BUFFALO, N.Y., Jan. 19, 2023 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE:MTB) today reported its results of operations for the full year and quarter ended December 31, 2022.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") were $4.29 in the fourth quarter of 2022, up from $3.37 in the year-earlier quarter and $3.53 in the third quarter of 2022. GAAP-basis net income was $765 million in the recent quarter, $458 million in the fourth quarter of 2021 and $647 million in the third 2022 quarter. GAAP-basis net income expressed as an annualized rate of return on average assets was 1.53% in the fourth quarter of 2022, improved from 1.15% in the corresponding 2021 period and 1.28% in the third quarter of 2022. That net income produced a return on average common shareholders' equity of 12.59% in the recent quarter, 10.91% in the similar 2021 period and 10.43% in the third quarter of 2022. The results reflect non-operating merger-related expenses associated with the acquisition of People's United Financial, Inc. ("People's United") of $45 million ($33 million after-tax effect, or $.20 of diluted earnings per common share) in the recent quarter, compared with $21 million ($16 million after-tax effect, or $.12 of diluted earnings per common share) in the year-earlier quarter and $53 million ($39 million after-tax effect, or $.22 of diluted earnings per share) in the third quarter of 2022.

The recent quarter's results reflect two noteworthy items. In the fourth quarter of 2022, M&T sold its retail insurance subsidiary, M&T Insurance Agency, Inc. ("MTIA"), to Arthur J. Gallagher & Co. The sale resulted in a gain of $136 million. Also during the fourth quarter of 2022, M&T made a $135 million tax-deductible contribution to The M&T Charitable Foundation.

Darren J. King, Chief Financial Officer, commenting on M&T's results noted, "We are extremely pleased with our results, both in the fourth quarter as well as full year 2022. Diluted net operating earnings per share increased in each quarter following our acquisition of People's United, including by 19% in the fourth quarter. The integration of the acquired franchise, expansion of the net interest margin and solid growth in commercial loan balances position M&T to continue its strong performance into 2023."

Earnings Highlights

										Change 4Q22 vs.
($ in millions, except per share data)	4Q22			4Q21			3Q22			4Q21			3Q22

Net income	$	765		$	458		$	647			67	%		18	%
Net income available to common shareholders ̶ diluted	$	739		$	434		$	621			70	%		19	%
Diluted earnings per common share	$	4.29		$	3.37		$	3.53			27	%		22	%
Annualized return on average assets		1.53	%		1.15	%		1.28	%
Annualized return on average common equity		12.59	%		10.91	%		10.43	%

For the year ended December 31, 2022, diluted earnings per common share were $11.53, compared with $13.80 in 2021. GAAP-basis net income was $1.99 billion and $1.86 billion in 2022 and 2021, respectively. Expressed as an annualized rate of return on average assets and average common shareholders' equity, GAAP-basis net income in 2022 was 1.05% and 8.67%, respectively, compared with 1.22% and 11.54%, respectively, in 2021. Merger-related expenses in 2022 were $580 million ($432 million after tax-effect, or $2.63 of diluted earnings per common share), compared with $44 million ($34 million after-tax effect, or $.25 of diluted earnings per common share) in the prior year.

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature. The amounts of such "nonoperating" expenses are presented in the tables that accompany this release.

Merger-related expenses generally consist of professional services, temporary help fees and other costs associated with actual or planned conversions of systems and/or integration of operations and the introduction of M&T to its new customers, costs related to terminations of existing contractual arrangements to purchase various services, severance, travel costs and, in the second quarter of 2022, an initial provision for credit losses of $242 million on loans not deemed to be purchased credit deteriorated ("PCD") on the April 1, 2022 acquisition date of People's United. GAAP requires that acquired loans be recorded at estimated fair value, which includes the use of interest rate and expected credit loss assumptions to forecast estimated cash flows. GAAP also provides that an allowance for credit losses on loans acquired, but not classified as PCD also be recognized. Given the requirement to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that initial provision to be a merger-related expense. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results. The amounts of merger-related expenses in 2022 and 2021 are presented in the tables that accompany this release.

