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M&T Bank Annual Report, Year Ended Dec 31, 1993

Filing Date
Filed March 18, 1994
Period End
December 31, 1993
In the record · 2016–202610-K1110-Q338-K161

MTB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 161 current reports (8-K) between 2016 and 2026.

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01—Abstract

Summary

Summary of the 10-K filed March 18, 1994. Cited figures are marked; the original filing is the authoritative source.

First Empire State Corporation, a New York bank holding company headquartered in Buffalo, reported net income of $102.0 milliona, or $13.87 per common share, for 1993, up from $97.9 million or $13.41 per share in 1992.

At December 31, 1993, the Company had consolidated total assets of $10.4 billionb, deposits of $7.4 billion and stockholders' equity of $724 million. Its operations are conducted principally through Manufacturers and Traders Trust Company (M&T Bank), with $8.6 billion of assets, and The East New York Savings Bank, with $1.8 billion of assets. Growth in 1993 was driven largely by the July 1992 Central Trust and Endicott Trust acquisitions and earlier federally assisted thrift acquisitions.

The Company's net interest income rose 8% on a taxable-equivalent basis to $474.8 millionc, and the net interest margin was 4.76%, slightly below 4.79% in 1992. Nonperforming loans fell 28% to $82.3 million, and net charge-offs declined to $35.8 million. Management nonetheless recorded a $80.0 million provision for possible credit losses, citing caution about the economic recovery and the unsettled New York City commercial real estate market.

Return on average assets was .98% and return on average common stockholders' equity was 15.61%. Both M&T Bank and East New York were classified as well capitalized, with a consolidated total risk-based Tier 1 ratio of 9.33% and a leverage ratio of 6.63%. The filing also notes that the Company adopted SFAS No. 115 on December 31, 1993, which increased stockholders' equity by $9.1 milliond.

It discloses a 1992 securities gain of $28.1 million that inflated that year's results. The Company's common stock trades on the American Stock Exchange under the symbol FES. Management stated that it was unable to predict whether higher capital requirements would be imposed.

02—Key points

Key Highlights

  1. Net income rose to $102.0 million, or $13.87 per common share, in 1993, compared with $97.9 million, or $13.41 per share, in 1992.
  2. Consolidated total assets were $10.4 billion and total deposits were $7.4 billion at December 31, 1993; stockholders' equity was $724 million.
  3. Taxable-equivalent net interest income increased 8% to $474.8 million, with a net interest margin of 4.76% versus 4.79% in 1992.
  4. Provision for possible credit losses was $80.0 million, while nonperforming loans fell 28% to $82.3 million and net charge-offs decreased to $35.8 million.
  5. The allowance for possible credit losses was $195.9 million, or 2.70% of net loans and leases, up from 2.17% a year earlier.
  6. Return on average assets was .98% and return on average common stockholders' equity was 15.61% in 1993.
  7. M&T Bank and East New York both met the 'well capitalized' definition; the consolidated Tier 1 risk-based capital ratio was 9.33% and the leverage ratio was 6.63%.

03—Questions

Frequently Asked Questions

  1. How did the Company's earnings and balance sheet change in 1993?

    Net income was $102.0 million, or $13.87 per common share, up from $97.9 million, or $13.41 per share, in 1992. Total assets were $10.4 billion at year-end 1993, compared with $9.6 billion a year earlier, and stockholders' equity increased to $724.0 million from $626.8 million. Total deposits decreased to $7.4 billion from $8.1 billion.

  2. What drove growth in 1993?

    The filing attributes the growth in average earning assets to the full-year effect of the July 1992 acquisitions of Central Trust Company and Endicott Trust Company, along with increased investment securities holdings. Average loans rose 6%, although sluggish economic conditions tended to restrain loan demand, particularly in commercial lending.

  3. How is asset quality trending?

    Nonperforming loans declined 28% to $82.3 million at year-end 1993, and net charge-offs fell to $35.8 million from $46.3 million in 1992. Management nevertheless kept the provision for possible credit losses at $80.0 million because of concerns about the unsettled commercial real estate market in the New York City metropolitan area and the sustainability of the regional economic recovery. Nonperforming commercial real estate loans totaled $48.3 million at year-end.

  4. What risks did management identify in the filing?

    Management said that reductions in the spread between prime and money-market rates would adversely affect the net interest margin. It also noted that the 1992 results included $28.1 million of securities gains that were not expected to recur, and it stated that it could not assess the impact of proposed interest-rate risk capital rules. Management further said it was unable to predict whether higher capital requirements would be imposed on banking organizations.

  5. What are the Company's regulatory and capital positions?

    M&T Bank and East New York both qualified as well capitalized under FDICIA. The consolidated total risk-based capital ratio was 11.58% and the Tier 1 ratio was 9.33%, both above the required minimums of 8% and 4%. The consolidated leverage ratio was 6.63%. The Company's common stock trades on the American Stock Exchange under the symbol FES.

04—Continue

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