mtb-ex991

BUFFALO, NEW YORK -- M&T Bank Corporation (“M&T”) (NYSE: MTB) today reported its results of operations for 2019.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) were $3.60 in the fourth quarter of 2019, compared with $3.76 in the year-earlier quarter and $3.47 in the third quarter of 2019. GAAP-basis net income in the recent quarter was $493 million, compared with $546 million in the final quarter of 2018 and $480 million in the third 2019 quarter. GAAP-basis net income for the fourth quarter of 2019 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.60% and 12.95%, respectively, compared with 1.84% and 14.80%, respectively, in the similar 2018 quarter and 1.58% and 12.73%, respectively, in the third quarter of 2019.

Darren J. King, Executive Vice President and Chief Financial Officer, commented on M&T’s performance, “M&T’s results reflect a year of strong performance. Earnings per common share for 2019 rose 8%, combined net interest income and other income increased over 4%, and net charge-offs as a percentage of loans remained at a historically low level. Strong growth in income from the mortgage banking and trust businesses led the revenue improvement.”

For the year ended December 31, 2019, diluted earnings per common share were $13.75, up 8% from $12.74 in 2018. GAAP-basis net income in 2019 aggregated $1.93 billion, up from $1.92 billion in 2018. Expressed as a rate of return on average assets and average common shareholders’ equity, GAAP-basis net income for 2019 was 1.61% and 12.87%, respectively, compared with 1.64% and 12.82%, respectively, in 2018.

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such items are considered by management to be “nonoperating” in nature. The amounts of such “nonoperating” expenses are presented in the tables that accompany this release. Although “net operating income” as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.

Diluted net operating earnings per common share were $3.62 in the fourth quarter of 2019, compared with $3.79 in the final 2018 quarter and $3.50 in the third quarter of 2019. Net operating income in the recent quarter was $496 million, compared with $550 million in the fourth quarter of 2018 and $484 million in the third quarter of 2019. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the fourth quarter of 2019 was 1.67% and 19.08%, respectively, compared with 1.93% and 22.16%, respectively, in the similar 2018 quarter and 1.66% and 18.85%, respectively, in the third quarter of 2019.

Diluted net operating earnings per common share for the year ended December 31, 2019 increased 8% to $13.86 from $12.86 in 2018. Net operating income in each of 2019 and 2018 was $1.94 billion. Expressed as a rate of return on average tangible assets and average tangible common shareholders’ equity, net operating income was 1.69% and 19.08%, respectively, during 2019, compared with 1.72% and 19.09%, respectively, in 2018.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $1.01 billion in the fourth quarter of 2019, compared with $1.06 billion in the year-earlier quarter. That decline resulted from a 28 basis point narrowing of the net interest margin, to 3.64% in 2019’s fourth quarter from 3.92% in the final quarter of 2018, that was partially offset by the impact of higher average earning assets, which rose from $107.8 billion in the fourth quarter of 2018 to $110.6 billion in the recent quarter. In the third quarter of 2019, taxable-equivalent net interest income was $1.04 billion, the net interest margin was 3.78% and average earning assets totaled $108.6 billion. Taxable-equivalent net interest income for the full year of 2019 increased to $4.15 billion from $4.09 billion in 2018. The net interest margin was 3.84% in 2019 and 3.83% in 2018.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $54 million in the final quarter of 2019, compared with $38 million in the corresponding 2018 quarter and $45 million in the third quarter of 2019. Net loan charge-offs were $41 million during the recent quarter, compared with $38 million in the fourth quarter of 2018 and $36 million in 2019’s third quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .18% and .17% in the final quarters of 2019 and 2018, respectively, and .16% in the third quarter of 2019. The provision for credit losses was $176 million for the year ended December 31, 2019, compared with $132 million in 2018. Net loan charge-offs during 2019 and 2018 aggregated $144 million and $130 million, respectively, representing .16% and .15%, respectively, of average loans outstanding.

Loans classified as nonaccrual totaled $963 million or 1.06% of total loans outstanding at December 31, 2019, compared with $894 million or 1.01% a year earlier and $1.01 billion or 1.12% at September 30, 2019. Assets taken in foreclosure of defaulted loans were $86 million at December 31, 2019, compared with $78 million and $80 million at December 31, 2018 and September 30, 2019, respectively.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. As a result of those analyses, the allowance for credit losses totaled $1.05 billion or 1.16% of loans outstanding at December 31, 2019, compared with $1.02 billion or 1.15% at December 31, 2018 and $1.04 billion or 1.16% at September 30, 2019.