Diluted net operating earnings per common share were $4.57 in the fourth quarter of 2022, improved from $3.50 in the year-earlier quarter and $3.83 in the third quarter of 2022. Net operating income aggregated $812 million in the recent quarter, $475 million in the fourth quarter of 2021 and $700 million in 2022's third quarter. Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the fourth quarter of 2022 was 1.70% and 21.29%, respectively, 1.23% and 15.98%, respectively, in the similar quarter of 2021 and 1.44% and 17.89%, respectively, in the third quarter of 2022.

Diluted net operating earnings per common share for the year ended December 31, 2022 totaled $14.42, compared with $14.11 in 2021. Net operating income in 2022 was $2.47 billion, up from $1.90 billion in 2021. Net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity was 1.35% and 16.70%, respectively, in 2022, compared with 1.28% and 16.80%, respectively, in 2021.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $1.84 billion in the recent quarter, up from $937 million in the fourth quarter of 2021 and $1.69 billion in the third quarter of 2022. The increase compared with the earlier quarters reflects a higher net interest margin and, additionally, when compared with the 2021's fourth quarter, the impact of earning assets associated with the acquisition of People's United. Average earning assets totaled $179.9 billion in the recent quarter, compared with $144.4 billion in the fourth quarter of 2021 and $182.4 billion in the third quarter of 2022. Average loans outstanding were $129.4 billion in the fourth quarter of 2022, up from $93.3 billion in the year earlier quarter and $127.5 billion in the third quarter of 2022. Reflecting the impact of rising interest rates, the net interest margin increased to 4.06% in the fourth quarter of 2022 from 2.58% in the corresponding quarter of 2021 and 3.68% in the third quarter of 2022. Taxable-equivalent net interest income rose to $5.86 billion in 2022, compared with $3.84 billion in 2021. Average loans outstanding were $119.3 billion for the year ended December 31, 2022, compared with $96.6 billion in 2021. Taxable-equivalent net interest income and average loans outstanding in 2022 reflect three quarters of additional earning assets, including loans, obtained in the acquisition of People's United. Reflecting actions taken by the Federal Reserve to increase interest rates in the recent year, the net interest margin increased 63 basis points to 3.39% in 2022 from 2.76% in 2021.


Taxable-equivalent Net Interest Income

										Change 4Q22 vs.
($ in millions)	4Q22			4Q21			3Q22			4Q21			3Q22

Average earning assets	$	179,914		$	144,420		$	182,382			25	%		-1	%
Net interest income ̶ taxable-equivalent	$	1,841		$	937		$	1,691			96	%		9	%
Net interest margin		4.06	%		2.58	%		3.68	%

Provision for Credit Losses/Asset Quality. The provision for credit losses was $90 million in the fourth quarter of 2022 and $115 million in the third quarter of 2022, compared with a $15 million recapture of provision in the fourth quarter of 2021. The provision for credit losses was $517 million for the year ended December 31, 2022, compared with a $75 million recapture of provision in 2021. As previously described, included in the second quarter of 2022 was the $242 million provision, recorded in accordance with GAAP, related to loans obtained in the People's United acquisition that were considered non-PCD. In addition to that merger-related provision, M&T recorded a provision for credit losses of $275 million in 2022. Net loan charge-offs were $40 million in the fourth quarter of 2022, $31 million in the fourth quarter of 2021 and $63 million in 2022's third quarter. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .12% and .13% in the fourth quarters of 2022 and 2021, respectively, and .20% in the third quarter of 2022. Net loan charge-offs during all of 2022 and 2021 aggregated $160 million and $192 million, respectively, representing .13% and .20%, respectively, of average loans outstanding.

Loans classified as nonaccrual totaled $2.44 billion at December 31, 2022, $2.43 billion at September 30, 2022 and $2.06 billion at December 31, 2021. The balance of nonaccrual loans at the end of the two most recent quarters as compared with December 31, 2021 reflects loans obtained in the acquisition of People's United. Nonaccrual loans as a percentage of total loans were 1.85% at December 31, 2022, improved from 2.22% a year earlier and 1.89% at September 30, 2022. Assets taken in foreclosure of defaulted loans were $41 million at December 31, 2022, $24 million at December 31, 2021 and $37 million at September 30, 2022.

