BUFFALO, N.Y., April 20, 2022 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:MTB) today reported its results of operations for the quarter ended March 31, 2022.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $2.62 in the first quarter of 2022, compared with $3.33 in the year-earlier quarter and $3.37 in the fourth quarter of 2021. GAAP-basis net income was $362 million in the recent quarter, $447 million in the first quarter of 2021 and $458 million in the final 2021 quarter. GAAP-basis net income in the initial quarter of 2022 expressed as an annualized rate of return on average assets and average common shareholders' equity was .97% and 8.55%, respectively, compared with 1.22% and 11.57%, respectively, in the similar 2021 period and 1.15% and 10.91%, respectively, in the fourth quarter of 2021. Included in noninterest expenses in the recent quarter were merger-related expenses associated with M&T's acquisition of People's United Financial, Inc. ("People's United") of $17 million ($13 million after-tax effect, or $.10 of diluted earnings per common share), compared with $10 million ($8 million after-tax effect, or $.06 of diluted earnings per common share) in the year-earlier quarter and $21 million ($16 million after-tax effect, or $.12 of diluted earnings per share) in the fourth quarter of 2021.

On March 4, 2022, M&T received Federal Reserve approval to acquire People's United and on April 1, 2022 closed the acquisition. Pursuant to the terms of the merger agreement, People's United shareholders received consideration valued at .118 of an M&T common share in exchange for each common share of People's United. Additionally, People's United outstanding preferred stock was converted into shares of Series H preferred stock of M&T (NYSE:MTBPRH). The purchase price totaled approximately $8.4 billion (with the price based on M&T's close price of $164.66 per share as of April 1, 2022). Excluding the impact of acquisition accounting adjustments, as of March 31, 2022 People's United reported total assets of approximately $63.0 billion, total liabilities of approximately $55.5 billion and total shareholders' equity of approximately $7.5 billion.

Darren J. King, Chief Financial Officer, commented on M&T's results, "The first quarter results continue to reflect M&T's strong credit underwriting as evidenced by historically low charge-offs for the quarter and a stable allowance for credit losses. Revenues were in line with expectations and expenses, which include the usual seasonal increase in salaries and employee benefits expense, were prudently managed. Our capital position remains very strong with an estimated Common Equity Tier 1 ratio of 11.6%, compared with 11.4% at last year's end. We were excited to close the People's United merger and look forward to working together with our new colleagues to expand our premier banking franchise."

Earnings Highlights

										Change 1Q22 vs.
($ in millions, except per share data)	1Q22			1Q21			4Q21			1Q21			4Q21

Net income	$	362		$	447		$	458			-19	%		-21	%
Net income available to common shareholders ̶ diluted	$	340		$	428		$	434			-21	%		-22	%
Diluted earnings per common share	$	2.62		$	3.33		$	3.37			-21	%		-22	%
Annualized return on average assets		.97	%		1.22	%		1.15	%
Annualized return on average common equity		8.55	%		11.57	%		10.91	%

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 and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), 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 $2.73 in the first quarter of 2022, compared with $3.41 in the year-earlier quarter and $3.50 in the fourth quarter of 2021. Net operating income aggregated $376 million in the recent quarter, $457 million in the first quarter of 2021 and $475 million in 2021's fourth quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the first quarter of 2022 was 1.04% and 12.44%, respectively, 1.29% and 17.05%, respectively, in the similar quarter of 2021 and 1.23% and 15.98%, respectively, in the fourth quarter of 2021.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $907 million in the recent quarter, compared with $985 million in the first quarter of 2021 and $937 million in the fourth quarter of 2021. The decrease compared with the earlier quarters reflects lower outstanding average loan balances, including significantly reduced balances of loans made under the Paycheck Protection Program ("PPP"). Two fewer days in the recent quarter also contributed to the reduced net interest income as compared with 2021's fourth quarter. Average loans outstanding and the net interest margin were $92.2 billion and 2.65%, respectively, in the first quarter of 2022, compared with $99.4 billion and 2.97%, respectively, in the year earlier quarter and $93.3 billion and 2.58%, respectively, in the fourth quarter of 2021. Outstanding PPP loans averaged $870 million in 2022's first quarter, compared with $5.73 billion in the first quarter of 2021 and $1.65 billion in the fourth quarter of 2021.


