 277,381 | |||||||||||
Cash and cash equivalents at beginning of year | 1,899,782 | 1,284,131 | 1,006,750 | ||||||||||||
Cash and cash equivalents at end of year | $ | 1,363,804 | $ | 1,899,782 | $ | 1,284,131 | |||||||||
Supplemental disclosure of cash flow information | |||||||||||||||
Interest received during the year | $ | 2,266,601 | 2,151,057 | 1,850,213 | |||||||||||
Interest paid during the year | 589,799 | 577,741 | 635,898 | ||||||||||||
Income taxes paid during the year | 453,006 | 329,827 | 250,332 | ||||||||||||
Supplemental schedule of noncash investing and financing activities | |||||||||||||||
Real estate acquired in settlement of loans | $ | 17,167 | 17,794 | 17,038 | |||||||||||
Acquisition of banks and bank holding companies | |||||||||||||||
Common stock issued | — | 1,993,956 | — | ||||||||||||
Fair value of | |||||||||||||||
Assets acquired (noncash) | — | 14,355,837 | — | ||||||||||||
Liabilities assumed | — | 14,496,703 | — | ||||||||||||
Securitization of residential mortgage loans allocated to | |||||||||||||||
Available for sale investment securities | — | 1,150,834 | 977,387 | ||||||||||||
Capitalized servicing rights | — | 17,279 | 7,212 |
-82-
Accumulated | |||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||
Common | Additional | Comprehensive | |||||||||||||||||||||||||||||||||
Preferred | Common | Stock | Paid-in | Retained | Income (Loss), | Treasury | |||||||||||||||||||||||||||||
Stock | Stock | Issuable | Capital | Earnings | Net | Stock | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
2002 | |||||||||||||||||||||||||||||||||||
Balance — January 1, 2002 | $ | — | 48,570 | 6,162 | 1,194,942 | 1,938,087 | 22,819 | (252,140 | ) | 2,958,440 | |||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 456,752 | — | — | 456,752 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | |||||||||||||||||||||||||||||||||||
Unrealized gains on investment securities | — | — | — | — | — | 32,277 | — | 32,277 | |||||||||||||||||||||||||||
Unrealized losses on cash flow hedge | — | — | — | — | — | (324 | ) | — | (324 | ) | |||||||||||||||||||||||||
488,705 | |||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | — | (240,314 | ) | (240,314 | ) | |||||||||||||||||||||||||
Stock-based compensation plans: | |||||||||||||||||||||||||||||||||||
Stock option and purchase plans: | |||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | 40,579 | — | — | — | 40,579 | |||||||||||||||||||||||||||
Exercises | — | — | — | (42,259 | ) | — | — | 98,854 | 56,595 | ||||||||||||||||||||||||||
Directors’ stock plan | — | — | — | 35 | — | — | 994 | 1,029 | |||||||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | — | 28 | (299 | ) | (133 | ) | — | 707 | 303 | |||||||||||||||||||||||||
Common stock cash dividends — $1.05 per share | — | — | — | — | (96,858 | ) | — | — | (96,858 | ) | |||||||||||||||||||||||||
Balance — December 31, 2002 | $ | — | 48,570 | 6,190 | 1,192,998 | 2,297,848 | 54,772 | (391,899 | ) | 3,208,479 | |||||||||||||||||||||||||
2003 | |||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 573,942 | — | — | 573,942 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | |||||||||||||||||||||||||||||||||||
Unrealized losses on investment securities | — | — | — | — | — | (17,283 | ) | — | (17,283 | ) | |||||||||||||||||||||||||
Unrealized gains on cash flow hedge | — | — | — | — | — | 622 | — | 622 | |||||||||||||||||||||||||||
Minimum pension liability adjustment | — | — | — | — | — | (12,458 | ) | — | (12,458 | ) | |||||||||||||||||||||||||
544,823 | |||||||||||||||||||||||||||||||||||
Acquisition of Allfirst Financial Inc. — common stock issued | — | 10,969 | — | 1,617,034 | — | — | 365,953 | 1,993,956 | |||||||||||||||||||||||||||
Repayment of management stock ownership program receivable | — | — | — | 23 | — | — | — | 23 | |||||||||||||||||||||||||||
Stock-based compensation plans: | |||||||||||||||||||||||||||||||||||
Stock option and purchase plans: | |||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | 43,228 | — | — | — | 43,228 | |||||||||||||||||||||||||||
Exercises | — | 509 | — | 35,045 | — | — | 25,288 | 60,842 | |||||||||||||||||||||||||||
Directors’ stock plan | — | 4 | — | 726 | — | — | 175 | 905 | |||||||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | 1 | 136 | (91 | ) | (152 | ) | — | 483 | 377 | |||||||||||||||||||||||||
Common stock cash dividends — $1.20 per share | — | — | — | — | (135,423 | ) | — | — | (135,423 | ) | |||||||||||||||||||||||||
Balance — December 31, 2003 | $ | — | 60,053 | 6,326 | 2,888,963 | 2,736,215 | 25,653 | — | 5,717,210 | ||||||||||||||||||||||||||
2004 | |||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 722,521 | — | — | 722,521 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax and reclassification adjustments: | |||||||||||||||||||||||||||||||||||
Unrealized losses on investment securities | — | — | — | — | — | (42,823 | ) | — | (42,823 | ) | |||||||||||||||||||||||||
Minimum pension liability adjustment | — | — | — | — | — | (39 | ) | — | (39 | ) | |||||||||||||||||||||||||
679,659 | |||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | — | (610,261 | ) | (610,261 | ) | |||||||||||||||||||||||||
Stock-based compensation plans: | |||||||||||||||||||||||||||||||||||
Stock option and purchase plans: | |||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | 48,103 | — | — | — | 48,103 | |||||||||||||||||||||||||||
Exercises | — | 144 | — | (38,361 | ) | — | — | 119,444 | 81,227 | ||||||||||||||||||||||||||
Directors’ stock plan | — | 1 | — | 167 | — | — | 817 | 985 | |||||||||||||||||||||||||||
Deferred compensation plans, net, including dividend equivalents | — | — | (547 | ) | (960 | ) | (180 | ) | — | 2,047 | 360 | ||||||||||||||||||||||||
Common stock cash dividends — $1.60 per share | — | — | — | — | (187,669 | ) | — | — | (187,669 | ) | |||||||||||||||||||||||||
Balance — December 31, 2004 | $ | — | 60,198 | 5,779 | 2,897,912 | 3,270,887 | (17,209 | ) | (487,953 | ) | 5,729,614 | ||||||||||||||||||||||||
-83-
1. | Significant accounting policies |
Consolidation |
Consolidated Statement of Cash Flows |
Securities purchased under agreements to resell and securities sold under agreements to repurchase |
Trading account |
Investment securities |
-84-
Loans |
Allowance for credit losses |
Premises and equipment |
-85-
Sales and securitizations of financial assets |
Capitalized servicing rights |
Goodwill and core deposit and other intangible assets |
Derivative financial instruments |
-86-
Stock-based compensation |
-87-
Income taxes |
Earnings per common share |
Treasury stock |
2. | Acquisition |
-88-
(In thousands) | ||||
Commercial Banking | $ | 602,153 | ||
Commercial Real Estate | 140,283 | |||
Discretionary Portfolio | — | |||
Residential Mortgage Banking | — | |||
Retail Banking | 813,361 | |||
All Other | 250,731 | |||
Total | $ | 1,806,528 | ||
(In thousands) | ||||
Salaries and employee benefits | $ | 8,542 | ||
Equipment and net occupancy | 2,126 | |||
Printing, postage and supplies | 3,216 | |||
Other costs of operations | 46,503 | |||
$ | 60,387 | |||
-89-
Pro Forma | ||||||||
Year Ended December 31 | ||||||||
2003 | 2002 | |||||||
(In thousands, | ||||||||
except per share) | ||||||||
Interest income | $ | 2,267,271 | $ | 2,560,530 | ||||
Other income | 923,055 | 892,657 | ||||||
Net income | 598,556 | 567,431 | ||||||
Diluted earnings per common share | 4.89 | 4.64 |
3. | Investment securities |
Gross | Gross | Estimated | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2004 | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 334,337 | $ | 280 | $ | 2,766 | $ | 331,851 | |||||||||
Obligations of states and political subdivisions | 103,415 | 6,365 | 8 | 109,772 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Government issued or guaranteed | 3,633,394 | 26,372 | 26,507 | 3,633,259 | |||||||||||||
Privately issued | 3,393,255 | 23,650 | 12,738 | 3,404,167 | |||||||||||||
Other debt securities | 183,937 | 8,415 | 1,250 | 191,102 | |||||||||||||
Equity securities | 399,343 | 10,293 | 25,070 | 384,566 | |||||||||||||
8,047,681 | 75,375 | 68,339 | 8,054,717 | ||||||||||||||
Investment securities held to maturity: | |||||||||||||||||
Obligations of states and political subdivisions | 95,020 | 2,378 | 153 | 97,245 | |||||||||||||
Other debt securities | 3,030 | — | — | 3,030 | |||||||||||||
98,050 | 2,378 | 153 | 100,275 | ||||||||||||||
Other securities | 321,852 | — | — | 321,852 | |||||||||||||
Total | $ | 8,467,583 | $ | 77,753 | $ | 68,492 | $ | 8,476,844 | |||||||||
-90-
Gross | Gross | Estimated | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2003 | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 296,425 | $ | 589 | $ | 2,976 | $ | 294,038 | |||||||||
Obligations of states and political subdivisions | 136,186 | 10,355 | 45 | 146,496 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Government issued or guaranteed | 3,075,929 | 36,818 | 8,238 | 3,104,509 | |||||||||||||
Privately issued | 2,520,393 | 32,514 | 4,672 | 2,548,235 | |||||||||||||
Other debt securities | 312,508 | 15,011 | 6,671 | 320,848 | |||||||||||||
Equity securities | 458,900 | 5,292 | 15,381 | 448,811 | |||||||||||||
6,800,341 | 100,579 | 37,983 | 6,862,937 | ||||||||||||||
Investment securities held to maturity: | |||||||||||||||||
Obligations of states and political subdivisions | 102,697 | 3,181 | — | 105,878 | |||||||||||||
Other debt securities | 2,175 | — | — | 2,175 | |||||||||||||
104,872 | 3,181 | — | 108,053 | ||||||||||||||
Other securities | 291,341 | — | — | 291,341 | |||||||||||||
Total | $ | 7,196,554 | $ | 103,760 | $ | 37,983 | $ | 7,262,331 | |||||||||
December 31 | ||||||||
2004 | 2003 | |||||||
(In thousands) | ||||||||
Amortized cost | $ | 5,620,973 | $ | 4,545,040 | ||||
Estimated fair value | 5,611,968 | 4,568,193 |
-91-
Amortized | Estimated | |||||||
