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M&T Bank Annual Report, Year Ended Dec 31, 1998

Filing Date
Filed March 19, 1999
Period End
December 31, 1998
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
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  4. FY2024 annual report10-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K filed March 19, 1999. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation (MTB), a bank holding company headquartered in Buffalo, New York, reported 1998 net income of $208.0 milliona, or $26.16 per diluted share, up 18% in net income and 4% in diluted earnings per share from $176.2 million, or $25.26, in 1997.

Total assets reached $20.6 billionb at December 31, 1998, deposits were $14.7 billion and stockholders' equity was $1.6 billion. The results were shaped by the April 1, 1998 acquisition of ONBANCorp, which added roughly $3.0 billion of loans and $3.8 billion of deposits and produced goodwill and core deposit intangibles of about $563 million. Merger-related expenses of $21.3 million ($14.0 million after tax) reduced 1998 earnings, and amortization of goodwill and core deposit intangible rose to $34.5 million from $7.3 million.

Core profitability indicators were mixed. Net interest margin fell to 3.97% from 4.40%, and net charge-offs declined to .28% of average loans from .38%. Other income excluding a one-time $24.6 millionc charitable contribution and related tax-exempt income rose 32% to $255 million.

Basic earnings per share were $27.30d and cash net income excluding merger costs was $251.9 million. Capital ratios were above the well-capitalized thresholds for the holding company and both banks, with a Tier 1 risk-based ratio of 8.40% and a leverage ratio of 7.02% for the Registrant. The filing also describes a pending agreement to acquire FNB Rochester Corp., with total assets of $588 million, in a transaction expected to close in the second quarter of 1999 that will be accounted for as a purchase.

Half of FNB's shares will be exchanged for M&T common stock and half for cash, with holders able to elect $33.00 in cash per share. The company also reported the sale of its retail credit card business on July 31, 1998, with a pre-tax gain of approximately $3.2 million, and the company changed its name from First Empire State Corporation effective May 29, 1998.

02—Key points

Key Highlights

  1. Net income of $208.0 million in 1998, up 18% from $176.2 million in 1997; diluted EPS of $26.16 versus $25.26.
  2. ONBANCorp acquisition completed April 1, 1998 for $266.3 million in cash plus 1,429,998 shares of M&T common stock, adding about $3.0 billion in loans and $3.8 billion in deposits.
  3. Net interest margin declined to 3.97% from 4.40%, while net charge-offs fell to .28% of average loans from .38%.
  4. Total assets of $20.6 billion, deposits of $14.7 billion and stockholders' equity of $1.6 billion at December 31, 1998.
  5. Nonrecurring merger-related expenses of $21.3 million ($14.0 million after tax) and goodwill and core deposit intangible amortization of $34.5 million weighed on 1998 results.
  6. Pending acquisition of FNB Rochester Corp. (total assets of $588 million), expected to close in the second quarter of 1999 as a purchase.
  7. Tier 1 risk-based capital ratio of 8.40% and leverage ratio of 7.02%; M&T, Olympia, M&T Bank and M&T Bank, N.A. are classified as well capitalized.

03—Questions

Frequently Asked Questions

  1. How did M&T's earnings change in 1998?

    Net income rose 18% to $208.0 million, or $26.16 per diluted share, from $176.2 million, or $25.26, in 1997. Basic earnings per share rose 3% to $27.30. Excluding nonrecurring merger-related expenses, cash net income was $251.9 million, up 38%.

  2. What drove the growth in the balance sheet?

    The April 1, 1998 ONBANCorp acquisition was the primary driver. Total assets grew to $20.6 billion from $14.0 billion, and deposits rose to $14.7 billion from $11.2 billion. Average loans increased 30% to $14.3 billion.

  3. What pressures did M&T face on margins and credit quality?

    Net interest margin fell to 3.97% from 4.40% as lower-yielding acquired assets and competitive loan pricing reduced the yield on earning assets. Credit quality indicators were stable: net charge-offs were .28% of average loans versus .38% in 1997, and nonperforming loans were $117.0 million, or .74% of loans, at year-end.

  4. What pending transaction is described in the filing?

    M&T agreed on December 9, 1998 to merge with FNB Rochester Corp., a holding company with total assets of $588 million and 19 offices in western and central New York. Half of FNB's shares will be exchanged for M&T stock and half for cash, and the merger is expected to close in the second quarter of 1999.

  5. Is M&T adequately capitalized?

    Yes. At December 31, 1998, the Registrant's Tier 1 risk-based capital ratio was 8.40%, its total capital ratio was 10.56% and its leverage ratio was 7.02%. M&T, Olympia, M&T Bank and M&T Bank, N.A. were all classified as well capitalized, the highest regulatory category.

04—Continue

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