8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 17, 2019

M&T BANK CORPORATION

(Exact name of registrant as specified in its charter)

New York

(State or other jurisdiction of incorporation)

1-9861	16-0968385
(Commission File Number)	(I.R.S. Employer Identification No.)
One M&T Plaza, Buffalo, New York	14203
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (716) 635-4000

(NOT APPLICABLE)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Common Stock, $.50 par value	MTB	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.Results of Operations and Financial Condition.

On October 17, 2019, M&T Bank Corporation announced its results of operations for the quarter ended September 30, 2019. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99.1 hereto.

The information in this Form 8-K, including Exhibit 99.1 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of  M&T Bank Corporation under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Exhibit Description
99.1	News Release dated October 17, 2019.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	M&T BANK CORPORATION
Date:  October 17, 2019	By:	/s/ Darren J. King
		Darren J. King
		Executive Vice President and Chief Financial Officer

3

EX-99.1

Exhibit 99.1

INVESTOR CONTACT:	Donald J. MacLeod		FOR IMMEDIATE RELEASE:
	(716) 842-5138		October 17, 2019
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES THIRD QUARTER RESULTS

BUFFALO, NEW YORK -- M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2019.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) were $3.47 in the third quarter of 2019, compared with $3.53 in the year-earlier quarter. GAAP-basis net income in the recent quarter was $480 million, compared with $526 million in the third quarter of 2018. GAAP-basis diluted earnings per common share and net income for the second quarter of 2019 were $3.34 and $473 million, respectively. GAAP-basis net income for the third quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.58% and 12.73%, respectively, compared with 1.80% and 14.08%, respectively, in the corresponding 2018 quarter and 1.60% and 12.68%, respectively, in the second quarter of 2019. For the nine-month period ended September 30, 2019, diluted earnings per common share were $10.16, up 13% from $9.00 in the similar 2018 period. GAAP-basis net income for the first nine months of 2019 totaled $1.44 billion, 5% higher than $1.37 million in the year-earlier period. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income in the nine-month period ended September 30, 2019 was 1.62% and 12.85%, respectively, improved from 1.57% and 12.16%, respectively, in the corresponding 2018 period.

Commenting on M&T’s third quarter results, Darren J. King, Executive Vice President and Chief Financial Officer, noted, “Overall, M&T’s results were in line with our expectations given the current interest rate and economic environment. During the recent quarter we realized increased total revenues, highlighted by 28% growth in our mortgage banking businesses. Higher operating expenses reflecting investments in mortgage banking and technology accompanied the revenue growth.”

2-2-2-2-2

M&T BANK CORPORATION

Earnings Highlights
										Change 3Q19 vs.
($ in millions, except per share data)	3Q19			3Q18			2Q19			3Q18			2Q19
Net income	$	480		$	526		$	473			-9	%		1	%
Net income available to common shareholders  ̶  diluted	$	461		$	505		$	453			-9	%		2	%
Diluted earnings per common share	$	3.47		$	3.53		$	3.34			-2	%		4	%
Annualized return on average assets		1.58	%		1.80	%		1.60	%
Annualized return on average common equity		12.73	%		14.08	%		12.68	%

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such items are considered by management to be “nonoperating” in nature.  The amounts of such “nonoperating” expenses are presented in the tables that accompany this release.  Although “net operating income” as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.

Diluted net operating earnings per common share were $3.50 in the third quarter of 2019, compared with $3.56 in the year-earlier quarter and $3.37 in the second quarter of 2019.  Net operating income in the recent quarter was $484 million, compared with $531 million in 2018’s third quarter and $477 million in the second quarter of 2019. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.66% and 18.85%, respectively, compared with 1.89% and 21.00%, respectively, in the similar 2018 quarter and 1.68% and 18.83%, respectively, in 2019’s second quarter.

Diluted net operating earnings per common share in the first nine months of 2019 rose 13% to $10.24 from $9.10 in the corresponding period of 2018. Net operating income during the nine-month period ended September 30, 2019 was $1.45 billion, up 4% from $1.39 billion in the year-earlier period. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.70% and 19.07%, respectively, in the first nine months of 2019, compared with 1.65% and 18.09%, respectively, in the similar period of 2018.

Taxable-equivalent Net Interest Income.  Net interest income expressed on a taxable-equivalent basis totaled $1.04 billion in the third quarter of 2019, little changed from the year-earlier quarter. The impact of higher average earning assets, which rose to $108.6 billion in the recent quarter from $105.8 billion in the year-earlier period, was offset by a 10 basis point narrowing of the net interest margin, to 3.78% in 2019’s third quarter from 3.88% in the third quarter of 2018. Taxable-equivalent net interest income in the recent quarter declined $12 million from $1.05 billion in the second quarter of 2019 due to a 13 basis point narrowing of the net interest margin that was largely offset by higher average earning assets.

