BUFFALO, N.Y., Oct. 20, 2021 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:MTB) today reported its results of operations for the quarter ended September 30, 2021.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $3.69 in the third quarter of 2021, up from $2.75 in the year-earlier quarter and $3.41 in the second quarter of 2021. GAAP-basis net income was $495 million in the recent quarter, $372 million in the third quarter of 2020 and $458 million in the second 2021 quarter. GAAP-basis net income for the third quarter of 2021 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.28% and 12.16%, respectively, improved from 1.06% and 9.53%, respectively, in the similar 2020 period and 1.22% and 11.55%, respectively, in the second quarter of 2021. Included in noninterest expenses in the recent quarter were merger-related expenses associated with M&T's proposed acquisition of People's United Financial, Inc. of $9 million ($7 million after tax-effect, or $.05 of diluted earnings per common share), compared with $4 million ($3 million after tax-effect, or $.02 of diluted earnings per common share) in the second quarter of 2021. There were no merger-related expenses in the third quarter of 2020.

Darren J. King, Executive Vice President and Chief Financial Officer, commented on M&T's third quarter results, "Results in the recent quarter reflect the strength of M&T's diversified business model. Fee income was robust, driven by strong mortgage banking, trust and brokerage, and other payments revenue relative to the year-earlier and immediately preceding quarters. Higher expense levels, notably incentive compensation and other professional services costs, were largely associated with the increased revenue but also reflect a reversion to more normal levels. Our balance sheet remains strong, as evidenced by a Common Equity Tier 1 Capital Ratio of 11.1% at September 30, 2021, improved from 10.7% at the end of the second quarter."

Earnings Highlights

										Change 3Q21 vs.
($ in millions, except per share data)	3Q21			3Q20			2Q21			3Q20			2Q21

Net income	$	495		$	372		$	458			33	%		8	%
Net income available to common shareholders ̶ diluted	$	476		$	353		$	439			35	%		8	%
Diluted earnings per common share	$	3.69		$	2.75		$	3.41			34	%		8	%
Annualized return on average assets		1.28	%		1.06	%		1.22	%
Annualized return on average common equity		12.16	%		9.53	%		11.55	%

For the first nine-months of 2021, diluted earnings per common share rose 62% to $10.43 from $6.42 in the year-earlier period. GAAP-basis net income for the nine-month period ended September 30, 2021 increased to $1.40 billion from $882 million in the corresponding 2020 period. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in the nine-month period ended September 30, 2021 was 1.24% and 11.76%, respectively, improved from .89% and 7.57%, respectively, in the corresponding 2020 period. Merger-related expenses for the first nine months of 2021 were $23 million ($17 million after tax-effect, or $.13 of diluted earnings per common share). There were no merger-related expenses in the similar period of 2020.

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 $3.76 in the recent quarter, up from $2.77 and $3.45 in the third quarter of 2020 and the second quarter of 2021, respectively. Net operating income totaled $504 million in 2021's third quarter, $375 million in the third quarter of 2020 and $463 million in the second quarter of 2021. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recent quarter was 1.34% and 17.54%, respectively, 1.10% and 13.94%, respectively, in the year-earlier quarter and 1.27% and 16.68%, respectively, in the second quarter of 2021.

Diluted net operating earnings per common share during the first nine months of 2021 increased to $10.61 from $6.49 in the similar 2020 period. Net operating income during the nine-month periods ended September 30, 2021 and 2020 was $1.42 billion and $891 million, respectively. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.30% and 17.10%, respectively, in the first nine months of 2021 and was .93% and 11.15%, respectively, in the corresponding 2020 period.