Allowance for Credit Losses. M&T regularly performs comprehensive analyses of its loan portfolios and assesses forecasted economic conditions for purposes of determining the adequacy of the allowance for credit losses. As a result of those procedures and reflecting the impact of loan growth, the allowance for credit losses totaled $1.93 billion or 1.46% of loans outstanding at December 31, 2022 compared with $1.47 billion or 1.58% of loans outstanding at December 31, 2021 and $1.88 billion or 1.46% at September 30, 2022. The acquisition of People's United loans and leases resulted in a $341 million increase in the allowance for credit losses as of April 1, 2022, including $99 million related to PCD loans and $242 million related to non-PCD loans. Including the impact of the acquisition, M&T's allowance for credit losses was $1.81 billion on April 1, 2022, or 1.42% of then outstanding loans.

Asset Quality Metrics
										Change 4Q22 vs.
($ in millions)	4Q22			4Q21			3Q22			4Q21			3Q22

At end of quarter
Nonaccrual loans	$	2,439		$	2,060		$	2,429			18	%		—
Real estate and other foreclosed assets	$	41		$	24		$	37			73	%		12	%
Total nonperforming assets	$	2,480		$	2,084		$	2,466			19	%		1	%
Accruing loans past due 90 days or more (1)	$	491		$	963		$	477			-49	%		3	%
Nonaccrual loans as % of loans outstanding		1.85	%		2.22	%		1.89	%

Allowance for credit losses	$	1,925		$	1,469		$	1,876			31	%		3	%
Allowance for credit losses as % of loans outstanding		1.46	%		1.58	%		1.46	%

For the period
Provision for credit losses	$	90		$	(15)		$	115			—			-22	%
Net charge-offs	$	40		$	31		$	63			31	%		-36	%
Net charge-offs as % of average loans (annualized)		.12	%		.13	%		.20	%

(1)

Predominantly government-guaranteed residential real estate loans.

Noninterest Income and Expense. Noninterest income totaled $682 million in the fourth quarter of 2022, compared with $579 million in the year-earlier quarter. The increase reflects the impact of acquired operations from People's United (predominantly increases in trust income, credit-related fees and service charges on deposit accounts, net of conversion-related fee waivers) and higher trust income from legacy operations, as well as the $136 million gain recorded on the sale of MTIA. Those increases were partially offset by a decline in mortgage banking revenues resulting from lower volumes of residential and commercial mortgage loans originated for sale, lower income recorded from M&T's investment in Bayview Lending Group, and a planned reduction of insufficient funds fees reflected in service charges on deposit accounts. Noninterest income was $563 million in 2022's third quarter. The comparative increase in the recent quarter was driven by the $136 million gain recorded on the sale of MTIA and higher trust income, partially offset by lower service charges on deposit accounts, credit-related fees, bank owned life insurance income and MTIA-related insurance revenues.

Noninterest Income

							Change 4Q22 vs.
($ in millions)	4Q22		4Q21		3Q22		4Q21			3Q22

Mortgage banking revenues	$	82	$	139	$	83		-41	%		-2	%
Service charges on deposit accounts		106		105		115		—			-8	%
Trust income		195		169		187		15	%		4	%
Brokerage services income		22		19		21		19	%		7	%
Trading account and non-hedging derivative gains		14		6		5		133	%		176	%
Gain (loss) on bank investment securities		(4)		2		(1)		—			—
Other revenues from operations		267		139		153		92	%		74	%
Total	$	682	$	579	$	563		18	%		21	%

Noninterest income rose to $2.36 billion in 2022 from $2.17 billion in 2021. Acquired operations associated with the People's United acquisition (predominantly increases reflected in trust income, service charges on deposit accounts and other revenues from operations, including credit-related fees), the $136 million gain on sale of MTIA, and trust income from legacy operations were most impactful to the higher levels of noninterest income in 2022. Those increases were partially offset by lower mortgage banking revenues and the planned reduction of fees reflected in service charges on deposit accounts.

In December 2022, Wilmington Trust National Association (a subsidiary of M&T) announced the sale of its Collective Investment Trust business to a private equity firm. That sale is expected to close in the first half of 2023. Trust income associated with this business totaled approximately $165 million and $151 million in 2022 and 2021, respectively. After considering expenses, the results of operations of that business were not material to M&T's net income in either year.

