m&t people’s united merger date 2023

m&t people’s united merger date 2023. M&T Bank Corporation in January released its earnings report for the full year and quarter ended December 31, 2022, five months after the full transition for former People’s United Bank customers.

M&T completed the conversion for People’s United Bank in April and customers were completely transitioned to the M&T system over the summer. The acquisition was valued at $8.3 billion.

Read more about: m&m finance news 2023

m&t people’s united merger date 2023

Here are the highlights with the numbers measured in accordance with generally accepted accounting principles:

Diluted earnings per common share 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.

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 percent in the fourth quarter of 2022, improved from 1.15 percent in the corresponding 2021 period and 1.28 percent in the third quarter of 2022. That net income produced a return on average common shareholders’ equity of 12.59 percent in the recent quarter, 10.91 percent in the similar 2021 period and 10.43 percent in the third quarter of 2022.

The results reflect non-operating merger-related expenses associated with the acquisition of 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, bank officials said:

In the fourth quarter of 2022, M&T sold its retail insurance subsidiary, M&T Insurance Agency, Inc. (or MTIA), to Arthur J. Gallagher & Co. The sale resulted in a gain of $136 million.

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 said, “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 recent 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.”

Read more about: M&T Bank

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 percent and 8.67 percent, respectively, compared with 1.22 percent and 11.54 percent, 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.

Bank officials said 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 on the April 1, 2022 acquisition date of People’s United.