3-3-3-3-3

M&T BANK CORPORATION

Taxable-equivalent Net Interest Income
										Change 3Q19 vs.
($ in millions)	3Q19			3Q18			2Q19			3Q18			2Q19
Average earning assets	$	108,643		$	105,835		$	107,511			3	%		1	%
Net interest income  ̶  taxable-equivalent	$	1,035		$	1,035		$	1,047			—			-1	%
Net interest margin		3.78	%		3.88	%		3.91	%

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $45 million in the third quarter of 2019, compared with $16 million in the year-earlier quarter and $55 million in the second quarter of 2019. Net loan charge-offs were $36 million during the recent quarter, compared with $16 million in the third quarter of 2018 and $44 million in 2019’s second quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .16% and .07% in the third quarters of 2019 and 2018, respectively, and .20% in the second quarter of 2019.

Loans classified as nonaccrual totaled $1.01 billion or 1.12% of total loans outstanding at September 30, 2019, compared with $871 million or 1.00% a year earlier and $865 million or .96% at June 30, 2019. The higher balance at September 30, 2019 reflects the addition of a commercial loan for $119 million to a wholesale distributor. Assets taken in foreclosure of defaulted loans were $80 million at September 30, 2019, compared with $87 million and $73 million at September 30, 2018 and June 30, 2019, respectively.

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses.  As a result of those analyses, the allowance for credit losses increased to $1.04 billion or 1.16% of loans outstanding at September 30, 2019, compared with $1.02 billion or 1.18% at September 30, 2018 and $1.03 billion or 1.15% at June 30, 2019.

Asset Quality Metrics
										Change 3Q19 vs.
($ in millions)	3Q19			3Q18			2Q19			3Q18			2Q19
At end of quarter
Nonaccrual loans	$	1,005		$	871		$	865			15	%		16	%
Real estate and other foreclosed assets	$	80		$	87		$	73			-9	%		9	%
Total nonperforming assets	$	1,085		$	958		$	938			13	%		16	%
Accruing loans past due 90 days or more (1)	$	461		$	254		$	349			81	%		32	%
Nonaccrual loans as % of loans outstanding		1.12	%		1.00	%		.96	%
Allowance for credit losses	$	1,038		$	1,019		$	1,030			2	%		1	%
Allowance for credit losses as % of loans outstanding		1.16	%		1.18	%		1.15	%
For the period
Provision for credit losses	$	45		$	16		$	55			181	%		-18	%
Net charge-offs	$	36		$	16		$	44			131	%		-18	%
Net charge-offs as % of average loans (annualized)		.16	%		.07	%		.20	%

(1) Excludes loans acquired at a discount.  Predominantly residential real estate loans.

4-4-4-4-4

M&T BANK CORPORATION

Noninterest Income and Expense.  Noninterest income totaled $528 million in the third quarter of 2019, up 15% from $459 million in the year-earlier quarter and 3% higher than $512 million in the second quarter of 2019. The recent quarter’s improvement as compared with the earlier quarterswas due to significantly higher residential and commercial mortgage banking revenues.

Noninterest Income
								Change 3Q19 vs.
($ in millions)	3Q19		3Q18			2Q19		3Q18			2Q19
Mortgage banking revenues	$	137	$	88		$	107		55	%		28	%
Service charges on deposit accounts		111		109			108		2	%		3	%
Trust income		144		133			145		8	%		—
Brokerage services income		12		12			12		-2	%		-3	%
Trading account and foreign exchange gains		16		6			18		165	%		-13	%
Gain (loss) on bank investment securities		4		(3	)		9		—			-58	%
Other revenues from operations		104		114			113		-9	%		-8	%
Total	$	528	$	459		$	512		15	%		3	%

Noninterest expense aggregated $878 million in the recent quarter, $776 million in 2018’s third quarter and $873 million in the second quarter of 2019.  Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $873 million in the recent quarter, $770 million in the third quarter of 2018 and $868 million in the second quarter of 2019. Significant factors contributing to the higher level of noninterest expenses in the recent quarter were increased costs for salaries and employee benefits, professional services, and additions to the valuation allowance for capitalized mortgage servicing rights. Such additions were $14 million in the recent quarter and $9 million in the second quarter of 2019 and reflect the impact of lower interest rates on the valuation of servicing rights. M&T recognized a $48 million charge in the second quarter of 2019 associated with the sale of an equity investment in an asset manager.