Taxable-equivalent Net Interest Income

										Change 1Q22 vs.
($ in millions)	1Q22			1Q21			4Q21			1Q21			4Q21

Average earning assets	$	138,624		$	134,355		$	144,420			3	%		-4	%
Net interest income ̶ taxable-equivalent	$	907		$	985		$	937			-8	%		-3	%
Net interest margin		2.65	%		2.97	%		2.58	%

Provision for Credit Losses/Asset Quality. The provision for credit losses was $10 million in the recent quarter, compared with provision recaptures of $25 million and $15 million recorded in the first and fourth quarters of 2021, respectively. Net loan charge-offs were $7 million in the first quarter of 2022, greatly improved from $75 million in the first quarter of 2021 and $31 million in 2021's final quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .03% and .31% in the first quarters of 2022 and 2021, respectively, and .13% in the fourth quarter of 2021.

Loans classified as nonaccrual totaled $2.13 billion at March 31, 2022, up from $1.96 billion at March 31, 2021 and $2.06 billion at December 31, 2021. Nonaccrual loans a percentage of total loans were 2.32% at the recent quarter-end, compared with 1.97% a year earlier and 2.22% at December 31, 2021. Assets taken in foreclosure of defaulted loans were $24 million at each of March 31, 2022 and December 31, 2021, compared with $30 million at March 31, 2021.

Allowance for Credit Losses. M&T regularly performs comprehensive analyses of its loan portfolios and assesses forecasted economic conditions for purposes of determining the adequacy of the allowance for credit losses. As a result of those procedures, the allowance for credit losses totaled $1.47 billion or 1.60% of loans outstanding at March 31, 2022, compared with $1.64 billion or 1.65% at March 31, 2021 and $1.47 billion or 1.58% at December 31, 2021. The allowance at March 31, 2022, March 31, 2021, and December 31, 2021 represented 1.61%, 1.75%, and 1.60%, respectively, of total loans on those dates, excluding outstanding balances of PPP loans.

Asset Quality Metrics
										Change 1Q22 vs.
($ in millions)	1Q22			1Q21			4Q21			1Q21			4Q21

At end of quarter
Nonaccrual loans	$	2,134		$	1,957		$	2,060			9	%		4	%
Real estate and other foreclosed assets	$	24		$	30		$	24			-21	%		-2	%
Total nonperforming assets	$	2,158		$	1,987		$	2,084			9	%		4	%
Accruing loans past due 90 days or more (1)	$	777		$	1,085		$	963			-28	%		-19	%
Nonaccrual loans as % of loans outstanding		2.32	%		1.97	%		2.22	%

Allowance for credit losses	$	1,472		$	1,636		$	1,469			-10	%		—
Allowance for credit losses as % of loans outstanding		1.60	%		1.65	%		1.58	%

For the period
Provision for credit losses	$	10		$	(25)		$	(15)			—			—
Net charge-offs	$	7		$	75		$	31			-91	%		-78	%
Net charge-offs as % of average loans (annualized)		.03	%		.31	%		.13	%
____________________
(1) Predominantly government-guaranteed residential real estate loans.

Noninterest Income and Expense. Noninterest income totaled $541 million in the first quarter of 2022, up from $506 million in the year-earlier quarter. That increase was reflective of higher trust income, service charges on deposit accounts, brokerage services income, as well as a $30 million distribution from Bayview Lending Group LLC, partially offset by decreased mortgage banking revenues that reflect the impact of M&T's decision to retain recently originated mortgage loans in portfolio rather than sell such loans. Noninterest income was $579 million in last year's fourth quarter. The comparative decline in the recent quarter was predominantly the result of the decreased mortgage banking revenues.

Noninterest Income

							Change 1Q22 vs.
($ in millions)	1Q22		1Q21		4Q21		1Q21			4Q21

Mortgage banking revenues	$	109	$	139	$	139		-21	%		-22	%
Service charges on deposit accounts		102		93		105		9	%		-4	%
Trust income		169		156		169		8	%	—
Brokerage services income		20		13		19		54	%		7	%
Trading account and foreign exchange gains		5		6		6		-15	%		-11	%
Gain (loss) on bank investment securities		(1)		(12)		2	—			—
Other revenues from operations		137		111		139		23	%		-2	%
Total	$	541	$	506	$	579		7	%		-7	%

Noninterest expense totaled $960 million in the first quarter of 2022, compared with $919 million in the similar quarter of 2021 and $928 million in the fourth quarter of 2021. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $941 million in the recent quarter, $907 million in the first quarter of 2021 and $904 million in 2021's fourth quarter. Factors contributing to the increase in noninterest operating expenses in the recent quarter as compared with the year-earlier quarter were higher costs for salaries and employee benefits (including increased incentive compensation expenses), outside data processing and software, offset by lower pension-related expenses. As compared with the fourth quarter of 2021, the increased level of noninterest operating expenses in the recent quarter resulted largely from seasonally higher salaries and employee benefits, including increased stock-based compensation, payroll-related taxes and other employee benefits, partially offset by lower pension-related and professional services costs.