Cost | Fair Value | |||||||
(In thousands) | ||||||||
Debt securities available for sale: | ||||||||
Due in one year or less | $ | 47,782 | $ | 48,267 | ||||
Due after one year through five years | 371,442 | 370,528 | ||||||
Due after five years through ten years | 46,499 | 48,915 | ||||||
Due after ten years | 155,966 | 165,015 | ||||||
621,689 | 632,725 | |||||||
Mortgage-backed securities available for sale | 7,026,649 | 7,037,426 | ||||||
$ | 7,648,338 | $ | 7,670,151 | |||||
Debt securities held to maturity: | ||||||||
Due in one year or less | $ | 73,085 | $ | 72,977 | ||||
Due after one year through five years | 7,720 | 8,000 | ||||||
Due after five years through ten years | 8,383 | 8,923 | ||||||
Due after ten years | 8,862 | 10,375 | ||||||
$ | 98,050 | $ | 100,275 | |||||
Less Than 12 Months | 12 Months or More | ||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Fair Value | Losses | Fair Value | Losses | ||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2004 | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 300,496 | $ | (2,766 | ) | $ | — | $ | — | ||||||||
Obligations of states and political subdivisions | 68,375 | (155 | ) | 439 | (6 | ) | |||||||||||
Mortgage-backed securities: | |||||||||||||||||
Government issued or guaranteed | 2,530,605 | (26,333 | ) | 27,626 | (174 | ) | |||||||||||
Privately issued | 1,450,346 | (11,783 | ) | 53,245 | (955 | ) | |||||||||||
Other debt securities | 31,516 | (241 | ) | 31,520 | (1,009 | ) | |||||||||||
Equity securities | 16,420 | (3,580 | ) | 91,367 | (21,490 | ) | |||||||||||
Total | $ | 4,397,758 | $ | (44,858 | ) | $ | 204,197 | $ | (23,634 | ) | |||||||
-92-
Less Than 12 Months | 12 Months or More | ||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Fair Value | Losses | Fair Value | Losses | ||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2003 | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 149,420 | $ | (2,976 | ) | $ | — | $ | — | ||||||||
Obligations of states and political subdivisions | 449 | (6 | ) | 975 | (39 | ) | |||||||||||
Mortgage-backed securities: | |||||||||||||||||
Government issued or guaranteed | 1,505,795 | (8,233 | ) | 1,295 | (5 | ) | |||||||||||
Privately issued | 477,137 | (4,124 | ) | 24,284 | (548 | ) | |||||||||||
Other debt securities | 19,848 | (274 | ) | 121,638 | (6,397 | ) | |||||||||||
Equity securities | — | — | 97,476 | (15,381 | ) | ||||||||||||
Total | $ | 2,152,649 | $ | (15,613 | ) | $ | 245,668 | $ | (22,370 | ) | |||||||
-93-
4. | Loans and leases |
December 31 | |||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Loans | |||||||||
Commercial, financial, agricultural, etc. | $ | 9,424,616 | $ | 8,566,604 | |||||
Real estate: | |||||||||
Residential | 2,821,533 | 2,470,438 | |||||||
Commercial | 12,716,694 | 11,462,293 | |||||||
Construction | 1,797,106 | 1,537,880 | |||||||
Consumer | 10,919,071 | 10,689,330 | |||||||
Total loans | 37,679,020 | 34,726,545 | |||||||
Leases | |||||||||
Commercial | 745,079 | 839,795 | |||||||
Consumer | 220,523 | 471,258 | |||||||
Total leases | 965,602 | 1,311,053 | |||||||
Total loans and leases | $ | 38,644,622 | $ | 36,037,598 | |||||
-94-
December 31 | |||||||||||
2004 | 2003 | ||||||||||
(In thousands) | |||||||||||
Commercial leases: | |||||||||||
Direct financings: | |||||||||||
Lease payments receivable | $ | 286,952 | $ | 330,800 | |||||||
Estimated residual value of leased assets | 115,114 | 121,402 | |||||||||
Unearned income | (56,556 | ) | (64,264 | ) | |||||||
Investment in direct financings | 345,510 | 387,938 | |||||||||
Leveraged leases: | |||||||||||
Lease payments receivable | 152,424 | 173,999 | |||||||||
Estimated residual value of leased assets | 190,589 | 213,594 | |||||||||
Unearned income | (54,314 | ) | (63,741 | ) | |||||||
Investment in leveraged leases | 288,699 | 323,852 | |||||||||
Investment in commercial leases | 634,209 | 711,790 | |||||||||
Consumer automobile leases: | |||||||||||
Lease payments receivable | 79,602 | 191,893 | |||||||||
Estimated residual value of leased assets | 140,921 | 279,365 | |||||||||
Unearned income | (15,638 | ) | (45,871 | ) | |||||||
Investment in consumer automobile leases | 204,885 | 425,387 | |||||||||
Total investment in leases | $ | 839,094 | $ | 1,137,177 | |||||||
Deferred taxes payable arising from leveraged leases | $ | 247,513 | $ | 299,285 |
-95-
Commercial | Consumer | Total | |||||||||||
(In thousands) | |||||||||||||
Year ending December 31: | |||||||||||||
2005 | $ | 86,661 | $ | 46,344 | $ | 133,005 | |||||||
2006 | 79,390 | 23,625 | 103,015 | ||||||||||
2007 | 59,547 | 8,868 | 68,415 | ||||||||||
2008 | 42,578 | 765 | 43,343 | ||||||||||
2009 | 29,934 | — | 29,934 | ||||||||||
Later years | 141,266 | — | 141,266 | ||||||||||
$ | 439,376 | $ | 79,602 | $ | 518,978 | ||||||||
5. | Allowance for credit losses |
Year Ended December 31 | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In thousands) | |||||||||||||
Beginning balance | $ | 614,058 | $ | 436,472 | $ | 425,008 | |||||||
Provision for credit losses | 95,000 | 131,000 | 122,000 | ||||||||||
Allowance obtained through acquisitions | — | 146,300 | — | ||||||||||
Allowance related to loans sold or securitized | (501 | ) | (3,198 | ) | (2,786 | ) | |||||||
Net charge-offs | |||||||||||||
Charge-offs | (119,025 | ) | (127,520 | ) | (124,582 | ) | |||||||
Recoveries | 37,332 | 31,004 | 16,832 | ||||||||||
Net charge-offs | (81,693 | ) | (96,516 | ) | (107,750 | ) | |||||||
Ending balance | $ | 626,864 | $ | 614,058 | $ | 436,472 | |||||||
-96-
6. | Premises and equipment |
December 31 | |||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Land | $ | 55,959 | $ | 57,811 | |||||
Buildings — owned | 225,449 | 227,915 | |||||||
Buildings — capital leases | 1,598 | 1,784 | |||||||
Leasehold improvements | 92,552 | 97,302 | |||||||
Furniture and equipment — owned | 289,538 | 287,910 | |||||||
Furniture and equipment — capital leases | 1,197 | 1,197 | |||||||
666,293 | 673,919 | ||||||||
Less: accumulated depreciation and amortization | |||||||||
Owned assets | 297,666 | 273,660 | |||||||
Capital leases | 1,423 | 1,288 | |||||||
299,089 | 274,948 | ||||||||
Premises and equipment, net | $ | 367,204 | $ | 398,971 | |||||
7. | Capitalized servicing assets |
Year Ended December 31 | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(In thousands) | ||||||||||||
Beginning balance | $ | 185,816 | $ | 135,076 | $ | 107,173 | ||||||
Originations | 26,285 | 50,125 | 39,460 | |||||||||
Purchases | 32,009 | 34,243 | 21,037 | |||||||||
Assumed in loan securitizations (note 18) | — | 17,279 | 7,212 | |||||||||
Amortization | (57,885 | ) | (50,907 | ) | (39,806 | ) | ||||||
186,225 | 185,816 | 135,076 | ||||||||||
Valuation allowance | (30,878 | ) | (34,500 | ) | (32,500 | ) | ||||||
Ending balance, net | $ | 155,347 | $ | 151,316 | $ | 102,576 | ||||||
-97-
Weighted-average prepayment speeds — residential (constant prepayment rate) | 19.63 | % | ||
Impact on fair value of 10% adverse change | $ | (7,111,000 | ) | |
Impact on fair value of 20% adverse change | (13,535,000 | ) | ||
Weighted-average OAS — residential | 6.97 | % | ||
Impact on fair value of 10% adverse change | $ | (2,313,000 | ) | |
Impact on fair value of 20% adverse change | (4,584,000 | ) | ||
Weighted-average discount rate — commercial | 18.00 | % | ||
Impact on fair value of 10% adverse change | $ | (1,137,000 | ) | |
Impact on fair value of 20% adverse change | (2,192,000 | ) |
-98-
8. | Goodwill and other intangible assets |
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
(In thousands) | |||||||||||||
December 31, 2004 | |||||||||||||
Core deposit | $ | 385,725 | $ | 258,918 | $ | 126,807 | �� | ||||||
Other | 99,530 | 60,830 | 38,700 | ||||||||||
Total | $ | 485,255 | $ | 319,748 | $ | 165,507 | |||||||
December 31, 2003 | |||||||||||||
Core deposit | $ | 385,725 | $ | 202,616 | $ | 183,109 | |||||||
Other | 99,443 | 41,722 | 57,721 | ||||||||||
Total | $ | 485,168 | $ | 244,338 | $ | 240,830 | |||||||
(In thousands) | |||||
Year ending December 31: | |||||
2005 | $ | 56,804 | |||
2006 | 42,798 | ||||
2007 | 29,311 | ||||
2008 | 17,707 | ||||
2009 | 11,473 | ||||
Later years | 7,414 | ||||
$ | 165,507 | ||||
-99-
(In thousands) | ||||
Commercial Banking | $ | 838,165 | ||
Commercial Real Estate | 255,166 | |||
Discretionary Portfolio | — | |||
Residential Mortgage Banking | — | |||
Retail Banking | 1,440,925 | |||
All Other | 369,825 | |||
Total | $ | 2,904,081 | ||
9. | Borrowings |
Federal Funds | |||||||||||||
Purchased | |||||||||||||
and | Other | ||||||||||||
Repurchase | Short-term | ||||||||||||
Agreements | Borrowings | Total | |||||||||||
(Dollars in thousands) | |||||||||||||
At December 31, 2004 | |||||||||||||
Amount outstanding | $ | 3,924,576 | $ | 779,088 | $ | 4,703,664 | |||||||
Weighted-average interest rate | 2.08 | % | 2.16 | % | 2.09 | % | |||||||
For the year ended December 31, 2004 | |||||||||||||
Highest amount at a month-end | $ | 5,039,431 | $ | 779,088 | |||||||||
Daily-average amount outstanding | 4,575,951 | 565,685 | $ | 5,141,636 | |||||||||
Weighted-average interest rate | 1.36 | % | 1.59 | % | 1.38 | % |
-100-
Federal Funds | |||||||||||||
Purchased and | Other | ||||||||||||
Repurchase | Short-term | ||||||||||||
Agreements | Borrowings | Total | |||||||||||
(Dollars in thousands) | |||||||||||||
At December 31, 2003 | |||||||||||||
Amount outstanding | $ | 3,832,182 | $ | 610,064 | $ | 4,442,246 | |||||||
Weighted-average interest rate | .92 | % | 1.25 | % | .96 | % | |||||||
For the year ended December 31, 2003 | |||||||||||||
Highest amount at a month-end | $ | 4,301,977 | $ | 1,322,839 | |||||||||
Daily-average amount outstanding | 3,337,582 | 993,235 | $ | 4,330,817 | |||||||||
Weighted-average interest rate | 1.09 | % | 1.27 | % | 1.13 | % | |||||||
At December 31, 2002 | |||||||||||||
