M&T Bank Corp. (MTB, Financial) filed Quarterly Report for the period ended 2010-06-30.
M&t Bank Corp. has a market cap of $10.46 billion; its shares were traded at around $87.99 with a P/E ratio of 18.3 and P/S ratio of 2.8. The dividend yield of M&t Bank Corp. stocks is 3.2%. M&t Bank Corp. had an annual average earning growth of 1.3% over the past 10 years.MTB is in the portfolios of Warren Buffett of Berkshire Hathaway, Bill Gates of Bill & Melinda Gates Foundation Trust, Murray Stahl of Horizon Asset Management, Paul Tudor Jones of The Tudor Group, Pioneer Investments, Bruce Kovner of Caxton Associates, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC.
As a result of business combinations and other acquisitions, the Company had intangible assets consisting of goodwill and core deposit and other intangible assets totaling $3.7 billion at each of June 30, 2010, June 30, 2009 and December 31, 2009. Included in such intangible assets was goodwill of $3.5 billion at each of those respective dates. Amortization of core deposit and other intangible assets, after tax effect, was $9 million during each of the second quarters of 2010 and 2009 ($.07 per diluted common share and $.08 per diluted common share, respectively) and $10 million ($.08 per diluted common share) in the first quarter of 2010. For each of the six-month periods ended June 30, 2010 and 2009, amortization of core deposit and other intangible assets, after tax effect, totaled $19 million ($.16 per diluted common share and $.17 per diluted common share, respectively).
Net operating income was $198 million in the second quarter of 2010, compared with $101 million in the similar 2009 quarter. Diluted net operating earnings per common share for the recent quarter were $1.53, compared with $.79 in the second quarter of 2009. Net operating income and diluted net operating earnings per common share were $161 million and $1.23, respectively, in the initial quarter of 2010. For the first half of 2010, net operating income and diluted net operating earnings per common share were $359 million and $2.77, respectively, compared with $176 million and $1.39, respectively, in the corresponding 2009 period.
Average loans and leases rose $724 million, or 1%, to $51.3 billion in the second quarter of 2010 from $50.6 billion in the year-earlier quarter. Included in average loans and leases in the recent quarter were loans obtained in the acquisition transactions related to Provident and to Bradford Bank (Bradford). M&T Bank assumed all of the deposits and acquired certain assets of Bradford in an agreement with the FDIC which was effective on August 28, 2009. Loans associated with Provident totaled $4.0 billion on the May 23, 2009 acquisition date and loans associated with Bradford totaled $302 million on the August 28, 2009 closing date of that transaction. In total, the acquired loans consisted of approximately $700 million of commercial loans, $1.8 billion of commercial real estate loans, $400 million of residential real estate loans and $1.4 billion of consumer loans. Including the impact of the acquired loan balances, commercial loans and leases averaged $13.1 billion in the second
quarter of 2010, down $971 million or 7% from $14.1 billion in the year-earlier quarter. That decline was the result of generally lower demand for commercial loans. Average commercial real estate loans rose $1.0 billion, or 5%, to $20.8 billion in the recent quarter from $19.7 billion in 2009s second quarter. That increase was predominantly due to the impact of loans obtained in the acquisition of Provident. Average outstanding residential real estate loans increased $391 million, or 7%, to $5.7 billion in the second quarter of 2010, as compared with the $5.3 billion averaged in the year-earlier quarter. Included in that portfolio were loans held for sale, which averaged $363 million in the recent quarter, compared with $720 million in the second quarter of 2009. Also reflected in average residential real estate loans in the second quarter of 2010 were $359 million of loans related to the January 1, 2010 implementation of the new accounting requirements as previously discussed. Excluding such loans and loans held for sale, average residential real estate loans increased $388 million from the second quarter of 2009 to the second quarter of 2010, due in part to the loans obtained in the 2009 acquisition transactions. Average consumer loans totaled $11.8 billion in the recent quarter, up $264 million, or 2%, from $11.5 billion in the year-earlier period. That growth was due to loans obtained from Provident and Bradford (largely home equity loans and lines of credit) and higher outstanding balances of home equity lines of credit, partially offset by a decline in average outstanding automobile loans.