Noninterest Expense

							Change 1Q22 vs.
($ in millions)	1Q22		1Q21		4Q21		1Q21			4Q21

Salaries and employee benefits	$	578	$	541	$	515		7	%		12	%
Equipment and net occupancy		86		82		83		4	%		4	%
Outside data processing and software		80		66		79		21	%		1	%
FDIC assessments		16		14		19		10	%		-17	%
Advertising and marketing		16		15		21		10	%		-25	%
Printing, postage and supplies		10		9		8		9	%		25	%
Amortization of core deposit and other intangible assets		1		3		2		-54	%		-36	%
Other costs of operations		173		189		201		-8	%		-14	%
Total	$	960	$	919	$	928		4	%		3	%

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 64.9% in the first quarter of 2022, 60.3% in the year-earlier quarter and 59.7% in the fourth quarter of 2021.

Balance Sheet. M&T had total assets of $149.9 billion at March 31, 2022, compared with $150.5 billion and $155.1 billion at March 31, 2021 and December 31, 2021, respectively. Loans and leases, net of unearned discount, were $91.8 billion at March 31, 2022, compared with $99.3 billion at March 31, 2021 and $92.9 billion at December 31, 2021. The lower level of loans and leases at the recent quarter-end as compared with the earlier dates noted is largely a reflection of declines in balances of PPP loans outstanding. PPP loans totaled $592 million at March 31, 2022, down from $6.2 billion at March 31, 2021 and $1.2 billion at December 31, 2021. Total deposits were $126.3 billion at the recent quarter-end, $128.5 billion a year earlier and $131.5 billion at December 31, 2021.

Total shareholders' equity was $17.9 billion at each of March 31, 2022 and December 31, 2021, or 11.93% and 11.54% of total assets, respectively, and $16.4 billion, or 10.93% at March 31, 2021. Common shareholders' equity was $16.1 billion, or $124.93 per share, at March 31, 2022, compared with $15.2 billion, or $118.12 per share, a year-earlier and $16.2 billion, or $125.51 per share, at December 31, 2021. Tangible equity per common share was $89.33 at March 31, 2022, $82.35 at March 31, 2021 and $89.80 at December 31, 2021. 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 11.6% at March 31, 2022, up from 11.4% three months earlier and 10.4% at March 31, 2021.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (866) 342-8591. International participants, using any applicable international calling codes, may dial (203) 518-9713. Callers should reference M&T Bank Corporation or the conference ID #MTBQ122. 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 Wednesday April 27, 2022 by calling (800) 723-0389, or (402) 220-2647 for international participants. No conference ID is required. 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.

About M&T. M&T is a financial holding company headquartered in Buffalo, New York. On April 1, M&T successfully completed the acquisition of People's United. The combined company employs more than 22,000 people and has a network of over 1,000 branches and 2,200 ATMs. M&T's principal banking subsidiary, M&T Bank, operates banking offices in 12 states across the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies in select markets in the U.S. and abroad and by M&T Bank. For more information on M&T Bank, visit www.mtb.com.

In February, M&T Bank received 29 regional and national Greenwich Excellence awards and six Greenwich Best Brand awards, continuing its streak as one of the nation's highest rated banks for the customer experience it provides to businesses. M&T Bank earned the most awards of any bank in the country for small business banking and its combined total across small business and middle market categories also led the nation.

Forward-Looking Statements. This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.

Statements regarding the potential effects of the war in Ukraine, the COVID-19 pandemic and other notable national and global current events on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. 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. Also as described further below, statements regarding M&T's expectations or predictions regarding the acquisition of People's United are forward-looking statements, including statements regarding the expected financial results, prospects, targets, goals and outlook.

Future factors include the impact of the People's United transaction (as described in the next paragraph); the impact of the war in Ukraine; the impact of the COVID-19 pandemic; economic conditions including inflation; 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 or regulations affecting the financial services industry and/or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and 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 and services; containing costs and expenses; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; 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.