Taxable-equivalent Net Interest Income. Net interest income expressed on a taxable-equivalent basis totaled $971 million in the recent quarter, up from $947 million in the third quarter of 2020 and $946 million in the second 2021 quarter. The recent quarter improvement as compared with the year-earlier quarter was largely due to lower rates paid on deposit accounts offset, in part, by the impact of lower average outstanding loan balances. As compared with the second quarter of 2021, the higher net interest income in the recent quarter was predominantly the result of increased yields on loans, reflecting fees received from payoffs of Paycheck Protection Program ("PPP") loans. The net interest margin in the third quarter of 2021, the third quarter of 2020 and the second quarter of 2021 was 2.74%, 2.95% and 2.77%, respectively. The lower net interest margin in the two most recent quarters reflects higher amounts of low-yielding balances at the Federal Reserve Bank of New York. Those balances add to net interest income, but lower the reported net interest margin. Interest income from PPP loans, including recognition of fees associated with repaid loans, was $71 million in the recent quarter, compared with $39 million in the third quarter of 2020 and $51 million in the second quarter of 2021.


Taxable-equivalent Net Interest Income

										Change 3Q21 vs.
($ in millions)	3Q21			3Q20			2Q21			3Q20			2Q21

Average earning assets	$	140,420		$	127,689		$	136,951			10	%		3	%
Net interest income ̶ taxable-equivalent	$	971		$	947		$	946			3	%		3	%
Net interest margin		2.74	%		2.95	%		2.77	%

Provision for Credit Losses/Asset Quality. Recaptures of the provision for credit losses of $20 million and $15 million were recorded in the third and second quarters of 2021, respectively. The provision for credit losses totaled $150 million in the third quarter of 2020. The provision in each quarter adjusts the allowance for credit losses to reflect expected losses that are based on economic forecasts as of each quarter-end date. Net loan charge-offs were $40 million during the recent quarter, compared with $30 million in the third quarter of 2020 and $46 million in the second quarter of 2021. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .17% and .12% in the third quarters of 2021 and 2020, respectively, and .19% in the second quarter of 2021.

Loans classified as nonaccrual totaled $2.24 billion at each of September 30, 2021 and June 30, 2021, compared with $1.24 billion at September 30, 2020. As a percentage of loans outstanding, nonaccrual loans were 2.40%, 2.31% and 1.26% at September 30, 2021, June 30, 2021 and September 30, 2020, respectively. The increase in nonaccrual loans from September 30, 2020 to the two most recent quarter-ends reflects the continuing impact of the pandemic on borrowers' ability to make contractual payments on their loans, most notably loans in the hospitality sector. Assets taken in foreclosure of defaulted loans were $25 million at September 30, 2021, $50 million a year earlier and $28 million at June 30, 2021.

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 $1.52 billion or 1.62% of loans outstanding at September 30, 2021, compared with $1.76 billion or 1.79% at September 30, 2020 and $1.58 billion or 1.62% at June 30, 2021. The allowance at September 30, 2021, September 30, 2020, and June 30, 2021 represented 1.66%, 1.91%, and 1.69%, respectively, of total loans on those dates, excluding outstanding balances of PPP loans.

Asset Quality Metrics
										Change 3Q21 vs.
($ in millions)	3Q21			3Q20			2Q21			3Q20			2Q21

At end of quarter
Nonaccrual loans	$	2,242		$	1,240		$	2,242			81	%		—
Real estate and other foreclosed assets	$	25		$	50		$	28			-50	%		-11	%
Total nonperforming assets	$	2,267		$	1,290		$	2,270			76	%		—
Accruing loans past due 90 days or more (1)	$	1,026		$	527		$	1,077			95	%		-5	%
Nonaccrual loans as % of loans outstanding		2.40	%		1.26	%		2.31	%

Allowance for credit losses	$	1,515		$	1,759		$	1,575			-14	%		-4	%
Allowance for credit losses as % of loans outstanding		1.62	%		1.79	%		1.62	%

For the period
Provision for credit losses	$	(20)		$	150		$	(15)			—			—
Net charge-offs	$	40		$	30		$	46			35	%		-13	%
Net charge-offs as % of average loans (annualized)		.17	%		.12	%		.19	%