Amount outstanding | $ | 2,067,834 | $ | 1,361,580 | $ | 3,429,414 | |||||||
Weighted-average interest rate | 1.24 | % | 1.26 | % | 1.24 | % | |||||||
For the year ended December 31, 2002 | |||||||||||||
Highest amount at a month-end | $ | 2,598,647 | $ | 1,361,580 | |||||||||
Daily-average amount outstanding | 2,101,700 | 1,022,976 | $ | 3,124,676 | |||||||||
Weighted-average interest rate | 1.69 | % | 1.69 | % | 1.69 | % |
M&T | ||||||||||||
M&T | M&T Bank | Bank, N.A. | ||||||||||
(In thousands) | ||||||||||||
Outstanding borrowings | $ | — | $ | 3,738,023 | $ | — | ||||||
Unused | 30,000 | 5,072,172 | 115,329 |
-101-
December 31 | |||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Subordinated notes of M&T Bank: | |||||||||
7% due 2005 | $ | 100,000 | $ | 100,000 | |||||
8% due 2010 | 499,655 | 499,595 | |||||||
3.85% due 2013 | 399,719 | 399,633 | |||||||
Subordinated notes of M&T: | |||||||||
7.2% due 2007 | 215,965 | 222,351 | |||||||
6.875% due 2009 | 107,273 | 108,951 | |||||||
Senior medium term notes: | |||||||||
7.3% due 2004 | — | 74,415 | |||||||
6.5% due 2008 | 28,475 | 28,028 | |||||||
Advances from FHLB: | |||||||||
Variable rates | 2,700,000 | 2,000,000 | |||||||
Fixed rates | 1,053,831 | 1,156,535 | |||||||
Junior subordinated debentures associated with preferred capital securities of: | |||||||||
M&T Capital Trust I — 8.234% | 154,640 | 154,640 | |||||||
M&T Capital Trust II — 8.277% | 103,093 | 103,093 | |||||||
M&T Capital Trust III — 9.25% | 69,034 | 69,359 | |||||||
First Maryland Capital I — Variable rate | 142,553 | 142,004 | |||||||
First Maryland Capital II — Variable rate | 139,997 | 139,333 | |||||||
Allfirst Asset Trust — Variable rate | 101,483 | 101,327 | |||||||
Other | 532,841 | 236,161 | |||||||
$ | 6,348,559 | $ | 5,535,425 | ||||||
-102-
Trust | Distribution Rate | Distribution Dates | |||||||
Trust I | 8.234% | February 1 and August 1 | |||||||
Trust II | 8.277% | June 1 and December 1 | |||||||
Trust III | 9.25% | February 1 and August 1 | |||||||
Trust IV | LIBOR plus 1.00% | January 15, April 15, July 15 and October 15 | |||||||
Trust V | LIBOR plus .85% | February 1, May 1, August 1 and November 1 |
Capital | Common | Junior Subordinated | |||||||||
Trust | Securities | Securities | Debentures | ||||||||
Trust I | $ | 150 million | $ | 4.64 million | $154.64 million aggregate liquidation amount of 8.234% Junior Subordinated Debentures due February 1, 2027. | ||||||
Trust II | $ | 100 million | $ | 3.09 million | $103.09 million aggregate liquidation amount of 8.277% Junior Subordinated Debentures due June 1, 2027. | ||||||
Trust III | $ | 60 million | $ | 1.856 million | $61.856 million aggregate liquidation amount of 9.25% Junior Subordinated Debentures due February 1, 2027. | ||||||
Trust IV | $ | 150 million | $ | 4.64 million | $154.64 million aggregate liquidation amount of Floating Rate Junior Subordinated Debentures due January 15, 2027. | ||||||
Trust V | $ | 150 million | $ | 4.64 million | $154.64 million aggregate liquidation amount of Floating Rate Junior Subordinated Debentures due February 1, 2027. |
-103-
-104-
-105-
(In thousands) | |||||
Year ending December 31: | |||||
2005 | $ | 1,383,167 | |||
2006 | 615,749 | ||||
2007 | 534,268 | ||||
2008 | 904,760 | ||||
2009 | 543,617 | ||||
Later years | 2,366,998 | ||||
$ | 6,348,559 | ||||
10. | Stock-based compensation plans |
Stock option plans |
-106-
Stock | ||||||||||
Options | Weighted-Average | |||||||||
Outstanding | Exercise Price | |||||||||
2002 | ||||||||||
Beginning balance | 9,905,270 | $ | 43.30 | |||||||
Granted | 1,898,918 | 75.81 | ||||||||
Exercised | (1,431,190 | ) | 38.10 | |||||||
Cancelled | (167,183 | ) | 60.64 | |||||||
At year-end | 10,205,815 | 49.80 | ||||||||
2003 | ||||||||||
Granted | 1,787,701 | 80.33 | ||||||||
Exercised | (1,499,687 | ) | 35.57 | |||||||
Cancelled | (57,706 | ) | 71.56 | |||||||
At year-end | 10,436,123 | 56.95 | ||||||||
2004 | ||||||||||
Granted | 2,073,118 | 91.73 | ||||||||
Exercised | (1,694,501 | ) | 40.80 | |||||||
Cancelled | (184,749 | ) | 80.15 | |||||||
At year-end | 10,629,991 | $ | 65.90 | |||||||
Exercisable at: | ||||||||||
December 31, 2004 | 5,383,776 | $ | 50.53 | |||||||
December 31, 2003 | 5,152,482 | 42.92 | ||||||||
December 31, 2002 | 4,976,171 | 36.57 |
Outstanding | Exercisable | |||||||||||||||||||
Weighted-Average | Weighted- | |||||||||||||||||||
Number of | Average | |||||||||||||||||||
Number of | Exercise | Life (in | Stock | Exercise | ||||||||||||||||
Range of Exercise Price | Stock Options | Price | Years) | Options | Price | |||||||||||||||
$14.00 to $41.01 | 983,343 | $ | 23.70 | 1.4 | 983,343 | $ | 23.70 | |||||||||||||
42.00 to 65.60 | 2,590,270 | 45.83 | 4.3 | 2,584,270 | 45.79 | |||||||||||||||
65.80 to 75.80 | 3,302,057 | 70.89 | 6.5 | 1,467,793 | 69.38 | |||||||||||||||
77.48 to 97.41 | 3,754,321 | 86.42 | 8.5 | 348,370 | 82.04 | |||||||||||||||
10,629,991 | $ | 65.90 | 6.2 | 5,383,776 | $ | 50.53 | ||||||||||||||
-107-
Stock purchase plan |
Deferred bonus plan |
Directors’ stock plan |
-108-
Management stock ownership program |
11. | Pension plans and other postretirement benefits |
Year Ended December 31 | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(In thousands) | ||||||||||||
Service cost | $ | 28,505 | $ | 24,530 | $ | 12,776 | ||||||
Interest cost on projected benefit obligation | 36,704 | 31,495 | 19,268 | |||||||||
Expected return on plan assets | (37,642 | ) | (34,426 | ) | (26,371 | ) | ||||||
Amortization of prior service cost | 57 | 35 | 27 | |||||||||
Recognized net actuarial loss | 2,332 | 2,349 | 58 | |||||||||
Net periodic pension expense | $ | 29,956 | $ | 23,983 | $ | 5,758 | ||||||
Year Ended December 31 | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(In thousands) | ||||||||||||
Service cost | $ | 879 | $ | 701 | $ | 426 | ||||||
Interest cost on projected benefit obligation | 5,426 | 4,129 | 1,958 | |||||||||
Expected return on plan assets | — | — | (38 | ) | ||||||||
Amortization of prior service cost | 170 | 170 | 170 | |||||||||
Recognized net actuarial loss | 889 | 371 | 200 | |||||||||
Net postretirement benefits expense | $ | 7,364 | $ | 5,371 | $ | 2,716 | ||||||
-109-
Pension Benefits | Postretirement Benefits | ||||||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||||||
(In thousands) | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 606,411 | $ | 312,776 | $ | 78,865 | $ | 29,543 | |||||||||
Service cost | 28,505 | 24,530 | 879 | 701 | |||||||||||||
Interest cost | 36,704 | 31,495 | 5,426 | 4,129 | |||||||||||||
Plan participants’ contributions | — | — | 2,143 | 1,675 | |||||||||||||
Actuarial loss | 17,349 | 31,155 | 11,231 | 3,640 | |||||||||||||
Business combinations | — | 230,610 | — | 47,408 | |||||||||||||
Benefits paid | (34,083 | ) | (24,155 | ) | (11,206 | ) | (8,231 | ) | |||||||||
Benefit obligation at end of year | 654,886 | 606,411 | 87,338 | 78,865 | |||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 464,594 | 254,419 | — | — | |||||||||||||
Actual return on plan assets | 31,731 | 95,788 | — | — | |||||||||||||
Plan participants’ contributions | — | — | 2,143 | 1,675 | |||||||||||||
Business combinations | — | 136,086 | — | — | |||||||||||||
Benefits and other payments | (30,863 | ) | (21,699 | ) | (2,143 | ) | (1,675 | ) | |||||||||
Fair value of plan assets at end of year | 465,462 | 464,594 | — | — | |||||||||||||
Funded status | (189,424 | ) | (141,817 | ) | (87,338 | ) | (78,865 | ) | |||||||||
Unrecognized net actuarial loss | 99,011 | 80,388 | 20,843 | 10,501 | |||||||||||||
Unrecognized prior service cost | 502 | 560 | 1,270 | 1,440 | |||||||||||||
Prepaid (accrued) benefit cost | $ | (89,911 | ) | $ | (60,869 | ) | $ | (65,225 | ) | $ | (66,924 | ) | |||||
Amounts recognized in the consolidated balance sheet were: | |||||||||||||||||
Prepaid benefit cost (asset) | $ | 4,600 | $ | 4,503 | $ | — | $ | — | |||||||||
Accrued benefit cost (liability) | (115,561 | ) | (86,422 | ) | (65,225 | ) | (66,924 | ) | |||||||||
Intangible asset | 563 | 627 | — | — | |||||||||||||
Pre-tax charge to accumulated other comprehensive income | 20,487 | 20,423 | — | — | |||||||||||||
$ | (89,911 | ) | $ | (60,869 | ) | $ | (65,225 | ) | $ | (66,924 | ) | ||||||
-110-
Pension | Postretirement | |||||||||||||||
Benefits | Benefits | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Discount rate | 6.00 | % | 6.25 | % | 6.00 | % | 6.25 | % | ||||||||
Rate of increase in future compensation levels | 4.91 | % | 4.92 | % | — | — |
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | |||||||||||||||||||
Discount rate | 6.25 | % | 6.75 | % | 7.25 | % | 6.25 | % | 6.75 | % | 7.25 | % | ||||||||||||
Long-term rate of return on plan assets | 8.50 | % | 8.50 | % | 8.75 | % | — | — | 4.25 | % | ||||||||||||||
Rate of increase in future compensation levels | 4.92 | % | 4.96 | % | 4.94 | % | — | — | — |
December 31 | Target | ||||||||||||
2004 | 2003 | Allocation 2005 | |||||||||||
Equity securities | 76 | % | 75 | % | 55-75% | ||||||||
Debt securities | 23 | 19 | 25-40 | ||||||||||
Other | 1 | 6 | 0-15 | ||||||||||
Total | 100 | % | 100 | % | |||||||||
-111-
Pension | Postretirement | ||||||||
Benefits | Benefits | ||||||||
(In thousands) | |||||||||
Year ending December 31: | |||||||||
2005 | $ | 22,958 | $ | 8,886 | |||||
2006 | 27,979 | 8,457 | |||||||
2007 | 26,446 | 7,876 | |||||||
2008 | 27,159 | 7,455 | |||||||
2009 | 29,351 | 7,080 | |||||||
2010 through 2014 | 191,406 | 32,948 |
+1% | -1% | ||||||||
(In thousands) | |||||||||
Increase (decrease) in: | |||||||||
Service and interest cost | $ | 286 | $ | (256 | ) | ||||
Accumulated postretirement benefit obligation | 4,709 | (4,211 | ) |
-112-
12. | Income taxes |
Year Ended December 31 | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
(In thousands) | ||||||||||||||
Current | ||||||||||||||