Domestic time deposits of $100,000 or more, deposits originated through the Companys offshore branch office, and brokered deposits provide additional sources of funding for the Company. Domestic time deposits over $100,000, excluding brokered certificates of deposit, averaged $1.7 billion in the second quarter of 2010, compared with $2.7 billion in the year-earlier quarter and $1.8 billion in the initial quarter of 2010. Offshore branch deposits, primarily comprised of accounts with balances of $100,000 or more, averaged $972 million, $1.5 billion and $1.2 billion for the three-month periods ended June 30, 2010, June 30, 2009 and March 31, 2010, respectively. Average brokered time deposits totaled $709 million in the recently completed quarter, compared with $697 million in the year-earlier quarter and $785 million in the first quarter of 2010. The Company also had brokered NOW and brokered money-market deposit accounts which in the aggregate averaged $1.2 billion during the second quarter of 2010, compared with $842 million and $678 million during the corresponding quarter of 2009 and the first quarter of 2010, respectively. The higher level of such deposits in the recent quarter was the result of demand for such deposits, largely resulting from continued uncertain economic markets and the desire of brokerage firms to earn reasonable yields while ensuring that customer deposits were fully insured. Offshore branch deposits and brokered deposits have been used by the Company as alternatives to short-term borrowings. Additional amounts of offshore branch deposits or brokered deposits may be added in the future depending on market conditions, including demand by customers and other
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M&t Bank Corp. has a market cap of $10.46 billion; its shares were traded at around $87.99 with a P/E ratio of 18.3 and P/S ratio of 2.8. The dividend yield of M&t Bank Corp. stocks is 3.2%. M&t Bank Corp. had an annual average earning growth of 1.3% over the past 10 years.MTB is in the portfolios of Warren Buffett of Berkshire Hathaway, Bill Gates of Bill & Melinda Gates Foundation Trust, Murray Stahl of Horizon Asset Management, Paul Tudor Jones of The Tudor Group, Pioneer Investments, Bruce Kovner of Caxton Associates, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net income for M&T Bank Corporation (M&T) in the second quarter of 2010 was $189 million or $1.46 of diluted earnings per common share, compared with $51 million or $.36 of diluted earnings per common share in the corresponding quarter of 2009. During the first quarter of 2010, net income totaled $151 million or $1.15 of diluted earnings per common share. Basic earnings per common share were $1.47 in the recent quarter, compared with $.36 in the year-earlier quarter and $1.16 in the initial quarter of 2010. The after-tax impact of acquisition and integration-related expenses (included herein as merger-related expenses) associated with M&Ts May 23, 2009 acquisition of Provident Bankshares Corporation (Provident) was $40 million ($66 million pre-tax) or $.35 of basic and diluted earnings per common share in the second quarter of 2009. There were no merger-related expenses in the first or second quarter of 2010. For the first six months of 2010, net income totaled $340 million or $2.61 of diluted earnings per common share, compared with $115 million or $.85 of diluted earnings per common share in the similar 2009 period. Basic earnings per common share for the six-month periods ended June 30, 2010 and 2009 were $2.63 and $.85, respectively. The after-tax impact of merger-related expenses associated with Provident was $42 million ($69 million pre-tax) or $.37 of basic and diluted earnings per common share during the six-month period ended June 30, 2009.As a result of business combinations and other acquisitions, the Company had intangible assets consisting of goodwill and core deposit and other intangible assets totaling $3.7 billion at each of June 30, 2010, June 30, 2009 and December 31, 2009. Included in such intangible assets was goodwill of $3.5 billion at each of those respective dates. Amortization of core deposit and other intangible assets, after tax effect, was $9 million during each of the second quarters of 2010 and 2009 ($.07 per diluted common share and $.08 per diluted common share, respectively) and $10 million ($.08 per diluted common share) in the first quarter of 2010. For each of the six-month periods ended June 30, 2010 and 2009, amortization of core deposit and other intangible assets, after tax effect, totaled $19 million ($.16 per diluted common share and $.17 per diluted common share, respectively).