Noninterest Expense
							Change 3Q19 vs.
($ in millions)	3Q19		3Q18		2Q19		3Q18			2Q19
Salaries and employee benefits	$	477	$	431	$	456		11	%		5	%
Equipment and net occupancy		83		77		79		7	%		4	%
Outside data processing and software		60		51		55		19	%		9	%
FDIC assessments		10		19		10		-47	%		1	%
Advertising and marketing		22		22		24		1	%		-8	%
Printing, postage and supplies		10		9		10		15	%		-1	%
Amortization of core deposit and other intangible assets		5		6		5		-17	%		—
Other costs of operations		211		161		234		31	%		-10	%
Total	$	878	$	776	$	873		13	%		1	%

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the

5-5-5-5-5

M&T BANK CORPORATION

relationship of operating expenses to revenues.  M&T's efficiency ratio was 55.9% in the third quarter of 2019, 51.4% in the year-earlier quarter and 56.0% in the second quarter of 2019.

Balance Sheet.  M&T had total assets of $125.5 billion at September 30, 2019, compared with $116.8 billion and $121.6 billion at September 30, 2018 and June 30, 2019, respectively. Loans and leases, net of unearned discount, were $89.8 billion at the recent quarter-end, $86.7 billion at September 30, 2018 and $89.9 billion at June 30, 2019. Total deposits were $95.1 billion at September 30, 2019, up from $89.1 billion a year earlier and $91.7 billion at June 30, 2019. The higher level of deposits at the recent quarter-end as compared with the prior dates reflects increased deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $15.8 billion, or 12.6% of total assets at September 30, 2019, compared with $15.4 billion, or 13.21% at September 30, 2018 and $15.7 billion, or 12.91% at June 30, 2019. Common shareholders' equity was $14.5 billion, or $109.84 per share, at September 30, 2019, compared with $14.2 billion, or $100.38 per share, a year-earlier and $14.5 billion, or $107.73 per share, at June 30, 2019.  Tangible equity per common share was $74.93 at September 30, 2019, compared with $67.64 at September 30, 2018 and $73.29 at June 30, 2019. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances.  M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 9.81% at September 30, 2019.

In accordance with its capital plan, M&T repurchased 1,933,000 shares of its common stock during the recent quarter at an average cost per share of $155.18, for a total cost of $300 million. In the aggregate, during the first nine months of 2019, M&T repurchased 6,533,000 shares of common stock at a total cost of $1.07 billion.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time.  Those wishing to participate in the call may dial

(877) 780-2276.  International participants, using any applicable international calling codes, may dial

(973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID #9382126.  The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday, October 24, 2019 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #9382126.  The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

M&T is a financial holding company headquartered in Buffalo, New York.  M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia.  Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

6-6-6-6-6

M&T BANK CORPORATION

Forward-Looking Statements.  This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management.  These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.  

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements.  In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

7-7-7-7-7

M&T BANK CORPORATION

Financial Highlights

	Three months ended									Nine months ended
	September 30									September 30
Amounts in thousands, except per share	2019			2018			Change			2019			2018			Change
Performance
Net income	$	480,081			526,091			-9	%	$	1,436,083			1,371,861			5	%
Net income available to common shareholders		461,410			505,365			-9	%		1,376,129			1,310,703			5	%
Per common share:
Basic earnings	$	3.47			3.54			-2	%	$	10.16			9.01			13	%
Diluted earnings		3.47			3.53			-2	%		10.16			9.00			13	%
Cash dividends	$	1.00			1.00			—		$	3.00			2.55			18	%
Common shares outstanding:
Average - diluted (1)		132,999			142,976			-7	%		135,443			145,605			-7	%
Period end (2)		132,277			141,479			-7	%		132,277			141,479			-7	%
Return on (annualized):
Average total assets		1.58	%		1.80	%					1.62	%		1.57	%
Average common shareholders' equity		12.73	%		14.08	%					12.85	%		12.16	%
Taxable-equivalent net interest income	$	1,035,469			1,034,771			—		$	3,138,902			3,029,281			4	%
Yield on average earning assets		4.51	%		4.40	%					4.62	%		4.26	%
Cost of interest-bearing liabilities		1.10	%		.82	%					1.09	%		.72	%
Net interest spread		3.41	%		3.58	%					3.53	%		3.54	%
Contribution of interest-free funds		.37	%		.30	%					.38	%		.27	%
Net interest margin		3.78	%		3.88	%					3.91	%		3.81	%
Net charge-offs to average total net loans (annualized)		.16	%		.07	%					.15	%		.14	%
Net operating results (3)
Net operating income	$	483,830			530,619			-9	%	$	1,447,271			1,385,986			4	%
Diluted net operating earnings per common share		3.50			3.56			-2	%		10.24			9.10			13	%
Return on (annualized):
Average tangible assets		1.66	%		1.89	%					1.70	%		1.65	%
Average tangible common equity		18.85	%		21.00	%					19.07	%		18.09	%
Efficiency ratio		55.95	%		51.41	%					56.49	%		55.87	%
	At September 30
Loan quality	2019			2018			Change
Nonaccrual loans	$	1,005,249			870,832			15	%
Real estate and other foreclosed assets		79,735			87,333			-9	%
Total nonperforming assets	$	1,084,984			958,165			13	%
Accruing loans past due 90 days or more (4)	$	461,162			254,360			81	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	43,144			33,570			29	%
Accruing loans past due 90 days or more		434,132			195,450			122	%
Renegotiated loans	$	240,781			242,892			-1	%
Accruing loans acquired at a discount past due 90 days or more (5)	$	40,733			44,223			-8	%
Purchased impaired loans (6):
Outstanding customer balance	$	453,382			572,979			-21	%
Carrying amount		253,496			325,980			-22	%
Nonaccrual loans to total net loans		1.12	%		1.00	%
Allowance for credit losses to total loans		1.16	%		1.18	%

