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M&T Bank Annual Report, Year Ended Dec 31, 2009

Filing Date
Filed February 19, 2010
Period End
December 31, 2009
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.

  1. Deal closed8-K · Jan ’16Jan ’16
  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 February 19, 2010. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation (MTB), a New York-registered bank holding company headquartered in Buffalo, New York, reported consolidated total assets of $68.9 billiona, deposits of $47.4 billion and stockholders' equity of $7.8 billion at December 31, 2009.

Net income for 2009 was $380 millionb, or $2.89 per diluted common share, down from $556 million, or $5.01 per diluted share, in 2008. The decline was driven largely by a provision for credit losses that rose to $604 million from $412 million, net charge-offs of $514 million, and $138 million of pre-tax other-than-temporary impairment charges on privately issued CMOs and CDOs. Net operating income, a non-GAAP measure the company uses to exclude acquisition-related items, was $455 million, or $3.54 per diluted share.

The year was shaped by two acquisitions. M&T acquired Provident Bankshares Corporation on May 23, 2009 in a stock transaction, adding goodwill of $332 millionc and roughly $4.0 billion of acquired loans, and it assumed a Bradford Bank deposit franchise from the FDIC on August 28, 2009 under a loss-share arrangement. Net interest margin widened to 3.49% from 3.38%, largely because of lower rates paid on deposits and borrowings, and noninterest-bearing deposits grew sharply.

Nonaccrual loans rose to $1.33 billiond, or 2.56% of loans and leases, from $755 million a year earlier, with the most significant pressure in commercial real estate and residential builder and developer loans. Allied Irish Banks, p.l.c. held approximately 22.6% of M&T common stock at year-end 2009 and has board representation and governance rights under a 2003 reorganization agreement. The company remained a well-capitalized institution, and M&T and both of its bank subsidiaries met the well-capitalized standard at December 31, 2009.

M&T participated in the U.S. Treasury's TARP Capital Purchase Program, with $752 million of preferred stock outstanding related to the program. Dividends on common stock were $2.80 per share in both 2009 and 2008.

02—Key points

Key Highlights

  1. Net income fell 32% to $380 million in 2009, and diluted EPS fell to $2.89 from $5.01, as credit costs and impairment charges rose.
  2. Provision for credit losses increased to $604 million from $412 million; net charge-offs rose to $514 million, or 1.01% of average loans, from 0.78% in 2008.
  3. Nonaccrual loans reached $1.33 billion, or 2.56% of loans and leases, compared with 1.54% at year-end 2008.
  4. Other-than-temporary impairment losses of $138 million (pre-tax) were recognized, mainly on privately issued residential CMOs and CDOs.
  5. Acquisitions of Provident Bankshares (May 2009) and Bradford Bank (August 2009, FDIC-assisted) added about $6.3 billion and $469 million of assets, respectively.
  6. Net interest margin widened to 3.49% from 3.38%, and noninterest-bearing deposits rose to $13.8 billion from $8.9 billion.
  7. Total stockholders' equity was $7.8 billion, and all three banking entities were classified as well capitalized at December 31, 2009.

03—One dollar

04—Financials

Financial Highlights

Figures from 10-KFY2009filed February 19, 2010
Net Income$379.89MEPS (Diluted)$2.89Total Assets$68.88BCash & Equivalents$1.25BFree Cash Flow$1.19B

Financial Statements

FY2009 against FY2008

Line itemFY2009FY2008Change
Interest Expense$669.45M$1.34B−50.0%
Net Income$379.89M$555.89M−31.7%
EPS (Basic)$2.90$5.04−42.5%
EPS (Diluted)$2.89$5.01−42.3%
Shares Outstanding (Basic)114.66M110.21M+4.0%
Shares Outstanding (Diluted)114.78M110.90M+3.5%

05—Questions

Frequently Asked Questions

  1. Why did M&T's earnings decline sharply in 2009?

    Diluted EPS was $2.89 versus $5.01 in 2008. The filing attributes the decline mainly to a provision for credit losses of $604 million (up from $412 million), net loan charge-offs of $514 million, and $138 million of pre-tax other-than-temporary impairment charges. FDIC assessments rose to $97 million from $7 million, and merger-related expenses were $89 million.

  2. What were the main effects of the Provident and Bradford acquisitions?

    Provident Bankshares, acquired May 23, 2009 for a purchase price of about $274 million, contributed assets of $6.3 billion, including $4.0 billion of loans, and added $332 million of goodwill. Bradford Bank, acquired from the FDIC on August 28, 2009, contributed about $469 million of assets and produced an after-tax gain of $18 million ($29 million pre-tax).

  3. How is Allied Irish Banks involved with M&T?

    AIB owned approximately 22.6% of M&T's outstanding common stock at December 31, 2009. Under the 2003 Reorganization Agreement, AIB may designate four directors to the M&T and M&T Bank boards while it holds at least 15% of the shares, and it has certain consent rights and anti-dilution protections.

  4. How strong is M&T's capital position?

    Stockholders' equity was $7.8 billion, or 11.26% of total assets, at year-end 2009. The consolidated Tier 1 capital ratio was 8.59% and total capital ratio was 12.30%. M&T, M&T Bank and M&T Bank, N.A. all met the well-capitalized requirements. Preferred stock tied to TARP totaled $752 million.

06—Continue

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