Federal | $ | 427,568 | $ | 317,023 | $ | 248,392 | ||||||||
State and city | 54,030 | 20,611 | 7,260 | |||||||||||
Total current | 481,598 | 337,634 | 255,652 | |||||||||||
Deferred | ||||||||||||||
Federal | (88,904 | ) | (49,516 | ) | (30,572 | ) | ||||||||
State and city | (48,692 | ) | (11,390 | ) | (5,927 | ) | ||||||||
Total deferred | (137,596 | ) | (60,906 | ) | (36,499 | ) | ||||||||
Total income taxes applicable to pre-tax income | $ | 344,002 | $ | 276,728 | $ | 219,153 | ||||||||
Year Ended December 31 | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
(In thousands) | ||||||||||||||
Income taxes at statutory rate | $ | 373,283 | $ | 297,735 | $ | 236,567 | ||||||||
Increase (decrease) in taxes: | ||||||||||||||
Tax-exempt income | (26,920 | ) | (24,332 | ) | (19,972 | ) | ||||||||
State and city income taxes, net of federal income tax effect, applicable to: | ||||||||||||||
Pre-tax income | 15,969 | 5,994 | 866 | |||||||||||
Reorganization of subsidiaries | (12,499 | ) | — | — | ||||||||||
Other | (5,831 | ) | (2,669 | ) | 1,692 | |||||||||
$ | 344,002 | $ | 276,728 | $ | 219,153 | |||||||||
-113-
2004 | 2003 | 2002 | |||||||||||
(In thousands) | |||||||||||||
Losses on loans and other assets | $ | 293,664 | $ | 283,512 | $ | 191,005 | |||||||
Postretirement and other supplemental employee benefits | 43,900 | 44,157 | 19,105 | ||||||||||
Incentive compensation plans | 28,172 | 28,871 | 14,650 | ||||||||||
Depreciation and amortization | — | — | 11,286 | ||||||||||
Interest on loans | 19,895 | 7,091 | 14,163 | ||||||||||
Retirement benefits | 28,048 | 17,825 | — | ||||||||||
Stock-based compensation | 39,899 | 33,535 | 26,656 | ||||||||||
Other | 26,334 | 36,864 | 18,104 | ||||||||||
Gross deferred tax assets | 479,912 | 451,855 | 294,969 | ||||||||||
Leasing transactions | (444,467 | ) | (534,035 | ) | (181,476 | ) | |||||||
Capitalized servicing rights | (16,199 | ) | (20,390 | ) | (8,834 | ) | |||||||
Retirement benefits | — | — | (28,798 | ) | |||||||||
Depreciation and amortization | (17,975 | ) | (32,668 | ) | — | ||||||||
Unrealized investment gains | (11,748 | ) | (24,485 | ) | (35,441 | ) | |||||||
Other | (8,086 | ) | (9,198 | ) | (12,911 | ) | |||||||
Gross deferred tax liabilities | (498,475 | ) | (620,776 | ) | (267,460 | ) | |||||||
Net deferred tax asset (liability) | $ | (18,563 | ) | $ | (168,921 | ) | $ | 27,509 | |||||
13. | Earnings per share |
Year Ended December 31 | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In thousands, except per share) | |||||||||||||
Income available to common stockholders: | |||||||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | |||||||
Weighted-average shares outstanding (including common stock issuable) | 117,696 | 113,010 | 92,483 | ||||||||||
Basic earnings per share | $ | 6.14 | $ | 5.08 | $ | 4.94 |
-114-
Year Ended December 31 | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(In thousands, except per share) | ||||||||||||
Income available to common stockholders | $ | 722,521 | $ | 573,942 | $ | 456,752 | ||||||
Weighted-average shares outstanding | 117,696 | 113,010 | 92,483 | |||||||||
Plus: incremental shares from assumed conversion of stock options | 2,710 | 2,922 | 3,039 | |||||||||
Adjusted weighted-average shares outstanding | 120,406 | 115,932 | 95,522 | |||||||||
Diluted earnings per share | $ | 6.00 | $ | 4.95 | $ | 4.78 |
14. | Comprehensive income |
Before-tax | Income | ||||||||||||
Amount | Taxes | Net | |||||||||||
(In thousands) | |||||||||||||
For the year ended December 31, 2004 | |||||||||||||
Unrealized losses on investment securities: | |||||||||||||
Unrealized holding losses | $ | (52,686 | ) | $ | 11,616 | $ | (41,070 | ) | |||||
Less: reclassification adjustment for gains realized in net income | 2,874 | (1,121 | ) | 1,753 | |||||||||
(55,560 | ) | 12,737 | (42,823 | ) | |||||||||
Minimum pension liability adjustment | (64 | ) | 25 | (39 | ) | ||||||||
Net unrealized losses | $ | (55,624 | ) | $ | 12,762 | $ | (42,862 | ) | |||||
For the year ended December 31, 2003 | |||||||||||||
Unrealized losses on investment securities: | |||||||||||||
Unrealized holding losses | $ | (25,752 | ) | $ | 9,986 | $ | (15,766 | ) | |||||
Less: reclassification adjustment for gains realized in net income | 2,487 | (970 | ) | 1,517 | |||||||||
(28,239 | ) | 10,956 | (17,283 | ) | |||||||||
Unrealized gains on cash flow hedge | 1,019 | (397 | ) | 622 | |||||||||
Minimum pension liability adjustment | (20,423 | ) | 7,965 | (12,458 | ) | ||||||||
Net unrealized losses | $ | (47,643 | ) | $ | 18,524 | $ | (29,119 | ) | |||||
For the year ended December 31, 2002 | |||||||||||||
Unrealized gains on investment securities: | |||||||||||||
Unrealized holding gains | $ | 54,552 | $ | (22,662 | ) | $ | 31,890 | ||||||
Less: reclassification adjustment for losses realized in net income | (608 | ) | 221 | (387 | ) | ||||||||
55,160 | (22,883 | ) | 32,277 | ||||||||||
Unrealized losses on cash flow hedge | (558 | ) | 234 | (324 | ) | ||||||||
Net unrealized gains | $ | 54,602 | $ | (22,649 | ) | $ | 31,953 | ||||||
-115-
Minimum | ||||||||||||||||
Pension | ||||||||||||||||
Investment | Cash Flow | Liability | ||||||||||||||
Securities | Hedges | Adjustment | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at January 1, 2002 | $ | 23,117 | $ | (298 | ) | $ | — | $ | 22,819 | |||||||
Net gain (loss) during 2002 | 32,277 | (324 | ) | — | 31,953 | |||||||||||
Balance at December 31, 2002 | 55,394 | (622 | ) | — | 54,772 | |||||||||||
Net gain (loss) during 2003 | (17,283 | ) | 622 | (12,458 | ) | (29,119 | ) | |||||||||
Balance at December 31, 2003 | 38,111 | — | (12,458 | ) | 25,653 | |||||||||||
Net loss during 2004 | (42,823 | ) | — | (39 | ) | (42,862 | ) | |||||||||
Balance at December 31, 2004 | $ | (4,712 | ) | $ | — | $ | (12,497 | ) | $ | (17,209 | ) | |||||
15. | Other income and other expense |
Year Ended December 31 | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In thousands) | |||||||||||||
Other income: | |||||||||||||
Bank owned life insurance | $ | 48,010 | $ | 44,630 | $ | 32,625 | |||||||
Letter of credit fees | 33,579 | ||||||||||||
Other expense: | |||||||||||||
Professional services | 76,868 | 88,669 | 49,200 | ||||||||||
Amortization of capitalized servicing rights | 57,885 | 50,907 | 39,806 | ||||||||||
Advertising and promotion | 32,742 | 38,950 | |||||||||||
Provision for impairment of capitalized servicing rights | 32,450 |
16. | International activities |
17. | Derivative financial instruments |
-116-
Weighted- | ||||||||||||||||||||
Average Rate | Estimated Fair | |||||||||||||||||||
Notional | Average | Value-Gain | ||||||||||||||||||
Amount | Maturity | Fixed | Variable | (Loss) | ||||||||||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||||||||||
December 31, 2004 | ||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||
Fixed rate time deposits(a) | $ | 150,000 | 5.9 | 3.43 | % | 2.21 | % | $ | (741 | ) | ||||||||||
Fixed rate long-term borrowings(a) | 575,000 | 5.1 | 7.62 | % | 5.43 | % | (3,103 | ) | ||||||||||||
$ | 725,000 | 5.2 | 6.75 | % | 4.76 | % | $ | (3,844 | ) | |||||||||||
December 31, 2003 | ||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||
Fixed rate time deposits(a) | $ | 110,000 | 6.2 | 3.52 | % | 1.04 | % | $ | (302 | ) | ||||||||||
Fixed rate long-term borrowings(a) | 575,000 | 6.1 | 7.62 | % | 4.58 | % | (545 | ) | ||||||||||||
$ | 685,000 | 6.1 | 6.96 | % | 4.01 | % | $ | (847 | ) | |||||||||||
(a) | Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate. |
-117-
(In thousands) | |||||
Year Ending December 31: | |||||
2005 | $ | 75,000 | |||
2006 | — | ||||
2007 | 10,000 | ||||
2008 | 10,000 | ||||
2009 | — | ||||
Later years | 630,000 | ||||
$ | 725,000 | ||||
-118-
2004 | 2003 | ||||||||
(In thousands) | |||||||||
December 31: | |||||||||
Gross unrealized gains | $ | 102,814 | 148,106 | ||||||
Gross unrealized losses | 93,411 | 137,665 | |||||||
Year ended December 31: | |||||||||
Average gross unrealized gains | $ | 119,167 | 132,425 | ||||||
Average gross unrealized losses | 110,397 | 123,871 |
18. | Variable interest entities and asset securitizations |
Variable interest entities |
-119-
-120-
Securitizations |
-121-
Year Ended December 31 | ||||||||
2004 | 2003 | |||||||
(In thousands) | ||||||||
Principal and interest payments on retained securities | $ | 304,448 | $ | 508,304 | ||||
Servicing fees received | 3,480 | 2,531 |
Weighted- | Weighted- | Annual | ||||||||||||||||
Average | Average | Expected | ||||||||||||||||
Fair | Prepayment | Discount | Credit | |||||||||||||||
Value | Speed | Rate | Defaults | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Retained subordinated interests: | ||||||||||||||||||
As of securitization date | $ | 91,705 | 23.81 | % | 7.68 | % | .09 | % | ||||||||||
As of December 31, 2004 | 77,797 | 9.57 | % | 7.43 | % | .08 | % | |||||||||||
Impact on fair value of 10% adverse change | (60 | ) | (3,055 | ) | (230 | ) | ||||||||||||
Impact on fair value of 20% adverse change | (130 | ) | (5,914 | ) | (463 | ) |
19. | Fair value of financial instruments |
-122-
December 31, 2004 | December 31, 2003 | ||||||||||||||||
Carrying | Calculated | Carrying | Calculated | ||||||||||||||
Amount | Estimate | Amount | Estimate | ||||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 1,334,628 | $ | 1,334,628 | $ | 1,877,494 | $ | 1,877,494 | |||||||||
Money-market assets | 199,364 | 199,364 | 250,315 | 250,315 | |||||||||||||
Investment securities | 8,474,619 | 8,476,844 | 7,259,150 | 7,262,331 | |||||||||||||
Commercial loans and leases | 9,980,252 | 9,959,047 | 9,217,371 | 9,199,975 | |||||||||||||
Commercial real estate loans | 14,040,000 | 14,060,200 | 12,371,064 | 12,515,272 | |||||||||||||
Residential real estate loans | 3,261,589 | 3,273,555 | 3,081,440 | 3,089,178 | |||||||||||||