(1) Includes common stock equivalents.

(2) Includes common stock issuable under deferred compensation plans.

(3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 14.

(4) Excludes loans acquired at a discount.  Predominantly residential real estate loans.

(5) Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6) Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

8-8-8-8-8

M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

	Three months ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Amounts in thousands, except per share	2019			2019			2019			2018			2018
Performance
Net income	$	480,081			473,260			482,742			546,219			526,091
Net income available to common shareholders		461,410			452,633			462,086			525,328			505,365
Per common share:
Basic earnings	$	3.47			3.34			3.35			3.76			3.54
Diluted earnings		3.47			3.34			3.35			3.76			3.53
Cash dividends	$	1.00			1.00			1.00			1.00			1.00
Common shares outstanding:
Average - diluted (1)		132,999			135,464			137,920			139,838			142,976
Period end (2)		132,277			134,200			136,637			138,534			141,479
Return on (annualized):
Average total assets		1.58	%		1.60	%		1.68	%		1.84	%		1.80	%
Average common shareholders' equity		12.73	%		12.68	%		13.14	%		14.80	%		14.08	%
Taxable-equivalent net interest income	$	1,035,469			1,047,406			1,056,027			1,064,918			1,034,771
Yield on average earning assets		4.51	%		4.64	%		4.71	%		4.51	%		4.40	%
Cost of interest-bearing liabilities		1.10	%		1.11	%		1.04	%		.94	%		.82	%
Net interest spread		3.41	%		3.53	%		3.67	%		3.57	%		3.58	%
Contribution of interest-free funds		.37	%		.38	%		.37	%		.35	%		.30	%
Net interest margin		3.78	%		3.91	%		4.04	%		3.92	%		3.88	%
Net charge-offs to average total net loans (annualized)		.16	%		.20	%		.10	%		.17	%		.07	%
Net operating results (3)
Net operating income	$	483,830			477,001			486,440			550,169			530,619
Diluted net operating earnings per common share		3.50			3.37			3.38			3.79			3.56
Return on (annualized):
Average tangible assets		1.66	%		1.68	%		1.76	%		1.93	%		1.89	%
Average tangible common equity		18.85	%		18.83	%		19.56	%		22.16	%		21.00	%
Efficiency ratio		55.95	%		55.98	%		57.56	%		51.70	%		51.41	%
	September 30,			June 30,			March 31,			December 31,			September 30,
Loan quality	2019			2019			2019			2018			2018
Nonaccrual loans	$	1,005,249			865,384			881,611			893,608			870,832
Real estate and other foreclosed assets		79,735			72,907			81,335			78,375			87,333
Total nonperforming assets	$	1,084,984			938,291			962,946			971,983			958,165
Accruing loans past due 90 days or more (4)	$	461,162			348,725			244,257			222,527			254,360
Government guaranteed loans included in totals above:
Nonaccrual loans	$	43,144			36,765			35,481			34,667			33,570
Accruing loans past due 90 days or more		434,132			320,305			194,510			192,443			195,450
Renegotiated loans	$	240,781			254,332			267,952			245,367			242,892
Accruing loans acquired at a discount past due 90 days or         more (5)	$	40,733			43,079			43,995			39,750			44,223
Purchased impaired loans (6):
Outstanding customer balance	$	453,382			473,834			495,163			529,520			572,979
Carrying amount		253,496			263,025			278,783			303,305			325,980
Nonaccrual loans to total net loans		1.12	%		.96	%		.99	%		1.01	%		1.00	%
Allowance for credit losses to total loans		1.16	%		1.15	%		1.15	%		1.15	%		1.18	%

(1) Includes common stock equivalents.

(2) Includes common stock issuable under deferred compensation plans.

(3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 15.

(4) Excludes loans acquired at a discount.  Predominantly residential real estate loans.

(5) Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(6) Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value. 

