01—Abstract
Summary
Summary of the 10-K filed March 9, 2001. Cited figures are marked; the original filing is the authoritative source.
M&T Bank Corporation, a New York bank holding company headquartered in Buffalo, reported consolidated total assets of $28.9 billiona, deposits of $20.2 billion and stockholders' equity of $2.7 billion at December 31, 2000.
Net income for 2000 was $286.2 millionb, or $3.44 per diluted share, up 8% and 5% respectively from $265.6 million or $3.28 per diluted share in 1999. Growth was driven largely by the October 6, 2000 Keystone Financial acquisition, which brought about $4.8 billion of loans and leases and $5.2 billion of deposits, and by the February 9, 2001 Premier National Bancorp merger, which added approximately $1.6 billion of assets and 34 banking offices in the mid-Hudson Valley of New York. Net interest income rose to $854.2 million from $759.4 million, and the net interest margin was 4.02% in both 2000 and 1999.
Nonrecurring merger-related expenses were $26.0 millionc pre-tax ($16.4 million after-tax) in 2000. Cash net income, which excludes goodwill amortization and nonrecurring merger costs, was $358.6 million, or $4.31 per diluted share. Net charge-offs fell to .16% of average loans from .25% in 1999, and the allowance for credit losses was 1.65% of net loans at year-end.
Nonperforming loans were $110.6 milliond, or .49% of loans, while accruing loans past due 90 days or more rose to $141.8 million, largely due to $87 million of GNMA-guaranteed loans repurchased in the fourth quarter. The company's capital position is described as well capitalized, with a Tier 1 risk-based capital ratio of 7.49%, a total risk-based capital ratio of 11.19% and a leverage ratio of 6.66% at December 31, 2000.
Quarterly dividends on common stock were raised to $.25 per share in the fourth quarter of 2000, and total 2000 dividends declared were $.625 per share. The company repurchased no common stock after May 2000, when the Keystone acquisition was announced.
02—Key points
Key Highlights
- Net income of $286.2 million, or $3.44 per diluted share, in 2000, up 8% and 5% from 1999.
- Total assets of $28.9 billion, deposits of $20.2 billion and stockholders' equity of $2.7 billion at December 31, 2000.
- Keystone Financial acquisition completed October 6, 2000, adding about $7.4 billion in assets, $4.8 billion in loans and leases and $5.2 billion in deposits.
- Net interest income increased to $854.2 million from $759.4 million, with net interest margin steady at 4.02%.
- Nonrecurring merger-related expenses of $26.0 million pre-tax ($16.4 million after-tax) were recorded in 2000; cash diluted EPS was $4.31.
- Net charge-offs declined to .16% of average loans from .25% in 1999; nonperforming loans were $110.6 million, or .49% of loans.
- Quarterly common dividend doubled to $.25 per share in Q4 2000; the company was rated well capitalized with a 7.49% Tier 1 risk-based capital ratio.
03—Questions
Frequently Asked Questions
How did M&T Bank Corporation perform in 2000?
Net income was $286.2 million, or $3.44 per diluted share, compared with $265.6 million, or $3.28 per diluted share, in 1999. Return on average assets was 1.21% and return on average common equity was 14.07%.
What acquisitions affected 2000 results?
M&T completed the Keystone Financial merger on October 6, 2000, paying $375 million in cash and issuing 15,900,292 shares. It also acquired Matthews, Bartlett & Dedecker insurance agency in March 2000. On February 9, 2001, M&T completed the Premier National Bancorp merger, with Premier's stockholders receiving about $171 million in cash and 2,441,000 shares.
How strong is M&T's capital position?
At December 31, 2000, the Registrant's Tier 1 risk-based capital ratio was 7.49%, its total risk-based capital ratio was 11.19% and its leverage ratio was 6.66%. The filing states that M&T, Olympia, M&T Bank and M&T Bank, N.A. all met the definition of well capitalized. Stockholders' equity was 9.33% of total assets.
Are there any notable credit quality concerns?
Net charge-offs improved to $29.0 million, or .16% of average loans, and the allowance for credit losses was $374.7 million, or 1.65% of net loans. However, accruing loans past due 90 days or more rose to $141.8 million, or .62% of total loans, largely due to $87 million of GNMA-guaranteed residential mortgage loans repurchased in the fourth quarter of 2000.
What did M&T do with its dividends and share repurchases?
Cash dividends on common stock were $52.0 million in 2000, or $.625 per share, compared with $.45 per share in 1999. The quarterly dividend was raised to $.25 per share in the fourth quarter of 2000. M&T repurchased 1,313,760 shares in 2000 at a cost of $54.9 million and has not repurchased stock since the Keystone acquisition was announced in May 2000.
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