Noninterest Income and Expense. Noninterest income totaled $521 million in the fourth quarter of 2019, 8% higher than $481 million in the year-earlier quarter. That improvement resulted from significantly higher residential mortgage banking revenues and trust income, partially offset by unrealized losses on investment securities. During the third quarter of 2019, noninterest income totaled $528 million. The decline in such income in the recent quarter as compared with 2019’s third quarter reflected lower commercial mortgage

banking revenues and unrealized losses on investment securities that were partially offset by increases in letter of credit and credit-related fees and trust income.

Noninterest income rose 11% to $2.06 billion in 2019 from $1.86 billion in 2018. Growth was experienced in most major sources of noninterest income, led by mortgage banking revenues and trust income.

Noninterest expense totaled $824 million in 2019’s final quarter, $802 million in the corresponding quarter of 2018 and $878 million in the third quarter of 2019. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets, noninterest operating expenses were $819 million in the recent quarter, $797 million in the fourth quarter of 2018 and $873 million in 2019’s third quarter. Significant factors contributing to the higher level of noninterest expenses in the recent quarter as compared with year-earlier quarter were increased costs for salaries and employee benefits and outside data processing and software, partially offset by lower contributions to The M&T Charitable Foundation and a reduction of the valuation allowance for capitalized residential mortgage servicing rights. The lower level of noninterest expenses in the final 2019 quarter as compared with the immediately preceding quarter was attributable to reduced costs for professional services and salaries and employee benefits, and changes in the valuation allowance for capitalized residential mortgage servicing rights. That allowance was reduced by $16 million during the recent quarter, compared with an addition to the allowance of $14 million in the third quarter of 2019.

For the year ended December 31, 2019 noninterest expense aggregated $3.47 billion, compared with $3.29 billion in 2018. Noninterest operating expenses were $3.45 billion and $3.26 billion in 2019 and 2018, respectively. Contributing to the higher level of such expenses in 2019 were increased costs for salaries and employee benefits, equipment and net occupancy, outside data processing and software, and professional services, and a $48 million charge in the second quarter of 2019 associated with the sale of an equity investment in an asset manager. Partially offsetting those factors were lower costs associated with legal-related matters and charitable contributions, and a decline in FDIC assessments.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.1% in the fourth quarter of 2019, 51.7% in the similar 2018 quarter and 55.9% in the third quarter of 2019. The efficiency ratio for the full year 2019 was 55.7%, compared with 54.8% in 2018.

Balance Sheet. M&T had total assets of $119.9 billion at December 31, 2019, compared with $120.1 billion and $125.5 billion at December 31, 2018 and September 30, 2019, respectively. Loans and leases, net of unearned discount, were $90.9 billion at the recent quarter-end, $88.5 billion at December 31, 2018 and $89.8 billion at September 30, 2019. The increase in outstanding balances of loans and leases from September 30 to December 31, 2019 was predominantly attributable to growth in commercial loans and commercial real estate loans. Total deposits were $94.8 billion at December 31, 2019, compared with $90.2 billion a year earlier and $95.1 billion at September 30, 2019. The higher level of deposits at the end of 2019 as compared with a year earlier reflects increased deposits associated with residential mortgage servicing activities.

Total shareholders' equity was $15.7 billion, or 13.11% of total assets at December 31, 2019, compared with $15.5 billion, or 12.87% at December 31, 2018 and $15.8 billion, or 12.57% at September 30, 2019. Common shareholders' equity was $14.5 billion, or $110.78 per share, at December 31, 2019, compared with $14.2 billion, or $102.69 per share, a year-earlier and $14.5 billion, or $109.84 per share, at September 30, 2019. Tangible equity per common share was $75.44 at December 31, 2019, compared with $69.28 at December 31, 2018 and $74.93 at September 30, 2019. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 9.72% at December 31, 2019.

In accordance with its capital plan, M&T repurchased 1,724,000 shares of its common stock during the recent quarter at an average cost per share of $163.69 for a total cost of $282 million. In the aggregate, during 2019, M&T repurchased 8,257,000 shares of common stock at a total cost of $1.35 billion.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial

(877) 780-2276. International participants, using any applicable international calling codes, may dial