9-9-9-9-9

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

	Three months ended								Nine months ended
	September 30								September 30
Dollars in thousands	2019		2018			Change			2019		2018			Change
Interest income	$	1,229,469		1,167,375			5	%	$	3,693,691		3,378,430			9	%
Interest expense		199,579		138,337			44			572,260		365,088			57
Net interest income		1,029,890		1,029,038			—			3,121,431		3,013,342			4
Provision for credit losses		45,000		16,000			181			122,000		94,000			30
Net interest income after provision for credit losses		984,890		1,013,038			-3			2,999,431		2,919,342			3
Other income
Mortgage banking revenues		137,004		88,408			55			339,636		268,213			27
Service charges on deposit accounts		111,092		108,647			2			321,991		320,546			—
Trust income		143,915		133,545			8			421,083		402,561			5
Brokerage services income		12,077		12,267			-2			37,031		38,288			-3
Trading account and foreign exchange gains		16,072		6,073			165			45,327		15,965			184
Gain (loss) on bank investment securities		3,737		(3,415	)		—			24,489		(10,520	)		—
Other revenues from operations		103,882		113,769			-9			351,082		340,351			3
Total other income		527,779		459,294			15			1,540,639		1,375,404			12
Other expense
Salaries and employee benefits		476,780		431,371			11			1,431,717		1,313,336			9
Equipment and net occupancy		82,690		77,481			7			241,187		225,309			7
Outside data processing and software		60,360		50,678			19			168,011		148,819			13
FDIC assessments		9,906		18,849			-47			29,104		58,689			-50
Advertising and marketing		22,088		21,784			1			66,409		59,800			11
Printing, postage and supplies		10,201		8,843			15			30,380		26,881			13
Amortization of core deposit and other    intangible assets		5,088		6,143			-17			15,185		19,163			-21
Other costs of operations		210,506		160,830			31			663,006		633,903			5
Total other expense		877,619		775,979			13			2,644,999		2,485,900			6
Income before income taxes		635,050		696,353			-9			1,895,071		1,808,846			5
Applicable income taxes		154,969		170,262			-9			458,988		436,985			5
Net income	$	480,081		526,091			-9	%	$	1,436,083		1,371,861			5	%

10-10-10-10-10

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
Dollars in thousands	2019		2019		2019		2018		2018
Interest income	$	1,229,469		1,237,913		1,226,309		1,220,281		1,167,375
Interest expense		199,579		196,432		176,249		161,321		138,337
Net interest income		1,029,890		1,041,481		1,050,060		1,058,960		1,029,038
Provision for credit losses		45,000		55,000		22,000		38,000		16,000
Net interest income after provision for credit losses		984,890		986,481		1,028,060		1,020,960		1,013,038
Other income
Mortgage banking revenues		137,004		107,321		95,311		92,229		88,408
Service charges on deposit accounts		111,092		107,787		103,112		108,791		108,647
Trust income		143,915		144,382		132,786		135,024		133,545
Brokerage services income		12,077		12,478		12,476		12,781		12,267
Trading account and foreign exchange gains		16,072		18,453		10,802		16,582		6,073
Gain (loss) on bank investment securities		3,737		8,911		11,841		4,219		(3,415	)
Other revenues from operations		103,882		112,763		134,437		110,970		113,769
Total other income		527,779		512,095		500,765		480,596		459,294
Other expense
Salaries and employee benefits		476,780		455,737		499,200		438,928		431,371
Equipment and net occupancy		82,690		79,150		79,347		73,519		77,481
Outside data processing and software		60,360		55,234		52,417		50,206		50,678
FDIC assessments		9,906		9,772		9,426		9,837		18,849
Advertising and marketing		22,088		24,046		20,275		25,910		21,784
Printing, postage and supplies		10,201		10,324		9,855		8,777		8,843
Amortization of core deposit and other intangible assets		5,088		5,077		5,020		5,359		6,143
Other costs of operations		210,506		233,692		218,808		189,626		160,830
Total other expense		877,619		873,032		894,348		802,162		775,979
Income before income taxes		635,050		625,544		634,477		699,394		696,353
Applicable income taxes		154,969		152,284		151,735		153,175		170,262
Net income	$	480,081		473,260		482,742		546,219		526,091