____________
(1)	Predominantly government-guaranteed residential real estate loans.

Noninterest Income and Expense. Noninterest income was $569 million in the third quarter of 2021, up from $521 million in the year-earlier quarter and $514 million in the second quarter of 2021. As compared with the third quarter of 2020, the higher level of noninterest income in the recent quarter resulted largely from higher service charges on deposit accounts, merchant discount and credit card fees, mortgage banking revenues and income from M&T's trust and brokerage services businesses. The recent quarter's improvement as compared with the second quarter of 2021 reflects increases in mortgage banking revenues, service charges on deposit accounts, brokerage services income, credit-related fees, and lower unrealized losses on investment securities. Brokerage services income in the recent quarter included approximately $10 million of revenues associated with the sale of select investment products of LPL Financial, an independent financial services broker. Prior to the transition of M&T's retail brokerage and certain trust customer business to LPL Financial in mid-June 2021, those customers were provided proprietary trust products managed by M&T and revenues related thereto were reported as trust income.

Noninterest Income

							Change 3Q21 vs.
($ in millions)	3Q21		3Q20		2Q21		3Q20			2Q21

Mortgage banking revenues	$	160	$	153	$	133		4	%		20	%
Service charges on deposit accounts		105		91		99		15	%		7	%
Trust income		157		150		163		5	%		-4	%
Brokerage services income		20		12		10		77	%		100	%
Trading account and foreign exchange gains		6		4		7		38	%		-14	%
Gain (loss) on bank investment securities	—			3		(11)	—			—
Other revenues from operations		121		108		113		12	%		7	%
Total	$	569	$	521	$	514		9	%		11	%

Noninterest expense totaled $899 million in the third quarter of 2021, compared with $827 million in the corresponding quarter of 2020 and $865 million in the second 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 $888 million in the recent quarter, $823 million in the third quarter of 2020 and $859 million in 2021's second 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 (reflecting increased incentive compensation expenses), outside data processing and software, and professional services. As compared with the second quarter of 2021, the higher level of noninterest operating expenses in the recent quarter resulted largely from higher incentive compensation.

Noninterest Expense

							Change 3Q21 vs.
($ in millions)	3Q21		3Q20		2Q21		3Q20			2Q21

Salaries and employee benefits	$	510	$	479	$	479		7	%		7	%
Equipment and net occupancy		81		81		81	—			—
Outside data processing and software		73		65		74		13	%		-2	%
FDIC assessments		19		12		18		55	%		5	%
Advertising and marketing		15		12		13		28	%		14	%
Printing, postage and supplies		8		9		11		-16	%		-29	%
Amortization of core deposit and other intangible assets		3		4		3		-30	%	—
Other costs of operations		190		165		186		16	%		3	%
Total	$	899	$	827	$	865		9	%		4	%

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 57.7% in the third quarter of 2021, 56.2% in the year-earlier quarter and 58.4% in the second quarter of 2021.

Balance Sheet. M&T had total assets of $151.9 billion at September 30, 2021, compared with $138.6 billion and $150.6 billion at September 30, 2020 and June 30, 2021, respectively. Loans and leases, net of unearned discount, were $93.6 billion at September 30, 2021, compared with $98.4 billion at September 30, 2020 and $97.1 billion at June 30, 2021. The lower level of loans and leases at the recent quarter-end as compared with September 30, 2020 reflects a $5.4 billion decline in commercial loans, partially offset by growth in consumer loans of $1.5 billion. The lower commercial loan balances reflect declines in PPP and dealer floor plan loans. The rise in consumer loans resulted from higher balances of recreational finance and automobile loans. The decline in total loans and leases at the recent quarter-end as compared with June 30, 2021 resulted largely from lower commercial loans of $2.9 billion. The decrease in commercial loans reflects lower balances of PPP loans. Those loans totaled $2.2 billion at September 30, 2021, compared with $6.5 billion at September 30, 2020 and $4.3 billion at June 30, 2021. Total deposits were $128.7 billion at the recent quarter-end, $115.2 billion at September 30, 2020 and $128.3 billion at June 30, 2021. The increased levels of deposits at the two most recent quarter-ends as compared with September 30, 2020 reflect higher levels of liquidity being maintained by many commercial and consumer customers.