Consumer loans and leases | 11,116,636 | 11,139,217 | 11,102,560 | 11,176,384 | |||||||||||||
Allowance for credit losses | (626,864 | ) | (626,864 | ) | (614,058 | ) | (614,058 | ) | |||||||||
Accrued interest receivable | 200,232 | 200,232 | 178,809 | 178,809 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Noninterest-bearing deposits | $ | (8,417,365 | ) | $ | (8,417,365 | ) | $ | (8,411,296 | ) | $ | (8,411,296 | ) | |||||
Savings deposits and NOW accounts | (15,550,662 | ) | (15,550,662 | ) | (15,856,948 | ) | (15,856,948 | ) | |||||||||
Time deposits | (7,228,514 | ) | (7,272,979 | ) | (6,637,249 | ) | (6,773,092 | ) | |||||||||
Deposits at foreign office | (4,232,932 | ) | (4,232,932 | ) | (2,209,451 | ) | (2,209,451 | ) | |||||||||
Short-term borrowings | (4,703,664 | ) | (4,703,664 | ) | (4,442,246 | ) | (4,442,246 | ) | |||||||||
Long-term borrowings | (6,348,559 | ) | (6,532,379 | ) | (5,535,425 | ) | (5,732,682 | ) | |||||||||
Accrued interest payable | (88,676 | ) | (88,676 | ) | (93,692 | ) | (93,692 | ) | |||||||||
Trading account liabilities | (93,411 | ) | (93,411 | ) | (137,665 | ) | (137,665 | ) | |||||||||
Other financial instruments: | |||||||||||||||||
Commitments to originate real estate loans for sale | $ | 1,764 | $ | 1,764 | $ | 4,868 | $ | 4,868 | |||||||||
Commitments to sell real estate loans | (2,322 | ) | (2,322 | ) | (8,427 | ) | (8,427 | ) | |||||||||
Other credit-related commitments | (36,721 | ) | (36,721 | ) | (28,180 | ) | (28,180 | ) | |||||||||
Interest rate swap agreements used for interest rate risk management | (3,844 | ) | (3,844 | ) | (847 | ) | (847 | ) |
Cash and due from banks, money-market assets, short-term borrowings, accrued interest receivable, accrued interest payable and trading account liabilities |
Investment securities |
-123-
Loans and leases |
Deposits |
Long-term borrowings |
Trading account assets and liabilities |
Commitments to originate real estate loans for sale and commitments to sell real estate loans |
Interest rate swap agreements used for interest rate risk management |
-124-
Other commitments and contingencies |
20. | Commitments and contingencies |
December 31 | |||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Commitments to extend credit | |||||||||
Home equity lines of credit | $ | 4,283,371 | $ | 3,747,663 | |||||
Commercial real estate loans to be sold | 105,660 | 70,747 | |||||||
Other commercial real estate and construction | 1,809,382 | 730,485 | |||||||
Residential real estate loans to be sold | 422,159 | 458,863 | |||||||
Other residential real estate | 449,564 | 639,852 | |||||||
Commercial and other | 6,645,878 | 6,786,997 | |||||||
Standby letters of credit | 3,162,901 | 3,056,611 | |||||||
Commercial letters of credit | 57,455 | 69,387 | |||||||
Financial guarantees and indemnification contracts | 1,168,517 | 1,061,691 | |||||||
Commitments to sell real estate loans | 931,924 | 895,808 |
-125-
(In thousands) | |||||
Year Ending December 31: | |||||
2005 | $ | 46,887 | |||
2006 | 41,139 | ||||
2007 | 32,235 | ||||
2008 | 26,831 | ||||
2009 | 21,947 | ||||
Later years | 83,333 | ||||
$ | 252,372 | ||||
-126-
21. | Segment information |
-127-
Residential | ||||||||||||||||||||||||||||
Commercial | Commercial | Discretionary | Mortgage | Retail | All | |||||||||||||||||||||||
Banking | Real Estate(c) | Portfolio | Banking | Banking | Other(c) | Total | ||||||||||||||||||||||
(In thousands, except asset data) | ||||||||||||||||||||||||||||
For the year ended December 31, 2004 | ||||||||||||||||||||||||||||
Net interest income(a) | $ | 353,733 | $ | 233,120 | $ | 139,089 | $ | 80,511 | $ | 837,180 | $ | 90,939 | $ | 1,734,572 | ||||||||||||||
Noninterest income | 161,558 | 38,098 | 50,386 | 145,764 | 363,893 | 183,270 | 942,969 | |||||||||||||||||||||
515,291 | 271,218 | 189,475 | 226,275 | 1,201,073 | 274,209 | 2,677,541 | ||||||||||||||||||||||
Provision for credit losses | 6,468 | 3,353 | 2,682 | 1,714 | 67,871 | 12,912 | 95,000 | |||||||||||||||||||||
Amortization of core deposit and other intangible assets | — | — | — | — | — | 75,410 | 75,410 | |||||||||||||||||||||
Depreciation and other amortization | 380 | 5,008 | 7,012 | 47,558 | 26,870 | 33,836 | 120,664 | |||||||||||||||||||||
Other noninterest expense | 139,101 | 53,635 | 12,641 | 131,977 | 708,924 | 273,666 | 1,319,944 | |||||||||||||||||||||
Income (loss) before taxes | 369,342 | 209,222 | 167,140 | 45,026 | 397,408 | (121,615 | ) | 1,066,523 | ||||||||||||||||||||
Income tax expense (benefit) | 151,504 | 74,403 | 49,981 | 16,866 | 162,002 | (110,754 | ) | 344,002 | ||||||||||||||||||||
Net income (loss) | $ | 217,838 | $ | 134,819 | $ | 117,159 | $ | 28,160 | $ | 235,406 | $ | (10,861 | ) | $ | 722,521 | |||||||||||||
Average total assets (in millions) | $ | 10,946 | $ | 7,868 | $ | 10,936 | $ | 1,801 | $ | 14,739 | $ | 5,227 | $ | 51,517 | ||||||||||||||
Capital expenditures (in millions) | $ | — | $ | — | $ | — | $ | 2 | $ | 25 | $ | 5 | $ | 32 | ||||||||||||||
For the year ended December 31, 2003 | ||||||||||||||||||||||||||||
Net interest income(a) | $ | 307,432 | $ | 211,324 | $ | 97,065 | $ | 97,715 | $ | 779,711 | $ | 105,508 | $ | 1,598,755 | ||||||||||||||
Noninterest income | 115,037 | 30,553 | 47,168 | 202,924 | 309,618 | 125,795 | 831,095 | |||||||||||||||||||||
422,469 | 241,877 | 144,233 | 300,639 | 1,089,329 | 231,303 | 2,429,850 | ||||||||||||||||||||||
Provision for credit losses | 18,661 | 974 | 1,731 | 967 | 81,509 | 27,158 | 131,000 | |||||||||||||||||||||
Amortization of core deposit and other intangible assets | — | — | — | — | — | 78,152 | 78,152 | |||||||||||||||||||||
Depreciation and other amortization | 392 | 2,998 | 5,495 | 44,088 | 24,938 | 35,599 | 113,510 | |||||||||||||||||||||
Other noninterest expense(b) | 107,118 | 42,297 | 20,686 | 147,601 | 659,382 | 279,434 | 1,256,518 | |||||||||||||||||||||
Income (loss) before taxes | 296,298 | 195,608 | 116,321 | 107,983 | 323,500 | (189,040 | ) | 850,670 | ||||||||||||||||||||
Income tax expense (benefit) | 121,763 | 73,714 | 29,851 | 41,817 | 131,826 | (122,243 | ) | 276,728 | ||||||||||||||||||||
Net income (loss) | $ | 174,535 | $ | 121,894 | $ | 86,470 | $ | 66,166 | $ | 191,674 | $ | (66,797 | ) | $ | 573,942 | |||||||||||||
Average total assets (in millions) | $ | 9,693 | $ | 7,244 | $ | 8,821 | $ | 1,862 | $ | 13,166 | $ | 4,563 | $ | 45,349 | ||||||||||||||
Capital expenditures (in millions) | $ | — | $ | — | $ | — | $ | 2 | $ | 12 | $ | 18 | $ | 32 |
-128-
Residential | ||||||||||||||||||||||||||||
Commercial | Commercial | Discretionary | Mortgage | Retail | All | |||||||||||||||||||||||
Banking | Real Estate(c) | Portfolio | Banking | Banking | Other(c) | Total | ||||||||||||||||||||||
(In thousands, except asset data) | ||||||||||||||||||||||||||||
For the year ended December 31, 2002 | ||||||||||||||||||||||||||||
Net interest income(a) | $ | 214,018 | $ | 174,200 | $ | 68,205 | $ | 85,869 | $ | 599,261 | $ | 106,032 | $ | 1,247,585 | ||||||||||||||
Noninterest income | 50,506 | 7,262 | 38,293 | 168,047 | 189,564 | 58,259 | 511,931 | |||||||||||||||||||||
264,524 | 181,462 | 106,498 | 253,916 | 788,825 | 164,291 | 1,759,516 | ||||||||||||||||||||||
Provision for credit losses | 47,037 | 495 | 572 | 777 | 66,414 | 6,705 | 122,000 | |||||||||||||||||||||
Amortization of core deposit and other intangible assets | — | — | — | — | — | 51,484 | 51,484 | |||||||||||||||||||||
Depreciation and other amortization | 412 | 164 | 3,230 | 37,937 | 18,536 | 18,024 | 78,303 | |||||||||||||||||||||
Other noninterest expense | 64,065 | 20,930 | 17,872 | 154,211 | 435,119 | 139,627 | 831,824 | |||||||||||||||||||||
Income (loss) before taxes | 153,010 | 159,873 | 84,824 | 60,991 | 268,756 | (51,549 | ) | 675,905 | ||||||||||||||||||||
Income tax expense (benefit) | 63,420 | 67,541 | 20,476 | 23,244 | 109,590 | (65,118 | ) | 219,153 | ||||||||||||||||||||
Net income | $ | 89,590 | $ | 92,332 | $ | 64,348 | $ | 37,747 | $ | 159,166 | $ | 13,569 | $ | 456,752 | ||||||||||||||
Average total assets (in millions) | $ | 6,315 | $ | 6,234 | $ | 7,072 | $ | 1,618 | $ | 9,059 | $ | 1,637 | $ | 31,935 | ||||||||||||||
Capital expenditures (in millions) | $ | — | $ | — | $ | — | $ | 1 | $ | 12 | $ | 4 | $ | 17 |
(a) | Net interest income is the difference between actual 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 pricing 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 $17,330,000 in 2004, $16,313,000 in 2003 and $14,049,000 in 2002 and is eliminated in “All Other” net interest income and income tax expense (benefit). | |
(b) | Including the impact in the “All Other” category of the merger-related expenses described in note 2. | |
(c) | During the second quarter of 2004, a business unit obtained in the April 1, 2003 acquisition of Allfirst that had previously been included in the “All Other” category was moved to the Commercial Real Estate segment for internal profitability reporting purposes. As a result, approximately $64 million of assets were transferred from the “All Other” category to the Commercial Real Estate segment. This strategic business unit contributed net income of $3 million in 2003. Financial information for 2003 has been reclassified to conform with current year presentation. |
-129-
Year Ended December 31 | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | (60,195 | ) | $ | (87,309 | ) | $ | (70,229 | ) | |||
Expenses | (16,950 | ) | (18,307 | ) | (19,356 | ) | ||||||
Income taxes (benefit) | (17,596 | ) | (28,077 | ) | (20,700 | ) | ||||||
Net income (loss) | (25,649 | ) | (40,925 | ) | (30,173 | ) |
22. | Regulatory matters |
-130-
M&T | M&T | ||||||||||||
(Consolidated) | M&T Bank | Bank, N.A. | |||||||||||
(Dollars in thousands) | |||||||||||||
December 31, 2004: | |||||||||||||
Tier 1 capital | |||||||||||||
Amount | $ | 3,340,974 | 3,132,925 | 78,908 | |||||||||