11-11-11-11-11

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

	September 30
Dollars in thousands	2019		2018		Change
ASSETS
Cash and due from banks	$	1,818,861		1,311,611		39	%
Interest-bearing deposits at banks		12,495,524		6,523,746		92
Federal funds sold		200		—		—
Trading account		614,256		125,038		391
Investment securities		10,677,583		13,073,881		-18
Loans and leases:
Commercial, financial, etc.		23,201,372		21,635,394		7
Real estate - commercial		34,945,231		33,518,375		4
Real estate - consumer		16,500,955		17,721,399		-7
Consumer		15,175,635		13,805,317		10
Total loans and leases, net of unearned discount		89,823,193		86,680,485		4
Less: allowance for credit losses		1,038,437		1,019,488		2
Net loans and leases		88,784,756		85,660,997		4
Goodwill		4,593,112		4,593,112		—
Core deposit and other intangible assets		33,339		52,426		-36
Other assets		6,483,295		5,486,826		18
Total assets	$	125,500,926		116,827,637		7	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	31,766,724		31,773,560		—	%
Interest-bearing deposits		61,785,212		56,919,549		9
Deposits at Cayman Islands office		1,561,997		447,287		249
Total deposits		95,113,933		89,140,396		7
Short-term borrowings		5,513,896		1,310,110		321
Accrued interest and other liabilities		2,090,762		1,800,778		16
Long-term borrowings		7,002,524		9,140,268		-23
Total liabilities		109,721,115		101,391,552		8
Shareholders' equity:
Preferred		1,250,000		1,231,500		2
Common		14,529,811		14,204,585		2
Total shareholders' equity		15,779,811		15,436,085		2
Total liabilities and shareholders' equity	$	125,500,926		116,827,637		7	%

12-12-12-12-12

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

	September 30,		June 30,		March 31,		December 31,		September 30,
Dollars in thousands	2019		2019		2019		2018		2018
ASSETS
Cash and due from banks	$	1,818,861		1,271,611		1,267,260		1,605,439		1,311,611
Interest-bearing deposits at banks		12,495,524		8,791,753		7,602,897		8,105,197		6,523,746
Federal funds sold		200		—		—		—		—
Trading account		614,256		479,403		276,322		185,584		125,038
Investment securities		10,677,583		11,580,249		12,536,840		12,692,813		13,073,881
Loans and leases:
Commercial, financial, etc.		23,201,372		23,431,408		23,090,204		22,977,976		21,635,394
Real estate - commercial		34,945,231		35,194,375		34,690,930		34,363,556		33,518,375
Real estate - consumer		16,500,955		16,693,737		16,769,933		17,154,446		17,721,399
Consumer		15,175,635		14,558,538		14,088,816		13,970,499		13,805,317
Totalloansandleases,netofunearneddiscount		89,823,193		89,878,058		88,639,883		88,466,477		86,680,485
Less: allowance for credit losses		1,038,437		1,029,867		1,019,337		1,019,444		1,019,488
Net loans and leases		88,784,756		88,848,191		87,620,546		87,447,033		85,660,997
Goodwill		4,593,112		4,593,112		4,593,112		4,593,112		4,593,112
Core deposit and other intangible assets		33,339		38,428		43,947		47,067		52,426
Other assets		6,483,295		5,952,148		6,084,281		5,421,158		5,486,826
Total assets	$	125,500,926		121,554,895		120,025,205		120,097,403		116,827,637
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	31,766,724		30,747,946		29,966,753		32,256,668		31,773,560
Interest-bearing deposits		61,785,212		59,568,223		59,433,806		57,087,998		56,919,549
Deposits at Cayman Islands office		1,561,997		1,364,855		1,069,191		811,906		447,287
Total deposits		95,113,933		91,681,024		90,469,750		90,156,572		89,140,396
Short-term borrowings		5,513,896		4,611,390		3,602,566		4,398,378		1,310,110
Accrued interest and other liabilities		2,090,762		1,915,147		1,889,336		1,637,348		1,800,778
Long-term borrowings		7,002,524		7,655,507		8,476,024		8,444,914		9,140,268
Total liabilities		109,721,115		105,863,068		104,437,676		104,637,212		101,391,552
Shareholders' equity:
Preferred		1,250,000		1,231,500		1,231,500		1,231,500		1,231,500
Common		14,529,811		14,460,327		14,356,029		14,228,691		14,204,585
Total shareholders' equity		15,779,811		15,691,827		15,587,529		15,460,191		15,436,085
Total liabilities and shareholders' equity	$	125,500,926		121,554,895		120,025,205		120,097,403		116,827,637