Total shareholders' equity was $17.5 billion, or 11.54% of total assets at September 30, 2021, $16.1 billion, or 11.61% at September 30, 2020 and $16.7 billion, or 11.10% at June 30, 2021. Common shareholders' equity was $15.8 billion, or $122.60 per share, at September 30, 2021, compared with $14.9 billion, or $115.75 per share, a year-earlier and $15.5 billion, or $120.22 per share, at June 30, 2021. Tangible equity per common share was $86.88 at September 30, 2021, $79.85 at September 30, 2020 and $84.47 at June 30, 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 11.1% at September 30, 2021, up from 10.7% three months earlier.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877) 876-9173. International participants, using any applicable international calling codes, may dial (785) 424-1667. Callers should reference M&T Bank Corporation or the conference ID #MTBQ321. 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, October 27, 2021 by calling (800) 727-6189, or (402) 220-2671 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. 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.

Who We Are. We are a bank for communities – bringing the capabilities of a large bank with the care of a locally focused institution. Our purpose is to make a difference in people's lives serving all our stakeholders. The keys to our approach are characterized by responsible lending based on the advantages of local knowledge and scale, and our long history of being prudent stewards of our shareholders' capital. For more on our approach as a bank for communities, please review our latest ESG report available on M&T's website.

Earlier this month it was announced that M&T Bank again ranked in the nation's top 10 for U.S. Small Business Administration lending. For 13 consecutive years, M&T Bank has remained one of the top 10 SBA lenders in the country. Additionally in the quarter, M&T Bank continued to focus on its multicultural customers in its diverse communities by establishing several multicultural banking centers across its footprint to enhance local branch experience by offering services in English and other languages. Customers can also now complete cash transactions at M&T Bank ATMs in four languages.

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 COVID-19 pandemic 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, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, clients, third parties and M&T.

Also as described further below, statements regarding M&T's expectations or predictions regarding the proposed transaction between M&T and People's United Financial, Inc. ("People's United") are forward-looking statements, including statements regarding the expected timing, completion and effects of the proposed transaction as well as M&T's and People's United's expected financial results, prospects, targets, goals and outlook.

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.

Future factors include risks, predictions and uncertainties relating to the impact of the People's United transaction (as described in the next paragraph); the impact of the COVID-19 pandemic; 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; 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; 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.

In addition, future factors related to the proposed transaction between M&T and People's United include, among others: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between M&T and People's United; the outcome of any legal proceedings that may be instituted against M&T or People's United; the possibility that the proposed transaction will not close when expected or at all because required regulatory or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the risk that any announcements relating to the proposed combination could have adverse effects on the market price of the common stock of either or both parties to the combination; 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 and People's United do business; certain restrictions during the pendency of the merger that may impact the parties' ability to pursue certain business opportunities or strategic transactions; 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, including those resulting from the announcement or completion of the transaction; M&T's and People's United's success in executing their respective business plans and strategies and managing the risks involved in the foregoing; the business, economic and political conditions in the markets in which the parties operate; and other factors that may affect future results of M&T and People's United.

Future factors related to the proposed transaction also include risks, such as, among others: that the proposed combination and its announcement could have an adverse effect on either or both parties' ability to retain customers and retain or hire key personnel and maintain relationships with customers; that the proposed combination 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; and that revenues following the proposed combination may be lower than expected, including for possible reasons such as unexpected costs, charges or expenses resulting from the transactions; as well as the unforeseen risks relating to liabilities of M&T or People's United that may exist, and uncertainty as to the extent of the duration, scope, and impacts of the COVID-19 pandemic on People's United, M&T and the proposed combination.

