M&T Bank Corporation (NYSE:MTB) Q4 2014 Earnings Conference Call - Final Transcript
Jan 20, 2015 • 10:00 am ET
Ladies and gentlemen, thank you for standing by. And welcome to the M&T Bank Fourth Quarter 2014 Earnings Conference Call. [Operator Instructions]
It is now pleasure to turn the floor over to Don MacLeod, Head of Investor Relations. Please go ahead, sir.
Thank you, Lorie, and good morning, everyone. This is Don MacLeod. I'd like to thank everyone for participating in M&T's fourth quarter 2014 earnings conference call, both by telephone and through the webcast. If you have not read the earnings release we issued this morning, you may access it along with the financial tables and schedules from our website, www.mtb.com and by clicking on the Investor Relations link.
Also, before we start, I'd like to mention that comments made during this call might contain forward-looking statements relating to the banking industry and to M&T Bank Corporation. M&T encourages participants to refer to our SEC filings, including those found on Forms 8-K, 10-K and 10-Q, for a complete discussion of forward-looking statements.
Now I would like to introduce our Chief Financial Officer, Rene Jones.
Rene F. Jones
Thank you, Don, and good morning, everyone. As I noted in this morning's press release, the past year was one of substantial progress for us. Our results included lower credit costs, as well as notable improvements in our liquidity, capital and overall risk profile. We made excellent progress on our critical initiatives to strengthen M&T's BSA/AML compliance and overall risk management infrastructure.
And while the target investments that we made moderated our return on tangible common equity to a shade below 14% for the year, the -- taking these steps now positions M&T well for the changing -- for the change to banking environment.
Our results for the last quarters -- our results for last year's final quarter were characterized by higher revenues, dampened by a slightly higher tax rate. As we usually do, I'll start by reviewing a few of the highlights from M&T's fourth quarter and full year results, after which Don and I will be happy to take your questions. Remember that you can reenter the queue if you have additional questions that haven't been answered.
Turning to the details, diluted GAAP earnings per common share were $1.92 for the fourth quarter of 2014, improved from $1.91 in the third quarter and a $1.56 in the fourth quarter of 2013. Net income for the quarter was $278 million, up from $275 million in the prior quarter. Net income was $221 million in a year ago quarter. There were no noteworthy items impacting M&T's third and fourth quarter 2014 results. However, recall that our results for the fourth quarter of 2013 included an after-tax $24 million litigation related accrual, which amounted to $0.18 per share.
As you are all aware since 1998, M&T is consistently provided supplemental reporting of its results on a net operating or tangible basis, from which we exclude the after-tax effect of amortization of intangible assets, as well as expenses and gains associated with mergers and acquisitions when they occur.