M&T Bank
July 3, 2011 – 3:58 pm
Business Profile
M&T Bank Corporation is a bank holding firm incorporated in 1969. The Company is headquartered in New York and employs approximately 12,000 full time employees and 1,400 part time staff. As at December 31, 2006, the bank had total assets of $57.1 billion and total deposits of $39.9 billion. The Company offers a broad portfolio of financial products including commercial banking, investment and trust services.
The Company has completed several banking thrift companies acquisition in past to pursue growth in terms of geographies and product line. In April 2003, the Company acquired Allfirst Financial Inc. based in Maryland from Allied Irish Banks (AIB). AIB owns approximately 24.2% of M&T.
The Company operates through two fully-owned banking subsidiaries – M&T Bank and M&T Bank, National Association.
M&T Bank contributes the majority of the Company’s performance and accounts for approximately 99% of the Company’s total assets. M&T Bank has its roots in the Manufacturers and Traders Bank in 1856. M&T Bank has approximately 671 banking branches located across US including New York, Delaware, Pennsylvania, Maryland, West Virginia, Virginia, and the District of Columbia as well as one branch in Cayman Islands. As of December 31, 2006, M &T Bank’s total assets were $56.4 billion and deposits were $39.9 billion. The bank offers a comprehensive suite of financial products and services to a broad client base including retail customers, businesses, government entities, professional clients and financial institution.
M&T Bank, N.A., a national association which commenced operations in October 1995. The firm provides deposit and lending products across the nation, mainly through telemarketing and direct mail channels. The association had total assets of $511 million and total deposits of $405 million as of December 31, 2006.
The Company also operate various fully owned subsidiaries including M&T Life Insurance Company, captive credit reinsurer; M&T Credit Services, LLC, a credit and leasing firm; M&T Investment Company of Delaware, Inc., which owns M&T Real Estate Trust; M&T Lease, LLC, a consumer leasing firm; M&T Mortgage Corporation, which originates and services residential mortgage loans; M&T Mortgage Reinsurance Company; M&T Real Estate Trust; M&T Realty Capital Corporation; M&T Securities, a registered dealer / broker; M&T Insurance Agency, Inc; M&T Auto Receivables I, LLC; and MTB Investment Advisors, Inc.
The Company’s net interest income increased 1.3% to $1,817.5 million in 2006 from $1,794.3 million in 2005.
The Company’s non interest and other income also increased 10.1% to $1,045.9 million in 2006 from $949.7 million in 2005. M&T’s net income increased 7.3% to $839.2 million in 2006 from $782.2 million in 2005. The Company’s total assets increased 3.5% to $57.1 billion as of December 31, 2006 compared with $55.1 billion as of December 31, 2005. During the same period, the Company’s net loans and leases increased 6.6% to $42.3 billion as of December 31, 2006 compared with $39.7 billion as of December 31, 2005. The Company’s total investment securities declined 13.7% to $7.3 billion as of December 31, 2006 compared with $8.4 billion as of December 31, 2005. The Company’s total deposit grew 7.6% to $39.9 billion as of December 31, 2006 compared with $37.1 billion as of December 31, 2005. The Company’s total equity increased 6.9% to $6.3 billion as of December 31, 2006 from $5.9 billion as of December 31, 2005.
The Company has organized itself into five business segments: Commercial Real Estate, Commercial Banking, Residential Mortgage Banking, Discretionary Portfolio, and Retail Banking.
Commercial Banking business offers a broad portfolio of banking services and lending products for mid-market companies and large commercial clients. Major services offered by Commercial Banking include commercial leasing and lending, cash management services and deposit products. The segment’s net income increased 3% to $226 million in 2006 compared with $219 million in 2005 primarily driven by increase in net interest income off higher net interest margin, partly offset by higher non interest expense.
Commercial Real Estate business offers deposit and credit services to its clients. The segment secures its real estate loans by multifamily/apartment buildings; and retail, office, and industrial space. The segment also originates sales and services real estate loans through FNMA DUS program. Commercial real estate segment’s net income declined 6% to $135 million in 2006 from $143 million in 2005 primarily owing to contraction in net interest margin.
Discretionary Portfolio business offers trading and investment securities, long-term and short-term borrowed funds, residential mortgage loans, interest rate swap and certificates of deposit agreements, deposits at offshore branches and foreign exchange services.
Residential Mortgage Banking business services and originates residential mortgage loans for clients. The
segment sells most of the originated loans to investors as well as to the bank’s subsidiaries. It also services and originates loans to builders and developers of residential properties.
Retail Banking business serves small businesses and retail consumers through a network of branches, ATMs, telephone banking and Online banking.