(973) 582-2700. Callers should reference M&T Bank Corporation or the conference ID #9399388. The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday, January 30, 2020 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID #9399388. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the

actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

	Three months ended									Year ended
	December 31									December 31
Amounts in thousands, except per share	2019			2018			Change			2019			2018			Change
Performance
Net income	$	493,066			546,219			-10	%	$	1,929,149			1,918,080			1	%
Net income available to common shareholders		473,372			525,328			-10	%		1,849,511			1,836,035			1	%
Per common share:
Basic earnings	$	3.60			3.76			-4	%	$	13.76			12.75			8	%
Diluted earnings		3.60			3.76			-4	%		13.75			12.74			8	%
Cash dividends	$	1.10			1.00			10	%	$	4.10			3.55			15	%
Common shares outstanding:
Average - diluted (1)		131,549			139,838			-6	%		134,462			144,151			-7	%
Period end (2)		130,589			138,534			-6	%		130,589			138,534			-6	%
Return on (annualized):
Average total assets		1.60	%		1.84	%					1.61	%		1.64	%
Average common shareholders' equity		12.95	%		14.80	%					12.87	%		12.82	%
Taxable-equivalent net interest income	$	1,014,225			1,064,918			-5	%	$	4,153,127			4,094,199			1	%
Yield on average earning assets		4.27	%		4.51	%					4.53	%		4.33	%
Cost of interest-bearing liabilities		.97	%		.94	%					1.05	%		.78	%
Net interest spread		3.30	%		3.57	%					3.48	%		3.55	%
Contribution of interest-free funds		.34	%		.35	%					.36	%		.28	%
Net interest margin		3.64	%		3.92	%					3.84	%		3.83	%
Net charge-offs to average total net loans (annualized)		.18	%		.17	%					.16	%		.15	%
Net operating results (3)
Net operating income	$	496,237			550,169			-10	%	$	1,943,508			1,936,155			—
Diluted net operating earnings per common share		3.62			3.79			-4	%		13.86			12.86			8	%
Return on (annualized):
Average tangible assets		1.67	%		1.93	%					1.69	%		1.72	%
Average tangible common equity		19.08	%		22.16	%					19.08	%		19.09	%
Efficiency ratio		53.15	%		51.70	%					55.66	%		54.79	%

	At December 31
Loan quality	2019			2018			Change
Nonaccrual loans	$	963,112			893,608			8	%
Real estate and other foreclosed assets		85,646			78,375			9	%
Total nonperforming assets	$	1,048,758			971,983			8	%
Accruing loans past due 90 days or more (4)	$	518,728			222,527			133	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	50,891			34,667			47	%
Accruing loans past due 90 days or more		479,829			192,443			149	%
Renegotiated loans	$	234,424			245,367			-4	%
Accruing loans acquired at a discount past due 90 days or more (5)	$	39,632			39,750			—
Purchased impaired loans (6):
Outstanding customer balance	$	415,413			529,520			-22	%
Carrying amount		227,545			303,305			-25	%
Nonaccrual loans to total net loans		1.06	%		1.01	%
Allowance for credit losses to total loans		1.16	%		1.15	%

	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Amounts in thousands, except per share	2019			2019			2019			2019			2018
Performance
Net income	$	493,066			480,081			473,260			482,742			546,219
Net income available to common shareholders		473,372			461,410			452,633			462,086			525,328
Per common share:
Basic earnings	$	3.60			3.47			3.34			3.35			3.76
Diluted earnings		3.60			3.47			3.34			3.35			3.76
Cash dividends	$	1.10			1.00			1.00			1.00			1.00
Common shares outstanding:
Average - diluted (1)		131,549			132,999			135,464			137,920			139,838
Period end (2)		130,589			132,277			134,200			136,637			138,534
Return on (annualized):
Average total assets		1.60	%		1.58	%		1.60	%		1.68	%		1.84	%
Average common shareholders' equity		12.95	%		12.73	%		12.68	%		13.14	%		14.80	%
Taxable-equivalent net interest income	$	1,014,225			1,035,469			1,047,406			1,056,027			1,064,918
Yield on average earning assets		4.27	%		4.51	%		4.64	%		4.71	%		4.51	%
Cost of interest-bearing liabilities		.97	%		1.10	%		1.11	%		1.04	%		.94	%
Net interest spread		3.30	%		3.41	%		3.53	%		3.67	%		3.57	%
Contribution of interest-free funds		.34	%		.37	%		.38	%		.37	%		.35	%
Net interest margin		3.64	%		3.78	%		3.91	%		4.04	%		3.92	%
Net charge-offs to average total net loans (annualized)		.18	%		.16	%		.20	%		.10	%		.17	%
Net operating results (3)
Net operating income	$	496,237			483,830			477,001			486,440			550,169
Diluted net operating earnings per common share		3.62			3.50			3.37			3.38			3.79
Return on (annualized):
Average tangible assets		1.67	%		1.66	%		1.68	%		1.76	%		1.93	%
Average tangible common equity		19.08	%		18.85	%		18.83	%		19.56	%		22.16	%
Efficiency ratio		53.15	%		55.95	%		55.98	%		57.56	%		51.70	%

