How large is M&T Bank Corporation after the Allfirst acquisition?

As of December 31, 2003, M&T reported consolidated total assets of $49.8 billion, deposits of $33.1 billion and stockholders' equity of $5.7 billion. It had 12,426 full-time and 1,574 part-time employees and two wholly owned bank subsidiaries, M&T Bank and M&T Bank, N.A.

What was the impact of the Allfirst acquisition on earnings?

Results include Allfirst from April 1, 2003. Merger-related expenses were $60 million pre-tax ($39 million after tax, or $.34 per diluted share). Net income was $574 million, up 26% from $457 million in 2002, while diluted EPS rose 4% to $4.95. Excluding merger expenses and intangible amortization, net operating income was $661 million, or $5.70 per diluted share.

What is AIB's role in M&T after the transaction?

AIB received 26,700,000 shares of M&T common stock and $886 million in cash and owns approximately 22.5% of M&T's outstanding common stock. AIB may designate four directors to the M&T and M&T Bank boards while it holds at least 15%, has committee representation, and is subject to restrictions such as limits on acquiring more than 25% of M&T shares through the second anniversary of the Sunset Date.

How did credit quality and capital position change in 2003?

The provision for credit losses was $131 million and net charge-offs were $97 million, or .28% of average loans. Nonperforming loans were $240 million, or .67% of loans and leases. The Registrant's Tier 1 risk-based capital ratio was 7.30%, its total risk-based capital ratio was 11.20%, and its leverage ratio was 6.98%, and all bank subsidiaries were classified as well capitalized.

What shareholder returns did M&T announce?

In February 2004 M&T's board declared a quarterly cash dividend of $.40 per share, up 33% from $.30, payable March 31, 2004. It also authorized repurchases of up to 5,000,000 additional shares, following completion of a prior 5,000,000-share program in February 2004 at an average cost of $82.11 per share. Cash dividends declared in 2003 totaled $1.20 per share.

M&T Bank 10-K FY2003 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K filed February 26, 2004. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation's 2003 annual report shows a transformative year driven by the April 1, 2003 acquisition of Allfirst Financial Inc. from Allied Irish Banks, p.l.c.

(AIB). Allfirst contributed approximately $16 billion^a in acquired assets, $10 billion of loans and leases, $11 billion of deposits, and $2 billion added to stockholders' equity. As of December 31, 2003, the Company reported consolidated total assets of $49.8 billion, deposits of $33.1 billion and stockholders' equity of $5.7 billion, up from $33.2 billion of total assets at year-end 2002.

Net income for 2003 was $574 million^b, or $4.95 per diluted share, up 26% and 4% respectively from 2002. Net operating income, a non-GAAP measure the company uses to exclude amortization of core deposit intangibles and merger-related expenses, rose 35% to $661 million, or $5.70 per diluted share. Merger-related expenses for Allfirst totaled $60 million pre-tax ($39 million after tax).

Net interest margin declined 27 basis points to 4.09% due to lower-yielding acquired portfolios, while noninterest income rose to $831 million^c. Credit quality remained stable, with net charge-offs of $97 million (.28% of average loans) and nonperforming loans of .67% of loans and leases.

Investors should also note AIB's ownership of approximately 22.5%^d of M&T common stock, which carries board representation rights, certain governance protections, and restrictions on AIB's future activity under the Reorganization Agreement. The Board also declared a quarterly dividend of $.40 per share, a 33% increase from $.30, and authorized a new repurchase of up to 5,000,000 shares in February 2004.

02—Key points

Key Highlights

Total assets of $49.8 billion at December 31, 2003, compared with $33.2 billion a year earlier, following the Allfirst acquisition.
Net income of $574 million, or $4.95 diluted EPS, up 26% and 4% respectively; net operating income rose 35% to $661 million ($5.70 diluted).
Allfirst acquisition on April 1, 2003 added $10 billion of loans and leases and $11 billion of deposits, and expanded M&T into Maryland, central Pennsylvania and the mid-Atlantic region.
Net interest margin narrowed to 4.09% from 4.36%, largely due to lower-yielding loans and securities acquired in the Allfirst transaction.
Noninterest income rose 62% to $831 million, with approximately $279 million of the increase attributable to former Allfirst operations.
AIB owns approximately 22.5% of M&T common stock and has board representation, governance rights and transfer restrictions under the Reorganization Agreement.
Quarterly dividend increased to $.40 per share from $.30, and a new 5,000,000-share repurchase program was authorized in February 2004.

03—Questions

Frequently Asked Questions

How large is M&T Bank Corporation after the Allfirst acquisition?
As of December 31, 2003, M&T reported consolidated total assets of $49.8 billion, deposits of $33.1 billion and stockholders' equity of $5.7 billion. It had 12,426 full-time and 1,574 part-time employees and two wholly owned bank subsidiaries, M&T Bank and M&T Bank, N.A.
What was the impact of the Allfirst acquisition on earnings?
Results include Allfirst from April 1, 2003. Merger-related expenses were $60 million pre-tax ($39 million after tax, or $.34 per diluted share). Net income was $574 million, up 26% from $457 million in 2002, while diluted EPS rose 4% to $4.95. Excluding merger expenses and intangible amortization, net operating income was $661 million, or $5.70 per diluted share.
What is AIB's role in M&T after the transaction?
AIB received 26,700,000 shares of M&T common stock and $886 million in cash and owns approximately 22.5% of M&T's outstanding common stock. AIB may designate four directors to the M&T and M&T Bank boards while it holds at least 15%, has committee representation, and is subject to restrictions such as limits on acquiring more than 25% of M&T shares through the second anniversary of the Sunset Date.
How did credit quality and capital position change in 2003?
The provision for credit losses was $131 million and net charge-offs were $97 million, or .28% of average loans. Nonperforming loans were $240 million, or .67% of loans and leases. The Registrant's Tier 1 risk-based capital ratio was 7.30%, its total risk-based capital ratio was 11.20%, and its leverage ratio was 6.98%, and all bank subsidiaries were classified as well capitalized.
What shareholder returns did M&T announce?
In February 2004 M&T's board declared a quarterly cash dividend of $.40 per share, up 33% from $.30, payable March 31, 2004. It also authorized repurchases of up to 5,000,000 additional shares, following completion of a prior 5,000,000-share program in February 2004 at an average cost of $82.11 per share. Cash dividends declared in 2003 totaled $1.20 per share.

04—Continue

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