Ratio(a) | 7.31 | % | 6.92 | % | 29.80 | % | |||||||
Minimum required amount(b) | 1,827,356 | 1,810,262 | 10,590 | ||||||||||
Total capital | |||||||||||||
Amount | 4,984,374 | 4,758,812 | 82,105 | ||||||||||
Ratio(a) | 10.91 | % | 10.52 | % | 31.01 | % | |||||||
Minimum required amount(b) | 3,654,712 | 3,620,525 | 21,180 | ||||||||||
Leverage | |||||||||||||
Amount | 3,340,974 | 3,132,925 | 78,908 | ||||||||||
Ratio(c) | 6.73 | % | 6.38 | % | 21.24 | % | |||||||
Minimum required amount(b) | 1,489,266 | 1,472,892 | 11,145 | ||||||||||
December 31, 2003: | |||||||||||||
Tier 1 capital | |||||||||||||
Amount | $ | 3,205,649 | 3,116,834 | 85,209 | |||||||||
Ratio(a) | 7.30 | % | 7.18 | % | 26.60 | % | |||||||
Minimum required amount(b) | 1,755,845 | 1,735,288 | 12,814 | ||||||||||
Total capital | |||||||||||||
Amount | 4,916,825 | 4,779,265 | 88,896 | ||||||||||
Ratio(a) | 11.20 | % | 11.02 | % | 27.75 | % | |||||||
Minimum required amount(b) | 3,511,689 | 3,470,575 | 25,627 | ||||||||||
Leverage | |||||||||||||
Amount | 3,205,649 | 3,116,834 | 85,209 | ||||||||||
Ratio(c) | 6.98 | % | 6.87 | % | 18.17 | % | |||||||
Minimum required amount(b) | 1,378,201 | 1,360,134 | 14,065 |
(a) | The ratio of capital to risk-weighted assets, as defined by regulation. | |
(b) | Minimum amount of capital to be considered adequately capitalized, as defined by regulation. | |
(c) | The ratio of capital to average assets, as defined by regulation. |
23. | Relationship of M&T and AIB |
-131-
-132-
24. | Parent company financial statements |
December 31 | ||||||||||
2004 | 2003 | |||||||||
(In thousands) | ||||||||||
Assets | ||||||||||
Cash | ||||||||||
In subsidiary bank | $ | 4,785 | $ | 2,129 | ||||||
Other | 1 | 1 | ||||||||
Total cash | 4,786 | 2,130 | ||||||||
Due from consolidated subsidiaries | ||||||||||
Banks | ||||||||||
Money-market assets | 139,086 | 59,639 | ||||||||
Note receivable | 200,000 | 200,000 | ||||||||
Current income tax receivable | 2,718 | 2,347 | ||||||||
Other | 743 | 439 | ||||||||
Other | 30 | — | ||||||||
Total due from consolidated subsidiaries | 342,577 | 262,425 | ||||||||
Investments in consolidated subsidiaries | ||||||||||
Banks | 6,287,009 | 6,398,737 | ||||||||
Other | 28,762 | 32,603 | ||||||||
Investments in unconsolidated subsidiaries (note 18) | 30,228 | 30,228 | ||||||||
Other assets | 145,302 | 181,404 | ||||||||
Total assets | $ | 6,838,664 | $ | 6,907,527 | ||||||
Liabilities | ||||||||||
Due to consolidated subsidiaries | ||||||||||
Banks | $ | 39 | $ | 384 | ||||||
Other | 1,533 | 12,349 | ||||||||
Total due to consolidated subsidiaries | 1,572 | 12,733 | ||||||||
Accrued expenses and other liabilities | 52,780 | 52,430 | ||||||||
Long-term borrowings | 1,054,698 | 1,125,154 | ||||||||
Total liabilities | 1,109,050 | 1,190,317 | ||||||||
Stockholders’ equity | 5,729,614 | 5,717,210 | ||||||||
Total liabilities and stockholders’ equity | $ | 6,838,664 | $ | 6,907,527 | ||||||
-133-
Year Ended December 31 | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In thousands, except per share) | |||||||||||||
Income | |||||||||||||
Dividends from consolidated subsidiaries | |||||||||||||
Banks | $ | 864,000 | $ | 65,000 | $ | 340,000 | |||||||
Other | 3,650 | — | — | ||||||||||
Other income | 16,901 | 18,601 | 1,545 | ||||||||||
Total income | 884,551 | 83,601 | 341,545 | ||||||||||
Expense | |||||||||||||
Interest on short-term borrowings | — | 25 | — | ||||||||||
Interest on long-term borrowings | 56,091 | 51,971 | 21,516 | ||||||||||
Other expense | 6,215 | 7,877 | 3,242 | ||||||||||
Total expense | 62,306 | 59,873 | 24,758 | ||||||||||
Income before income taxes and equity in undistributed income of subsidiaries | 822,245 | 23,728 | 316,787 | ||||||||||
Income tax credits | 17,777 | 16,316 | 8,896 | ||||||||||
Income before equity in undistributed income of subsidiaries | 840,022 | 40,044 | 325,683 | ||||||||||
Equity in undistributed income of subsidiaries | |||||||||||||
Net income of subsidiaries | 750,149 | 598,898 | 471,069 | ||||||||||
Less: dividends received | (867,650 | ) | (65,000 | ) | (340,000 | ) | |||||||
Equity in undistributed income of subsidiaries | (117,501 | ) | 533,898 | 131,069 | |||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | |||||||
Net income per common share | |||||||||||||
Basic | $ | 6.14 | $ | 5.08 | $ | 4.94 | |||||||
Diluted | 6.00 | 4.95 | 4.78 |
-134-
Year Ended December 31 | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In thousands) | |||||||||||||
Cash flows from operating activities | |||||||||||||
Net income | $ | 722,521 | $ | 573,942 | $ | 456,752 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||
Equity in undistributed income of subsidiaries | 117,501 | (533,898 | ) | (131,069 | ) | ||||||||
Provision for deferred income taxes | 3,436 | 3,524 | (873 | ) | |||||||||
Net change in accrued income and expense | (15,528 | ) | (12,050 | ) | 6,677 | ||||||||
Net cash provided by operating activities | 827,930 | 31,518 | 331,487 | ||||||||||
Cash flows from investing activities | |||||||||||||
Proceeds from sales of investment securities | 16,755 | 70,065 | — | ||||||||||
Proceeds from maturities of investment securities | 27,418 | 14,434 | — | ||||||||||
Purchases of investment securities | (12,380 | ) | (1,369 | ) | — | ||||||||
Net decrease in loans to affiliates | — | 158,000 | — | ||||||||||
Acquisitions, net of cash acquired | — | 163,046 | — | ||||||||||
Other, net | 2,450 | 3,832 | (17 | ) | |||||||||
Net cash provided (used) by investing activities | 34,243 | 408,008 | (17 | ) | |||||||||
Cash flows from financing activities | |||||||||||||
Net decrease in short-term borrowings | — | (100,000 | ) | — | |||||||||
Payments on long-term borrowings | (63,435 | ) | (300,000 | ) | — | ||||||||
Purchases of treasury stock | (610,261 | ) | — | (240,314 | ) | ||||||||
Dividends paid — common | (187,669 | ) | (135,423 | ) | (96,858 | ) | |||||||
Other, net | 81,295 | 72,047 | 58,765 | ||||||||||
Net cash used by financing activities | (780,070 | ) | (463,376 | ) | (278,407 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 82,103 | (23,850 | ) | 53,063 | |||||||||
Cash and cash equivalents at beginning of year | 61,769 | 85,619 | 32,556 | ||||||||||
Cash and cash equivalents at end of year | $ | 143,872 | $ | 61,769 | $ | 85,619 | |||||||
Supplemental disclosure of cash flow information | |||||||||||||
Interest received during the year | $ | 6,805 | $ | 14,401 | $ | 2,079 | |||||||
Interest paid during the year | 60,294 | 34,846 | 21,266 | ||||||||||
Income taxes received during the year | 42,946 | 32,720 | 25,676 |
-135-
Item 9. | Changes In and Disagreements With Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
Item 10. | Directors and Executive Officers of the Registrant. |
-136-
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Item 13. | Certain Relationships and Related Transactions. |
Item 14. | Principal Accountant Fees and Services. |
Item 15. | Exhibits and Financial Statement Schedules. |
-137-
M&T Bank Corporation |
By: | /s/Robert G. Wilmers |
Robert G. Wilmers | |
Chairman of the Board, President and Chief Executive Officer |
Signature | Title | Date | ||||
Principal Executive Officer: | ||||||
/s/Robert G. Wilmers | Chairman of the Board, President and Chief Executive Officer | February 24, 2005 | ||||
Principal Financial Officer: | ||||||
/s/Michael P. Pinto | Executive Vice President and Chief Financial Officer | February 24, 2005 | ||||
Principal Accounting Officer: | ||||||
/s/Michael R. Spychala | Senior Vice President and Controller | February 24, 2005 |
-138-
A majority of the board of directors: | ||||
/s/Brent D. Baird | February 24, 2005 | |||
/s/Robert J. Bennett | February 24, 2005 | |||
/s/C. Angela Bontempo | February 24, 2005 | |||
/s/Emerson L. Brumback | February 24, 2005 | |||
/s/Michael D. Buckley | February 24, 2005 | |||
/s/Patrick J. Callan | February 24, 2005 | |||
/s/R. Carlos Carballada | February 24, 2005 | |||
| ||||
/s/Donald Devorris | February 24, 2005 | |||
/s/Richard E. Garman | February 24, 2005 | |||
/s/James V. Glynn | February 24, 2005 | |||
/s/Derek C. Hathaway | February 24, 2005 | |||
-139-
/s/Patrick W.E. Hodgson | February 24, 2005 | |||
/s/Gary Kennedy | February 24, 2005 | |||
/s/Richard G. King | February 24, 2005 | |||
/s/Reginald B. Newman, II | February 24, 2005 | |||
/s/Jorge G. Pereira | February 24, 2005 | |||
/s/Michael P. Pinto | February 24, 2005 | |||
/s/Robert E. Sadler, Jr. | February 24, 2005 | |||
/s/Stephen G. Sheetz | February 24, 2005 | |||
/s/Herbert L. Washington | February 24, 2005 | |||
/s/Robert G. Wilmers | February 24, 2005 |
-140-
2 | .1 | Agreement and Plan of Reorganization, dated as of September 26, 2002, by and among M&T Bank Corporation, Allied Irish Banks, p.l.c. and Allfirst Financial Inc. Incorporated by reference to Exhibit No. 2 to the Form 8-K dated October 3, 2002 (File No. 1-9861). | ||
3 | .1 | Restated Certificate of Incorporation of M&T Bank Corporation dated May 29, 1998. Incorporated by reference to Exhibit No. 3.1 to the Form 10-Q for the quarter ended June 30, 1998 (File No. 1-9861). | ||
3 | .2 | Certificate of Amendment of the Certificate of Incorporation of M&T Bank Corporation dated October 2, 2000. Incorporated by reference to Exhibit 3.2 to the Form 10-K for the year ended December 31, 2000 (File No. 1-9861). | ||
3 | .3 | Certificate of Amendment to the Certificate of Incorporation of M&T Bank Corporation dated March 4, 2003, effective as of March 25, 2003. Incorporated by reference to Exhibit 3.3 to the Form 10-Q for the quarter ended March 31, 2003 (File No. 1-9861). | ||
3 | .4 | Certificate of Amendment to the Certificate of Incorporation of M&T Bank Corporation dated March 28, 2003, effective as of April 1, 2003. Incorporated by reference to Exhibit 3.4 to the Form 10-Q for the quarter ended March 31, 2003 (File No. 1-9861). | ||