	December 31,			September 30,			June 30,			March 31,			December 31,
Loan quality	2019			2019			2019			2019			2018
Nonaccrual loans	$	963,112			1,005,249			865,384			881,611			893,608
Real estate and other foreclosed assets		85,646			79,735			72,907			81,335			78,375
Total nonperforming assets	$	1,048,758			1,084,984			938,291			962,946			971,983
Accruing loans past due 90 days or more (4)	$	518,728			461,162			348,725			244,257			222,527
Government guaranteed loans included in totals above:
Nonaccrual loans	$	50,891			43,144			36,765			35,481			34,667
Accruing loans past due 90 days or more		479,829			434,132			320,305			194,510			192,443
Renegotiated loans	$	234,424			240,781			254,332			267,952			245,367
Accruing loans acquired at a discount past due 90 days or more (5)	$	39,632			40,733			43,079			43,995			39,750
Purchased impaired loans (6):
Outstanding customer balance	$	415,413			453,382			473,834			495,163			529,520
Carrying amount		227,545			253,496			263,025			278,783			303,305
Nonaccrual loans to total net loans		1.06	%		1.12	%		.96	%		.99	%		1.01	%
Allowance for credit losses to total loans		1.16	%		1.16	%		1.15	%		1.15	%		1.15	%

	Three months ended								Year ended
	December 31								December 31
Dollars in thousands	2019			2018		Change			2019		2018			Change
Interest income	$	1,185,902			1,220,281		-3	%	$	4,879,593		4,598,711			6	%
Interest expense		177,069			161,321		10			749,329		526,409			42
Net interest income		1,008,833			1,058,960		-5			4,130,264		4,072,302			1
Provision for credit losses		54,000			38,000		42			176,000		132,000			33
Net interest income after provision for credit losses		954,833			1,020,960		-6			3,954,264		3,940,302			—
Other income
Mortgage banking revenues		118,134			92,229		28			457,770		360,442			27
Service charges on deposit accounts		110,987			108,791		2			432,978		429,337			1
Trust income		151,525			135,024		12			572,608		537,585			7
Brokerage services income		11,891			12,781		-7			48,922		51,069			-4
Trading account and foreign exchange gains		16,717			16,582		1			62,044		32,547			91
Gain (loss) on bank investment securities		(6,452	)		4,219		—			18,037		(6,301	)		—
Other revenues from operations		118,238			110,970		7			469,320		451,321			4
Total other income		521,040			480,596		8			2,061,679		1,856,000			11
Other expense
Salaries and employee benefits		469,080			438,928		7			1,900,797		1,752,264			8
Equipment and net occupancy		82,892			73,519		13			324,079		298,828			8
Outside data processing and software		61,720			50,206		23			229,731		199,025			15
FDIC assessments		12,431			9,837		26			41,535		68,526			-39
Advertising and marketing		27,063			25,910		4			93,472		85,710			9
Printing, postage and supplies		9,513			8,777		8			39,893		35,658			12
Amortization of core deposit and other intangible assets		4,305			5,359		-20			19,490		24,522			-21
Other costs of operations		156,679			189,626		-17			819,685		823,529			—
Total other expense		823,683			802,162		3			3,468,682		3,288,062			5
Income before income taxes		652,190			699,394		-7			2,547,261		2,508,240			2
Applicable income taxes		159,124			153,175		4			618,112		590,160			5
Net income	$	493,066			546,219		-10	%	$	1,929,149		1,918,080			1	%

	Three months ended
	December 31,			September 30,		June 30,		March 31,		December 31,
Dollars in thousands	2019			2019		2019		2019		2018
Interest income	$	1,185,902			1,229,469		1,237,913		1,226,309		1,220,281
Interest expense		177,069			199,579		196,432		176,249		161,321
Net interest income		1,008,833			1,029,890		1,041,481		1,050,060		1,058,960
Provision for credit losses		54,000			45,000		55,000		22,000		38,000
Net interest income after provision for credit losses		954,833			984,890		986,481		1,028,060		1,020,960
Other income
Mortgage banking revenues		118,134			137,004		107,321		95,311		92,229
Service charges on deposit accounts		110,987			111,092		107,787		103,112		108,791
Trust income		151,525			143,915		144,382		132,786		135,024
Brokerage services income		11,891			12,077		12,478		12,476		12,781
Trading account and foreign exchange gains		16,717			16,072		18,453		10,802		16,582
Gain (loss) on bank investment securities		(6,452	)		3,737		8,911		11,841		4,219
Other revenues from operations		118,238			103,882		112,763		134,437		110,970
Total other income		521,040			527,779		512,095		500,765		480,596
Other expense
Salaries and employee benefits		469,080			476,780		455,737		499,200		438,928
Equipment and net occupancy		82,892			82,690		79,150		79,347		73,519
Outside data processing and software		61,720			60,360		55,234		52,417		50,206
FDIC assessments		12,431			9,906		9,772		9,426		9,837
Advertising and marketing		27,063			22,088		24,046		20,275		25,910
Printing, postage and supplies		9,513			10,201		10,324		9,855		8,777
Amortization of core deposit and other intangible assets		4,305			5,088		5,077		5,020		5,359
Other costs of operations		156,679			210,506		233,692		218,808		189,626
Total other expense		823,683			877,619		873,032		894,348		802,162
Income before income taxes		652,190			635,050		625,544		634,477		699,394
Applicable income taxes		159,124			154,969		152,284		151,735		153,175
Net income	$	493,066			480,081		473,260		482,742		546,219