Noninterest expense totaled $1.41 billion in the fourth quarter of 2022, compared with $928 million in the similar quarter of 2021 and $1.28 billion in the third quarter of 2022. Excluding expenses considered to be nonoperating in nature, such as amortization of core deposit and other intangible assets and merger-related expenses, noninterest operating expenses were $1.35 billion in the recent quarter, $904 million in the fourth quarter of 2021 and $1.21 billion in 2022's third quarter. The higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was predominantly due to the impact of operations obtained in the People's United acquisition and the $135 million contribution to The M&T Charitable Foundation. The charitable contribution was the largest factor contributing to higher operating expenses in 2022's fourth quarter as compared with 2022's third quarter. Higher expenses in the recent quarter as compared with the third quarter of 2022 for equipment and net occupancy, outside data processing and software and a seasonal increase in advertising and promotional spending were offset by a decline in salaries and employee benefits expenses, reflecting lower employee staffing levels following the conversion of People's United's operating systems with those of M&T and one less pay day in the fourth quarter.

Noninterest Expense

							Change 4Q22 vs.
($ in millions)	4Q22		4Q21		3Q22		4Q21			3Q22

Salaries and employee benefits	$	697	$	515	$	736		35	%		-5	%
Equipment and net occupancy		137		83		127		65	%		8	%
Outside data processing and software		108		79		95		37	%		13	%
FDIC assessments		24		19		28		27	%		-15	%
Advertising and marketing		32		21		21		54	%		53	%
Printing, postage and supplies		15		8		15		85	%		2	%
Amortization of core deposit and other intangible assets		18		2		18		801	%		-4	%
Other costs of operations		377		201		239		88	%		58	%
Total	$	1,408	$	928	$	1,279		52	%		10	%

For the year ended December 31, 2022, noninterest expense was $5.05 billion compared with $3.61 billion in 2021. Noninterest operating expenses aggregated $4.66 billion in 2022 and $3.56 billion in 2021. The higher level of operating expenses in 2022 was predominantly the result of the acquisition of People's United, as well as higher salaries and employee benefits expense reflecting increased staffing levels, merit increases and incentive compensation, and increased contributions to The M&T Charitable Foundation.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.3% in the fourth quarter of 2022, 59.7% in the year-earlier quarter and 53.6% in the third quarter of 2022. The efficiency ratio for the full-year 2022 was 56.6%, compared with 59.0% in 2021.

Balance Sheet. M&T had total assets of $200.7 billion at December 31, 2022, compared with $155.1 billion and $198.0 billion at December 31, 2021 and September 30, 2022, respectively. Loans and leases, net of unearned discount, were $131.6 billion at December 31, 2022, compared with $92.9 billion at December 31, 2021 and $128.2 billion at September 30, 2022. The higher level of loans and leases at the recent quarter-end and September 30, 2022 as compared with December 31, 2021 is largely a reflection of balances associated with the acquisition of People's United. Also reflective of that acquisition, total deposits were $163.5 billion at the recent quarter-end and $163.8 billion at September 30, 2022, compared with $131.5 billion at December 31, 2021.

Total shareholders' equity was $25.3 billion or 12.61% of total assets at December 31, 2022, $17.9 billion or 11.54% at December 31, 2021 and $25.3 billion or 12.76% at September 30, 2022. Common shareholders' equity was $23.3 billion, or $137.68 per share, at December 31, 2022, compared with $16.2 billion, or $125.51 per share, a year-earlier and $23.2 billion, or $134.45 per share, at September 30, 2022. Tangible equity per common share was $86.59 at December 31, 2022, $89.80 at December 31, 2021 and $84.28 at September 30, 2022. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T estimates that the ratio of Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was approximately 10.4% at December 31, 2022, compared with 10.7% three months earlier and 11.4% at December 31, 2021.

In accordance with its capital plan, M&T repurchased 3,664,887 shares of its common stock during the recent quarter at an average cost per share of $163.72 resulting in a total cost of $600 million compared with 3,282,449 shares at an average cost per share of $182.79 and total cost of $600 million in the previous three months. M&T repurchased a total of 10,453,282 shares at an average cost per share of $172.19 and total cost of $1.8 billion in 2022. No share repurchases occurred in 2021. Common shares issued in conjunction with the acquisition of People's United on April 1, 2022 totaled 50,325,004.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 225-9448. International participants, using any applicable international calling codes, may dial (203) 518-9708. Callers should reference M&T Bank Corporation or the conference ID #MTBQ422. The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Thursday January 26, 2023 by calling (800) 283-8486, or (402) 220-0869 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations.

About M&T. M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services in 12 states across the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com.