In addition, future factors related to the acquisition of People's United include, among others: the outcome of any legal proceedings that may be instituted against M&T; the possibility that the anticipated benefits of the transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where M&T does business; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships; M&T's success in executing its business plans and strategies and managing the risks involved in the foregoing; the business, economic and political conditions in the markets in which M&T operates; and other factors that may affect future results of M&T.

Future factors related to the acquisition also include risks, such as, among others: that there could be an adverse effect on M&T's ability to retain customers and retain or hire key personnel and maintain relationships with customers; that integration efforts may be more difficult or time-consuming than anticipated, including in areas such as sales force, cost containment, asset realization, systems integration and other key strategies; that profitability following the combination may be lower than expected including for possible reasons such as lower than expected revenues or higher or unexpected costs, charges or expenses resulting from the transaction; unforeseen risks relating to liabilities of M&T or People's United that may exist; and other factors that may affect future results of M&T.

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.

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year-ended December 31, 2021, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date made and M&T does not assume any duty and does not undertake to update forward-looking statements.

INVESTOR CONTACT:

Brian Klock

(716) 842-5138

MEDIA CONTACT:

Maya Dillon

(646) 735-1958

Financial Highlights

	Three months ended
	March 31
Amounts in thousands, except per share	2022			2021			Change
Performance
Net income	$	362,174			447,249			-19	%
Net income available to common shareholders		339,590			428,093			-21	%
Per common share:
Basic earnings	$	2.63			3.33			-21	%
Diluted earnings		2.62			3.33			-21	%
Cash dividends	$	1.20			1.10			9	%
Common shares outstanding:
Average - diluted (1)		129,416			128,669			1	%
Period end (2)		129,080			128,658		—
Return on (annualized):
Average total assets		.97	%		1.22	%
Average common shareholders' equity		8.55	%		11.57	%
Taxable-equivalent net interest income	$	907,408			985,128			-8	%
Yield on average earning assets		2.72	%		3.08	%
Cost of interest-bearing liabilities		.13	%		.18	%
Net interest spread		2.59	%		2.90	%
Contribution of interest-free funds		.06	%		.07	%
Net interest margin		2.65	%		2.97	%
Net charge-offs to average total net loans (annualized)		.03	%		.31	%
Net operating results (3)
Net operating income	$	375,999			457,372			-18	%
Diluted net operating earnings per common share		2.73			3.41			-20	%
Return on (annualized):
Average tangible assets		1.04	%		1.29	%
Average tangible common equity		12.44	%		17.05	%
Efficiency ratio		64.9	%		60.3	%

	At March 31
Loan quality	2022			2021			Change
Nonaccrual loans	$	2,134,231			1,957,106			9	%
Real estate and other foreclosed assets		23,524			29,797			-21	%
Total nonperforming assets	$	2,157,755			1,986,903			9	%
Accruing loans past due 90 days or more (4)	$	776,751			1,084,553			-28	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	46,151			51,668			-11	%
Accruing loans past due 90 days or more		689,831			1,044,599			-34	%
Renegotiated loans	$	242,108			242,121		—
Nonaccrual loans to total net loans		2.32	%		1.97	%
Allowance for credit losses to total loans		1.60	%		1.65	%

____________________
(1)	Includes common stock equivalents.
(2)	Includes common stock issuable under deferred compensation plans.
(3)	Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4)	Predominantly residential real estate loans.