	December 31
Dollars in thousands	2019		2018		Change
ASSETS
Cash and due from banks	$	1,432,805		1,605,439		-11	%
Interest-bearing deposits at banks		7,190,154		8,105,197		-11
Federal funds sold		3,500		—		—
Trading account		470,129		185,584		153
Investment securities		9,497,251		12,692,813		-25
Loans and leases:
Commercial, financial, etc.		23,838,168		22,977,976		4
Real estate - commercial		35,541,914		34,363,556		3
Real estate - consumer		16,156,094		17,154,446		-6
Consumer		15,386,693		13,970,499		10
Total loans and leases, net of unearned discount		90,922,869		88,466,477		3
Less: allowance for credit losses		1,051,071		1,019,444		3
Net loans and leases		89,871,798		87,447,033		3
Goodwill		4,593,112		4,593,112		—
Core deposit and other intangible assets		29,034		47,067		-38
Other assets		6,784,974		5,421,158		25
Total assets	$	119,872,757		120,097,403		—	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	32,396,407		32,256,668		—	%
Interest-bearing deposits		60,689,618		57,087,998		6
Deposits at Cayman Islands office		1,684,044		811,906		107
Total deposits		94,770,069		90,156,572		5
Short-term borrowings		62,363		4,398,378		-99
Accrued interest and other liabilities		2,337,490		1,637,348		43
Long-term borrowings		6,986,186		8,444,914		-17
Total liabilities		104,156,108		104,637,212		—
Shareholders' equity:
Preferred		1,250,000		1,231,500		2
Common		14,466,649		14,228,691		2
Total shareholders' equity		15,716,649		15,460,191		2
Total liabilities and shareholders' equity	$	119,872,757		120,097,403		—	%


	December 31,		September 30,		June 30,		March 31,		December 31,
Dollars in thousands	2019		2019		2019		2019		2018
ASSETS
Cash and due from banks	$	1,432,805		1,818,861		1,271,611		1,267,260		1,605,439
Interest-bearing deposits at banks		7,190,154		12,495,524		8,791,753		7,602,897		8,105,197
Federal funds sold		3,500		200		—		—		—
Trading account		470,129		614,256		479,403		276,322		185,584
Investment securities		9,497,251		10,677,583		11,580,249		12,536,840		12,692,813
Loans and leases:
Commercial, financial, etc.		23,838,168		23,201,372		23,431,408		23,090,204		22,977,976
Real estate - commercial		35,541,914		34,945,231		35,194,375		34,690,930		34,363,556
Real estate - consumer		16,156,094		16,500,955		16,693,737		16,769,933		17,154,446
Consumer		15,386,693		15,175,635		14,558,538		14,088,816		13,970,499
Total loans and leases, net of unearned discount		90,922,869		89,823,193		89,878,058		88,639,883		88,466,477
Less: allowance for credit losses		1,051,071		1,038,437		1,029,867		1,019,337		1,019,444
Net loans and leases		89,871,798		88,784,756		88,848,191		87,620,546		87,447,033
Goodwill		4,593,112		4,593,112		4,593,112		4,593,112		4,593,112
Core deposit and other intangible assets		29,034		33,339		38,428		43,947		47,067
Other assets		6,784,974		6,483,295		5,952,148		6,084,281		5,421,158
Total assets	$	119,872,757		125,500,926		121,554,895		120,025,205		120,097,403