M&T was recognized as one of the Best Places to Work for Disability Inclusion for the fourth consecutive year by the American Association of People with Disabilities ("AADP") and Disability:IN, a nonprofit resource for businesspeople with disabilities. M&T earned the top score in the 2022 Disability Equality Index ("DEI"), a benchmarking report developed by the AAPD and Disability:IN to help businesses identify steps they can take to achieve disability inclusion and equality in their workplaces.

M&T Bank launched a second Multicultural Small Business Innovation Lab in Buffalo, New York following its success in Bridgeport, Connecticut and Harrisburg, Pennsylvania earlier in the year. The seven-week program is designed to help local multicultural business owners thrive, grow and pursue new ideas by providing guidance and skills to expand and operate their businesses. It is part of M&T Bank's mission to build a culturally fluent bank that understands the needs of the communities it serves and provide the resources to address those needs. Similar programs will be launched in New York City and Baltimore, Maryland in the first half of 2023.

Forward-Looking Statements. This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.

Statements regarding the potential effects of events or factors specific to the Company and/or the financial industry as a whole, as well as national and global events generally, including economic conditions, on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Statements regarding M&T's expectations or predictions regarding the acquisition of People's United are also forward-looking statements, including statements regarding the expected financial results, prospects, targets, goals and outlook.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("future factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Examples of future factors include: the impact of the People's United acquisition; economic conditions including inflation and market volatility; the impact of international conflicts or other events; the impact of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation and/or regulations affecting the financial services industry or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; containing costs and expenses; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the future factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other future factors.

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2021, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date made, and M&T does not assume any duty and does not undertake to update forward-looking statements.

INVESTOR CONTACT:		Brian Klock
		(716) 842-5138

MEDIA CONTACT:		Maya Dillon
		(646) 735-1958

Financial Highlights
	Three months ended									Year ended
	December 31									December 31
Amounts in thousands, except per share	2022			2021			Change			2022			2021			Change
Performance
Net income	$	765,371			457,968			67	%	$	1,991,663			1,858,746			7	%
Net income available to common shareholders		739,126			434,171			70	%		1,891,480			1,776,987			6	%
Per common share:
Basic earnings	$	4.32			3.37			28	%	$	11.59			13.81			-16	%
Diluted earnings		4.29			3.37			27	%		11.53			13.80			-16	%
Cash dividends	$	1.20			1.20			—		$	4.80			4.50			7	%
Common shares outstanding:
Average - diluted (1)		172,149			128,888			34	%		164,030			128,812			27	%
Period end (2)		169,285			128,705			32	%		169,285			128,705			32	%
Return on (annualized):
Average total assets		1.53	%		1.15	%					1.05	%		1.22	%
Average common shareholders' equity		12.59	%		10.91	%					8.67	%		11.54	%
Taxable-equivalent net interest income	$	1,840,759			937,356			96	%	$	5,861,128			3,839,509			53	%
Yield on average earning assets		4.60	%		2.64	%					3.64	%		2.84	%
Cost of interest-bearing liabilities		.98	%		.12	%					.45	%		.14	%
Net interest spread		3.62	%		2.52	%					3.19	%		2.70	%
Contribution of interest-free funds		.44	%		.06	%					.20	%		.06	%
Net interest margin		4.06	%		2.58	%					3.39	%		2.76	%
Net charge-offs to average total net loans (annualized)		.12	%		.13	%					.13	%		.20	%
Net operating results (3)
Net operating income	$	812,359			475,477			71	%	$	2,466,010			1,899,838			30	%
Diluted net operating earnings per common share		4.57			3.50			31	%		14.42			14.11			2	%
Return on (annualized):
Average tangible assets		1.70	%		1.23	%					1.35	%		1.28	%
Average tangible common equity		21.29	%		15.98	%					16.70	%		16.80	%
Efficiency ratio		53.3	%		59.7	%					56.6	%		59.0	%

	At December 31
Loan quality	2022			2021			Change
Nonaccrual loans	$	2,438,435			2,060,083			18	%
Real estate and other foreclosed assets		41,375			23,901			73	%
Total nonperforming assets	$	2,479,810			2,083,984			19	%
Accruing loans past due 90 days or more (4)	$	491,018			963,399			-49	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	43,536			51,429			-15	%
Accruing loans past due 90 days or more		363,409			927,788			-61	%
Renegotiated loans	$	422,186			230,408			83	%
Nonaccrual loans to total net loans		1.85	%		2.22	%
Allowance for credit losses to total loans		1.46	%		1.58	%

(1)	Includes common stock equivalents.
(2)	Includes common stock issuable under deferred compensation plans.
(3)	Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4)	Predominantly residential real estate loans.