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 2020 Form 10-K, 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.

Financial Highlights

	Three months ended									Nine months ended
	September 30									September 30
Amounts in thousands, except per share	2021			2020			Change			2021			2020			Change
Performance
Net income	$	495,460			372,136			33	%	$	1,400,778			882,012			59	%
Net income available to common shareholders		475,961			353,400			35	%		1,342,812			827,204			62	%
Per common share:
Basic earnings	$	3.70			2.75			35	%	$	10.44			6.42			63	%
Diluted earnings		3.69			2.75			34	%		10.43			6.42			62	%
Cash dividends	$	1.10			1.10			—		$	3.30			3.30		—
Common shares outstanding:
Average - diluted (1)		128,844			128,355			—			128,786			128,813		—
Period end (2)		128,699			128,303		—				128,699			128,303		—
Return on (annualized):
Average total assets		1.28	%		1.06	%					1.24	%		.89	%
Average common shareholders' equity		12.16	%		9.53	%					11.76	%		7.57	%
Taxable-equivalent net interest income	$	970,953			947,114			3	%	$	2,902,154			2,890,353		—
Yield on average earning assets		2.82	%		3.13	%					2.91	%		3.53	%
Cost of interest-bearing liabilities		.14	%		.30	%					.15	%		.50	%
Net interest spread		2.68	%		2.83	%					2.76	%		3.03	%
Contribution of interest-free funds		.06	%		.12	%					.07	%		.19	%
Net interest margin		2.74	%		2.95	%					2.83	%		3.22	%
Net charge-offs to average total net loans (annualized)		.17	%		.12	%					.22	%		.21	%
Net operating results (3)
Net operating income	$	504,030			375,029			34	%	$	1,424,361			890,692			60	%
Diluted net operating earnings per common share		3.76			2.77			36	%		10.61			6.49			63	%
Return on (annualized):
Average tangible assets		1.34	%		1.10	%					1.30	%		.93	%
Average tangible common equity		17.54	%		13.94	%					17.10	%		11.15	%
Efficiency ratio		57.7	%		56.2	%					58.8	%		57.0	%

	At September 30
Loan quality	2021			2020			Change
Nonaccrual loans	$	2,242,263			1,239,972			81	%
Real estate and other foreclosed assets		24,786			49,872			-50	%
Total nonperforming assets	$	2,267,049			1,289,844			76	%
Accruing loans past due 90 days or more (4)	$	1,026,080			527,258			95	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	47,358			45,975			3	%
Accruing loans past due 90 days or more		947,091			505,446			87	%
Renegotiated loans	$	242,955			242,581		—
Nonaccrual loans to total net loans		2.40	%		1.26	%
Allowance for credit losses to total loans		1.62	%		1.79	%

______________
(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
	September 30,			June 30,			March 31,			December 31,			September 30,
Amounts in thousands, except per share	2021			2021			2021			2020			2020
Performance
Net income	$	495,460			458,069			447,249			471,140			372,136
Net income available to common shareholders		475,961			438,759			428,093			451,869			353,400
Per common share:
Basic earnings	$	3.70			3.41			3.33			3.52			2.75
Diluted earnings		3.69			3.41			3.33			3.52			2.75
Cash dividends	$	1.10			1.10			1.10			1.10			1.10
Common shares outstanding:
Average - diluted (1)		128,844			128,842			128,669			128,379			128,355
Period end (2)		128,699			128,686			128,658			128,333			128,303
Return on (annualized):
Average total assets		1.28	%		1.22	%		1.22	%		1.30	%		1.06	%
Average common shareholders' equity		12.16	%		11.55	%		11.57	%		12.07	%		9.53	%
Taxable-equivalent net interest income	$	970,953			946,072			985,128			993,252			947,114
Yield on average earning assets		2.82	%		2.85	%		3.08	%		3.15	%		3.13	%
Cost of interest-bearing liabilities		.14	%		.14	%		.18	%		.25	%		.30	%
Net interest spread		2.68	%		2.71	%		2.90	%		2.90	%		2.83	%
Contribution of interest-free funds		.06	%		.06	%		.07	%		.10	%		.12	%
Net interest margin		2.74	%		2.77	%		2.97	%		3.00	%		2.95	%
Net charge-offs to average total net loans (annualized)		.17	%		.19	%		.31	%		.39	%		.12	%
Net operating results (3)
Net operating income	$	504,030			462,959			457,372			473,453			375,029
Diluted net operating earnings per common share		3.76			3.45			3.41			3.54			2.77
Return on (annualized):
Average tangible assets		1.34	%		1.27	%		1.29	%		1.35	%		1.10	%
Average tangible common equity		17.54	%		16.68	%		17.05	%		17.53	%		13.94	%
Efficiency ratio		57.7	%		58.4	%		60.3	%		54.6	%		56.2	%