3 | .5 | Amended and Restated Bylaws of M&T Bank Corporation effective as of October 21, 2003. Incorporated by reference to Exhibit 3.5 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .1 | Instruments defining the rights of security holders, including indentures. Incorporated by reference to Exhibit Nos. 3.1 through 3.5, 10.1 through 10.5, 10.12 through 10.15, and 10.17 through 10.26 hereof. | ||
4 | .2 | Amended and Restated Trust Agreement dated as of January 31, 1997 by and among M&T Bank Corporation, Bankers Trust Company, Bankers Trust (Delaware), and the Administrators named therein. Incorporated by reference to Exhibit No. 4.1 to the Form 8-K dated January 31, 1997 (File No. 1-9861). | ||
4 | .3 | Amendment to Amended and Restated Trust Agreement dated as of January 31, 1997 by and among M&T Bank Corporation, Bankers Trust Company, Bankers Trust (Delaware), and the Administrators named therein. Incorporated by reference to Exhibit 4.3 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .4 | Junior Subordinated Indenture dated as of January 31, 1997 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit No. 4.2 to the Form 8-K dated January 31, 1997 (File No. 1-9861). | ||
4 | .5 | Supplemental Indenture dated December 23, 1999 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit 4.5 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .6 | Guarantee Agreement dated as of January 31, 1997 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit No. 4.3 to the Form 8-K dated January 31, 1997 (File No. 1-9861). | ||
4 | .7 | Amendment to Guarantee Agreement dated as of January 31, 1997 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit 4.7 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .8 | Amended and Restated Trust Agreement dated as of June 6, 1997 by and among M&T Bank Corporation, Bankers Trust Company, Bankers Trust (Delaware), and the Administrators named therein. Incorporated by reference to Exhibit No. 4.1 to the Form 8-K dated June 6, 1997 (File No. 1-9861). | ||
4 | .9 | Amendment to Amended and Restated Trust Agreement dated as of June 6, 1997 by and among M&T Bank Corporation, Bankers Trust Company, Bankers Trust (Delaware), and the Administrators named therein. Incorporated by reference to Exhibit 4.9 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .10 | Junior Subordinated Indenture dated as of June 6, 1997 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit No. 4.2 to the Form 8-K dated June 6, 1997 (File No. 1-9861). |
-141-
4 | .11 | Supplemental Indenture dated December 23, 1999 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit 4.11 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .12 | Guarantee Agreement dated as of June 6, 1997 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit No. 4.3 to the Form 8-K dated June 6, 1997 (File No. 1-9861). | ||
4 | .13 | Amendment to Guarantee Agreement dated as of June 6, 1997 by and between M&T Bank Corporation and Bankers Trust Company. Incorporated by reference to Exhibit 4.13 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .14 | Amended and Restated Declaration of Trust dated as of February 4, 1997 by and among Olympia Financial Corp., The Bank of New York, The Bank of New York (Delaware), and the administrative trustees named therein. Incorporated by reference to Exhibit 4.14 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .15 | Amendment to Amended and Restated Declaration of Trust dated as of February 4, 1997 by and among Olympia Financial Corp., The Bank of New York, The Bank of New York (Delaware), and the administrative trustees named therein. Incorporated by reference to Exhibit 4.15 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .16 | Indenture dated as of February 4, 1997 by and between Olympia Financial Corp. and The Bank of New York. Incorporated by reference to Exhibit 4.16 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .17 | Supplemental Indenture dated as of December 17, 1999 by and between Olympia Financial Corp. and The Bank of New York. Incorporated by reference to Exhibit 4.17 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .18 | Second Supplemental Indenture dated as of February 28, 2003 by and between M&T Bank Corporation (as successor by merger to Olympia Financial Corp.) and The Bank of New York. Incorporated by reference to Exhibit 4.18 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .19 | Common Securities Guarantee Agreement dated as of February 4, 1997 by and between Olympia Financial Corp. and The Bank of New York. Incorporated by reference to Exhibit 4.18 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .20 | Amendment to Common Securities Guarantee Agreement as of December 17, 1999 by and between Olympia Financial Corp. and The Bank of New York. Incorporated by reference to Exhibit 4.19 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .21 | Series A Capital Securities Guarantee Agreement dated as of February 4, 1997 by and between Olympia Financial Corp. and The Bank of New York. Incorporated by reference to Exhibit 4.20 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .22 | Amendment to Series A Capital Securities Guarantee Agreement dated as of December 17, 1999 by and between Olympia Financial Corp. and The Bank of New York. Incorporated by reference to Exhibit 4.21 to the Form 10-K for the year ended December 31, 1999 (File No. 1-9861). | ||
4 | .23 | Senior Indenture dated as of May 1, 1997 by and among Keystone Financial Mid-Atlantic Funding Corp., Olympia Financial Corp. (as successor by merger to Keystone Financial, Inc.), and Bankers Trust Company. Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-3 of Keystone Financial Mid-Atlantic Funding Corp. and Keystone Financial, Inc. dated April 17, 1997 (File No. 333-25393). | ||
4 | .24 | First Supplemental Indenture, dated as of October 6, 2000, by and between Olympia Financial Corp. and Bankers Trust Company. Incorporated by reference to Exhibit 4.24 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .25 | Second Supplemental Indenture, dated as of February 28, 2003, by and between M&T Bank Corporation (as successor by merger to Olympia Financial Corp.) and Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company). Incorporated by reference to Exhibit 4.25 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). |
-142-
4 | .26 | Indenture, dated as of December 30, 1996, by and between First Maryland Bancorp and The Bank of New York. Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .27 | Supplemental Indenture No. 1, dated as of September 15, 1999, by and between Allfirst Financial Inc. (successor by merger to First Maryland Bancorp) and The Bank of New York. Incorporated by reference to Exhibit 4.2 to the Form 8-K of Allfirst Financial Inc. dated September 15, 1999 (File No. 2-50235). | ||
4 | .28 | Supplemental Indenture No. 2, dated as of April 1, 2003, by and between M&T Bank Corporation (successor by merger to Allfirst Financial Inc.) and The Bank of New York. Incorporated by reference to Exhibit 4.28 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .29 | Amended and Restated Declaration of Trust, dated as of December 30, 1996, by and among First Maryland Bancorp, The Bank of New York, The Bank of New York (Delaware) and the Regular Trustees named therein. Incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .30 | Guarantee Agreement, dated as of December 30, 1996, by and between First Maryland Bancorp and The Bank of New York. Incorporated by reference to Exhibit 4.5 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .31 | Registration Rights Agreement, dated as of December 30, 1996, by and among First Maryland Bancorp, First Maryland Capital I and the Initial Purchasers named therein. Incorporated by reference to Exhibit 4.6 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .32 | Indenture, dated as of February 4, 1997, by and between First Maryland Bancorp and The Bank of New York. Incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .33 | Supplemental Indenture No. 1, dated as of September 15, 1999, by and between Allfirst Financial Inc. (successor by merger to First Maryland Bancorp) and The Bank of New York. Incorporated by reference to Exhibit 4.3 to the Form 8-K of Allfirst Financial Inc. dated September 15, 1999 (File No. 2-50235). | ||
4 | .34 | Supplemental Indenture No. 2, dated as of April 1, 2003, by and between M&T Bank Corporation (successor by merger to Allfirst Financial Inc.) and The Bank of New York. Incorporated by reference to Exhibit 4.34 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .35 | Amended and Restated Declaration of Trust, dated as of February 4, 1997, by and among First Maryland Bancorp, The Bank of New York, The Bank of New York (Delaware) and the Regular Trustees named therein. Incorporated by reference to Exhibit 4.3 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .36 | Guarantee Agreement, dated as of February 4, 1997, by and between First Maryland Bancorp and The Bank of New York. Incorporated by reference to Exhibit 4.5 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .37 | Registration Rights Agreement, dated as of February 4, 1997, by and among First Maryland Bancorp, First Maryland Capital II and the Initial Purchasers named therein. Incorporated by reference to Exhibit 4.7 to the Registration Statement on Form S-4 of First Maryland Bancorp, First Maryland Capital I and First Maryland Capital II dated March 6, 1997 (File No. 333-22871). | ||
4 | .38 | Indenture, dated as of July 13, 1999, by and between First Maryland Bancorp and The Bank of New York. Incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). |
-143-