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	32,396,407		31,766,724		30,747,946		29,966,753		32,256,668
Interest-bearing deposits		60,689,618		61,785,212		59,568,223		59,433,806		57,087,998
Deposits at Cayman Islands office		1,684,044		1,561,997		1,364,855		1,069,191		811,906
Total deposits		94,770,069		95,113,933		91,681,024		90,469,750		90,156,572
Short-term borrowings		62,363		5,513,896		4,611,390		3,602,566		4,398,378
Accrued interest and other liabilities		2,337,490		2,090,762		1,915,147		1,889,336		1,637,348
Long-term borrowings		6,986,186		7,002,524		7,655,507		8,476,024		8,444,914
Total liabilities		104,156,108		109,721,115		105,863,068		104,437,676		104,637,212
Shareholders' equity:
Preferred		1,250,000		1,250,000		1,231,500		1,231,500		1,231,500
Common		14,466,649		14,529,811		14,460,327		14,356,029		14,228,691
Total shareholders' equity		15,716,649		15,779,811		15,691,827		15,587,529		15,460,191
Total liabilities and shareholders' equity	$	119,872,757		125,500,926		121,554,895		120,025,205		120,097,403

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

	Three months ended															Change in balance						Year ended
	December 31,					December 31,					September 30,					December 31, 2019 from						December 31,										Change
Dollars in millions	2019					2018					2019					December 31,			September 30,			2019					2018					in
	Balance		Rate			Balance		Rate			Balance		Rate			2018			2019			Balance		Rate			Balance		Rate			balance
ASSETS
Interest-bearing deposits at banks	$	8,944		1.65	%		7,394		2.23	%		7,405		2.16	%		21	%		21	%	$	6,783		2.08	%		5,614		1.93	%		21	%
Federal funds sold and agreements
to resell securities		1,279		1.68			—		—			18		2.01			—			—			327		1.68			1		1.95			—
Trading account		70		4.36			56		2.65			67		.89			26			4			68		2.72			58		2.55			17
Investment securities		10,044		2.51			13,034		2.41			11,075		2.48			-23			-9			11,550		2.50			13,694		2.37			-16
Loans and leases, net of unearned
discount
Commercial, financial, etc.		23,548		4.36			22,376		4.92			23,326		4.82			5			1			23,306		4.80			21,832		4.60			7
Real estate - commercial		35,039		5.06			33,586		5.27			35,200		5.14			4			—			34,885		5.21			33,682		5.01			4
Real estate - consumer		16,330		4.15			17,421		4.31			16,673		4.20			-6			-2			16,665		4.25			18,330		4.18			-9
Consumer		15,327		5.26			13,918		5.35			14,879		5.44			10			3			14,638		5.43			13,555		5.19			8
Total loans and leases, net		90,244		4.77			87,301		5.02			90,078		4.96			3			—			89,494		4.99			87,399		4.79			2
Total earning assets		110,581		4.27			107,785		4.51			108,643		4.51			3			2			108,222		4.53			106,766		4.33			1
Goodwill		4,593					4,593					4,593					—			—			4,593					4,593					—
Core deposit and other intangible
assets		31					50					36					-37			-13			38					59					-35
Other assets		7,349					5,371					7,116					37			3			6,731					5,541					21
Total assets	$	122,554					117,799					120,388					4	%		2	%	$	119,584					116,959					2	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking
deposits	$	57,103		.66			51,820		.54			55,680		.75			10	%		3	%	$	54,610		.67			52,102		.41			5	%
Time deposits		6,015		1.58			5,960		1.07			6,343		1.59			1			-5			6,309		1.51			6,025		.85			5
Deposits at Cayman Islands
office		1,716		1.14			693		1.81			1,522		1.62			148			13			1,367		1.60			394		1.43			247
Total interest-bearing
deposits		64,834		.76			58,473		.61			63,545		.85			11			2			62,286		.78			58,521		.47			6
Short-term borrowings		675		1.86			315		1.91			1,212		2.28			114			-44			1,059		2.34			331		1.63			220
Long-term borrowings		6,941		2.83			9,239		3.03			7,121		3.13			-25			-3			7,703		3.11			8,845		2.81			-13
Total interest-bearing liabilities		72,450		.97			68,027		.94			71,878		1.10			7			1			71,048		1.05			67,697		.78			5
Noninterest-bearing deposits		32,069					32,631					30,550					-2			5			30,763					31,893					-4
Other liabilities		2,203					1,752					2,123					26			4			2,055					1,739					18
Total liabilities		106,722					102,410					104,551					4			2			103,866					101,329					3
Shareholders' equity		15,832					15,389					15,837					3			—			15,718					15,630					1
Total liabilities and
shareholders' equity	$	122,554					117,799					120,388					4	%		2	%	$	119,584					116,959					2	%