Financial Highlights, Five Quarter Trend

	Three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Amounts in thousands, except per share	2022			2021			2021			2021			2021
Performance
Net income	$	362,174			457,968			495,460			458,069			447,249
Net income available to common shareholders		339,590			434,171			475,961			438,759			428,093
Per common share:
Basic earnings	$	2.63			3.37			3.70			3.41			3.33
Diluted earnings		2.62			3.37			3.69			3.41			3.33
Cash dividends	$	1.20			1.20			1.10			1.10			1.10
Common shares outstanding:
Average - diluted (1)		129,416			128,888			128,844			128,842			128,669
Period end (2)		129,080			128,705			128,699			128,686			128,658
Return on (annualized):
Average total assets		.97	%		1.15	%		1.28	%		1.22	%		1.22	%
Average common shareholders' equity		8.55	%		10.91	%		12.16	%		11.55	%		11.57	%
Taxable-equivalent net interest income	$	907,408			937,356			970,953			946,072			985,128
Yield on average earning assets		2.72	%		2.64	%		2.82	%		2.85	%		3.08	%
Cost of interest-bearing liabilities		.13	%		.12	%		.14	%		.14	%		.18	%
Net interest spread		2.59	%		2.52	%		2.68	%		2.71	%		2.90	%
Contribution of interest-free funds		.06	%		.06	%		.06	%		.06	%		.07	%
Net interest margin		2.65	%		2.58	%		2.74	%		2.77	%		2.97	%
Net charge-offs to average total net loans (annualized)		.03	%		.13	%		.17	%		.19	%		.31	%
Net operating results (3)
Net operating income	$	375,999			475,477			504,030			462,959			457,372
Diluted net operating earnings per common share		2.73			3.50			3.76			3.45			3.41
Return on (annualized):
Average tangible assets		1.04	%		1.23	%		1.34	%		1.27	%		1.29	%
Average tangible common equity		12.44	%		15.98	%		17.54	%		16.68	%		17.05	%
Efficiency ratio		64.9	%		59.7	%		57.7	%		58.4	%		60.3	%

	March 31,			December 31,			September 30,			June 30,			March 31,
Loan quality	2022			2021			2021			2021			2021
Nonaccrual loans	$	2,134,231			2,060,083			2,242,263			2,242,057			1,957,106
Real estate and other foreclosed assets		23,524			23,901			24,786			27,902			29,797
Total nonperforming assets	$	2,157,755			2,083,984			2,267,049			2,269,959			1,986,903
Accruing loans past due 90 days or more (4)	$	776,751			963,399			1,026,080			1,077,227			1,084,553
Government guaranteed loans included in totals above:
Nonaccrual loans	$	46,151			51,429			47,358			49,796			51,668
Accruing loans past due 90 days or more		689,831			927,788			947,091			1,029,331			1,044,599
Renegotiated loans	$	242,108			230,408			242,955			236,377			242,121
Nonaccrual loans to total net loans		2.32	%		2.22	%		2.40	%		2.31	%		1.97	%
Allowance for credit losses to total loans		1.60	%		1.58	%		1.62	%		1.62	%		1.65	%

____________________
(1)	Includes common stock equivalents.
(2)	Includes common stock issuable under deferred compensation plans.
(3)	Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4)	Predominantly residential real estate loans.

Condensed Consolidated Statement of Income

	Three months ended
	March 31
Dollars in thousands	2022		2021		Change
Interest income	$	928,256		1,016,962		-9	%
Interest expense		24,082		35,567		-32
Net interest income		904,174		981,395		-8
Provision for credit losses		10,000		(25,000)	—
Net interest income after provision for credit losses		894,174		1,006,395		-11
Other income
Mortgage banking revenues		109,148		138,754		-21
Service charges on deposit accounts		101,507		92,777		9
Trust income		169,213		156,022		8
Brokerage services income		20,190		13,113		54
Trading account and foreign exchange gains		5,369		6,284		-15
Gain (loss) on bank investment securities		(743)		(12,282)	—
Other revenues from operations		136,203		110,930		23
Total other income		540,887		505,598		7
Other expense
Salaries and employee benefits		577,520		541,078		7
Equipment and net occupancy		85,812		82,471		4
Outside data processing and software		79,719		65,751		21
FDIC assessments		15,576		14,188		10
Advertising and marketing		16,024		14,628		10
Printing, postage and supplies		10,150		9,317		9
Amortization of core deposit and other intangible assets		1,256		2,738		-54
Other costs of operations		173,684		189,273		-8
Total other expense		959,741		919,444		4
Income before income taxes		475,320		592,549		-20
Applicable income taxes		113,146		145,300		-22
Net income	$	362,174		447,249		-19	%

