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M&T Bank Annual Report, Year Ended Dec 31, 2019

Filing Date
Filed February 20, 2020
Period End
December 31, 2019
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 · Jun ’22Jun ’22
  3. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 10-K filed February 20, 2020. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation (MTB), a New York financial holding company headquartered in Buffalo, reported net income of $1.93 billiona, or $13.75 of diluted earnings per common share, for 2019, up 1% in net income and 8% in diluted EPS from $1.92 billion, or $12.74, in 2018.

At December 31, 2019 the Company had consolidated total assets of $119.9 billionb, deposits of $94.8 billion and shareholders' equity of $15.7 billion. Net interest income on a taxable-equivalent basis rose to $4.15 billion, with the net interest margin widening slightly to 3.84% from 3.83%. Provision for credit losses increased 33% to $176 million, and other income rose to $2.06 billion, led by mortgage banking revenues and trust income.

The filing highlights several notable 2019 items: a $50 millionc reserve addition for ESOP trustee legal matters, and a $48 million charge on the sale of an equity investment in an asset manager. Noninterest operating expenses rose, and the efficiency ratio was 55.66%, compared with 54.79% in 2018. The Company repurchased 8,257,000 common shares for $1.35 billion in 2019 and raised the quarterly common dividend to $1.10 per share in the fourth quarter.

It also issued $400 milliond of Series G preferred stock and redeemed Series A and Series C preferred stock. The filing also notes regulatory and forward-looking items. M&T is classified as a Category IV firm under the Tailoring Rules and is no longer subject to the Liquidity Coverage Ratio.

The Company adopted CECL (ASU 2016-13) on January 1, 2020, which increased the allowance for credit losses by $132 million. M&T also disclosed that it is subject to ESOP-related Department of Labor settlement discussions and private lawsuits, with reasonably possible losses beyond existing accruals estimated between $0 and $50 million.

02—Key points

Key Highlights

  1. Net income of $1.93 billion in 2019, up 1% from $1.92 billion in 2018; diluted EPS of $13.75, up from $12.74
  2. Consolidated total assets of $119.9 billion, deposits of $94.8 billion and shareholders' equity of $15.7 billion at December 31, 2019
  3. Net interest margin (taxable-equivalent) of 3.84% in 2019 versus 3.83% in 2018; net interest income rose 1% to $4.15 billion
  4. Provision for credit losses rose to $176 million from $132 million; net charge-offs were $144 million, or .16% of average loans
  5. Other income reached $2.06 billion, led by higher residential mortgage banking revenues and trust income; trust assets under management were $113.0 billion
  6. Repurchased 8,257,000 common shares for $1.35 billion in 2019; quarterly common dividend increased to $1.10 per share in Q4 2019
  7. Adoption of CECL on January 1, 2020 increased the allowance for credit losses by $132 million

03—One dollar

04—Financials

Financial Highlights

Figures from 10-KFY2019filed February 20, 2020
Revenue$6.19BNet Income$1.93B31.2% Net MarginEPS (Diluted)$13.75Total Assets$119.87BCash & Equivalents$1.44BFree Cash Flow$2.36B

Financial Statements

FY2019 against FY2018

Line itemFY2019FY2018Change
Revenue$6.19B$5.93B+4.4%
Interest Expense$749.33M$526.41M+42.3%
Net Income$1.93B$1.92B+0.6%
EPS (Basic)$13.76$12.75+7.9%
EPS (Diluted)$13.75$12.74+7.9%
Shares Outstanding (Basic)134.43M143.99M−6.6%
Shares Outstanding (Diluted)134.46M144.15M−6.7%

05—Questions

Frequently Asked Questions

  1. How did M&T's earnings change in 2019?

    Net income was $1.93 billion, or $13.75 of diluted earnings per common share, up 1% and 8% respectively from $1.92 billion, or $12.74, in 2018. Results included a $50 million ESOP-related legal reserve addition and a $48 million charge on the sale of an equity investment in an asset manager.

  2. What is the size and capital position of the Company?

    At December 31, 2019, consolidated total assets were $119.9 billion, deposits were $94.8 billion and shareholders' equity was $15.7 billion, representing 13.11% of total assets. Tangible common equity per common share was $75.44.

  3. How much capital did M&T return to shareholders in 2019?

    M&T repurchased 8,257,000 common shares for $1.35 billion during 2019 and declared common dividends of $552 million, or $4.10 per share. The Board raised the quarterly common dividend to $1.10 per share in the fourth quarter.

  4. What regulatory changes affect M&T going forward?

    Under the Tailoring Rules, M&T is a Category IV firm and is no longer subject to the Liquidity Coverage Ratio or company-run stress testing, but remains subject to CCAR capital plan review. The Company adopted CECL on January 1, 2020, which increased the allowance for credit losses by $132 million.

  5. What legal matters could affect M&T?

    Wilmington Trust, N.A. reached a settlement in principle with the Department of Labor in July 2019 regarding certain ESOP matters and is a defendant in five private party lawsuits relating to ESOP trustee roles. The range of reasonably possible losses beyond existing accruals is between $0 and $50 million in the aggregate.

06—Continue

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