Net interest spread				3.30					3.57					3.41											3.48					3.55
Contribution of interest-free funds				.34					.35					.37											.36					.28
Net interest margin				3.64	%				3.92	%				3.78	%										3.84	%				3.83	%

	Three months ended						Year ended
	December 31						December 31
	2019			2018			2019			2018
Income statement data
In thousands, except per share
Net income
Net income	$	493,066			546,219			1,929,149			1,918,080
Amortization of core deposit and other intangible assets (1)		3,171			3,950			14,359			18,075
Net operating income	$	496,237			550,169			1,943,508			1,936,155

Earnings per common share
Diluted earnings per common share	$	3.60			3.76			13.75			12.74
Amortization of core deposit and other intangible assets (1)		.02			.03			.11			.12
Diluted net operating earnings per common share	$	3.62			3.79			13.86			12.86

Other expense
Other expense	$	823,683			802,162			3,468,682			3,288,062
Amortization of core deposit and other intangible assets		(4,305	)		(5,359	)		(19,490	)		(24,522	)
Noninterest operating expense	$	819,378			796,803			3,449,192			3,263,540
Efficiency ratio
Noninterest operating expense (numerator)	$	819,378			796,803			3,449,192			3,263,540
Taxable-equivalent net interest income		1,014,225			1,064,918			4,153,127			4,094,199
Other income		521,040			480,596			2,061,679			1,856,000
Less: Gain (loss) on bank investment securities		(6,452	)		4,219			18,037			(6,301	)
Denominator	$	1,541,717			1,541,295			6,196,769			5,956,500
Efficiency ratio		53.15	%		51.70	%		55.66	%		54.79	%
Balance sheet data
In millions
Average assets
Average assets	$	122,554			117,799			119,584			116,959
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(31	)		(50	)		(38	)		(59	)
Deferred taxes		8			13			10			16
Average tangible assets	$	117,938			113,169			114,963			112,323
Average common equity
Average total equity	$	15,832			15,389			15,718			15,630
Preferred stock		(1,250	)		(1,232	)		(1,272	)		(1,232	)
Average common equity		14,582			14,157			14,446			14,398
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(31	)		(50	)		(38	)		(59	)
Deferred taxes		8			13			10			16
Average tangible common equity	$	9,966			9,527			9,825			9,762
At end of quarter
Total assets
Total assets	$	119,873			120,097
Goodwill		(4,593	)		(4,593	)
Core deposit and other intangible assets		(29	)		(47	)
Deferred taxes		7			13
Total tangible assets	$	115,258			115,470
Total common equity
Total equity	$	15,717			15,460
Preferred stock		(1,250	)		(1,232	)
Undeclared dividends - cumulative preferred stock		—			(3	)
Common equity, net of undeclared cumulative preferred dividends		14,467			14,225
Goodwill		(4,593	)		(4,593	)
Core deposit and other intangible assets		(29	)		(47	)
Deferred taxes		7			13
Total tangible common equity	$	9,852			9,598

	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2019			2019			2019			2019			2018
Income statement data
In thousands, except per share
Net income
Net income	$	493,066			480,081			473,260			482,742			546,219
Amortization of core deposit and other intangible assets (1)		3,171			3,749			3,741			3,698			3,950
Net operating income	$	496,237			483,830			477,001			486,440			550,169

Earnings per common share
Diluted earnings per common share	$	3.60			3.47			3.34			3.35			3.76
Amortization of core deposit and other intangible assets (1)		.02			.03			.03			.03			.03
Diluted net operating earnings per common share	$	3.62			3.50			3.37			3.38			3.79