13-13-13-13-13

M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

	Three months ended															Change in balance						Nine months ended
	September 30,					September 30,					June 30,					September 30, 2019 from						September 30,										Change
Dollars in millions	2019					2018					2019					September 30,			June 30,			2019					2018					in
	Balance		Rate			Balance		Rate			Balance		Rate			2018			2019			Balance		Rate			Balance		Rate			balance
ASSETS
Interest-bearing deposits at banks	$	7,405		2.16	%		5,207		1.98	%		6,122		2.38	%		42	%		21	%	$	6,054		2.30	%		5,014		1.77	%		21	%
Federal funds sold and agreements to
resell securities		18		2.01			—		—			1		2.83			—			—		$	6		2.06			1		1.92			341
Trading account		67		.89			65		1.78			68		2.20			4			—		$	67		2.15			59		2.52			14
Investment securities		11,075		2.48			13,431		2.37			12,170		2.49			-18			-9		$	12,058		2.50			13,917		2.36			-13
Loans and leases, net of unearned
discount
Commercial, financial, etc.		23,326		4.82			21,689		4.68			23,335		4.97			8			—			23,225		4.95			21,649		4.48			7
Real estate - commercial		35,200		5.14			33,800		5.10			34,768		5.30			4			1			34,833		5.26			33,713		4.93			3
Real estate - consumer		16,673		4.20			18,006		4.21			16,723		4.29			-7			—			16,778		4.29			18,637		4.14			-10
Consumer		14,879		5.44			13,637		5.26			14,324		5.53			9			4			14,405		5.49			13,433		5.14			7
Total loans and leases, net		90,078		4.96			87,132		4.86			89,150		5.09			3			1			89,241		5.06			87,432		4.71			2
Total earning assets		108,643		4.51			105,835		4.40			107,511		4.64			3			1			107,426		4.62			106,423		4.26			1
Goodwill		4,593					4,593					4,593					—			—			4,593					4,593					—
Coredepositandotherintangible assets		36					55					41					-35			-13			41					62					-34
Other assets		7,116					5,514					6,342					29			12			6,524					5,598					17
Total assets	$	120,388					115,997					118,487					4	%		2	%	$	118,584					116,676					2	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking
deposits	$	55,680		.75			51,552		.43			53,495		.69			8	%		4	%	$	53,770		.68			52,198		.37			3	%
Time deposits		6,343		1.59			5,826		.88			6,530		1.53			9			-3			6,408		1.49			6,046		.78			6
DepositsatCaymanIslands office		1,522		1.62			407		1.52			1,247		1.94			274			22			1,249		1.82			294		1.13			325
Totalinterest-bearing deposits		63,545		.85			57,785		.49			61,272		.80			10			4			61,427		.79			58,538		.42			5
Short-term borrowings		1,212		2.28			374		1.70			1,263		2.51			224			-4			1,189		2.43			336		1.54			254
Long-term borrowings		7,121		3.13			9,047		2.90			8,278		3.20			-21			-14			7,959		3.19			8,712		2.73			-9
Total interest-bearing liabilities		71,878		1.10			67,206		.82			70,813		1.11			7			2			70,575		1.09			67,586		.72			4
Noninterest-bearing deposits		30,550					31,467					30,099					-3			1			30,323					31,644					-4
Other liabilities		2,123					1,775					1,945					20			9			2,007					1,734					16
Total liabilities		104,551					100,448					102,857					4			2			102,905					100,964					2
Shareholders' equity		15,837					15,549					15,630					2			1			15,679					15,712					—
Total liabilities and shareholders'
equity	$	120,388					115,997					118,487					4	%		2	%	$	118,584					116,676					2	%
Net interest spread				3.41					3.58					3.53											3.53					3.54
Contribution of interest-free funds				.37					.30					.38											.38					.27
Net interest margin				3.78	%				3.88	%				3.91	%										3.91	%				3.81	%

14-14-14-14-14

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

	Three months ended						Nine months ended
	September 30						September 30
	2019			2018			2019			2018
Income statement data
In thousands, except per share
Net income
Net income	$	480,081			526,091			1,436,083			1,371,861
Amortization of core deposit and other intangible assets (1)		3,749			4,528			11,188			14,125
Net operating income	$	483,830			530,619			1,447,271			1,385,986
Earnings per common share
Diluted earnings per common share	$	3.47			3.53			10.16			9.00
Amortization of core deposit and other intangible assets (1)		.03			.03			.08			.10
Diluted net operating earnings per common share	$	3.50			3.56			10.24			9.10
Other expense
Other expense	$	877,619			775,979			2,644,999			2,485,900
Amortization of core deposit and other intangible assets		(5,088	)		(6,143	)		(15,185	)		(19,163	)
Noninterest operating expense	$	872,531			769,836			2,629,814			2,466,737
Efficiency ratio
Noninterest operating expense (numerator)	$	872,531			769,836			2,629,814			2,466,737
Taxable-equivalent net interest income		1,035,469			1,034,771			3,138,902			3,029,281
Other income		527,779			459,294			1,540,639			1,375,404
Less:  Gain (loss) on bank investment securities		3,737			(3,415	)		24,489			(10,520	)
Denominator	$	1,559,511			1,497,480			4,655,052			4,415,205
Efficiency ratio		55.95	%		51.41	%		56.49	%		55.87	%
Balance sheet data
In millions
Average assets
Average assets	$	120,388			115,997			118,584			116,676
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(36	)		(55	)		(41	)		(62	)
Deferred taxes		10			14			11			16
Average tangible assets	$	115,769			111,363			113,961			112,037
Average common equity
Average total equity	$	15,837			15,549			15,679			15,712
Preferred stock		(1,373	)		(1,232	)		(1,279	)		(1,232	)
Average common equity		14,464			14,317			14,400			14,480
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(36	)		(55	)		(41	)		(62	)
Deferred taxes		10			14			11			16
Average tangible common equity	$	9,845			9,683			9,777			9,841
At end of quarter
Total assets
Total assets	$	125,501			116,828
Goodwill		(4,593	)		(4,593	)
Core deposit and other intangible assets		(33	)		(52	)
Deferred taxes		8			14
Total tangible assets	$	120,883			112,197
Total common equity
Total equity	$	15,780			15,436
Preferred stock		(1,250	)		(1,232	)
Undeclared dividends - cumulative preferred stock		—			(3	)
Common equity, net of undeclared cumulative preferred dividends		14,530			14,201
Goodwill		(4,593	)		(4,593	)
Core deposit and other intangible assets		(33	)		(52	)
Deferred taxes		8			14
Total tangible common equity	$	9,912			9,570