Financial Highlights, Five Quarter Trend
	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Amounts in thousands, except per share	2022			2022			2022			2022			2021
Performance
Net income	$	765,371			646,596			217,522			362,174			457,968
Net income available to common shareholders		739,126			620,554			192,236			339,590			434,171
Per common share:
Basic earnings	$	4.32			3.55			1.08			2.63			3.37
Diluted earnings		4.29			3.53			1.08			2.62			3.37
Cash dividends	$	1.20			1.20			1.20			1.20			1.20
Common shares outstanding:
Average - diluted (1)		172,149			175,682			178,277			129,416			128,888
Period end (2)		169,285			172,900			175,969			129,080			128,705
Return on (annualized):
Average total assets		1.53	%		1.28	%		.42	%		.97	%		1.15	%
Average common shareholders' equity		12.59	%		10.43	%		3.21	%		8.55	%		10.91	%
Taxable-equivalent net interest income	$	1,840,759			1,690,518			1,422,443			907,408			937,356
Yield on average earning assets		4.60	%		3.90	%		3.12	%		2.72	%		2.64	%
Cost of interest-bearing liabilities		.98	%		.41	%		.20	%		.13	%		.12	%
Net interest spread		3.62	%		3.49	%		2.92	%		2.59	%		2.52	%
Contribution of interest-free funds		.44	%		.19	%		.09	%		.06	%		.06	%
Net interest margin		4.06	%		3.68	%		3.01	%		2.65	%		2.58	%
Net charge-offs to average total net loans (annualized)		.12	%		.20	%		.16	%		.03	%		.13	%
Net operating results (3)
Net operating income	$	812,359			700,030			577,622			375,999			475,477
Diluted net operating earnings per common share		4.57			3.83			3.10			2.73			3.50
Return on (annualized):
Average tangible assets		1.70	%		1.44	%		1.16	%		1.04	%		1.23	%
Average tangible common equity		21.29	%		17.89	%		14.41	%		12.44	%		15.98	%
Efficiency ratio		53.3	%		53.6	%		58.3	%		64.9	%		59.7	%

	December 31,			September 30,			June 30,			March 31,			December 31,
Loan quality	2022			2022			2022			2022			2021
Nonaccrual loans	$	2,438,435			2,429,326			2,633,005			2,134,231			2,060,083
Real estate and other foreclosed assets		41,375			37,031			28,692			23,524			23,901
Total nonperforming assets	$	2,479,810			2,466,357			2,661,697			2,157,755			2,083,984
Accruing loans past due 90 days or more (4)	$	491,018			476,503			523,662			776,751			963,399
Government guaranteed loans included in totals above:
Nonaccrual loans	$	43,536			44,797			46,937			46,151			51,429
Accruing loans past due 90 days or more		363,409			423,371			467,834			689,831			927,788
Renegotiated loans	$	422,186			356,797			276,584			242,108			230,408
Nonaccrual loans to total net loans		1.85	%		1.89	%		2.05	%		2.32	%		2.22	%
Allowance for credit losses to total loans		1.46	%		1.46	%		1.42	%		1.60	%		1.58	%

(1)	Includes common stock equivalents.
(2)	Includes common stock issuable under deferred compensation plans.
(3)	Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.
(4)	Predominantly residential real estate loans.

