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$MTB stated that in terms of C&I loan growth, 4Q17 originations were strong. The company saw elevated paydowns in C&I during 2017. The increased activity in C&I was largely from private equity and this activity was around 5-10% higher than historical trends in terms of payoffs and paydowns.
$MTB's net operating income for 4Q17, which excludes intangible amortization, was $327MM compared with $336MM in 4Q16. Diluted net operating EPS was $2.04 in 4Q17 compared with $2.01 in 4Q16. Net operating income yielded annualized rates of return on average tangible assets and average tangible common shareholders' equity of 1.12% and 11.77%.
$MTB posted net interest income on a taxable-equivalent basis of $980MM in 4Q17, up 11% from $883MM in 4Q16. Non-interest income totaled $484MM in 4Q17, compared with $465MM in 4Q16. The improvement in non-interest income from 4Q16 was due largely to higher gains on investment securities and increased trust income.
$MTB appointed Richard Gold as President and COO of the company and M&T Bank. Gold was also elected to the BoD of both the company and M&T Bank. Lead outside director Robert Brady, former Chairman and CEO of Moog Inc., was named $MTB's Non-Executive Chairman. Brady resumed his role as Vice Chairman and lead outside director of $MTB's Board.
Financial services provider $MTB said its Chairman and CEO Robert Wilmers passed away unexpectedly. He was 83. Wilmers will be succeeded by Robert Brady, a former Chairman of Moog who serves on M&T Bank’s Board of Directors, has been named the Non-Executive Chairman. Wilmers had held the posts of Chairman and CEO of M&T Bank since May 1983.
$MTB promoted Shelley Drake to the position of regional president for Western New York. Drake will directly manage middle market banking in $MTB's Western New York region, which includes 77 offices and a leading market share across the eight New York State counties of Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans and Wyoming.
$MTB reported a 2% YoY growth in profit for 3Q17 to $356MM. On a per-share basis, the company's earnings grew 5% to $2.21. Excluding certain items, the New York-based bank's earnings were $2.24. Net interest margin for the quarter came in at 3.53%, up 48 basis points. Allowance for credit losses increased 3.8% to $1.01Bil.
$MTB said Wilmington Trust Corp. reached an agreement with the U.S. Attorney’s Office for the District of Delaware related to alleged conduct that took place between 2009 and 2010. Wilmington Trust is paying $60MM and settling the government's claims.
$MTB announced that its Mid-Atlantic headquarters will move to a new 28-story building being constructed at 1 Light Street in downtown Baltimore. $MTB will take occupancy of the new building in late-2018, and has signed a 15-year lease with two five-year renewal options. Financing for 1 Light Street is being led by Natixis.
$MTB appointed Laura O’Hara as SVP and General Counsel, effective Aug 21, 2017. She will report to Richard Gold, M&T Vice Chairman, and be based in Buffalo, N.Y. O’Hara joins M&T with more than 30 years of litigation and regulatory compliance experience, most recently for Santander Bank, where she was EVP and General Counsel from 2015 to 2017.
$MTB forecasts a modest growth in mortgage banking revenues in fiscal 2017. The company is all set to implement its capital plan shortly, and expects the expansion of non-interest margin to be muted in 3Q17. Efficiency ratio is forecast to be below the earlier outlook of 55% in the full fiscal year.
$MTB plans a five cents per share increase in its stock dividend. The company continues to expect average loans to be in the lower single digits this year, compared to last year. Interest income is seen growing at a more modest rate than in the first half of 2017, and margins are expected to be under pressure from refinancing of long-term debts.