	September 30,			June 30,			March 31,			December 31,			September 30,
Loan quality	2021			2021			2021			2020			2020
Nonaccrual loans	$	2,242,263			2,242,057			1,957,106			1,893,299			1,239,972
Real estate and other foreclosed assets		24,786			27,902			29,797			34,668			49,872
Total nonperforming assets	$	2,267,049			2,269,959			1,986,903			1,927,967			1,289,844
Accruing loans past due 90 days or more (4)	$	1,026,080			1,077,227			1,084,553			859,208			527,258
Government guaranteed loans included in totals above:
Nonaccrual loans	$	47,358			49,796			51,668			48,820			45,975
Accruing loans past due 90 days or more		947,091			1,029,331			1,044,599			798,121			505,446
Renegotiated loans	$	242,955			236,377			242,121			238,994			242,581
Nonaccrual loans to total net loans		2.40	%		2.31	%		1.97	%		1.92	%		1.26	%
Allowance for credit losses to total loans		1.62	%		1.62	%		1.65	%		1.76	%		1.79	%

______________
(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							Nine months ended
	September 30							September 30
Dollars in thousands	2021		2020		Change			2021		2020		Change
Interest income	$	992,946		1,001,161		-1	%	$	2,980,266		3,153,822		-6	%
Interest expense		25,696		58,066		-56			89,281		276,785		-68
Net interest income		967,250		943,095		3			2,890,985		2,877,037	—
Provision for credit losses		(20,000)		150,000		—			(60,000)		725,000		—
Net interest income after provision for credit losses		987,250		793,095		24			2,950,985		2,152,037		37
Other income
Mortgage banking revenues		159,995		153,267		4			432,062		426,200		1
Service charges on deposit accounts		105,426		91,355		15			296,721		274,971		8
Trust income		156,876		149,937		5			475,889		450,570		6
Brokerage services income		20,490		11,602		77			43,868		35,194		25
Trading account and foreign exchange gains		5,563		4,026		38			18,349		33,332		-45
Gain (loss) on bank investment securities		291		2,773	—				(22,646)		(11,040)		—
Other revenues from operations		120,485		107,601		12			344,114		327,967		5
Total other income		569,126		520,561		9			1,588,357		1,537,194		3
Other expense
Salaries and employee benefits		510,422		478,897		7			1,530,634		1,474,582		4
Equipment and net occupancy		80,738		81,080	—				244,057		237,809		3
Outside data processing and software		72,782		64,660		13			213,025		190,446		12
FDIC assessments		18,810		12,121		55			50,874		38,599		32
Advertising and marketing		15,208		11,855		28			43,200		44,072		-2
Printing, postage and supplies		7,917		9,422		-16			28,367		31,534		-10
Amortization of core deposit and other intangible assets		2,738		3,914		-30			8,213		11,740		-30
Other costs of operations		190,719		164,825		16			565,753		511,450		11
Total other expense		899,334		826,774		9			2,684,123		2,540,232		6
Income before income taxes		657,042		486,882		35			1,855,219		1,148,999		61
Applicable income taxes		161,582		114,746		41			454,441		266,987		70
Net income	$	495,460		372,136		33	%	$	1,400,778		882,012		59	%

