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M&T Bank Annual Report, Year Ended Dec 31, 1997

Filing Date
Filed March 16, 1998
Period End
December 31, 1997
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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  2. Leadership change8-K · Feb ’21Feb ’21
  3. Leadership change8-K · Jan ’23Jan ’23
  4. FY2024 annual report10-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K filed March 16, 1998. Cited figures are marked; the original filing is the authoritative source.

First Empire State Corporation (now M&T Bank Corporation) reported net income of $176.2 milliona for 1997, or diluted earnings per common share of $25.26, up 17% and 20%, respectively, from $151.1 million or $21.08 in 1996.

Total assets were $14.0 billionb at December 31, 1997, with deposits of $11.2 billion and stockholders' equity of $1.0 billion. Return on average assets was 1.32% and return on average common stockholders' equity was 18.49%, compared with 1.21% and 17.60% in 1996. Taxable-equivalent net interest income rose 5% to $563 million, while net interest margin narrowed to 4.38% from 4.45%.

The company's principal pending event is its agreement to merge with ONBANCorp, Inc., a Syracuse-based bank holding company with about $5.3 billionc of assets, under which ONBANCorp shareholders may elect .161 of a First Empire share or $69.50 in cash per ONBANCorp share, subject to a 60%-70% stock allocation. The merger, accounted for as a purchase, was expected to close on or about April 1, 1998. Credit quality improved overall: nonperforming loans fell to $80.7 million, or .70% of loans, from $97.9 million, but net charge-offs rose to $41.8 million, driven mainly by consumer loans, which totaled $35.8 million.

During 1997 the company issued $250 milliond of trust preferred securities through two Delaware trusts and terminated or agreed to terminate several co-branded credit card programs after poorer-than-expected results. Management stated that the company was well capitalized and that Year 2000 costs had not had a material adverse impact, with compliance expected by the end of 1998.

02—Key points

Key Highlights

  1. Net income rose 17% to $176.2 million in 1997, and diluted earnings per share increased 20% to $25.26.
  2. Total assets were $14.0 billion at year-end 1997, with deposits of $11.2 billion and stockholders' equity of $1.0 billion.
  3. Return on average assets was 1.32% and return on average common equity was 18.49%, both improved from 1996.
  4. Net interest margin declined to 4.38% from 4.45%, while taxable-equivalent net interest income grew 5% to $563 million on loan growth.
  5. Pending ONBANCorp merger, with $5.3 billion of assets, expected to close on or about April 1, 1998, accounted for as a purchase.
  6. Net charge-offs rose to $41.8 million from $35.2 million, mainly from consumer loans; nonperforming loans fell to $80.7 million, or .70% of loans.
  7. Issued $250 million of trust preferred securities in 1997 and remained well capitalized under regulatory guidelines.

03—Questions

Frequently Asked Questions

  1. How did First Empire's profitability change in 1997?

    Net income was $176.2 million, up 17% from $151.1 million in 1996. Diluted earnings per common share were $25.26, up 20% from $21.08, and basic earnings per share were $26.60, up 18% from $22.54. Return on average assets was 1.32% and return on average common equity was 18.49%.

  2. What is the ONBANCorp transaction and when is it expected to close?

    First Empire agreed in October 1997 to merge with ONBANCorp, Inc., a Syracuse-based bank holding company with about $5.3 billion of assets at December 31, 1997. ONBANCorp shareholders may elect .161 of a First Empire common share or $69.50 in cash for each ONBANCorp share, with 60% to 70% of ONBANCorp shares exchanged for stock. The merger is subject to stockholder approval at both companies and was expected to be completed on or about April 1, 1998.

  3. How did credit quality trend in 1997?

    Nonperforming loans totaled $80.7 million, or .70% of loans outstanding, down from $97.9 million, or .91%, a year earlier. Net charge-offs increased to $41.8 million from $35.2 million, largely from consumer loans, where net charge-offs were $35.8 million. The allowance for possible credit losses was $274.7 million, or 2.39% of net loans and leases.

  4. Did the company change its funding or capital base in 1997?

    Yes. First Empire issued $150 million of 8.234% capital securities through First Empire Capital Trust I in January 1997 and $100 million of 8.277% capital securities through First Empire Capital Trust II in June 1997. Both qualify as Tier 1 capital. At year-end, the consolidated Tier 1 risk-based capital ratio was 10.69% and the leverage ratio was 9.09%, and the company was classified as well capitalized.

04—Continue

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