Condensed Consolidated Statement of Income
	Three months ended							Year ended
	December 31							December 31
Dollars in thousands	2022		2021		Change			2022		2021		Change
Interest income	$	2,072,209		958,518		116	%	$	6,247,120		3,938,784		59	%
Interest expense		244,835		24,725		890			425,164		114,006		273
Net interest income		1,827,374		933,793		96			5,821,956		3,824,778		52
Provision for credit losses		90,000		(15,000)		—			517,000		(75,000)		—
Net interest income after provision for credit losses		1,737,374		948,793		83			5,304,956		3,899,778		36
Other income
Mortgage banking revenues		81,521		139,267		-41			356,636		571,329		-38
Service charges on deposit accounts		105,714		105,392		—			446,604		402,113		11
Trust income		194,843		168,827		15			740,717		644,716		15
Brokerage services income		22,463		18,923		19			87,877		62,791		40
Trading account and non-hedging derivative gains		14,043		6,027		133			26,786		24,376		10
Gain (loss) on bank investment securities		(3,773)		1,426		—			(5,686)		(21,220)		—
Other revenues from operations		266,726		138,775		92			703,669		482,889		46
Total other income		681,537		578,637		18			2,356,603		2,166,994		9
Other expense
Salaries and employee benefits		697,276		515,043		35			2,787,351		2,045,677		36
Equipment and net occupancy		136,732		82,641		65			474,316		326,698		45
Outside data processing and software		107,886		78,814		37			376,493		291,839		29
FDIC assessments		24,008		18,830		27			90,274		69,704		30
Advertising and marketing		32,691		21,228		54			90,748		64,428		41
Printing, postage and supplies		15,082		8,140		85			55,570		36,507		52
Amortization of core deposit and other intangible assets		17,600		1,954		801			55,624		10,167		447
Other costs of operations		377,013		200,850		88			1,120,060		766,603		46
Total other expense		1,408,288		927,500		52			5,050,436		3,611,623		40
Income before income taxes		1,010,623		599,930		68			2,611,123		2,455,149		6
Applicable income taxes		245,252		141,962		73			619,460		596,403		4
Net income	$	765,371		457,968		67	%	$	1,991,663		1,858,746		7	%

Condensed Consolidated Statement of Income, Five Quarter Trend
	Three months ended
	December 31,		September 30,		June 30,		March 31,		December 31,
Dollars in thousands	2022		2022		2022		2022		2021
Interest income	$	2,072,209		1,781,513		1,465,142		928,256		958,518
Interest expense		244,835		102,822		53,425		24,082		24,725
Net interest income		1,827,374		1,678,691		1,411,717		904,174		933,793
Provision for credit losses		90,000		115,000		302,000		10,000		(15,000)
Net interest income after provision for credit losses		1,737,374		1,563,691		1,109,717		894,174		948,793
Other income
Mortgage banking revenues		81,521		83,041		82,926		109,148		139,267
Service charges on deposit accounts		105,714		115,213		124,170		101,507		105,392
Trust income		194,843		186,577		190,084		169,213		168,827
Brokerage services income		22,463		21,086		24,138		20,190		18,923
Trading account and non-hedging derivative gains		14,043		5,081		2,293		5,369		6,027
Gain (loss) on bank investment securities		(3,773)		(1,108)		(62)		(743)		1,426
Other revenues from operations		266,726		153,189		147,551		136,203		138,775
Total other income		681,537		563,079		571,100		540,887		578,637
Other expense
Salaries and employee benefits		697,276		736,354		776,201		577,520		515,043
Equipment and net occupancy		136,732		127,117		124,655		85,812		82,641
Outside data processing and software		107,886		95,068		93,820		79,719		78,814
FDIC assessments		24,008		28,105		22,585		15,576		18,830
Advertising and marketing		32,691		21,398		20,635		16,024		21,228
Printing, postage and supplies		15,082		14,768		15,570		10,150		8,140
Amortization of core deposit and other intangible assets		17,600		18,384		18,384		1,256		1,954
Other costs of operations		377,013		238,059		331,304		173,684		200,850
Total other expense		1,408,288		1,279,253		1,403,154		959,741		927,500
Income before income taxes		1,010,623		847,517		277,663		475,320		599,930
Applicable income taxes		245,252		200,921		60,141		113,146		141,962
Net income	$	765,371		646,596		217,522		362,174		457,968

Condensed Consolidated Balance Sheet
	December 31
Dollars in thousands	2022		2021		Change
ASSETS
Cash and due from banks	$	1,517,244		1,337,577		13	%
Interest-bearing deposits at banks		24,958,719		41,872,304		-40
Federal funds sold and agreements to resell securities		3,000		—		—
Trading account		117,847		49,745		137
Investment securities		25,210,871		7,155,860		252
Loans and leases:
Commercial, financial, etc.		41,850,566		23,473,324		78
Real estate - commercial		45,364,571		35,389,730		28
Real estate - consumer		23,755,947		16,074,445		48
Consumer		20,593,079		17,974,953		15
Total loans and leases, net of unearned discount		131,564,163