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
Dollars in thousands	2021		2021		2021		2020		2020
Interest income	$	992,946		970,358		1,016,962		1,038,890		1,001,161
Interest expense		25,696		28,018		35,567		49,610		58,066
Net interest income		967,250		942,340		981,395		989,280		943,095
Provision for credit losses		(20,000)		(15,000)		(25,000)		75,000		150,000
Net interest income after provision for credit losses		987,250		957,340		1,006,395		914,280		793,095
Other income
Mortgage banking revenues		159,995		133,313		138,754		140,441		153,267
Service charges on deposit accounts		105,426		98,518		92,777		95,817		91,355
Trust income		156,876		162,991		156,022		151,314		149,937
Brokerage services income		20,490		10,265		13,113		12,234		11,602
Trading account and foreign exchange gains		5,563		6,502		6,284		7,204		4,026
Gain (loss) on bank investment securities		291		(10,655)		(12,282)		1,619		2,773
Other revenues from operations		120,485		112,699		110,930		142,621		107,601
Total other income		569,126		513,633		505,598		551,250		520,561
Other expense
Salaries and employee benefits		510,422		479,134		541,078		476,110		478,897
Equipment and net occupancy		80,738		80,848		82,471		84,228		81,080
Outside data processing and software		72,782		74,492		65,751		68,034		64,660
FDIC assessments		18,810		17,876		14,188		15,204		12,121
Advertising and marketing		15,208		13,364		14,628		17,832		11,855
Printing, postage and supplies		7,917		11,133		9,317		8,335		9,422
Amortization of core deposit and other intangible assets		2,738		2,737		2,738		3,129		3,914
Other costs of operations		190,719		185,761		189,273		172,136		164,825
Total other expense		899,334		865,345		919,444		845,008		826,774
Income before income taxes		657,042		605,628		592,549		620,522		486,882
Applicable income taxes		161,582		147,559		145,300		149,382		114,746
Net income	$	495,460		458,069		447,249		471,140		372,136

Condensed Consolidated Balance Sheet

	September 30
Dollars in thousands	2021		2020		Change
ASSETS
Cash and due from banks	$	1,479,712		1,489,232		-1	%
Interest-bearing deposits at banks		38,445,788		20,197,937		90
Trading account		624,556		1,215,573		-49
Investment securities		6,447,622		7,723,004		-17
Loans and leases:
Commercial, financial, etc.		22,514,940		27,891,648		-19
Real estate - commercial		37,023,952		37,582,084		-1
Real estate - consumer		16,209,354		16,663,708		-3
Consumer		17,834,648		16,309,608		9
Total loans and leases, net of unearned discount		93,582,894		98,447,048		-5
Less: allowance for credit losses		1,515,024		1,758,505		-14
Net loans and leases		92,067,870		96,688,543		-5
Goodwill		4,593,112		4,593,112		—
Core deposit and other intangible assets		5,952		17,294		-66
Other assets		8,236,582		6,702,048		23
Total assets	$	151,901,194		138,626,743		10	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	56,542,309		44,201,670		28	%
Interest-bearing deposits		72,158,987		70,061,680		3
Deposits at Cayman Islands office		—		899,989		-100
Total deposits		128,701,296		115,163,339		12
Short-term borrowings		103,548		46,123		125
Accrued interest and other liabilities		2,067,188		1,857,383		11
Long-term borrowings		3,500,391		5,458,885		-36
Total liabilities		134,372,423		122,525,730		10
Shareholders' equity:
Preferred		1,750,000		1,250,000		40
Common		15,778,771		14,851,013		6
Total shareholders' equity		17,528,771		16,101,013		9
Total liabilities and shareholders' equity	$	151,901,194		138,626,743		10	%

