M&T Bank Corporation (NYSE:MTB) Q3 2016 Earnings Conference Call - Final Transcript

Oct 19, 2016 • 11:00 am ET


M&T Bank Corporation (NYSE:MTB) Q3 2016 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the M&T Bank Third Quarter 2016 Earnings Call. At this time all participant lines have been placed on mute to prevent any background noise. Later we will conduct a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the conference over to Mr. Don MacLeod, Director of Investor Relations. Please go ahead, sir.

Don MacLeod

Thank you, Maria and good morning. I'd like to thank everyone for participating in M&T's Third Quarter 2016 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 in forms 8-K, 10-K and 10-Q, for a complete discussion of forward-looking statements.

Now, I'd like to introduce our Chief Financial Officer, Darren King.

Darren King

Thank you, Don and good morning, everyone. As most of you have no doubt seen in this morning's press release, M&T's results for the third quarter reflect the initiatives we have underway to position the Bank for future success. The merger with Hudson City Bancorp was completed almost a year ago and the ongoing process of converting a thrift to a commercial bank continues.

During the quarter, we continued to build out the New Jersey consumer bank, both by growing new households as well as taking steps to reprice the acquired deposit base. For the New Jersey commercial bank, loan balances for the year-to-date have grown at an annualized rate of over 20%, led by loans to small and medium-sized enterprises. We're pleased to see that our community-focused approach to banking is starting to take root in the New Jersey marketplace.

Customer migration arising from the multiple mergers and acquisitions that have occurred within our footprint also continues. We have been advertising and offering incentives to bring in new customers impacted by some of those changes in our markets. Customer growth in the third quarter was the highest we've seen in the past eight quarters.

We've also continued our program of investments in operational infrastructure and technology. As we previously signaled, the enhanced mtb.com website went live during the quarter. Other highlights for the quarter include an upgrade to our ATM network to handle EMV chip-equipped cards and adding a feature to our payment services capability that enables our customers to send and receive same-day ACH transactions. The upgrade to our consumer mobile app is in final testing and we expect it to go live later this quarter. And finally, we took some actions to get ahead of the pending implementation of the so-called Volcker Rule contained within the Dodd-Frank Act by divesting some securities disallowed by