4 | .39 | Supplemental Indenture No. 1, dated as of September 15, 1999, by and between Allfirst Financial Inc. (successor by merger to First Maryland Bancorp) and The Bank of New York. Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). | ||
4 | .40 | Supplemental Indenture No. 2, dated as of April 1, 2003, by and between M&T Bank Corporation (successor by merger to Allfirst Financial Inc.) and The Bank of New York. Incorporated by reference to Exhibit 4.40 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .41 | Amended and Restated Declaration of Trust of Allfirst Preferred Capital Trust, dated as of July 13, 1999, by and among First Maryland Bancorp, The Bank of New York, The Bank of New York (Delaware) and the Administrators named therein. Incorporated by reference to Exhibit 4.3 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). | ||
4 | .42 | Amended and Restated Declaration of Trust of Allfirst Preferred Asset Trust, dated as of July 13, 1999, by and among First Maryland Bancorp, The Bank of New York, The Bank of New York (Delaware) and the Administrators named therein. Incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). | ||
4 | .43 | Series B Capital Trust Guarantee Agreement, dated as of December 29, 1999, by and between Allfirst Financial Inc. (successor by merger to First Maryland Bancorp) and The Bank of New York. Incorporated by reference to Exhibit 4.5 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). | ||
4 | .44 | Series B Asset Trust Preferred Guarantee Agreement, dated as of December 29, 1999, by and between Allfirst Financial Inc. (successor by merger to First Maryland Bancorp) and The Bank of New York. Incorporated by reference to Exhibit 4.6 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). | ||
4 | .45 | Registration Rights Agreement, dated as of July 9, 1999, by and among First Maryland Bancorp, Allfirst Preferred Capital Trust, Allfirst Preferred Asset Trust and the initial purchaser named therein. Incorporated by reference to Exhibit 4.7 to the Registration Statement on Form S-4 of Allfirst Financial Inc., Allfirst Preferred Capital Trust and Allfirst Preferred Asset Trust dated October 5, 1999 (File No. 333-88484). | ||
4 | .46 | Indenture, dated as of May 15, 1992, by and between First Maryland Bancorp and Bankers Trust Company. Incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-1 of First Maryland Bancorp (File No. 33-46277). | ||
4 | .47 | Supplemental Indenture No. 1, dated as of September 15, 1999, by and between Allfirst Financial Inc. (successor by merger to First Maryland Bancorp) and Bankers Trust Company. Incorporated by reference to Exhibit 4.1 to the Form 8-K of Allfirst Financial Inc. dated September 15, 1999 (File No. 2-50235). | ||
4 | .48 | Supplemental Indenture No. 2, dated as of April 1, 2003, by and between M&T Bank Corporation (successor by merger to Allfirst Financial Inc.) and Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company). Incorporated by reference to Exhibit 4.48 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
4 | .49 | Registration Rights Agreement, dated April 1, 2003, between M&T Bank Corporation and Allied Irish Banks, p.l.c. Incorporated by reference to Exhibit 4.23 to the Form 10-Q for the quarter ended March 31, 2003 (File No. 1-9861). | ||
10 | .1 | Credit Agreement, dated as of December 15, 2000, between M&T Bank Corporation and Citibank, N.A. Incorporated by reference to Exhibit 10.1 to the Form 10-K for the year ended December 31, 2000 (File No. 1-9861). | ||
10 | .2 | Waiver, dated as of January 15, 2003, to Credit Agreement dated as of December 15, 2000, between M&T Bank Corporation and Citibank, N.A. Incorporated by reference to Exhibit 10.2 to the Form 10-K for the year ended December 31, 2002 (File No. 1-9861). |
-144-
10 | .3 | Amendment No. 1, dated December 9, 2003, to the Credit Agreement, dated as of December 15, 2000, between M&T Bank Corporation and Citibank, N.A. Incorporated by reference to Exhibit 10.3 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
10 | .4 | M&T Bank Corporation 1983 Stock Option Plan as last amended on April 20, 1999. Incorporated by reference to Exhibit 10.3 to the Form 10-Q for the quarter ended March 31, 1999 (File No. 1-9861).* | ||
10 | .5 | M&T Bank Corporation 2001 Stock Option Plan. Incorporated by reference to Appendix A to the Proxy Statement of M&T Bank Corporation dated March 6, 2001 (File No. 1-9861).* | ||
10 | .6 | M&T Bank Corporation Annual Executive Incentive Plan. Incorporated by reference to Exhibit No. 10.3 to the Form 10-Q for the quarter ended June 30, 1998 (File No. 1-9861).* | ||
10 | .7 | Supplemental Deferred Compensation Agreement between Manufacturers and Traders Trust Company and Robert E. Sadler, Jr. dated as of March 7, 1985. Incorporated by reference to Exhibit No. (10)(d)(A) to the Form 10-K for the year ended December 31, 1984 (File No. 0-4561).* | ||
10 | .8 | Supplemental Deferred Compensation Agreement between Manufacturers and Traders Trust Company and Brian E. Hickey dated as of July 21, 1994. Incorporated by reference to Exhibit No. 10.8 to the Form 10-K for the year ended December 31, 1995 (File No. 1-9861).* | ||
10 | .9 | Supplemental Deferred Compensation Agreement, dated July 17, 1989, between The East New York Savings Bank and Atwood Collins, III. Incorporated by reference to Exhibit No. 10.11 to the Form 10-K for the year ended December 31, 1991 (File No. 1-9861).* | ||
10 | .10 | M&T Bank Corporation Supplemental Pension Plan, as amended and restated. Incorporated by reference to Exhibit No. 10.7 to the Form 10-Q for the quarter ended June 30, 1998 (File No. 1-9861).* | ||
10 | .11 | M&T Bank Corporation Supplemental Retirement Savings Plan. Incorporated by reference to Exhibit No. 10.8 to the Form 10-Q for the quarter ended June 30, 1998 (File No. 1-9861).* | ||
10 | .12 | M&T Bank Corporation Deferred Bonus Plan, as amended and restated. Filed herewith.* | ||
10 | .13 | M&T Bank Corporation Directors’ Stock Plan, as amended and restated. Incorporated by reference to Exhibit No. 10.11 to the Form 10-K for the year ended December 31, 2002 (File No. 1-9861).* | ||
10 | .14 | Restated 1987 Stock Option and Appreciation Rights Plan of ONBANCorp, Inc. Incorporated by reference to Exhibit 10.11 to the Form 10-Q for the quarter ended June 30, 1998 (File No. 1-9861).* | ||
10 | .15 | 1992 ONBANCorp Directors’ Stock Option Plan. Incorporated by reference to Exhibit 10.12 to the Form 10-Q for the quarter ended June 30, 1998 (File No. 1-9861).* | ||
10 | .16 | Consulting agreement, dated July 9, 2000, between M&T Bank Corporation and T. Jefferson Cunningham III. Incorporated by reference to Exhibit 10.15 to the Form 10-K for the year ended December 31, 2000 (File No. 1-9861).* | ||
10 | .17 | Keystone Financial, Inc. 1997 Stock Incentive Plan, as amended November 19, 1998. Incorporated by reference to Exhibit 10.16 to the Form 10-K of Keystone Financial, Inc. for the year ended December 31, 1998 (File No. 000-11460).* | ||
10 | .18 | Keystone Financial, Inc. 1992 Stock Incentive Plan. Incorporated by reference to Exhibit 10.10 to the Form 10-K of Keystone Financial, Inc. for the year ended December 31, 1997 (File No. 000-11460).* | ||
10 | .19 | Keystone Financial, Inc. 1988 Stock Incentive Plan. Incorporated by reference to Exhibit 10.2 to the Form 10-K of Keystone Financial, Inc. for the year ended December 31, 1998 (File No. 000-11460).* | ||
10 | .20 | Keystone Financial, Inc. 1995 Non-Employee Directors’ Stock Option Plan. Incorporated by reference to Exhibit B to the Proxy Statement of Keystone Financial, Inc. dated April 7, 1995 (File No. 000-11460).* | ||
10 | .21 | Keystone Financial, Inc. 1990 Non-Employee Directors’ Stock Option Plan, as amended. Incorporated by reference to Exhibit 10.9 to the Form 10-K of Keystone Financial, Inc. for the year ended December 31, 1998 (File No. 000-11460).* |
-145-
10 | .22 | Keystone Financial, Inc. 1992 Director Fee Plan. Incorporated by reference to Exhibit 10.11 to the Form 10-K of Keystone Financial, Inc. for the year ended December 31, 1999 (File No. 000-11460).* | ||
10 | .23 | Financial Trust Corp Non-Employee Director Stock Option Plan of 1994. Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-8 of Financial Trust Corp, dated March 26, 1996 (File No. 333-01989).* | ||
10 | .24 | Progressive Bank, Inc. 1993 Non-Qualified Stock Option Plan for Directors. Incorporated by reference to Exhibit 10.9 to the Progressive Bank, Inc. Form 10-K for the year ended December 31, 1993 (File No. 0-15025).* | ||
10 | .25 | Premier National Bancorp, Inc. 1995 Incentive Stock Plan (as amended and restated effective May 13, 1999). Incorporated by reference to Exhibit 10.4 to the Premier National Bancorp, Inc. Form 10-K for the year ended December 31, 1999 (File No. 1-13213).* | ||
10 | .26 | M&T Bank Corporation Employee Stock Purchase Plan. Incorporated by reference to Exhibit 10.28 to the Form 10-Q for the quarter ended September 30, 2002 (File No. 1-9861).* | ||
11 | .1 | Statement re: Computation of Earnings Per Common Share. Incorporated by reference to note 13 of Notes to Financial Statements filed herewith in Part II, Item 8, “Financial Statements and Supplementary Data.” | ||
14 | .1 | M&T Bank Corporation Code of Ethics for CEO and Senior Financial Officers. Incorporated by reference to Exhibit 14.1 to the Form 10-K for the year ended December 31, 2003 (File No. 1-9861). | ||
21 | .1 | Subsidiaries of the Registrant. Incorporated by reference to the caption “Subsidiaries” contained in Part I, Item 1 hereof. | ||
23 | .1 | Consent of PricewaterhouseCoopers LLP re: Registration Statement Nos. 333-57330, 333-63660, 33-12207, 33-58500, 33-63917, 333-43171, 333-43175, 333-63985, 333-97031, 33-32044, 333-16077, 333-84384 and 333-122147. Filed herewith. | ||
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. |
* | Management contract or compensatory plan or arrangement. |
-146-