Condensed Consolidated Balance Sheet, Five Quarter Trend

	September 30,		June 30,		March 31,		December 31,		September 30,
Dollars in thousands	2021		2021		2021		2020		2020
ASSETS
Cash and due from banks	$	1,479,712		1,410,468		1,258,989		1,552,743		1,489,232
Interest-bearing deposits at banks		38,445,788		33,864,824		31,407,227		23,663,810		20,197,937
Federal funds sold		—		—		1,000		—		—
Trading account		624,556		712,558		687,359		1,068,581		1,215,573
Investment securities		6,447,622		6,143,177		6,610,667		7,045,697		7,723,004
Loans and leases:
Commercial, financial, etc.		22,514,940		25,409,291		27,811,190		27,574,564		27,891,648
Real estate - commercial		37,023,952		37,558,775		37,425,974		37,637,889		37,582,084
Real estate - consumer		16,209,354		16,704,951		17,349,683		16,752,993		16,663,708
Consumer		17,834,648		17,440,415		16,712,233		16,570,421		16,309,608
Total loans and leases, net of unearned discount		93,582,894		97,113,432		99,299,080		98,535,867		98,447,048
Less: allowance for credit losses		1,515,024		1,575,128		1,636,206		1,736,387		1,758,505
Net loans and leases		92,067,870		95,538,304		97,662,874		96,799,480		96,688,543
Goodwill		4,593,112		4,593,112		4,593,112		4,593,112		4,593,112
Core deposit and other intangible assets		5,952		8,690		11,427		14,165		17,294
Other assets		8,236,582		8,351,574		8,248,405		7,863,517		6,702,048
Total assets	$	151,901,194		150,622,707		150,481,060		142,601,105		138,626,743

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	56,542,309		55,621,230		53,641,419		47,572,884		44,201,670
Interest-bearing deposits		72,158,987		72,647,542		74,193,255		71,580,750		70,061,680
Deposits at Cayman Islands office		—		—		641,691		652,104		899,989
Total deposits		128,701,296		128,268,772		128,476,365		119,805,738		115,163,339
Short-term borrowings		103,548		91,235		58,957		59,482		46,123
Accrued interest and other liabilities		2,067,188		2,042,948		2,000,727		2,166,409		1,857,383
Long-term borrowings		3,500,391		3,499,448		3,498,503		4,382,193		5,458,885
Total liabilities		134,372,423		133,902,403		134,034,552		126,413,822		122,525,730
Shareholders' equity:
Preferred		1,750,000		1,250,000		1,250,000		1,250,000		1,250,000
Common		15,778,771		15,470,304		15,196,508		14,937,283		14,851,013
Total shareholders' equity		17,528,771		16,720,304		16,446,508		16,187,283		16,101,013
Total liabilities and shareholders' equity	$	151,901,194		150,622,707		150,481,060		142,601,105		138,626,743

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

	Three months ended															Change in balance						Nine months ended
	September 30,					September 30,					June 30,					September 30, 2021 from						September 30,										Change
Dollars in millions	2021					2020					2021					September 30,			June 30,			2021					2020					in
	Balance		Rate			Balance		Rate			Balance		Rate			2020			2021			Balance		Rate			Balance		Rate			balance
ASSETS
Interest-bearing deposits at banks	$	39,036		.15	%		16,440		.10	%		32,081		.11	%		137	%		22	%	$	32,969		.12	%		13,021		.28	%		153	%
Federal funds sold and agreements to resell securities		—		.47			5,113		.13			—		.48			-100			40			223		.12			2,353		.33			—
Trading account		51		2.71			50		1.62			49		1.76			2			3			50		1.97			54		2.15			-7
Investment securities		6,019

M&T Bank Corporation Announces Third Quarter Results