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	March 31,		December 31,		September 30,		June 30,		March 31,
Dollars in thousands	2022		2021		2021		2021		2021
Interest income	$	928,256		958,518		992,946		970,358		1,016,962
Interest expense		24,082		24,725		25,696		28,018		35,567
Net interest income		904,174		933,793		967,250		942,340		981,395
Provision for credit losses		10,000		(15,000)		(20,000)		(15,000)		(25,000)
Net interest income after provision for credit losses		894,174		948,793		987,250		957,340		1,006,395
Other income
Mortgage banking revenues		109,148		139,267		159,995		133,313		138,754
Service charges on deposit accounts		101,507		105,392		105,426		98,518		92,777
Trust income		169,213		168,827		156,876		162,991		156,022
Brokerage services income		20,190		18,923		20,490		10,265		13,113
Trading account and foreign exchange gains		5,369		6,027		5,563		6,502		6,284
Gain (loss) on bank investment securities		(743)		1,426		291		(10,655)		(12,282)
Other revenues from operations		136,203		138,775		120,485		112,699		110,930
Total other income		540,887		578,637		569,126		513,633		505,598
Other expense
Salaries and employee benefits		577,520		515,043		510,422		479,134		541,078
Equipment and net occupancy		85,812		82,641		80,738		80,848		82,471
Outside data processing and software		79,719		78,814		72,782		74,492		65,751
FDIC assessments		15,576		18,830		18,810		17,876		14,188
Advertising and marketing		16,024		21,228		15,208		13,364		14,628
Printing, postage and supplies		10,150		8,140		7,917		11,133		9,317
Amortization of core deposit and other intangible assets		1,256		1,954		2,738		2,737		2,738
Other costs of operations		173,684		200,850		190,719		185,761		189,273
Total other expense		959,741		927,500		899,334		865,345		919,444
Income before income taxes		475,320		599,930		657,042		605,628		592,549
Applicable income taxes		113,146		141,962		161,582		147,559		145,300
Net income	$	362,174		457,968		495,460		458,069		447,249

Condensed Consolidated Balance Sheet

	March 31
Dollars in thousands	2022		2021		Change
ASSETS
Cash and due from banks	$	1,411,460		1,258,989		12	%
Interest-bearing deposits at banks		36,025,382		31,407,227		15
Federal funds sold		—		1,000		-100
Trading account		197,558		687,359		-71
Investment securities		9,356,832		6,610,667		42
Loans and leases:
Commercial, financial, etc.		23,496,017		27,811,190		-16
Real estate - commercial		34,553,558		37,425,974		-8
Real estate - consumer		15,595,879		17,349,683		-10
Consumer		18,162,938		16,712,233		9
Total loans and leases, net of unearned discount		91,808,392		99,299,080		-8
Less: allowance for credit losses		1,472,359		1,636,206		-10
Net loans and leases		90,336,033		97,662,874		-8
Goodwill		4,593,112		4,593,112		—
Core deposit and other intangible assets		2,742		11,427		-76
Other assets		7,940,433		8,248,405		-4
Total assets	$	149,863,552		150,481,060		—	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	58,520,366		53,641,419		9	%
Interest-bearing deposits		67,798,347		74,193,255		-9
Deposits at Cayman Islands office		—		641,691		-100
Total deposits		126,318,713		128,476,365		-2
Short-term borrowings		50,307		58,957		-15
Accrued interest and other liabilities		2,174,925		2,000,727		9
Long-term borrowings		3,443,587		3,498,503		-2
Total liabilities		131,987,532		134,034,552		-2
Shareholders' equity:
Preferred		1,750,000		1,250,000		40
Common		16,126,020		15,196,508		6
Total shareholders' equity		17,876,020		16,446,508		9
Total liabilities and shareholders' equity	$	149,863,552		150,481,060		—	%

Condensed Consolidated Balance Sheet, Five Quarter Trend

	March 31,		December 31,		September 30,		June 30,		March 31,
Dollars in thousands	2022		2021		2021		2021		2021
ASSETS
Cash and due from banks	$	1,411,460		1,337,577		1,479,712		1,410,468		1,258,989
Interest-bearing deposits at banks		36,025,382		41,872,304		38,445,788		33,864,824		31,407,227
Federal funds sold		—		—		—		—		1,000
Trading account		197,558		468,031		624,556		712,558		687,359
Investment securities		9,356,832		7,155,860		6,447,622		6,143,177		6,610,667
Loans and leases:
Commercial, financial, etc.		23,496,017		23,473,324		22,514,940		25,409,291		27,811,190
Real estate - commercial		34,553,558		35,389,730		37,023,952		37,558,775		37,425,974
Real estate - consumer		15,595,879		16,074,445		16,209,354		16,704,951		17,349,683
Consumer		18,162,938		17,974,953		17,834,648		17,440,415		16,712,233
Total loans and leases, net of unearned discount		91,808,392		92,912,452		93,582,894		97,113,432		99,299,080
Less: allowance for credit losses		1,472,359		1,469,226		1,515,024		1,575,128		1,636,206
Net loans and leases		90,336,033		91,443,226		92,067,870		95,538,304		97,662,874
Goodwill		4,593,112		4,593,112		4,593,112