Other expense
Other expense	$	823,683			877,619			873,032			894,348			802,162
Amortization of core deposit and other intangible assets		(4,305	)		(5,088	)		(5,077	)		(5,020	)		(5,359	)
Noninterest operating expense	$	819,378			872,531			867,955			889,328			796,803
Efficiency ratio
Noninterest operating expense (numerator)	$	819,378			872,531			867,955			889,328			796,803
Taxable-equivalent net interest income		1,014,225			1,035,469			1,047,406			1,056,027			1,064,918
Other income		521,040			527,779			512,095			500,765			480,596
Less: Gain (loss) on bank investment securities		(6,452	)		3,737			8,911			11,841			4,219
Denominator	$	1,541,717			1,559,511			1,550,590			1,544,951			1,541,295
Efficiency ratio		53.15	%		55.95	%		55.98	%		57.56	%		51.70	%
Balance sheet data
In millions
Average assets
Average assets	$	122,554			120,388			118,487			116,839			117,799
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(31	)		(36	)		(41	)		(45	)		(50	)
Deferred taxes		8			10			11			12			13
Average tangible assets	$	117,938			115,769			113,864			112,213			113,169
Average common equity
Average total equity	$	15,832			15,837			15,630			15,569			15,389
Preferred stock		(1,250	)		(1,373	)		(1,232	)		(1,232	)		(1,232	)
Average common equity		14,582			14,464			14,398			14,337			14,157
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(31	)		(36	)		(41	)		(45	)		(50	)
Deferred taxes		8			10			11			12			13
Average tangible common equity	$	9,966			9,845			9,775			9,711			9,527
At end of quarter
Total assets
Total assets	$	119,873			125,501			121,555			120,025			120,097
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(29	)		(33	)		(38	)		(44	)		(47	)
Deferred taxes		7			8			10			12			13
Total tangible assets	$	115,258			120,883			116,934			115,400			115,470
Total common equity
Total equity	$	15,717			15,780			15,692			15,588			15,460
Preferred stock		(1,250	)		(1,250	)		(1,232	)		(1,232	)		(1,232	)
Undeclared dividends - cumulative preferred stock		—			—			(3	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		14,467			14,530			14,457			14,353			14,225
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(29	)		(33	)		(38	)		(44	)		(47	)
Deferred taxes		7			8			10			12			13
Total tangible common equity	$	9,852			9,912			9,836			9,728			9,598

Earnings Highlights

										Change 4Q19 vs.
($ in millions, except per share data)	4Q19			4Q18			3Q19			4Q18			3Q19

Net income	$	493		$	546		$	480			-10	%		3	%
Net income available to common shareholders ̶ diluted	$	473		$	525		$	461			-10	%		3	%
Diluted earnings per common share	$	3.60		$	3.76		$	3.47			-4	%		4	%
Annualized return on average assets		1.60	%		1.84	%		1.58	%
Annualized return on average common equity		12.95	%		14.80	%		12.73	%


Taxable-equivalent Net Interest Income

										Change 4Q19 vs.
($ in millions)	4Q19			4Q18			3Q19			4Q18			3Q19

Average earning assets	$	110,581		$	107,785		$	108,643			3	%		2	%
Net interest income ̶ taxable-equivalent	$	1,014		$	1,065		$	1,035			-5	%		-2	%
Net interest margin		3.64	%		3.92	%		3.78	%

Asset Quality Metrics
										Change 4Q19 vs.
($ in millions)	4Q19			4Q18			3Q19			4Q18			3Q19

At end of quarter
Nonaccrual loans	$	963		$	894		$	1,005			8	%		-4	%
Real estate and other foreclosed assets	$	86		$	78		$	80			9	%		7	%
Total nonperforming assets	$	1,049		$	972		$	1,085			8	%		-3	%
Accruing loans past due 90 days or more (1)	$	519		$	223		$	461			133	%		12	%
Nonaccrual loans as % of loans outstanding		1.06	%		1.01	%		1.12	%

Allowance for credit losses	$	1,051		$	1,019		$	1,038			3	%		1	%
Allowance for credit losses as % of loans outstanding		1.16	%		1.15	%		1.16	%

For the period
Provision for credit losses	$	54		$	38		$	45			42	%		20	%
Net charge-offs	$	41		$	38		$	36			9	%		14	%
Net charge-offs as % of average loans (annualized)		.18	%		.17	%		.16	%

Noninterest Income

								Change 4Q19 vs.
($ in millions)	4Q19			4Q18		3Q19		4Q18			3Q19

Mortgage banking revenues	$	118		$	92	$	137		28	%		-14	%
Service charges on deposit accounts		111			109		111		2	%		—
Trust income		151			135		144		12	%		5	%
Brokerage services income		12			13		12		-7	%		-2	%
Trading account and foreign exchange gains		17			17		16		1	%		4	%
Gain (loss) on bank investment securities		(6	)		4		4		—			—
Other revenues from operations		118			111		104		7	%		14	%
Total	$	521		$	481	$	528		8	%		-1	%

Noninterest Expense

							Change 4Q19 vs.
($ in millions)	4Q19		4Q18		3Q19		4Q18			3Q19

Salaries and employee benefits	$	469	$	439	$	477		7	%		-2	%
Equipment and net occupancy		83		74		83		13	%		—
Outside data processing and software		62		50		60		23	%		2	%
FDIC assessments		12		10		10		26	%		25	%
Advertising and marketing		27		26		22		4	%		23	%
Printing, postage and supplies		10		9		10		8	%		-7	%
Amortization of core deposit and other intangible assets		4		5		5		-20	%		-15	%
Other costs of operations		157		189		211		-17	%		-26	%
Total	$	824	$	802	$	878		3	%		-6	%