M&T Bank 1Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$MTB Earnings Call Notes

“industry as a whole is subject to a heightened regulatory environment and expectations”

“if you look at recent merger activity in the banking sector, the trend seems to be that it’s taking notably longer to get regulatory approvals.”

“We recently were made aware of the fact that certain deficiencies in our BSA/AML [Bank Secrecy Act and anti-money laundering] compliance program rose to a level of significance such that they would impact our ability to close the merger with Hudson City in the near term”

“Both companies remain strongly committed to this merger as it is a highly beneficial transaction for each of us”

“We have no reason to believe that the issues involve any wrongdoing or illegal conduct by anyone in M&T work or any identifiable instances of actual money laundering activity using our bank.”

“we should be helped by who we are — who and what we are. Compared to some other institutions that have had these issues, M&T is relatively uncomplicated and locally focused business. We don’t have any significant international operations and don’t have the kinds of diverse complex businesses that the larger money center banks are engaged in.”

“return on average tangible assets and average tangible common shareholders’ equity, was 1.48% and 18.71%”

“loan growth for the first quarter was pretty much in line with our outlook…annualized 5%”

“Consumer loans declined an annualized 5%”

“Average core customer deposits, which excludes deposits received at M&T’s Cayman branch and CDs over $250,000, grew at an annualized 2%”

“Annualized net charge-offs as a percentage of total loans were 23 basis points”

“in upstate New York, as we talk to people and actually all the way across through Albany, we’re seeing that some of the clients are actually — have more utilization in their lines, that we’re hearing stories of people looking to make capital investment, a few capital investments. When you flip all the way down to the other end of the franchise, in Washington D.C., it’s more reserved, people are worried about the sequester, the competition has picked up.”

“You’ve got to keep making investments [in compliance]. A huge change is going on in the industry. And it’s not a matter of sort of saying, well, I was okay last year, so I’ll be okay this year. You’ve got to make those investments”