Net operating income was $198 million in the second quarter of 2010, compared with $101 million in the similar 2009 quarter. Diluted net operating earnings per common share for the recent quarter were $1.53, compared with $.79 in the second quarter of 2009. Net operating income and diluted net operating earnings per common share were $161 million and $1.23, respectively, in the initial quarter of 2010. For the first half of 2010, net operating income and diluted net operating earnings per common share were $359 million and $2.77, respectively, compared with $176 million and $1.39, respectively, in the corresponding 2009 period.
Average loans and leases rose $724 million, or 1%, to $51.3 billion in the second quarter of 2010 from $50.6 billion in the year-earlier quarter. Included in average loans and leases in the recent quarter were loans obtained in the acquisition transactions related to Provident and to Bradford Bank (Bradford). M&T Bank assumed all of the deposits and acquired certain assets of Bradford in an agreement with the FDIC which was effective on August 28, 2009. Loans associated with Provident totaled $4.0 billion on the May 23, 2009 acquisition date and loans associated with Bradford totaled $302 million on the August 28, 2009 closing date of that transaction. In total, the acquired loans consisted of approximately $700 million of commercial loans, $1.8 billion of commercial real estate loans, $400 million of residential real estate loans and $1.4 billion of consumer loans. Including the impact of the acquired loan balances, commercial loans and leases averaged $13.1 billion in the second
quarter of 2010, down $971 million or 7% from $14.1 billion in the year-earlier quarter. That decline was the result of generally lower demand for commercial loans. Average commercial real estate loans rose $1.0 billion, or 5%, to $20.8 billion in the recent quarter from $19.7 billion in 2009s second quarter. That increase was predominantly due to the impact of loans obtained in the acquisition of Provident. Average outstanding residential real estate loans increased $391 million, or 7%, to $5.7 billion in the second quarter of 2010, as compared with the $5.3 billion averaged in the year-earlier quarter. Included in that portfolio were loans held for sale, which averaged $363 million in the recent quarter, compared with $720 million in the second quarter of 2009. Also reflected in average residential real estate loans in the second quarter of 2010 were $359 million of loans related to the January 1, 2010 implementation of the new accounting requirements as previously discussed. Excluding such loans and loans held for sale, average residential real estate loans increased $388 million from the second quarter of 2009 to the second quarter of 2010, due in part to the loans obtained in the 2009 acquisition transactions. Average consumer loans totaled $11.8 billion in the recent quarter, up $264 million, or 2%, from $11.5 billion in the year-earlier period. That growth was due to loans obtained from Provident and Bradford (largely home equity loans and lines of credit) and higher outstanding balances of home equity lines of credit, partially offset by a decline in average outstanding automobile loans.
Domestic time deposits of $100,000 or more, deposits originated through the Companys offshore branch office, and brokered deposits provide additional sources of funding for the Company. Domestic time deposits over $100,000, excluding brokered certificates of deposit, averaged $1.7 billion in the second quarter of 2010, compared with $2.7 billion in the year-earlier quarter and $1.8 billion in the initial quarter of 2010. Offshore branch deposits, primarily comprised of accounts with balances of $100,000 or more, averaged $972 million, $1.5 billion and $1.2 billion for the three-month periods ended June 30, 2010, June 30, 2009 and March 31, 2010, respectively. Average brokered time deposits totaled $709 million in the recently completed quarter, compared with $697 million in the year-earlier quarter and $785 million in the first quarter of 2010. The Company also had brokered NOW and brokered money-market deposit accounts which in the aggregate averaged $1.2 billion during the second quarter of 2010, compared with $842 million and $678 million during the corresponding quarter of 2009 and the first quarter of 2010, respectively. The higher level of such deposits in the recent quarter was the result of demand for such deposits, largely resulting from continued uncertain economic markets and the desire of brokerage firms to earn reasonable yields while ensuring that customer deposits were fully insured. Offshore branch deposits and brokered deposits have been used by the Company as alternatives to short-term borrowings. Additional amounts of offshore branch deposits or brokered deposits may be added in the future depending on market conditions, including demand by customers and other
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