(1) After any related tax effect.

15-15-15-15-15

M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

	Three months ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
Income statement data
In thousands, except per share
Net income
Net income	$	480,081			473,260			482,742			546,219			526,091
Amortization of core deposit and other intangible assets (1)		3,749			3,741			3,698			3,950			4,528
Net operating income	$	483,830			477,001			486,440			550,169			530,619
Earnings per common share
Diluted earnings per common share	$	3.47			3.34			3.35			3.76			3.53
Amortization of core deposit and other intangible assets (1)		.03			.03			.03			.03			.03
Diluted net operating earnings per common share	$	3.50			3.37			3.38			3.79			3.56
Other expense
Other expense	$	877,619			873,032			894,348			802,162			775,979
Amortization of core deposit and other intangible assets		(5,088	)		(5,077	)		(5,020	)		(5,359	)		(6,143	)
Noninterest operating expense	$	872,531			867,955			889,328			796,803			769,836
Efficiency ratio
Noninterest operating expense (numerator)	$	872,531			867,955			889,328			796,803			769,836
Taxable-equivalent net interest income		1,035,469			1,047,406			1,056,027			1,064,918			1,034,771
Other income		527,779			512,095			500,765			480,596			459,294
Less:  Gain (loss) on bank investment securities		3,737			8,911			11,841			4,219			(3,415	)
Denominator	$	1,559,511			1,550,590			1,544,951			1,541,295			1,497,480
Efficiency ratio		55.95	%		55.98	%		57.56	%		51.70	%		51.41	%
Balance sheet data
In millions
Average assets
Average assets	$	120,388			118,487			116,839			117,799			115,997
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(36	)		(41	)		(45	)		(50	)		(55	)
Deferred taxes		10			11			12			13			14
Average tangible assets	$	115,769			113,864			112,213			113,169			111,363
Average common equity
Average total equity	$	15,837			15,630			15,569			15,389			15,549
Preferred stock		(1,373	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)
Average common equity		14,464			14,398			14,337			14,157			14,317
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(36	)		(41	)		(45	)		(50	)		(55	)
Deferred taxes		10			11			12			13			14
Average tangible common equity	$	9,845			9,775			9,711			9,527			9,683
At end of quarter
Total assets
Total assets	$	125,501			121,555			120,025			120,097			116,828
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(33	)		(38	)		(44	)		(47	)		(52	)
Deferred taxes		8			10			12			13			14
Total tangible assets	$	120,883			116,934			115,400			115,470			112,197
Total common equity
Total equity	$	15,780			15,692			15,588			15,460			15,436
Preferred stock		(1,250	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)
Undeclared dividends - cumulative preferred stock		—			(3	)		(3	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred        dividends		14,530			14,457			14,353			14,225			14,201
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(33	)		(38	)		(44	)		(47	)		(52	)
Deferred taxes		8			10			12			13			14
Total tangible common equity	$	9,912			9,836			9,728			9,598			9,570

(1) After any related tax effect.

XML

Document and Entity Information	Oct. 17, 2019
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 17, 2019
Entity Registrant Name	M&T BANK CORPORATION
Entity Central Index Key	0000036270
Entity Emerging Growth Company	false
Entity File Number	1-9861
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	16-0968385
Entity Address, Address Line One	One M&T Plaza
Entity Address, City or Town	Buffalo
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14203
City Area Code	(716)
Local Phone Number	635-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, $.50 par value
Trading Symbol	MTB
Security Exchange Name	NYSE